CALIK COTTON CORPORATE PROFILE 2014 CALIK COTTON PROFILE 2014 CORPORATE COTTON ÇALIK COTTON HEAD OFFICE Keresteciler Sitesi, Fatih Cad. Ladin Sok. No: 17 34169 Merter/Istanbul Tel: +90 212 459 26 26 Fax: +90 212 459 26 77 100% SUCCESS Mail: [email protected] www.calikcotton.com 12 ABOUT US 12 ÇALIK HOLDING IN BRIEF 16 OUR VISION, MISSION AND VALUES 18 FINANCIAL AND OPERATIONAL INDICATORS 20 ÇALIK COTTON IN BRIEF 22 THE YEAR 2014 AT A GLANCE 24 MANAGEMENT 24 MESSAGE FROM THE CHAIRMAN 26 THE CEO'S ASSESSMENT OF 2014 28 SENIOR MANAGEMENT 30 OPERATIONS 30 THE COTTON SECTOR IN THE WORLD AND TURKEY IN 2014 34 OPERATIONS IN 2014 34 MARKETING AND SALES 36 PRODUCT DEVELOPMENT 40 HUMAN RESOURCES 100% Success We qualified in just three months for the AQSIQ certificate, granted to only one or two out of 10 applications received each year. In 2013, we set the vision of starting to sell in China, and we achieved it. In 2014, we became a member of the Better Cotton Practices Association (IPUD), the Turkish branch of Better Cotton. In 2014, we became the first company to export Turkmen cotton to Egypt. We transported cotton from Turkmenistan to the Lloyd market in UK, under an insurance policy that also covered Iran. Capitalizing on the support of international powerhouse Çalık Holding, we reinforce our successful and stable position in the cotton trade, day by day. We believe that accessibility is of primary importance, and strive to stand by our clients whenever they need us. As such, we serve our clients with local employees in every country where we operate. TRUST As a highly-skilled and specialized, yet young and vibrant team focused on success, we have a dynamic structure. We consistently take swift action through employees who inspire trust, respect their work, and share a team spirit. We go beyond borders with our rhythm and pace, and complete our overseas operations successfully. EXCITEMENT Çalık Cotton, with cotton trade as its core business, runs its operations with a view to strengthening Turkey’s position in the world cotton market. As such, Çalık Cotton has become the first company to receive the AQSIQ certificate, required to export cotton to China, and has obtained the increasingly esteemed Organic Cotton Certificates issued by the Better Cotton Initiative (BCI) and the Control Union (CU). QUALITY We have a superior performance, as one of the companies least affected by exchange rate fluctuations. In 2014, we expanded our market share by a significant margin. By focusing solely on cotton trade, we continue to work towards our goal of finding new suppliers, countries and markets. PERFORMANCE ABOUT US MANAGEMENT OPERATIONS 10 CORPORATE PROFILE 2014 ÇALIK COTTON FOR DETAILS, CALIKCOTTON.COM ÇALIK COTTON CORPORATE PROFILE 2014 11 ABOUT US MANAGEMENT OPERATIONS ÇALIK HOLDING IN BRIEF A pioneering corporation that continues its ascent with a strong performance in a number of sectors… AMERICA TEXTILES (GAP MARKETING, ÇALIK COTTON) ENERGY FINANCE Çalık Energy Aktif Bank YEDAŞ BKT (Banka Kombetare Tregtare) ARAS EDAŞ Keds MINING TEXTILES Lidya Mining Gap Güneydoğu Textile Polimetal Mining Gap Marketing Çalık Cotton CONSTRUCTION AND REAL ESTATE TELECOMS Gap Construction Albtelecom Eagle Mobile Çalık Real Estate 12 CORPORATE PROFILE 2014 ÇALIK COTTON FOR DETAILS, CALIKCOTTON.COM RUSSIA CONSTRUCTION (GAP CONSTRUCTION) KAZAKHSTAN FINANCE CONSTRUCTION (AKTIF INVESTMENT BANK) (GAP CONSTRUCTION) FINANCE (İJARA LEASING) TURKMENISTAN 5 UZBEKISTAN ENERGY (ÇALIK ENERGY-EPC) ENERGY CONSTRUCTION (ÇALIK ENERGY-EPC) (GAP CONSTRUCTION) CONSTRUCTION TEXTILES (GAP MARKETING, Continents (GAP İNŞAAT) ÇALIK COTTON) KOSOVO ENERGY (ÇALIK ENERGY-EPC) FINANCE (BKT) ITALY GEORGIA TEXTILES ENERGY (ÇALIK ENERGY- (GAP GÜNEYDOĞU TEXTILE) EPC) ALBANIA ENERGY (ÇALIK ENERGY-EPC) IRAQ TELECOM (ALBTELECOM) ENERGY (ÇALIK ENERGY-EPC) FINANCE (BKT) CONSTRUCTION (GAP CONSTRUCTION) S.ARABIA LIBYA CONSTRUCTION ENERGY (GAP CONSTRUCTION) INDIA 6 (ÇALIK ENERGY-EPC) DUBAI TEXTILES CONSTRUCTION QATAR CONSTRUCTION (GAP CONSTRUCTION) (ÇALIK COTTON) (GAP CONSTRUCTION) CONSTRUCTION (GAP TEXTILES CONSTRUCTION) (GAP MARKETING) BANGLADESH Sectors TEXTILES (GAP GÜNEYDOĞU TEXTILE) USD 7.5 Billion A local force which Total Assets extends across 5 continents: 24,000 Çalık Holding Employees ÇALIK COTTON CORPORATE PROFILE 2014 13 ABOUT US MANAGEMENT OPERATIONS ÇALIK HOLDING IN BRIEF Established in 1981 by Ahmet Displaying a consistent growth Çalık of the Çalık family, which performance in Turkey and other has held an active track record in countries since its establishment, One of the commerce since the 1930s, Çalık the Group acquired the Albanian largest industrial Holding currently has operations telecom operator and Internet corporations in fields such as energy, mining, provider Albtelecom in 2007; construction and real estate, the Yeşilırmak Electricity in Turkey, Çalık finance, textiles and telecoms. Distribution Company (YEDAŞ) Holding provides providing electricity to five employment One of the largest industrial Turkish provinces, in 2010; the to around 24 corporations in Turkey, Çalık Kosovo Electricity Distribution Holding provides employment to Company in 2012; and ARAS thousand people 24 thousand people in around 17 EDAŞ, operating in seven in 17 countries. nations. As a pioneering Turkish provinces, in 2013. investor in Central Asia, the Balkans, the Middle East and Çalık Holding’s Energy Group, Africa, the Çalık Group has total which maintained its business annual consolidated assets of volume in 2013, due to its USD 7.5 billion. credibility in the world energy 14 CORPORATE PROFILE 2014 ÇALIK COTTON FOR DETAILS, CALIKCOTTON.COM sector and a work ethic that the first prize winners in the channels category of the sets it apart from competitors, “Best Commercial Renovation/ European Financial Management is among the most-preferred Redevelopment Turkey” & Marketing Association companies in the energy-rich category of the European (EFMA) awards. Çalık Holding’s regions of Central Asia, Middle Property Awards 2013, subsidiary BKT, which operates East and Africa. Çalık Energy among the most prestigious in Albania and Kosovo, won for continued the construction real estate awards in Europe. the third time the “Best Bank” of three power plants begun Çalık Real Estate is active in award bestowed by The Banker, in 2013 in the Turkmen cities land development and urban a highly-esteemed international of Ahal, Lebap and Mari. transformation. financial markets magazine. Additionally, the Group signed agreements for the construction Carrying out its operations In line with its strategy to focus of two new power plants in Ahal in line with proven growth on its core businesses, the Group and Derweze. Having become strategies, Çalık Holding’s divested itself of the Turkuvaz the biggest EPC contractor in subsidiary Lidya Mining Media Group. Georgia with the Gardabani increased its stake in Polimetal project in 2013, the Group Mining to 80% from 50% in Renowned for its authority, completed two more power 2013; Polimetal’s other parent strong reputation and robust plants with a total capacity of 2 company is Alacer Gold. In the financial structure due to its thousand MW in Iraq in the same same year, gold production at worldwide operations, Çalık year. In 2013, the Adacami HEPP the Çöpler Gold Mine - which Holding cooperates with the Project was also completed in belongs to Anagold, another globe’s prominent companies. the Turkish city of Rize. Lidya Mining subsidiary Çalık Holding stands out as a -increased by 43% over the prior strong leading player in its core GAP Construction has become year to exceed 270 thousand businesses for its deeply-rooted the EPC contractor of the ounces. institutional structure, rich “Turkmenbashi International corporate culture, highly skilled Seaport,” worth USD 1.5 billion, Conducting projects from human resources, pioneering and consisting of six ports and an innovative, sustainable enterprises, innovative approach one shipyard. The Seaport was perspective, Aktif Bank and sound strategies. The designed in 2013 as a logistics established Aktif Bank Sukuk Holding continues its operations hub on the route connecting Asset Lease Company in 2013 to in all business lines with the Asia to Europe. issue lease certificates. With the target of attaining sustainable “Active Point” project, Aktif Bank growth. The project “Tarlabaşı 360” shot ahead of numerous global by the Çalık Group subsidiary giants to win the first prize Çalık Real Estate, was among in the “Physical Distribution” ÇALIK COTTON CORPORATE PROFILE 2014 15 ABOUT US MANAGEMENT OPERATIONS OUR VISION To be the most valuable Turkish enterprise in three aspects: employees, management practices and business portfolio. Our Group derives its strength through its business perception shaped by courage, innovation and prudence. Drawing on this fact, the vision of Çalık Cotton is composed of three components. 1. To be the most preferred workplace, employing the best. 2. To be an exemplary Group with its management understanding and systems. 3. To own a superior and high return business portfolio. 16 CORPORATE PROFILE 2014 ÇALIK COTTON FOR DETAILS, CALIKCOTTON.COM OUR MISSION To enrich all stakeholders in Turkey and in other countries we do business in, through our innovative, courageous and prudent business understanding. OUR VALUES Çalık Group exists to enrich its stakeholders. The Group undertakes all its operations in line with this goal, with an innovative, courageous and prudent spirit. Çalık is a family, internalizing