2011 year Annual Report

When you do your job with love, success comes naturally.
As Olmuksa, since the first day we established till now, over 40 years,
we do our job with love. We develop innovative products which meets different
needs towards different sectors. By giving importance to innovation, we are the leadership
of corrugated board. As a result of this, we make export to all parts of the world.
We protect our inner values.
OLMUKSA INTERNATIONAL PAPER-SABANCI
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THE AGENDA OF THE ORDINARY GENERAL ASSEMBLY
1
Commencement and establishing the Presiding Board,
2
Authorization the Presiding Board to sign the minutes of the General Assembly Meeting
3
Discussion and resolution of 2011 Annual Report and Independent Auditor’s Report,
4
Giving information about the donations made during the fiscal year,
5
Giving information about the Operations made with the Related Parties in 2011 to General Assembly,
6
Giving information to the General Assembly about Guarantees, Liens, Encumbrances given on behalf of
third Parties and acquired income and benefits in 2011,
7
Giving information to the General Assembly on Pricing Policy for Members of the Board and Executive
Directors in accordance with Corporate Governance Principles,
8
Discussion and resolution of 2011 Balance sheet and Income statement proposed by Board of Directors
and discussion of the dividend payment proposal,
9
Submitting and Approval of the Board of members selected to the memberships of the Board, opened
in 2011 to officiate during the remaining period,
10
Release of the Board of Directors and the Auditors for the company activities in 2011,
11
Regarding the Permission obtained from Capital Markets Board and T.R. Ministry of Customs and Trade;
Approval of the Amendment of Articles XI and XXIII of Articles of Incorporation and Addition of Article XXXIV,
12
Selection of the Members of the Board of Directors, determining the Independent Members of the Executive
Board and determining the periods of the Members in Executive Board,
13
Election of the members of the Auditors declaration of their duty period,
14
Declaration of the salaries and the money paid of the Board of Directors and the Auditors,
15
Approval of the Auditing Company determined by Board of Directors,
16
Giving Permission to Shareholders, to Member of Board of Directors, to Executives and their spouses
and relatives by blood and marriage up to the second degree holding the power of governance for making
operations or compete which may cause conflict of Interest with the company or its affiliated companies,
17
Permitting the Chairman and the Board of members to do transactions listed in the articles 334 and
335 of Turkish Commercial Code.
Dear Shareholders,
The year we left behind was very unstable for the world economy, therefore, the 2010 growth momentum continued to
slow down in 2011 and raw material prices, foreign exchange rates and business volumes showed volatility
throughout the year. In the last period, European debt crisis emerged in big countries and the risk of failing to take the
necessary measures slowed down the growth rate. Even the deceleration of Chinese Economy strengthened the
possibility of a second recession.
As for Turkey, its domestic demand driven growth rate continued to increase in the first half and the annual rate
expanded 8.5 % in 2011. Unlike 2011, growth rate is expected to slow down in 2012. Global risks are rising as in
previous years and it is crucial for companies to be able to manage effectively under these unsteady conditions.
Olmuksa, the leader in the sector with efficient production capacity and effective financial structure, strengthened its
leadership in the market by providing innovative and value added solutions to its customers. Acquisition of DS Smith
Turkey operations was one of the strategic moves that Olmuksa made in order to achieve its profitable growth target.
Upon the acquisition, integration process was completed successfully in a short time.
Despite the increasing pressure on costs and the exchange rates, Olmuksa gained successful results in 2011.
Moreover, 2012 priority will be to strengthen its competitive structure and to focus on the profitable growth projects.
On behalf of the Board of Directors, I would like to extend my thanks to our employees who increase Olmuksa`s value
in the sector, our shareholders for their continuing support, our customers and suppliers.
Mehmet N.Pekarun
Chairman
Dear Shareholders,
When we evaluate our company’s activities, about financial results and operational activity in the previous year, it was a
satisfactory year for our customers,
In 2011, following the purchase of DS Smith Turkey operations, works which contain the integration of our new
establishments are almost completed. Parallel with Turkish economy which shows a successful performance, with our
new colleagues and establishments added to Olmuksa family, first steps are taken towards reaching our sustainable,
profitable growth strategies.
While in 2011, many sectors show high performance from the point of growth, Olmuksa provided a similar growth with
the growth of the market. Our approach which brings Innovation to the fore will continue intensely in 2012.
Olmuksa always the leader in innovations in its sector signed a lot of successful projects, also in 2011. During these
projects, cost advantage was created for our customers in the supply process as well as new markets were created.
In 2011, our company used 100% of its paper production capacity and 75% of its corrugated board production
capacity that made an increase in corrugated board package production by 23%. Parallel with this position, the sales
of corrugated board sales was increased by 25% when it compared with the previous year.
From the point of financial results, 2011 sales of Olmuksa were TL 402.9 million, operating profit was TL 17.9 million
and net profit was TL 15.7 million. The total value of capacity increase and technology renewal investments was
approximately 8 million TL.
In 2012, for corrugated board industry, we expect a parallel growth with the industry growth. When consumers reach a
higher awareness in areas such as environment and hygiene, we expect corrugated board consumption per person to
reach to levels in European countries.
Our main target in 2012 is to create new markets with innovative solutions and products which have added value, to
provide the best service for our customers and with projects focusing on profitable growth and strengthen our leading
position in the market. With works which aims to carry our operational productivity to high levels, it will support
sustainable, profitable growth strategy by strengthening our structures both financially and competitively.
Our value added focused solutions which provides contribution to all shareholders, is the work of dedicated Olmuksa
workers. I would like to thank and give my kind regards to my colleagues and shareholders who support our company.
<7XæUXO$UÇNDQ
General Manager
Greg C. Gibson
Mehmet Pekarun
Chairman
Vice Chairman
(March 2011-May 2012)
(April 2010-May 2012)
6
Oliver Taudien
Jesus Boveda Berard
Member
Member
Member
(April 2010-December 2011)
(December 2011-May 2012)
(April 2010-August 2011)
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Vincent Bonnot
Member
Member
Member
(August 2011-May 2012)
(July 2010-May 2012)
(April 2010-May 2012)
Auditors
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General Manager
Mehmet Nurettin Pekarun
Chairman
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on Finance and Strategy Expertise at Purdue University. Starting his professional life in 1993, in USA, at Transportation
Systems department of General Electric (GE) Company, Pekarun has worked at GE Healthcare-Europe between the
years of 1996 and 1999, first as the Finance Manager, responsible from Turkey and Greece and then as the Finance
Manager, responsible from Eastern Europe. Mehmet Pekarun, being assigned as the General Manager of GE Lighting
Turkey between the years of 1999 and 2000, as the General Manager of Business Development Unit of GE
Healthcare-Europe, Middle East and Africa Region between the years of 2000 and 2005, and later as the General
Manager of Medical Accessories of Europe, Middle East and Africa Region of the same Company, has been appointed
as the Chairman of the Board of Olmuksa on March 1, 2011. He’s still taking charge in the position as the President of
the Industrial Group.
Greg C.Gibson
Vice Chairman
He was born in August 8, 1960. Graduated from University of DePauw. He is working in our International Paper since
June, 1982. He was appointed to his current position in our Company on September, 15, 2009.
Vincent Bonnot
He was born in March 31, 1970. Graduated from Institut d’Etudes Politiques de Paris. He is working in International Paper
Company since September, 2008. He was appointed to his current position in our Company on September, 15, 2009.
3EYFETTINü!TAü+wSEOõLU
Member
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received his Master’s Degree in Mechanical Engineering at the University of Lehigh and MBA Degree at the University
of Boston. He was appointed to his current position in our Company on July 1st, 2011.
,EVENTü$EMIRAõ
Member
He was born in 1959, graduated from the University of Ankara, Faculty of Political Sciences. He is working in our
Company since 1994. He was appointed as the Head of Financial Affaires and Law Department on May 12, 2010.
Jesus Boveda Berard
Member
He was born in 1947, graduated from the University of Deusto. He is working in our International Paper since June 17,
1974. He was appointed to OLMUKSA as member of Board of Director since December 20, 2011.
7
Member
9
EXECUTIVE BOARD
1.Semih Çelebi (Director of Marmara Region)
3ERDARüúILOõLU (Director of Sales&Advertising)
9ü4UõRULü!R÷KAN (General Manager)
4.Betül Akol (Manager of Human Resources)
/KANüöùLEKü(Group Manager of Adana Plant)
6.Selda E. Aksoy (Director of Finance Department)
7.Hakan L. Demirel (Group Manager of Risk Management)
EXECUTIVE BOARD
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He was born in 1963 in Germany. After Sankt George
Austrian High School he was graduated from the University
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worked as an Assistant General Manager in EGO Elektrik
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transferred to Türk Ytong in year 2000. After a joint venture
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Clean Sea Association, Private Sector Volunteers Association, Business World and Sustainable Development Association. He is married and father of two daughters.
He was born in 1966 and is the Group Manager in Adana
Plant. He was graduated from METU Electric and
Electronic Engineering Department. He is working in our
Company since September 1st, 1992. He was appointed
as Group Manager in Adana Plant on January 2, 2005.
Selda Ercantan Aksoy
10
She was born in 1970, and graduated from Bilkent University, department of Industrial Engineering. She has
completed her Postgraduate education in Washington D.C.,
at George Washington University. She has been working at
our Company since July, 1994. She has been appointed to
her present duty, Finance Director on July,7,2008.
3ERDARüúILOõLU
He was born in 1960 He received his Bachelor’s Degree at
the Technical University of Istanbul, Department of Management Engineering and MBA Degree at the University of
Louisiana at Monroe, USA. He is working in our Company as
Sales and Marketing Director since 2006.
Betül Akol
She was born in 1967 and made her studies at the University of Marmara, Faculty of Training of Atatürk, Foreign
Languages Department, French Language and Literature.
She completed Human Resources Management Program at
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since February 23, 1989. She was appointed as Human
Resources Manager on February 1st, 2008.
Hakan Demirel
He was born in 1969. He received his Bachelor’s Degree
and Master’s Degree at the University of Bilkent, Department
of Industrial Engineering. He is working in our Company
since September 1st, 1992. He is working in our Company
as Risk Group Manager since 2008.
Semih Çelebi
He was born in 1968 and he was graduated from the
University of Anadolu, Faculty of Engineering and Architecture, Industrial Engineering Department. He is working
in our Company since September 13, 1999. He serves
as the Director of South Marmara, Central Anatolia
Region and Technical Services since July 2010.
January 1,2011 - December 31,2011
Mehmet Pekarun
Duty Period
Chairman
(March, 2011 - May , 2012)
Greg C. Gibson
Duty Period
Vice Chairman
(April, 2010 - May , 2012)
Oliver Taudien(*)
Duty Period
Member
(April, 2010 – December, 2011)
Jesus Boveda Berard
Duty Period
Member
(December, 2011 – May 2012)
+DNDQ$NEDé Duty Period
0HPEHU
(April, 2010 – August, 2011)
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Duty Period
0HPEHU
(August, 2011 – May, 2012)
/HYHQW'HPLUDæ Duty Period
0HPEHU
(July, 2010 – May, 2012)
Vincent Bonnot
Duty Period
Member
(April, 2010 - May, 2012)
There have been amendments in the Articles of Association
on adding a new article to the III. Article titled Purpose and
Subject of the Articles of Association of the Company and
bringing VI. Article titled Capital in conformity with T
urkish Lira within the year of 2011, and on authorizing
the Board of Directors to increase the issued capital in
a way keeping within the ceiling of the registered capital
in between the years of 2011 and 2015, and amendment
of the Articles of Association is approved in the Ordinary
Meeting of the General Assembly of 2011.
in 2008 4.76 % to natural person, 5.60 %
to legal entity; in 2009 17.00 % to natural person,
20.00 % to legal entity;in 2010 52.143 % to natural
person, 61.345 % to legal entity were distributed.
* In December 2011 Jesus Boveda Berard has replaced Oliver
Taudien for the reminder of his appointed period.
,Q$XJXVW6H\IHWWLQ$WD.|VHRæOXKDVUHSODFHG+DNDQ$NEDé
for the reminder of his appointed period.
Olmuksa, with a capacity of 88.000 tons/year of recycled
paper and 350.000 tons/year of corrugated production ,
has been operating in the sector of corrugated since
1968. Olmuksa, collects the waste fiber as raw material
for its Edirne and Çorum Paper Mill and converts the
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Duty Period
(April, 2010 - February, 2012)
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Duty Period
(April,2010 - May, 2012)
èHUDIHWWLQ.DUDNÇé
Duty Period
(February,2012 - May, 2012)
,Q)HEUXDU\èHUDIHWWLQ.DUDNÇéKDVUHSODFHG&H]PL.XUWXOXé
for the reminder of his appointed period.
manufactured papers into corrugated boxes in our
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Plants.
With machinery, automation and equipment investments made at our plants, developments in reducing
energy density, and occupational health and safety and
protection of environmental and natural resources have
been provided along with developments on subjects on
printing quality, capacity increase, customer satisfaction
and reducing costs.
Our investment thrusts meeting market / customer
expectations in compliance with our sustainability
principles and aiming cost savings with modernization
shall continue also in 2012 and later.
Investment Reduction Implementation
The clause that states “only belong to 2006,2007 and
2008” in the temporary 69. clause was rearranged by
6009 numbered Law 5th clause which is effective from
1 August 2010 and 27659 Issue of Official Gazette and
with the decision of Supreme Court, the 2009/144
numbered decision published in 8 January 2010 dated
Official Gazette, with this arrangment, it is provided to
continue benefiting from investment reduction exception which can not be reduced due to insufficient profit
and transfered to next periods, it is anticipated that in
detecting the tax base as investment reduction exception, the amount which the reduction was made, could
About the 25% limit which was added to the temporary
69th clause of 6009 Numbered Law, the provision that
“In so far as, in detecting the tax base, as an investment exception, the amount which was reduced,
should not exceed 25% of the related amount”, was
deleted on 18 February 2012 date and E:2010/93,
K:2012/9 [Stay of Executiom] because it was unconstitutional.
In this framework, as the legal regulations permit ,our
company benefited from investment reduction amounts
which are not benefited in the past years belonging to
Ds Smith Çopikas Paper and Corrugated Cardboard
Industry Corp. and Ds.Smith Trakya Corrugated
Cardboard Industry Trade Corp, that we merge by
transfer .
70.393 tons of production was made
in 2011 in our Edirne Paper Mill, where such fluting
and liner papers are produced by using wastepa
per. Çorum paper mill has 15.889 tons of paper
production in 2011.
: In our corrugated plants
totally 247.494 tons of corrugated boxes were
produced during 2011.
13
With the established investments, our Adana, Bursa,
Gebze, Izmir and Edirne plants are fully protected and
prepared against fire. Operations to prepare Çorlu plant
to be fully protected against fire have been started and
shall be completed within 2012. Required works
relevant to the same subject shall also be carried out at
Çorum plant in 2012.
not exceed 25% of the related year’s profit amount.
Again with the change, it was adopted that corporation
tax rate will be the amount which is effective (%20)
rather than 30%.
15
board
board
Çorum Box factory started production in 1976 has a
covered area of 19,000 m2. Operating with a capacity of
60,000 tons a year producing ACB(Tripleks), CB, C and B
waves. Confection machinery to meet the needs of each
type of box is equipped with advanced technology. In
addition to Automotive,white Goods, electronics, durable
goods and food sector,heavy duty packaging, provides
customers with both cost and environmental contribution.
The only factory certified to has TS16949 makes the
factory basing on the automotive industry an advantageous
position in the business.
OLMUKSA ÇORUM PAPER MILL
Çorum Paper Mill founded in 1979 and located in the
same complex with Çorum Box Plant has a capacity of
18,000 tons a year. Facility has 6000m2 closed area.By
recycling waste paper the factory producing Fluting and
Test Liner paper type and meets the needs of Çorum Box
Plant. The current treatment plant is providing water
purifying paper and preventing to reduce natural resources.
Thrace region of operation of the board Çorlu is in operation since 2002, 14,936 m2 closed, has a total area of
34,667 m2.Facility is equipped with the technological and
has a production portfolio in producing standard box,
die-cut box is circular, flat die-cut box-and four-point slip in
the box.To keep customer satisfaction in forefront factory
producing thin wave (B), thick wavel (C) and double-wave
(BC), corrugated 'sheets and cardboard boxes with the
production of quality products and has fast delivery
performance. With a variety of products service is provided
in white goods, electronics, automotive parts, plastics,
detergents, textiles, pharmaceuticals, hygiene products
and food processing industries.
Olmuksa Design Competition has ended up!
Fresh vegetable – fruit packaging design competition organized by Olmuksa, the leading company in corrugated board
sector, among university students studying design has ended up. Awards of the students ranked in the competition have
been granted with an award ceremony organized on May 24, 2011.
Designs ranked in the competition are focused on environment friendly portion packaging solutions meeting the needs of the
consumers along with carrying vegetables and fruits from the fields to the tables with corrugated board containers hygienically and economically. While providing the retailers the opportunity of displaying their products in the best way, it also allows
the consumers to carry vegetables and fruits to their homes in healthy, natural, environment friendly corrugated board packaging.
Increasing global warming danger has increased the importance of efficient usage of resources and recycling. Based on the
idea that Olmuksa products should serve to recycling principle, Olmuksa Volunteers created “Keep Paper Alive” Project for
increasing awareness related to “environment and recycling” in 2007. The aim of the project is to increase the awareness about
environment and recycling of our children who will become the adults of the future and help them acquire proper consumption
habits and develop their disposal awareness. The target audience of the project is the 4th, 5th and 6th grade students of primary
schools.
In ‘’Keep Paper Alive’’ Project put into practice with cooperation of Private Sector Volunteers Association, Olmuksa Volunteers
have come together with primary school students for 1 period for 3 weeks and train the students on awareness raising on
environment and recycling. ‘’Keep Paper Alive’’ Project entering its fourth year in 2010-2011 School Year has reached to 10,000
primary school students in 33 primary schools at 8 provinces with 550 Olmuksa Volunteers in its fourth year.
WE HAVE DELIVERED OUR AID TO VAN;
ENDLESS THANKS TO ALL OUR FRIENDS WHO HAVE MADE A CONTRIBUTION...
The earthquake occurred in VAN on October 23, 2011 Sunday that make us very sad. Absolutely there was many duties and
obligations for all of us to fulfill as individuals in order to remedy the damages of this earthquake.
Thinking that we can gather our contributions even they are modest ones and help our citizens whose families were dispersed,
we as the “OLMUKSA” people organized a Donation in Kind Campaign in order to fulfill our social responsibility. Under the
leadership of Disaster Relief Committee Teams founded in every region we collected a donation of 10.182 TL for Van with the
participation of all Olmuksa people. With these collected donations we bought 200 sleeping bags and 200 winter jackets and
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The biggest part of the participation was made by our plant personnel in Çorum Factory. We thank all our highly sensible friends
LQdRUXP:HDOVRWKDQNRXUSHUVRQQHODQGWKHLUPDQDJHUVZKRZRUNLQJLQ*HE]H)DFWRU\ZKRFRQYH\HGWKHVHDLGVWR.Ç]ÇOD\
Our Gebze Factory performed also the production of “carrying package” donations made intensely to the municipalities and
contributed to sending the aids to Van. Wishing that such a natural disaster doesn’t occur again, we wish the God pour do
blessings on the people who lost their life in the earthquake and offer theirs relatives our condolence.
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CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
1. Corporate Governance Principles Compliance Statement
4. General Assembly Information
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During fiscal year, General Assembly of the Company
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held only one ordinary meeting which was held on
complies the “Corporate Management Principles”
28.04.2011. Quorum at the General Meeting was
published by the Capital Markets Board of Turkey
87.67%. For the General Assembly date, letters in the
(“CMB”).
name of the holders have been sent; announcement has
been made to Istanbul Stock Exchange on April 7 and is
PART I - SHAREHOLDERS
published in the Commercial Registry Gazette and local
newspapers on April 13. Agenda items are discussed
2. Shareholders Relations Unit
Shareholder Relations Unit was established with the
objective to hold the General Assembly Meetings of
Shareholders, to organize the use of shareholders’ rights
and maintain of the minutes thereof, to represent the
and agreed unanimously. Shareholders have used their
rights to ask questions and the questions were answered
during the General Assembly. No proposals besides the
Agenda items are brought forward.
Company in front of concerned establishments and
Within the term, an Extraordinary General Assembly was
instructions, especially Capital Market Board and Istanbul
held on March 30, 2011 for the merger of our Company
Stock Exchange and to meet the information demands of
with companies with trade names DS Smith Çopikas
the shareholders. The Unit follows up the arrangements
.DæÇWYH2OXNOX0XNDYYD.XWX6DQD\L$èDQG'66PLWK
made and to be made under Capital Markets Regulation
7UDN\D2OXNOX0XNDYYD.XWX6DQD\L$èE\PDNLQJDQ
and providing information to the public under the regula-
acquisition. The meeting quorum was 87.73%. An
tion ranging from capital increase to maintaining records
announcement has been made to Istanbul Stock
of the shareholders and fulfillment of information requests.
Exchange on March 4 and is published in the Commercial
The personnel of said unit and their contact information is
Registry Gazette on March 9 and in local newspapers on
mentioned below.Within this period, all questions were
March 6.
answered in an e-mail and phone unit.
Articles of Association do not include any provision for
authorizing General Assembly to take decisions on major
5H\KDQ$OWÇQD\ transactions as selling, buying or renting material assets.
reyhan.altinay@olmuksa.com.tr
Since the Board of Directors represents the will of the
Tel: (212) 385 86 00
General Assembly, there was no requirement for such a
Fax: (212) 280 89 71
regulation. Minutes of the General Assembly are
presented to the interest of shareholders by publishing it
3. Exercise of the Shareholders’ Right to Obtain Information
in the Trade Register Gazette. As from April 2008, the
said minutes has also been announced in the Company’s
Disclosures of special events and periodical financial
web site located at www.olmuksa.com.tr .
statements are announced to the public through Istanbul
5. Voting Rights and Minority Rights
Public Disclosure Platform (“PDP”). In addition, the
Articles of Association of the Company do not grant any
privileges on voting rights.
shareholders have been informed on capital increase and
distribution of dividends upon their requests.
Articles of Association of the Company do not include the
right to request appointment of a special auditor. No
demand was received from the shareholders in 2011.
Articles of Association of the Company do not allow
cumulative voting procedure. The method of cumulative
voting procedure for the current partnership structure was
excluded on the grounds that it might disturb the present
harmonious management structure.
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CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
6. Dividend Policy
The Dividend Policy of Olmuksa International
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distribute a minimum of fifty percent of the distributable
profits of the Company to the shareholders. This policy is
reviewed by the Board of Directors considering the
national and global economical conditions ,the investment
projects and financial funds.
7. Transfer of Shares
The Company is managed under the joint management
principle. Transfer of shares among the partners is subject
to Article 33 of the Company’s Articles of Association.
Transfer of the shares of other shareholders is not subject
to any restriction.
PART II – PUBLIC DISCLOSURE AND
TRANSPARENCY
20
8. Information Policy of the Company
The Company discloses its 1.Half and 2.Half (which
requires independent audit) and 1Q and 3Q (which does
not require independent audit) financial statements and
footnotes to the public through Istanbul Stock Exchange
(ISE) and Capital Markets Board of Turkey (CMB). General
Manager and Finance Director are responsible for
disclosures to ISE and CMB. Names and titles of the
authorized personnel were notified to ISE.
In addition, the information about commercial registry and
registration, shareholder and structure, the preferential
shareholders, disclosures of special cases, the agenda of
the board of directors, minutes of the assembly meetings
are provided in the web site. CMB's corporate governance principles, section 2 Article 1.11.5 in the information listed at the website given.
11. Disclosure of the Company’s Ultimate Controlling
Individual Shareholder or Shareholders
None of the Company’s partners is an ultimate controlling
individual shareholder.
12. Public Disclosure of the Persons Who Can Have
Insider Information
List of the personnel who can potentially possess insider
information about the Company has been given under the
heading “Members of the Board of Directors and
Management Executives “in the annual report and
disclosed to the public through the annual report.
Personnel of the Company were notified in writing not to
disclose the said insider information to any outsider
persons or businesses. Furthermore, a confidentiality
agreement was made with the personnel of Olmuksa. In
this regard, the ethical rules approved and announced by
the Board of Directors, are applicable.
PART III – STAKEHOLDERS
13. Company Information Policy Regarding Stakeholders
9. Disclosures of Special Cases
Nineteen disclosures of special events were made within
2011 under the regulations of CMB and were published
in ISE. CMB and ISE did not demand any further explanation on respective statements.
Share certificates of the Company are not listed in a
foreign securities exchange.
10. The Company’s Website and Content
The Company keeps a web site, located at
www.olmuksa.com.tr. The web site address is also
announced on letterheads of the Company.
The information to be needed about the company is
provided in details in the web site. Annual Report of the
company can be obtained in hard copy as well as
accessible at our web site.
3HUVRQQHO Open and honest communication is supported
among all employees of Olmuksa. Written, oral and
electronic communication platforms were set up to enable
the personnel of Olmuksa to share information.
&RPPXQLFDWLRQFKDQQHOVDUHDVIROORZV top management
meetings, department meetings, information sharing
meetings, e-mail system, notice boards, personnel
satisfaction questionnaire, personnel manual, company
bulletin, open door policy, etc.
&XVWRPHUV Information about the products and services
supplied by the Company (i.e. offers, quotations, quality
report, etc.) is sent to customers upon their demand. In
case of customer complains of a product or service, it will
be settled pursuant to the ISO 9001 rules and through
the relevant procedures.
/,-5+3!ü).4%2.!4)/.!,ü0!0%23!"!.#)ü!-"!,!*ü3!.ü4ö#ü!ø
CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
suppliers with or without a contract in accordance with
the relevant specifications of the Company and with the
applicable laws (i.e. Social Security, Taxation, Safety
regulations). Meetings are held with suppliers for goods
and services purchased at regular intervals to inform the
relevant policies and procedures of Olmuksa and to enter
into annual contracts with suppliers. The said contracts
are executed in such a manner to protect the rights and
interests of both Olmuksa and suppliers.
In case a dispute arises in connection with such contract,
it is settled pursuant to the Company’s procedures
developed in accordance with the ISO 9001. Approved
suppliers are included in the List of Approved Suppliers,
and assessed and inspected at regular intervals.
None of the members of the Board of Directors are paid
by the Company. The Company did not lend money,
issue loan, extend the terms of existing loans and credits,
improve the conditions of thereof, issue loan through a
third person or provide any warranties to a member of the
Board in 2011.
14. Stakeholders’ Participation in the Company
Management
Data collected about the personnel through the rewarding
system for new ideas , information sharing meetings and
personnel satisfaction questionnaire is reviewed at
meetings held by the Executive Management.
Data collected about the customers through customer
satisfaction questionnaire and field surveys is reviewed at
meetings held by the Executive Management.
Approved suppliers’ assessments made according to the
“Goods and Services Purchasing Procedure”, along with
the data collected about them through field surveys are
reviewed at meetings held by the Executive Management.
15. Company Policy on Human Resources
Policies have been developed on Human Resources,
Quality, Environment and Occupational Health and Safety
in accordance with the Company’s mission and have
been shared with all the employees of the Company.
Principles, beliefs and values of the Company have been
determined and shared with all the employees of the
Company.
“Open Door Policy” is applied for communication with the
employees.
Under this policy, which is a part of the Company’s
culture, each and every personnel is allowed to discuss
with the management, including General Manager. No
complain about discrimination has been submitted by the
employees.
The personnel are divided into two groups as Operational
Personnel and Office Personnel. All personnel are
employed under the monthly salary basis.
16. Information about the Relations with Customers
and Suppliers
Sales representatives visit the customers at regular
intervals, and then the results of the said visits are
discussed at regional level. Data collected through regular
customer satisfaction surveys are used as a basis to
develop and implement improvement plans. A Sales and
Marketing Meeting is held once a year to gather all sales
and marketing teams, to determine the customers’ needs
and expectations, and to develop the necessary improvement plans. Problems reported by customers at after-sale
stage are assessed and solved by applying the “Customer Society and Supplier Complaint Procedure”.
Applied under the Quality Management System, the said
procedure defines the measures to be taken to ensure
customer and supplier satisfaction.
17. Social Responsibility
Olmuksa Social Responsibility activities are carried out by
“Olmuksa Voluntary Organization”. Olmuksa Voluntary
Organization that carries out its activities in the coordination of Human Resources reporting to the General
Manager is composed of Olmuksa Voluntary Mission and
Voluntary Missions. You may find further information on
this issue on page Civil Society Initiatives.
21
6XSSOLHUV Goods and services are purchased from
/,-5+3!ü).4%2.!4)/.!,ü0!0%23!"!.#)ü!-"!,!*ü3!.ü4ö#ü!ø
CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
The Environmental and Occupational Health and
Safety Policy of Olmuksa
PART IV – BOARD OF DIRECTORS
The major part of our main strategies are producing our
products in a healthy and safe working environment, using
natural resources smartly and improving our performance
on environment protection continuously.
18. Structure and Formation of the
Board of Directors and Independent Members
22
Considering this basic point, all our wish and commitment is
continuously improving main reasons of occupational
accidents and our potentially negative environmental affects
and behaviors and conditions causing these.
We adopt the below principles in all our production
processes at our paper and container plants to reach these
targets:
‡,QDFFRUGDQFHZLWKDOOODZVUHJXODWLRQVH[SHFWDWLRQVRI
our customers and other provisions our company has
agreed on occupational health and safety and protecting
environment, and with the principle of constant development, eliminating or minimizing all negative affects of
activities on environment and human.
‡)RUFUHDWLQJDQDFFLGHQWIUHHDQGK\JLHQLFZRUNLQJ
environment by avoiding health loss for everyone we’re
working together; to determine our risks and environmental
effects and reduce to acceptable levels.
‡7RSURYLGHUHF\FOLQJIRUUHGXFLQJRXUZDVWHVDQGPDNLQJ
a contribution to protect natural resources and to minimize
material, energy and water consumption by following proper
procedures.
‡8VLQJWKHSRVVLEOHEHVWWHFKQRORJLHVIRUVDIHDQGHQYLURQment sensitive production.
‡7RSURYLGHDOOZRUNHUVWRUHDFKWRHQYLURQPHQWDQG
security responsibilities awareness and providing to be
done what’s necessary as parts of agreements.
‡7REHLQFRRSHUDWLRQZLWK&XVWRPHUVOHJDORUJDQL]DWLRQV
and Society within these principles, to notify the requirements of our policy to all our material and service providers
and to help them for their improvement on these subjects.
Members of the Board Of Directors:
Mehmet Pekarun
Chairman, Non-Executive
Greg C. Gibson
Vice Chairman, Non-Executive
Oliver Taudien(*)
Member, Non-Executive
Jesus Boveda Berard
Member, Non-Executive
/HYHQW'HPLUDæ
Member, Non-Executive
+DNDQ$NEDé Member, Non-Executive
6H\IHWWLQ$WD.|VHRæOX
Member, Non-Executive
Vincent Bonnot
Member, Non-Executive
* In December 2011 Jesus Boveda Berard has replaced
Oliver Taudien for he reminder of his appointed period.
,Q$XJXVW6H\IHWWLQ$WD.|VHRæOXKDVUHSODFHG
+DNDQ$NEDéIRUKHUHPLQGHURIKLVDSSRLQWHGSHULRG
None of the members of the Board of Directors is independent. This issue will be reviewed in the future.
General Assembly has authorized the members of the
Board of Directors to perform the activities and transactions
described in Sections 334 and 335 of the Turkish Commercial Law.
19. Requirements for the Members of the
Board of Directors
Members of the Board of Directors comply with the qualifications described in paragraphs 3.1.1, 3.1.2 and 3.1.5 of
Part 4 of the Corporate Management Principles; the
Company’s Articles of Association do not contain any rules
on this issue.
Our Company holds ISO9001 Quality, ISO 14001 Environment, OHSAS 18001 Occupational Health and Safety
Management System Certificates. Moreover, while our
Gebze, Adana and Bursa plants hold BRC-IOP Food
20. Mission, Vision and Strategic Targets of the
Packaging Management certificate, our Çorum facility is the Company
only plant in the sector having ISO/TS:16949 Technical
Vision and mission of the company was determined, and
Management certificate. Our Edirne paper plant has
was announced to the public through the annual reports.
deserved the right to obtain FSC Coc Forestry Management
2XU9LVLRQInnovative solutions dreams into reality, developCouncil Protection Chain Certificate.
ing new markets and by providing continuous satisfaction to
Studies of our company under the slogan of “for a viable
be the most preferred company.
future” are gathered under “Sustainability” roof. You may find
further information on this issue on pages Sustainability.
/,-5+3!ü).4%2.!4)/.!,ü0!0%23!"!.#)ü!-"!,!*ü3!.ü4ö#ü!ø
CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
"We want to be perceived as:
A reliable and competitive business partner, demonstrating
continuous improvement in delivering high quality products
on time, by our customers.
As a leader of the sector, aware of its responsibilities,
continuously improving its performance and renewing its
assets by her own funds; paying dividends in acceptable
ranges to our shareholders.
A reliable, open, fair and good performing company,
enhancing team work, giving importance to recognition,
individual expectations and skills, by our employees."
Three-year operating plans are developed in accordance
with the strategies determined and approved by the Board
of Directors. At the end of each quarter, the said plans are
compared and analyzed with the actual performance, and
the results are reported to the members of the Board of
Directors.
21. Risk Management and Internal Control System
Internal Control System and Risk Management are at the
disposal of Company Management. Internal Audit Department is providing assurance and consultancy service to the
management in and matters reporting directly to General
Manager and the Auditing Committee.
As a result of Internal Audit activities, management of the
audited unit evaluates risks that may occur in achieving
company targets and the internal control system established to take these risks under control and shares evaluation results and (if any) action plans aiming to reduce risks in
audit reports that are presented to the General Manager
and Auditing Committee. Internal Audit Department regularly
reviews company risk management and internal control
system in the framework of risk-based audit plan in order to
achieve the following targets:
‡&RPSOLDQFHZLWKOHJDOUHJXODWLRQVFRQWUDFWVDQG
company processes
‡3UHYHQWLRQRIHUURUVDQGLUUHJXODULWLHV
‡(VWDEOLVKPHQWRIDQHIILFLHQWLQWHUQDOFRQWUROV\VWHP
‡6DIHJXDUGLQJRIDVVHWV
‡(IILFLHQWDQGHIIHFWLYHRSHUDWLRQV
‡$FFXUDF\DQGFRPSOHWHQHVVRIILQDQFLDODQGRSHUDWLRQDO
information
‡&RPSOLDQFHZLWK&RUSRUDWH0DQDJHPHQWSULQFLSOHV
‡&RPSOLDQFHZLWKHWKLFDOYDOXHV
‡(IILFLHQF\LQULVNPDQDJHPHQW
The company identifies the opportunities and threats
to reach the company targets and specifies the
preventions, perform risk analysis and reports them to
the Top Management.Risk Management Committee
meetings are held periodically to develop risk
management substructure and increase the effectiveness of risk analysis.
22. Duties and Responsibilities of the Board of
Directors and Executives
Duties of the members of the Board of Directors have
been defined in the Articles of Association. Authority
and responsibility for the management executives
have not been specifically defined in the Articles of
Association, but defined in the signature authorization
document issued by the Board of Directors to the
management executives.
23. Principles of the Activities of the Board of Directors
Board of Directors of the Company held 29 meetings
within 2011, 4 of which were face-to-face meetings,
the remaining 25 were held by obtaining written
approvals from the members in accordance with the
Turkish Commercial Law and the Articles of Association. Agenda of each Board of Directors meeting is
prepared by the Chairman of the Board in consultation
with the members.
In order to ensure the members to have sufficient time
to review and to be prepared for the issues set forth in
each meeting agenda, Secretary of the Board of
Directors distributes written copies of the agenda to
the members one week before the meeting.
All members of the Board of Directors were ensured
to attend the meetings where any of the issues
defined in paragraph 2.17.4 of the Corporate
Management Principles published by CMB were
discussed, except for the ones who were absent due
to an acceptable excuse. None of the members
present at the said meetings asked any questions, so
that no questions were recorded in the meeting
minutes. Members of the Board of Directors were
entitled neither to cast weighted votes nor to veto
resolutions passed on the above mentioned issues.
23
2XUPLVVLRQ
/,-5+3!ü).4%2.!4)/.!,ü0!0%23!"!.#)ü!-"!,!*ü3!.ü4ö#ü!ø
CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
24. Principles of the Activities of the Board of Directors
None of the members of the Board of Directors made
business as an individual with the Company or
competed as an individual with the Company in the
same business field.
25. Ethical Rules
Board of Directors determined a number of ethical
rules, approved them, and notified them to all employees of the Company. All employees of the company
signed the declaration of ethical rules and are trained
about ethical rules every year.
26. Number, Structure and Independence of
Committees Established by the Board of Directors
24
Since the Board of Directors of the Company personally deals with corporate management principles and
compliance to them, establishing a separate committee is not found necessary.
Since the Board of Directors does not have any
independent member, the Chairman of Auditing
Committee has not been elected among independent
members.
Any member of the Board of Directors may take place
in several committees.
Members of the Auditing Committee are composed of
two members of the Board of Directors who do not
play a role in execution. The committee that is responsible for audit convened five times in 2011 and no
conflict of interest occurred in works carried out by the
Committee.
Committee Members Responsible for Audit:
/HYHQW'HPLUDæ0HPEHURIWKH%RDUGRI'LUHFWRUV
Vincent Bonnot, Member of the Board of Directors
27. Remuneration of the Board of Directors
None of the members of the Board of Directors are
paid by the Company. The Company is not entitled in
any way to lend money, to extend any credits, to
prolong the terms of existing loans and credits, to
improve the conditions of thereof, and to extend credit
under the name of any personal credit means through
a third person or to provide warranties to a member of
the Board in 2011.
It can be seen clearly that, immediate measures need to be taken and way of doing business should be
rearranged in order to ensure future generations will find a world that they can live healthy and happy and life's
basic needs can easily be accessed.
In this sense, as OLMUKSA, we believe in effective use of resources, reduction of environmental impact and
the necessity to increase social awareness. We have decided to continue our efforts on natural resource
consumption monitoring, occupational health and safety, environmental awareness, waste reduction, projects
to increase public awareness, greenhouse gas emissions reduction and similar for a while under the umbrella
of "Sustainability”. Hereafter, our policy which shall steer our studies is as follows;
26
We want to summarize what we intend with "Sustainability" studies we will set forth with the slogan "for a
livable future”;
We support the sustainability development of our stakeholders and the society;
We are trying to respond every need of our customers with our innovative
ideas and product development activities.
We want to contribute to your sustainability studies, as well, with our 100%
recyclable products and environmental friendly packaging solutions.
We prove our difference with the awards we have received.
We organize regular training programs to provide professional and personal
developments of each of our employees.
We are success to reach below the average of European Occupational Accident
Index by reducing level to 0.36 improving our safety performance continuously.
We act in conformity with the requirements of OHSAS 18001 standards.
We’ll carry out collective activities every year with at least two of our suppliers on building sustainability awareness, determining targets relevant to energy, waste, etc., performing social responsibility
activities cooperatively, developing an approach for quality, environment and occupational safety.
We try to raise social awareness by carrying out social responsibility projects with
all our employees.
With “Keep Paper Alive” project, we have started in 2007, 12650 elementary
school students have been trained on recycling consciousness until now. With
this project, we have received the most successful project award in “Awards from
the Heart 2008” organized by Private Sector Volunteers Association and
welcomed appreciations from our customers.
SUSTAINABILITY
We effectively use natural resources and raise our environmental awareness;
We keep our consumptions under control and perform “Energy Studies” to make
improvements to reduce our electricity, fuel and water consumptions. As a result
of improvements we realized saving 1.6 kwh per production ton in energy.
“Recycling is in our genes!”; We convert waste papers into reusable papers at
our Edirne Mill. Waste paper is recycled to paper 7 times in average. Moreover,
we are the main partner of DÖNKASAN Company which operates in the field of
collecting waste.
We intend to reduce our waste at the source.
We carry out our activities in conformity with ISO 14001 standards.
We use papers obtained from “sustainable forests” on barren lands where trees
are planted only for the purpose of paper production, lumbered under control
and immediately replanted, in our box productions.
Our suppliers are holding internationally accepted certificates (SFI, PEFC, FSC);
In our transportation and shipping processes, we carry out projects for effective
natural resource use and to increase pallet recycling.
We believe that we have to be a profitable, competitive and productive company in order to exist in the future.
We pay a great importance for customer satisfaction.
We conduct Lean 6 Sigma projects in order to increase our production efficiency.
We continuously improve our performance by evaluating our operational and financial risks with annual review and
audits.
We’re being selected as the “Most Valuable Brand” and the “Most Admired Company” of our sector for years.
OLMUKSA, being a pioneer in its sector also in “Sustainability” as always, is ready for every kind of collective
study with its stakeholders and public to maintain a ”Livable Future”.
2011 (**)
Results
2012
Targets
24
36
0.36
1.00
Electricity Consumption (kWh/ton)
72
64
Natural Gas Consumption (kWh/ton)
250
248
0.103
0.082
Training hour / Person
Accidents Index (*)
CO2 emission (CO2 ton/production ton)
%2
Waste Reduction (compared to 2010)
Reused Palette Ratio
% 55
% 67
Number of Trip / Ton of Trucks
0.22
0.21
Customer Return Ratio %
0.18
0.20
*In calculating accidents index, lost working hours resulting from accidents and total working hours are
considered. Performance reflects the successful development of the falling value of the index.
**Çorum and Çorlu plants values that joined us in 2011,were included to results.
***Will be calculated at the end of the year 2012.
27
We keep our financial performance high
28
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BALANCE SHEETS
31
STATEMENTS OF COMPREHENSIVE INCOME
32
STATEMENTS OF CHANGES IN EQUITY
32
STATEMENTS OF CASH FLOWS
33
NOTES TO THE FINANCIAL STATEMENTS
34-48
30
NOTE
1
ORGANISATION AND NATURE OF OPERATIONS
NOTE
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
NOTE
3
BUSINESS COMBINATIONS
39
NOTE
4
JOINT VENTURES
39
NOTE
5
SEGMENT REPORTING
40
NOTE
6
CASH AND CASH EQUIVALENTS
40
NOTE
7
FINANCIAL INVESTMENTS
40
NOTE
8
FINANCIAL LIABILITIES
40
NOTE
9
OTHER FINANCIAL LIABILITIES
40
NOTE
10
TRADE RECEIVABLES AND PAYABLES
40
NOTE
11
OTHER RECEIVABLES AND PAYABLES
41
NOTE
12
RECEIVABLES AND PAYABLES FROM FINANCE SECTOR
41
NOTE
13
INVENTORIES
41
NOTE
14
BIOLOGICAL ASSETS
41
NOTE
15
ASSETS RELATED TO ONGOING CONSTRUCTION CONTRACTS
41
NOTE
16
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
41
NOTE
17
INVESTMENT PROPERTY
NOTE
18
PROPERTY, PLANT AND EQUIPMENT
NOTE
19
INTANGIBLE ASSETS
42
NOTE
20
GOODWILL
42
NOTE
21
GOVERNMENT GRANTS AND INCENTIVES
42
NOTE
22
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
42
NOTE
23
COMMITMENTS
NOTE
24
EMPLOYEE BENEFITS
NOTE
25
PENSION PLANS
43
NOTE
26
OTHER ASSETS AND LIABILITIES
43
NOTE
27
EQUITY
43
NOTE
28
SALES AND COST OF SALES
44
NOTE
29
34
34-39
41
41-42
42
42-43
RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SELLING AND DISTRIBUTION EXPENSES,
44
GENERAL ADMINISTRATIVE EXPENSES
44
NOTE
30
EXPENSES BY NATURE
44
NOTE
31
OTHER OPERATING INCOME/ EXPENSES
44
NOTE
32
FINANCIAL INCOME
44
NOTE
33
FINANCIAL EXPENSES
NOTE
34
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
NOTE
35
TAX ASSETS AND LIABILITIES
NOTE
36
EARNINGS PER SHARE
45-46
NOTE
37
RELATED PARTY DISCLOSURES
46-48
NOTE
38
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTS
NOTE
39
EVENTS AFTER BALANCE SHEET DATE
NOTE
40
OTHER ISSUES THAT SIGNIFICANTLY AFFECT THE FINANCIAL STATEMENTS OR
CLEAR UNDERSTANDING OF FINANCIAL STATEMENTS
44
44-45
45
48
OTHER ISSUES REQUIRED FOR THE
48
BALANCE SHEETS AS AT 31 DECEMBER 2011 AND 2010
Notes
Current Assets
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TOTAL ASSETS
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31 December
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31 December
2011
31 December
2010
31
LIABILITIES
BALANCE SHEETS AS AT 31 DECEMBER 2011 AND 2010
Notes
1 January 31 December 2011
1 January 31 December 2010
NET PROFIT FOR THE PERIOD
OTHER COMPREHENSIVE INCOME/(EXPENSE)
TOTAL COMPREHENSIVE INCOME
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STATEMENT OF CHANGES IN EQUITY
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Notes
1 January 31 December 2011
1 January 31 December 2010
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STATEMENTS OR OTHER ISSUES REQUIRED FOR THE CLEAR
UNDERSTANDING OF FINANCIAL STATEMENTS
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Ahmet Fevzi Tüfekçi
Çorum Production Manager
HUMAN RESOURCES
Bülent Egeli
Edirne Plant Manager
We choose and hire people according to sectoral conditions, in the framework of
#|NEYTü+ARPUZOõLU
Heavy Duty Sales Manager
according to our human resources plans, carry our company towards future and
Devrim Kocaman
Adana Production Manager
Our Performance Management Process
Hakan Canbek
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strategies according to SMART principle, we aim to form a performance culture
(ANIFEüøAHIN
North - West Marmara Sales Manager
Our Individual and Organizational Development Process:
(IKMETüøAKAR
South Marmara and Central Anatolian
Region Sales Manager
performance and worker commitment. We take, what we call Business Families
öSMAILü"OZKURT
Control Manager
ment is people’s own responsibilities, we percieve and apply
-UHARREMü!YTAûOõLU
Logistics Manager
different/new assignments as the keystones of development.
-URATüúAK÷R
System Development Manager
For our company’s organizational development and continuity, within the process of
Murat Garipcan
Business Development Manager
horizontal and vertical careers of our workers and we make action plans. Depending
Mustafa Cirit
South Anatolian Region Sales Manager
potential workers into managerial positions.
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Ömer Faruk Konucuk
North-Marmara Region Sales Manager
Recruitment Process:
ethical rules, who provides to reach our short and long term business targets,
have high development potential,
We provide to distribute our business target which supports our company’s main
focusing fair and effective evaluation which aims development by feedbacks.
We aim to form a climate which supports organizational development, high
Systems as a guide which will be used to reach our workers knowledge-skill
and activity areas to their individual targets. With the approach that develop-
Our Career and Non-Backup Management Process:
Olmuksa Organization Success Plan, we review our processes which provides
on the development in our organization, it is our primary target to bring our high
Our Award Management Process:
In the direction of short and long term business plans, our company’s all roles and
responsibilities it needs are defined within the HAY Business Families Models. Our
aim to consider our company’s market needs, apply an award method which is
coherent with target and putting recognition and and appreciation into first plan and
review it every year.
cZAYüöLERIücZDEMIR
Çorum Plant Manager
Our Business Relationship Process:
Seda Tokmak Altun
North-East Marmara Sales Manager
on, rights gained legally and according to the agreement, protect labor peace and
Serdar Özdemir
Çorlu Production Manager
The Rights and Benefits of Personnel:
øINASIücZSOY
Gebze Production Manager
of 4 gross salaries. All workers get work uniforms, ISIG equipments, personal
Tamer Parla
Sales Development Manager
Yasin Canki
Finance Manager
9÷LMAZü3ELûUK
Gebze Plant Manager
We provide to apply and follow all laws and regulations which our workers depend
provide to manage employee personal rights by fulfilling legal obligations.
All workers, work on the basis of monthly fixed rates and get premium in the amount
protective equipment. Also, transportation, food are provided by Company.
Manning:
As of 31/12/2011, the total number of personel working for the company is 929.
49
productivity/optimization/social responsibility projects, inner mentor system,