EWE Turkey Holding Annual Report 2014

Transcription

EWE TURKEY HOLDING
ANNUAL REPORT 2014
CONTENTS
CORPORATE PROFILE
Message from the Chairman
Message from the Managing Directors
2014 at a Glance
EWE Turkey Holding in Brief
Financial (TAS*) and Operational Highlights
Subsidiaries and Shareholding Structure
EWE AG
EWE Turkey Holding Board of Directors
Organizational Structure
SECTOR OVERVIEW
Global Energy Sector
Energy Sector in Turkey
4
6
8
10
12
14
15
16
18
20
22
24
25
BUSINESS AREAS
26
EWE Turkey Strategy
28
Distribution30
Bursagaz30
Kayserigaz33
Energy Trading/Sales
36
EWE Enerji
36
Energy Services
38
Enervis38
SUSTAINABILITY40
Corporate Values, Principles
42
Corporate Social Responsibility
43
Human Resources
46
Information Technologies
48
FINANCIAL PERFORMANCE
Financial Indicators
Dividend Policy
Risk Management
Internal Control and Audit
Other Matters 50
52
52
52
54
55
As trees hang on to earth with their roots, they actually rise
towards the sky as a symbol of power and longevity. Hanging
onto the earth for dear life, the roots of a tree are its life line that
bears the grandeur of the tree. The tree ascends towards the sky in
confidence and shelters all those around it with its shadow.
Plane trees are the longest living among trees; they are durable and
strong. They grow quickly and they do not dry up easily because
their roots are buried deep in the ground. As time goes by, oaks do
not grow old, they become “grand planes”.
We are growing quickly with the goal of being a long term player
in the energy sector and as we ascend, we are casting off a greater
shadow and embracing and serving a larger array of people.
Just like a plane tree...
1
EWE TURKEY HOLDING ANNUAL REPORT 2014
EWE Turkey Group, continuing to
grow with strong steps to improve the
quality of life in Turkey.
7,839 km
Total grid length of
Bursagaz and Kayserigaz
1,250,437 BBS
*
Total number of Bursagaz
and Kayserigaz subscribers
*Turkish definition of household equivalent number
2
TL
2,140 billion
EWE Turkey Group’s
consolidated turnover in 2014
4.8 billion m
3
EWE Turkey Group’s
consolidated gas supply volume
739
Total number of employees in
EWE Turkey Group
3
CORPORATE PROFILE
MESSAGE FROM THE CHAIRMAN
EWE Turkey has left behind a successful year, continuing its leading role in all its
areas of expertise and increasing the company sales as well as enhancing its corporate
culture.
Dear Stakeholders,
We are pleased to serve Turkey as a long-term player in the energy
sector through the 85-year well-founded history, know-how, and
corporate culture of EWE AG. EWE Turkey’s leading role in the
industry is becoming evident through the investments made so far
and the ground breaking innovations.
Energy as a Key to Prosperity, also for Turkey
Economic growth is almost invariably (and literally) “fuelled”
by an additional use of energy. While we are contributing to
provide this fuel to our customers, we also see an enormous
potential to reduce the energy demand in Turkey for the same
level of prosperity - and we intend to work hard on this with our
customers and other stakeholders.
As a consequence of this importance of energy for prosperity,
also its cost is as crucial factor in economic growth. The only
way to establish the right energy price level in the long run is the
establishment of liquid markets where many significant players
meet. We strongly believe that Turkey has the potential of
becoming a gas “hub” for the region and for Europe by establishing
such a liquid market with good access to the various gas supply
sources around the country. We are ready to be an active player in
such liquid energy markets.
In 2014, EWE Turkey through its affiliates increased its gas supply
volume by 23 percent to reach 4.8 billion m3, including the gas
volume shipped through its grids, and continued to contribute to a
reliable supply of energy to its customers in Turkey.
EWE AG completed 2014 with a turnover of EUR 8.134 million,
while EWE Turkey made TL 2.140 million in turnover in 2014.
During 2014, 2.1 billion m3 of natural gas was sold and an
additional 2.7 billion m3 of natural gas was shipped by EWE
Turkey’s affiliates. EWE’s leading brands furthered quality of
services provided in all sectors where EWE has a presence through
an innovative approach. Founded with the intention to attain a
high level of service quality, the “Pole Star” project aimed to share
6
with all its employees EWE’s corporate values and principles that
will help create a difference in Turkey.
New Investment Opportunities
In order to continue a leading role as a lasting player in the
Turkish market in the years to come, EWE Turkey will continue
its investments in parallel with the liberalization of the market.
By taking up new opportunities, we are aiming to achieve a
balanced growth in natural gas wholesales, where we are one of
the largest private players in the market. We are also pursuing
inorganic growth opportunities as a group as part of our growth
strategy, if attractive opportunities arise that fit our portfolio. It is
among our goals to follow developments and seize opportunities
in underground storage of natural gas, in which EWE AG has an
immense know-how and experience.
We began selling electricity in 2013 and we are continuing our
preparations for providing consumers with the best service possible
through an innovative approach and the excellent customer
satisfaction that we already achieve in the natural gas distribution
industry, after the complete liberalization of the electric power
retail market in 2016.
We are rapidly growing in energy efficiency and energy
consultancy which are, in our opinion, important opportunities for
Turkey. We’ve had the opportunity to demonstrate our know-how
on optimum utilization of energy, an imported resource for Turkey,
through our research and practices until now.
We will continue to serve the Turkish people as an international
player through our leadership vision and expertise in all these
fields. I would like to extend my gratitude to our business partners,
stakeholders, clients, and staff and management of EWE Turkey
Group for having contributed to the company’s success story and
reputation achieved in such a short time.
Dr. Willem Schoeber
EWE Turkey Holding, Chairman of the Board
CORPORATE PROFILE
“We will continue our investments as a long-term player in the Turkish energy
market through pursuing organic and inorganic growth opportunities.”
7
MESSAGE FROM THE MANAGING DIRECTORS
We will continue to play a leading role in energy supply and grow through new
investment opportunities in Turkey.
Dear Stakeholders,
The demand for energy in Turkey is increasing by an average of
6-8 percent each year and consumption of oil equivalent of 123
million tons in 2013 is expected to nearly double and reach 222
million tons by 2020. Being backed by the international power and
vision of EWE AG, EWE Turkey plays a significant role in meeting
this demand while increasing its contribution to the energy supply
each passing year. Customer satisfaction and excellence in quality
of service level are our top priorities in all of our operations.
In 2014, EWE Turkey Holding sustained its quick but stable growth
with a turnover of TL 2.14 billion. In parallel with this economic
growth, our workforce has increased from 684 to 739 employees
in 2014. The improvement in sales and profitability will continue
through Turkey’s energy demand in the medium and long term
and new opportunities in the market through EWE’s leadership
in the sectors in which it specializes. In order to carry out this
improvement up to EWE’s standards, we shared our corporate
values and principles with all of our employees in 2014. All of EWE
Turkey’s employees came together in the convention held in Bursa
for the first time in company’s history.
Corporations Adding Value
The consolidated natural gas supply volume of the group was 3.9
billion m3 in 2013. In 2014, this volume increased by 23 percent
and reached 4.8 billion m3. The total number of subscribers grew
to 1.25 million BBS (Household Equivalent Number) and the total
grid length reached to 7,839 km.
Ranking among the leading enterprises in the natural gas
distribution sector in Turkey, Bursagaz and Kayserigaz continued to
push the boundaries of the industry in 2014 as well. Investments
in İznik have begun upon the approval of the license application
by the Energy Market Regulatory Authority (EMRA) in Bursa.
Having received the Best Employer Award in Turkey in the 50-500
employees category by Great Place to Work in 2014, Bursagaz
has proved the value of investing in the human resources. The
Company has continued its leadership role in the sector by being
the first company in the sector to have shared the GRI approved
A+ Sustainability Report with the public. Moreover, Kayserigaz
has expanded its licensed area and began investments in the
8
Develi and Erciyes Hotels Regions. With an investment in ensuring
security of the supply, the foundation of the second RMS-A station
in Kayseri has been laid. Kayserigaz has also continued to be
the first in the sector by being the only enterprise to have R&D
projects in natural gas distribution approved by EMRA.
Holding the record for the fastest growing company title in Turkey
in the Capital 500 ranking, EWE Enerji has continued its growth
through increasing client base in electricity sales and expanding
volume of total natural gas sales.
Enervis, our energy service company, provided consultancy
services to 16 companies in the Bursa Organized Industrial Zone
and identified a potential of energy efficiency of 45 percent. In
today’s highly competitive conditions, profitability has become
critical for companies. We believe that with its energy efficiency
implementations, Enervis will provide great advantage to the
profitability of especially industries consuming high levels of
energy.
Balanced Growth
With the rollout of the new Natural Gas Market Law and with the
decrease in eligibility threshold in electricity market as a result of
which citizens will be free to choose their own electricity provider
as of 2016, some significant opportunities will be untapped
in the marketplace. We continue to work on the investment
opportunities that will arise through developments. We will
continue our investments as a long-term and leading player in
the Turkish energy market through pursuing organic and inorganic
growth opportunities. We are planning to continue growing by
making investments totaling TL 188.5 million over the next three
years just for organic growth in addition to the TL 134.8 million we
have invested over the last three years.
EWE AG, our business partners, stakeholders, and valuable
employees are the biggest supporters on our way to reaching our
goals. We would like to thank each and every one of them for their
contribution in making us one of the leading players in Turkey.
Bekir Sami Acar
Managing Director
Dr. Frank Quante
Managing Director
CORPORATE PROFILE
“2014 was a successful year for EWE Turkey. It was a pleasure to work with our
business partners and employees; to serve our customers. We want to develop
successfully together with all our stakeholders.”
9
2014 AT A GLANCE
10
New Licensed Area for
Bursagaz: İznik
Bursagaz’s investment in İznik was
approved by the EMRA and its
licensed area expanded while work
for supplying gas continued.
GRI Approved Sustainability
Report
Bursagaz’s A+ Sustainability Report
approved by Global Reporting
Initiative (GRI), a first in the sector,
was shared with the public.
Kayserigaz Receives
the First Approval for
Research&Development in the
Sector
Kayserigaz became the only
company to have its R&D projects
in the natural gas sector approved
by the EMRA.
EWE Enerji Became the Fastest
Growing Company
By increasing its turnover by
256 percent in 2013, EWE Enerji
became the fastest growing
company in the Capital 500 list
and placed 77th in Fortune 500 list
in 2014.
Bursagaz Receives “Great Place
to Work” Award
Bursagaz received the “Best
Employer” award in the enterprises
with 50 to 500 employees category
in 2014.
CORPORATE PROFILE
IIP Gold Certificate for Bursagaz
Bursagaz ranked at the top in the
assessment done by IIP International
and received the IIP Gold certificate
and joined the few enterprises in
Turkey holding this certificate.
New Licensed Area for
Kayserigaz
Kayserigaz investments in Develi
and Erciyes hotels region were
approved by the EMRA and the
licensed area expanded while work
for supplying gas continued.
Foundation of New RMS-A in
Kayseri has been Laid
Foundation of the second Regulation
and Measuring Station (RMS-A) at
the city entrance of Kayseri has been
laid.
EWE Enerji Leads the Private
Sector in Natural Gas
With its natural gas sales volume
of 2.1 billion m3, EWE Enerji kept
its title as the biggest player
after Public Petroleum Pipeline
Corporation (BOTAŞ).
Consultancy Services by Enervis
Enervis completed its consultancy
services to 16 companies in the
Bursa Organized Industrial Zone
and detected energy efficiency
potential of up to 45 percent.
Some of the companies that
received the consultancy services
are at the implementation stage
together with Enervis.
Increasing Customer Base
As of year-end 2014, subscriber
base of Bursagaz and Kayserigaz
reached a total of 1,250,437
BBS and their total grid length
expanded to 7,839 km.
11
EWE TURKEY HOLDING IN BRIEF
Focusing on long term energy
operations in Turkey, EWE Turkey
Holding continues to invest as an
important player in the energy
market with its innovative and
customer oriented business models.
E
WE AG is one of the largest energy companies of Germany
Multi Utility Services in Energy
and continues its operations in the Turkish market since 2007
EWE Turkey Holding is a majority shareholder of Bursagaz and
under the roof of EWE Turkey Holding, which is a 100 percent
Kayserigaz, two of Turkey’s largest natural gas distributors, each
EWE AG subsidiary. EWE Turkey Holding is responsible for the
operating in the country’s major industrial hubs. Meanwhile,
coordination and consolidation of all of the group companies
EWE also supplies gas to industrial customers, power plants, and
in Turkey and assesses the new investment opportunities in the
distribution companies throughout the country through EWE
energy market. As a permanent player and a reliable business
Enerji, which is the biggest wholesale and trading company of the
partner in the energy markets, EWE Turkey Holding aims to grow
sector. EWE Enerji began its electricity supply operations in 2013
in Turkey and become leaders of its expertise areas in the long run
and has been providing its customers with the opportunity to
through technology aided innovative and superior business models.
procure electricity and natural gas from single supplier. The area
of activity of Enervis, another subsidiary of EWE Turkey Holding,
With a workforce of a total of 739 employees in the natural gas
is energy efficiency, which is a vital area for Turkey.
distribution, energy trade and energy services areas, the Group’s
12
consolidated turnover has reached TL 2.1 billion as of year-end
In 2014, the customer base for the Group companies has reached
2014.
a total of 1,250,437 BBS. Moreover, the total consolidated gas
CORPORATE PROFILE
supply volume of the Group for 2014 has been recorded as 4.8
of International Investors Association (YASED). Moreover, the
billion m3.
EWE Turkey Group companies are also members and active
contributors of Petroleum Platform Association (PETFORM),
Investments are Steadily Increasing
Union of Natural Gas Distribution Companies (GAZBİR), Energy
EWE Turkey Holding made investments totaling TL 134.8 million
Traders Association (ETA), Natural Gas Board of The Union of
over the period 2012-2014. The Holding plans to invest TL 188.5
Chambers and Commodity Exchanges of Turkey (TOBB), Natural
million to achieve the organic growth of its grid in 2015-2017.
Gas Suppliers Association (GAZTED), and the Turkish-German
Chamber of Commerce.
EWE Turkey Holding believes that the Company’s continued
growth can only be achieved through close collaboration and
high quality communication between the various players in the
sector. To this end, the Company makes every effort to establish
close relations with enterprises and organizations in the sector,
takes an active role in sector activities and works to establish
effective communication. In addition, the Company is a member
EWE Turkey Group made
investments totaling
TL 134.8 million over the
last three years.
13
FINANCIAL (TAS*) AND
OPERATIONAL HIGHLIGHTS
EWE TURKEY GROUP
2014
2013
CHANGE %
Consolidated Sales Revenue TL million
2,140
2,041
5%
Total Assets
TL million
1,765
1,674
5%
Shareholders’ Equity TL million
672
659
2%
Gross Profit
TL million
129
101
28%
Operating Profit
TL million
60
55
10%
Investments
TL million
62
38
62%
Consolidated Gas Supply Volume
billion m³
4.8
3.9
23%
Total Subscribers
BBS
1,250,437
1,190,959
5%
Grid Length
km
7,839
7,457
5%
Total Workforce
employees
739
684
8%
CONSOLIDATED SALES REVENUE (TL million)
2014
2,140
GRID LENGTH (km)
2014
2013
2013
7,839
2,041
TOTAL SUBSCRIBERS (BBS)
2014
1,250,437
7,457
TOTAL WORKFORCE (employees)
2014
739
2013
2013
684
1,190,959
CONSOLIDATED GAS SUPPLY VOLUME
(billion m³)
2014
GAS SALES 44% (2.1 billion m³)
INVESTMENTS (TL million)
2014
62
4.8
2013
2013
3.9
38
Based on consolidated financial statements prepared in accordance with Turkish Accounting Standards
*
14
SHIPPING 56% (2.7 billion m³)
CORPORATE PROFILE
SUBSIDIARIES AND SHAREHOLDING STRUCTURES
EWE Turkey Holding’s rate of direct subsidiary shares in the capital of companies included in the consolidation is shown below.
There has been no change in the shareholding structure of the Company in the 2014 fiscal year.
EWE AG
100%
EWE TURKEY HOLDING A.Ş.
80%
80%
100%
100%
BURSAGAZ A.Ş.
KAYSERİGAZ A.Ş.
EWE ENERJİ A.Ş.
ENERVIS A.Ş.
Çalık Holding %10
Çalık Holding %10
Bursa Metropolitan
Municipality 10%
Kayseri Metropolitan
Municipality 10%
Business Name
Direct/Indirect
Number of Shares
Share
Share in Subsidiary’s
Capital
Bursagaz Bursa Şehiriçi
Doğalgaz Dağıtım Ticaret ve
Taahhüt A.Ş. “Bursagaz”
Direct
71,200,000
80%
71,200,000
Kayserigaz Kayseri Şehiriçi
Doğalgaz Dağıtım Pazarlama
ve Ticaret A. Ş. “Kayserigaz”
Direct
5,200,000
80%
5,200,000
EWE Enerji Anonim Şirketi
“EWE Enerji”
Direct
8,000
100%
8,000,000
Enervis Enerji Servis Sanayi ve
Ticaret A.Ş. “Enervis”
Direct
1,000,000
100%
1,000,000
•The Company does not have privileged shares.
•Members of the managing body have not performed any activities within the scope of the prohibition of competition at the Company
for their own behalf or on behalf of anyone else.
•Group companies do not have any shares in the capital of the parent company.
15
EWE AG
EWE AG differs from other energy companies by combining various utility services like
electricity, gas, telecommunications and water under one roof.
W
ith more than 9,000 employees and a grid length that
and innovative company in the energy sector, EWE AG transfers
can go around the world five times, EWE AG is one of
its know-how and technology acquired through 85 years to
the largest energy companies in Germany. Furthermore, EWE
countries in which it operates, like Turkey and Poland.
AG is the first company to have combined the expertise in
energy, telecommunications, and information technologies. The
Renewable Energy Specialist
biggest difference that sets EWE AG apart from other energy
Being a pioneer in renewable energy, EWE AG is the first
companies is the fact that it can provide various utility services
company to have expanded the area of uses of renewable energy
like electricity, gas, telecommunications, and water as a single
by using biogas in the natural gas network in North Germany.
supplier. Accomplishing to gather all of these services under one
Having accumulated knowledge on power generation through
roof, EWE Group has an upper hand in the development and
biofuel and wind power over many years, the Company shares its
improvement operations of the smart energy systems.
know-how and knowledge on construction and operation of wind
parks with other international companies.
In 2014, EWE AG increased its shares in Verbundnetz Gas AG
(VNG), one of the biggest gas companies of Europe, and became
Unique Experience in Underground Storage of Natural Gas
its main shareholder.
The natural gas storage capacity in Germany is nearly 20.8
billion m3. By owning 9 percent of this capacity, which equates
Rooted and Innovative Corporate Profile
to nearly 2 billion m³, EWE AG is one of the most important
The Group is headquartered in the city of Oldenburg in Lower
players. Having operated its own natural gas storage facilities
Saxony and its shares are owned mostly by local municipalities.
since 1970s, EWE owns many completed and ongoing projects on
With an innovative product range tailored for individual and
natural gas storage in salt domes.
corporate customers, EWE bases the procurement of the energy
16
supply of the future on the principles of offering the highest level
Powerful R&D
of sustainability, efficiency, and reliability. Managing an energy
EWE has always placed grave importance on its R&D activities in
and telecommunications grid of more than 200,000 km, EWE
order to sustain and carry forward its strong infrastructure and
is the choice of thousands of gas and electricity subscribers in
innovative perspective with a stronger foundation. Within that
the field of reliable and economic energy. Making a name for
scope, EWE has already begun to design the energy world of the
itself in the energy sector with its claim to be a technological
future together with its scientists and employees.
CORPORATE PROFILE
• 85 years of experience
• Specializing in energy,
information technologies, and
telecommunications
Riffgat, first offshore wind farm in the German North Sea.
Installed Capacity: 108 MW
17
EWE TURKEY HOLDING BOARD OF DIRECTORS
Dr. Willem Schoeber
Werner J. Brinker
Matthias Brückmann
Chairman of the Board
Vice-Chairman of the Board
Member of the Board
Born in the Netherlands in 1948, Dr.
Born in 1952, Dr. Werner Brinker holds
Born in Heidelberg, Germany in 1962,
Willem Schoeber completed a doctorate
a doctorate degree in Civil Engineering.
Matthias Brückmann is a state-certified
degree in Chemical Engineering. With more
With more than 30 years of energy sector
architectural draftsman. Before joining
than 30 years of energy sector experience,
experience, he began his career at EWE
EWE, he served as Board Member at MVV
Dr. Schoeber has worked in various
in 1978 as Gas Purchasing Supervisor,
Energie AG and worked in various executive
professional capacities that have included
before going on to build up the Waste
positions at MVV Energie AG, BFE Energy
executive positions in the international
Management Department. Subsequently,
and the Environment Institute and at
businesses of The Shell Company. Serving
Dr. Brinker left EWE, and joined Preussen
Enertec Energie und Technik GmbH. A
as CEO at swb AG, an EWE AG subsidiary,
Elektra AG (today, E.ON Energie AG) where
Member of the Board of EWE AG since July
Mr. Schoeber was appointed to the EWE
he headed up the Sales Department. In
2013, Mr. Brückmann is responsible for the
AG Board of Directors in August 2010.
1996, he returned to EWE as a Member of
Group’s sales activities.
Occupying this position until May 2013, Dr.
the Board of Directors. Dr. Brinker has been
Schoeber was responsible for the Group’s
Chairman of the Board at EWE AG since
operations in Poland and Turkey and, in
1998.
particular, the collaborative efforts initiated
in conventional energy production with
swb.
18
CORPORATE PROFILE
Dr. Frank Quante
Bekir Sami Acar
Member of the Board and Managing
Member of the Board and Managing Director
Director
Born in Konya in 1980, Bekir Sami Acar graduated
Dr. Frank Quante was born in
from Boğaziçi University’s Department of
Germany in 1966 and studied Law and
Political Sciences and International Relations.
Macroeconomics at Göttingen University;
Subsequently, he commenced his professional
he holds a doctorate degree in law. Starting
career in the automotive industry in 2002.
his professional career as an attorney
In 2004, Mr. Acar joined Bursagaz, serving
at KPMG, Dr. Quante passed the tax
respectively as Strategic Planning Specialist,
consultancy examination in 2003, after
Strategy Development and Business Appraisal
which he joined the Legal Department
Supervisor and then as Assistant General
of EWE AG. He became Chief Financial
Manager. In 2009, he actively contributed to
Officer of BTC AG, EWE’s IT company,
the establishment of EWE Enerji and presently
in 2007; in 2011, Dr. Quante took on
continues to serve as the company’s first General
the responsibilities of the EWE Group’s
Manager. Since 2013, Mr. Acar has worked
operations in Poland and Turkey. He was
together with Dr. Frank Quante as Managing
appointed CFO at EWE Turkey Holding
Directors of EWE Turkey Holding.
in Istanbul in April 2012. Since 2013, Dr.
Quante has worked together with Bekir
Sami Acar as Managing Directors of EWE
Turkey Holding.
19
ORGANIZATIONAL STRUCTURE
Managing
Director
Business
Development
Corporate
Communications
Managing
Director
Information
Technologies
Human
Resources
Financial Benefits Provided to the Board of Directors and Top
Management
The sum of financial benefits like per diem, salary, premiums,
bonuses, and dividends and provisions like allowances, travel,
accommodation, and representation expenses, means in cash and
kind, insurance, and such issued to Board of Directors and Top
Management of EWE Turkey Holding and its subsidiaries during
the year is TL 7,671,487.
Extraordinary General Assembly
The company held one extraordinary general assembly throughout
the year. This assembly took place on December 18, 2014 and the
decision to issue out a gross dividend of TL 14,000,000 from the
net distributable profit of the Company’s 2013 operations to the
Company’s sole shareholder EWE AG was ruled. The dividend was
issued out on December 29, 2014.
20
Legal
Internal Audit
Finance
CORPORATE PROFILE
21
SECTOR OVERVIEW
ENERGY SECTOR IN THE WORLD
The sharp decline in the oil prices in 2014 caused countries to revise their
economic predictions.
A
long with the growth in income and population in the world,
uncertainty in the Middle East and Libya and the developments
the demand for energy is also rapidly increasing. There has
on shale gas in America pushed the prices towards a downward
been an upsurge in both generating and consumption of all energy
trend. While Brent prices cruised around USD 100/barrel, the
groups, excluding nuclear energy. The fact that the growth rate
sudden drop starting in September pulled the price levels down
of consumption of fossil fuels is higher than the growth rate of
to USD 78/barrel by December. As of 2015, the Brent prices have
production is a critical detail that should not be overlooked.
cruised in the USD 40-50/barrel range; which is the lowest level
for the last 6 years.
Consumption of primary energy sources around the world
has increased by 2.3 percent, of which, 80 percent is due to
With the indirect effect of the downfall in oil prices on natural
the amplified demand in developing countries. In parallel with
gas prices, many countries have found the opportunity to create
economic developments, a downfall in natural gas consumption in
a profit margin; but this development was overshadowed by
the European Union and Japan has been recorded. Consumption
the natural gas crisis between Russia and the European Union.
of natural gas from the primary energy sources has boosted by 1.4
Russia’s partial invasion of Ukraine and its use of natural gas as
percent compared to last year. 81 percent of this global increase is
leverage against the EU brought topics like alternative resources,
due to China and United States of America.
gas transmission projects, and the LNG sector to the agenda.
With the growing importance in the Southern Gas Corridor, the
One of the most important developments that took place
reserves in the Caspian Sea region, and the reserves in the Eastern
towards the end of 2014 was the plummeting of oil prices. The
Mediterranean have become topics for which concrete steps have
expectation for increased demand due to speculations regarding
begun to be taken.
the desire of OPEC countries to not decrease production and to
not cut down on the supply despite low prices along with the
24
SECTOR OVERVIEW
ENERGY SECTOR IN TURKEY
43 percent of Turkey’s electricity demand is met with natural gas. More than 10
million subscribers in 69 cities are using natural gas.
T
urkey has become one of the fastest growing energy markets
and distribution of natural gas, the number of companies licensed
in the world and ranks 21st among the countries that consume
for natural gas wholesale has boosted significantly and reached
the most amount of energy in the world. The demand for energy
to 47 in 2014. Electricity generation and consumption in Turkey
in Turkey is increasing by an average of 6-8 percent each year
is also continuing to grow. In 2013, electricity consumption was
and consumption of oil equivalent of 123 million tons in 2013 is
246,356 million kWh while electricity generation was 240,154
expected to nearly double and reach 222 million tons by 2020. The
million kWh. In 2014, electricity consumption in Turkey increased
consumption of natural gas in Turkey over the last decade has grown
by 3.7 percent and reached to 255,545 GWh and electricity
by an average of 6 percent and has reached 46.5 billion m3 in 2014.
generation increased by 4.3 percent and reached 250,436 GWh.
In 2014, natural gas met 43 percent of the energy demand in Turkey,
With the prioritization of utilizing local resources for electricity
while making up 48 percent of electricity generation in Turkey.
generation, the market share of renewable energy reached to
21 percent. Natural gas maintained its share of 48 percent as a
As of right now, Turkey has a natural gas reserve capacity of 6.5
resource in electricity generation in 2014 as well. The electricity
billion m ; Turkey imports 99 percent of its natural gas need.
energy market continued to be an attention-grabbing market,
Among the top ranking countries from which Turkey imports
especially as a result of the liberalization actions in the electricity
natural gas are Russia, Iran, and Azerbaijan, with shares of 58
energy markets, establishment of EPIAŞ, and expansion of the
percent, 18 percent, and 7 percent, respectively. As of year-end
installed electricity generation capacity. Many uncertainties have
2014, the number of companies licensed gas distribution has
been resolved through long-term plans and incentives for ensuring
reached to 69. Natural gas distribution companies provide gas
security of supply. A radical change and growth in the retail sales
to over 10 million subscribers throughout 69 cities. Of these
in the electricity markets is expected to take place in the near
subscribers, 96 percent are residential. In parallel with the
future as a result of consumers gaining awareness and players
increase in the shares of private companies in both the import
familiarizing themselves with the market.
3
25
BUSINESS AREAS
EWE TURKEY STRATEGY
EWE Turkey Group aims to leverage investment opportunities created through its
group companies operating in Turkey to become the leading player in its sector.
28
BUSINESS AREAS
E
WE Turkey Group aims to leverage investment opportunities
Turkey, continue to expand in licensed areas, thus enabling the
created through its group companies operating in Turkey
Group to distribute natural gas to more subscribers and entities.
to become the leading player in its sector. Accordingly, the
With regard to inorganic growth, the Group closely monitors
Company closely monitors new opportunities offered by the
the country’s political and economic climate and related
market, and continuously improves its human resource, intra-
opportunities, while conducting the necessary analyses and
group organization and financial competence to grasp these
feasibility studies.
opportunities as they arise.
Growth and Leadership Goals
Long-Term Approach
The objective for the next period is to achieve balanced growth
A long-term industry player, EWE Turkey Group aims to build
both in the natural gas wholesale trade portfolio and in sales
upon its market leading position in Turkey and to become a
through risk assessment. Additionally, EWE Turkey Group plans to
role model in new areas of operation. Within the scope of these
focus on using contemporary portfolio management instruments
goals, Company establishes and periodically shares with its
in parallel with the development and expansion of the supply
stakeholders customer-focused mid and long-term strategies in
market. As underground natural gas storage facilities are critical
order to ensure the delivery of economic and eco-friendly energy,
to energy supply safety, opportunities will be followed up closely
and expand its customer base. EWE plans to continue investing
in the period ahead.
in its areas of focus and creating added value in the coming
years. Natural gas distribution and sales, energy efficiency and
Perfectly positioned to make a significant contribution to
renewable energy comprise the priority areas of investment.
the Turkish energy efficiency market with its long-standing
These areas benefit from EWE Group’s 85-year experience in
experience and technical expertise in Germany, EWE Turkey
Germany, and offer a high potential for value creation in both
Group has focused on growth in the areas of consulting and
EWE Turkey Group and Turkey through transfer of knowledge
contracting. With its focus on integrated solutions in energy
and technology.
efficiency, the Group aims to meet all needs of the industry,
from consultancy to implementation and measuring to financing
Investments in New Areas
from a single point of contact, and through a single product and
EWE Turkey Holding supports the intended full liberalization of
package.
the electricity market in 2016, and believes in the importance
of creating a customer-centered market. The Company has
With the 85 years of experience and know-how of EWE AG,
identified customer satisfaction and operational efficiency as the
its parent company, EWE Turkey Holding intends to achieve
main success criteria in a liberalized energy market, and develops
leadership its areas of expertise in the rapidly growing energy
its human resource and technological investments accordingly.
market, leveraging the synergy created by its companies
EWE Turkey Holding continues to make investments in line with
operating in Turkey.
this goal, while making the necessary preparations to become
one of the leading players in the retail electricity market. The
Group seeks out opportunities for both organic and inorganic
growth in natural gas distribution, one of its main business areas.
Investments in Bursa and Kayseri, two major industrial hubs of
29
DISTRIBUTION
BURSAGAZ
Bursagaz’s investments have made it the second largest private natural gas distributor in
Turkey. The Company has become a role model in the sector thanks to a great number of
investments it has realized to support operational and administrative processes through
corporate governance.
ursagaz was founded by BOTAŞ in 1992 with the purpose of
B
to seven central neighborhoods of İznik, a district with a rich
selling natural gas. After its privatization in 2004, the majority
historical background. With an existing natural gas grid of 5,342
shares of the company were purchased by EWE Turkey Holding in
km and more than 850,000 subscribers, Bursagaz plans to make
2008. Post privatization, the company accelerated its investment
an additional investment of TL 30 million by the end of 2015 to
program and extended the existing 1,650 km grid to 5,342 km
integrate İznik into its natural gas grid. The project, planned for
as of the end of 2014. Achieving grid optimization through
completion by the end of 2015, involves the construction of 150
infrastructure investments, Bursagaz has recorded a significant
kilometers of polyethylene and 40 kilometers of steel pipelines.
achievement by increasing its original BBS of 276,000 to 851,901
Bursagaz has launched special campaigns for İznik residents in
by end of 2014.
order to ease the transition to natural gas and to ensure that the
convenience and comfort of using natural gas is shared with a
Construction of İznik Natural Gas Grid
maximum number of subscribers.
Bursagaz has initiated its efforts to deliver natural gas to İznik, the
30
newest addition to its license area, by starting the construction
Quality Service with Customer Focus
of the gas grid in 2014. The project aims to provide natural gas
Carrying out its activities with a constant focus on its customers
BUSINESS AREAS
Investment:
TL
32 million
Grid length:
5,342 km
Number of subscribers:
851,901 BBS
has allowed Bursagaz to achieve the highest levels of customer
representatives. In order to increase its service quality even
satisfaction. Bursagaz was the first in the natural gas distribution
further and understand customer expectations, the Customer
industry to start up a system of no-office services. All customers
Satisfaction Measurement and Reporting Unit has conducted
can now conveniently ring the call center at 444 11 33 to carry
surveys, which have reached over 10,000 people. The survey
out every type of transaction.
has revealed Bursagaz’s success in maintaining its customer
satisfaction level above 90 percent.
As a part of the No-Office Service project, the renewed call
center was furnished with the most advanced technological
BUGA, the Mascot of Bursagaz
infrastructure and equipment, allowing more than 40 customer
BUGA was selected from among 32 contestants in the contest
service representatives, all experts in their field, to respond to
organized by the Corporate Communications and the Information
every request, suggestion or complaint from residents of Bursa.
Technology units of Bursagaz. The name BUGA was created by
Instead of having to visit customer service points, Bursagaz
combining the first two letters of the words Bursa and gas, while
customers are now able to contact the call center to carry
the body, eyes and the colors of BUGA were inspired by the
out their transactions directly through dedicated customer
corporate identity and logo of Bursagaz.
31
A World-Class Company Vision
ensure the safety of life and property as well as continued and
In 2008, Bursagaz won the EFQM European Quality Grand Prix,
reliable natural gas supply.
a first in its sector. The company has obtained certification in
the categories of ISO 9001 Quality Management Systems, ISO
IIP Gold Certificate
14001 Environment Management Systems, ISO 27001 Information
As a result of the evaluation by IIP International, Bursagaz was
Security Management Systems, ISO 10002 Customer Complaints
accredited as IIP Gold, the highest level available, becoming one
and Satisfaction Management Systems, and OHSAS 18001
of the few enterprises in Turkey achieving IIP Gold accreditation.
Occupational Health and Safety Management Systems, whereas
As part of the Investor in People’s accreditation process, a team
works to obtain certification in ISO 50001 Energy Management
of foreign evaluators has conducted one—to-one interviews with
Systems have been completed.
approximately 50 employees in various positions, earning Bursagaz
the Gold level accreditation.
Headquarters Producing its Own Energy
The construction of the new Bursagaz headquarters, designed in
An international standard that evaluates the impact of a
2014 planned to produce its own energy with the aim of drawing
company’s HR policies on 10 different areas of influence, the IIP
attention to energy efficiency, has been accelerated. The new
accreditation process is a key indicator of the value created by
headquarters features a 1,000 m² green area, reducing its total
Bursagaz’s investments in human resource practices.
CO2 emission by 30%.
Turkey’s Best Employer
GRI Approved A+ Sustainability Report
Bursagaz was granted the “Best Employer in Turkey” award in
In 2014, Bursagaz shared with public the first GRI (Global
the 50-500 employees category by the Great Place to Work, the
Reporting Initiative) approved A+ Sustainability Report in
research company that uses a global model based on the analyses
energy sector. Prepared in a period of five months, the report,
of the best workplaces worldwide. The research, conducted on
which is one of the most comprehensive of its kind created in
global, European and national levels, evaluated the confidence
accordance with GRI standards and oil & gas market annexes,
index and corporate culture of Bursagaz, while employees were
serves as a transparent look at Bursagaz’s strategies and goals for
interviewed regarding the management’s credibility, fair treatment
sustainability.
in recruitment and remuneration, objectivity, and pride in their
work.
Bursagaz Sustainability Report covers the years of 2011, 2012
and 2013. The data provided in the report has been verified by an
Bursagaz received other award in 2014, including SAP Analytics
independent organization to ensure that the report qualifies for the
Project of the Year award with its “Bursagaz Mirror Project” from
“+” category at A+ level, the highest in GRI’s reporting standards.
SAP Forum Istanbul, one of the most important information
technologies event in Turkey; the Corporate Social Responsibility
Bursagaz Earthquake Risk Management System
Award from Turkish Confederation of Employer Associations
Boasting the most modern SCADA system in the sector, Bursagaz
(TİSK); and the “Contribution to Education” award in BUGİAD’s
has established an earthquake early warning and emergency
Best of the Year event.
response system integrated in the SCADA and GIS systems to
32
BURSAGAZ
2014
2013
Change (%)
Sales Revenue
Total Assets
million TL
589
585
1%
million TL
650
611
6%
Investments
million TL
32
24
33%
Total Subscribers
BBS
851,901
818,522
4%
Grid Length
km
5,342
5,198
3%
Total Workforce
employees
275
263
5%
BUSINESS AREAS
DISTRIBUTION
KAYSERİGAZ
For the last 11 years, the investments spearheaded by Kayserigaz have helped
carry the Kayseri forward, transforming it into a modern, rapidly developing city
in its region.
K
ayserigaz, the first natural gas distribution tender by the
reinforcing its vision of a company “to be a brand which inspires
Energy Market Regulatory Authority (EMRA) in 2003, has
the sector and stakeholders.” The Kayseri natural gas distribution
invested approximately $100 million over the past 11 years to
grid, started from scratch by Kayserigaz, was further developed
make all zoned areas of Kayseri eligible for natural gas, becoming
to become one of Turkey’s largest in a short span of time. With
one of the key players in the Turkish energy sector.
a grid of 2,500 kilometers and an annual flow of over 500 million
cubic meters, Kayserigaz serves 398,536 BBS subscribers. In 2014,
Continuing its operations under EWE Turkey Holding, Kayserigaz
Kayserigaz became the first company approved by EMRA with
has been supporting the efforts to transform Kayseri into a more
regard to R&D projects in the natural gas distribution industry.
livable city through the value it creates. Since the day of its
establishment, Kayserigaz has been expanding the scope of its
Develi Natural Gas Line Construction
quality service, providing new fuel alternatives to the people of
Kayserigaz added the Develi district into its natural gas
Kayseri and laying the foundation for a cleaner environment.
distribution area in 2013, and investments began in 2015 upon
EMRA approval in 2015. As part of the project, the central Develi
Utilizing advanced technologies through its technological
district will be supplied with natural gas within 2 years. Gas
infrastructure, Kayserigaz’s focus on unconditional customer
will be supplied through a 43-kilometer long, 12” steel pipeline.
satisfaction since day one has enabled the company to achieve
Total investment for the project is planned to be around TL
a remarkable customer satisfaction level of 98 percent, further
32 million. Approximately 10 kilometers of steel pipeline, 185
33
98%
Customer satisfaction
Grid length:
2,497km
Number of subscribers:
398,536 BBS
kilometers of polyethylene pipes, 9 valves/valve assemblies and 2
CNG-powered vehicles for its emergency and maintenance
RMS-B stations will be constructed in 2015, while the rest of the
teams. This transition has helped save fuel as well as reducing air
investment is expected to be completed by the end of 2016.
pollution.
New RMS-A Station
Corporate Risk Management Activities
The RMS-A station, located in the Molu-Oymağaç region of
With the understanding that effective risk management is a key
Kayseri and serving as the entry point for natural gas into the
factor in achieving the “sustainable growth” targets of countries
city, is set to be complemented with the addition of a second
and companies alike, Kayserigaz has finalized its corporate risk
RMS-A station to ensure uninterrupted supply taking increasing
management activities. These activities involved assessing the
demand into consideration. The construction of the project, which
Company’s existing processes though a risk-focused approach
is the result of a significant investment by Kayserigaz, has begun
in order to identify areas of improvement, take risk-mitigating
in Güneşli-Kızık region located on BOTAŞ’s Turkey natural gas
action, manage risks with the potential to create value, and
transmission line.
integrate risk management activities in Kayserigaz’s processes
and strategies.
As a response to the ever-increasing demand for natural gas,
Kayserigaz is committed to minimize risks that may hamper gas
Further establishing Kayserigaz’s position as a company
supply, and it will continue its 11 years of reliable service with the
committed to international standards, the Corporate Risk
completion of its second RMS-A station. The investment is planned
Management is the completed phase of the broader Pir-i
to be completed in 2015.
Reis Project, which also involves Balanced Scorecard, Process
Management, and Human Resources Management projects.
34
Environment Friendly
The project, involving “Corporate Governance and Change
As an environment friendly enterprise, Kayserigaz has been using
Management” has earned Kayserigaz the first prize by the
BUSINESS AREAS
Association of Management Consultants. The Pir-i Reis project
ceremony organized by Kayseri Chamber of Commerce. The
has succeeded in delivering the competition’s criteria and the
Company’s “I Want Clean Air” project was awarded by the
requirements of the interview, surpassing dozens of public and
Provincial Directorate of Environment. As part of the “I Want
private competitors to receive the prize.
Clean Air” project, 22 schools were identified in the Clean Air
Action Plan by the Governorship of Kayseri. Seminars delivered in
Awards
these schools by Kayserigaz and ERÇEK members aimed to raise
In 2014, Kayserigaz received first prize from the Association of
awareness among students about the importance of clean air, and
Management Consultants with its “Corporate Governance and
demonstrate with entertaining activities how to achieve a more
Change Management” project. The award was also accredited by
livable environment. Kayserigaz’s environment-focused efforts
the International Council of Management Consulting Institutes
in 2014 were recognized for the second time by the Provincial
(ICMCI). In the same period, EWE Turkey Holding was recognized
Directorate of Environment as part of the June 5 Environment Day
for its investments in Kayseri in the “Future in Kayseri” award
events.
KAYSERİGAZ
2014
2013
Change (%)
Sales Revenue
million TL
274
259
6%
Total Assets
million TL
228
203
12%
Investments
million TL
32
9
245%
Total Subscribers
BBS
398,536
372,437
7%
Grid Length
km
2,497
2,259
11%
Total Workforce
employees
129
133
-3%
35
ENERGY TRADING/SALES
EWE ENERJİ
Offering flexible sales solutions to the country’s eligible consumers and distributor
companies with its diversified supply structure and extensive storage operations, EWE
Enerji boasts Turkey’s largest private wholesale trade portfolio with a trade volume of
2 billion m³.
W
ith its strong infrastructure and deep-rooted expertise,
EWE Enerji began to offer electricity sales and energy consultancy
EWE Enerji has become a reliable and indispensable
services in 2013, and after a period of steady growth, significantly
energy partner since commencing operations in 2009. Thanks
increased its customer base, particularly in Istanbul, Bursa and
to its diversified supply structure, customer-focused solutions
Kayseri. Consequently, the Company has increased its wholesale
and expertise in portfolio management, EWE Enerji is perfectly
volume in parallel with wholesale traders in the market, pressing
positioned to deliver natural gas and electricity products and
forward towards its goal of becoming a key player in electricity in
services to meet the needs of its corporate customers.
addition to natural gas.
EWE Enerji has increased its turnover by 256 percent in 2013,
EWE Enerji continues to strengthen its technical and operational
becoming the fastest growing company in the 2014 Capital 500
infrastructure in line with Turkey’s goal of energy market
listing. The Company has ranked 77th in the Fortune Turkey 2014.
liberalization, with the aim of becoming the first choice of
With its natural gas trading volume in 2014, the Company has
residential customers who will be able to select their own
maintained its position as the biggest player in the sector after
electricity suppliers after the intended liberalization. In this regard,
BOTAŞ.
the Company leverages EWE Group’s 85 years of knowledge,
experience and expertise in German energy markets.
Natural Gas and Electricity Operations
With a diversified supply structure and extensive storage
With active participation in sponsored event and leading sectoral
operations, EWE Enerji offers the country’s eligible consumers and
associations, EWE Enerji continues to offer its knowledge and
distributor companies flexible sales solutions. Boasting Turkey’s
experience to support Turkey’s developing and changing energy
largest private wholesale trade portfolio with a trade volume of 2
industry.
billion m³, the company has become the most popular business
partner in the industry.
IT Investments
EWE Enerji continues its investments in Information Technologies
36
In parallel to its success in the natural gas industry, EWE Enerji
in line with its growth targets and its focus on developing new
offers value-added services to its corporate customers, leveraging
fields of business. In 2014, all processes related to “Corporate
the extensive experience and expertise transferred from Germany.
Resource Planning and Customer Relations Management” have
In addition to energy sales, EWE Enerji provides consultancy
been transferred over to SAP, and the first phase of this project has
services to customers in all stages of their conversion projects.
been completed successfully in a short span of six months.
BUSINESS AREAS
The customer lifecycle, monitored through different systems
Exchange Program” designed specifically for its employees, EWE
before the project, is now managed with a holistic approach
Enerji takes part in the continuous transfer of know-how with
through a single system. EWE Enerji is now able to manage the
EWE AG group companies operating in Germany with 85 years
entire customer lifecycle, including monitoring, service offer,
of experience in Energy, Telecommunications and Information
contract and customer management processes through SAP,
Technologies.
increasing the quality of service offered to customers.
Risk Management and Internal Control System
HR Investments
With its focus on Risk Management and Internal Control System in
Fully aware of the importance of experienced human resources in
line with its goal of institutionalization, EWE Enerji has developed
the energy sector, EWE Enerji attaches particular importance to
procedures on internal control in energy trade, and has started to
the technical and social development of its employees through
manage its internal control and risk management systems through
training courses and workshops. Through the “TEX - Technical
its state of the art IT systems.
EWE ENERJİ
2014
2013
Change %
Sales Revenue
million TL
1,653
1,571
5%
Total Assets
million TL
400
367
9%
Total Workforce
employees
29
17
71%
37
ENERGY SERVICES
ENERVİS
Enervis combines the 85-year know-how of EWE AG on energy efficiency and
renewable energy with the sectoral expertise, experienced human resources and
advanced technological infrastructure of Turkey for the benefit of Turkish people and
industry.
nervis began operations in the energy and distribution sector
E
Turkey’s energy is among the priority goals of Enervis. The Company
as a service provider in 2012. With its headquarters in Istanbul,
leverages its team of experienced engineers, next generation
Enervis conducts its business activities via company branches in
equipment and EWE AG’s extensive experience to deliver its energy
Bursa and Kayseri. Currently, Enervis’ business activities include
efficiency services. Another priority area for Enervis is to promote
energy efficiency in buildings and in industry, ISO 50001 Energy
the expertise and model practices of group companies in the sector,
Management Systems and renewable energy consulting services,
increasing the competencies of and raising awareness among all
technical & vocational training and certification, natural gas
parties providing their services in the industry.
infrastructure services, internal installation control, meter calibration,
38
meter reading, meter switch on/off services, chimney testing and
Energy Efficiency Consulting to Bursa Industrialists
inspections. With 277 employees, Enervis ranks among the leading
With support from the Ministry of the Economy and backed by EWE
companies in the energy services sector. Ensuring the efficient use of
AG’s 85 years of experience and know-know, Enervis is providing
BUSINESS AREAS
energy efficiency consulting services to the Bursa Organized
Enervis.
Industrial Zone Textiles and Automotive Clusters, under the
Measurement and Verification: Measurements are conducted
Development of International Competitiveness (UrGe) Project. EWE
on selected performance criteria to identify and record the level of
AG energy experts have conducted energy studies for this initiative,
energy efficiency achieved.
working in collaboration with specialized Enervis engineers. All
aspects of an enterprise have been reviewed in these comprehensive
Return on Investment: The monthly fixed payoff on investment
studies, including energy leakage loss and exhaust heat recycling
is calculated using the efficiency benefit obtained by the business,
systems. Energy consumption maps have been drawn up to give
based on its average monthly capacity.
an accurate picture of where and how energy is actually consumed
at the establishment. In addition, detailed reports have prepared
Maintenance: Enervis provides periodical as well as breakdown
to explain how energy can be saved, how energy efficiency can be
maintenance during the warranty period of two years.
accomplished, the kinds of capital investments that must be made,
and information on return on investment.
Energy Roadmap
Energy Master Plan studies are conducted to help identify the
Energy savings of up to 45%
existing energy consumption of municipalities, and devise strategies
Enervis’ efforts on this project indicate that industrial enterprises can
to achieve energy efficiency goals. Implemented for the first time
save energy at rates of up to 45%. Returns on investment for energy
in Turkey in Gaziantep Municipality in 2014, the project will serve
efficiency enhancing projects can be expected in a period of less
as a model for other Metropolitan Municipalities in the future.
than two years, an added benefit for enterprises. The short return
The Master Plan, the first in Turkey to be prepared by a municipal
periods on these energy saving investments demonstrate that the
government, will evaluate Gaziantep’s renewable energy (wind,
country has still a long road ahead, while highlighting the significant
hydroelectric and solar) potential, energy efficiency, effectiveness
potential of the country. These energy saving opportunities have
of energy supply and the corporate improvements on energy
shown that companies can reduce their emissions by at least 14,948
management. The study will set strategic goals and targets to ensure
tons of CO2 annually, saving approximately 26,000 trees.
efficient energy consumption, thereby reducing energy costs.
Performance Guarantee
In the first phase of the study, Enervis has conducted preliminary
Enervis also provides assistance in implementing the energy
surveys in Gaziantep Municipality’s transport department
efficiency enhancing projects identified during efficiency assessment.
maintenance workshop, road transportation, clean water force
By drawing on German expertise and experience gained over 1,300
mains, 320 thousand tons-per-day capacity wastewater treatment
energy efficiency projects in Germany, Enervis serves Turkish
facility, and rail systems. With the completion of the Energy Master
industrialists through its custom-tailored EnerVAY (Energy Efficiency
Plan, Gaziantep will devise its medium and long-term energy
Improvement) model with a guaranteed high-performance in energy
strategies, enhancing efficiency and reducing the environmental
efficiency. Enervis is committed to contribute to the development
impact of all energy resources.
of Turkish industry with its advanced equipment, fully self-sustained
financing model, and turnkey business model.
Renewable Energy Practices
Drawing on EWE AG’s expertise and experience on renewable
The stages of the EnerVAY model are as follows:
energy, Enervis offers comprehensive and customized solutions
for customers in Turkey, ranging from consultancy, survey, project
Project Design: Following a comprehensive energy assessment
design, system and equipment procurement, implementation
process, projects, technical specifications and contracts are drawn up
and maintenance to help them seize investment opportunities in
to implement improvements in areas identified.
renewable resources, in particular solar energy.
Performance Guarantee: Performance criteria are determined in
Training and Certification
order to serve as indicators of the energy efficiency outcome of the
Enervis offers training activities for the energy industry with the aim
project, with Enervis providing its guarantee to achieve these criteria
of improving employee qualification and service quality its business
through the contract.
partners. In this context, Enervis has signed a cooperation protocol
with the Vocational Qualification, Exam and Certification Center
Implementation and Financing: The project is delivered as a
of the Bursa Chamber of Commerce and Industry to collaborate on
complete turnkey solution, and the investment is fully financed by
training and certification.
39
SUSTAINABILITY
VALUES AND PRINCIPLES
Reliability
Excellence
Entrepreneurship
Responsible
Ahead
Together
42
SUSTAINABILITY
CORPORATE SOCIAL RESPONSIBILITY
Fully aware of its role in society, EWE Turkey Group undertakes to carry out corporate
social responsibility projects on education, culture and sports for the benefit of the
community.
E
WE Turkey Group’s efforts focus not only on operational and
Additionally, as part of the Energy Efficiency Week events, the
economic aspects, but also include the Company’s vision of
Marketing Unit of Bursagaz Customer Services Department
creating public benefit. The Group companies have realized the
organized visits to a different school every day, reaching a total of
following corporate social responsibility projects in 2014:
1,652 students in five schools.
TRAINING AND EDUCATIONAL ACTIVITIES
Education Volunteers Association
Since its establishment in 2005, the Bursagaz Education Volunteers
Bursagaz Training Programs
Association (EVA) has been providing a diverse range of support
Attaching great importance to training, Bursagaz continued its
to education such as renovation of village schools and providing
training programs oriented for university students in 2014. In
scholarship opportunities, funding its activities via employee
this context, students of the Gas and Installment Technologies
donations and budget allocations. Bursagaz EVA has been working
Department of Uludağ University were given training courses
in collaboration with the Bursa-Eskişehir-Bilecik Development
on “Emergency Response for Natural Gas”, “Natural Gas Grid
Agency (BEBKA) on a project entitled “Creating Value for the
Maintenance”, “Natural Gas Grid Design” and “Gaswork Program.”
Community through Facilitating Education for the Disabled”,
which was initialized in 2011. The initiative involves the renovation
Bursagaz organizes various education activities aimed to raise
of special classrooms to ensure that disabled students are engaged
student awareness on energy efficiency and the safe use of natural
in their studies in a healthy classroom environment. The project
gas, reaching over 1,600 students in 2014.
aims to reach 100 special classrooms. The Association completed
43
the third phase of the project in 2014, delivering 82 special
awareness on important aspects of natural gas usage, as well as
classrooms so far. Thanks to this social responsibility initiative, 777
methods for economic and safe use of natural gas.
disabled elementary school children have been provided with the
opportunity to receive their education in modern facilities with the
Dolgi Children’s Theater
highest standards.
Fully aware of the importance of young people as our legacy for
the future, Kayserigaz, with its endearing mascot Dolgi, organizes
Bursagaz EVA also provides its support to young people in sports.
theater performances for students enrolled in public schools,
Through its basketball club, EVA trains young people interested
in order to raise awareness among children about natural gas,
in basketball. In 2014, 36 players and 3 coaches of Bursagaz EVA
energy saving, and protecting the environment. Kayserigaz is also
Basketball Club received education in English and mathematics
committed to deliver its educational activities online through
alongside their intense basketball training.
the Dolgi website, which captures the children’s hearts with a
wide variety of events and activities, ranging from education,
In 2014, Bursagaz organized the Third Inter-High School Quiz on
entertainment, contests and prizes.
Education. Students who rank in top three received monetary
awards, while their schools were awarded printers.
Reaching thousands of children every year, the Children’s Theater
entertained over 4,000 students in schools identified as part of the
Natural Gas Training House
“I Want Clean Air” project by the Governorship of Kayseri, on the
Kayserigaz Natural Gas Training House was established as part of
occasion of the April 23 National Sovereignty and Children’s Day
the Company’s 10th anniversary events. Covering an area of 70 m²
events.
on campus grounds, the training house is furnished with various
A-Class energy efficient devices for all purposes, while the facility,
Dolgi also performed in shopping malls to more than 1,000
powered by solar panels, is self-sustaining in terms of energy.
children as part of the Ramadan activities. In addition, the
Company published a children’s storybook, entitled “Dolgi and
The house is open to all visitors who wish to pay their bills,
Friends at Work” on the occasion of the “World Book Day and
subscribe to natural gas, or carry out any other transaction. The
Libraries Week”. With an initial print run of 5,000 copies, the book
house also serves as a training facility where Kayserigaz employees
was distributed to children through various activities.
provide practical information on common mistakes in natural gas
usage, efficient use of natural gas, and measures to take in case of
SUPPORT FOR COMMUNITY
gas leakage or a similar high-risk situation.
Support for Obstacle-Free Living
As part of the 2014 Energy Efficiency Week events, Kayserigaz
As part of the December 3, International Day of Persons with
offered practical training courses in Natural Gas Training House for
Disabilities activities, Kayserigaz offered electric wheelchairs to 10
customers, civil servants and NGO representatives in order to raise
individuals with disabilities in order to improve their lifestyle. With
this initiative, Kayserigaz aims to raise awareness in general public
about inclusion and help overcome challenges faced by individuals
with disabilities.
The Natural Gas House
generates its own energy
with solar panels
As part of its commitment to become part of a “livable world
and sustainable life”, Kayserigaz met with 300 individuals with
disabilities visiting Erciyes from around Turkey on the occasion of
44
SUSTAINABILITY
the Fourth Handicapped Skiing Festival, which was sponsored by
Memorial Forest
Kayserigaz.
Bursagaz plans to plant 4,000 saplings as part of its social
responsibility project, “Bursagaz Memorial Forest”. The protocol for
Support for LÖSEV
the project was signed with Bursa Regional Directorate of Forestry,
Bursagaz places free-of-charge advertisements in its periodical
and the planting has begun.
Mavi Yeşil (Blue & Green) and organizes aid campaigns to gather
clothing and supply in support of LÖSEV.
Set out with the motto “A Clean Kayseri, In Peace with the Green
and Friends with the Blue”, Kayserigaz visited the Memorial Forest,
BURAK
created through the efforts of its employees. Commemorating the
Bursagaz Search & Rescue (BURAK), which is entirely composed
victims of the Soma disaster, 301 saplings have been planted in
of volunteers, takes part in search and rescue operations across
memory of lost miners.
Turkey in the event of accidents or natural disasters. In 2013,
BURAK and AFAD (Disaster and Emergency Directorate) entered
Grants and Donations Made Within the Accounting Period
into a Mutual Assistance and Collaboration agreement.
During the accounting period, the Group has spent a total of TL
284,105 on grants and donations made to various foundations and
In 2014, the 13-person BURAK team received their scuba diver’s
associations, in particular to the Education Volunteers Association,
training and obtained their one-star diver certificates, acquiring the
whereas an additional TL 27,876 was spent on Social Responsibility
skills necessary to provide underwater search & rescue operations
Projects.
as well.
45
HUMAN RESOURCES
The Human Resources policy of EWE Turkey Holding is based on the value that the
Company places on its employees. The Company’s objective is to be a corporation
that creates high added value for sustainable growth, an institution employing the
most successful professionals in their respective fields, who take pride in being a part
of the activities of all company stakeholders.
E
WE has adopted a growth-focused approach that is fostered by
Turkey, not only in the area of operations but also in terms of
a long term and permanent policy in its operations in Turkey.
sharing information and experiences in other areas such as sales,
With this viewpoint, in the long term, highly qualified human
control and finance. The TEX program is important in terms of its
resources are one of the most fundamental building blocks that
bringing together the dynamic work force of a rapidly growing
EWE Turkey Holding depends on in pursuing its goal of growth.
country with a huge potential like Turkey with a country like
All EWE Group employees are valued and supported in their
Germany, which has largely completed its process of growth,
professional and personal growth.
standing among the leading countries in the world technologically
and economically and where legislation and operations in the
The Concept of Corporate Learning
energy sector have matured. The collaboration is a project that
EWE Turkey Holding’s human resources represent an asset that
provides both sides with benefits and vision in the context
has been structured based on a concept of corporate learning.
of sharing technical know-how. The program in fact not only
Institutionalizing accumulated know-how and spreading
makes sharing technical know-how possible but also provides
competencies out at every level of the enterprise is one of the
an opportunity for sharing cultures. All of the Group companies
company’s core strategies. Corporate learning starts with the
stand to benefit from the TEX Program, which promises returns
orientation process that every newly hired employee goes through
that will create significant added value for the various enterprises.
and then continues and is updated at Employee Sharing Meetings.
In countries like Turkey, where know-how transfer is limited,
being a part of such a project means standing a few steps ahead
46
The TEX Program
of the sector. The process is of great benefit, both in terms of
Thanks to the TEX (Technical Exchange) program, employees
observing the differences in current applications and finding ways
of the EWE Turkey Group find the opportunity to work at EWE
of integrating positive aspects, and with respect to learning about
companies in Germany. This exchange program promotes the
projects still in the planning stage from experts who have long
exchange of technology and know-how between Germany and
been involved in their implementation.
SUSTAINABILITY
The Hiring Process
the Company won an award in 2014 for being Turkey’s Best
With an HR policy based on being the kind of employer everyone
Employer in the 50-500-employee category, a commendation
wants to work for, all employees are given equal chances and
of the surveying enterprise Great Place to Work, which bases its
opportunities regardless of their gender or ethnic background.
analysis of the best workplaces in the world on a global model.
EWE Turkey’s objective is to be a “preferred workplace.” In an
atmosphere of increasing competition, the most effective hiring
Bursagaz employees are offered training programs geared to
processes are adopted in the effort to seek out employees with a
their needs and the company conducts competency and career
high achievement potential.
expectation analyses for all employees to facilitate individual
development and growth planning and practices. Besides these
Respect for Employee Rights
efforts, Bursagaz implements a coaching system. This system gives
Openness, sustainability and respect for employees’ rights are
each employee the opportunity to choose his/her own coach,
among the general principles that EWE Turkey has adopted. EWE
who helps the individual in matters of personal development and
Turkey implements an employee satisfaction survey once a year
technical skills, making use of personalized training programs.
to assess the degree to which employees are satisfied with their
Moreover, an “independent fund” has been set up to afford each
jobs, the services offered to customers, the vision and policies of
employee an individual privilege so that he/she might find the
the corporation, being an EWE Turkey employee, and other criteria
opportunity to set a balance between business and social life. The
that include interdepartmental cooperation and team spirit,
company received various certificates and awards in 2014 for its
management style, employee training, internal communications,
efforts within this framework.
workplace conditions, social rights, acknowledgment and work
evaluations, and salary policies. Satisfaction-enhancing activities
Parallel to the increase in its turnover in 2014, EWE Turkey Holding
are organized for aspects of the enterprise that reflect a low degree
increased the number of its employees, working with a total of
of satisfaction among employees.
739 employees as of the end of 2014. Of its employees, 29 are
stationed at Holding headquarters, 275 work at Bursagaz, 129 at
Happy Employees
Kayserigaz, 277 at Enervis and 29 at EWE Enerji.
The satisfaction of employees and their loyalty to the Company is
something on which EWE Turkey Holding places great importance.
The Pole Star Project
Communications between employees are enhanced with activities
EWE Turkey Holding launched the “Pole Star” project to share its
designed to increase motivation and satisfaction such as football,
corporate values and principles with all of its employees throughout
volleyball and bowling tournaments, iftar gatherings and picnic
Turkey. As part of the project, separate meetings were held with the
events. The families of employees are invited to some of these
employees of Kayserigaz, Bursagaz, EWE Enerji and Enervis.
events to reinforce a sense of belonging to the company.
The EWE Cup
In 2014, Bursagaz received an IIP Gold Certificate, displaying its
All of the Group Companies in Germany, Poland and Turkey
dedication to investing in people to elicit high performance and to
participate with their teams in EWE AG’s annual football
uphold the standards of excellence of the company. Additionally,
tournament.
NUMBER OF EWE TURKEY GROUP EMPLOYEES
2011
2012
2013
2014
EWE TURKEY HOLDING
14
16
20
29
BURSAGAZ 258242 263 275
KAYSERİGAZ
164
149
133
129
EWE ENERJİ
10
13
17
29
ENERVİS
-
131
251
277
TOTAL
446551 684 739
47
INFORMATION TECHNOLOGIES
The EWE Turkey Group makes a strategic contribution to the Information
Technologies Department and other business units to promote competitive and cost
advantages with effective and productive business solutions.
T
A Project and Portfolio Management Approach
strategies and goals and draws up plans to ensure the achievement
throughout the group to ensure its implementation and wide
of these goals. The EWE Turkey Group makes a strategic
adoption. Projects are reported transparently and shared with the
contribution to promote competitive and cost advantages with
highest level of stakeholders to encourage participation in the
effective and productive business solutions.
efforts.
The EWE Turkey Holding Corporate Governance Vision
The portfolio management approach is handled with effective
The Group determines its IT organization and management models
project and resources planning; common projects are consolidated,
with an eye to providing all of its companies with the highest
resulting in fruitful synergy. To increase the contribution
quality of IT services. Activities to implement these models and
of projects to the business unit, a system of continuous
achieve consistent improvement are conducted as needed. A
communication is followed to achieve coordination between group
Center of Excellence organizational model has been adopted to
companies.
he EWE Turkey Holding Information Technologies (IT)
Department sets up the Group’s short- and long-term IT
A standard project management method is disseminated
make use of resources the most effectively and help employees
specialize in their areas of interest. This method has allowed
Standardization & Consolidation
existing specialties to benefit the entire group. Consolidated
All applications in the Group, including office software, business
systems as well as systems awaiting consolidation are organized
solutions, network and security solutions, mobile solutions, are
to support effective demand and change management. Besides
consolidated so that the entire group organization may benefit.
a Technical IT management, the target of the organization is
48
to create a transparent, stable, objective, dynamic, open and
In this way, cost advantages and sustainability is achieved for
respectful IT team that speaks the corporate language. Committees
the entire group. The fundamental condition for consolidation is
are formed and managed to increase participation and knowledge-
standardization. As it stands today, most of the standardization for
sharing in decision-making mechanisms.
applications and hardware has been completed.
SUSTAINABILITY
Processes Management
that will facilitate change management and testing management
The target here is to ensure that IT processes are documented,
continues. The project aims at documenting efforts conducted
optimized, measured and continuously improved. The goal is to
with different consultants and for different goals, managing
see that experience gained makes it possible for services to reach
differences and creating data banks for future periods. Testing
all the business departments.
automation is underway to lighten the increasing testing load of
users in consolidated systems and ensure the sustainability of the
A process-based service management approach has been adopted
system. The project foresees a fully automated testing system. The
to ensure that services are delivered at the right time and at the
project will be completed in 2015.
desired level. The quality of processes is constantly measured,
allowing continuous improvement.
The Data Security Project
The data security project is being undertaken to achieve
Developing Collaborative Platforms
consolidated data security in all of the Group companies and to
Achieving the collaboration needed to carry the 85 years of
raise data security awareness. Data classification, physical and
experience that EWE AG has gathered into Turkey is a primary
virtual security will be included within the scope of ISO 27001
goal. This makes possible the transfer to Turkey of Germany’s best
certification as part of the project.
practices and service models. In the same way, operations are
also conducted to ensure that there is collaboration and increased
Mobile Strategies and the Mobile Platform
synergy between the companies active in Turkey.
In recent years, the increase in the need for mobile solutions has
required planning and a strategy for the whole group that will
The Data Security Approach
make cost advantages possible. A project to implement such
Operations are conducted to ensure that the most important
a strategy and create a mobile platform is now underway. The
corporate value, the protection of data, is sustained and that IT
project will be completed in 2016.
systems work safely and securely. Security policies and procedures
that are applicable to the entire group and its business partners are
System Consolidation
determined, implemented and audited.
The non-SAP and network systems of all of the Group companies
are being consolidated. This approach aims to facilitate system
Some of the projects that the EWE Turkey Group completed in the
management and to increase cost advantages and collaborations.
area of IT in 2014 are the following:
The project is targeted to be completed in mid-2015.
BPM (Business Process Management)
E-Transformation Projects and the E-Ledger
The BPM project was initiated to devise a life model that would
Within the framework of the E-transformation of all of the
ensure end-to-end documentation of all business processes, their
Group companies, projects are designed so that the greatest
optimization and continuous improvement. The target of the
benefit is reaped both in terms of fulfilling legal requirements
project is to identify and consolidate all processes that can be
and also to ensure that value is added through a consolidated
consolidated and make as efficient as possible those processes that
e-transformation approach that encompasses all of the
cannot be consolidated. Drawing process maps as well as achieving
companies.
performance management, risk management, identifying duties
and responsibilities and process-based controls are all factors that
Technical Exchange Projects - the ECATT Project
facilitate the project. The project is expected to be completed by
The platforms and solutions used at EWE AG are disseminated into
2017.
the EWE Turkey Group companies for the purpose of adding value
to business departments and processes. With the launching of the
SAP Changes and Testing Management
Testing Automation Project (ECATT) at Kayserigaz and Bursagaz,
To ensure the quality and standards of the projects undertaken in
impact management of all systems will be monitored, which will
the SAP environment, the project of implementing instruments
support a proactive IT vision.
49
FINANCIAL INDICATORS
EWE TURKEY GROUP
2014
2013
Change %
Consolidated Sales Revenues
million TL
2,140
2,041
5%
Total Assets
million TL
1,765
1,674
5%
Shareholders’ Equity
million TL
672
659
2%
Gross Profit
million TL
129
101
28%
Operational Profit
million TL
60
55
10%
Investments
million TL
62
38
62%
PROFIT DISTRIBUTION POLICY
ur Company’s profit distribution policy has been devised
O
it will undertake. Distribution of profit for the previous year and
with a view to attaining the sustainability of the
the payment of dividends are subject to the proposal prepared
enterprise and maximizing the revenues of our shareholders.
by the Board of Directors for submission to and approval by the
Profit distribution at our Company is undertaken within the
General Assembly. The Board of Directors may decide on whether
legally required period in line with the provisions of the Turkish
it will make a proposal for the distribution of profit, if any, and on
Commercial Code and the methods and principles delineated
the amount of dividends; shareholders may accept or reject this
in our Articles of Association. Each shareholder is entitled to
proposal through the General Assembly.
distributed dividends in the proportion of its shares. No privileged
shares have been distinguished with respect to profit distribution.
Our Company has set down its general policy on paying dividends
The profit to be distributed is determined by the General Assembly
to shareholders on the basis of the company’s operational
in the light of the company’s liquidity status and the investments
performance, its financial status and developments in other factors.
RISK MANAGEMENT
Risk Management Policy
operations. These risks comprise market risk, foreign exchange risk, fair
The Company launched its Integrated Risk Management (IRM)
value interest rate risk, price risk and cash flow interest rate risk, credit
endeavor under the direction of the EWE AG IRM Department
risk and liquidity risk. The Group’s general risk management program
in 2012. In this connection, the group companies were provided
focuses on minimizing the impact of volatile financial markets and
with training, responsibilities with regard to risk were designated
probable adverse effects on the group’s financial performance.
and the processes related to risk and related controls were
defined. In the quarterly risk evaluations held with managers and
Risk management is implemented within the framework of the
staff, strategic, financial risks as well as market price, legal and
policies approved by the Board of Directors.
compliance, operational, liquidity, credit, project and reporting
risks are identified and reviewed. Risk impacts and probabilities
a) Market risk
are measured and rated in this period and risk-related controls are
Foreign exchange risk
defined. Controls are assessed annually and action is taken in the
The Group is exposed to foreign exchange risk due to its foreign
event of any control deficiencies. Management reports on these
exchange transactions. Foreign exchange risk consists of the risk
processes are drawn up periodically. The SAP GRC software is used
posed by future commercial transactions and recorded foreign
for monitoring the risk management process.
exchange currency asset and liability amounts. Management
analyzes the Group’s foreign exchange position and places
52
Prospective Risks
limits when needed, managing foreign exchange risk by enacting
The Group is exposed to various financial risks by virtue of its
foreign exchange purchasing contracts.
Price Risk
debts) from cash and cash-equivalent values. This ratio is found
The Group has no financial assets that expose it to price risk.
by dividing net financial debt by the total shareholders’ equity
appearing on the balance sheet.
Interest Rate Risk
This is an important risk because of the effects of changes in interest
Legal Risks
rates, interest rate-sensitive assets and liabilities on financial results.
There are lawsuits that have been brought for and against
In order to minimize the impact of interest rate fluctuations, the
distribution companies in the Group that are still ongoing. The
period of change in interest rates are appropriately adjusted to
Group makes its evaluation of the possible outcomes of these
accommodate financial debts and receivables and “fixed interest
lawsuits on the basis of the views of its legal consultants and sets
rate/variable interest rate” and “short term/long term” debts are
aside provisions for possible gains and obligations.
balanced within their own accounts.
Environmental Risk or Matters Causing Damage,
b) Credit Risk
Occupational Safety Risks
The Group is exposed to credit risk because of its commercial
Risks related to the Environment and to Occupation Safety are
receivables owing from forward sales and the accounts kept at
monitored as a part of Integrated Risk Management. At quarterly
the banks. Maturities in this context are generally less than one
intervals, risk assessment sessions are held with managers and
month. Guarantees are obtained wherever needed in sales. The
staff to identify risks, define controls, evaluate these controls
Group is experiencing no issues with collections.
on a yearly basis and take the necessary action, and to draw up
management reports on the process.
c) Liquidity Risk
Liquidity risk management is related to keeping an adequate
Bursagaz and Kayserigaz have ISO 14001 (Environment
amount of cash and securities on hand, the adequacy of credit
Management Systems) and OHSAS 18001 (Occupational Health
transactions, the disposability of funds and the ability to
and Safety Management Systems) certification.
close off market positions. The risk of failure to fulfill financial
obligations is eliminated through the appropriate management
Information Technologies Risks
of the balance sheet and cash flow. In this context, care is given
Risks related to Information Technologies are monitored within
to keeping appropriate maturities on receivables and to protect
Integrated Risk Management. At quarterly intervals, risk assessment
short-term liquidity, attention is given to setting up targets for
sessions are held with managers and staff to identify risks, define
net working capital management and keeping balance sheet
controls, evaluate these controls on a yearly basis and take the
proportions at determined levels.
necessary action, and to draw up management reports on the process.
Capital Risk Management
Bursagaz and Kayserigaz have ISO 27001 (Information
Among the main goals of the Group is providing partners with
Technologies Management Systems) certification.
revenues and shareholders with benefits, and reducing capital
costs; the Group tries to perpetuate an appropriate capital
Emergency Action Plan
structure so that its activities may be continued.
Kayserigaz and Bursagaz have created a joint emergency action
plan to be put into operation in the event of possible damage to
The Group monitors capital by utilizing the net financial debt/
the natural gas grid during a natural disaster. The plan is geared
equity ratio. Net financial debt is calculated by deducting the
to minimize loss and damage and drills, meetings and training
total of financial debts (comprising long and short term financial
sessions are conducted in this context.
December 31, 2014
December 31, 2013
Cash and Cash-equivalents (Note 3)
276,361,684
254,167,722
Minus: Financial debts
-
(46,883,072)
Net financial assets
276,361,684
207,284,650
Total shareholders’ equity
672,086,823
658,522,917
Net financial assets/ shareholders’ equity multiplier
41.12%
31.48%
53
INFORMATION ABOUT THE INTERNAL
CONTROL SYSTEM AND INTERNAL AUDITING
OPERATIONS
The Internal Audit Department conducts its system, compliance, organizational, operational, process and performance inspections guided
by the principles of independence and impartiality. It conducts special audits, reviews and investigations in the name of the Board of
Directors. It also provides consultancy services over the year in order to contribute to the shaping of the internal control system.
The Department carries out the following work according to the goals below which have been decided upon with the Group companies
within the framework of a risk-based auditing plan.
• Compliance with legal regulations,
• Compliance with company regulations and external requirements,
• Protecting Company assets by considering economic productivity,
• Setting up an effective and appropriate internal control system,
• Preventing irregularities,
• Optimizing processes within the Company as a whole
The Internal Audit Department makes recommendations for changes in processes, regulations and procedures based on auditing results.
Independent Audit
In the preparation of the consolidated financial statements, the Group companies draw up financial statements and footnotes in
compliance with Turkish Accounting Standards and these financial statements and related footnotes are subject to the auditing
procedures of Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi (Güney Independent Auditing and Certified
Public Accountant and Financial Advisory Joint Stock Company-a member firm of Ernst & Young Global Limited). Later, these financial
data are reviewed by the EWE Turkey Holding financial reporting department in accordance with Financial Reporting Directives, and the
consolidated financial statements are considered following this review. The consolidated financial statements are then audited by the
independent auditing company Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi (Güney Independent
Audit and Certified Public Accountant and Financial Advisory Joint Stock Company-a member firm of Ernst & Young Global Limited).
54
OTHER MATTERS
Lawsuits that May Have an Impact on the Company’s Financial Status and Operations
The Group has various disputes from past years with BOTAŞ and EMRA. As of the date of the report, the Group has various ongoing
lawsuits related to its disputes with BOTAŞ and EMRA. In line with the views of Group Management and the Group’s legal advisers as
well as in accordance with general prudence, provisions in the amount of TL 44,073,723 have been set aside in the consolidated financial
statements with respect to probable cash outputs that may be caused by these lawsuits.
The Company’s Important Research and Development Operations
There is no important ongoing research and development activity or any such planned activity for the coming years.
Legal Procedures to benefit the Controlling Company
To the best knowledge of the Board of Directors, all legal procedures undertaken during EWE Turkey Holding’s 2014 accounting year
for the benefit of its own controlling company EWE AG or its affiliated companies or for any other subsidiary under EWE AG’s directive
have been appropriately performed. Since there have been no precautions taken or avoided that may cause the Company to incur loss or
damages, there is no matter that requires counterbalancing accounts.
Events Occurring After the Date of the Balance Sheet
There has been no event of any significance occurring within the EWE Turkey Group after the end of the operational year that might
affect the rights of its partners, creditors or other related persons or institutions.
55
EWE Turkey Holding A.Ş.
FSM Mah. Poligon Cad. Buyaka
İş Kuleleri A Blok Kat: 14
34471 Ümraniye / İstanbul / Turkey
T : +90 216 656 65 00
F : +90 216 656 65 09
www.ewe.com.tr

EWE Turkey Holding Annual Report 2014

Transcription

Similar documents

Otep Battle Ready

More at norfolktourism.ca/turkey

J. Susan Traglia

Cajun Fried Turkey

turkcell yds

turkey thigh skinner deboner - Prime Equipment Group, Inc.

Untitled - HEVI-Shot

Anna Vasquez - Study Abroad

turkey as a major supplier from mediterranean region 01/09/2015