kolİn group of companies

KOLİN GROUP OF COMPANIES

2012 ANNUAL REPORT

02Our Vision, Mission, and Strategy

03 Our Fundamental Values and Strengths

04 Company Profile

06 Milestones

10 Kolin in Numbers

12 Companies of the Group

14

Message from the Chairman

16 Executive Board

18 Sectoral Analysis

24 Sectoral Performance

30 Construction and Contracting

44 Energy

54 Port and Shipyard Operation

64 Mining

68 Tourism and Services

74Trade

78Industry

84Quality-Confidence-Stability

92Financial Highlights

162Addresses

Contents

KOLİN GROUP OF COMPANIES

2012 ANNUAL REPORT

Group of Companies 2012 / Annual Report

02

OUR VISION

To be a reputable, trustworthy, and market-leading brand in the industry while keeping service and product quality and customer-focus

at the highest levels and in compliance with international quality standards. To be one of the leading names in the business areas in

which the Company sees growth potential and to extend its domestic successes to the global arena.

OUR MISSION

To grow as an investor by bringing our 36 years of experience to bear in a range of business fields, through important projects which

provide social and economic benefits to all. To operate using our quality approach established with the tenets of knowledge, highly

skilled workforce and state-of-the-art technology. To enact an investment policy shaped by the fundamental principles of being a

pioneer and creating a difference. To act with the knowledge that long-term profit lies within quality. To contribute to the development

of the economy and the industries in which the Company is active, regardless of the prevailing conditions. To continue to be a

trustworthy group in all aspects.

OUR STRATEGY

The core strategy of Kolin Group is to maintain and strengthen its position in its core business area – the construction and contracting

industry. The Group’s growth and expansion strategy is to transfer knowledge and experience gained throughout many years in the

contracting field into other business areas in which there are domestic and/or international growth opportunities.

FUNDAMENTAL VALUES

• To be knowledgeable

• To be trustworthy

• To operate effectively

• To be successful

• To produce high-quality work

• To complete the job on time

• To always create the better and the best

• To lead the way in new developments

• To be competitive in cost and quality

• To value and motivate employees

• To love what we do and to be enthusiastic about our work

• To be sharing and participative

• To be open to criticism

• To be investigative and pursuer

• To continually seek success under all circumstances and in all

subjects

Utilizing 36 years experience for providing benefit in social and economic field, Kolin A.Ş. represents its fundamental value of “continually seeking success under all circumstances and in all subjects” also in its social responsibility projects.

OUR STRENGTHS

Kolin Group of Companies;

• Kolin Group has superior engineering and technical capabilities

that can realize the projects requiring specialized expertise in the

construction and contracting industry.

• Kolin Group acknowledges as its primary objective the

completion of effective and high-quality work in the shortest

possible time. It transforms its experience in the construction

field into innovative solutions. Kolin Group develops new

technologies that reduce time and costs without compromising

quality and safety.

• Kolin Group aims to complete projects with zero error or loss

by effectively monitoring and controlling all processes within

its areas of activity. The Group organizes the infrastructure

accordingly so as to fulfill this objective.

• While maintaining focus on its core activities in the construction

and contracting industry, Kolin Group simultaneously applies a

strong synergistic approach to all group companies to ensure it is

consistently producing its best work.

• The central theme of Kolin Group’s corporate culture is its

people-orientation. Accordingly, Kolin:

- maintains ethical values,

- adopts a conscientious approach to health, safety and

environmental issues,

- supports social, cultural, and community development.

• Kolin Group believes that success lies within relationships

based on mutual respect and trust. The Group encourages

teamwork and the formation of teams that share and act with a

common mindset.

• Kolin Group Companies consistently find the most suitable

solutions to perfectly fulfill the commitments made to customers,

using a proactive approach.

• Kolin Group Companies undertake several investments mainly

on privatization and Built-Operate-Transfer (BOT) model projects.

All of these investment projects show remarkably successful

trend by their “high productivity-high quality” character. The

Group maintains its competence and highly prestigious company

name and also its faithful representation in respect to financial

institutes and creditors in constantly strengthening manner.


04

Adopting as a principle to finalize the projects in accordance with international standards and in due time in all sectors in which the company carries out activities, Kolin Group of Companies strengthens its reputable position each passing day thanks to national and international successes.

COMPANY PROFILE

Kolin Construction today attracts attention as a qualified and

reliable service provider, a model entrepreneur and a strong

national investor. Established in Elazığ, Kolin Construction became

a reputable and leading company in the construction sector in

Turkey through a successful journey during 36 years beginning

from 1977.

Displaying a sustainable growth thanks to the stable performance

maintained since its establishment, Kolin is among the strong,

reliable and reputable companies of Turkey. Kolin Group of

Companies successfully carries out its activities in construction-

contracting, energy, shipyard management, mining, tourism &

service, trade & industry sectors.

“Lasting Works in the Journey of Civilization”

Kolin Construction continues to strengthen its features for being the

preferred company with its structure having risk ability, credibility

and expertise, and “To Construct Lasting Works in the Journey

of Civilization”. Carrying out activities in the field of construction

& contracting, Kolin Construction successfully finalized numerous

projects by utilizing its 36 years business experience, financial

power and technical competencies. The Company’s business

portfolio includes primarily transportation and infrastructure projects,

and agriculture and energy projects as well as building, housing

and industrial plant projects. Achieving to be the preferred business

partner in different geographies of the world in addition to many

provinces of Turkey, Kolin realized many significant projects in

Afghanistan and Jordan and provides services in a wide geography

covering an area from Libya to Azerbaijan, from Serbia to Uganda.

Kolin achieved to be powerful brand that determines the new

standards in its sector through its first class projects. The Company

attaches utmost importance to the environment, health and security

issues in all activities. It is the “first company” of the sector, which

operates within the scope of integrated management system by

obtaining ISO 9001 Quality Management, ISO 14001 Environmental

Management and OHSAS 18001 Occupational Health and Safety

certificates at once. Kolin Construction has ranked 136th among

“World’s Largest 225 International Contracting Companies” in the

list of “2007 Top International” issued by Engineering News Record

Magazine, regarded as most prestigious magazine of the sector

by the international construction industry. Ranking 211th in the list

of “The Top 225 Global Contractors” issued by Engineering News

Record Magazine in 2011, Kolin Construction ranked 10th among

13 Turkish companies in the list and ranked 65th among European

countries.

Ankara Chamber of Commerce (ACC - ATO) Awards

At the Tax Champions Award Ceremony, in which 50 companies

among ACC-ATO members were awarded as “Top Exporter” and

“Top Corporate Tax Payer” in 2009 and 2011, Kolin Construction

was granted to three awards in two categories. Furthermore,

the Company awarded with plaques as 15th Company in

Top Exporter category in 2009, as the 23rd Company in Top

Corporate Tax Payer category in 2009 and 7th Company in Top

Corporate Tax Payer category in 2010. Based on 2011 data, Kolin

Construction was among the companies granted to awards in the

category of Corporate Tax at 2012 Awards Ceremony held within

the framework of 49th establishment anniversary of Ankara

Chamber of Commerce in ASO (Ankara Chamber of Industry)

1st Organized Industrial Zone on December 27, 2012 with the

honoring of President Mr. Recep Tayyip ERDOĞAN

Active participant of the sector

Being among the most active participants of the sector, Kolin

Construction is the member of Asphalt Contractors Association,

International Road Federation, World Water Council, Council on

Foreign Economic Relations, Turkish Construction and Installation

Contractors Employer Syndicate (INTES), Turkish National Roads

Committee, Turkish-American Association in Turkey, World Trade

Center Union, Confederation of Turkey Employer Syndicate (TISK),

Turkish Tourism Investor Association and Turkey Contractors Union.

Kolin Construction also holds NATO Security Certificate

New business fields, new successes...

Having proved its superiority in the engineering and construction-

contracting services through numerous projects, Kolin

Construction realized major works in the fields of energy, port and

shipyard management, mining, tourism & service.

Akköy I (103.5 MW) and Akköy II (237 MW) dams and hydroelectric

power plants (HPP) undertaken by Akköy Energy, one of the Group

companies, are rate among the important energy projects of Turkey.

Akköy I plant was completed and started commercial production

activities in 2008. Substantial completion of Akköy II project has

been approved and started production in June 2012.

The Group managed to become a powerful brand in the natural

gas distribution sector in a short time as well with ESGAZ and

İZMİRGAZ investments. Under the scope of the privatization of

Electricity Distribution companies organized by the Privatization

Administration, Kolin, concluded the Çamlibel Electricity

Distribution Contract which includes Sivas, Yozgat and Tokat, and

Uludag Electricity Distribution Contract which includes Balıkesir,

Bursa, Çanakkale and Yalova and to this end, companies of Çamlı

and Uluğ Electricity Distribution and Retail Sale Service have

been established. Kolin Group of Companies is also ambitious

in the field of port management. Canakkale Kepez Port is one

of the major ports of the Europe, with especially its modern

waste collection and recycling plant. As to Sığacık Marina whose

superstructure investment and management are undertaken by

the Group is taking firm steps towards being an important marina.

Today, the Group provides services at totally three significant

points in the Aegean through Çanakkale Kepez, Dikili and Sığacık

Ports. Sefine Denizcilik founded in 2005 carries out its activities

with the aim of becoming a leader in the ship construction sector.

Kolin Group of Companies entered into the mining sector with

Malatya Hekimhan Iron Mine acquired from the Republic of Turkey

Prime Ministry Privatization Administration in 2007. The prominent

investment of the Group in the field of tourism, Kolin Hotel and

Congress Center, is the only five-star hotel on the coastline of Izmir-

Istanbul. It is also the biggest congress center of the region.

Kolin Group of Companies draws its strength from its efficient

business approach, fair, clear and transparent relations with

all shareholders, strong financial and professional structure,

experienced personnel, clearly defined strategy and stable growth

target. The Group is determined to turn the added value that is

created not only in construction field but also in all its business

fields being focused into investment increasingly both in national

and international platform. As a service provider and investor

in Turkey and in the international markets, Kolin continues and

will continue to implement its strategies without making any

concessions with the aim of growing.

Kolin Group of Companies continues to

Construct Lasting Works in the Journey of Civilization in Turkey and abroad with its

deep-rooted history and vast knowledge of 36 years.


06

Milestones

The first Group company, Kolsan Construction Automotive Industry and Trade Co Inc. was established.

Kolin Construction won its first motorway project with the Birecik-Suruç portion of the Gaziantep-Şanlıurfa motorway, which carries a significant proportion of regional and transit traffic.

Kolin Construction Company was established in Elazığ by the engineer members of Koloğlu family.

Kolin Construction began its first irrigation project with the construction of Uluova Pumped Irrigation Project.

Kolin Construction began its first road infrastructure projects with the construction of the Çaycuma Bartın Road.

Kolin Construction moved its headquarters to Ankara.

The Harran IV Irrigation Project, undertaken by Kolin Construction, was the first irrigation project which has been completed as part of the Southeastern Anatolia Project (GAP), one of the largest development projects in the world.

199819971987198219781977

1976

Kolin Construction completed Kırka 3rd Boron Derivatives Facility and Tüvenen Tincal Dissolving Unit Project as turnkey.

Kolin Construction won its first international project with Mujib and Southern Irrigation 2nd Section Project in Jordan. The project was completed in 2004.

Çanakkale Kolin Hotel and Convention Center constructed and a 49-year operating license has been obtained.

Akköy Energy Inc., the Group’s first company in the energy industry, was established to operate in the power generation industry.

2001 20031999 2002 2004

Kolin Construction completed the first double highway and crossover road projects in Turkish Republic of Northern Cyprus.

Kolin Group acquired the Dikili Port from the Ministry of Transportation General Directorate of Railways, Harbors, and Airports Construction, using a 30-year Build-Operate-Transfer model.

Section D (km: 177+000-262+000) of the Kabul-Kandahar Highway and six-bridge construction project in Afghanistan was completed.

Kolin Construction completed Bolu Mountain Passage Project together with its business partners. By taking all geotechnical precautions, the existing road was transformed into a divided road and road and traffic information system was installed.

Çanakkale Kepez Port has been acquired from the Ministry of Transportation General Directorate of Railways, Harbors, and Airports Construction. Being operated with 29-year build-Operate-Transfer model, the port managed by Kolin Group of Companies since 2006.

First investment in natural gas distribution sector has been made by acquiring ESGAZ, natural gas distribution service provider of Eskişehir.

The first road construction project has been undertaken in Afghanistan with Kabil-Kandahar Highway Project.


08

Akköy I Dam and Hydroelectric Power Plant Project was initiated.

Kolin Construction completed the Bozova Pumped Irrigation Part 1 Project.

Two projects from Farah, the Afghanistan Freeway Connection Project (km: 0+000-71+000) and the Kandahar-Herat Highway Rehabilitation Project Saudi Section (km: 116+566-231+566) were completed.

Kolin Construction finished the first highway underpass project in Baku, Azerbaijan.

Hekimhan Mining was established to operate the largest manganiferrous iron ore deposit in Turkey.

The Group acquired Sığacık Marina as a 23-year-6-month Build-Operate-Transfer model from the Ministry of Transportation General Directorate of Railways, Harbors, and Airports Construction.

The Birecik-Suruç Section (including the Suruç connection road) of the Gaziantep-Şanlıurfa Highway was completed on July 17, 2007 and was provisionally accepted.

Two projects were initiated in Libya: the Ghout El Sultan Water Conveyance Line and Pumping Stations Project and the Al-Khadra Ranch Irrigation Project.

The Benghazi Plain Water Distribution System Project in Libya was undertaken.

Akköy I Hydroelectric Plant was taken into operation and the commercial power generation has been started.

Akköy II Hydroelectric Plant Project started.

The construction of Artvin-Erzurum State Highway 2nd Part was begun.

88 percent of the shares of Arslanlı Plaster and Raw Materials Inc. (ARSLANLI) were acquired by Kolin Group.

The Group established Işıksu Energy Production and Trade Inc.

A joint venture established by China Major Bridge, Cengiz, Limak, Mapa, and Kolin undertook the Yerköy – Sivas High-Speed Train Railroad Infrastructure Project.

Construction of the Piraziz – Giresun coastal road, as part of the Black Sea Coastal Road Project, was completed and provisionally accepted.

Construction of Umurbey Dam was completed.

The Artvin-Erzurum State Highway 2nd Part Project, including the construction of four balanced overhang viaducts and a 5.3-kilometer road was begun.

50 percent of Sefine Maritime Shipyard Tourism and Trade Inc. shares were purchased by Kolin Group.

The existing Haydar Aliyev Prospekti 105 Unvan bridge in Azerbaijan was rebuilt and expanded.

The Kayseri Northern Passage Diversion (infrastructure, superstructure, and signaling) construction project was acquired from General Directorate of Turkish State Railways.

The contract to construct the new U.S. Embassy Facility was acquired in Serbia.

An infrastructure project for 10,680 homes in Tripoli, Libya was acquired.

The Al-Kadra Ranch Project in Libya was completed.

Superstructure Improvement and Large-scale Repair of Mahmutbey - Kozyatağı Highway, Side Roads, and Connection Roads (including 1st and 2nd

beltways) in Istanbul was completed and provisionally accepted.

20092008200720062005

In the consequence of tender made by Energy Market Regulatory Authority, the franchise of natural gas distribution of Tire, Izmir has been acquired for 30 years, and İZMİRGAZ Inc. was established.

The Kandahar-Herat Highway (km: 231+566-356+000) Packet IV Project in Afghanistan was completed.

Within the framework of the privatization of Elektrik Dağıtım A.Ş. (Electricity Distribution Corporations) organized by the Directorate of Privatization Administration, Çamlıbel Electricity Distribution contract which covers Sivas, Yozgat and Tokat, and Uludağ Electricity Distribution contract which covers Balıkesir, Bursa, Çanakkale, Yalova were awarded to Limak-Kolin-Cengiz Joint Venture Group. To this aim, the company of Çamlı and Uluğ Electricity Distribution and Retail Sale Service was established.

Concerning the construction of Obrenovac-Ub and Lajkovac-Ljig Road in Serbia, MOU was signed with the Government of Serbia.

Construction of Artvin-Erzurum State road 2nd Section which also covers construction of 5 “Balanced Cantilever” Viaducts, Construction works of Ortaköy Viaduct and Ortaköy Provincial Road were undertaken.

Ankara Drinking Water 2nd Phase Project Gerede System Construction work was undertaken. The Project is one of the longest (31.6 km) water transfer tunnels of the world.

Road construction work of Izmir Ring road, Harmandalı Junction-Koyundere Junction Km: 2+500-10+000 was undertaken.

Road superstructure restoration work of Gebze Junction-Körfez Junction Km: 45+300-73+469 was undertaken.

Tandogan-Kecioren (M4) Subway Remaining Construction Works project covering 10,582 meters line and 11 stations between Tandogan-Kecioren, was launched.

Yusufeli Dam and Hydroelectric Power Plant Project, which will be constructed in Coruh basin and planned to be Turkey’s highest and Europe’s 6th highest dam with its 270 meters height when completed, has been concluded.

The Kayseri Northern Passage Diversion (infrastructure, superstructure, signaling, telecommunication and electrification) replenishment construction project was acquired from General Directorate of Turkish State Railways.

2010 2012

Çandarlı Port Project was launched

Rehabilitation and Reconstruction Work of Köseköy-Gebze Section of the Ankara-Istanbul High-Speed Train Project was undertaken.

Construction of Water Supply and Waste Water Systems and Waste Water Treatment Plant for İsmayilli Rayon in Azerbaijan was started.

Upgrading of Hoima-Kaiso–Tonya Road (92 km) to paved (bituminous) standard, which is a preferential project for Uganda was undertaken.

Rehabilitation of Hajiqabul-Horadiz Road in Azerbaijan (M6), Parcel 1 Hajiqabul Bulagli Section Km: 00+000-40+500 and Rehabilitation of Hajiqabul-Horadiz Road (M6), Parcel 2, Bulagli-Bahramtepe Section, Km: 40+500-112+550 were started.

2011

Construction of 3 balance cantilever viaducts whose pillar heights vary from 110-119 m and lengths vary from 275-350 were completed within a short time.


10

Consolidated Financial Indicators of Kolin Construction and Subsidiaries

2012

USD USD USDTL TL TL

2011 2010

Total Assets 1.559.299.713 2.779.607.669 1.265.410.588 2.390.234.057 1.056.149.220 1.632.806.694

Total Financial Liabilities 726.373.626 1.294.833.625 582.432.842 1.100.157.396 373.075.000 576.773.950

Total Equity 408.820.582 728.763.569 345.327.621 652.289.342 377.979.646 584.356.532

Total Revenue (Sales) 1.383.933.708 2.467.000.228 1.010.004.579 1.907.797.649 768.241.573 1.187.701.472

EBITDA 155.865.548 277.845.925 128.154.331 242.070.715 143.945.938 222.540.420

Net Profit 51.050.649 91.002.888 36.255.317 68.482.668 61.681.861 95.360.156

Gross Profit Rate (%) 11 13 20

Equities/Total Assets (%) 26 27 36

Return of Assets (%) 3 3 6

Return of Equity (%) 12 10 16

Total Equity (Million USD)

EBITDA (Million USD)

Total Assets (Million USD)

Kolin in numbers

2012

1.559

201

1

1.265

2010

1.056

2012

408,8

201

1

345,3

2010

377,9

2012

155,8

201

1

128,1

2010

143,9

A large family with its 3,791 employees

112 finalized projects amounted to totally $2.8 billion and 39 ongoing

projects amounted to $3.5 billion since 1977

Over $408 million equity

in 2012

Over $51 million net profit despite the

crisis

Over $1,559 million asset size

Over $1,383 million turnover by

37% growth


12

Companies of the Group

Construction-ContractingSuccessful, reputable, reliable and symbol of the stability with 36-year sectoral experience…Kolin Construction Tourism Industry and Trade Inc. Kolsan Construction Automotive Industry and Trade Inc.Murtezaoğlu Construction and Trade Inc.Prebeton Precast and Ready Mixed Concrete Industry and Trade Inc. Armin Electricity Construction Industry and Trade Inc.Geomed Geotechnical Consultancy Investigation Audit and Trade Inc.

Kolin Energy Group Leader in the generation and distribution of sustainable, clean and eco-friendly energy…

Natural Gas Distribution, Storage, Import, Export, Wholesale and Retail Sales ServicesESGAZ Urban Natural Gas Distribution Trade and Contr. Inc. İZMİRGAZ Natural Gas Distribution Inc. Etki Port Management Natural Gas Import and Trade Inc. Naturgaz Natural Gas Import and Export Industry and Trade Inc.

Power Generation, Distribution, Wholesale and Retail Sales ServicesAkköy Energy Inc. Kolen Electricity Wholesale Import and Export Inc.Işıksu Energy Generation and Trade Inc.Truva Construction Industry and Trade Inc.

Energy Investment, Contracting and Consultancy Services Hidro-Gen Energy Import Export Distribution and Trade Inc. Atlas Machine Industry Energy and Trade Inc. Anc Energy Generation and Trade Inc. Albe Energy Electricity Electronic Consultancy Advisory Petrol Mining Agriculture Stockbreeding Industry and Trade Inc.

Port and Shipyard ManagementWorld class service quality in port, marina and shipyard management…Çanakkale Port Management Industry and Trade Inc.Dikili Port and Tourism Management Trade Inc. Sefine Maritime Inc. Teos Marina Management and Trade Inc.

MiningMining of Turkey’s most important and largest manganiferrous iron ore deposit…Hekimhan Mining Import Export Industry and Trade Inc.

IndustrySense of manufacturing that provides added value and strength to the economy and employment…Arslanlı Plaster Raw Material Industry Trade Inc. İnkol Construction Energy Industry and Trade Inc. Sivas Sleeper Manufacturing Industry and Trade Inc.

Tourism & ServicePremium venues of high quality service… Şişman Tourism Construction Industry and Trade Ltd.Turkol Tourism Industry and Trade Inc. KA Insurance Intermediary Services Ltd.Çanakkale Kolin Hotel

TradeSense of sustainable, qualified, reliable, transparent trade… Koltar Agriculture Import Export and Trade Inc.Kolpaş Import Export and Trade Inc.Efes Transport Industry and Trade Inc.


14

Dear Shareholders,

Despite the challenging conditions in global economy, infrastructure and energy investments maintained their acceleration especially in developing countries in 2012. Considering that seventy percent of world’s population will live in the cities within the next 40 years, it is obvious that the development especially in construction, infrastructure, energy, tourism, transportation, service, agriculture and food sectors will be much faster. It is foreseen that the investments that will be made in infrastructure projects until 2050 will reach USD 70 trillion on a global scale. These expectations better present the high potential in construction-contracting sector, which is our primarily field of activity. Increasing population and urbanization further raises the importance of agriculture together with the decrease of agricultural lands to be cultivated and increasing bio-fuel demand while further rising the energy requirement. People travel more along with the increasing revenue and go on more holidays, accordingly the number of high-speed train and highway projects increases each passing day. The manufacturing that rapidly rises on a global scale increases the demand on raw materials and valuable mines.

Progressing with long-term and sustainable targets in all of its activity fields, Kolin Group of Companies maintains its growth through the investments made in abovementioned strategic fields. Accordingly, our Group experienced a financially and operationally successful year also in 2012.

Kolin Construction, of our Construction and Contracting Group companies, has launched Tandogan-Kecioren (M4) Subway remaining construction works, Yusufeli Dam and Hydroelectric Power Plant construction, Kayseri Northern Passage Diversion replenishment construction projects in 2012 in addition to ongoing 37 projects.

The Kayseri Northern Passage Diversion (infrastructure, superstructure, signaling, telecommunication and electrification) replenishment construction project was acquired from General Directorate of Turkish State Railways. Kolsan Construction achieved 99% customer satisfaction in 2012 in its activity field of plastics industry and was granted to award in the category of “Loyal Customer” of 2011 by Petkim (Petrochemical Holding Inc.). While Kolsan Ready Mixed Concrete became the ready mixed concrete supplier of Tandogan-Kecioren Subway project, Geomed Geotechnical Consultancy has undertaken the Geotechnical Services of Kosekoy-Gebze High-Speed Train Project. Murtezaoğlu Construction, one of our companies, entered into railway line construction sector in 2012 with a investment valued at 15 million Euro. Armin Electricity Construction, our electricity contracting company, began to the electricity infrastructure works for General Directorate of Turkish State Railways Eskisehir-Istanbul High-Speed Train railway project, and manufacturing and installation of 34.5 KV and 154 KV Energy Transmission Lines of Yaprak and Berat Hydroelectric Power Plants in Alanya in 2012.

Çamlıbel Electricity Distribution, one of our electricity distribution companies, provided energy service to 21,206 new customers while realizing totally TL 674,806,990 collections from 5,448,625 unit bills in 2012. Uludağ Electricity Distribution, our other electricity distribution company, made an investment valued at nearly TL 156 million in its distribution region in 2012. Akköy Energy Generation, one of our companies, reached totally 337 MW installed power with Akköy II Hydroelectric Power Plant projects launched in 2012 with an investment value of €312 million Euro. Çamlı Energy Distribution and Retail Sales Services, which carries out activities such as repair and maintenance, index reading and disconnection/reconnection within the

region covering Sivas-Yozgat-Tokat provinces, achieved a significant progress in subscriber access, reading and billing ratios thanks to the improvements until the end of 2012 after the transfer performed in June, 2011. With Kolen Electricity Wholesale Import and Export Inc. company that went into action in 2012 the Group entered into the electricity wholesale market for the first time. İZMİRGAZ, one of our natural gas distribution companies, continued to provide distribution service for 324 industrial consumers while reaching totally 391,450 housing equivalent (BBS) subscribers by achieving the targeted subscriber number in 2012. ESGAZ reached 323,811 BBS subscriber number by providing service to 18,822 new subscribers in 2012. Port and Shipyard Management Group Companies continued their activities by improving their performances. In 2012, 70 ships docked at Kepez Port, which is managed by Çanakkale Port Management, and the port has been visited by 12,600 passengers and totally 136,008.26 tons load uploaded/downloaded at the port. Çanakkale Port Management also blazed a trail in Turkey by obtaining Bunker Fuel Deliver License on marine fuel production from petroleum-derived wastes collected from the ships. In 2012, Sefine Maritime-Shipyard Management, one of our companies, realized many new projects valued at totally TL 105 million, 2 of which were the ferry construction for Norway.

Kolin Group of Companies plans to finalize 254-room hotel project in 2013 that is carried out by Turkol Tourism in Tuzla, Istanbul. By the year-end of 2012, there are 355 units boats docked at Teos Marina Management, one of our companies, and its occupancy rate realized as 74%.

Koltar Agriculture, which is the company of Kolin Group of Companies that carries out activities in the fields of seed and seedling, achieved to extend its market share by 27% while raising its turnover by 34% in 2012. Supplying the tires for machinery, Kolpaş began importing for the first time and achieved all of its targets in 2012.

Arslanlı Inc., one of our industry group companies, recorded 40% market share in gypsum sector, 90% in calcite and 5% in Arkim while achieving 29% growth in 2012 compared to the previous year. Sivas Sleeper, which operates in the field of sleeping manufacturing and having a market share of 25%, commenced production at the end of June 2012 and realized 120,736 units sleeper manufacturing and 78,400 units sleeper sales within six-month period. Hekimhan Mining, which is one of Kolin Group of Companies that operates the largest manganiferrous iron ore deposit and second largest iron mine site of Turkey, doubled its market share in 2012 and reached to 6.5%.

As Kolin Group of Companies, we continued to contribute to the development and growth of Turkey also today, as it has been for 36 years. Provided employment thanks to our business potential, created added value for the government through our manufacturing and social projects as the requirement of our social responsibility will continue also in the forthcoming years.

As Kolin Group of Companies, I would like to take this occasion to thank our employees, our business partners, our shareholders and all our stakeholders, who have a great part in our success, and I would like to also share my belief that we will maintain our successful performance and growth also in 2013.

Yours faithfully,

Naci KOLOĞLUBoard Chairman

Message from the Chairman

Adopting sustainable success vision, Kolin Group of Companies will continue to raise its success rate also in the future as it was in the

past.

The Board of Directors

Veysi Akın KOLOĞLU

Member of the Board

Naci KOLOĞLU

Chairman

Celal KOLOĞLU

Member of the Board

M. Kemal KOLOĞLU

General Coordinator


18

SECTORAL ANALYSIS

CONSTRUCTION-CONTRACTING

The 2012 was experienced under the shadow of recession in

global economy and in Turkey the cooling precautions taken for

the economy that became overheated in the previous year. The

issues in the economies of developed countries also decreased

the growth rate of developing countries’ economies. While the

requirement for infrastructure investments increased worldwide

as of 2012, it was observed that the demand was intensified

mainly in energy and transportation projects. Reducing profit

margins, increasing costs and increasing competition within

the sector still continues to challenge companies to find new

business models. This increasing competition raises risk appetite

in the sector as well.

According to KPMG’s ‘Global Construction Report’, which

has been prepared by interviewing with 161 construction and

engineering companies and including nearly 15 companies from

Turkey; more than half of the companies participating to the

research says that the management of purchasing and supply

chain is important for improving the productivity. On the other

hand, optimistic expectations also prevail for the future despite

the economical uncertainties. 49% of the participants foresee

that there will be increase in their current projects within the

next 12 months. This optimism also relatively reflects on profit

margins. 75% of the participants say that the profit margins

will increase or remain same in the new projects. In the report

it is also stated that the demand for developing countries still

continues and the construction companies mostly interest in India

and China.

Regarding the construction sector in Turkey; infrastructure

projects and expectations related to urban transformation

maintain their validity, however it is seen that the requirement for

cooling the economy also enure the sector. Depending upon the

decrease in public investments and private sector investments

and distinctly deceleration of housing demand, a recession has

been experienced in construction sector in 2012. As of third

quarter of 2012 even though the Building Construction Sector

Turnover Index increased by 16.0%, Non-Building Construction

Sector Turnover Index decreased by 0.5%. Construction

sector Confidence Index fell to the level of 72% by decreasing

throughout the year while it was recorded at the level of 89%

at the beginning of 2012. Construction sector Confidence Index

exceeded 85% in February 2013 by again starting to rise with

the increase of positive expectations related to 2013. While

the number of employed people in the sector increased by

1.5%, it is observed that the increase of employment in building

construction was slightly more. In 2012, the growth of the sector

fell behind the country growth by decreasing to the level of 1%

as of the third quarter of 2012 due to experienced uncertainties.

The 28.7% increase in the surface area of the buildings, which

obtained building permit in the third quarter of the year, compared

to the same period of previous year is seen as one of the positive

indicators for the next period.

In 2012, it has been observed that the appropriations of General

Directorate of Highways fairly fell behind the previous years due

to various reasons. Despite the supplementary appropriations

paid until the end of the year, over TL 2 billion allowance

receivables were transferred to 2013. On the other hand, Turkish

contractors have undertaken 433 new projects abroad in 2012

and the total value of these undertaken projects was USD 26.1

billion. At the end of 2012, the number of countries, in which

activities are being carried out, reached to 100, the number of

projects, which are realized in these countries, reached to 7,000

and the total value of these foreign projects reached to USD 240

billion.

In case unexpected exogenous shocks are experienced in 2013,

it is foreseen that public investments will not be fall behind

the 2012. It is estimated that the relative improvement that

will be experienced in economy apart from the infrastructure

investments will also enliven the residential sector.


20

ENERGY

2012 was a year in which the growth trend in the energy

sector of our country continued with a slight slowdown, and

the privatizations and investments gained speed. In 2012, in

which natural gas consumption recorded as 46 billion m3 with a

record increase, while difficulties were experienced especially

in ensuring supply-demand equilibrium on daily basis caused an

increase in electricity prices far above the expectations especially

in winter months, some electricity wholesale companies, which

were in the habit of performing business with open position

based on Market Financial Settlement Center (PMUM) had to go

out of the business and a great number of free consumers, who

frequently changed suppliers in the previous years, returned to

the distribution companies. So, the distribution companies, which

had lost market share in previous years, again began to expand

their market shares within this year.

The 2012, in which the concerns about security of supply in

natural gas began to gradually increase, witnessed significant

developments in terms of manufacturing projects based on either

natural gas or domestic and imported coals. While coal sites and

power plants as well as electricity and natural gas distribution

companies, which have been waiting for the privatization in public

portfolio for many years, found their owners one after another in

consequence of successful tenders made within this year, the

share of private sector within electricity generation sector rose to

the level of 62%. While in addition to the existing legal barriers

for concluding new natural gas bargain and sale agreements,

the subsidization of natural gas sales price, which applied to

households and free consumers, performed over the natural gas

price, which have been applying to the electricity sector for a

long time, caused market distortions and constituted a significant

barrier for new entries into the market, also caused worrisome

developments in terms of the future of electricity generation

projects based on natural gas, which obtained license although

the natural gas supply agreements has not been concluded yet.

By the year-end, some of the free consumers, including

also natural gas power plants and organized industrial zones,

had difficulties in the supply of natural gas in the amounts they

needed after the transfer of contracts performed within the

year. Being obliged to transfer 6 billion m3 Russian and 1.2 billion

m3 Azeri gas to the private sector by the year-end through the

transfers of contracts performed as per the legislation in force,

BOTAŞ failed to satisfy the increasing demands of the customers,

who have been procuring natural gas from BOTAŞ in the previous

years, also due to being not able to conclude new natural gas

bargain and sale agreements as per the law, accordingly the large

consumers, which had to conclude the gas supply agreements of

next year as of the last quarter of the current year, had difficulties

to determine their suppliers since the private companies, which

taken over the agreements, could not began their activities until

the end of the year.

Turkey is still the world’s second fastest growing economy

behind China. Fast economic growth causes also a fast growth

in energy demand. The importance of the natural gas that still

has a share at the level of 48% in electricity generation gradually

increases in terms of energy sector in our country. Due to

demand sourced issues, in the forthcoming period, in which the

existence of natural gas rather than its price will have much more

importance, it is obvious that our import dependency in natural

gas will prevail since we still don’t have domestic production

opportunities. Due to both lack of physical infrastructures

required for the supply of natural gas through the pipe lines and

the lack of upstream investments as well as current geopolitical

uncertainties within the geography where Turkey is located,

it is not difficult to foresee that Turkey will have to procure its

natural gas requirement mainly through the LNG agreements

apart from the pipe gas in limited amounts that may be obtained

from Azerbaijan and Iraq within the period of next 10 years. The

storage and gasification of LNG that will be imported by Turkey

undoubtedly requires creating new supply points (installation of

new LNG import and gasification terminals).

It is foreseen that the supply shortages experienced especially

in winter months on daily basis in 2012 will prevail also in

forthcoming years and supply flexibilities that obtained through

the current long-term natural gas bargain and sale agreements of

our country will also remain incapable to meet demand increase

in the winter months in forthcoming years and this will obligate to

create new supply points and natural gas storage capacities.

Even though the cross price subsidy, which is still applied in the

natural gas market of our country, currently constitutes a significant

barrier for LNG import, it is estimated that the supply deficit

expected to be emerged in very near future will eliminate this

problem and will pave the way for current and planned LNG plants.

The 2013 will be a year in which some important energy plants and

their privileges, which are owned by the public, will be transferred

to the private sector within the scope of the privatization tenders

concluded in 2012. Within the scope of the privatization tenders,

private entrepreneurs, who will take over the accumulated issues

of the years together with the abovementioned plants, will have to

enter into an intense investment environment while endeavoring

to fulfill their financial liabilities. The increase in the investments will

create positive impacts on general economy through both energy

sector and other sectors that have input exchange relations with

the energy sector.

PORT AND SHIPYARD MANAGEMENT

90% of world trade and 88% of Turkey’s foreign trade are

carried out by sea. In Turkey, having 8,333 km shoreline, there

are 174 ports and landings. 6 of them are managed by Turkey

Maritime Organization and 4 of them are managed by Turkish

State Railways”. According to the report on “Port Management

Activities in the World and Turkey” issued by Ernst&Young in

March, 2011, maritime transport is 6.5 times more economical

than land transportation and 3.5 time more economical than

railway transportation. One of the most significant reasons to

prefer sea transportation is the transportation of huge amounts of

load at once and safely to long distances.

The report emphasizes that the maritime sector is one of most

important sectors that enables the globalization and integration

of the countries. It also highlights that as the globalization and

integration increases the economic potential of the countries

also increase accordingly. While 1.1 million tourists were visiting

Turkey by sea in the beginning of 2000s, today this number

increased to 2.5 million.

Also the cargo traffic at Turkish ports displayed a significant

increase in the last years. The cargo traffic at Turkish ports

reached 285 million tons in 2007 and 315 million tons in 2008

while it was nearly 186 million tons in 2000. The overall growth

since 2000 approached 85% and realized above 7%, the

CAGR (Compound Annual Growth Rate). During next 5 and 10

years period, the fastest growing segment of cargo traffic is

expected to be the container cargo segment. Including also the

international cruise sector, the report attracts attention that the

travel industry in the world is the fastest growing segment.

According to the 2009 sector report of Chamber of Shipping, the

Compound Annual Growth Rate of the cruise sector has been

measured as nearly 16.9 since 2003. According to 2010 Cruise

Market General Overview Report issued by CLIA, it is observed

that 176 million passengers have been travelling by sea more

than two days since 1980. Over 40% of cruise passengers mass

have been created in last 5 years. The average annual passenger

increase rate in the sector since 1990 is 7.4%.

According to 2011 Sector Report of General Directorate of Turkey

Maritime Organization Inc., cruise passenger transportation

achieved a great increase worldwide in the last years. In 2011,

the number of people, who preferred sea travel by cruises, is

nearly 14 million. Nearly 10 million of these people are Americans

and 4 million of them are from Europe and other countries. The

researches indicate that the average ages of the tourists, who

travel by cruises, are also decreased.

Increasing number of ports each passing year and improvement

of service quality enables sea transportation to prefer Turkish

ports. Especially in the last years, the maritime sector in Turkey

made a progress by a gradually increasing acceleration and the

issues have been discussed and the solutions have been created.

The organization structure of Ministry of Transportation has been

reorganized and transformed into Ministry of Transportation,

Maritime and Communication. In consequence of these positive


22

developments, Turkey achieved to increase the number of ships

visiting Turkey each year compared to the previous year. In 2011,

1,623 cruises and 2,191,420 passengers visited Turkish ports.

Turkey achieved to become one of the 5 countries which display

the largest development in cruise tourism.

MINING

According to data of R&D Bulletin issued bu Izmir Chamber of

Commerce in September, 2012, it has been determined that

77 of approximately 90 types of mine traded in the world exist

in Turkey. Today nearly 60 types of mine are being produced.

Ranking 28th by total mine production among 132 countries in

this context, Turkey ranks 10th in terms of mine diversity.

In parallel to the developments experienced in world markets,

it is seen that the sector export also in our country gained a

significant acceleration as of 2003 and in last six-month period

until 2009 recorded a growth at the rate of 262%. Major mines

imported by Turkey are marble and natural stones, boron

derivatives and products, chrome, na-feldspar, magnesite, copper,

zinc, gypsum, barite and pumice. Major mines exported are coal,

iron, marble and natural stones, phosphates, copper, magnesite,

feldspar, chrome, sulfur, silica sand and graphite.

According to the data of Istanbul Mineral and Metals Exporters’

Association (İMİB); in 2012, in which the European economies

shrank, the export of Turkish mining sector rose by 8.2% compared

to 2011. The major export countries of the mining sector, which

created a value of totally USD 4,182 million, respectively recorded

as China, USA, India, Italy and Iraq. The export of Turkish mining

sector to China rose by 21% compared to 2011 and realized as

totally USD1.8 billion. China had a significant share at the rate of

43% within the total export of the sector. The 2023 target of the

sector is to reach export figure of USD15 billion.

Despite the quota for natural stone import imposed by India,

it became the third highest export country for Turkish mining

sector. When the export data of the sector examined, in 2012 the

processed stones took the first place with USD 953 million on

the basis of product. Block marble and travertine products ranked

second with USD 950 million, copper ores ranked third with USD

457 million, chrome ores ranked fourth with USD 419 million and

zinc ores ranked fifth with USD 190 million.

Natural stone export reached to the level of USD 1.9 billion by

increasing at the rate of 14% compared to 2011. First 5 countries

in natural stone export were respectively China, USA, Iraq, Saudi

Arabia and India. Export to Saudi Arabia in natural stone sector

recorded 38% increase compared to 2011.

In 2013, the total export of mining sector is targeted to reach

USD 4.5 billion. The 2013 export target of the natural stone

sector is USD 2.2 billion.

According to the R&D Bulletin data, the strengths of Turkish

mining sector are as follows:

• Diversity and wealth of mineral deposits,

• Increasing interest of foreign investors to the sector,

• Proximity of Turkey to the export markets,

• Continuity of raw material demand worldwide since it is the raw

material of energy sector and manufacturing industry,

• EU membership process,

• World’s largest boron reserve (72%) is owned by Turkey.

TOURISM-SERVICEAccording to World Tourism Organization, the number of tourists

across the globe exceeded 1 billion for the first time in 2012.

Being one of 10 most visited countries by foreign tourists in

the world, Turkey ranks 46th among 140 countries in the list of

competitive power in tourism sector.

According to Q4 2012 and annual tourism statistics issued by

Directorate of Turkish Statistical Institute, tourism revenue of

Turkey rose by 17.2% compared to the same quarter of 2011.

2012 tourism revenues recorded as USD 23,440,436,000 by

increasing at the rate of 1.8% compared to 2011. 77.9% of the

tourism revenues have obtained from foreign visitors and 22.1%

have obtained from the citizen visitors residing abroad.

Expenditures made in 2012 consisted of USD 18,799,085,000

personal expenditures and USD 4,641,351,000 package tour

expenditures. The average expenditure of foreigners was USD

577 and that of our citizens residing abroad was USD 1,012.

In 2012, the number of visitors went out from our country

recorded as 36,776,645 people by increasing at the rate of 1.7%

compared to previous year. 31,655,188 of these were foreigners

and 5,121,457 of these were the citizens residing abroad.

TRADE

When 2012 11-month data issued by T.R. Ministry of Economy

as well as Turkish Exporters Assembly December data examined,

2012 export of Turkey reached USD 151.9 billion by increasing at

the rate of 12.6% compared to 2011. With this figure, also the

record of Turkish Republic history has broken.

Turkey’s 7.4 per thousand of share in world export in 2011 reached

to 8.2 per thousand in 2012. Based on 2012 11-month data of

Turkish Statistical Institute, it was seen that an export record of

totally 66 countries and region has been broken. In 2012, Turkey

exported to 243 countries and customs zones. Turkey also

achieved to export to all countries except Federated States of

Nauru and Micronesia. In Turkey, the number of provinces having

an export amount over USD 1 billion reached 16.

By the year-end of 2012, export of Turkey recorded at the level of

USD 152.5 billion with an increase of 13.1% compared to 2011.

The import fell to the level of USD 236.5 billion by decreasing

1.8%. While trade deficit fell down to USD 83.9 billion by decline

of 20.7%, export-import coverage ratio rose to 64.5% from 56%.

INDUSTRY

Industrial Production Index realized at the level of 135.9 in

December 2012 by decreasing 3.8% compared to the same month

of the previous year. According to the provisional data related to

2012 December prepared with the cooperation between Turkish

Statistical Institute and Ministry of Customs and Trade, trade

deficit fell to the level of USD 7,178 million from USD 8,116 million

in December 2012 by decreasing 11.6% compared to the same

month of the previous year. Export-import coverage ratio rose to

63.8% from 60.6%. EU’s share in world export, which was 41.7%

in December 2011, fell to 39.2% in December 2012.

When assessed on a yearly basis, in 2012 the industrial production

increased by 2.3% compared to 2011. The trade deficit, which

was USD 77 billion in 2011, recorded as USD 48.9 billion by

decreasing 36.6% in 2012. Turkey displayed an export-led growth

performance in 2012. In 2013, it is foreseen that the composition

of the growth will change and domestic demand shall also

contribute to the growth with a positive impact. Along with the

decrease of credit charges and gradually improvement of global

expectations, it is estimated that the consumption and investment

demand delayed in 2012 will also have an impact on the increase of

domestic demand in the next period.

Kolin Group of Companies continues to increase its investments by sustaining its controlled growth in all sectors in which the group carries out activities.


24

SECTORAL PERFORMANCE

Evaluation of 2012 Deriving its whole turnover from the construction and contracting

business fields from its establishment until 2004, Kolin has

diversified its activity fields through the successful progresses

since 2004. The Group sustains to strengthen its position by

maintaining its steady growth through the investments made in

new business fields, improve its financial data and be a Group

making an indelible impression in its activity fields

CONSTRUCTION-CONTRACTING

Kolin Construction displays a successful and stable performance

as the driving force of Kolin Group of Companies in its main

activity field. It is a reliable brand preferred not only in Turkey but

also worldwide. Carrying out its activities in a wide geography

covering an area from Libya to Azerbaijan, Serbia and Uganda, Kolin

Construction provides services to its customers also through its

overseas offices located in Tripoli/Libya, Belgrade and Kampala.

Tandoğan-Keçiören (M4) Subway Remaining Construction Works,

Yusufeli Dam and Hydroelectric Power Plant, Kayseri Northern

Passage Diversion (infrastructure, superstructure, signaling,

telecommunication and electrification) replenishment construction

were among the projects added into Company’s portfolio in 2012.

Construction of Water Supply and Waste Water Systems and

Waste Water Treatment Plant for İsmayilli Rayon in Azerbaijan,

road rehabilitation projects in Azerbaijan, upgrading of Hoima-

Kaiso–Tonya Road (92 km) to paved (bituminous) standard, which

is a preferential project for Uganda, the construction of the new

U.S. Embassy Facility in Belgrade, Serbia and projects in Libya are

among the important projects ongoing abroad in 2012.

Kolsan made investment in tamping set, locomotive and wagons

(platform and ballast) as well as miscellaneous railway track laying

machines. The first manufacturer of PVC tunnel drainage pipes

in international standards in Turkey, Kolsan maintained its market

leadership with 95% market share also in 2012 and carried out

significant activities in Iraq market in addition to domestic market.

The Company made 3 tons Linde forklift investment within the

year. Adopting continuous development by assessment and

improvement activities as a principle, Kolsan also reached high

customer satisfaction through the innovations offered in this field.

Kolsan Ready Mixed Concrete has increased the aggregate

production capacity of Afyonkarahisar Crusher Plant to 200.00

TON/hour from nearly 125.00 TON/hour and took a concrete

step for strengthening its position in the market. The Company

has undertaken the ready mixed concrete supply of Ankara

Tandoğan - Keçiören Subway route project and within the scope

of the project made the investment of 100 m3/hour ready mixed

concrete plant and equipment.

The sector leader in manufacturing, transportation and installation

of prefabricated prestressed beam, Prebeton sustained its activities

for Ankara – Sivas High Speed Train project and continued to

freshen up the trade in the regions in which it carries out activities.

Another company of Kolin Group of Companies that operates in

the field of Construction-Contacting, Armin A.Ş. achieved growth

in 2012 by leaping forward both in turnover and new branches. A

new business environment has been created with the international

companies operate in mining sector. Railway activities with the

companies of People’s Republic of China and plant electricity

activities with Kuzey Biga Mining Company have been launched.

Furthermore, electricity infrastructure works of Turkish State

Railways Eskişehir – Istanbul High Speed Train railway project,

manufacturing and installation of 34.5 KV and 154 KV Energy

Transmission Lines of Yaprak and Berat Hydroelectric Power Plants

in Antalya (Alanya) were started. Electrical works, which were

included in the investment program of Uludağ Electricity Distribution

Inc. and Çamlıbel Electricity Distribution Inc., are among the projects

that were successfully carried out by Armin Inc. within the year.

Geomed, which is a geotechnical project company, operates in

the fields of survey, project, consultancy in soil mechanics and

foundation engineering, carried out the activities for Köseköy-

Gebze High Speed Train Project Geotechnical Services, Yerköy-

Sivas High Speed Train Project Geological-Geotechnical Services

and Çandarlı Port Jetty Construction Geotechnical Services and

Consultancy. The company also improved its productivity thanks

to the newly added equipments.

Recently entered into railway line construction sector, Murtezaoğlu

Construction made investments of railway panel laying system and

2 unit railway rail welding machine with a budget valued at nearly

15,000,000 Euro. The company also undertaken 84,000 meters line

maintenance project for Turkish State Railways Ankara 2nd Region.

ENERGY

Kolin Group of Companies began to operate in energy sector in 1999

within the scope of Akköy-I Hydroelectric Power Plant Project which

had been developed within the borders of Giresun and Gümüşhane

provinces.

Kolin Energy Group sustains a wide range of generation, distribution,

wholesale and retail sales activities in a vertical integrated structure

that the group endeavors to establish in Turkish energy sector, and

is among the leader organizations of the sector both its own and

the its joint ventures. The Group controls nearly 20% of electricity

distribution sector through the successful acquisitions performed

by its joint ventures within the scope of privatization tenders. Group

Companies, which will provide distribution service to nearly 10

million electricity subscribers in 2013, also have a significant position

in natural gas sector with consumption amount of 3.7 billion m3

achieved in its natural gas distribution regions in 2012. Began to

carry out natural gas distribution and retail sales activities in Eskişehir

in 2004 and in Izmir in 2005 within the scope of the licenses

obtained from Energy Market Regulatory Authority, the Group began

to provide electricity distribution and retail sales services in Çamlıbel

electricity distribution region including Sivas, Yozgat and Tokat

provinces and Uludağ electricity distribution region including Bursa,

Yalova, Balıkesir and Çanakkale provinces in 2010.

Kolin Energy Group Companies carried out activities of electricity

generation, distribution, wholesale and retail sales, natural gas

distribution, wholesale and retail sales. Moreover, the Group carried

out project development activities by adding natural gas-fired and

domestic coal-fired (lignite) power plants and liquefied natural gas

storage and gasification plants to its current hydroelectric portfolios.


26

In a period in which some free consumers including also natural gas

plants and organized industrial zones, have difficulties to procure

natural gas in the amounts they require through current suppliers,

Kolin Group of Companies pursued a determined and sustainable

growth policy that considers the fluctuations experienced in the

economy, however do not form its strategic plans based on these

fluctuations.

The Group displayed a successful performance in 2012 and realized

significant acquisitions by joining privatization tenders except

the ongoing activities. Within the scope of Royalty Agreement

concluded with Turkish Coal Enterprise within the year, acquired

operating right of Soma lignite for 30 years in addition the right of

establishing and operating a coal thermal power plant having 450

MW installed capacity. Furthermore, the Group develops a natural

gas combined cycle plant having 430 MW installed capacity in Aliağa

County of Izmir.

Through its joint ventures, the Group won the privatization tenders

of Akdeniz Electricity Distribution Inc. including Antalya, Isparta

and Burdur provinces with USD 546 million amount and Boğaziçi

Electricity Distribution Inc. including European side of Istanbul with

USD 1,960 billion amount. The transfer contracts of abovementioned

distribution regions are planned to be concluded in mid-2013. The

Group increased its installed capacity to 337 MW by 105 MW

capacity increase by finalizing Akköy II Project within 2012 in addition

to Akköy I that had become operational in 2008, and began to import

electricity from Bulgaria in addition to its generation that is sold

through Kolen Inc.

Kolin Energy Group also carries out the construction of Yalnızardıç

Dam and Berat Hydroelectric Power Plant as well as Yaprak

Hydroelectric Power Plant projects, which will totally have 43 MW

installed capacity, in Antalya. Operating also in natural gas storage

field, Kolin Energy Group develops LNG Import Terminal Project

having an annually 6.3 billion m3 liquefied natural gas (LNG) storage

and gasification capacity in Aliağa county of Izmir.

By the year-end of 2012, in licensed distribution region of Uludağ

Electricity Distribution Inc., which is the joint venture of Kolin Group

Acquiring its whole turnover from construction and contracting business field from its establishment until 2004, Kolin has diversified the sectors in which it operates through the successful progresses since 2004. The Group sustains its stable growth through the investments made in new business fields.

of Companies, the figures recorded are as follows: total number of

subscribers as 2,633,558, the amount of distributed electricity as

11,478 billion kWh, market share including transmission 58% and

market share excluding transmission as 84%. In licensed distribution

region of Çamlıbel Electricity Distribution Inc., the figures recorded

are as follows: total number of subscribers as 723,522, the amount

of distributed electricity as 2,275 billion kWh, market share including

transmission 93% and market share excluding transmission as 94%.

In licensed distribution region of İzmirgaz Natural Gas Distribution

Inc., the figures recorded are as follows: total number of

subscribers as 398,300, the amount of distributed natural gas as

2,341 billion Sm3, the amount of sold natural gas as 415 million

Sm3 and the market share as 18%. In licensed distribution region

of Esgaz Natural Gas Distribution Inc., the company of by Kolin

Group of Companies, the figures recorded are as follows: total

number of subscribers as 322,000, the amount of distributed

natural gas as 526 million Sm3, the amount of sold natural gas as

301 million Sm3 and the market share as 57%.

2013 targets of Kolin Energy Group includes to conclude the

agreements for the construction of thermal power plants planned

to installed in Soma and Aliağa, restructuring of the electricity

distribution companies that will be taken over from Directorate of

Privatization Administration in such a manner to meet the current

requirements and obtaining storage license by finalizing ongoing

Environmental Impact Assessment process related to the LNG

Terminal Project planned to be installed again in Aliağa

PORT AND SHIPYARD MANAGEMENT

Kolin Group of Companies carries out its activities with Çanakkale

Kepez Port, Dikili Port, Teos Marina and Sefine Shipyard in the

field of port and shipyard management, which the group primarily

focuses in line with its growth strategies.

Providing comprehensive service for different types of ships thanks

to its strong technical and service infrastructure, Çanakkale Kepez

Port has been visited by totally 70 ships, 46 of which were cruise

ship, 2 of which were general cargo ships and 22 of which were

cargo ships, in 2012. By passenger and cruise ships totally 12,600

passengers have visited the port and totally 136,008.26 tons load

has been handled. Also through the waste collection service, totally

198,614.839 m3 liquid and solid wastes have been collected from

692 unit ships which visited Çanakkale Kepez Port and passed in

transit from Dardanelles (Çanakkale) Strait.

Improving its performance by 20% in 2012, Dikili Port

Management created new market by obtaining Vegetable Oil

and Asphalt Import permits. In the port, in which formerly only

pearlite and stone export were performed, today export and

import of the products such as fertilizer, sunflower, canola seed,

linseed, coal, ceramic, floor and wheat are being performed.

In Teos Marina, which is a marina management became

operational in Sığacık-Seferihisar, Izmir, 355 boats have been

moored and the marina occupancy rate is 74% by the year-end of

2012. 32 unit boats are moored in the channel and the occupancy

rate of the channel is 107%. 23 unit boats are located in the boat

parking area and the occupancy rate of the area is 29%. Greek

Islands Tours launched in June 2012 and foreign flagged yachts

arriving and leaving the port significantly enlivened the marina.

With Teos Marina Spa & Beauty Center, launched in May, Teos

Marina became an attractive recreation centre.

Sefine Shipyard, one of the four large shipyards within Yalova

shipyards region, undertaken 2 units ferry building for Norway, a

towboat building in Turkey, again in Turkey an emergency response

ship building and pet ship transformation work in 2012. Within the

year, the investments made for increasing the number of indoor

workshops, renewing the equipments, arranging the field, increasing

the depth of shipyard wharf and trainings for the personnel.

MINING

Hekimhan Mining Inc. owns Turkey’s largest manganiferrous iron

and second largest iron mine sites with Siderit reserve exceeding 50

million tons together with 44 million tons visible and potential. 2012

activities realized at very high levels on the basis of both investment


28

and production & sales. The share in the sector recorded as 6.5% by

displaying a great increase compared to previous year.

The Company set up its worksite after the second half of the

year. Its own machines have been bought, stripping works have

been started, and furthermore the construction of calcining plant

and loading ramp & station has been started.

TOURISM-SERVICE

Kolim Group of Companies also carries out activities in the fields

of insurance and communication technologies in addition to hotel

and restaurant management in tourism-service sector.

Carrying out activities with the intent of tourism investment &

marketing and managing and establishing every kind of tourism

investment that will provide service for domestic and foreign

tourism, Turkol Tourism carries out a hotel construction project

having a construction area of 55,000.00 m2 in Aydınlı-Çamlıbel

capacity on E5-E6 linking road in Tuzla-Anatolian site-Istanbul. The

project is targeted to be finalized in the second half of 2013.

Providing insurance product sales, risk management and

insurance consultancy services in all branches to the Group

companies and their employees as well as other companies and

people outside the group, KA Insurance reached TL 12,869,125

by increasing its production in all branches by one and a half

times compared to 2011. And the company achieved the

following successes: Anadolu Insurance - Second in Region in

Central Anatolia Region, Aviva Insurance - Fourth in Region in

Bursa Region and Sompo Japan Insurance - Second in Region in

Bursa Region. The Company increased its number of branches to

5 by making investment in Sivas, Yozgat and Tokat provinces.

Şişman Tourism provides services in the sector under the brand

of Washington Restaurant. The restaurant located in Ankara

continued to be the primarily choice thanks to its high quality

service.

TRADE

Efes Inc., Koltar Agriculture Inc. and Kolpaş Import Export and

Trade Inc. are the companies of Kolin Group of Companies that

carry out activities in the trade sector.

Provding professional consultancy service in the fields of supply,

protection and proper use of tires in the equipment pool, Kolpaş

has expanded its customer portfolio compared to the previous year

and increased its profitability percentage together with the rise in its

market share. The company performed its first export in 2012.

Carrying out activities in the fields of fertilizer, seed and seedling,

wholly owned by Turkish capital, Koltar Agriculture has been

established in 2009. The Company carries out its activities all

across Turkey and owns fertilizer depots in Dikili, Tekirdağ,

İskenderun and Antalya as well as a seedling greenhouse

establishes with an investment amount of USD 3 million in an

area of 59,000 m2 in Dikili in 2012. The Company increased its

market share by 27% compared to the previous year.

Efes Inc., whose main activity field is the transportation of

waste oil, waste solvent and hazardous waste suchlike bilge

produced at Çanakkale Port Management, recorded an increase

in transportation services in 2012. Performing monthly average

of 1,379,401 kg waste shipment in the waste facility, Efes Inc.

recorded monthly average of TL 150,000 + VAT turnover in

consequence of the transportation services provided in Bursa,

İzmit, Kütahya, Balıkesir, Edirne, Izmir, Antalya, Tekirdağ and

Konya provinces. This turnover only covers the amount obtained

from the waste shipments that were shipped from Çanakkale

Port Management. The Company sustained its secure practices

in all business processes.

INDUSTRY

Carrying out activities in the field of industry through Arslanlı

Inc., İnkol Inc. and SİTAŞ, Kolin Group of Companies surpassed a

productive year in this sector.

Arslanlı Inc. is one of the leader gypsum and construction

chemicals companies of its region. In 2012, the company

produced 37,000 tons construction chemicals, 142,000 tons

gypsum and 300,000 tons calcite. The Company recorded a 29%

growth compared to previous year. Incorporating Aralçı, Arkim,

Artherm and Arcalcite brands under its body, the Company has 11

product groups and 100 product ranges.

İnkol Inc. manufactures prestressed-predrawn sleeper type B70

designed to have proper features for using in both conventional and

high speed train lines and preferred in Turkish railways. In 2012,

167,821 unit sleepers have been manufactured. Together with the

stock remained from 2011, totally 202,276 unit sleepers have been

sold. The company has 13% market share in the sector.

Sivas Sleeper Manufacturing Industry and Trade Inc. (SİTAŞ), another

Group Company operating in the field of sleeper manufacturing, has

25% share in the sector. Commencing manufacturing at the end of

June 2012, the plant manufactured 120,736 sleepers in 2012. The

number of sold sleepers is 78,400. The Company owns the largest

and highest capacity plant in the sector.

Becoming operational in June 2012, Sivas Sleeper Manufacturing Industry and Trade Inc. (SİTAŞ), attained a place among the strongest players of the sector in a very short time with a market share of 25%. SİTAŞ takes firm steps forward on the way to leadership with its manufacturing plant that is the largest and highest capacity plant of the sector.


30

Construction andContractingKolin Construction is a reliable brand preferred worldwide as well as Turkey. Kolin Construction offers services to its foreign customers through its offices located in Tripoli/Libya, Belgrade and Kampala.

Kolin Construction Successfully finalizing totally 112 projects all across Turkey, Kolin Construction has 39 ongoing projects.


32

KOLİN CONSTRUCTION TOURISM INDUSTRY AND TRADE INC.

Having a 36-year deep rooted history full of huge projects

successfully finalized, Kolin Construction founded in Elazığ in

1977. Established by the engineer members of Koloğlu family,

the Company successfully provides services in many different

sectors and plays an active role in the development of Turkey.

Kolin Construction is conscious that each investment having its

sign represents Turkey and Turkish people.

The Company operates with the conscious of the role the

construction sector plays in establishing the infrastructure of

rapidly developing Turkey and foundation of more quality life, and

constantly renews its technology with the intent of providing most

excellent response to increasing requirements both in Turkey and

the world and improves its vast knowledge. Researching, learning,

utilizing information in the best proper way and constantly renewing

itself are among its fundamental objectives.

The Company realizes many highway, railway, port, residence,

industrial plant, irrigation and dam projects all across Turkey from

Çanakkale to Gümüşhane, from Trabzon to Şanlıurfa, from Izmir

to Artvin.

Not limiting its activity field with in Turkey, Kolin Construction

distinguishes as a reliable brand being preferred worldwide

by displaying a successful, sound and stable performance.

Sustaining its activities in a wide geography extending from

Libya to Azerbaijan, Serbia and Uganda, Kolin Construction offers

services to its customers through its overseas offices located in

Tripoli/Libya, Belgrade and Kampala.

A company creating difference through the quality service in

a wide range of activities

The service range of Kolin Construction is also supported by the

activities of the subsidiaries of the Group. Kolin Construction

sustains its activities by combining its competency of performing

many projects in very different fields with productivity and

quality sense and correspondingly creates a difference in the

sector. The Company undertakes many projects in a wide range

including highway, road, bridge, viaduct, railway, tunnel, port,

dam, modern irrigation systems, treatment plants, water transfer

lines, flood walls, industry complex, repair and maintenance

workshops, pipeline construction, mass housing, hotel, hospital,

office buildings and military installations, building-house projects,

energy, communication and transport projects.

A prestigious company both in Turkey and abroad, Kolin Constuction

expresses supervision, which is ensured with a systematic

and continuous monitoring in each stage of the activities, in its

unchangeable policies about environment, health and safety.

Complying with all national and international quality, environment

and safety regulations in all activities, Kolin Construction is the

“first company” of the sector, which acts within the framework of

the integrated management system by obtaining ISO 9001:2008

Quality Management System, ISO 14001:2004 Environmental

Management System and OHSAS 18001:2007 Occupational Health

and Safety Regulation System certificates simultaneously.

Having successfully completed totally 112 projects all across

Turkey until today, Kolin Construction has 39 ongoing projects and

continues road construction, irrigation and building projects abroad

in particular in such countries as Azerbaijan, Uganda and Serbia.

Total amount of the projects completed so far by Kolin Construction,

which derived 1,383 million turnover in 2012, is $2.8 billion and

total contract values of the ongoing projects are $3,5 billion. Of this

number, the remaining work amount as of 2012 is $1.6 billion. Out

of the projects of 3,5 billion Dollars ongoing both in and outside

Turkey by the year-end of 2012, Kolin Construction successfully

continues 26 transport and infrastructure projects of $2.3 billion

and 12 agriculture and energy projects of $1,1 billion and 1 building,

house and industrial plant project of $61 million.

Sustainable growth through qualified human resources

By keeping the stable growth, Kolin Construction increases

the technical competency and capacity use with each new

project. Human resources mostly composed of civil, mechanical,

electrical and environmental engineers, architects and technicians

show a constant increase in parallel with the said growth. As of

the end of 2012, totally 2,473 persons 740 of whom are foreign

nationals are working under the Kolin Construction. The number

of staff varies depending on the conditions of the work and the

season. Thanks to the highly qualified human resources, Kolin

Construction is rated among the best companies of the related

sector during the last 5 years, which is one of its most important

competitive advantages.

An expert in the sector through the memberships in

prestigious institutions and organizations

One of the active participants of the related sectors, Kolin

Construction is a member of Ankara Chamber of Commerce

(ATO), Ankara Chamber of Industry (ASO), Asphalt Contractors

Association, International Road Federation, World Water Council,

Council on Foreign Economic Relations, Turkish Construction

and Installation Contractors Employer Syndicate (INTES), Turkish

National Roads Committee, Turkish-American Association in

Turkey, World Trade Center Union, Confederation of Turkey

Employer Syndicate (TISK), Turkish Tourism Investor Association

and Turkey Contractors Union. The company holds also

NATO Security Certificate, Limitless Contractors License and

International Contractors License.

Reputable, reliable, strong

Being ready for the worldwide partnerships in the rapidly

changing market conditions, Kolin Construction is evaluated

within the international classification of the sector, with its

high-level competency and financial power. Kolin Construction,

which has undertaken successful projects since it was founded

in 1977, ranked 136th in the list of “2007 World’s Largest 225

International Contracting Firm” prepared by Engineering News

Record Magazine which is accepted to be the most prestigious

magazine of the sector by international contracting authorities. In

2011, it was rated as 211th in “The Top 225 Global Contractors”

prepared by the Engineering News Record Magazine. Kolin

Construction is the 10th among the 13 Turkish firms included in

the list and 65th among the European countries. At the “Award

Ceremony for Tax Champions” where 50 institutions among

the ATO members were awarded in the categories of “Highest

Exporters” and “Highest Corporate Tax Payers” in 2009 and

2010, Kolin Construction was granted to totally 3 awards in two

categories. During the ceremony held on 18 May 2011 at ATO

Congress Centre, Kolin Construction was awarded with a plaquet

as the 15th company performing the highest export in 2009, 23rd

company paying the highest corporate tax in 2009 and the 7th

company paying the highest corporate tax in 2010.

Based on 2011 data, Kolin Construction was among the

companies granted to awards in the category of Corporate Tax

Kolin Group of Companies continues to take a significant part in the formation of the future by realizing projects that will pass to future generations in Turkey and abroad through its wide service range including also building, plant, transportation and infrastructure projects.


34

at 2012 Awards Ceremony held within the framework of 49th

establishment anniversary of Ankara Chamber of Commerce on

December 27, 2012.

A valuable business partner by its powerful financial capacity

Kolin Construction drawing attention with its strong financial

structure is evaluated as a “financially sound company” not only in

the domestic market but also in the international market. Developing

relations with first class banks and financial institutions based on

long–term partnerships and cooperation, Kolin Construction has

the credibility to provide financial support for its projects of various

sizes from both national and international institutions. World Bank,

European Investment Bank (EIB), Islamic Development Bank, Abu

Dhabi Development Fund, Arab Fund for Economic and Social

Development (AFESD), Japan International Cooperation Agency

(JICA), U.S. Agency for International Development (USAID), UNOPS

and Saudi Fund are among the international institutions, which the

company obtains finance and cooperates with. Kolin Construction

which carried out 7 projects valued at totally $28 million in Turkey

between 1998 and 2003 with the loans of World Bank has also

performed totally 7 projects valued at $200 million with the loans of

UNOPS, USAID, Arab Fund for Economic and Social Development

(AFESD), Islamic Development Bank, GTZ Germany, U.S. Ministry of

Defense, Islamic Bank, Abu Dhabi Fund.

Groundbreaker in the sector

Creating difference with its capacity for realizing large-scale

infrastructure and superstructure projects that require expertise,

Kolin Construction has a position as the construction company

that has the highest number of construction projects nationwide

contracted. Breaking many new grounds in the sector, Kolin

Construction has undertaken many projects with this qualification

until today and some of these projects are listed below:

• Within the framework of the Bolu Mountain Passage Project

located in the first-degree seismic zone and where big landslides

take place; all geotechnical measures were taken; the existing

road was expanded without interrupting the traffic flow and a

road and traffic information system was installed.

• The first double highway and crossover road projects of the

Turkish Republic of Northern Cyprus were finalized.

• During the collective housing construction required after the

Adana – Ceyhan earthquake of 1998, 610 houses were finished

along with infrastructure works in just eight months. The

company received a reference from the Republic of Turkey Prime

Ministry for its achievements in this project and it was added to

the company’s portfolio.

• Kolin Construction which established industrial facilities in

order to exploit the strategically important boron mines of

Turkey completed the Kırka 3rd Boron Derivatives Facility and

its supplementary units as a turnkey project. This facility has the

highest boron exploitation capacity in Turkey and was built in the

shortest period of time.

• Kolin Construction undertook and completed the Birecik – Suruç

Highway under the scope of Gaziantep - Şanlıurfa highway, which

is crucial for regional and transit traffic. This road is the first

section opened to traffic since the tender of 1997.

• Kolin Construction completed the construction of the Bozova

Pumped Irrigation Part 1 Project which is the first irrigation project

and financed with international funding through an international

bilateral agreement. This is the first high-pressure, closed cycle

irrigation project of Turkey and it was carried out with Mondragon,

a Spanish company. The project was completed in April 2006.

• Works performed by Kolin Construction under the Southeastern

Anatolia Project (GAP) cover the largest irrigation area of the

region. Agriculture and energy projects which began with the

construction of Uluova Pumping Station in 1985 continued with

the completion of Harran Plain Fourth Section Irrigation Project

in 1996. Besides the Harran Plain Sixth Section Irrigation Project

and Mardin – Ceylanpınar Main Line one of the biggest irrigation

channels of Turkey; Kolin Construction also completed the

Şanlıurfa Tunnel Projects which is among the most important

tunnels of the world. Construction of the Şanlıurfa Tunnel and

Facilities was completed in April 2007.

• The 301 km of the Kabul – Herat Road project, funded by

USAID, and 115 km of road construction, funded by Saudi Fund,

were completed in Afghanistan by Kolin Construction. Kolin

Construction, which mobilized quickly in very severe conditions

of Afghanistan, completed the works on time and proved its

construction and organization skills in the international arena.

Kolin is the only Turkish construction company which finalized

the most road construction projects in Afghanistan. Kolin

Construction completed five transportation, one hospital, and one

unit girls’ dormitory projects in Afghanistan up to 2007.

• Kolin Construction carried out the Jordan Valley Irrigation Project on

behalf of the Hashemite Kingdom of Jordan Ministry of Water and

Irrigation. Work undertaken for the U.S. Secretary of Defense stand

out in terms of both quantity and technical qualities. Included in the

list of U.S. Corps of Engineers for over 15 years, Kolin Construction

has completed 10 projects requiring many advanced equipment

and systems. Adana Central Security Control Facility included in the

said projects and designed to be used as the supreme headquarter

during wartime was completed and handed over in 2003.

• Kolin Group purchased 50%of the shares of Sefine Maritime Inc.

• The first highway underpass project of Baku was completed

in 2007 in Azerbaijan and inaugurated by the President Ilham

Aliyev. Furthermore, Crossing Regulation Construction 1st Section

Bagırov Bridge was finalized in 2009.

• The Al-Khadra Ranch Irrigation Project was completed in Libya.

• The construction of TCDD High-Speed Train Railway

infrastructure between Yerköy, Yozgat and Sivas still continues.

• Construction of the first balanced cantilever viaducts on Artvin-

Erzurum State road was carried out.

The projects that have started in 2011 and before and still

continue in 2012:

• In 2011, since the capacity of Izmir Port is not sufficient,

Çandarlı Port Project was launched in order to carry out the

requirements about the container loads and establish a port

complex which can serve on the main container transport lines

passing through the Mediterranean.

• Rehabilitation and Reconstruction Work of Köseköy-Gebze

Section of the Ankara-Istanbul High-Speed Train Project was also

undertaken in 2011.

• Construction of Water Supply and Waste Water Systems and

Waste Water Treatment Plant for İsmayilli Rayon in Azerbaijan

was started in 2011. This project aims not only to supply clean,

easily accessible and continuous water to İsmailli Rayon but also

remove and recycle the waste water in a manner not to damage

the environment and human health. The construction works also

continued in 2012.

• Again in 2011, Rehabilitation of Hajiqabul-Horadiz Road in

Azerbaijan (M6), Parcel 1 Hajiqabul Bulagli Section Km: 00+000-

40+500 and Rehabilitation of Hajiqabul-Horadiz Road (M6), Parcel

2, Bulagli-Bahramtepe Section, Km: 40+500-112+550 were

started and the projects were also continued in 2012.

• Upgrading of Hoima-Kaiso–Tonya Road (92 km) to paved

(bituminous) standard, which is a preferential project for Uganda

since it is a main route ensuring access to petrol reserves, was

also among the projects undertaken in 2011.

Furthermore, the design and construction works for Water

Supply and Two Unit Pumping Stations in Vadi El Gattara, Ghout

El Sultan and Bingazi Plain as well as 1st Region Bingazi Plain

Irrigation (Sehl Bingazi) in Libya still continues. Again in Libya,

Infrastructure Works project for 10,680 Housing Estate that will

be constructed in Tanjura continues. Kolin Construction continues

the construction of the new U.S. Embassy Facility in Belgrade,

Serbia. Other ongoing projects in Turkey are listed below by the

name of employer organization and the name of the project:

T.R. General Directorate of Highways

• Yıldızeli-Sivas-Zara and Sivas-Ulaş Road

• Sivas-Kangal) Ayr.-Gemerek 6th Reg. Boundary Road (1st

Section)

• Ankara-Pozantı Highway Gölcük-Kemerhisar Section

Construction

• Grading, engineering structures, sub-base, plant mix base and

hot bituminous mixture etc. works that will be performed in about

Km: 0+000-47+769 section of (Sivas-Kangal) Ayr.-Gemerek 6th

Reg. Boundary Road (2nd Section)


36

• Erzurum-Pasinler Horasan Road Construction Work.

• Kahramanmaraş-Göksun-6th Reg. Boundary Road Km:

60+577.99 83+660.30 Section Construction Work.

Highways 1st Regional Directorate / Istanbul

• Earth works, engineering structures, superstructure and bridge

construction work on divided road between Km: 46+300 (Gebze

Western Crossing) - Km: 81+700 (Kaşgaldere Crossing) of D100

Istanbul-Ankara State Road

Highways 2nd Regional Directorate / Izmir

• Earth grading, engineering structures, superstructure and hot

bituminous mixture works for Gökova-Marmaris Road (between

Km: 0+000-26+291,85)

• Izmir beltway, highway construction work between Harmandalı

Crossing-Koyundere Crossing Km: 2+500-10+000

• Grading, engineering structures, superstructure and hot

bituminous mixture surfacing construction works on Menemen-

Manisa Road between Km: 0+000-28+600

• Grading, engineering structures and superstructure works on

İzmir-Çeşme Ayr.- Balıklıova-Mordoğan-Karaburun Road between

Km: 0+000-52+588

Highways 17th Regional Directorate / Istanbul

• Highway superstructure upgrading work on Gebze Crossing-

Körfez Crossing between Km: 45+300-73+469

• Highway superstructure upgrading work on Körfez Crossing-

İzmit Eastern Crossing between Km: 73+469-99+700

T.R. Ministry of Transportation / General Directorate of

Railways, Ports and Airports Construction / Ankara

• Antalya Fishing Port Construction

General Directorate of State Railways of the Republic of

Turkey / Ankara

• Ankara-Sivas Railway Project, Infrastructure Construction Work

between Yerköy-Yozgat-Sivas

• Construction of a new line next to the existing line located in

the north between Ankara-Sincan

The General Directorate of State Hydraulic Works

• Umurbey Plain Irrigation Const. Work – Balıkesir

State Hydraulic Works 4th Regional Directorate / Konya

• Hotamıs Storage Facility Const. Work

State Hydraulic Works 26th Regional Directorate / Artvin

• Artvin-Erzurum State Road 2nd Section Replenishment

Construction, Ortaköy Viaduct and Ortaköy Provincial Road

Construction

State Hydraulic Works Directorate of Drinking Waters and

Sewage / Ankara

• Ankara Drinking Water 2nd Phase Project Gerede System

Construction

• Bodrum Drinking Water Project Drinking Water Facilities

and Supply Pipe 1st Section Scada Automation and Powering

Construction Works

New projects of 2012

Kolin Construction has added following projects into its portfolio

in Turkey in 2012:

• Tandoğan-Keçiören (M4) Subway Remaining Construction

Works

• Yusufeli Dam and Hydroelectric Power Plant Construction

• Kayseri Northern Passage Diversion (infrastructure,

superstructure, signaling, telecommunication and electrification)

replenishment construction project

Total Completed Projects 112 2.882.869.767

Total Ongoing Projects 39 3.495.062.077

Total Completed Transportation and Infrastructure Projects 52 1.926.483.050

Total Completed Agriculture and Energy Projects 24 726.497.799

Total Completed Building-Housing-Industrial Facility Projects 36 229.888.918

Total Ongoing Transportation and Infrastructure Projects 26 2.264.146.146

Total Ongoing Agriculture and Energy Projects 12 1.169.574.817

Total Ongoing Building-Housing-Industrial Facility Projects 1 61.341.114

Remaining Amounts from Ongoing Projects (Backlog) 1.674.428.972

Total Ongoing Transportation and Infrastructure Projects 26 1.260.970.708

Total Ongoing Agriculture and Energy Projects 12 409.019.617

Total Ongoing Building-Housing-Industrial Facility Projects 1 4.438.647

Kolin Construction Projects Unit USD

The scope of Akköy II Hydroelectric Power Plant Project covers Aladereçam, Gökçebel and Yaşmaklı Dams. The energy generation is performed at Akköy II Hydroelectric Power Plant that has constructed in composite construction next to the Akköy I HPP for joint usage with Akköy I Hydroelectric Power Plant.

Ankara-Sivas Railway Project, Infrastructure Construction

Work between Kırıkkale-Yerköy (Section II)

70 km high speed rail line infrastructure works including tunnel,

viaduct, bridge, engineering structures and earth works are

covered within the scope of the project. 7 unit tunnels that

are 4,603 meters in length, will excavated with NATM (New

Austrian Tunneling Method) and finally 608,036 m3 tunnel will

be excavated. Within the scope of the projects, there will be one

unit cut-cover tunnel in the length of 240 m. Within the scope

of viaduct works, totally 6 cast-in-place and balanced cantilever

post-tensioning structures in the length of 6,254 meters will

be constructed. The total viaduct concrete amount in bridge

floor and piers is 125,972 m3. Within the scope of the project,

there are 6 unit precast girder bridges, 12 unit overpasses, 49

unit underpasses and 131 units box culvert as well as 27,471 m2

reinforced earth walls. Throughout the 70 km project line, the

amount of excavation will be 13,500,000 m3 and the amount of

fill will be 7,600,000 m3. Furthermore, surface improvements

such as cast-in-place pile in the length of 44,120 meters and

diameter of 120 cm and cast-in-place pile in the length of 12,774

meters and diameter of 165 cm ; 1,121,498 m3 rock fill and

66,300 m3 impact crushed stone column will be performed. The

scope of the project also includes the construction of 50,000

m3 gabion.


38

KOLSAN CONSTRUCTION AUTOMOTIVE INDUSTRY AND TRADE INC.

Established in 1976, Kolsan Inc. carries out activities in the fields

of manufacturing and sales of ready-mixed concrete, PVC tunnel-

type (horseshoe cross-section) drainage pipes and waterstops.

Its strong infrastructure, loyalty, belief in quality and permissive

approach lie behind its leadership in the sector for many years.

The Company holds TSE Certificate of Conformity to Turkish

Standards, TSEK Certificate of Conformity to Criteria, ISO

9001:2008 Certificate of Quality Assurance.

The first manufacturer of international standard PVC tunnel-type

drainage pipes in Turkey and leader in the sector, Kolsan Inc. has

a market share of 95%.

2012 was a positive and productive year for Kolsan Inc. An

investment of 3-ton Linde forklift has been made. Significant

activities have been carried out in Iraq market in addition to

domestic market.

Throughout the year, the Company operated with the wastage

rate of 1.28%, which is a ultra low rate for the plastics industry.

The purchased whole raw material valued at nearly TL 4,4 million

procured in proper quality, and a 0.0% raw material refuse and

wastage rate has been achieved. 11 man/hours trainings have

been provided for the personnel. By this means, the number of

personnel sourced faults recorded as 0.0%.

Adopting continuous development by assessment and

improvement activities as a principle, Kolsan also reached

99% customer satisfaction with its success to meet customer

expectation and needs in time and trouble-free.

Kolsan Inc. was granted to award in the category of “Loyal

Customer” of 2011 at the award ceremony organized by Petkim

Inc. in April 3, 2012.

Maximum productivity and protection through

PVC tunnel-type drainage pipes and slope

stabilization cells

PVC Tunnel-Type Drainage Pipes

Manufactured by Kolsan Inc., enables

excellent drainage of ground and

surface waters thanks to their structure.

With the pipes used in the projects,

that these pipes enabled them to be

finalized, waters are transferred to the

discharge channels and thus the collapse

of the base and infrastructure of the building is prevented. In

addition, again with small diameter drainage pipes and slope

stabilization cells the destroy of the earth due to reasons such as

erosion, landslip etc. is prevented in sloped lands.

Major projects in which the products of Kolsan Inc. have

been used

Ankara-Niğde Highways, Southeastern Anatolia Project (GAP),

Bozüyük-Mekece Road Upgrading Project, Gaziantep Beltway,

Bursa Beltway, Artvin-Erzurum Road, Karadeniz Coastal Road

Projects, Elazığ Anatolian High School, Bulgaria Highway

Construction Site, Ankara-Istanbul High Speed Train Project,

Kahramanmaraş Guided Irrigation Construction, Derbent Dam Road,

Tekirdağ-Muratlı State Railways Construction Site, Umur Bey Dam,

Saraçbendi HPP Construction Site, Çine Dam and HPP Project,

Sarıyer Primary School, Ankara-Sivas High Speed Train Project,

Nahçıvan Road Construction Sites, Ankara-Pozantı Highway Project.

Ongoing growth in 2013

Kolsan Construction Automotive Industry and Trade Inc. aims to

increase its current manufacturing capacity to 2,500 tons, ensure

100% customer satisfaction and reach 15% turnover increase. The

Company will maintain its leader position without sacrificing quality

with the advantage of being the first company to manufacture tunnel-

type drainage pipes.

Kolsan Ready-Mix Concrete: A reliable supplier offering

quality in ready-mix concrete

Kolsan Construction Automotive Industry and Trade Inc. began

to the manufacturing and sales of ready-mix concrete in Afyon

under the name of Kolsan Ready-Mix Concrete in 1996.

Kolsan Ready-Mix Concrete ensures the sustainability of its quality

with its professionalism in all manufacturing process that covers the

material procurement, which is the initial stage of manufacturing,

optimized delivery of the concrete, delivery of the concrete in its

owned standards, systematic supervision and maintenance of

the facilities, with the target of high customer satisfaction and the

sense of outstanding service. The Company performs high quality

manufacturing with its expert staff in concretes that requires

special precision. The Company has modern plants

that are compatible with the world standards.

Primarily the strong group structure, young

and dynamic human resources and

importance attached to the innovation lie

behind the success of Kolsan Ready-Mix

Concrete. The speed and creativity thanks

to all of these enable Kolsan Ready-Mix

Concrete to be strong and sustainable.

Kolsan Inc. is the first manufacturer of PVC

tunnel-type drainage pipes in international standards in

Turkey

Kolsan Ready-Mix Concrete has undertaken the supply of ready-

mix concrete for many large and small projects in the regions

where it operates and realized all of them successfully within

the provided commitments. In significant projects from Çankaya

and Gölbaşı to Pursaklar and Kazan in Ankara; from Emirdağ and

Çay to Sandıklı in Afyon, have the signature of Kolsan Ready-

Mix Concrete. The Company is one of the strongest companies

having the highest market share in these regions.

In 2012, Kolsan Ready Mixed Concrete has increased the

aggregate production capacity of Afyonkarahisar Crusher Plant

to 200.00 TON/hour from nearly 125.00 TON/hour with an

investment valued at TL 1,500,000.00. Thus, the Company

further strengthened its place among most important aggregate

production companies within the region where it operates.

Again within the year, the Company has undertaken the ready

mixed concrete supply of Ankara Tandoğan - Keçiören Subway route

project and within the scope of the project made the investment of

100 m3/hour ready mixed concrete plant and equipment.

Kolsan Ready Mixed Concrete offers services in high-level of quality through its manufacturing plants that utilize cutting-edge technologies.

Kolsan Ready Mixed Concrete has sold approximately

600,000.00 m3 ready mixed concrete that have been subjected

to technological inspection and manufactured with constant

precision at ready mixed concrete plants in Ankara and

Afyonkarahisar. Each plant operated at optimized performance

level according to the geographical and climatic conditions of the

regions where plants are located.

Kolsan Ready Mixed Concrete is the member of Turkish Ready

Mixed Concrete Association (T.H.B.B.) and is subject to Quality

Assurance System; holds TSE (Turkish Standards Institution)

certificate both in aggregate and ready mixed concrete, CE

certificate and moreover G certificate in aggregate. The Company

closely follows developments and innovations in the sector.

The company always keeps abreast of developments and

innovations in the sector by following both regional and national

congress, seminar and trainings related to the sector and printed

publications. In addition, the Company maintains its quality

leadership in the regions where it operates with the experienced

labor force, R&D and innovation capability. The Company targets

to strengthen its position as the reliable supplier identifying with

the quality by increasing its business volume in 2013.


40

PREBETON PREFABRICATED COMPONENTS AND READY-MIX CONCRETE INDUSTRY AND TRADE INC.

Prebeton is among the leader companies in its sector thanks to

its production capacity, quality, safety, and ability to deliver the

projects on time. The Company leads the sector in the fields of

manufacturing, transportation and installation of prefabricated

prestressed beam.

The capability of performing high speed and quality manufacturing

all across Turkey by mobilizing within a month is the most

significant superiority of the company in competition.

In 2012, new projects have not been undertaken and activities for

finalizing the existing projects have been carried out. Activities for

Ankara-Sivas High Speed Train projects continued.

Prebeton freshen up and speed up the trade in the regions in

which it carries out activities. The Company provides positive

contribution for the community and economy since it respects

environment and life and is stable in terms of labor force.

Having 5% share in the sector, Prebeton will continue its

activities with the target of maintaining its superiorities,

participating into new projects and increasing its market share.

GEOMED GEOTECHNICAL CONSULTANCY, INVESTIGATION, SUPERVISION AND TRADE INC.

Geomed Geotechnical Inc. is a geotechnical project company

that has been carryin out activities in the fields of survey, project,

consultancy in soil mechanics and foundation engineering since

2000. The company has completed engineering, consultancy

and control services for significant amount of road, tunnel, soil

investigation, and design work as well as the related construction

and contracting projects in countries such as Turkey, Afghanistan,

Libya, Russia, Azerbaijan, and Jordan.

The Company holds Ministry certificate for the laboratories and

competency certificates of geology and construction engineering

chambers.

The Company continues to be one of the active companies of

the sector by creating innovative solutions in the participated

projects, developing itself by following the implementation results

of the solutions, closely following new developments in the

sector by attending to the events such as congress, conference.

The Company also distinguishes with its expert qualified labor

force in geotechnical works.

Köseköy-Gebze High Speed Train Project Geotechnical Services,

Yerköy-Sivas High Speed Train Project Geologic-Geotechnical

Services, Çandarlı Port Jetty Construction Geotechnical Services

Consultancy are among the projects realized in 2012. Geomed

Geomed realizes successful projects as the solution partner in local and abroad projects of Turkey’s leading construction companies. The Company offers high quality and reliable services through its in-house project-laboratory-measurement teams.

also attaches great importance to prevent economic losses by

creating right and economically optimum solutions in the carried

out projects.

Productivity improved with new equipments

In 2012, the Static Penetrometer (CPT) tool, which is a sophisticated

engineering identification tool used for the determination of

engineering parameters of poor bearing soils and the liquefaction

potential of alluvial ground in an earthquake, has been acquired.

Furthermore, a boring cam has been acquired. Continuously

recording the view of internal walls of geotechnical and mine

boreholes, the device is used to view the status in the place of

mineral ores in the determination of carstic gaps. The value of these

financial investments in 2012 was approximately TL 200,000. In

2013, the activities intended for developing the current business

volume and creating business fields abroad will continue.

MURTEZAOĞLU CONSTRUCTION INDUSTRY AND TRADE INC.

Offering services with infrastructure, superstructure, railway, bridge

and similar construction projects, Murtezaoğlu Construction had

been established in 1930 and 88% shares of the company acquired

by Koloğlu Family in 1999.

The Company has recently entered the railway construction

sector. In 2012, the Company formed its internal structure with a

35-person skeleton crew. Targeting to become a leader in railway

superstructure construction field, Murtezaoğlu Construction will

realize significant projects in 2013.

In 2012, the Company made investments in railway panel laying

system, 2 unit railway rail welding machines and laying machines

with approximately 15,000,000 Euro budget.

Within the year, the Company has undertaken 2,700 rail butt-welding

project for Turkish State Railways Ankara 2nd Region and 84,000

meters line maintenance project for Turkish State Railways Ankara

2nd Region.

In 2013, the Company will begin to the superstructure construction

activities for Nusrat Gökçedağ Line Renovation Project in the length

of 110 km, Palu Genç Muş Railway Re-location Project in the length

of 114 km and Kayseri Northern Passage Diversion Replenishment

Construction Project in the length of 23 km.


42

Murtezaoğlu Construction has qualified employees who work

together with harmony and trust and who are researcher and

open for improvement. The Company follows the developments

and innovations in the sector and incorporates these to the

business processes aims to ensure maximum productivity by

implementing these in its existing projects.

Aiming to make a rapid enter into the sector in 2013, the

Company targets to take a place among the top companies of the

country in railway line construction in Turkey and create added

value for our country through the growth achieved by participating

into the abroad projects.

ARMİN ELECTRICITY CONSTRUCTION INDUSTRY AND TRADE INC.

Armin Electricity Construction Industry and Trade Inc. provides the

supply of the electricity for construction and industrial plants in

the country and abroad and the contracting works required by the

business fields associated with these (electromechanic, energy

transmission, generation, highway lighting and energy distribution).

Kolin Group of Companies has been taking firm steps forward

since 1999 and improves its success each passing day thanks to

innovative and qualified labor force, new construction techniques

and strong technical support with the contributions of Kolin Inc.

The major feature of the company that distinguishes the company

from other is the ability of solving financial and technical issues by

itself. Armin Inc. pioneers local companies with its experience in the

fields of mid- and high voltage energy distribution and high speed

train, conventional railways electricity and electronic equipment

installation, catenary system installation.

The Company ensures competitive advantage through its

R&D activities and creates difference in its activities with the

contribution of its well organization, qualified human resources,

structure that is open for improvement and sense of ethical trade.

The Company offers high quality service in price and competition

based system and gains trust with on time project delivery.

Armin Electricity Inc. holds ISO 9001:2008 Quality Management

System, ISO 14001:2004 Environmental Management System

and OHSAS 18001:2007 Occupational Health and Safety

Management System certificates.

New projects of 2012

In 2012, Armin Inc. recorded growth both in turnover and

new branches by leaping forward. The Company offered

subcontracting for the tenders made by Turkish State Railways.

Technical and installation machines, which are required for the

installation of catenary and signalization systems in High Speed

Train, have been acquired to use in railway projects and activities

have been started in this regard. Less number of the companies

and qualified personnel operating in this field enabled Armin Inc.

to achieve its objectives and meet the expectations. Again during

the year, the electricity infrastructure works for Turkish State

Railways Eskişehir-Istanbul High Speed Train Railway Project has

been started, manufacturing and installation of 34.5 KV and 154

KV Energy Transmission Lines of Yaprak and Berat Hydroelectric

Power Plants also started in Antalya (Alanya).

In 2012, Armin Electricity Inc. undertaken and successfully

finalized the electricity works included in the investment program

of Uludağ Electricity Distribution Inc. and Çamlıbel Electricity

Distribution Inc. Within the scope of UEDAŞ (Uludağ Electricity

Distribution Inc.) project, the renewal of Low/Mid Voltage mains

in Bursa, Balıkesir, Çanakkale and Yalova and additional facilities

project, village networks and electricity transmission lines; within

the scope of ÇEDAŞ (Çamlıbel Electricity Distribution Inc.) project

electricity transmission lines, main and High/Low Voltage mains

investment plants projects in Sivas, Yozgat and Tokat have been

realized.

Furthermore, the Company participated into Niğde Highway

lighting and Turkish State Railwyas Ankara-Sivas high speed train

project with Limak-Kolin-Cengiz-Mapa joint venture.

In 2012, a new business environment has been created with

international companies operating in mining sector. Activities in

this regard still continue. Railway activities with the companies

of People’s Republic of China and plant electricity activities with

Kuzey Biga Mining Company have been launched.

Armin Inc. also launched Feveran Cafe in Bornova, Izmir and

obtained a new revenue resource by renting out this place.

Armin Inc., which is capable to carry out whole railway electricity

and electronic equipment installation and assembly works that

were in monopoly by foreign companies for years, prevents

the outflow of foreign currency by this means and play a role

in decreasing import in terms of labor force. Participating into

projects that will contribute to the future of Turkey, the Company

also contributes to the country economy through its employment

by developing significant investments, many of which were state

investments such as highway lighting, installation of energy

transmission lines, installation of telecommunication lines.

Within the framework of 2013 objectives of Uludağ and Çamlıbel

Electricity Distribution companies, the Company targets to obtain

new projects from private and public organizations operating

in the country and abroad in addition to Turkish State Railways

projects and finalize them successfully. Strengthening its prestige

through its quality and reliability and growing will be one of

the primarily objectives of Armin Inc. in the next year as it was

always.

KLG LLC LTD.

The company started its activities in 2011 in order to develop

HPP Projects, invest in the energy projects, establish facilities and

carry out the rehabilitation of the current facilities and to execute

production and operation activities.

Armin Inc. contributes to the future of Turkey through its realized projects. The Company plays a key role in providing employment as well as decreasing foreign-source dependency by undertaking many projects that were in the monopoly of foreign companies in the past.


44

EnergyKolin Energy Group is among the leader companies of the sector with its generation, distribution, wholesale and retail sales activities in a wide range.

AkköyThe installed capacity has increased to 337 MW by a 105 MW capacity increase with Akköy II (2012) after Akköy I (2008).


46

İzmİrgaz Natural gas DistributioN iNc.

Founded with the joint venture of Kolin and Türkerler Group,

İzmirgaz is the only authorized company to carry out the activities of

natural gas distribution within the borders of “Distribution Region”

consisting of Izmir and Tire and transportation through local natural

gas pipeline network within the scope of the license obtained from

Energy Market Regulatory Authority and still carries out natural gas

urban distribution activities in Izmir.

With 2.8 billion Sm3 natural gas consumption realized within 2012

in Izmir, İzmirgaz has achieved a 6.2% share in total natural gas

consumption throughout Turkey.

Offering natural gas to approximately 925 thousand potential

subscribers within the scope of its license area through its

realized investments and active marketing activities, the

Company reached totally 391,450 housing equivalent (BBS)

subscribers by achieving the targeted subscriber number in 2012.

“Interior piping and Service line Certificate” has been given to

totally 474 companies for providing service in interior piping

transformations to the customers.

By the year-end of 2012, İzmirgaz provides distribution service

to totally 324 industrial consumers including 145 customers as

56 industrial and 89 free consumers; 150 customers in industrial

plants located within organized industrial zones and 29 customers

receiving transportation service.

As of 2012, the Group provides services through 4 subscriber

centers and aims to increase this number to 9 until the end of 2013.

İzmirgaz ranks 3rd throughout Turkey in terms of natural gas

transportation potential and reached below transportation figures

at the end of 2012:

Subscriber (Housing, Industry, etc.) 244.066.451 Sm3

Free Consumer (İZMİRGAZ) 170.706.826 Sm3

Transportation 2.340.942.766 Sm3

Total 2.755.716.043 Sm3

Izmir, the second region in terms of industrial density in Turkey,

ranks second in export-import coverage ratio. It is inevitable that

the usage of natural gas becomes widespread in cities where the

industry and export develop. In this context, İzmirgaz will always

rank near the top in terms of natural gas transportation potential

in Turkey.

Since 2007, İzmirgaz has been holding ISO 9001:2000 Quality

Management System, ISO 14001 Environmental Management

System and OHSAS 18001 Occupational Health and Safety

certificates.

2012 investments and projectsMaking investments valued at totally TL 217,561,214 from its

establishment in December 2005 until the end of 2012, İzmirgaz

has performed 1,800 km PE line, 194 km steel line, 82 thousand

unit service boxes installation until today. The Group increased

its RMS/A number to 18 from 16 by adding 2 more units. It aims

to acquire two more units RMS/A in 2013. The installation and

activation of totally 92 unit region regulators throughout the city

have been realized.

İzmirgaz developed natural gas marketing strategies within the

scope of subscriber categories such as industry, establishments,

school in addition to infrastructure construction works for

expanding throughout the city and achieved significant successes

in 2012.

In 2012, approximately 150 schools located all across Izmir

received natural gas under the name of “Transformation in

the Schools” campaign carried in cooperation with Provincial

Directorate for National Education. Same project continues in

2013 and it is targeted that all schools located within the license

area to receive natural gas.

One of the most significant contributions provided and will be

continued to be provided increasingly to Izmir and Izmir public is

the contribution of natural gas to the inhalable air quality of Izmir.

In parallel to the widespread usage of natural gas the increasing

number of the users played a key role to

transform Izmir to a city in modern standards

by preventing intense air pollution. In this

regard also the significant support of non-

governmental organizations and public

organizations has been received.

İzmirgaz employed nearly 7,000 people in

2012 and provided significant contribution

to Izmir economy together with its

employees, many infrastructure companies

being cooperated with, nearly 474 internal

piping companies, manufacturing and marketing

companies and employees of contractor companies

working in infrastructure construction works.

social responsibility of İzmirgazOur social responsibility projects realized in 2012 includes;

İzmirgaz Theater Club, İzmirgaz Turkish Classical Music Choir,

Photography Contest and Interscholastic Painting Contest.

İzmirgaz Theater Club and İzmirgaz Turkish Classical Music Choir

are among the projects which appeal the sprit and culture of

public of Izmir.

İzmirgaz was granted to Golden Valve award due to its

contributions in education and culture fields at 2012 Turkish

Energy Summit Gas&Power held in Kayseri World Trade Center

between October 11 and 13, 2012 with the participation of all

players of Turkish energy market.

2013 targetsIn 2013, İzmirgaz will continue its activities in line with the below

targets:

• To increase the number of subscribers in the regions where its

investment activities have been finalized,

• To rise the transported / sold natural gas amount to 3 billion m3

by the end of the year,

• To improve customer satisfaction focused activities,

• To increase the number of industrial customers,

• To increase the number of online transaction by utilizing new

technologies,

• To create brand loyalty and come to the fore,

• To expand the usage of cooling with natural gas technology,

• To create conscious natural gas consumer.

Esgaz - EsKİŞEHİr urbaN Natural gas DistributioN iNc.Esgaz Inc. has been carrying out natural gas distribution activities

within the borders of Eskişehir province urban area within the body

of Kolin Group of Companies since 2004. The Company meets

nearly 3% of domestic natural gas consumption demand in Turkey.

Adopting the principle of doing the most business with least

resources without compromising qualified service principles, the

Company is among the most productive companies in natural gas

distribution sector. Through the projects and

investments realized with its experienced

managers and personnel, the Company

ensures the security of subscribers’ lives

and properties with its care for safety gas

usage while enabling the usage area of

natural gas to become widespread.

Prominent activities in 2012 In 2012, the total natural gas trade amount

of Esgaz Inc. recorded as 527.5 million

Sm3. 271.7 million Sm3 of this amount was

the natural gas delivery to subscriber group

customers and 30.2 million Sm3 of this amount

was the natural gas delivery to the customers included in free

consumer group and 225.6 million Sm3 was composed of the

natural gas amount that was only transported. On the other hand,

18,822 BBS new subscribers have been recorded in 2012 and by

the year-end of 2012 totally 323,811 BBS subscriber figure has

been reached.

In 2012, the infrastructure investments related to the newly

created residential area within the city continued. In this

context, 38,901 meters PE main line, 20,341 meters PE

service line, 50 meters steel line manufacturing, 2,025 unit

service boxes and 1 unit region regulator installation have been

carried out. The total cost of mentioned realized infrastructure

investments was TL 4,387,982.00 excluding VAT.

In the region a new “Pressure Reducing and Measurement

Station” with 25,000 m3/hour capacity has been constructed for

gas supply to Çukurhisar County included in the distribution area.

The total cost of this constructed station was TL 2,149,577.17.

Furthermore, again in 2012, 3 units “Pressure Reducing and

Measurement Station”, which were owned by BOTAŞ that

provided gas supply to Eshişehir Organized Industrial Zone,

have been taken over by Esgaz Inc. The cost of mentioned

taken over plants was TL 1,080,000.00 excluding VAT.

Esgaz Inc. holds ISO 9001 Quality Management, ISO 14001

Environmental Management and OHSAS 18001 Occupational

Health and Safety Certificates.

Esgaz Inc. is among the Corporate Tax Champions of Eskişehir

Province with its high tax amounts paid in each year and by

this means provides significant contribution to the economies

of both Eskişehir and the country through the high added value

created by the company. In 2012, the Company ranked 5th

among the corporate tax payers in Eskişehir province.

Esgaz inc. blazed a trail In Eskişehir, which is one of the provinces that first met with natural

gas in Turkey with its nearly 16-year natural gas history, since

both operated natural gas network and internal piping used by the

Kolin Inc. increases its investments in energy field that is the most

important agenda item of the world through the energy companies incorporated in

its structure.


48

subscribers are too old, this requires mentioned network and internal

piping to be monitored periodically. Esgaz Inc. blazed a trail in this

regard among the distribution companies and launched the project

for periodical monitoring of internal piping used by the subscribers

for ensuring the safe gas usage.

Within the scope of the project; the public were informed about the

matter by the support of primarily local press, district governorships

and consumer associations. Then, necessary planning has been

made to begin with the regions having the oldest natural gas usage

and public availability sessions have been organized in the said

regions with the subscribers and the sensitivity and necessity of

the issue have been explained. Thanks to the interest and positive

approach of the subscribers, in 2012 device changes and installation

revision as well as harmonization with the technical standards of

internal piping of approximately 7,200 have been performed. It is

planned to sustain the said field activity that began in 2012 also in

the next years for ensuring safe gas usage.

New distribution regionsSince the judicial process, which has been started in previous

years with appeal of Esgaz Inc. to include the county in the

distribution region, resulted in Company’s favor, Çukurhisar

County of Eskişehir province has been included in the distribution

region in 2012. The natural gas distribution service to the said

county will be provided by Esgaz Inc. as of the beginning of 2013.

Furthermore, again Kırka, Mahmudiye and Çifteler Counties of

Eskişehir province made a claim to be included in the distribution

region of Esgaz Inc. with the resolutions of municipal councils.

With October 18, 2012 dated and 4075-7 numbered Energy

Market Regulatory Authority Board Resolution taken after the

initiatives performed at Energy Market Regulatory Authority

related to the matter, these three regions also included in the

distribution region of Esgaz Inc.

In 2013, Esgaz Inc. aims to revise its investment plans as to cover

the new regions included in its authorized area in parallel with the

said developments emerged in the distribution area and enable

these citizens to benefit from the comfort, ease and safety of the

natural gas also in the future years.

Naturgaz Natural gaz imPort, EXPort, iNDustrY aND traDE iNc.Naturgaz Natural Gas Import Export Industry and Trade Inc.

entered into natural gas sector with the Natural Gas Wholesale

License obtained in October 4, 2007 from Energy Market

Regulatory Authority.

Naturgaz Inc. changed its Wholesale License into Import License

(SPOT LNG) in February 17, 2011. The Company still continues its

wholesale activities that were started in 2010. Being one of two

companies that provide natural gas supply of İzmirgaz and Esgaz

in 2012, the Company will continue its natural gas supply in these

two regions with respectively 30% and 24% market shares also in

2013. Performing also natural gas trading through day-ahead and

end of day transactions with other suppliers in natural gas wholesale

market, the Company increases these transactions each passing day.

In 2012, 8 importer companies and 18 wholesale companies

including public organizations actively operate in our country’s natural

gas market, in which the public still prevails. Naturgaz Inc. still has a

market share of 0.3% among these companies and in 3-year period

including 2010-2012 achieved TL 229 million sales revenue and pre-

tax profit of nearly TL 16.8 million. The Company performed 122

million Sm3 natural gas trade and reached TL 83.5 million turnover.

Naturgaz Inc. plans to supply natural gas to distribution companies

and free consumers in competitive conditions by importing short

and medium term LNG (Liquefied Natural Gas) The most important

precondition in the development of free natural gas market is the

determination of the price based on supply-demand balance by

eliminating the barriers to the competition in natural gas supply.

Increased energy prices in consequence of increased petrol prices

did not reflect on the domestic market in 2012 due to pricing policy

of the public based on cross-subsidize. In 2012, the pricing policy of

the Public, which dominates nearly 90% of the market, also affected

the new entries and the development of competition between

current players.

As in the other fields of energy, also in natural gas sector the

most important factor is the supply diversity and safety. By

taking this into account, 4646 numbered Natural Gas Market Law

obliges distribution companies to procure natural gas supply from

at least two companies. However, it is too difficult to provide

natural gas supply according to demand profile due to load factors

in consumption profiles of the distribution companies. Naturgaz

Inc. has undertaken the supply amount, load factor and price

risks of the distribution companies that it supplies natural gas and

sustains this successfully.

Naturgaz Inc. aims to double its market share in 2013. With its

Import (Spot LNG) License, the Company plans to import by itself

some part of the gas that will be wholesaled in the forthcoming

period as LNG.

The Company will sustain its activities to implement strategies

that are suitable for both its own cost structure and requirements

of the customers in marketing and amount and price risks

management through the diversification of the supply in natural

gas market and more transparently operation of trade center and

balancing market mechanisms.

Naturgaz Inc. sustains its activities in natural gas sector for the

formation of natural gas trade center in which a reference natural

gas price will be determined and realizing an organized, operating

market place, and together with PETFORM, which it is the member

of, the Company labors over establishing a platform that is required

by natural gas market and in which the consumers and suppliers

will come together and perform trade without any limitations.

EtKİ Port maNagEmENt Natural gas imPort aND traDE iNc.

The operations related to the LNG Storage and Gasification

Terminal investment planned to be established in Aliağa district of

Izmir by Kolin Group of Companies and accordingly applied to the

Energy Market Regulatory Authority for the license are carried out

by Etki Port Management Natural Gas Import and Trade Inc.

It is foreseen that the plant that is planned to be constructed as

the third LNG storage and gasification terminal of Turkey to shall

have simultaneously 280,000 m3 LNG storage and annually 6.3

billion m3 gasification capacity. Together with the realization of the

project, our country will gain a new natural gas supply point and

also the contribution will be provided for the supply safety.

The operations related to realization of said investment at Energy

Market Regulatory Authority and other organizations have been

also carried out by the Company in 2012 and on August 14,

2012 Assent Resolution for the project have been obtained from

Energy Market Regulatory Authority.

During 2013, it is targeted to finalize Environmental Impact

Assessment that a significant progress has been achieved and

then to obtain the license.

Free consumer Pricetl/1000 sm3

Free consumer Price$/1000s m3

brent$/varil

900

Gas Price oil Price

140

120

100

80

60

40

20

0

800

700

600

500

400

300

200

100

0

Jan

uar

y 08

Jan

uar

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9

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uar

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Jan

uar

y 11

Jan

uar

y 12

Mar

ch 0

8

Mar

ch 0

9

Mar

ch 1

0

Mar

ch 1

1

Mar

ch 1

2

May

08

May

09

May

10

May

11

May

12

July

08

July

09

July

10

July

11

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12

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tem

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08

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tem

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09

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10

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11

No

vem

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08

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Domestic sales Prices and crude oil


50

aKKÖY ENErgY iNc.

Akköy Energy has been established in 1999 with the intent of

developing Akköy I and Akköy II hydroelectric power plants

(HEPP), which are among the important projects developed by

private enterprises in Turkey and has undertaken to establish

and take into operation said power plants within 49-year license

period and operate until the end of license period. The main

partner of Akköy Energy Inc., which reached totally 337 MW

installed capacity with Akköy I HEPP taken into operation with an

investment amount valued at USD 120 million and Akköy II HEPP

taken into operation in 2012 with an investment amount of €312

million Euro, is Kolin Construction Tourism Industry and Trade Inc.

with a share rate of 97%.

Kolin Construction Inc.’s 36-year business experience,

engineering vast knowledge, market experience and the trust it

gained in the markets is also a fundamental impetus for Akköy

Energy as it is for other companies that are incorporated in the

group and carrying out activities in different sectors. The most

important advantages of Akköy Energy as compared with other

companies operating in the same field in electricity market

are; Kolin’s competent and experience personnel, business

experience, vast knowledge and capability of establishing and

operating plants that are cost efficient but also productive thanks

to technological infrastructure and strong financial structure.

Akköy Energy utilizes our country’s water resources in electricity

generation instead of imported energy resources that contain

significant risks and uncertainties in terms of pricing and this

plays a determining role in terms of the protection of competitive

power in the market.

Akköy Energy Inc. optionally may sell the electric energy to

the following within the scope of the license, since it holds

generation license including renewable energy resource utilization

within the scope of carried out projects:

• To the market participants by getting involved in RER Support

Mechanism operated by TEIAŞ Load Dispatch Center with RER

Support Unit Price that is determined as 7.3 cents/kWh in Law

no. 5346 Regarding the Use of Renewable Energy Resources for

the Generation of Electric Energy,

• To wholesaler, retailer companies and free consumers through

independent bilateral agreements,

• To the Day Ahead Market and Balancing Power Market within

the scope of the Balancing and Settlement Regulation.

In 2012, the electricity consumption in Turkey recorded as 241.94

billion kWh and the electricity generation recorded as 239 billion

kWh and the 2012 generation of Akköy Energy recorded as 555

million kWh. The market share of Akköy Energy in Turkish energy

generation market realized as 0.23%.

Akköy Energy, whose electricity generation amount is based on

water revenue, reaches target optimum profit volume ratio. In

2013, Turkey’s electricity consumption is estimated to realize as

255.34 billion kWh and it is expected that the market share of

Akköy shall rise to the level of 0.35% with the contribution of

new units taken into operation in June 2012.

akköy i HEPP

Constructed over Harşit River in Kürtün district of Gümüşhane

province, Akköy I Dam and Hydroelectric Power Plant is a 54 m high

dam body made of roller compacted concrete (RCC), with an energy

power plant comprising of a 12.5 km long energy tunnel housing 3

(34.5MWm/33.98MWe) powered vertical axis Francis type turbines.

In the first and second units of Akköy I HEPP as of August 19,

2008 and in the third unit as of November 27, 2008 the commercial

generation activities have been launched and the net generated

electric energy provided to the national mains since the date of

becoming operational is as follows by the years: in 2008 20.15

million kWh, in 2009 317.40 million kWh, in 2010 303.31 million

kWh, in 2011 236.73 million kWh and in 2012 232.15 million kWh.

akköy ii HEPP

The scope of Akköy II HEPP Project includes Aladereçam,

Gökçebel and Yaşmaklı Dams. The energy generation is

performed at Akköy II Hydroelectric Power Plant that has

constructed in composite construction next to the Akköy I HEPP

for joint usage with Akköy I Hydroelectric Power Plant.

Aladereçam Dam is located on the Karaovacık River in

Gümüşhane at a 1.790 m thalweg elevation with a 56 m tall dam

body made of roller compacted concrete (RCC). The dam water

is transferred through an energy tunnel approximately 4.7 km in

length with a bore diameter of 3.20 m, a surge tank and a 1.50 m

diameter penstock which is 455 m in length to the power plant

in 7MW installed energy power. The water holding capacity of

Aladereçam Dam has been calculated as 13,934 hm3 and the

water used here is steered to Aladereçam HEPP and after flowing

through the turbines flows into the reservoir of Gökçebel Dam at

the exit of the power plant.

Gökçebel Dam has been constructed over Gelavara River at a

1,491 m thalweg elevation with a 140 m tall concrete covered

front rock fill dam. The water holding capacity of Gökçebel Dam

has been calculated as 94.78 hm3. This dam is connected to

the Yaşmaklı Dam reservoir with a conveyance tunnel of 6.651

m in length with a diameter of 4 m. Yaşmaklı Dam has been

constructed over Gavraz River at a 1,527 m thalweg elevation

with, 103 m tall concrete gravity dam. The water holding

capacity of the dam has been calculated as 17.68 hm3. The water

collected in the reservoir will be conveyed by an energy tunnel

4.002 m in length with a bore diameter of 4 m to the surge tank

and from there to the Akköy II Hydroelectric Power Plant via a

penstock 3,688 m in length with a diameter of 2.70 m and a clear

drop of 1.220 m.

Akköy II HEPP Project ranks first in Turkey and fourth in the

world with its 1,220 m clear drop height. Thanks to the pressure

that will be obtained with this high drop, nearly 0.33 m3/kWh

specific water consumption is obtained and thus highly economic

operation conditions are provided.

The power plant operates with two unit Pelton type turbines

with a vertical axis power of 116.79 MW (total 233.58 MW). It is

planned to generate approximately 900 GWh/year of energy at

Akköy II HEPP.

With the activation of Akköy II HEPP, the total installed capacity of

Akköy Energy has reached to 337 MW.

Commencing to the generation in June 2012 with substantial

completion, Akköy II HEPP generated electric energy of totally

313.96 million kWh until the end of 2012.


52

With Akköy I and II Projects, which have been developed with the

target of utilizing our water that is the most important domestic

and renewable resource, a project that will constitute a model in

terms of meeting increasing energy requirement of our industry

with eco-friendly energy resources has been realized while a

contribution has been provided for decreasing foreign-source

dependency of our country in energy.

Akköy I and II Projects, also feature a significant milestone which

proves the engineering infrastructure and financial power of

Kolin in this regard in addition to being the first investments of

Kolin in the energy field. The advantageous unit investment cost

obtained thanks to the vast knowledge, experience and technical

opportunities of Kolin and the unit operating cost minimized

by utilizing its engineering power, in these significant projects

will create a significant added value while enabling Kolin Group

of Companies to take an important place in the market also in

electric energy generation field as it is in other fields.

iŞiKsu ENErgY ProDuctioN aND traDE iNc.

Established in 2008, Işıksu Inc. made a license application to Energy

Market Regulatory Authority (EMRA) to build and operate a natural

gas combined cycle power plant in Çakmaklı village area of Aliağa

district in Izmir province for an installed capacity of 430 MW.

A preliminary certificate of conformance has been obtained

from EMRA within the scope of the license application and

the EIA works executed under the auspices of the Ministry of

Environment and Forestry have reached the final stage.

Other activities for realizing the project still sustains. The zoning

plan proposal operations reached the final stage and it is targeted

to finalize licensing operations upon obtaining the EIA Acceptance

Certificate and commencing construction works by concluding

purchasing and construction agreements.

KolEN ElEctrical ENErgYProDuctioN aND traDE iNc.

In 2012, Kolen Electricity Wholesale Import and Export Inc. has

been activated and entered into electricity wholesale market for the

first time. Kolen Inc. has been restructured as available for taking

rapid decisions for carrying out activities in electric energy trade.

The amount of electric energy traded by Kolen Inc in 2012 was

approximately 540 million kWh and its sales revenue realized as

TL 50 million.

The Company has started electric import for the first time in 2012

and imported electric energy of nearly 45 million kWh within the

period of October-December.

Through the optimizations made by Kolen Inc., a significant

increase has been obtained in the profitability of Akköy I and

Akköy II HEPP, which carry out activities in electricity generation

filed and incorporated in Kolin Group of Companies.

When determining the objectives and expectations of Kolen Inc.,

electricity generation opportunities and objectives in Kolin Group of

Companies are taken into account. In 2013, it is targeted to diversify

the portfolio of electric energy and utilize different instruments in

the market in addition to profitability and turnover increase.

truva coNstructioN iNDustrY aND traDE iNc.

Truva has been established in 2005 with the intent of making

investment in energy and industry sectors as well as performing

energy import and export.

The vast knowledge of Kolin Group of Companies in construction

and energy sectors enables Truva to be competitive in its activity

fields. The 2012 turnover of the Company recorded as TL 124.35

million.

Truva began to provide electricity infrastructure construction

services to Uludağ Electricity Distribution Inc. and Çamlıbel

Electricity Distribution Inc. companies as of the beginning of

2012 by participating to Da-Ta Joint Venture with 98% share. The

company sustains its activities in Bursa, Balıkesir, Çanakkale,

Yalova, Sivas, Yozgat and Tokat provinces and their districts.

Kolin Group of Companies sustains its activities in electricity, natural gas and renewable energy fields with smart investments in line with the target of vertical integration determined for the energy sector.

albE ENErgY ElEctricitY, ElEctroNics, coNsultaNcY, aDvisorY, oil, miNiNg, agriculturE, stocKbrEEDiNg, iNDustrY aND traDiNg iNc.

Yalnızardıç Dam and Berat HEPP, which are among the

hydroelectric power plant projects being developed by the

company, are located in Antalya province and its installed capacity

is 33 MW and annual energy generation is 86 GWh. Another

project Yaprak HEPP is also located in Antalya province and its

installed capacity is 9.7 MW and annual energy consumption is

29 GWh.

The energy generation at Yaprak HEPP will begin in 2013 and it is

planned to begin the constructions of Yalnızardıç Dam and Berat

HEPP within the same year. It is foreseen that the constructions

of Yalnızardıç Dam and Berat HEPP will be completed in 2015.

HiDro-gEN ENErgY imPort EXPort DistributioN aND traDE iNc.

Hidro-Gen has been established in 2007 with the intent of

generating electric energy by making hydroelectric power plant

investments.

The royalty tender for the operation of Deniş II, Evciler, Kozluören

and Türkpiyale reserves, which are located within the land with

S: 34714 (İR4168) license number within the borders of Soma

district whose license owned by Turkish Coal Enterprise, with

the condition of Establishing Thermal Plant won by Hidro-Gen

Energy Inc. subsidiary incorporated under the body of Kolin, and

related agreement has been concluded by the parties on October

3, 2012.

The scope of the project, whose name has been determined

as Soma Kolin Thermal Power Plant, is establishing a thermal

power plant for generating electric energy at the power of 450

MW according to the existing reserves of Deniş II, Evciler,

Kozluören and Türkpiyale Lignite sites. The information about

the geological situation, spread of coal in the sites, lode features

of the coal after the boring activities performed in the sites by

Turkish Coal Enterprise has been obtained. The Geology and

Reserve Report has been prepared based on this information. In

line with the data obtained from research borings, the information

about geochemical and thermal features of the coal has been

obtained and it has been determined that there were a totally

116,865,038 tons producible reserve consisting of 23,000,000

tons underground and 93,865,038 tons surface mining valued at

averagely 1,700-2,640 kcal/kg.

The period of the agreement that has been concluded with

Turkish Coal Enterprise is 30 years beginning from the activation

date of the power plant. As per the provisions of the agreement,

Hidro-Gen is obliged to begin royalty payment as of 7th year by

finalizing the investment within 6 years after the agreement date.

atlas macHiNErY iNDustrY ENErgY aND traDE iNc.

Atlas Machinery has been established in 1982 with the intent of

making investments in energy and industry sectors.

aNc ENErgY gENEratioN aND traDE iNc.

ANC Energy has been established in 2008 with the intent of

making hydroelectric power plant investments and currently

carries out project development activities.


54

Port and Shipyard Management Kolin Group of Companies sustains its growth through Çanakkale Kepez Port, Dikili Port, Teos Marina and Sefine Shipyard.

Çanakkale PortThe Port blazes a train in Turkey through its activities to derive marine fuel from ship sourced petroleum wastes.


56

ÇANAKKALE PORT MANAGEMENT INDUSTRY AND TRADE INC.

Çanakkale (Kepez) Port, incorporated in the body of the group

as the second port investment of Kolin Group of Companies

after Dikili Port, enables import and export loads outside the

hinterland and internal cabotage loads to be transported with

affordable prices and costs being region industry in the first

place thanks to its location and service diversity.

Çanakkale (Kepez) Port, located in Dardanelles (Çanakkale) Strait,

has been sustaining its activities with its service quality and

capacity that increase each passing day since 2005. Within its

ISPS (International Ship and Port Safety) Code and thanks to its

infrastructure, offers load handling services for almost every kind

of ships in intense ship and load traffic in Dardanelles (Çanakkale)

Strait. Çanakkale Kepez Port also provides contribution to

Çanakkale and country as the city gate to the world with its

feature as being the only sea border crossing of Çanakkale.

Çanakkale Port Management derives its power primarily

from the strong structure, experience and support of Kolin

Construction, which successfully carries out activities in

different sectors both in the country and abroad and ranks

among the well-established companies of Turkey, and from its

employees, who are focused on sustainable development within

the framework of teamwork and primarily seek safety and

quality and from its dynamic structure. The Company attaches

great importance to environmental sustainability in its activities.

The Port offers comprehensive service for different kinds of

ships thanks to its strong technical and service infrastructure

The port provides services to different kinds of ships from

fuel tankers and general cargo ships to Ro-Ro and passenger

ships with its versatile infrastructure, and contributes in a

major way to the development of cruiser tourism in Çanakkale

with such advantages as a passenger hall within the terminal,

established in a full customs area, 214-meter berth up to nearly

30 meters draft, duty free shop etc. In addition to its strategic

location within the Dardanelles and its technical and service

infrastructure, Truva has created a brand name in the region in

terms of tourism-related activities with its close

proximity to the Gallipoli Historical National Park, city center and

Assos; it is a preferred destination for cruise operators of the

world who are focused on cruise tourism.

Data of 2012 activities

In 2012 a total of 70 ships consisting of 46 cruise ships, 2 general

cargo ship and 22 cargo ships stopped at Çanakkale Kepez Port.

A total number of 12,600 passengers from passenger and cruise

ships and a total of 136,008.26 tons of freight were handled. In

2012, totally 5,631 vehicles were transported on the ferryboat

service between Kepez-Eceabat operated by Gestaş Maritime

Transport Tourism Inc. Furthermore, through waste collection

services that are carried out in addition to general port activities,

totally 198,614.839 m3 liquid and solid waste have been collected

from 692 ships passing in transit through the Dardanelles and from

ships stopping at Çanakkale Kepez Port.

The total turnover at the end of 2012 realized as TL 25,450,262.27

(incl. VAT) through the finalization of infrastructure and

superstructure constructions by Kolin Construction and following

ongoing superstructure investments, ship acquisitions for

developing waste collection activities, infrastructure and technology

investments for waste receiving facility, automation systems.

In consequence of the mooring regions located at the northern

entry of Dardanelles (Çanakkale) Strait also included in the authority

territory of Çanakkale Directorate of Port with the Ports Regulation

issued in 2012, the Port has added 1.432 dwt (deadweight ton)

“Kolin 4” waste reception vessel and 1.854 dwt “Kolin 2” vessel to

its fleet for improving waste reception services offered to the ships

passing through the strait. Thus, the Port offers services both in

southern and northern mooring areas of the strait.

As there is not any industrial formation of sufficient potential to feed

the port activities in the hinterland of Çanakkale Port Management,

most of the port activities consist of freighting mineral loads as

bulk cargo in addition to freighting general cargo as project freight.

In addition, since important industry organizations located in the

hinterland of the port do not have their own ports, this reduces the

competitive power to achieve desired rate in the market share in

the sector. On the other hand, Çanakkale Port Management offers

service more than half of the market in the sector with its Turkey’s

largest waste reception facility in the collection of vessel sourced

wastes which is one of the main activity fields of the port.

In parallel to the sea transportation that has transformed into

container transportation globally, also the port sector activities

show tendency to container handling. Together with container

port management that has importance in terms of environmental

protection and clean freight handling in the last period also the cruise

sector that offers service in more economic conditions despite the

improvement of quality standards accordingly increased its port

trends that constitute important destination within the market.

Participation to sectoral formations and international

exhibitions

Çanakkale Port intensely sustained its activities in 2012 for

obtaining more market share with the impact of its important

location between Izmir and Istanbul and important tourism

symbols such as Truva, Gallipoli Historical National Park and

Assos. With this intent, Çanakkale Port Management took

its place as the member of executive board of Cruise Turkish

Platform founded under the Directorate of Izmir Chamber of

Commerce and had a stand in the exhibition held in Marseille

within the year.

With the intent of developing waste reception services offered to

mainly foreign flagged vessels and improving the service quality,

the Port continuously visits abroad ship operators and attends to

the exhibitions. In 2012, from Far East to Europe many maritime

companies have been visited and the Port attended to maritime

exhibitions in Greece and France. Sharing up-to-date information

through its website with its customers, Çanakkale Port

Management also presents its advertising and services to the

ship operators and maritime agencies through nongovernmental

organizations, in which it has membership. Incorporating Turkey’s

largest waste reception facility, the Port also reaches its foreign

customers through the website of European Waste Facilities

Association named as EUROSHORE with the intent of improving

its service quality and meet customer demands in the best way.

Kolin Group of Companies offers comprehensive port-shipyard services through its companies incorporating Turkey’s largest full service port and creates a significant added value for our country.


58

Aiming to become a “full service port” with the intent of offering

many services all together to transit ships passing through the

strait due to its location within Çanakkale Strait, Çanakkale Port

accordingly founded an agency department within its structure in

2012. Çanakkale Port Management holds the Brand Registration

Certificate, Compliance with TSE 13350 Standards Certificate,

Waste Reception Facility and Waste Reception Ships Licenses

(Environment Licenses), European Waste Reception Facilities

Association (Euroshore) Membership, ISPS Code Certificate,

EPDK (Energy Market Regulatory Authority) Maritime Transport

License, POAŞ Concession License, Operation Permit Certificate

and ISO 9001, 14001 Certificates and OHSAS 18011 Certificates.

A first in Turkey: Marine Fuel from Ship Sourced Petroleum

Wastes

Performing the activities for collecting ship sourced wastes and

sorting at waste reception facility by dehydrating, Çanakkale Port

carried out significant activities in 2012 with its R&D consultant

team and its in-house accredited laboratory with the intent of

improving service quality for dispatching said petroleum wastes to

recycling or disposal. Obtaining Bunker Fuel Delivery License for

the manufacturing of marine fuel from petroleum wastes collected

from the ships in consequence of the application made to Energy

Market Regulatory Authority, the Port is proud for blazing a train in

Turkey with the said project. Necessary infrastructure activities and

technological investments in this regard still continue.

Priority targets for 2013

Renewable and clean energy resources for the energy demand in

the world that increases each passing day becomes more of an

issue. Çanakkale Region constitutes a significant potential in wind

energy utilization in terms of wind quality and wind power density

as well as its continuity. For this reason, the activities for installing

wind energy power plants continue to increase in our country as

in the world in Çanakkale Region which has a significant potential.

In this context, import operations for the installation of wind

energy power plants and freight handling services are among the

priority targets of the port and the port will realize many projects

as it did in the past.

In addition, dispatching export freights in the region to container

transferring ports around the port through internal cabotage and

improving activities for cruise tourism are also among the significant

targets of the port.

Having Turkey’s largest waste reception facility and waste collection

vessel fleet, Çanakkale Port Management will steadily sustain its

activities for developing its services and its port activities in this field

in 2013.

DİKİLİ PORT AND TOURISM MANAGEMENT TRADE INC.

Dikili Port Management became operational on November 19,

2003. The port offers services such as accommodation, loading/

unloading, shifting, limbo, terminal services, pilotage, towage,

moorings, providing ships with water, receiving waste, passenger

hall management, maintenance and repair as well as catering.

Dikili Port Management is 30 minutes away from Bergama which

has such significant historical artifacts as the antique city of

Pergamon Ancient City, Askpion Ruins, Zeus Temple, Hera Temple,

the Red Basilica, Roman Amphitheatre and museum of history.

The Port is one of the most important organizations of Northern

Aegean with its upgraded backland, depot and machine

investments, correct listed customers, employment in the district

and its structure that enables grain import and export.

The port which prides itself with its high tech technology and

service principles in compliance with quality standards provides

service to bulk, bagged and pallet loads. Customs at Dikili Port

transformed into Class A Customs after the privatization of the

port. After obtaining permits required for herbal food import and

export, today the importation and exportation of the products

such as fertilizer, sunflower, canola seed, flax seed, coal, ceramic,

floor and wheat are being performed in the port while previously

only pearlite and stone export were performed.

The Port improved its performance by 20% in 2012. Within

the year, Vegetable Oil and Asphalt Import permits have been

obtained and new market has been created.

In 2012, Dikili Port Management was granted to fifth prize due

to its tax payments related to the 2011 tax period at the award

ceremony organized in cooperation with Bergama Chamber of

Commerce and Tax Office.

In 2013, the Port aims to increase its market share by 15%

compared to 2012.

SEFİNE MARITIME SHIPYARD TOURISM INDUSTRY AND TRADE INC.

Sefine Maritime Shipyard has been established in 2005 and

began to carry out activities in the field of shipyard management

in 2008 by finalizing its investments.

It is one of the four largest shipyards in Yalova shipyards region.

The total amounts of the projects realized by the Company are

TL 165,000,000.00 from ship build and TL 47,000,000.00 from

ship repair and maintenance. The Company holds Continuous

Operation License, Waste Reception Facility, Quality Assurance

Certificates. Having a market share of 5% as of 2012, Sefine

completed the year with profit.

In 2012, the Company received qualified ship build demands in

new ship build in line with the overall tendency in the sector.

The sector began to tend towards Far East in ship repair. Sefine

Shipyard also began to purchase ship from this market.

Increasing the number of indoor shops, renewal of the

equipments, field arrangement, increasing the dock depth of the

shipyard and personnel trainings were among the investments

made in 2012.

2 units ferry building for Norway, a towboat building in Turkey,

again in Turkey an emergency response ship building and pet

ship transformation work are among the undertaken new

projects. Financial values of these projects are as follows: ferry

building TL 30,000,000.00, emergency response ship building TL

70,000,000.00, pet ship transformation TL 5,000,000.00.


60

Sefine distinguishes from the other companies in the sector with

its financial power, on time delivery, experienced staff and reliable

structure. In 2012, the Company was granted to thank you plaque

from Social Security Institution due to its contributions to social

security and employment, and thank you plaque from Yalova

University due to its contributions to education.

Saudi Arabia, Singapore and Russia are among the interest and

research fields of the Company as the new activity regions.

In 2013, Sefine Shipyard will continue its activities for

increasing its market share with planned growth and improving

shipyard organization and services, and will sustains to provide

contribution to export and the employment in the region through

the realized investments and projects.

TEOS MARINA MANAGEMENT AND TRADE INC.

The tender of Teos marina, a marina management company

which became operational in Sığacık, Seferihisar/Izmir in June

2010, has finalized on April 24, 2002 and its investment has been

launched on October 1, 2008. It has been established on 59.000

m2 of land and 77.000 m2 of sea area with an investment of

totally USD 12.7 million.

Teos Marina is 5 km from Seferihisar by highway, 45 km

from Izmir province center and 60 km from Adnan Menderes

International Airport and has an advantageous location since its

close location to the historical places such as Efes-Bergama and

especially the house of the Virgin Mary.

One of the 5 new marinas that become operational in the last

years, Teos Marina is among the 5 anchor rated marinas of the

Ministry of Culture and Tourism.

The marina has a boat capacity of 480 on sea, 30 in the channel

dock and 80 boats in the boatyard. Teos Marina provides a total

covered area of nearly 9.150 m2 containing 40 commercial units

providing concept services to its lease-holders, 50 yachting

storages and 6 technical workshops.

With the vision of peak its brand among world marinas, Teos

Marina carries out its activities in line with the following

objectives:

• Providing service with the sense of unconditional customer

satisfaction,

• Offering a wellness center for mariners with safe mooring,

expert repair and maintenance services, social activities,

organizations, shopping mall,

• Offering high quality and reliable marina services with

affordable prices,

• Keeping up with the changes, constantly following the

developments and renewing itself,

• Adopting the sense of service that is sensitive to the

environment and human,

• Supporting amateur maritime and develop this field,

• Prioritizing personal development and business peace of the

staff.

Teos Marina holds TYHA (The Yacht Harbor Association) 5 Golden

Anchor Awards and Blue Flag Awards and is the member of

Offering high quality service for the increasing number of boats with the advantages of its location and distinguishing practices, Teos Marina improves its popularity each passing day through Teos Marina Spa & Beauty launched in 2012 and Greek Island Tours launched within the year as well as organized miscellaneous events.

Seferihisar-Cittaslow Association. The marina is a remarkable

investment with its employment and tourism development

capacity provided for the region. Thanks to its feature as being a

natural sheltered port, particularly preferred by the boat owners.

In the surrounding area there are many available bays that are

suitable for visiting and accommodation.

Greek Islands Tours launched in June 2012 and foreign flagged

yachts arriving and leaving the port significantly enlivened the

marina.

With Teos Marina Spa & Beauty Center, launched in May, 2012,

Teos Marina became an attractive recreation centre. Furthermore,

it is the advantage of the region that the Teos beaches and Teos

shopping mall are visited by the people of Izmir in the weekends.

The environmentally friendly system which enables the circulation

of still water within the marina through the wind turbine has been

for the first time in Teos Marina.

With the VMarin automation system, which has been designed

with the support of Teos Marina team in 2010 with the intent of

enabling an integrated structure for the data processing between

the commercial and operational (front office, moorings and dry

dock area) departments in marina management companies, a

significant contribution has been provided for the sector and

marina employees. The system is also being used efficiently

today and contributes to the productivity.

Occupancy data for 2012

According to the statistics obtained by the year-end of 2011, the

total mooring capacity is 12,374 and land park capacity is 5,310

in Turkey. Teos Marina takes 4% share with 480 yacht mooring

capacity and 2% share with 80 yacht land park capacity. Again

based on the 2011 data the total number of yachts in Turkey is

11,727 consisting of 4,652 Turkish flagged and 7,075 foreign

flagged.

Carrying out its activities with the sense of eco-friendly operation, Teos Marina blazes a trail also with its environmentally friendly system that enables circulation of still water within the marina through the wind turbine.


62

By the year-end of 2012, 355 unit yachts were moored to Teos

Marina and the marina occupancy rate is 74%. 32 unit yachts were

moored in the channel and the occupancy rate of the channel

is 107%. 23 unit yachts were moored in land park area and the

occupancy rate of the area is 29%.

By the year-end of 2012, there were totally 410 yachts located at

the sea / channel dock and land park and this constitutes the 3.5%

of the current market share. The occupancy rate, sea and land

capacity rate has been determined as 69%. These yachts are 41.50

m2 on average. The occupancy rate for the leased areas was 73%.

Within 2012, there were 372 boats with yearly contracts, 77

with monthly contracts and 695 boats with daily contracts which

amounted to 1,144 boats. It is observed that the marina has

benefited from 10% of Turkish market.

By the year-end of 2012, the rates of the moored boats at the

marina are as follows: 56% Turkish flagged boats, 25% American

flagged boats and the remaining 19% were Italy, Austria, Sweden,

Germany, UK, Belgium, France, The Netherlands, Switzerland, and

New Zealand.

Teos Marina makes an indelible impression also with its

events and social responsibility projects

Teos Marina got famous through the events and social

responsibility projects realized in 2012 and became a marina

that was preferred by the boat owners who are sensitive to the

environment and society.

The Marina served as a model for the other companies in the

sector with the sense of operation that is sensitive

to the environment and society through the

following projects realized in 2012: sea and

seashore cleaning project named as “Each

Sailor is a Breath for the Sea”; meeting

disabled persons with the sea project

with the slogan of “Passion for the

Sea is not a Disability” and finally tree

planting project launched with the slogan

of “Let Our Boats Be a Hope For Future

Generations”.

Within the scope of cooperation agreement

concluded with Aegean Offshore Yacht Club, one

of the well-established sports clubs of Turkey, the club

center is located within the Teos Marina. Aegean Offshore Yacht

Club each month organizes sailing races for 2 days with the

participation of 30 boats on average and tour activities for 1 day

with the participation of 15-20 boats.

Teos Marina hosts important organization with the high number

of participants at least 2 times in a month throughout the year.

Target markets

Teos Marina turned towards to the mass composing of people

“living on their boards” and named as liveaboard with the

intent of enliven winter months of the marina in 2012, in which

it achieved 77% mooring occupancy rate. Since the liveaboard

boats in Turkey are generally UK - D - FR - NL flagged, Teos

Marina promoted its services in the stand of Turkish Ministry

of Tourism at Dusseldorf Boat Show and Paris Boat Show.

Based on the data, there are 1,320 UK flagged boats in Turkish

marinas and this constitutes the 11% share of the market.

Therefore, London Boat Show has been also added to the list

of exhibitions to be attended.

Due to crisis in Greece, obligation to pay boat tax with EU

membership of Croatia, tax increase for the boat moored at

the marinas in Italy, these markets also taken their place in the

target markets of Teos Marina.

2013 plans

Teos Marina has been targeting to offer high quality service

to its customers with affordable prices since the date of its

establishment. The Marina has reached international quality

standards and certified this. The Marina aims to increase its

occupancy rate over 80% in current quality standards and increase

average m2 of the boats constituting the occupancy to

50 m2 in 2013 and in the following years.

Improving the marketing activities with the

intent of enlivening the marina shopping

mall and improving its quality that is

not developing in direct proportion to

marina occupancy and transforming it

to a wellness center of Teos Marina in

compliance with the quality standards

without ruining the peaceful atmosphere of

the city are among the plans.

Smoothly carrying out ongoing social projects and

that are planned for the following days and being a model

for the other companies in the sector with these projects is another

target of Teos Marina.

Sea and seashore cleaning project of Teos Marina named as “Each Sailor is a Breath for the

Sea” served as a model for the other companies in the

sector.


64

MiningMaking an indelible impression in terms of quality and capacity both in national and international arena in Turkish iron mining, Hekimhan Inc. increased its market share in the sector by over 100% in 2012.

HekimhanHekimhan Inc. owns Turkey’s largest manganiferrous iron and second largest iron mine sites.


66

HEKİMHAN MINING INC.

Carrying out activities in the field of iron mining in the vicinity of

Deveci village, Hekimhan District in Malatya province, Hekimhan

Mining Inc. has been incorporated within the structure of Kolin

Group of Companies since 2007.

Hekimhan Mining Inc. owns Turkey’s largest manganiferrous iron

and second largest iron mine sites with Siderit reserve exceeding

50 million tons together with 44 million tons visible and potential.

Furthermore there are nearly 500 thousand ton Limonite ore. The

Company has annually 2 million ore production capacity and 4.5

million m3 stripping capacity.

Hekimhan Mining Inc. is a customer oriented company that

makes an indelible impression in terms of quality and capacity

both in national and international arena in Turkish iron mining,

provides significant foreign exchange savings for the country

economy and aims to provide employment and is open for

improvement. The Company enlivened the region where it

operates. Emigrant district now became a migration-receiving

district. A significant employment and subsidiary industry

development has been provided.

One of the important features that provided competitive edge

in the sector is manganese content of the product and very low

impurities. The calcined product that will be produced after the

last quarter of 2013 is sui generis.

Operating in the mining site through Sub-contractor Company

until 2012, Hekimhan Mining Inc. has established its work site

after the second half of 2012. The Company acquired its own

machinery and began to perform stripping works and moreover

began to the construction of calcining plant, loading ramp and

station.

In 2012, the activities had begun in 2007 realized at very high

levels on basis of investment and production as well as sales.

When compared to previous, it is seen that significant production,

sales, stripping investments have been made in this year. In

2012, its market share in the sector significantly increased. This

increase is over 100% when compared to the previous year. In

2012, the market share in the sector recorded as 6.5%. When

compared to domestic producers, this production share is at the

level of 10%.

Eco-friendly and respectful to human

Hekimhan Mining Inc. is an establishment which places a great

emphasis on environment and human. The company installed a

sewage treatment facility as well as water treatment systems

for drinking water within the mining site. In the summer season,

continuously street sprinkling has been performed.

Taking security measures also with video surveillance systems,

the Company also has on-site doctor and occupational safety

Operating Turkey’s largest manganiferrous iron and second largest iron mine sites, Kolin Group of Companies makes an indelible impression in Turkish iron mining with its quality, capacity and contribution to the economy.

specialist. Health and occupational safety as well as first aid

trainings have been provided for the personnel. An equipped

health cabin has been established and occupational safety

materials have been distributed to all personnel. Hekimhan

Mining Inc. adopted sense of modern management that is

respectful to human and environment with all employees

beginning from the senior management. The Company holds SGS

(Quality) Certificate which has international validity.

More quality product with calcining plant

Quality and annual production capacities have importance in mining

sector. Hekimhan Mining Inc. began to establish calcining (roasting-

enriching) plant for obtaining more quality Siderite ore it owns. By this

means, it will increase both its capacity and quality and strengthen its

position by offering more quality product to the market.

Ongoing construction of plants and R&D activities will be

finalized in 2013

In 2013, the calcining plant, crushing and screening plant and

Karakısık station and loading ramp, which were the first section

of the investments began in 2012, will be finalized. In the last

quarter of the year all the said plants will become operational.

It is targeted to finalize the R&D activities that continue for the

new investments. Based on the results of these R&D activities,

it is planned to establish high value added new strategic plants

that will provide advantage to Hekimhan Mining Inc. and may

prevent significant outflow of foreign currency from our country

to some extent in the following years.

Hekimhan Mining Inc. targets to make a breakthrough in

production and domestic-abroad sales in 2013 with its

experienced and competent staff as well as the power and

advantage provided by Kolin Group of Companies.

The Company will sustain its researches for new mining fields.

The Company interests on chromium and coal site researches.

Selling 3,000 ton Siderite to EU countries on annual basis,

Hekimhan Mining Inc. will continue to rise this figure and

moreover its activities and efforts to enter into China and

Middle East markets.

Hekimhan Mining Inc. targets to make a breakthrough in domestic-abroad sales, carry out activities in new mining sites and enter into new markets in 2013.


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Tourism and ServicesKolin Group of Companies is among the first choices of the customers who demand high quality service in elite venues in tourism and service sector.

Kolin HotelOne of the symbols of Çanakkale, Kolin Hotel is the favorite of the people visiting the city with its 80% market share.


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ÇANAKKALE KOLİN HOTEL

Kolin Group of Companies has taken its place among the leading

companies of Turkish Tourism and Congress sector by achieving

to become a brand thanks to its location, structure and its quality

service and positive impression created as a result of this within a

10-year period despite it had entered into tourism sector in 2003.

Kolin Hotel carries out activities in tourism sector with a portfolio

consisting of “incoming” groups who travels Anatolia, corporate

company guests, domestic market adult and student groups,

“incentive”, meeting, congress groups as well as individual

guests. The Hotel has magnificent panoramic bosphorus view on

the shores of Dardanelle Strait covering on one side Truva that is

mentioned in the films that attract the interest of the world and

on the other side Gallipoli Peninsula that has its name written in

gold letters in the Republic history of Turkey. Kolin Hotel has a

leading position in tourism activities in Çanakkale and serves as a

model for the other hotels with its practices.

Kolin Hotel has a competitive edge thanks to its strong group

structure as well as physical competency of its facility, trained

professional staff, fast operation capability, high quality service

and employment continuity. Furthermore, being the only five-star

hotel in Çanakkale and the only hotel that provides service with

its congress and meeting halls in real terms within Izmir, Bursa

and Istanbul triangle improve the competitive power of Kolin

Hotel in the region. Moreover, the hotel equipment has been

renewed in 2012.

In 2012, Çanakkale Kolin Hotel also became effective in holiday

choice of social media friendships that become increasingly

popular in lives of the youth. The “Friendformation” that we

met through social media has significantly affected the holiday

choice. Accordingly, Kolin Hotel also provided the necessary

activity on social platform. The events (feast, noel, etc.) that will

be organized at the hotel have been shared via e-mails, phone

promoting, website and social media in addition to national press.

Kolin Hotel also attracted attention with its “All about Love (Aşk’a

Dair)” and “Family (Aile)” accommodation packages.

While the market share of tourism in the city was 70%, Kolin

Hotel’s market share reached 80% in 2012 together with the

addition of new markets to the guest portfolio. Kolin Hotel

provided service for 71,879 foreign tourists, 9,899 corporate

company guests within 2012. Apart from these, meeting and

banquet services have been provided for 26,864 persons with the

number of participants varying between 60 and 1,200 persons.

The activities of Kolin Hotel have been awarded with various

organizations. The Hotel achieved to be rank among the first

three hotels in the category of “Best Meeting Hotel” of Marmara

Region within the scope of 2011 MICE AWARDS (meeting-

incentive-congress-event) organized by Tourism Media Group.

In 2012, even though a decline has been experienced in the

number of visitors visiting this region due to the economic

recession in European market, it is expected that this situation

will be rebounded. Performing activities for Middle East (Kuwait),

India and Latin America markets within 2012, Kolin Hotel expects

50% increase in the number of visitors from these regions

in 2013. It is foreseen that there will be significant demand

increases especially from Far East market in “incoming” guests

who attend cultural tours such as Troy Region, Assos and IDA.

Kolin Hotel has adopted as a principle to primarily procure

personnel from the region since the date of its establishment

and also has incorporated a training staff to provide trainings

for the personnel since the date of its establishment. The Hotel

also contributed to raising personnel with the conscious of

“Five-Star” quality by establishing collaborations with Çanakkale

Anatolian Hotel Management and Tourism Vocational High

School and Çanakkale Onsekiz Mart University Tourism and Hotel

Management departments. On the other hand, every kind of

need of the hotel is procured from the region and by this means

contribution is provided to Çanakkale economy. Kolin Hotel also

contributes to the development of both other hotels in the region

and region tradesmen through the large organizations being

organized.

Considering also the environment protection while contributing to

the tourism of Turkey, the Hotel placed Waste Battery collection

units in Lobby, Personnel Cafeteria and Technical Service

departments for preventing the hazard to the ecosystem by

the disposal of waste batteries. Furthermore, the used papers,

glass, tin and plastic wastes from the office are collected by HKP

department and kept in recycling containers and waste foods are

donated to the animal shelters of municipality.

The activities performed by Kolin Hotel in 2012 were appreciated

by the organizations and this encouraged the hotel to further

develop 2013 objectives and the services to be provided.

Accordingly, focusing on the marketing activities that will increase

the demand and performing activities to protect the brand value

are among the fundamental objectives of 2013. It is planned

to continue corporate marketing activities that are carried out

regularly in domestic market each year also in 2013 and further

focus on meeting and congress tourism. Targeting a turnover

increase of 20% in 2013, Kolin Hotel aims to ensure brand

continuity by maintaining service quality. Accordingly improving

the personnel productivity through efficient human resources

management is among the subjects that we will focus on.

Identifying with peace city Çanakkale and becoming one of the symbols of the city, Kolin Hotel is an attraction center that also provides significant contribution to the economic life of the city...


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ŞİŞMAN TOURISM CONSTRUCTION INDUSTRY AND TRADE LTD.

Washington Restaurant Management

Şişman Tourism provides services with Washington Restaurant

brand in the sector.

The Restaurant maintains its reputable position in the sector by

maintaining its taste and service quality for over a half century

at a 250-year historical mansion having a genuine architecture

in Ankara Castle. Deriving its strength from its innovative team

who enjoy their job and work with team spirit, the restaurant

management always achieved to be dynamic and creative.

Washington Restaurant sustained its innovation and development

activities to ideally meet the expectations of its guests. The

developments in the sector are followed through visual and print

media and exhibition visits. The personnel development programs

have continued and new staff has been employed. The restaurant

added new tastes and presentations to its flavors also in 2012.

Washington Restaurant visits launched venues and meets

with their tastes. Collaborating with the tourism companies,

the management tells about the unique history of our country

to the foreign guest visiting our country while offering high

quality service together with Turkish tastes. With the intent of

increasing the number of foreign guests visiting Ankara Castle,

the restaurant collaborates with tourism companies, embassies

and hotels.

In 2012, the number of restaurant visitors increased by 20%. In

parallel to this increase, an increase also has been achieved in the

figures. Through the collaborations with the tourism companies in

2012 the number of foreign guests increased by 20%.

The number of collective meal and organization also increased

since the restaurant was preferred for special meetings and

special celebrations.

Washington Restaurant will continue to grow and satisfy its

costumers with its decent ambiance, without compromising on

quality and service concept in 2013.

An Ankara classic, Washington Restaurant will sustain its growth and satisfying its customers with its service manner that keep up quality and its tastes also in 2013 at its chaste venue.

TURKOL TOURISM INDUSTRY AND TRADE INC.

Carrying out activities with the intent of operating and

establishing every kind of tourism investments that will serve

tourism investment, marketing and domestic and foreign tourism,

Turkol Tourism has been established in December 2010 under the

body of Kolin Group of Companies.

The company has a hotel construction having totally 55,000.00

m2 construction area that is still constructed in Aydınlı/Çamlıbelde

locality on the connecting E5-E6 highway in Tuzla on the Anatolian

side of Istanbul. During the construction that has started in

February, 2011 employment of 450-500 person/day on average is

provided. During the project, trade activity opportunity has been

provided for nearly 120 sub-contractor and numerous suppliers.

The hotel project includes 254 guest rooms, alacarte restaurant, 2

bars, 2 multi-purpose halls, 7 meeting halls, fitness area, outdoor

and indoor swimming pools and Spa. It is targeted to finalize the

project in August 2013. When the hotel becomes operational, the

hotel will employ 200 persons per day.

The hotel, create as “Urban Resort”, will serve weekend holiday

need of the city with its concept, to the business world with its

proximity to business areas, to the airport with its location. Also

the project aims to a first with the opportunities to be offered for

banquet, wedding feast and meetings at the Anotalian site.

Turkol Tourism targets to commence operational activities in the

region by finalizing Tuzla Hotel Project in the last quarter of 2013

and to rank among the top hotels at Anatolian site in terms of

occupancy and sales rate as of 2014.

KA INSURANCE INTERMEDIATION SERVICES LTD.

KA Insurance started its activities in 1993 as the B agency

of Anadolu Insurance which is one of the largest insurance

companies in Turkey incorporated within the scope of Atlas

Machine Co.Inc. With its successful operation since the

foundation date, the company has expanded its customer

portfolio and it was established as a separate company when

it obtained it’s A agency status in 1998. KA Insurance provides

the group companies and staff as well external companies

and persons with insurance consultancy services, the sales of

insurance products in all sectors as well as consultancy in risk

management.

KA Insurance operates with its claim, technical, sales

and marketing teams who are equipped with knowledge,

experience, ability, courage and self-confidence, and able to

keep in step with technology and life, focused on success,

having global perspective, result oriented, highly motivated,

working with team spirit.

The most important feature of KA Insurance that distinguishes

it from the other companies in the sector is the advantage of

its corporate structure and its strong and experienced staff

as well as its progress towards becoming a brand. In 2012,

the company started brand creation process with the intent

of raising brand awareness and becoming the first choice.

The Company conveyed its innovative and trainer spirit to

TRT School Lessons by collaborating with miscellaneous

foundations and organizations.

The Company increased the number of its branches to 5 by

making investment in Sivas, Yozgat and Tokat provinces within

the year.

In 2012, the Company reached TL 12,869,125 by increasing its

production in all branches by 1.5 times compared to 2011. The

Company achieved the following successes: Anadolu Insurance

-Second in Region in Central Anatolia Region, Aviva Insurance –

Fourth in Region in Bursa Region and Sompo Japan Insurance

– Second in Region in Bursa Region.

2013 plans include improving its revenue targets, achieve

profitableness, further improve the sense of service and

satisfaction, achieve determined targets within the year by

accurately and efficiently managing its own internal processes.

Having agreements with world’s leading international reinsurance

companies, operating with Anadolu Insurance, Aviva Insurance,

Sompo Japan Insurance and Axa Insurance which are among

the largest insurance companies of Turkey, and known for their

strength, reliability and timely claim payments, KA Insurance

aims to offer solutions with products specially designed for the

needs of insurance customers in addition to the classic insurance

products in the branches such as fire, accident, engineering,

liability and health by incorporating insurance agencies that will

provide alternative in 2013.


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TradeKolin Group of Companies is the leader of the sector with also its companies carry out activities in the field of trade. With its deep rooted history, Kolin is a brand that ensures trust in trade.

KolpaşKolpaş increased its profitability percentage along with the increase in market share in 2012 and realized its first export.


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KolTar aGriCulTure imporT exporT and Trade inC.

Koltar has been established in the last quarter of 2009. It is a

100% Turkish owned company that carries out activities in the

fields of fertilizer, seed and seedling.

The Company carries out its activities all across Turkey and owns

fertilizer depots in Dikili, Tekirdağ, İskenderun and Antalya as well

as a seedling greenhouse established with an investment amount

of USD 3 million in an area of 59,000 m2 in Dikili in 2012.

Beyond becoming famous both in the country and abroad with

its branding target, product diversification and participation to

important international exhibitions that has significant importance in

term of the agriculture sector, the Company achieved to become an

agriculture company of the future that desired to be invest in.

Koltar carried out activities for increasing the sales of fertilizers

with special content and moreover promoting seed types that have

sectoral importance and increasing their sales. Koltar achieved to

increase its market share by 27% compared to previous year.

Conversant with that improving type variety is an important factor

to ensure indispensability in the agriculture sector, Koltar takes

firm steps for growing in seed types, special product fertilizer

types, graft types and product kinds such as turf. Accordingly, the

company carried out promoting activities through public relations

and advertising activities that would support its image.

Koltar holds Chemical Fertilizer Manufacturer License, Seed

Researcher Establishment Certificate and seed-fertilizer registries

of the types. Operating in the fields of import and export in the

agriculture sector, the Company works together as partners with

the leading companies, which are widely accepted abroad and

whose kinds are appreciated.

The main objective of Koltar in 2013 is to become a brand in

seed and special product fertilizer types and surpassed the other

companies with its increasing sales figures.

KOLPAŞ IMPORT AND EXPORT Trade inC.

Providing professional consultancy service for procurement,

protection, efficient and correct use of machine park tires, Kolpaş

has been established in 1997. The Company provides services as

the certified dealer of Michelin and Goodyear tires.

The Company distinguishes from the other brands and companies

with its storng financial structure, efficient marketing activities,

innovative-detailer-researcher team and high quality brand

dealerships and achieves successful results.

Also in 2012, the Company contributed to the business

productivities by meeting the needs of the customers in

the fastest way by closely following and implementing all

developments in the tire sector and keeping its stock network

and product range at the optimized level. Time losses have been

also minimized through mobile service vehicle.

It was aimed to meet customer demands on time and in a

reliable and quality manner through cutting-edge technology

machines by investing into new equipments in the field of

service. Furthermore, marketing activities and financial operations

have been improved by incorporating professional collaborators.

Sales department and offices have been restored and working

standards have been upgraded to the prosperity level.

The share of tire sector has been in the sector and the

competition gradually increased. Expanding its customer portfolio

through its high quality service as it was always, Kolpaş increased

its profitability percentage together with the increase in market

share. The Company performed its first export in 2012 and the

objectives and targets in this field have been determined and

the innovations have been discussed. The Company reached the

targeted levels in the export.

The products marketed and sold by Kolpaş create VAT income

to our country due to import and export. A contribution is also

provided to the labor force of the customers with high rate

productivity by delivering the correct product to its user based on

the demand.

In 2013, Kolpaş aims to increase its sales unit and turnover,

performing current account follow ups and collections on time

as finance and accounting, expand its customer portfolio, create

new collaborators, and achieve the utmost level in every field of

the sector with its professional staff.

efes TransporT indusTry and Trade inC.

The main activity area of Efes Inc. is the transport of hazardous

wastes such as waste oil, waste solvent and bilge produced at

the Çanakkale Port Authority. In addition Efes Inc. provides waste

transport services for the hazardous waste produced by facilities

such as İÇDAŞ and AKÇANSA with its 10 2011 model Mercedes

tanker trucks and continues to expand its distribution territory.

Having also the capability of operating in all regions, the company

currently carries out activities in Istanbul, Kocaeli, Tekirdağ, Bursa,

Kütahya, Izmir, Balıkesir, Adana, Antalya and Edirne.

The Company successfully carries out its activities by complying

with the rules of logistic services, auditing the logistic service

drivers, operating with Çanakkale Port Management in coordination

and establishing continuous contact with the customer companies.

The performance of Efes Inc. progresses in direct proportion to

waste production capacity of Çanakkale Port Management waste

reception facility and marketing of the produced products. In 2012,

there was an increase in transportation services.

Efes Inc. executes an average monthly waste transport of

1,379,401 kg and transport services provided in Bursa, İzmit,

Kütahya, Balıkesir, Edirne, İzmir, Antalya, Tekirdağ and Konya.

Efes Inc. exceeded its turnover target in 2012. This turnover only

includes the amount obtained from the delivery of wastes that were

dispatched from Çanakkale Port Management. Through the vehicles

holding blanket waste transportation licenses, it will be possible to

provide transportation service to the other companies.

safe Business processes

The vehicles and drivers of Efes Inc. are equipped in accordance

with the ADR legislation of the Ministry of Environment and

Urbanization. Drivers holding an ADR, SRC2, SRC4, E, D class

license, full and complete psycho technical certificates required

by the Ministry are employed. These documents must be

maintained in the vehicles during transport. The names of the

companies to be visited and identity of the vehicle drivers are

stated to the Çanakkale Port Authority before hazardous waste

transport. The port authority informs this notification to the units

of the Waste Reception Facility Assessment Commission.

After the hazardous waste is loaded onto the vehicle, the vehicles

are sealed by the consulting companies for departure which

is followed by the document inspection carried out the Waste

Reception Facility Assessment Commission. After the documents

have been approved, a transport permit is provided. After

departure, the vehicles of Efes Inc. are monitored by the fleet

monitoring satellite system by centers in Ankara and Çanakkale

on a 24 hour basis. The vehicle drivers are able to communicate

with company representatives on demand to report problems and

apply solutions without delay.

Çanakkale Port Management utilizes eco-friendly and safe

methods for preventing damage to the environment and people

while the delivery of wastes produced by the waste facilities to

the other waste companies.

Efes Inc. holds K1-Domestic Good Transportation Certificate, TSE-

Hazardous Waste Highway Transportation Vehicle Compliance

Certificate, the license for the companies transporting hazardous

waste and license for the vehicles transporting hazardous waste.

Having the capability of performing special transportation with

its authorization certificates as a logistics company, Efes Inc.

distinguishes from the other many logistics companies with this

capability.

In 2013, Efes Inc. aims to safely transport the wastes produced

by Çanakkale Port Management to the other companies and

continue its logistics services by complying with ADR rules.

As it does every year, Kolpaş has expanded its customer portfolio also in this year compared to the previous year through its high quality service and increased its profitability percentage along with the increase in the market share.


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IndustryThe leader gypsum and construction chemicals company Arslanlı, with 13% market share in the sector İnkol Inc. and with 25% market share in the sector Sitaş are the shining stars of Kolin Group of Companies in the industry...

SİTAŞIt is the largest and highest capacity sleeper manufacturing plant of its sector.


80

ArslAnlI PlAster rAw MATerIAl InduSTry TrAde InC.

Having its head office in Elazığ and one of the leading gypsum

and construction chemicals companies of the region, Arslanlı has

been established in 2004 with fund of 100-year knowledge and

experience in construction, mining, industry and manufacturing

sectors. Today the Company provides services in Elazığ

Organized Industrial Zone at 53,500 m2 manufacturing plant with

its 110 employees. It has annually 165 thousand ton gypsum,

78 thousand ton construction chemicals and 90 thousand ton

micronized calcite manufacturing capacity. In 2012, 143,000

ton gypsum, 36,000 ton construction chemicals and 75,000 ton

micronized calcite have been manufactured.

The Company carries out its activities with the target of being

preferred in terms of product quality, pricing, branding and

distribution.

The important factors in the competitive edge of Arslanlı are as

follows:

• Have the edge over the companies, which endeavors to enter

the market with low priced one or several products, by utilizing

the advantage of having all products from the base to ceiling,

• Geographical Position,

• Corporate structure and organization,

• High quality,

• Qualified human resources, experienced technical personnel,

• Proximity to the pits owned by the plant and gypsum and

calcite raw material, quality raw material,

• Its position that can be benefit from the railway,

• High quality joint ventures in sales regions.

leadership in the region, gradually increasing nationwide

growth

The Company provides service in 35 provinces and 23 countries

through 120 dealers with nearly 70 products, 40 of them which

are Registered Trademark. In 2012, 37,000 ton construction

chemicals, 142,000 ton gypsum and 300,000 ton calcite have been

manufactured. In the region in its sector, there is no other plant that

is capable to manufacture and market such wide product range.

The Company strengthens its existence each passing day

especially in its region and nationwide with its products such

as ceramic adhesives, joint fillers, technical adhesives, water

insulation products, thermal insulation products, plasters, surface

cleaners and protectors, repair mortars etc. in its portfolio.

The Company also distinguishes from the others thanks to its

leadership for the activities aims to expand the usage of gypsum

in construction sector and being the only company that has

essential products of the sector such as gypsum, construction

chemicals, calcite, insulation systems etc.

By utilizing the advantage of being the only micronized calcite

manufacturing plant in East and Southeastern Anatolia region,

the Company supplied raw material procurement to the national

manufacturers such as KYK construction chemicals, KALEKİM

construction chemicals, ABS gypsum, and the target in this

market have been achieved.

Arslanlı recorded 29% growth in 2012 compared to the previous

year. The Company has 40% market share in gypsum sector,

90% in calcite and 5% in Arkim.

The Company ensures the penetration of its products throughout

Turkey by providing service especially in Elazığ, which includes

its customer group, and in provinces such as Malatya, Diyarbakır,

Gaziantep, Kahramanmaraş, Şanlıurfa, Adıyaman, Hatay, Erzurum,

Erzincan, Kars, Ağrı, Iğdır, Van, Bingöl, Muş, Bitlis, Batman,

Mardin, Gümüşhane, Giresun, Trabzon, Rize through 200 main

dealers and 100 sub-dealers that perform distribution, retail sales

and implementation.

Continuing its 100% domestic capital activities, Arslanlı currently

has 11 product groups and 100 product kinds. The Company

incorporates Aralçı, Arkim, Artherm and Arcalcite brands in

its structure. The Company holds TSE, ISO 9001, ISO 14001,

OHSAS 18001, COC, CE and SONCAP certificates which ensures

that all products complies with the desired standards and

provides the advantage of circulation of the goods in Europe.

Customer satisfaction and continuous development

Aiming to ensure the continuity of its customers through

respectful and amicable communication and keeping abreast

of technology, Arslanlı continuously perform improvements in

manufacturing and testing processes. The Company also offers

on time and fast delivery with the average delivery time of 24

hours to target customer group market and everywhere of target

customer market. The Company always takes sides with its

customers with its structure that develops new products based

on the needs of the customers.

Gradually increasing its brand power and profit margin each

passing day, Arslanlı endeavors to realize sustainable profitable

growth with new products and business model in each period

through its R&D and innovation activities by keeping abreast of

trends in the sector with the fact of “The One Changes Its Model

Extends Its Life”.

A reliable business partner with its solution products, Arslanlı

contributes its customers to achieve good results. The Company

plays a role in the formation of a good future by sustaining this

partnership not only on the basis of product but also with social

responsibility projects. The Company acts with “social company

model” that is regarded as the key of the growth in new

economy and with the awareness of the impacts of factors such

as added value for the society, environmental consciousness,

contribution to the employee, a sustainable country and

investment in its people, strong communication on consumption,

sales and demand. The Company was granted to various awards

with its many social responsibility projects.

Ongoing controlled growth

The following are among the 2013 targets of Arslanlı:

• To increase sales,

• To improve customer satisfaction,

• To reduces service costs,

• To achieve minimum 20% growth,

• To increase the sales of products that have high added value,

• To utilize master club more efficiently and more actively,

• To lead other companies on the sectoral basis in the region,

• o take step in direct direction when new opportunities occur, to be

open for improvement, to discover new technologies and markets.

Arslanlı will sustain to improve life quality in the projects it serves

and to offer services with eco-friendly and healthy products that

may ensure maximum quality with low cost in buildings.

Meeting the needs of Turkish construction sector with its wide

product range and cutting-edge technologies, Arslanlı takes firm

steps forward on the way of becoming a national leader in the

sectors in which it operates, and also sustains its activities to

become an international brand by breaking through based on

innovation.

Having a voice in the formation of the future also through its activities in the industry field as in the other sectors, Kolin Group of Companies maintains its controlled growth with the sense of sustainable customer satisfaction.


82

While carrying out activities in accordance with increasing its

market share by expanding the regions served with its wide

product range, Arslanlı also sustains its activities with same

priority for ensuring high customer satisfaction, adding value for

the society and protecting the environment.

SİVAS SleePer MAnuFACTurInG InduSTry And TrAde InC.

Currently holding 25% share in the sector, Sivas Sleeper

Manufacturing Industry and Trade Inc. (SİTAŞ) has been

established with the joint venture of Eser Concrete from Yıltaş

Group Companies, Osman Yıldırım and Margaritelli S.p.A. under

the leadership of Kolsan, one of the group companies of Kolin

in consequence of the tender initiated on October 21, 2010 by

General Directorate of Turkish State Railways.

Having the largest and highest capacity plant in the sector, Sivas

Sleeper Manufacturing Industry and Trade Inc. has strategic

advantages especially for its location as well as its technological

superiority in the field of sleeper manufacturing. The Company

provide buoyant and speed to the region it operates. The

Company also provides contribution to sustainable society and

economy with its manner that is respectful for the environment

and living space in its business processes.

During the year, miscellaneous projects have been assessed and

product promotion activities have been carried out by meeting

with superstructure companies.

Commencing manufacturing at the end of June 2012, the plant

manufactured 120,736 sleepers in 2012. The number of sold

sleepers is 78,400. The demands have been delivered on time

and without problems through the productive operation of expert

staff of the Company and trust in the sector has been achieved

and improved.

SİTAŞ Sleeper Inc. obtained its ISO 9001:2008 quality certificate

on December 19, 2012. Moreover, the audit performed on

January 17, 2013 based on the application made to KGS for the

concrete was finalized successfully. The Company aims to obtain

TS EN 206-1:2002/A2:2006 certificate on February 14, 2013.

To continue to exactly meet needs of both public and private

sector in this field by operating the plant with its full capacity,

serve as a model for the sector with the created employment and

quality policies are among the 2013 targets of the company.

İnKOl COnSTruCTIOn enerGy InduSTry TrAde InC.

The İnkol Inc. plant manufacturing B70 type pre-stressed and pre-

tensile sleeper, which is preferred in Turkish railways and designed

to have proper features for using in both conventional and high

speed train lines, today is one of the at cutting-edge plants of Turkey.

İnkol Inc. comes to the forefront with its innovative approach and

being the close follower of the innovative practices as well as

directing its activities by considering the conditions of the future.

The Company has strategic advantages for its location in addition

to its experience and technological superiority in terms of sleeper

manufacturing. The Company respects environment and living

spaces in its business processes. The Company also contributes

to economy and society with its employment average of nearly

35 persons during the year.

The projects realized in 2012 mostly progressed for improving the

customer diversity. Also turning towards the non-public projects,

İnkol carried out product promotion by assessing miscellaneous

projects and meeting with superstructure companies.

In 2012, 167,821 unit sleepers have been manufactured.

Together with the stock remained from 2011, totally 202,276 unit

sleepers have been sold. The company has 13% market share in

the sector.

İnkol Inc. holds ISO 9001 Quality Certificate, ISO 14001 and

OHSAS 18001 Certificates, TS EN 206-1 Concrete G Conformity

Certificate, TS EN 206-1 Concrete KGS Conformity Certificate and

Domestic Goods Certificate. TS EN 17025 Experiment Laboratory

Validity Certificate for construction materials experiment

laboratory will be obtained in a very short time.

To sustain to meet needs of both public and private sector in this

field on time and without problems by operating the plant with

its full capacity, to lead the sector with employment and quality

policies are among the 2013 targets of the company.


84

Quality-Trust-StabilityKolin Group of Companies built its corporate approach on the basis of quality, trust and stability.

Human ResourcesAs of 2012, Kolin Construction employs totally 3,791 persons, 740 of which is foreign national.


86

CORPORATE APPROACH

Human, customer and development oriented business

strategies, ethical conduct standards, responsibilities towards

social stakeholders as well as economic and social sustainability

constitutes the framework of corporate approach of Kolin Group

of Companies, which prioritizes quality, trust and stability in all its

activities. Adopting corporate values by all Group Companies and

regarding as the conduct model are the basis of this approach.

Utmost importance is attached that the management structures

provide trust to all parties they engage with. The management

approach has been built to realize transparency, equity,

responsibility and accountability principles. Kolin Group of

Companies continues to take firm steps towards institutionalization

by adopting the conducts representing this approach and

implementing these in the Group.

QUALITY APPROACH AND POLICY

The quality approach of Kolin Group of Companies covers

offering quality products and services to its customers as well

as providing a safe and modern working environment to its

employees, providing benefits to the society and minimizing the

negative impacts of its activities on the environment.

The Group aims to enable its employees to love their company,

to ensure development by utilizing their creativity and to keep

their ambition always at top levels. The Group’s management

staff composes of people, who adopted the mission and vision,

comprehended modern business relations, believed in the power

of sharing and being a team, who are working willingly, voluntarily

and assimilatingly to achieve the targets and who are young,

dynamic, free and open minded. The Group regularly provides

the products that meet the demands of the customers and the

requirements of the legal legislation in force.

The Group improves the customer satisfaction by efficiently

implementing the established Quality Management System by

guaranteeing that it produces products always at the same quality

and meeting the conditions demanded by the customers.

The Group performs each job by utilizing optimized and cutting-

edge technologies and operates with the target of being

successful at all times.

Kolin Construction is one of a few companies that have triple

integrated quality management system in Turkey and it is the

first company having this feature in its sector. Accordingly, the

Company holds ISO 9001:2008 Quality Management System, ISO

14001:2004 Environmental Management System and OHSAS

18001:2007 Occupational Health and Safety Management System

certificates obtained from TÜV Rheinland company.

ENVIRONMENTAL POLICY

In environmental policy, Kolin Group of Companies adopts an

approach that protects and improves the live quality of employees

and other all social stakeholders.

With the intent of minimizing the negative impacts on the

environment in all its activities, the Group act in line with the

following principles:

• To take every kind of precautions for minimizing the negative

impacts by determining the impacts of the activities on the

environment,

• To utilize energy and natural resources in the most efficient way

and to take necessary precautions to avoid wastage,

• To keep waste generated as a result of work under control; to

take necessary precautions to prevent the pollution of air, water

and soil and to continue to develop these precautions,

• To comply with the provisions of legal legislation in force related

to the environment as well as the conditions of the organizations

that it is a member of,

• When a hazardous impact in terms of environment is occurred,

to prevent any damage for the lives, properties and premises of

the employees and other parties, to continuously monitor the

hazard by controlling at the early stage and to make necessary

arrangements,

• To carry out training and awareness activities with the intent of

developing environmental consciousness of the employees.

OCCUPATIONAL HEALTH AND SAFETY POLICY

The constant priority of Kolin Group of Companies is the

occupational health and safety. Minimizing the potential losses

and creating a safe and healthy working environment are

among the most important targets of the Group. Accordingly,

Occupational Health and Safety (OHS) Policy includes following:

• Making necessary announcements and carrying out awareness

raising activities with the intent of raising awareness of all

personnel working under the authority of the company about their

OHS responsibilities,

• Continuously develop OHS management and its performance,

• Complying with OHS legislation in force related to the OHS

issues and as well as the conditions of the organizations that it is

a member of,

• Ensuring that all OHS related issues are appropriate and

accessible by the relevant parties,

• Protecting all employees and others who may be affected by

the activities from work related injuries and diseases,

• To prevent any damage for the lives, properties and premises

of the employees and other parties, to continuously monitor the

hazard by controlling at the early stage and to make necessary

arrangements and to ensure every kind of protection during the

application process.

HUMAN RESOURCES

The human resources policy of Kolin Group of Companies is to

ensure creation and spread of a participatory, sharing, impartial

and transparent culture which values differences and creativity.

Knowing that social and economical development can only be

provided at a peaceful workplace, the Group takes the lead to

become a model company about the smoothness of employee/

employer relation. Physical working environments are constituted

in compatible with the occupational health and safety laws and

the said rules are implemented accordingly.

By the end of 2012, Kolin Construction employs totally 3,791

people, 740 of which are foreign nationals. The number of

staff varies depending on the status of the sites and the

session. White collar staff constitutes 22% and blue collar staff

constitutes 78% of the company employment.

The education levels of the staff working at Ankara General

Directorate are as follows; 2% have master degree, 45% have

license degree, 18% are college graduates, 25% are high-school

graduates and 6% are secondary-school graduates. The education

levels of employees working at all construction sites are as follows:

2% have master degree, 12% have license degree, 14% are high-

school graduates and 72% are secondary-school graduates.

Kolin Group of Companies provides a huge employment in

various sectors in which it operates, being the construction sector

in the first place. Kolin Construction constitutes the 55% of Kolin

Group of Companies’ total employment and the remaining 45%

work in the subsidiary companies of the Group.

The activity fields of subsidiary companies and the percentage

distribution by employee:

CONSTRUCTION SECTOR: 19%Geomed Geotechnical Consultancy Investigation Audit and Trade Inc.

Armin Electricity Construction Industry and Trade Inc.

Kolsan Construction Automotive Industry and Trade Inc.

Murtezaoğlu Construction Industry and Trade Inc.

ENERGY SECTOR: 3%Akköy Energy Inc.

Esgaz Distribution Trade Inc.

Naturgaz Natural Gas Import Export Industry and Trade Inc.

İzmir Natural Gas Distribution Inc.

Kolen Inc.

Truva Energy

TOURISM-SERVICE SECTOR: 13%Gazbil Communication Technologies Industry and Trade Ltd.

Ka Insurance Brokerage Services Ltd.

Akkol Catering Industry and Trade Inc.

Park Fora Inc.

Köşebaşı Ankara

Washington Restaurant

Çanakkale Kolin Hotel


88

PORT AND SHIPYARD SECTOR: 4%

Çanakkale Port Management Industry and Trade Inc.

Dikili Port and Tourism Management Inc.

Teos Marina Management and Trade Inc.

Sefine Maritime Inc.

INDUSTRY SECTOR: 2%

Arslanlı Gypsum and Raw Materials Trade Industry Inc.

Sivas Sleeper Manufacturing Industry and Trade Inc.

İnkol Construction Energy Industry and Trade Inc.

TRADE SECTOR: 2%

Efes Inc.

Koltar Agriculture Inc.

Kolpaş Import Export and Trade Inc.

MINING-CEMENT SECTOR: 2%

Hekimhan Mining Import Export Industry and Trade Inc.

Priority of the Kolin Group of Companies in recruitment of

employees is to appoint the right person to the right position at

the right moment. As a big firm in the international arena, the

Group aims to appoint the staff with sufficient education and

experience to the related positions. In recruitment phase, portal

of kariyer.net and various human resources consultancy firms are

resorted. The candidates are expected to adapt to the corporate

culture of the company within the shortest possible time.

The Human Resources Department operates with the target

of keeping abreast the recent human resources practices by

attending to the seminars, congress and trainings in this field and

implementing latest practices in the Group by closely following

the developments.

A stronger Group through comprehensive employee trainings

and activities

Kolin Group of Companies attaches special attention to

implementation of modern and strategic Human Resources

and completion of personal and professional development

of the company employees. Annual training plan is prepared

by the human resources department based on the training

requirements of the staff. It is deliberated with the department

heads and staff and trainings are determined and applied to

support professional and personal development of the staff and

improve their performances and business related knowledge.

The training subjects vary in line with the demands and needs

of the employees. Quality management system training, internal

auditor training, career planning training, occupational health

and safety training, vocational trainings are among the trainings

being provided.

The performance and outputs of the trainings are examined at

each year end and it is assessed whether or not the targets

are achieved. At the beginning of the each year, a new target

is determined to exceed the number and period of trainings

provided in the previous year.

It is aimed to improve the loyalty of the employees with the

principle of equal work opportunity and fair work distribution.

Surveys are prepared to measure the satisfaction of the

employees and the aspects in need of improvement are

prioritized and it is reminded that each employee is a part of the

corporation.

In order to increase the motivation of the employees and

ensure their socialization, various activities are organized in and

outside the company. As sportive activities, Ankara Construction

Football League is held under the leadership of Kolin

Construction. Furthermore, various tournaments and touristic

trips are organized for the staff.

2013 will be a year in which the rapid growth of Kolin Group of

Companies will sustain. The new employees of the Group will

also be ensured to adopt the “family” idea and satisfaction of

all employees will be prioritized and human resources activities

will continue to strengthen commitment of the staff to the

corporation. The Group will also begin to work with secretcv.

com portal to be able to access a wider candidate pool with

the intent of finding the candidate who is best suitable for the

position and company qualifications in a shorter time.

CORPORATE SOCIAL RESPONSIBILITY

The Kolin Group of companies displays a successful performance

in all business fields being focused on and takes firm steps

forward in line with its target of stable growth. While Kolin

continues its activities to achieve the determined targets it also

strives to develop the values it has generated for the community.

The social responsibility awareness of Kolin is one of the

keystones of its corporate culture. The Group acts in the

framework of this social responsibility awareness in all business

fields and geographical areas in which it operates. Within this

framework the following has constituted the fundamental values

of the corporate social responsibility approach of Kolin Group of

Companies since its establishment:

• To take protective measures for ensuring that its activities

have a minimum environmental impact and for protecting the

environment and ecologic balance,

• To minimize the consumption of natural resources,

• To minimize any negative impacts on the social environment,

• To prevent damage against historical and cultural artifacts and

structures as well local cultures,

• To work for the development and embedment of environmental

and social awareness,

• To provide all forms of material and spiritual support to

strengthen the cultural life and infrastructure of education.

Contribution to the education means contribution to a safe

future

Kolin Group of Companies believes that the most efficient indication

of social responsibility is providing support and contributing to

education. Accordingly, the Group has been constructing education

institutions since its establishment and has been providing support

to ensure that these institutions provide quality education. Kolin has

materialized this principle by undertaking the construction works

of an elementary school in Samsun, an Anatolian High School and

Sorority and an educational complex consisting of a Vocational

School of Health and Sorority in Elazığ province. The Group also

finalized the constructions of Giresun University Doğankent Veysi

Akın Koloğlu Vocational College and Kürtün District Nezihe Koloğlu

Student Dormitory. The groundbreaking ceremonies of Çanakkale

Onsekiz Mart University Religious Studies Faculty and Şuhut

Education and Culture Center have been realized.

SAMSUN ALAÇAM KOLİN ELEMENTARY SCHOOL

Kolin Construction Inc. has undertaken the construction of an

18-classroom elementary school in Samsun province Alaçam

district to support the 8 year uninterrupted education process.

The school construction work was finalized in 10 months

and turned over to the Ministry of National Education and

commissioned for learning and education in the academic year of

1999-2000. Today the Samsun Alaçam Kolin Elementary School

provides 650 students with learning and education opportunities.

ELAZIĞ MEHMET KOLOĞLU ANATOLIAN HIGHSCHOOL AND NEZİHE KOLOĞLU SORORITY

The Mehmet Koloğlu Anatolian High School and Nezihe Koloğlu

Sorority Education Complex in Elazığ province realized within the

scope of the Education Support Campaign in Turkey is one of the

most comprehensive projects undertaken by the private sector

in support of education. The complex was completed by Kolin

Construction Inc. with an investment expenditure of

3 million USD dollars after which it was turned over to the

Ministry of National Education to be commissioned for learning

and education.

Mehmet Koloğlu Anatolian High School and Nezihe Koloğlu

Sorority Education Complex consists of 3 blocks which enables

600 students to participate in learning and education, 2 blocks

which function as a sorority for 125 female students as well as a

dining hall to total 5 blocks over an area of 70.000 m2.

The education complex provides modern learning-education

opportunities in the form of a high school with 24 classrooms for 25

students each in addition to sports facilities such as an open sports

area, basketball court, volleyball court, tennis court, running track,

physics-chemistry-biology laboratories, hobby halls, music, sketching

and computer workshops, library and a multipurpose hall.

METİN KOLOĞLU VOCATIONAL SCHOOL OF HEALTH

Kolin group of companies undertook the execution of Metin

Koloğlu Anadolu Vocational School of Health and Sorority

Complex in Elazığı province within the scope of its social

responsibility projects to provide students with modern

education opportunities.


90

The design phase of the Metin Koloğlu Vocational School of

Health was incepted at the end of 2009. The school consists of

6 blocks erected on an area of 8.426 m2 and was finalized and

transferred to the Ministry of National Education in 2011. The

Education complex became operational in 2011-2012 academic

year. The complex consists of 2 blocks of school buildings for

the educating of 540 students, and blocks with dormitories

housing 141 students in each block, an administration building,

kitchen and dining hall. The complex consists of 18 classrooms

for 30 persons each in addition to 3 special classrooms, 5

laboratories, 4 technical rooms, 1 multipurpose room, open and

closed sports areas, basketball-volleyball courts, locket rooms

for male and female students, infirmary, rooms for the doctor

and nurse as well as rooms for disabled students.

T.R. GİRESUN UNIVERSITY DOĞANKENT VEYSİ AKIN KOLOĞLU VOCATIONAL COLLEGE

In order to provide support for projects with a social and cultural

aim, the Board of Directors of Akköy Energy Inc. decided to transfer

the “Republic of Turkey Giresun University Doğankent Veysi Akın

Koloğlu Vocational High School” in Giresun province Doğankent

district to the Republic of Turkey Giresun University equipped

with buildings, landscaping works, social facilities, lodgings and

equipped free of all fees, costs and similar financial responsibilities,

in possession of the material and legal competencies specified in

relevant legislation. A joint protocol was signed on March 10, 2010

by Giresun University Rector’s Office, Doğankent Governorship and

Doğankent Municipality for this purpose, the construction works

were started on April 21, 2011 and the construction has been

finalized on September 30, 2012.

The building has been designed as a basement and 5 floors on a

housing area of 862 m2 while the total construction is 5.226 m2.

The basement has been arranged to include 2 unit dining hall and

buttery. Other 5 floors were designed as classrooms on the right

side and administrative office on the left side and include 2 meeting

rooms, 5 seminar rooms, 5 computer classrooms, 12 classrooms

and 29 administrative offices.

ÇANAKKALE ONSEKİZ MART UNIVERSITY RELIGIOUS STUDIES FACULTY

The construction of Çanakkale Onsekiz Mart University

Religious Studies Faculty is sustained with the joint venture of

Kolin Construction Company and İÇDAŞ. The Groundbreaking

Ceremony was held on December 22, 2012. As per the

concluded protocol, it is planned to finalize the Faculty within 18

months.

The campus, which is located on a land of 32,765 m2 in

Şekerpınar capacity 115 block 21 layout in Barbaros neighborhood

in Çanakkale province, includes 7 unit blocks. The Campus area

is surrounded by Bursa-Izmir state highway on the south and

zoning road on the remaining sides and constructed as to cover

education blocks in a single layout. The buildings are constructed

as reinforced concrete carcass and by prioritizing the safety and

comfort according to the provisions of regulation on buildings

constructed in disaster areas. The campus is in the entry line to

Çanakkale and is located as can be easily seen and visited by

the people who comes to the city or pass through the road. The

faculty will be the largest religious studies faculty of Turkey.

The constructed 7 blocks include administrative offices, meeting

halls, classrooms, library, sports hall, resting and activity hall,

administration and student dining halls, shelter, language

laboratory, atrium, conference hall with 1,500-seat capacity,

seminar rooms and lounge exhibition area.

A BLOCK: TOTAL DEANSHIP AREA : 5461 m2

B-C-D BLOCK: TOTAL EDUCATION AND CLASSROOM AREA : 6820 m2

E BLOCK: TOTAL STUDENT SOCIAL BUILDING AREA : 2395 m2

F BLOCK: TOTAL PREP SCHOOL AND LIBRARY AREA : 6057 m2

H BLOCK: TOTAL CONFERENCE HALL AREA : 3929 m2

ŞUHUT EDUCATION AND CULTURE CENTER

Şuhut Education and Culture Center that will be constructed on

a land of 3,313 m2 in Şuhut District of Afyonkarahisar province

includes basement, ground floor, 3 normal floors and attic as well as

indoor area of 6,838 m2. The building will be used for the education

and as the dormitory and has a student capacity of 120 male and 60

female students. Sections for male and female are separated.

The Center also includes library and internet halls, socializing and

chat rooms open for men and women of Şuhut. There are dining

halls that both female and male students can benefit together.

There are separate prayer rooms, social activity halls, laundry and

ironing rooms for the students.

As the education units; there are 4 unit 24-persons classrooms

and 16-unit internet hall for male students and 3 unit 24-persons

classroom and 16-unit internet hall for female students and

manager rooms.

In the dormitory part, there are 5-persons rooms and also studying

rooms with 5 desks. The culture center also has a garden that the

students can benefit.

NEZİHE KOLOĞLU STUDENT DORMITORY IN KÜRTÜN DISTRICT, GÜMÜŞHANE PROVINCE

The Board of Directors of Akköy Energy Inc. provides support to

many social and cultural projects in Kürtün District in which Akköy

I and Akköy II HEPPs are located. One of these is a 204-person

“NEZİHE KOLOĞLU STUDENT DORMITORY”. By having a meeting

with Governorship it has been decided to construct a dormitory in

Kürtün, in which there is dispersed settlement due to topography.

It has been decided to transfer the building to T.R. Gümüşhane

Governorship after constructed together with its landscape

and equipment, as free of every kind of charges, expenditures

and similar financial obligations, as having all financial and legal

competencies projected by the related legislation. For this purpose,

a Protocol has been concluded with Gümüşhane Governorship on

November 17, 2011 and the construction has begun on January

25, 2012 and finalized on September 25, 2012. The dormitory will

become operational in the 2nd half of 2012-2013 Academic Year.

The building has been designed as a basement and 4 floors and

its housing space is 492 m2 and its total construction area is 2,380

m2. The building includes one unit multipurpose hall, 2 unit office, a

dining hall, 2 studying rooms and 51 unit 4-persons rooms.

KOLİN TURKISH CLASSICAL MUSIC CHOIR

Kolin Group of Companies decided to prioritize Turkish Music as

the theme in its 2013 organizations. The Group launched social

responsibility project to popularize, develop and keep alive Turkish

Classical Music and Turkish Folk Music, which are our cultural

heritage.

Aiming to attract the youth by organizing an amateur choir, Kolin

primarily has organized “Kolin Turkish Classical Music Choir”

under the management of Mr. Hasan EYLEN, one of Coryphaeus

of TRT Ankara Radio in line with this target and this choir began

its activities as of October 2012. The Group also contacted with

some universities and it has been stated that the company will

provide scholarships for the talented students who may participate

into the choir. The Project were attracted the high attention of the

universities and it has been stated that all necessary support will

be provided. In consequence of the support by the universities, the

students who are receiving Turkish Music (TCM or TFM) education

or the students having competent voice and ear who set their heart

on this matter were included in the choir.

The Group pays strict attention that the choir shall be a qualified

community composing of qualified voices and in which the friendship

and companionship are prioritized and which will convey Turkish

Classical Music and Turkish Folk Music to the future. Within the

scope of this project, it is planned to organize Turkish Folk Music

Choir within the forthcoming period. It is aimed to present joyful

concerts to the audience with both choirs. Kolin Group of Companies

will sustain its activities in this field with the intent of endearing

Turkish Music to the youth, contribute to the creation of lasting works

that convey this culture to the next generation and provide new

young voices to Turkish Classical Music and Turkish Folk Music.


92

KOLİN İNŞAAT

TURİZM SANAYİ

VE TİCARET A.Ş. AND

ITS SUBSIDLARIES

CONSOLIDATED

FINANCIAL STATEMENTS

TOGETHER WITH INDEPENDENT

AUDITOR’S REPORT AS OF

31 DECEMBER 2012, 2011 AND 2010

To the Shareholders and the Board of Directors of

Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. and Its Subsidiaries

Ankara

1. We have audited the accompanying consolidated financial statements of Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. and its subsidiar-ies listed under note 1 (together referred to as “the Group”) which comprise the consolidated balance sheets as at 31.12.2012, 2011 and 2010, and the consolidated statements of income, changes in equity and cash flow for the years then ended, and a summary of significant accounting policies and other notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. and its subsidiaries as of 31 December 2012, 2011 and 2010 and its consolidated financial performance and consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards.

EREN Bağımsız Denetim ve Yeminli Mali Müşavirlik A.Ş.

Member Firm of GRANT THORNTON International

Nazım Hikmet, YMM, FCCA

Partner

Istanbul, 19 April 2013

KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

INDEPENDENT AUDITOR’S REPORT AS OF 31.12.2012, 2011 AND 2010


94

ASSETS 31.12.2012 31.12.2011 31.12.2010

Note USD TL USD TL USD TL

CURRENT

Cash and Cash Equivalents 5 140,367,013 250,218,237 160,052,656 302,323,462 142,230,441 219,888,262

Marketable Securities 5 - - - - - - - - - - - -

Trade Receivables 6 215,430,187 384,025,852 150,411,875 284,112,991 60,219,160 93,098,821

Due from Related Parties 7 - - - - - - - - - - - -

Due from Joint Ventures 8 - - - - - - - - - - - -

Inventories 9 50,764,736 90,493,218 44,419,465 83,903,927 17,318,706 26,774,719

Other Current Assets 10 110,476,077 196,934,654 85,705,160 161,888,476 75,381,049 116,539,102

Total Current Assets 517,038,013 921,671,961 440,589,156 832,228,856 295,149,356 456,300,904

Costs of Uncompleted Projects 7 48,255,840 86,020,861 - - - - 17,917,100 27,699,837

NON - CURRENT

Trade Receivables 6 392,257 699,238 488,391 922,521 936,947 1,448,520

Investments and Joint Ventures 11 13,544,083 24,143,682 7,763,017 14,663,562 29,427,790 45,495,364

Property, Plant and Equipment 12 881,645,086 1,571,620,531 724,612,109 1,368,719,813 631,923,539 976,953,791

Goodwill 13 46,208,894 82,371,975 43,540,875 82,244,358 53,198,162 82,244,358

Intangible Assets 13 - - - - - - - - - - - -

Other Non-Current Assets 10 48,872,204 87,119,591 45,629,976 86,190,462 25,427,578 39,311,036

Deferred Tax Asset 16 3,343,336 5,959,830 2,787,064 5,264,485 2,168,748 3,352,884

Total Non-Current Assets 994,005,860 1,771,914,847 824,821,432 1,558,005,201 743,082,764 1,148,805,953

TOTAL ASSETS 1,559,299,713 2,779,607,669 1,265,410,588 2,390,234,057 1,056,149,220 1,632,806,694

KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF 31.12.2012, 2011 AND 2010 (All amounts in Turkish Lira “TL”) (Amounts are translated into of U.S. Dollars at the relative year end exchange rate for convenience purposes)

The accompanying notes are an integral part of these consolidated financial statements.

ASSETS 31.12.2012 31.12.2011 31.12.2010


CURRENT

Cash and Cash Equivalents 5 140,367,013 250,218,237 160,052,656 302,323,462 142,230,441 219,888,262

Marketable Securities 5 - - - - - - - - - - - -

Trade Receivables 6 215,430,187 384,025,852 150,411,875 284,112,991 60,219,160 93,098,821

Due from Related Parties 7 - - - - - - - - - - - -

Due from Joint Ventures 8 - - - - - - - - - - - -

Inventories 9 50,764,736 90,493,218 44,419,465 83,903,927 17,318,706 26,774,719

Other Current Assets 10 110,476,077 196,934,654 85,705,160 161,888,476 75,381,049 116,539,102

Total Current Assets 517,038,013 921,671,961 440,589,156 832,228,856 295,149,356 456,300,904

Costs of Uncompleted Projects 7 48,255,840 86,020,861 - - - - 17,917,100 27,699,837

NON - CURRENT

Trade Receivables 6 392,257 699,238 488,391 922,521 936,947 1,448,520

Investments and Joint Ventures 11 13,544,083 24,143,682 7,763,017 14,663,562 29,427,790 45,495,364

Property, Plant and Equipment 12 881,645,086 1,571,620,531 724,612,109 1,368,719,813 631,923,539 976,953,791

Goodwill 13 46,208,894 82,371,975 43,540,875 82,244,358 53,198,162 82,244,358

Intangible Assets 13 - - - - - - - - - - - -

Other Non-Current Assets 10 48,872,204 87,119,591 45,629,976 86,190,462 25,427,578 39,311,036

Deferred Tax Asset 16 3,343,336 5,959,830 2,787,064 5,264,485 2,168,748 3,352,884

Total Non-Current Assets 994,005,860 1,771,914,847 824,821,432 1,558,005,201 743,082,764 1,148,805,953

TOTAL ASSETS 1,559,299,713 2,779,607,669 1,265,410,588 2,390,234,057 1,056,149,220 1,632,806,694




96

LIABILITIES 31.12.2012 31.12.2011 31.12.2010


CURRENT

Financial Liabilities 18 191,032,806 340,535,080 116,367,568 219,806,700 50,063,819 77,398,664

Financial Lease Liabilities 15 - - - - - - - - - - - -

Trade Payables 14 180,363,278 321,515,580 174,920,320 330,406,993 134,382,182 207,754,853

Due to Related Parties 7 - - - - - - - - - - - -

Due to Joint Ventures 8 - - - - - - - - - - - -

Taxation on Income 16 11,005,100 19,617,691 12,405,682 23,433,092 27,309,248 42,220,098

Advances Received 18 - - - - - - - - - - - -

Other Payables and Accrued Expenses 15 56,171,270 100,130,906 66,227,963 125,098,000 28,462,633 44,003,231

Total Short Term Liabilities 438,572,454 781,799,257 369,921,533 698,744,785 240,217,882 371,376,846

Deferred Revenue on Uncompleted Projects 7 23,149,693 41,266,642 - - - - 15,046,774 23,262,312

NON - CURRENT


Deposits and Guarantees Received 19 77,238,737 137,685,772 51,650,050 97,561,779 39,922,561 61,720,280


Trade Payables 14 - - - - - - - - - - - -

Reserve for Employee Termination Benefits 17 4,160,441 7,416,404 3,399,479 6,421,276 3,624,826 5,603,981

Advances Received 20 28,192,816 50,256,513 7,409,426 13,995,664 19,495,153 30,139,506

Other Long Term Liabilities 213,823 381,161 234,680 443,287 343,143 530,499

Deferred Tax Liability 16 21,140,068 37,684,286 19,631,189 37,081,352 31,664,349 48,953,084

Total Long Term Liabilities 666,286,705 1,187,722,681 548,390,098 1,035,854,054 418,061,213 646,322,636

SHAREHOLDERS’ EQUITY

Share Capital 22 23,954,233 42,700,815 22,606,181 42,700,815 27,620,191 42,700,815

Cumulative Translation Differences - - - - - - - - - - - -

General Reserves 23 333,815,700 595,059,866 286,466,123 541,105,859 288,677,594 446,295,561

Net Profit for the Year 51,050,649 91,002,888 36,255,317 68,482,668 61,681,861 95,360,156

Equity Attributable to Owners of the Parent 408,820,582 728,763,569 345,327,621 652,289,342 377,979,646 584,356,532

Minority Interest 24 22,470,279 40,055,520 1,771,336 3,345,876 4,843,705 7,488,368

Total Shareholders’ Equity 431,290,861 768,819,089 347,098,957 655,635,218 382,823,351 591,844,900

Commitments and Contingencies 21 - - - - - - - - - - - -

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,559,299,713 2,779,607,669 1,265,410,588 2,390,234,057 1,056,149,220 1,632,806,694



LIABILITIES 31.12.2012 31.12.2011 31.12.2010


CURRENT



Trade Payables 14 180,363,278 321,515,580 174,920,320 330,406,993 134,382,182 207,754,853

Due to Related Parties 7 - - - - - - - - - - - -

Due to Joint Ventures 8 - - - - - - - - - - - -

Taxation on Income 16 11,005,100 19,617,691 12,405,682 23,433,092 27,309,248 42,220,098

Advances Received 18 - - - - - - - - - - - -

Other Payables and Accrued Expenses 15 56,171,270 100,130,906 66,227,963 125,098,000 28,462,633 44,003,231

Total Short Term Liabilities 438,572,454 781,799,257 369,921,533 698,744,785 240,217,882 371,376,846

Deferred Revenue on Uncompleted Projects 7 23,149,693 41,266,642 - - - - 15,046,774 23,262,312

NON - CURRENT


Deposits and Guarantees Received 19 77,238,737 137,685,772 51,650,050 97,561,779 39,922,561 61,720,280


Trade Payables 14 - - - - - - - - - - - -

Reserve for Employee Termination Benefits 17 4,160,441 7,416,404 3,399,479 6,421,276 3,624,826 5,603,981

Advances Received 20 28,192,816 50,256,513 7,409,426 13,995,664 19,495,153 30,139,506

Other Long Term Liabilities 213,823 381,161 234,680 443,287 343,143 530,499

Deferred Tax Liability 16 21,140,068 37,684,286 19,631,189 37,081,352 31,664,349 48,953,084

Total Long Term Liabilities 666,286,705 1,187,722,681 548,390,098 1,035,854,054 418,061,213 646,322,636

SHAREHOLDERS’ EQUITY

Share Capital 22 23,954,233 42,700,815 22,606,181 42,700,815 27,620,191 42,700,815

Cumulative Translation Differences - - - - - - - - - - - -

General Reserves 23 333,815,700 595,059,866 286,466,123 541,105,859 288,677,594 446,295,561

Net Profit for the Year 51,050,649 91,002,888 36,255,317 68,482,668 61,681,861 95,360,156

Equity Attributable to Owners of the Parent 408,820,582 728,763,569 345,327,621 652,289,342 377,979,646 584,356,532

Minority Interest 24 22,470,279 40,055,520 1,771,336 3,345,876 4,843,705 7,488,368

Total Shareholders’ Equity 431,290,861 768,819,089 347,098,957 655,635,218 382,823,351 591,844,900

Commitments and Contingencies 21 - - - - - - - - - - - -

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,559,299,713 2,779,607,669 1,265,410,588 2,390,234,057 1,056,149,220 1,632,806,694




98

KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31.12.2012, 2011 AND 2010 (All amounts in Turkish Lira “TL”) (Amounts are translated into of U.S. Dollars at the relative year end exchange rate for convenience purposes)

01.01-31.12.2012 01.01-31.12.2011 01.01-31.12.2010


Sales 25 1,383,933,708 2,467,000,228 1,010,004,579 1,907,797,649 768,241,573 1,187,701,472

Cost of Sales (1,269,024,836) (2,262,163,673) (903,199,485) (1,706,053,507) (642,389,321) (993,133,891)

Gross Profit 114,908,872 204,836,555 106,805,094 201,744,142 125,852,252 194,567,581

Marketing Expenses (11,246,513) (20,048,034) (9,874,590) (18,652,113) (6,665,334) (10,304,607)

General Administrative Expenses (30,796,405) (54,897,672) (20,543,365) (38,804,362) (18,305,316) (28,300,019)

Basic Operating Profit 72,865,954 129,890,849 76,387,139 144,287,667 100,881,602 155,962,955

İştirak kar /zararlarından paylar - - - - - - - - - - - -

Other Income / (Expenses), net (9,139,823) (16,292,648) 1,261,280 2,382,431 (142,679) (220,582)

Financial Income / (Expense), net 9,906,476 17,659,285 (52,156,261) (98,517,962) (9,390,109) (14,517,108)

Profit Before Tax For The Year 73,632,607 131,257,486 25,492,158 48,152,136 91,348,814 141,225,265

Tax 16 (11,005,100) (19,617,691) (12,405,683) (23,433,094) (27,309,248) (42,220,098)

Deferred Tax Income / (Charge) 16 51,841 92,411 7,297,016 13,783,333 (5,098,581) (7,882,406)

Profit For The Year From Continuing Operations 62,679,348 111,732,206 20,383,491 38,502,375 58,940,985 91,122,761

Dividend Paid - - - - - - - - - - - -

Minority Interest 25 (11,628,699) (20,729,318) 15,871,826 29,980,293 2,740,876 4,237,395

Monetary Gain / (Loss) - - - - - - - - - - - -

NET PROFIT FOR THE YEAR 51,050,649 91,002,888 36,255,317 68,482,668 61,681,861 95,360,156

Earnings before interest, tax, depreciation and amortisation (EBITDA) 3 155,865,548 277,845,925 128,154,331 242,070,715 143,945,938 222,540,420


KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31.12.2012, 2011 AND 2010 (All amounts in Turkish Lira “TL”) (Amounts are translated into of U.S. Dollars at the relative year end exchange rate for convenience purposes)

01.01-31.12.2012 01.01-31.12.2011 01.01-31.12.2010


Sales 25 1,383,933,708 2,467,000,228 1,010,004,579 1,907,797,649 768,241,573 1,187,701,472

Cost of Sales (1,269,024,836) (2,262,163,673) (903,199,485) (1,706,053,507) (642,389,321) (993,133,891)

Gross Profit 114,908,872 204,836,555 106,805,094 201,744,142 125,852,252 194,567,581

Marketing Expenses (11,246,513) (20,048,034) (9,874,590) (18,652,113) (6,665,334) (10,304,607)

General Administrative Expenses (30,796,405) (54,897,672) (20,543,365) (38,804,362) (18,305,316) (28,300,019)

Basic Operating Profit 72,865,954 129,890,849 76,387,139 144,287,667 100,881,602 155,962,955

İştirak kar /zararlarından paylar - - - - - - - - - - - -

Other Income / (Expenses), net (9,139,823) (16,292,648) 1,261,280 2,382,431 (142,679) (220,582)

Financial Income / (Expense), net 9,906,476 17,659,285 (52,156,261) (98,517,962) (9,390,109) (14,517,108)

Profit Before Tax For The Year 73,632,607 131,257,486 25,492,158 48,152,136 91,348,814 141,225,265

Tax 16 (11,005,100) (19,617,691) (12,405,683) (23,433,094) (27,309,248) (42,220,098)

Deferred Tax Income / (Charge) 16 51,841 92,411 7,297,016 13,783,333 (5,098,581) (7,882,406)

Profit For The Year From Continuing Operations 62,679,348 111,732,206 20,383,491 38,502,375 58,940,985 91,122,761

Dividend Paid - - - - - - - - - - - -

Minority Interest 25 (11,628,699) (20,729,318) 15,871,826 29,980,293 2,740,876 4,237,395

Monetary Gain / (Loss) - - - - - - - - - - - -

NET PROFIT FOR THE YEAR 51,050,649 91,002,888 36,255,317 68,482,668 61,681,861 95,360,156

Earnings before interest, tax, depreciation and amortisation (EBITDA) 3 155,865,548 277,845,925 128,154,331 242,070,715 143,945,938 222,540,420



100

KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEARS ENDED 31.12.2012, 2011 AND 2010 (All amounts in Turkish Lira “TL”) (Amounts are translated into of U.S. Dollars at the relative year end exchange rate for convenience purposes)

Share Capital General Reserves Net Profit

for the Year Total Equity

Balance, 31.12.2009 42,700,815 358,253,557 89,001,657 489,956,029

Transfer to general reserves - - 89,001,657 (89,001,657) - -

Prior years expense correction - - 232,898 - - 232,898

Defence Industry Support Fund and Tax Rebate - - (931,512) - - (931,512)

General reserves of companies consolidated in current period - - (289,936) - - (289,936)

Effective investment rate change - - 28,897 - - 28,897

Net profit for the year - - - - 95,360,156 95,360,156

Balance, 31.12.2010 42,700,815 446,295,561 95,360,156 584,356,532


Prior years expense correction - - 295,500 - - 295,500

Effect of law 6111 (note 2) - - (1,050,579) - - (1,050,579)

Defence Industry Support fund and tax rebate - - - - - -

General reserves of companies consolidated in current period (note 3.2) - - - - - -

Equity method - - - - - -

Effective investment rate change - - 205,221 - - 205,221


Balance, 31.12.2011 42,700,815 541,105,859 68,482,668 652,289,342


Prior years expense correction - - (14,760,422) - - (14,760,422)

Dividend paid for the year - - - - - - - -

General reserves of companies consolidated in current period (note 3.2) - - (7,992) - - (7,992)

Effective investment rate change - -

Foreign currency translation difference in overseas work sites - - 239,753 - - 239,753


Balance, 31.12.2012 42,700,815 595,059,866 91,002,888 728,763,569


KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS FOR THE YEARS ENDED 31.12.2012, 2011 AND 2010 (All amounts in Turkish Lira “TL”) (Amounts are translated into of U.S. Dollars at the relative year end exchange rate for convenience purposes)

01.01- 31.12.2012 01.01- 31.12.2011 01.01- 31.12.2010

CASH FLOWS FROM OPERATING ACTIVITIESNet profit for the year 91,002,888 68,482,668 95,360,156Adjustment to reconcile net profit to net cash:Depreciation and amortization expenses 147,955,076 97,783,048 66,577,465Provision for employment termination benefits 995,128 817,295 2,096,202Change in allowance for doubtful receivablesDeferred tax asset / (liability), (net) (92,411) (13,783,333) 7,882,406Unrealised exchange losses on borrowingsForeign currency translation difference in overseas work sitesChange in other miscellaneous income accrualsNegative goodwill recognized as incomeInterest incomeInterest expenseImpairment of goodwill(Income) / loss from investments accounted for under equity methodUnearned finance expense on payablesUnearned finance income on receivablesProfit/ loss on sale of fixed assetsFair value accrual on derivative instrumentsAccrued taxation

Operating cash flows provided before changes in working capital 239,860,681 153,299,678 171,916,229

Changes in operating assets and liabilities:Trade receivables (99,689,578) (190,488,171) 46,921,924Long-term trade receivablesDue from related partiesInventories (6,589,291) (57,129,208) (15,830,289)Other current assets (35,046,178) (45,349,374) (48,067,846)Other long-term assets (929,129) (46,879,426) (13,366,739)Trade payables 31,232,580 158,493,639 125,421,351Due to related partiesAdvances received 36,260,849 (16,143,842) (10,090,121)Other payables (24,967,094) 81,094,769 12,182,869Other long term liabilities (62,126) (87,212) 530,499Costs of uncompleted construction contracts/projects (86,020,861) 27,699,837 (27,699,837)Deferred revenue in excess of costs on uncompleted construction contracts /projects 41,266,642 (23,262,312) 23,262,312Tax paid (3,815,401) (18,787,006) 31,996,779

Net Cash Flows Generated From Operating Activities 91,501,094 22,461,372 297,177,131

CASH FLOWS FROM FINANCING ACTIVITIESFinancial liabilities 194,676,229 523,383,446 164,672,586Goodwill (127,617) - - (21,964,916)Financial lease liabilitiesIncrease / (decrease) in minority interest 36,709,644 (4,142,492) 3,127,056General reserves of companies consolidated in current period (7,992) - - (289,936)Dividend paid for the year - - - - - -Effective investment rate change - - 205,221 28,897Defence Industry Support Fund and Tax Rebate - - - - (931,512)Prior years expense correction (14,760,422) 295,500 232,898Foreign currency translation difference in overseas work sites 239,753 - - - -Effect of law 6111 - - (1,050,579) - -

Net Cash Flows Generated From Financing Activities 216,729,595 518,691,096 144,875,073

Foreign currency translation difference in overseas work sitesPurchases / (sales) of investments and joint ventures (9,480,120) 30,831,802 3,374,138Marketable SecuritiesAcquisitions of subsidiaryAcquisitions/ proceeds from sales of property, plant and equipment, (net) (350,855,794) (489,549,070) (325,791,584)Acquisitions/ proceeds from sales of intangible assets, (net)Revaluation of tangible fixed assetsChange in consolidation reservesInterest receivedChanges in other assets

Net Cash Flows Used in Investment Activities (360,335,914) (458,717,268) (322,417,446)

Net Increase/(Decrease) in Cash and Cash Equivalents (52,105,225) 82,435,200 119,634,758

Cash and Cash Equivalents at the Beginning of the Year 302,323,462 219,888,262 100,253,504

Cash and Cash Equivalents at the End of the Year 250,218,237 302,323,462 219,888,262


KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2012, 2011 AND 2010(Currency – Turkish Lira (TL) unless otherwise expressed)


102

1. Organization and Nature of Activities

Nature of the business and the percentages of participation in the Group of consolidated subsidiaries in the accompanying financial

statements are as follows:

Name of the CompanyPercentage of participation

ConstructionKolin İnşaat Turizm Sanayi ve Ticaret A.Ş.Prebeton Prefabrik Eleman ve Hazır Beton San. ve Tic. A.Ş. 20.00İnkol İnşaat Enerji Sanayi ve Ticaret A.Ş. 69.00EnergyAkköy Enerji A.Ş. 96.98Naturgaz Doğalgaz İth. İhr. San. ve Tic. A.Ş. 91.00Hidrogen Enerji İthalat İhracat Dağıtım ve Ticaret A.Ş. 93.00Kolen Elektrik Toptan Satış İthalat ve İhracat A.Ş. 95.50Işıksu Enerji Üretim ve Ticaret A.Ş. 94.60ANC Enerji Üretim ve Ticaret A.Ş. 96.00Atlas Makine Sanayi Enerji ve Ticaret A.Ş. 95.00Albe Enerji Elek. Elek. Dan. Müşavirlik Petrol Madencilik Tarım Hayvancılık San. ve Tic. A.Ş. 96.00Natural Gas DistributionEsgaz Eskişehir Şehiriçi Doğalgaz Dağıtım Ticaret ve Taahhüt A.Ş. 81.00İzmirgaz Şehiriçi Doğalgaz Dağıtım Ticaret ve Taahhüt A.Ş. 49.97Port AdministrationDikili Liman ve Turizm İşletmeleri Ticaret A.Ş. 71.99Çanakkale Liman İşletmesi Sanayi ve Ticaret A.Ş. 90.00Teos Marina İşletme ve Ticaret A.Ş. 20.00Etki Liman İşletmeleri Doğalgaz İthalat ve Ticaret A.Ş. 79.20MiningHekimhan Madencilik İthalat İhracat Sanayi ve Ticaret A.Ş. 60.00Plaster, Iron and Steel ProductionArslanlı Alçı ve Hammaddeleri Ticaret ve Sanayi A.Ş. 87.52Hekimhan Demir Çelik Mad. İmalat San. ve Tic. A.Ş. 45.00Dockyard & ShipbuildingSefine Denizcilik Tersanecilik Turizm Sanayi ve Ticaret A.Ş. 49.70Chemical Fertilizer and Seed ImportKoltar Tarım İthalat İhracat ve Ticaret A.Ş. 62.00ServicesŞişman Turizm İnşaat Sanayi ve Ticaret Ltd. Şti. 75.00Özege Reklam Büro Hizmetleri ve Gıda Tic.A.Ş. 60.00Çatı Genel Hizmetler Tic.A.Ş. 60.00Filokur Araç Kiralama Hizmetleri ve Ticaret A.Ş. 100.00


Name of the CompanyPercentage of

participation %

TourismTurkol Turizm Sanayi ve Ticaret A.Ş. 37.00Infrastructure investment, income from transportation of petroleum and its derivatives Truva Enerji İnşaat Sanayi ve Ticaret A.Ş. 32.33Efes Grup Nakliyat San. ve Tic. A.Ş. 96.00

Entities in which the Group, directly or indirectly, has 50% and above 50% shareholding or interest of voting rights or otherwise has

power to exercise control over operations, have been fully consolidated. Control is achieved where the Group has the power to govern

the financial and operating policies of an investee enterprise so as to obtain benefits from its activities. The Group has always exercised

effective control over the management of each of these companies. These entities are consolidated in the financial statements in ac-

cordance with the treatment proposed by International Accounting Standards 27 (Consolidated Financial Statements and Accounting for

Investments in Subsidiaries).

(*) Uluğ and Çamlı were established to purchase government shares of Uludağ Elektrik Dağıtım A.Ş. (“UEDAŞ”) and Çamlıbel Elektrik

Dağıtım A.Ş. (“ÇEDAŞ”). The privatization procedures of UEDAŞ and ÇEDAŞ’s tender period ended on 18 February 2010 with USD 940

million and USD 258,5 million respectively. Sale of shares agreement was signed on 31 August 2010 with the Republic of Turkey Prime

Ministry Privatization Administration. As a result, UEDAŞ and ÇEDAŞ became subsidiaries fully owned by Uluğ and Çamlı respectively.

Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. holds 33.27% and 33.33% of the shares of UEDAŞ and ÇEDAŞ, respectively. They are classi-

fied as equity investments in the accompanying consolidated financial statements (note 11).

Uluğ Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş.

The Company is an “equity investment” of Kolin İnşaat which was established in 2010 to engage in the distribution of electricity and to

provide services regarding defects, repair and maintenance, cutting, opening, meter reading activities and other support services relat-

ing to wholesale operations in Bursa, Balıkesir, Çanakkale and Yalova. Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş., Cengiz Holding A.Ş. and

Limak Holding A.Ş. hold equal shares.

Çamlı Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş.

The Company is an “equity investment” which was established in 2010 to engage in the distribution of electricity and to provide services

regarding defects, repair and maintenance, cutting, opening, meter reading activities and other support services relating to wholesale

operations in Sivas, Tokat and Yozgat. Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş., Cengiz Holding A.Ş. and Limak Holding A.Ş. hold equal

shares.

Eno Enerji Ortaklığı Toptan Elektrik Satışı A.Ş.

The Company is an “equity investment” which was established in 2011 for the purpose of lump sale and outright sale to consumers.

Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş., Cengiz Holding A.Ş. and Limak Holding A.Ş. hold equal shares. Kolin İnşaat owns 30.83% of

Eno Enerji and is classified as equity investments in the accompanying consolidated financial statements (note 11).



104

Yeniçeri Özel Güvenlik Hizmetleri A.Ş.

The Company is an “equity investment” which was established in 2012 to install and operate central alarm systems and provide armed

and unarmed physical and technological security services. Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş., Cengiz Holding A.Ş. and Limak Hold-

ing A.Ş. hold equal shares. Kolin İnşaat owns 33.33% of Yeniçeri Özel Güvenlik Hizmetleri A.Ş. and is classified as equity investments in

the accompanying consolidated financial statements (note 11).

Zealand Maxima B.V.

The Company is an “equity investment” which was established in Holland to operate freight transport by ship. Kolin İnşaat owns 49%

of Zealand Maxima B.V. and is classified as equity investments in the accompanying consolidated financial statements (note 11).

Zealand Amalia B.V.


of Zealand Amalia B.V. and is classified as equity investments in the accompanying consolidated financial statements (note 11).

For the purpose of the consolidated financial statements, Yüksel İnşaat A.Ş., its consolidated domestic and foreign subsidiaries, joint

ventures and foreign branches are referred to as “the Group”.


The operations of the consolidated entities in the accompanying financial statements are summarized below:

Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş.

Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. (“Kolin İnşaat” or “the Company”) was established in 1977 in Elazığ. The Company is engaged

in a variety of engineering and contracting works involving communication projects, comprising highways, motorways, bridges, viaduct,

railways, tunnels and ports, transporting projects, dams, modern irrigation systems, water purification systems, water distribution sys-

tems, industrial complexes, repair and maintenance workshops, pipelines production, mass housing developments, hotels, hospitals,

office buildings, military installations. The Company also operates a five star hotel (named “Kolin Hotel”) in Çanakkale since 2003.

Projects undertaken by the Kolin İnşaat between 2006 and 2012 are summarized below:

1- Çandarlı Harbour Construction (Limak Kolin Joint Venture)2- Kemerhisar Gölcük Niğde Highway Construction (Kolin - Güneş – Ceylan)3- Kahramanmaraş Göksun 6th Region Hudut Road Construction (Kolin - Limak Joint Venture)4- Gaziantep Şanlıurfa Highway Construction (Limak - Kolin Joint Venture)5- Gökova Marmaris Road Construction (Kolin - Simge - Mat Joint Venture)6- Tandoğan-Keçiören (M4) Metro Outstanding Construction Works (Gülermak - Kolin Joint Venture)7- TCDD Yerköy Yozgat Sivas Railway Infrastructure Construction (Cengiz-Limak-Mapa-Kolin J.V.)8- D-100 İst.Ankara State Road Superstructure and Bridge Construction (Kolin - Kalyon J.V.)9- Ankara İstanbul High Speed Train Line Gebze-Köseköy Junction Const. (Salini - Kolin - GCF J.V.)10- Hotamış Storage Construction (Yöntaş Kolin Joint Venture)11- Antalya Fishing Port Construction (Arsel - Kolin Joint Venture)12- American Embassy Compound (Epik - Kolin Joint Venture)13- Eskişehir Ankara Conventional Route Repair Work (Murtezaoğlu - Kolin Joint Venture)14- Yusufeli Dam and HEPP Construction (LCK - Yusufeli Joint Venture)15- Gökçedağ Nusrat Stations Re-railing Works (GCF - Kolin Joint Venture)16 -Hajiqabul-Horadiz Highway Rehabilitation & İsmayillli District Wastewater Treatment Plant (Azerbaijan)17- Hoima-Kaiso-Tonya Highway Const. Work to level up to Bituminous Coated St. (Uganda Branch)18- Kemerihisar Pozantı Highway Construction 19- Ankara Water Supply Project Phase II Gerede System Construction20- Akköy Enerji A.Ş. Hydroelectric Power Plant Construction Phase II21- Erzurum-Pasinler-Horasan Highway Construction22- Yıldızeli Sivas Zara and Sivas Ulaş Highway Construction23- Tuzla Hotel Construction24- Sivas Kangal Seperation - Gemerek 6th Region Highway Construction25- Artvin Ortaköy Viaduct Construction26- Alanya Yaprak HEPP Construction27- İzmir - Menemen - Manisa Road Construction28- Körfez Intersection East Izmit Intersection Superstructure Improvement Construction29- Gebze Intersection Construction30- İzmir Freeway Harmandalı and Koyundere Crossroad Construction31- İzmir Region Natural Gas Distribution and Infrastructure Construction32- Çanakkale Umurbey Plain Irrigation Construction33- Sivas Gemerek Şarkışla Construction Phase II34- Hekimhan Ironsteel Factory Construction35- Bozüyük Bilecik Mekece Phase II36- Kavak Merzifon Road Construction Phase I37- Ankara Sincan Station Railway Extension Construction (Kolin-GCF-Savronik Kons.)38- Kürtün 200 Student Capacity Secondary School Dorm Construction39- İzmir Çeşme Junction Balıklıova Mordoğan Karaburun Road Construction40- Bodrum Drinking Water Plants and Transmission Line Construction41- Gaziantep Şanlıurfa Beltway42- Giresun Doğankent Veysi Akın Koloğlu Vocational High School Construction43- Eskişehir Region Natural Gas Distribution and Infrastructure Construction44- Kayseri Northern Variant Railway Completion Works

The details of ongoing projects are presented in note 7.



106

Projects undertaken and completed by the Company between 2006 and 2012 are summarized below:

(*) Upper Harran Plain Main Channel Construction (Aykotek Joint Venture) (*) Ankara Pozantı Eminlik Çiftehan Junction Road Construction (Limak - Metiş - Kolin J.V.)(*) Espiye Çarşıbaşı - Giresun Pass Included - Road Construction (Limak - Kolin Joint Venture )(*) Afyon Beltway Construction(*) Harran Plain Irrigation Construction Phase VI(*) Libya Bengazi Project(*) Adana İncirlik Air Base Phantom Family Housing Construction(*) Sığacık Harbour Construction(*) Avcılar Mahmutbey Tem Highway Superstructure Construction(*) Artvin Erzurum State Road Superstructure Works Phase II(*) Bozüyük Construction(*) Sefine Shipyard Dry Dock Construction(*) Kayseri Northern Pass Variant Construction(*) Çamlıbel Electricity Construction(*) Gemerek Kayseri Construction(*) Sivas Branch Graider WorksCompany’s registered office address is Horasan Street No: 14 Gaziosmanpaşa - Ankara.

Nature of business and respective business segments of foreign branches included in the accompanying consolidated financial state-

ments are as follows:

Company name Nature of business Country of registration

1- Kolin İnşaat Azerbaijan Branch Construction Azerbaijan2- Kolin İnşaat Uganda Branch Construction Uganda

Kolin İnşaat Azerbaijan Branch: In 2011, 3 separate contracts were signed with Azerbaijan Ministry of Transportation and Republic of

Azerbaijan Improvement and Water Management amounting to USD 77,781,710, USD 109,209,210 and USD 64,502,413. The projects

are planned to be completed in 2013.

Kolin İnşaat Uganda Branch: In 2011, a contract was signed with Uganda National Roads Authority amounting to USD 139,540,000.

The project is comprised of Hoima Kaiso Tonya Highway Construction Works to level up to (Bituminous) Coated Standard. The project

is planned to be completed in 2014.


Besides, the joint ventures in Turkey have been included in the accompanying financial statements using the proportional consolidation

method as of 31.12.2012 and 31.12.2011. In the prior years, acquired income and expenses from the joint venture operations were in-

cluded in the income statement in sales and cost of sales account in their gross amounts. Nature of business and shareholding of these

joint ventures are as follows:

Company name Nature of business Share rate %

1- Limak Kolin Joint Venture (Gaziantep) Construction 502- Limak Kolin Joint Venture (Kahramanmaraş) Construction 993- Limak Kolin Joint Venture (Çandarlı) Construction 504- Limak Kolin Joint Venture (Espiye) Construction 49.755- Kolin Güneş Ceylan Joint Venture Construction 506- Kolin Simge Mat Joint Venture Construction 997- Gülermak Kolin Joint Venture Construction 49.988- Cengiz Limak Mapa Kolin Joint Venture Construction 19.909- Kolin Kalyon Joint Venture Construction 5110- Salini Kolin GCF Joint Venture Construction 3111- Yöntaş Kolin Joint Venture Construction 5012- Arsel Kolin Joint Venture Construction 5113- Epik Kolin Joint Venture Construction 5014- Murtezaoğlu Kolin Joint Venture Construction 5015- LCK Yusufeli Joint Venture Construction 33.3316- GCF Kolin Joint Venture Construction 45

Limak-Kolin (Gaziantep) Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was es-

tablished for the period between 01.07.1998 - 30.06.2012 for the Gaziantep Şanlıurfa Highway Construction. The project value amounts

to USD 216,680,732 and was completed in 2012.

Limak-Kolin (Kahramanmaraş-Göksun) Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 99% of the shares in this joint ven-

ture and was established for the period between 18.10.2011 - 27.04.2015 for the Kahramanmaraş Göksun 6th Region Construction. The

project value amounts to USD 150,673,900.

Limak-Kolin (Çandarlı) Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was

established for the period between 02.04.2011 - 02.05.2014 for the Çandarlı Harbour Construction. The project value amounts to USD

133,994,410.

Limak-Kolin (Espiye Çarşıbaşı) Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 49.75% of the shares in this joint venture

and was established for the period between 22.12.1998 - 28.07.2012 for the Giresun Trabzon Region Espiye Çarşıbaşı (Giresun Pass

Included) Construction of Km:129+500-137+033, Km:0+300-1+900, Km:8+800-30+800 ve Km: 35+590-65+393 sections. The project

value amounts to USD 173,072,601.

Kolin-Ceylan-Güneş Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was estab-

lished for the period between 06.10.1998 – 25.04.2013 for the Kemerhisar Gölcük Niğde Highway and Kemerihisar Pozantı Highway

Construction. The project value amounts to USD 248,000,000.



108

Kolin-Simge-Mat Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 99% of the shares in this joint venture and was established

for the period between 08.10.2010 - 04.06.2012 for the Gökova Marmaris Road Work. The project value amounts to USD 30,010,339.

The project was completed in 2012.

Gülermak-Kolin Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 49.98% of the shares in this joint venture and was estab-

lished for the period between 03.02.2012 - 25.06.2013 for the Tandoğan-Keçiören (M4) Metro Outstanding Construction Works. The

project value amounts to USD 162,219,566.

Cengiz-Limak-Mapa-Kolin (China Major) Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 19.90% of the shares in this joint

venture and was established for the period between 05.11.2008 - 13.03.2013 for the Ankara Sivas Railway Project. The project value

amounts to USD 589,537,796.

Kolin-Kalyon Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 51% of the shares in this joint venture and was established for

the period between 01.12.2011 - 25.09.2013 for the D-100 İstanbul Ankara State Road (West Gebze Junction) land work, art work and

Superstructure and Bridge Construction. The project value amounts to USD 39,946,279.

Salini-Kolin-GCF Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 31% of the shares in this joint venture and was established

for the period between 14.10.2011 - 01.01.2014 for the Ankara – İstanbul High Speed Train Line Gebze Köseköy Region Construction

and Rehabilitation Works. The project value amounts to USD 193,707,480.

Yöntaş-Kolin Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was established

for the period between 03.11.2011 - 03.11.2015 for the Hotamış Storage Construction. The project value amounts to USD 48,020,350.

Kolin-Arsel Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 51% of the shares in this joint venture and was established for

the period between 25.08.2011 - 07.08.2013 for the Antalya Fishing Port Construction. The project value amounts to USD 11,215,657.

Epik-Kolin Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was established in

2009 and began operating in 2010 for the construction of the American Embassy in Serbia Belgrade. The project value amounts to USD

122,682,228.

Kolin-Murtezaoğlu Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was estab-

lished in 2012 for the purpose of railway restoration, infrastructure and superstructure works and other construction works.

Murtezaoğlu-Kolin Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 50% of the shares in this joint venture and was es-

tablished for the period between 16.12.1998 - 11.05.2005 for the Mahmutbey TEM Highway Construction Works. The project value

amounts to USD 35,077,723.

LCK Yusufeli Joint Venture: Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 33,33% of the shares in this joint venture and was established

for the period between 22.11.2012 - 22.11.2018 for the Yusufeli Dam and HEPP Construction. The project value amounts to USD

287,589,306.

GCF-Kolin Joint Venture: : Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 45% of the shares in this joint venture and was established for

the period between 07.01.2013 - 05.10.2013 for the Railroad Line Road Restoration Works of about 110 km between Gökçedağ Nusrat

Stations. The project value is USD 24,076,466.


Nature of the business of the companies included in the consolidation are as follows:

Prebeton Prefabrik Eleman ve Hazır Beton Sanayi ve Ticaret A.Ş.: The Company was established in 2000 to engage in the manufac-

turing of prefabricated equipments and ready-mixed concrete.

İnkol İnşaat Enerji Sanayi ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat which was established in 2010 to invest in a traverse factory. İnkol İnşaat was included

in consolidation for the first time in 2010. The company started its operations in May 2011.

Akköy Enerji A.Ş.

The Company is a “subsidiary” of Kolin İnşaat and was established for energy production in 1999. Akköy Enerji has two investments,

Akköy I and Akköy II hydroelectric power plants. As of 18.09.2008, the company has completed Akköy I HEPP project and began the

production of energy. Akköy II HEPP project Unit I has began its operations in 08.06.2012 and the construction of Akköy II HEPP is still

continuing.

Naturgaz Doğalgaz İthalat İhracat Sanayi ve Ticaret A.Ş.

The Company was established in 2006 in Ankara. The Company has obtained wholesales license from EMRA. Kolin İnşaat Turizm San.

ve Tic. A.Ş. owns 91% of the shares.

Hidrogen Enerji İthalat İhracat Dağıtım ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat, which was established in Ankara in 2007. Kolin İnşaat Turizm San. ve Tic. A.Ş. owns 93%

of the shares.

Kolen Elektrik Toptan Satış İthalat ve İhracat A.Ş.

The Company is a “subsidiary” of Kolin İnşaat, which was established in Ankara in 2007. Kolin İnşaat Turizm San. ve Tic. A.Ş. owns

95.50% of the shares.

Işıksu Enerji Üretim ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat, which was established in Ankara in 2007. Kolin İnşaat Turizm San. ve Tic. A.Ş. owns


ANC Enerji Üretim ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat, which was established in 2008 in Ankara. The company was established to invest in the

energy sector.

Atlas Makine Sanayi Enerji ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat which was established in 1981 and started to operate in energy investments in 14.09.2009.

Atlas Makina was included in consolidation for the first time in 2009.

Albe Enerji Elektrik Elektronik Danışmanlık Müşavirlik Petrol Madencilik Tarım Hayvancılık Sanayi ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat which was established as a limited company in 2004, has become an incorporated com-

pany in 2010. The company is planning to produce electricity with Berat HEPP and Yaprak HEPP projects in Antalya, Alara Stream. Albe

Enerji was included in consolidation for the first time in 2010. The company took over the shares of K-L Enerji Yatırımları Sanayi ve Ticaret

A.Ş. in 2011.



110

Esgaz Eskişehir Şehiriçi Doğalgaz Dağıtım Ticaret ve Taahhüt A.Ş.

The Company is a subsidiary of Kolin İnşaat and has been bought from the Republic of Turkey Privatization Administration in 2004 for

43 million USD, in the form of build - operate - transfer model, for 30 years. After buying the company, which distributes natural gas

within the province of Eskişehir, an investment of, USD 40,200,000 has been realized and the service network has been expanded. The

company was established in 1994.

İzmirgaz Şehiriçi Doğalgaz Dağıtım Ticaret ve Taahhüt A.Ş.

The Company is an “equity participation” of Kolin İnşaat, which has been bought from the Republic of Turkey Privatization Administration

in 2005 in the form of build - operate - transfer model, for 30 years. The firm will be distributing natural gas to İzmir and its districts and

is planning an investment of USD 250 million within the first ten years.

Dikili Liman ve Turizm İşletmeleri Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat and has been bought from the Turkish Privatization Administration in 2003 for 4.5 million

USD in cash, in the form of build - operate - transfer model, for 30 years. Dikili Liman provides sheltering, loading, unloading, shifting,

limbo, guidance, towing, waste evacuation and sales of fuel services for cruise ships and cargo vessels.

Çanakkale Liman İşletmesi Sanayi ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat and has been bought from the Turkish Privatization Administration in 2004 in the form of

build-operate-transfer model, for 29 years. As of 2006, 10 million USD investments has been completed for the company, and Çanakkale

Liman provides sheltering, loading, unloading, shifting, limbo, guidance, towing, waste evacuation and sales of fuel services for cruise

ships and cargo vessels. The company was established in 2004 for port operations.

Teos Marina İşletme ve Ticaret A.Ş.

The company is an “equity participation” of Kolin İnşaat, which was established in Ankara for operating the privatized İzmir Seferihisar

Sığacık Marine Port which was purchased in 2006 for 25 years. The company started its operations in June 2010 after completing its

investments.

Etki Liman İşletmeleri Doğalgaz İthalat ve Ticaret A.Ş.

The Company is a “subsidiary” of Kolin İnşaat which was established to engage in the construction of the LNG Import and Regasifica-

tion Terminal which will be located in Aliağa, İzmir where an application for a license has been requested from EMRA. Kolin İnşaat owns


Hekimhan Madencilik İthalat İhracat Sanayi ve Ticaret A.Ş.

The company is a “subsidiary” of Kolin İnşaat, which has been bought from the Republic of Turkey Privatization Administration in 2007

for USD 21.5 million, for 33 years of operating and mining rights. The facility is the second largest mineral (iron) deposit in Turkey and has

on average a production capacity of 1,000,000 tons annually.

Arslanlı Alçı ve Hammaddeleri Ticaret ve Sanayi A.Ş.

The company is a “subsidiary” of Kolin İnşaat which was purchased in 2008. The company is engaged in the production of plaster and

construction chemicals.

Hekimhan Demir Çelik Madencilik İmalat Sanayi ve Ticaret A.Ş.

The Company was established in 2011 to produce and procure raw iron and steel alloys, steel pipes and extension pieces. Hekimhan

Demir Çelik Madencilik İmalat Sanayi ve Ticaret A.Ş. was included in consolidation for the first time in 2011.


Sefine Denizcilik Tersanecilik Turizm Sanayi ve Ticaret A.Ş.

The Company is an “equity participation” of Kolin İnşaat which was established in 2008 for constructing, repairing and maintaining ships.

Kolin İnşaat owns 49.70% of shares of the company. Sefine Denizcilik was included in consolidation for the first time in 2009.

Koltar Tarım İthalat İhracat ve Ticaret A.Ş.

The company is a “subsidiary” of Kolin İnşaat which was established in 2009 to import chemical fertilizers and vegetable seeds. Koltar

Tarım was included in consolidation for the first time in 2009.

Şişman Turizm İnşaat Sanayi ve Ticaret Limited Şirketi

The company is a “subsidiary” of Kolin İnşaat and operates as “Washington Restaurant” in the restaurant management sector.

Özege Reklam Büro Hizm. Tem. ve Gıda Tic. A.Ş.: The Company was established in 2012 to engage in cleaning and disinfecting homes,

offices and similar buildings along with purchasing cleaning products and equipment. The Company was included in consolidation for

the first time in 2012.

Çatı Genel Hizm. Ticaret A.Ş.: The Company was established in 2012 to engage in development of all types of energy productions

facilities and sales of produced energy to customers. The Company was included in consolidation for the first time in 2012.

Filokur Araç Kiralama Hizmetleri ve Ticaret A.Ş.: The Company was established in 2012 to operate, purchase, sell and rent all types

of land, sea and air vehicles. The Company was included in consolidation for the first time in 2012.

Turkol Turizm San. ve Tic.A.Ş.: The Company was established in 2010 to engage in tourism investments, marketing and agency ser-

vices. The Company was included in consolidation for the first time in 2012.

Truva Enerji İnşaat Sanayi ve Ticaret A.Ş.

The company is an “equity participation” of Kolin İnşaat, which has been established in 2005 for investing in the energy sector.

Efes Grup Nakliyat San ve Tic. A.Ş.

The company is a “subsidiary” of Kolin İnşaat, which was established in Ankara in 2006 for the purpose of energy investments. As of

2010, the company is engaged with oil shipping.



112

As of 31.12.2012, 3,499 personnel were employed by the Group (2011: 3,820; 2010: 3,638). The breakdown of personnel on a company

basis is as follows:

Number of PersonnelName of the Company 2012 2011 2010

Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş. 2,473 2,956 2,980Prebeton Prefabrik Elm. ve Hazır Beton San. ve Tic. A.Ş. 1 - - 20İnkol İnşaat Enerji Sanayi ve Ticaret A.Ş. 37 48 3Akköy Enerji A.Ş. 22 21 19Naturgaz Doğalgaz İth. İhr. San. ve Tic. A.Ş. 5 4 4Kolen Elektrik Toptan Satış İthalat ve İhracat A.Ş. 2 - - - -Albe Enerji Elekt. Elektronik Dan. Müş. Petrol Mad. Tarım Hay. San. ve Tic. A.Ş. 1 - - - -Esgaz Eskişehir Şehiriçi Doğalgaz Day. Tic. ve Taah. A.Ş. 44 47 48İzmirgaz Şehiriçi Doğalgaz Day. Ticaret ve Taahhüt A.Ş. 86 204 139Dikili Liman ve Turizm İşletmeleri Ticaret A.Ş. 21 24 25Çanakkale Liman İşletmesi Sanayi ve Ticaret A.Ş. 79 72 61Teos Marina İşletme ve Ticaret A.Ş. 26 26 30Hekimhan Madencilik İthalat İhracat Sanayi ve Ticaret A.Ş. 128 18 14Arslanlı Alçı ve Hammaddeleri Ticaret ve Sanayi A.Ş. 102 115 106Hekimhan Demir Çelik Mad. İmalat San. ve Tic. A.Ş. - - 52 - -Sefine Denizcilik Tersanecilik Turizm Sanayi ve Ticaret A.Ş. 175 139 110Koltar Tarım İthalat İhracat ve Ticaret A.Ş. 90 47 43Şişman Turizm İnşaat Sanayi ve Ticaret Ltd. Şti. 45 26 24Özege Reklam Büro Hizmetleri ve Gıda Tic. A.Ş. 29 - - - -Çatı Genel Hizmetler Tic. A.Ş. 116 - - - -Libya Hedef Hendesi A.Ş. - - 11 11Truva Enerji İnşaat Sanayi ve Ticaret A.Ş. 6 10 1Efes Grup Nakliyat A.Ş. 11 - - - -

3,499 3,820 3,638


2. Basis of Presentation of Financial Statements

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards

(IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board and International Ac-

counting Standards and Standing Interpretations Committee interpretations approved by the IASC that remain in effect.

The Company and its Turkish subsidiaries maintain their books of account and prepare their statutory financial statements in accordance

with accounting principles in the Turkish Commercial Code (“TCC”) and tax legislation. Subsidiaries operating in foreign countries main-

tain their books of account in the currencies of those countries and prepare their statutory financial statements in accordance with the

legislation effective in those countries. The consolidated financial statements are based on the statutory records with adjustments and

reclassifications for the purpose of fair presentation in accordance with IFRS.

Consolidated financial statements are prepared in accordance with the historical costs principle except the revaluation of tangible fixed

assets and investment property.

Translation of financial statements of branches and foreign subsidiaries

Branches’ assets and liabilities are translated into Turkish Lira from the foreign exchange rate at the balance sheet date and income and

expenses are translated into Turkish Lira at the average foreign exchange rate. Exchange differences arising from the retranslation of

the opening net assets of foreign undertakings and differences between the average and balance sheet date rates are included in the

“cumulative translation differences” under the equity.

Presentation currency

For the purpose of the financial statements, the presentation currency of the Group is accepted as TL. The currency of the primary eco-

nomic environment (functional currency) of the Group is USD.

Hypothesis of continuity of the enterprise

Financial tables are prepared considering the continuity of the enterprise with the hypothesis that the Group will get benefit from its as-

sets with the natural course of its activities and will perform its obligations.

Comparative information and adjustment of financial statements of previous period

In order for allowing the determination of financial status and performance trends, the Group’s current period financial statements were

prepared as comparative with the previous period. In terms of providing compliance with the presentation of financial statements for the

current period, the comparative information are re-classified if required.

Changes and errors in the accounting policies and estimates

Material changes in accounting policies or material errors are corrected, retrospectively; by restating the prior period’s financial state-

ments. The effect of changes in accounting estimates affecting the current period is recognized in the current period; the effect of

changes in accounting estimates affecting current and future periods is recognized in the current and future periods. The accounting

policies used in the preparation of these financial statements are consistent with those used in the preparation of annual financial state-

ments for the year ended 31 December 2011.



114

Convenience translation of financial statements

For the convenience of the reader, the accompanying financial statements have been translated from Turkish Lira to US Dollars with the

Central Bank buying exchange rates at period-ends (31.12.2012: USD 1 = 1.7826; 31.12.2011: USD 1 = TL 1.8889; 31.12.2010: USD 1 =

TL 1.5460). Such convenience translations are not intended to comply with the provisions of IAS 21 “The Effects of Changes in Foreign

Exchange Rates” or Financial Accounting Standards Board No.52 “Foreign Currency Translations” for the translation of financial state-

ments. All resulting exchange differences are recognized as a separate item of translation difference in the “General Reserves” account.

The law numbered 6111

The Law numbered 6111 has been put into effect following its promulgation in the Turkish Official Gazette on 25 February 2011. Accord-

ing to the law, no tax investigation or tax assessment regarding corporate and value added taxes will be made for the tax-payers who

increase their tax bases for the years between 2006 and 2009.

The Group has decided to benefit from law number 6111. The effects of law number 6111 are booked in general reserves in the share-

holders equity.

Adoption of new and revised international financial reporting standards

The Group applied the revised standards and interpretations that are relevant to its operations, published by International Accounting

Standards Board (IASB) and International Accounting Standards Committee (IASC) and effective for financial statement which belong

the period of 31 December 2012:

IAS 24 (Revised), “Statements of Related Parties”

IAS 32 (Amendment), “Financial Tools: Presentation”

IFRIC 14 (Amendment), “Advance Payment of Minimum Funding Requirement”

IFRIC 19 (Interpretation), “Payment of Financial Debts with Financial Tools Based on Equity Capital”

IFRS 3 (Amendment), “Business Combinations”

IFRS 7 (Improvement), “Financial Tools: Explanations”

IAS 1 (Improvement), “Presentation of Financial Statements”

IAS 27 (Improvement), “Consolidated and Non-consolidated Financial Statements”

IAS 21, IAS 28, IAS 31 (Improvement), “Explanations to Terms of Transition”


IFRIC 13 (Improvement), “Customer Loyalty Programs”

IAS 34 (Improvement), “Intermediary Period Financial Reporting”

Standards, amendments and interpretations in issue but not yet effective nor prematurely adopted by the Company:

Following standards and interpretations have published while this financial statements approving but it has not became effective yet:

IFRS 9, “Financial Instruments”, Effective as of 01 January 2015

IFRS 10, “Consolidated Financial Statements”, Effective from 01 January 2013

IFRS 11, “Common Regulations”, Effective from 01 January 2013

IFRS 12, “Explanations Concerning the Shares in Other Operations”, Effective from 01 January 2013

IFRS 13, “Fair value Measurement”, Effective from 01 January 2013

IAS 19, “Employee Benefits”, Effective from 01 January 2013

IAS 27, “Consolidated and Separate Financial Statements”, Effective from 01 January 2013

IAS 28, “Investments in Associates and Joint Ventures”, Effective from 01 January 2013

IFRS 7 (Amendment), “Financial Instruments - Disclosures”, Effective from 01 January 2013

IAS 32 (Amendment), “Financial Instruments-Presentation: Offsetting Financial Assets and Financial Liabilities”, Effective from 01

January 2014.

The Group management will evaluate the effect of the aforementioned changes within its operations and apply changes starting from

effective date. It is expected that the application of the standards and the interpretations above will not have a significant effect on the

financial statements of the Group.



116

3. Principles of Consolidation and Summary of Significant Accounting Policies

3.1 Principles of Consolidation

The consolidated financial statements incorporate the financial statements of the Group and its entities controlled by the Group and

foreign branches as explained in Note 1.

Entities in which the Group, directly or indirectly, has above 50% shareholding or interest of voting rights or otherwise has power to

exercise control over operations, have been fully consolidated. Certain companies in which the Group has a controlling interest or signifi-

cant influence are not consolidated or equity accounted, as they are immaterial individually and in aggregate to the results and financial

position of the Group.

The balance sheets and statements of income of the Group are consolidated on a line by line basis, and the carrying value of the invest-

ment held by the Group is eliminated against the related shareholders’ equity accounts. Consolidated financial statements are prepared

using uniform accounting policies for like transactions and other events in similar circumstances. Inter-company balances and transac-

tions, including inter-company profits and unrealized profits and losses are eliminated.

Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the income

statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity. Losses applicable to the

minority in excess of the minority’s interest in the subsidiary’s equity are allocated against the interests of the Group except to the extent

that the minority has a binding obligation and is able to make an additional investment to cover the losses.

The purchase method of accounting is used for acquired business. Subsidiaries, joint ventures or investment in associates, acquired or

disposed of during the year are included in the consolidated financial statements from the date of acquisition or to the date of disposal.

Investments in associates are undertakings over which the Group generally has between 20% and 50% of the voting rights and the

Group has significant influence and which are not subsidiaries or joint ventures of the Group. The Group’s investments in associates are

accounted for using the equity method. Under the equity method, an associate is carried at net asset amount in the consolidated balance

sheet and the share of the Group from the associate’s results of operations is recognized in the statement of income. Unless net assets

of the investment in associates are subject to a temporary impairment, the investment in associates is disclosed with the impaired value

in the accompanying financial statements.

Joint ventures are companies in respect of which there are contractual arrangements through which an economic activity is undertaken

subject to joint control by the Group and its subsidiaries together with one or more other parties. The Group’s interest in joint ventures

is accounted for by way of proportionate consolidation; in other words, the Group includes its share of the assets, liabilities, income and

expenses of each joint venture in the relevant components of the financial statements. Proportionate consolidation method principally

has the similar procedures as the line by line consolidation method.


3.2. Significant Accounting Policies

The principal accounting policies followed in the preparation of the accompanying consolidated financial statements are set forth below:

Related parties

For the purpose of the accompanying financial statements, key personnel in management and board of directors, their family and con-

trolled or dependent companies, participations and subsidiaries of the Group are referred to as related parties.

Cash and cash equivalents

Cash and cash equivalents comprise of cash in hand, bank deposits and short-term investments, which can easily be converted into cash

for a known amount, has high liquidity with maturities of 3 months or less. The amounts paid under the reverse repurchase agreements

are included in the cash and cash equivalents. Recorded value is estimated market value of other cash and bank deposits on the balance.

Trade receivables and allowance for doubtful receivables

Trade receivables occurred as a result of delivering goods or services to the buyer are presented as set-off from the un-accrued financ-

ing revenue. After un-accrued financing revenue trade receivables are calculated by discounting the amounts to be obtained in follow-

ing periods for the receivables recorded over their invoice amount through effective interest method. Short-term receivables with no

determined interest rate were presented over cost values in the case that the effect of original effective interest rate isn’t too much.

A credit risk provision for trade receivables is recognised if there is objective evidence for the inability to collect all amounts due. The

amount of the provision is the difference between the carrying amount and the recoverable amount. The recoverable amount is the

present value of all cash flows, including amounts recoverable from guarantees and collateral, discounted based on the original effective

interest rate of the originated receivables at inception. If the amount of the impairment subsequently decreases due to an event occur-

ring after the write-down, the release of the provision is credited to other income.

Trade payables

Trade payables are payments to be made arising from the purchase of goods and services from suppliers within the ordinary course of

business. Trade payables are recognised initially at fair value and subsequently measured at amortized cost using the effective interest

method.

Inventories

Inventories are valued on the basis of the weighted average cost method by considering the cost or the net realizable value, whichever

is the lowest. Net realizable value is the estimated selling price in the ordinary course of business, less the cost of completion and sell-

ing expenses. The cost of inventories cover all purchasing costs, conversion costs and other expenses made to bring the inventories

into their current state and condition.

Cost of projects under construction and development comprise direct cost, attributable indirect costs, raw material and cost of borrow-

ing related to projects. These inventories are stated at the lower of cost or net realizable value.

Investments

The unconsolidated equity investments are carried at cost, reduced where necessary to reflect permanent impairment in value.



118

Joint ventures

The Company has signed partnership agreements with various companies to perform many projects. The purposes and completion

times of these joint ventures are specified. As of 31.12.2012 and 31.12.2011 assets and operations of these joint ventures have been

included in the accompanying financial statements by way of proportionate consolidation. In prior years income and expenses arising

from the joint venture operations were included in income statements in sales and cost of sales by their gross amounts. Details of Joint

Ventures are presented in note 11

Construction costs

Contract revenue and costs are recognized as revenue and expenses, respectively, when the outcome of a construction contract can be

estimated reliably. The percentage of completion method is used to recognize revenue on a contract as work progresses by matching

contract revenue with contract costs incurred based on the proportion of work completed which is determined by the ratio of actual

costs incurred through to the end of each reporting period divided by the total estimated contracts costs of the projects.

Revenue arising from cost plus fee contracts is recognized on the basis of costs incurred plus a percentage of the contract fee earned

during the year. Contracts to manage, supervise or coordinate the construction activity of others are recognized only to the extent of the

fee revenue.

Contract costs include all direct material and labour costs and those indirect costs related to contract performance, such as indirect la-

bour, supplies, tools, repairs and depreciation costs. Selling, general and administrative expenses are charged to the income statements

as incurred. Provisions for estimated losses on uncompleted contracts are made in full, in the period in which such losses are deter-

mined. Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions

and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are

determined. Profit incentives are included in revenues when their realization is reasonably assured.

Costs of uncompleted construction contracts represent the costs incurred less the sum of recognized costs (in the income statements)

for all contracts in progress. Deferred revenue in excess of costs on uncompleted contracts represents future billings in excess of rev-

enues recognized (in the income statements). These cost and deferred revenue are subsequently recognized in the income statement

based on completion method which is based on engineering reports.

Construction projects as of report date can be summarized below:

KO

LİN

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bour

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stru

ctio

n (L

imak

Kol

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oint

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ture

)02

.04.

2011

$133

,994

,410

2TC

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irect

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onst

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(Kol

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Lim

ak J

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ture

)18

.10.

2011

$150

,673

,900

4TC

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irect

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azia

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Şan

lıurf

a H

ighw

ay C

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ruct

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(Lim

ak -

Kol

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)02

.07.

1998

$216

,680

,732

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al D

irect

orat

eG

ökov

a M

arm

aris

Roa

d C

onst

ruct

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(Kol

in -

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ge -

Mat

Joi

nt V

entu

re)

10.0

3.20

10$3

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96

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. Min

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Tand

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stan

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Con

stru

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orks

(Gül

erm

ak -

Kol

in J

oint

Ven

ture

)03

.02.

2012

$162

,219

,566

7TC

DD

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eral

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ate

TCD

D Y

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zgat

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as R

ailw

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stru

ctio

n (C

engi

z-Li

mak

-Map

a-K

olin

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.11.

2008

$589

,537

,796

8TC

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al D

irect

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-100

İst.

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ara

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te R

oad

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erst

ruct

ure

and

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(Kol

in -

Kal

yon

J.V.

)01

.12.

2011

$39,

946,

279

9C

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kezi

Fin

ans

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ir.A

nkar

a İs

tanb

ul H

igh

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rain

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e G

ebze

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eköy

Jun

ctio

n C

onst

. (S

alin

i - K

olin

- G

CF

J.V.

)14

.10.

2011

$193

,707

,480

10D

Sİ G

ener

al D

irect

orat

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otam

ış S

tora

ge C

onst

ruct

ion

(Yön

taş

Kol

in J

oint

Ven

ture

)03

.11.

2011

$48,

020,

350

11D

HM

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ntal

ya F

ishi

ng P

ort

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stru

ctio

n (A

rsel

- K

olin

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entu

re)

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8.20

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1,21

5,65

712

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mer

ican

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bass

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ompo

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ork

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olin

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01.1

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DS

İ Gen

eral

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ctor

ate

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feli

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HE

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stru

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orks

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olin

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hway

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abili

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arce

l 1 H

ajiq

abul

Bul

agli

Seg

men

t17

.05.

2011

$77,

781,

710

16A

zerb

aija

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inis

try

of T

rans

port

Haj

iqab

ul-H

orad

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ighw

ay R

ehab

ilita

tion

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cel 2

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ram

tepe

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men

t17

.05.

2011

$109

,209

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16R

epub

lic o

f A

zerb

aija

nİs

may

illi D

istr

ict

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tew

ater

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atm

ent

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nt C

onst

ruct

ion

05.0

9.20

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4,50

2,41

317

Uga

nda

Nat

iona

l Roa

ds A

utho

rity

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ma-

Kai

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onya

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st. W

ork

to le

vel u

p to

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ted

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ndar

d (U

gand

a B

ranc

h)04

.08.

2011

$139

,540

,000

18K

olin

-Gün

eş-C

eyla

n J.

V.K

emer

ihis

ar P

ozan

tı H

ighw

ay C

onst

ruct

ion

10.0

6.19

98$1

80,0

00,0

0019

DS

I A

nkar

a W

ater

Sup

ply

Pro

ject

Pha

se II

Ger

ede

Sys

tem

Con

stru

ctio

n27

.12.

2010

$143

,391

,319

20A

kköy

A.Ş

.A

kköy

Ene

rji A

.Ş. H

ydro

elec

tric

Pow

er P

lant

Con

stru

ctio

n P

hase

II01

.09.

2007

$501

,438

,960

21TC

K G

ener

al D

irect

orat

eE

rzur

um-P

asin

ler

- Hor

asan

Hig

hway

Con

stru

ctio

n10

.05.

2011

$44,

933,

967

22TC

K G

ener

al D

irect

orat

eY

ıldız

eli S

ivas

Zar

a an

d S

ivas

Ula

ş H

ighw

ay C

onst

ruct

ion

09.0

1.19

95$1

59,8

36,3

6723

Turk

ol T

uriz

m S

anay

i ve

Tic.

A.Ş

Tuzl

a H

otel

Con

stru

ctio

n14

.01.

2011

$ 63

,039

,649

24TC

K G

ener

al D

irect

orat

eS

ivas

Kan

gal S

eper

atio

n - G

emer

ek 6

th R

egio

n H

ighw

ay C

onst

ruct

ion

18.1

2.19

97$1

11,0

86,4

8525

DS

İ Gen

eral

Dire

ctor

ate

Art

vin

Ort

aköy

Via

duct

Con

stru

ctio

n08

.10.

2010

$44,

837,

701

26A

lbe

Ele

ktrik

Ene

rji A

.Ş.

Ala

nya

Yapr

ak H

EP

P C

onst

ruct

ion

12.0

4.20

11$3

4,32

8,85

3


120

KO

LİN

İNŞ

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İZM

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NA

Yİ V

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.Ş. A

ND

ITS

SU

BS

IDIA

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SN

OT

ES

TO

TH

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ON

SO

LID

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FIN

AN

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L S

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EN

TS

A

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F 31

DE

CE

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201

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AN

D 2

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rren

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less

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ress

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Pro

ject

N

umbe

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roje

ct N

ame

Con

trac

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ate

Pro

ject

Val

ue

US

D27

TCK

Gen

el M

üd. 2

nd R

egio

nİz

mir

- Men

emen

- M

anis

a R

oad

Con

stru

ctio

n11

.08.

2010

$28,

855,

887

28TC

K G

enel

Müd

. 1st R

egio

nK

örfe

z In

ters

ectio

n E

ast

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it In

ters

ectio

n S

uper

stru

ctur

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prov

emen

t C

onst

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ion

03.0

3.20

11$1

9,32

2,74

429

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Gen

el M

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st R

egio

nG

ebze

Inte

rsec

tion

Con

stru

ctio

n12

.11.

2010

$19,

213,

547

30TC

K G

enel

Müd

. 2nd

Reg

ion

İzm

ir Fr

eew

ay H

arm

anda

lı an

d K

oyun

dere

Cro

ssro

ad C

onst

ruct

ion

29.0

7.20

10$4

3,67

8,92

031

İzm

ir D

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gaz

A.Ş

. İz

mir

Reg

ion

Nat

ural

Gas

Dis

trib

utio

n an

d In

fras

truc

ture

Con

stru

ctio

n01

.01.

2007

$7,2

33,7

0532

DS

İ Gen

el M

üd.

Çan

akka

le U

mur

bey

Pla

in Ir

rigat

ion

Con

stru

ctio

n16

.06.

1998

$27,

484,

532

33TC

K G

enel

Müd

.S

ivas

Gem

erek

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kışl

a C

onst

ruct

ion

Pha

se II

18.1

2.19

97$1

04,3

32,9

3834

Hek

imha

n M

aden

cilik

H

ekim

han

Dem

irçel

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acto

ry C

onst

ruct

ion

01.0

9.20

11$9

,691

,127

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mak

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at A

.Ş.

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üyük

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cik

Mek

ece

Pha

se II

02.0

1.20

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2,00

0,00

036

TCK

Gen

el M

üd.

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ak M

erzi

fon

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d C

onst

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Pha

se I

19.0

4.20

11$6

4,98

1,23

137

TCD

D G

enel

Müd

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nkar

a S

inca

n S

tatio

n R

ailw

ay E

xten

sion

Con

stru

ctio

n (K

olin

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F-S

avro

nik

Kon

s.)

16.0

2.20

11$2

0,50

7,69

238

Akk

öy E

nerji

A.Ş

.K

ürtü

n 20

0 S

tude

nt C

apac

ity S

econ

dary

Sch

ool D

orm

Con

stru

ctio

n01

.02.

2012

$1,4

46,0

5139

TCK

Gen

el M

üd. 2

nd R

egio

nİz

mir

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me

Junc

tion

Bal

ıklıo

va M

ordo

ğan

Kar

abur

un R

oad

Con

stru

ctio

n26

.10.

2010

$10,

624,

999

40D

Sİ G

enel

Müd

.B

odru

m D

rinki

ng W

ater

Pla

nts

and

Tran

smis

sion

Lin

e C

onst

ruct

ion

08.0

8.20

11$1

,537

,064

41TC

K G

enel

Müd

.G

azia

ntep

Şan

lıurf

a B

eltw

ay18

.12.

2009

$3,3

45,9

2742

Akk

öy A

.Ş.

Gire

sun

Doğ

anke

nt V

eysi

Akı

n K

oloğ

lu V

ocat

iona

l Hig

h S

choo

l Con

stru

ctio

n28

.04.

2011

$ 2

,427

,218

43E

sgaz

Doğ

alga

z A

.Ş.

Esk

işeh

ir R

egio

n N

atur

al G

as D

istr

ibut

ion

and

Infr

astr

uctu

re C

onst

ruct

ion

01.0

1.20

07$3

,327

,238

44TC

DD

Gen

el M

üd.

Kay

seri

Nor

ther

n Va

riant

Rai

lway

Con

stru

ctio

n20

.12.

2012

$31,

824,

533


Finance leases

Leases of property, plant and equipment where the Group substantially assumes all the risks and rewards of ownership are classified

as finance leases. Finance leases are included in the property, plant and equipment at the inception of the lease at the lower of the fair

value of the leased property or the present value of the minimum lease payments. The finance charge is allocated to each period during

the lease term so as to produce a constant periodic rate. The property, plant and equipment acquired under finance leases are depreci-

ated over the useful life of the asset. An impairment loss is recognised when a decrease in the carrying amount of the leased property is

identified. Interest expenses and foreign exchange losses related to the finance lease liabilities are accounted in the income statement.

Lease payments are deducted from finance lease liabilities.

Investment properties

Buildings and land held to earn rentals or for the capital appreciation or both, rather than for use in the production or supply of goods

or services, or for administrative purposes or sale in the ordinary course of business, are classified as investment property. Investment

properties (Kolin Hotel) are carried at fair values (note 12).

Transfers are made to investment property when, and only when, there is a change in use, evidenced by ending of owner-occupation,

commencement of an operating lease to another party or ending of construction or development, UMS 16 “Tangible Assets” standard

is applied until the accrual date of the change. Transfers are made from investment property when, and only when, there is a change in

use, evidenced by commencement of owner-occupation or commencement of development with a view to sale.

Property, plant and equipment and related depreciation

Property, plant and equipment are carried at acquisition cost, less any accumulated depreciation and any impairment loss. Profit and

loss arising out of the sale of property, plant and equipment are included in the other income and expense accounts. In cases when the

carrying value of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

Repair and maintenance expenditure related to property, plant and equipment is expensed as incurred.

Depreciation is provided on straight-line basis over the useful lives of the assets. The estimated useful lives of property, plant, equipment

are as follows:

Years

Buildings 50

Prefabricated buildings 15

Machinery, plant and equipment 10

Furniture and fixtures 10

Çanakkale hotel building 49

Leasehold improvements 5



122

Goodwill

Goodwill represents the excess of the cost of the acquisition over the fair value of identifiable net assets of a subsidiary, associate or

joint venture at the date of acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Impairment of assets

The carrying values of all tangible or intangible fixed assets, other than goodwill which is reviewed for impairment at least annually, are

reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recov-

erable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized in the income

statement for items carried at cost and treated as a revaluation decrease for items carried at revalued amount to the extent that impair-

ment loss does not exceed the amount held in the revaluation surplus. The recoverable amount of property, plant and equipment is the

greater of net selling price and value in use. The net selling price is the amount obtainable from the sale of an asset in an arm’s length

transaction while value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset

and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if it is not possible, for the

cash-generating unit.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized

for the assets no longer exist or has decreased. The reversal is recognized in income statement unless the asset is carried at revalued

amount, in which case the reversal is treated as a revaluation increase in equity.

Financial assets

The appropriate classification of financial assets is determined at the time of the purchase and re-evaluated by management on a regular

basis.

“Financial assets at fair value through profit or loss” are either acquired for generating a profit from short-term price fluctuations or deal-

ers’ margin, or included in a portfolio in which a pattern of short-term profit making exists. Financial assets at fair value through profit or

loss are initially recognised and subsequently measured at fair value. All related gains and losses are accounted in the income statement.

Non-derivative financial assets with fixed maturities, where management has both the intent and the ability to hold to the maturity

excluding the financial assets classified as loans and advances to customers are classified as “held-to-maturity financial assets”. Held-

to-maturity financial assets are carried at amortised cost using the effective yield method.

“Available-for-sale financial assets” are non-derivatives that are not designated in financial assets at fair value through profit or loss, held-

to-maturity financial assets or loans and receivables. These are included in non-current assets unless management has the intention of

holding these investments for less than 12 months from the balance sheet date, or unless they will need to be sold to raise operating

capital, in which case they are included in current assets.


Available-for-sale financial assets are subsequently measured at fair value. Available-for-sale financial assets that are quoted in active

markets are measured based on current bid prices. If the market for a financial asset is not active the fair value is determined by using

valuation techniques such as discounted cash flow analysis and option pricing models.

Unrealised gains and losses arising from changes in the fair value of securities classified as available-for-sale are accounted in the equity

net of tax under “financial assets fair value reserve”. Unrealised gains and losses arising from changes in the fair value of available-for-

sale debt securities are the differences between the fair value of such securities and their amortised costs at the balance sheet date.

When available-for-sale securities are sold, collected or otherwise disposed of, related deferred gains and losses in equity are transferred

to the consolidated income statement. If the difference between the cost and the fair value of the available-for-sale securities is perma-

nent, gains and losses are transferred to the consolidated income statement.

Interest and dividends associated to the available-for-sale financial assets are accounted under corresponding interest income and divi-

dend income accounts.

“Loans and receivables” are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

They are included in current assets, except for maturities greater than 12 months after the balance sheet date. Those with maturities

more than 12 months are classified as non-current assets. The Group’s loans and receivables comprise “cash and cash equivalents”,

“trade receivables” and “loans and advances to customers”.

Financial liabilities

Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements

entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a re-

sidual interest in the assets of the Group after deducting all of its liabilities. The accounting policies adopted for specific financial liabilities

and equity instruments are set out below.

Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities.

a) Financial liabilities at fair value through profit and loss

Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or it is designated as at FVTPL. Financial

liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognized in profit or loss. The net gain or loss recognized in

profit or loss incorporates any interest paid on the financial liability.



124

b) Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense rec-

ognized on an effective yield basis.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over

the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected

fife of the financial liability, or, where appropriate, a shorter period.

Bank borrowings

Interest-bearing bank loans and overdrafts are initially recorded at the proceeds received, net of direct issue costs. After initial recogni-

tion, bank borrowings are subsequently measured at amortized cost using the effective interest rate method. Finance charges, including

premiums payable on settlement or redemption, are accounted for on an accrual basis and are shown in current liabilities to the extent

that they are not settled in the period in which they arise.

Provisions

Provisions are recognized when, and only when the Group has a present obligation as a result of a past event and it is probable that an

outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the

amount of the obligation. Provisions are recognized by the amortized amount as of balance sheet date in case that the monetary loss is

material. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily

take a considerable time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets

are substantially ready for their intended use or sale.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

Employee Benefits / Retirement Pay Provision

Under the Turkish law and union agreements, severance payments are made to employees retiring or involuntarily leaving the Group.

Such payments are considered as being part of defined retirement benefit plan as per International Accounting Standard No: 19 “Em-

ployee Benefits”. The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit

obligation as adjusted for unrecognized actuarial gains and losses.


Taxation and deferred income taxes

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement

because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never

taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted

by the balance sheet date.

Deferred tax

Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of

assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable tem-

porary differences. Deferred tax related to the equity items is carried under the equity and not reflected to income statement. Deferred

tax assets are recognized for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the

extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry-forward of unused

tax assets and unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each balance sheet date

and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax

asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the

liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities related to income taxes levied by the same taxation authority are offset accordingly.

Revenue recognition

Revenue involves the goods and service sales invoiced value. Revenues are recognized on an accrual basis at the time deliveries of

goods and services or acceptances are made, the transfer of risks and benefits related to good are realized, the amount of revenue can

be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Group, at the fair value

of the consideration received or receivable. The significant risks and benefits in sales are transferred when the goods are delivered or

legal proprietorship is transferred to the customer. Interest income and expenses are recognized in the income statement on an accrual

basis. Net sales represent the invoiced value of goods shipped less sales returns and commission and excluding sales taxes.

Construction / Contracting Works: Revenue earned from contracting work is recognized by using a reference to the stage of completion

of the contract.

Dividend and interest revenue: Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective

interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial

asset to that asset’s net carrying amount.

Dividend revenue from investments is recognized when the shareholders’ rights to receive payment have been established.



126

Operating expenses

Operating expenses are recognized in profit or loss upon utilization of the service or at the date of their origin. Expenditure for warranties

is recognized and charged against the associated provision when the related revenue is recognized.

Segment reporting

In identifying its operating segments, management generally follows the Group’s service lines, which represent the main products and

services provided by the Group.

For designating an activity department as a reportable department, its yield, including the internal and external customer sales and inter-

department sales or transfers, must compose 10 percent or more of the total yield of all internal and external activity departments, its

reported profit or loss must be 10 percent or more or its assets must be 10 percent or more of the total assets of all activity departments.

If the Management thinks that the information on department will be useful for the financial statement users, the activity departments

which do not satisfy any of the above-specified numerical lower limits may be evaluated as reportable departments and information

thereof may be disclosed individually. If the Management thinks that the information on department will be useful for the financial state-

ment users, the activity departments which do not satisfy any of the above-specified numerical lower limits may be evaluated as report-

able departments and information thereof may be disclosed individually.

Offsetting

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an intention to settle on a net

basis or realize the asset and settle the liability simultaneously.

Foreign currency transactions

Transactions in foreign currencies during the periods have been translated at the exchange rates prevailing at the dates of these transac-

tions. Balance sheet items denominated in foreign currencies have been translated at the exchange rates prevailing at the balance sheet

dates. The foreign exchange gains and losses are recognized in the income statement.

The foreign exchange rates used by the Group as of 31.12.2012, 2011 and 2010 are as follows:

31.12.2012 31.12.2011 31.12.2010USD 1.7826 1.8889 1.5460EURO 2.3517 2.4438 2.0491GBP 2.8708 2.9170 2.3886CHF 1.9430 2.0062 1.6438AZN 2.2835 2.4158 1.9425

Commitments and contingencies

Transactions that may give rise to contingencies and commitments are those where the outcome and the performance of which will be

ultimately confirmed only on the occurrence or non-occurrence of certain future events, unless the expected performance is remote.

Accordingly, contingent losses are recognized by the Group in the financial statements if a reasonable estimate of the amount of the

resulting loss can be made. Contingent gains are reflected only if it is probable that the gain will be realized.


Use of estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect

reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and

the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. These

estimates are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they

become known.

Cash flow statement

Cash flows are classified according to operating, investment and finance activities in the statement of cash flows.

For the purpose of the cash flow statement, cash and deposits with bank accounts.

Significant management judgment in applying accounting policies

The following are significant management judgments in applying the accounting policies of the Group that have the most significant ef-

fect on the financial statements:

Revenue: Management needs to make significant judgment in determining when to recognize the revenue earned from rendering of

services by using a reference to the stage of completion of the contract and income from after-sales services.

Impairment: An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. To

determine the recoverable amount, management makes assumptions about future events and circumstances.

Inventories: In estimating net realizable values, management takes into account the most reliable evidence available at the times the

estimates are made.

Provisions: The Group is currently defending certain lawsuits where the actual outcome may vary from the amount recognized in the

financial statements. None of the provisions will be discussed here in further detail so as not to seriously prejudice the Group’s position

in the related disputes.

EBITDA (Earnings before income tax, depreciation and amortization)

EBITDA is defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization. EBITDA figure is

included as certain investors may also use it as a measure of a Group’s ability to service and/or incur debt. EBITDA should not be con-

sidered in isolation or as an alternative to net income (loss), net cash provided by operating, investing and financing activities or other

financial data prepared in accordance with investing and financing activities or other financial data prepared in accordance with IFRS or

as an indicator of the Company’s operating performance. This information should be read in conjunction with the Statements of Cash

Flows contained in the accompanying financial statements.

Subsequent events

In case some events that require correction after the balance sheet date, the Group shall correct the amounts from the financial state-

ments in accordance with the current situation. The matters that do not require correction after balance sheet date shall be explained in

footnotes of financial statements, if they have an effect on economic decisions of the financial statement users.


128

KO

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2,83

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0,43

7,54

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88,4

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139,

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1,93

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8,58

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2,83

6,06

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7,54

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88,4

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139,

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723

81,5

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9481

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,689

1,93

3,23

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,807

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(402

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)2,

779,

607,

669

Net

sal

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334,

559,

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250,

646,

347

555,

236,

247

30,9

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39,0

36,6

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7,51

6,93

518

7,80

0,52

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4,70

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(177

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(3,9

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63,6

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63,2

56,2

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,263

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40,2

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,136

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7,63

8,97

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- -71

0,22

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- -20

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(94,

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Pro

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124,

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36


130

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5

KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. VE BAĞLI ORTAKLIKLARI31 ARALIK 2012, 2011 VE 2010 TARİHLERİNDE SONA EREN YILLARA AİT KONSOLİDE MALİ TABLOLARA İLİŞKİN AÇIKLAYICI NOTLAR(Aksi belirtilmedikçe Türk Lirası (TL) olarak)

5. Cash and Cash Equivalents

As of 31 December 2012, 2011 and 2010 details of cash and cash equivalents were as follows:

31.12.2012 31.12.2011 31.12.2010

Cash 3,405,957 3,017,845 2,401,840Banks (*) - Demand deposits 133,142,897 127,060,283 21,652,341 - Time deposits 106,852,776 157,552,199 189,479,084 - Blocked deposits 3,490,393 12,099,441 5,156,848Repurchase accounts (repo) at banks 1,950,735 1,362,726 718,189Other liquid assets 1,375,479 1,230,968 479,960

250,218,237 302,323,462 219,888,262

(*) 31.12.2012, the foreign currency breakdown of bank accounts is as follows:

Demand deposits: - TL 95,971,185 100,204,834 18,330,699 - USD 4,266,402 13,957,947 1,934,092 - EUR 29,535,784 12,674,308 1,306,921 - GBP 66,884 72,100 38,496 - CHF 15,000 15,488 12,690 - JPY 88,532 68,568 29,443 - AZN 3,199,110 - NOK - - 67,038 - -Time deposits: - TL 71,865,935 102,824,040 135,550,000 - USD 28,976,745 30,996,849 29,667,740 - EUR 6,010,096 23,731,310 24,261,344Blocked deposits: - TL 3,490,393 7,627,287 1,640,593 - EUR - - 4,472,154 3,516,255

243,486,066 296,711,923 216,288,273

As of 31.12.2012, bank deposits of Izmirgaz amounting to TL 3,490,393 were blocked in remuneration for project financing.



132

Average effective interest rates on the time deposits at the balance sheet date were as follows:

Effective interest rate (31.12.2012)TL 8.00 %USD 5.00 %EUR 5.00 %

As of 31.12.2012, the terms of the time deposits varied between 1 and 90 days.

6. Trade Receivables

As of 31 December 2012, 2011 and 2010 trade receivables were as follows:

31.12.2012 31.12.2011 31.12.2010

Short term trade receivables:Construction contracts receivables - Invoiced receivables 106,322,744 108,163,344 13,392,308 - Receivables not yet invoiced yet (IAS 11) 59,575,624 - - - -Natural gas customers (*) 85,777,076 77,700,091 40,056,494Energy sales receivables (**) 8,516,121 1,599,557 1,436,915Other trade receivables 40,907,670 48,933,229 26,361,441Trade receivables from related parties (note 8) 59,147,006 23,562,673 1,970,043Notes receivable 20,729,657 24,457,988 9,769,556Unearned interests from notes receivable (-) (594,192) (481,890) (98,585)Deposits and guarantees given (***) 3,644,146 651,348 210,649Doubtful receivables 21,737,663 14,599,134 14,573,756Provision for doubtful receivables (-) (21,737,663) (15,072,483) (14,573,756)

384,025,852 284,112,991 93,098,821

Long term trade receivables:Receivables from TEİAŞ (****) 533,419 611,350 719,533Deposits and guarantees given 165,819 311,171 728,987

699,238 922,521 1,448,520

384,725,090 285,035,512 94,547,341


(*) Trade receivables arising from the Group Companies Esgaz and İzmirgaz gas sales are booked on the basis of information received

from Subscriber Information Management System (“ABYS”). Trade receivable accounts kept in the Esgaz and İzmirgaz accounting de-

partment and lists prepared by ABYS do not have any differences.

(**) Akköy I HEPP has sold all of its annual production to TEİAŞ in 2009, 73% in 2010, 79% in 2011 and 68% in 2012 and the remaining

production was sold to Kolin Group Companies. During 2012; TL 2,415,185 (During 2011: TL 3,011,156; 2010: 4,012,094) of the sales to

Kolin Group Companies was eliminated in consolidation.

(***) As of 31.12.2012, deposits and guarantees given in the amount of TL 2,889,316 is from the progress amount for ongoing works of

Salini Kolin GCF (Ankara İstanbul High Speed Train Line Gebze-Köseköy Junction Construction) joint venture.

(****) In accordance with an agreement signed on 18.05.2007 with the Electricity Market Regulatory Authority, the company sold en-

ergy transfer lines to TEİAŞ 2010. This receivable will be offset from the future sales of Akköy Enerji A.Ş. to TEİAŞ.

Maturity breakdown of post dated checks and notes receivables were as follows:

31.12.2012 31.12.2011 31.12.2010

Up to 3 months 15,917,962 16,625,367 7,667,065Between 3 months and 6 months 3,784,203 5,372,969 1,690,9856 months and more 1,027,492 2,459,652 411,506

20,729,657 24,457,988 9,769,556



134

7. Contract Costs and Deferred Billings

As of 31 December 2012 contract costs and deferred billings were as follows:

31.12.2012Completion

Rates %Contract

CostDeferred

Billings

Ankara Water Supply Project Phase II Gerede System Construction 36.00 33,463,062 6,066,351İzmir Freeway Harmandalı and Koyundere Crossroad Construction 35.96 7,242,749 120,473Sivas Gemerek Şarkışla Construction Phase II 75.46 21,211,797 32,314,005İzmir - Menemen - Manisa Road Construction 98.14 11,787,286 850,838Akköy Enerji A.Ş. Hydroelectric Power Plant Construction Phase II 92.40 12,315,967 1,914,975

86,020,861 41,266,642

Ankara Water Supply Project Phase II Gerede System Construction: On 27.01.2010, a contract has been signed with the General

Directorate of State Hydraulic Works. The project value amounts to USD 143,391,319. The contract works are comprised of Ankara

Gerede Drinking Water Systems Construction.

Kolin İnşaat has financially leased 3 construction equipments for the use of this project (TBM S-690, S-691 and S-692) from Yapı Kredi

Finansal Kiralama Anonim Ortaklığı. Depreciation amount set for these equipments as of 2012 is TL 14,660,076 and has been included

in the contract costs. The contract signed with Herrenknecht AG, the manufacturer of the equipments, has guaranteed to re-purchase

the equipments after the construction is completed.


8. Related Party Disclosures

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other

party in making the financial and operating decisions. The Group is controlled jointly by Kolin Group and by the major shareholders

(Koloğlu family), which jointly own 100% (2011: 100%; 2010: 100%) of ordinary shares. For the purpose of these financial statements

shareholders are referred to as related parties. Related parties also include individuals that are principle owners, management and mem-

bers of the Group’s Board of Directors and their families. In the course of conducting its business, the Group conducted various business

transactions with related parties on commercial terms.

Trade receivables from shareholders and related parties are as follows:

31.12.2012 31.12.2011 31.12.2010

Geomed Müş. Etüd Den. ve Tic. A.Ş. 2,839 1,032 1,265,416Turkol Turizm Sanayi ve Ticaret A.Ş. - - 21,918,733 341,258Kolsan İnşaat Otomotiv San. ve Tic. A.Ş. 1,266,520 865,675 99,825Parkfora Ankara Turz. San. Tic. Ltd. Şti. 79,868 79,591 82,604Ka Sigorta Aracılık Hizm. Ltd. Şti. 567 406,172 56,882Elazığ Dış Ticaret - - 69,161 49,024Köşem Taah. Tic. Gıda Turz. Ltd. Şti. 134,422 97,782 23,933Murtezaoğlu İnşaat San. ve Tic. A.Ş. 727,245 825 8,669Koltek Müşavirlik A.Ş. 78,918 99,918 5,854Armin Elektrik İnşaat San. Tic. A.Ş. 4,309 1,460 563Kolpaş Otomotiv Paz. San. ve Tic. A.Ş. 496 1,168 425Gazbil İlet. Tek. San. Tic. Ltd. Şti. 1,512 384 354Çamlıbel Elektrik Dağıtım A.Ş. 7,251,476 - - 231Uludağ Elektrik Dağıtım A.Ş. 17,308,558 - - - -Zealand Juliana B.V. 31,136,083 - - - -Zealand Beatrix B.V. 450,506 - - - -Kolmar Marine Investment Co.Ltd. 315,492 - - - -Özata Kolsan Joint Venture 72,088 - - - -Su Bilgi Tek. Yaz. San. Tic. Ltd. Şti. 52,222 - - - -Diperlit Madencilik Ltd. Şti. 27,364 - - - -Çamlı Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş. 8,372 - - - -Samsun Elektrik Üretim ve Ticaret A.Ş 2,865 - - - -Other 225,284 20,772 35,005

59,147,006 23,562,673 1,970,043



136

Non-trade receivables from shareholders and related parties were as follows:

31.12.2012 31.12.2011 31.12.2010

Kappa-Prebeton-Şimal Joint Venture 574,254 499,254 664,254Da – Ta Joint Venture - - 1,481,606 - -Murtezaoğlu İnşaat San ve Tic A.Ş. 1,141,424 - - - -Yavuz Bengü - - 23,000 165,890Koltek Müşavirlik A.Ş. - - - - 36,361İsmail Önal - - 181,664 - -Zealand Juliana B.V 42,277 - - - -Other 25,500 9,137 6,480

1,783,455 2,194,661 872,985

Non-trade receivables from related parties (long term):

Mireks Mir-Eksper Döküm Çelik Kimya Gübre İml. İşl. (Iron Steel R&D activities) - - 19,267,437 - -

- - 19,267,437 - -

Trade payables to related parties and shareholders were as follows:

Kolsan Otomotiv İnşaat A.Ş. 379,583 217,764 840,536Kolpaş Otomotiv Paz. San. ve Tic. A.Ş. 486,873 232,275 326,240Koltek Müşavirlik Proje A.Ş. 2,950 4,590 191,963Armin Elk. İnşaat Sanayi ve Ticaret A.Ş. 8,434,990 721,154 2,131,410Akkol Hazır Yemek San. Tic. A.Ş. 589,185 285,930 625,782Ka Sigorta Aracılık Hiz. Ltd. Şti. 2,320,610 31,711 124,170Gazbil İlt. Tek. San. ve Tic. Ltd. Şti. 466,998 331,982 101,153Köşem Taah. Tic. Gıda Turz. Ltd. Şti. 56,279 2,043 480Park Fora Ankara Turz. San.ve Tic.Ltd.Şti. - - 652 - -Geomed Geoteknik Müş. Den. Tic. A.Ş. 359,823 1,857,035 - -Çamlıbel Elektrik Dağıtım A.Ş. - - 12,660 - -Uludağ Elektrik Dağıtım A.Ş. 20,604 16,968 - -Su Bilgi Tek. Yaz. San. Tic. Ltd. Şti. 45,048 - - - -Other 236,627 293,230 - -

13,399,570 4,007,994 4,341,734


Non-trade payables to related parties and shareholders were as follows:

31.12.2012 31.12.2011 31.12.2010

Kamil Önal - - 600,000 600,000İsmail Önal - - 400,000 400,000Celal Koloğlu - - 607,200 51,000V. Akın Koloğlu 6,000 5,600 20,900Naci Koloğlu 6,000 5,600 20,400Ali Arif Aktürk - - 9,535 9,305Mürsel Genç - - - - 7,000Mehmet Birol Ensari 3,500 3,100 2,850Çamlıbel Elektrik Dağıtım A.Ş. 7,193 - - - -Uludağ Elektrik Dağıtım A.Ş. 41,293 - - - -İska Liman İşl. ve Hurda Gemi San. Ltd. Şti. 4,010,000 - - - -Payables to other related parties 16,398 31,051 85,404

4,090,384 1,662,086 1,196,859

9. Inventories

As of 31 December 2012, 2011 and 2010 inventories were as follows:

Materials (*) 30,057,968 14,107,668 2,887,424Finished goods 6,997,458 61,135 100,799Merchandises (**) 41,947,900 50,551,200 20,791,401Other inventory 10,128,621 10,107,480 2,400,929Advances given 1,361,271 9,076,444 594,166

90,493,218 83,903,927 26,774,719

(*) As of 31.12.2012, TL 18,612,564 of materials used were raw materials for the construction of ships and TL 9,993,856 of construction

materials.

(**) As of 31.12.2012, TL 38,377,505 of merchandises are comprised of the fertilizer stocks of Koltar Tarım İthalat İhracat ve Ticaret A.Ş.

Koltar Tarım was established in 2009 for fertilizer exports and was included in consolidation for the first time in 2009.



138

10. Other Assets

As of 31 December 2012, 2011 and 2010 other assets were as follows:

31.12.2012 31.12.2011 31.12.2010Other current assets:Due from shareholders and related parties (note 8) 1,783,455 2,194,661 872,985Prepaid expenses 8,415,063 4,389,200 1,238,571Income accruals on bank accounts 68,868 85,837 40,244Prepaid taxes (*) 24,871,232 23,586,193 40,971,083Advances given 10,401,771 11,820,348 789,787Local construction works 10,415,489 10,676,982 - -Overseas construction works 13,910,911 4,992,576 - -Advanced given to subcontractors 3,880,769 - - - -Receivable from the tax office 10,071,909 8,792,037 4,495,911VAT carried forward (**) 112,359,262 93,985,497 67,932,179Other 755,925 1,365,145 198,342

196,934,654 161,888,476 116,539,102

Other long term assets:Prepaid taxes (***) 86,381,898 65,513,762 39,311,036Other long term assets 737,693 1,409,263 - -Due from related parties (note 8) - - 19,267,437 - -

87,119,591 86,190,462 39,311,036

(*) According to Turkish Tax Laws Group must make advance payments of corporation tax. Prepaid taxes are computed on the quarterly

taxable profits reported at the rate of 20% (2011: 20%; 2010: %20). This prepaid corporation tax can be recovered by deduction from

future corporation tax liabilities. Recovery by deduction from other taxes is also possible.

As of 31.12.2012, prepaid taxes comprised of withholding taxes of Gaziantep Şanlıurfa Highway Construction (Limak - Kolin Joint Ven-

ture) in the amount of TL 6,352,689, Artvin - Erzurum state road upper structure works Phase II in the amount of TL 2,523,262 TL, Artvin

- Ortaköy viaduct construction in the amount of TL 2,337,466 and other constructions in the amount of TL 303,785.

(**) As of 31.12.2012, VAT carried forward comprised of balances of Akköy Enerji amounting to TL 60,092,022, İzmirgaz of TL 16,370,901,

TL 8,825,873 of Turkol Turizm, TL 5,927,518 of Albe Enerji, TL 5,390,857 of Koltar Tarım and TL 4,139,376 of Hekimham Madencilik. VAT

carried forward will be deducted from VAT payable of the future sales of the Company.

(***) According to Article 94 of the Income Tax Law, for construction and repair works extending over one calendar year performed by

persons or legal entities, both work advances and progress invoice amounts paid to those performing the work such as contractors,

subcontractors, are subject to withholding tax at rate of 3%.


11. Investments and Joint Ventures

As of 31 December 2012, 2011 and 2010 investments and joint ventures are as follows:

Investment Percentage (%) 31.12.2012 31.12.2011 31.12.2010

Investments:Uluğ Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş. 33.27 7,103,435 7,103,435 7,103,435Çamlı Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş. 33.33 3,765,382 3,765,382 3,765,382Ti Ro Ro Denizcilik Sanayi ve Tic. A.Ş. 3.00 172,000 172,000 172,000Kiplasma End. Atık Entegre San. Tic. A.Ş. 0.90 90,000 90,000 90,000Akkol Hazır Yemek San. Tic. A.Ş. 45 160,000 160,000 60,000Eno Enerji Ort. Toptan Elek. Sat. A.Ş. 30.83 92,490 92,500 - -Server Enerji Üretim ve Ticaret A.Ş. 45 27,000 27,000 - -KLG LLC (LTD) Gürcistan 50 1,934,526 1,242,863 - -Kobin İnşaat Sanayi ve Ticaret A.Ş. - - - - 4,000 - -Akkol Park A.Ş. 1 1,000 1,000 - -Zealand Maxima B.V. 49 5,256,261 1,002,689 - -Zealand Amalia B.V. 49 5,256,252 1,002,689 - -Uludağ Elektrik A.Ş. (*) 1 1 - -Çamlıbel Elektrik A.Ş. (*) 3 3 - -Yeniçeri Özel Güvenlik Hizmetleri A.Ş. 33.33 285,332 - - - -

24,143,682 14,663,562 11,190,817

Joint Ventures (**):Aykotek Joint Venture 50 - - - - 26,941,811Limak-Kolin Joint Venture 50 - - - - 6,664,215Kolin-Ceylan-Güneş Joint Venture 50 - - - - 690,989Cengiz-Limak-Mapa-Kolin Joint Venture 19.90 - - - - 1,990Epik-Kolin Joint Venture 50 - - - - 542Kappa-Prebeton-Şimal Joint Venture 50 - - - - 5,000

- - - - 34,304,547

24,143,682 14,663,562 45,495,364

(*) Companies that have less than 0.1% of participation ratio.

(**) As of and for the year ended 31.12.2012 assets, liabilities and income and expenses arising from the joint venture operations are

included in the accompanying financial statements by way of proportionate consolidation. Prior to 01.01.2012 income and expenses aris-

ing from the joint venture operations were included in income statements in sales and cost of sales by their gross amounts.



140

Uluğ Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş. and Çamlı Enerji Dağıtım ve Perakende Satış Hizmetleri A.Ş.: As ex-

plained in note 1, Uluğ and Çamlı were established to purchase government shares of UEDAŞ and ÇEDAŞ. Transferring of shares ended

with the Share Sale Agreement signed on 31 August 2010. IFRS 3 “Business Combinations” requires that goodwill is recognized by the

acquirer as an asset from the acquisition date and is initially measured as the excess of the cost of the business combination over the

acquirer’s share of the net fair values of the acquirer’s identifiable assets, liabilities and contingent liabilities less any impairment. There-

fore, as of 31.12.2012, 2011 and 2010 the amount between acquisition cost of the business and acquirer’s identifiable assets, liabilities

and contingent liabilities less any impairment of UEDAŞ and ÇEDAŞ are accounted as goodwill (note 13).

Kiplasma Endüstriyel Atık Entegre Bertaraf Sanayi ve Ticaret A.Ş.: The Company was established in 2007 with the joint venture of

several industrial producers. The company will establish an industrial waste disposal facility in Gebze Gebkim industrial zone on a 50,000

square meter land.

Akkol Hazır Yemek Sanayi ve Ticaret A.Ş.: The Company was established in 2007 to engage in packaged food. As of 31.12.2012, the

total assets and net profit was TL 8,861,099 and TL 900,450 according to its statutory records, respectively.

Eno Enerji Ortaklığı Toptan Elektrik Satışı

The Company is an “equity investment” which was established in 2011 for the purpose of wholesale and direct sale to consumers. Kolin

İnşaat Turizm Sanayi ve Ticaret A.Ş., Cengiz Holding A.Ş. and Limak Holding A.Ş. hold equal shares. As of 31.12.2012 the difference

between the acquisition cost and existing equity within the same date has been accounted for in the income statement as investment

profit / loss.

Server Enerji Üretim ve Ticaret A.Ş.:The Company was established in 2011 to engage in the activities of installation, operation, renting,

electricity production facilities that work with water, natural gas, coal, fuel oil and naphtha and also electricity production and selling. As

of 31 December 2012 the total amount of assets and net period loss of the company were TL 20,141 and TL (20,115) according to its

statutory records, respectively.

KLG Georgia: The Company was established in 2011 to develop HEPP projects and energy projects, to produce electricity and energy,

to establish facilities for this purpose, to make rehabilitation, operation and turnover work, a production facility or an area construction in

Georgia for these purposes.

Akkol Park Yiyecek İçecek Hizm.A.Ş.: The company was established in 2010 to produce, buy and sell food and to produce services.

As of 31 December 2012 the total amount of assets and net period loss of the company were TL 29,669 and TL (6,883) according to its

statutory records, respectively.


Zealand Maxima B.V.

The Company is an “equity investment” which was established in Holland to operate freight transport by ship. Kolin İnşaat owns 49% of

Zealand Maxima B.V. and is consolidated in the accompanying financial standards with the equity method. The difference between the

acquisition cost and existing equity within the same date has been accounted for as goodwill. (note 13).

Zealand Amalia B.V.


of Zealand Amalia B.V. and is consolidated in the accompanying financial standards with the equity method. The difference between the

acquisition cost and existing equity within the same date has been accounted for as goodwill. (note 13).

Yeniçeri Özel Güvenlik Hizmetleri A.Ş.

The Company is an “equity investment” which was established in 2012 to install and operate central alarm systems and provide armed

and unarmed physical and technological security services. Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş., Cengiz Holding A.Ş. and Limak

Holding A.Ş. hold equal shares. As of 31.12.2012 the difference between the acquisition cost and existing equity within the same date

has been accounted for in the income statement as investment profit / loss.


142

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1

KOLİN İNŞAAT TURİZM SANAYİ VE TİCARET A.Ş. VE BAĞLI ORTAKLIKLARI31 ARALIK 2012, 2011 VE 2010 TARİHLERİNDE SONA EREN YILLARA AİT KONSOLİDE MALİ TABLOLARA İLİŞKİN AÇIKLAYICI NOTLAR(Aksi belirtilmedikçe Türk Lirası (TL) olarak)

(*) Land improvements are mainly related to natural gas distribution investments of İzmirgaz and Esgaz and tunnel and road investments

for Akköy’s hydroelectric power plant.

(**) Çanakkale Kolin Hotel is constructed over the leasehold property under a 49 year lease over a period between 2001 and 2050. Kolin

Hotel was constructed as a 5 star hotel with 276 rooms and 600 bed capacity. Kolin Hotel is managed and operated by Kolin İnşaat.

(***) The Group has purchased TL 56,318,639 of machinery and equipment in 2012 to renew its equipments being used in construction

projects locally and internationally and has capitalized from its TL 293,196,077 investments.

(****) As of 31 December 2012, 2011 and 2010, details of construction in progress and advances given are as follows:

Construction in progress 31.12.2012 31.12.2011 31.12.2010

Akköy II Hydroelectric Power Plant (Akköy Enerji) (1) - - 606,716,761 344,562,326 Aladereçam Project (Akköy Enerji) 7,094,644 - - - -Kırıkkale Keskin Prefabricated Factory Construction (Prebeton) 65,841 - - - -Ship and Dock Const. (Sefine Denizcilik) 2,648 2,862,968 37,428,278 Horasan Sokak Main Office (Kolin İnşaat) (2) - - 22,819,935 10,243,221 Tuzla Hotel Construction (Turkol Turizm) 55,903,930 - - - -Berat HEPP and Yaprak HEPP (Albe Enerji) 38,770,765 12,663,894 4,771,884 LNG Import and Gasification Terminal(Etki Liman) 3,228,477 2,681,869 2,540,499 Plaster Factory Investments (Arslanlı Alçı) - - - - 1,891,201 Junction Line Operations Project (Hekimhan) 23,297,090 1,599,085 1,599,085 Iron Production Factory Investment (Hekimhan Demirçelik) - - 3,859,945 - -Soma Thermal Coal Plant (Hidrogen) 286,506 - - - -Natural Gas Coversion Plant (Işıksu) 268,659 - - - -Other 71,333 267,730 457,326

128,989,893 653,472,187 403,493,820

(1) Akköy II Hydroelectric Power Plant has been completed as of 05 July 2012 and has been capitalized in the amount of TL 674 million.

(2) The Company has constructed its headquarters on its own land in Ankara, Gaziosmanpaşa, Horasan Street and has transferred from

construction in progress to lands. Also, the company has purchased reinforced concrete prefabricated factory, administrative buildings,

warehouses and transformers along with land in Gebze Organized Industrial Zone in 2012.

As of 31.12.2012, the Group has insured their construction in progress in the amount of TL 1,573,434,888.



146

31 December 2012, 2011 and 2010, details of construction in progress and advances given are as follows:

Advances given 31.12.2012 31.12.2011 31.12.2010

Akköy II Hydroelectric Power Plant (Akköy) - - 735,954 5,682,274 Aladereçam Project (Akköy Enerji) 53,578 - - - -Ship and Dock Construction (Sefine Denizcilik) - - - - 6,800,734 Gerede Ankara Drinking Water (Kolin İnşaat) - - 68,365,305 - -Kırka Station (Esgaz) 1,106,040 - - - -Junction Line Operations Project (Hekimhan) 18,048,939 - - - -Other - - 110,000 113,921

19,208,557 69,211,259 12,596,929

31 December 2012, 2011 and 2010, the depreciation and amortization charges and insurance amounts of property, plant and equipment

of the Group as of are as follows:

31.12.2012 31.12.2011 31.12.2010

Amortization and depreciation charges:Cost of sales 136,034,649 88,716,399 56,398,474Marketing expenses - - - - 515,191General administrative expenses 11,920,427 9,066,649 9,663,800

147,955,076 97,783,048 66,577,465

Insurance amounts: Buildings 256,961,190 241,987,698 219,014,129Vehicles and trucks 484,091,335 570,457,884 349,095,514Furniture and fixtures 6,385,527 19,015,663 13,701,938

747,438,052 831,461,245 581,811,581

Akköy Enerji A.Ş. has delivered mortgages on current right of construction, future right of construction and right of construction within

the context of mortgage contract amounting EUR 355,000,000 and USD 65,000,000.


13. Goodwill

As of 31.12.2011 goodwill is computed as follows:

Participation Share of Cost ofEquity Percentage Kolin Purchase Goodwill

Esgaz 4,007,908 81.00% 3,246,405 55,743,976 52,497,571İzmirgaz 35,052,542 49.97% 17,515,755 20,731,551 3,215,796Arslanlı Alçı 12,474,496 87.52% 10,917,679 12,700,835 1,783,156Truva 26,998 96.00% 25,918 48,518 22,600Sefine Denizcilik 27,840,634 49.70% 13,836,795 18,036,795 4,200,000Dikili Liman 5,168,826 71.99% 3,721,038 4,369,038 648,000Albe Enerji 5,000,000 96.00% 4,800,000 5,217,720 417,720Uluğ Enerji 21,310,306 33.27% 7,103,435 23,661,665 16,558,230Çamlı Enerji 11,296,147 33.33% 3,765,382 6,666,667 2,901,285Zealand Maxima 10,727,063 49.00% 5,256,261 5,323,630 67,369Zealand Amalia 10,727,045 49.00% 5,256,252 5,323,630 67,378Çatı Genel Hizm. 12,932 60.00% 7,759 629 (7,130)

82,371,975

IFRS 3 (“Business Combinations”) became applicable to business combinations agreed to on or after 31 March 2004. IFRS 3 requires

that goodwill is recognized by the acquirer as an asset from the acquisition date and is initially measured as the excess of the cost of

the business combination over the acquirer’s share of the net fair values of the acquirer’s identifiable assets, liabilities and contingent

liabilities less any impairment.



148

14. Trade Payables

As of 31 December 2012, 2011 and 2010 trade payables were as follows:

31.12.2012 31.12.2011 31.12.2010

Trade payables 294,834,855 306,899,944 201,409,480Trade payables to related parties (note 8) 13,399,570 4,007,994 4,341,734Notes payable 3,998,133 12,688,868 1,598,989Deposits and guarantees given 9,283,022 6,810,187 404,650

321,515,580 330,406,993 207,754,853

Kolin Group Company Esgaz has purchased natural gas from Botaş since its establishment until the end of 2011. In 2012, Esgaz pur-

chased 12% (36,331,441 m3) of natural gas from Naturgaz Enerji A.Ş. and 88% (266,431,845 m3) from Botaş.

TL 47,590,830 (2011: TL 47,669,269; 2010: 4,800,889) of trade payables comprised of the liabilities to Botaş. In January and February

of 2013, 96% of the liability to Botaş has been paid.

15. Other Payables and Expense Accruals

As of 31 December 2012, 2011 and 2010 other payables and accrued expenses were as follows:

Short Term:Advances received (*) 44,816,850 79,357,470 3,571,662Libya Projects loss provision - - - - 6,329,817Due to shareholders and related parties (note 8) 4,090,384 1,662,086 1,196,859Taxes payable 32,370,053 27,680,099 25,217,322Social security premiums payable 3,809,106 5,526,181 1,806,174Due to personnel 8,696,844 6,721,922 3,971,875Expense provision 3,315,578 - - - -EMRA lawsuit and provision for expenses (Esgaz) 160,638 160,638 160,775Rent income accruals 1,526,247 1,315,188 799,634Other 1,345,206 2,674,416 949,113

100,130,906 125,098,000 44,003,231

(*) TL 29.3 million of the advances received were from ongoing construction projects of Kolin Inşaat and TL 7.4 million of planned pro-

duction amount from Akköy Enerji in the Market Financial Settlement Center (MFSC - PMUM) day-ahead market has been accounted

for in advances received.


16. Taxation on Income

The Group is subject to Turkish corporate taxes. Tax legislation in Turkey does not permit a parent company and its subsidiary to file a

consolidated tax return. Therefore, provisions for taxes as reflected in the accompanying consolidated financial statements are calcu-

lated on a separate-entity basis.

The corporation tax rate on the profits for the calendar year 2012 is 20% (2011: 20%, 2010: 20%). Taxable profits are calculated by addi-

tion of tax disallowed expenses to and deduction of tax exemptions (investment income exemption) and deductions (investment incen-

tive deductions) from the profit disclosed in the statutory income. No other taxes are paid unless profits are distributed.

Advance (prepaid) corporation taxes are payable on quarterly profits at the rate of 20% (2011: 20%, 2010: 20%). Such taxes after de-

duction of the taxes prepaid quarterly must be declared by the 14th of the second month following any tax period and paid by the 17th.

Advance corporation tax may be offset against others debts to the government.

Dividends paid to non-resident corporations which have a place of business in Turkey or resident corporations are not subject to with-

holding tax. Otherwise, dividends paid are subject to withholding tax at the rate of 15%. An increase in capital via issuing bonus shares

is not considered as a profit distribution and thus does not incur withholding tax.

Tax losses that are reported in the Corporation Tax return can be carried forward and deducted from the corporation tax base for a maxi-

mum of five consecutive years.

In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns within the 25th

of the fourth month following the close of the related financial year. Tax returns are open for five years from the beginning of the year

that follows the date of filing during which time the tax authorities have the right to audit tax returns, and the related accounting records

on which they are based, and may issue re-assessments based on their findings.



150

The tax liabilities included in the accompanying financial statements comprised of the following:

31.12.2012 31.12.2011 31.12.2010

Balance Sheet:Current period corporation tax provision 19,617,691 23,433,092 42,220,098

Balance sheet tax provision 19,617,691 23,433,092 42,220,098

Deferred tax asset 5,959,830 5,264,485 3,352,884Deferred tax liabilities (37,684,286) (37,081,352) (48,953,084)

Income Statement:Current period corporation tax provision (19,617,691) (23,433,092) (42,220,098)Deferred tax asset / (liability) 92,411 13,783,333 (7,882,406)

(19,525,280) (9,649,761) (50,102,504)

Deferred tax

The Group recognizes deferred tax assets and liabilities based upon the temporary differences between its financial statements as re-

ported in accordance with IFRS and its statutory tax financial statements. These differences usually result in the recognition of revenue

and expenses in different reporting periods for IFRS and tax purposes.

Tax rates used for deferred tax assets and liabilities calculated on temporary differences that are expected to be realized or settled based

on the taxable income in coming years under the liability method is 10% (2011: 20%; 2010: 20%). The tax rate of 10% is estimated as

effective tax rate for 2012 and 2011.

The breakdown of cumulative temporary differences and the resulting deferred tax assets / (liabilities) are as follows:

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152

17. Reserve for Employee Termination Benefits

In accordance with existing social legislation in Turkey, the Group and its subsidiaries incorporated in Turkey are required to make lump-

sum termination indemnities to each employee who has completed one year of service with the Group, and whose employment is

terminated due to retirement or for reasons other than resignation or misconduct.

In Turkey, such payments are calculated on the basis of 30 days’ pay. As of 31.12.2012, the payments are limited to a maximum of

TL 3,033.98 per year of employment at the rate of pay applicable at the date of retirement or termination. (31.12.2011: TL 2,371.85;

31.12.2010: TL 2,517 respectively) Such payments are not required to be funded; therefore, no fund is reserved for such payments in

the accompanying financial statements.

In the accompanying consolidated financial statements, according to revised version of IAS 19 (‘’Employee Benefits’’), the Group reflect-

ed a liability for termination benefits based upon factors derived using their experience of personnel terminating their services and being

eligible to receive retirement pay and discounted to present value at the balance sheet date by using average market yield, expected

inflation rates and an appropriate discount rate.

Reserves at balance sheet date was calculated with real discount ratio as approximately 4.66% on the assumption of annual 5.20% infla-

tion rate and 10% discount rate (31.12.2011: by order of 4.66%, 5.10% and 10%; 31.12.2010 by order of: 6.26%, 5% and 12%). Pro-

jected ratio of unpaid severance amounts which will remain for the Group as a result of arbitrary severances has been considered also.


18. Financial Liabilities

As of 31 December 2012, 2011 and 2010 financial liabilities were as follows:

31.12.2012 31.12.2011 31.12.2010

Short term bank loans 112,237,635 18,261,903 5,797,467Short term portion of long term borrowings 172,367,678 161,730,263 60,122,303Short term financial leases 39,456,465 14,640,522 3,593,429Interest expense accruals 16,445,993 25,163,523 7,885,465Credit card debts 27,309 10,489 - -

Total short term financial liabilities 340,535,080 219,806,700 77,398,664

Reclassified long term financial liabilities (*) - - 153,165,500 - -Long term financial liabilities 907,972,533 711,058,337 489,131,141Long term financial leases 46,326,012 16,126,859 10,244,145

Total long term financial liabilities 954,298,545 880,350,696 499,375,286

Total financial liabilities 1,294,833,625 1,100,157,396 576,773,950

(*) These bank loans are basically obtained in connection with construction and contracting activities carried out under investment incen-

tive certificates and financing Group company’s projects. Based on agreements made with creditor banks (written or nor written) the

repayment of the loans will be made by discharge of progress billings realized over the investment periods and the projects financing

incomes. The maturity dates of the loans may be revised subject to extensions made in the investment completion periods according to

the status of the uncompleted construction works. Although in legal form reclassified bank loans are short term, they are, in economic

substance revolving long term loans. Accordingly they are classified under non-current borrowings.

In consideration of loans taken from banks;

- Kolin İnşaat has given surety ship for bank loans borrowed by Kolin Group companies. As of 31.12.2012 total amount of surety ship

given by Kolin İnşaat was TL 41,686,015, EUR 278,446,610 and USD 260,386,557.

- Akköy Enerji A.Ş. has delivered mortgages on current right of construction, future right of construction and right of construction within

the context of mortgage contract amounting EUR 355,000,000 and USD 65,000,000(As of 31.12.2012, Akköy Enerji’s bank loans were

EUR 231,856,383 and USD 17,695,001).

- Capital shares owned by the shareholders, have been put in pledge in favour the banks.. Additionally, the trade receivables arising from

productions have been pledged (with the requirement to obtain the approval of the borrowers).


154

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Repayment schedule of long-term and short-term financial liabilities as of 31.12.2012 were as follows:

31.12.2012

Payable in 2013 340,535,080Payable in 2014 428,748,984Payable in 2015 176,791,061Payable in 2016 133,910,250Payable in 2017 130,537,114Payable in 2018 24,811,422Payable in 2019 24,811,422Payable in 2020 18,878,706Payable in 2021 11,394,176Payable in 2022 4,415,410

1,294,833,625

19. Deposits and Guarantees Received

As of 31 December 2012, 2011 and 2010 deposits and guarantees received were as follows:

31.12.2012 31.12.2011 31.12.2010

Deposits and guarantees received (*) 137,685,772 97,561,779 61,720,280

137,685,772 97,561,779 61,720,280

(*) Deposits and guarantees received consists of the returns of deposits received as security from registered consumers of the equity

participations Esgaz and İzmirgaz, which are included in the consolidated financial statements. According to the committee ruling ad-

opted by EMRA, depending on the intended use; a deposit of TL 375 (2011: TL 287; 2010: TL 260) is received for boiler, housing and

heater; TL 70 (2011: TL 70; 2010: TL 51) is received for burner or flash heater from each registered consumer.



156

20. Advances Received

31.12.2012 31.12.2011 31.12.2010

Long term advances received (*) 50,256,513 13,995,664 30,139,506

50,256,513 13,995,664 30,139,506

(*) The amount is comprised of the long term advances received for construction and repair of ships which are followed in construction in

progress account by the group company Sefine Denizcilik Tersanecilik Turizm Sanayi ve Ticaret A.Ş. which was included in consolidated

for the first time in 2009.

Advances received in the amount of TL 16,035,406 is comprised of construction advances received by Salini Kolin GCF Joint Venture

from the Prime Ministry Undersecretariat of Treasury Central Finance and Contracts Unit for the construction of Ankara İstanbul high

speed train line Gebze Köseköy section project.

21. Commitments and Contingencies

a) As of report date based on the representation obtained from the Group’s legal counsel there are certain lawsuits opened on behalf of

the Group of TL 20,419,823 and against the Group of TL 13,264,398. TL 1,156,000 of the lawsuits filed against the Group consists of

the total amount of moral and material lawsuits against İzmirgaz for damages caused by the natural gas explosion. As of report date, the

ultimate outcome of these lawsuits cannot be determined.

b) As of 31.12.2012, letters of guarantee and other guarantees given by the Group to various institutions amounted to TL 468,509,465;

USD 421,402,169 and EUR 67,576,913.

c) Kolin İnşaat gave surety ship to the Group for its bank loans. As of 31.12.2012, total amount of surety ship was TL 245,232,691, EUR

297,958,874, USD 479,087,612 and JPY 47,710,000.

d) Akköy Enerji A.Ş. has delivered mortgages on current right of construction, future right of construction and right of construction within

the context of mortgage contract amounting EUR 355,000,000 and USD 65,000,000.

e) As of 31.12.2012, the Group’s open letter of credit amounted to USD 42,597,558.


22. Share Capital

As of 31.12.2012 Share capital of the Company is comprised of 20,000 shares of par value TL 1,000 each.

31.12.2012 31.12.2011 31.12.2010% Amount % Amount % Amount

Kolsan İnşaat Otomotiv Sanayi Ticaret AŞ 32.86 6,572,000 32.86 6,572,000 32.86 6,572,000 Güzin Koloğlu 7.92 1,584,000 7.92 1,584,000 7.92 1,584,000 Veysi Akın Koloğlu 15.85 3,170,000 15.85 3,170,000 15.85 3,170,000 Mukadder Koloğlu 9.14 1,828,000 9.14 1,828,000 9.14 1,828,000 Celal Koloğlu 15.85 3,170,000 15.85 3,170,000 15.85 3,170,000 Naci Koloğlu 6.71 1,342,000 6.71 1,342,000 6.71 1,342,000 Necla Doğan 0.80 160,000 0.80 160,000 0.80 160,000 Tamer Doğan 0.80 160,000 0.80 160,000 0.80 160,000 Şebnem Doğan 0.80 160,000 0.80 160,000 0.80 160,000 Alper Doğan 0.80 160,000 0.80 160,000 0.80 160,000 Mustafa Kemal Koloğlu 1.63 326,000 1.63 326,000 1.63 326,000 Hayriye Deniz Koloğlu 3.42 684,000 3.42 684,000 3.42 684,000 Demet Moğolkoç 3.42 684,000 3.42 684,000 3.42 684,000

Nominal capital 100 20,000,000 100 20,000,000 100 20,000,000

Inflation adjustment effect 22,700,815 22,700,815 22,700,815

Share capital 42,700,815 42,700,815 42,700,815

23. General Reserves

General reserves comprise prior years’ undistributed income and legal reserves.

The legal reserves are appropriated in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of statu-

tory profits at the rate of 5% per annum, until the total reserve reaches 20 % of the paid-in share capital. The second legal reserve is

appropriated at the rate of 10% per annum of all cash distributions in excess of 5% of the paid-in share capital. The legal reserves are

not available for distribution unless they exceed 50% of the paid-in share capital but may be used to offset losses in the event that the

general reserve is exhausted.

Undistributed retained earnings are available for distribution. However; if this reserve is distributed as dividends, a further legal reserve

is required to be provided equal to 10% of dividend declared.



158

24. Minority Interest

Shares attributable to third parties in the shareholders’ equity (including approved and paid-in capital) of the consolidated subsidiaries,

which are not fully owned, are separately accounted for as “Minority Interest” in the consolidated financial statements by reducing from

related shareholders’ equity components.

Shares attributable to third parties in the net profit or loss for the periods of the consolidated subsidiaries, which are not fully owned, are

separately accounted for as minority interests, in the distribution of period profit / (loss) section of the consolidated statement of income.

As of 31 December 2012, 2011 and 2010 the movement of the minority interest is as follows:

31.12.2010 Minority Interest 7,488,368

Subsidiaries capital increase 28,367,359 Dividend paid (2,204,900)Effect of share rate change in subsidiary (205,358)Minority share capital of the companies’ included in consolidation in 2011

-Hekimhan Madencilik 105,883 Corporate tax amendments 96,901 Effect of law numbered 6111 (322,084)Minority interest on operating results of the period profit / (loss) (29,980,293)


Subsidiaries capital increase 3,998,000 Dividend paid (1,624,725)Effect of share rate change in subsidiary - -Minority share capital of the companies’ included in consolidation in 2012

-Turkol Turizm 13,610,000 -Özege 5,000 -Çatı Hizmetleri 3,056

Minority general reserves of the companies’ included in consolidation in 2012-Turkol Turizm (9,328)-Çatı Hizmetleri (1,677)

Minority interest on operating results of the period profit / (loss) 20,729,318



25. Sales

As of 31 December 2012, 2011 ve 2010 sales were as follows:

31.12.2012 31.12.2011 31.12.2010

Construction revenue 1,301,618,966 1,117,995,665 712,660,300Energy distribution income 721,893,787 494,870,123 369,931,007Port revenue 30,208,501 22,100,789 11,630,051Iron mining income 12,315,793 5,149,598 2,453,576Plaster, iron and steel production income 38,752,669 27,302,574 19,452,209Restaurant income 2,482,538 1,634,486 982,286Chemical fertilizer and seed import income 187,681,838 120,088,808 44,087,513Dockyard & shipbuilding income 116,970,200 103,489,101 25,471,197Infrastructure investment and oil shipping income 55,075,936 15,166,505 1,033,333

2,467,000,228 1,907,797,649 1,187,701,472

26. Supplementary Disclosures on Financial Instruments

(a) Capital management policies and procedures

The risk related with each of the capital class and group capital cost is considered by the top management of the Group.

The primary objective of the Group’s capital management objectives is to ensure that it maintains a healthy capital structure in order to

support its business and maximize shareholder value. The Group manages its capital structure and makes adjustments to it in the light

of changes in economic conditions.

To maintain or adjust the capital structure, the Group may obtain new loans, repay existing loans; make cash and non cash (bonus shares)

dividend payments to shareholders, issue new shares based on Management’s evaluation.

The Group manages the capital structure so as to ensure the Group’s ability to continue as a going concern; and maximize its profitability

by maintaining an adequate capital to overall financing structure ratio.

The Group monitors capital using a gearing ratio, which is net financial debt divided by total financing used. The Group includes within

net financial debt, borrowings, trade letters of credit, less cash and cash equivalents. Financing used is the sum of total equity and net

financial debt.



160

The following table sets out the gearing ratios as of 31.12.2012, 2011 and 2010:

31.12.2012 31.12.2011 31.12.2010

Total financial liabilities 1,294,833,625 1,100,157,396 576,773,950Less: Cash and cash equivalents (250,218,237) (302,323,462) (219,888,262)Net financial debt 1,044,615,388 797,833,934 356,885,688Total equity 728,763,569 652,289,342 584,356,532Total financing used 1,773,378,957 1,450,123,276 941,242,220

%59 %55 %38

(b) Market risk

The Group is exposed to financial risks arising from changes in currency rate (paragraph c), interest rate (paragraph d) and price risk

(paragraph e) which arise directly from its operations.

(c) Foreign currency risk

The Group may have transactional currency exposure from foreign currency denominated transactions.

The Group is exposed to foreign currency risk arising from the translation of foreign currency denominated assets and liabilities to Turk-

ish Lira. The foreign currency denominated assets and liabilities mainly include overseas construction incomes, bank deposits, trade

receivables, trade payables and bank borrowings.

(d) Interest rate risk management

The Group is exposed to interest rate risk through the impact of rate changes on interest bearing liabilities. The majority of the Group’s

financial obligations consist of fixed and variable interest rate borrowings. However, the Group has fixed the interest rate of bank loans

in 2012, therefore, the risk of interest rate is minimized.

(e) Price risk

The Group may be exposed to price risk arising from decreases in prices. This is a combination of currency, interest and market risks

which the Group manages through natural hedges that arise from offsetting the same currency receivables and payables, interest bear-

ing assets and liabilities. Although export sales invoices are issued in TL, sales prices are fixed in foreign currency. Market risk is closely

monitored by the management using the available market information and appropriate valuation methods.


(f) Credit risk management

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a finan-

cial loss. The Group attempts to control credit risk by monitoring credit exposures, limiting transactions with specific counter-parties and

continually assessing the creditworthiness of the counterparties. The Group monitors credit risks by establishing credit limits for each

customer who wish to trade on credit terms and obtaining sufficient collateral. Trade receivables are evaluated by management in the

light of the Group’s procedure and policies and are carried in the balance sheet net of impairment provision.

(g) Liquidity risk management

Liquidity risk is the risk that an entity will be unable to meet its net funding requirements. The Group manages its liquidity needs by regu-

larly planning its cash flows or by maintaining sufficient funds and borrowing sources by matching the maturities of liabilities and assets.

Prudent liquidity risk management implies maintaining sufficient cash, securing availability of funding through an adequate amount of

committed credit facilities and the ability to close out market positions. The risk is mitigated by matching the cash in and out flow volume

supported by committed lending limits from qualified credit institutions.

(h) Fair values

Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than

in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists. The estimated fair values of financial in-

struments have been determined by the Group using available market information and appropriate valuation methodologies. However,

judgment is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not

necessarily indicative of the amounts the Group could realize in a current market exchange.

The following methods and assumptions were used to estimate the fair value of the financial instruments for which it is practicable to

estimate fair value:

i) Financial Assets: The fair values of certain financial assets carried at cost in the consolidated financial statements, including cash and

cash equivalents plus the respective accrued interest and other financial assets are considered to approximate their respective carrying

values due to their short-term nature and negligible credit losses. The carrying value of trade receivables along with the related allowance

for unearned income and uncollectibility are estimated to be their fair values. The financial assets which are denominated in foreign cur-

rencies are evaluated by the foreign exchange rates prevailing on the date of balance sheet which approximate to market rates.

ii) Financial Liabilities: Trade payables and other monetary liabilities are considered to approximate their respective carrying values due to

their short-term nature. The bank borrowings are stated at their amortized costs and transaction costs are included in the initial measure-

ment of loans and bank borrowings. The fair value of bank borrowings are considered to state their respective carrying values since the

interest rate applied to bank loans and borrowings are updated periodically by the lender to reflect active market price quotations. The

carrying value of trade payables along with the related allowance for unrealized cost is estimated to be their fair values. The financial li-

abilities which are denominated in foreign currencies are evaluated by the foreign exchange rates prevailing on the date of balance sheet

which approximate to market rates.


162

CONSTRUCTION - CONTRACTINGKOLİN CONSTRUCTION TOURISM INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 14 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00 - 459 30 00Fax : +90 (312) 446 24 80Web : www.kolin.com.tre-mail : [email protected]

KOLİN OSTİM / MACHINERY SUPPLIES Address:AnadoluBulvarıÇamlıcaMah.15.Sok.No:5/3Atlasİş MerkeziGimat/AnkaraPhone : +90 (312) 397 87 96 - 397 87 97Fax : +90 (312) 397 87 74

İSTANBUL OFFICES Address:YapıKrediPlazaCBlok8/2234330Levent/İstanbulPhone : +90 (212) 281 50 55Fax : +90 (212) 281 50 10

KOLSAN CONSTRUCTION AND AUTOMOTIVE INDUSTRY AND TRADE INC. Head Office Address : Horasan Sok. No: 28/9 06700 G.O.P. / AnkaraPhone : +90 (312) 446 88 48Fax : +90 (312) 446 55 66Web : www.kolsansanayi.com.tre-mail : [email protected]

Kolsan Sarayköy / Tunnel - Type Drainage Pipes Address:Ankara-İstanbulDevletYolu28.Km Sarayköy-Kazan/AnkaraPhone : +90 (312) 815 44 89 - 815 40 35Fax : +90 (312) 815 44 90e-mail : [email protected]

Kolsan Ready - Mixed Concrete Afyon Office Address:MarulcuMah.YeşilYolCad.HuzurApt.No:2/1 AfyonkarahisarPhone : +90 (272) 241 06 62Fax : +90 (272) 214 93 25e-mail : [email protected]

Afyon Concrete Mixing Plant Address:Afyon-KonyaDevletYolu13.KmAfyonkarahisarPhone : +90 (272) 214 93 24Fax : +90 (272) 214 93 25e-mail : [email protected]

Artvin Concrete Mixing Plant Address:Artvin-ErzurumKarayolu55.Km2.KısımYolİnş.DikmenliKöyüMevkiArtvinPhone : +90 (466) 232 20 18Fax : +90 (466) 232 20 08e-mail : [email protected]

MURTEZAOĞLU INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 77 90 - 447 77 89Fax : +90 (312) 446 40 52

ARMİN ELECTRICITY CONSTRUCTION INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 28/4-5 06700 G.O.P. / AnkaraPhone : +90 (312) 447 54 60Fax : +90 (312) 447 54 68Web : www.armin.com.tre-mail : [email protected]

GEOMED GEOTECHNICAL CONSULTANCY, RESEARCH, AUDIT AND TRADE INC. Address : Horasan Sok. No: 28/1 06700 G.O.P. / AnkaraPhone : +90 (312) 447 57 90Fax : +90 (312) 447 39 30Web : www.geomed.com.tre-mail : [email protected]

PREBETON PREFABRICATED ELEMENT AND READY - MIXED CONCRETE INC. Address:BozovaŞanlıurfaYolu,2.Km.Bozova/ŞanlıurfaPhone : +90 (414) 711 58 37Fax : +90 (414) 711 58 90Web : www.prebeton.com.tre-mail : [email protected] - [email protected] - [email protected]

KOBİN CONSTRUCTION INC. Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

KOLİN OFFICES ABROADLIBYA / TRIPOLI OFFICE Address:HayAl-AndulasDistrict2,IbnAbdohRabbehStreet, BuildingNo:375-P.O.Box6549Tripoli/LibyaPhone : (+218) 214 772 831Fax : (+218) 214 780 267e-mail : [email protected]

AZERBAIJAN / BAKÜ OFFICE Address:BaküŞeheriAfyeddinCelilovKüçesi20. 17Mertebe/AzerbaycanPhone : (+99) 412 496 58 19Fax : (+99) 412 496 58 20

UGANDA / KAMPALA OFFICE Address:MalcomXAvenue,Plot:44,-EastKololoP.O.Box31663 Kampala/UgandaPhone : (+256) 41 424 71 02Fax : (+256) 41 425 71 09Web : www.kolin.co.uge-mail : [email protected]

ENERGYİZMİRGAZ NATURAL GAS DISTRIBUTION INC. Head Office Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80Web :www.izmirgaz.com.tr

General Directorate Address:2821Sok.No:94/FEskiOtogarKarşısı35110 Halkapınar/İzmirPhone : +90 (232) 449 39 39Fax : +90 (232) 449 50 50Web :www.izmirgaz.com.tre-mail :[email protected]

ESGAZ ESKİŞEHİR NATURAL GAS DISTRIBUTION INC. Head OfficeAddress : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80Web :www.esgaz.com.tr

General Directorate Address:HoşnudiyeMah.İsmetİnönü-1Cad.No:13126130 Tepebaşı/EskişehirPhone : +90 (222) 330 00 00Fax : +90 (222) 330 48 58Web :www.esgaz.com.tre-mail :[email protected]

NATURGAZ NATURAL GAS IMPORT AND EXPORT INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 16/3 06700 G.O.P. / AnkaraPhone : +90 (312) 446 57 10Fax : +90 (312) 446 57 90Web :www.naturgaz.com.tr

ETKİ PORT OPERATIONS NATURAL GAS IMPORT AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

AKKÖY ENERGY INC. Address : Horasan Sok. No: 16/3 06700 G.O.P. / AnkaraPhone : +90 (312) 447 40 16 - 446 53 66Fax : +90 (312) 447 39 88Web : www.akkoy.com.tr

IŞIKSU ENERGY PRODUCTION AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80


164

SERVER ENERGY AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 20

ULUDAĞ ELECTRICITY DISTRIBUTION INC. General Directorate Address:UlubatlıHasanBulvarıStadCad.MerinosKavşağı No:4016050Osmangazi/BursaPhone : +90 (224) 271 65 37Fax : +90 (224) 271 65 00Web : www.uedas.com.tr

ULUĞ ENERGY DISTRIBUTION AND RETAIL TRADE SERVICE INC. Address : Hafta Sok. No: 9 G.O.P. / AnkaraPhone : +90 (312) 446 88 00Fax : +90 (312) 446 88 10

ULUDAG ELECTRİC RETAIL INC.Address : Hafta Sok. No: 9 G.O.P. / AnkaraPhone : +90 (312) 446 88 00Fax : +90 (312) 446 88 10

ÇAMLI ENERGY DISTRIBUTION AND RETAIL TRADE SERVICE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

ÇAMLIBEL ELECTRICITY DISRIBUTION INC. / ÇEDAŞ Head Office Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

General Directorate Address:YeşilyurtMah.ErzincanKarayolu1.Km58000 Merkez/SivasPhone : +90 (346) 215 08 10 - 15Fax : +90 (346) 215 08 00Web : www.cedas.com.tr

ÇAMLIBEL ELECTRIC RETAIL INC.Address : Horasan Sok. No: 14 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

TRUVA CONSTRUCTION INDUSTRY AND TRADE INC.Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

ENO PARTNERSHIP OF ENERGY ELECTRICITY WHOLESALE INC. Address : Hafta Sok. No: 9 G.O.P. / AnkaraPhone : +90 (312) 448 02 50Fax : +90 (312) 448 02 52

ALBE ENERGY ELECTRICITY, ELECTRONICS CONSULTANCY, PETROL, MINING, AGRICULTURE, ANIMAL HUSBANDRY, INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

ATLAS MACHINERY INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 446 88 48 - 447 17 00Fax : +90 (312) 446 55 66

HİDRO-GEN ENERGY EXPORT AND IMPORT DISTRIBUTION AND TRADE INC. Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 55 66

KOLEN ELECTRICAL ENERGY PRODUCTION AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

ANC ENERGY PRODUCTION AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

SAMSUN ELECTRIC PROD. AND TRADING INC.Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

ZAFİR ELECTRIC PROD. AND TRADING INC.Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

PORT & SHIPYARD OPERATIONSÇANAKKALE PORT OPERATIONS INC. Address:CumhuriyetMah.SahilYoluCad.No:9417110 Kepez/ÇanakkalePhone : +90 (286) 263 55 00Fax : +90 (286) 263 08 08 - 05 62Web : www.portofcanakkale.come-mail : [email protected]

DİKİLİ PORT AND TOURISM OPERATIONS TRADE INC. Head Office Address:AtatürkCad.No:1135980Dikili/İzmirPhone : +90 (232) 671 44 00Fax : +90 (232) 671 20 29Web : www.portofdikili.come-mail : [email protected]

TEOS MARİNA OPERATION AND TRADE INC. Head Office Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80Marina Address:SığacıkMah.AkkumCad.No:435460 Seferihisar/İzmirPhone : +90 (232) 745 80 80 (pbx)Fax : +90 (232) 745 72 14Web : www.teosmarina.come-mail : [email protected] SEFİNE SHIPYARD Address:HersekMah.KumlukMevkiiNo:177700 Altınova/YalovaPhone : +90 (226) 815 36 36Fax : +90 (226) 815 36 37Web : www.sefine.com.tre-mail : [email protected] - [email protected]

KOLMAR MARİNA INVESTMENT CO. LTD. Address:OldBakeryStreetVLT1455Valetta/Malta

MININGHEKİMHAN MINING INC. Head Office Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80Web : www.hekimhanmadencilik.com.tre-mail : madenhekimhan@ hekimhanmadencilik.com.tr

Operation Office Address:MimarSinanMah.İstasyonCad.No:65 Hekimhan/MalatyaPhone : +90 (422) 713 10 77Fax : +90 (422) 713 10 78

INDUSTRYARSLANLI PLASTER RAW MATERIALS INDUSTRY TRADE INC. Address:3.OrganizeSanayiBölgesiYazıkonak/ElazığPhone : +90 (424) 255 55 05Fax : +90 (424) 255 58 68Web : www.aralci.come-mail : [email protected]

HEKİMHAN IRON STEEL MINING MANUFACTURE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

İNKOL CONSTRUCTION ENERGY INDUSTRY AND TRADE INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

Factory Address:VakıfMah.TrenİstasyonuYanı03700 Çay/AfyonkarahisarPhone : +90 (272) 631 27 54Fax : +90 (272) 632 49 53

SİVAS TRAVERS MANUFACTURE IND. AND TRADE INC. Address : Horasan Sok. No: 28/9 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00 - 459 30 00Fax : +90 (312) 446 24 80


166

TOURISM - SERVICEÇANAKKALE KOLİN HOTEL Address:BoğazkentMevkiiKepez/ÇanakkalePhone : +90 (286) 218 08 08Fax : +90 (286) 218 08 00Web : www.kolinhotel.com.tre-mail : [email protected]

KÖŞEM CONTRACTING TRADE FOOD MATERIAL IMPORT TOURISM INDUSTRY LTD. INC. (KÖŞEBAŞI RESTAURANT) Address:KazımÖzalpMah.KuleliSok.No:32G.O.P./AnkaraPhone : +90 (312) 446 59 59Fax : +90 (312) 437 70 40Web : www.kosebasi.com.tr

PARK FORA ANKARA TOURISM INDUSTRY AND TRADE LTD. INC. Address:NenehatunCad.No:9706700G.O.P./AnkaraPhone : +90 (312) 447 73 00 (pbx)Fax : +90 (312) 447 73 32Web : www.parkfora.come-mail : [email protected]

ŞİŞMAN TOURISM CONSTRUCTION INDUSTRY AND TRADE LTD. INC. Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

WASHINGTON RESTAURANT OPERATION Address:DoyuranSok.No:5/706420KaleiçiUlus/AnkaraPhone : +90 (312) 311 43 44 - 324 59 59Fax : +90 (312) 310 14 72Web : www.washingtonrestaurant.com.tre-mail : [email protected]

GAZBİL COMMUNICATION TECHNOLOGIES INDUSTRY AND TRADING LTD INC. Head OfficeAddress : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80Web :www.gazbil.come-mail :[email protected]

KA INSURANCE INTERMEDIATE SERVICES LTD. INC. Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 436 29 26Fax : +90 (312) 436 29 27Web : www.kasigorta.com.tre-mail : [email protected]

AKKOL CATERING INDUSTRY AND TRADE INC.Address :FerhatpaşaMah.AkdalSok.No:534888Ataşehir/İstanbulPhone : +90 (216) 661 66 00Fax : +90 (216) 661 66 03 - 661 03 88Web : www.akkol.com.tre-mail : [email protected]

AKKOL PARK FOOD AND BEVERAGE SERVICES INC.Address:FerhatpaşaMah.AkdalSok.No:534888 Ataşehir/İstanbulPhone : +90 (216) 661 66 00Fax : +90 (216) 661 66 03 - 661 03 88Web : www.akkol.com.tre-mail : [email protected]

AKKOL TAT FOOD AND BEVERAGE SERVICES AND TRADE INC.Address:FerhatpaşaMah.AkdalSok.No:534888 Ataşehir/İstanbulPhone : +90 (216) 661 66 00Fax : +90 (216) 661 66 03 - 661 03 88Web : www.akkol.com.tre-mail : [email protected]

TURKOL TOURISM INDUSTRY AND TRADE INC.Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

KİPLASMA INDUSTRIAL WASTE INTEGRATED DISPOSAL INDUSTRY AND TRADE INC.Address :KuşbakışıCad.No:29BBlokAltunizade-Üsküdar/İstanbulPhone : +90 (216) 651 49 00Fax : +90 (216) 474 91 92Web : www.kiplasma.come-mail : [email protected]

SU INFORMATION TECHNOLOGIES INDUSTRY AND TRADING CO. LTDAddress : Horasan Sok. No: 16/1 06700 G.O.P. / AnkaraPhone : +90 (312) 437 33 50Fax : +90 (312) 437 33 60Web : www.subilgi.com.tre-mail : [email protected]

YENİÇERİ PRIVATE SECURITY SERVICES INC.Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 448 02 50 - 448 02 51Fax : +90 (312) 448 02 52

ÖZEGE ADVERTISEMENT OFFICE SERVICES CLEANING AND FOOD TRADING INC.Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

ÇATI GENERAL SERVİCES TRADING INC.Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

FİLOKUR RENTAL SERVICES AND TRADING INC.Address : Horasan Sok. No: 26 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

TRADEKOLTAR AGRICULTURE IMPORT EXPORT AND TRADE INC.Address : Horasan Sok. No: 28/3 06700 G.O.P. / AnkaraPhone : +90 (312) 447 44 07 - 447 44 72 - 447 44 18Fax : +90 (312) 447 44 27Web : www.koltar.com

EFES TRANSPORT INDUSTRY AND TRADE INC.Address : Horasan Sok. No: 24 06700 G.O.P. / AnkaraPhone : +90 (312) 447 17 00Fax : +90 (312) 446 24 80

KOLPAŞ IMPORT AND EXPORT AND TRADE INC.Head OfficeAddress : Horasan Sok. No: 28/9 06700 G.O.P. / AnkaraPhone : +90 (312) 447 05 53Fax : +90 (312) 446 55 66

Branch OfficeAddress:AnadoluBulvarıÇamlıcaMah.147.Sok.No:5/1 AtlasİşMerkezi06370Ostim/AnkaraPhone : +90 (312) 397 87 93 - 397 87 94 Fax : +90 (312) 397 87 95Web : www.kolpas.com.tre-mail : [email protected]


168

NOTES

KOLİN CONSTRUCTION TOURISM INDUSTRY AND TRADE INC.

Horasan Sokak No: 14 G.O.P. 06700 AnkaraPhone: +90 0312 447 17 00 pbx Fax: +90 0312 446 24 80

Web: www.kolin.com.trE-mail: [email protected]

kolİn group of companies

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