Akkök Holding A.Ş. Report 2016 Akkök Holding A.Ş. Report 2016 1 CONTENTS APPROPRIATE INVESTMENTS, SUSTAINABLE PROGRESS… Introduction 02 Akkök at a Glance 04 About Us WE INVEST IN THE FUTURE WITH 06 Key Financial Indicators 08 History and Development OUR SERVICES AND PRODUCTS, Management 16 Message from the Chairman 18 Message from the CEO RAISING STANDARDS IN THE 20 Executive Board 22 2016 Akkök Board of Directors Operations in 2016 CHEMICAL, ENERGY AND REAL Chemicals 24 Aksa Akrilik 28 DowAksa İleri Kompozit Malzemeler Sanayi Ltd. Şti. ESTATE INDUSTRIES. 32 Ak-Kim Kimya Sanayi ve Ticaret A.Ş. Energy 36 Akenerji Elektrik Üretim A.Ş. 44 SEDAŞ Sakarya Eleketrik Dağıtım A.Ş. 48 Sepaş Enerji Sakarya Elektrik Perakende Satış A.Ş. Real Estate 52 Akiş Gayrimenkul Yatırım Ortaklığı 56 Akmerkez Gayrimenkul Yatırım Ortaklığı A.Ş. 62 SAF Gayrimenkul Yatırım Ortaklığı A.Ş. 68 Ak Turizm ve Dış Ticaret A.Ş. Textiles 70 Aksa Egypt Acrylic Fiber Industry S.A.E. Services 72 Akmerkez Lokantacılık Gıda San. ve Tic. A.Ş. 74 Akasya Çocuk Dünyası A.Ş. 76 Ak-Pa Tekstil İhracat Pazarlama A.Ş. 77 Aktek Bilgi İletişim Teknolojisi San. ve Tic. A.Ş. 79 Dinkal Sigorta Acenteliği A.Ş. Akkök Holding A.Ş. 82 Human Resources 92 Corporate Social Responsibility 94 Sustainability 103 Financial Statements 168 Directory 2 Akkök Holding A.Ş. Report 2016 3 Akkök at a Glance TOTAL COMBINED SEDAŞ AKTEK TURNOVER OF Sedaş General Directorate is an institution providing Using the most up-to-date global technologies in uninterrupted energy distribution service to a information technology TL 8.7 BILLION. population of 3,384,719 in a total of four regions, Developing applications for the Group companies to 45 districts, 47 towns and 766, 1,366 in the keep their technological infrastructure up to date AKKÖK HOLDİNG Attaining the sector’s highest export figure for the neighborhood villages on an area of 19,421 square Pioneering brand in the IT sector Mr. Raif Dinçkök founded the Akkök Holding of past 4 years running, it won the grand prize in the kilometers covering the regions of Sakarya, Kocaeli, High service standards and customer satisfaction Companies in 1952, with the establishment of Aksu Istanbul Mineral and Metals Exporters’ Association Bolu and Düzce Yarn and Weaving Factories Sectoral Export Installed power of 3,050 MVA (Mega-Volt-Ampere) DİNKAL Some 64 years later, today, focusing primarily on the and a Peak Power of 1,825 MW Among the most preferred companies in the chemicals, energy and real estate industries Akkök DOWAKSA Prudent care in planning and project development in insurance sector Holding includes over 5,000 employees and 18 DowAksa is an international 50:50 joint venture line with the latest technological innovations Potential to offer excellent service in all insurance industrial and commercial companies between The Dow Chemical Company and Aksa Expeditious and modern business solutions categories The Holding’s total turnover amounted to TL 8.7 Akrilik Kimya Sanayii A.Ş. Offering tailored and innovative solutions to each billion in 2016 A wide range of products and technical service SEPAŞ ENERJİ customer solutions offered to the composite industry, the raw Retail Electricity Sales Company, the region’s final High quality service standards GROUP COMPANIES material of which is carbon fiber supplier in Bolu, Düzce, Sakarya and Kocaeli CHEMICALS Advanced technology developed fully by Turkish 1.6 million customer portfolio in Turkey REAL ESTATE AKSA AKRİLİK engineers Investments in technology to maximize customer AKİŞ GYO Aksa was founded in 1968 as part of Akkök Holding Strong production network and advanced production experience AKİŞ GYO’s success in the real estate industry is 100% Turkish owned, Aksa has a production infrastructure Efforts to maintain market leadership in the a result of Akkök Holding’s expertise in shopping capacity of 315.000 tons/year ENERGY designated supply zone center investment Established on an area of 502.000 square meters AKENERJİ The power and reliability brought about by national Investments aligned with international standards Turkey’s only local acrylic fiber producer Union of forces between Akkök Holding and the and international cooperation Pioneer of high quality and credibility in the real estate industry Aksa is also the world’s biggest producer with a share Czech energy company CEZ Group Diversified project portfolio of 17% in the international market Akenerji has become the representative of foresight SERVICES AKMERKEZ LOKANTACILIK Rich portfolio offering a wide array of real estate and stability in the energy industry investment options such as shopping centers and AK-KİM An installed capacity of 1,211 MW, 307 MW of which With its chic interior design, tranquil ambiance, Total production capacity of 800,000 tons meticulous service and savory cuisine where residential complexes, housing, building tracts and is renewable factory premises Production allied with the subsidiaries on 4 different 8 TWh sales volume in Energy Trade elegance meets comfort locations Paper Moon has become an Istanbul classic among Strategies targeted to vary the project portfolio Export spread across five continents and more than EGEMER the most select and prestigious names for fine dining Matching world standards in food and service quality AKMERKEZ GYO 65 countries Akenerji’s largest investment 850 employees in total An interior design that reflects luxury and simplicity An innovative perspective, a space where aesthetics Erzin Natural Gas Combined Cycle Plant with a 904 meet comfort MW installed power and 7.4 Twh annual production GİZEM FRİT AKASYA ÇOCUK DÜNYASI Akmerkez is beyond a shopping mall; it is rather a capacity living space Established in 1979, Gizem Frit commenced the first Capacity to meet 3% of Turkey’s electric energy Akdünya is the franchise licensee in Turkey for frit production KidZania, which currently operates in 19 countries Authentic design artistic, social and cultural activities, needs which breathe life into urban living The firm conducted pigment production in 1985, Became operational in 2014 Q3 and 24 cities Electrostatic Powder Production in 1990, and ceramic More than 100 role-play opportunities in more than Unlimited comfort designed to meet all needs of 65 activity areas for children according to their skills modern life; offers unlimited comfort frit production in 2008, and accomplished the first AKCEZ enamel frit export in 1995 and interests AKCEZ is a joint venture company established by SAF GYO The Company joined Akkök Holding in 2015 Akkök Holding, one of the leading industrial groups Located on 8,000 square meter tract Production capacity of 120,000 Tons/Year Well-respected and credible name in the industry 2 2 of Turkey, and CEZ Group, one of the leading energy Develops projects that focus on high quality lifestyle Indoor factory area of 30,000 m on a 60,000 m site companies of Europe AK-PA The world’s 2nd largest Enamel Frit producer, with a Export to more than 70 countries over five continents Strong position in the electric distribution and retail AK TURİZM market share of 11% sales industries (acrylic fiber, carbon fiber, inorganic and organic Enamel, ceramic, pigment and non-stick coating chemical substances and frit) Carrying out tourism investments on Kaşık Island, Highly skilled and technically equipped labor force, which is close to the city center and yet presents recognized across the international market renewed IT infrastructure, modern management Brand strength in the market with the fiber and More than 1,000 varieties of products thread group (polyester, polyamide, viscose, cotton) an opportunity to escape from the hubbub, noise practices pollution and heavy traffic Export to 55 countries on five continents Quality and productivity centered service approach Maintains its leadership position among textile exporters in the Turkish textiles industry Investment plans are shaped considering the in the ever-changing energy market requirements of city life as well as environment and social integrity of the island 4 Akkök Holding A.Ş. Report 2016 5 About Us Since its opening, Akmerkez has been investing in the future event of breakdowns. SEDAŞ conducts power distribution and has been the leader in creating new values. Akmerkez services through 33 distribution centers and 21 Customer has been a hotspot for intimate experiences, and the most Service Centers. popular meeting point in the city, with distinguished brands A BEACON OF ESTABLISHED and stores, shopping, entertainment facilities and food court, For a sustainable future The understanding of “Sustainable since 1993. Development” is a key component in creating Akkök KNOWHOW, FINANCIAL Holding’s future perspectives and strategies. Akkök Holding STRENGTH AND RELIABILITY... Another company belonging to Akkök Holding, whose prepared its first Sustainability Report in 2012, with detailed success in the real estate industry has been inscribed with information on the performances and practices regarding the the Akmerkez Shopping Mall investment, is SAF GYO, which environment and society, as well as ethics and the economy. Founded in 1952 by the late Raif Dinçkök, and with deep Turkey’s pioneer chemicals company Ak-Kim was established has reinforced the holding’s reputation in the real estate The report applied international reporting standards in know-how spanning 65 years, Akkök Holding ranks among in Yalova in 1977, and over time it expanded its production industry with activities that add value to society as a whole. accordance with GRI