New ideas, new opportunities annual report

Transcription

1 New ideas, new opportunities annual report

2 Contents BİLKENT HOLDİNG AT A GLANCE 02 Vision, Mission and Components of Success 03 Message from the Chairman 04 Board of Directors 05 Message from the CEO 06 Senior Management 08 Financial Indicators and Analysis 10 Opinion on Independent Auditor s Report 12 Consolidated Financial Statements 16 Bilkent Holding in Brief 18 Bilkent Holding Companies and Subsidiaries 19 Bilkent Holding in the World 20 Bilkent Holding in Turkey 22 Milestones BUSINESS AREAS 28 Construction and Supply Industry 38 Furniture and Retail 40 Printing and Paper 42 Real Estate Management 44 Services AFFILIATES 66 TAV Airports Holding 68 TAV Investment Holding 72 Istanbul Fast Ferries (İDO) SOCIAL RESPONSIBILITY SUSTAINABILITY AND CORPORATE GOVERNANCE 80 The Unique and Effective Management Structure of Bilkent Holding 81 Human Resources 82 Legal Notes 83 Occupational Safety, Environment and Quality Policy 83 Occupational Health and Safety Policy 83 Environmental Policy 83 Quality Policy 84 Risk Management 84 Internal Audit 85 Contact

3 Our Founder Prof. Dr. İhsan Doğramacı

4 Vision, Mission and Components of Success Vision To make Bilkent Holding and companies global brands by achieving the best in all business areas, To contribute to creating a sustainable world by treating the environment and people with respect, as a fundamental principle. Mission To make Bilkent University one of the world s leading educational institutions through transfer of resources that are generated in all business areas, in which the Holding operates with a contemporary, reliable, competitive and dynamic management approach. Components of Success Reliability Approach to innovation Competitiveness Operational excellence Effective resource management and correct planning Sense of corporate belonging Decentralized management structure Professional approach to management Modern human resources policy 2

5 Message from the Chairman İhsan Doğramacı founded Bilkent Holding and its companies to provide support to organizations that operate in the areas of education, healthcare, and the arts. Bilkent Holding enterprises strive to serve customers in the best possible way. A percentage of total revenue is used to support further growth of the companies while a larger portion of turnover is allocated to education, science and the arts every year. Employees of Bilkent Holding are pride of these characteristics of their company. Ali Doğramacı Chairman of the Board of Directors 3

6 Board of Directors Ali Doğramacı Chairman of the Board of Directors Serving as the Chairman of the Board of Directors of Bilkent Holding since 2010, Ali Doğramacı is also the Chairman of Bilkent University s Board of Trustees. Abdullah Atalar Vice Chairman of the Board of Directors and Executive Board Member, CEO Serving as an Executive Member on the Board of Directors of Bilkent Holding since 2005, Abdullah Atalar is also the President of Bilkent University. Osman Doğramacı Vice Chairman of the Board of Directors and Executive Board Member Serving as an Executive Member on the Board of Directors of Bilkent Holding since 2010, Osman Doğramacı joined the Holding s Senior Management team in He is also a member of İhsan Doğramacı Health Foundation. Şermin Savaşçı Board Member Serving as a Member on the Board of Directors of Bilkent Holding since 2005, Şermin Savaşçı is a member of İhsan Doğramacı Foundation and İhsan Doğramacı Health Foundation. At Bilkent Holding, we believe that bettereducated people and innovative enterprises, that create value and that share this value with others, can build a better tomorrow. Erdal Erel Board Member Serving as a Member on the Board of Directors of Bilkent Holding since 2012, Prof. Erdal Erel is also the Dean of the School of Business Administration at Bilkent University. Orhan Baysal Board Member Serving as a Member on the Board of Directors of Bilkent Holding since 2013, Orhan Baysal is also the Vice President of Bilkent University. As a result, we continue to work to achieve more and go further in all of our business areas and to invest in young people, who will move our country forward into the future with their new, powerful ideas, with the resources we create. 4

7 Message from the CEO Thanks to its solid financial structure and balanced growth strategy, Bilkent Holding s future outlook is bright. Although 2014 was not an easy year for our country s economy, those companies with prudent long term strategies and that focused on improving their core businesses posted strong results during this period. Bilkent Holding and its companies also reported many successes in While providing employment for nearly 20,000 people, our companies allocate a significant amount of resources to higher education in Turkey every year; spearhead technological innovations; and set a good example with their robust financial structures that require minimal foreign resources to conduct operations. In 2014, we increased our asset size by 14.5% while our gross profit for the period was up 7%. We also bolstered our growth strategy with new and ongoing investments totaling more than US$ 100 million. We continue with efforts to ensure that our companies, which operate in a wide range of industries including construction, retail, manufacturing, services, software, and printing, are managed in line with strong corporate governance principles. Although not legally required, Bilkent Holding s management structure is based on the principles of accountability and transparency. In addition, the Holding ensures that all companies under its roof undergo independent audits and publicly discloses its credit ratings, maintaining a unique market position in this regard and the following years will not be easy, especially due to expected developments in the world economy and their inevitable consequences for our country. We must be prepared to deal with these impacts with both a solid financial structure and a well-trained workforce. Thanks to its excellence in these and other key areas, Bilkent Holding s future outlook is bright. Abdullah Atalar CEO 5

8 Senior Management Abdullah Atalar (1) CEO Prof. Dr. Abdullah Atalar was appointed to his current position at Bilkent Holding in Since that time, he has served as Vice Chairman of the Board of Directors and Executive Board Member. Prof. Dr. Atalar also figures among Bilkent University s first lecturers. Between 1993 and 2010, he served as the Provost (Chief Academic Officer) of Bilkent University, and since 2010, he has held the position of President of the University. In addition to his duties at Bilkent University, Prof. Dr. Atalar is also the Chairman of all Bilkent Schools under the İhsan Doğramacı Foundation. Prof. Dr. Abdullah Atalar is the Chairman of the Board of Directors at Tepe Real Estate Investment Construction, Ankara Technology Development Zone, Optisis Communication and Information Technologies, Meteksan Defense and Meteksan Underwater Acoustic Technologies. He also represents Bilkent Holding as a Member of the Board of Directors at TAV Airports Holding. After graduating from Ankara High School of Science in 1970, Abdullah Atalar was admitted to Middle East Technical University with the highest entrance exam score. After obtaining a Bachelor s degree from METU in Electrical and Electronics Engineering, he went on to earn Master s and Doctorate degrees at Stanford University. In 1994, he won the TÜBİTAK Science Award. To date, his scientific papers have received more than 1,500 citations. Prof. Dr. Atalar holds 10 patents in the US, six in Europe, and five in Japan. Ali Haydar Kurtdarcan (2) Chairman of the Board of Directors at Tepe Construction, Meteksan Printing, Tepe Defense, Bilintur, Tepe Home, Tepe Betopan, Dilek Construction, Sports International, Tepe Service, Tepe Security, Tepe Prefabrik, Bilenerji, Bilsigorta, Alipsan, Turkofon, Bilintur Catering Center, Seçkin Food, Bitu, Bilintur Culture Tourism, Bilge Bilkent, Antepe Health Services, Bilan Bilkent, Bildes, Bilbak, and Bilen; Vice Chairman of the Board of Directors at Tepe Real Estate, Ankara Technology, Meteksan Defense, Optisis, Meteksan Underwater Acoustic Technologies; Board Member at TAV Airports Holding Representative of Tepe 6

9 Construction; Vice Chairman of the Board of Directors at TAV Istanbul Terminal Operations Management Representative of TAV Investment Holding; Chairman of the Board of Directors at TAV Ege Terminal Investment Construction and Operations Management Representative of TAV Airports Holding; Chairman of the Board of Directors at TAV Gazipaşa Alanya Airport Operations Representative of TAV Airports Holding; Chairman of the Board of Directors at TAV Private Security Services Representative of TAV Academy Training and Consulting Services; Chairman of the Board of Directors at TAV Esenboğa Investment Construction and Operations Management Representative of TAV Information Technology Services; Chairman of the Board of Directors at TAV Izmir Terminal Operations Management Representative of TAV Information Technology Services; Chairman of the Board of Directors at BTA Catering Services Representative of TAV Airports Holding; Chairman of the Board of Directors at BTA Bakery and Pastry Products Representative of TAV Information Technology Services; Chairman of the Board of Directors at BTA Sealines Representative of İDO Istanbul Fast Ferries; Chairman of the Board of Directors at TAV Investment Holding Representative of Tepe Construction; Chairman of the Board of Directors at TAV Tepe Akfen Investment Construction and Management Representative of TAV Investment Holding; Chairman of the Board of Directors at TAV Aviation Representative of TAV Information Technology Services; Chairman of the Board of Directors at TAV Park Car Park Investment and Operations Representative of TAV Information Technology Services; Board Member at İDO Istanbul Fast Ferries Representative of Bilkent Holding. Ali Haydar Kurtdarcan graduated from Middle East Technical University, Department of Civil Engineering in He joined Tepe Construction in 1987 as Deputy General Manager. To date, Mr. Kurtdarcan has served as Chairman, Board Member and Representative at several Bilkent Holding Companies and Affiliates. Önder Sezgi (3) Currently, he is the CFO of Bilkent Holding and continues to serve as Board Member at various Bilkent Holding companies. Önder Sezgi graduated from Ankara University, Department of Political Science in Before joining Bilkent Holding in 1998, he served as Financial Analyst for the Tax Inspection Board at the Ministry of Finance. Mr. Sezgi is a Certified Public Accountant and Independent Auditor. He has undertaken various tasks and responsibilities for the Tax Inspection Board, TUSİAD (Turkish Industry and Business Association), YASED (International Investors Association of Turkey), Certified Public Accountants Foundation, and TÜRMOB (Union of Chambers of Certified Public Accountants of Turkey). Orhan Koral (4) Vice Chairman of the Board of Directors of Bilintur, Sports International, Dilek Construction, Bilsigorta; Board Member at Tepe Home, Tepe Real Estate, Tepe Prefabrik, Tepe Service, Bilenerji, Bilen Bilkent and Bitu. Orhan Koral graduated from Istanbul Technical University, Department of Civil Engineering in 1982 and earned an MBA from Istanbul University a year later. He joined Tepe Construction in 1985 as a Civil Engineer and later worked as Final Accounts Manager, Projects Group Manager, and Deputy General Manager at the same company. Between 2001 and 2006, he served as Budget and Finance Coordinator at Tepe Construction and as Deputy General Manager from 2006 to Mr. Koral currently serves as Vice Chairman of the Board of Directors at Bilintur, Sports International, Dilek Construction, Bilsigorta; and as Board Member at Tepe Home, Tepe Real Estate, Tepe Prefabrik, Tepe Service, Bilenerji, Bilen Bilkent and Bitu. Levent Güler (5) Vice Chairman of the Board of Directors at Bilintur and Tepe Occupational Health and Safety; Executive Board Member at Tepe Defense, Tepe Service, and Tepe Security; Board Member at Bilintur Catering Center, Bilintur Culture Tourism, Seçkin Food and Bilge Bilkent. Levent Güler graduated from TED Ankara College in 1985 and from Middle East Technical University, Department of Civil Engineering in He then obtained an MBA from İhsan Doğramacı Bilkent University. Mr. Güler joined Tepe Group in 1989 as Field Engineer and worked as Field Manager and Construction Supervisor on various construction projects. Between 1998 and 2002, he served as Advisor to the Board of Directors at TAV Investment Construction and Operations Management at Atatürk Airport. From 2002 to 2003, he served as Domestic Projects Coordinator at Tepe Construction. Since 2003, Mr. Güler has served as General Manager and Executive Board Member at Tepe Defense and Security Systems, Tepe Service and Management, and Tepe Security. 7

10 Financial Indicators and Analysis IFRS Consolidated Financial Statements of Bilkent Holding A.Ş. and its subsidiaries (TL Million/%) Total Current Assets (TL million) Total Non-Current Assets (TL million) Total Assets (TL million) Total Shareholders Equity (TL million) 830 1,041 1,101 1,196 1,276 1,552 2,026 2,317 2,653 1,233 1,312 1, Total Revenue Gross Profit Profit for the Period EBITDA (TL million) (TL million) (TL million) (TL million) 1,884 1,622 1,

11 Current Ratio (%) Asset Turnover (%) Total Foreign Assets/ Total Assets (%) Gross Profit on Sales (%) Operating Profitability (%) With a total of 18,883 employees, Bilkent Holding runs its operations in 81 cities in Turkey. Bilkent Holding companies Tepe Betopan and Tepe Prefabrik operationalized new factories in In addition, Tepe Home Furniture renovated its stores and warehouses, while renovations were carried out at Kadıköy Natilius and Bilkent Center Shopping Centers, both of which are operated by Tepe Real Estate. The investment projects, initiated and/or finalized in 2014 by Bilkent Holding companies amounted to US$ 105 million. Of this total investment amount, US$ 30 million was spent by Tepe Betopan, US$ 10 million by Tepe Prefabrik, US$ 10 million by Sports International, US$ 10 million by Tepe Home, US$ 20 million by Tepe Real Estate, US$ 15 million by Tepe Construction, and US$ 10 million by Bilintur

12 Opinion on Independent Auditor s Report TO THE BOARD OF DIRECTORS OF BİLKENT HOLDİNG A.Ş. Report on the Consolidated Financial Statements We have audited the accompanying consolidated statement of financial position of Bilkent Holding A.Ş. (the Company ) and its subsidiaries (together will be referred as the Group ) as at 31 December 2014, and the consolidated statement of profit or loss, consolidated statement of other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Turkish Accounting Standards ( TAS ), and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Turkish Auditing Standards published by Public Oversight Accounting and Auditing Standards Authority ( POA ). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 10

13 Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Bilkent Holding A.Ş. and its subsidiaries as at 31 December 2014, and of its financial performance and its cash flows for the year then ended in accordance with Turkish Accounting Standards. Report on Other Legal and Regulatory Requirements In accordance with Article 402 of Turkish Commercial Code No ( TCC ), nothing has come to our attention that may cause us to believe that the Company s set of accounts and financial statements prepared for the period 1 January-31 December 2014 does not comply with TCC and the provisions of the Company s of association in relation to financial reporting. In accordance with paragraph four of the Article 402 of TCC, the Board of Directors provided us all the required information and documentation with respect to our audit. DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU LIMITED Erdem Selçuk Partner Ankara, 26 March

14 Consolidated Financial Statements Balance Sheet Current Period December 31, 2014 Previous Period December 31, 2013 ASSETS Current Assets 1,101,166,714 1,040,810,555 Cash and Cash Equivalents 218,816, ,082,246 Financial Investments 116,057, ,637,740 Trade Receivables 334,359, ,866,691 Trade Receivables from Related Parties 12,922,077 26,065,206 Trade Receivables from Non-Related Parties 321,437, ,801,485 Other Receivables 10,596,489 10,655,262 Other Receivables from Related Parties 3,156,391 2,508,648 Other Receivables from Non-Related Parties 7,440,098 8,146,614 Stocks 292,587, ,313,667 Prepaid Expenses 52,214,023 36,435,686 Other Current Assets 76,535,463 70,819,263 Non-Current Assets 1,552,030,238 1,276,034,242 Trade Receivables 13,140,005 21,548,598 Trade Receivables from Non-Related Parties 13,140,005 21,548,598 Other Receivables 46,417,580 26,056,392 Other Receivables from Related Parties 38,668,211 18,868,844 Other Receivables from Non-Related Parties 7,749,369 7,187,548 Financial Investments 7,215,053 8,551,052 Investments Valued by Equity Method 254,113, ,604,824 Property Plant and Equipment 338,080, ,496,886 Investment Property 787,451, ,913,337 Intangible Fixed Assets 84,689,930 67,336,222 Betterment 26,300,609 26,908,218 Other Intangible Fixed Assets 58,389,321 40,428,004 Stocks - 18,657,082 Prepaid Expenses 1,960,241 5,850,234 Other Real Assets 18,961,662 6,019,615 TOTAL ASSETS 2,653,196,952 2,316,844,797 12

15 Current Period December 31, 2014 Previous Period December 31, 2013 SOURCES Short Term Liabilities 669,735, ,662,345 Short Term Borrowing 46,510,538 35,443,329 Current Installments of Long-Term Financial Liabilities 12,656,518 78,927,825 Short Term Leasing Payables 6,918,241 5,057,329 Other Financial Liabilities - 512,699 Trade Debts 216,911, ,264,319 Trade Debts to Related Parties 1,484, ,750 Trade Debts to Non-Related Parties 215,426, ,542,569 Debts as part of Employee Benefits 38,424,376 31,328,692 Other Debts 11,780,708 19,340,674 Other Debts to Related Parties 960,870 6,305,339 Other Debts to Non-Related Parties 10,819,838 13,035,335 Deferred Income 286,522,628 80,126,140 Tax Liability of Period Income 2,245,632 1,657,853 Short Term Equivalents 31,769,714 16,050,248 Short Term Equivalents for Employee Benefit 5,506,090 8,787,448 Other Short Term Equivalents 26,263,624 7,262,800 Other Short Term Liabilities 15,995,777 12,953,237 Long Term Liabilities 372,095, ,154,175 Long Term Loans 83,828, ,985,196 Long Term Leasing Payables 23,903,755 25,719,138 Trade Debts 7,124,012 7,010,852 Trade Debts to Related Parties 1,513, ,215 Trade Debts to Non-Related Parties 5,610,041 6,494,637 Other Debts 20,321,923 17,254,877 Other Debts to Related Parties 13,328,068 13,620,560 Other Debts to Non-Related Parties 6,993,855 3,634,317 Deferred Income 115,714, ,686,411 Long Term Equivalents 27,189,728 23,140,280 Long Term Equivalents for Employee Benefit 27,189,728 23,140,280 Deferred Tax Liabilities 94,013,366 76,357,421 SHAREHOLDERS EQUITY 1,611,366,004 1,312,028,277 Shareholders Equity of Parent 1,576,990,831 1,268,843,181 Capital Receipts 743,950, ,102,307 Distinction from Share Capital Adjustment 630,800, ,800,675 Joint Management Companies 11,238,815 11,238,815 Premiums/Discounts of Shares (4,590,523) (4,590,523) Other Comprehensive Income and Expenses That Will Not Be Reclassified Subsequently to Profit or Loss 156,243,364 93,941,771 - Revaluation/Impairment of Fixed Assets 160,139,319 96,252,172 - Gains/(Losses) on Re-measurement of Defined Benefit Plans (3,895,955) (2,310,401) Other Comprehensive Income and Expenses That Will Be Reclassified Subsequently to Profit or Loss 24,220,487 29,277,440 - Hedging Benefit/(Loss) (18,452,052) (12,176,801) - Foreign Currency Conversion Adjustments 42,672,539 41,454,241 Reserves on Retained Earnings 19,591,583 18,084,436 Previous Years Profit/(Loss) (4,463,570) (163,011,740) Non-Controlling Interest 34,375,173 43,185,096 TOTAL SOURCES 2,653,196,952 2,316,844,797 13

16 Consolidated Financial Statements Profit And Loss Account Statement PROFIT OR LOSS Current Period January 01- December 31, 2014 Previous Period January 01- December 31, 2013 Revenue 1,515,536,433 1,621,696,925 Cost of Sales (-) (1,176,819,579) (1,304,451,893) GROSS PROFIT 338,716, ,245,032 General Administrative Expenses (-) (82,974,841) (87,144,018) Marketing, Sales and Distribution Expenses (-) (120,590,222) (108,967,854) Research and Development Expenses (-) (151,374) (424,420) Other Real Operating Income and Expenses (2,631,382) 31,695,084 REAL OPERATING PROFIT 132,369, ,403,824 Income and Expenses from Investing Activities 180,914,011 5,606,089 Shares from Profit/(Loss) of Investments Valued by Equity Method 42,426,0793 (30,222,002) Donations (162,035,000) (97,295,998) OPERATING PROFIT BEFORE FINANCIAL EXPENSES 193,674,125 30,491,913 Financial Expenses (-) (22,368,689) (49,740,206) PROFIT/(LOSS) BEFORE TAX 171,305,436 (19,248,293) Tax (Expenses)/Income (19,614,394) (8,305,662) PROFIT/(LOSS) FOR THE PERIOD 151,691,042 (27,553,955) Distribution of Profit/(Loss) for the Period Non-Controlling Interest (5,928,278) 21,119,625 Shares of the Parent 157,619,320 (48,673,580) 151,691,042 (27,553,955) 14

17 Comprehensive Income/Expenses Statement Current Period January 01- December 31, 2014 Previous Period January 01- December 31, 2013 PROFIT/(LOSS) FOR THE PERIOD 151,691,042 (27,553,955) OTHER COMPREHENSIVE INCOME/EXPENSES: Items That Will Not Be Reclassified Subsequently to Profit or Loss 62,333,826 60,164,090 - Revaluation/Impairment of Fixed Assets 41,655,548 1,570,220 Other comprehensive income items of associates that are accounted by equity method that will not be reclassified to profit or loss 24,264,158 56,945,869 - Revaluation/Impairment of Fixed Assets 24,881,430 56,356,225 - Gains/(Losses) on Re-measurement of Defined Benefit Plans (771,590) 737,055 - Gains/(Losses) on Re-measurement of Defined Benefit Plans Deferred Tax Income/(Expenses) 154,318 (147,411) - Gains/(Losses) on Re-measurement of Defined Benefit Plans (1,210,352) 2,060,001 Tax on Other Comprehensive Income That Will Not Be Reclassified Subsequently to Profit or Loss (2,375,528) (412,000) Deferred Tax (Expenses)/Income (2,375,528) (412,000) Deferred Tax of Revaluation/Impairment of Fixed Assets (2,617,598) - - Gains/(Losses) on Re-measurement of Defined Benefit Plans Deferred Tax Income/(Expenses) 242,070 (412,000) Items That Will Be Reclassified Subsequently to Profit or Loss (4,599,696) 45,434,176 Foreign Currency Conversion Adjustments 8,383,747 2,722,234 Hedging Benefit/(Loss) 512,698 2,796,185 Other comprehensive income items of associates that are accounted by equity method that will be reclassified to profit or loss (13,393,601) 40,044,467 Change on Foreign Currency Conversion Adjustments (5,215,576) 29,989,150 Hedging Benefit/(Loss) (10,222,531) 12,321,337 Hedging Benefit/(Loss) Deferred Tax (Expenses)/Income 2,044,506 (2,266,020) Tax on Other Comprehensive Income That Will Not Be Reclassified Subsequently to Profit or Loss (102,540) (128,710) Hedging Benefit/(Loss) Deferred Tax (Expenses)/Income (102,540) (128,710) OTHER COMPREHENSIVE INCOME/EXPENSES 57,734, ,598,266 TOTAL COMPREHENSIVE INCOME 209,425,172 78,044,311 Distribution of Total Comprehensive Income/Expenses Non-Controlling Interest (7,874,771) 22,837,589 Shares of the Parent 217,299,943 55,206, ,425,172 78,044,311 15

18 Bilkent Holding in Brief Achieving high quality, customer satisfaction and profitability in all business areas is a top priority for Bilkent Holding. to introduce innovations to the sector without compromising its high quality. Bilkent Holding has transferred the reliable brand image of Tepe to furniture and retail industries as well. Offering custom designs in order to achieve high customer satisfaction, Tepe Home continues to lead the furniture industry in terms of both manufacturing and retailing. The main factor underlying Bilkent s achievements is its commitment to excellence from day one. The foundations of Bilkent Holding were laid with Dilek Construction, which was established by İhsan Doğramacı in 1968 to operate in the construction industry. This was followed by the establishment of Tepe Ağaç Metal ve Makina Sanayi (Tepe Wood Metal and Machinery Industry Co.), and Meteksan in Then, all companies were gathered under the Bilkent Holding umbrella during the restructuring process undertaken in Since its inception, Bilkent Holding and its subsidiaries have striven to generate steady, continuous and long-lasting resources in collaboration with their partners and other stakeholders. Accordingly, achieving high quality, customer satisfaction and profitability in all business areas is a top priority for Bilkent Holding. Bilkent Holding currently operates in a variety of industries including construction, furniture & retail, printing & paper, real estate and services and through its subsidiaries, the Holding is also actively involved in airport operations. Thanks to the achievements of the companies under its umbrella, Bilkent Holding ranks among the country s leading enterprises. Having a corporate structure that is competitive, open to innovation and improvement, reliable, environmentally aware, highly professional and dynamic, the Holding continues to expand its future goals. Having greatly expanded its business areas in less than 50 years, Bilkent Holding currently operates in a variety of industries including construction, furniture & retail, printing & paper, real estate and services. Through its subsidiaries, the Holding is also actively involved in airport operations. The Holding transfers the experience it has acquired in these local industries to its operations in the Middle East, North Africa, Turkic Republics, Eastern Europe and Russia. Having successfully expanded its business areas and geographic coverage in a relatively short period of time, Bilkent Holding ranks among the 50 biggest conglomerates in Turkey, according to the statistics released by reliable and reputable sources. Additionally, the Holding companies maintain their leadership positions in their respective industries. Tepe Construction, Bilkent Holding s flagship company in the construction industry, develops various projects both in Turkey and overseas, and continues Operating in printing-paper industry, Meteksan has become a well-known brand with its product variety as well as an annual production capacity of nearly 30,000 tons. To date, Tepe Real Estate has built seven shopping centers in Turkey, and the Company currently lease and operates Ankara Bilkent Center and Istanbul Tepe Nautilus shopping centers and manage the leasing of Tepe Prime Business- Residence-Avenue in Ankara. With the experience it has acquired since the boom in shopping center business, Tepe Real Estate continues to create spaces that make life easier for people. Another important company under Bilkent Holding s umbrella is Tepe Defense, which provides defense and security services to the leading corporations in Turkey. With their superior and impeccable service standards, Bilintur and Sports International have 16

19 Shareholding Structure Bilkent Holding has a very distinctive position in the field of social responsibility. All the resources generated by the Holding and its subsidiaries are transferred to Bilkent University so that more students can benefit from scholarships and the most contemporary education available. become brands of choice in hotel management as well as catering, fitness and wellness services. These companies help raise the bar of success for the Holding. Tepe Betopan is not only the biggest manufacturer of cement bonded particle boards in Turkey, but also ranks among the world s top three manufacturers. The Company exports exterior surfacing panels to various countries around the world. Bilkent Holding gives a free hand to the companies under its umbrella to conduct their business, provided that they adhere to corporate values and principles. Accordingly, the companies have the opportunity to expand their business in accordance with the requirements of their respective sectors, and add further strength to the Holding by establishing subsidiaries and partnerships. TAV Airports Holding and TAV Investment Holding, which were jointly established by Bilkent Holding and Akfen Holding, prove how successful this strategy is. Always aiming to achieve the best possible performance in corporate and operational processes, the Holding has become a leading corporation that is competitive, open to innovation and improvement, reliable, professional and dynamic. While continuing its journey to excellence, the Holding places great importance on creating a competent workforce with a high sense of belonging by choosing the right person for the right job. In 2013, Bilkent Holding achieved its operational and financial objectives set forth in the five-year strategic plan. The Holding will continue to expand its business and increase its investments in the sectors, where it has a competitive advantage and achieves the best performance. Bilkent Holding believes in the importance of sustainable growth, in addition to annual performance, in achieving a strong position in the world of business. Therefore, the Holding will continue to lead the sectors, in which it takes on a pioneering role. Further, Bilkent Holding plans to enter new sectors that will support its principles and long-term strategic goals. To that end, the Holding will be evaluating public-private partnerships, privatization projects, overseas investment opportunities, and technology investment projects. With the reliable brand image of Bilkent, its leadership position in all sectors, strong financial structure, compliance with laws and commitment to ethical values, Bilkent Holding will continue to grow by carrying its deep experience spanning 46 years into the future % <1% İhsan Doğramacı, Bilkent University 99.99% Other <1% İhsan Doğramacı Foundation <1 İhsan Doğramacı Health Foundation <1 İhsan Doğramacı Education Foundation <1 İhsan Doğramacı Science and Research Foundation <1 17

20 Bilkent Holding Companies and Subsidiaries The main factor underlying Bilkent s achievements is its commitment to excellence from day one. Majority Shareholder Bilkent Holding A.Ş. Group Companies Alipsan Kağıt Makinaları Sanayi ve Ticaret A.Ş. Bilan Bilkent Ankara Tepe Otel İşletmeciliği A.Ş. Bilbak Bilkent İnşaat Ticaret ve Bakım Hizmetleri A.Ş. Bildes Bilkent Destek Hizmetleri ve Ticaret A.Ş. Bilenerji Bilkent Enerji Üretim San. ve Tic. A.Ş. Bilintur Bilkent Turizm İnşaat Yatırım A.Ş. Bitu Turizm ve İnşaat Yatırım A.Ş. Bilsigorta Bilkent Sigorta Aracılık Hiz. A.Ş. Dilek İnşaat ve Ticaret A.Ş. Meteksan Matbaacılık ve Teknik Sanayi Ticaret A.Ş. Meteksan Savunma Sanayi A.Ş. Meteksan Sualtı Akustik Sistem Teknolojileri A.Ş. Sports International Bilkent Fitness ve Spor Merkezi A.Ş. Tepe Betopan Yapı Malzemeleri San. Tic. A.Ş. Tepe Emlak İnşaat Yatırım İnşaat ve Ticaret A.Ş. Tepe Güvenlik A.Ş. Tepe Home Mobilya ve Dekorasyon Ürünleri Tic. A.Ş. Tepe İnşaat Sanayi A.Ş. Tepe Prefabrik İnş. San. ve Tic. A.Ş. Tepe Savunma ve Güvenlik Sist. San. A.Ş. Tepe Servis ve Yönetim A.Ş. Tepe İş Sağlığı ve Güvenliği A.Ş. Bilintur Kültür Turizm Yatırım Gıda Besicilik Makina ve Ticaret A.Ş. Tepened Investment B.V. Affiliates TAV Havalimanları Holding A.Ş. TAV Yatırım Holding A.Ş. İDO Istanbul Deniz Otobüsleri Sanayi ve Ticaret A.Ş. Zeytinburnu Liman İşletmeleri San. ve Tic. A.Ş. Hyper Foreign Trade Holland N.V. 18

21 Bilkent Holding in the World Having successfully expanded its business areas and geographic coverage in a relatively short period of time, Bilkent Holding ranks among the 50 biggest conglomerates in Turkey, according to the statistics released by reliable and reputable sources. LATVIA RUSSIA UKRAINE KAZAKHSTAN ALBANIA MACEDONIA GEORGIA AZERBAIJAN TURKMENISTAN TUNISIA CYPRUS AFGHANISTAN IRAQ LIBYA EGYPT SAUDI ARABIA QATAR U.A.E. OMAN 19

22 Bilkent Holding in Turkey Since its inception, Bilkent Holding and its subsidiaries have striven to generate steady, continuous and long-lasting resources in collaboration with their partners and other stakeholders. EDİRNE KIRKLARELİ TEKİRDAĞ ISTANBUL KOCAELİ ZONGULDAK BARTIN KARABÜK KASTAMONU SİNOP SAMSUN GİRESUN ÇANAKKALE YALOVA BURSA SAKARYA BİLECİK DÜZCE BOLU ANKARA ÇORUM AMASYA TOKAT ORDU GÜ BALIKESİR ESKİŞEHİR KIRIKKALE YOZGAT SİVAS MANİSA KÜTAHYA NEVŞEHİR KIRŞEHİR UŞAK KAYSERİ IZMIR AFYON AKSARAY MALATYA ISPARTA AYDIN DENİZLİ KONYA NİĞDE KAHRAMANMARAŞ ADIYAMAN MUĞLA BURDUR ANTALYA KARAMAN MERSİN ADANA OSMANİYE GAZİANTEP HATAY KİLİS TRNC 20

23 Tepe Construction Ankara, Istanbul, Afyon, Elazığ Tepe Betopan Ankara Tepe Prefabrik Ankara Tepe Real Estate Bilkent Center-Ankara, Tepe Nautilus-Istanbul Tepe Home - Furniture Adana, Alanya, Ankara (2), Batman, Çanakkale, Denizli, Diyarbakır, Edirne/Uzunköprü, Elazığ, Eskişehir, Giresun, Hatay, Istanbul (6), Izmir, İzmit, Kayseri, Konya, Kütahya, Mersin, Samsun, Şanlıurfa, Tekirdağ, Trabzon, Uşak, Van, Ordu, Aydın/Kuşadası, Isparta, Yalova Bilintur Catering Ankara, Istanbul, Izmir, Antalya, Kayseri, Konya, Kocaeli, Sakarya, Nevşehir, Aksaray, Malatya, Manisa, Denizli, Afyon, Bolu, Gebze, Yozgat, Sivas, Erzurum, Denizli, Uşak, Muğla, Aydın, Isparta, Eskişehir, Zonguldak, Kırıkkale Bilkent Cultural Initiative (BKG) Aksaray, Ankara, Antalya, Aydın, Çanakkale, Çorum, Denizli, Gaziantep, Erzurum, Hatay, Istanbul, Izmir, Konya, Mardin, Mersin, Muğla, Nevşehir, Samsun, Trabzon, Şanlıurfa, Isparta, Burdur Bilintur Culture, Tourism, Investment, Food, Stock Farming, Machinery and Trade Istanbul Bilkent Hotel Ankara Bitu Izmir Bilenerji Ankara Bilsigorta Ankara Tepe Services Adana, Adıyaman, Afyon, Aksaray, Amasya, Ankara, Antalya, Aydın, Balıkesir, Batman, Bingöl, Bitlis, Bolu, Burdur, Bursa, Çanakkale, Çorum, Denizli, Diyarbakır, Düzce, Edirne, Elazığ, Erzincan, Erzurum, Eskişehir, Gaziantep, Gebze-Kocaeli, Giresun, Hakkari, Hatay, Isparta, Istanbul, Izmir, Kahramanmaraş, Karaman, Kastamonu, Kayseri, Kırıkkale, Kırklareli, Kırşehir, Kocaeli, Konya, Kütahya, Malatya, Manisa, Mardin, Mersin, Muğla, Nevşehir, Niğde, Ordu, Osmaniye, Rize, Sakarya, Samsun, Siirt, Sivas, Şanlıurfa, Şırnak, Tekirdağ, Trabzon, Uşak, Van, Yalova, Yozgat, Zonguldak Ankara Technology Development Zone Ankara Meteksan Defense Ankara, Istanbul Meteksan Printing House Ankara, Istanbul Tepe Occupational Health and Safety Services Ankara, Gebze TRABZON MÜŞHANE BAYBURT ERZİNCAN RİZE ARTVİN ERZURUM ARDAHAN KARS AĞRI IĞDIR Sports International Ankara: Bilkent, Istanbul: Ataköy, Şişli, Kadıköy, Sinpaş GYO, Izmir: Mavişehir, Mersin: Marina Bilsigorta Ankara All cities (except Kilis) TAV Airports Holding Istanbul Atatürk Airport, Ankara Esenboğa Airport, Izmir Adnan Menderes Airport, Antalya Gazipaşa Airport TAV Investment Holding Istanbul TUNCELİ BİNGÖL ELAZIĞ DİYARBAKIR MARDİN ŞANLIURFA MUŞ BİTLİS SİİRT BATMAN ŞIRNAK VAN HAKKARİ Tepe Security Adana, Adıyaman, Afyonkarahisar, Aksaray, Amasya, Ankara, Antalya, Artvin, Aydın, Balıkesir, Batman, Bingöl, Bolu, Burdur, Bursa, Çanakkale, Çorum, Denizli, Diyarbakır, Düzce, Edirne, Elâzığ, Erzincan, Erzurum, Eskişehir, Gaziantep, Giresun, Hatay, Isparta, Istanbul, Izmir, Kahramanmaraş, Karabük, Karaman, Kastamonu, Kayseri, Kırıkkale, Kırklareli, Kırşehir, Kocaeli, Konya, Kütahya, Malatya, Manisa, Mardin, Muğla, Nevşehir, Niğde, Ordu, Osmaniye, Rize, Sakarya, Samsun, Siirt, Sivas, Şanlıurfa, Şırnak, Tekirdağ, Tokat, Trabzon, Uşak, Van, Yalova, Yozgat, Zonguldak (Other cities are provided services at latest 48 hours.) İDO (Istanbul Fast Ferries) Istanbul 21

24 Milestones 1960s 1970s 1980s 1968 Dilek Construction was established. With the complete of the constructions of Hacettepe Children s Hospital quick and quality the Company soon became one of the most reliable companies of the Turkish construction industry and built constructions project on every corner of Turkey İhsan Doğramacı dispatched Ahmet Ersudaş and Prof. Dr. Mithat Çoruh to Germany to acquire all the necessary facilities for the new plant. Within a year, Tepe Wood Metal and Machinery Industry Co. was established and began operations. Meteksan was established and began to produce oxygen gas for hospitals Tepe Pazarlama Tic. Ltd. Şti. (Tepe Marketing) was established to carry out internal and external marketing activities for Tepe Group products, and the Company opened regional offices in Izmir, Istanbul, Antalya and Adana Meteksan Printing House began printing and publishing operations Tepe Marketing opened the first retail store to sell Tepe Group products. Ankara Bilkent Printing Facility commenced operations under the roof of Meteksan Printing House Tepe Prefabrik was established Bilkent University were founded and the construction was started in the land purchased by İhsan Doğramacı in 1960s. Betopan factory was established and cement bonded particleboard manufacturing started for the first time in Turkey Bilkent Holding A.Ş. was established Biltepe began manufacturing plasterboard and plastering supplies. In the second half of 1997, the Company merged with Knauf to produce gypsum board and powder, and was renamed Tepe Knauf. In 1999, all shares of the Company were sold to Knauf. Bil Furniture factory was established in Eskişehir Organized Industrial Zone to manufacture custom furniture and panels Tepe Kitchen factory was established to manufacture modular kitchen and bathroom cabinets The name of Tepe Ağaç Metal ve Makina San. Ltd (Tepe Wood Metal and Machinery Industry Co.) was changed to Tepe Ağaç Metal ve İnşaat San. A.Ş. (Tepe Wood Metal and Construction Inc.) after the Company began operations in the construction sector. Alipsan A.Ş. was established to manufacture machines and equipment for the printing facilities. Bilsigorta (Bilkent Insurance Brokerage Services) was founded to provide insurance. 22

25 1990s 1990 Bilintur began to operate the Bilkent Hotel and Conference Center in Ankara The first retail store was opened in Siteler district of Ankara following the decision to start manufacturing home furniture. Construction began on Bilkent Housing project Special Security Organization was established under the roof of Tepe Construction in order to provide security systems and services to Bilkent Holding companies The Furniture Department within Tepe Wood Metal and Construction Inc. was reorganized as a separate company, under the name Tepe Mobilya San. ve Tic. A.Ş. (Tepe Furniture). Tepe Betopan Yapı Malzemeleri San. ve Tic. A.Ş. (Tepe Betopan Construction Materials) broke apart from Tepe Wood Metal and Construction Inc. and was established as a separate company. Tepe Door factory was established to manufacture wood doors and windows, and to provide related services. Bilenerji was established to supply electric power to Bilkent University and the production facilities of the Holding companies as well as to supply steam to Meteksan Paper Factory and to all the buildings on Bilkent University s campus for heating purposes. Sports International Bilkent, the first and the biggest sports center in Turkey, was established in Ankara, as a Turkish-American joint venture. Later, the facilities in Ataköy, Kadıköy, Şişli in Istanbul and the Mavişehir facility in Izmir also joined Sports International. Bilintur Catering Centre was established under the umbrella of Bilintur to provide food and beverage services The name of Tepe Ağaç Metal ve İnşaat San. A.Ş. (Tepe Wood Metal and Construction Inc.) was changed to Tepe İnşaat Sanayi A.Ş. (Tepe Construction Industry Inc.) Tepe Emlak Yatırım İnşaat Tic. A.Ş. (Tepe Real Estate Investment Construction) was established to provide construction and management services to shopping and business centers. International Research Institute of Tactical Security was established under the roof of Tepe Construction to provide consulting and training services in the field of physical and electronic security systems to both public and private companies Tepe Home, Turkey s first and the biggest retail chain of home furniture and accessories, white goods and electronics, was established. Tepe Finansal Kiralama A.Ş. (Tepe Financial Leasing) was established to provide alternative financing solutions to corporations for their new investments or renovation efforts. The special security units operating under Tepe Construction were merged and reorganized as a separate company, under the name Tepe Savunma ve Güvenlik Sistemleri Sanayi A.Ş. (Tepe Defense and Security Systems). TAV Airports was established as a Tepe-Akfen joint venture, and the Company won the BOT tender for Istanbul Atatürk Airport. ATÜ (Akfen-Tepe Unifree) was established, as a joint venture of TAV and Unifree-Gebr. Heinemann Bilkent Center Shopping Mall opened in Ankara with the cooperation of Tepe Real Estate and Metro AG. Tepe Cinemaxx began operations. Meteksan Sistem was established to provide extensive IT solutions in the fields of system integration, software development, hardware, Internet services, educational software, consulting and education Construction of the International Terminal at Istanbul Atatürk Airport was completed, and the Domestic Terminal was modernized to serve an average of 7.5 million passengers a year. In order to carry out the food and beverage operations at Istanbul Atatürk Airport s International Terminal, BTA Catering Services was established as a joint venture company of Bilintur, Tepe and Akfen. 23

26 Milestones 2000s 2000 Tepe Construction built the Turkish Armed Forces Rehabilitation Center. Tepe Construction completed the construction of İş Bank Headquarters, the first and the tallest smart building in Turkey After the Law No on Technology Development Zones was passed, Bilkent University established Ankara Teknoloji Geliştirme Bölgesi Kurucu ve İşletici A.Ş. (Ankara Technology Development Zone). Tepe Mutfak San. ve Tic. A.Ş. (Tepe Kitchen) merged with Tepe Mobilya San. ve Tic. A.Ş. (Tepe Furniture) Inspired by the sea, Tepe Nautilus was built in the Kadıköy district of Istanbul, one of the most beautiful coastal cities in the world. Tepe Nautilus was the first thematic shopping center in Turkey. TAV Construction was established and subsequently, all airport construction projects were gathered under the roof of this company Kapı Doğrama Tic. A.Ş. merged with Tepe Mobilya Ticaret A.Ş. (Tepe Furniture) Bil Mobilya San. ve Tic. A.Ş. merged with Tepe Mobilya Ticaret A.Ş. (Tepe Furniture). Tepe Construction completed the Eczacıbaşı Kanyon Project, a contemporary open-air shopping mall. Restructuring of the Holding s management was finalized Tepe Construction took part in the Baku-Tbilisi- Ceyhan pipeline project, and participated in the construction of the 277-kilometer section of the pipeline and the pumping stations between Posof and Erzurum. Construction began on the Narcity Housing Project, which was built on 147 acres of land in Maltepe, Istanbul, and consists of 1,414 houses. TAV Bilişim Hizmetleri A.Ş. (TAV IT Services) was established, and all IT services related to airport construction and management were gathered under the roof of this company. TAV won the tender for the construction of Tbilisi and Batumi International Airports in Georgia. Management Company, TAV Urban Georgia LLC was established. TAV Construction s Sharjah Branch was established. Tepe Cinemaxx was sold Meteksan Savunma Sanayii A.Ş. (Meteksan Defense Industries) was established to develop platform modernization and system integration projects for the defense industry. Operation and construction services provided by TAV were restructured under two separate holding companies, TAV Airports Holding and TAV Investment Holding. TAV Construction s Doha Branch was established. M1 Gaziantep, M1 Kartal, M1 Adana and M1 Konya shopping centers were sold Bilkent Group sold Meteksan Sistem A.Ş. and its subsidiaries. The IPO of TAV Airports Holding was conducted. After the sale of Havaş s 40% minority shares, the Company became a wholly owned subsidiary of TAV Airports. TAV Construction s Tunisia, Bahrain and Libya branches were established Tepe Servis ve Yönetim A.Ş. (Tepe Services and Management) was established to provide services such as cleaning, technical operations, garden maintenance, management, office support. The articles of association and field of operation of Tepe Finansal Kiralama A.Ş. (Tepe Financial Leasing) were amended, and the Company s name was changed to Bilan Bilkent Ankara Tepe Otel İşletmeciliği A.Ş. (Bilan Bilkent Ankara Tepe Hotel Management) Bilintur A.Ş., BKG (Bilkent Cultural Initiative) won the tender of the Turkish Ministry of Culture and Tourism for Managing, Operating and Improving the Selling Areas and Commercial Activities in Museums and Historical Sites, and Supplying Products and Services. 24

27 2010s Tepe Defense signed a partnership agreement with Türk Telekom with regard to home and office security services. TAV Construction s Abu Dhabi Branch was established. Meteksan Sualtı Akustik Sistem Teknolojileri A.Ş. (Meteksan Underwater Acoustic Technologies) was established Tepe-Akfen-Souter-Sera Consortium won the block sale privatization tender for Istanbul Deniz Otobüsleri Sanayi ve Ticaret A.Ş. (Istanbul Fast Ferries) after placing the highest bid (US$ 861 million). Tepe Mobilya A.Ş. (Tepe Furniture) merged with Tepe Home A.Ş. The Tepe Prime Business-Residence-Avenue in Ankara was inaugurated. Tepe Security was established to provide alarm monitoring and electronic security services % of the shares of TAV Airports Holding and 22.5% of the shares of TAV Investment Holding were sold to Aéroports de Paris Group. Sports International s new club in Mersin began operations. Alarm operation services, provided by Tepe Defense, were transferred to Tepe Security through a partial separation Tepe Betopan and Tepe Prefabrik initiated investments in new factories. Bitu s planned investment project commenced in Selçuk, Izmir. Tepe Home finalized its renovation investments. Tepe Construction began to expand rapidly in Turkmenistan. Meteksan Defense became the rising star of the industry with the projects it undertook, and commenced its first overseas project in Oman. Tepe Occupational Health and Safety began operations. Tepe Prefabrik completed new factory investments during the year. Tepe Betopan and Tepe Prefabrik relocated to their new LEED Gold-certified facilities in the Ankara Temelli Second Organized Industrial Zone. Tepe Betopan added fiber cement boards to its product portfolio under the brand name Tepepan. 25

28 Business Areas Construction and Supply Industry Furniture and Retail Tepe Construction 28 Tepe Home 38 Tepe Betopan Tepe Prefabrik With the reliable brand image of Bilkent, its leadership position in all sectors, strong financial structure, compliance with laws and commitment to ethical values, Bilkent Holding will continue to grow by carrying its deep experience spanning 46 years into the future.

29 Printing and Paper Real Estate Management Services / Tourism and Retail Meteksan Printing 40 Tepe Real Estate 42 Bilkent Hotel and Conference Center 44 Bilkent Cultural Initiative (BKG) 46 BİTU 48 Bilintur Catering Centre (BCC) 49 Bilintur Culture, Tourism, Investment, Food, Stock Farming, Machinery and Trade 50 Tepe Defense and Security 51 Tepe Security 54 Tepe Services 56 Sports International 58 Bilkent Cyberpark - Ankara Teknoloji Geliştirme Bölgesi Kurucu ve İşletici A.Ş. (Ankara Technology Development Zone) Bilenerji Meteksan Defense 62 Bilsigorta 64 Tepe Occupational Health and Safety 65