Annual Report, 2001

Transcription

Annual Report, 2001

OYAK
ANNUAL REPORT 2001
1
OYAK HIGHLIGHTS
2001
2000
(BILLION TL)
(BILLION TL)
CHANGE (%)
ACTUARIAL PROFIT
TOTAL LEGAL BENEFITS PAID
TOTAL SOCIAL BENEFITS PAID
594,382
55,622
53,374
217,385
42,567
46,887
173.4
30.7
13.8
RATE OF RETURN (%)
NUMBER OF MEMBERS
94.9
192,937
55.4
178,727
71.3
8.0
635,999
3,453,216
18,745,643
1,267,921
305,561
5,154,101
326,661
3,020,601
9,233,815
752,476
247,230
1,635,943
94.7
14.3
103.0
68.5
23.6
215.1
16,586
12,572
31.9
79
206.3
2001
(THOUSAND USD)
475,219
44,471
42,674
A - OYAK GROUP COMPANY HIGHLIGHTS
PRE-TAX PROFIT
TOTAL GROSS SALES (1)
TOTAL TRANSACTION VOLUME (2)
TOTAL SHAREHOLDERS’ EQUITY
TOTAL TAXES PAID
TOTAL ASSETS
TOTAL NUMBER OF EMPLOYEES
508,493
2,760,909
14,987,480
880,766
244,302
3,580,313
B - OYAK FINANCIAL INVESTMENT HIGHLIGHTS
RETURN ON FINANCIAL INVESTMENTS
242
193
(1) The total of gross sales revenues for production and sales companies.
(2) Total transaction volume of Oyak Bank, Oyak Menkul De¤erler and Halk Leasing.
CPI INCREASE (%)
USD/TL (AVERAGE)
USD/TL (YEAR-END)
2001
2000
68.5
1,250,754
1,268,115
39.0
631,701
671,765
OYAK’S COMMON VALUES
The common values that direct our behavior, decisions
and business goals:
Integrity • Transparency •Innovation • Excellence
Mutual Respect • Accountability • Justice
Competitiveness • Member and Employee Satisfaction
OYAK
ANNUAL REPORT 2001
2
CHAIRMAN’S MESSAGE
Y. Selçuk Saka
(Ret.) Lieutenant General
Chairman
Since 1961, OYAK has
created added value
at an increasing rate
for its members while
also making important
contributions to
Turkey’s national
economy.
OYAK: A forty-year-old success
story
Esteemed OYAK members, OYAK
employees, and all our friends,
I take great pleasure and pride in
presenting this report of our 40th
year of operation.
OYAK, the Turkish Armed Forces
Pension Fund, regards integrity and
transparency as the foremost of its
shared values. Since 1961, the Fund
has created added value at an
increasing rate for its members while
also making important contributions
to Turkey’s national economy.
All of our investments, which we
structure and manage taking a
multi-sectoral group approach,
posted successful results in 2001.
The overall picture of these results is
extraordinarily favorable from the
standpoints of production, sales,
exports, taxes, and employment. A
thoroughgoing reorganization of our
services wing is not only making it
possible for us to provide steadily
improving service but has also quickly
led to an increase in our members’
satisfaction.
Rising performance even under
extraordinary conditions
2001 will be remembered as a year of
extraordinary economic conditions.
Turkey suffered serious losses in the
course of the economic downturn of
2000-2001: its GNP shrank 9.4% in
the latter year, its banking sector
sustained the most radical changes
experienced in nearly a century, there
was an exceptional increase in
unemployment among white-collar
workers, and capacity utilization rates
were down by huge margins in nearly
every sector.
OYAK
ANNUAL REPORT 2001
3
CHAIRMAN’S MESSAGE
Shocked by the terrorist attacks
against the United States on
September 11th, the world staggered
under the resulting upheavals in its
political and military balances. The
terrorist acts and their ensuing
developments deeply affected the
global economy during the last
quarter of 2001.
It was in such a context that OYAK
completed its 40th year of operation
posting an actuarial profit of
TL 594 trillion. These results, which
represent a year-on increase of
173.4%, are concrete evidence that
the assets under OYAK’s
management can be skillfully
managed even under the worst of
conditions. These results reaffirm and
underscore OYAK’s exceptional place
among Turkey’s biggest industrial and
services groups.
In an extraordinary economic
environment plagued by high inflation
in 2001, OYAK nevertheless managed
to provide its members with real
earnings by paying out an average
return of 94.9%.
An increasingly greater
contribution to the national
economy as well as to its members
OYAK is a company whose
contributions are important not just
to its members but to the national
economy as well. OYAK’s subsidiaries
are active in the areas of financial
services, automotive, cement, foods
and chemicals, and services. In 2001,
they all posted successful results in
terms of their sales and exports.
OYAK’s subsidiaries had aggregate
gross sales proceeds amounting to
TL 3,453 trillion in 2001–a figure that
represents a 14.3% increase over the
previous year’s sales proceeds of
TL 3,020 trillion. The Group’s total
exports for the year were worth
USD 904 million. The Group is
currently providing employment for
16,586 people in its subsidiaries.
Since the day it was founded, OYAK
has been a trustworthy partner in
every sector in which it has taken a
stake. Through the ventures that it
has undertaken, OYAK has led the
way in bringing foreign investment
into Turkey.
A leading role in financial services
In line with its strategic decisions,
OYAK is building up its position and
strength in Turkey’s financial services
industry. In what is the most
important step taken in this direction,
in 2001 the Group acquired
Sümerbank and merged it with Oyak
Bank. OYAK continues to expand its
presence in different branches of the
financial services industry, banking
being the foremost of them. The
Company is determined to firmly
establish its position among the
sector’s leaders.
Shaping the future
OYAK foresees that the Turkish
economy will emerge from the
current economic crisis and return to
the path of positive growth in a series
of stages that will be spread out over
2002 and 2003.
In line with this expectation, OYAK is
continuing its efforts to develop its
presence in a number of production
sectors. At the same time, OYAK is
redesigning and reorganizing all its
management and work processes to
accommodate an economic
environment in which lower rates of
inflation are the rule in order to be
able to continue providing its
membership with real returns as
required by its social assistance
mission. The principles of
effectiveness and productivity make
up the foundation of this effort.
Conviction and determination
I believe that we possess all the assets
that are needed in our struggle to
make OYAK a global and competitive
name. The most important of those
assets are our high-quality human
resources, our professional
management, our sound financial
structure, and our national and
international partnerships. And
together with them all, there is our
absolute belief in the value of science
and our determination to make it the
guide of all our activities.
We are engaged in an effort to make
the OYAK name synonymous with
world standards of quality, originality,
and trustworthiness in whatever
endeavor it may become involved. In
closing, I want to thank everyone
who joins us in this effort.
Y. Selçuk Saka
Chairman
OYAK
ANNUAL REPORT 2001
4
CHIEF EXECUTIVE OFFICER’S MESSAGE
Þerif Coßkun Ulusoy, Ph.D.
Chief Executive Officer
In addition to
celebrating its 40th
year in 2001, OYAK
also exhibited a
picture of very
successful financial
performance under
these extraordinary
economic conditions.
A difficult and critical year
Both economically and politically, 2001
was a difficult and critical year. It was
an exceptional year, one in which
macroeconomic balances worsened
and efforts had to be made to
completely reestablish them with
external support. It was also a year in
which the financial sector embarked
upon a process of enormous change,
in which companies in different parts
of the real economy suffered distress,
and in which mergers and acquisitions
proliferated. Not only was there a
serious increase in unemployment but
the country’s gross national product
also shrank by a significant amount.
In September of the year, terrorism
became entrenched at the head of
world and national agendas. The
terrorist attacks on the United States
that were committed on September
11th wrought deep changes in the
ways that everyone perceives risk.
The attacks caused far more damage
to the global economy than was even
initially supposed.
In addition to celebrating its 40th year
in 2001, OYAK also exhibited a picture
of very successful financial performance
under these extraordinary economic
conditions. The Company posted an
actuarial net profit of nearly half a
billion dollars in 2001, a figure that
makes it a world-class institution. But
in addition to the material gains that
it provided, we regard 2001 as a
turning-point in OYAK’s history from
the standpoint of the Company’s
transparency, corporate identity, and
professional management.
The strategies that safeguarded
OYAK
Thanks to the strategies that it
implemented and to the measures that
it took in 2001, OYAK has emerged
unwounded from the recession. It was
successful in all its business activities
and fulfilled its commitment to pay its
members a return far in excess of
expectations. The same strategies and
policies also made it possible for the
Company to manage its assets and
investments in the best possible way.
OYAK
ANNUAL REPORT 2001
5
CHIEF EXECUTIVE OFFICER’S MESSAGE
In the second half of 2000, the
Company introduced a number of
extremely important measures aimed
at restricting and rationalizing its cash
outflows. An important step in this
process involved transferring to
Vak›fbank, under a cooperative protocol
agreement, loans that the Company
extends to its members. These loans
account for an important share of our
yearly cash disbursements and securing
the resources for them from outside
the Company had an extraordinarily
positive effect on our cash balance.
This action made a big contribution
towards the liquid position that we
were in when the 2001 crisis hit.
The comprehensive restructuring
project that we introduced in 2000
for the purpose of extending effective,
productive, and professional
management throughout the Company
has equipped OYAK with important
competitive advantages and also
protected the Company during the
stormiest days of 2001. Thanks to its
ongoing productivity and effectiveness
programs and to its member-focused
approaches, the Company was ready
for the new market conditions when
it was confronted by them.
OYAK’s gains
Even more important than high
financial performance, OYAK’s
strategies resulted in a number of
important gains that will be shaping
the Company’s future.
In 2001, OYAK opened itself up as a
company in a campaign to bring itself
closer to the Turkish people and to
Turkish public opinion. In the years
since its founding, OYAK’s public
image tended to be that of an
introverted institution closed to the
outside. In 2001, OYAK launched a
public relations campaign that focused
on company transparency and
introduced itself to audiences at home
and abroad. 2001 was also the first
year that OYAK published an annual
report that was intended for general
release. Under the communications
strategy that OYAK has put into effect,
the public was made as knowledgeable
as members about the enormous
economic value that the Company
implied for the Turkish economy and
the great potential that it embodied. In
this process, the Company developed
close relations with the outside world.
With the strength and support it
derives from its members, in 2001
OYAK made a number of strategic
growth decisions. The most important
of these decisions was related to the
financial services industry. The
advances made in this direction in
2001 are already making the Company
one of the leading players in Turkey’s
financial sector. OYAK regards that
sector as one of the most important
axes of its future growth.
The customer-focused approach has
become widespread in the Company’s
services wing. Projects aimed at
increasing service quality were quick to
achieve success and OYAK has made
much progress in the direction of
drawing closer to its members and
providing them with more effective
and modern service. The Company’s
efforts to accomplish this have been
made in cooperation with Turkish and
foreign consultancies and the Services
Unit and its service processes have
been completely overhauled. The
efforts are continuing without letup.
OYAK is also making advances in
information technology as well. A wide
range of projects is being carried out
on many levels to satisfy the dictates of
modern technology in everything from
member services to rationalization of
our subsidiaries’ management.
Our goal is to safeguard the long-term
well-being of our members and
continuously provide them with real
returns by managing our subsidiaries
within an entirely integrated process.
The potential of change
Turkey has an economy that is open to
change and is dynamic in its structure.
The upheavals taking place at the
global level last year have increased
the strategic importance of our
country. In such an environment,
OYAK is absolutely committed to
developing the assets it has and to
increasing both consolidated market
share and profitability by creating
bigger business volumes in those areas
in which it is active. Nevertheless we
must acknowledge that 2002 is going
to be a very difficult year, that the
level of earnings achieved in 2001
cannot be sustained to the same
degree under the conditions that will
prevail in 2002, and that we need to
be more realistic about shaping our
expectations as compared with 2001.
We are on the threshold of an
economic environment in which
economies of scale are going to
become important. The dimensions
that OYAK commands are such as
to give the Company significant
advantages. In addition to the buying
power wielded by our nearly 200,000
members, our 26 subsidiaries active in
a variety of sectors supply millions of
people with products and services from
thousands of outlets. These numbers
reveal the scope and scale of OYAK’s
influence. And the reality of that is the
most important factor determining the
path of OYAK’s future growth.
I conclude my remarks by offering
my thanks and respects to our
shareholders for the unstinting
confidence and support that made it
possible for us to create the changes
in OYAK dictated by the realities of the
present in 2001, to the members of
the Board of Directors, and to all of
the Company’s personnel for their
self-sacrificing efforts to please the
OYAK community.
OYAK
ANNUAL REPORT 2001
6
THE TURKISH ECONOMY
AN ASSESSMENT OF 2001 AND THE OUTLOOK FOR 2002
GNP*
(TL quadrillion)
179.5
126
78
1999
2000
2001
*based on current prices
Growth Rate
(%)
6.1
(6.1)
(9.4)
1999
2000
2001
A process of comprehensive
economic transformation
In the wake of the banking crisis that
hit late in 2000 and the ensuing
support from the IMF, in February
2001 Turkey found itself confronted
with an even more serious economic
crisis. These events turned the country
towards an effort to permanently
eliminate the basic causes of its
economic anomalies and weaknesses
and initiated a process of comprehensive
economic transformation.
The February crisis was triggered by a
political spat, in response to which
there was a surge in market demand
for foreign currency combined with a
severe shortage in Turkish lira liquidity.
On February 20th, overnight interest
rates shot up to 2,058% and the
increasingly worsening liquidity crunch
caused the payments system, centered
around public-sector banks, to lock up.
With the interbank market at risk of
grinding to a halt, the economy’s
bureaucrats frantically searched for a
solution. On February 21st, the
existing rule of adhering to "previously
determined movements in exchange
rates" was abandoned and the Turkish
lira was cut loose to fend for itself.
On February 22nd, the dollar rose
39.8% against the lira; on the 23rd, it
increased another 12%. In just two
days’ time, the Turkish lira lost 36.1%
of its US dollar value.
A serious slump in general
economic activity
It was not until the middle of May
that exchange rates began to stabilize
again; but because of the
uncertainties and insecurities that they
caused, markets became inoperable
and there was a serious slump in
general economic activity. The collapse
experienced in the banking sector
gave impetus to the spread of the
economic slowdown. Transaction
volumes and lending activities of every
sort experienced sudden and sharp
declines.
In the wake of the November and
February crises, the Turkish economy
entered a period of deep recession.
Figures now put the overall
contraction in 2001 at 9.4%. Nearly
every sector registered a contraction:
indeed, the only one that showed any
sign of growth was tourism. And
because of the recession it
experienced in 2001, the Turkish
economy also found itself having to
confront its serious problem of
structurally ingrained unemployment.
According to published government
figures, the official unemployment
rate in the last quarter of 2001
reached 10.6%. When one factors in
the realities of underemployment in
Turkey, this means that the actual
unemployment rate probably topped
16%. One crucial issue that will need
to be addressed by economic
authorities as the economy begins to
recover in the immediate term is
certain to be that of reducing this
structural unemployment.
"Transition to a strong economy"
Soon after the Turkish lira was set
free, important changes took place in
the echelons of economic management.
In March, Kemal Derviß, a World Bank
vice president, joined the government
as a new minister of state responsible
OYAK
ANNUAL REPORT 2001
7
THE TURKISH ECONOMY: AN ASSESSMENT OF 2001 AND THE OUTLOOK FOR 2002
In the wake of the
banking crisis that hit
late in 2000 and the
ensuing support
from the IMF, in
February 2001
Turkey found itself
confronted with an
even more serious
economic crisis.
These events turned
the country towards
an effort to
permanently
eliminate the basic
causes of its
economic anomalies
and weaknesses and
initiated a process of
comprehensive
economic
transformation.
for the economy. In May, Mr. Derviß
announced the launching of the
"Transition to a Strong Economy"
program that had been hammered out.
The biggest support for the financing
of this program came from the IMF.
Coming forth with its third
supplementary support in just
eighteen months, the Fund raised the
credit limit extended to Turkey about
sixteen-fold. Altogether, the
supplementary credit facility totaled
USD 14 billion.
Even after the policy of managed
exchange rates was abandoned on
February 22nd, any hoped-for quick
restoration of stability to markets
proved to be impossible and exchange
rates remained extremely volatile for
quite a long time. Responding to the
uncertainties provoked by the terrorist
attacks in the US on September 11th,
that volatility worsened with exchange
rates peaking at their highest levels
for the year in the second half of
October.
Fourth-quarter break in exchange
rates and inflation
In the months that followed, the
upward pressure on exchange rates
subsided as Turkey made clear its own
attitudes towards the attacks on the
US and expectations abounded that
additional help would be forthcoming
from international financial institutions
in 2002. By the end of the first
quarter of 2002, exchange rates had
reverted to their pre-July 2001 levels.
On the inflation front, there was a
rapid surge in prices stemming from
the huge rises in exchange rates and
from higher costs due to increases in
public-sector determined prices.
At year-end 2001, the 12-month
increase in the wholesale price index
was 88.6% while the consumer price
index was up a comparatively
"modest" 68.5%.
Developments in the stock of
public debt
As the financial system crisis ran its
course, it became necessary to
restructure the banking system to
enable it to cope with the effects of
the realization of both exchange rate
and interest rate risk on the one hand
and, on the other, to issue paper to
cover public banks’ accumulated socalled "duty losses". As a result of
these developments, there was a
huge increase in the total stock of
domestic public debt in 2001.
As of the end of 2001, the total stock
of public debt stood at USD 84.9
billion. More than half (52.6%) of that
amount was the result of non-cash
GDIs issued to rehabilitate the
financial system and to bring the "real"
liabilities ("real" because it now
included public banks’ hitherto offbudget losses) under more effective
management.
On the foreign debt front, the ability
to tap external sources of funding was
limited by the crises that wracked the
domestic economy. Partly because of
this, the total stock of foreign debt
declined about a billion dollars during
the first nine months of the year and
stood at USD 118.8 billion as of the
end of September. Some 59% of that
OYAK
ANNUAL REPORT 2001
8
Imports
(USD billion)
54.2
40.7
1999
40.5
2000
2001
debt belonged to the public sector
with the private sector holding the
other 41%. Looking at the maturity
structure of this debt, it is seen that
only 17.5% of it was short-term, with
medium and long-term obligations
making up 82.5% of the total.
Maastricht targets for total public
indebtedness
At year-end 2001, Turkey’s gross
national product (GNP) stood at
TL 179.5 quadrillion. In other words,
the total stock of public debt at that
time was equal to 100% of GNP.
The government has declared its
commitment to the goal of reducing
this ratio within four years’ time
to the 60% level prescribed in the
European Union’s Maastricht criteria.
Exports
(USD billion)
31.2
26.6
1999
27.5
2000
2001
The inclusion of the Maastricht criteria
in the government’s programs and in
the letters of intent submitted by it
to the IMF is regarded as a
confirmation of the government’s
determination to pursue Turkey’s
membership in the EU.
Improvement in the foreign trade
deficit
Industrial output in Turkey is highly
dependent on imported raw materials
and semifinished goods. Because of
the resulting contraction in demand
and production, the slump
experienced by the national economy
in 2001 had the effect of significantly
improving the country’s external
balance. The foreign trade deficit in
2001 was down 65.1% (USD 17.4
billion) from its previous year’s level.
This overall contraction is the net
result of a 25.7% (USD 14 billion)
decline in imports that appears to
have significantly outweighed a 13.2%
rise in exports.
After the second wave of crisis hit in
February, the Turkish lira began to
lose value in real terms. This had the
effect of making Turkish export goods
more price attractive with the result
that as of year-end 2001, the
country’s exports surpassed the
psychological barrier of thirty billion
dollars for the first time, weighing in
at USD 31.2 billion.
The outlook for 2002
With the Turkish economy already
reeling from the impact of two
financial system crises in less than half
a year, the worldwide "lockdown" that
ensued in the wake of the terrorist
attacks on the United States in
September 11th confronted the
government with an urgent need for
about ten billion dollars in additional
financing. In early February 2002, a
new stand-by agreement was signed
with the IMF under whose terms
Turkey was to be provided with about
sixteen billion in credit facilities over a
three-year period. This agreement
essentially put paid to any worries over
the serviceability of the national debt.
Two of the primary goals that the
government has committed itself to
are a thoroughgoing reform of the
banking system and reducing the total
stock of domestic debt, which
approached 60% of GNP as of the
end of 2001, to within manageable
levels by means of strict fiscal policies.
Two other avowed priorities are
improving the public sector’s efficiency
OYAK
ANNUAL REPORT 2001
9
The strategies and
targets for 20022004 are centered
around safeguarding
the economy against
the possibility of still
more crises and
laying the
foundations for
sustainable growth.
and effectiveness and increasing the
role of the private sector in the
national economy.
While pursuing efforts to eliminate the
structural impediments that beset the
Turkish economy, the government has
also set for itself the goal of reducing
the 12-month rate of consumer price
inflation from its 73.1% level in
February 2002 to 35% by the end of
the year. To achieve this goal, the
Central Bank is to continue
implementing a tight-monetary policy.
The most recent letter of intent
submitted to the IMF sets a year-on
growth rate of 3%. As of this writing,
market expectations are that the real
growth rate will be something over
2% and that inflation will be in the
40-45% range. The materialization of
these expectations as well as of the
target of a non-interest budget
surplus of 5.4% (an issue of critical
importance insofar as the sustainability
of the national debt is concerned) will
be dependent on making all the cuts
in expenditures that have been called
for. As for the tax revenues that the
budget expects, it would be more
realistic to assess their plausibility
together with GNP projections. Only if
overshooting in inflation and
undershooting in growth were to
balance one another would there then
be a strong possibility of achieving a
3% rate of GNP growth in 2002.
The strategies and targets for
2002-2004 are centered around
safeguarding the economy against the
possibility of still more crises and
laying the foundations for sustainable
growth. The program has three basic
aims that are intended to increase the
economy’s resilience to shocks and to
reduce its fragility in the face of crisis:
i) To continue with the existing freefloating system of exchange rates and
shift over to inflation-targeting in the
second half of 2002 once the
conditions have been created in which
a significant decrease in inflation can
be achieved,
ii) To accelerate the restructuring of
the banking system,
iii) To achieve a viable position in the
public debt.
The internal as well as the external
uncertainties in the growth target
make it hard to be overly optimistic
about all of this. In particular, any
delays in the resumption of growth
and any laxities in making effective
use of social assistance projects are
going to exert severe social pressure
on the program and bring its
sustainability into question.
Taken all together, these eventualities
could have the effect of limiting any
rapid falls in short-term interest rates
in 2002. However so long as
expectations that movements in
exchange rates will remain stable turn
out to be true, the effect on markets
will remain positive and can contribute
towards achieving budget and
inflation targets even if the Turkish lira
does appreciate within reasonable
limits throughout the year, as the
government indeed expects it to.
OYAK
ANNUAL REPORT 2001
10
OYAK: 40 YEARS OF SUCCESS
OYAK regards the continuous satisfaction and welfare of its members
and employees as the reason for its own existence. In all the decisions
it has made and ventures it has undertaken in the course of forty years,
it has always acted with this idea in mind.
1961
OYAK is founded on
1 March 1961. The
same year, the
Company acquires a
stake in Goodyear,
Turkey.
1966
The Company successfully completes
its first ventures into satisfying
members’ needs for housing by
turning over to them the keys to
their new dwellings in Ankara and
‹stanbul.
1963
OYAK establishes
Ordu Pazarlar›.
These markets
catering to military
personnel and their
dependents are the
first example of a
chain store
operation in Turkey.
The same year,
OYAK expands its
investments by
acquiring Çukurova
Çimento and
Hektaß.
1978
OYAK acquires a
stake in Omsan, a
leading company in
the transport
industry.
1970
OYAK’s membership
reaches 77,000. Since the
year it was founded, the
US dollar value of the
retirement pension it pays
has increased twofold.
1969
OYAK posts its first actuarial
profit in just eight years since it
was founded and begins paying
its members dividends. The
same year, the Company signs
a partnership agreement with
the giant automotive
manufacturer, Renault, while
also continuing its investments
in the cement industry by
acquiring stakes in Bolu
Çimento, Ünye Çimento, and
Mardin Çimento.
1967
OYAK founds MA‹S, its first
investment in the automotive
sector. The same year, it also
undertakes its Oyak Sigorta
(insurance) and Tukaß (canned
foods) investments.
1975
The Company acquires a
stake in Aselsan
(electronics).
1982
Deciding to pursue growth
in the food industry, the
Company acquires stakes
in Eti Pazarlama and Tam
G›da. Oyak ‹nßaat, a
construction company, is
set up to better address
members’ housing needs.
OYAK
ANNUAL REPORT 2001
11
40 YEARS OF SUCCESS
1984
Paralleling
developments in
Turkey’s capital
markets, the
Company’s brokerage
house Oyak Menkul
De¤erler, which was
originally set up in
1982, commences
operations.
1993
OYAK transfers a
part of its
shareholding
interest in MA‹S to
Renault, its French
partner in the
automotive sector.
1990
OYAK’s
membership
reaches 117,000.
The Company
acquires stakes in
First National Bank
of Boston and in
Selyak (ELF).
2000
OYAK’s membership reaches
179,000. The Company is
reorganized and its
management principles are
restructured. Radical changes
are made in management
positions. The Company begins
cooperating with Vak›fbank in
its lending services. Since the
Company was founded, the
US dollar value of the
retirement benefits it pays its
members has increased tenfold.
1994
The Company
acquires full
ownership of Türk
Boston Bank
(formerly First
National Bank of
Boston).
1992
OYAK acquires stakes in
two privatized cement
companies, Ni¤de Çimento
and ‹skenderun Çimento.
1989
OYAK sets up its voluntary
additional contribution
retirement annuity system,
which provides its members
with a way to secure
additional income after
retirement.
1995
AXA OYAK Hayat Sigorta,
a life insurance company, is
set up in a joint venture
with the AXA Group. The
same year, OYAK’s first
mutual fund is launched.
2001
OYAK’s membership reaches
193,000. The Company’s
restructuring is completed.
Sümerbank, YADAÞ, and Yaßar
Yat›r›m are acquired and the
processes of merging
Sümerbank with Oyak Bank and
Yaßar Yat›r›m with Oyak Menkul
are begun. New projects are
launched in housing
construction. Mehmetçik
Sigortas›, a group life insurance
program for military personnel
that was inaugurated in 2000,
is expanded. With corporate
communications and
transparency becoming more
and more important in OYAK,
the Company publishes its first
annual report for the year 2000
that is intended for general
public release.
1999
All of the Company’s
insurance activities are
brought together under the
roof of AXA OYAK Holding,
a joint venture with AXA.
1998
The Ordu Pazarlar› supermarket chain
is renamed and rebranded as OYPA
and begins serving the general public.
1996
Türk Boston Bank is renamed
Oyak Bank. OYAK members
are offered three new
services: Retirement Monthly
Pension System, Housing
Savings Fund, and Combining
the Reserve Officer Service.
OYAK
ANNUAL REPORT 2001
12
OYAK: ACTIVITIES AND SERVICES IN 2001
Actuarial Profit
(TL Billion)
594,382
OYAK completed 2001 posting an
Information concerning the services
actuarial profit of TL 594 trillion on all
that OYAK provided its members and
its activities. As of year-end, the
the Company’s performance of those
Company had nearly 193,000
services are summarized below.
members, to whom it paid a return
of 94.9%.
Assistance provided to OYAK
members or to their beneficiaries
217,385
2000
2001
The Company and its subsidiaries
Retirement benefits: Retirement
achieved satisfactory results in all their
benefits are entitlements received by
areas of endeavor while also
members who have paid the
maintaining a solid actuarial balance.
Company their dues for at least ten
OYAK was chosen by the business-
years’ time. Interest accrues on the
oriented daily Dünya as the year’s
dues that accumulate during the
most successful company in 2001
course of one’s membership, adding
while its CEO, Coßkun Ulusoy, was
to the value of a member’s account.
designated "Professional Manager of
Retirement benefits represent OYAK’s
the Year" by two magazines,
basic product, which is supported
Ekonomist and Ekovitrin.
by supplementary benefits depending
on the Company’s financial results.
A group-wide reorganization and
In 2001, OYAK paid a total of
restructuring undertaken in the
TL 35.9 trillion in retirement benefits
second half of 2000 was quick to
to 3,011 of its members.
produce results by significantly
OYAK Headquarters, Ankara
improving efficiency and effectiveness
Those who have been members for at
at every level in the Company.
least three but fewer than ten years
A member-focused approach was also
and who are not yet entitled to
introduced to every aspect of service
receive retirement benefits are
from initial design to final
allowed to reclaim all the dues they
presentation. The "firsts" that quickly
have paid (called a "dues refund") if
emerged from this effort such as the
they withdraw from the system. In
call center and the web portal made
2001, OYAK paid 322 members a
important contributions towards
total of TL 187.4 billion as dues
increasing OYAK member satisfaction.
refunds.
In its capacity as a social security and
Retirement annuity: Once they are
retirement investment fund, OYAK
entitled to receive retirement benefits,
provides its membership with a variety
one of the options that OYAK
of services. In 2001, the Company paid
members have is to allow some or all
out a total of TL 109 trillion to
of the accumulated amount to remain
members under these services.
with the Company and to receive
OYAK
ANNUAL REPORT 2001
13
ACTIVITIES AND SERVICES IN 2001
Annual Rate of Return
(%)
regular payment of a retirement
(and their spouses and children) who
annuity in lieu of it.
must undergo major medical
treatment.
94.9
55.4
68.5
39
2000
2001
CPI Index
Number of Members
178,727
192,937
In 2001, OYAK paid a total of
TL 14.2 trillion as retirement annuities.
In 2001, the Company extended
As of 20 October 2001, the date on
28,553 loans of both kinds amounting
which the year’s last annuity payments
to a total of TL 19.8 trillion.
were made, the number of members
taking advantage of this system was
Housing loans and housing
21,667. Members can withdraw from
construction: OYAK helps its
the annuity system after having
members become home owners by
completed their third year in it.
undertaking housing construction
In 2001, 872 members chose to
projects and by providing them with
withdraw in this way and they were
long-term financing and with
paid a total of TL 1.5 trillion.
allocations of land.
Death and disability benefits: Part
In 2001, OYAK handed over to
of the dues paid by a member are
members the keys to 240 dwellings
earmarked as a risk premium
that it constructed in Ankara under its
payment, by means of which the
Çayyolu Phase 10 project. Work
member is insured against death and
continues on the OYAK Zirvekent
disablement. In 2001, OYAK paid out
project, which is being developed
TL 2.3 trillion as death benefits for
with the incorporation of the most
312 members while 221 members
modern techniques and facilities.
received a total of TL 1.4 trillion in
disability benefits.
In 2001, OYAK extended TL 25.2
trillion to members in the form of
2000
2001
Social benefits provided by OYAK
2,419 housing loans. The Company
to its membership
also spent TL 2.7 trillion on housing
Loans and extraordinary loans:
construction.
Loans are made available from
OYAK’s resources to permanent
Lump-sum loans of up to 80% of
members at twice the value of their
members’ reserves: To help them
base monthly salary. These loans are
prepare for their approaching
repayable in fixed payments at terms
retirement, members who have
of six, nine, or twelve months at the
completed at least 29 years of service
member’s option. Extraordinary loans
or who are to be retired within two
are made available to members who
years’ time for reasons of
have suffered losses as a result of
redundancy, can receive the
natural disasters and also to members
supplementary benefits and interest
OYAK
ANNUAL REPORT 2001
14
Total Legal Benefits Paid
(TL Billion)
55,622
42,567
components of their reserves as a
Other services provided for OYAK
lump-sum loan that will be set off
members
against their retirement entitlements.
Voluntary additional contribution
Such a loan cannot exceed 80% of a
retirement annuity system:
member’s reserve on the date it is
This system provides an opportunity
requested. In 2001, 281 members
to secure additional income to
took advantage of this option and
members who have withdrawn (or
were paid a total of TL 29.9 trillion.
are about to withdraw) from OYAK in
order to receive retirement benefits;
Commissary services: OYAK
to the spouses of members who have
operates a commissary store in Girne
joined the retirement benefit system
and a wholesale outlet and storage
on account of a spouse’s death; to
unit in Magosa in order to provide
OYAK permanent members on active
members on duty and military
duty who have been members for at
canteens in the Turkish Republic of
least ten full years; and to those who
Northern Cyprus with a complete
have worked for at least ten years, or
range of consumer goods that are
who have retired or were
suitable in quality and price. In 2001,
superannuated after having worked
Total Social Benefits Paid
the Company extended a total of TL
for at least ten years, at OYAK or at a
(TL Billion)
1.5 trillion in consumer credit under
company in which OYAK controls
the heading of commissary services.
more than a 50% stake.
2000
2001
53,374
46,887
Payments under this system are made
quarterly and in 2001 they included
an average rate of return of 95.3%.
As of December 2001, the twelvemonth rate of return stood at 87.5%.
2000
2001
OYAK
ANNUAL REPORT 2001
15
In line with its
ultimate aim of
providing its
members with a
fully-integrated
service platform,
OYAK opened its
Call Center and
updated its website
with the on-line
member services
section being made
operational.
Housing Savings Fund: This fund
three times the monthly salary on
was set up to make it possible for
which their dues payments are based.
OYAK members to save up the capital
During 2001, a total of TL 44.7 trillion
needed to buy a home. All permanent
in such credit was extended to
members who have not already taken
74,102 members.
out a housing loan or purchased
OYAK-built housing can join this fund.
OYAK Call Center: The OYAK Call
The fund presently has 55,452
Center went into operation in April
members and has accumulated a total
2001. Manned by six member
of TL 24.3 trillion in contributions. In
account officers, the center received a
2001, the rate of return secured by
total of 190,000 calls in the course of
the fund was 98.5%.
the rest of the year. Only 3,700
(fewer than 2.0%) of these calls were
OYAK mutual funds: OYAKFON-1 is
about complaints or criticisms.
the first mutual fund in Turkey set up
by a social security institution.
On-line member services:
OYAKFON-1 is a Type A Variable
OYAK’s website is located at
mutual fund. As of 31 December
www.oyak.com.tr. The content of the
2001, the fund had a total market
site was updated in 2001 and the
value of TL 3.8 trillion.
online member services section was
made operational. Members are able
Vak›fbank Overdraft and Fixed-
to get information and apply for a
Installment Consumer Credit:
variety of OYAK services and products
As an alternative to borrowing from
interactively over the internet.
OYAK, members can also borrow
from Vak›fbank up to the amount of
www.oyak.com.tr
OYAK
ANNUAL REPORT 2001
16
OYAK: AN ASSESSMENT OF GROUP ACTIVITIES IN 2001
Total Assets
(TL Billion)
5,154,101
1,635,943
2000
2001
Pre-Tax Profit*
(TL Billion)
635,999
326,661
2000
2001
*For OYAK subsidiaries and affiliates
A successful year for OYAK and its
subsidiaries
2001 was a successful year for OYAK
and its subsidiaries. At year end, the
Company’s 26 subsidiaries had total
assets worth TL 5,154 trillion and a
pre-tax profit of TL 636 trillion.
2001, the Company purchased
Sümerbank, which had recently been
reconstituted by the Banking
Regulation and Supervision Board by
merging into it six banks that had
been taken over by the Savings
Deposit Insurance Fund.
Financial services: A strategy for
growth
In 2001 OYAK made important
progress in line with its macro-level
strategy of pursuing growth in the
financial services industry by making
an acquisition that will serve as a
model not only for the Turkish
banking industry but for the national
economy as a whole.
After the completion of preparations
in 2001, Oyak Bank and Sümerbank
were merged on 11 January 2002
and given a new corporate identity
under the name of Oyak Bank.
Through its 149 branches, the new
bank is at the service of both
corporate and retail banking
customers with a broad spectrum of
products and services. Oyak Bank
ranks as one of the largest banks in
Turkey from the standpoint of total
assets.
The Company’s growth strategy in
financial services is aimed at making
OYAK a respected and assertive
player in the banking industry.
Providing both members and the
general public modern, reliable, and
transparent banking services using
extensive and alternative channels of
distribution is the bedrock on which
the Company’s strategy in the sector
is erected.
Another important step taken by
OYAK in the financial services industry
in 2001 involved the acquisition of
Yaßar Yat›r›m and its merger with
Oyak Menkul De¤erler, forming a
larger brokerage house.
OYAK’s presence in financial services
reaches back to the early 1990s and
its stake in Türk Boston Bank, whose
name was changed to Oyak Bank in
1996. Since then, the Bank has been
a respected name in corporate
banking in Turkey with its network
of 14 branches.
In keeping with its growth strategies,
OYAK has taken yet another step to
strengthen its presence in the
financial services sector. In August
OYAK acquisition of Sümerbank in the
Turkish press.
OYAK
ANNUAL REPORT 2001
17
AN ASSESSMENT OF GROUP ACTIVITIES IN 2001
OYAK’s growth
strategy in financial
services is aimed at
making the
Company a
respected and
assertive player in
the banking industry.
Providing both
members and the
general public
modern, reliable, and
transparent banking
services using
extensive and
alternative channels
of distribution is the
bedrock on which
OYAK’s strategy in
the sector is erected.
A project aimed at making OYAK
Anker Bank (Germany), Oyak Bank’s
foreign subsidiary, a more effective
player in international trade finance is
also completed. OYAK European
Finance, the Company’s financial
services subsidiary in Ireland,
continued to perform successfully in
2001, achieving respectable growth in
the volume of its business.
OYAK Portföy Yönetimi, the Group’s
portfolio management company,
registered significant growth in 2001.
As of year-end, the Company had
more than USD 92 million worth of
assets under its management. The
Company is currently providing
portfolio management services for ten
mutual funds.
OYAK’s insurance subsidiaries
meanwhile achieved significant
increases in their premium production
through an expansion of the agent
network. AXA OYAK Sigorta became
the first insurance company in Turkey
to break the TL 200 trillion barrier in
terms of premium production. AXA
OYAK Hayat Sigorta, which is the
other insurance subsidiary of the
Company and is engaged in life
insurance, once again became the
author of another innovation by
launching a project to provide
insurance coverage for all the Turkish
Armed Forces under the group life
insurance concept. Under this
program, the number of new
policyholders in the Company’s
portfolio has reached 270,364.
As it pursues its strategy of expansion
in the provision of financial services,
OYAK is determined to continue
taking advantage of investment
opportunities that present themselves
as Turkey’s banking sector undergoes
its restructuring and to ensure that
they contribute to the Company’s
organic growth through acquisitions.
The Company’s sound financial
structure and the funds under its
management offer important
opportunities to achieve growth in
this way.
A leader in the automotive
industry
Despite the negative picture in the
economic situation last year, OYAK’s
automotive industry subsidiaries
demonstrated successful
performance.
Oyak Renault, whose production is
backed by ISO 9001 certification,
produced 96,860 vehicles of which
86,287 were exported. The high
export volume achieved by the
Company last year once again made
it the leader in the country’s
passenger vehicle export segment.
For OYAK, such a result is a source of
pride. At a time when exports are a
matter of vital importance to the
national economy, OYAK encourages
all its subsidiaries to expand more and
more into world markets with their
products and services and it is
developing the strategies that are
needed to accomplish this.
MA‹S, the Turkish general distributor
of Renault automobiles, was also the
author of successful results in 2001.
MA‹S once again maintained its
OYAK
ANNUAL REPORT 2001
18
Total Sales
(TL Billion)
3,453,216
3,020,601
2000
2001
Total Transaction Volume
(TL Billion)
18,745,643
the development of a homeownership
financing model that is based on
long-term mortgages.
Progress in our other subsidiaries
OYAK’s subsidiaries in the areas of
cement, foods and chemicals, and
services also continued to make good
progress in 2001.
Under the overall project, which has
been dubbed "OYAK Contemporary
Homes", model dwellings were
constructed in 2001 for the purposes
of analyzing the effectiveness of
systems integration, testing materials,
and getting members’ feedback.
The results gained from this first
phase will be used as inputs for
the complete project, which is
slated to get underway before the
end of 2002.
In the cement group, a reorganization
is in progress that is aimed at
improving effectiveness. The
Company’s food industry venture
Tukaß, which is Turkey’s leading
producer of tomato paste, acquired
two new factories in 2001 for the
purposes of diversifying its product
line and of increasing its production
capacity. Tukaß, a very strong export
performer, is looking to further
expand its production of pre-cooked
and dehydrated foods, processed
cheeses, and canned goods.
Increased attention to housing
projects
Housing projects have gained great
importance in recent years among
OYAK’s priorities.
9,233,815
2000
leadership of the domestic market
with a 28.9% share, selling a total of
39,145 automobiles during the year.
2001
OYAK has identified "helping its
members become the owners of
suitable, prestigious, modern housing
before they are of retirement age" as
one of its most important goals in the
2000s. To achieve this, OYAK is
currently engaged in a variety of
activities on many different levels
including land procurement and
development, shell construction
system technologies, and cost
optimization. As a complementary
and essential element of these
activities, OYAK is also working on
A contemporary approach to
service that uses technology
effectively
OYAK’s ultimate goal is to provide its
services to members on an integrated
platform. In line with this, a number
of important projects were completed
in 2001 at the headquarters level and
among the subsidiaries.
The OYAK Call Center (accessible on
0312 415 6100) went into service in
April 2001. The services at the center
are provided by the specially trained
member representatives. By the end
of the year, the number of calls
received reached 190,000 and the
center quickly became widely known.
OYAK is determined to make use of
its call center as an effective channel
of distribution. The Company
continues to work on a broad range
of projects that will make it possible
to provide members with even better
services.
OYAK
ANNUAL REPORT 2001
19
In 2001, OYAK renovated its website,
which is located at www.oyak.com.tr,
adding an interactive dimension to it
as well. From the on-line member
services section, members can now
quickly and efficiently submit
applications for OYAK’s loan service,
retirement annuity system, 80% lumpsum loan service, Housing Savings
Fund, and voluntary additional
contribution retirement annuity
system.
In 2001, OYAK purchased YADAÞ, a
technology firm. The Company,
whose name was changed to OYAK
Teknoloji, has been restructured and
has begun operating under its new
identity. The basic duty of OYAK
Teknoloji, which employs a staff of
183, is to serve as a solution and
systems integration partner whenever
an OYAK subsidiary is in need of a
technological solution and to respond
in the most effective way possible to
their individual technological needs.
A transparent professional
structure that keeps the public
informed
In the course of its ongoing
transformation, OYAK’s aim is to be
an institution that is both professional
and transparent in everything it does.
Great success has already been
achieved in the reorganization that
has been going on for two years and
OYAK’s efforts and accomplishments
have drawn the attention and
admiration of Turkish public opinion
as well as in international circles.
Chosen the year’s Most Successful
Company in 2001, OYAK has become
an institution accepted as a model to
be followed by the armed forces of
other countries for their own
retirement funds.
take advantage of circumstances and
turn them into the driving forces
shaping OYAK’s present and future.
OYAK’s basic communications
strategy is to keep its members and
the public at large aware of the
decisions it makes and the actions it
undertakes, always keeping an eye on
the principles of continuity,
consistency, and transparency.
In much the same way, OYAK is
prepared not just for 2002 but for the
years beyond it as well. But the
Company is also fully aware that the
period immediately ahead–in which it
foresees that economic stability will
be achieved, that inflation will
approach single-digit figures, and that
there will be increasingly tougher
competition among all those who
supply the market with goods and
services–is not going to be an easy
one.
It is also certain that the form of
professional and effective
management being introduced
throughout the Company will further
enhance OYAK’s ability to fulfill its
basic commitments to its
membership.
OYAK is a company that is candid in
its dealings with its members, with
the 16,586 people that it employs
throughout its subsidiaries, and with
the entire Turkish public.
Looking ahead…
Social security is a business which
requires for long-term strategies and
vision.
With this universal truth in mind,
OYAK bases all its activities on longterm programs and strategies in
pursuit of its mission to guarantee the
well-being of its members.
Both the opportunities and the
challenges posed by 2001 have
opened the way for the Company to
achieve significant growth. OYAK
readied itself for the pending crisis in
line with its own expectations of its
approach. As a result, it was able to
With well thought out and sound
business strategies and models, OYAK
is a strong and well-positioned
company that is ready to create
added value both for its members
and for the Turkish economy.
OYAK
ANNUAL REPORT 2001
20
Finance
OYAK BANK
OYAK ANKERBANK
OYAK EUROPEAN FINANCE
OB MENKUL DEÚERLER
OYAK PORTFÖY YÖNET‹M‹
OYAK TEKNOLOJ‹
SÜMERBANK
OYAK YATIRIM VE MENKUL DEÚERLER
YAÞAR YATIRIM MENKUL DEÚERLER
AXA OYAK HOLD‹NG
AXA OYAK S‹GORTA
AXA OYAK HAYAT S‹GORTA
HALK LEASING
OYAK
ANNUAL REPORT 2001
21
OYAK BANK
Oyak Bank is one of the oldest of
OYAK’s ventures into financial
services. In 1990, the Company took
a stake in First National Bank of
Boston in Turkey and in 1994 it
became the Bank’s sole owner. In
1996, the Bank’s name was changed
to Oyak Bank. In the years between
that and 2001, Oyak Bank was an
active and respected provider of
corporate banking services in Turkey.
For Oyak Bank, 2001 marked an
important transformation and leap
forward. On August 10th of that
year, OYAK took over Sümerbank,
an institution whose shares were
then being held by the Savings
Deposit Insurance Fund and which
had recently been reconstituted by
the Banking Regulation and
Supervision Board by merging
together six banks that had been
taken over by the Fund. This
acquisition, which was in line with
the Company’s goal of pursuing
growth in financial services, was
followed by the efforts to merge
Sümerbank into Oyak Bank in the
late months of the year.
The merger formally took place on
11 January 2002 and the resulting
new Oyak Bank began serving both
corporate, retail and commercial
banking customers with a broad
spectrum of products and services
ranging from loans to foreign trade
financing through its 149 branches.
Important projects were launched
throughout the bank with the aim of
transforming the enhanced
effectiveness and advantages of
economies of scale arising from the
merger into a steadily growing
volume of business. Oyak Bank ranks
as one of the largest banks in Turkey
from the standpoint of total assets.
The Bank’s goal is to become one of
Turkey’s leading banks in the retail
banking segment as it already is in
the corporate banking segment.
In keeping with its organic growth
plans, in the last quarter of 2001
Oyak Bank also purchased from the
Savings Deposit Insurance Fund 38 of
the branches of Kentbank and
Etibank that were in strategically
important locations that fit into its
own business plans. These new
branches have been added to the
Oyak Bank network.
Date of establishment: 1984
OYAK’s participation: 1990
Field of activity: Banking
Number of employees: 572
Number of branches: 14 (After merger: 149)
OYAK’s share: 100.00%
www.oyakbank.com.tr
Oyak Teknoloji
Another important move made in
2001 was in the area of technology.
Along with its purchase of
Sümerbank, OYAK also acquired
YADAÞ Bilgisayar ve Yaz›l›m, a
computer technology and software
company. Renamed Oyak Teknoloji,
the Company has been restructured
and given a new mission and identity.
Oyak Teknoloji is a subsidiary of
Oyak Bank and employs a staff of
183. The mission of Oyak Teknoloji is
to serve as a technological solution
and integration partner for all of
OYAK’s subsidiaries and to respond in
the most effective way possible to
their individual technological needs.
Oyak Bank Financial Services
Group
Oyak Bank is the flagship company of
a financial services group that
includes subsidiaries engaged in
banking, insurance, financial services,
brokerage services, and portfolio
management.
Oyak Anker Bank (Germany)
With its headquarters located in
Koblenz, Oyak Anker Bank is at the
service of German and international
customers in all segments of banking
Field of activity: Banking
Number of employees: 2,824
Number of branches: 135
OYAK
ANNUAL REPORT 2001
22
with a particular emphasis on trade
financing and personal banking. The
Bank has six branches in Germany. At
year-end 2001, Oyak Anker Bank had
total assets amounting to DEM 535.6
million, with DEM 461.1 million in
deposits and DEM 391.4 million in
loans on its books.
Oyak European Finance
Oyak European Finance (OEF) is a
financial services company that has
been serving customers since 1994.
The Company’s headquarters are
located in the Dublin International
Financial Services Center and all its
activities are subject to Irish law.
OEF provides a broad range of
services from consultancy to
corporate and project financing. OEF
had assets amounting to USD 56.4
million in 2001 and a total of USD
34.7 million in loans on its books.
OB Menkul De¤erler
One of the sector’s leading
brokerage houses, OB Menkul
De¤erler was founded in 1998. Fully
authorized to trade and act as a
broker in all aspects of capital
markets, the Company serves a
clientele of Turkish and foreign
investors.
OB Menkul De¤erler’s headquarters
are located in ‹stanbul. The Company
employs Oyak Bank branches as its
agents. In 2001, OB Menkul De¤erler
wrote a total of TL 442.7 trillion in
business volume.
Oyak Portföy Yönetimi
Oyak Portföy Yönetimi is a portfolio
management company whose
services are targeted at corporate and
individual clients. The firm is a joint
venture of Oyak Bank and Oyak
Yat›r›m ve Menkul De¤erler (OYAK’s
brokerage house).
Oyak Portföy Yönetimi currently has
ten mutual funds under its
management. As of year-end 2001,
these ten funds had more than USD
92 million in resources that were
being managed by the Company.
OYAK YATIRIM VE MENKUL DEÚERLER
Field of activity: Trading of capital markets
instruments
Number of service points: 7 branches and
57 agencies
(31.12.2001 - TL billion)
Total assets: 15,537
Total equity: 7,712
Total trading volume: 15,755,281
Total taxes: 6,868
www.oyakmenkul.com.tr
Oyak Yat›r›m ve Menkul De¤erler is
OYAK’s oldest financial services
subsidiary. A securities brokerage house,
the Company was founded in 1982.
In 2001, Oyak Menkul De¤erler
purchased Yaßar Yat›r›m, which had
been taken over by the Savings
Deposit Insurance Fund. The
acquisition was formally merged into
Oyak Menkul De¤erler on 31
December 2001, after which the
Company began pursuing its activities
under the name Oyak Yat›r›m ve
Menkul De¤erler.
(Oyaktel), and through its call center
(Oyakborsa). The Company operates
two mutual funds: the Oyak Menkul
Type A Variable Fund and the Oyak
Menkul Type B Liquid Fund, the latter
of which went on sale in September
2001. As a result of the merger, the
Company had a total trading volume
worth TL 15.8 quadrillion as of the
end of the year.
The Company is at the service of
clients through its seven branches
(two each in Ankara, ‹stanbul, and
‹zmir and one in Mersin) as well as
through some of Oyak Bank’s
branches. In addition to these physical
service outlets, the Company is
successful in its use of alternative
channels of distribution, providing
rapid and effective service over the
internet (Oyaknet), by telephone
Oyak Menkul De¤erler’s acquisition
of Yaßar Yat›r›m in the Turkish press.
OYAK
ANNUAL REPORT 2001
23
AXA OYAK HOLD‹NG
At the beginning of 1999, OYAK and
the French AXA Group set up AXA
OYAK for the purpose of combining
their joint insurance activities under a
single holding company. After the
holding company’s inception, OYAK
and AXA transferred all their stakes in
insurers in Turkey over to the Holding.
AXA OYAK Holding currently controls
two firms: AXA OYAK Sigorta
(general insurance) and AXA OYAK
Hayat Sigorta (life insurance).
The Holding Company controls a
70.9% stake in AXA OYAK Sigorta,
which provides insurance products in
the fire, shipping, accident,
engineering, legal liability, and
agricultural branches. The Company
has an extensive distribution network
that reaches throughout Turkey.
Operating from its headquarters in
‹stanbul, AXA OYAK Sigorta has nine
regional offices (Ankara, ‹zmir,
Adana, Bursa, Samsun, Antalya,
Kad›köy, Bak›rköy, and ‹stanbul), four
liaison offices (Trabzon, Denizli,
Erzurum, and Diyarbak›r), a branch
operation in the Turkish Republic of
Northern Cyprus, and an extensive
network of agents. The Company also
makes use of Oyak Bank and
Finansbank branches as an alternative
channel of distribution. AXA OYAK
was the first insurance company in
Turkey to surpass the TL 200 trillion
mark in premium production.
A wholly owned subsidiary of AXA
OYAK Holding, AXA OYAK Hayat
Sigorta is an insurer that specializes in
life and health insurance products.
After undergoing a restructuring in
2001, the Company began using the
same distribution channels employed
by AXA OYAK Sigorta for its own
products and services. AXA OYAK
Hayat Sigorta has launched a project
to provide insurance coverage for all
Turkish Armed Forces personnel
under the Group life insurance
concept. Under this program, the
number of policyholders in the
Company’s portfolio reached 270,364
as of year-end.
In 2001, AXA OYAK Sigorta and AXA
OYAK Hayat Sigorta together handled
TL 262.2 trillion worth of business, a
56% increase over the figure
registered in 2000.
AXA OYAK S‹GORTA
Field of activity: Insurance (Non-life)
Number of service points: 372 regional
headquarters and representative offices,
1,295 agencies
(31.12.2001 - TL billion)
Total equity: 66,315
Premiums collected: 212,033
Total taxes: 30,350
AXA OYAK Holding’s share: 70.92%
www.axaoyak.com.tr
AXA OYAK HAYAT S‹GORTA
OYAK’s participation:1995
Field of activity: Insurance (Life - health)
Number of service points: 7 representative
offices, 344 agencies
(31.12.2001 - TL billion)
Total equity: 6,968
Premiums collected: 50,200
Total taxes: 4,450
AXA OYAK Holding’s share: 100.00%
www.axaoyakhayat.com.tr
HALK LEASING
Halk Leasing is one of Turkey’s
leading leasing companies. Combining
the strength arising from its
partnership structure and robust
capitalization with a team of
experienced professionals, Halk
Leasing provides Turkish and foreign
investors, private sector and
public-owned companies, and
industrial enterprises of every size
with fast, highly advantageous leasing
services, products, and support that
offer customers a broad spectrum of
alternatives that include currency
selection, shipping, insurance,
importation, and tax-relief options.
In 2001, Halk Leasing wrote
TL 31.6 trillion worth of business.
Field of activity: Leasing
(31.12.2001 - TL billion)
Total Assets: 87,804
Leasing income: 31,625
Total taxes: 1,302
OYAK’s share: 39%
www.halkleasing.com.tr
OYAK
ANNUAL REPORT 2001
24
Cement
ADANA Ç‹MENTO
ADANA KAÚIT TORBA
Ç‹MSA
BOLU Ç‹MENTO
ÜNYE Ç‹MENTO
MARD‹N Ç‹MENTO
ELAZIÚ Ç‹MENTO
OYSA N‹ÚDE Ç‹MENTO
OYSA ‹SKENDERUN Ç‹MENTO
OYAK
ANNUAL REPORT 2001
25
ADANA Ç‹MENTO
Adana Çimento manufactures a
variety of gray and white cements
that conform to TSE standards. One
of the top three companies in the
Turkish cement industry from the
standpoint of capacity, Adana
Çimento has an annual production
capacity of 2.2 million tons of clinker
and a cement milling capacity of
3.9 million tons. The company has
been awarded an ISO 9002 Quality
System Certificate and makes sales to
markets both in Turkey and abroad.
Adana Çimento has four ready-mix
concrete plants in Adana, another
four in Mersin, and one each in
Kahramanmaraß, Manavgat, and
Osmaniye as well as five mobile
concrete plants that can be called on
to serve on site requirements in the
construction of mass housing,
highways, and dams. The Company
also has bagging facilities in
Manavgat and Kahramanmaraß as
well as export-oriented storage and
loading units in ‹skenderun’s Sar›seki
port facilities.
In 2001 Adana Çimento invested a
total of TL 11.7 trillion in new
projects to improve quality, and
economize on energy and labor.
In 2001 Adana Çimento booked
USD 25.5 million as income from its
exports of cement and clinker. The
Company had gross sales amounting
to TL 114.8 trillion.
The company owns stakes in Adana
Ka¤›t Torba (In 2002, OYAK acquired
Iß›klar Holding’s shares and the
Company’s name was changed to
OYAK Ka¤›t Ambalaj) and in Ç‹MSA.
BOLU Ç‹MENTO
Bolu Çimento produces a variety of
cements conforming to TSE-specified
standards and has an annual
production capacity of 1.3 million
tons of clinker and 2.6 million tons
of cement.
Bolu Çimento has been awarded a
TSE ISO EN 9002 Quality System
Certificate. The Company has milling
and bagging, gravel, and ready-mix
concrete units in Ankara; ready-mix
concrete units in Adapazar›, Bolu,
Düzce and ‹zmit; and bagging and
ready-mix concrete units in ‹stanbulSamand›ra, and finally a gravel unit in
Bolu. The Company serves in Turkey’s
Black Sea, Marmara, and Central
Anatolia regions which represent a
considerably large area for a cement
company.
Bolu Çimento secured gross sales
amounting to TL 65.1 trillion in 2001.
Field of activity: Manufacturing and sales
of clinker, cement, ready-mix concrete
(31.12.2001 - TL billion)
Gross sales: 114,772
Total exports (USD thousands): 25,539
Total taxes: 13,200
(31.12.2001 - TL billion)
Gross sales: 65,139
Total taxes: 12,793
www.bolucim.com.tr
OYAK
ANNUAL REPORT 2001
26
ÜNYE Ç‹MENTO
Ünye Çimento produces a variety of
cements conforming to TSE standards.
The Company has an annual production
capacity of 600,000 tons of clinker and
a cement milling capacity of 1.9 million
tons. Ünye Çimento has ready-mix
concrete plants located one each in
Samsun, Trabzon, Rize, and Tirebolu and
another at its own headquarters. There
is also a company-owned pumping and
bagging plant in Rize-Çayeli-Limanköy.
Ünye Çimento has been awarded a
TSE ISO EN 9002 Quality System
Certificate. In 2001 the Company
completed a precalcination unit
investment which is slated to become
operational at the end of March 2002.
When it does, the Company’s annual
production capacity of clinker will be
increased from 600 thousand to
1.5 million tons. TL 20.2 trillion was
spent on this precalcination unit
investment in 2001 alone. The total
value of the investment, which has
been in progress since 1999, is more
than USD 90 million, making it one of
the biggest investments undertaken by
the Turkish private sector in the last
three years. Ünye Çimento booked
gross sales amounting to TL 39.3 trillion
from all its operations in 2001.
(31.12.2001 - TL billion)
Gross sales: 39,284
Total taxes: 3,195
www.unyecimento.com.tr
MARD‹N Ç‹MENTO
Mardin Çimento produces a variety of
cements conforming to TSE
standards. The Company has an
annual production capacity of
611,000 tons of clinker and a cement
milling capacity of 1.2 million tons.
Mardin Çimento sells to both
domestic and export markets. Mardin
Çimento has been awarded a TSE ISO
EN 9002 Quality System Certificate. It
operates two ready-mix concrete
plants: one in Þanl›urfa and one in
Diyarbak›r.
(31.12.2001 - TL billion)
The Company booked USD 2.6 million
as export sales in 2001 and had gross
sales amounting to TL 38.9 trillion as
a result of all its activities.
Gross sales: 38,937
Total taxes: 12,354
ELAZIÚ Ç‹MENTO
Elaz›¤ Çimento produces a variety of
cements conforming to TSE standards
and has an annual production
capacity of 297,000 tons of clinker
and a cement milling capacity of
1.2 million tons. The Company
operates a single ready-mix concrete
plant located in Malatya.
Elaz›¤ Çimento has been awarded a
TSE ISO 9002 Quality System
Certificate. The Company plans to
begin converting its production
system over from the existing
semi-dry one to a modern dry system
in 2002. The preliminary work for
this conversion has been completed.
www.mcs.com.tr
The project, whose investment cost
has been budgeted at USD 16 million,
is to be completed by the end of 2003.
The Company had gross sales
amounting to TL 25.1 trillion as a
result of its operations in 2001.
(31.12.2001 - TL billion)
Gross sales: 25,098
Total taxes: 2,419
www.elazigcimento.com.tr
OYAK
ANNUAL REPORT 2001
27
Oysa Ni¤de Çimento produces a
variety of cements conforming to TSE
standards and has an annual
production capacity of 413,000 tons
of clinker and a cement milling
capacity of 1.1 million tons. The
Company operates three ready-mix
Aksaray, Karaman, and Konya-Ere¤li.
to TL 20.3 trillion as a result of its
operations in 2001.
(31.12.2001 - TL billion)
Gross sales: 20,301
Total taxes: 4,726
Awarded a TSE ISO EN 9002 Quality
System Certificate, Oysa Ni¤de
Çimento had gross sales amounting
Oysa ‹skenderun Çimento produces a
variety of cements conforming to TSE
standards. The Company has an
annual cement milling capacity of
936,000 tons.
The Company, which has been
awarded a TSE ISO EN 9002 Quality
System Certificate, makes sales to
both domestic and export markets.
Oysa ‹skenderun Çimento also
produces and sells cement-based
chemical compounds for construction
purposes. It has three ready-mix
‹skenderun, Antakya, and K›r›khan.
Oysa ‹skenderun Çimento secured
gross sales amounting to TL 22.6 trillion
as a result of its operations in 2001.
of cement, ready-mix concrete and
construction materials
(31.12.2001 - TL billion)
Gross sales: 22,554
Total exports (USD thousands): 70
Total taxes: 4,254
www.oysa.com.tr
OYAK
ANNUAL REPORT 2001
28
Automotive
OYAK RENAULT
MA‹S
OMSAN LOJ‹ST‹K
OMSAN FRANCE S.A.R.L
OMSAN G.M.B.H
SELYAK
GOODYEAR
OYAK
ANNUAL REPORT 2001
29
OYAK RENAULT
The export leader of Turkey’s
automotive sector, OYAK Renault’s
activities are conducted under a
license from the French automotive
manufacturer, Renault. The Company
has been manufacturing automobiles,
engines, components, and spare parts
since 1971. At its inception, OYAK
Renault had an annual production
capacity of 20,000 vehicles. Today
that capacity has reached 700
vehicles a day and 170,000 vehicles
a year.
The effectiveness of OYAK Renault’s
quality assurance system was
acknowledged with the Company’s
receipt of an ISO 9001 Certificate in
1996. A significant volume of the
Company’s sales are directed to world
markets and especially to western
Europe. The Company’s export
performance is further proof that its
production quality has achieved world
standards. OYAK Renault’s plants,
which are located in Bursa, consist of
two separate units: a body assembly
line and a manufacturing line for
engine and transmission elements.
OYAK Renault produced a total of
96,860 vehicles in 2001. It also sold
99,003 vehicles, of which 12,601
went to the domestic market and
86,042 were shipped abroad. This
highly successful export performance
in 2001 was still more proof of OYAK
Renault’s position as the leader of
Turkey’s automotive export industry.
Field of activity: Manufacturing of Renault
automobiles and their spare parts
(31.12.2001 - TL billion)
Total taxes: 77,462
www.renault.com.tr
OYAK Renault registered gross sales
of TL 937.1 trillion as a result of its
operations in 2001.
MA‹S
MA‹S is the Turkish general distributor
for Renault automobiles. The
Company’s operations are carried out
through six branches (‹stanbul,
Ankara, ‹zmir, Bursa, Adana, and
Diyarbak›r) and an extensive network
of authorized dealerships located
everywhere in Turkey. MA‹S is
Turkey’s biggest automobile sales
organization.
The Company’s core activities are
organizing the sale and after-sale
services of Renault vehicles. Because
of this, an important part of MA‹S’s
operations consists of setting up and
overseeing Renault maintenance and
repair stations. MA‹S also imports
Renault vehicles for sale in the Turkish
market and provides their owners
with the full range of spare parts and
warranty services as well.
Despite the severe contraction
experienced in the automotive sector
due to the effects of Turkey’s
economic downturn in 2001, MA‹S’s
perceptive strategies enabled it to
increase its market share. The
Company sold 39,145 vehicles last
year, once again becoming the
market leader with a 28.9% share.
The Company had gross sales of
TL 631.3 trillion as a result of its
operations in 2001.
Field of activity: Sales and after sales
services for Renault automobiles
Number of service points: 6 branch offices
and 87 authorized dealers
(31.12.2001 - TL billion)
Total export (USD thousand): 2,331
Total taxes: 3,737
www.renault.com.tr
OYAK
ANNUAL REPORT 2001
30
OMSAN LOJ‹ST‹K
OMSAN Lojistik is one of Turkey’s
leading transport companies,
operating a 550-vehicle fleet of dry
bulk carriers, automobile carriers, and
cement carriage truck that work in
coordination with international land,
sea, and air transporters. The
Company has two foreign
subsidiaries, OMSAN GmbH
(Germany) and OMSAN S.A.R.L.
(France) as well as a liaison office in
Trieste in Italy.
Euteltracks satellite communications
and vehicle tracking system in the
operation of its fleet of
environmentally friendly, modern,
and powerful carriers that fully
conform to EU standards. This and
similar advanced systems that the
Company employs in its service
processes make an important
contribution to the effective, rapid,
and reliable service standards that
OMSAN Lojistik adheres to.
In 2001 OMSAN Lojistik underwent
a comprehensive structural
transformation as a result of which,
the Company’s function-based
operations were abandoned in
favor of a structure based on
sectors and processes.
Thanks to its successfully
implemented strategies, OMSAN
Lojistik is not only emerging
unscathed from Turkey’s recent
crisis but has also significantly
expanded its customer portfolio.
TL 76.1 trillion in 2001.
OMSAN Lojistik has been awarded an
ISO 9002 Quality Certificate.
The Company subscribes to the
Field of activity: Logistic services;
domestic and international land, air and
marine transportation
(31.12.2001 - TL billion)
Gross sales: 76,059
Total exports (USD thousand): 36,489
Total taxes: 12,309
www.omsan.com.tr
OYAK
ANNUAL REPORT 2001
31
SELYAK
Selyak is a joint venture of ELF
(France), MA‹S, and OYAK.
The Company was set up to market
petroleum products and related
services in Turkey under the ELF
trademark. It has 154 fuel stations
located all over the country.
The architecture of Selyak’s fuel
distribution network consists of
stations that are modern and that are
designed to high standards of quality
and safety while also fitting in with
their surroundings.
22,300 sqm in Samsun and another
measuring 48,800 sqm in ‹stanbulAmbarl›. In addition, Selyak also
has an engine lubricant blending
plant in ‹zmir-Menemen with a
monthly production capacity of
3,000 tons fully conforming to
European standards.
Field of activity: Distribution of petroleum
products and manufacturing of engine
lubricants
Number of service points: 154 fuel stations
(31.12.2001 - TL billion)
Total taxes: 56,171
In 2001 Selyak had gross sales of
TL 446.5 trillion, and registered a
2.2% share of the Turkish fuel
market. The Company owns and
operates Turkey’s most modern fuel
storage facilities with one measuring
www.selyak.com
GOODYEAR
Goodyear Lastikleri, Turkey’s leading
tire manufacturer, is a joint venture of
Goodyear (USA), OYAK, and the Koç
Group. Goodyear Lastikleri’s stock has
been trading on the ISE National
Market since 1986. The Company has
two factories, one in ‹zmit and the
other in Adapazar›, in which tires are
manufactured for automobiles, trucks,
pickups, buses, minibuses, tractors,
and heavy-duty equipment. In
addition, they also produce tread
rubber for use in tire-rebuilding.
The Company had gross sales
result of its operations in 2001, a year
in which its exports were worth
USD 136 million.
Goodyear Lastikleri’s corporate vision
is to be customers’ first preference in
vehicle tires and tire-related products.
In line with its philosophy of customer
satisfaction, the Company’s mission is
to create customer loyalty through all
its channels of distribution.
Field of activity: Manufacturing of outer
and inner tires, and tread rubbers
Number of service points: 385 dealers
(31.12.2001 - TL billion)
Total taxes: 5,220
www.goodyear.com.tr
OYAK
ANNUAL REPORT 2001
32
Food - Chemicals
TUKAÞ
HEKTAÞ
TAM GIDA
ET‹ PAZARLAMA
OYAK
ANNUAL REPORT 2001
33
TUKAÞ
Tukaß has been an OYAK subsidiary
since 1967. It is one of the leading
producers of canned food in Turkey.
The Company produces tomato and
pepper pastes, canned fruits and
vegetables, ready-to-eat foods, fruit
compotes, jellies and jams,
ketchups, a variety of sauces, and
various kinds of pickles in its
modern plants located in Turgutlu,
Torbal›, and Manyas.
For Tukaß, 2001 was a year in
which important progress was
made:
• Under the heading of its efforts
to increase market share and lead
the sector, Tukaß purchased two
factories in Bal›kesir-Manyas.
With these purchases, the Company
has increased its tomato paste
production capacity by 164% and its
total production capacity by 55%.
• For the purpose of shedding its
traditional image of being only a
tomato paste maker and of gaining
recognition as a general producer
of foods, the Company has added
more than sixty new products to its
product line. It has also developed a
new corporate vision for itself and
overhauled its quality policy.
• Recognizing the vital importance
of organization and distribution
networks in the foods industry,
Tukaß revamped its domestic sales
organization, set up regional
warehouses, and doubled the
number of its dealers.
• Tukaß has set up its in-house R&D
Department with the goal of
seeking ways to spread its
production operations out over the
whole year. The Company has
designed and launched two new
labels: "Aegean Gourmet", which is
targeted at markets abroad, and
"Egetom", which is directed at the
domestic market.
• Tukaß has revised its corporate
communications strategy in line
with its general, growth-focused
strategies. In the advertising and
promotion campaigns conducted
for this purpose, audiences were
introduced to Tukaß’s new identity
as well as to its new lines of
products.
Tukaß products are marketed in
Turkey and abroad through a
dealership system. In addition, the
Company also makes direct sales to
major stores and supermarkets.
Tukaß registered gross sales
result of its operations in 2001. In
addition to supplying the domestic
market, the Company also sells its
goods abroad and has been steadily
improving its export performance in
recent years.
In 2001, Tukaß’s exports amounted
to USD 16.8 million. Its products
are shipped to the United States,
Australia, Japan, and the United
Arab Emirates as well as to other
Middle Eastern countries.
of tomato and pepper pastes, canned
foods, ready-to-eat foods and pickles
dealers
(31.12.2001 - TL billion)
Gross sales: 50,299
Total taxes: 2,475
www.tukas.com.tr
OYAK
ANNUAL REPORT 2001
34
HEKTAÞ
Hektaß imports, manufactures, and
markets agricultural chemicals
(including their primary and secondary
raw materials), household pesticides,
veterinary pharmaceuticals, and leaf
fertilizers.
Hektaß also acts as the representative
and distributor for a number of
world-famous brands such as DuPont,
FMC, and Uniroyal, Turkey.
The Company’s production activities
are carried out in modern facilities
located in the Urfa and Gebze
industrial parks.
Hektaß has seven regional
departments and more than 2,000
sales outlets located all over Turkey.
Controlling an 18.9% share of the
national market for agricultural
chemicals, the Company easily
defended its position as leader of the
domestic sector in 2001.
Under a project that is being
conducted to improve operational
effectiveness, the Company
underwent a restructuring in 2001 in
which its headquarters were also
relocated to its factory in the Gebze
Industrial Zone. Hektaß had gross
sales of TL 33.1 trillion as a result of
its operations in 2001.
Field of activity: Manufacturing and sales of
agricultural chemicals
(31.12.2001 - TL billion)
Gross sales: 33,071
Total exports (USD thousand): 919
Total taxes: 4,219
www.hektas.com.tr
OYAK
ANNUAL REPORT 2001
35
TAM GIDA
Tam G›da makes biscuits, crackers,
and cakes under the "Eti" label.
Tam G›da took a number of
important steps in 2001 to increase
its market share and it also expanded
its product line. The Company’s sales
to the domestic market last year
reached 28,505 tons; export sales
also reached 5,346 tons. Tam G›da
had gross sales of TL 40.2 trillion as a
result of its operations in 2001. The
Company’s domestic and foreign
sales are carried out by Eti Pazarlama.
Field of activity: Manufacturing of biscuits,
crackers and cakes
(31.12.2001 - TL billion)
Total equity: 8,571
Gross sales: 40,207
Total taxes: 4,815
ET‹ PAZARLAMA
Eti Pazarlama is a marketing company
active in the baked goods sector,
producing 150 different kinds of
biscuits, crackers, cookies, cakes, pies,
wafers, bars, and similar snack foods
in a total of seven different
categories.
Eti Pazarlama is able to reach
167,860 sales points all over Turkey
through its eight regional
departments and 148 distributors
who are supplied by a fleet of 756
vehicles.
Eti Pazarlama is a company with high
export potential. In 2001, the
Company’s exports increased 201%
and reached nearly 12,000 tons.
While the main export markets are
Middle Eastern and Balkan countries,
Eti Pazarlama also exports goods to
developed markets in Europe, the
United States, and South and
Southeastern Asia.
Field of activity: Distribution and sales of
biscuits, cakes, crackers, pies
departments and 148 distributors
Eti Pazarlama had gross sales
(31.12.2001 - TL billion)
Total equity: 3,593
Total taxes: 3,804
www.etipazarlama.com.tr
OYAK
ANNUAL REPORT 2001
36
Services
OYTAÞ
OYCEM
OYAK ‹NÞAAT
OYPA
OYTUR
OYAK GÜVENL‹K
OYAK
ANNUAL REPORT 2001
37
OYTAÞ
Oytaß is a general trading company
which specializes in foreign trade and
which handles the import/export
operations of OYAK subsidiaries.
The Company has a participation in
OYCEM, Spain that was established
to coordinate the cement exports to
that region.
For more than a quarter of a century,
Oytaß has been a company with a
strong reputation for its experience in
import/export, for its professionalism,
and for its highly qualified personnel.
The Company’s service quality has
been verified by an ISO 9002
Certificate.
for OYAK-owned cement factories
and it plays an important role in
procuring high-quality coal under the
most favorable terms possible.
Oytaß has considerable experience in
exporting cement and clinker.
TL 89.9 trillion as a result of its
operations in 2001.
Field of activity: Domestic and
international trading
(31.12.2001 - TL billion)
Total equity: 5,724
Gross sales: 89,930
Total taxes: 5,031
www.oytas.com.tr
Oytaß is the leader of the Turkish
market in the sale of imported
petrocoke and heating coal. The
Company also searches out the most
suitable sources of the coal needed
OYAK ‹NÞAAT
Founded in 1982, Oyak ‹nßaat is a
construction company that
undertakes project, construction, and
installation works in a wide range of
applications from housing to hospitals
and from industrial buildings to
tourism and military facilities. The
Company also develops housing
projects for OYAK members.
In addition to its construction work
being undertaken jointly with the
Social Security Organization, Oyak
‹nßaat is currently carrying out its
Zirvekent project in Ankara. This
project was designed for and is being
promoted to the general market
entirely by the Company. Oyak ‹nßaat
investigates and seeks useful
applications for advanced
construction techniques such as
prefabrication, tunnel molds, and
steel construction and it will be
devoting more attention to this area
in the future.
Successful in its conduct of its
activities in Turkey, the Company also
takes an interest in international
contracting work and is currently
investigating opportunities in this
area. Oyak ‹nßaat registered gross
sales of TL 20.3 trillion as a result of
its operations in 2001.
Field of activity: Project construction and
installation works
(31.12.2001 - TL billion)
Total equity: 7,718
Gross sales: 20,314
Total taxes: 1,771
OYAK
ANNUAL REPORT 2001
38
OYPA
Originally created to be a military
commissariat service in 1963, OYPA
(Ordu Pazarlar›) became an
independent company in 1998.
Since its founding, OYPA has been at
the service of all customers, putting
its knowledge and experience to work
for them while adhering to its
principles of quality in goods and
service and suitability of price.
The goal of the Company today is to
provide its customers with the best
possible service conforming to
21st century retailing standards; and
in line with that mission, it keeps
continuously abreast of innovations in
this field. With its primary focus on
customer satisfaction, OYPA
successfully completed a restructuring
in 2001. Its image completely
refurbished, the Company continues
to provide customers good value for
their money.
Today OYPA has 21 stores and is
seeking to make additions to this
number in its effort to expand its
consumer network. OYPA had gross
sales amounting to TL 76.5 trillion as
a result of its operations in 2001.
Field of activity: Retailing and wholesale
trading
Number of service points: 21 stores
(31.12.2001 - TL billion)
Total equity: 2,762
Gross sales: 76,519
Total taxes: 2,083
OYAK
ANNUAL REPORT 2001
39
OYTUR
Oytur (OYAK Turizm) is a member of
IATA and holds a "Class A" travel
agency license. Oytur’s activities are
conducted by a dynamic and youthful
team who are led by professional
management and who provide firstrate, painstaking service in keeping
with the OYAK reputation for quality.
The Company registered gross sales
of TL 7.6 trillion as a result of its
operations in 2001.
Field of activity: Tourism and tourism
related trading
Number of service points: 2 agencies
(31.12.2001 - TL billion)
Total assets: 7,896
Total equity: 6,409
Gross sales: 7,593
Total taxes: 773
Oytur’s main services are domestic
and international airline ticketing and
the organization of national and
international congresses, conferences,
seminars, courses, and company
meetings both in Turkey and abroad.
The Company also operates the
Ankara Zirvekent sports facilities.
www.oyaktur.com.tr
OYAK GÜVENL‹K
Oyak Güvenlik was set up to seek out
and provide solutions to the needs of
OYAK and its subsidiaries as well as
of domestic and foreign companies in
the areas of security and the safe
transport of money, negotiable
instruments, and valuables.
In addition to standard security
services, Oyak Güvenlik also keeps
track of innovations in the field and
makes them available to its
customers. As of year-end 2001, the
Company was serving 27 clients.
Other services provided by
the Company include security
consultation, recruitment of security
personnel, setting up and operating
electronic and physical security
systems, and integrated security
solutions. Oyak Güvenlik had gross
sales amounting to TL 5.8 trillion as a
Field of activity: Security services and
systems
(31.12.2001 - TL billion)
Total assets: 1,192
Total equity: 806
Gross sales: 5,753
Total taxes: 1,577
www.oyakguvenlik.com.tr
OYAK
ANNUAL REPORT 2001
40
BOARD OF DIRECTORS
Y. Selçuk Saka
‹brahim Aç›kmeße
Cevat Temel Özkaynak
Major General Gendarmerie
(Ret.) Major General
Chairman
Board Member (since October 3, 2001)
Board Member (since November 12, 2001)
Bekir Ata Y›lmaz
Sabri Demirezen
Nafiz Kartal
Air Force Brigadier General
Brigadier General
(Ret.) Rear Admiral (LH)
Board Member
Board Member
Board Member
Lütfi Fikret Tuncel
Board Member
CEO and Board Member
BOARD OF AUDITORS
Ahmet Feyyaz Ö¤ütcü
Haydar Gezmiß
Ekrem Keskin, Ph.D.
Rear Admiral (UH)
Member
Member
Member
OYAK
ANNUAL REPORT 2001
41
EXECUTIVE MANAGEMENT
Caner Öner, Ph.D.
Ayd›n Müderriso¤lu, Ph.D.
Executive Vice President
Investments and Information System
New Business Development
Hülya Atahan
Ergün Oktay Okur
Celalettin Ça¤lar
Executive Advisor
Financial and Administrative Affairs
Member Services
Head of Cement and Automotive Groups
OYAK
AUDITORS’ REPORT 2001
42
Denetim Serbest
Mali Müßavirlik A.Þ.
‹ran Caddesi 33/4 06700
Gaziosmanpaßa - Ankara
Türkiye
Tel: (312) 427 62 35
Faks: (312) 427 62 02
www.deloitte.com.tr
ORDU YARDIMLAÞMA KURUMU
(ARMED FORCES PENSION FUND)
INDEPENDENT AUDITORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2001
1. We have audited the accompanying balance sheets of Ordu Yard›mlaßma Kurumu (Armed Forces
Pension Fund) (‘OYAK – the ‘Institution’) as at 31 December 2001 and the related statement of income,
for the year then ended. These financial statements are the responsibility of the Institution’s
management. Our responsibility is to express an opinion on these financial statements based on our
audits.
2. We conducted our audits in accordance with International Standards on Auditing. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
3. Under the terms of the existing social legislation in Turkey and the labor union agreement, the
Institution is required to make lump-sum payments to employees whose employment is terminated due
to retirement or for reasons other than resignation or misconduct. However, as of December 31, 2001
the Institution did not provide a reserve for the retirement pay liability of TL 1,724 billion (31.12.2000:
TL 1,055 billion) since such reserve is not compulsory under the Uniform Chart of Accounts.
4. As of December 31, 2001, the Institution did not provide a reserve for the Civilian Defense Fund
liability, amounting to TL 2,972 billion (31.12.2000: TL 1,087 billion) in the accompanying financial
statements (Note 17).
OYAK
43
5. Although the financial statements of Sümerbank and Oyakbank as of 31.12.2001 are finalized with
the Independent Auditors’ Report and accordingly, with the approval of BDDK, the transfer of
Sümerbank has been realized, according to the regulations of Law published on 31.01.2002 in the
Official Gazette which amends Law Number: 4389, bank financial statements as of 31.12.2001 are
subject to a special independent audit with a wider scope. According to the results of the independent
audit, there is a possibility of a change in the dividend income accrual of OYAK as of 31.12.2001. For
this reason, the effect of the possible changes, if exist, on the total dividend income of TL 150,955
Billion from Oyakbank and Sümerbank could not be estimated.
6. In our opinion, except the effects of the matters discussed in the paragraphs 3,4 and 5, financial
statements referred to above present fairly, in all material respects, the financial position of the Ordu
Yard›mlaßma Kurumu (Armed Forces Pension Fund) as of 31 December 2001 and the results of its
operations for the year then ended in accordance with the rules and principles indicated in Law of Oyak
(Law Number 205 "the Code"- Note 1) and generally accepted accounting principles in Turkey.
Ankara, 1 March 2002
Bülent BEYDÜZ
Partner
DENET‹M SERBEST MAL‹ MÜÞAV‹RL‹K A.Þ.
Member Firm of DELOITTE TOUCHE TOHMATSU
OYAK
44
OYAK ORDU YARDIMLAÞMA KURUMU
BALANCE SHEETS AS AT 31 DECEMBER 2001 AND 2000
(BILLION TL)
TECHNICAL ASSETS
31.12.2001
TECHNICAL ASSETS
31.12.2000
I. CURRENT ASSETS
A. Cash and Cash Equivalents
1. Cash
2. Banks
3. Cheques Given and Payment Orders (-)
4. Other cash equivalents
B. Marketable Securities
1. Share Certificates
2. Private Sector Notes, Bonds and Bills
3. Public Sector Notes, Bonds and Bills
C. Short Term Trade Receivables
1. Receivables from Retired Members
2. Receivables from Government Financial Offices and Service Borrowings
3. Dividends Receivable
4. Other Trade Receivables
5. Doubtful Trade Receivables
D. Other Receivables
1. Receivables from Participations
2. Receivables from Subsidiaries
3. Investments with Social Purposes
4. Receivables from the Personnel
5. Other Various Receivables
E. Inventories
1. Raw material
2. Trade Goods
F. Short Term Prepaid Expenses and Income Accruals
1. Prepaid Expenses
2. Income Accruals
G. Other Current Assets
1. VAT Carry-forward
2. VAT Deductible
3. Job Advances
4. Personnel Advances
5. Other Current Assets
811,693
426,921
23
427,114
(325)
109
12,396
1,435
10,961
294,956
1,163
1,050
282,160
10,145
438
71,439
2
253
71,027
157
1,476
35
1,441
2,713
4
2,709
1,792
1,780
12
363,004
165,068
26
165,129
(205)
118
42,900
927
41,973
88,209
758
1,368
81,232
4,842
9
51,178
1
35
51,035
107
838
838
13,888
13,888
923
888
4
31
II. NON CURRENT ASSETS
A. Trade Receivables
1. Deposits and Guarantees
B. Financial Non-Current Assets
1. Participations
2. Capital Commitments to Participations
3. Subsidiaries
4. Capital Commitments to Subsidiaries
5. Other Financial Non-Current Assets
C. Fixed Assets
1. Land
2. Buildings
3. Machinery and Equipment
4. Vehicles
5. Furnitures and Fixtures
6. Other Tangible Fixed Assets
7. Accumulated Depreciation
8. Construction in Progress
D. Intangibles
1. Leasehold Improvements
2. Accumulated Depreciation
E. Other Non-Current Assets
446,241
418,609
91,481
327,128
26,380
6,728
19,008
854
41
1,149
2
(1,980)
578
1,247
1,380
(133)
5
280,167
260,022
45,642
214,380
18,867
6,404
12,104
629
35
359
(1,214)
550
1,278
1,380
(102)
-
1,257,934
643,171
52,605
69,555
17,239
28,092
1,380,094
688,502
TOTAL ASSETS
Housing Pre-Accumulation Fund
Retirement Income System Based On Donations
TOTAL ASSETS INCLUDING FUNDS
OYAK
45
BALANCE SHEETS AS AT 31 DECEMBER 2001 AND 2000
(BILLION TL)
TECHNICAL LIABILITIES
31.12.2001
TECHNICAL LIABILITIES
31.12.2000
I. SHORT TERM LIABILITIES
A. Trade Payables
1. Suppliers
2. Payables to Members
3. Payables to Financial Offices
4. Deposits and Guarantees Taken
B. Other Payables
1. Payables to Participations
2. Payables to Subsidiaries
3. Payables to Personnel
4. Other Miscellaneous Payables
C. Advances Received
1. Resources for House Constructions
D. Taxes and Other Liabilities Payable
1. Taxes and Funds Payable
2. Social Security Deductions Payable
3. Other Liabilities Payable
E. Reserves
1. Reserves for Taxes
2. Other Reserves
F. Deferred Income and Expense Accruals
1. Short Term Deferred Income
2. Expense Accruals
G. Other Short Term Liabilities
1. Current Accounts of Headquarter and Branches
2. Count Differences
7,937
820
598
120
102
835
2
307
1
525
410
203
74
133
160
160
5,618
5,524
94
94
94
7,690
1,082
662
77
343
279
1
121
157
2,852
2,852
221
173
46
2
110
110
3,125
3,110
15
21
21
II. LONG TERM LIABILITIES
A. Trade Payables
1. Deposits and Guarantees Taken
B. Deferred Income and Expense Accruals
1. Long Term Deferred Income
C. Retirement Pay Liabilities
1,214
1,214
1,214
-
2,730
2,730
2,730
-
III. EQUITY
A. Reserves
B. Revaluation Funds
C. Profit
1. Income
D. Capitals of Army Markets
1,248,783
654,401
594,382
594,382
-
632,751
415,366
217,385
217,385
-
TOTAL LIABILITIES
1,257,934
643,171
52,605
69,555
17,239
28,092
1,380,094
688,502
Housing Pre-Accumulation Fund
Retirement Income System Based On Donations
TOTAL LIABILITIES INCLUDING FUNDS
OYAK
46
INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2001 AND 2000
(BILLION TL)
TECHNICAL INCOME
31.12.2001
TECHNICAL INCOME
31.12.2000
A. Investment Income
1. Income from Participations
2. Income from Subsidiaries
3. Real Estate Income
4. Income from Placements
B. Income from Social Investments
1. Income from Army Markets
2. Loan Lending Assistance and Commodity Credits Income
3. Housing Aid Income
C. Other Income
1. Interest and Commissions Income
2. Other Income
D. Revaluation Funds
530,012
75,345
207,908
4,637
242,122
19,407
1,645
5,421
12,341
12,872
2,692
10,180
45,817
163,566
43,138
38,584
2,841
79,003
15,014
840
8,218
5,956
17,529
1,225
16,304
29,271
TOTAL INCOME
608,108
225,380
E. Administrative Expenses
1. Personnel Expenses
2. Legal Branch Expenses
3. Office Expenses
4. Fixed Assets Expenses
5. Miscellaneous Expenses
6. Social and Cultural Expenses
7. Depreciation Expenses
F. Financial Expenses
1. Bank Commission Expenses
2. Share Certificate Commissions and Expenses
3. Other Financial Expenses
G. Real Estate Operational Expenses
H. Other Expenses
(11,416)
(7,657)
(151)
(740)
(201)
(2,024)
(373)
(270)
(434)
(282)
(152)
(313)
(162)
(6,299)
(3,788)
(93)
(555)
(115)
(1,107)
(538)
(103)
(355)
(222)
(58)
(75)
(224)
(117)
TOTAL EXPENSES
(12,325)
(6,995)
OPERATIONAL INCOME
595,783
218,385
(1,401)
(1,000)
-
-
594,382
217,385
I. Technical Income/(Expense), net
J. Civilian Defense Fund
NET PROFIT
DIRECTORY
CORPORATE HEADQUARTERS
Ziya Gökalp Cad. No: 64
06600 Kurtuluß
ANKARA - TURKEY
Phone: (+90 312) 415 60 00
Fax: (+90 312) 432 27 05
www.oyak.com.tr
FINANCE
OYAK BANK A.Þ.
Eski Büyükdere Cad.
Ayaza¤a Köy Yolu No: 6
80670 Maslak
‹STANBUL - TURKEY
Phone: (+90 212) 335 10 00
Fax: (+90 212) 335 20 05
www.oyakbank.com.tr
AXA OYAK HOLD‹NG A.Þ.
Meclisi Mebusan Cad.
No: 81 OYAK ‹ßhan›
80040 Sal›pazar›
‹STANBUL - TURKEY
Phone: (+90 212) 334 24 24
Fax: (+90 212) 249 48 28
www.axaoyak.com.tr
OYAK YATIRIM VE MENKUL
DEÚERLER A.Þ.
Büyükdere Cad. Beytem Plaza No: 17
80220 Þißli
‹STANBUL - TURKEY
Phone: (+90 212) 315 10 00
Fax: (+90 212) 315 11 08
www.oyakmenkul.com.tr
OYAK ANKER BANK GMBH
Am Plan 1
56068 KOBLENZ - GERMANY
Phone: (+49 261) 912 30
Fax: (+49 261) 912 31 33
www.oyakankerbank.de
HALK F‹NANSAL K‹RALAMA A.Þ.
19 May›s Cad. Golden Plaza
80220 Þißli
‹STANBUL - TURKEY
Phone: (+90 212) 230 92 48
Fax: (+90 212) 230 46 69
www.halkleasing.com.tr
OYAK EUROPEAN FINANCE PLC
87 Lower Leeson Str.
DUBLIN 2 - IRELAND
Phone: (+353 1) 676 38 90
Fax: (+353 1) 676 38 93
www.oyakeuro.com
CEMENT
ADANA Ç‹MENTO SAN. T.A.Þ.
Ceyhan Yolu Üzeri
01321 ADANA - TURKEY
Phone: (+90 322) 332 99 50
Fax: (+90 322) 332 95 01
BOLU Ç‹MENTO SAN. A.Þ.
Bolu Mengen Yolu Üzeri
14001 Çaydurt
BOLU - TURKEY
Phone: (+90 374) 226 47 70
Fax: (+90 374) 226 50 68
www.bolucim.com.tr
ÜNYE Ç‹MENTO SAN. VE T‹C. A.Þ.
Devlet Sahil Yolu, Cevizdere Mevkii
52300 Ünye
ORDU - TURKEY
Phone: (+90 452) 321 11 00
Fax: (+90 452) 321 11 30
www.unyecimento.com.tr
MARD‹N Ç‹MENTO SAN. VE T‹C. A.Þ.
Savuryolu 6. Km
47019 MARD‹N - TURKEY
Phone: (+90 482) 226 64 30
Fax: (+90 482) 226 64 36
www.mcs.com.tr
SAN. VE T‹C. A.Þ.
K›rüstü Mevkii Hac›lar Sk.
51270 N‹ÚDE - TURKEY
Phone: (+90 388) 232 36 30
Fax: (+90 388) 232 36 34
ELAZIÚ-ALTINOVA Ç‹MENTO
SAN. T.A.Þ.
K›z›lay Mah.
Kaz›m Karabekir Cad. No:12
23200 ELAZIÚ - TURKEY
Phone: (+90 424) 224 39 21
Fax: (+90 424) 224 16 70
www.elazigcimento.com.tr
SAN VE T‹C. A.Þ.
Adana-‹skenderun Karayolu
31201 Karay›lan Beldesi Yan›
‹SKENDERUN - TURKEY
Phone: (+90 326) 654 25 10
Fax: (+90 326) 654 25 00
www.oysa.com.tr
DIRECTORY
AUTOMOTIVE
OYAK RENAULT OTOMOB‹L
FABR‹KALARI A.Þ.
Barbaros Plaza
Emirhan Cad. No: 145/C
80700 Dikilitaß
‹STANBUL - TURKEY
Phone: (+90 212) 326 44 44
Fax: (+90 212) 326 44 66
www.renault.com.tr
MA‹S MOTORLU ARAÇLAR
‹MAL VE SATIÞ A.Þ.
Büyükdere Cad. No: 175
80794 Levent
‹STANBUL - TURKEY
Phone: (+90 212) 316 66 66
Fax: (+90 212) 268 04 20
www.renault.com.tr
OMSAN LOJ‹ST‹K A.Þ.
Tugay Yolu Cevizli
81540 Maltepe
‹STANBUL - TURKEY
Phone: (+90 216) 458 55 55
Fax: (+90 216) 458 54 54
SELYAK PETROL ÜRÜNLER‹
ÜRET‹M VE PAZ. A.Þ.
Barbaros Bulv. Þakir Kesebir Sk.
No: 25 / 27 Balmumcu
80700 Beßiktaß
‹STANBUL - TURKEY
Phone: (+90 212) 275 25 18
Fax: (+90 212) 274 47 29
www.selyak.com
GOODYEAR LAST‹KLER‹ T.A.Þ.
Büyükdere Cad. Maslak Meydan› No: 41
80670 Levent
‹STANBUL - TURKEY
Phone: (+90 212) 329 50 00
Fax: (+90 212) 276 62 25
www.goodyear.com.tr
FOOD - CHEMICALS
ET‹ PAZARLAMA VE SANAY‹ A.Þ.
Gültepe Mah. Harman Cad.
Ali Kaya Sk. Polat Plaza B Blok No: 2
80640 1. Levent
‹STANBUL - TURKEY
Phone: (+90 212) 325 21 71
Fax: (+90 212) 325 22 60
www.etipazarlama.com.tr
TAM GIDA SANAY‹ VE T‹CARET A.Þ.
Organize Sanayi Bölgesi
26110 ESK‹ÞEH‹R - TURKEY
Phone: (+90 222) 236 00 09
Fax: (+90 222) 236 03 49
OYTAÞ ‹Ç VE DIÞ T‹CARET A.Þ.
Kemeralt› Cad. No: 28
80030 Karaköy
‹STANBUL - TURKEY
Phone: (+90 212) 293 42 10
Fax: (+90 212) 293 42 20
www.oytas.com.tr
OYPA
OYAK BÜYÜK MAÚAZACILIK A.Þ.
105 Evler Halk Sk. No: 1
81080 Kozyata¤›
‹STANBUL - TURKEY
Phone: (+90 216) 411 06 06
Fax: (+90 216) 411 06 14
OYAK ‹NÞAAT A.Þ.
Eskißehir Devlet Yolu No: 6
06520 Beßtepe
ANKARA - TURKEY
Phone: (+90 312) 286 53 10
Fax: (+90 312) 286 49 96
OYTUR
OYAK TUR‹ZM VE T‹CARET A.Þ.
Mahir ‹l Cad. No: 50/1 Altunizade
81190 Üsküdar
‹STANBUL - TURKEY
Phone: (+90 216) 474 11 11
Fax: (+90 216) 474 23 23
www.oyaktur.com.tr
OYAK GÜVENL‹K A.Þ.
Necatibey Cad.
OYAK ‹ß Merkezi No: 51
06440 K›z›lay
ANKARA - TURKEY
Phone: (+90 312) 232 17 82
Fax: (+90 312) 231 15 34
www.oyakguvenlik.com.tr
TUKAÞ GIDA SANAY‹ VE T‹CARET A.Þ.
Nadir Nadi Cad. No: 15
35260 Konak
‹ZM‹R - TURKEY
Phone: (+90 232) 445 97 77
Fax: (+90 232) 482 12 22
www.tukas.com.tr
HEKTAÞ T‹CARET T.A.Þ.
Gebze Organize Sanayi Bölgesi
‹hsan Dede Cad. 700. Sk.
41480 Gebze
KOCAEL‹ - TURKEY
Phone: (+90 262) 751 14 12
Fax: (+90 262) 751 14 22
www.hektas.com.tr
SERVICES
OYTEK
OYAK TEKNOLOJ‹ H‹ZMETLER‹ A.Þ.
Polat Plaza
Ali Kaya Sk. No: 4 A Blok
80620 Levent
‹STANBUL - TURKEY
Phone: (+90 212) 325 29 29
Fax: (+90 212) 279 74 47

Annual Report, 2001

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