CEO & Vice Chairman

Dear Stakeholders, Visitors,

While the global pandemic has been holding up its impact for the last two years, we left a year behind deeply experiencing the changes brought along by challenging conditions. The acceleration of the normalization process with vaccination coverage around the world remarkably supported our country and global economies.  However, price increases in energy, food and agricultural commodities, major challenges in supply chain shortages, transportation cost, global high inflation environment, exchange rate fluctuations and complications occuring with such challenges affected our country and the whole world in 2021. In an environment which blurs the line between risks and opportunites, we worked intensively to achieve all objectives we set with a strong willed approach as well as facing difficulties caused by economic fluctuations.

While generating value added benefits for our country through working with same discertion and determination in 2022, we will continue to take firm steps to achieve our goals.

Now, let’s take a brief glance at the 5 sectors we operate in (Fuel Retail & Lubricants, Power Generation, Hospitality, Real Estate & Construction, and International Trade respectively):

1) As Shell & Turcas – our flagship subsidiary, the most preferred brand and leading player of the Turkish fuel retail and lubricants industry – we have increased our market share while maintaining to provide uninterrupted service to our app. 1 million guests every day at 1,150 mobility sites. We exported lubricant products to over 60 countries from our Derince Lubricants Blending Plant.  Despite many challenges such as the increase in demand thanks to the normalization process, the price increases caused by constraints and unexpected decreases in supply level, and exchange rate fluctuations, our Company has continued to be one step ahead, groundbreaking and inspiring the sector. Shell & Turcas will maintain its leading position in 2022 with a dynamic structure and innovative service approach shaped in line with consumer needs and expectations.

2) Operating under the RWE & Turcas JV Company, our 800 MW Denizli Natural Gas Fired Combined Cycle Power Plantwas our relatively-less-affected subsidiary by the pandemic in spite of the increase in energy and commodiy prices.  As a result of the effective business strategies and decision processes, electricity generation at our power plant has achieved the highest production and profitability ratio since the beginning of its operations in 2013.

We have left a year behind with a significant increase in electricity production by reaping the fruits of well and pump investments in our renewable energy investment; 18 MW Turcas Kuyucak (Aydın) Geothermal Power Plant.  As disclosed in December 2021, a share purchase agreement (SPA) had been signed between Albioma SA (Buyer), a French energy company listed in Euronext Paris, and Turcas Petrol A.Ş. with regards to the sale of %100 of our shares in Turcas Kuyucak Jeotermal Elektrik Üretim A.Ş. All the preconditions – set forth in the SPA – have been successfully fulfilled and the sale of our shares has been completed as of February 14, 2022. We are glad for the success of our subsidiary to draw interest and receive appreciation from a Europe-based global energy producer. We are also proud to further enhance the confidence in the economic potential of our country by bringing long-term direct foreign investment to Turkey.

3) Our flagship investment in hospitality, Conrad Istanbul Bosphorus has been our most affected subsidiary by the pandemic, especially in 2020. However, our hotel has started to considerably recover its pandemic related revenue losses with the increase in vaccination coverage and the normalization process. We were honoured to be rewarded as “Europe’s Leading City Hotel“, “Turkey’s Leading Business Hotel” and “Turkey’s Leading Conference Hotel” at the “2021 World Travel Awards” concluded by the votes of travel and tourism professionals around the world, also increasing our motivation for the future.

4) We had announced the handover of the property management of our high-end real estate project, The Ritz-Carlton Residences, Bodrum (a 200 Million Euro investment completed in 2020) to The Ritz-Carlton (Marriott International’s upper scale brand) as of the second hald of 2021. Featuring the first stand-alone residence of the Marriott International in Europe, Middle East and Africa, our iconic property will be managed for 30 years with a dedicated residential management team as well as retaining its meaningful contribution to the tourism and real estate revenues of Turkey through delivering the world-renowned legendary service of the brand to the villa owners.

5) Within the international trade business unit, our subsidiaries Aksoy International and Aksoy Middle East well sustained their operations in the fields of export, transit trade and distribution of the world-renowned lubricant brands such as Shell, Hyundai Oilbank over 10 countries in the MENA region. We also penetrated into West African markets through establishing a JV company titled “Aksoy Nigeria” in order to extend our activities to Nigeria and West Africa. Operated under the control and coordination of our umbrealla company Aksoy Holding and the central office of our International Trade business unit (Aksoy International), Aksoy Nigeria has signed agreements to add Hyundai Oilbank and Petronas Lubricants to its product porfolio. Our new subsidiary will extend its product portfolio and market share with global partnerships.

As Aksoy Holding, we are also active in distibution and transit trade operations of Gazpromneft and Rosneft lubricants across different regions. We will continue to provide a wide range of products and services in global markets especially on lubricants and our newly established Technological Solutions department with a sustainable approach and comptetive advantages in 2022.

We are aware that companies should have responsibility to their communities alongside their financial sustainability. Hence we deeply care about the environmental and social impacts of all our services and operations. We, as Aksoy Holding, take crucial responsibilities to leave a healthy future for next generations in terms of sustainable energy, efficient use of natural resources, waste minimization, recycling and also defining our operational principles accordingly.

On the other hand, we continue to make contributions to our community with social responsibility projects on education, environment, culture, arts and sports. We keep providing services and adding value to all our sectors of operation with 44 years of experience, financial power, dignity, human resources as well as our business approach based on excellence, assiduity, integrity and ethical values.

We consider the successful results achieved in 2021 merely as a step towards reaching higher objectives. On behalf of our Board of Directors, I would like to extend my sincerest gratitude and regards to all our staff and stakeholders who have devotedly accompanied us along our journey of aspiration to execute value-added investments for our country.

Sincerely Yours,
CEO & Vice Chairman