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CEO of OYAK Turkey

CEO INSIGHT

OYAK: The first and only private supplementary occupational pension fund in Turkey

OYAK is the first and only private “supplementary occupational pension fund” in Turkey. It is also a leading conglomerate with strategic investments in profitable growth sectors. Hence, it can be seen as a unique pension fund cum private equity fund which is a rarity in the world. It was established in 1961 by a parliamentary statute and is currently the only, pioneering institution of its kind in Turkey, all other similar occupational pension funds having ceased operation long time ago.

Under its Retirement Pension System, OYAK provides its Permanent Members with retirement, death, and disability benefits as well as a range of voluntary options. OYAK also provides its Temporary Members with death and disability benefits against the payment of premiums during the term of their membership. Under OYAK’s charter, members of the Turkish Armed Forces on active duty and participants in the Retirement Pension System qualify as Permanent Members while reserve officers are Temporary Members.

Incorporated as a private-sector entity under its own governing statute and subject to Turkish civil and commercial law, OYAK has 280,573 members and employs a workforce of approximately 28,000 people as of the year end of 2013.

OYAK: One of the three largest and most profitable conglomerates in Turkey

One of the three largest and most profitable conglomerates in Turkey, OYAK plays a key role in the Turkish economy.

Over the years, bold and timely decisions and steps have transformed OYAK into a conglomerate that invests in major industrial concerns not just in Turkey but across the World. Today the OYAK Group has undertakings in sectors ranging from iron & steel, cement, automotive, and chemicals to energy, from logistics and mining to agricultural chemicals, food-processing, and technology. Besides leveraging OYAK’s own strength, these ventures that are leaders in their respective sectors, also make important contributions to the Turkish economy.

OYAK’s 2006 acquisition of then recently-privatized ERDEMİR Group companies made it the largest steel- maker in Turkey and the 3rd largest in the European Union (EU) as measured by capacity.

OYAK is one of the biggest players in construction materials in Turkey, leading the market with a more than 14% share of the cement and concrete sector.

Working in partnership with Renault since the 1970s, OYAK manufactures, exports, and distributes Renault

branded vehicles. OYAK-Renault controls the biggest share of passenger vehicle sales in Turkey.

Through its partnership with Evonik Steag, the fifth-largest power company in Germany, OYAK controls a 49% stake in a 1,320 MW power plant that supplies about 5% of Turkey’s electrical power. OYAK is also currently working on a project of a 625 MW power plant in partnership with AES, a US-based energy group.

In line with its strategy to expand its international footprint in chemicals, OYAK has become the global leader in PVC stabilizers thanks to two recent acquisitions: Akdeniz Kimya (Turkey) and Chemson Group (Austria). The Chemson Group currently has operations in Australia, Austria, Brazil, China, Germany, UK, and USA .

OYAK diversifies its exposure to geographical and other risks by undertaking major, complementary industrial investments abroad that dovetail with its investments at home while also expanding and reinforcing its revenue base.

OYAK’s ownership of Chemson US gives the OYAK Group its first foothold in the US market. The Group intends to enlarge its presence there through capacity expansion and organic growth while also exploring and exploiting other acquisition opportunities. However, this strategy is not confined solely

to chemicals: OYAK is presently looking into a number of possible asset portfolio acquisitions in the US. Mainly in manufacturing, energy, and infrastructure, these potential acquisitions entail multiple production facilities located across the entire USA.

OYAK Group 2013 consolidated results

Consolidated revenues : TRY 17.6 billion Consolidated assets : TRY 42.3 billion Total tax paid

: TRY 3.4 billion Total exports worth : USD 4.4 billion

OYAK: Focused on present and future growth

In 2013 OYAK booked consolidated revenues of TRY 17.6 billion (~ USD 9.3 billion), an EBITDA of TRY 3.6 billion (~ USD 1.9 billion), and assets of TRY 42.3 billion (~ USD 19.8 billion).

In May of 2013, S&P Ratings Services raised OYAK’s long-term corporate credit rating to “BBB-” (Stable) that is one notch higher than the Sovereign while Moody’s boosted its long-term credit rating to “Baa3” (Stable). Both ratings put OYAK in the “investment- grade” category.

Over the last fourteen years, OYAK has been proactively focusing on growth not just today but tomorrow as well as it advances into the future. A talent for insightfully spotting and making the best possible use of market opportunities has enabled the

COSKUN ULUSOY, Ph.D.

FINANCE MONTHLY CEO AWARDS 2014

Coskun Ulusoy - CEO of OYAK I 34 www.finance-monthly.com