CEO's Message

Dear Visitor,

Despite a series of challenges and uncertainties in both global and local markets, 2016 was a year in which Aksoy Holding unceasingly continued its investments and advanced its corporate governance standards. We recorded remarkable organic and inorganic growth, strengthened our corporate and financial structures and reached our targets by the year end.

As of 2017, Aksoy Holding continues to operate in the following 3 industries; (1) Petroleum & Energy, (2) Tourism & Real Estate, and (3) International Trade.

Amongst our Petroleum & Energy operations, Shell & Turcas Petrol A.Ş. (STAŞ) (Fortune 500 Turkey List, #10), Turcas flagship subsidiary in the fuel retail and lubricants sector, increased its sales volume, recording a turnover of 16.8 billion TL and a net profit of 242 MM TL in 2016.

Our highly efficient 800 MW Denizli CCPP under the RWE & Turcas Güney Eletrik Üretim A.Ş. JV Company (RTG) (ISO 500 List, #130), recorded a turnover of 801 MM TL in 2016, thanks to its high capacity utilisation rate. RTS was granted ICCI “Turkey’s Most Environmental – Friendly Power Plant Award” in 2014 and 2015. Turcas aims to create value through diversifying its portfolio in power generation with renewable energy sources, mainly geothermal, while eying geographical expansion. Within this framework, we are extremely focused on bringing our 18 MW Turcas Kuyucak (Aydın) Geothermal Plant into commercial operation within QY 2017.

As of March 2017, Turcas successfully raised its corporate governance score from 9.35 to 9.48 out of 10 the full points. The consistent score increases we achieved in the last 7 years, our company is now ranked 9th in overall Turkey and the 1st in the energy sector.

Our flagship asset in the Tourism & Real Estate sector, Conrad Istanbul Bosphorus completed a 3 year major renovation thanks to a 70 MM USD investment. The renovation program covered all 553 luxury rooms, 76 of which are suites, the SPA, restaurant, mechanical and electrical instalments, swimming pool and finally the lobby. We further created an art lobby introducing art lovers 100 special paintings of Hüseyin Avni Lifij, who holds an extremely valued place not only in our family art collection but also in the history of Turkish art.

Within the Tourism & Real Estate sector, we are keeping ourself busy with a very special new 200 MM Euro villa – hotel – marina investment in Bodrum Yalıkavak, the Epique Island. We are aiming to start life at Epique in 2018 which comprises a 150-boat boutique marina, a 50 suites-only boutique hotel. We foresee the villa stage to be completed in 2018, while the Hotel and the Marina are planned to be completed latest in 2020.

In International Trade our third business unit, we are focused on the Middle-East region, mainly Iraq and Syria. Aksoy International and Aksoy Iraq are the macro distributors of Gazpromneft and G-Energy lubricants in Iraq and Syria. We have also added car batteries and filters to our macro-distributorship. Now we aim to sell tyres and spare parts, and even consider moving into the production of some of these products. We have 37 wholesales, 7 of which are own branches in Iraq, and we operate at hundreds of hot sales points. Our aim is to be a leading regional distribution company by growing our export and transit trade revenues by at least 10% per annum.

Our second Iraq based subsidiary Aksoy Middle East (AME) is the macro-distributor of Shell lubricants in North Iraq. AME aims to make Shell number one lubricants brand in all of Iraq and become the leading distribution company in the wider Middle East growing together with the Shell brand.

By year-end 2016, Aksoy Holdins’s assets reached 2.04 billion TL, while its Shareholders’ Equity reached 1 billion TL. We continue to contribute unceasingly to our national economy through the investments we make and the employment we provide to 1,610 people.

Within the scope of Corporate Social Responsibility, we aim to fulfil our responsibilities to the maximum extent through participation in the “Anatolian Scolarship Program” created to provide full scolarship education at Koç University for successful students in need, support we provided for the documentary works of Çağan Şekercioğlu, first Turkish ornithologist, contribution which Shell & Turcas has made to the excavation works at Çatalhöyük archaeological site over many years, and the educational work carried out by RWE & Turcas.

Aksoy Holding will continue in its pioneering and synergic investments that create sustainable value for its shareholders and society as a whole. We aim to contribute to the stability of Turkey and its region through long-term projects and establishing partnerships with the world’s leading companies.

I would like to extend my sincerest thanks in the name of our Board of Directors to all our shareholders, partners, and our extremely deserving employees who have enabled us to reach our targets for a successful year.

Yours respectfully,

CEO & Vice Chairman