Annual Report 2019 DARÜŞŞAFAKA SOCIETY ANNUAL REPORT 2019

T: 0850 222 1863 www.darussafaka.org Table of Contents

04 Chairman’s Message 10 Secretary General’s Message 14 Message from the General Manager of Darüşşafaka Schools DARÜŞŞAFAKA SOCIETY ANNUAL REPORT 2019 20 Darüşşafaka in Brief 22 Milestones 24 2019 at a Glance 28 2019 in Figures

Review of Operations in 2019 33 Educational Activities 59 Corporate Communications 66 Donations and Fundraising Activities 82 Darüşşafaka Residences 86 Law Office 89 Support Services 96 Museums 98 Commercial Enterprises and Initiatives 102 Corporate Governance 114 Our Griefs in 2019

116 Report of the Supervisory Board 119 Consolidated Financial Statements and Independent Auditor’s Report as at and for the Year Ended December 31, 2019 for Darüşşafaka Society and Its Subsidiaries 121 Independent Auditor’s Report 156 2019 Final Accounts and 2020 Budget Proposal 167 Employment Status as of December 31, 2019 168 Contact Information

As per the Personal Data Protection Law (PDP), pictures in this report Proudly produced by FİNAR. do not reflect the real names and surnames of the students. www.finarkurumsal.com Building value from talent...

Since 1863 we have strived to ensure equality of opportunity in education for talented children who have lost their fathers or mothers and have limited financial means. We aim to first provide them with care and, then, with a bright future.

With 156 years of deep-rooted history, the Darüşşafaka Society provides equal education opportunities to nearly 1.000 children, selected through examinations across , through secondary school to their graduation from high school. We predicate our education on care and warmth, and accompany our children throughout their journey to universities in Turkey or abroad.

We also provide scholarships for students to complete their university education. Our students gradually climb up the steps in their careers, becoming academicians, civil servants, doctors, lawyers, journalists, scientists and more. We work to transform the talent of each student into a valuable resource of the future, thanks to your support.

Dedicated to principles, progressing towards the future

The number of donors and donations play an essential role in raising modern- day individuals who adhere to Ataturk’s principles, and are life-long learners and critical thinkers.

The history of Darüşşafaka Society dates from the and the early days of the Turkish Republic. Throughout its existence, the Society has sustained its mission through donations from benevolent individuals, including Zübeyde Hanım, the mother of Mustafa Kemal Atatürk, and Makbule Atadan, his sister. Playing a crucial role in the history of Turkey, the Society considers each donation, regardless of the amount, as a commitment to its mission and, as such, the Society is accountable. 4 Darüşşafaka Society Annual Report 2019

Chairman’s Message

Dear Students of Darüşşafaka,

Esteemed Members and Partners,

In 2019, we continued our mission of equality of opportunity in qualified education, and the last 12 months have seen many accomplishments and achievements.

Administrative Matters Since the chairmanship of the Board Of Directors is significant in terms of the sustainability and institutionalization of the Darüşşafaka Society, the term of office has been limited to six years (3+3) and included in the internal regulations. Subsequently, in 2019, there was a change of seat within the governance of the Society. In April 2019, I took over the Chairmanship of the Darüşşafaka Society Board of Directors from Mr. Talha Çamaş, who carried out his duties with great dedication and success. We are embarking on an innovative process of development based on these ongoing projects. I will relinquish this duty, which has been entrusted to me when the General Assembly selects the right person and team. For now, together with my colleagues on the Board of Directors, we undertake this duty with a common sense of responsibility and devotion.

As Darüşşafaka Society, we do not compromise on our corporate governance. Rather, we take firm steps towards a sustainable structure based on plans and goals by renewing our strategic plans every five years. In the second half of 2019, we built on the previous term’s strategic objectives. We determined our road map for the 2020-25 term and informed our stakeholders regarding the main principles. The new strategic plan is based on three primary matters: “Education,” the “Individual” and “Sustainability.”

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Chairman’s Message

As a Non-Governmental Organization and a “home of compassion,” we emphasize care, improvement and attention for our “people,” mainly our teachers while remaining focused on our primary mission of equality of opportunity in qualified education.

Under the umbrella of science and knowledge, We have gained strength, especially with the our main priority is, and always has been qualified success of the “81 Provinces, 81 Students” project, education. We aim to raise individuals who are continuing in cooperation with İşbank for 12 years. fully equipped in terms of academic, social, With the help of this strength, we aim to rapidly physical, psychological and cultural skills, and to increase corporate donations via our “Companion” prepare them for the requirements of a changing program. future. Our utmost concern and goal are to help students achieve success and happiness in These developments, and improvements in the life. Quantity follows quality: helping even more organizational and administrative aspects of children to benefit from the opportunities offered Residences, will help us raise member/donor by our nation is the next goal. satisfaction and, thus, raise more funds for education. As a Non-Governmental Organization and a “home of compassion,” we emphasize care, improvement Education and attention for our “people,” mainly our teachers In 2019, a total of 934 students, with a balanced while remaining focused on our primary mission of distribution of male and female students, from 72 equality of opportunity in qualified education. cities studied in Darüşşafaka Schools under the supervision of 224 teachers. “Sustainability” encompasses not only one of our most treasured assets – our reputation – but also With a high success rate in Anatolian cities in the continuity of our development and our mission the last decade, we have provided educational with an inclusive expansion in donations. Thanks opportunities to at least one student from all cities to achievements particularly in recent years and except Aksaray, Bingöl, Erzincan, Gümüşhane, in 2019, we have expanded regular (individual Hakkari, Iğdır, Siirt, Sinop and Tunceli. We hope to or corporate) donations and have properly and help students in these cities, with the assistance of efficiently managed our asset quality and income. our companions at heart, as soon as possible... Darüşşafaka Society Annual Report 2019 7

In 2019, our benevolent society continued to provide care and support to Darüşşafaka. We generated a total income of TL 227,1 million.

I would like to highlight that there were four We continue to aim at improving the quality students per teacher, which is above global of education through clear and measurable standards. Within the scope of in-service training parameters. Within the framework of our strategy, activities, we delivered a total of 5.900 hours of we focus on ensuring that our alumni graduate training for the academic staff. from the top three universities in the fields of their preference, sooner or later, and that they In 2019, our students achieved numerous demonstrate innovation and a healthy sense of academic, social, cultural, and sports-related competition with the influence of our behavioral successes at the national and international levels. development programs, enjoying happiness and We feel great pride in their accomplishments. success at the same time.

We graduated 70 students, 62 of whom were Financial Matters accepted to undergraduate programs. Eight of In 2019, our generous benefactors continued to those graduates did not apply to programs, as provide care and support to Darüşşafaka. We they wished to take the exam again and re-apply generated a total income of TL 227,1 million. to their preferred universities. Excluding those Individual donations reached TL 71,3 million, an eight graduates, the university placement ratio is increase of 59,6 percent compared to the previous 100%. Two graduates were accepted by overseas year; 9.488 regular donors contributed a total of universities based on their special qualifications. TL 7.831.826. 8 Darüşşafaka Society Annual Report 2019

Chairman’s Message

Members of Darüşşafaka support their school: 676 alumni contributed a total of TL 2,8 million.

Members of Darüşşafaka were involved in these The percentages of all expenses in 2019 included developments and maintained support to their 45% for personnel, 15% for food, 6% for (any school; a total donation of TL 2,8 million was kind) energy, 6% for cleaning services, 6% for received from 676 alumni. We expect to have more the health of donors, 5% for special care unit support from Darüşşafaka Members. invoices, 4% for communication and promotion, 2% for maintenance-repair, 2% for events, 2% With the help of technological advances, we will for consultancy and informatics, and 7% for strive for more regular donations towards the miscellaneous expenses. The ratio of Society equality of opportunity in education in 2020. As Center expenses to total income remained at 7,2% well, we hope to expand the corporate donations. with no increase.

The coverage ratio of our Net Asset Management The expenses of the Society’s Board Members and Financial Incomes for Darüşşafaka Schools in 2019 amounted to TL 8.378. The volunteer (DS) expenses was 55,3% as of year-end 2019. members of the Society’s Board made a total donation of TL 330.573 during the year. Budgeted funds in the amount of TL 121,2 million, excluding the financial budget, were used up to Our bank debts in foreign currency fell by TL 115,2 million (95%) in 2019. Our meticulous USD 2,1 million. Of this amount, USD 1,5 million attention and approach to operational expenses was paid to the Export-Import Bank of the United have been a critical principle of our management States (U.S. EXIM), and USD 589 thousand was so far, and we will not compromise on this paid to Garanti and İşbank in exchange for the principle in 2020. principal repayment of credit usage during the U.S. EXIM credit restructuring in 2012. Darüşşafaka Society Annual Report 2019 9

We have full confidence in 2020 and will remain proud and dedicated to science and knowledge for our society.

Bank cash was ultimately TL 197,6 million by Ali Naki Effendi, and all our members, donors, the end of 2019; TL 48 million of which (USD 8,1 administrators, teachers and workers. As well, I million) is still invested in Eurobonds. Our net cash thank all the members of the Darüşşafaka family, position increased by TL 85,2 million, from TL 36,5 contributing to Darüşşafaka with donations and million in 2018 to TL 121,7 million by the end of services since 1863, who are not among us today, 2019. with mercy and gratitude. May they rest in peace.

To conclude, we have full confidence in 2020 and In conclusion, I take this opportunity to warmly and will remain proud and dedicated to science and respectfully greet all those who have supported knowledge for our society. the Darüşşafaka Society with their contributions, dedication and commitment. As always, I would like to recognize our esteemed leader, Mustafa Kemal Atatürk, and his brothers Sincerely, in arms, our Founding Fathers, Yusuf Ziya Pasha, Gazi Ahmet Muhtar Pasha, Sakızlı Ahmet M. Tayfun ÖKTEM (DŞ’82) Esat Pasha, Vidinli Hüseyin Tevfik Paşa and Chairman of the Board 10 Darüşşafaka Society Annual Report 2019

Secretary General’s Message

Dear Darüşşafaka Friends,

As the Darüşşafaka Society, since 1863 we offered equality of opportunity in qualified education to gifted children who have lost their father or mother and lack sufficient financial facilities. We have raised these children as lifelong-learning, self-confident leaders who adopt and internalize universal values and are aware of their duties and responsibilities to their country and society. In line with our purpose, I present the highlights of our activities in 2019:

All children accepted to our school are promised eight years of education. For this reason, it is our top priority to ensure sustainability in fundraising activities.

Donors receive the designation of “Companion” by joining our regular donation program. Regardless of the amount donated, donors who contribute on a regular monthly basis are invited to accompany our students in their eight-year education journey. A total of 9.488 generous individuals responded to our call, becoming “Companions.” Our vision is to be able to meet all expenses of the school through regular donations.

In 2019, we focused our attention on new-generation fundraising activities. We started to accept donations via contactless POS devices. We also initiated charity runs, which in recent years have emerged as one of the main fundraising models by non-governmental organizations in Turkey. We were rewarded for our efforts in the 41st Marathon on November 3, breaking the 12-year record and collecting the highest amount of donations by an NGO in the history of the Marathon.

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Secretary General’s Message

Nearly 120.000 generous individuals and institutions donated a total of TL 135 million to our Society this year. Individual donations increased by 59,6% compared to the previous year, while the number of donors rose by 71%.

For 156 years, Darüşşafaka’s hard-earned In asset management, we endeavored to optimize reputation has been at the forefront. On behalf both movable and immovable property donations of all of our institutions, we also focused on our to Darüşşafaka, so that they could contribute to corporate reputation and recognition activities our sustainability. this year. Our social media activities, which have been a vital channel for our corporate We are very pleased to see that Darüşşafaka communications, earned the Society an award makes a great difference in the future of children for the “Most Effective Use of Social Media by A and our country and that society’s appreciation Non-Governmental Organization,” presented by the of the value of this change grows each year. Each students of Istanbul Technical University. passing year, this appreciation is reflected in the rising number of donors, as well as in increased In all our corporate governance activities in 2019, donations. we adhered to the principles of “transparency,” “accountability,” “equality” and “sustainability.” Nearly 120.000 generous individuals and We strengthened our information technology institutions donated to our Society in 2019, for infrastructure and continued with the Enterprise a total of TL 135 million. Individual donations Resource Planning (ERP) software project, to increased by 59,6% compared to the previous consolidate all Corporate processes on one year, and the number of donors by 71%. Prominent platform and integrate the workflows of all units institutions in Turkey, most notably İşbank, under the same infrastructure. At this point, continued to support Darüşşafaka in 2019, as well. we were able to review workflows and initiated compliance activities as per the ISO 9001 Quality Assurance System. We aim to receive the ISO Certificate by March 2020. Darüşşafaka Society Annual Report 2019 13

Thanks to a cost-effective and careful approach to expenditures, we saved 4% on expenses, despite a challenging year that brought many increases in costs. Our prudent approach enabled us to create additional funds of TL 111,9 million for our future.

Numerous benefactors designated the Society as People from all walks of life expanded their the beneficiary of their wills, with no expectations support to Darüşşafaka to ensure the “equality in return. This year, a total of 70 benefactors of opportunity in education” for more children. donated to the Society via bequest or grant. In managing the Society, we are fully aware By the end of the year, the recorded number of of the expectations of the community. Behind benefactors who made bequest or grant donations our motivation for 2020 is the recognition of was 504. our activities in the community. Thanks to the kindness and munificence of our people, we will It has been, and it will always be, the priority of strive even harder to open doors for more children the Society to utilize donations in their entirety through education. in line with its mission. Thanks to an economical and prudent approach to expenditures in our Kind Regards, institutions, we were able to save 4% from our expense budget, even in a challenging year with Senem BAŞYURT high-cost increases. These savings from the Secretary General income-expense difference helped us create additional funds of TL 111,9 million for our future. 14 Darüşşafaka Society Annual Report 2019

Message from the General Manager of Darüşşafaka Schools

Dear Darüşşafaka Friends,

With a 156-year history, the Darüşşafaka School serves as a model educational institution for Turkey and even the entire world with its corporate traditions, growth, and the development of a scholastic culture that is passed through generations.

Our school was founded on a set of strong values. We transfer these fundamental values to our students while optimally supporting their academic and social development. We strive to combine academic excellence with intellectual curiosity. The essentials of this process are leadership, art and sports. We raise individuals who are academically strong and fully equipped to take their place in society. We explore the interests and skills of our children in their early stages, support them and provide them with unique achievements and experiences. We bring the interests of each child together with the power of a strong set of skills.

We fully equip our children in academic terms, and our expert teachers contribute to the development of the program. Each teacher undergoes at least 70 hours of training every year.

The prepared program is closely monitored in each phase of implementation. Exams, projects, performance assignments, experiments and alternative evaluation tools help us track each student individually, and thus strengthen their weaknesses. Throughout their education, every student performs a minimum of 56 book analyses and takes 32 academic trips, as well as preparing reports and attending technological trainings.

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Message from the General Manager of Darüşşafaka Schools

We guide our students throughout their educational journey to help them explore their potential. With the Life Skills program, we carry out skills training across nine basic fields in collaboration with our school counselors.

On average, students take 3.000 hours of English Students are provided with training on musical courses and 1.800 hours of Math. In line with instruments, in music courses. Not only do contemporary education systems, students are students gain general knowledge about music, but provided with a fact-based education that spans they also enjoy learning another skill. domestic and global issues. Darüşşafaka Schools are a home for our children. Students are prepared for national and This warm, embracing home is where our children international exams in a professional way. are prepared for life and are equipped with all A team of professionals works with students in kinds of life skills; a home where our devoted preparation for university entrance exams, while teachers wholeheartedly embrace the children. We university consultancy services assist them in guide our students throughout their educational developing their goals. journey to help them explore their potential. With the Life Skills program, we carry out skills training We monitor students’ foreign language across nine basic fields in collaboration with our competencies through international exams; they school counselors. take Cambridge exams in secondary school and the IELTS in high school. These exams help us The student houses are organized to ensure a safe objectively evaluate how close we are to our goals and healthy environment for our students’ out of and what actions we should take. school hours. Recreational areas, study rooms and other living spaces are designed to offer our There are 16 different sports activities and other students the warmth of a home. events in our school. Sports teams are trained under the supervision of professional trainers. Our aim is to integrate sports into the lives of our students. Darüşşafaka Society Annual Report 2019 17

We are extremely proud of the student activities in science, art, and sports. Each Darüşşafaka student is certainly the future and hope in the success story of this country.

We create an environment that encourages We participate in numerous national and students to pursue knowledge rather than rote international competitions and activities; we learning. Students are supported in becoming also host some of them. Every year our robotics productive individuals who utilize and analyze club achieves notable successes and represents information. We provide opportunities and support Turkey abroad. We conduct 3D activities within students through project-based learning. Since our 3D Printer workshop; additionally, we organize we pay attention to interdisciplinary transfers, and host inter-high school 3D competitions. We we promote global learning by connecting each participate in various scientific competitions course with another one. We create a strong lab with our projects under TUBITAK (Scientific and infrastructure for our students, one that enables Technological Research Council of Turkey) and learning by practice and experimentation. Our win awards. learning activities are reinforced by technological developments such as STEM, Maker, FRC, 3D and We are very proud of the student activities Techno-initiatives. in science, art and sports. Each one of the Darüşşafaka students is certainly the future, hope We consider technology to be the main tool for and success story of this country. Every student learning and fortify this approach through iPad of Darüşşafaka has a dream about their own lives; trainings and applications. We design our learning as teachers, we also cherish the same dream for programs accordingly. them. Together, we strive to realize these dreams.

Kind Regards,

Ebru ARPACI General Manager Darüşşafaka Schools

Lighting a torch for the future

First known as “Cemiyet-i Tedrisiyye-i İslamiye,” Darüşşafaka was established 156 years ago to educate apprentices working in and around the Grand Bazaar. When the need for education increased, larger groups began to be educated.

Since its establishment, Darüşşafaka has witnessed several wars and many hardships. However, the Society remains standing, thanks to the inner strength, good faith, compassionate hearts, and sense of divine duty held by its founders. The spark lit by Yusuf Ziya Pasha and his fellows continues as a torch that has burned for 156 years, serving as a source of illumination for thousands of children. 20 Darüşşafaka Society Annual Report 2019

Darüşşafaka in Brief Darüşşafaka, meaning a “home of compassion,” welcomes talented children at the age of 10, who have lost their father or mother and have insufficient financial facilities in order to provide them with education opportunity at the level of international standards.

Equality of opportunity in education since 1863 COLLEGE EDUCATION WITH FULL The first non-governmental organization in the Today, nearly 1.000 children from all over Turkey SCHOLARSHIP AND field of education in Turkey, Darüşşafaka Society who qualify by passing an entrance exam are BOARDING FOR EIGHT sustains its mission of “equality of opportunity in able to receive college education in Darüşşafaka YEARS education” since 1863. Schools in Maslak, Istanbul with full scholarship and boarding for eight years from the first year Today, nearly 1.000 children Darüşşafaka, meaning a “home of compassion,” of secondary school through to the end of high from all over Turkey who qualify welcomes talented children at the age of 10, school. The Society maintains the scholarship by passing an entrance exam who have lost their father or mother and have support to the graduates during their university are able to receive college insufficient financial facilities in order to provide education. education in Darüşşafaka them with education opportunity at the level of Schools in Maslak, Istanbul with international standards. The School aims to raise full scholarship and boarding for self-confident, thinking, inquiring, and curious eight years from the first year of leader individuals who feel responsible for the secondary school through to the community. end of high school. Darüşşafaka Society Annual Report 2019 21

A light that has illuminated since 1863 with the support of those who VISION dream of a brighter future for Turkey! Darüşşafaka Schools aim All opportunities offered to our children in of ‘equality of opportunity in education’ since the to become one of the most Darüşşafaka are made possible by donations from day of establishment. The Society provided the respected and best schools individuals, organizations and companies. We children who had no father and had no sufficient both in Turkey and the world, provide our children with an “equal opportunity in financial facilities with a qualified education, that provide quality education education” with the support of countless generous whereas its counterparts usually accepted to underprivileged and talented benefactors and companies who dream of a the children of wealthy families. Although the children whose mothers and/or brighter future for our country, which includes Society altered its curriculum, name and location fathers have deceased. Zübeyde Hanım, Atatürk’s mother; Makbule Atadan, according to the requirements of the period, it has his sister; Nebile Irdelp, his adopted daughter; never compromised on its main mission and has Sait Faik Abasıyanık, the great man of letters; and continued to change lives through education. MISSION İşbank. To raise leaders who are life-long In the late 1800s, there were very few Western- learners, self-confident, modern style schools in Turkey. Darüşşafaka was one of and socially conscious, by these schools. The main feature that distinguished providing equal opportunity in Darüşşafaka from other schools was its mission education. 22 Darüşşafaka Society Annual Report 2019

Milestones The first non-governmental organization in the field of education in Turkey, the Darüşşafaka Society has sustained its mission of “equality of opportunity in education” since 1863.

1863 The society named as “Cemiyet-i Tedrisiyye-i İslamiye” was established on March 30, 1863, by Yusuf Ziya Pasha, Gazi 1935 Ahmed Muhtar Pasha, The Society changed Vidinli Tevfik Pasha, its name to “Turkish Sakızlı Ahmet Pasha, Teaching Institution.” and Ali Naki Effendi, When an earthquake 1955 upon an imperial hit the city of Erzincan The academic year 1971 order by the Sultan. in 1939, a total of 1955-56 was a In 1969, the Board The purpose of the 1881 83 children affected significant milestone decided to construct a society was to support Darüşşafaka graduated by the earthquake, for Darüşşafaka. With “Girls College” building, the education of poor its first students. These who fulfilled the a new regulation, the and converted into a children who had no first eight graduates conditions to study School acquired status co-educational system. father. This society, were afterwards at Darüşşafaka, were as a college offering Distinguished Prof. The whose members employed in the admitted to the School. education in English. facilities, designed by consisted of numerous Ministry of Post and İşbank undertook to The School introduced Professor-in-Ordinary Ottoman pashas Telegram, with the cover all educational a two-year preparatory Master Architect Emin and intellectuals, help of the Minister costs for these class, and the total Onat, were put into was the very first İzzet Effendi, who students. Embracing period of education was service in the 1971-72 non-governmental was a member of the the “Orphans of extended to eight years. academic year, and organization in the field Society. By then, there Erzincan” was a truly Science and math Darüşşafaka began of education in the were 125 students at praiseworthy approach courses started to be admitting female history of Turkey. Darüşşafaka. during those days. delivered in English. students.

1873 1924 1953 1964 1992 Darüşşafakat’ül Following the The Society adopted The School began It was decided to move İslamiye, which was proclamation of the the name “Darüşşafaka admitting financially out of the facilities in a public school with Republic, the Law on Society,” with a charter disadvantaged and Fatih, and to construct boarding and special Unification of Education amendment. talented students “residences” for status, started its was enforced in 1924 whose fathers were donors, so that elderly first academic term with the aim of unifying alive. This practice was people could spend on June 29, when and secularizing the suspended in 1976. their advanced ages Captain Mustafa education system, as in a safe and healthy Effendi delivered the well as highlighting the environment. first lecture to its 54 concept of nationality students. in history and language aspects. The Board of the Society decided to make significant amendments in the education programs in accordance with this Law. The School became a “full-time private high school” that followed the curriculum of the public secondary and high schools. The School was then renamed as Darüşşafaka High School. Darüşşafaka Society Annual Report 2019 23

2012 The Purpose Article of the Society Charter was amended on April 14 at the Extraordinary General Assembly, at which Prime Minister Recep Tayyip Erdogan participated as the natural president of Darüşşafaka Society. With this amendment, it became possible to admit students who had lost their mothers in addition 2018 to the students who Celebrating its 155th 1994 lost their fathers. The anniversary in 2018, the The new campus of term “Turkish-Islamic Darüşşafaka Society Darüşşafaka Schools children” in the Purpose hosted numerous in Maslak was put into Article was replaced events. Darüşşafaka service. The 120-year- with the term “Citizen of 2014 Roof Talks, featuring old building in Fatih was 2007 the Republic of Turkey” Darüşşafaka prepared “Small Stories on Big vacated and sold to Urla (Izmir) Residence as per the necessities its strategic plan for the Topics” was among the Ziraat Bank. was opened. of the age. 2015-2020 period. main events.

1997 2008 2013 2017 Darüşşafaka Yakacık A new testing system Celebrating its 150th Initiated on September Residence was put into based upon intelligence, anniversary, the 3, 2008, the project “81 service. talent, and creativity Darüşşafaka Society Provinces, 81 Students,” instead of knowledge became the first in cooperation with was adopted for non-governmental İşbank and the Society, students seeking to organization to celebrated its 10th study at Darüşşafaka. commission an anniversary. The In this way, talented independent corporate project saw its first six children living in rural governance rating students, who skipped areas and lacking equal study. preparatory classes in opportunities could high school, placed into also join this family, In order to adapt to universities. thus supporting the the new education principle of “Equality system known as of Opportunity in 4+4+4, Darüşşafaka Education.” Schools shut down its elementary school, The project “81 and started to accept Provinces, 81 Students” students into first was initiated in grade at the secondary cooperation with school in the 2013-2014 İşbank. The first group academic year. of students within this project began studying at Darüşşafaka. 24 Darüşşafaka Society Annual Report 2019

2019 at A Glance Going through a change of seat at the beginning of 2019, Darüşşafaka Society prepared its strategic plan for 2020-2025 period and created next five-year’s road map.

ENGINEERING INSPIRATION AWARD In 2019, Darüşşafaka Robotics Club became the first Turkish team to win the “Engineering Inspiration Award” in the First Robotics Competition. The Club has become entitled to compete in the world finals to be held in Houston in 2020 with the support of NASA without going through any elimination process.

Sultans of Turkey returned from Sertab’s Musical performed in Houston with an award support of Darüşşafaka!

As a great source of pride for Turkey, Darüşşafaka One of the prominent Turkish singers Sertab Robotics Club has won almost 20 awards so far. Erener took the stage in UNIQ Hall on March 24 in The Club also achieved a historic victory in the support of Darüşşafaka Society. “Sertab’s Musical,” First Robotics Competition held in the USA. The a favorite event of art lovers, is a sold out project. Darüşşafaka Robotics Club “Sultans of Turkey” Within this project, Sertab Erener came together won the “Engineering Inspiration Award” in the with the people who dream of a better future in grand finale held in Houston between April 17-20 education and performed the most favorite songs this year. The Club has become entitled to compete this time for “equality of opportunity in education.” in the world finals to be held in Houston in 2020 Students of Darüşşafaka also showed interest without going through any elimination process. As in this musical. The Vice Chairman of the Board the Darüşşafaka Robotics Club has been the first of Darüşşafaka Society Hakan Tahiroğlu and the Turkish team to win this award in the world finals, Member of Board Prof. Dr. Esra Ekmekçi Çalıcıoğlu National Aeronautics and Space Administration presented an appreciation plaque to Sertab Erener (NASA) will be fully compensating the competition for her support to education. participation fee next year.

2020-2025 Strategic Plan

In 2019, Darüşşafaka prepared its five-year strategic plan and created the road map for the period 2020-2025. The new strategic plan has been founded on three main principles: “Education,” “Individual” and “Sustainability.” Darüşşafaka Society Annual Report 2019 25

Change of seat in the Board of Darüşşafaka Society.

2,1+ Following six-year of duty as the Chairman of the TL Million Board in Darüşşafaka, Mr. M. Talha Çamaş (DŞ’69) handed over his seat to Mr. M. Tayfun Öktem THE AMOUNT (DŞ’82). OF DONATIONS COLLECTED FROM 41ST Ordinary General Assembly for the calendar year ISTANBUL MARATHON 2018 of Darüşşafaka Society was held at Maslak TİM Show Center, on April 6, 2019. Mr. M. Talha Çamaş, who had been serving as the Chairman of the Board since 2013 and whose term of office was completed as per the Charter of Darüşşafaka Society, handed over his seat to Mr. M. Tayfun Öktem. In the General Assembly attended by 163 members, 152 members casted their votes.

As per the Charter of Darüşşafaka Society, the elected chairman is entitled to assume presidency for two periods of three years at most. With the last General Assembly held, the term of office of Mr. M. Talha Çamaş, who acted as the Chairman of the Board of Darüşşafaka Society for the last six years, was completed. Darüşşafaka was introduced to the European Parliament

The prominent non-governmental organizations Nearly 1.000 education supporters of Turkey, including the Darüşşafaka Society, and crossed the continents for their distinguished teachers were presented at Darüşşafaka the exhibition held in Brussels at the European Parliament on January 8-11. Around 1.000 education supporters ran for SUPPORT TO 122 Darüşşafaka Society in the 41st Istanbul Marathon The exhibition called “Faces of Turkey: Civil STUDENTS and collected a record amount of donations with Society,” which was organized by the Greek their campaigns. Total TL 2,1 million was collected In 41st Marathon, nearly Member of the European Parliament and Vice through more than 14.000 supporters, which broke 1.000 people ran in support of Chairman of the Delegation to the EU-Turkey the 12-year record of the marathon history with the 122 students’ education who Joint Parliamentary Committee Miltiadis Kyrkos highest amount of donations by an NGO. Istanbul were accepted to Darüşşafaka opened its doors on January 8, 2019. In addition to Marathon, the only intercontinental marathon in this year. Darüşşafaka Society, ten other non-governmental the world, was run for the 41st time this year on organizations, each of which is the leading November 3, and had a record participation. The organization in their fields, participated in the campaign “We Run For Charity If Education is in exhibition. Question,” initiated by Darüşşafaka Society, drew The principal is calling for you, great attention during the event. Nearly 1.000 Selim! runners, including many names from business, art and sports communities, ran to support the “equality of opportunity in education” mission of Darüşşafaka Society prepared a public service Darüşşafaka. announcement with the voluntary support of 4129Grey Agency in order to announce the Darüşşafaka Exam. The TV and radio spot advertisement “The principal is calling for you, Selim!,” aiming to reach out more students, gained appreciation in public.

Offering a vision that adds value to life

When Darüşşafaka was founded, there was no United Nations (UN) or UNICEF to stand for each child’s right to the best education based on their talents, nor did concepts such as the welfare state or social responsibility exist in a formal structure.

A movement based on love and good will in the face of poverty has grown stronger and reached the present. Our Society has preserved its traditions, and has maintained its visionary and progressive structure throughout its history. 28 Darüşşafaka Society Annual Report 2019

2019 in Figures Total TL 227,1 million revenue was generated in 2019. The revenues were realized by 21,5% above the budget. Individual donations increased by 59,6% compared to 2018 and amounted to TL 71,3 million.

2019 Revenue Distribution 21,5% 31,4% Individual Donations 23,8% Residence Protocol Donations REVENUES WERE 19,8% Corporate Donations REALIZED 21,5% ABOVE 9,7% Donation via Bequest or Immovables THE BUDGET. 7,6% Financial Revenues (Net) 4,3% Asset Management Revenues (Net) 2,7% Other Revenues 0,7% Commercial Enterprise (Net)

Revenues* (TL Million)

54,1 44,9 71,3 32,5 52,2 40,7 37,3 38,7 48,4 22,0 59,6% 44,7 20,0

INDIVIDUAL DONATIONS INCREASED BY 59,6% COMPARED TO 2018. Residence Protocol Corporate Individual Donations via Donations Donations Donations Bequest or Immovables

9,7 9,9 9,7 7,9 7,9 17,3 6,3

9,4 7,2 2018 Actual 2019 Budget 2019 Actual Asset Management Other Financial Revenues (Net) Revenues Revenues (Net)

* Corporate and individual in-kind donations are partly included. In-kind donations are detailed on the donation and fundraising pages. Darüşşafaka Society Annual Report 2019 29

TL 115,2 MILLION 2019 Expense Distribution FUNDS USED The budgeted funds in the amount of TL 121,2 million 44,9% Personnel Expenses excluding the financial budget 14,6% Food Expenses was used up to TL 115,2 million 6,4% Cleaning Expenses in 2019. 6,2% Energy Expenses 5,8% Health Expenses 22,1% Other Expenses

Expenses (TL Million)

2018 Actual 2019 Budget 2019 Actual

50,7 17,3 51,8 1,4 48,8 16,3 48,7 1,3 40,0 13,1 41,3 1,1

Darüşşafaka Society Center Residence Scholarship Schools Expenses Expenses Payments

Revenues - Expenses (TL Million)

227,1 121,2115,2 111,9 186,9 95,6 177,9 82,3 65,8 2018 Actual 2019 Budget 2019 Actual Revenue Expense Difference

Asset Management and Financial Revenues/DS Expenses Coverage Ratio (TL 000) DS Expenses Asset Management + Financial Revenues, Net 55,3% Ratio 42,2% 60,0 38,1% 38,0% 50,7 28,8% 48,8 24,9% 36,6 40,0 15,3% 33,2 29,4 27,0 22,8 16,9 19,3 8,3 10,5 4,5

2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Budget 2019 Actual 2020 Budget 30 Darüşşafaka Society Annual Report 2019

2019 in Figures By the end of 2019, Protocol Real Estate Donations amounted to TL 24,2 million, whereas Protocol Cash Donations amounted to TL 29,9 million.

121,7 Residence-Based Revenues and Expenses (TL Million) 26,0 29,9 8,9 3,5 TL Million 24,2 26,2 3,0 18,8 NET CASH POSITION 19,9 1,8 IN 2019 4,0 4,3

Protocol Real Estate Protocol Cash Unconditional Donations via Donations Donations Donations Bequest

5,3 16,2 13,2 3,5 9,4

1,5 2018 Actual (41,3) 2019 Budget (51,8)(48,7) CASH MANAGEMENT 2019 Actual Immovable Residence Net The bank cash was TL 198 Donations Expenses million by the end of 2019, TL 48 million of which (USD 8,1 million) was invested in Eurobonds. The net cash Non-Residence Revenue-Expense Analysis (TL Million) position, which was TL 37 million Society Center Revenues Financial Revenue - Expense Net by the end of 2018, increased by Central Management Expenses School Expenses Balance TL 85 million and reached TL 122 million.

144,5 115,1 115,3 96,7 69,1 56,7 7, 2 9,4 17,3

(13,1) (17,3) (16,3) (40,0) (50,7) (48,8) 2018 Actual 2019 Budget 2019 Actual Darüşşafaka Society Annual Report 2019 31

EFFICIENT AND Efficient and Transparent Management TRANSPARENT MANAGEMENT 9,3% 7,4% 227,1 The ratio of Society Center 177,9 186,9 7,2% expenses to total revenues was realized as 7,2% in 2019.

The expenses incurred by Total Revenues the Society Board Members 13,1 17,3 16,3 Society Expenses amounted to TL 8.378 in 2019. Ratio 2018 Actual 2019 Budget 2019 Actual The Society Board Members made total TL 330.573 donation in 2019. Debt Management/Bank Credits (Million)

19,9 17,2 14,5 14,9 12,8 2016 2017 DEBT MANAGEMENT 0,0 0,0 0,0 2018 2019 The bank debts in foreign TL Bank USD Bank currency decreased by USD 2,1 million. Of this amount, USD 1,5 million was paid off to US Ex-Im Distribution of Immovables Bank, and USD 589.000 was paid off to Garanti and İşbank in exchange for the principal TL 1.236 million TL 1.394 million repayment of credit usage during the US Ex-Im Bank credit restructuring in 2012. No TL debt was raised.

725 699 Service Buildings Properties with Limited Use Rented Properties DISTRIBUTION OF Lands and Other Properties IMMOVABLES Properties in the Sales Process Equipments The market value of building and 184 Maslak Campus Project Fund Properties land assets was TL 1.394 billion 184 Net Cash by the end of 2019. The total 63 market value of service buildings 47 133 was TL 724.869 thousand, TL 558.050 thousand of which 145 86 belonged to Maslak Campus. 67 59 15 65 122 37 0

2018 Actual 2019 Actual

Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 33

Educational Activities Darüşşafaka Schools provide education and training to total 934 students through the academic staff of 224.

Darüşşafaka Schools 934 The total number of students in Darüşşafaka Darüşşafaka; the number of students per teacher Students Schools (DS) in the academic year 2019-20 is four. Students from 72 cities across Turkey study has reached 934 with the admission of 122 in Darüşşafaka, excluding these cities: Aksaray, NUMBER OF new students. There are total 224 academic Bingöl, Erzincan, Gümüşhane, Hakkari, Iğdır, Siirt, STUDENTS AND STAFF and management staff (including the teaching Sinop and Tunceli. IN DARÜŞŞAFAKA assistants and academic trainers) within SCHOOLS Number of Students and Staff in DS for the term 2019-2020

High School Secondary School Total* Number of Students 477 457 934 Number of Female Students 231 221 452 Number of Male Students 246 236 482 Weekly Boarder Students 190 177 367 Permanent Students 287 280 567 Weekly Boarder Female Students 99 84 183 Weekly Boarder Male Students 91 93 184 Permanent Female Students 132 137 269 Permanent Male Students 155 143 298

* 12 high school students continue their education abroad via Long Term Student Exchange Programs. They are included in the total number of students. 34 Darüşşafaka Society Annual Report 2019

Darüşşafaka Schools In the academic term 2019-2020, total number of academic staff in Darüşşafaka Schools was 224, including the administrator, teacher, academic trainer and teaching assistant. The ratio of students to teachers has been 4,1 in that term.

The Number of Teachers - Teaching Assistants - Students in Last Five Years IN-SERVICE TRAININGS FOR Category 2015-16 2016-17 2017-18 2018-19 2019-20 TEACHERS Administrator 16 15 18 16 20 In 2019, total 5.901 hours of Teacher (Including the administrator) 133 140 134 141 140 in-service training for teachers Teaching Assistant 27 28 29 41 47 have been delivered, including Academic trainer 21 21 30 28 37 2.472 hours of curricular and Total staff 181 189 193 210 224 teaching trainings, 1.180 hours Number of students 973 953 958 927 934 of ICT, 1.045 hours of Procedure, Teacher/Student ratio 5,38 5,04 4,9 4,4 4,1 510 hours of PLA and 694 hours of other trainings.

In-Service Trainings for Teachers

5.901 hours of training 2.472 Curricular and Teaching HOURS OF ENGLISH 1.180 ICT AND MATH COURSES 1.045 Procedure 694 Other In Darüşşafaka Schools, 510 PLA students are provided with average 3.000 hours of English and 1.800 hours of math courses throughout the eight year education period.

Hours of English and Math Courses In Darüşşafaka Schools, students are provided with average 3.000 hours of English and 1.800 hours of math courses throughout the eight year education period. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 35

DARÜŞŞAFAKA Darüşşafaka Secondary School ADMISSION EXAM Darüşşafaka Secondary School started the 2019- students sat in the exam. Total 166 candidate The students, who have joined 2020 academic term with 457 students. students who were successful in the exam the Darüşşafaka family in were categorized as main and waiting list. The 2019-20 academic term, sat an Admission Requirements counseling interviews and medical examinations admission exam on May 26, Darüşşafaka Secondary School has admitted were conducted on June 12-20, whereas the home 2019 in 24 city centers. Visits to 122 students this year. The admission exam for visits and assessment of their financial situations provincial and county directors 2019-2020 academic term was held on May 26 in were made on July 1-31. The first ranked student of the Ministry of National 24 city centers to determine the new members of of the 2019 admission exam was Umutcan Beşir Education as well as to schools Darüşşafaka family. Visits to provincial and county from Trabzon, second was Emine Beril Şengül from across Turkey were made directors of the Ministry of National Education Nevşehir and third was Serra Ceyda Dindar from between March 26 - April 16 in as well as to schools across Turkey were made Kırıkkale. The students who became entitled to order to reach the candidates in between March 26 - April 16 in order to reach study at Darüşşafaka and their guardians attended person. the candidates in person. Total 10.183 students a five-day orientation program on September 4-8. studying at the 4th grade across Turkey, who During the orientation program, students were have no father and/or mother, were considered provided with trainings on iPad and different as candidates. Darüşşafaka sent letters to each applications. Additionally, they participated in a set school of these candidates to invite them to the of intra- and extra-mural activities. exam. Out of total 1.962 applicant students, 1.465 36 Darüşşafaka Society Annual Report 2019

Darüşşafaka Secondary School In line with international standard targets and external assessments, English language skills of students are monitored through international assessment exams.

Academic Activities 119 English Students International Standard Targets and External All levels of Cambridge exams (Movers/Flyers/ Assessment KET/PET) were held as a Progress exam in THE NUMBER OF English language proficiency levels of students January 2019, whereas they were held as Final STUDENTS WHO SAT are monitored through international assessment exam in June. THE PET EXAM IN exams. The proficiency targets per level are as JUNE 2019 follows:

PET Results for 8th Graders

Intermediate Pre-intermediate B1 Elementary A2 A1+ Starter A1 5th Grade (Movers) 6th Grade (Flyers) 7th Grade (KET) 8th Grade (PET)

The PET results of 8th graders for June 2018 and June 2019 are shown in the chart below:

English Proficiency Targets

Term Number of stu- Pass With Pass with Pass CEFR Level A2 dents Distinction Merit CEFR Level B1 CEFR CEFR Level B2 Level B1 (140-152) Level A2 (160-170) (153-159) (120-139) June 2018 112 12 (11%) 17 (15%) 71 (63%) 12 (11%) 100 Students (89%) 12 Students (11%) June 2019 119 52 (44%) 58 (49%) 9 (8%) - 119 Students (100%) - Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 37

Materials for KEP and PET exams have been KANGURU initiated to be prepared in the academic term 2019- AND THALES 20 in accordance with the revisions in the exams. MATHEMATICS In line with planning in August, the School has CONTESTS focused on idiom teaching and writing activities in all levels in association with lateral and vertical Students took part in Kanguru CEFR acquisition. and Thales mathematics contests at national level Mathematics throughout the year. The four • In collaboration with İşbank, 7th graders learned students got to the finals in about the daily management of banking and Thales Mathematics Contest interest in daily life within the scope of “interest” and went to Aydın on May 11-12. subject under mathematics. • Students took part in Kanguru and Thales mathematics contests at national level throughout the year. The four students got to the finals in Thales Mathematics Contest and went to Aydın on May 11-12. • Mobile Thales Math Museum visited the school on April 4-5 and opened the mystery world of mathematics to students, from the impossible triangle to John Nash’s game theory, from Napier’s bones to the Towers of Hanoi, from four-color theorem to Da Vinci Bridge. Located in the Techno-Initiatives Youth Center, the exhibition was visited by each class under the supervision of mathematics teachers. • Darüşşafaka Secondary School organized a Pi Logo Design Competition as part of the criteria. Some of the movies watched in 2019 are International Pi Day (March 14) activities. The as follows: Metamorphosis (8th grade), The Boy INTERNATIONAL top three ranks were Hayriye Ak, Merve Kılıçaslan in the Striped Pajamas (6th grade), The Pearl (7th PI DAY ACTIVITIES and Muhammed Ali Gürbüz. grade), The Little Prince (7th grade), Lord of the Flies (8th grade), Mr. Popper’s Penguins (5th grade). Darüşşafaka Secondary School • An external assessment exam was applied to • On January 14, 237 students from 6th and 7th organized a Pi Logo Design all levels at the end of first-term and second- term. The exam assessed students in all math grades participated in poetry recitation on the Competition as part of the subjects covered within the year. The results theme of “Istanbul” in İşbank Tower. The poems International Pi Day (March 14) of the assessment were compared with the DS in the recitation were then analyzed in Turkish activities. exam averages. classes. • As part of Turkish classes, 5th grades had Social Studies lessons on myths, stories, photographs and As part of the Women’s Rights Day, Mualla poems on the theme of Istanbul. Through a Mezhepoğlu, one of the donors of the Society, Bosphorus Tour in May 2019, students had the came together with the 8th graders in the opportunity to review the city from different Revolution History and Kemalism class on March aspects. 13. With reference to her book “Yesterday Ends on • Upon a Turkish lesson on theater genre, Calendar (Dün Takvimde Biter),” Mrs. Mezhepoglu 7th graders saw and analyzed a play called mentioned about her interest in photography which “Everything Will Start Loving a Person (by Turkish started years ago thanks to her grandmother. writer Sait Faik Abasıyanık)” on May 27-28.

Turkish Sciences Based on the elective books they read, the STEM Plans have been developed and applied for students developed their project products (opening different levels, mainly in science classes. Different the social media account for the main character, lesson plans have been applied and assessed, advertising the book as a speaker) and displayed such as: “Compound Machine” theme under them in an exhibition. Afterwards, these products Simple Machines subject for 8th graders; “Roller were assessed as per a set of criteria. Apart from Coaster” theme for Force and Energy as well as AR preparing the reports of the book, students had technology theme for Atom and Elements subject the opportunity to watch the adapted movies of for 7th graders; and “Life Above Water” theme for their term books and compared based on a set of Force subject for 6th graders. 38 Darüşşafaka Society Annual Report 2019

Darüşşafaka Secondary School As of November 2019, the School began to integrate different digital literacy subjects (confidentiality, security, digital footprint, digital ethics, copyrights etc.) into the content of the ICT classes for 5th, 6th, 7th and 8th grades in cooperation with the Technology Learning Unit.

Trips PROJECT PRODUCTS As part of social studies and science classes, the following academic trips have been organized in 2019: OF THE STUDENTS WERE EXHIBITED Science Trips Based on the elective books they 2018 – 2019 (2nd Term) 2019 – 2020 (1st Term) read, the students developed 5th Grade Sealife Aquarium Trip Atatürk Arboretum their project products and th displayed them in an exhibition. 6 Grade Kadıköy Diabetes Center STEM Application Afterwards, these products 7th Grade Recycling Facility Zeytinburnu Medical Plant Garden were assessed as per a set of 8th Grade STEM Application Rahmi Koç Museum criteria. Apart from preparing the reports of the book, students Social Studies Trips had the opportunity to watch the adapted movies of their term 2018 – 2019 (2nd Term) 2019 – 2020 (1st Term) books and compared based on a 5th Grade Hattusa Trip (Çorum) Sadberk Hanım Museum set of criteria. 6th Grade Konya IHE Bread Factory 7th Grade Söğüt (Eskişehir) Istanbul Museum of The History of Science & Technology in Islam 8th Grade Dolmabahçe Palace

Information and Communication Technology As of November 2019, the School began to (ICT) Classes integrate different digital literacy subjects As of September 2019, iMac lab was opened within (confidentiality, security, digital footprint, digital the Secondary School. This lab will help the 7th ethics, copyrights etc.) into the content of the ICT FAST TYPING th th th th th CONTEST and 8 graders learn about the MacOS operating classes for 5 , 6 , 7 and 8 grades in cooperation system and utilize these computers for intra- and with the Technology Learning Unit. As part of ICT classes, 5th and 6th extra-curricular activities. grades had the contest of fast As part of ICT classes, 5th and 6th grades had the typing on keyboards after school With the implemented ICT Program, secondary contest of fast typing on keyboards after school in in November 2019. The contest school students are able to learn about Microsoft November 2019. The contest has been planned to has been planned to continue Office programs, Tinkercad and then Fusion 360 continue throughout the year. throughout the year. which is a 3D design program. They can also design their own drones. They can design posters and leaflets on Photoshop, whereas they can use Scratch and Kodris for coding and develop applications with the help of block-based coding. With the Arduino and app inventor, students can not only install their own electronic circuits but also operate these circuits through the applications they have developed. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 39

1.023 Course Plans

NUMBER OF COURSE PLANS

STEM (Science, Technology, Engineering and A group of Science and Math teachers as well as TECHNOLOGICAL Mathematics) Social Studies, English and Turkish teacher group ASPECT OF STEM Bahçeşehir University-STEM: As of May 2019, eight volunteered to improve the technological aspect WORKS of the teachers who participated in the Leader of the STEM works. These two working groups Teacher Professional Development Program have organized applied arduino and coding workshops A group of Science and Math graduated. Five of our teachers are in the Leader every Friday biweekly during February-May 2019 teachers as well as Social Program, and nine teachers are taking online under the supervision of ICT teachers. Studies, English and Turkish courses of STEM. In 2019, the School continued teacher group volunteered to develop and implement some integrated STEM to improve the technological planning for different levels and courses. aspect of the STEM works.

Bahçeşehir University STEM Center (BAUSTEM) organized the 6th STEM Course Plan Competition in April 2019. In this competition, four of Darüşşafaka teachers were granted awards for the STEM course plans they developed for different levels. Total 1.023 course plans participated in the VI. STEM Course Plan Competition which was organized by BAUSTEM. Out of these plans, 40 were selected. Four of Darüşşafaka teachers were granted awards for the STEM course plans they developed for different levels. 40 Darüşşafaka Society Annual Report 2019

Darüşşafaka Secondary School Teachers of Darüşşafaka Secondary School have received personal and professional development trainings, and additionally, have joined various symposiums and conferences throughout the year.

“A JOURNEY TO MAGIC WORLD AND SCIENCE” Fifteen students who completed the 6th grade took part in the 6th Science Camp called “A Journey to Magic World and Science” organized by The Scientific and Technological Research Council of Turkey (TÜBİTAK) in Çanakkale.

Symposium Presentations of Teachers In 2019, Darüşşafaka Secondary School Teachers represented the school in various symposiums and 24 conferences. The chart below contains some examples of these symposiums: Students Conference Title Date/Location Teacher Presentation Title Görkem Girgin Applying STEM and AR in THE NUMBER OF 23rd Autumn Sena Değirmenci Yıldız 7th Grade Science Classes October 19 / STUDENTS WHO Teachers’ Koç Schools Design of Smart Lighting System PARTICIPATED IN Symposium Gülşah Okyay Orman Against Global Warming - SPACE CAMP IN IZMİR Mathematics Based STEM Sample Future in Education November 2-3 / Meltem Ceylan Alibeyoğlu University Model Schools Panel in Conference 2019 Boğaziçi University (Panelist) Cooperation with TÜSİAD

TÜBİTAK Summer Science Camp 2019 Space Camp 2019 Fifteen students who completed the 6th grade took Total 24 students who completed the 8th grade and part in the 6th Science Camp called “A Journey who were distinguished in the Science and English to Magic World and Science” coordinated by classes participated in Space Camp organized in Çanakkale 19 Mart University and organized by Izmir on July 14-20 and July 21-27. The Scientific and Technological Research Council of Turkey (TÜBİTAK) in Çanakkale on the dates of June 24-29. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 41

CERME Congress The 11th CERME Congress (Congress of the European Society for Research in Mathematics 52.663 Education) was held in Utrecht, Holland, on Visitors February 6-10. The article “Analyzing a Teacher’s Instructional Actions in Response to Unexpected THE NUMBER OF Moments in Teaching” prepared by Darüşşafaka VISITORS TO “FROM math teacher Merve Esmer in collaboration with DREAM TO REALITY MEF University Assistant Professor Dr. Rukiye FATİN GÖKMEN Didem Taylan was accepted and presented in the PLANETARIUM” Congress. SINCE 2010 Planetarium and “Forscherwelt” Lab Since it was opened in 2010, From Dream to Reality Fatin Gökmen Planetarium had total 52.663 visitors. In 2019, total 2.793 visitors visited the planetarium, including 467 Darüşşafaka students.

The “Forscherwelt (Researchers’ World)” lab which JMUN Club: was opened in collaboration with Henkel and They attended ENKA Schools Youth Forum on Creative Children Association had 632 visitors March 1-2 and Hisar Schools JMUN Conference on between February 2019 and December 2019. October 18-19-20.

Culture & Life Digital Heroes Club: In December 2019, the club took part in the Competitions and Awards “e-Waste Project” of TÜSİAD with their project • FLL Robotics Club: The team won the called “From e-Waste to Art.” Programming Award in the Istanbul Regional Tournament on February 17. The Denmark Project: • Destination-Imagination Club: The team became Students and teachers from a Danish school the Turkish Champion on February 24 and also Sønderskov-Skolen visited Darüşşafaka as part became qualified to participate in the Global of the UNESCO project called “The Denmark Finals. Project.” Within the scope of project funded by • Junior Boys Football Team: They won the UNESCO, 10 Danish students and 2 teachers championship in the Friendship and Sport Festival visited Darüşşafaka and worked together with THE DENMARK Tournament of Hisar Schools on May 14. Darüşşafaka students on a project in respect PROJECT • Junior Girls Badminton Team: The team ranked of sustainable cities. Following the Danish visit, third in Istanbul on March 25. Students and teachers from Darüşşafaka students paid an exchange visit to • Alev Schools Orhan Veli Poem Writing a Danish school Sønderskov- Denmark on May 22-26. Competition: The competition was held on Skolen visited Darüşşafaka as April 12. A student from 8th grade, Cahide Kaya, part of the UNESCO project Major Student Activities was the winner of the competition with her called “The Denmark Project.” Cooking Workshops: Students prepared healthy successful poem on a theme of “Stranger.” snacks with Pelin Bozkurt throughout the year.

Major Clubs Open Rehearsal: Secondary School and High School students rehearsed some songs in breaks Erasmus Club: and performed mini-concerts for their friends Within the Erasmus+ Program, students of within the year. Darüşşafaka went to Sweden on February 4-10 and to on March 24-30. Afterwards, German New Year Party: Permanent students welcomed and Swedish students visited Darüşşafaka on 2020 with an event in sports hall on December 31. October 20-25. 42 Darüşşafaka Society Annual Report 2019

Darüşşafaka Secondary School Two secondary school students who successfully completed the YGA program participated in the 3-day Seed Camp in August in Saklıköy.

Major Sunday Trips • İşbank Workshop for Budget, Sparing and Saving • İstanbul Modern Art Makers Lab 20 • Darüşşafaka Residences Origami Workshops Students • Cevahir Fun Lab Entertainment Center • Uniq İstanbul Ice Skating THE NUMBER OF • Turkcell Dialog Museum visits and activities STUDENTS ACCEPTED • Santralİstanbul Children in the Boxes event TO YGA PROJECT • Mother’s Day residence activity • Joypark bowling • Andy Warhol exhibition visit • Apple, Coding and Photoshop workshops • Illusion Museum visit • Milli Reasürans classical music recital Tasarruf A.Ş.: As of 2019 Fall Semester, Tasarruf • “Everything Will Start Loving a Person” theatre A.Ş. is supporting the club activities of the students. play (by Sait Faik Abasıyanık) Experts from different business fields came together • Darüşşafaka Residences new year visits with students under different activities and shared some advices that would prepare them for their adult Corporate Partners of Darüşşafaka Secondary life. School TRAINING BY IBM İşbank supported students through its various Arguden Academy: In Fall Semester 2019, younger activities that have lasted throughout the year and students held club activities on Saturdays with As part of the cooperation with have become a tradition. İşbank organized a picnic the collaboration of Arguden Academy in order IBM, which have lasted for three on September 11 for 122 students who started to become equipped for “Responsible Individuals, years, total 18 students from studying in Darüşşafaka this year; additionally, Responsible Citizenship.” 7th and 8th grades received the a new year party was organized on December applied basic training on artificial 23 for 5th and 6th graders. Secondary School “Coding, Blockchain and Machine Learning” Training intelligence and machine students attended to the İşbank Workshop for by IBM learning for 10 weeks during Budget, Sparing and Saving on December 1st. In As part of the cooperation with IBM, which have Spring Semester 2019. this workshop, students learned about the banking lasted for three years, total 18 students from 7th system as well as the ways to make savings. and 8th grades received the applied basic training on artificial intelligence and machine learning for 10 Denmark Children’s Festival: Annual Children’s weeks during Spring Semester 2019. Following the Festival organized by the Consulate General of training delivered by Ali Özkan, an engineer at IBM, Denmark in Istanbul was hosted by Darüşşafaka students visited IBM on May 23 and presented the on September 21. The majority of the participants projects that they developed. During the visit, IBM in the festival was secondary school students. senior executives provided the students with some During the festival, different organizations and information about innovative technologies. institutions introduced themselves to the students and planned many educational and entertaining As part of this collaboration, 16 students from 7th activities. and 8th grades have been coming together with Ali Özkan on Saturdays starting from October. They conduct some applied activities on coding, Machine Learning, Blockchain, Big Data and IoT technologies. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 43

ACADEMIC YEAR 2019-2020 Darüşşafaka High School has total 477 students (246 female, 231 male students). * 12 students of Darüşşafaka High School continue their education abroad via Long Term Student Exchange Program.

Darüşşafaka High School 477 University Placement Rates of Darüşşafaka for the exam again and to study at their favorite Students High School universities. Students’ success rate of placement In 2019, 70 students graduated from Darüşşafaka in the university admission exams is 100%, THE NUMBER OF High School. 62 of these graduates have been excluding the eight students who did not make STUDENTS AT accepted to undergraduate programs. On the any application. Two students have been placed in DARÜŞŞAFAKA HIGH other hand, eight graduates did not apply for overseas universities. SCHOOL any programs because they wanted to prepare The University Placement Results in 2019

2019 Number of Graduates 70 Number of Placed Students 62 Students Placed at Four-Year Degree 62 Students Placed at Open Education 0 Students Placed at Two-Year Degree 0 Placement at Formal Education 62 Placement at Public University 29 Placement at Private Universities with Scholarship 31 Overseas Placement 2 44 Darüşşafaka Society Annual Report 2019

Darüşşafaka High School University preparation activities in 12th grade are conducted in cooperation with the Deputy Principal of 12th graders, ÖSYS Coordinator, Domestic University Counselor, Psychological Counselor, 15 lecturers as well as 13 study group teachers.

University Preparation Activities COACHING SYSTEM University preparation activities in 12th grade are conducted in cooperation with the Deputy “Coaching” system has been Principal of 12th graders, ÖSYS (Student Selection established in order to have and Placement System) Coordinator, Domestic a continuous monitoring of University Counselor, Psychological Counselor, 15 students. Coaches provide lecturers as well as 13 study group teachers. They students with the necessary make an annual plan to go over the curriculum of guidance to help them reach 12th grade, as well as some parts of curricula of 9th, their goals. 10th and 11th grades that might be included in the university placement exam. Classes continue to be held both weekdays and weekends; trial exams are also conducted. Students may book appointments with any teacher to do questions one-to-one in the teacher’s office. Additionally, additional classes might be organized to cover any subjects. Darüşşafaka High School builds the university preparation system to the end that students can reach their goals. At the beginning of the year, teachers review the university and department preferences of students and calculate the average exams and study groups of students and guide scores to attain these goals. “Coaching” system them accordingly. An academic committee of total has been established in order to have a continuous 32 administrators and teachers convene 11 times monitoring of students. Coaches provide students in a year and evaluate the academic process of with the necessary guidance to help them reach students. their goals. Coaches closely monitor the works,

University Placement Rates of Darüşşafaka High School in Last 6 Years

Year Graduate Placed Placement 4-year Open 2-year 62 Graduates Graduate rate (%) University Education University 2019 70 62 89% 89% 0 0 2018 116 103 89% 89% 0 0 THE NUMBER OF 2017 66 62 95% 95% 0 0 GRADUATES PLACED 2016 96 93 97% 97% 0 0 AT UNIVERSITIES 2015 79 69 87% 89% 0 0 IN 2019 2014 81 80 99% 99% 0 0 Average 85 78 93% 93% 0 0 Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 45

Academic Activities at each level and help to objectively assess the INTERNATIONAL progress that the students have achieved between STANDARD TARGETS English the beginning and end of the year. The Placement AND EXTERNAL exam is applied for 9th, 10th and 11th grades at ASSESSMENT International Standard Targets and External the beginning of the academic year, whereas Assessment they take Progress exam at the beginning of the Darüşşafaka High School Darüşşafaka High School holds international second semester. At the end of the year, 9th and holds international exams to exams to measure the English proficiency of the 10th graders take the final exams, while 11th graders measure the English proficiency students. The necessary activities are conducted take IELTS. All high school students take the same of the students. The necessary in English classes to attain the CEFR (Common IELTS mock exam. IELTS targets have been defined activities are conducted in European Framework of Reference for Languages) based on levels and the student rates at these English classes to attain the levels. External assessment exams are applied levels. CEFR levels.

Level, Percentage of 9th Grade 10th Grade 11th Grade Students (IELTS Target) (IELTS Target) (IELTS Target) 20% 4,5 5,0-5,5 5,5-6,0 50% 4,5-5,0 5,5-6,0 6,0-6,5 30% 5,0-5,5 6,0-6,5 6,5-7,0

The results of the exams in the academic year 2018-2019 are shown in the table below:

IELTS 1 IELTS 2 IELTS 3 9th Grade 5,20 5,36 5,60 10th Grade 5,30 5,31 5,72 11th Grade 5,70 5,71 5,49

IELTS 3 of 11th graders indicates the average of the real exam results. In the academic year 2019-20, the 11th graders were provided with an additional hour of IELTS preparation. 46 Darüşşafaka Society Annual Report 2019

Darüşşafaka High School

Activities as per Branches

MATHEMATICS Activity Title Level of the Class and Total Number of Students Result Evaluation Performance Presentation All 9th, 10th and 11th graders 9th and 11th graders worked in groups and prepared a performance activity based on the daily life problems. Then, they presented this activity in their classes.

10th graders, on the other hand, prepared games with their groups according to defined topics. Then, they played these games in classes. They were assessed based on the participation of their friends and their game presentation skills.

Students gave positive feedbacks about this activity. Pi Day Design Competition Open to all 9th, 10th and 11th graders. The top three ranks: 1. İlayda Öztürk Painting) 2. Melike Zenginsoy (Animation) 3. Batuhan Aysan (Short film) Ahmet Şerif İzgören Interview 11th graders It was a very useful and pleasant interview about motivation and goals. Galatasaray University Mathematics Three students from the 10th grade participated in the math Festival festival hosted by Galatasaray University. Nesin Mathematics Village - University Twelve students from the 11th grade, who were selected by Preparation Camp an exam, participated in the summer camp.

SCIENCES Activity Title Level of the Class and Total Number of Students Result Evaluation Kodris-Python Online Coding Training 79 students from 9th, 10th and 11th grades Through Games Solar Energy Seminar 25 students from 9th, 10th and 11th grades Best Buddies Promotion Activity 35 students from 9th, 10th and 11th grades Social responsibility project Best Buddies Leadership Training 18 students from 9th, 10th and 11th grades; 25 Social responsibility project guest students from SEV American College Application for TÜBİTAK Project Seven students from 9th, 10th and 11th grades Applications made. Competition for Secondary School Students (One Biology, two Chemistry, one Technological Design) Waterloo University Department of 20 students from 11th grades World champions: Esra Demirel, Akın Yaşar, Eray Çakar; Chemistry Avogadro Exam Workshops world's rank 14th: Afra Erol, Hayel Kıymetli, Ekin Çağla Güner, Hatice Melisa Eryılmaz; world's rank 67th: Fatma Caner, Samet Güvendi, Emirhan Dursun, Büşra Yıldırım, Beyza Kaya, Mustafa Kemal Karaağaç, Özde Ercan; world's rank 124th: Ebubekir Derin: SIEMENS Coding Training (10 weeks) 26 students from 9th, 10th and 11 grades MEF Schools World Water Day Banner, One student from 10th grades - İlayda Öztürk Second-place award Poster, Cartoon Competition MEF Schools Sciences Project 11th grade student Kerem Kavruk Second-place award in Physics branch Competition Koç University High School Chemical 15 Students One-day promotion and workshop was carried out. Activity Artificial Intelligence and Deep 20 students from 9th, 10th grades The workshops were conducted in high school physics lab Learning Workshops twice a week in the academic year 2018-2019. Best Buddies Matching Ceremony 15 students from 9th, 10th and 11th grades Matching was conducted in a ceremony; the project was launched. Sustainable Common Future, 27th 11th grade student Belsu Seyran The student made a presentation about FRC. Quality Congress Presentation AREL Schools Active Experiment 12 students from 9th, 10th and 11th grades Awards for third-place in the 9th grade Biology branch, third- Competition place in the 11th grade Chemistry branch, second-place in the 11th grade Physics branch Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 47

SOCIAL STUDIES Activity Title Level of the Class and Total Number of Students Result Evaluation TÜBİTAK Project Competition Eight students from 11th grade The technological design project got invited to an exhibition. on History, Values Training and Three students from 12th grade Technological Design Teknofest Istanbul Aviation, Space and Two students from 11th grade The first two stages were passed. Technology Festival, Technology for Humanity Competition 23rd International Philosophy 12th grade student Defne Hadiş 12th grade student Defne Hadiş had the second place in Olympiads in Turkey IPO 2019 the Philosophy Olympiads. She represented our country in International Philosophy Olympiads in Rome and won the Honorable Mention Award. Rome Nesin Foundation Şirince Philosophy Three students from 11th grade Three students from 11th grade got qualified to attend Summer School philosophy summer school in July-August period. Sezin Schools Ethics Summit Students from 10th and 11th grades Students participated in the Ethics Workshop of Sezin Schools and read their manifesto.

LITERATURE Activity Title Level of the Class and Total Number of Students Result Evaluation Futuristic Scenario Competition Eight students from 9th, 10th, 11th grades The Best Content Award İşbank Art - Poetry Recital “Sende Ben Students from 10th grade Contributed to Poetry Unit. İmkânsızlığı Seviyorum…” Yaşar Kemal Memorial Event 10th grades Yaşar Kemal was commemorated in various events on February 18-27, 2019. A poetry recital “Hoş Geldin Evimize, Poetry Club students TİM Fettah Aytaç Hall Şiir Oldun Dilimize” Poster Workshops - 30 March 9th grades 156. Board for the Foundation Anniversary was prepared. Darüşşafaka Foundation Anniversary Fictitious Characters Istanbul Litera- 20 students from 9th, 10th, 11th grades Students were informed in Maltepe University. ture Festival Darüşşafaka Art and Literary Journal High school students The journal was published. - Topic of the File: World Literature at Darüşşafaka Haydarpaşa High School Cemal 10th grade student Yağmur Ünaldı Fifth-place in Turkey Süreya Poetry Competition Fenerbahçe College Sabahattin 10th grade student Cansu Demir Third-place in İstanbul Ali Inter- High School Short Story Competition Şişli Terakki “Sky” Themed Poetry 11th grade student Gökalp Hasbutçu Jury Special Award Competition Kabataş High School Behçet Necatigil 10th grade student Yağmur Ünaldı Honorable Mention Award Poetry Competition

TRIPS Private Darüşşafaka High School Academic Trips (2018-2019 second semester) 9th Grade 10th Grade 11th grade Historical Peninsula (Ottoman Arts) - Historical Peninsula (Byzantine Arts) - Dolmabahçe Palace, Yıldız Palace, Date April 11 April 17 Naval Museum - April 10 Edirne - March 2 Geography AKOM (Climate-weather topic) - Atatürk Arboretum (cover surrounding 19 February the earth, vegetation topic) - April 9 Literature Theater, April 1-5 Theater, April 1-5 Theater, April 2 Counseling Koç University - April 18 Koç University - March 6 Istanbul Technical University - December 11 / Boğaziçi University - December 6

Private Darüşşafaka High School Academic Trips (2019-2020 first semester) 9th Grade 10th Grade 11th grade Date Bergama, Troy and Assos - Bursa İznik - December 7 and 8 October 12 and 13 Geography Bilgi University Energy Museum - December 25 Literature Sait Faik Museum - October 22 Galata Mevlevi House - December 19 Aşiyan Museum - December 17 Counseling Yıldız Technical University - Istanbul Technical University - December 5 November 12 / Boğaziçi University - December 17 48 Darüşşafaka Society Annual Report 2019

Darüşşafaka High School The first robotics club in Turkey, “Sultans of Turkey” have won around 20 international awards so far. In 2019, the team had a historic victory in the First Robotics Competition held in the USA.

Turkey’s First Artificial Intelligence Based Coding Since 2012, the Innovation Week in Turkey has INNOVATION WEEK Classes by Sertrans been organized annually by Turkish Exporters’ IN TURKEY Sertrans Logistics have been a solution partner Assembly. Thousands of people who attach great of many national and international brands with importance to innovation come together during With its international successes, 30 years of experience. The Company introduced the week in Istanbul. Darüşşafaka Robotics Club Darüşşafaka Robotics Club took the first AI-based coding class of Turkey in which made Turkey proud with their achievements part in the Innovation Week in Darüşşafaka Schools for high school students. received the “Championship Cup” during the Turkey. organization held in Istanbul Congress Center. A Great Pride by Darüşşafaka Robotics Club in the Innovation Week The first robotics club in Turkey, “Sultans of Turkey” have won around 20 international awards so far. In 2019, the team had a historic victory in the First Robotics Competition held in the USA. Additionally, the team received the “Engineering Inspiration Award” in the grand finals held in Houston. For their great achievements, members of the Darüşşafaka Robotics Team “Sultans of Turkey” were rewarded with the “Championship Cup” by Muharrem Kasapoglu, Minister of Youth and Sports, on May 4. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 49

136 Students

THE NUMBER OF STUDENTS IN THE MUSIC CLUBS

Culture & Life As for the audio branches, there are total 11 During the 2019-2020 academic year, 30 clubs students in the instrumental clubs as well as Pop were formed in 10 different branches for 9th, 10th Rock Club and Singing Club. 67 and 11th graders. The details and contents of the Students clubs were introduced to the students in the “Club As for the visual arts – creative branches, there are Introduction Fair” event held in TİM Show Center in total 34 students in the Painting, Sculpture and THE NUMBER OF September. Fashion-Jewelery Design Clubs. STUDENTS IN THE VISUAL ARTS CLUBS As for the art branches, the number of students Physical Education who participate in music clubs is 125, whereas it is 9th, 10th and 11th graders attend to Physical 67 in visual arts clubs. Education classes. The Club continues its activities in , , Folk Dances, Football, Table and Chess branches.

The Student Distribution According to Art Branches

Students Guitar Flute Clarinet Trumpet Piano Violin Rhythm Pop Singing Total Visual Interested Saxophone Percussion Rock Music Arts in Arts 9th Grade 20 5 7 3 8 10 13 1 --- 66 43 10th Grade 14 9 4 4 9 7 12 1 --- 59 24 11th Grade 2 ------1 3 4 5 11 --- Total 36 14 11 7 17 18 28 6 5 136 67 50 Darüşşafaka Society Annual Report 2019

Darüşşafaka High School Darüşşafaka High School enabled their students to participate in various activities and to develop their social, cultural and personal skills throughout the year.

A Selection of Activities for Darüşşafaka High School Students

Theater Play “Under the Castle” – Zorlu PSM January 10 Istanbul Modern Museum Activity January 15 Visit to the Mint January 16 Eyüboğlu Active Painting Contest January 16 Istanbul Modern Museum Activity January 17 Movie Night February 8 Borsa Istanbul Seminar February 19 GE Activity: Craft Theater “Photograph 51” play February 24 Istanbul Amusement Park March 7 12th Grade Snow Park March 17 Fizy Music Contest March 20 Sabancı Museum Trip – Russian Avant-garde March 27 Movie Night April 8 Theater Play “Criminal Hearts” April 9 Trip to SALT Galata April 10 ECNAIS Show – Odakule/Sepetçiler Palace April 10-11 IKSV presentation and Workshop information May 6 Trip to Glass Furnace May 23 Breakfast – Picnic May 27 Theater Play “Dünyada Karşılaşmış Gibi” May 28-29 FRC Robotics Club’s Presentation in the “Engineering Day” activity organized by SIEMENS September 20 Denmark Children’s Festival September 21 TEKNOFEST Istanbul Aviation, Space and Technology Festival September 22 Attendance of FRC Club to the “Science in Deep Space Conference” by Dr. Umut Yıldız September 25 FTC Robotics Club – Make X Contest Finals in Turkey October 12 FRC and FTC Robotics Clubs Best Buddies -Leadership Training October 13 FRC Robotics Club Mersin Off-Season Robotics Competition October 17-21 YGA Presentation October 21 29 October Republic Cup Competitions October 24 FRC and FTC Robotics Clubs - Best Buddies Right Approaches to People with Disabilities October 26 29 October Republic Day Celebrations October 29 IKSV Lower Floor Activity October-November Spanish Course Continuous Participation to Istanbul Marathon and Rhythm Percussion Group’s Concert for Runners November 3 “Breath Into the Feature” Sapling Planting Activity in Kocaeli by FRC and FTC Robotics Clubs November 11 Cuban Friendship Association – Spanish Studies and Activities November 14 Milli Reasürans Chamber Orchestra November 14 FRC Robotics Competition November 22-25 “I Have an Idea” Presentation November 26 Theater Play “I, Don Quixote” November 28 Pasta Cooking Activity with the Chairman of the Board November 28 HOBY Leadership Seminar in Turkey November 29-30 Sertrans Artificial Intelligence Activity Continuous İşbank Classical Music Concert December 3 Trip to ITU Çekirdek Incubation Center December 18 Milli Reasürans Chamber Orchestra December 26 İstek Bilge Kağan Debate Competition December 28-29 Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 51

Darüşşafaka-HOBY Leadership Seminar of the Board Sinan Yaman, Microsoft Turkey CTO HUGH O’BRAIN As per CEFIC’s social responsibility approach, Onur Koç, ODTU Teknokent General Manager YOUTH LEADERSHIP Darüşşafaka Schools led an effective leadership Serdar Alemdar, TeknoSA General Manager Bülent PLATFORM seminar in Maslak Campus on November Gürcan, MESA HR Coordinator & MBSR Trainer 29-30. The seminar was organized in cooperation Meltem Büyükerdoğmuş, Google Country Director In 2019, Darüşşafaka – HOBY with Darüşşafaka Society and HOBY Hugh Mehmet Keteloğlu, Sociologist, Communication Leadership Seminar in Turkey O’Brian Youth Leadership Platform under the Advisor and Trainer Pınar Saklıyan Koçali. was conducted in cooperation sponsorship of Gülaylar Group. The two-day with HOBY, Hugh O’Brian event was conducted under the leadership of ECNAIS Meeting Music Recital Youth Leadership Platform. the Chairman of Darüşşafaka Society’s Board Darüşşafaka High School students gave a musical All Darüşşafaka High School M. Tayfun Öktem, HOBY USA CEO Javier La performance at ECNAIS Meeting which was held at students were able to learn Fianza and CEFIC & AERIUM Turkey CEO, HOBY Sepetçiler Palace on April 11. about the inspiring vision of this Graduate and Darüşşafaka High Advisory Board platform. Member Anthony Khoi. Various prominent guests participated in the event to share their leadership journeys with Darüşşafaka students. Some of the guests are as follows: YGA Founder and Chairman 52 Darüşşafaka Society Annual Report 2019

Darüşşafaka High School Darüşşafaka High School 12th grade student Defne Hadiş received “Honorable Mention Award” at the 26th International Philosophy Olympics in Rome.

• Şişli Terakki High School 19th Poetry Festival Jury Special Award: Gökalp Hasbutçu (10th grade) • Fenerbahçe College Sabahattin Ali Short Story Competition Third-Place in Istanbul: Cansu Demir (10th grade) • Haydarpaşa High School Cemal Süreya Poetry Competition Fifth-Place in Turkey: Yağmur Ünaldı (10th grade) • Private Sezin High School 11th Futuristic Scenario Competition “The Best Content Award” • MEF Schools Cartoon Competition “Jury Special Award:” Merve Efe (10th grade) • Getronagan Armenian High School Ara Güler Photograph Competition First-Place: Ferdi Bozdoğan (11th grade) - Zeynep Özmen (10th grade) • Arel Schools Active Experiment Competition - Second-Place in Physics: Hatice Çalışkan- İbrahim Kerem Atmaca-Emine Dikmen (11th grade) Competitions and Awards • Young Girls Football MEB City Championship - INTER-HIGH SCHOOL Second-Place in Istanbul PHILOSOPHY IPO 2019 Rome Philosophy Olympics Honorable • Young Girls Football Quarter Finals in Turkey - OLYMPIAD Mention Award Group Champion (Çanakkale) Darüşşafaka High School 12th grade student • Young Girls Badminton MEB City Championship - On December 2, 2018, the Defne Hadiş received “Honorable Mention Award” Second-Place in Group Philosophy Society of Turkey at the 26th International Philosophy Olympics in • Young Boys Volleyball MEB Sarıyer District held the 23rd Inter-High School Rome. More than 100 high school students from First-Place Philosophy Olympiad. In this 50 countries competed in the Olympiad, in which • Young Girls Basketball MEB City Championship - Olympiad, Darüşşafaka High Defne Hadiş was granted an award. On December Second-Place in Group School 12th grade student Defne 2, 2018, the Philosophy Society of Turkey held • Young Boys Football Private Schools League Hadiş placed sixth among 503 the 23rd Inter-High School Philosophy Olympiad. Champion students and represented Turkey In this Olympiad, Darüşşafaka High School 12th • FRC 2019 Istanbul Regional-Team Spirit Award in 2019 in Rome. grade student Defne Hadiş placed sixth among 503 • FRC 2019 Long Island Regional-Team Spirit students. Afterwards, Ms. Hadiş became qualified Award-Finalist to participate in 26th International Philosophy • FRC 2019 Houston Championship-Engineering Olympics in Rome when she placed the first rank in Inspiration Award the foreign language proficiency exam. • Turkish Exporters’ Assembly the Innovation Week - Innovative Youth Contribution Award • Kabataş High School Ömer Seyfettin Short Story • FRC 2019 Mersin Off Season-Jury Special Award Competition Honorable Mention: Yağmur Ünaldı • FRC 2019 Ankara Off Season-Entrepreneurship (10th grade) Award Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 53

ceremony, the remembrance diplomas for 1969 graduates were presented as the 50th anniversary of their graduation. The new graduates had their final lecture from Tayfun Bayazıt.

Admission to High School Ceremony The 8th grade students of Darüşşafaka Secondary School received their diplomas in a ceremony held at Darüşşafaka Ayhan Şahenk Sports Hall on May 28. In the ceremony, 119 students received their diplomas. The highest-ranked student of 150th term was Esma Topal, second-ranked Begüm Serttaş and third-ranked Azra Gökdemir.

2018-2019 Academic Year Closing Ceremony Darüşşafaka Schools’ Closing Ceremony for the Academic Year 2018-2019 was held at Fettah Aytaç Sports Hall on May 29. In the ceremony, the Chairman of Darüşşafaka Society’s Board M. Tayfun Öktem delivered a speech and expressed his personal thanks for each student who was ranked in national and international competitions. Additionally, Fettah Aytaç, Nazıma Antel and Cihat Örge-Halit Ziya Yılmayan Social Responsibility Awards were handed out to winners.

7th Darüşşafaka MUN Conference was organized Darüşşafaka Schools MUN (Model United Nations) Club organized the 7th Darüşşafaka Model United Nations Conference. The theme of 7th DŞMUN Conference was “Search for Clarity: To Break the Unending Political Cycle Caused by Transnational Debates.” The conference was held Traditional Events of at Darüşşafaka Maslak Campus on October 10-13. ANNIVERSARY OF 202 students from 17 schools, 24 teachers and 21 FOUNDATION Darüşşafaka Schools committee chairmen across Turkey attended to the conference. The opening speech of the conference On March 30, 1863, five Ottoman Anniversary of Foundation where the students bring forward solution intellectuals set out to create On March 30, 1863, five Ottoman intellectuals set proposals for universal problems and submit drafts “equality of opportunity in out to create “equality of opportunity in education” was made by a Retired Ambassador Arslan Hakan education” for our children and for our children and established the Darüşşafaka Okçal (DŞ’73) at the İş Sanat Cultural Center. established the Darüşşafaka Society. The 156th anniversary was celebrated Society. The 156th anniversary in an event held at TIM Maslak Show Center. 96th Anniversary of the Republic was celebrated. was celebrated in an event held Darüşşafaka students performed a play called Darüşşafaka Students celebrated the 96th at TIM Show Center. “21st Century Visionaries.” At the beginning of the anniversary of the Republic with great joy. The play, the new students meet their new school and celebration took place at TIM Show Center on other Darüşşafaka students. The play unfolds with October 25 and Darüşşafaka Schools Turkish the life stories of 21st century visionaries; students Language and Literature teacher Anıl Kanber made portray the 156-year history of Darüşşafaka from the opening speech. Then the students performed today to the lives of their visionary founders in the a play which portrayed the foundation of the past. Republic and the unfolding events. The play, which was based on the work of Nazım Hikmet’s “Kuvayı Graduation Ceremony Milliye (Nationalist Forces in Ottoman Empire),” 145th term students of Darüşşafaka High School was called “Invisible Heroes of Kuvayı Milliye.” received their diplomas in a graduation ceremony Darüşşafaka students also performed the favorite held at TIM Show Center on June 18. In the songs of Atatürk in the play. 54 Darüşşafaka Society Annual Report 2019

Traditional Events of Darüşşafaka Schools As a result of one-year long efforts of Darüşşafaka secondary school and high school students, the students displayed their musical talents at the Art Night with a theme on “Film Soundtracks,” which was held at TIM Show Center on April 29.

Çanakkale Naval Victory and Martyrs’ Day 19 May Youth and Sports Day THEATER Memorial Ceremony 19 May Youth and Sports Day was celebrated at PERFORMANCE Darüşşafaka Schools commemorated the 104th Darüşşafaka football field on May 19. High school OF DARÜŞŞAFAKA anniversary of 18 March Çanakkale Victory on students put in various performances in the STUDENTS March 18 at TIM Show Center Fettah Aytaç Hall. ceremony. Then, students participated in games The ceremony was organized with the help of and sports activities and had fun all day. Darüşşafaka High School 11th graders of Darüşşafaka High School. In the Performers put in a performance ceremony, Darüşşafaka students performed a Darüşşafaka Art Night of “Fiddler on the Roof” play drama that portrayed the conditions how the As a result of one-year long efforts of Darüşşafaka in English version at Sarıyer Çanakkale Victory was gained. The value placed on secondary school and high school students, the Municipality Boğaziçi Show individuals during the war was also another point students displayed their musical talents at the Art Center on May 20. to be depicted. Night with a theme on “Film Soundtracks,” which was held at TIM Show Center on April 29. At the Art 23 April National Sovereignty and Children’s Night, Darüşşafaka students performed legendary Day Ceremony film soundtracks and all audience had a great Darüşşafaka Secondary School celebrated the night. National Sovereignty and Children’s Day (April 23) at Darüşşafaka Ayhan Şahenk Sports Hall on April Theater Performance of Darüşşafaka Students 18. Darüşşafaka students performed a dance show Darüşşafaka High School Performers put in a and displayed other shows in the ceremony. performance of “Fiddler on the Roof” play in English version at Sarıyer Municipality Boğaziçi Show Center on May 20. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 55

14TH SAİT FAİK SHORT Competition and Award Programs STORY COMPETITION 12th Op-Ed Competition “Ahmet Rasim is Alive!” 14th Sait Faik Short Story Competition “14th Sait Faik Short Story Darüşşafaka Secondary School organized the 12th “14th Sait Faik Short Story Competition” awards Competition” awards ceremony Op-Ed Competition “Ahmet Rasim is Alive!.” The ceremony was held on April 25 at TIM Fettah Aytaç was held on April 25 at TIM results of the competition were announced at an Hall. Fettah Aytaç Hall. award ceremony held on April 11 at TIM Show Center Fettah Aytaç Hall. The selection committee This year 506 short stories across Turkey consisted of Darüşşafaka Society Board participated in the competition. One of the short Member Hakan Güldağ, Journalist Funda Özkan, stories was from Azerbaijan. Darüşşafaka High Cumhuriyet Daily Newspaper Columnist Figen School students took part in the competition with Atalay and Hürriyet Daily Newspaper Education 23 short stories. The Pre-Selection Committee Services Manager Nuran Çakmakçı. Three Op-Eds consisted of Darüşşafaka Schools Literature from Istanbul secondary school applicants were teachers, whereas the Higher Committee consisted selected. Additionally, it was decided to reward of Gülsün Kaya, Muzaffer Kale, Handan İnci and three Op-Eds from Darüşşafaka Secondary School Necdet Neydim. After a meticulous evaluation applicants as well. İstanbul Secondary Schools of the stories, the Committees gave awards to First-Place was Private İstek Kaşgarlı Mahmut following applicants: As for Turkey-wide applicants; Secondary School student Devin Doğal Hardal İstanbul Private SAJEV Küçük Prens High School with the Op-Ed titled “Ütopyası’nın İzinde Yürüyen student İnci Mina Varol ranked first with the Anam;” and Darüşşafaka Secondary School first short story titled “Kekeç Hasan’ın Mânisi;” Private place was İdil Deniz Aktürk with her Op-Ed titled İstanbul Galileo Galilei Italian High School student “Teknoloji Tutsakları.” 56 Darüşşafaka Society Annual Report 2019

Competition and Award Programs The 10th Inter-High School Salih Zeki Mathematics Research Projects Competition was held this year. The final exhibition of the Competition was presented on May 21-22-23 at Darüşşafaka Ayhan Şahenk Sports Hall.

Seçil Yüzak ranked second with the short story Ass. Prof. Erhan Gürel were the members of the 4TH DARÜŞŞAFAKA 3D titled “Dönüşüm;” and Mersin ODTÜ Geliştirme selection committee. As a result of the pre- PRINTING WORKSHOP Vakfı Private Anatolian High School student Büşra selection of the jury, 21 projects went to the finals. AND COMPETITION Dündar ranked third with the short story titled These 21 projects, which were selected among “Uyku.” As for Darüşşafaka High School applicants; 132 projects, were exhibited at the school for Under the main sponsorship of 11th grade student Eray Çakar ranked first with three days. The top three ranked students were BNP Paribas Cardif, Darüşşafaka the short story titled “Kelebek Etkisi;” 12th grade determined and granted with their awards in a High School hosted the fourth student Defne Hadiş ranked second with the short ceremony held on May 24. The first ranks across “3D Printing Workshop and story titled “Mabet Ağacı;” and 11th grade student Turkey were Ozan Kaymak and İbrahim Suat Evren, Competition,” which is the Abdullah Altepe ranked third with the short story students from Private Denizli College, whereas the pioneer in Turkey, with the titled “Semizotu Çiçeği.” first rank of Darüşşafaka was 10th grade student cooperation of 3Durak, Autodesk Murat Menteş. and Siemens. The winners were 10th Inter-High School Salih Zeki Mathematics granted with their awards. Research Projects Competition 4th Darüşşafaka 3D Printing Workshop and The 10th Inter-High School Salih Zeki Mathematics Competition Research Projects Competition was held this Under the main sponsorship of BNP Paribas Cardif, year. The final exhibition of the Competition was Darüşşafaka High School hosted the fourth “3D presented on May 21-22-23 at Darüşşafaka Ayhan Printing Workshop and Competition,” which is the Şahenk Sports Hall. Bilkent University Faculty pioneer in Turkey, with the cooperation of 3Durak, Members Prof. Dr. A. Sinan Sertöz (DŞ’73) and Autodesk and Siemens. The winners were granted Prof. Dr. Azer Kerimov, METU Faculty Members with their awards. Prof. Dr. Cem Tezer and Doç. Dr. A. Özgür Kişisel and METU Northern Cyprus Faculty Member Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 57

Darüşşafaka Schools hosted the competition, 7th Traditional Darüşşafaka Chess Tournament 7TH TRADITIONAL believing that 3D printing promotes innovative Darüşşafaka Schools hosted the 7th Traditional DARÜŞŞAFAKA CHESS thinking and design as well as developes design Chess Tournament on March 2-3 Traditional Chess TOURNAMENT and software skills of the students. The award Tournament. The tournament was organized in ceremony of the competition was organized individual team categories, which were Juniors Darüşşafaka Schools hosted the again by Darüşşafaka on March 16. There were (Secondary School Students born in 2007 or later), 7th Traditional Chess Tournament two separate categories in the competition: guest Stars (Secondary School Students born in 2006 or on March 2-3 Traditional Chess schools and Darüşşafaka High School. For the before) and Youth (High Schools). Tournament. competition, in which 25 teams participated from Istanbul, the high school students prepared their Yusuf Ziya Pasha Awards projects on the theme of “Innovation Everywhere.” In memory of the founder of Darüşşafaka Society, The results of the jury’s evaluations are as follows: Yusuf Ziya Pasha, the Darüşşafaka graduates Sezin Schools ranked first, Istanbul Science and Art who ranked in the university admission exam Center ranked second and finally Şişli Vocational are granted with Yusuf Ziya Pasha Awards. The Anatolian High School ranked third. As for the graduates who were accepted to universities with Darüşşafaka High School category, the DŞ-1 team the highest degrees in 2019 received their awards. ranked first, DŞ-4 team ranked second and DŞ-3 These graduates are listed below: team ranked third. Additionally, Şişli Vocational and Technical Anatolian High School was granted with BNP Paribas Jury Award while TED Rönesans Anatolian High School was granted with 3D Club Special Award.

Ali Burak Kara Koç University Law (Scholarship) Deniz Şengün Law Elif Selin Karaca Kırklareli University Law M. Yaren Kaynar Sabancı University Art and Social Sciences Program (Scholarship) Mahmut Akkaşoğlu Hacettepe University Political Science and Public Administration Rabia Uzun Sabancı University Art and Social Sciences Program (Scholarship) Yasemin Yur Koç University Economy (Scholarship) Aslıhan Okur Sabancı University Engineering and Natural Sciences Programs (Scholarship) Rabia Topgaç Muğla Sıtkı Koçman University Medicine-English Şeyhmus Aca Koç University Mechanical Engineering (Scholarship) Yiğit Fatih Çakıllı Koç University Physics (Scholarship) Aşkım Duygu Argus Özyeğin University Communication Design (Scholarship) Yasemin Ulu Beykent University Communication and Design (Scholarship)

Fettah Aytaç Award Cihat Örge-Halit Ziya Yılmayan Social FETTAH AYTAÇ In memory of Fettah Aytaç, who initiated the Responsibility Award AWARD English education at Darüşşafaka, the Fettah Aytaç This year the Cihat Örge-Halit Ziya Yılmayan Awards are annually granted to the best students Social Responsibility Award was granted to 10th In memory of Fettah Aytaç, who in the field of social studies, sciences, math, art, grade students who delivered “Painting Lesson” initiated the English education technology and sports. This year the winners are to the TEV Celalettin Buluğ Primary School 1st at Darüşşafaka, the Fettah Aytaç FRC Robotics Club in the Sciences and 12th grade grade students every Tuesday for the whole Awards are annually granted to student Defne Hadiş in the Social Studies. year. Additionally, the students in charge of Best the best students in the field of Buddies Civil Society Project which is a non-profit social studies, sciences, math, Nazıma Antel Awards organization that works to create opportunities art, technology and sports. The first female principal of Darüşşafaka, Nazıma for personal friendships between those with This year the winners are FRC Antel was not only the pioneer of English education intellectual or developmental disabilities and Robotics Club in the Sciences in Darüşşafaka but also the initiator of the volunteers. and 12th grade student Defne admission of female students to Darüşşafaka. In Hadiş in the Social Studies. memory of her, Darüşşafaka presents “Nazıma Antel Awards.” This year the students who participated in the DŞMUN Conference were granted with Nazıma Antel Awards.

Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 59

Corporate Communications As part of its communications campaign this year, Darüşşafaka Society addresses to public through “Can Do Without” slogan: “Can do without some things, but cannot do without education.”

The total number of news in the press was 1.322 while the number of live broadcasts with the participants from the Board was 10.

Eid al-Fitr (Ramadan) Campaign The Ramadan Campaign held between May 6 and June 9 received support from eight cities and advertised in total 1.400 billboards, 1.400 CLP and several Shopping Mall screens. Total 230.000 leaflets of Darüşşafaka were distributed across Turkey with the support of Hürriyet Daily Newspaper. On June 9, the documentary “Var Ettiniz Var Olun” was broadcast on the channel NTV. Total 146.067 users logged in 213.678 times to the Corporate Website of Darüşşafaka; total TRY 3.832.000 donations were received. In the social media, total 866.533 users were reached through 22 content shares.

Eid al-Adha (Feast of the Sacrifice) Campaign The Feast of the Sacrifice Campaign held between Our mass communication activities are focused July 15 and August 16 received support from on telling more people about Darüşşafaka in an 12 cities and advertised in total 2.564 billboards, efficient way in order to promote them to make 2.800 CLP and 203 outdoor screens. Total 1,322 donations as well as to protect and raise the 230.000 leaflets of Darüşşafaka were distributed News reputation of Darüşşafaka. across Turkey with the support of Hürriyet Daily Newspaper. Our public service announcement NUMBER OF NEWS In addition to big campaigns such as Holiday was broadcasted 1.492 times on TV channels ON MEDIA Campaigns and Darüşşafaka Admission Exam and 1.214 times on radios. Total 161.133 users announcements, Darüşşafaka carried out special logged in 213.678 times to the website; total day activities, donation-related activities and social TRY 8.764.716 donations were received. In the media projects in 2019 as well. social media, total 4.461.173 users were reached through 27 content shares. The “Can do without some things, but cannot do without education” public service announcement, Examination Campaign which has addressed to public since 2015, as In 2019, Darüşşafaka Admission Exam, the first well as “The principal is calling for you, Selim!” stage of the 8-year journey for students, was advertisement for Darüşşafaka Admission Exam, advertised with an intense campaign process in which was prepared with the voluntary support of order to reach children who met the criteria. The 4129Grey Agency in 2019, were covered in TVs, examination announcement was broadcasted radios, newspapers and journals. 12.223 times on TV channels and 3.039 times 60 Darüşşafaka Society Annual Report 2019

Corporate Communications In the 9th Social Media Awards organized by Istanbul Technical University (ITU) Management Engineering Club, Darüşşafaka Society was granted with the “Most Effective Use of Social Media by a Non-Governmental Organization.”

on radios through public service announcement raised awareness by distributing examination in 2019. Public service announcement was leaflets to the passengers in taxis in Istanbul. The broadcasted on local and national channels. Public websites with a high number of visitors, such 1.465 service announcement was also screened 206.220 as Ekşi Sözlük, Onedio, Zaytung, Memurlar.net Students times in movie theaters. Campaign visuals were included exam banners and advertisements on displayed 9.847 times in outdoor advertisement their websites. The visibility was ensured through THE NUMBER OF areas. Additionally, the Darüşşafaka approach social media contents with or without ads. Tailored STUDENTS SAT FOR to education was explained through interviews contents for social media users were prepared DARÜŞŞAFAKA EXAM with Darüşşafaka Schools’ General Manager Ebru so that the domino effect can be achieved when Arpacı and live broadcasts via phone calls. they shared these contents in their accounts. The people who care about children’s education were 26 municipalities supported the examination ensured to share the content in their network, thus, announcement by dedicating their outdoor a considerable circulation occured in the digital advertisement areas (billboards, megalight, media. The social media influencers were enabled screens, CLPs, municipality busses) to to post the content. All school principals received Darüşşafaka free of charge. Muhtar offices (village a reminder bulletin about Darüşşafaka Admission head offices) and Family Health Centers put Exam. A Call Center was founded with the support up the examination announcement posters on of our in-kind donor Atos; and the center called all their doors. Six non-governmental organizations schools that had potential students and confirmed shared the examination announcement in their if they received the informative bulletins sent by networks. Corporate companies supported Darüşşafaka Schools. One of the leading logistics Darüşşafaka by hanging the exam posters on their companies of Turkey, Netlog covered the back side branches. Chamber of Taxi Drivers in Istanbul Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 61

of nearly 10 vehicles, which operated in Adana, Gaziantep, Ankara and Samsun regions, with the examination announcement banners.

The examination announcement was displayed 500 posts 15.862.670 times through web ads. Total 1.962 students applied for the exam, and 1.465 students Number of posts on took the exam. Facebook, Twitter and Instagram in 2019 Great support from Atos for Darüşşafaka Examination Announcement! Atos made around 6.000 calls and reached primary school principals of the potential students for 20 days and informed them about the Darüşşafaka 23.686.724 Exam. Principals also confirmed whether they received the informative documentation for the Number of views examination. This operation was conducted for the first time this year and Atos showed a great on Facebook support by letting all candidates know about the admission exam, which is a starting point for “equality of opportunity in education” mission of Darüşşafaka. 4.076.500

Sertab’s Musical in support of Darüşşafaka Number of views on Twitter “Sertab’s Musical,” which has been a sold out project since its launch, was put on stage on March 24 in support of Darüşşafaka for “equality of opportunity in education.” The event, which took 2.437.742 place at UNIQ Hall, was made visible in media through two press bulletins. Mrs. Erener went live Number of views on NTV channel through a phone call and invited all art-lovers to the concert that she was going to on Instagram Stories perform in support of Darüşşafaka. Since February, there were 31 news in the media about the concert, SERTAB’S MUSICAL whereas there were 12 posts in the social media ON STAGE FOR accounts. 1.396.925 DARÜŞŞAFAKA Social Media Number of views on LinkedIn “Sertab’s Musical,” which has The official social media accounts of Darüşşafaka been a sold out project since Society were one of the significant sources for its launch, was put on stage on direct communication in this year as well. In March 24 for the education of addition to Facebook, Twitter, Instagram, LinkedIn Darüşşafaka students. and YouTube accounts, Darüşşafaka included 473.996 the Spotify account to its registered trademarks in 2019. In 2019, nearly 500 posts were made on Total number of interactions Facebook, Twitter and Instagram accounts. The on social media number of content shares was 23.686.724 times on Facebook, 4.076.500 times on Twitter and 2.437.742 times on Instagram. The total number of views on LinkedIn reached 1.396.925. The 54.000.000 total number of interactions on social media was 473.996. In the 9th Social Media Awards organized by Istanbul Technical University (ITU) Management Number of displays of Engineering Club, Darüşşafaka Society was digital advertisement granted with the ‘Most Effective Use of Social Media by a Non-Governmental Organization’. 62 Darüşşafaka Society Annual Report 2019

Corporate Communications Darüşşafaka Society attended to the 41st Istanbul Marathon, one of the fundraising activities of the Society, under the slogan “We Run For Charity If the Education is in Question.”

www.darussafaka.org 2019 results

115

Number of published news 834.998

Number of individual users

Website 65TH SAİT FAİK In 2019, total 115 news were published on www. ABASIYANIK STORY darussafaka.org. Throughout the year, the website 1.212.989 AWARD WENT TO was visited by 834.998 individual users; there were MELİSA KESMEZ! 1.212.989 logins and 3.327.102 page views. In Number of logins during comparison to the previous year, the number of Organized in the memory of the the year visits increased by 28%; number of new (first time writer Sait Faik Abasıyanık every visitor) users by 22%; average visit duration by 23%; year, 65th Sait Faik Abasıyanık page views by 52% and the instant exits from the Story Award was given to Melisa website decreased by 11% in 2019. The realization Kesmez this year. ratio of donations increased by 60% compared to 3.327.102 the previous year. Digital advertisements received 54 million views throughout the year and there Number of viewed pages were 275.000 visits to the website.

65th Sait Faik Abasıyanık Story Award went to Melisa Kesmez! This year Melisa Kesmez received the Award for Total 63 writers applied for the 65th Sait Faik her book titled “Nohut Oda (Chickpea Room).” Story Award, which is organized and given to a The ceremony took place at İşbank’s publishing short story writer in the memory of the writer house “Kültür Yayınları” on May 14. The award Sait Faik Abasıyanık every year. This year it was was granted to Ms. Kesmez by the Chairman of organized by Darüşşafaka Society in collaboration Darüşşafaka Society’s Board Mr. M. Tayfun Öktem with İşbank’s publishing house “Kültür Yayınları.” and Jury Chairman Doğan Hızlan. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 63

41st Istanbul Marathon Darüşşafaka Society attended to 41st Istanbul Marathon, one of the fundraising activities of the 40 E-bulletins Society, under the slogan “We Run For Charity If the Education is in Question.” The communication activities which were conducted between NUMBER OF September 1 and November 3 included press PUBLISHED communication and social media communication. E-BULLETINS There were 108 news in the press and two journal adverts. The highest organic interaction in the digital media came from Twitter with a ratio of 42%. With the voluntary support of online music platforms Spotify and Fizy, two playlists “Darüşşafaka-Roket Etkisi Yapan Şarkılar” were prepared for runners so that they could listen to these lists while they were running for education. Moreover, performers of the “Güldür Güldür Show,” one of the favorite comedy shows in Turkey, also ran for Darüşşafaka students in the 41st Istanbul Marathon.

DOCUMENTARY Documentary Called “Var Ettiniz, Var Olun” CALLED “VAR ETTİNİZ, The documentary “Var Ettiniz, Var Olun” prepared VAR OLUN” by NTV was broadcasted for the first time on the channel NTV on March 30, the foundation day of Publications The documentary “Var Ettiniz, Darüşşafaka. The documentary was broadcasted Developments about Darüşşafaka were published Var Olun” prepared by NTV three times on NTV channel and 10 times on BeİN through 40 e-bulletins throughout the year. One was broadcasted for the first İz TV channel throughout the year. of the Darüşşafaka graduates Nami Gönenç time on the channel NTV on published his book “Darüşşafaka Tarihi (History March 30, the foundation day of Robotics Club is in the Headlines! of Darüşşafaka).” Many leaflets, posters and Darüşşafaka. In 2019, Darüşşafaka High School Robotics Club brochures for donations and promotions were Sultan’s of Turkey appeared 130 times in the prepared. In addition to the Annual Report, many printed media and eight times in visual and audio leaflets, posters and brochures for donations and media with its achievements. promotions were prepared.

Stories of Students Darüşşafaka High School 2019 graduate Defne Hadiş and 12th grade student Belsu Seyran’s DARÜŞŞAFAKA NEWSPAPER achievements were included in the book “Ben Darüşşafaka Newspaper, which was İstersem - İlham Veren Hayatlar (If I Want - published in December 2019, was sent to all Inspiring Lives)” written by Melis Alphan and stakeholders, mainly to donors. photographed by Mustafa Seven.

The journalist Tuluhan Tekelioğlu prepared a youth documentary for the 100th anniversary of May 19 Youth and Sports Day. The documentary told about eight young people who had dreams and achieved great successes while realizing those dreams. The documentary also included the story of Şeyhmus Aca (age 18) who came to Istanbul from Mardin after passing the Darüşşafaka Exam and took part in the robotics team of the school. The documentary “Güç Sensin” was watched by Darüşşafaka students on May 30 at the TIM Fettah Aytaç Hall.

Being the pioneer, breaking ground

In addition to being the pioneer in the education and civil society movement, our Society, with its 156-year history, serves as an example for sustainable organizations: It is the first non-governmental organization in the field of education which was born, grown and rooted in this country.

For more than 150 years, the Society has considered transparency among its basic values; therefore, our donors support the Society with full confidence and peace of mind. Regardless of the amount, each donation is of great significance and plays an essential role in the realization of dreams. 66 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities Nearly 120.000 benevolent individuals and institutions made donations to Darüşşafaka Society in the amount of TL 135 million in 2019.

Donation Activities CORPORATE AND INDIVIDUAL DONATION Donors of Darüşşafaka, who showed their support program which was initiated in April 2015, nearly RATES for 156 years, did not leave students alone this 9.488 regular donors made total TL 7.831.826 year either. In 2019, nearly 120.000 benevolent donations in 2019. Members of Darüşşafaka 66% of all donations are individuals and institutions made total TL 135 maintained their support to their school in 2019 individual donations, whereas million donations to Darüşşafaka Society.* 66% as well; the Society received a total TL 2,8 million 34% comprises the corporate of all donations are individual donations, whereas donation from 684 alumni. donations. 34% comprises of the corporate donations. 6% of individual donations comprises of the donations * In-kind, grants, copyright income, full ownership, of donors who reside in residences. In comparison individual and corporate donations are included. The with 2018, individual donations increased by amount excludes the Residence protocol donations, 59,6% whereas it was a 20% increase in corporate donations via bequest, Society asset management, donations. As for the monthly regular donation financing and other incomes.

Progress in the Monthly Donation Amounts Between 2010-2019 TL 2,8 Million 140.000.000

TOTAL AMOUNT 120.000.000 OF DONATIONS BY

DARÜŞŞAFAKA FAMILY 100.000.000

80.000.000

60.000.000

40.000.000

20.000.000

0 01-02 01-03 01-04 01-05 01-06 01-07 01-08 01-09 01-10 01-11 01-12

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 67

DONORS’ WORDS “We need more organizations like Darüşşafaka to have a bright future. Thank you for your efforts.”

“I hope Darüşşafaka will raise benevolent children and benevolent generations for our country, government and nation. Kind regards.”

“Education is light, it is the brightness. I hope my donation will help one more child shine out, even if it is a small one.”

“I can do without one less hamburger but we cannot do without one less educated child. On behalf of all education advocates.”

“For the equality in education at the very least. Beautiful children of my beautiful country should be able to receive the education they deserve.”

“We are aware that our donations are not in vain. We rely on you. For a modern, scientific education...”

Number of Donors between 2006-2019 119,8 Thousand ‘19 119.806 ‘18 67.844 NUMBER OF DONORS IN 2019 ‘17 47.217 ‘16 33.489 ‘15 26.961 ‘14 17.059 ‘13 12.708 ‘12 9.950 ‘11 7.324 ‘10 5.008 ‘09 5.900 ‘08 3.600 ‘07 2.500 ‘06 400 68 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities In 2019, 70 benevolent people made bequest or grant donations. By the end of the year, the recorded total number of benefactors who made bequest or grant donations was 504.

Bequest or Grant Donations

2015 2016 2017 2018 2019 504 People Number of Donors Who are a 124 134 143 145 137 Residence Member and Who Made Bequest or Grant Donation NUMBER OF BEQUEST Number of Donors Who are not a 273 277 295 320 367 OR GRANT DONORS Residence Member and Who Made Bequest or Grant Donation Total 397 411 438 465 504 Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 69

2.959 Darüşşafaka is Looking For Guardians Program Donors Darüşşafaka is Looking For Guardians Program is based

NUMBER OF on donations from benevolent individuals to cover one-year DONORS WITHIN education expenses per student. These expenses, which exclude THE “DARÜŞŞAFAKA IS LOOKING FOR the meal, clothing, boarding, health services, amount to GUARDIANS” TL 10.000. The donors become a “Guardian Donor” when they PROGRAM IN 2019 make a total amount of TL 10.000 donation whether it is made at once or in installments.

81% Guardian 8% Secondary School Guardian 5% Graduate Donors 3% Double Major Donor 2% Founding Donors 1% Cornerstone Donors

Within the program: 57 Founding Donate TL 50.000 to become “Secondary School Guardian” Donors Donate TL 100.000 to become “Graduate Donor” Donate TL 200.000 to become “Double Major Donor” NUMBER OF BENEFACTORS Donate TL 500.000 to become “Cornerstone Donor” WHO BECAME A Donate TL 1 million to become “Founding Donor” “FOUNDING DONOR” OF DARÜŞŞAFAKA IN 2019 Category 2015 2016 2017 2018 2019 Founding Donors 26 32 36 46 57 Cornerstone Donors 9 14 19 32 36 Double Major Donor 39 59 77 89 98 Graduate Donors 60 79 97 117 152 Secondary School Guardian Donors 76 117 140 184 231 Guardian 494 972 1.289 1.768 2.382 Total 704 1.273 1.658 2.236 2.956 70 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities In 2019, total 1.543 benevolent institutions supported Darüşşafaka by making total TL 45.918.714,06* donation.

“81 PROVINCES, The Leading Corporate Supporters 81 STUDENTS” The project which was launched in 2008 is The prominent institutions in Turkey invested in the Turkey’s longest and most comprehensive social Under the social responsibility future of our country by maintaining their support responsbility project in the field of education. project “81 Provinces, 81 to Darüşşafaka in 2019 as well. Providing Darüşşafaka Schools students with Students,” which was initiated plenty of academic and social opportunities, the in cooperation with İşbank and In 2019, total 1.543 benevolent institutions project had 54 graduates in 2019. Darüşşafaka Society, total 603 supported Darüşşafaka by making total TL students were supported in the 45.918.714,06 donation. Corporate donors also Since 2017, İşbank has supported the graduates academic year 2019-2020. contributed to the education of Darüşşafaka in their university education as well. Today 87 students through their products and services. With Darüşşafaka graduates continue their university its 156-year long efforts in changing lives through education with the scholarship support from education, Darüşşafaka grows stronger with the İşbank. support of the following benevolent institutions: Tekfen Foundation undertook all expenses of İşbank cooperated with Darüşşafaka to carry out 24 students, who were accepted to Secondary the social responsibility project “81 Provinces, 81 School in the academic year 2018-2019, through Students.” Under this project, total 603 students their whole education in secondary school. It is were supported in the academic year 2019-2020. the second year of the foundation in the corporate Since the beginning of the cooperation, each social responsbility project. The foundation year İşbank covers all expenses of 81 students became one of the “Founding Donors” thanks to its who pass Darüşşafaka Admission Exam. These donations in 2019. expenses include mainly education, clothing, food, * It includes cash and in-kind donations. In-kind boarding, social activities. donations were calculated based on the market values. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 71

Doğuş Holding has maintained its supports to Darüşşafaka Society since 2011. With support of Doğuş Holding, one of the “Founding Donors” of 24 Darüşşafaka Society, Ayhan Şahenk Sports Hall Students was constructed at Maslak Campus and facilitated all sports activities of Darüşşafaka students. NUMBER OF STUDENTS SUPPORTED BY TÜYAP TÜYAP undertook all education expenses of 24 students, who were accepted to High School in the academic year 2012-2013, till the end of high school education. It is the seventh year of TÜYAP in the corporate social responsbility project. TÜYAP is one of the “Founding Donors” of the Society.

Geneks Mümessillik has been one of the “Founding Donors” of Darüşşafaka Society thanks to its donations since 2015. Kahve Dünyası has been in cooperation with Fundación MAPFRE, with its social responsibility Darüşşafaka since 2011. The chocolate boxes and approach, primarily focuses on education and mugs designed by Darüşşafaka students are put health matters. The foundation made donations up for sale at Kahve Dünyası shops. The company to Darüşşafaka to contribute to the healthy has been one of the “Cornerstone Donors” of nutrition of students. With this contribution, the Darüşşafaka Society. foundation became one of the “Founding Donors” of Darüşşafaka Society. Siemens contributes to the technological education activities at Darüşşafaka. The company continues Tınaztepe Foundation covered the education to support Sultans of Turkey Robotics Team (SOT expenses of seven Darüşşafaka students from 2905), which participates in FRC competitions, “FIRST CHANCE the first grade of secondary school till the end of and help them in their engineering and education PROJECT” high school. With these donations, the foundation needs. The company is on the way to become a became one of the “Founding Donors” of “Cornerstone Donor.” Esas Holding, which is focused Darüşşafaka Society. on making social investments Esas Holding maintained its support to the Society in youth and employment areas, Procter & Gamble (P&G) has continued its cash in 2019 as well and contributed with the “First has developed the First Chance and in-kind donations since 2010. With the Chance Project.” The company, which is focused Project to facilitate the transition project “From Dream to Reality,” the company on making social investments in youth and process of new graduates from supported Darüşşafaka Schools in the opening employment areas, has developed the First Chance education lives into business of a planetarium and observatory. Darüşşafaka Project to facilitate the transition process of new world. In this regard, six new students as well as more than 55.000 students graduates from education lives into business graduates worked in different from other schools have benefited from these world. In this regard, six new graduates worked in departments of the Society facilities. The Company became one of the different departments of the Society throughout throughout the year. “Founding Donors” of Darüşşafaka Society. the year. The company has been one of the “Double Major Donors” of Darüşşafaka Society. Fikret Yüksel Foundation was founded by the late Fikret Yüksel (DŞ’41) in the USA and has been KVK Teknoloji Ürünleri has maintained their supporting the Darüşşafaka Robotics Club since support by purchasing holiday donation certificate 2007. in each Eid term since 2016. The company has been one of the “Double Major Donors.” Mehmet Zorlu Foundation has supported the Society with the regular monthly donations Orka Textile has been contributing to the education since 2010. The foundation became one of mission of Darüşşafaka since 2010. In 2019, the Darüşşafaka’s “Founding Donors” upon its company also showed its support to Darüşşafaka contribution to the Society in the academic year by organizing campaigns in its stores during 2018-2019. Father’s Day. The company has been one of the “Double Major Donors” of the Darüşşafaka Society. 72 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities People’s Republic of China Consulate General in Istanbul and Powerchina became the main sponsors of the Table Tennis Club within Darüşşafaka Schools.

Henkel Turkey opened the first “Forscherwelt Pegasus contributed to the Society under the (Researchers’ World)” lab of Turkey at Darüşşafaka “First Chance Project” and supported the one- Schools aiming to popularize science for year employment of one new university graduate 20 secondary school students, which is the third in the Darüşşafaka Society. The company also Students center worldwide and first in Turkey within the sponsored the transportation of students who scope of the project. Henkel became one of the wanted to attend to the activities in the other cities NUMBER OF STUDENTS “Double Major Donors” of Darüşşafaka Society with and wished to visit their families. IN ARTIFICIAL this contribution. INTELLIGENCE CODING Sanko contributed to the Society under the “First CLASS CarrefourSA has maintained its cooperation with Chance Project” and supported the one-year Darüşşafaka since 2016. The cloth bags designed employment of three new university graduates in by Darüşşafaka students have been put up for sale the Darüşşafaka Society. in CarrefourSA stores, thus, the company became one of the “Graduate Donors.” Cefic-Gülaylar Group sponsored the HOBY Turkey Leadership Congress, the local step of HOBY UPS Foundation became one of the “Graduate Leadership Camp held in the USA. The Congress Donors” by covering the one-year education was carried out at Darüşşafaka Schools with expenses of 11 students. the support of with Cefic Turkey and under the sponsorship of Gülaylar Group. Sertrans Logistics opened Turkey’s first artificial intelligence based coding class for high schools Toyota Motor Manufacturing Turkey turned the at Darüşşafaka Schools. Twenty students began visits in its manufacturing facility in Sakarya into to take the programming education within the a social responsibility project. As per this social scope of the class; the trainings have been responsibility project, TMMT urged the companies delivered by Boğaziçi University academicians. The that wanted to visit Toyota plant to make donations company became one of the “Graduate Donors” of to Darüşşafaka Society. Darüşşafaka Society with this contribution. Ford Otosan organizes monthly MP&L trainings; as BNP Paribas Cardif contributed to Darüşşafaka per the social responsibility project, Ford Otosan Schools by supporting the 3D workshop and requests the participants of these trainings to became one of the “Graduate Donors.” make donations to Darüşşafaka Society.

Turkish Airlines sponsored the transportation of Darüşşafaka Robotics Club during the FRC competitions held in the USA. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 73

TL 50.000 IN 2019, TOTAL 20 INSTITUTIONS MADE DONATIONS ABOVE TL 50.000 TO DARÜŞŞAFAKA.

People’s Republic of China Consulate General The other institutions who made cash donations BOOK GUARDIANS ARE in Istanbul and Powerchina became the main above TL 50.000 in 2019 are as follows: REQUESTED sponsors of the Table Tennis Club within Darüşşafaka Schools. Sponsors helped to The campaign called “Kitapcan Acarlar Ayakkabıcılık renew the table tennis equipment in the school. Velilerini Arıyor (Book Guardians Altıparmak Kimya Additionally, the former national athlete of Chinese are Requested)” was launched Arkem Kimya origin and Istanbul Metropolitan Municipality Table with the cooperation of Tennis Female A Team Trainer Merve Menge Avivasa Pension and Life Herkese Kitap Vakfı (Books for (Meng Li Wang) undertook the trainer duty for the Bayram Yusuf Aslan Foundation All Foundation). Since 2014, Darüşşafaka students. ÇESAV the project has aimed to help students develop book reading Defacto Herkese Kitap Vakfı (Books for All Foundation) habits. Elopar Group launched the campaign called “Kitapcan Velilerini Evolog Logistics Arıyor (Book Guardians are Requested).” Since ING Bank 2014, the project has aimed to help students develop book reading habits. Under the project, Inigo Pharmaceutical Wholesaler Secondary School and High School students Liteks Plastik receive Book Cards to buy any books and to create Misbah Muhayyeş Foundation their own library. Nezhun Tevgil Foundation Olusum Packaging In 2019, Cevdet İnci Educational Foundation, Schneider Electric Kibar Holding and Erbel Mümessillik granted their SMS Construction Engineering Mining donations for the project Book Guardians are Requested. Star Refinery Uslucan Tekstil Z Zurich Foundation 74 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities Taking the writer Sait Faik Abasıyanık as an example, whose copyright incomes have been donated to Darüşşafaka since 1964, many figures dedicated their copyright incomes to Darüşşafaka in 2019.

Copyright Incomes The other donated works include: A SIGNIFICANT • The scenario of “The Girl with the Red Scarf,” DONATION TO Sait Faik Abasıyanık: adapted from Cengiz Aytmatov’s novel and DARÜŞŞAFAKA The great man of letters Sait Faik Abasıyanık directed by Atif Yılmaz in 1977; BY ALİ ÖZGENTÜRK donated all copyrights of his works to Darüşşafaka. • The work “Hazal” written and directed by him; In 2019, total TL 545.442 were generated from • The scenarios and stories of eight works: “At A director and scriptwriter, the copyright incomes of his books published (The Horse),” “Su da Yanar (Water Also Burns),” Ali Özgentürk donated his by İşbank’s publishing house “Kültür Yayınları.” “Mektup (The Letter),” “Beni Sev,” “Kalbin Zamanı,” nearly 100 works’ copyrights Darüşşafaka has held the copyright on Sait Faik’s “Görünmeyen (The Invisible),” “Yengeç Oyunu to Darüşşafaka. The most all works since 1964. (The Crab Game)” and “Balalayka;” outstanding work of Mr. • 70 scenarios and stories that are not shooted; Özgentürk, which was also Hayri Cem donated copyright of his last book to • Four published books (“Ali Özgentürk Filmleri donated, is the scenario of the Darüşşafaka Senaryo Kitapları,” “Tanıklıklar - Adam Yayınevi,” movie “The Girl with the Red The writer and Darüşşafaka alumni Hayri Cem “Oğul - Mitos Boyut Yayınevi,” “Gizli Defterlerim - Scarf.” donated all incomes from his book “Medya Kırmızı Kedi Yayınevi”); Planlamasında Kullanılan Araştırmalar ve Veriler,” a • All copyrights of his unpublished six books. product of his long researches and analyses. Fikret Şenses:: The income from the book “Hayat Bir Oyun” Prof. Dr. Fikret Şenses donated the copyright of his by Mevlüt Dinç book “İktisada (Farklı Bir) Giriş” published in 2017. Mevlüt Dinç, a gaming programmer, donated the The copyright income from his book “İktisada income from his biography “Hayat Bir Oyun (Life (Farklı Bir) Giriş” continued to be donated to is a Game)” to Darüşşafaka Society. Mr. Dinç Darüşşafaka in 2019 as well. met with Darüşşafaka Schools students, who are interested in coding, design, artificial intelligence Onur Koç: etc. and carry on studies on these areas. Mr. Dinç Microsoft Turkey’s CTO Onur Koç donated the talked about the gaming industry in Turkey and copyright income of his book “AI For a Better in the world as well as about his position in the World” to Darüşşafaka. sector; the talk drew great attention of students. Engin Akyürek: A significant donation to Darüşşafaka The actor Engin Akyürek donated the copyright by Ali Özgentürk income of his short story book “Sessizlik (Silence)” A director and scriptwriter, Ali Özgentürk donated to Darüşşafaka. his nearly 100 works’ copyrights to Darüşşafaka. The most outstanding work of Mr. Özgentürk, which was also donated, is the scenario of the movie “The Girl with the Red Scarf.” Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 75

Donations for Special Days 4.500 Special days can become more meaningful Printed and Electronic Certificates Donors The Society has a wide variety of products to make Wedding, Mother’s Day, Father’s Day, New Job, your special days more meaningful by supporting Get Well Wishes, Birthday, Newborn, Promotion, NUMBER OF DONORS Darüşşafaka Society in your all special days. In Condolences, In Memory of, Valentine’s Day, WHO PREFER 2019, nearly 4.500 donors showed their support Women’s Day, Teachers’ Day, New Year, Eids THE SPECIAL DAY to Darüşşafaka by preferring its products both for PRODUCTS OF their weddings and other special days. New Year Products DARÜŞŞAFAKA New year products include puzzle, coasters, Wedding Products chocolates in metal boxes and candles. • Wedding Bookmarks • Wedding Card Goods and Services Donations • Wedding Magnet In 2019, total TL 1.760.000 was received as in-kind donation from 102 donors (41 individuals and 61 Newborn and Birthday Products institutions). In-kind donations were calculated Newborn and birthday magnet based on the market values. 76 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities As of 2019, the regular donation program has been renamed as “Companion.” In 2019, total 9.488 Companions made TL 7.831.826 donation and contributed to the education of nearly 1.000 students.

The Era of Donation with POS for Darüşşafaka. The Darüşşafaka supporters In 2019, a new era of donation with contactless invite their beloved ones to make donations for card began in Darüşşafaka with the cooperation Darüşşafaka through Fonzip instead of gifts on 7.8 of Interbank Card Center (BKM) under the POS their special days like birthdays, anniversaries TL Million sponsorship of İşbank. The benefactors who want and newborns. In 2019, total 12 campaigns were to contribute to education can access to donation created on Fonzip and TL 73.000 funds were SUPPORT FROM POS devices in central locations of Istanbul and raised. REGULAR DONORS can make instant and easy donations with their credit cards. The benevolent people who believe Cooperation with Zorlu PSM - Beyond Bollywood education can change lives donated TL 1 with their Musical contactless cards and provided TL 16,400 funds to On November 26, Beyond Bollywood Musical’s Darüşşafaka. premiere was staged on Turkcell Main Stage and all income from the limited number of seats Regular Donation Program - My Companion from front rows (150 seats) was donated to Education at Darüşşafaka is a long journey. Any Darüşşafaka. regular donation, regardless of the amount, is a generous support for the Society to enhance the education quality for students. As of 2019, the DARÜŞŞAFAKA SPEAKER regular donation program has been renamed as PLATFORM “Companion.” In 2019, total 9.488 Companions made TL 7.831.826 donation and contributed to Darüşşafaka High Advisory Board members the education of nearly 1.000 students. and public figures gather under a speaker platform called “Darüşşafaka Konuşmacı Platformu” and share their knowledge and Call Center 0850 222 1863 experiences to contribute to the “equality A call center has been created under the of opportunity in education” mission of Fundraising Unit to conduct My Companion Darüşşafaka. The Platform continued to Regular Donation Program. The communication support Darüşşafaka as a fundraising with all Companions is established through the call event in 2019 as well. Platform members center. Hakan Güldağ, Cem Seymen and Gülfem Saydan Sanver delivered speeches in aid of People Making Difference with Fonzip Darüşşafaka throughout the year. In 2019, the Platform raised total TL 35.500 funds Apart from raising awareness through their own for Darüşşafaka. campaigns on Fonzip, donors also raised funds

Locations for Contactless Card Donations

İstinye Park Mall Tween and Cinemaximum Beyoğlu British Consulate General Istanbul İş Towers İş Sanat Cultural Center Nişantaşı Paşabahçe Marmara Forum Shopping Mall Cinemaximum Şişli Nişantaşı Paşabahçe Zorlu Center Shopping Mall Kanyon/Cinemaximum Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 77

41st Vodafone Istanbul Marathon Darüşşafaka Society took part in the Istanbul Marathon for the fifth time this year. All voluntary runners, walkers, Darüşşafaka teachers, students, Board Members and Society staff who said “We Run For Charity If the Education is in Question” came together on November 3 for a charity run. 995 runners conducted donation campaigns between 21 October and 18 November. In this campaign, 14.673 donors made total TL 2.167.795 donation. This amount broke the 12-year record of Adım foundation. With this donation campaign, the education expenses of 210 Darüşşafaka students were met. In addition to a running team of 11th graders, 36 companies ran for Darüşşafaka in the marathon.

The top five companies who received the highest donations for Darüşşafaka in the 41st Vodafone Istanbul Marathon: • Ray Sigorta • Akbank • TAV Holding • Sabancı Holding • Bekaert

The top five individual runners who received the highest donations for Darüşşafaka in the 41st Vodafone Istanbul Marathon: • Beşir Özmen • Kıvılcım Pınar Kocabıyık • Dr. Mithat Erenus • Gül Göksel • Gülbeyaz Fayat Runatolia - Antalya Marathon IN THE 41ST ISTANBUL 77 voluntary people ran in the Runatolia Marathon Beşir Özmen (DŞ’74), who ran for Darüşşafaka MARATHON in Antalya on March 3. They ran for Darüşşafaka students in the marathon collected TL 248.650 students and raised TL 95.302 funds. Three 955 runners took part in the donation from 137 donors under the “We Run For companies who made campaigns for Darüşşafaka donation campaign. In this Charity If the Education is in Question” campaign. Society participated in the marathon. UPS campaign, 14.673 donors made Mr. Özmen became the “Individual Runner with Turkey, Tekfen Holding and Akıncı Law Office total TL 2.167.795 donation. the Highest Donation” for Darüşşafaka and listed employees contributed to the donation campaign. among the top five runners who collected the Participating in the Runatolia Marathon for the third highest donations in the 41st Istanbul Marathon. time, voluntary runners were able to raise funds Following the donation campaigns, there was a that met one-year education expenses of nine pasta party at the campus. Numerous donors who Darüşşafaka students. ran for education were granted with medals on the stage as a gratitude. Darüşşafaka also sent the medals for all runners who ran for the Society. 78 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities In 2019, Darüşşafaka Society gave 346 university students total TL 1.408.000 scholarship.

University Scholarship - Corporate Donations As of 2019, İşbank has begun to give 30 students university scholarship under the project “81 Provinces, 81 Students.” Thus, the total number of university students on scholarship by İşbank reached to 87.

The number of Darüşşafaka graduates who study at universities on scholarship by the respective foundations are as follows: 40 students by ÇESAV Foundation; 7 students by Berç ve Tülün Köşeyan Foundation; 7 students by Bridge to Türkiye Fund (BTF); 4 students by Mustafa Enver Adakan Foundation; 2 students by Turkish Diabetes Foundation; 2 students by Para Yöneticileri Derneği; 5 students by Yamantürk Foundation; and 1 student by Yeniköy Rotary Club.

University Scholarship Funds • Bedii Hakkı Kırali Scholarship Fund, launched in 2019 by Bedii Hakkı Kırali, met the university Relations with the Alumni and scholarship of 29 graduates. Scholarship Programs • Çiğdem-Oktay Scholarship Fund, established 346 in 2019 by the donor Ali Oktay Çokyüksel to Students In 2019, Darüşşafaka Society gave 346 preserve his own and his wife’s name, gave students total TL 1.408.000 scholarship. 334 university scholarship for 2 graduates. DARÜŞŞAFAKA undergraduates and 12 postgraduates were given • Nesrin-Muhittin Yılmaz Fund, launched in SCHOLARSHIP FOR scholarship. 5 of the postgraduates continue their 2018 by Yakacık Residence donor Nesrin UNIVERSITY education abroad. Yılmaz, continued to provide 10 graduates with university scholarship. Individual Scholarship Donations • Engin Özdeniz University Scholarship Fund, 21 individual scholarship donors covered one-year established in 2016 by Yakacık Residence donor scholarship of 41 university students. Engin Özdeniz, continued to provide 1 graduate with university scholarship. Foundation Donations • Feyza-Bülent Sözer Scholarship Fund, created by Having donated foundation incomes to Nuri Bülent Sözer for his wife, gave 2 graduates Darüşşafaka, Halil Uysal Foundation covered one- university scholarship. year scholarship of 2 university students, Nezhun • Ayşın Öner Schoarship Fund, established by Öner Tevgil Foundation covered one-year scholarship family under Darüşşafaka in the memory of their of 15 university students, whereas Denizsever daughter Ayşın Öner who passed away in 2017, Foundation covered one graduate’s one-year continued to provide 3 graduates with university university scholarship. scholarship. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 79

87 Scholarship Students

NUMBER OF UNIVERSITY STUDENTS ON SCHOLARSHIP BY İŞBANK

• Deniz Kocaoğlu University Scholarship Fund, Mentorship Program for Graduates MENTORSHIP created by İnci Kocaoğlu Öndoğan in the Mentorship Program aims to support Darüşşafaka PROGRAM FOR memory of her niece Deniz Kocaoğlu who graduates who study at universities in order GRADUATES passed away young, continued to provide 3 to increase their academic achievements, to graduates with university scholarship. contribute to their future plannings and, if required, Mentorship Program aims to to help them in their social lives. The Program was support Darüşşafaka graduates Equality of Opportunity in Education University carried out in 2019 as well. The program is carried who study at universities in Scholarship out under a digital platform called Mentorink order to increase their academic Equality of Opportunity in Education University application. There have been 43 mentor-mentee achievements, to contribute Scholarship was launched in 2014 by the donor matches so far under this program. to their future planning and, if Ömer Ertur and aims to support successful required, to help them in their university students who are not Darüşşafaka Speed Networking Event for Graduates social lives. The Program was graduates but have the necessary qualifications On March 16, Darüşşafaka Society organized carried out in 2019 as well. for Darüşşafaka. Burak Güç, Cemal Olgun, Haldun the Speed Networking event in cooperation with Taşman, Emine Uzel, Adnan Nadir Erdil and Engin Business Networking Academy founder Ertuğrul Tuna also showed their support and contributed to Belen. The purpose of the event was to bring the this scholarship. This year 15 new students were Darüşşafaka graduates studying at university given this scholarship. In the academic year 2019- with the business figures from different sectors 2020, 25 university students were supported from together and to help them build their careers. this fund. Additionally, the communication network and mentorship program of Darüşşafaka were assessed in this event. 80 Darüşşafaka Society Annual Report 2019

Donations and Fundraising Activities Today there are 346 Darüşşafaka graduates studying at universities; some of these graduates are Tuğçe Yıldız (DŞ’2014), Ülkü Sarıkaya (DŞ’2016), Nisanur Sefer (DŞ’2018), Defne Hadiş (DŞ’2019), Kerem Cem Kızmazcan (DŞ’2018) and Şahin Güçer (DŞ’2017). We asked them about their future plans.

Nisanur Sefer (DŞ’2018) is currently a sophomore at Istanbul University Faculty of Medicine. Nisanur is planning to apply for Erasmus program and become a successful surgeon when she graduates.

Defne Hadiş (DŞ’2019) was able to get into Nuova Accademia di Belle Arti Department of Painting in Italy. Defne Hadiş, granted with “Honor Award” at 26th International Philosophy Olympics, will receive art and philosophy education in Milano for the next three years.

Kerem Cem Kızmazcan (DŞ’2018) is a sophomore at Istanbul Technical University Electrical Engineering and Mechatronics Engineering Department. He voluntarily tutors in various projects of coding and robotics to share his knowledge with the society. Kerem Cem is planning to participate in Erasmus Program during News From Graduates his undergraduate study in order to have new ACHIEVEMENTS OF Tuğçe Yıldız (DŞ’2014) graduated from Yeditepe experiences abroad. Following his undergraduate GRADUATES ARE University Department of Psychology with the study, Kerem Cem wants to continue his education FOLLOWED highest degree and started her postgraduate in the academic area because he believes that program in the Department of Clinical Psychology quality education relies on qualified teachers. Kerem Cem Kızmazcan at the same university. Tuğçe is planning to (DŞ’2018) is a sophomore complete her postgraduate program and pursue a Şahin Güçer (DŞ’2017) is a third grade student at student at Istanbul Technical career at the university. Koç University Industrial Engineering Department. University Electrical Engineering He also started to do his double major at the and Mechatronics Engineering Ülkü Sarıkaya (DŞ’2016) currently studies at Department of Economics. Şahin is planning to do Department. He voluntarily tutors Istanbul University Faculty of Law and is doing her his internship abroad before he graduates from in various projects of coding and double major at Political Science and International the university. Following his graduation, he aims to robotics to share his knowledge Relations Department. Ülkü is planning to do her pursue a successful career in the finance area. with the society. law internship after the graduation and later on to apply for postgraduate programs abroad.

82 Darüşşafaka Society Annual Report 2019

Darüşşafaka Residences Social services organize numerous events at Darüşşafaka Residences throughout the year so that the donors can live a very active social life. In 2019, there were total 2.044 activities in the Residences.

In 2019, total 36 new donors joined Darüşşafaka Commemoration of Atatürk (November 10), Residences, whereas 6 residence donors made Mother’s Day, Father’s Day, Teachers’ Day, bequest and grant donations. The total number International Women’s Day (March 8), new year 485 Donors of residence donors who made bequest or grant and birthdays. Religious and national holidays were donations to the Society reached to 137. also celebrated in an appropriate way. Darüşşafaka Society management and Darüşşafaka students THE NUMBER OF Total 228 residence donors who also contributed joined in the celebrations with the donors as well. DONORS LIVING to the Society by individual donations made total Additionally, there were sports activities under the IN RESIDENCES TL 4.267.324 donation in 2019. supervision of trainers in order to maintain the physical health of the donors. In 2019, the Bocce Darüşşafaka Residences offer 7/24 health services Team was put together to join the Bocce League for the residents. In 2019, there were total 7.603 for ages above 60. The trainings were held in all health procedures: 3.651 in-house examination residences. Moreover, donors were given memory and 3.952 transfer. In addition, 37 surgeries were and group therapies throughout the year by an performed within the year. expert psychiatrist to preserve their bonds with the past. Social services organize numerous events at Residences throughout the year so that the donors The average age of Darüşşafaka Residents is 84; can live a very active social life. In 2019, there there are two donors above the age of 100. were total 2.044 activities in the Residences. All residences celebrated the special days, such as Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 83

A team of experts conducted seminars on special health days, such as World Heart Day, Alzheimer Day and Diabetes Day in order to promote conscious aging and to raise health related awareness; Residence Donors showed great interest in those seminars. Residence cooks and donors came together to cook as part of the kitchen activities throughout the year.

One of the Şenesenevler Residence donor worldwide known historian Prof. Dr. Feroz Ahmad had a conversation with Darüşşafaka High School students on April 18. Prof. Dr. Ahmad also had “History Talks” with residence donors throughout the year.

On account of the 96th anniversary of the Republic, all residences had big celebrations on October 29. The old generations who witnessed the first years of the Republic came together with Darüşşafaka students at a Republic Ball held in Urla Residence on October 26.

Since 2012, one of the Urla Residence residents Işıl Dilek has manually knit hats and given them to students as gifts every year before the new year. She kept the tradition this year as well.

The Number of Darüşşafaka Residence Members in 2019

The couple İsmail - Şehnaz Tiner has been living at Yakacık Residence since 2007. Name of the Institution Total Members İsmail Tiner, turning 103 this year, says that he owes his healthy life to the residence. Yakacık Residence 90 Maltepe Residence 122 Donors made handicrafts during their hobby Şenesenevler Residence 80 activities. These handicrafts were afterwards put Urla Residence 193 on the charity sales and funds were raised for Total 485 4.267 Darüşşafaka. The handicrafts made by donors TL Million throughout the year were put up for sale at the Traditional Handicraft Charity Sales event, held TOTAL AMOUNT at Yakacık Residence on May 9-10 with the OF INDIVIDUAL contribution of many donors. Total TL 40.000 was DONATIONS raised and donated to Darüşşafaka. The income BY DONORS IN from the Charity Sales of Maltepe Residence was RESIDENCES also donated to the Society. In Urla Residence, the first Charity Sales for Darüşşafaka was held this year at Narlıdere Uğur Schools. Additionally, a photograph exhibition was organized in collaboration with Urla Fotoğraf Derneği (Urla Photograph Association).

Consistently focusing on the positive

The most significant criterion to identify the development level of a country is the extension of equal opportunities in access to qualified education. As Darüşşafaka, we have been working to promote these equal opportunities since 1863.

Our children have the right to receive the best education in the best environment. Their potential is transformed into a positive future. We know that the future of even just one student is essential to the future of the entire country. 86 Darüşşafaka Society Annual Report 2019

Law Office Upon the completion of the judicial process of estates concerning 12 bequest donors, total assets in the amount of TL 15.923.606,10 were transferred to the Society.

In 2019, 757 cases were prosecuted by the Additionally, there were 29 more lawsuits and FILED LAWSUITS Law Office. By the end of 2019, the Law Office executive proceedings that concerned Darüşşafaka is prosecuting total 515 cases, 323 of which donors; all of these cases were followed by the By the end of 2019, the Law are lawsuits and 192 of which are executive attorney of affiliate foundations and donors. Office is prosecuting total 515 proceedings. 169 of ongoing cases comprise cases, 323 of which are lawsuits of lawsuits for bequest, estate, inheritance and In 2019, lawsuits were filed with regard to will and 192 of which are executive execution of will, which have been filed by the reading and estate proceedings of 21 bequest proceedings. Society. donors. The judicial process of estates concerning 12 bequest donors were completed within the By the end of 2019, total ongoing cases were 65, same year and total assets in the amount of TL which comprised of the lawsuits and executive 15.923.606,10 were transferred to the Society. proceedings concerning the affiliate foundations.

Darüşşafaka Society Law Office’s Comparative Pending Files Report by Years (As of 31.12.2019)

Type of Lawsuit 2013 2014 2015 2016 2017 2018 2019 2019 Transfer Transfer Transfer Transfer Transfer Transfer Total Transfer Lawsuits Will Reading Estate 120 134 139 159 168 162 253 169 Enforcement Inheritance Cancellation of 38 33 37 38 33 40 53 46 Will Reduction Cancellation of Title Rent Assessment 85 107 126 119 154 209 296 265 Eviction Executive Proceeding Sundry Cases 41 33 60 78 109 102 155 100 Total 284 307 362 394 464 513 757 580 Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 87

Amount of Assets Delivered by Years (TL) 15,9 TL Million ‘19 15.923.606 ‘18 18.415.258 AMOUNT OF ASSETS ‘17 6.559.423 DELIVERED IN 2019 ‘16 4.539.272 ‘15 14.401.272 ‘14 52.593.499

Distinction of Cash and Movable/Immovable for the Ongoing Estate Cases (As of 31.12.2019)

Total Asset Amount TL 154.665.183 TL 107.666.693 Immovables TL 46.998.489 Cash and Movables

Distinction of Residence Member/Bequest Donation for 154,6 the Ongoing Estate Cases (As of 31.12.2019) TL Million

AMOUNT OF ASSETS IN ONGOING LAWSUITS Total Asset Amount IN 2019 TL 154.665.183 TL 100.977.409 Bequest TL 53.687.774 Residence 88 Darüşşafaka Society Annual Report 2019

Law Office “Darüşşafaka Legal Archive” has a significant importance in terms of Darüşşafaka’s organizational memory. Therefore, Darüşşafaka continued to carry out the digitalization processes of this archive as well as all files of the Law Office.

the Istanbul Regional Court of Law, 15th Civil Chamber, which decided on the dismissal of action. The appeal lodged by the opposing party was dismissed by the 15th Civil Chamber of the Supreme Court, upholding the dismissal of the action for annulment. Accordingly, the Arbitral Award has been determined to be the final verdict. • The Arbitration Board decided to dismiss the second action (2013/1 E.) filed by the contractor against the Society with regards to the construction of the Geriatrics, Physiotherapy and Rehabilitation Center in Izmir/Urla. Consequently, the plaintiff contractor filed an action for the annulment of the decision. When the case was appealed before the Supreme Court, a Supreme Court Case Law Unification decision was taken according to which an action could be taken for the annulment of the Arbitral Awards regardless of the contract date, as claimed by the Society, “Darüşşafaka Legal Archive” has a significant pursuant to the Code of Civil Procedure, and importance in terms of Darüşşafaka’s no appeal could be lodged with the Supreme organizational memory. Therefore, Darüşşafaka Court. The court’s decision was overturned with continued to carry out the digitalization processes reference to the fact that the merits of the case of this archive as well as all files of the Law Office. should be examined by the Supreme Court, however, such examination should be performed The lawsuits which play an essential role in at the Regional Court as per the applicable law. protecting the material and moral rights of the As a result of the proceedings on the annulment Society and pose a potential risk are summarized case carried out by the Istanbul Regional Court of below with the details of their legal phases as of Law, it was decided to accept the case based on year-end 2019. the conclusion that “arbitral proceedings were not • Actions were brought (No. 2008/2 and unified executed in accordance with the legal procedures No. 2008/3) to the Arbitration Board for the stipulated in Article 492, subparagraph e of the construction of the Geriatrics, Physiotherapy and Code of Civil Procedure, which had an impact Rehabilitation Center in Izmir/Urla. At the time on the basis of the decision, and the right to of annulment/appeal against the Arbitral Award, be legally heard, as specified in subparagraph a Supreme Court Case Law Unification decision f, was not duly observed.” This decision was was taken according to which an action could appealed by both parties. The 15th Civil Chamber be filed only for annulment against the Award of the Supreme Court reversed the decision of regardless of the contract date, as claimed by the annulment in terms of the appeal of the opposing Society, pursuant to the Code of Civil Procedure party, while ruling in favor of the opposing party and no appeal could be lodged with the Supreme in terms of attorney and litigation costs and Court. The case filed by the plaintiff contractor rejected the appeal of the Society regarding the to annul the Arbitral Award was examined by request to dismiss the annulment case. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 89

Support Services Immovable Property Management and Assessment Unit made the sales of 42 immovable properties of the Society in 2019. The sales revenue of these properties totaled TL 25.182.000. This year total 72 tenders were made. Out of 42 sold immovable, 29 of them were sold by tender and 12 of them were sold by bidding.

Immovable Management and Assessment in 2019 25,1 The Revenue Obtained From the Sold Immovables TL 25.182.000 Sold Immovables 42 Items TL Million Open Tender and Open Biddings 72 Items Title Deed Transactions 197 Items THE REVENUE OBTAINED FROM Full Ownership Donations 79 Items THE SOLD Bare Ownership Donations 3 Items IMMOVABLES Bequest Enforcement 47 Items Usufruct Right Cancellation 6 Items Constitution of Construction Servitude 3 Items Constitution of Condominium 15 Items Sales Transactions 42 Items Mortgage Release 5 Items Pre-Expertise and Official Expertise 660 Items Newly Issued Rental Contracts 18 Items Rental Commission Meetings 24 Items Immovables with Flat For Land Contracts 4 Items 90 Darüşşafaka Society Annual Report 2019

Human Resources In 2019, all processes have been reviewed based on current situation analyses as a requirement of Human Resources operations as well as ISO 9001 Quality Management Systems Certification.

35

Average age of employees 4

Average Seniority 3.205

Total hours of training In 2019, all processes have been reviewed based received by the employees on current situation analyses as a requirement of Human Resources operations as well as ISO 9001 211 Quality Management Systems Certification. Personnel Selection and Placement 400 females NUMBER OF In 2019, selection and placement processes PERSONNEL were conducted for Darüşşafaka Society and its 299 males RECRUITED FOR affiliated institutions; total 211 personnel have DARÜŞŞAFAKA been recruited. Gender breakdown of SOCIETY AND employees ITS AFFILIATED Darüşşafaka Society has been granted with INSTITUTIONS IN 2019 “Respect for Human Award” for the 7th time by Kariyer.net Human Resources Website for informing the candidates within the specified time and criteria for all 150 job advertisements in 2019. 28 females 17 males

Number of managers Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 91

EMPLOYEE ACTIVITIES AND INTERNAL COMMUNICATION All employees across the institutions came together at the year-end meeting in December. Year-end evaluations as well as strategic targets for 2020 were shared with the employees.

Employee Trainings: Trainings delivered within the year;

Orientation Program DS - Selection and Placement Processes for Managers Under the First Chance Program conducted in Ethics Seminar TRAINING AND cooperation with Esas Holding, six new graduates Strategical Thinking were provided with job opportunities within the DEVELOPMENT Communication and Relationship Management Society for one year. In addition to trainings for the ISO 9001 Quality Management System Training personal and professional Labor Law and Practices for Managers Number of Published Advertisements 150 development of employees, Internal Audit, Internal Control Methodology mandatory and legal trainings Number of Received Applications 110.341 In-Service Training Program - Civil Defense Team have been conducted in 2019 Number of Face-To-Face Interviews 450 Law on Protection of Personal Data as well. Number of Recruitments 211 Search & Rescue & Evacuation Fire Fighting Training and Development First-Aid In addition to trainings for the personal and professional development of employees, Occupational Health and Safety mandatory and legal trainings have been conducted in 2019 as well.

Total 876 people participated in the 56-day trainings planned for all employees in Darüşşafaka and its affiliated institutions. 92 Darüşşafaka Society Annual Report 2019

Information Technologies and Projects The number of Apple iPad tablets administered in Darüşşafaka Schools has reached to 866. The computers in one of the computer labs of the Secondary School have been replaced with Apple iMac computers.

Content management software of darussafaka.org has been renewed.

With the improvements and new functions added in the CRM software that the Fund Raising Unit has been using, the new integrations have been enabled in the payment infrastructure and ERP. Business intelligence reporting infrastructure has been established.

Compliance Practices Since the effective date of the Personal Data Protection Law No.6698 (PDP), compliance activities have been carried out; in this regard, data inventory, policies, disclosure and explicit consent statements have been prepared. PDP Committee has been formed with the participation of Darüşşafaka and its affiliated institutions. VERBİS (Data Controller Registry Information System) registry of the Commercial Enterprise and the Society has been Upon an organizational change by the end of 2019, completed. More than 200 personnel have been Quality Management and Projects Units have been provided with awareness trainings as part of PDP. included in the Information Technologies Unit. 866 In accordance with the certification target for ISO Tablets In the Society and its Affiliated Institutions... 9001: 2015 Quality Management System Practices in 2020, Quality Management Unit has been established NUMBER OF APPLE Software and trainings have been delivered to ensure active IPAD TABLETS We continue with the ERP (Enterprise Resource participation of the employees in the system. ADMINISTERED Planning Software) project in order to have all Consultancy services have been received in the IN DARÜŞŞAFAKA Corporate processes in one platform and to establishment process of the Quality Management SCHOOLS integrate the workflows of all units under the System. Additionally, required documentation has same infrastructure. The current practice of been prepared, updated and created. Warehouse Inventory has been stopped and 6.000 consumables and 40.000 fixtures started to be DS monitored through ERP. Budget module has been The number of Apple iPad tablets administered engaged on ERP, thus, has enabled to monitor the in Darüşşafaka Schools has reached to 866. The budgets of all institutions in one platform. computers in one of the computer labs of the Secondary School have been replaced with Apple A printing and copying control software has iMac computers. Total 50 Apple iMac computer been purchased to create an infrastructure that environments have been created in the High will enable to take printouts in all locations of School and Secondary School. Students have been Darüşşafaka institutions. enabled to take limited printouts with their tablets and computers thanks to the printing and copying software. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 93

Facility Services Facility services conducted all maintenance and repair activities in Darüşşafaka Society and its affiliated institutions throughout the year.

Maslak Campus Residence. Tartan grounds have been applied in DARÜŞŞAFAKA Darüşşafaka continued to improve the living the yard and pathway. RESIDENCES spaces in the campus in 2019 as well. Bed bases, nightstands, wardrobes and bathrooms in the The health unit at the first floor has been converted Routine maintenances, checks student houses have been renewed. Classroom into member room and the basement has been and earthquake resistance tests floors in the education building have been designed for health unit. Hairdresser salon and have been conducted in all renovated; new convention halls have been built. gym have been renovated. Technical service and residences. As for campus securities, analog camera systems environmental consulting for Urla Residence have been upgraded to IP system cameras. have begun to be outsourced. The capacity of the laundry room has been expanded. The nurse Darüşşafaka Residences pagers in all rooms and in the common areas have Routine maintenances, checks and earthquake been renewed. Hobby room has been switched resistance tests have been conducted in all with the recreation room, thus, the space of residences. The areas where the members can the hobby room has been widened. Library and spend time have been re-planned in Maltepe backgammon room have been created and put Residence. Hobby room and gym have been into service. Waste collection containers have renewed; gym has been moved to the ground been received from the municipality and have been floor. Front and back yards have been re-arranged placed in certain locations of the campus to ensure to allow our members to have more fresh air and the waste sorting. more sun. In addition to Residences, technical improvements Railings have been constructed on the pathway and developments have been implemented in in the back yard of Yakacık Residence, whereas Maltepe Special Care Unit, Maltepe Physical the pathway has been renovated in Şenesenevler Therapy and Rehabilitation Center and Urla 94 Darüşşafaka Society Annual Report 2019

Facility Services All data of the security units within Darüşşafaka Society have been entered in the ÖGBS (Private Security Information System). In this new system, data entries are done on ÖGBS instead of drafting hardcopy documents.

Yaşam Special Nursing Home and Care Center to internal audit for its “Crisis Management OCCUPATIONAL as well. In Urla Yaşam, furniture and space have Procedures.” Card pass system has been applied in HEALTH AND SAFETY been re-arranged at the lounge to make it more all premises of Darüşşafaka Society. comfortable. Four rooms at the second floor of Safety drills have been the basement have been designed as hotel rooms Occupational Health and Safety conducted for emergency by making all necessary technical, furniture and AFAD (Disaster and Emergency Management situations in Darüşşafaka furnishing arrangements. Presidency) has delivered Basic Disaster Society and its affiliated Awareness training to Residence members institutions throughout the year. Support Services Unit and employees. Additionally, Firefighting As part of the catering tender process, BCC Training has been given to emergency support Catering company started to deliver the catering team by the firefighting unit. Firefighting and services in Maslak Campus, Anatolian Side and emergency evacuation drills have been made Urla locations as of July 20, 2019. with the participation of members and personnel. Firefighting and emergency evacuation drills Civil Defense and Security Unit have been made in Maslak premises with the All data of the security units within Darüşşafaka participation of students and all personnel. Society have been entered in the ÖGBS (Private Emergency action plans and risk assessment Security Information System). In this new system, reports have been renewed in all institutions. data entries are done on ÖGBS instead of drafting Firefighting teams have been provided with applied hardcopy documents. Corporate documentation trainings. Moreover, employees have been provided and digital archive management system has with trainings on basic occupational safety, replaced the physical archiving process. Civil emergency cases and patterns of behavior in those Defense and Security Unit has been subject emergency cases.

96 Darüşşafaka Society Annual Report 2019

Museums Darüşşafaka Museum has continued to bring the past to the present whereas thousands of visitors have revived the memories of Sait Faik in the Sait Faik Abasıyanık Museum.

Sait Faik Abasıyanık Museum MUSEUM STORE The Sait Faik Abasıyanık Museum has a fascinating In the Sait Faik Abasıyanık collection of belongings, photographs, letters, Museum store, the short postcards, numerous objects and documents stories of Sait Faik printed by of the writer Sait Faik Abasıyanık, who donated İşbank Publishing House, the his books’ copyright and assets to Darüşşafaka book “Useless Man-Selected Society. Compared to the previous year, the Stories,” several Sait Faik number of visitors increased by 60% in 2019 and themed souvenirs and many reached to 35.240. Darüşşafaka products have been presented for sale. In 2019, Museum Store total TL 21.478 income was In the Museum store, the short stories of Sait generated from the store. Faik printed by İşbank Publishing House, the book “Useless Man-Selected Stories,” several Sait Faik themed souvenirs and many Darüşşafaka products have been presented for sale. In 2019, total TL 21.478 income was generated from the store.

Preservation and Exhibition Number of Visitors (Person) The painting “Kılıçlı Adam (Sword’s Man)” and “Sait Faik’in Maskı (Mask of Sait Faik),” both of ‘19 35.240 which were in the museum inventory and required ‘18 24.000 restoration, were put on exhibition in the Museum after the favorable conditions were ensured. ‘17 18.315 Additionally, the restoration process was initiated in ‘16 10.983 December for the other paper pieces and paintings in the Museum archive. ‘15 10.550 ‘14 10.376 Guided Tours In 2019, the number of Museum visitors in ‘13 5.531 114.995 particular the school groups increased by 40% compared to the previous year. Total 115 school and tour groups, including the Robert College, Enka TOTAL NUMBER OF Schools, Bahçeşehir College and Işık High School, VISITORS SINCE 2013 visited the Museum in April-May and September- November periods; approximately 5.000 guests were welcomed and provided with guided tours. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 97

ACADEMIC STUDIES The academic study of Natural History, one of the pieces in the Darüşşafaka Museum collection, has been reviewed by Prof. Dr. Feza Günergun, Head of the Science Department at Istanbul University Faculty of Literature, and has been published in the November 2019 edition of Social History Foundation Journal.

Darüşşafaka Society Museum Collection Academic Activities 11 Darüşşafaka Society Museum was opened in 2013 The academic study of Natural History, one of the Thousand and acquired “Private Museum” status as per the pieces in the Darüşşafaka Museum collection, has decision of the Ministry of Culture and in been reviewed by Prof. Dr. Feza Günergun, Head THE NUMBER OF 2015. The Museum’s collection contains all course of the Science Department at Istanbul University BOOKS IN THE materials, books, photographs, various laboratory Faculty of Literature, and has been published COLLECTION OF tools (around 4.000) and objects of Darüşşafaka in the November 2019 edition of Social History DARÜŞŞAFAKA since the beginning of its education history as well Foundation Journal. Mrs. Günergun worked on SOCIETY MUSEUM as nearly 11.000 books in many languages like the detailed study on the subject in her master’s Ottoman, Persian, French and German. thesis titled as “Evaluation of Darüşşafaka’s Natural History Collection in Terms of Science History.” Museum Renovation Upon the completion of the Museum renovation Preservation and Conservation in 2019, new display cabinets were created for The oil painting of Gazi Ahmet Muhtar Pasha, one exhibitions. of the founders of the Society, was included in the museum collection; the painting’s renovation Memory Classes has been completed in this year and the general Darüşşafaka Secondary School students continued cleanup of the entire library and books have been to take “memory” classes as part of the Turkish conducted. Frames of the watercolor paintings lesson in the Museum. The content of these of Darüşşafaka students have been renewed and classes are the rooted history of Darüşşafaka, lives prepared for the exhibition. of Darüşşafaka graduates as well as lecture notes and drawings of former students. 98 Darüşşafaka Society Annual Report 2019

Commercial Enterprises and Initiatives Urla Yaşam Special Nursing Home and Care Center, Darüşşafaka Ömran ve Yahya Hamuluoğlu Physical Therapy and Rehabilitation Center and Darüşşafaka Maltepe Special Care Unit have continued to raise funds for Darüşşafaka in 2019 as well.

Member Distribution in 2019

People Special Care 110 (23 Members Residence Transfer - 2 Members SEV Foundation) Fitness Unit 28 (6 Members SEV Foundation) Total 138

2019 General Activities Report

Total Number of Activities 270 Number of Activities in the Fitness Unit 172 Number of Internal Activities 161 Physical Exercise 109 Movie Screening 30 Special Day, Social Activity 22 Number of External Activities 11 Urla Yaşam Special Nursing Home Number of Activities in the Special Care Unit 98 and Care Center Number of Activities in Hobby Room 78 138 Number of Common Life Activities 20 Members In 2019, Urla Yaşam Center hosted 138 members, including 110 Special Care and 28 Fitness Unit THE NUMBER OF members. 51 new members have been admitted to New Member Distribution in 2019 MEMBERS OF URLA the Center throughout the year. YAŞAM SPECIAL Special Care Unit People NURSING HOME AND Social Service New member admission 41 CARE CENTER Delivering services under the Fitness Unit and Transfer from Urla Residence 9 Special Care Unit, the Center had internal and Fitness Unit external activities based on the requests and needs New member admission to the 10 of these units. There were total 172 activities for fitness unit the fit members throughout the year. SEV Foundation 1 For the special care unit members, on the other Total Admissions in 2019 51 hand, there were activities under two different categories. First category included reading, comprehending and interpreting books as well as handicraft improving activities, whereas the second category focused on comprehension, narration, matching activities. Total 98 activities were organized in this regard. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 99

Darüşşafaka Ömran ve Yahya TOTAL 308 PATIENTS HAVE BEEN EXAMINED Hamuluoğlu Physical Therapy and Rehabilitation Center In 2019, total 308 patients have been examined in In 2019, total 308 patients have been examined in Darüşşafaka Ömran ve Yahya Darüşşafaka Ömran ve Yahya Hamuloğlu Physical Hamuloğlu Physical Therapy Therapy and Rehabilitation Center. 159 of these and Rehabilitation Center. 159 patients were examined for a fee, whereas the of these patients were examined remaining149 patients were residence donors. for a fee, whereas the remaining Total 17.985 physical therapy and rehabilitation 149 patients were residence sessions (14.415 sessions for patients with donors. pay and 3.570 for residence donors) have been delivered within the year.

Specialist Dr. Elçin Aykutoğlu is the leading specialist in the Darüşşafaka Ömran ve Yahya Hamuloğlu Physical Therapy and Rehabilitation Center. In 2019, another experienced physician Dr. Nur Berksan also joined the team. In 2019, the Center delivered services with its 30 staff, which Darüşşafaka Maltepe included two physical medicine and rehabilitation Special Care Unit specialists, two specialist physiotherapists, eight physiotherapists, two hydrotherapists, one nurse Maltepe Special Care Unit was incorporated into and one speech therapist. Darüşşafaka Society Commercial Enterprises last year and since then it is operating under the name of Darüşşafaka Society Commercial Enterprise Number of Therapy Sessions in 2019 Maltepe Branch. In 2019, the Unit served average 36 members each month, including 30 residence Therapy Sessions Total 36 Members donors and six external donors. For a whole year, Rehabilitation 13.676 38 guests visited the Care Unit for their treatment Aquatic Rehabilitation 1.621 and care needs. 12 of these guests were either MONTHLY AVERAGE (Hydrotherapy) placed to the residence or sent back home upon NUMBER OF MEMBERS Robotic Rehabilitation (Lokomat 1.504 recovery. WHO BENEFIT FROM Walking Robot) MALTEPE SPECIAL Electrotherapy 644 CARE UNIT Speech Therapy 493 Turbid Whole Body Bath 47

Taking firm steps towards goals

We shoulder great responsibilities because we strive for ambitious goals. We are obliged to fully equip our children to help them realize their dreams. Therefore, we never compromise on our quality education.

We raise all our children as lifelong-learning, self-confident individuals who lead, and adopt and internalize universal values, and are aware of their duties and responsibilities towards their country and society. We provide them with an English-weighted education under full scholarship and boarding opportunities. Our overall aim is to raise our children with the competencies required by the 21st century. 102 Darüşşafaka Society Annual Report 2019

Corporate Governance Improving its independent corporate rating to 9,54 in 2019, Darüşşafaka Society has informed the public about its activities throughout the year as per “transparency” and “accountability” principles.

Relations with the Public and Stakeholders GENERAL ASSEMBLY Informing the Public Mr. M. Talha Çamaş, who acted as the Chairman Ordinary General Assembly Website: The website of the Society of the Board of Darüşşafaka Society for the last six for the calendar year 2018 of www.darussafaka.org has been visited by years, was completed. Darüşşafaka Society was held 835.000 users. There were 1.212.989 logins and at Maslak TİM Show Center, on 3.327.102 page views throughout the year. The Mr. M. Talha Çamaş (DŞ’69), whose term of office April 6, 2019. website has published all current announcements, expired, handed over his seat to Mr. M. Tayfun quarterly financial position reports, sales and Öktem (DŞ’82). In the General Assembly, which tender announcements of immovables, goods and was attended by 163 people, 152 members casted services procurement tenders. Additionally, many their votes. corporate announcements have been published on the website throughout the year. Extraordinary General Assembly: Held on December 28 at TIM Show Center, the Relations With the Society Members Extraordinary General Assembly meeting had the General Assembly: Ordinary General Assembly for “Student Guesthouse” project planned to be built in the calendar year 2018 of Darüşşafaka Society was cooperation with Tekfen Foundation on its agenda. held at Maslak TİM Show Center, on April 6, 2019. Total 84 General Assembly members participated As per the Charter of Darüşşafaka Society, the in the meeting and decided by majority of the elected chairman is entitled to assume presidency votes that “Authorization of the Board of Directors for two periods of three years at most. With the with respect to implementing and contracting the last General Assembly held, the term of office of Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 103

High Advisory Board Meetings: In 2019, the High Advisory Board convened three times; on February 16, May 4 and October 19.

Relations with Donors • Donors were informed about 2018 activities and 2019 budget in the meetings held at Urla Residence on February 21, at Yakacık on March 25, at Maltepe on March 27 and at Yakacık Residence on March 28. • Donors and Darüşşafaka supporters living in and around Bodrum came together with Darüşşafaka family in a publicity event hosted by Çağdaş Holding at Kebap Guru on September 4. • On December 3, Darüşşafaka runners who had a record level of donation campaign for Darüşşafaka Society in the 41st Istanbul Marathon came together at a pasta party and medal ceremony held at Darüşşafaka Ayhan Şahenk Sports Hall. More than 100 corporate and individual runners were presented with medals at the event. • Darüşşafaka alumni and volunteers came together at the event held at Ankara University Farabi Hall on December 4. At the event, donors living in Ankara were presented with the certificates and enjoyed the concert by Melihat Gülses-Tanini Trio. The exhibition in the foyer area hosted the paintings of Darüşşafaka students. Additionally, Darüşşafaka High School 3D Printer and Design Club students displayed their designs and products to the donors visiting their stands. • Benevolent individuals and institutions, who were entitled to become “Founding,” “Cornerstone,” “Double Major,” “Graduate,” “Secondary School Student Guesthouse project, which is planned Guardian” and “Guardian” donors under the TRADITIONAL to be built in Darüşşafaka Maslak Campus in program “Darüşşafaka is Looking For Guardians,” DONORS’ DAY cooperation with Tekfen Foundation to the end were presented with the certificates. that Darüşşafaka graduates can benefit from this The annual Donors’ Day • The Society managers and Darüşşafaka facility.” of Darüşşafaka was held students visited the donors at residences during this year on December 14 the religious and national holidays. The Assembly decided by unanimous vote at Maslak Campus. In line that the Student Guesthouse, which is planned with “transparency” and Traditional Donors’ Day to be built in Darüşşafaka Maslak Campus in “accountability” principles, The annual Donors’ Day of Darüşşafaka was held cooperation with Tekfen Foundation, shall be Darüşşafaka has organized this year on December 14 at Maslak Campus. named as “Darüşşafaka - Ali Nihat Gökyiğit Student this event since 2011. This year In line with “transparency” and “accountability” Guesthouse.” nearly 200 donors came together principles, Darüşşafaka has organized this with Darüşşafaka students on event since 2011. This year nearly 200 donors Informing the Members: The Chairman Donors’ Day. came together with Darüşşafaka students on summarized the Darüşşafaka related significant Donors’ Day. Donors were provided with detailed developments in each quarter of 2019. These information about the Darüşşafaka activities at informative letters and financial statements were the event that was hosted by 5th grade student emailed to the members three times within the Merva Güneş Atalay and 8th grade student Müge year and published on the Society’s website. Pişmiş. The two-day event was conducted under 104 Darüşşafaka Society Annual Report 2019

Corporate Governance Darüşşafaka Society paid tribute to the benefactors who have made a mark in Society’s history with respect, mercy and gratitude on their death anniversaries.

the leadership of the Chairman of Darüşşafaka COMMEMORATION Society’s Board M. Tayfun Öktem (DŞ’82). After the 2019 evaluation of Mr. Ökmen, Darüşşafaka On January 14, Darüşşafaka Schools General Manager Ebru Arpacı informed the Society delivered the donors about the developments in the school. commemoration services for the 96th death anniversary of At the event, donors were presented with their Zübeyde Hanım, the mother of certificates as part of the “Darüşşafaka is Looking Great Leader Atatürk and one of For Guardians” program and had the chance the donors of Darüşşafaka, at to walk around the schools accompanied by her graveside. students. Donors and students had lunch together at the dining hall. Afterwards, donors had a great day by taking part in different activities organized by tile, printing techniques, music, chess and table tennis clubs.

Traditional Mawlid Darüşşafaka building in Fatih in 1949 and met Darüşşafaka Society donors, who contributed to the accommodation needs of Darüşşafaka the future of children for 156 years and are not graduates studying at university. with us today, have been commemorated on May • On February 6, Darüşşafaka delivered 31, Laylat al-Qadr (Night of Decree). The Society commemoration services for 64th death prayed and recited from Quran for donors’ souls anniversary of the donor Süreyya Ilmen, namely after the noon prayer time at 14.00 at Istanbul Süreyya Pasha, and visited his graveside as Erenköy Galippaşa Mosque, at 14.30 at Ankara part of the memorial services of Maltepe Maltepe Mosque, and at 14.00 at Izmir Alsancak Municipality. Hocazade Mosque. • On April 12, Sami Serozan was commemorated in a ceremony held at Darüşşafaka on his Commemorations 43rd death anniversary. Sami Serozan’s son • On January 14, Darüşşafaka Society delivered Rona Serozan, a Law Professor, who passed the commemoration services for the 96th death away on November 6, 2018 and was one anniversary of Zübeyde Hanım, the mother of of the Darüşşafaka Society members, was Great Leader Atatürk and one of the donors of also remembered and commemorated in the Darüşşafaka, at her graveside. ceremony, to which Sami Serozan’s adopted • On January 23, Darüşşafaka Society delivered grandson Evren Kayar also attended. the commemoration services for the 7th death • On May 10, the deceased Abdurrahman Hayati anniversary of Emine Sade Dumlu, who donated Arıkan and his deceased wife Bedia Arıkan, who all of her assets to Darüşşafaka. donated the land of Maltepe Residence, were • On February 4, Darüşşafaka delivered commemorated at his 18th death anniversary in a the commemoration services for the 54th ceremony held at Maltepe Residence. death anniversary of Reşit Saffet Atabinen, • On July 12, the deceased Zeynep Oyvar, who who had a dormitory constructed next to donated the land of Yakacık Residence, was commemorated at her 26th death anniversary held at Yakacık Residence. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 105

• On June 11, Darüşşafaka Society EMPLOYEE RELATIONS commemorated the deceased Malike Bayülken, who was one of the bequest donors of An informative meeting for the Darüşşafaka, Maltepe Residence Donor and period 2019 was held with the Founding Donor, at her 3rd death anniversary in a participation of all employees ceremony. from Darüşşafaka Schools, • On August 28, Türkan Paker, who donated Residences and Society on the land of Şenesenevler Residence, was December 21 at the Society commemorated at Şenesenevler Residence for Center. her 18th death anniversary. • On November 17, Sait Faik Abasıyanık, who donated all of his assets and books’ copyrights to Darüşşafaka, was commemorated for her 113th birthday in an event organized by Darüşşafaka Society in collaboration with Adalar Municipality and Burgazadası Culture and Development Association. The winners of the inter-high school story competition in the Islands were presented with awards at an event, led by Adalılar Association. Short stories of Sait Faik were recited at the event. The writer Adnan Özyalçıner, the winner of the Sait Faik Story Awards in 1964 and 1978, delivered a speech. • On December 10, Satvet Lütfi Tozan, one of “TRADITIONAL RICE the Bequest Donors of Darüşşafaka, was DAY” commemorated at her 48th death anniversary in a ceremony held in Darüşşafaka Society Darüşşafaka alumni and Museum. supporters came together at • On December 27, Darüşşafaka Society Maslak Campus on May 5 for commemorated the 80th anniversary of 1939 the occasion “Traditional Rice Erzincan Earthquake, one of the biggest Day” organized by Darüşşafaka disasters in Turkish history, at an event held in Alumni Association. Darüşşafaka Society Museum. Relations with Employees Relations with Darüşşafaka Alumni Darüşşafaka Society Management met with • Darüşşafaka alumni were informed about the School’s academic personnel and Society’s board Society’s 2018 activities, financial statements in a breakfast organized on September 4. and 2019 budget in the meeting held at the Society Center on January 31. Different On November 29, all academic staff came together generations who studied at Darüşşafaka in at a dinner on the occasion of Teachers’ Day. academic years from 1940s till 2000s came together in this meeting and answered the An informative meeting for the period 2019 was questions of Darüşşafaka students. held with the participation of all employees from • Darüşşafaka alumni and supporters came Darüşşafaka Schools, Residences and Society on together at Maslak Campus on May 5 for the December 21 at the Society Center. occasion “Traditional Rice Day” organized by Darüşşafaka Alumni Association. The oldest Darüşşafaka alumni Galip Haktanır (DŞ’41) and the youngest Darüşşafaka alumni Ahmet Berat Şakar (DŞ’2018) delivered speeches in the ceremony. The anniversary plaque was engraved in the school pillars. The 50th anniversary certificates were handed over to Darüşşafaka alumni graduated in 1969. • On December 18, an information meeting was held for Darüşşafaka graduates. 106 Darüşşafaka Society Annual Report 2019

Corporate Governance In line with “transparency,” “accountability” and “sustainability” principles, Darüşşafaka Society received independent corporate rating services in 2013 and improved its rating to 9,54 in 2019.

Relations with Guardians Darüşşafaka Society once again ranked first CORPORATE Darüşşafaka hosted 122 students who were under the non-governmental organization GOVERNANCE admitted to Darüşşafaka in 2019 and their category as part of the Corporate Governance AWARDS guardians on September 2-8. New guardians were Awards granted at the 12th Corporate Governance informed about Darüşşafaka and its education Summit organized by the Corporate Governance Darüşşafaka Society once system in the orientation meeting. There were Association of Turkey (TKYD). The ceremony was again ranked first under the two general guardian-teacher meetings for the held on February 21 as part of 12th Corporate non-governmental organization secondary and high schools in November and April. Governance Summit. The Society’s Vice Chairman category as part of the Individual meetings were also held throughout the Hakan Tahiroğlu received the award on behalf of Corporate Governance Awards year. Darüşşafaka Society. granted at the 12th Corporate Governance Summit organized The guardians, who continued to support the Internal Audit by the Corporate Governance campaign for Darüşşafaka Examination, organized The Society’s Internal Audit activities in 2019 were Association of Turkey (TKYD). the traditional “Home Cooking Festival” on April 30. conducted in the areas defined in the Darüşşafaka Society Risk-Based Internal Audit Plan for 2019, to CMB Corporate Governance Principles which the Board granted its consent, in accordance Compliance Rating: 9,54 with the Darüşşafaka Society Internal Audit In line with “transparency,” “accountability” and Regulation. The internal audit covered the Society’s “sustainability” principles, Darüşşafaka Society, the Center, Residences, Commercial Enterprises first non-governmental organization in Turkey in and Darüşşafaka Schools. The reports based the field of education which received independent on the internal audit activities’ results were then corporate rating services in 2013 and had an initial submitted to the Audit Commission and Board of rating of 8,4 improved its rating to 9,54 in 2019. Directors.

The rating study was conducted by Kobirate Corporate Visits and Relations International Credit Rating and Corporate • The prominent non-governmental organizations Governance Services Inc. based on Corporate of Turkey, including the Darüşşafaka Society, and Governance Compliance Rating Methodology. their distinguished teachers were presented at According to Kobirate’s methodology based on the the exhibition held in Brussels at the European categories of Shareholders, Public Disclosure and Parliament on January 8. Transparency, Stakeholders and Board of Directors • On February 28, the Society’s management determined for nongovernmental organizations, paid a visit to the Deputy Governor Mehmet Ali and following the evaluation of 302 criteria, Özyiğit, who is in charge of Associations. Darüşşafaka Society’s Corporate Governance • The Society’s management paid a visit to the Compliance Rating scored 9,54. Governor of Istanbul, Ali Yerlikaya on March 6. • On March 19, the Society’s management paid a In the same rating, Darüşşafaka Society received visit to the Deputy Governor, Ahmet Hamdi Usta, 8,4 out of 10 in 2013, 8,64 in 2014, 9,08 in 2015, who is in charge of Education. 9,29 in 2016, 9,43 in 2017 and 9,50 in 2018. • The Society’s management paid a visit to the District Governor of Sarıyer, Osman Bilgin on April 5. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 107

• The Society’s management paid a visit to the • Consul General of France in Istanbul Bertrand “DENMARK Mayor of Sarıyer, Şükrü Genç on April 11. Buchwalter and French Language Cooperation CHILDREN’S FESTIVAL” • The Governor of Istanbul, Ali Yerlikaya visited Attaché Virginie Villechange paid a visit to Darüşşafaka on April 25, met the new Board of Darüşşafaka on September 27. The Denmark Children’s Festival, Directors and shared his best wishes. • On October 12, Henkel Turkey hosted the organized by the Consulate • On June 26, Darüşşafaka Society Chairman press members and their children in the only General of Denmark in Istanbul M. Tayfun Öktem and High Advisory Board Researchers’ World lab of Turkey, which Henkel to highlight the “Sustainable Chairman Hüsamettin Kavi paid a visit to the Turkey opened at Darüşşafaka Schools. Development Goals of United President of Istanbul Chamber of Commerce, • On December 24, Mayor of Istanbul Metropolitan Nations,” took place for the third Şekib Avdagiç. Municipality Ekrem İmamoğlu visited time this year at Darüşşafaka • People’s Republic of China Consulate General in Darüşşafaka and had lunch with the students. Schools on September 21. Istanbul Mr. Cui Wei visited Darüşşafaka Society Mayor of Sarıyer Şükrü Genç also accompanied on August 5. Mr. İmamoğlu. • The Denmark Children’s Festival, organized by the Consulate General of Denmark in Istanbul to highlight the “Sustainable Development Goals of United Nations,” took place for the third time this year at Darüşşafaka Schools on September 21. District Director of National Education İbrahim Tahmaz, Mayor of Sarıyer Şükrü Genç, Danish Ambassador Svend Olling, Consul General of Denmark in Istanbul Anette Galskjot as well as Darüşşafaka Society Vice Chairman Hakan Tahiroğlu participated in the event. 108 Darüşşafaka Society Annual Report 2019

Corporate Governance

Corporate Principles

1) As per Article 27 of the Society’s Charter, personnel-compensation The remuneration Darüşşafaka employees pay attention to the Board of Directors consists of fifteen and other payments made to directors any potential or real conflict of interest; take permanent members and five substitute and other employees are included in the the necessary steps to avoid the conflicts of members, all of whom are selected by secret independent audit report. interest and refrain from any interests that voting at the General Assembly. Additionally, cause conflict as soon as they become aware as per Article 29 of the Society’s Charter, 4) The Corporate Governance Commission of the conflict of interest. In this regard, as one third of Board Members are re-elected has measured the corporate governance is the case with the Chairman and Members each year in accordance with Article 27. The performance of the Darüşşafaka’s Board of the Board and Audit Committee, it is Board Members’ services are on voluntary of Directors in 2019. The results of the forbidden to sell any property of the Society basis. The reimbursements made to Board measurements have been submitted to the to: Society employees, their spouses, their Members against the expenses incurred by Board of Directors and other relevant persons third degree relatives by blood and second them during the report year are required to in February 2020. The Corporate Governance degree kinship by marriage, their adopted be separately specified in the final account Commission has made some development children, or to any companies and institutions reports submitted to the General Assembly. evaluations based on risk factors that were in which these persons hold the majority defined in previous workshops. Further to of the capital and/or participate in the 2) Within the framework of the Society’s these evaluations, the Commission identified management or provide consultancy. Tender Charter, the internal legislation works were its priorities for the report year 2019. offers of these persons for any property of accelerated in 2012. In this regard, regulations These priorities are as follows: evaluating the Society will be invalid and these persons have been introduced in terms of the working the profile and structure of the new Board will not be accepted to any open bidding rules of the following commissions, whereas and comparing it with generally accepted of Society’s properties. Additionally, as is the current regulations have been updated. good practices; the risk analyses of the the case with the Chairman and Members institution and the risk analysis in regard to of the Board, it is forbidden to purchase • Corporate Governance Commission employees; defining the education needs; from the companies in which the Society • Audit Commission corporate fundraising as an essential activity employees and/or their first degree kinship • Donation, Communication and Fundraising of institutionalization; and monitoring the by blood or marriage control the capital or the Commission PDP and ISO 9001 projects in which the management. • Asset Management Commission commission has played a key role. • Student Selection, Registration and According to the Ethical Code of Conduct, any Acceptance Commission 5) There are no lawsuits filed against the member of Darüşşafaka shall refrain from • Education Commission Board of Directors and Directors of the any kind of practices that may damage the Society with regard to the activities of the confidence of the stakeholders, cause any As per the Board Decision No. 04.02.2020- NGO. suspicion and compromise the principle of 04, an “Early Detection of Risk Committee” justice. has been established under the Corporate 6) There are no penalties due to any practices Governance Commission in order to by the Society in breach of legal provisions. detect any real or potential risks against our Institution in time and conduct risk 7) The Board of Directors of Darüşşafaka management activities. has identified the Ethical Code of Conduct and informed all employees about it. The 3) Remuneration Policy has been developed Ethical Code of Conduct can be accessed to define the individual payments and at the link https://www.darussafaka.org/en/ benefits for directors and other employees about-us/corporate-governance/guidelines- of the Society and to determine the relevant policies/ethical-principles-and-rules. Some criteria. The Policy has been approved by headings of the Ethical Code of Conduct, the Board. The relevant policy can be found such as “Service Conscious Towards the at the link https://www.darussafaka.org/en/ Stakeholders” and “Avoiding Conflict of about-us/corporate-governance/guidelines- Interest” focus on preventing any conflicts of and-policies/policies-on-remuneration-and- interest and explain the details of it. Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 109

Risks and Opportunities High Advisory Board EFFICIENT RISK MANAGEMENT Darüşşafaka Society works on defining any High Advisory Board (YDK) convened under the SYSTEM potential risks that all beneficiaries in the Society’s chairmanship of Hüsamettin Kavi, former ICI affiliated institutions (students, student guardians, Chairman of Board and GTE Endüstri Sistemleri Opportunities must be followed donors, relatives of donors, customers of the A.Ş. Chairman of Board, three times in 2019, on closely while striving to commercial enterprises and guests) and all February 16, May 4 and October 19. have the most efficient risk employees may face due to any environmental management system in terms factors as well as operations. In addition, the In 2019, former Chairman of Board of Darüşşafaka of early detection of risks, Society strives to create ideal solutions for these Society M. Talha Çamaş, former Board Member and taking measures, taking the risks. advertiser İ. Hayri Cem, former Board Member Fırat appropriate actions for the Tekin and Chairwoman of Board of LİMAK Ebru targets, minimizing the surprises The top priority of Darüşşafaka Society is to Özdemir have joined the High Advisory Board as and being prepared. eliminate any risks concerning the lives and health new members. YDK has lost one of its members in of the students at Darüşşafaka Schools and donors 2019. Former Minister of State in charge of Women at the residences, all of whom are the reason for and Family Affairs Işılay Saygın passed away on the Society’s existence. July 27.

Few examples of potential risks concerning the The 29th High Advisory Board Meeting held at practices of identifying, evaluation, prioritizing, Darüşşafaka Society on February 18 provided measuring and updating the risks: the summary report of the Society’s activities in • Cyber risks and data security 2018, the Targets and Budget Offer for 2019, the • Decrease in the number of students eligible for summary report of first semester activities of taking the exam Darüşşafaka Schools and information about the • The cyclical risks caused by the fact that the High Advisory Board’s Working Group activities. income of the Society that has a constantly growing structure mainly relies on donations In the 30th High Advisory Board Meeting hosted • Reputation risks by İşbank at İş Towers on May 4, information and suggestions were provided with regard to the Few examples of the measures related to the action High Advisory Board’s Working Groups’ activities. planning for risks, actions taken and evaluation of Moreover, speeches were delivered about “Creative, their results: Innovative Ideas” towards the activities and targets HIGH ADVISORY • Disseminating the information about of the Darüşşafaka Society’s Board. BOARD Darüşşafaka and admission examination to all students eligible for studying at Darüşşafaka Darüşşafaka High School Robotics Club “Sultans of High Advisory Board and their guardians (delivering the information in Turkey,” which had won the “Engineering Inspiration (YDK) convened under the person or sending to principals and teachers in Award” and was presented with the Championship chairmanship of YDK Chairman other cases) Cup by the Minister of Youth and Sports Muharrem Hüsamettin Kavi three times in • Keeping the corporate approach as regards Kasapoglu during the Innovation Week of Turkey, 2019, on February 16, May 4 and Transparency and Governance Principles alive attended to the meeting as guest participants and October 19. • Increasing the productivity and stimulating the shared their experiences on the achievement. sustainability activities with new projects • Strengthening the digital security The 31st High Advisory Board Meeting was hosted by İşbank on October 19. The meeting contained Opportunities must be followed closely while information about the five-year strategic plan of striving to have the most efficient risk management the High Advisory Board, cooperation with Tekfen system. Examples of the opportunities: Foundation and Residences. At the meeting, • Tremendous support from the society and Darüşşafaka High School students Gizem Özelmacı companies and Birkan Ege Çorbacıoğlu as well as Darüşşafaka • Strong tradition of education Secondary School student Nehir Uluca informed • Diversity opportunities in communication the members about their lives at the campus and activities answered their questions. 110 Darüşşafaka Society Annual Report 2019

Corporate Governance

4 16 2 3 13 9 15 1 8 6 12 5 17 10

Darüşşafaka Society Mustafa U. Demirci (6) Oğuz Güleç (12) Board Members Permanent Member of the Board Permanent Member of the Board

M. Tayfun Öktem (1) Mehmet Erktin (7) Zeynep Necipoğlu (13) Chairman of the Board Permanent Member of the Board Permanent Member of the Board

M. Hakan Tahiroğlu (2) Prof. Dr. Esra Ekmekçi Çalıcıoğlu (8) Haldun Boz (14) Vice Chairman Permanent Member of the Board Permanent Member of the Board

Erman Süsler (3) Celalettin Çağlar (9) Z. Ceylan Kabadayıoğlu (15) Vice Chairman Permanent Member of the Board Permanent Member of the Board

Cem Şipal (4) Dr. Ahmet D. Erelçin (10) Dr. Serpil Durak Tunçer (16) Accountant Member of the Board Permanent Member of the Board Substitute Member of the Board

Prof. Dr. Lütfü Telci (5) A. Hakan Güldağ (11) F. Cemre Karaoğlan (17) Permanent Member of the Board Permanent Member of the Board Substitute Member of the Board Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 111

Members of Supervisory Board and Court of Honor

Members of Supervisory Board Tayfun Bayazıt Ertuğrul Kumcuoğlu A. Kamil Uzun (Chairman) Nejdet Baysan Şule Dilek Çelik Kurşuncu Zafer Boztuna (Permanent Member) Erol Bilecik Adnan Memiş Vedat Bayrak (Permanent Member) Şükrü Bozluolçay Vahap Munyar Süleyman Morbel (Substitute Member) Mehmet Buçukoğlu Mesut Naibi M. İsmail Özsürücü (Substitute Member) Y. Ahmet Buldam Mehmet Nane A. Engin Ergüden (Substitute Member) Kemal Canbaz Prof. Dr. Yılmaz Nişancı Yavuz Canevi Cemal Olgun Court of Honor Members İ. Hayri Cem Dr. Jale Onur Talip Duranyıldız (Chairman) Süreyya Ciliv Sümer Oral (Passed away on 15.10.2019) Mübeccel Çadırcıoğlu Dr. Nur Otaran Mithat G. Yazgıç Celal Çağlar Sertaç Ökten Halit Y. Tilki İzzet Çağlayan Davut Ökütçü Mehmet Buçukoğlu Prof. Dr. Nahit Çakar Berrin Önder Ergün Bankoğlu M. Talha Çamaş Vedat Özdan Y. Halit Çevik Ebru Özdemir Members of the High Advisory Board Bülent Çorapçı Ergun Özen Prof. Dr. Betül Çotuksöken H. Ersin Özince Name and Surname Dr. Murat Dayanıklı Beşir Özmen Hüsamettin Kavi (Chairman) Orhan Dıramca Şerif Pora Prof. Dr. A. Nilüfer Eğrican (Vice Chairperson) Adnan Dovan Tamer Saka Bülent Akarcalı Faruk Eczacıbaşı Ergin Saygun Necip Akbaş Tolga Egemen Prof. Dr. A. Sinan Sertöz M. Turgut Akben Oktay Ekşi Nazan Somer Özelgin Assoc. Dr. Göknur Akçadağ Tarhan Erdem Suat Sözen Bülent F. Akınsal Prof. Dr. Fatma Ergun Müjde Süme Senar Akkuş Prof. Dr. Üstün Ergüder Verda Sürek Kutlu Aktaş Prof. Dr. Ömer Selçukhan Ertur Dr. M. Sani Şener Prof. Dr. Ali Akyüz Prof. Dr. Figen Esen Tankut R. Şensürücü Leyla Alaton Hüseyin Gelis Bülent Tanla Jale Alpay Mehmet Alev Göçmez Günseli Tarhan Piraye Antika Sevhan Gök Kahya Aynur Tartan Reştan Aras Tunçer Gömeçli Engin Tayfun Ömer A. Aras Hakan Güldağ B. Fırat Tekin Erman Atasoy Atalay M. Gümrah M. Uğur Terzioğlu Prof. Dr. Sabahattin Aydın Hüsnü Güreli Behice Tezçakar Özdemir Yusuf Ziya Aydınalp Bülent Hiçsönmez Ali Tigrel Dr. İmren Aykut Prof. Dr. Mehmet Emin Karaaslan Assoc. Dr. Gülseren Topuz Arif Aymutlu Prof. Dr. Şahin Karasar Tankut Turnaoğlu Dr. Lale Aytaman İsmet Kasapoğlu Özcan Türkakın Assoc. Dr. Oğuz N. Babüroğlu Ömer Kaymakçalan Dr. Aydın Ulusan Haluk Bal Anthony Khoi Bülent Ünal Prof. Dr. Yusuf Balcı Damla Kiremitçi Zekeriya Yıldırım Adnan Bali Onur Koç Assoc. Dr. O. Reha Yolalan Ergün Bankoğlu Levend Kokuludağ Kenan Yüksel Ümit Başkırt Dr. Cem M. Kozlu Beyza Zapsu 112 Darüşşafaka Society Annual Report 2019

Corporate Governance Review of Operations in 2019 Darüşşafaka Society Annual Report 2019 113

Managers of Darüşşafaka Society Eda Zeynep Orhon Unit Managers and Affiliated Institutions High School Culture and Life Coordinator Burcu Emine Dönmez Managers of the Society Aslı Eder Internal Audit Manager Deputy Principal of Secondary School Senem Başyurt Erdem Kocaman Secretary General Ebru Aykutalp Center Technical Services Unit Manager Deputy Principal of Secondary School Lawyer Dr. İnci Ercan Ersin Tuban Chief Legal Officer Müge Tuvay Information Technologies and Projects Deputy Principal of Secondary School Department Manager Burçak Karakaya Assistant Secretary General for Fundraising Nesibe Gönül Evrim Erbilen and Donation Relations and Deputy Principal of Secondary School Fundraising Manager Communication Meltem Ceylan Alibeyoğlu Hilmi Boğaçhan Akyar Özlem Aslan Secondary School Academic Coordinator Human Resources and Internal Assistant Secretary General for Operation Communication Department Manager and Financial Affairs Seray Özdemir Secondary School Culture and Life Levent Üzümcüoğlu Levent Çolakoğlu Coordinator Real Estate Unit Manager Assistant Secretary General for Facility Services Belma Küçükköse Mehmet Eken Assistant Manager of Student House for Warehouse Inventory Management DS Manager and Assistant Managers Female Students Mehmet Obuz Ebru Arpacı Muhammet Erken Budget and Financial Reporting Manager General Manager of Darüşşafaka Schools Assistant Manager of Student House for Male Studentsı M. Kadir Düzkaya Nilüfer Günergin Urla Facility Services Manager High School Principal Residence Managers Nilgün Eken Şule Uyar Can Bostancı Donation and Donor Relations Manager Secondary School Principal Chief Physician and Maltepe Special Care Unit Manager Ömer Sıddık Şahin Erkan Güçtekin Security and Civil Defense Manager Life Manager Burak Uluaydın General Manager of Commercial Enterprises Öznur Tekebaş İbrahim Deniz and Institution Manager of Maltepe Service Procurement and Monitoring Deputy Principal of High School Residence Manager

Azize Şen Tosun Serap Kırcı Selim Bayram Deputy Principal of High School Institution Manager of Yakacık Residence Maltepe Facility Services Manager

Yasemin Yeşilyurt Kalaycı Zeynep Ellidokuz Yasin Kaya Deputy Principal of High School Institution Manager of Şenesenevler Financial Affairs Unit Manager Residence Ümmü Topkara Güvenç Yasemin Daşar Deputy Principal of High School Neval Erkmen Corporate Communications Manager Institution Manager of Urla Residence Mehtap Budak Yüksel Cenk Erdem High School Academic Coordinator Dr. Hakkı Kan Procurement and Warehouse Inventory Urla Yaşam Special Nursing Home and Care Management Unit Manager Center (Acting) 114 Darüşşafaka Society Annual Report 2019

Our Griefs in 2019

Our Griefs for Donors and Members

OUR GRIEFS IN 2019 Nebahat Pakize Alanyalı Birsen Aldemir Faika Reyhan Alp Ali Talip Arban İ. Çağlan Arel Nesime Atay Nezihe Atay A. Nezihe Aytuğ F. Sebahat Aytuğ Mürvet Belit M. Metin Bulak M. Agâh Bursalı Nevhis Çakır Emine Beyhan Çetiner Behiç Çongar (DŞ’56) Ayşe Dağdeviren Halil Değer Talip Duranyıldız (DŞ’45) Zehra Erdem Aysel Erinç Mukadder Eruysal Muazzez Eryazar Fethiye Güner Fethi Gürsoylu Mustafa İbrahim M. Tevfik İnan Keriman Kadıoğlu Melahat Kantoğlu Candaş Keresteci (DŞ ’57) Azra Kırman A. Cenap Korkmazoğlu Mübeccel Menteş Namık Kemal Meriç (DŞ’55) Fatma Tulga Ocak S. Günay Özgökçen Şadiye Öztürk Işılay Saygın Muzaffer Şengel Abdullah Elhan Üsman İsmail Hakkı Yanardağ A. Nuran Yarkın Z. Hümeyra Yergöç Esin Yeşilyurt Nafiz Yıldıran Aynur Yılmaz Nazan Yılmaz İsmet Yorgancılar

They have passed away. We remember them with respect and gratitude. 116 Report of the Supervisory Board 121 Independent Auditor’s Report 156 Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal 116 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY 2019 REPORT OF THE SUPERVISORY BOARD

1. The Supervisory Board has inspected the activities, transactions on accounts, book records and documents of Darüşşafaka Society, its commercial enterprise and the affiliated companies for the period of 01.01.2019-31.12.2019, according to the Society's Charter and other related regulations. The inspection activity took place on 2 July 2019, 18 July 2019, 22 October 2019, 30 January 2020 and 27 February 2020.

2. The reports which have documented the results of the 2019 activities of the Supervisory Board have been shared with the Office of the Chairman of the Board of Directors, for necessary actions to be taken.

3. It has been observed that the internal audit report was prepared as of the dates of 31 May 2019, 26 September 2019, 26 November 2019 and 10 February 2020, in line with the format suggested by the Associations Department of the Ministry of the Interior (the new name being the Civil Society Relations Department).

4. It has been observed that; corporate governance rating activities which had previously been initiated by the Society as of the accounting period of 2012 have been updated year by year, and the update for the 2019 accounting period was still in progress with the related rating agency.

5. Within the scope of the Society's corporate risk management activities, an inventory of risks had been created in the workshops held in the year 2016. These risks were prioritized, a number of them were selected by the Corporate Governance Commission and presented to the Board of Directors in 2017. The Board was informed about the precautions taken against these risks in 2018. It was understood that the risk surveys and updates for the year 2019 have been completed as of the beginning of 2020, the assessment process was still continuing, and that the "Early Detection of Risk Committee" was established at the start of the year 2020. Darüşşafaka Society Annual Report 2019 117

6. It was observed that internal audits were carried out according to the risk-based internal audit plan which had been approved by the Society's Board of Directors, the Audit Commission has evaluated these audits and their results, and then these were presented to the Board of Directors for assessment.

7. The Society's Board of Directors has selected KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. as the independent auditor of the Society's financial statements. As the result of the inspection held by the Supervisory Board, it was seen that the Society's balance sheet as of 31.12.2019 which is included in the said independent external audit report is a fair representation of the Society's financial position as of this date, and the income statement for the period of 01.01.2019-31.12.2019 is a fair representation of the operating results for this period, excluding the issue stated in the qualified opinion of the independent auditor.

8. Further to the above-mentioned matters, the Board of Directors unanimously decided that for the operations of the Board of Directors for the accounting period of 01.01.2019-31.12.2019 are approved by the General Assembly, and to ensure that the Board is discharged for this period, this report is submitted at the General Assembly to the Society members for their opinions and evaluations.

We hereby present this Report of the Supervisory Board for your information and consideration. Respectfully, 27.02.2020 Ali Kamil UZUN Darüşşafaka Society Zafer BOZTUNA Chairman Supervisory Board Board Member Vedat BAYRAK Board Member

Darüşşafaka Society

and its Subsidiaries

Convenience Translation of Consolidated Financial Statements As at and for the Year Ended 31 December 2019 With Independent Auditor’s Report

(Originally Issued in Turkish)

2 March 2020

This report includes 3 pages of independent auditor’s reports and 31 pages of consolidated financial statements and explanatory footnotes of consolidated financial statements.

Darüşşafaka Society

and its Subsidiaries

Convenience Translation of Consolidated Financial Statements As at and for the Year Ended 31 December 2019 With Independent Auditor’s Report

(Originally Issued in Turkish)

2 March 2020

This report includes 3 pages of independent auditor’s reports and 31 pages of consolidated financial statements and explanatory footnotes of consolidated financial statements.

120 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society and its Subsidiaries

Contents

Independent Auditor Report Consolidated Statement of Financial Position Consolidated Statement of Activities Consolidated Statement of Changes in Net Assets Consolidated Cash Flow Statement Notes to the Consolidated Financial Statements Darüşşafaka Society Annual Report 2019 121 122 Darüşşafaka Society Annual Report 2019 Darüşşafaka Society Annual Report 2019 123 124 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

CONTENTS PAGE

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ...... 125 1

CONSOLIDATED STATEMENTS OF ACTIVITIES ...... 126 2

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS ...... 127 3

CONSOLIDATED STATEMENTS OF CASH FLOWS ...... 128 4

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...... 129-15 5-315

NOTE 1 ORGANISATION AND NATURE OF OPERATIONS ...... 1295 NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS ...... 130-133 6-9 NOTE 3 SUMMARY OF SIGNIFACT ACCOUNTING POLICIES ...... 134-142 10-18 NOTE 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS ...... 142-143 18-19 NOTE 5 CASH AND CASH EQUIVALENTS ...... 143-144 19-20 NOTE 6 RECEIVABLES ...... 144-145 20-21 NOTE 7 RELATED PARTY BALANCES AND TRANSACTIONS ...... 145 21 NOTE 8 PROPERTY AND EQUIPMENT ...... 146-148 22-24 NOTE 9 INVESTMENT PROPERTY AND ASSETS HELD FOR SALE ...... 148-149 24-25 NOTE 10 PAYABLES ...... 149 25 NOTE 11 BORROWINGS ...... 150 26 NOTE 12 OTHER LIABILITES ...... 151 27 NOTE 13 PROVISION FOR EMPLOYMENT TERMINATION BENEFITS ...... 151-152 27-28 NOTE 14 DONATIONS AND INCOME FROM OPERATIONS ...... 152 28 NOTE 15 OPERATING EXPENSES ...... 152 28 NOTE 16 OTHER INCOME AND EXPENSES ...... 153 29 NOTE 17 FİNANCIAL INCOME AND EXPENSES ...... 153 29 NOTE 18 FOREIGN CURRENCY POSITION ...... 154 30 NOTE 19 COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES ...... 154-155 30-31 NOTE 20 EVENTS AFTER THE BALANCE SHEET DATE ...... 155 31

Darüşşafaka Society Annual Report 2019 125

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

Notes 2019 2018

ASSETS Current Assets: Cash and cash equivalents 5 106.708.931 86.072.186 Receivables 6 5.607.678 4.345.952 Due from related parties 7 3.728.554 2.662.371 Other current assets 2.447.156 3.076.904 118.492.319 96.157.413 Non-current assets held for sale 9 46.620.626 7.788.000

Total current assets 165.112.945 103.945.413

Non-current assets: Financial assets 3 97.429.617 30.521.982 Property and equipment 8 698.407.917 685.233.569 Investment property 9 368.199.632 359.728.530 Intangible assets 810.945 870.804 Other non-current assets 718.728 442.633

Total non-current assets 1.165.566.839 1.076.797.518

Total assets 1.330.679.784 1.180.742.931

LIABILITIES Short-term liabilities: Bank borrowings 11 8.811.580 10.284.196 Payables 10 12.064.241 10.559.713 Other current liabilities 12 17.489.158 11.656.353

Total short-term liabilities 38.364.979 32.500.262

Long-term liabilities: Bank borrowings 11 47.387.304 46.500.588 Provision for employment termination benefits 13 8.137.466 7.591.463 Other long-term liabilities 12 17.568.243 -

Total long-term liabilities 73.093.013 54.092.051

Total liabilities 111.457.992 86.592.313

Net Assets: Revaluation fund 8 485.640.486 466.531.611 Actuarial losses (-) (4.623.619) (3.018.938) Operating results of previous years 738.204.925 630.637.945

Total net assets 1.219.221.792 1.094.150.618

Total liabilities and net assets 1.330.679.784 1.180.742.931

The accompanying notes form an integral part of these consolidated financial statements. 1 126 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED ON 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

Notes 2019 2018

Donations and operating income 14 244.169.202 200.639.817 Operating expense (-) 15 (152.039.449) (125.148.027)

Net operating income 92.129.753 75.491.790

Other income 16 4.640.046 5.728.276 Other expenses (-) 16 (3.153.676) (2.961.630)

Net income before financial income and expense 93.616.123 78.258.436

Financial income 17 19.022.600 11.913.767 Financial expense (-) 17 (5.406.688) (9.825.502)

Operating results before tax 107.232.035 80.346.701

Current tax expense (-) (260.989) (167.714) Deferred tax (expense)/income (241.232) 33.982

Net operating result 106.729.814 80.212.969

Other comprehensive income/expense

Other comprehensive income/expense 8 19.946.041 38.538.046 Actuarial losses 13 (1.604.681) (717.650)

Net comprehensive operating result 125.071.174 118.033.365

The accompanying notes form an integral part of these consolidated financial statements. 2 Darüşşafaka Society Annual Report 2019 127

- - Total net assets net assets 19.946.041 80.212.969 80.212.969 38.538.046 106.729.814 976.117.253 976.117.253 1.219.221.792 1.094.150.618 1.094.150.618 1.094.150.618 (1.604.681) (1.604.681)

- - - (717.650) - - 971.453 971.453 837.166 837.166 80.212.969 80.212.969 549.453.523 549.453.523 630.637.945 630.637.945 630.637.945 630.637.945 106.729.814 106.729.814 previousyears Operating results of results Operating

------ted financial statements.ted financial (717.650) (717.650) Actuarial (1.604.681) (1.604.681) (3.018.938) (3.018.938) (2.301.288) (2.301.288) losses (-) (3.018.938) (3.018.938)

6 - - - - - fund (971.453) (971.453) (837.166) (837.166) 485.640.486 485.640.486 (4.623.619) 738.204.925 19.946.041 19.946.041 38.538.04 428.965.018 466.531.611 466.531.611 Revaluation Revaluation

cated.) F CHANGES IN NET ASSET The accompanying notes form an integral part of these consolida these of part an integral form notes The accompanying 3 a (“TL”) unless otherwise indi

t t Fair value increase of properties for use (Note 8) Balances as of 31 December 2019 Balances as of 31 December Fair value increase of properties for use (Note 8) Balances as of 1 January 2019 (NoteTransfer 8) Net operating resul (-) losses Actuarial Balances as of 1 January 2018 (NoteTransfer 8) Net operatingresul Actuarial losses(-) Balances as of 31 December2018 Balances as of 31 December2018

DARÜŞŞAFAKA SOCIETY ITS SUBSIDIARIESAND CONSOLIDATED STATEMENTS O ENDED 31 FOR THE YEARS DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lir

128 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED ON 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

Notes 2019 2018

Operating activities

Operating result before tax 107.232.035 80.346.701 Adjustments: Amortisation and depreciation 15 10.985.781 8.621.877 17 Interest and commission expenses 2.035.700 1.330.165 17 Interest income (19.022.600) (8.710.981) 14 Gain on sale of properties (3.630.833) (2.970.137)

Unrealized foreign exchange losses 4.901.348 21.030.227 14 Gain on valuation of investment and sales properties (13.367.281) (16.791.257) Borrowing discount and provision related (income)/expenses,net 4.768.856 3.040.874 9 Non-cash donations (55.576.556) (39.439.106)

Cash flows from operating activities

before changes in assets and liabilities 38.326.450 46.458.363

Changes in working capital 17.098.515 (137.173)

Proceeds from sale of investment properties 25.270.942 19.474.994 13 Employee termination benefits paid (2.662.717) (2.030.148)

Net cash generated from operating activities 78.033.191 63.766.036

Investing activities:

Acquisition of marketable securities (66.907.635) (18.200.364)

Acquisition of tangible and intangible assets (5.051.254) (5.602.833)

Interest received 17.836.977 8.557.732

Net cash used in investing activities (-) (54.121.912) (15.245.465)

Financing activities:

Change in bank borrowings (585.900) (10.508.424) 17 Interest payments (3.874.258) (1.330.165)

Net cash used in financing activities (-) (4.460.158) (11.838.589)

Net increase in cash and cash equivalents 19.451.121 36.681.982

Cash and cash equivalents at the beginning of the year 85.588.488 48.906.506 5 Cash and cash equivalents at the end of the year 105.039.609 85.588.488

The accompanying notes form an integral part of these consolidated financial statements.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 1 - ORGANISATION AND NATURE OF OPERATIONS

Darüşşafaka Association (the “Association”) was founded in 1863 in order to operate as an education center. The main goal of the Association is to educate, financially inadequate and talented Turkish Republic citizen kids, lost either one or both of their parents, by creating equality in education within the country and abroad and also raise them as leader individuals who learn through the whole life pane, embrace the global values, self-confident and aware of their responsibility towards their country and society.

Association is a nonprofit institution and carries out Darüşşafaka Educational Institutions, Darüşşafaka Maltepe Donator Residence, Darüşşafaka Yakacık Donator Residence, Darüşşafaka Şenesevler Donator Residence, Maltepe Welfare Home, Maltepe Physiotherapy and Rehabilitation Center and Urla Donator Residence operations.

Association accepts monetary and generally nonmonetary real estate donations from real and legal entities. The generated donations are used in the financing of Darüşşafaka Educational Institutions, Association Center and the donator residences.

In accordance with the protocols signed with some donators, the Association grants individual units for accommodation in “donator residences” at Maltepe, Yakacık, Şenesenevler and Urla to such donators and commits them to provide food, rest, health and medical care services in these residences for a lifetime without any charge.

The headquarter of the Association is in Istanbul, at Darüşşafaka Cad. No:14 34457 Maslak/İstanbul.

Subsidiaries and Commercial Enterprise

The Association’s subsidiaries and commercial enterprise with their nature of operations and operational status are stated below:

Nature of operations/

Subsidiaries Operational status

Daçka Sigorta Aracılık Hizmetleri A.Ş. (*) Insurance brokerage Daçka Eğitim Araştırma Tanıtım Organizasyon Hizmetleri A.Ş. Event management

Nature of operations/ Commercial Enterprise Operational status

Darüşşafaka Cemiyeti İktisadi İşletmesi (“İktisadi İşletme”) Physical therapy and rehabilitation Welfare home and nursery (*)General Assembly Decision dated 27 December 2019, the Company have been liquidated. Consolidated financial statements include the Association, its subsidiaries and the Commercial Enterprise (hereinafter referred to as the "Group").

Foundations whose management is left to the Board of Directors of Association

There are certain foundations whose management and administration of revenues are totally or partially left to the Board of Directors of the Association based on the settlement deed designated for their establishment. Such foundations are Tiryakioğlu Vakfı, Süreyyapaşa Vakfı, İmamverdi Vakfı, Nuriye ve İdris Murgüz Vakfı, Erer Vakfı, Çakıroğlu Vakfı, Asım Paşa Vakfı, Aliye Arslan Vakfı, Denizsever Vakfı, Murad Günel Vakfı, Mükerrem Karaağaç Vakfı, Nevzuh Tevgil, Dr. Uluğ Vakfı and Halil Hasan Uysal Vakfı.

Foundations whose revenues are transferred to the Association

Besides, there are certain foundations whose revenues are partially transferred to the Association based on the settlement deed designated for their establishment. The mentioned foundations are Misbah Muhayyeş Vakfı and Ferudun Öz Vakfı.

5 130 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

Principal accounting policies, applied during the preparation of consolidated financial statements, are stated below. The policies are applied consistently within the presented years unless otherwise is indicated.

2.1 Basis of preparation of financial statements

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). The Association maintains its books of account and prepares its statutory financial statements in Turkish Lira based on the Uniform Chart of Accounts issued by the Ministry of Finance. The financial statements are based on the statutory records, which are maintained under the historical cost convention with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS, issued by the International Accounting Standards Board (“IASB”).

Consolidated financial statements are prepared on the basis of historical cost. Service buildings (including the lands), classified as usage purpose, are transferred with their recalculated values and the valuation differences are directly followed under revaluation fund in net assets. Real estate with income, classified under investment properties, is measured at their fair values and fair value changes are associated with the related period’s statement of activities.

The preparation of consolidated financial statements necessitates the use of estimates and assumptions that affect asset and liability amounts reported as of the statement of financial position date, explanations of contingent liabilities and assets; and income and expense amounts reported for the accounting period. It also requires management to exercise its judgement in the process of applying the accounting policies. Although these estimates, assumptions and judgments are based on all management information related to the events and transactions, actual results may differ from them. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

The consolidated financial statements are approved at 2 March 2020 by the Board of Directors of the Association. The Association has right to change the consolidated financial statements and the related regulatory institutions to be changed.

2.2 Basis of consolidation

a) The consolidated financial statements include the accounts of the Association, its subsidiaries and İktisadi İşletme (collectively referred as the “Group”) on the basis set out in paragraphs (b). The financial statements of the companies included in the scope of consolidation have been prepared as of the date of the consolidated financial statements with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with basis of preparation as described in Note 2.1. The results of operations of subsidiaries and İktisadi İşletme are included or excluded from their effective dates of acquisition or disposal respectively.

b) Subsidiaries and İktisadi İşletme are companies in which the Association has controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

6 Darüşşafaka Society Annual Report 2019 131

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2.2 Basis of consolidation (Continued) Subsidiaries and the Commercial Enterprise are stated with their effective shareholding rate as of 31 December 2019 and 2018 in the table below: Effective Rate 31 December 31 December Subsidiary 2019 2018

Daçka Sigorta Aracılık Hizmetleri A.Ş. -- %100 Daçka Eğitim Araştırma Tanıtım Organizasyon Hizmetleri A.Ş. %100 %100

Commercial enterprise Darüşşafaka Cemiyeti İktisadi İşletmesi %100 %100 Subsidiaries are included in the scope of consolidation beginning from the date, the control over the operations are transferred to the Group and excluded when the mentioned control is terminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The cost of the investment for the Association with respect to the shares held in the subsidiaries is eliminated against the corresponding equity items of the subsidiaries. Inter-company transactions and balances between the Association and its subsidiaries and the Commercial Enterprise are eliminated. Dividends from the subsidiaries and the Commercial Enterprise are eliminated from current period result.

2.2 Changes in International Financial Reporting Standards a) Standards and interpretations issued but not yet effective: A number of new standards and amendments to existing standards are not effective at reporting date and earlier application is permitted; however the Group has not early adopted are as follows: The revised Conceptual Framework (Version 2018) The revised Conceptual Framework issued on 28 March 2018 by the IASB. The Conceptual Framework sets out the fundamental concepts for financial reporting that guide the Board in developing IFRS Standards. It helps to ensure that the Standards are conceptually consistent and that similar transactions are treated the same way, so as to provide useful information for investors, lenders and other creditors. The Conceptual Framework also assists companies in developing accounting policies when no IFRS Standard applies to a particular transaction, and more broadly, helps stakeholders to understand and interpret the Standards. The revised Framework is more comprehensive than the old one its aim is to provide the Board with the full set of tools for standard setting. It covers all aspects of standard setting from the objective of financial reporting, to presentation and disclosures. For companies that use the Conceptual Framework to develop accounting policies when no IFRS Standard applies to a particular transaction, the revised Conceptual Framework is effective for annual reporting periods beginning on or after 1 January 2020, with earlier application permitted.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2.3 Changes in International Financial Reporting Standards (Continued) a) Standards and interpretations issued but not yet effective (Continued) Amendments to IAS 1 and IAS 8 - Definition of Material In October 2018, IASB issued Definition of Material (Amendments to IAS 1 and IAS 8). The amendments clarify and align the definition of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS Standards. The amended “definition of material “was added to the important definition and it was stated that this expression could lead to similar results by not giving and giving misstating information. In addition, with this amendment, the terminology used in its definition of material has been aligned with the terminology used in the Conceptual Framework for Financial Reporting (Version 2018). Those amendments are prospectively effective for annual periods beginning on or after 1 January 2020 with earlier application permitted. The Group does not expect that application of these amendments to IAS 1 and IAS 8 will have significant impact on its consolidated financial statements. Amendments to IFRS 3 - Definition of a Business Determining whether a transaction results in an asset or a business acquisition has long been a challenging but important area of judgement. IASB has issued amendments to IFRS 3 Business Combinations to make it easier for companies to decide whether activities and assets they acquire are a business or merely a group of assets. With this amendments confirmed that a business must include inputs and a process, and clarified that the process shall be substantive and the inputs and process must together significantly contribute to creating outputs. It narrowed the definitions of a business by focusing the definition of outputs on goods and services provided to customers and other income from ordinary activities, rather than on providing dividends or other economic benefits directly to investors or lowering costs and added a concentration test that makes it easier to conclude that a company has acquired a group of assets, rather than a business, if the value of the assets acquired is substantially all concentrated in a single asset or group of similar assets. This is a simplified assessment that results in an asset acquisition of substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets. If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendment applies to businesses acquired in annual reporting periods beginning on or after 1 January 2020; with earlier application permitted.

The Group is assessing the potential impact on its consolidated financial statements resulting from the application of the amendments to IFRS 3.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2.3 Changes in International Financial Reporting Standards (Continued) a) Standards and interpretations issued but not yet effective (Continued) Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)

Interest Rate Benchmark Reform, which amended IFRS 9, IAS 39 and IFRS 7 issued in September 2019, added Section 6.8 and amended paragraph 7.2.26. About this issue, IASB identified two groups of accounting issues that could affect financial reporting. These are:

• pre-replacement issues—issues affecting financial reporting in the period before the reform; and • replacement issues—issues that might affect financial reporting when an existing interest rate benchmark is either reformed or replaced. IASB considered the pre-replacement issues to be more urgent and decided to address the following hedge accounting requirements as a priority in the first phase of the project: (a) The highly probable requirement; (b) Prospective assessments; (c) IAS 39 retrospective assessment; and (d) Separately identifiable risk components. All other hedge accounting requirements remain unchanged. A company shall apply the exceptions to all hedging relationships directly affected by interest rate benchmark reform. The Group shall apply these amendments for annual periods beginning on or after 1 January 2020 with earlier application permitted.

2.4 Changes and errors in accounting policies and estimates Accounting policies have been applied consistently by the Group in all periods presented in the consolidated financial statements. Significant changes in accounting policies are applied retrospectively and prior period financial statements are restated. Except for the changes of first application of IFRS 16, the accounting policies applied in these consolidated financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended 31 December 2018. The Group has adopted IFRS 16 “Leases” as at 1 January 2019 for the first time, in line with the transition provisions of the standard. The first time adoption of IFRS 16 do not have an impact on the consolidated financial statements. Significant changes in accounting policies or significant errors are corrected, retrospectively; by restating the prior period financial statements. The effect of changes in accounting estimates affecting the current period is recognised in the current period; the effect of changes in accounting estimates affecting current and future periods is recognised in the current and future periods.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.5 Comparative information In order to allow for the determination of the financial position and activities, the Association’s consolidated financial statements have been presented comparatively with the preceding financial period. The Association presented the consolidated statement of financial position as of 31 December 2019 comparatively with the consolidated statement of financial position prepared as of 31 December 2018 and presented the consolidated statement of activities, cash flows and changes in net assets for the year ended 31 December 2018 comparatively with corresponding consolidated financial statements for the year ended 31 December 2018. If needed, comparative information can be modified so that the consistency is set with the financial statements

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed in the preparation of the financial statements are summarized below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Related Parties Related parties are stated as; foundations, management of which is transferred to Association Board of Directors (Note1), key management and Board of Directors members, their families and companies, subsidiaries or partnerships either under their control or related to them in the financial statements (Note7).

Financial assets measured at amortized cost

“Financial assets measured at amortized cost” are non-derivative financial assets, which are held within the scope of a business model aiming to collect cash flows that are contractual, and which include cash payments that include interest payments only on principal and principal balance at certain dates on contract terms. The Group's financial assets accounted for at amortized cost include "cash and cash equivalents", "trade receivables" and "financial assets". The related assets are measured at their fair values in the first bookings in the financial statements and at their discounted values using the effective interest rate method in the subsequent bookkeeping. A financial asset is measured at its amortized cost if both of the following conditions are met and are not classified as measured at fair value by reflecting the difference in profit or loss: - Keeping the financial asset under a business model that aims to collect contractual cash flows; and - Contractual conditions related to financial assets cause cash flows that only include interest payments arising from principal and principal balance on certain dates. Financial assets are not reclassified after the initial recognition unless the Group changes the business model to manage financial assets. In this case, all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. Financial assets measured at amortized cost are measured at their amortized cost using the effective interest method in their subsequent measurements. If there are amortized costs, impairment losses are reduced by the amount. Interest income, foreign currency gains and losses and impairment are accounted in the comprehensive consolidated statement of activity. Gains or losses arising from the exclusion of these financial statements are accounted in the comprehensive consolidated statement of activity.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As at 31 December 2019, the Group has classified as financial asset measured at amortized cost according to the above definitions, and there are Eurobond and other investment instrument consisting mainly of financing bond amounting to TL 48.711.203 and TL 48.718.414 respectively (31 December 2018: 30.038.377 and 483.605 TL). Book value Interest rate 31 December 2019 Nominal value Currency Maturity Date (TL) (%) Eurobond 8.025.000 USD 16 January 2020-5 February 2025 48.711.203 4,75-8,25 Financial bond 47.585.500 TL 6 January 2020-6 June 2020 46.845.031 10,30-20,50 Other 1.858.031 TL 1.873.383 Total 97.429.617

Book value Interest rate 31 December 2018 Nominal value Currency Maturity Date (TL) (%) Eurobond 5.575.000 USD 18 May 2021-5 February 2025 30.038.377 4,88 - 7,38 Financial bond 500.000 TL 5 February2019 483.605 - Total 30.521.982

Cash and cash equivalents

Cash and cash equivalents are reflected in the financial position statement with their cost value. Cash and cash equivalents comprise cash on hand and at banks and short-term highly liquid investments whose risk of value change is not material including time deposits generally having original maturities of three months or less (Note 5). The Association calculates impairment by using the expected credit loss model for the times that cash and cash equivalents are not impaired due to certain reasons. In the expected credit loss calculation, past credit loss experiences are taken into account together with future estimates of the Association.

Receivables

“Expected credit loss model” defined in IFRS 9 “Financial Instruments” superseded the “incurred credit loss model ”in IAS 39“ Financial Instruments: Recognition and Measurement ”which was effective prior to 1 January 2018. Expected credit losses are a probability weighted estimate of credit losses over the expected life of the financial instrument. The calculation of expected credit loss is performed based on the past experiences and future expectations of the Group.

The Group uses a provision matrix to measure expected credit losses for trade receivables. Certain reserve ratios are calculated in the relevant matrix based on the number of days when trade receivables are exceeded, and these ratios are revised in each reporting period and revised where necessary. Changes in expected loan loss provisions are accounted under “other income / expenses from main operations” in the consolidated comprehensive statement of activities.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Receivables (Continued) Association The cash, real estate and other type of donations are stated in the receivables and incomes with their fair values in the period the protocol is signed with the donator Commercial Enterprise and Subsidiaries Trade receivables that are created by way of providing goods directly to a customer are carried at amortized cost. Short duration receivables with no stated interest rate are measured at original invoice amount unless the effect of imputing interest is significant A credit risk provision for trade receivables is established if there is objective evidence that the Association will not be able to collect all amounts due. The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of all cash flows, including amounts recoverable from guarantees and collateral, discounted based on the original effective interest rate of the originated receivables at inception. If the amount of the impairment subsequently decreases due to an event occurring after the write-down, the release of the provision is credited to other income (Note 6). Property and equipment Property and equipment other than operational properties are reflected in consolidated financial statements by deducting accumulated depreciation from costs. The Group has reflected its real estate for own use in the consolidated financial statements with the values found by deducting the subsequent accumulated depreciation of the buildings from the reasonable values stated in the valuations made by the independent valuation experts. Accumulated depreciation at the revaluation date was netted off with the gross carrying amount of the asset and the net amount was brought to the value after revaluation. The Group evaluates its intended real estate every 5 years. Increases in the carrying amounts arising on revaluation of land and buildings, net of tax effects, are credited to “Revaluation Fund” under shareholders' equity. Any subsequent decrease in value offsetting previous increases in the carrying value of the same asset is charged against the funds in the equity; and all other decreases are charged to the income statement. At each accounting period, the difference between depreciation based on the revalued carrying amount of the asset (charged to the income statement) and the depreciation based on the asset's original cost is transferred from “Revaluation Fund” to retained earnings. Depreciation on tangible assets is calculated using straight-line method to allocate their cost or revalued amounts over their estimated useful lives. The depreciation periods estimated considering useful lives of tangible assets are as follows: Buildings 15 - 50 years Motor vehicles 5 years Furniture and fixtures 5 - 20 years If there are indicators of impairment on tangible assets, a review is made in order to determine possible impairment and as a result of the review, if an asset's carrying amount is greater than its estimated recoverable amount, the asset's carrying amount is written down immediately to its recoverable amount by accounting for a provision for impairment. Gains and losses on disposals of property and equipment are included in the other investment expenses account. When revalued assets are sold, the amounts included in “Revaluation Fund” are transferred to the retained earnings (Note 8)

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investment properties

The Group's land and buildings hold not for operational use but for rent income and / or investment are classified as investment properties. The Group has changed its accounting policies related with investment properties as accounted the mentioned properties with their fair values. Within this framework, the investment properties are reflected in the financial statements with the values stated by independent experts or their sales price. If there are any limitations of the Group on the investment properties or the related income due to the donators estate right on the land title or a right given by the Association Board of Directors, during revaluation of the investment properties, the values stated by the experts are restated in accordance with the actuarial calculations upon these limitations. CSO 2001 tables are used in the mentioned actuarial calculations. These restatements upon the calculations are accounted under “incomes related with donations and operations ". Association get valuation service every two years from experts if it has full ownership of an investment property. If donators have usufruct right on the land title or donators have right of use given by the Association Board of Directors, Association get valuation service every three years (Note 9).

Intangible asset

Intangible assets comprise of the acquired rights. They are recorded at acquisition cost and acquired software certificates are amortized on a straight-line basis over their estimated useful lives of 5 year.

Asset held for sale

Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. (Note 9).

Borrowings

Borrowings are recognised initially at the proceeds received, net of transaction costs incurred. In subsequent periods, borrowings are stated at amortized cost using the effective yield method; any difference between proceeds (net of transaction costs) and the redemption value is recognised in the statement of income over the term of the borrowings. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset in the period in which the asset is prepared for its intended use or sale. All other borrowing costs are charged to the income statement when they are incurred (Note 11).

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Payables are recognised initially at fair value. Payables are recognised initially at fair value. Short duration payables with no stated interest rate are measured at original invoice amount unless the effect of imputing interest is significant (Note 10).

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Provision for employment termination benefits

Under the Turkish Labour Law, the Association is required to pay termination benefits to each employee who has completed one year of service and whose employment is terminated except a cause stated in the Labour Law, or who is called up for military service, dies or retires after completing 25 years of service (20 years for women) and achieves the retirement age (58 for women and 60 for men). As of 23 May 2002 since the related legislation was changed, some transition pre-retirement articles has been removed.

Under the Turkish Labour Law, the provision has been calculated by estimating the present value of the future probable obligation of the Association arising from the retirement of the employees (Note 13).

All actuarial gains and losses are recognized in other comprehensive income.

Foreign currency transactions and translation

Transactions in foreign currencies during the period have been translated at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies have been translated at the exchange rates prevailing at the balance sheet date. Exchange gains or losses arising on the settlement and translation of foreign currency items have been included in the statement of income.

Revenue Recognition

In accordance with IFRS 15, a five-step model is followed in recognizing revenue for all contacts with customers.

 Identification of customer contracts  Identification of performance obligations  Determination of the transaction price in the contracts  Allocation of transaction price to performance obligations  Recognition of revenue when the performance obligations are satisfied

The Group evaluates each contracted obligation separately and related obligations, committed to deliver the goods or perform services, are determined as separate performance obligations

The Group determines at contract inception whether the performance obligation is satisfied over time or at point in time. When the Group transfers control of a good or service over time, and therefore satisfies a performance obligation over time, the revenue is recognised over time by measuring the progress towards complete satisfaction of that performance obligation.

When a performance obligation is satisfied by transferring promised goods or services to a customer, the Group recognises the revenue as the amount of the transaction price that is allocated to that performance obligation. The goods or services are transferred when the control of the goods or services is delivered to the customers.

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue recognition (Continued)

Following indicators are considered while evaluating the transfer of control of the goods and services: a) Presence of Group’s collection right of the consideration for the goods and services, b) Customer’s ownership of the legal title on goods and services. c) physical transfer of the goods or services, d) customer's ownership of significant risks and rewards related to the goods or services e) customer's acceptance of goods or services.

If the Group expects, at contract inception, that the period between when the Group transfers a promised good or services to a customer and when the customer pays for that good or service will be one year or less, the promised amount of consideration for the effects of a significant financing component, the fair value of the consideration is determined by discounting all future receipts using an imputed rate of interest. The difference between the fair value and the nominal amount of the consideration is recognised on an accrual basis as other operating income.

Rent and interest income of the Group are recorded on an accrual basis.

Revenue of Association

Received donations are recorded as income if they can be valued correctly and it is probable that the Association can benefit economically from these donations.

Heritage donations upon the wills of the donators are recorded as asset and liability upon completing the legal process is completed in favor of the Association (Note 14).

Provisions

Provisions are recognized when the Association has a present legal or constructive obligation or a result of past events, it is probable that on outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

In accordance with the protocols with the donators, the Association guarantees these donators a life time accommodation in “donator sites” and all the other facilities like healthcare and nutrition without any charge. Besides, the Association guarantees some of the donators paying monthly money during their lives in exchange of the donations in accordance with the protocols signed in previous years. The Association does not reserve any provision for the mentioned liabilities in its consolidated financial statements. (Note 12).

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Contingent liabilities and contingent assets

A possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group have not been recognised in these financial statements and treated as contingent liabilities and contingent assets (Note 19).

Statement of cash flows

In statement of cash flow, cash flows are classified according to operating, investment and finance activities.

Cash flows from operating activities reflect cash flows generated from the ordinary course of operations.

Cash flows from investment activities express cash used in investment activities (direct investments and financial investments) and cash flows generated from investment activities of the Association.

Cash flows relating to finance activities express sources of financial activities and payment schedules of the Association.

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which their maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Offsetting

Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Provision for unused vacation pay liability

Under Turkish Labour Law, companies are required to pay vacation benefits to each employee who has completed one year of service during their vacation and compensate fully for any unused vacation upon termination. Provision for unused vacation pay liability represents the accrual for the estimated maximum amount of compensation applicable to the unused vacation of employees (Not 12).

Subsequent events

The Group adjusts the amounts recognised in its consolidated financial statements to reflect the adjusting events after the balance sheet date. If non-adjusting events after the balance sheet date have material influence on the economic decisions of users of the consolidated financial statements, they are disclosed in the notes to the consolidated financial statements. (Not 20).

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Financial risk management

The Group’s activities expose it to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest rates. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The risk management has been undertaken according to approved policies by board of directors.

Credit risk

Credit risk arises from deposits with banks, as well as credit exposures to customers, including outstanding receivables except the donation receivables.

Ownership of financial assets involves the risk that counter parties may be unable to meet the terms of their agreements. The Group management covers these risks by limiting the aggregate risk from any individual counter party and if necessary by obtaining guarantee.

Liquidity and funding risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying business, the Association aims at maintaining flexibility in funding by keeping committed credit lines available. The ability to fund existing and prospective debt requirements is managed by maintaining the availability of adequate committed funding lines from high quality lenders.

Liquidity risk analysis of the financial liabilities of the Association is as follows:

2019 Contractual Less than 3 Between 3- Between 1-5 Over 5 Book Value cash outflows years 12 months years years

Bank borrowings 56.198.884 75.947.822 2.437.847 6.682.725 35.641.200 31.186.050 Payables 12.064.241 12.064.241 12.064.241 - - -

68.263.125 88.012.063 14.502.088 6.682.725 35.641.200 31.186.050

2018 Contractual Less than 3 Between 3- Between 1-5 Over 5 Book Value cash outflows years 12 months years years

Bank borrowings 56.784.784 78.353.925 2.663.228 7.987.540 32.192.082 35.511.075 Payables 10.559.713 10.661.232 10.661.232 - - -

67.344.497 89.015.157 13.324.460 7.987.540 32.192.082 35.511.075

Interest rate risk At 31 December 2019 and 2018 the Group does not have any financial liabilities with floating rates, the Group is not exposed to interest rate risk through the impact of rate changes on interest.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Foreign currency risk

The Group is exposed to foreign exchange risk through the impact of rate changes on translation into New Turkish Lira of foreign currency denominated assets and liabilities. These risks are monitored and limited by analysis of the foreign currency position (Note 18).

Fair value information

Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

Group, requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

. Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). . Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). . Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

Apart from that, for disclosure purposes, the borrowings carried at the amortised cost in the consolidated statement of financial position are presented with their values. The fair value of borrowings for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Association for similar financial instruments that can be classified as level 2. The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to the short-term nature of trade receivables and payables.

NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

a) Revaluation of properties for operational use

The properties for operational use are accounted for based on the fair values determined by the independent professionally qualified valuation companies. The frequency of revaluations depends upon the changes in fair value of the asset revalued. When the fair value of a revalued asset differs materially from its carrying amount, a further revaluation is performed.If there is no such change, the revalution is performed once in every 5 years. In this respect, the Group has accounted for the properties for operational use based on valuations performed by the independent professionally qualified valuation companies in the consolidated financial statements prepared as of 31 December 2019 and 31 December 2018 (Note 8).

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)

b) Fair value of investment properties

The investment properties are accounted for based on the fair values determined by the independent qualified valuation companies. If there are restrictions on the property valued or on the revenues generated from the related property due to the right of use of donator on the property in the registry or the right of use granted to the donator by the Board of Directors of Association, the fair values of the related assets determined by the independent qualified valuation companies are adjusted with respect to the actuarial calculations performed based on such restrictions. CSO 2001 tables are used for the mentioned actuarial calculations. The Association evaluates its investment properties every two years if it has full ownership, and every three years if the donor has the right to be redeemed on the real estate, or if the right of use granted by the Association's Board of Directors to the donor (Note 9).

NOTE 5 - CASH AND CASH EQUIVALENTS 2019 2018 Cash 16.366 8.825 Bank deposit 104.788.674 84.459.620 - Demand deposit 2.812.381 2.613.754 - Time deposit 101.976.293 81.845.866 Other cash equivalents 1.903.891 1.603.741

106.708.931 86.072.186

Cash and cash equivalents that are included in the consolidated statements of cash flows for the year ended 31 December 2019 and 2018 are as follows:

2019 2018 Total cash and cash equivalents 106.708.931 86.072.186 Less: Accrued interest (-) (1.669.322) (483.698)

105.039.609 85.588.488 Details of cash and cash equivalents of the Group as follows:

2019 2018 TL deposit - time deposits 85.476.605 52.016.714 - demand deposits 2.045.503 1.759.513

87.522.108 53.776.227 Foreign currency deposit - time deposit 16.499.687 29.829.152 - demand deposit 766.879 854.241

17.266.566 30.683.393

104.788.674 84.459.620 As of 31 December 2019, the Group has not any restricted cash (31 December 2018: None).

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 5 - CASH AND CASH EQUIVALENTS (Continued)

The average maturity of Group's time deposits is less than 3 months as 31 December 2019 and 2018. The details of time and demand deposits of foreign currencies as follows: 2019 Foreign Currency Amount TL Time Demand Time Demand

USD 2.682.705 43.678 15.935.804 259.456 EUR - 146.768 563.883 412.214 GBP - 9.926 - 77.192 Canadian Dollar - 926 - 4.202 CHF - 2.267 - 13.816

Total 16.499.687 766.879

2018 Foreign Currency Amount TL Time Demand Time Demand

USD 5.646.781 83.801 29.707.150 440.868 EUR 20.239 57.458 122.002 346.356 GBP - 8.719 - 58.007 Canadian Dollar - 57 - 220 CHF - 1.648 - 8.790

Total 29.829.152 854.241

The weighted average yearly interest rates of time deposits:

2019 (%) 2018 (%)

TL 12,32 20,49 USD 2,05 5,14

NOTE 6 - RECEIVABLES

Short-term receivables 2019 2018

Donation receivables 4.379.865 3.806.303 Accounts receivable 974.661 399.295 Receivables from tenants 253.152 140.354 Doubtful receivables 3.089.883 3.923.456 Less: Provision for doubtful receivables (-) (3.089.883) (3.923.456)

5.607.678 4.345.952

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 6 - RECEIVABLES (Continued)

Short-term receivables (Continued)

The movements of provisions for doubtful receivables during the period are as follows:

2019 2018

January 1 3.923.456 4.131.515 Amount provided in the period (Note 16) 176.952 471.941 Written off (525.000) (230.000) Collections during the period (485.525) (450.000)

31 December 3.089.883 3.923.456

NOTE 7 - RELATED PARTY BALANCES AND TRANSACTIONS i) Receivables and payables with related parties as of 31 December 2019 and 2018:

a) Receivables from related parties: 2019 2018 Dr.Uluğ Foundation 2.741.430 1.978.340 Tiryakioğlu Hayrettin Foundation 395.396 390.218 Süreyyapaşa Foundation 109.917 87.537 Mükerrem Karaağaç Foundation 97.166 85.878 Other 384.645 120.398

3.728.554 2.662.371 ii) Income from related parties as of 31 December 2019 and 2018: a) Income from related parties 2019 2018

Income from related foundations (Not 14) 2.996.312 2.456.887

2.996.312 2.456.887 There are no maturities, interests and deposit on receivables from related parties. iii) Benefits provided to top management:

Top management is defined as the high level management of the Association and members of Board of Directors.

Benefits of top management include salary, premiums, SSI employer liability, unemployment employer liability and honorarium paid to the members of Board of Directors. No salary or any other benefit is provided to the members of Board of Directors of Association.

The benefits provided to the top management by the Association as of 31 December 2019 and 2018 are stated below: 2019 2018 Compensation and benefits provided to top management 4.310.440 3.412.246

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 8 - PROPERTY AND EQUIPMENT

1 January Valuation 31 December 2019 Additions Disposals increase, net 2019

Cost/Revalued amount: Land 528.057.182 - - 2.083.318 530.140.500 Buildings 164.285.202 2.618.916 - 12.003.249 178.907.367 Vehicles 449.326 598.996 - - 1.048.322 Furniture and fixtures 23.687.553 1.833.342 - - 25.520.895

716.479.263 5.051.254 - 14.086.567 735.617.084

Accumulated depreciation: Buildings (16.888.195) (8.516.972) - 5.022.308 (20.382.859) Vehicles (441.289) (28.990) - - (470.279) Furniture and fixtures (13.916.210) (2.439.819) - - (16.356.029)

(31.245.694) (10.985.781) - 5.022.308 (37.209.167)

Net book value 685.233.569 698.407.917

1 January Valuation 31 December 2018 Additions Disposals increase, net 2018

Cost/Revalued amount: Land 519.801.359 - - 8.255.823 528.057.182 Buildings 137.513.133 1.136.977 - 25.635.092 164.285.202 Vehicles 449.326 - - - 449.326 Furniture and fixtures 19.555.884 4.131.669 - - 23.687.553

677.319.702 5.268.646 - 33.890.915 716.479.263

Accumulated depreciation: Buildings (15.265.905) (6.269.421) - 4.647.131 (16.888.195) Vehicles (437.604) (3.685) - - (441.289) Furniture and fixtures (11.567.439) (2.348.771) - - (13.916.210)

(27.270.948) (8.621.877) - 4.647.131 (31.245.694)

Net book value 650.048.754 685.233.569

The Association's buildings for operational use are revalued. The fair value of the buildings is determined in accordance with valuation reports prepared by independent valuation company and stated in the consolidated financial statements

31 December 2019

Land Building Accumulated Net book Property value value(*) depreciation value

Darüşşafaka High School Land (1) 471.582.000 - - 471.582.000 Darüşşafaka High School-Building (2) - 80.983.000 (15.742.035) 65.240.965 Donator Sites (3) ,(4), (5), (6), (7) 58.558.500 91.504.551 (4.005.834) 146.057.217 Other (8) - 6.419.816 (634.990) 5.784.826

530.140.500 178.907.367 (20.382.859) 688.665.008

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 8 - PROPERTY AND EQUIPMENT (Continued)

31 December 2018 Land Building Accumulated Net book Property value value(*) depreciation value

Darüşşafaka High School Land (1) 478.295.000 - - 478.295.000 Darüşşafaka High School-Building (2) - 56.204.654 (14.067.784) 42.136.870 Donator Sites (3) ,(4), (5), (6), (7) 49.762.182 101.660.733 (2.312.118) 149.110.797 Other (8) - 6.419.815 (508.293) 5.911.522

528.057.182 164.285.202 (16.888.195) 675.454.189

(*) Includes additions after valuation.

(1) Darüşşafaka High School land, valued by Epos Gayrimenkul Danışmanlık ve Değerleme A.Ş. on 30 March 2019 with the “cost approach method”. (2) Darüşşafaka High School building,valued by Epos Gayrimenkul Danışmanlık ve Değerleme A.Ş. on 30 March 2019 with the “cost approach method”. (3) Yakacık Bağışçiler Sitesi, valued by Eva Gayrimenkul Değerleme A.Ş. On 24 November 2017, it was evaluated with the “average of cost comparison method and peer comparison method”. (4) Maltepe Bağışçiler Site valued by Kare Gayrimenkul Değerleme A.Ş with the “cost method” on 31 October 2019. (5) Şenesenevler Bağışçiler Site,valued by Makro Gayrimenkul Değerleme A.Ş. with the"peer comparison method" on 16 January 2015. (6) Maltepe Nursing Home valued by Makro Gayrimenkul Değerleme A.Ş. on 22 November 2019 with the “cost method”. (7) Urla Donors Site,valued by Email Property Consulting and Valuation Inc. with the “Cost method” on 27 September 2018. (8) Sait Faik Abasıyanık Museum, valued by Dünya Gayrimenkul Değerleme A.Ş. with the "peer comparison method" on 16 January 2017.

Revaluation increases arising from valuation of land and buildings, net of deferred tax effects, are credited to “Revaluation Fund” under shareholders' equity. Revaluation decreases arising from valuation of land and buildings are charged against “Revaluation Fund” for the corresponding asset under shareholders' equity. Revaluation decreases excessing the carrying amount of an asset in “Revaluation Fund “under shareholders' equity are charged to the consolidated statement of activities. The movement of the revaluation increases for the buildings accounted for using revaluation model, for the year ended 31 December 2019 and 2018, is as follows: 2019 2018 1 January 466.531.611 428.965.018 Revaluation increase 19.946.041 38.538.046 Transferred from “Revaluation Fund” to operating results of previous years (*) (837.166) (971.453) 31 December 485.640.486 466.531.611

(*)The difference between depreciation based on the revalued carrying amount of the assets (charged to the consolidated statement of activities) and the depreciation based on the asset's original cost is transferred from 'Revaluation Fund 'to operating results of previous years.

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DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 8 - PROPERTY AND EQUIPMENT (Continued)

Cost and accumulated depreciation amounts of the buildings before revaluation as of 31 December 2019 and 2018 are stated below:

2019 2018 Cost 287.980.274 283.475.937 Accumulated depreciation (148.853.458) (139.948.228)

Net book value 139.126.816 143.527.709

As of 31 December 2019 and 2018, the reconciliation between net book values of property for operational use calculated over cost and revalued amounts is as follows:

31 December 2019 31 December 2018 Revalued amount 709.047.867 692.342.384 Less: Accumulated depreciation (-) (20.382.859) (16.888.195) Revalued amount after deduction of accumulated depreciation 688.665.008 675.454.189 Net book value calculated based on cost 139.126.816 143.527.709 Calculated impairment 63.897.706 65.394.869

Revaluation fund 485.640.486 466.531.611

NOTE 9 - INVESTMENT PROPERTY AND ASSETS HELD FOR SALE

1 January Net increase 31 December 2019 Additions Disposal in value Transfers (*) 2019

Fair value: Investment properties 359.728.530 55.576.556 (52.340) 10.145.511 (57.198.625) 368.199.632

1 January Net increase 31 December 2018 Additions Disposal in value Transfers (*) 2018

Fair value: Investment properties 324.201.024 39.439.106 (7.091.232) 16.796.257 (13.616.625) 359.728.530

(*) Transfers correspond to the amount of reclassifications between investment properties and assets held for sale.

The lands and buildings held to earn rental income or for capital appreciation or both, rather than using for the main operations or for administrative purposes; are classified as investment property.31 December 2019 and 2018, the fair value of the investment properties presented in consolidated financial statements is determined in accordance with the valuation reports prepared by independent professional valuation company. If there is a limitation for usage, actuarial provision is also taken into account while reflecting the amount in consolidated financial statements.

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 9 - INVESTMENT PROPERTY AND NON-CURRENTS ASSETS HELD FOR SALE (Continued)

Investment properties are classified as assets held for sale under current assets when the decision for the sale transaction for the related property, instead of the continuance of the regular use for rental income generation, is given. The movements of such assets for the years ended 31 December 2019 and 2018 are presented below:

31 1 January Net increase December 2019 Additions Disposal in, value Transfers(*) 2019

Fair value: Asset held for sale 7.788.000 - (21.587.769) 3.221.770 57.198.625 46.620.626 31 1 January Net increase December 2018 Additions Disposal in, value Transfers(*) 2018

Fair value: Asset held for sale 3.590.000 - (9.413.625) (5.000) 13.616.625 7.788.000

(*) Transfers correspond to the amount of reclassifications between investment properties and assets held for sale.

The rent income from investment properties is TL 9.362.671 as of 31 December 2019 (31 December 2018: TL 7.214.998) (Note 14).

NOTE 10 - PAYABLES 2019 2018

Payables to suppliers 10.630.502 10.042.483 Other payables 1.433.739 517.230

12.064.241 10.559.713

Average maturity of payables is 3 months as of 31 December 2019 and 2018

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CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 11 - BORROWINGS 2019 Annual interest Original Short term borrowings: rate amount TL

USD dominated borrowings %0-%7,00 1.535.398 9.120.572 USD –Deferred finance expense (-) (52.017) (308.992)

Total short term borrowings 8.811.580

Long term borrowings: USD dominated borrowings %0-%7,00 11.250.000 66.827.250 USD Deferred finance expense(-) (3.272.608) (19.439.946)

Total long term borrowings 47.387.304

2018 Annual interest Original Short term borrowings: rate amount TL USD borrowings %0-%7,00 2.024.510 10.650.745

USD Deferred finance expense(-) (69.674) (366.549)

Total short term borrowings 10.284.196

Long term borrowings:

USD borrowings %0-%7,00 12.869.120 67.703.153

USD Deferred finance expense(-) (4.030.216) (21.202.565)

Total long term borrowings 46.500.588

The payment schedule of long term borrowings as of 31 December 2019 and 2018 is as follows

2019 2018 2020 - 7.635.929 2021 7.966.936 6.534.075 2022 7.377.771 6.050.873 2023 6.832.176 5.603.403 2024 6.325.939 5.188.214 2025 5.857.811 4.804.279 2026 6.328.722 5.190.496 2027 6.697.949 5.493.319

47.387.304 46.500.588

Details of mortgages and guarantees due to borrowings as of 31 December 2019 and 2018 have been explained in Note 19.

26 Darüşşafaka Society Annual Report 2019 151

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 12 - OTHER LIABILITIES

2019 2018 Short-term Liabilities Provision for litigations 7.818.387 5.454.506 Deferred income 2.267.197 1.362.522 Provision for unused vacation liability 1.724.309 923.373 Deposits and guarantees received 1.527.478 959.616 Advances received 1.428.474 202.679 Taxes and funds payable 2.070.497 2.211.633 Accrued expenses 593.372 509.064 Payables to personnel 35.094 24.096 Other 24.350 8.864 17.489.158 11.656.353

Long-term liabilities 17.568.243 - Conditional deferred income (*) 17.568.243 - (*) It consists the Maslak campus project and grants received on the condition of scholarships and expenses for students and the aforementioned conditions are expected to be realized in more than one year as of the consolidated financial statement date.

NOTE 13 - PROVISION FOR EMPLOYMENT TERMINATION BENEFITS

Under the Turkish Labour Law, the Association is required to pay termination benefits to each employee who has completed one year of service and whose employment is terminated without due cause, or who is called up for military service, dies or retires after completing 25 years of service (20 years for women) and achieves the retirement age (58 for women and 60 for men). Since the legislation was changed on 23 May 2002 there are certain transitional provisions relating to the length of service prior to retirement.

The amount payable consists of one month’s salary limited to a maximum of TL 6.379,86 (2018: TL 5.434,42) for each year of service at 31 December 2019.

The liability is not funded, as there is no funding requirement

The provision has been calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of the employees.

IFRS require actuarial valuation methods to be developed to estimate the enterprises’ obligation under defined benefit plans. Accordingly, the following actuarial assumptions were used in the calculation of the total liability. 2019 2018

Discount rate (%) 4,21 4,66 Probability of retirement (%) 92 92

27 152 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 13 - PROVISION FOR EMPLOYMENT TERMINATION BENEFITS (Continued)

The movements in the provision for employment termination benefits during the years ended 31 December 2019 and 2018 are as follows: 2019 2018

January 1 7.591.463 6.756.764 Current service cost 773.011 1.122.302 Interest cost 831.028 1.024.895 Payments (-) (2.662.717) (2.030.148) Actuarial (gains) / losses 1.604.681 717.650

31 December 8.137.466 7.591.463

NOTE 14 - DONATIONS AND INCOME FROM OPERATIONS 2019 2018 Cash donations 124.848.015 104.619.150 Real estate donations 36.049.895 27.336.606 Health unit sales income 24.532.067 18.559.691 Restricted real estate donations 19.526.661 12.102.500 Valuation gains from investment properties 13.367.281 16.791.257 Rental income (*) (Note 9) 9.362.671 7.214.998 Gain on sale of assets 3.630.833 2.970.137 Incomes from related foundations (Note 7) 2.996.312 2.456.887 Other 9.855.467 8.588.591

244.169.202 200.639.817

(*)Within scope of consolidation, all the transactions between the Association and its subsidiaries and the Commercial Enterprise are written off in accordance with full consolidation method. Within this framework, the rent income of the Association from its subsidiaries and Commercial Enterprise are eliminated within the financial statements of the period ended as of 31 December 2019

NOTE 15 - OPERATING EXPENSES

2019 2018

Personnel expenses 57.683.643 54.352.793 Operational expenses 26.514.817 20.119.338 Donator expenses 22.105.574 11.717.144 Food expenses 16.870.194 15.269.809 Amortisations and depreciation charge 10.985.781 8.621.877 Education and social expenses of students 7.942.134 5.440.564 Maintenance and repairment expenses 3.150.339 3.728.009 Other 6.786.967 5.898.493

152.039.449 125.148.027

28 Darüşşafaka Society Annual Report 2019 153

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 16 - OTHER INCOME AND EXPENSES

2019 2018 Other income

SHİ discount and incentive income 2.742.692 3.177.770 Provision no longer required 485.525 1.134.775

Gain on marketable securities 744.078 - Other 667.752 1.415.731

4.640.046 5.728.276

Other expense:

Court compensation expenses - (955.703) Provision of doubtful receivable expense (Note 6) (176.952) (471.941) Liti gation provision expenses (2.363.881) (421.736) Loss on marketable securities (92.741) (246.838) Other (520.102) (865.412)

(3.153.676) (2.961.630)

NOTE 17 - FINANCIAL INCOME AND EXPENSES

Financial income: 2019 2018

Interest income 19.022.600 8.710.981 Rediscount income on borrowings,net - 3.202.786

19.022.600 11.913.767

Financial expenses:

Interest and commission expenses (-) (2.035.700) (1.330.165) Forei gn exchange losses (-) (1.532.429) (8.495.337)

Rediscount expenses on borrowings (-) (1.838.559) -

(5.406.688) (9.825.502)

Net financial expense, net 13.615.912 2.088.265

29 154 Darüşşafaka Society Annual Report 2019

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 18 - FOREIGN CURRENCY POSITION

Turkish Lira equivalent of assets and liabilities denominated in foreign currency held by the Company at 31 December 2019 and 2018 are as follows:

2019 USD EUR Other Total

Assets: Cash and cash equivalents 16.195.260 976.097 95.207 17.266.564 Financial assets 48.711.203 - - 48.711.203

Liabilities: Borrowings 56.198.884 - - 56.198.884

Net foreign currency position 8.707.579 976.097 95.207 9.778.883

2018 USD EUR Other Total

Assets: Cash and cash equivalents 30.148.018 468.358 67.017 30.683.393 Financial assets 30.038.377 - - 30.038.377

Liabilities: Borrowings 56.784.784 - - 56.784.784

Net foreign currency position 3.401.611 468.358 67.017 3.936.986

At 31 December 2019, if USD and EUR had strengthened / weakened by 10% against TL with all other variables held constant, income before tax for the year ended would have been TL 870.758 lower / higher (2018: TRY 340.161), mainly as a result of foreign exchange losses / gain on translation of USD denominated assets and liabilities. Income before tax for the year ended would have been TL 97.610 lower / higher (2018: TL 46.836), mainly as a result of foreign exchange losses / gain on translation of EUR denominated assets and liabilities.

NOTE 19 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES

Mortgages and collaterals

Mortgages and cash collaterals related with the borrowings of Association are as follows as of 31 December 2019 and 2018.

2019 USD EUR TL Total

Mortgage obligations (*) 899.940.300 - 27.986.750 927.927.050

Total 899.940.300 - 27.986.750 927.927.050

30 Darüşşafaka Society Annual Report 2019 155

DARÜŞŞAFAKA SOCIETY AND ITS SUBSIDIARIES

CONVENIENCE TRANSLATION OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2019 AND 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.)

NOTE 19 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES (Continued)

Mortgage and collaterals (Continued)

2018 USD EUR TL Total

Mortgage obligations (*) 797.026.350 - 28.808.785 825.835.135

Total 797.026.350 - 28.808.785 825.835.135

(*) Investment properties, assets held for sale and properties for used correspond to the mortgage

Contingent liabilities

Provision is accounted for the legal cases when it is probable that the Association may have to pay compensation or sell a part of its assets due to the result of the law cases against it (Note 12).

When it is estimated that performance of a payment will not be probable as a result of a legal case based on the legal assessment or when assets subject to the legal case are not included in the consolidated financial statements of the Association, a provision has not been accounted for and related amounts are disclosed in the notes to consolidated financial statements. In this context, the details of the legal cases for which no provision has been recorded are presented below: 2019 2018

Legal cases related to donations and testaments (*) 35.073.250 27.550.887 Other legal cases 7.150.711 6.510.082

Total 42.223.961 34.060.969

(*) TL 8.957.186 of this amount was calculated in relation to the lawsuit filed by the donor in cash by the donor's heirs in 2016 with the request of the donor to withdraw it through the court in the year 2007. However it was not possible to make a compensation payment in the light of the legal opinion on the outcome of the case (31 December 2018: TRY 7.721.712). Even if the remaining donations and testament cancellation cases result in disagreement, there will be no outflow of resources from the Association.

NOTE 20 - EVENTS AFTER THE BALANCE SHEET DATE

None.

…………………..

31 156 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal

To the attention of Chairmanship of Darüşşafaka Society General Assembly for 2019

Darüşşafaka Society Board of Directors received some authorizations from the General Assembly with regard to 2019 budget proposal. The Board exercised these authorities as follows:

A) The expenses of the Residences and Society Center have been 6% below the budget; the expenses of Darüşşafaka Schools have been 4% below the expense budget; and scholarship payments have been 6% above the budget.

B) The overall budget allowances have not been exceeded; the other exceeding of allowances have remained within the maximum 5% allowance exceeding authorization.

C) The bank loan carried forward to report year 2016 is USD 21,8 M and TL 19,8 M. The bank loan carried forward to report year 2017 is USD 19,7 M and TL 14,5 M. The bank loan carried forward to report year 2018 is USD 17,2 M. The bank loan carried forward to report year 2019 is USD 14,9 M. The bank loan carried forward to report year 2020 is USD 12,8 M.

The borrowing power received in 2019 has not been exercised.

M. Tayfun ÖKTEM Chairman of the Board Darüşşafaka Society Annual Report 2019 157

To the attention of Chairmanship of Darüşşafaka Society General Assembly for 2019

2020 budget estimation of revenues of Darüşşafaka Society Board of Directors, the current expenditure allowances as well as the estimation of investment expenses are herewith enclosed for the approval of the General Assembly.

Hereby I respectfully submit the following requests for your approval to give authority to the Darüşşafaka Society Board of Directors;

A) to make transfers between sections and expense items,

B) to be able to exceed the financing expenses in line with the variations of the interbank interest rates and the other expense allowances by maximum %5,

C) to be able to do new borrowing up to TL 10 million in order to cover the current expenses in case the budgeted revenues are not realized in 2020,

D) to get a letter of guarantee from the banks with respect to any legal disputes or in order to give it to public authorities pursuant to the legislation, and to exclude this letter of guarantee from the additional borrowing limit,

E) to use the investment allowances projected in the budget,

F) to use the investment allowances projected in the budget for the service procurements for important projects related to the Asset Management, such as project, consultancy, map-cadaster and necessary feasibility studies.

The abovementioned requests of authority are kindly submitted for your approval.

M. Tayfun ÖKTEM Chairman of the Board 158 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal

The Statement on Accuracy and Authenticity of Financial Statements and Footnotes

• We have reviewed the Financial Position Statement, Consolidated Activities Statement, Cash Flow Statement, Statement of Net Change in Assets, the Footnotes containing the related explanations and Annual Report for the period 01.01.2019-31.12.2019, all of which have been approved by the Board of Directors and Supervisory Board and prepared pursuant to IFRS provisions;

• In accordance with the information that we possess in our area of responsibility in the Society, the financial statements and footnotes do not contain incorrect disclosures or any omissions that may give rise to misleading results as of the date the disclosure was made;

• In accordance with the information that we possess in our area of responsibility in the Society, as of the relevant report year, the Consolidated Financial Statements and footnotes reflect the accurate financial status of our Society and the correct results of the activities, and have been accepted and approved as per Board Decision No. 8 dated 04.03.2020.

We herewith declare the abovementioned statements.

M. Tayfun ÖKTEM Chairman of the Board

Cem ŞİPAL Accountant Member of the Board

SENEM BAŞYURT Secretary General Darüşşafaka Society Annual Report 2019 159

Investment Budget Proposal for 2020 (TL 000)

2019 Budget 2019 Actual 2020 Budget Statements Construction Works Residence Renovations 2.085 1.829 821 1 The Society Center and Society Museum 140 97 563 2 Construction Works Total 2.225 1.926 1.384

Equipments Schools 176 392 673 Maltepe Residence 226 73 381 Society Center 38 294 352 Urla Residence 98 392 223 Yakacık Residence 38 66 200 Şenesenevler Residence 30 31 106 Special Care Unit 464 86 - Equipments Total 1.070 1.335 1.936 3

Information Technologies Center ERP 372 365 400 Rights 193 39 182 Information Technologies Total 564 404 582 4

Darüşşafaka Schools Transformation Project Construction Works 1.135 979 1.286 Tablet-High School - Computer Lab and Smart Board 992 519 525 LMS-SMS Software 140 67 10 Maslak Campus Firewall Renewal (1000D) 75 75 Total Transformation Project 2.342 1.641 1.821 5

Projects Dormitory Project - - 6.500 Maslak Campus Project 4.350 1.143 3.435 Urla Lodging and Guest House Transformation Project - - 3.000 Projects Total 4.350 1.143 12.935 6

Investments Total 10.551 6.449 18.657 160 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal

Investment Budget Proposal for 2020 (TL 000) - Statements

1) Residence Renovations 821 Boiler and Hydrophore Room Replacement of the Fire, Heating, Cooling Valves and Pipes 210 Urla Residence Renovation 210 Yakacık Residence Renovation 209 Maltepe Residence Renovation 177 Şenesenevler Residence Renovation 15

2) The Society Center and Society Museum 563 Maslak Parking Garage Floor Insulation and Pillar Reinforcement 200 Society Building Floor Repairment and Restoration 183 Maslak Main Entrance Renovation 180

3) Fixtures 1.936 Maltepe Residence Rotary Iron purchase 200 Schools Steam Generator Renovation 150 Other Fixture Purchases for the Society Center, Schools and Residences 1.586

4) Investment in Information Technologies 582 Center ERP Stock Counting and Fixture Software 400

Rights Wireless Network Monitoring Software 75 Mobile Application 40 Intranet Additional Development Activities 19 DS High School Third Party Software Need 18 DS Secondary School Third Party Software Need 14 Education Platform Software 9 Web Pages Security Certificates (Ssl Certificates) 7 Darüşşafaka Society Annual Report 2019 161

5) Darüşşafaka Schools Transformation Project Works to Be Done in 2020 1,821 Dormitory Renovation 814 Tablet-High School - Computer Lab and Smart Board 525 Floor Repairment 460 LMS-SMS Software Additional Development Needs 10 Other 12

The items in the investment budget are mainly the use of technology in education as well as improvement and development of the campus conditions.

6) Projects 12,935 Maslak Campus Project 3.435 Municipal / Cadastral Processes 2.335 Architecture Fees 250 Consultancies 850

Dormitory Project 6.500

In cooperation with Tekfen Foundation, Student Guest House project will be developed at the Darüşşafaka Maslak Campus for Darüşşafaka grad students.

Urla Lodging and Guest House Transformation Project 3.000

The idle building at the Urla Campus will be reinforced and converted into personnel lodging and guest house.

Market Value (TL 000) Commencement Date Yakacık Residence 47.657 1997 Maltepe Residence 36.000 2004 Special Care Unit-Maltepe 7.150 2003 Şenesenevler 25.200 2005 Urla Residence 44.410 2007 162 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal

2019 Final Accounts and 2020 Budget Proposal - Statements (TL 000)

2018 Actual 2019 Budget 2019 Actual 2019 Actual / 2020 Budget 2019 Budget Revenues 177.918 186.941 227.068 21,5% 294.617 Corporate Donations 37.289 40.662 44.858 10,3% 47.319 İşbank 26.015 28.862 29.889 3,6% 30.800 Doğuş Group 2.098 2.800 2.794 (0,2%) 3.085 Other Corporate 9.176 9.000 12.175 35,3% 13.434 Individual Donations 44.672 48.443 71.288 47,2% 120.148 Bequest & Immovable Donations 32.518 20.007 21.977 9,8% 26.138 Donations via Bequest-Immovable 11.256 10.000 9.927 (0,7%) 11.075 Donations via Bequest-Movable 3.836 6.007 3.892 (35,2%) 5.062 Full Ownership Donations 17.426 4.000 8.158 104,0% 10.000 Asset Management Revenues (Net) 9.745 9.851 9.678 (1,8%) 8.028 Rental Income 7.833 9.222 9.160 (0,7%) 9.853 Foundation Revenues 2.457 2.414 2.996 24,1% 2.678 Copyright Incomes 556 400 545 36,4% 400 Asset Management Expenses (1.101) (2.186) (3.024) 38,4% (4.903) Residence Protocol Cash and Immovable Donations 38.661 52.200 54.108 3,7% 72.000 Commercial Enterprise (net) 1.118 1.010 1.699 68,2% 2.521 In-Kind Donations 521 1.200 327 (72,8%) 2.060 Financial Revenues (Net) 7.171 9.441 17.290 83,1% 14.750 Other Revenues 6.222 4.126 5.843 41,6% 1.654 Expenses (95.587) (121.169) (115.185) (4,9%) (146.603) Darüşşafaka Schools Expenses (40.046) (50.668) (48.758) (3,8%) (59.959) Society Center Expenses (13.081) (17.328) (16.297) (5,9%) (23.689) Residence Expenses (41.325) (51.841) (48.722) (6,0%) (61.451) Scholarship Payments (1.136) (1.332) (1.408) 5,7% (1.503) Income - Expense Difference 82.331 65.772 111.883 70,1% 148.014

Profit (+) / Loss (-) on Sale of Society and Residence Immovables is not included, Residence Based Bare Ownership donations are not included, Depreciation expenses are not included, Darüşşafaka Residences New Member Admissions

Number of New Donors Admitted 2018 Actual 2019 Actual 2020 Budget Yakacık Residence 4 14 12 Maltepe Residence 8 8 15 Şenesenevler Residence 9 3 9 Urla Residence 10 11 13 Special Care Unit 1 0 0 Total 32 36 49 Darüşşafaka Society Annual Report 2019 163

Cash Flow Statement (TL 000) 2020 Budget Statements Income - Expense Difference 148.014 Revenues 294.617 Cash Expenses (146.603) Credit Principal Repayment (9.473) 1 US Ex-Im Bank (USD 1,500 thousand) (9.255) İşbank Credit Interest + Principal repayment (USD 35,000) (218) Investment Payments (18.657) Protocol Immovable Donation (36.000) Donation via Bequest-Immovable (11.075) In-Kind Donations (2.060) Immovable Donations (10.000) Commercial Enterprise Net Revenue (2.521) Net Profit on Operations Within the Period +/(-) 58.227 Immovable Inventory on Sale 96.813 Average Sale Ratio 25% Cash from Immovable Sales 24.000 2 Cash Generation Capacity 82.227 Cash at the Beginning of the Period 197.637 Free Cash 190.289 Blocked Time Deposits 7.349 3 Total Cash 279.865

Statements 1) It states the credit principal repayments in 2020. US Exim Bank $1.500 İş Bahrain $35 Total $1.535

2) 25% of immovables on sale are expected to be sold in 2020.

3) Total of Blocked Time Deposits 7,349 Conditional Donation for Soma 829 Other Conditional Donations 6.519 164 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal

Darüşşafaka Society Society Center 2019 Final Accounts & 2020 Budget Proposal (TL 000)

1 2 2-1 3 3-2 3/2 2019 B 2019 A Difference 2020 B Difference % Personnel Expenses 10.461 9.586 (875) 11.532 1.947 20,3% Publicity and Promotion Expenses 4.026 3.682 (345) 8.269 4.587 124,6% Informatics Expenses 609 556 (54) 1.282 726 130,7% Legal and Court Expenses 372 585 213 521 (63) (10,8%) Energy Expenses 230 283 53 366 83 29,3% Communication Expenses 176 292 116 274 (17) (6,0%) Consultancy Expenses 285 201 (84) 259 58 28,8% Rental Vehicle Expenses 231 218 (13) 250 32 14,7% Maintenance and Repair Expenses 242 192 (49) 199 6 3,3% Food Expenses 157 152 (5) 190 38 24,8% Insurance Expenses 254 219 (35) 137 (82) (37,3%) Other Expenses 284 331 47 410 79 23,8% Total Expenses 17.328 16.297 (1.031) 23.689 7.393 45,4%

Darüşşafaka Society Darüşşafaka Schools 2019 Final Accounts & 2020 Budget Proposal (TL 000)

1 2 2-1 3 3-2 3/2 2019 B 2019 A Difference 2020 B Difference % Personnel Expenses 29.609 28.860 (749) 31.432 2.572 8,9% Food Expenses 7.788 7.863 75 12.118 4.255 54,1% Cleaning Expenses 2.767 2.937 170 3.558 621 21,1% Energy Expenses 2.504 2.331 (172) 2.824 492 21,1% Activity Expenses 2.255 2.456 201 2.239 (217) (8,8%) Education Material Expenses 1.353 1.229 (125) 1.972 743 60,5% Informatics Expenses 845 520 (324) 1.854 1.334 256,3% Expenses of Student Houses 807 464 (343) 1.040 576 124,0% Maintenance and Repair Expenses 743 577 (166) 866 289 50,1% Expenses of the Darüşşafaka Examination 395 366 (29) 533 167 45,6% Publicity and Promotion Expenses 180 62 (118) 298 236 379,6% Consultancy Expenses 551 586 34 297 (289) (49,3%) Insurance Expenses 213 80 (133) 162 83 103,7% Other Expenses 658 427 (232) 767 340 79,8% Total Expenses 50.668 48.758 (1.910) 59.959 11.201 23,0% Darüşşafaka Society Annual Report 2019 165

Darüşşafaka Society Residences 2019 Final Accounts & 2020 Budget Proposal (TL 000)

1 2 2-1 3 3-2 3/2 2019 B 2019 A Difference 2020 B Difference % Personnel Expenses 13.525 12.694 (831) 14.839 2.145 16,9% Health Expenses 8.901 8.230 (671) 10.329 2.099 25,5% Food Expenses 8.363 8.595 232 11.478 2.883 33,5% Special Care Unit Operational Expenses 6.596 6.171 (425) 8.294 2.123 34,4% Energy Expenses 4.683 4.445 (238) 5.712 1.267 28,5% Cleaning Expenses 4.356 4.310 (46) 4.880 570 13,2% Maintenance and Repair Expenses 2.271 1.572 (699) 2.277 705 44,8% Publicity and Promotion Expenses 880 452 (428) 742 290 64,0% Informatics Expenses 287 193 (94) 711 518 268,3% Donor Special Day and Event Expenses 639 856 217 867 11 1,3% Insurance Expenses 214 225 11 273 48 21,4% Consultancy Expenses 254 123 (130) 237 114 92,2% Communication Expenses 134 114 (20) 154 40 35,0% Other Expenses 738 741 3 658 (83) (11,2%) Total Expenses 51.841 48.722 (3.119) 61.451 12.729 26,1%

Darüşşafaka Society Daçka A.Ş. 2019 Final Accounts & 2020 Budget Proposal (TL 000)

1 2 2-1 3 3-2 3/2 2019 B 2019 A Difference 2020 B Difference % A- Revenues 389 263 (126) 365 102 38,6% Concert and Event Revenues 350 218 (132) 300 82 37,6% Souvenir Sales 34 42 8 55 13 30,3% Other Revenues 5 3 (2) 10 7 232,5% B-Expenses 342 329 (13) 358 29 8,7% Personnel Expenses 74 74 0 75 1 2,0% Enterprise Expenses 2 1 (1) 1 0 12,0% Activity Expenses 190 200 10 235 35 17,4% Other Expenses 60 40 (20) 40 0 0,0% Renting Expenses 17 6 (11) 6 - 0,0% Consultancy and Advisory Expenses 0 8 8 8 - 0,0% A- B Period Profit and Loss 47 (66) (112) 7 73 (111,1%) 166 Darüşşafaka Society Annual Report 2019

Darüşşafaka Society 2019 Final Accounts and 2020 Budget Proposal

Darüşşafaka Society Commercial Enterprise 2019 Final Accounts & 2020 Budget Proposal (TL 000)

1 2 2-1 3 3-2 3/2 2019 B 2019 A DIFFERENCE 2020 B DIFFERENCE % Special Care Income 16.119 15.052 (1.067) 20.463 5.412 36,0% Rehabilitation Income 4.959 4.613 (346) 6.398 1.786 38,7% Hospitalization and Room Income 2.349 2.436 87 2.804 367 15,1% Assisted Living Service Income 1.543 1.604 62 1.949 345 21,5% Other Revenues 1.336 1.877 541 1.555 (323) (17,2%) Total Revenues 26.306 25.582 (724) 33.169 7.587 29,7% Personnel Expenses 13.345 12.385 (961) 14.770 2.386 19,3% Food Expenses 3.507 3.854 347 5.761 1.907 49,5% Rent Expenses 2.478 2.374 (104) 2.500 126 5,3% Energy Expenses 1.538 1.518 (20) 1.948 430 28,3% Cleaning Expenses 1.297 1.244 (53) 1.571 327 26,3% Maintenance and Repair Expenses 1.247 614 (633) 1.216 602 98,1% Health Expenses 837 952 114 1.449 497 52,2% Consultancy Expenses 335 306 (30) 217 (89) (29,1%) Informatics Expenses 210 146 (64) 541 395 270,1% Other Expenses 501 491 (10) 675 184 37,6% Total Expenses 25.295 23.883 (1.413) 30.648 6.766 28,3% Net Profit for the Period 1.010 1.699 689 2.521 822 48,3% Foundations Whose Incomes are Dedicated to the Darüşşafaka Society 2019 Final Accounts & 2020 Budget Proposal

1 2 2-1 3 3-2 3/2 2019 B 2019 A DIFFERENCE 2020 B DIFFERENCE % Aliye Arslan Foundation 4 3 (1) 5 2 76,5% Çakıroğlu Foundation 135 267 132 359 92 34,6% Denizsever Foundation 55 85 30 83 (2) (1,8%) Erer Foundation 69 117 48 139 22 18,6% İmamverdi Foundation 27 29 2 49 20 67,9% Mükerrem Karaağaç Foundation 336 323 (13) 262 (61) (18,9%) Nuriye ve İdris Murgüz Foundation 27 29 2 35 6 22,3% Süreyyapaşa Foundation 994 1,537 543 1,757 220 14,3% Nezhun Tevgil Foundation 318 508 190 219 (289) (57,0%) Tiryakioğlu Foundation 147 535 388 449 (86) (16,0%) Dr. Uluğ Foundation 673 757 84 435 (322) (42,6%) Halil Hasan Uysal Foundation 14 28 14 47 19 66,9% Misbah Muhayeş Foundation 101 206 105 230 25 12,0% M. Feridun Öz Educational Foundation 30 33 3 37 4 12,0% Gülay Educational Foundation 0 44 44 44 0 0,0% Total 2.930 4.501 1.571 4.152 (350) (7,8%) Darüşşafaka Society Annual Report 2019 167

Employment Status as of December 31, 2019

Number of Employees Number of Employees in Residences Number of Employees in Society Center and Health Units in Darüşşafaka Schools Title People Title Professional Administrative Title People Secretary General and Assistant Secretary 3 Yakacık Residence 19 19 General Manager 1 General Fundraising, Donation and 19 Maltepe Residence 41 26 Administrator 20 Communication Financial Affairs 5 Şenesenevler Residence 12 14 Manager 3 Procurement 6 Urla Residence 25 32 Deputy Manager 10 Facility and Support 6 Special Care Unit 34 7 Chief of Department 1 Services Human Resources and 4 FTR Center 20 9 Coordinator 5 Internal Communication Real Estate 5 Urla Yaşam Unit 55 15 Teacher 120 Information Technologies 4 Total 206 122 Teaching Assistant 47 Foundations 1 Academic Trainers 37 Total 53 Administrative Staff 48 Chief Legal Counsel and 4 Other Personnel 35 Law Office Board Of Directors Office 2 TOTAL 307 Internal Audit 1 Total 7 Ankara Office 1 Total 1 Darüşşafaka Museum 1 Sait Faik Abasıyanık 2 Museum Total 3 Total 64 TOTAL 328 TOTAL 307

GRAND TOTAL 699 168 Darüşşafaka Society Annual Report 2019

Contact Information

Darüşşafaka Society Darüşşafaka Urla Residence Address Darüşşafaka Mah. Darüşşafaka Cad. Address Torasan Mah. 619 Sok. No: 3/B No: 5/9 Maslak 34457 Sarıyer/ Urla 35430/Izmir-TURKEY Istanbul-TURKEY Phone +90 (232) 754 73 80 Phone +90 (212) 939 2800/0850 222 1863/ +90 (530) 951 6554 +90 (212) 276 6714 +90 (530) 951 6553 Fax +90 (212) 276 5011 Fax +90 (232) 754 11 06 E-Mail [email protected] E-Mail [email protected]

Darüşşafaka Society Darüşşafaka Society Commercial Ankara Liaison Office Enterprise Maltepe Branch Address Darüşşafaka Mah. Darüşşafaka Cad. Address Zümrütevler Mah. Zeren Sok. No: 27 No: 5/9 Maslak 34457 Sarıyer/ 34852 Maltepe/Istanbul-TURKEY Istanbul-TURKEY Phone +90 (216) 457 8900 Phone +90 (212) 939 2800 Fax +90 (216) 457 9351 Fax +90 (212) 285 2586 E-Mail [email protected] Darüşşafaka Ömran ve Yahya Web https://www.darussafaka.k12.tr Hamuluoğlu Physical Therapy and Rehabilitation Center Darüşşafaka Yakacık Residence Address Zümrütevler Mah. Mercan Sok. No: 37 Address Yakacık Yeni Mahalle Çalkantı Sok. 34852 Maltepe/Istanbul-TURKEY No: 4 Yakacık 34876 Kartal/ Phone +90 (216) 457 9292/ Istanbul-TURKEY FTR Call Center 444 8 387 Phone +90 (216) 452 0002 Fax +90 (216) 441 5466 Fax +90 (216) 451 6396 E-Mail [email protected] E-Mail [email protected] Web http://www.dsftr.com

Darüşşafaka Maltepe Residence Urla Yaşam Special Nursing Home and Address Zümrütevler Mah. Mercan Sok. Care Center No: 35 34852 Maltepe/Istanbul-TURKEY Address Torasan Mah. 619 Sok. No: 3/A Phone +90 (216) 457 8900 Urla 35430/Izmir-TURKEY Fax +90 (216) 457 9351 Phone +90 (232) 754 1186 E-Mail [email protected] +90 (232) 754 7379 Fax +90 (232) 754 1106 Darüşşafaka Şenesenevler Residence E-Mail [email protected] Address Kozyatağı Mah. Kırçiçeği Sok. No:1 Web http://www.urlayasam.com.tr Şenesenevler 34742 Kadıköy/ Istanbul-TURKEY Sait Faik Abasıyanık Museum Phone +90 (216) 380 4868/0216 380 4869/ Address Çayır Sokak No: 15, Burgazada/ +90 (216) 380 4870 Istanbul-TURKEY Fax +90 (216) 445 6372 Phone +90 (216) 381 2060 E-Mail [email protected] E-Mail [email protected] Web http://www.saitfaikmuzesi.org Table of Contents

04 Chairman’s Message 10 Secretary General’s Message 14 Message from the General Manager of Darüşşafaka Schools DARÜŞŞAFAKA SOCIETY ANNUAL REPORT 2019 20 Darüşşafaka in Brief 22 Milestones 24 2019 at a Glance 28 2019 in Figures

Review of Operations in 2019 33 Educational Activities 59 Corporate Communications 66 Donations and Fundraising Activities 82 Darüşşafaka Residences 86 Law Office 89 Support Services 96 Museums 98 Commercial Enterprises and Initiatives 102 Corporate Governance 114 Our Griefs in 2019

116 Report of the Supervisory Board 119 Consolidated Financial Statements and Independent Auditor’s Report as at and for the Year Ended December 31, 2019 for Darüşşafaka Society and Its Subsidiaries 121 Independent Auditor’s Report 156 2019 Final Accounts and 2020 Budget Proposal 167 Employment Status as of December 31, 2019 168 Contact Information

As per the Personal Data Protection Law (PDP), pictures in this report Proudly produced by FİNAR. do not reflect the real names and surnames of the students. www.finarkurumsal.com Annual Report 2019 DARÜŞŞAFAKA SOCIETY ANNUAL REPORT 2019

T: 0850 222 1863 www.darussafaka.org