Corporate Overview 2014 Table of Contents Koç Group Arçelik A.Ş. • At a Glance • Financial Results • Brands, Global Network, Market Position • Technology and Innovation • Awards and Achievements • Corporate Social Responsibility 2 Koç Group Founded in 1926 Koç Group Turkey’s Largest Investment Holding Company o The only Turkish company in Fortune’s Top 500 Global Company List ranked 341th o 2013 consolidated revenues: USD 34,809 million (2014 H1: USD 14,873 million) o Total combined revenues that make up about 8% of Turkey’s GDP (As of the 2013 year-end) o Exports that make up 10 % of Turkey’s total exports o Total share in BIST Market Capitalization is 16% o The Group consists of over 100 companies in 33 countries o Over 80.000 employees worldwide o Over 11.000 dealers and after-sales services, 968 bank branches in Turkey o 10% of private sector R&D investments o According to Turkish Patent Institute’s 2013 Turkey’s Patent Applications ranking 4 of the top ten companies are Koç Group companies o The Top Turkish company in EU Industrial R&D Investment Scoreboard ranked 614th place. 4 Koç Group Leading positions with strong competitive advantages in several business segments Consumer Durables Arçelik A.Ş. Arçelik LG International Alliance: LG Electronics Finance Yapı Kredi Bank and subsidiaries Koç Finans International Alliance: Unicredit Energy Tüpraş, Opet, Aygaz, AES Entek, Aygaz Doğal Gaz, Akpa, Demir Export International Alliance: AES Corporation Automotive Other Sectors Food, DIY Retailing, Tourism, Marinas, IT, Ship & Yacht Construction Tofaş, Ford Otosan, Türk Traktör, Otokar, Otokoç Otomotiv International Alliances: Ford Motor Co, Fiat Auto S.p.A, Case New Holland 5 Arçelik A.Ş. Arçelik A.Ş. Since 1955, more than half a century of experience Production, marketing and after-sales services of consumer durable goods, consumer electronics and components 25,000 employees Consolidated net sales 2013 : TRY 11,098 million (4,395 million EUR / 5,837 million USD) 2014 H1: TRY 5,828 million (1,982 million EUR / 2,917 million USD) 10 brands A sales and marketing organization operating in 25 countries 14 production plants in 5 countries (China, Romania, Russia, South Africa and Turkey) Products and services in more than 100 countries 7 Vision 8 Milestones 1955 1959 1960 1975 1977 1991 1993 1999 2000 2001 The Company was established in Sütlüce, İstanbul. The first washing machine is produced in Turkey. The first refrigerator is produced in Turkey. Refrigerator Plant started production. Compressor Plant started production. Establishment of R&D Centre and Consumer Information Service. Arçelik Dishwasher Plant started production. Cooking Appliances Plant started production. Arçelik A.Ş. won the EFQM Prize for Quality Success. Arçelik-LG Air Conditioning Industry and Trade Inc. started production. Marketing and sales operations of Beko branded products started to run by Arçelik Company. 9 Milestones 2002 Blomberg, a German household appliances company was acquired, followed by the acquisition of Elektra Bregenz, an Austrian household appliances company, and its brand Elektra Bregenz. Leisure and Flavel, was acquired as white goods brands of the UK. Arctic, a refrigeration company in Romania was acquired. Beko became the leading brand in UK’s refrigerator market. Launch of the new Arçelik logo, reflecting the innovative and dynamic structure. 2005 Arçelik Company celebrated its 50th anniversary. Foundations were laid for the production plant in Moscow, Russia. The Chest Freezer production line became operational in Arctic Plant, Romania. Tumble dryer production started in Çayırova Washing Machine Plant and to increase the production capacity additional investment decision was made to built a new dryer plant. 10 Milestones 2006 Beko LLC Washing Machine and Refrigerator plant started to operate. Company became the biggest shareholder of Beko Elektronik A.Ş., the consumer electronics company. Exported Beko branded dishwashers and washing machines to China. Beko brand became the sponsor of the Turkish Basketball League. 2007 SBS (Side by side) Refrigerator with Active Fresh Blue technology was launched. Beko Elektronik A.Ş. became the owner of the Grundig Multimedia Company and Grundig brand. One Touch Dishwasher was launched. Beko Electrical Appliances Washing Machine Production Plant in China started operation. 11 Milestones 2008 Turkey’s first Tumble Dryer Plant started to operate in Istanbul. Divide and Cool (DAC): Divisible cooling technology was introduced. Beko Elektronik A.Ş. changed its trade name to Grundig Elektronik A.Ş. The business partnership with Sony to manufacture of Sony LCD TV at Grundig Elektronik A.Ş. 2009 Arçelik A.Ş. merged with Grundig Elektronik A.Ş., a subsidiary in which the Company holds the majority of shares. Eco panel LCD TV consumes 45% less electricity was produced. The first 4 door refrigerator produced in Turkey. With its A-30% energy performance, the world’s least energy consuming washing machine was produced. 12 Milestones 2009 The world’s most quiet, the fastest and least water consuming dishwasher was launched. Launch of the new vision Arçelik launches its new washing machine, 8124 HST Economist, which consumes 50% less power than A energy class 2010 Arctic celebrates its 40th anniversary The first 3D LED TV is produced in Turkey. “World’s most economical dishwasher” A-30% 62107 HIT Economist is introduced to consumers. Arçelik opens its first “Concept” store in Turkey World’s first A+++ No Frost refrigerator consuming the least electrical energy in its own class is produced. 13 Milestones 2011 Arçelik Group acquired Defy Appliances (Proprietary) Limited (“Defy”), the leading home appliances manufacturer in Southern Africa. 2012 Arçelik Group expanded its global network establishing new sales and marketing offices and companies: - Eygpt, Beko LLC Eygpt - Ukraine, Beko Ukraine - Australia, Beko A and NZ Pty Ltd. - Taiwan, Ardutch B.V. 2013 Arctic, the leading white goods brand of Arçelik A.Ş. opened a new refrigerator production line at Gaesti Plant with the participation of Victor Ponta, Prime Minister of Romania, Ömür Şölendil, the Turkish Ambassador, state and local authorities as well as Arçelik A.Ş. and Arctic senior management. 14 Brands Global Network Market Position Brands The leading brand in Turkish household appliances industry. One of the leader brands in Turkey and a global brand preferred in more than 100 countries. A brand of household appliances, combining aesthetic design and technological with environment friendly features. A strong, prestigious brand of household appliances in Austria. The leading brand in the Romanian household appliances market. The traditional brand for solo cooking appliances in the UK. One of the strongest household appliances brand in the UK and Ireland. The household appliance and television brand of price conscious consumers. A well known brand in Turkish and Western European market with wide range of product portfolio of consumer electronics and personal care appliances. The leading home appliances brand in Southern Africa. 16 Product Range Built-in & Freestanding Appliances Refrigerators Freezers Washing Machines Dryers Dishwashers Ovens Hobs Hoods Small Household Appliances Vacuum Cleaners Kitchen Appliances Personal Care Appliances Irons Fans Heating-Ventilation- AC Air Conditioners Combi Boilers Water Heaters Room Heaters Consumer Electronics TVs DVD Players Home theater systems Hi-Fi Systems Portable audio systems Dect phones Set top boxes Notebooks & Desktop PCs Components Compressors Industrial Motors Motor-pumps + Ready-made Kitchen 17 Global Network 18 Global Network Headquarters Turkey/İstanbul Production Plants-Turkey Refrigerator Plant Washing Machine Plant Electronics Plant Cooking Appliances Plant Dishwasher Plant Tumble Dryer Plant Eskişehir İstanbul, Tuzla İstanbul, Beylikdüzü Bolu Ankara Tekirdağ, Çerkezköy Production Plants-International Refrigerator Plant Refrigerator and Washing Machine Plant Washing Machine Plant Cooking Appliances and Tumble Dryer Plant Cooling Appliances Plant Refrigerator Plant Romania , Gaeşti Russia,Kirzhach China , Changzhou South Africa, Jacobs South Africa, Ezakheni, Ladysmith South Africa, East London International Sales and Marketing Ardutch B.V. Taiwan Taiwan Beko A and NZ Pty Ltd. Australia, New Zealand Beko Deutschland GmbH Germany Beko Egypt Trading LLC Egypt Beko Electronics España S.L. Spain Beko France S.A.S. France Beko Italy SRL Italy Beko LLC. Russia Beko Plc. UK, Rebublic of Ireland Beko Slovakia S.R.O. Slovakia Beko S.A. Poland, Czech Republic Beko Shanghai Trading Company Ltd. China Beko Ukraine LLC. Ukraine Changzhou Beko Electrical Appliances Co. Ltd. China Defy Appliances Ltd. Republic of South Africa Defy (Botswana)(Proprietary )Ltd. Botswana Defy (Namibia)(Proprietary) Ltd. Namibia Elektra Bregenz AG Austria Grundig Multimedia A.G. Switzerland Grundig Intermedia GmbH Germany, Croatia Grundig Nordic No AS Norway Grundig Nordic AB. Sweden SC Arctic SA Romania Beko Hong Kong Ltd. Hong Kong, China 19 2013 consolidated turnover: EUR 4,4 billion 58% of turnover from international sales Arçelik A.Ş. is the undisputed leader of home appliances sector in Turkey, Romania and South Africa, the third largest company of its sector in Europe. Strong Growth in Global Marketplace Romania: Market leader via Arctic brand Turkey: Market leader via Arçelik brand Beko brand is one of the top 3 brands in France South Africa: Market leader via Defy brand Beko brand, the market leader in UK and Lithuania 21 International Home Appliances Brand • • • • • • • • • • The 3rd largest home appliances brand in Europe, Achieved the highest market share increase in Germany, Belgium, Romania and Ukrain, Best selling refrigerator and freestanding oven brand in Western Europe, The leader brand in total home appliances market, refrigerator, deep freezer and oven product segments in UK, The leader brand in total freestanding home appliances market and refrigerator in Poland, The leader brand in total freestanding home appliances market; oven, refrigerator and deep freezer product segments in Belgium, The leader brand in total home appliances market in Lithuania, The leader brand in deep freezer in Spain, The leader brand in freestanding oven market and second brand in total freestanding home appliances market in France, The leader brand in deep freezer in Israel. 22 Technology and Innovation R&D - Innovative Technology The patent leader in Turkey, developing its own technology without using licences. The only Turkish company among the top 1.000 allocating resources to R&D, according to a European Commission. Preserving the technologies and products with patents. Continuous cooperation with national and international firms. Globally recognized and awarded designs and products Ease of Use (intelligent, silent, easy to use) Comply with future standards Environment friendly Innovative & Efficient Target : Technology & Products With Energy Efficient Efficient Resource Usage Blomberg CT 1300 A awarded with EU Commissions' u Energy + Award and REC Turkey EU Award for Environment 24 Intellectual Property Management Arçelik A.Ş., • Turkey’s Patent Champion • The only Turkish company listed in the “Top 500 Companies” issued by World Intellectual Property Organization(WIPO) for 5 years, as being the only Turkish company listed in top 200 of this list • Has one third of the international patent applications to WIPO • According to 2011 and 2012 of European Patent Office (EPO) Annual Reports, half of the Turkish patent applications registered by EPO belong to Arçelik A.Ş. WIPO: World Intellectual Property Organization PCT: Patent Corporation Treaty 25 Innovative Products: 4 Door No-Frost Refrigerator With Multimedia Display • 10’’, TFT Touch LCD Display • Android operating system, online store application and expiration date management applications • Wireless internet connection, media player, camera, microphone features • Independent temperature setting for three different compartments via multimedia display. • Saves 20% more energy when compared to A class • Freezer or fridge volume that can be adapted to your needs with the right bottom compartment that can become a fridge or a freezer thanks to the "Cool Control" feature • A large volume of 610 liters • White LED lights • New No-Frost system: quicker cooling and freezing, longer food storage thanks to higher humidity in the fridge compartment, smells in the fridge and freezer compartments do not get mixed and food in the fridge department doesn't get frozen • Hygiene applications; keeps the leafy green vegetables in the crispers fresh and extends their storage time with the blue light technology, antibacterial odor filtering system preventing the odor formation and ionizer system that destroys the air-borne bacteria and that extends the lifetime of the food by providing fresh air (ion+) Refrigerator With Automatic Ice Machine: With its refrigerators with EverFresh+ feature, which keeps the vegetables fresh for up to 30 days, and an automatic ice machine; they have continued to be the leaders of the sector through designs and innovative approaches. 26 Innovative Products: Gourmet Tea-Maker: One and only automatic tea maker in Turkey. ‘"Gourmet Tea-Maker' Thanks to its 'Filter Sense Brewing Technology" Gourmet Tea-Maker, which automatically brews the tea of the desired variety, at the desired time, amount and taste, keeps the tea fresh so that you can drink it at anytime. Fritto Built-in Multifunctional Oven • Fritto Arçelik built-in oven cooks with up to "10 times" less oil when compared to the conventional deep fryers by using 1 spoon of oil when frying potatoes, thanks to the frying tool it has. Frying tool of the oven with approximately 4 liters capacity, which enables making of fried potato chips, pop corn, chestnuts roasting for 4 servings and which also has the capacity to cook 6 pieces of chicken drumsticks, is washable in dishwasher. • This technological oven which has an electronic control with 12 functions comes with the "Turbo cooking" function which enables cooking 3 different meals at the same time without mixing their smells and tastes. • Electronic oven display, Booster, special pizza function, slow cooking option which cooks foods taste like hotpot. • Minimum energy consumption with A -%20 energy class • Easy to clean flat interior and back clear catalytic back wall cleaning system • Cavity volume of 65 lt • Nonstaining inner door glass with "Oleophobic Nano Clean Zone" 27 Innovative Products 42”, 47” and 55” New Frameless Smart Inter@ctive” TV • FHD TM100Hz 3D (600 Hz PPR) • Passive 3D technology • Frameless design • Connection to different internet pages from TV with "Open Browser" feature, which doesn't require a computer • Low energy consumption with "A+" energy class • Access to news, weather forecast, traffic, video applications with application store designed especially for TV • With DLNA feature, it can play photo, music and video files on the compatible devices with a wireless connection • Watching HD digital terrestrial, cable and satellite broadcasts without an additional receiver box thanks to DVB-T/C/S2 feature • Pausing and recording digital broadcasts with USB recording feature. Accessories and Features • BabyWatch Camera "BabyWatch" application, the first in the world, has made an innovative difference. Allows you to connect to the Babywatch camera in a different room with the BabyWatch application on TV and change the direction of the camera. • Skype Camera Video talk by connecting the camera to TV. • "Easy Remote" Controller Allows you to control the television with voice control feature, Allows you to listen to the TV anywhere at home and at any sound level with headphone connections, Allows you to use the display with "Air Mouse" feature 28 Innovative Products: Washing Machine and Tumble Dryer- "Many Innovations Through New Product Range" Dishwasher with "Mixed Washing Program" • To keep up with the changing customer needs and the • Dishwasher with "mixed program" that can clean the fragile advancing technology, the new product range which offers glasses in the upper basket without damaging them while many innovations for Arçelik, Beko and Grundig offers the washing the heavily soiled pots in the lower basket and dry all following: the dishes including the plastics with an A efficiency class. • New technology user interfaces which include large LCD • "Extra quick" function that can cut down the program time by displays, touch keys and voice feedback 50% thanks to its variable speed motor technology • Trendy aesthetical features that fits the brand's characteristics • Other innovative features for washing machines; • Special washing programs that ensure hygiene and special textile care and that have been tested by independent institutions; Sensitive20, Hygiene20, Woolmark approved wool program • Washing capacities of 10kg and 11kg • Other innovative features for tumble dryers; • Innovative products that stand out with their silent features; • In 8kg condenser products; 60 dBA voice level that makes it stand out among its competitors with its variable speed brushless motor technology and special insulation design • 58 dBA voice level which will create competition in the market with the brushless motor technology and "Silent" program • Special textile program that enables drying the woolen products • Ease of use with tank full, filter cleaning, child safety warning indicators and "auto anti-crease" feature 29 Innovative and Eco-Friendly Products No-Frost Combi Refrigerator, World Record Holder in Energy Efficiency • Energy record holder in its own category with 20% less energy consumption when compared to A+++ class. • White LED lights • New No-Frost system: • Quicker cooling and freezing • Longer food storage thanks to higher humidity in the fridge compartment • Smells in the fridge and freezer compartments do not get mixed and food in the fridge department doesn't get frozen • Hygiene applications: • Preserves the freshness of green leave foods in the crisper and extends their storage time thanks to blue light technology. • Antibacterial odor filtering system that prevents odor formation (Hygiene+) • Ionizer system that destroys the air-borne bacteria and that extends the lifetime of the food by providing fresh air (ion+) • Multiflow system that blows air onto every shelf. • Gross Volume of 475 lt 30 Innovative and Eco-Friendly Products Built-in oven "with the world's lowest energy consumption" • "World's most energy efficient built-in oven" which saves 45% more energy in comparison to A class and which consumes 580Wh energy in the eco-turbo cooking mode • "Quietest built-in oven of the world" with a noise level of 41 dBA • Minimized heat loss with detailed energy and flow analysis, thermal simulations, control algorithms, isolation optimsation and special door design • Stand by compatible electronic touch control system • Large, animated electronic oven display • Easily removable side wall wire racks with 5 positions • Single "Telescopic Runner System" which provides ease of use • Heat protecting function • Nonstaining inner door glass with "Oleophobic Nano Clean Zone" • Cavity volume of 65 lt "Eco-Friendly" Television 39” A++ LED TV • 45% less energy consumption when compared to other TV's of the same size. • Access to news, weather forecast, traffic, video applications from application store, thanks to its Smart Inter@ctive TV feature 31 Innovative and Eco-Friendly Products “A+++ -50% Energy Efficient” Washing Machine • One of the "World's least energy consuming" washing machines which consumes 50% less energy when compared to A+++ energy class and which has a capacity of 8kg. • Precise measurement of the laundry load thanks to its intelligent algorithms • Water intake with absolute accuracy thanks to its sensitive sensors. Efficient detergent use with AquafusionTM technology. •Thanks to its drum, paddle and door design, AquawaveTM provides more effective washing conditions for your garments by increasing the motion of the laundry. 32 Innovative and Eco-Friendly Products Tumble Dryer "with the world's lowest energy consumption" • In the 8kg heat pump products; tumble dryer "with the world's lowest energy consumption" thanks to the inverter compressor and variable speed brushless motor technology and A+++10% energy class. • Drying time reduced with the "Quick" option in certain programs thanks to inverter compressor. • "Silent-Night Mode" in certain programs thanks to the brushless motor technology. • The machine has A class condensation efficiency thanks to its special isolation design and emits minimum humidity to the environment it runs in. • Offers solutions such as drying the woolen garments and fashion program thanks to its innovative special programs. • Its large LCD display allows you to watch the program cycles, program time and time left until the program ends, to delay the program, and offers a time adjustable anti-crease option with its large LCD interface. • Provides ease of use with tank full, filter cleaning, child safety warning indicators and "auto anti-crease" feature. 33 “Our priority is the production of goods in a manner that respects both human life and the environment.” 34 Environment • • • • • Arçelik A.Ş. adopts “Sustainable Development” and principle of environmental protection as a requirement of the Total Quality Management approach. Within the context of this approach, Arçelik A.Ş. applies environment-friendly processes and manufactures environmentfriendly products. Arçelik A.Ş. evaluates and monitors its compliance with environment and health & safety oriented national and international legal requirements. In this context, Arçelik A.Ş. closely monitors the developments in the industry and complies to the directives and regulations in Europe; – WEEE - Waste of Electrical and Electronic Equipment, – RoHS - Restriction of the Use of Certain Hazardous Substances, – EuP - Eco Design Requirements for Energy Using Products Directives, – REACH Regulation- Registration, Evaluation and Authorization of Chemicals. In an effort to increase the awareness and sensitivity for environmental issues, trainings are organized for employees. 35 Energy Efficiency in Production • Arçelik A.Ş. is the first and only company to receive Gold certificate in the global white goods sector with its 8 production facilities in Turkey in 2010. • Refrigerator, Washing Machine, Cooking Appliances and Compressor Plants in Turkey reached “Platinum Award” in 2011. In 2012,The Washing Mashine Plant in China and in 2013, Dishwasher, Tumble Dryer, Electric Motors Plants in Turkey and Arctic Cooling Appliances Plant in Romania, also reached Platinum Level. 36 Energy Management Arçelik A.Ş. and its employees comply with all applicable national and international energy-related laws and regulations, continue its activities in line with energy management system based on continuous improvement by procuring essential sources. Our approach; • use energy and natural resources efficiently for the products and the activities • prefer energy efficient technologies and applications for the production and the activities • be a model to industry as ‘the most efficient products’ manufacturer • prefer products and services that were generated in energy efficiency manner for the production and the activities • raise awareness of our employees and the society about energy efficiency and use of natural sources accompanying the Quality, Environmental, Health and Safety Management Systems and we strive to set a model in durable goods sector with regard to environmental efforts. 37 Business Excellence • Arçelik A.Ş. pursues excellence in all processes leading to the final product, implementing an efficient Total Quality Management. • Total Quality Management activities in Arçelik began in the early 1980s with the implementation of Quality Circles and these activities have been developed with the following applications: -EFQM Excellence Model -ISO 9001 Quality Management System -ISO 14001 Environmental Management System -ISO 50001 Energy Management System -ISO 14064-1 Greenhouse Gas Reporting System -ISO 10002 Customer Satisfaction Management System -ISO 27001 Information Security Management System -OHSAS 18001 Occupational Health and Safety Management Sys. -ISO 17025 Laboratory Management System -Six Sigma (Process Improvement) -Total Productive Maintenance (TPM) -BSCI and Sedex Social Accountability Systems -AEO Authorized Economic Operator Status • Compliance with Management System Standards is being assessed and developed through periodical internal and external audits. 38 Business Excellence • Arçelik A.Ş. uses the Six Sigma Methodology in order to reach excellence by increasing productivity across all of its business processes to stay competitive in international markets. • By implementing the Six Sigma Methodology, Arçelik A.Ş. aims to : -improve processes, -make the processes transparent manageable, -create decision making mechanism based on data, -develop a platform to continuous growth in profitability, -harmonize its organizational targets and process objectives, -maintain customer focus -create a common language and improve creativity. 39 Occupational Health and Safety Arçelik A.Ş. performs its Occupational Health and Safety activities by; • Removing the hazards arising by the activities or minimizing the Occupational Health and Safety related risks to the minimum level at source by using a proactive approach, • Using the appropriate, safe and healthy technologies, • Developing the awareness in Occupational Health and Safety issues among the employees and helping them to adopt the appropriate behaviours in order to prevent work accidents and work related diseases within the frame work of Arçelik A.Ş. Occupational Health and Safety Management System. 40 Awards & Achievements 2013 • After achieving the success of becoming the “CDP Carbon Disclosure Leader” in 2012, Arçelik A.Ş has taken this success one step further and received the "CDP Performance Leader" award according to the results of Turkey Climate Change Report 2013. • Grundig’s state-of-the-art TV, 47 VLE 9372 BL, has been awarded with "GUT" award in TV category in the tests performed in Stiftung Warentest (StiWa) assessments. • The biggest winter fest of Turkey, Arçelik Winterfest, which is organized with Arçelik as the main sponsors and which brings together university students at Uludag, won the category of ‘The Best University Fest’ at the Ace of M.I.C.E awards. • Beko, which has been active in Bosnia for more than 10 years, has become the first brand to win the Best Buy Award in 5 different categories. Beko won awards in the following categories: 'Store chain selling white goods and home appliances in general', 'Manufacturer of air conditioning products and air conditioner systems', 'Manufacturer of dishwashers' and "Store chain selling multimedia products". • Arçelik has been recognized as the most popular brand in Turkey in the white goods and house electronics category based on the 2013 results of the "Turkey's Lovemarks" research which is organized every year with the cooperation of Arçelik, MediaCat, and Ipsos. 42 2013 • Arçelik A.Ş. has been given the "Innovation Leadership" award during the second annual "Turkey Innovation Week" organized by Turkish Exporters Assembly in order to emphasize on the importance of innovation. • Arçelik was the “Most Popular and Preferred Retail Brand” in the Electronics Consumer Retail category according to a survey carried out in 2013 among consumers in shopping malls by the Shopping Mall Investors Association (AYD) in cooperation with Gfk Turkey. • Arçelik A.Ş.’s Washing Machine Plant in Ankara and Drying Machine and Electrical Motors Plants in Çerkezköy were awarded the Platinum certificate, the highest level in the “Energy Efficient Green Factories” rating. With this new success, the number of Arçelik A.Ş. plants with the Platinum Certificate has risen to 9. • Arçelik A.Ş wins the ‘Concept Design’ award with its "Cyclone Cooking System" at Red Dot Concept Design 2013 held in Singapore. • The Beko WMB 71443 LE Washing Machine, has been evaluated in product tests conducted by Germany’s Stiftung Warentest, and received the “Test GUT” grade with 1.9 points. 43 2013 • Arçelik A.Ş. received 4 awards in the International ARC Awards Annual Report Competition, which is held this year by US-based MerComm for the 27th time, and in which annual reports and sustainability reports of the companies are evaluated. The Arçelik A.Ş., 2012 Annual Report obtained the Golden Award in the written text category and the Bronze Award in the print and production category for the consumer goods industry. Arçelik A.Ş. also received the Silver Award in the written text category and the Bronze Award in cover page/design category with its 2011 Sustainability Report. • Arçelik's outdoor advertisement created for Fashionline Hair Styler has won the Crystal Apple Award in the Durable Goods category, Outdoors Branch at the "25th Crystal Apple Turkey Advertising Awards" held as part of Crystal Apple Originality Festival. • The biggest winter fest of Turkey, Arçelik Winterfest, which is organized with Arçelik as the main sponsor and which brings together university students at Uludağ, won the category of ‘The Best University Fest’ at the Ace of M.I.C.E awards. • The Beko Dolphin series washing machine from Arçelik A.Ş., has been awarded the “Innovative Product” award at the 9th China Household Electric Appliance Innovation Awards ceremony held in Berlin. 44 2013 • The creative advert prepared for the Arçelik Fashionline Hair Styler won the first prize in the Best Durable Good Advert category at the A Awards Outdoor Advertising Competition held for the first time this year by the Outdoor Advertising Foundation, Arvak. • Beko DIN6831 FX dishwasher, Beko DPU7340X dryer and CN 148241 X refrigerator all received the result Test GUT from Stiftung Warentest (STIWA), an independent and respected test institution of Germany. • Beko OIM 25901 X built in oven was chosen as KitchenInnovation of the Year in the categories of benefit, innovation, user-friendliness, design and ecology. • Saha Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş., updated Arçelik A.Ş.’s corporate governance rating point to 9.28 on July 29, 2013. The previous rating on July 30, 2012 was 9.11. • Arçelik A.Ş. won two awards including the "Gold Award" in the durable goods sector for their 2012 Activity Report, and also won four awards, including the “Gold Award”, for its 2011 Sustainability Report also in the durable goods sector in the competition held on an international platform every year by the San-Diego based “American League of Communications Professionals (LACP)”. • Arçelik A.Ş., as a Company and with its individual plants in İstanbul, Ankara, Eskişehir, Bolu and Tekirdağ, was deemed worthy for 6 plaques for paying the highest premiums and received the awards in the context of Social Security Week activities. 45 2013 • Grundig received awards in four categories for the ECO CHAMPS models and in three categories for the Vision 7 Venus (BMS) design in the “Plus X” Awards, which is one of the world’s leading technology, sports and lifestyle competitions. • Arçelik A.Ş. was qualified for ISO 10002 Certificate which is an international standard that provides manual information for increasing customer satisfaction regarding products and services provided to customers, including planning, design, management, maintenance and upgrading inside the organization. • Arçelik A.Ş. Eskişehir Refrigerator Plant has been awarded “TPM Advanced Special Award” by JIPM (Japan Institute of Plant Maintenance) institute, making the company the first and only in the world home appliances sector to win the award. • Arçelik A.Ş. has been selected as the most reputable company of 2012 in a "Survey on Turkey"s Most Reputable Sectors and Companies’ made by GfK Türkiye. • Beko’s "Family Campaign" won the Gold Effie in ‘International Success’, and the Bronze Effie in "Consumer Goods" categories at the The 5th Effie Turkey Advertising Event Competition which was organized by the cooperation of Association of Advertisers and Advertising Agency with Effie Worldwide Inc. • Arçelik A.Ş. Beylikdüzü Electronics Plant was granted the “Environment Friendly Plant Award” by the Turkish Healthy Cities Association. 46 2013 • The Arçelik Relaunch Campaign "Unique Meeting of Technology and Design" won Silver Effie Award at the 5th Effie Turkey Advertising Effectiveness Awards, which was held with the cooperation of Association of Advertising Agencies and Association of Advertisers with Effie WorldwindeInc. • Arçelik A.Ş. won Sponsorship Platinum Award and Gold Award at TSE Quality Awards Ceremony where companies using TSE brand/certificate for 15 years and longer in the region under the responsibility of Marmara Regional Coordinatorship were awarded. • Arçelik A.Ş. has won a total of 9 awards at Red Dot Design Awards, one of the most prestigious design contests of the World. Grundig GKN 16830 X Combi Refrigerator, Grundig GEZM 47000 B and Grundig GEBM 46000 B Built-In Ovens, Beko WKY 61031 C Washing Machine, Grundig TR1200 Wooden Table Radio, Grundig Vision 9 Air Design TV and Grundig Toaster have been awarded ‘High Quality Design’ by the Red Dot Design Awards jury, meanwhile Grundig GWN 58472 C washing machine and GTN 48271 GC drying machine received the ‘Outstandingly Designed Detail Solutions” honorable mention. • Two refrigerator projects of Arçelik A.Ş. have been awarded by Eskişehir Chamber of Industry (ESO). China 3-Door Combi Refrigerator Project won 2013 Technology Development Award, and 4-Door Refrigerator Project won 2011 Product Development Award. • Elektrabregenz received a second place award in the home appliances category at the “Golden Plug” Awards, which is given to the best suppliers of the retails in Austria by E&W and Federal Committee of Electrical and Furnishing Trade. 47 2013 • Arçelik A.Ş. was granted White Goods Export Champion Award at the “Electrical-Electronic sector 2012 Export Performance Awards” ceremony held by TET (Istanbul Association of Electrical-Electronic, Machinery and Informatic Exporters). • Arçelik A.Ş. won 2 Product Design Awards with its Arçelik In Love washing machine and Grundig refrigerator at the IF Design 2013 awards one of the most prestigious competitions of the design world. • Arçelik A.Ş. Arctic Cooling Appliances Plant located in Romania was awarded the Platinum Certificate, the highest rank in "Energy Efficient Green Factories" grading, by an international energy efficiency consultancy firm, for its works and activities conducted in the field of energy efficiency and management. • Arçelik A.Ş. was awarded with the first prize in the ‘Innovative Environmentally Friendly Device’ category of the ‘ISO Environmental Awards’ organized by the İstanbul Chamber of Industry. • Arçelik A.Ş. has been granted an award for being ‘The First Company to Submit an Electronic Declaration’ in the ‘Firsts’ category a meeting held under the slogan "Easy Trade, Great Turkey" by the Ministry of Customs. • Arçelik A.Ş.'s electric motors with class IE3 energy efficiency were ranked first in the 'Most Efficient Product' (ECU) at the Project Contest for Enhancing Energy Efficiency in the Industry (SENVER) organized by the Ministry of Energy and Natural Resources / Directorate General of Renewal Energy, while BESTOVEN Built-in Oven Project by Arçelik, featuring A-40% efficiency (9658 ETI, OIM, 25603 X) was also awarded the Jury Special Award. 48 2012 • Arçelik A.Ş finished second and won an award in the contest of "Intellectual Property Rights Management" (IP Management) 5 th of which was held by Fraunhofer IAO Institute. among the 48 companies, which participated in the contest. • Çerkezköy Electric Motors Plant and Bolu Cooking Appliances won the Total Productive Management Awards by JIPM (Japan Institute of Plant Maintenance). • The built-in ovens and built in gas hobs of Beko, the international brand of Arçelik A.Ş., were entitled to use the Energy Saving Trust ‘EST’ label which is granted to the energy-efficient products by the most prestigious, independent and a voluntary-based certification authority, the Energy Saving Trust "EST" • Beko LLC company was elected as the winner of the category "The Best White Goods Manufacturer" based on the results of the contest "Top Companies and Plants in Russia - 2011" This success put Beko among "The Top 100 Companies " in Russian Federation according to the results of 2011. • Arçelik A.Ş.'s Cactus Dishwasher Project became one of these practices which will represent Turkey in Rio+20 United Nations Conference on Sustainable Development, with its practices of sustainable development and the green economy on June 2013. 49 2012 • The rice storage compartment of 3-door No-Frost refigerator of Arçelik A.Ş., which is designed with superior features, was granted the ‘‘Innovative Product’’ Award, given by CHEARI (China Household Electric Appliance Research Institute) during the IFA Fair in Berlin. • Passing the audits made by independent auditing firm BSI ( British Standards Institution) successfully, Arçelik A.Ş. has become the first company having ISO 50001 Energy Management System certificate, which is based on the sustainable and efficent use of the energy consumed within the scope of activities, in its sector in Turkey. • Beko Plc was chosen ‘‘The Best Turkish Investor’’ in ‘‘The Most Successful Turk Awards’’ ceremony, organized in London by Business Network Organization. Arçelik A.Ş. Received the title of Turkish Carbon Disclosure Leader under the scope of the 2012 Turkish Report of the Carbon Disclosure Project, carried out in Turkey by Sabancı University Corporate Management Forum. • • Elektrabregenz received a ‘‘Green Brand’’ Award in the Household Appliances Category from the Austrian tradesman’s union in Vienna. • The campaign ‘‘ We Give More Life to Your Clothes’’ undertaken by Beko in Spain was honored with a Gold Award at the sixth annual European Excellence Awads. 50 Corporate Social Responsibility Corporate Social Responsibility At Arçelik Company, we perceive Corporate Social Responsibility as integral part of our business. Our “Corporate Social Responsibility” approach comprises ‘conforming to legal, moral standards and human rights, being diligent to environment and to the needs of the community everywhere we operate, our commitment to sustainable development, along with providing the most qualified and innovative products and services to our customers’. Our greatest strength is our employees and partners, which see themselves as being Corporate Citizens, and are committed to dedicate their effort, energy and time voluntarily to contribute to the community. 52 Corporate Social Responsibility • Arçelik A.Ş. conducts fact finding surveys and prepares reports to meet the requirements of the Global Compact principles and SA 8000 (Social Accountability) Standards. • Arçelik A.Ş. was among the first signatories of the Code of Conduct issued by CECED. – This treatise ensures that the companies demonstrate a sustainable performance in meeting the requirements of international conventions on working conditions and those regarding the environmental laws and regulations. • Arçelik A.Ş. published the 4th Sustainability Report covering the Company’s operations in the light of economic, social and environmental performance. Report’s “B+” application level has been checked and approved by the GRI Secretariat. 53 Corporate Social Responsibility White Fish Playrooms Standing United for Education social responsibility program reached 300 schools in 60 cities, 200.000 students . Donating Blood for My Country Vocational Education Laboratory of Arçelik A.Ş. World Environment Day Event 54 Corporate Social Responsibility No Barriers for My Country Project Arçelik A.Ş. Employees Read Books to the Visually Disabled Seminars on the Right Approach Towards the Disabled Support for International Mandela Day - Turkey 55 Corporate Social Responsibility We Give More Life to Your Clothes - Spain Ethelbert Children's Home – Defy - South Africa Support from the CHOC home- Defy – South Africa Beko REFRESH Slovenia 10 Years, 10 Cities, 10 Schools Project - Bosnia Ecology from A to Z with Arctic - Romania Beko Planting Trees Campaign - China Support for the Krymsk Flooding in Krasnodar - Russia Orphaned Children Attend the Tabaluga Theater, Munich, Germany Association for Needy Children, Projuventüte - Austria 56 Raising Public Awareness on Environment In addition to developing environment-friendly products, Arçelik A.Ş. believes its social responsibility to support activities raising the public awareness about environmental issues. Environment Friendly Projects : • TEMA - “Oak Campaign” • TEMA - “Don’t waste your water” campaign • En-Ver “Energy Efficiency ” Project • En-Ver “Motor Movement ” Project “For My Country Project” of Koç Group, voluntary team comprising Arçelik A.Ş. employees, authorized dealers and services organized environmental trainings for the children in 80 Turkish cities. 57 Raising Public Awareness on Environment • Arçelik takes a leading role to increase public awareness regarding sustainability and climate change. • To be a spokesman for Turkey Climate Change Leaders Group • Signed the 2 Degree Challange Comminuque. • Attended the World Climate Summit held in Durban, Africa. • Attended the UN Conference on Sustainable Development in Rio, South America. • Attended the World Climate Summit held in Doha, Qatar. 58 A team of 12 Arçelik employees climbed the Kilimanjaro Mountain, drawing attention to global warming. This is one of the best voluntary commitments, which shows the sensitivity of our employees to enviromental issues. 59 Sports-Basketball Arçelik Company is also supporting sports that will contribute to the development of the community. Beko-Basketball League Sponsorships Turkish National Basketball League (since 2006 ) German Basketball League Russian Basketball League (2010-2013) Lithuanian Basketball League Italian Basketball League 60 Sports-Basketball Beko-Basketball Event Sponsorships Presenting Sponsor (*)of 2014 FIBA World Basketball Cup in Spain 2013 Euro Basket European Basketball Championship in Slovenia 2011 Euro Basket European Basketball Championship in Lithuania 2010 FIBA World Basketball Cup in Turkey Main Sponsor of 2009 Eurobasket in Poland) 2009 FIBA Asian Championship Sponsor in China *the biggest sponsor of the tournament 61 Sports-Football Grundig 2011 German Football League Official Technology Sponsor Beko has become the sponsor of FA Cup in UK in 2012 62 Thank you www.arcelikas.com
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