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5 OYAK s Highlights (1) 2003 (2) (TL trillion) (TL trillion) (USD million) (USD million) (ACTUARIAL) NET PROFIT % % % % ANNUAL RATE OF RETURN TO MEMBERS CPI (CONSUMER PRICE INDEX) ANNUAL RATE OF RETURN TO MEMBERS/CPI (TL trillion) (TL trillion) (USD million) (USD million) EQUITY (TOTAL MEMBERS RESERVES) 3, , , ,629.7 TOTAL FUNDS UNDER MANAGEMENT 1, , , ,050.3 OYAK Group Combined Results (3) (TL trillion) (TL trillion) (USD million) (USD million) PRE-TAX PROFIT 1, TOTAL GROSS SALES (4) 11, , , ,298.6 TOTAL TRANSACTION VOLUME (5) 50, , , ,350.1 TOTAL SHAREHOLDERS EQUITY 5, , , ,610.0 TOTAL TAXES PAID TOTAL ASSETS 14, , , ,824.4 TOTAL EXPORTS 2, ,333.8 NUMBER OF EMPLOYEES 18,297 16,733 1) Average USD/TL rate 1,422,885; year end USD/TL rate 1,342,100 (for the year ended 31 December 2004) 2) Average USD/TL rate 1,495,297; year end USD/TL rate 1,395,835 (for the year ended 31 December 2003) 3) Excluding OYAK. Consolidated (IFRS) statements also available. 4) The total of gross sales revenues for production and sales companies. 5) Total transaction volume of OYAK Bank, OYAK Anker Bank, OYAK Yat r m and Halk Leasing. Contents 1 OYAK s Highlights : OYAK s 43rd year of operation 4 Chairman's Message 7 Board of Directors and Board of Auditors 8 A message from the CEO 11 Executive Management 12 Developments in member services 20 Developments in OYAK Group companies 31 Auditors Report and Financial Statements 37 OYAK Group Companies Annual Report 2004 [01]

6 2004: OYAK s 43rd year of operation January 2004 January For the first time in its history, OYAK undertakes and completes a syndicated loan project to secure financing for its investments by tapping international markets. Under a credit agreement signed with nine banks, OYAK receives a syndicated loan in the amount of USD 115 million on January 29th. March OYAK Beton commences operations and becomes the newest member of the OYAK Industrials Group. The company's shareholders consisted of Adana Çimento, Bolu Çimento, and Ünye Çimento and OYAK. April OYAK's 44th Annual General Assembly Meeting is held on April 17th, One of OYAK's long-term investment strategies is to play an active role in the energy sector. In line with that objective, OYAK acquires STEAG's 24% stake in skenderun Elektrik Üretim ve Ticaret A.fi. ( SKEN), an electricity company with an average production capacity of 9 billion Kwh a year. Azer-OMSAN Nakliyat MMC, an OMSAN subsidiary transport and shipping company is set up in Azerbaijan. July The final report of the feasibility study conducted by US-based Fannie Mae to develop a long-term mortgage-financing system for OYAK members is released. This report is used as a reference by the Capital Markets Board in developing a draft of legislation to govern the mortgage lending system in Turkey. Annual Report 2004 [02]

7 August The headquarters of OYAK nflaat, a Group construction subsidiary, are relocated to stanbul as part of the company's restructuring. OYAK Bank's stake in OYAK Anker Bank is acquired by OYAK. OMSAN's subsidiary Omfesa Logistics GmbH is set up in Germany. OYAK begins the process of selling off its 10.85% stake in Goodyear. October OYAK taps international markets for its second credit syndication, receiving a USD 125 million loan on October 27th. The acquisition of RWE Power AG's 25% stake in skenderun Enerji Üretim ve Ticaret A.fi. ( SKEN) is completed, giving OYAK a 49% control of the company. As a result of changes made in the legal framework governing privately owned security firms, such companies are required to divest themselves of all activities not directly related to security. Because of this, OYAK Güvenlik turns its hygiene services over to OYAK Pazarlama, the new name given to OYPA after that company was restructured in November OYAK Telekomünikasyon Hizmetleri A.fi., a telecommunication services provider, is set up as a subsidiary of OYAK Pazarlama for the OYAK NET project to provide value-added network services to OYAK subsidiaries and other corporate customers. A total of 1,152 units are allocated for OYAK members in Ankara/Eryaman Atakent Phase VI Stage III, a project being undertaken jointly by OYAK and TOK, the Housing Development Administration. December OYAK Turizm is wound up as a company with all ticket sales and agency activities being turned over to OYAK Pazarlama. HEKTAfi receives its license to make veterinary pharmaceuticals and immediately commences production of them. December 2004 Annual Report 2004 [03]

8 Chairman's Message I submit our report of our 43rd year of operation together with our financial statements for the year for your consideration and assessment. Actuarial balance Our fundamental duties at OYAK are to be watchful of our members' futures, ensure the survival and value of our assets, and, most important of all, maintain our actuarial balance. I am both pleased and proud to say that in 2004 we once again successfully fulfilled these important duties entrusted to us by our members. OYAK's equity, which is to say the total assets of all our members, reached TL 3.3 trillion in value in The excellent results achieved in business and investment activities enabled us to increase our members' assets by much more than the posted rate of inflation last year. What is OYAK? As has become customary, I want to begin this report by briefly summarizing who we are and what we do for those who are newcomers at OYAK. OYAK is an assistance and pension fund that is governed by its own statute. The Fund's assets consist of the dues that its members pay, members' contributions to the voluntary Pension System, and the returns generated on both. OYAK makes no use whatsoever of public funds and enjoys no special privileges. Its basic duty is to ensure the security of its members' future. In carrying out this principal duty, OYAK also provides its members with the forms of assistance that they require at different stages of their lives. In that capacity, OYAK extends loans (comparable to personal loans) to its members and also strives to make its members home-owners. Annual Report 2004 [04]

9 The importance of individual equality at OYAK All activities carried out at OYAK are shaped by the principle of equality of treatment and an equitable distribution of resources to members. Our basic objective is to ensure that our services are made available to all our members in a timely manner and without interruption and that our resources are distributed equitably among them. Equality among members is a fundamental principle at OYAK. It is a basic rule that each member must have access to the Fund's resources whenever he wants to do so and only to the degree to which he is entitled. High-quality, modern service OYAK is continuously in touch with its members. Fund-member communication takes place through a variety of channels and the traffic is measured in terms of hundreds of thousands of contacts. Each and every telephone call, fax, or received from our members is of equal importance and value and is treated in the same meticulous way. No matter what it does for its members, OYAK always strives to provide its services in a high-quality, modern format. The Member Services Department and indeed every part of our organization that serves the members makes every effort to achieve and increase unconditional member satisfaction and to ensure that our services reach our members in an uninterrupted way. OYAK also employs technology and innovations in order to provide its members with better and faster service. OYAK is acknowledged as the author of some of the most successful technological applications in our country. More than 40 subsidiaries More than 40 companies make up the OYAK Group. Active in a wide range of businesses from finance to cement and from energy to automotives, our subsidiaries are respected members of their sectors and some of them are global trademarks. Last year our subsidiaries continued to create increasingly more added value not just for our members but for the entire Turkish economy as well and all had a productive and profitable year. OYAK subsidiaries in 2004 created indirect economic benefit for more than 100,000 people were responsible for an important share of our country's foreign trade, with exports worth USD 2.2 billion paid a total of TL 442 trillion in taxes booked total sales amounting to TL 11.3 quadrillion. Annual Report 2004 [05]

10 Chairman's Message Looking at these overall numbers, one important fact becomes very apparent: OYAK represents a tremendous economic force in the Turkish economy and it stands in the front ranks of our Country's leading commercial and industrial conglomerates. This superior position is what supplies the energy that enables OYAK to fulfill its basic duty, which is to protect and grow its members assets. It also makes it possible for OYAK to create more and more added value for Turkey. New prospects await us Exciting new prospects lie before us. Turkey's efforts today are focused on joining the league of developed economies. Our national economy is going through its disinflationary process, the outcome of which will mean that working people, entrepreneurs, and retirees-in short, everyone-has to learn how to live and work in an economic climate in which low rates of inflation prevail. As consumption models keep changing, productivity and effectiveness become increasingly more imperative on the production front. At the same time, Turkey's EU accession process has reached a historically important turning point. Fullmembership negotiations, which are scheduled to begin in the last quarter of 2005, will advance our country to the next stage of its European Union journey. OYAK will continue to put its assets to work, transforming the business opportunities created by new prospects into added value and thereby growing even more. What gives OYAK the strength to make this journey is not just its material assets however: the most important guarantee of our futures is the whole OYAK family believing in our shared values and linked firmly together around our universal mission. OYAK will continue to belong to everyone through products and services that are offered to millions of people. OYAK is an inseparable part of and a source of pride for the Turkish nation. In closing, I extend my gratitude to all those who believe in us, trust us, and prefer to do business with us. Y ld r m Türker, (Ret.) Lieutenant General Chairman of the Board of Directors Annual Report 2004 [06]

11 Board of Directors 1 1 Y ld r m TÜRKER (Ret.) Lieutenant General, Chairman 2 Mustafa BIYIK Major General Gendarmerie, Board Member 3 Kamil BAfiO LU Brigadier General, Board Member (appointed on 25 October 2004) 4 Mehmet Ali ÇINAR Rear Admiral, Board Member 5 Ahmet Taner CANDEM R (Ret.) Brigadier General, Board Member 6 Lütfi Fikret TUNCEL Board Member (Retired Governor) 7 Prof. Necdet SER N Board Member (Retired Rector) 8 Coflkun ULUSOY, Ph.D. CEO and Board Member Board of Auditors 1 R dvan ULUGÜLER Brigadier General, Member (appointed on 18 October 2004) Haydar GEZM fi Member, Member of the Higher Supervisory Board of the Prime Ministry 3 Haluk ALTAY Member (Retired banker) Mehmet TAfi Major General, Board Member (until 1 October 2004) Ziya GÜLER Major General Member (until 1 October 2004) Annual Report 2004 [07]

12 A message from the CEO We are proud to report that last year we not only built on our successes but also broke new records in many of our financial outcomes. OYAK posted the highest consolidated net profit and enjoyed the highest profitability in return on assets and on equity of any leading Turkish corporate group on an International Financial Reporting Standards (IFRS) basis. In terms of its actuarial balance sheet, our Fund achieved the highest rate of real return in its history. The actuarial profit added to our members' savings in 2004 amounted to TL 925 trillion. This in turn implies that the rate of return on members' assets, the most crucial indicator of our success for our members, was 40.3% in This 40.3% rate of return is more than four times the last year's consumer price index increase of 9.3%. These highly pleasing results, achieved in an economic environment where inflation has shrunk to approximately 9%, are the outcome of OYAK's commitment to its core strategies and principles. OYAK is a major corporate group OYAK has stakes in more than 40 companies active in a wide range of businesses ranging from banking to energy, and from automotives to food processing. Therefore, OYAK is not only Turkey's biggest private pension fund but is also one of its biggest corporate groups. The leader in profits and profitability OYAK's consolidated financial statements are prepared and audited according to International Financial Reporting Standards. According to those statements, OYAK ended 2004 very successfully, ranking first among our Country's leading corporate groups in terms of both profits and profitability. Not only did the Fund show a very high profit, it also lead in terms of profitability. For the last four years, time and again OYAK has succeeded in outstripping Turkey's leading corporate groups on the basis of consolidated net profit/total assets and consolidated net profit/total shareholders' equity measures. Annual Report 2004 [08]

13 Profitability and productivity are two primary goals that are vital to OYAK. Seeking to achieve real, continuous growth in its members' assets and to pay the highest possible rate of return, profitability is a key indicator of our Fund's success. Accurate investment policies It is not only vital that our subsidiaries are amongst the leaders in their respective fields or achieve high sales volumes. Those factors are important only in view of their profitability. An approach that is mindful first and foremost of profitability shapes OYAK's investment decisions. Throughout its corporate history, OYAK has targeted areas it considers profitable and has quickly moved out of businesses with falling profitability. This strategy is a key to OYAK's success. SKEN, a recent investment for us, vindicates our investment policies. In just its first year, SKEN yielded a return of nearly a third of the entire investment and this performance made a significant contribution to the overall increase in our Fund's assets. The point we have reached today Looking at the point we have reached today from two different angles will enable us to see the results of our long-term efforts more clearly. The first of these is the axis of OYAK's own development through the years. Our equity, which stood at TL 633 trillion in 2000, reached TL 3.3 quadrillion as of year-end The TL 925 trillion in returns that we generated in 2004 alone are about 50% more in nominal terms than the value of our total assets were in The other axis is our position in the market vis-à-vis our benchmarking group through the years. On the basis of its IFRS audited financial statements over the years since 2000, OYAK has greatly strengthened its market position and, as noted above, has become the corporate group with the largest profit and the highest profitability in Turkey. Situated at the point where these two axes intersect, OYAK has substantially increased the value of its members' assets in real terms; greatly expanded the scope of the services and forms of assistance it provides its members. The amounts paid out on retirement alone have actually trebled since The point we have reached today is one that fully matches our mission. It is where we aimed to be, and it is the springboard for our future growth and development. Just as it is in Turkey today, OYAK has also become a recognized and respected figure in the international markets. Our Fund is prepared to use the rather substantial financial muscle at its disposal to be active abroad as well as at home. OYAK in the public eye In the past years, questions about OYAK's structure and about its relationship with the Turkish Armed Forces have been raised on both national and international platforms. Annual Report 2004 [09]

14 A message from the CEO As everyone knows OYAK is an assistance and pension fund for Turkish military personnel. The important point here is that there is no organic relationship between ourselves and the military, our corporate identities are statutorily distinct. The only relationship between OYAK and military is the fact that OYAK happens to be the pension fund in which the military personnel invest their savings. Those who forget that the military does not - and cannot and should not - engage in commerce are also of a mind to claim that OYAK is a military commercial concern and is active in military and defense-related industries. This assumption is false. Not a single one of the companies in which we have a direct or indirect stake is involved in any line of business connected to defense or to the armed forces. This is very important to us and is enshrined in our corporate rules of ethics. In short, OYAK is a powerful corporate group that operates under private law and free-market conditions and is run by civilians who take a thoroughly private-sector approach to management. Having put another successful year behind us, I am pleased to see that our assurances on this issue are understood and beyond Shifting economic conditions necessitate continuously adapting the way we do business. Profitability, productivity, and effectiveness have become the most important criteria for success. In the years ahead we can expect to seek competition get tougher in all aspects of our business. Only those who are good at what they do and who offer high-quality products and services will be the winners and, more important than that, the ones who endure. With the strength that it derives from our 43 years of corporate history, OYAK is determined to stay out in front in this race. To achieve that, we will continue to make the best possible use of the opportunities for growth and investment that the economy offers and to invest in new areas of business. The financial resources at our disposal provide the energy we need to grow. The ongoing support and confidence of our more than 220,000 members are the most important elements giving us the strength to continue our journey into the future. So long as we abide by our convictions, maintain our unity, and cherish our values, OYAK will continue to be highly profitable and will put that profitability to work for the benefit of its membership. Thank you for your continued support and interest in OYAK. Coflkun Ulusoy, Ph.D. Chief Executive Officer Annual Report 2004 [10]

15 Executive Management Coflkun ULUSOY, Ph.D. Chief Executive Officer Hülya ATAHAN Executive Vice President Financial and Administrative Affairs Ayd n MÜDERR SO LU, Ph.D. Executive Vice President New Business Development Ergün OKUR Executive Vice President Member Services Celalettin ÇA LAR Head of Cement and Automotive Groups Caner ÖNER, Ph.D. Executive Vice President Investments and Information Systems Annual Report 2004 [11]

16 Developments in member services In 2004, OYAK once again paid its members a return well above inflation. The 40.3% rate of return secured last year was more than four times the rise in the consumer price index in The member is everything At year-end 2004, OYAK's membership numbered 222,028, of whom 87% are on active duty and 13% are in the Pension System. The Pension System is a system that allows those who have become entitled to receive a retirement benefit and whose permanent OYAK membership would normally be terminated, to continue being a member and to take advantage of OYAK's services. If a member in the Pension System dies, his or her spouse can join the system if they so wish. 50% of the income secured as a result of applying the return determined at each year's General Assembly Meeting to the savings of members is paid quarterly to the members as a pension while the remaining 50% is added to their reserves to continue building up their reserves. OYAK is a pension fund that takes a modern approach to business and regards its members as the focal point of all its activities. In everything it does, OYAK is always mindful of the interests and happiness of its members. OYAK strives continuously to provide its members with the most suitable products and services. All of the efforts that the Fund has been making in the last three years converge around the common goal of facilitating OYAK-member communication and increasing member satisfaction. In 2004 OYAK secured a return for its members far in excess of inflation: the posted 40.3% rate of return is 4.3 times the rate of increase in the CPI announced by the State Institute of Statistics for Equity (Members Reserves) (TL Trillion) (USD Million) 3, , , , , ,165.9 Membership 216, , , Annual Report 2004 [12]

17 When the changes that have been taking place in our country over the last three years are taken into account, the value of this excellent performance on OYAK's part becomes even more apparent. Compulsory benefits reach TL trillion in value The benefits that OYAK is statutorily required to pay its members continued to increase last year and reached TL trillion in value, the biggest share of which consisted of lump-sum payments made to retirees. In 2004 the Fund paid a total of TL trillion to 5,617 members as their retirement benefits. The compulsory benefits that OYAK pays its members consist of Retirement Benefits, Pension System Payments, Payments for Withdrawals from the Pension System, Refunds on Dues, Death Benefits, and Disability Benefits. OYAK members continued to make heavy use of the Fund's social services. In addition to compulsory benefits, OYAK also provides its members with a number of non-compulsory services as well. There are basically two types of such services that OYAK provides its members: Financing options similar to personal loans that are intended to meet members' current needs Long-term housing loans that is provided in line with the Fund's mission of making each of its members a home-owner. Total non-compulsory benefit payments made to members in 2004 reached TL 89.4 trillion in value. Housing Loans OYAK's housing related loans are provided to members under three headings: Personal Housing Loans, Building Cooperative Loans, Mass Housing Production Loans. Breakdown of Compulsory Benefits Paid 12.9% Pension System Payments 10.2% 3.1% Payments for Withdrawals from the Pension System 5.0% 0.3% Refunds on Dues 0.3% 1.2% Disability Benefits 0.9% 2.1% 80.4% Death Benefits Retirement Benefits 1.6% 82.0% Annual Report 2004 [13]

18 Developments in member services In 2004 OYAK extended a total of 1,211 new home loans and the number of members that benefited from personal loan services reached 31,167. OYAK-supplied loans are available on terms of three to ten years and with fixed-installment options. In 2004 OYAK extended a total of 1,211 new home loans. In terms of numbers this represents a year-on increase of 88.9%. The volume of lending on the other hand increased 150.9% year-on and reached TL 28.1 trillion. Providing its members with the forms of support that they require at different stages of their lives, OYAK also joins its members in their efforts to become home-owners as well. All of the 1,660 units in the first and second phases of the Eryaman/Atakent Project, the allocation of which began in 2003, have been turned over to their owners. In addition, all of the 1,152 units in the third phase of the project, allocation of which began in 2004, have been allocated totally to OYAK members. The number of OYAK members taking advantage of the entire Eryaman/Atakent Project has reached 2,812. Personal Loan Services OYAK provides personal loans from its own resources as well as from those of Vak fbank. Under the heading of OYAK's personal loan services, a total of TL 46.0 trillion was lent out to 31,617 members in These loans made available from OYAK's resources are fixed-installment loans with terms of six, nine, or twelve months, in amounts up to twice the one-month salary on which a permanent member's contributions are based. Breakdown of Non-Compulsory Services 17.8% Housing Loans 33.7% 5.3% 11.2% Commissary Services Lump-sum Loans of up to 80% of Members Reserves 4.8% 10.1% 65.7% Other Loans 51.4% Annual Report 2004 [14]

19 When communicating with its members, OYAK makes active use of the internet as an alternative communication channel. The Fund has made it possible for OYAK members to apply for loans online at its internet web site. This option is important not only because it minimizes the operational workload but also because it enhances the effectiveness and quality of service. In 2004, 16,925 OYAK members applied online for loans. In 2003 the percentage of online loan applications to total applications was 42.9%; in 2004, this ratio increased to 53.5%. Paralleling the increasing and wider use of the internet among our membership, we expect that this percentage will become even higher over the next few years. Members also continued to take advantage of personal loans and fixedinstallment consumer loans under an agreement with Vak fbank as an alternative to OYAK-sourced loans. The loans made available from Vak fbank's resources are fixed-installment consumer-finance loans with terms of six, nine, twelve, or eighteen months that are extended in amounts up to three times the onemonth salary on which a permanent member's dues are based. A total of TL trillion was extended during 2004 as fixed-installment consumer-finance credit. Donation Based Retirement Income System: An investment option with high real returns The Donation Based Retirement Income System, which was introduced in 1989, is an investment option that makes it possible for members to earn additional income that is payable while on active duty and/or after retirement. The pool of contributions provided by members taking part in the system are invested by OYAK in government bonds, T-bills, time deposits, foreign currency deposits, so as to generate the maximum returns possible with the least amount of risk. The income generated by the system is partially paid out at quarterly intervals with the rest being added to his reserve. In 2004 the system generated a return of 30.0%. This was 3.2 times the posted rate of CPI inflation and higher than that of any other alternative investment vehicle available in Turkey last year. System participants received a total of TL 44.0 trillion in quarterly payments while TL 28.0 trillion was added to their reserves. As of 31 December 2004, the pool of funds available for investment in the Donation Based Retirement Income System was TL trillion Housing Savings Fund: An investment option with high, real returns that is focused on home-ownership The Housing Savings Fund was set up to make it possible for OYAK members to save up the down-payment they would need to buy a home of their own. The Fund's sources consist of voluntary additional 10% contributions that OYAK members pay. These savings are invested by OYAK in order to secure the maximum possible return on them. Annual Report 2004 [15]

20 Developments in member services In 2004 the Fund provided its participants a return of 28.9% on their savings. This was 3.1 times the CPI increase for the year. OYAK's other mission-making as many of its members as possible the owners of their own homes-is second in importance and priority only to that of guaranteeing their futures in their retirement years. The increase registered in the number of members participating voluntarily in the Housing Savings Fund is a concrete example of the interest and confidence that OYAK's membership has in the efforts that the Fund has been making on the matter of home-ownership. In 2004, the number of members withdrawing their savings from the Fund for use was 18,000 while the number of them participating in the Fund topped 103,000. As of 31 December 2004, the pool of Housing Savings Fund savings under management was TL trillion. Developments in OYAK-member communications All member-related services are under the responsibility of the Ankara-based Member Services Department. In addition to maintaining day-to-day communication between OYAK and its membership and conducting all activities involved in member services, the Department's duties also include developing and improving relations with members as well as identifying members' complaints and wishes and resolving problems as quickly as possible. OYAK pays attention to making intensive use of technology in the process of providing its members with high-quality products and services. The internet, call center, and other alternative delivery channels that the Fund has developed in recent years are popular and are being used by more and more members. Comparison of Returns on Donation Based Retirement Income System and CPI (%) 30.0 Comparison of Returns on Housing Savings Fund and CPI (%) times 3.1 times Return CPI Return CPI Annual Report 2004 [16]

21 Throughout 2004 OYAK maintained increasingly effective communication with its members. OYAK ranks among the organizations making the best and most effective use of alternative delivery channels in reaching out to and serve a large and geographically dispersed audience. Throughout 2004 the Member Services Department strove to provide OYAK members with the best service possible. In addition to being a unit responsible for the operational conduct of all services provided by OYAK to its membership, the Member Services Department is also the full-time point of contact between the Fund and members. The department can be accessed in a variety of ways such as: OYAK Call Center OYAK Website ALO-OYAK Interactive Voice Response System Mail, fax, Suggestion boxes Incoming member queries are registered, statistics are maintained on them, assessments are made, and senior management is advised as to what action needs to be taken. Everything is done to increase the effectiveness of the interaction between OYAK and its members. Members' questions, complaints, requests, and queries were received at OYAK through many different channels such as telephone, letters, SMS, and as well as in face-to-face contacts at OYAK offices. Every effort was made to respond immediately and resolve whatever issue there might be. Members' requests and suggestions that could not immediately be dealt with because of their nature were forwarded to the appropriate unit where they were considered and resolved within the framework of OYAK's governing statute, general assembly meeting resolutions, and the requirements of prevailing regulations. As in previous years, presentations, conferences, and meetings were conducted in 2004 to better acquaint members with OYAK's activities and with the services that they can have the benefit of in the pensioning process. Besides these presentations and meetings about OYAK's annual activities, investments, projects, and member benefits and services, a series of conferences that began in December 2004 and will end in September 2005 is being held according to a planned schedule. These conferences will make it possible to establish direct contact with about 8,000 of our members. Eleven such conferences in which OYAK's chairman and chief executive officer are personally in attendance are planned and are being held at military installations where members are concentrated. Another 41 conferences are also being held in which the assistant general manager responsible for OYAK member services is involved. The Member Services Department identifies the main issues on which members are having problems and then develops and carries out action plans aimed at deciding upon and implementing the best measures to resolve them and also to increase and diversify member services. Annual Report 2004 [17]