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Leaving behind another hectic year, economically, socially and politically, we remain steadfast on our path in the sectors where we operate as a locomotive corporation for the development of Turkey. Low oil prices throughout the
year, drastic decline in commodity prices, and lower-thanexpected growth in the Chinese economy led to worldwide economic uncertainty. Therefore, it is fair to say that both the global economy and Turkey’s economy went through a
volatile year overall.
The circumstances resulting in uncertainty and volatility for Turkey can be set out under a trio of titles: global economic developments, geopolitical crises, and repeated general elections.
 
Considering the current condition of Turkey’s economy and the positioning of our company, we at AKKÖK HOLDİNG
invest with longer-term strategies, and we take note of inorganic growth as well as organic growth by means of past and current projects. We believe that development of the Turkish chemical sector will play a key role in closing the gap in foreign trade. Hence, we pay close attention to the added value created by our group companies, such as Aksa Akrilik, Ak-Kim Kimya and DowAksa, with their activities in the chemicals sector. We strive to position Akkök Holding as one of Turkey’s largest holdings investing in the chemicals sector.
 
In 2015, we maintained our turnover, whilst achieving a substantial recovery in our operating income.
 
In 2015, Aksa Akrilik tended toward export markets to compensate the negative effect of the drop in oil prices, and economic and political uncertainties in domestic markets. Hence, Aksa Akrilik focused on new business areas, gained new markets, and worked to enhance its penetration across existing markets during the previous year. By means of investments, the capacity utilization ratio reached almost 98%, and export’s share of total sales reached 41%. Today Aksa has attained turnover of US$ 750 million through delivering products to more than 300 customers, in 50 countries across 5 continents, and it stands its ground in a robust fashion. Based on gains from focusing on R&D activities in the last year, production began on pigment dyed acrylic filament thread, as the sole producer in the sector. In addition to this investment, the Company continued engagements in High Pile fiber and modacrylic throughout the year. The decorated GE Power&Water, Water and Process Technologies Project and Advanced Energy Solutions Project, which gain savings for the Company in energy efficiency and operational excellence, were put into operation in 2015.
 
Last year DowAksa signed a Joint Development Agreement with the automotive giant, Ford, to develop carbon
fiber devoted to a high volume of automotive sector applications. The purpose of the said agreement, which
combines DowAksa’s raw material capacity, competency in carbon fiber, and intermediate material production with
Ford’s design, engineering and high volume manufacturing experience, is to manufacture much lighter vehicles. This
will ensure lower fuel consumption and exhaust emission with optimum performance and cost. This joint project works in parallel with our holding’s sustainability plan.
 
Allied with the acquisition in early 2015, Ak-Kim Kimya incorporated Gizem Frit, the world’s third largest ceramic
frit producer, into its structure. We need to ensure parallel organic and inorganic growth to enable Ak-Kim to attain
its target of turnover amounting to US$ 1 billion by 2023. In this sense, Gizem Frit is one of the crucial steps taken
by the Company. Our investments in powder dye and inkjet continue to ensure Gizem Frit offers a wider range of
products to customers in the coating sector.
 
Ak-Kim’s ultrafiltration module production, consisting of perforated fibers, is just one of the Company’s projects
that were deployed for production in 2015. With this module, developed by the Company through its experience
and market know-how in water treatment, advanced physical purification is achieved without transforming the water’s chemical properties. Rapidly declining water sources mean that water treatment and recycling are vital.
We aim to start harvesting the fruits of this investment in 2016.
 
The common refining project, constructed for joint usage in replacement of the refining facility used by our factories
in Yalova, became operational in 2015. The facility is monitored online, 24 hours a day, by Yalova Provincial Directorate of Environment and Urbanization. The waterrefining project, which is one of Akkök’s sustainability
projects, progresses in accordance with the purposes of efficient usage of water sources, and attaining the most appropriate conditions for the environment.
 
As for the real estate sector, Akiş REIT continues to develop projects enhancing quality of life. As Shopping
Mall investments reached a certain saturation level, a tendency has cropped up towards a new business model
called street retail. Akiş is developing street retail projects on Bağdat Street. The old buildings in Şaşkınbakkal,
Caddebostan, Suadiye and Çatalçeşme were bought and re-designed. Accordingly, operations to develop commercial real estates are ongoing. Improvement and awareness-raising works continue in Akkök Holding, Akmerkez, Akbatı and Akasya. In the meantime, Akiş REIT raised its shareholding in SAF REIT.
 
Operating in the energy sector, and growing by activating 10 new power plants in the past 6 years, Akenerji has
1292 MW installed capacity as of 2015 year-end, and the Company focused on benefiting from this installed capacity
at an optimum level. Upon completion of the feasibility works for the Ayyıldız Wind Power Plant, activated in Balıkesir – Bandırma in 2009, the capacity enhancement works kicked off. As a result of these investments, the
current capacity of 15 MW is expected to reach 28.2 MW. While 30% of Akenerji’s total installed capacity is composed of renewable resources, Akenerji will continue to make use of investment and project opportunities in
renewable energy. In 2015, Akenerji further commenced engagements pertaining to energy efficiency projects and
consultancy. The Company is up for partnering other group companies, non-group companies, plazas, shopping malls
and houses in terms of energy saving.
 
Operating in informatics, our company Aktek aims to develop new projects and make investments by means
of projects to be developed by employees within the company. It is also open to innovative ideas coming from
external entrepreneurs, as well as being a corporate solutions partner. To this end, the “Aktek Garage” project
was initiated in 2015, and negotiations with various individuals coming up with ideas were kicked off on many
projects.
 
Akcez maintains technology and infrastructure investments to harmonize with the liberalization of the electricity
distribution and retail sector, and to enhance efficiency.
 
At Akkök Holding, we closed 2015 with investments worth US$ 354 million, and we plan to sustain such investments
for 2016. Our ongoing innovation and efficiency based projects will generate results to close Turkey’s current account deficit. I would like to extend my gratitude to all of our employees, business partners, shareholders and all of our stakeholders, who contributed to our successful results within Akkök Holding throughout 2015.

Sincerely,

Ahmet C. DÖRDÜNCÜ
Chief Executive Officer

 
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