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The Executive Board ( Left to Right) |
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Raif A. Dinçkök (Member) |
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Ayça Dinçkök (Member) |
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Mehmet Ali Berkman (CEO) |
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Our consolidated net profit and combined net profit increased by 41% and 47%, respectively.
With the participation of SEDAŞ in our Group, our combined sales increased by 33% on a US dollar basis in 2009 compared to the previous year. Thanks to the profit from share sales amounting to TL 137 million, our consolidated net profit increased by 41% and combined net profit grew by 47%.
In 2009, the world economy witnessed the most dramatic contraction since 1930 and suffered a loss of more than US$ 3 trillion in the financial sector. While asset values, particularly real estate prices, critically contracted, confidence in the market economy sharply diminished and there was a loss of faith in the future.
Although relatively less affected from the current global economic crisis when compared to developed economies, our country still took on its own
share of contraction in the world economy. As a consequence, the unemployment rate in Turkey reached 13.5% and the current deficit receded to US$ 14 billion.
The Central Bank of the Republic of Turkey reduced interest rates by 8.5 points during the year and the Istanbul Stock Exchange (ISE), which experienced a recession of 55%
the previous year, closed 2009 with an increase of 95%. US dollar parity fell back to TL 1.5 in January, following an increase to
TL 1.8 in March.
Although there were signals of recovery in the last quarter of 2009, the adversities suffered in the Eurozone points out that risks still prevail. While economists look toward the end of 2011 for the effects of the global crisis to come to an end, they expect that the Far East will be the first to emerge while the EU countries will be the last.
The goals of our Group
Adopting a corporate governance approach and abiding by the Corporate Governance Principles are of utmost importance for companies and corporations to attain sustainable corporate assets and prestige. To support corporate governance, it is equally significant to employ internal audit procedures at international standards.
For this end, Akkök Group Internal Audit Department was established in October 2009. The Department is set to ensure the efficiency of the risk management, supervision and corporate
governance processes that will improve the activities of the corporation, and facilitate the achievement of its goals. The Internal Audit Department will also provide independent and impartial
warrant and consultancy services
The financial performance of our Group
With the participation of SEDAŞ in our Group, our combined sales increased by 33% on a US dollar basis in 2009 compared to the previous year. On the other hand, due to the transfer of half of Akenerji shares owned by Akkök to CEZ, which transformed full consolidation into a proportionate one, as well as the devaluation of the Turkish lira by 19%, our consolidated sales fell by 24%. Combined EBITDA declined by 3.6% while an 11% increase in consolidated EBITDA was realized. Thanks to the profit from share sales amounting to TL 137 million, our consolidated net profit increased by 41% and combined net profit grew by 47%.
Although 2009 was a year dominated by the global crisis, our Group continued with its infrastructure investments at full steam without facing any problems in the funding of its investments.
Aksa aims to strengthen its position in carbon fiber, a raw material utilized by the composite industry, with its AKSACA brand. Anticipating that the future will be built upon equipment technologies, Aksa has attained a pioneering role in the development of the Turkish composite sector with carbon fiber production. Aksa has already invested US$ 85 million in this sector and plans to further increase its production in the future. Aksa is currently one of the nine companies producing carbon fiber in the world.
Thanks to its features such as high resistance, low intensity, low corrosion and low weight, carbon fiber is a preferred material in industries such as aerospace, aviation,
defense, automotive; as well as in the manufacture of sports equipment, structure reinforcement and other industrial applications. The competitive advantage of Aksa with regard to the
production of carbon fiber and other specialized fibers depends on the reduction of energy costs, which constitute 40% of input costs. In this respect, the Company made the necessary
investments in 2009 to transform the type of fuel used in energy production from natural gas to a mixed system capable of combusting both natural gas and coal.
Ak-Kim, an Akkök Group company positioned as one of the most prominent producers of chemical substances in Turkey, is capable of
producing more than 100 types of inorganic and organic chemicals, auxiliary textile products, as well as paper, cement and construction chemicals;
the quality of which have been certified by international markets. Expanding its product range that already consists of basic chemicals to include end-products and thus,
improving its product diversity, Ak-Kim aims to respond to all the needs of its targeted sectors and to provide alternative solutions. In addition to the production and sales
of chemical substances, the Company also delivers engineering services for the construction of Chlorine Alkali and Hydrogen Peroxide facilities in Jordan, Saudi Arabia, Pakistan,
Algeria and Iran.
Our energy is our future
In Turkey, energy is a type of business that might be called “quasi-public” in which private and public sectors work in cooperation and numerous public institutions together with the Ministry of Energy take joint responsibility. Deemed equivalent to the concepts of development and welfare, the energy sector will continue to be a prominent industry. Akenerji follows developments in the gradually liberalized energy sector closely and employs a proactive approach in its strategic decision-making and in its practices. These characteristics earn the Company a competitive edge in the sector with an ability to act swiftly and resiliently.
2009 was a year in which Akenerji continued with its investments and made significant progress on its way to becoming an integrated energy company. In September 2009, Akenerji commissioned the Ayyıldız Wind Power Plant. The Company started its investments in the Egemer Natural Gas project with a capacity of 900 MW, the largest-scale investment since its establishment. In February 2009, the Company acquired SEDAŞ, which operates in Sakarya, Kocaeli, Bolu and Düzce, all in the Turkish industrial heartland, where 6% of the national electrical energy is consumed.
Within the framework of the Transformation Project initiated in 2009, SEDAŞ accelerated its branding activities in an effort to increase service quality. The Company introduced new departments it deemed necessary to its organization. Along with investments in technical hardware and infrastructure, collection and assessment processes were improved and new collection departments were established.
Akenerji did not participate in privatizations in 2009 since the high prices did not match the feasibility assessments of the Company. However, in line with its growth targets, and starting from the second half of 2010, the Company will closely follow the privatization process of the state-owned power plants.
When Akenerji, which will gradually commence operations at Akocak, Uluabat, Bulam, Burç and Feke 2 hydroelectric plants in 2010, reaches an installed capacity of 3,000 MW, a target included in its five-year strategic plan, its share in the total electricity generation in Turkey will be increased to 7-8%.
Akasya, another Akiş project, consists of a shopping center with a gross leasable area of 86,000 square meters, 1,600 upscale housing units and park allotted to sports, recreation and social facilities. The share of Akkök Group in the project increased to 35%, with the acquisition of a 7% share, formerly owned by Corio. In Akasya project, sales of which were ongoing even during the time of the crisis, 99% of the 888 apartments in the Woodland and the Lake segments have been sold.
A new beginning in real estate with Akbatı
Akiş, which achieved significant success in the real estate sector, restructured its partnership shares in Akkoza Residence and Shopping Center Project in 2009. With the acquisition of partner shares, the shopping and lifestyle centers in the project became a fully-owned Akiş project and was renamed as “Akbatı”. Akbatı, construction of which will continue in 2010, consists of a shopping center with a gross leasable area of 63,500 square meters and 348 residence apartments with a total tradable area of 42,745 square meters. Within the scope of the project, which will become one of the largest shopping and wellness centers of Istanbul, residence apartments will be consigned to their owners in December 2011 and the shopping center will open its doors to visitors in September 2011.
Merger of Ak-Al and
Aksu has been completed
The yarn production facility of Aksu was closed in 2008 and the production costs of Ak-Al were lowered by a more efficient use of its production capacity and by simplifying and overlapping production pools. Following the merger, efforts have been made to restructure the iterant processes of management, control, logistics, fixed assets and information technology. Upon the finalization of these efforts, the competitive edge of Ak-Al will be amplified and its leading position in the market will be strengthened.
A significant exit point that connects
Thrace with Europe
Following the acquisition of Akport from the Privatization Administration and with an investment of approximately US$ 65 million, Akport was transformed into a modern port with a total container area of 130,000 square meters, a berth length of 2 kilometers, an annual bulk cargo-handling capacity of
3 million tons and a container-handling capacity of 300,000 TEU/year.
The inauguration of the Tekirdağ-Muratlı railway, connecting Akport to the railroads, allows land transportation, which flows into and transiting through Istanbul, to reach its final destination economically using railroad ferries that will operate between ports facing each other geographically. Using the port to reduce the highway transportation will give some relief to the traffic in Istanbul, while contributing to the reduction of carbon emissions when compared to highway transportation.
Although the construction of the ramp in Akport was completed, the construction of ramps in Derince and Bandırma still continues. Thus, the inauguration of the Tekirdağ-Muratlı railway was postponed until August 2010.
We continue to achieve successful results in the service sector
Aktek, one of the Group’s companies operating in the service sector, was established for the standardization of the information technology services within Akkök Group. Today, Aktek has become a technology company expanding its experience beyond the Group and has, thus, raised its targets of profitability and revenue.
In addition, Dinkal, with more than 33 years of experience in the insurance sector, provides insurance services that are specialized particularly in the areas of fire, accident (air travel included), health and transport (maritime included). Despite the global recession, together with reduced profitability and intense competition from the impact of the global crisis, Dinkal continued to grow and improve its performance in 2009.
Paper Moon, which has maintained the quality and select atmosphere it has been offering to its customers since its establishment, is a valuable trademark that is now identified with our Group.
Targets for 2010…
In 2010, Akkök Group aims to make a total investment of approximately US$ 700 million in the energy, chemicals and real estate sectors. The Group anticipates to increase its combined revenue by 15% compared to 2009 and to reach an EBITDA margin of 11%.
In 2010, we will continue to concentrate on R&D and efficiency activities as well as investments on information technology. The Group’s website will be renewed and we will be able to provide our stakeholders with information on a more interactive platform.
A large part of the credit in our success belongs to our business partners, valuable customers and shareholders that have never lost their faith in us, and to our employees that continue to carry us into the future with their devoted work. I would like to thank them all on behalf of the Executive Board.
Yours sincerely,
Mehmet Ali Berkman
Chief Executive Officer
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