AE Arma-Elektropanç 2014 Annual Report

2014 ANNUAL REPORT

TRADE REGISTRATION NUMBER : 463497

INDEX

BOARD of DIRECTORS

MESSAGE from the CHAIRMAN 01

BOARD MEMBERS 03

REPORT of the BOARD of DIRECTORS 05

AE ARMA-ELEKTROPANÇ at a GLANCE

COMPANY PROFILE 08

KEY INDICATORS 09

MISSION & VISION 11

GROUP of COMPANIES 12

TIMELINE 13

STRATEGIC TARGETS 15

AWARDS 16

SERVICES

MECHANICAL, ELECTRICAL & PLUMBING (MEP) ENGINEERING 17

FOOTPRINT 18

ACTIVITIES at 2014

2014 at a GLANCE 19

NEW & ONGOING PROJECTS 20

COMPLETED PROJECTS 28

SUSTAINABILITY

HUMAN RESOURCES POLICY 55

QUALITY, OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL POLICY 57

OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEMS 59

ENVIRONMENT MANAGEMENT SYSTEM 63

ETHICAL POLICY 64

INFORMATION TECHNOLOGIES 65

CSR POLICY 67

CONSOLIDATED FINANCIAL REPORTS

2014 CONSOLIDATED FINANCIAL REPORT 70

CREDIT RATING REPORT 142

INDEPENDENT AUDITORS REPORT 143

AE 2014 ANNUAL REPORT

BOARD of DIRECTORSMESSAGE from the CHAIRMAN

01


Further to the global crisis occurred around 6-7 years ago, economic recovery is still one of the most important topic of today’s agenda. Geopolitical tensions which has com-menced with the civil war in Syria at 2011 and has increas-ingly intensified with the civil war at Ukraine, damage the global economic recovery and make it difficult to rebuild trust which is the most important component of financial balancing.

It is possible to realize the insecurity from Turkey’s eco-nomic performance as it is the usual case for many de-veloped and developing countries. Turkish Economy has grown 1.7% in annual basis at Q3 of 2014 which was be-low expectations. Thus, Turkish Economy has performed its lowest growth in quarterly basis since last quarter of 2012. Conversely, according to the economists’ expectations the average growth at 2014 is around 3.2%.

Economists also estimate that the global economy will rose by more than 3% by the end of 2014.

Both World and Turkish Economies are trying to grow, even though at slow pace and get rid of negative effects of the crisis. AE Arma-Elektropanç, which has its operations in eight different countries and 88% of its business is at abroad, is affected by the World economy. In spite of all of these issues, AE has achieved its targets at 2014. Our abil-ity to keep uncontrollable risks at the minimum level along with the correct strategies is the key factor of our success. AE Arma-Elektropanç has successfully completed & hand-ed over 10 projects with an area of 1.14 million square meters in 2014. In addition, we have signed new contracts of 10 large scale projects worth of 250 million US Dollars in Baku, Moscow, Istanbul, Algeria, Abu Dhabi and in Dubai, which have a total areas of 1 million square meters. Total contract amount of our 21 ongoing projects is around 610 million US Dollars.

Having projects & offices across three continents, AE is one of the leading player in the international construction market and is representing Turkey with great success. AE has listed in the both Fortune 500 and Capital 500 among Turkey’s top largest 500 companies. Besides, we are posi-tioned at the 46th place at the top largest 50 Turkish Com-panies Abroad of Capital Magazine. In the meantime, AE is the only MEP contractor among the Turkish contractors listed at the “Top 250 International Contractors” issued by the Engineering News Record (ENR).

AE has increased its workforce to 2.249 by 2014. The multi-national organization has played a critical role for the suc-cess of meeting different cultures, standards and expecta-

tions in the correct way and on time, which was required by having business activities in different regions.

AE is planning a growth rate of 15% in 2015. 11 of our ongoing projects will be delivered to the clients. In return, we are planning to sign new contracts worth of 350 million US Dollars.

Our company has also decided to increase investments in order to increase the productivity. Our investment for ERP (Enterprise Resource Planning) for 2015 will be around 1.5 million US Dollars. Initially it will be implemented in Turkey and then all the other countries of operations in order to increase productivity of resources, to integrate processes, to grow under control and supervision, to measure produc-tivity in a fast way and to reduce our general expenses. We therefore intend to be able to create the difference against our competitors where competition is very extensive in the sector, by reducing our operational expenses and increas-ing our profitability.

AE is ready to lock on for being a global player at 2015. All the AE family will continue to work hard and to crown their successes in order to increase the added value we provide to the Turkish economy, to further enlarge our employment and to keep our flag flying in the new regions other than the ones we are already active.

ChairmanKemal Kızılhan

02


BOARD of DIRECTORSBOARD MEMBERS

KEMAL KIZILHANChairman

He was born in 1955 at Rize where he went to primary and high school. He was graduated from Yıldız Technical University at 1981 in Electrical Engineering. He started his career at Set Elektrik Ltd. He established his first company at 1981 called Arma Engineering which has handed over nu-merous important projects in the construction sector and where he was the chairman of Arma Engineering’s group of companies until 2000. In October 2001 two strong and leading companies of the Turkish engineering sector name-ly ARMA ENGINEERING AND TRADE and ELEKTROPANÇ ELECTRICAL INDUSTRY AND TRADE CORP. joined their capa-bilities and resources to establish AE ARMA-ELEKTROPANÇ. Kemal Kızılhan is the chairman of the board since the es-tablishment. He is the founder partner of ETMD (Electrical Contractor & Engineer Association) and member of EMO (Chamber of Electrical Engineer).

A. MEDİH ERTAN Vice Chairman

He was born at 1952 at Istanbul. He was graduated from Istanbul Technical University at 1973. He started his career with his scolarship at Turkish Government Atomic Energy Commission at ÇNAEM (Çekmece Nuclear Research Train-ing Center) at TR-2 Reactor Expanding Department. Then he established his companies called Elektropanç Elektronik Ltd. Şti. at 1976 and Elektropanç Elektrik Ltd. Şti. at 1991. He is one of the founder partner of AE Arma-Elektropanç. He is member of EMO (Chamber of Electrical Engineer) and founder partner of ETMD (Electrical Contractor & Engineer Association) where he was the chairman at the 2nd term. A.Medih Ertan is currently the Vice Chairman of the board of AE Arma-Elektropanç.

03


HASAN İNCEBoard Member

He was born at Istanbul at 1960 and went to Kabataş Erkek High School in Istanbul. He did his bachelor in Elec-trical Engineering at Yıldız Technical University and his master in Business in İstanbul Technical University. He started his career at 1984 and estab-lished his first company at 1987. He was the founder partner of Elektro-panç Engineering. He is the Board Member of AE Arma-Elektropanç since 2001.

H. DEMİR ÖZKAYAGeneral Manager / Board Member

He was born at Istanbul at 1955. He went to Istanbul Erkek Lisesi for primary and high school. He was graduated from Istanbul Technical University in Electronics and Com-munication Engineering at 1978. He did his master degree in Electron-ics and Communication Engineering at the same university at 1980. He started his career as research assis-tant at Electrical Faculty of Istanbul Technical University at 1978. He had a scholarship from RWTH Aachen University in Germany where he had his master of science degree by 1981 and he worked as research assitant at automatic control faculty and did his postgraduate work between 1981 and 1984. After his short term mili-tary service he worked at Merk Tele-fonbau at Munich – Germany as soft-ware engineer in the development of the ISDN phones. Later he worked at Siemens Turkey from 1985 till 2000 respectively as commisioning engi-neer, sales and marketing engineer, marketing manager, project responsi-ble, project manager and department director at traffic signalisation, high-ways and building services depart-ments where he handed over numer-ous projects such as development of Istanbul traffic signalisation, railway systems, highways and building ser-vices. Halil Demir Özkaya moved to Elektropanç Engineering by 2000 and was the founder partner of AE Arma- Elektropanç. He is the General Man-ager and Board Member of the com-pany since the establishement. He is member of ETMD (Electrical Con-tractor & Engineer Association), İTÜ alumni, Turk Trade and Turkish Na-tional Committee on Illumination.

BURAK KIZILHANDeputy GM / Board Member

Burak Kızılhan was born at 1984 and graduated from French High School called Lycee Saint-Benoit in Istanbul, Turkey. Then he did his bachelor in Electrical & Electronics Engineering in University of Hertfordshire at London, UK. Further to his bachelor, he did his master of science degree in Engineer-ing Management in Brunel University at London, UK. He also completed his Executive Education in Finance at Harvard Business School at Boston, USA.

After his studies, he worked at Schneider Electric in London, UK for 2 years as a project manager. Further to his career in UK, he has returned to his family business called AE Ar-ma-Elektropanç and settled his life in UAE and became the business devel-opment manager and responsible for MENA (Middle East & North Africa) region’s operations of the company. He has returned to AE’s head office located in Istanbul, Turkey by January 2014 and became the Deputy General Manager and Board Member of the company.

Burak Kızılhan has been listed twice in the POWER 100 in the construc-tion sector issued by the prestigious Construction Week Magazine in the Middle East. He is the youngest per-son in the list. He has also been list-ed twice as the most promising 20 CEO’s list issued by Fortune Turkey.

• İstanbul İnşaatçılar Derneği (İNDER) Board Member

• Young Businessmen Association (GYİAD) Member

• Endeavor Turkey • EMO (Chamber of Electrical

Engineer) • Fenerbahçe SK Member• 1907 Derneği Member

04


Although AE has an electrical engineering roots, it has been provided engineering and contracting services in the electrical, electronic and mechanical since 15 years. AE is the leading regional MEP player which has the most inter-national experiences among the other Turkish contractors in the sector.Being able to provide full MEP services from one company with great success differs AE widely from its competitors which are capable of providing services for only one disci-pline – electrical or mechanical.

Today, we are the only Turkish MEP (Mechanical, Electrical and Plumbing) company which is carrying out its activi-ties in many countries. Only the 4 out of 21 ongoing proj-ects are located in Turkey. Having operations in 8 different countries naturally makes us easily affected by the volatile political and economic developments occurred around the world. Nevertheless, we have been very successful in keep-ing uncontrollable risks at the minimum level along with the correct strategies. While most of our competitors are trying to grow only in Turkey or in one or two foreign coun-tries, we, as AE, have the honour to represent our country by carrying out large projects across three continents and eight countries.

The fact that we are the leading regional MEP player carry-ing out projects across 3 continents and known as reliable in the market, results our success story by meeting dif-ferent cultures, standards and expectations in the correct way. We have strength and dynamism of being able to develop regional and international strategies instead of a standard approach. This approach sets us aside from our competitors and make us closer to a possible business potentials.

Another important factor behind our success arises from understanding the expectations of different customers in different regions and cultures and meet their expectations at the highest quality level. Being able to see reflection of global and regional trends on customer expectations in the correct way and on time and being able to produce reactive and proactive solutions in short terms, have put us in a place where we are able to compete with the oth-

BOARD of DIRECTORSREPORT of the BOARD of DIRECTORS

05


er leading global players. Accumulation of knowledge and business experience together with our business partners which are in the position of being connoisseurs of the sec-tor, plays a big role on our success. We have designated a new term in the sector which is the “Technical Contracting” which is usually called MEP in the world. This proves that AE is the pioneer of the industry.

We have been listed amongst the largest 500 companies of Turkey published by Fortune Turkey and Capital Turkey magazines. We have no doubt that we shall be able to clinch our position by moving upwards for every year. In addition, we have been listed at 46th place in “Top largest

50 Turkish Companies Abroad” issued by Capital Turkey magazine.

AE is the only MEP contractor among the Turkish contrac-tors listed at the “Top 250 International Contractors” is-sued by the Engineering News Record (ENR).

With the success of ENR list, we have taken the most im-portant step on the path of being a global player. We wish that this success had separated us from all of our compet-itors and had moved us to a different position.

06


AE Arma-Elektropanç has been completed with great suc-cess numerous MEP projects accross 3 continents and 8 countries.In October 2001 two strong and leading companies of the Turkish engineering sector namely ARMA ENGINEERING AND TRADE and ELEKTROPANÇ ELECTRICAL INDUSTRY AND TRADE CORP. joined their capabilities and resources to es-tablish AE ARMA-ELEKTROPANÇ.

With the ample experiences of both groups, and the state of the art technologies, this alliance will enable AE ARMA- ELEKTROPANÇ to optimize services and perform a leader-ship role in Turkey and the continually growing internation-al markets by applying innovative, skilled engineered and cost effective solutions.

With years of experience and innovative solutions, as an international technical service provider, AE has successfully completed numerous type of buildings such as multi-pur-pose office and housing complexes, educational and com-mercial buildings, hospitals, shopping centres, tourism and entertainment facilities, industrial facilities and airports.

AE ARMA-ELEKTROPANÇ at a GLANCECOMPANY PROFILE

Shareholders Shares

Kemal Kızılhan Chairman 14,3%

A. Medih Ertan Vice Chairman 14,3%

Hasan İnce Board Member 14,3%

H. Demir Özkaya Board Member 4,1%

A. Asım Coşkun Shareholder 3,1%

Ersan Can Shareholder 1%

Imtech 49%

08


SUMMARY OF BALANCE SHEET 2014 2013 2012

Current Assets 297.097.069 308.960.009 206.681.385

Long-Term Assets 13.606.059 19.453.259 19.946.397

Total Assets 310.703.128 328.413.268 226.627.782

Short Term Liabilities 172.150.541 158.358.751 113.980.303

Long Term Liabilities 42.194.111 134.385.932 78.951.070

Equity 96.358.476 35.668.585 33.696.409

Total Equity and Liabilities 310.703.128 328.413.268 226.627.782

SUMMARY OF INCOME STATEMENT (TL) 2014 2013 2012

Total Revenue 386.935.299 330.859.821 260.928.171

Gross Profit 49.511.768 40.849.058 37.112.044

EBIT 23.924.048 14.833.967 16.180.883

Net Profit / (Loss) of the Period 3.766.978 2.318.103 1.119.487

KEY RATIO 2014 2013 2012

Current Ratio = Current Assets / Short Term Liabilities 1,73 1,95 1,81

Leverage Ratio = Total Liabilities / Total Assets 0,69 0,89 0,85

Gross Profit Margin 12,80% 12,35% 14,22%

EBIT Margin 6,18% 4,48% 6,20%

Net Profit / (Loss) Margin 0,97% 0,70% 0,43%

Number of Employee 2249 1784 1415

AE ARMA-ELEKTROPANÇ at a GLANCEKEY INDICATORS

09


4.000.000

2.000.000

3.000.000

3.76

6.97

8

2.31

8.10

3

1.11

9.48

7

1.000.000

133.122.988 54.945.096

14.562.559

131.187.75353.116.903

0

2014 2013 2012

400.000.000

200.000.000

300.000.000

100.000.000

386.

935.

299

330.

859.

821

260.

928.

171

0

2014 2013 2012

TOTAL REVENUE (TL)

TOTAL REVENUE SPLIT BY COUNTRY (TL)

2.500

1.500

2.000

1.000 2.24

9

1.78

4

1.41

50

2014 2013 2012

NUMBER OF EMPLOYEESNET PROFIT OF THE PERIOD (TL)

500

RUSSIAN FEDERATION

AZERBAIJAN

ALGERIA

UAE

TURKEY

10


VISIONMISSIONOur vision is to become an international player not only in the electrical and mechanical sectors (MEP), but also within the tourism, health and renewable energy sectors with an aim to create partnerships, long term investments, turnkey solutions and ultimately to maximise customer sat-isfaction ensuring we provide you with an optimum and reliable solution for your business.

With the supreme breadth of knowledge, products and services, our mission is to resolve challenging technical design and engineering problems using successful project implementation, combining our expertise with our superior technology and working towards the highest delivery stan-dards for a cost effective solution.

AE ARMA-ELEKTROPANÇ at a GLANCEMISSION & VISION

With our employees who are always open for development and innovation, we are moving further in the changing and developing world.

11


In order to provide widespread, specialized and active ser-vices at the international platform, AE is continuing its ac-tivities with branch offices and local companies accross 3 continents.

AE Arma-Elektropanç Branch Offices Shares

AE Arma-Elektropanç Elektromekanik San. Müh. Taa. ve Tic. A.Ş. - Moscow / Russian Federation 100%

AE Arma-Elektropanç Elektromekanik San. Müh. Taa. ve Tic. A.Ş. - Abu Dhabi / UAE 100%

AE Arma-Elektropanç Elektromekanik San. Müh. Taa. ve Tic. A.Ş. - Baku / Azerbaijan 100%

AE Arma-Elektropanç Elektromekanik San. Müh. Taa. ve Tic. A.Ş. - Nicosia / TRNC 100%

AE Arma-Elektropanç Local Companies Shares

AE Arma-Elektropanç Elektromekanik San. Müh. Taa. ve Tic. A.Ş. - Turkey 100%

OOO AE Arma-Elektropanc Elektromekanik - Russian Federation 100%

Arma Elektropanc Electromechanical Co. L.L.C. - Dubai / UAE 49%

AE Arma-Elektropanc Electromechanical Contractıng Qatar W.L.L. - Qatar 48%

AE Arma-Elektropanc Electromechanical Contracting Lebanon S.A.R.L. - Lebanon 45%

AE ARMA-ELEKTROPANÇ at a GLANCEGROUP of COMPANIES

12


In October 2001 two strong and leading companies of the Turkish engineering sector namely Arma Engineer-ing and Trade (established in 1986) and Elektropanç Electrical Industry and Trade Corporation (established in 1991) joined their capabilities and resources to estab-lish AE ARMA-ELEKTROPANÇ.

TIMELINE

1986 1991

Elek

trop

anç

Elec

tric

al Ind

ustry

& T

rade

Cor

pora

tion

est

ab-

lishe

d.

Arm

a En

gine

erin

g &

Tra

de e

stab

lishe

d.

2004

Elec

tric

al a

nd e

lect

roni

c w

orks

of Nat

o Su

mm

it in

İsta

nbul

ha

ve b

een

carrie

d ou

t w

ith

grea

t su

cces

s.

2006

Arm

a El

ektrop

anc

Elec

trom

echa

nica

l Co

. L.

L.C.

est

ablis

hed

in D

ubai

, UAE.

2001

Arm

a En

gine

erin

g &

Ele

ktro

panç

Ele

ctrica

l jo

ined

the

ir

forc

es to

esta

blis

h AE

Arm

a-El

ektrop

anç.

2005TR

NC

bran

ch o

ffice

s es

tabl

ishe

d.

2003

OOO A

E Arm

a-El

ektrop

anc

Elek

trom

ekan

ik e

stab

lishe

d in

Rus

sia.

AE ARMA-ELEKTROPANÇ at a GLANCE

13


2011

AE

Arm

a-El

ektrop

anc

Elec

trom

echa

nica

l Co

ntra

ctin

g Qat

ar

W.L

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tabl

ishe

d in

Qat

ar.

2009

AE

Abu

Dha

bi b

ranc

h of

fices

est

ablis

hed.

2010

AE

Aze

rbai

jan

bran

ch o

ffice

s es

tabl

ishe

d.

2014

AE

boug

ht b

ack

31%

sha

res

whi

ch 8

0% h

ave

alre

ady

been

so

ld to

Imte

ch N

.V. Th

e re

mai

ning

am

ount

of 49

% w

ill b

e bo

ught

bac

k by

AE

by A

pril

2015

.

AE

had

a ou

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ndin

g ye

ar w

ith

10 p

rest

igio

us p

roje

cts

wor

th

$250

M a

nd w

hich

the

tot

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area

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1M m

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Rus

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to A

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2012AE

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50%

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80%

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f AE

Arm

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acqu

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N.V

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Oct

ober

.

2007

All

the

MEP

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ks o

f th

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Apa

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ents

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ated

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-mad

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land

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led

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) ha

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14


AE ARMA-ELEKTROPANÇ at a GLANCESTRATEGIC TARGETS

15

Expanding to new markets, we are aiming to be the MEP contractor of the sophisticated projects, maintaining our high quality and reputation, looking forward to establish-ing cooperation with the global players of our sector, tar-geting sustainability under risk & cost control. Board of Directors & senior management are constantly monitoring activities according to our strategic targets. During the pe-riodical and frequent management meetings, performance of the company is under control and new targets and strat-egies are determinded if necessary.

2015 targets:

• We are planning to expand our operations to new mar-kets like Iran and Kazakhstan,

• We would like to become a key player in Central African markets,

• We would like to be a part of infrastructure and railway projects,

• We would like to strengthen our strong equity structure more,

• We would like to grow at least 15% while maximize our profitability in the new projects,

• We will continue to implement corporate governance principles.

While we have been providing MEP contracting services with our accumulated experience of long years, as an in-novative company with increasing value, our main strategy is to have a customer oriented approach.


AE ARMA-ELEKTROPANÇ at a GLANCEAWARDS

AE Arma-Elektropanç has been listed among the Top 250 International Contractor issued by the prestigious Engi-neering News Record (ENR) magazine at 2014. AE is the only MEP contractor listed among the other 42 Turkish contractors.

Additionally, AE sealed its success by taking place in the Fortune 500 and Capital 500 lists in 2014 issued by the prestigious economy and business magazinse called For-tune Turkey and Capital Turkey.

Being the top MEP contractor of Turkey and one of the the leading MEP player in the region, AE Arma-Elektropanç sealed its success by the awards received over the year.

16


AE has successfully completed the technical contracting of more than 7 million sqm of various functional buildings across 3 continents namely Europe, Asia and Africa.

AE provides services and solutions by applying the latest state of the art technologies, particularly in energy saving and green buildings.

AE covers the entire range of electrical engineering solu-tions of every size, such as low, medium and high tension, energy management and distribution, measuring and con-trol technology, instrumentation, integrated security and building management.

AE covers the entire spectrum of air, climate and energy solutions, including HVAC cold and heat storage, clean-room technology, piping, fire-extinguishing technology and mechanical process installations.

For the industrial sector, the focus of AE is on power plants, the automotive industry, chemicals and petrochem-icals, pharmaceuticals, oil & gas, the animal feed, aircraft and food industry.

For Traffic & Infrastructure, AE provides the measurement, analysis and improvement of traffic flow, traffic manage-ment, infrastructure and safety, airport infrastructure, rail-way, tram and metro, tunnels, bridges and locks, transport and distribution networks, public lighting, waste and drink-ing water treatment and management.

AE manages technical facility services like operation & maintenance and repair of multivendor equipment’s in intelligent residences, offices, industrial facilities, power plants, airports and aircraft maintenance centres. AE ser-vices protects the technical assets and reduce OPEX.

SERVICESMECHANICAL, ELECTRICAL & PLUMBING (MEP) ENGINEERING

17


SERVICESFOOTPRINT

18

AE Arma-Elektropanç has 21 ongoing projects across Turkey, Russian Federation, Azerbaijan, Algeria and UAE (Dubai & Abu Dhabi).


AE had an outstanding year with 10 new prestigious proj-ects worth of $250M and with a total construction area of 1M m2 located from Russian Federation to Algeria.

ACTIVITIES at 20142014 at a GLANCE

19

One of the leading MEP player of Turkey, Russian Fed-eration and Middle East, AE Arma-Elektropanç has been awarded for 10 prestigious international projects in 2014. AE has been awarded for all the MEP works of projects located 3 nos in Dubai, 3 nos in Moscow, 1 no in Istanbul, Abu Dhabi, Algeria and Baku.

The total contract value of these 10 projects is $250M and the total construction area is 1 million m2. The projects are; Baku White City (Baku), Abu Dhabi Marina City Devel-opment-Plot 2 (Abu Dhabi), Oasis Mix Used Building (Mos-cow), Garanti Bank Pendik Technology Campus (Istanbul), Algorithm Multifunctional Business Complex (Moscow), Algeria Grand Mosque K building (Algiers), University of Dubai (Dubai), Al Maktoum Hospital Redevelopment Phase 2 (Dubai), Legoland Dubai Package 2 (Dubai) and Fili Grad (Phase 2) Multifunctional Complex (Moscow).

AE Arma-Elektropanç has been listed among the Top 250 International Contractor issued by the prestigious Engi-neering News Record (ENR) magazine at 2014. AE is the only MEP contractor listed among the other 42 Turkish contractors.

Additionally, AE sealed its success by taking place in the Fortune 500 and Capital 500 lists in 2014 issued by the prestigious economy and business magazines called For-tune Turkey and Capital Turkey.


ACTIVITIES at 2014NEW & ONGOING PROJECTS

20

Project Name Contractor Scope Of Works

ProjectLocation

Total Area(m2)

Project Duration Project Value

Required Manpower(man-hour)

Al Maktoum Site Development

Phase 2Shapoorji Pallonji MEP Works Dubai /

UAE 142.000 2014 -Ongoing $39.617.486 1.975.000


ProjectLocation

Total Area(m2)



Legoland Dubai(Package 2)

Belhasa Six Cons. & Orascom Cons. Ind. JV MEP Works Dubai /

UAE 25.419 2015 -Ongoing $9.234.973 330.000

AE Arma-Elektropanç has been awarded for 10 prestigious international projects in 2014. The projects are; Baku White City (Baku), Abu Dhabi Ma-rina City Development-Plot 2 (Abu Dhabi), Oasis Mix Used Building (Mos-cow), Garanti Bank Pendik Technology Campus (Istanbul), Algorithm Multi-functional Business Complex (Moscow), Algeria Grand Mosque K Building (Algiers), University of Dubai (Dubai), Al Maktoum Hospital Redevelopment Phase 2 (Dubai), Legoland Dubai Package 2 (Dubai) and Fili Grad (Phase 2) Multifunctional Complex. AE has 11 other ongoing projects for 2014.

AE 2014 ANNUAL REPORT21


ProjectLocation

Total Area(m2)



Fili Grad (Phase 2) Multifunctional

ComplexAnt Teq MEP Works

Moscow / Russian

Federation191.200 2014 -

Ongoing $28.527.980 1.328.000


ProjectLocation

Total Area(m2)



Oasis Multifunctional Commercial Business

ComplexProcons MEP Works

Moscow /Russian


Ongoing $23.500.000 440.000


ProjectLocation

Total Area(m2)



Grand Mosque of Algiera -K Building CSCEC MEP Works Algiers /

Algeria 5.717 2014 -Ongoing $15.096.635 40.000

AE 2014 ANNUAL REPORT 22


ProjectLocation

Total Area(m2)



University Of Dubai Kier LLC MEP Works Dubai / UAE 21.200 2014 -

Ongoing $7.827.000 376.000


ProjectLocation

Total Area(m2)



Abu DhabiMarina City Nurol Construction MEP Works Abu Dhabi /

UAE 121.000 2014 -Ongoing $31.448.000 1.788.000


ProjectLocation

Total Area(m2)



Algorithm Multifunctional

Business ComplexAnt Yapı - Procons Electrical

Works

Moscow / Russian


Ongoing $6.500.000 130.000



ProjectLocation

Total Area(m2)



Garanti Bank Technology Campus Garanti Bank MEP Works İstanbul /

Turkey 142.000 2013 -Ongoing $36.856.488 1.042.000


ProjectLocation

Total Area(m2)



Paladium Towers Nida Construction MEP Works İstanbul /Turkey 99.784 2013 -

Ongoing $10.096.135 278.000

23


ProjectLocation

Total Area(m2)



Baku White City Pasha Construction MEP Works Baku /Azerbaijan 77.000 2014 -

Ongoing $42.500.000 610.000



ProjectLocation

Total Area(m2)



Nurol Tower Nurol GYO Mechanical Works

İstanbul /Turkey 68.000 2013 -

Ongoing $6.740.196 130.000


ProjectLocation

Total Area(m2)



Grand Mosque In Algiers CSCEC Electrical

WorksAlgiers / Algeria 443.000 2013 -

Ongoing $46.870.234 1.600.000


ProjectLocation

Total Area(m2)



Kuveyt TürkBanking Center Cihan Construction MEP Works Kocaeli /

Turkey 81.620 2012 -Ongoing $21.381.750 450.000

24



ProjectLocation

Total Area(m2)



Shahdag Winter Tourism Complex Pasha Construction MEP Works Shahdag /

Azerbaijan 55.000 2012 -Ongoing $24.498.402 320.000


ProjectLocation

Total Area(m2)



Socar Tower Tekfen Construction Electrical Works

Baku /Azerbaijan 100.000 2012 -

Ongoing $25.685.448 267.000


ProjectLocation

Total Area(m2)



Pulkovo St. Petersburg Airport Terminal

BuildingIctas Construction Electrical

Works

St. Petersburg / Russian


Ongoing $32.227.617 465.000

25



ProjectLocation

Total Area(m2)



Oko Tower Ant Yapı Construction MEP Works

Moscow / Russian


Ongoing $81.700.000 1.800.000


ProjectLocation

Total Area(m2)



Noyabrsk Maternity Hospital (Yamal

Projetcs)Kontek Construction Electrical

Works

Noyabrsk / Russian


Ongoing $16.436.005 84.000

26


ProjectLocation

Total Area(m2)



Mercury City Tower Rasen Construction Electrical Works

Moscow / Russian


Ongoing $53.133.719 491.000



ProjectLocation

Total Area(m2)



Bab Al Qasr Hotel & Service Apartments Nurol Construction MEP Works Abu Dhabi /

UAE 155.000 2009 -Ongoing $50.000.000 2.650.015

Total Ongoing ProjectsConstruction Area

Total Ongoing ProjectsContract Value

2.438.000 m2 $609.878.068

27


Over the years, AE has successfully completed the MEP contracting projects of more than 7 million sqm of various functional buildings across 3 continents namely Europe, Asia and Africa.

ACTIVITIES at 2014COMPLETED PROJECTS


ProjectLocation

Total Area(m2)



Tanrıverdi Maçka Hotel Bti Construction MEP Works İstanbul /

Turkey 5.200 2013 - 2014 $1.918.980 43.377


ProjectLocation

Total Area(m2)



Piri Reis University Sera Yapı Mechanical Works

İstanbul /Turkey 46.150 2011 –

2014 $6.067.736 144.000

28



ProjectLocation

Total Area(m2)



Electrical Distribution Network at The Çırağan Palace Kempinski Hotel

Çırağan Sarayı ve İşletmeleri Geliştirme İnşaat ve Turizm A.Ş.

MEP Works İstanbul /Turkey - 2013 -

2014 $919.291 20.241


ProjectLocation

Total Area(m2)



The Rehabilitation of Electrical Equipment Room at The

Çırağan Palace Kempinski Hotel

Çırağan Sarayı ve İşletmeleri Geliştirme İnşaat ve Turizm A.Ş.

MEP Works İstanbul /Turkey - 2012 -

2014 $3.904.629 36.000


ProjectLocation

Total Area(m2)



Unilever-Algida Icecream Factory Karsan-Aksa Electrical

WorksKonya /Turkey 47.800 2012 -

2014 $8.943.238 133.870

29



ProjectLocation

Total Area(m2)



Al Shobub Private School Nurol Construction MEP Works Abu Dhabi /

UAE 14.000 2012 - 2013 $6.712.328 60.000


ProjectLocation

Total Area(m2)



Aquapark Koçak Construction MEP WORKSMoscow /Russian


2013 $19.692.533 460.000


ProjectLocation

Total Area(m2)



Noyabrsk Aids & Infection Hospital Kontek Construction Electrical

Works

Noyabrsk / Russian


2013 $2.500.000 44.000

30



ProjectLocation

Total Area(m2)



Jumeirah Village Villas (856 Nos) Nurol Construction MEP Works Dubai /

UAE 203.000 2007 - 2013 $50.546.448 2.623.000


ProjectLocation

Total Area(m2)



Kazan International Airport Terminal 1A

Monotek Construction

Electrical Works

Kazan /Russian


2013 $2.953.289 50.000


ProjectLocation

Total Area(m2)



Gubinsky Pool & Sport Complexe Kontek Construction Electrical

Works

Gubinsky /Russian


2013 $1.800.000 60.000

31



ProjectLocation

Total Area(m2)



Gubinsky Art School Kontek Construction Electrical Works

Gubinsky /Russian


2013 $1.300.000 20.000


ProjectLocation

Total Area(m2)



White Garden Office Ant Yapı Construction

Electrical Works

Moscow /Russian


2013 $17.448.000 250.000


ProjectLocation

Total Area(m2)



Gubinsky 140People Nursery Kontek Construction Electrical

Works

Gubinsky /Russian


2013 $1.000.000 25.000

32



ProjectLocation

Total Area(m2)



Gubinsky 240People Nursery Kontek Construction Electrical

Works

Gubinsky /Russian


2013 $800.000 17.000


ProjectLocation

Total Area(m2)



Kazan International Terminal 1


Electrical Works

Kazan /Russian


2013 $3.310.416 32.541


ProjectLocation

Total Area(m2)



Tushino Entertainment & Shopping Center

Ant Yapı Construction

Electrical Works

Tushino / Russian


2012 $9.860.624 120.000

33



ProjectLocation

Total Area(m2)



Rixos The Palm Dubai

Al Fattan Mrcb Construction MEP WORKS Dubai /

UAE 51.000 2011 - 2012 $15.300.546 710.958


ProjectLocation

Total Area(m2)



Astrakhan Multifunctional

Shopping Center

Art Structure Construction MEP Works

Astrakhan / Russian


2012 $12.300.710 325.625


ProjectLocation

Total Area(m2)



Sixteen Nine - Istanbul Astay Construction Electrical

Worksİstanbul /

Turkey 153.569 2011 - 2012 $5.333.896 202.115

34



ProjectLocation

Total Area(m2)



Kremlin Arhiereyskiy Dom

Korpus N9 Bulding


Electrical Works

Kazan /Russian


2012 $673.632 5.558


ProjectLocation

Total Area(m2)



Renovation of Hotel El Aurassi Kontek Construction Electrical

WorksAlgiers /Algeria 58.570 2009 -

2012 $9.980.086 33.976


ProjectLocation

Total Area(m2)



Radisson Blu HotelAtaşehir

Ant Yapı Construction

Electrical Works


2011 $3.089.144 84.000

35



ProjectLocation

Total Area(m2)



Ak-Asya Acibadem Residence

Bahadir Construction

Electrical Works


2011 $4.171.394 85.000


ProjectLocation

Total Area(m2)



Myitishi Krasniy Kit Shopping Center

Monotek Construction MEP Works

Moscow /Russian


2011 $3.757.911 50.250


ProjectLocation

Total Area(m2)



Imperial House Ant Yapı Construction

Electrical Works

Moscow /Russian


2011 $5.379.125 57.425

36



ProjectLocation

Total Area(m2)



Anthill Residence Ant Yapı Construction

Electrical Works


2011 $8.350.000 228.000


ProjectLocation

Total Area(m2)



Geolog Stadium Administration

Building Kontek Construction Electrical

Works

Tumen / Russian


2011 $6.935.952 81.702


ProjectLocation

Total Area(m2)



Jumeirah Zabeel Palace Zsml Construction MEP Works Dubai /

UAE 135.000 2007 - 2010 $19.672.131 1.060.985

37



ProjectLocation

Total Area(m2)



Four Winds Residential & Office

BuildingRasen Construction Electrical

Works

Moscow /Russian


2010 $6.489.392 92.254


ProjectLocation

Total Area(m2)



Residential Buildings & Car Park For Abu Dhabi

Police GHQDhabi Contracting MEP Works Abu Dhabi /

UAE 47.500 2010 - 2010 $4.781.420 340.245


ProjectLocation

Total Area(m2)



City Of Capitals Ant Yapı Construction

Electrical Works

Moscow /Russian


2010 $55.500.000 2.000.000

38



ProjectLocation

Total Area(m2)



Areva ADH2 Distribution Transformers Production

Facilities

Bahadır Construction MEP Works Kocaeli /

Turkey 36.165 2009 - 2010 $6.894.988 135.000


ProjectLocation

Total Area(m2)



Ulyanovsk Pushkaryovskoe Koltso

Shopping Center


Electrical Works

Ulyanovsk / Russian


2010 $3.092.367 31.900


ProjectLocation

Total Area(m2)



IT Park Monotek Construction

Electrical Works

Kazan / Russian


2010 $4.289.531 38.500

39



ProjectLocation

Total Area(m2)



Mardan Palace Ast Construction Electrical Works

Antalya / Turkey 170.000 2006 -

2010 $19.318.494 224.723


ProjectLocation

Total Area(m2)



Palladium Shopping Center & Residence Kozken Construction Electrical

Worksİstanbul /

Turkey 210.000 2007 - 2010 $9.866.250 209.645


ProjectLocation

Total Area(m2)



Palm Deira Nakheels Sales

OfficeZSML Construction MEP Works Dubai /

UAE 18.000 2007 - 2009 $7.650.273 290.266

40



ProjectLocation

Total Area(m2)



Westerngate Business Park

Asc Art Structure Construction

Electrical Works

Moscow /Russian


2009 $6.350.381 206.646


ProjectLocation

Total Area(m2)



Levent Loft I Akfen Construction Electrical Works


2009 $2.422.585 45.729


ProjectLocation

Total Area(m2)



Nrb Multifunctional Office Complex Rasen Construction Electrical

Works

Moscow /Russian


2009 $6.097.318 34.250

41



ProjectLocation

Total Area(m2)



DMCC Gold & Silver Towers

Bin Belaila Baytur General Contracting

Electrical Works

Dubai / UAE 96.000 2006 -

2009 $9.016.393 1.734.605


ProjectLocation

Total Area(m2)



Khanty Mansiysk Ice Hockey – I & II Kontek Construction Electrical

Works

Khanty Mansiysk / Russian


2009 $4.630.000 48.056


ProjectLocation

Total Area(m2)



Stargate Residences Baytur Construction MEP Works Istanbul / Turkey 63.500 2006 -

2009 $2.056.000 58.610

42



ProjectLocation

Total Area(m2)



Incubateur Building In Cyberpark Kontek Construction Electrical

WorksAlgiers / Algeria 13.000 2007 -

2009 $1.754.500 39.000


ProjectLocation

Total Area(m2)



Tyoply Stan Shopping Center


Electrical Works

Moscow /Russian


2008 $4.260.671 115.172


ProjectLocation

Total Area(m2)



Khanty Mansiysk Law Institute

BuildingsKontek Construction Electrical

Works



2009 $2.949.000 62.301

43



ProjectLocation

Total Area(m2)



Multilocator Building In Cyberpark

Kontek Construction Electrical Works

Algiers / Algeria 23.000 2005 -

2008 $3.134.797 29.757


ProjectLocation

Total Area(m2)



Q-Park Logistics Center


Electrical Works

Kazan / Russian


2008 $5.050.417 114.646


ProjectLocation

Total Area(m2)



Tyumen Drama & Comedy Theatre Kontek Construction Electrical

Works

Tumen / Russian


2008 $3.335.000 81.893

44



ProjectLocation

Total Area(m2)



Volgamall Shopping & Entertainement

CenterKoçak Construction Electrical

Works

Volgagrad / Russian


2008 $4.500.000 89.017


ProjectLocation

Total Area(m2)



Vipoil Shopping Center Koçak Construction Electrical

Works

Volgagrad / Russian


2008 $2.912.000 60.000


ProjectLocation

Total Area(m2)



Denso Auto Parts Inc. Factory Building

Yapı Merkezi Construction

Electrical Works

Kocaeli / Turkey 20.000 2006 -

2008 $1.180.000 37.000

Temsili fotoğraf

45



ProjectLocation

Total Area(m2)



Kale Outlet Center Kale Construction Electrical Works

Istanbul / Turkey 75.000 2005 -

2008 $2.524.334 79.608


ProjectLocation

Total Area(m2)



Kaliningrad Eurocenter Kontek Construction Electrical

Works

Kaliningrad / Russian


2008 $4.507.725 133.484


ProjectLocation

Total Area(m2)



Novotel & Ibis Hotel Marmara Akfen Construction Electrical

WorksIstanbul /

Turkey 26.500 2006 - 2008 $3.701.760 74.000

46



ProjectLocation

Total Area(m2)



Sisli Plaza & Residence


Electrical Works

Istanbul / Turkey 96.000 2006 -

2008 $2.638.238 101.290


ProjectLocation

Total Area(m2)



Kutuzovsky Multifunctional

Dwelling ComplexKontek Construction MEP Works

Moscow /Russian


2007 $1.760.500 50.000


ProjectLocation

Total Area(m2)



Domodedovo Shopping Center Koçak Construction Electrical

Works

Moscow /Russian


2007 $1.903.328 45.000

47



ProjectLocation

Total Area(m2)



Avilon Plaza Monotek Construction

Electrical Works

Moscow /Russian


2007 $2.450.000 126.000


ProjectLocation

Total Area(m2)



Lotte Hotel & Business Center

Lotte Engineering & Construction

Electrical Works

Moscow /Russian


2007 $5.268.595 110.891


ProjectLocation

Total Area(m2)



Kozyatağı Baytur Residence Baytur Construction Electrical

WorksIstanbul /

Turkey 101.000 2005 - 2007 $3.082.000 75.000

48



ProjectLocation

Total Area(m2)



Mercure Hotel Akfen Construction Electrical Works

Girne / T.R.N.C. 32.000 2005 -

2007 $5.002.978 80.880


ProjectLocation

Total Area(m2)



Pickling Plant / (Lpc-2) Codest International MEP Works

Lipetsk / Russian


2007 $3.091.146 51.306


ProjectLocation

Total Area(m2)



The Palm Jumeirah Shoreline Apartments

(Package 1 & 3)

Bin Belaila Baytur General Contracting MEP Works Dubai /

UAE 360.000 2004 - 2007 $24.000.000 5.504.768

49



ProjectLocation

Total Area(m2)



Ankamall Shopping Center (Gimat)


Electrical Works

Ankara / Turkey 167.000 2005 -

2007 $6.297.744 118.717


ProjectLocation

Total Area(m2)



Kalingrad Plaza Kontek Construction MEP WorksKaliningrad /

Russian Federation

30.000 2005 - 2007 $1.600.000 60.000


ProjectLocation

Total Area(m2)



Russian Standard Vodka Distillery

Plant

Soyak International Construction

Electrical Works

St. Petersburg / Russian


2007 $8.850.000 45.356

50



ProjectLocation

Total Area(m2)



Khanty Mansiysk University Sports

ComplexKontek Construction Electrical

Works



2006 $973.173 36.000


ProjectLocation

Total Area(m2)



Europark Shopping Center Kontek Construction Electrical

Works

Moscow /Russian


2005 $3.734.625 130.000


ProjectLocation

Total Area(m2)



Samara Megacity Shopping Center


Electrical Works

Samara / Russian


2005 $2.352.920 75.000

51



ProjectLocation

Total Area(m2)



Kalujskaya Shopping Center


Electrical Works

Moscow /Russian


2005 $624.000 30.000


ProjectLocation

Total Area(m2)



Prime Ministry Headquarter Building Of The Republic Of Tatarstan


Electrical Works

Kazan / Russian


2005 $2.307.262 36.000


ProjectLocation

Total Area(m2)



Nato Istanbul Summit-2004

Zet Advertising Organisation

Electrical Works

Istanbul / Turkey - 2004 -

2004 $2.403.047 20.000

52



ProjectLocation

Total Area(m2)



Michelin Tyre Plant L.L.C. K &Y Construction MEP Works

Davydova / Russian


2004 $2.100.000 18.000


ProjectLocation

Total Area(m2)



Yugra State University Building

ComplexKontek Construction Electrical

Works



2003 $1.650.000 95.000


ProjectLocation

Total Area(m2)



Samara Shopping Center


Electrical Works

Samara / Russian


2004 $1.476.000 35.000

53



ProjectLocation

Total Area(m2)



Anglo - American School Of Moscow

Samsung Engineering & Construction

Electrical Works

Moscow /Russian


2001 $2.400.000 45.000

Total Completed Projects Construction Area 4.648.537 m2

54


SUSTAINABILITYHUMAN RESOURCES POLICY

The most important factor of our success is the Human Resource. Our HR systems is to establish “the spirit of be-ing an AE member” for our employees.

Keys to our success;

• Ability to use modern technologies• Self development• Be modest• Being a solution producer• Being reliable and honest• Establishing positive communication with the others• Human love• Accomplishing results• Unity and solidarity• Discipline• Idea generation• Loyalty• Having information• Being experienced and productive in the works• Hardworking• Sense of belonging, orderliness, fairness, taking initia-

tives• Teamwork• Unity of targets

We work with this spirit and expect the new comers to have the same understanding.

One of our fundamental policies is to find skilled labor force, to motivate and ensure its working productively, to make it permanent, to develop it, and to conduct qualified back up for the future of the organization.

Our aim as the management is to act fair and honest against all of our employees and candidates, to care about them in all of our activities, and to develop their trust and loyalty feelings by let them feel valued and ultimate-ly establishing labor force satisfied with the job and the enterprise.

For growth and strengthening of our entity, we expect our managers to be in collaboration with the employees, as open, participative, and development focused.

Our HR systems is to be established on trust, develop-ment, persuasion, collaboration, justice, appreciation, par-ticipation, caring and effective leadership understanding and philosophies. It is our fundamental policy with the HR systems to establish high productivity, satisfaction, loyalty, development, ability to adopt the changes, discipline, and motivation in the personnel.

55


The norm teams should be defined as per the annual tar-gets and operations of the company. HR planning should be conducted as per the annual target and the norm teams. All managerial decisions related to HR are to be made considering only the work related parameters ob-tained from Business Analyses. The profiles of the people should be defined required for the teams, and it should be attempted to keep such profiles as updated. The phi-losophy of “Right person at the right place” should be realized by employing our candidates/ employees in the most appropriate work for the information, skills and quali-fications required for the applicable position as determined in the Business Analyses, by also considering their skills and qualifications.

The main responsibility for application of HR Policies and Systems belongs to our managers. Each of the managers should also consider himself as a HR Manager and act accordingly. He/ she should establish face-to-face commu-

nication with the employees in his/ her area of work, and play an effective role in solving the problems and the ap-plications.

Any and all vertical and horizontal movements related to the organization and human shall be realized with the ap-proval of the senior management, and under the supervi-sion and coordination of the HR. Motivation application and methods should be developed by the Management and Human Resources in order to reduce the turnover rates of the skilled personnel.

In order to ensure the young teams to back up the future of the organization, it is of great importance they would be developed in professional knowledge, management, and personal development subjects starting from today, and their careers should be directed properly as per their skills and qualifications.

56


SUSTAINABILITYQUALITY, OCCUPATIONAL HEALTH, SAFETY & ENVIRONMENTAL POLICY

AE Arma-Elektropanç’s head office, branch offices, ser-vice and construction sites are dedicated themselves to continuous improvement in Quality, Occupational Health, Safety and Environment issues.AE Arma-Elektropanç has committed to provide the con-ditions and resources to ensure the following objectives within the frame of Quality, Occupational Health, Safety and Environmental Management Policy:

• Raising the employee awareness on the impacts of their activities during the processes and services related with the Quality, Occupational Health, Safety and Environ-ment and ensure the communication and active partici-pation in Quality, Occupational Health, Safety and Envi-ronmental Management related issues.

• Developing processes to fulfil customer needs and sat-isfaction in desired quality at right first time, just in time, complete and accurate; ensure the subcontractors and suppliers to be involved in the environmental and occupational health & safety aspects of our services and processes.

• Identification of the hazards that may occur during the execution of our activities, and make the relevant risk assessments in relation to the Occupational Health and Safety.

• Continually improving the effectiveness and efficiency

of our processes and services in order to endeavour the ultimate goals; “Zero defect”, “Do it at the right first time” , and “Zero Accident or Environmental Inci-dent” regarding the company quality, environmental and health & safety objectives.

• Maintaining the continuity of their service quality of our suppliers and increasing their performances related to quality, safety and environment issues.

• Provide the necessary resources for Quality, Occupation-al Health, Safety and Environmental requirements and take the necessary actions in order to optimize the use of these resources.

• Demonstrate compliance with the ISO 9001 Quality Man-agement System requirements, ISO 14001 Environmental Management System requirements, OHSAS 18001 Safety Management Requirements and the specific customer requirements.

• Ensure the established Quality, Occupational Health, Safety and Environmental Management Systems are documented.

• Taking into consideration the product and service safety with regard to employees, customers and users.

57


AE Arma-Elektropanç has ISO 9001:2008 Certificate of Quality Management System within the scope of designing projects and committing works of electricity, electronics and mechanics.

External audits are carried out in Head Office and construc-tion sites, studies are done with regards to the indications and observations detected during the audits to increase the efficiency of both documentation and application of our Quality System and the results are reviewed by Man-agement to apply reforming advices which provide contin-uous development of our system.

Our Activities of 2014 Devoted to Our Quality Management System

ERP Configuration Project, which is one of our Continu-ous Reforming Activities, has been started as of November 2012 to cover AE Head Office and all construction sites. It is aimed to start-up the whole ERP Configuration Project in central and pilot construction areas at the end of 2015 and using actively in all Central Office departments and con-struction areas (projects) in the second quarter of 2016.

Our activities will be carried out based on Risk Manage-ment with a more systematically and manageably way and our suppliers, processes relating to Customers, Quality, hu-man resources, offers, budget, purchase, production and service supply will be developed by examining all internal processes in depth within the scope of our ERP Configu-ration Project.

It is foreseen to reach the aims below by constituting our ERP Corporate Resource Planning:

• Making three main profits, which are operational cost, operational efficiency and better decision, measurable with ERP system,

• Providing productivity growth,• Supporting our systematical growth with an auditable

system,• Making our processes, which are the integral parts of

our company, measureable and computable by modern-izing them,

• Creating a more effective and efficient working place than the rival firms to increase our competitiveness,

• Taking control of costs and incomes by making our global structure reach a technological substructure and systematical working level,

• Providing enterprise, customer and supplier relation-ships with wall to wall integration,

• Preparing a controllable, ready to be corporate, continu-ous and modern company substructure.

58

• Comply with local and international laws & regulations, and sector requirements in every process of work.

• Describe the activities in regard to the Environmental Pol-lution Prevention and waste management, and continual-ly improve the environmental performance following the effectiveness of the relevant applications.

• Oblige to take necessary corrective & preventive actions for safety & environmental related non-conformities, acci-dents & occupational illness and environmental incidents.

• Measure the performance of employees and processes with Internal Audits in order to maintain the effectiveness of our quality management system and to ensure its per-manence.

• Ensure that the targets of Quality, Occupational Health, Safety and Environmental Management Systems are clearly communicated to all of our employees.

The suitability, effectiveness and efficiency of the entire Quality, Occupational Health, Safety and Environmental Management Systems are periodically reviewed by the Board of Management and updated as part of our continual improvement process.


SUSTAINABILITYOCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEMS

AE Arma-Elektropanç has OHSAS 18001:2007 Occupation-al Health & Safety Management System Certificate within the scope of design & contracting of MEP projects. Effec-tiveness & continuous development of our Occupational Health & Safety Management System is supervised by the company of NQA as the third party through external audits that are performed regularly. AE Board has reviewed its integrated Quality, Environment & Safety policies & has also set forth to publish Occu-pational Health & Safety Policy & Occupational Health & Safety Manual separately. In this context, AE has revealed the following main objectives & commitments in regards to its Occupational Health & Safety Policy:

• Employees should perform their duties through “Work Safety First” principle for every work carried out,

• Commitment should be made to act in line with the legal & other requirements in force in the country where the work is undertaken,

• Job Specific Hazards should be determined & risk eval-uation should be performed,

• Required precautions with regards to prevention of pos-sibilities of accidents & Occupational diseases at its source should be taken,

• Competent Occupational Health & Safety Personnel should be made available in all departments & imple-mentation of Occupational Health & Safety activities should be assured,

• All types of required Personal Protective equipment, which is related to the work performed, should be pro-vided for the employees,

• Trainings, which should be related to Being Prepared for Emergency Cases & to the required Interventions, & related drills are performed, as well as trainings on the job specific hazards & risks, regulatory requirements &

59


Required risk assessment reports have been drawn by risk evaluation teams during 2014 in all of the construction sites that we had our activities in & these have also been shared with employers. Whether the occupational health & safety implementations stated in procedures have been performed by the sites or not had been controlled through occupational safety internal audits.

Our Activities in 2014 Related to Our Occupational Health

& Safety Management System

60

related control methods, shall be provided for all em-ployees,

• Communication should be established with the employ-ees through meetings where Representative of the Top Management & all the parties related as signified by legal regulations participate & decisions taken in these meetings & their implementation should be shared with all of the employees through notice board or via in-tranet,

• Occupational Health & Safety measurement & related evaluations should be performed through internal & ex-ternal audits for determination of effectiveness & perfor-mance of the system & required corrective & preventive activities should be implemented,

• Management Programs in relation to the required im-provements should be established & implemented in a way to include our employees, subcontractors & suppli-ers at the same time & results should be reviewed,

• Required publications should be relayed on our web site in order to related parties could reach at our Quality, Occupational Health & Safety & Environmental Manage-ment System policy.

Occupational Safety & Workers Health

• Site inspection reports have been drawn in all construc-tion sites.

• Sub-contractors in all of the construction sites have also been included within the implementation of Occupation-al Health & Safety policies.

• Personnel assignments have been made in all of the construction sites as to be responsible from occupa-tional safety & employees including the personnel of sub-contractors have been allowed to work on the site after required trainings with regards to the induction


training & job specific occupational health & safety trainings have been given. AE Employees & sub- con-tractors have attended to the trainings on “Occupational Health & Safety in Relation to General & Technical Is-sues” as scheduled in the annual training plan. Further to these trainings, measurement & evaluations made through exams & relevant certificates on “participation” or “success” have been issued.

• Trainings in relation to Occupational Health & Safety Regulations have been provided to the members of HS Board. HS Board meets every month & protocols are signed by the members of board.

• Professional services are obtained from the Common Health & Safety Unit in relation to Occupational Health & Safety issues.

• Risk evaluation reports have been drawn with regards to the work performed & responsible persons have been assigned for implementation of the required actions & target dates have been stated. The necessary informa-tion about job may face specific hazards & risks which may result from their activities on site, & equipment used by them, & working environment are transferred.

• Social Security Institution statistics are also shared with the employees, & accident cases with regards to the fatal & sever injuries have been conveyed to them to ex-plain the consequences in case the hazardous situations & risks are not removed in the workplace.

• Written statements have been submitted to employers or their representatives through HSE Determination-Sug-gestions books with regards to precautions & measures to be taken on the field.

• Accident Investigation reports have been reviewed for cases when accident or near miss have taken place & they have been revised when necessary. Root cause analysis have been performed in order that accidents would not reoccurred & required corrective & preventive actions have been taken & their records are kept.

• Emergency Case plans have been established & fire & evacuation drills have been performed. Maximum par-ticipation of the employees have been provided during emergency case & evacuation drills.

• It has been provided that required number of certified employees are available for the first aid purposes as to be in sufficient numbers to be 10% of employees as the minimum as this stated in the first aid regulation. Re-newal periods are continuously monitored with regards to presently available certified first aid employees.

• Occupational Health & Safety boards have been estab-lished & Occupational Health & Safety activities have been organised through meetings that are held once a months at least & agenda items have been drawn. All of the employees are informed about notices with regards to decisions taken in meetings & their follow up & with regards to implementations performed.

• Health reports with the approval of the occupational physician for every new recruits & these reports have been renewed annually.

• To track the exposure of our employees for possible risk of occupational diesaes & to take necessary measures, health surveillances have been carried out by means of portable mobile health team. Lung, ear, eye examina-tions & blood tests done, medical history information is received.

The following issues are performed in order to raise the Occupational Health & Safety consciousness at sites;

• Work specific hazards & precautions that are required to be taken against these are explained for the work to be performed on the day by providing on the job training daily before start of the work.

• During daily site inspections, the immediate corrective actions for the determined unsafe works are being car-ried out & trainings on Rules of Safe Behaviour are given.

• Trainings with regards to basic occupational safety in-duction, legal rights & responsibilities, construction site warning signs, use of personal protective equipment & its importance, working on scaffolding, working with grinders, working on mobile scaffolding & on ladders are provided for all of the employees before start of their employment.

• Maintenance & Periodic Controls of Work Equipment are carried out regularly by institutions that possess accred-itation from Turkak & track of these are kept. Potable water analysis have been obtained from institutions that possess accreditation from Turkak & any kind of nega-tive data have not been detected.

• Training with regards to Safe Working at Height & to Assembly & Disassembly of Scaffolding are provided to the related personnel by certified instructors who pos-sess certificates issued by the UIAA (International Moun-taineering & Climbing Federation.)

• For all of the scaffolding that are in use are controlled regularly on daily basis & red (not suitable) & green (suitable) label application has been performed.

• Root cause analysis have been performed & reports have been prepared & these have been put under re-cord for cases of accident or near miss that had taken place.

• Work permits have successfully been obtained for ac-tivities of hot works, for working at height, for working in confined spaces, for working on mobile scaffolding.

• In addition, “Manager Awareness Training” has been provided for construction site chiefs & for personnel responsible for occupational safety on the sites, “Risk Evaluation” training has been provided for Risk Evalua-tion Teams, “Training About HS Regulations” has been provided for members of Occupational Health & Safety Board & special training has been provided for “Repre-sentatives of Workers” by Class A occupational safety specialist in 2014.

Activities Performed on Construction Sites

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SUSTAINABILITYENVIRONMENT MANAGEMENT SYSTEM

AE Arma-Elektropanç evaluates environmental aspects and their impacts at all processes and services, and im-plement them by setting the corresponding control meth-ods.The evaluation of compliance with Turkish Environmental Legislation for domestic applications, and the conformity with international local environmental legislations in the countries worked abroad have been made.

Further to these evaluations, all the related environmental requirements have been provided to the customers.

AE has assigned a responsible personnel for the environ-mental related activities at each domestic and internation-al sites.

The individual environmental awareness of our employees have been increasing by regular trainings at sites provided by the AE environmental officers.

The environment protection activities is based on waste

management and pollution prevention missions. In order to meet the requirements, the provision of all the neces-sary human resources, equipment & materials have been ensured at our head office & sites. Activities aiming to reduce the waste at source and to collect the wastes sepa-retely which are to be recycled are carried out regularly at head offices and sites.

Our environment management system has been reviewed by our management for continious improvement during the internal & external audits. Further to the audits, the required corrective & preventive actions have been per-formed in compliance with client & legal requirements.

AE performs its activities in compliance with LEED require-ments where the LEED Certificate is needed, and provided the compliance with other requirements of customers.

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SUSTAINABILITYETHICAL POLICY

AE Arma-Elektropanç members of Ethics and Reputation Society of Turkey hereby represent and warrant to:• Conduct our business in compliance with any and all ap-

plicable local laws, including, primarily, the Constitution of the Republic of Turkey, and any and all international treaties, conventions, agreements and regulations, to which the Republic of Turkey is signatory.

• Build our business on ethical principles.• Endeavour to earn a reputation for integrity, competence

and excellence.• Introduce a transparent disclosure policy for the compa-

ny’s operations.• Protect and encourage fair competition.• Have due regard for labour law including health and

safety and support the fair employment of young, wom-en and physically challenged individuals.

• Prevent any form of corruption.• Consider integrity as our core values in all our business

processes and business relations.• Put our efforts towards making business ethics consti-

tute the very fundamental of our corporate culture.• Provide our employees with the awareness, rules and

practices to ensure avoidance of conflicts of interests.

• Maintain equal distance to any and all public offices and authorities, administrative entities and political parties without any expectations of interest through the course of our operations and actions.

• Support endeavors contributing to economic and social development.

• Prohibit our employees from accepting and giving away presents which may influence their or counter party’s impartial decision making and conduct.

• Develop practices to disseminate above principles, con-cepts and practices to all parties within our sphere of influence, including our business partners, contractors and suppliers.

• We further declare our support to the 10 principles constituting the essence of the United Nations Global Compact and represent our commitment to take such principles into consideration in the organization of our managerial structure and the development and imple-mentation of our corporate policies.

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SUSTAINABILITYINFORMATION TECHNOLOGIES

Started in March 2014 to look for and found the best suit-able system solution after a search of 8 months, AE Arma-Elektropanç has decided to proceed with 6-dimension project management methodology xPM built on the microsoft axapta infrastructure in november, 2014. Determined as a 16-month ERP project, the system solu-tion will be commissioned first in Turkey, followed by Abu Dhabi, Azerbaijan and Russia activity regions. With the established ERP team, all department and business pro-cess analyses have been conducted in cooperation with Dr. Omer Bisen, an academic member in process analysis and project management at Yıldız Technical University and specialized in construction industry, in december 2014, january and february 2015. After a successful period of three months, AE Arma-Elektropanç will progress to design phase in early march.

Many factors that cause failure of projects include inef-fective control mechanisms and faulty contract manage-ment. The largest factor of all is the ineffective systems for project reporting. Lack of a system, problems with storing information, large size of the data to be reported and in-adequacy and complexity of software systems used for reporting narrow down the project management approach into the “project management on the table”. For solution to operational problems, AE Arma-Elektropanç will inte-

We will run our applications and database servers in the ERP system on the VMware infrastructure. We will install 10 servers of ERP system (Virtual Servers) on two physical servers via VMware software to take advantage of easy management of systems, clustering, energy consumption, simplicity of environment to test and develop, fast changes to hardware that will be provided by VMware software.

Two physical servers on which we will install VMware sys-tem will be quickly connected to a joint storage unit. The disc infrastructure of all applications and database servers (virtual servers) will stay on this storage unit.

ERP System Hardware & Software Infrastructure

grate many software data into the project management cycle to perform all necessary financial and cost control with BI reporting and XPM that comprises the Integrated project management and reporting system.

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Data Centralization

What Are The Basic Advantages?

E-Bill Project

It allows users within domain structure to work on differ-ent computers with their own profile files. A profile file is the user’s desktop folder, my document folder and picture folder. This profile file will be maintained in a centralized sharing. This centralized sharing will be located in our stor-age unit. When a user logs out, profile files will be saved in the centralized sharing in the storage unit. At subsequent log in processes, profile files of that user will be transmit-ted from the centralized storage unit.

• On the network, user will be able to log in at a desired machine and access to their file.

• It will be easy to back up and manage data as it is main-tained in a centralized location.

• Since user data is not maintained in local disks, if a problem occurs in the local disk, new operating system installation will not affect users.

• With feature of offline files, user will be able to keep documents in their own computer to access even with-out network connection.

• Through the centralized management, user will be sub-ject to rules such as quota and content management.

In the second quarter of 2014, verification of e-bill and e-bill conversion process were carried out.

Through the VMware system, if any of the physical servers fail in software or hardware, the virtual server running on the failed physical server will be transferred to the other physical server and continue operation without any outage. Users will be able to work without interruption during such transfer.

This virtual media will automatically be backed up to type cartridges and stored for 1 year.

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SUSTAINABILITYCORPORATE CITIZENSHIP POLICY

As AE Arma-Elektropanç, we consider provision of values over to the society in which we exist, through the stand-point that has been brought forth by being one of the im-portant establishments in Turkey and by being one of the important players of the international construction sector.• We consider the work safety as our most important pri-

ority and we respect fundamental right and freedom of all of our employees. We provide healthy and secure working conditions for our employees.

• We accommodate social, environmental, ethical and hu-mane issues in our focus point.

• We maintain all our activities and relations based on the honesty and considering interests of all entourage. We include all of our shareholders, employees, customers, business partners, suppliers and non-governmental or-ganisations and all the individuals of the society, who live and work in our establishment.

• We act conscious of our responsibility to the environ-ment. We take care of using the energy resources in the most efficient way. We conduct all of our practises in the way that they protect the environment and which continuously improves our environmentally friendly per-formance. We consider observing national and interna-tional standards with respect to the environment as part of our social responsibility perception.

• We full fill all of our tax obligations to the government by adhering to the principles of accuracy and transpar-ency.

As AE Arma-Elektropanç, we consider provision of values over to the society in which we exist, through the stand-point that has been brought forth by being one of the im-portant establishments in Turkey and by being one of the important players of the international construction sector.

In this context, we produce projects, which would create added value in topics that envelops communal, social, environmental, historical and educational fields as being related with technical contractor business where we have knowledge, experience and speciality.

Our Corporate Social Responsibility Approach

• We share our knowledge and experience with the so-ciety.

• We furnish equality of opportunity for each and every employee of ours. We attach importance to the freedom for expression with regards to the communication and all of thoughts and points of view for the decision pro-cess.

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We pay particular attention on protection of natural re-sources, on minimisation of negative environmental im-pacts, on reduction of energy consumption, on elimination of problems that have been created by irregular and incor-rect urbanisation.

We are wary of preventing all of the factors that could cause environmental waste, physical or chemical pollution in all of our projects.

We look after the cultural heritage of our country and we act conscious of the importance of protection of historical buildings especially the ones that are available in inner cit-ies. We consider looking after of the historical and cultural works as part of our corporate culture.

We are conscious of the fact that education is an important issue for a more modern society. We endeavour that the new generation whom we will entrust our future, would have much better education opportunities and we provide scholarship for students who are in need.

Besides, we are also conscious of the fact that training of successful managers in the field of construction sector is very much related to the success of the construction sector. We lead forth the university students who aim for career in the construction sector and guide them by being present in various activities that are organised in universities.

One of the major problems that have been brought by rapid urbanization in Turkey’s larger cities is the street an-imals. Number of street animals are increasing in many of Turkey’s larger cities especially in Istanbul. Unfortunately, kennels provided by local authorities within the cities for street animals are providing unfavorable conditions and leave them to their fate and to death.

Since the support of individuals and of non- profit- making institutions is not sufficient for improvement of the present conditions in kennels, it becomes necessary that strong companies should give some assistance to the issue.Mod-ern buildings provide their services as part of new urban concept.

As AE Arma-Elektropanç, we provide the spirit for new buildings within the concept of our working area and we contribute to the cities that are more habitable, smarter and more environmentally friendly. However, cities do not consist only the human beings but they are including the nature and the street animals. While we are regenerating modern buildings on one side, we also intend to support street animals where they would live in better conditions.We are accomplishing the Attention, There is a Life in the Kennel! project.

Our Approach Towards Environment

Our Approach Towards History

Our Approach Towards Education

Our Latest CSR Project

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CONSOLIDATED FINANCIAL REPORTS2014 CONSOLIDATED FINANCIAL REPORT

A member of HLB International

AE ARMA-ELEKTROPANÇ ELEKTROMEKANİK SANAYİ MÜHENDİSLİK TAAHHÜT VE TİC. A.Ş.BRANCHES & SUBSIDIARIES

Consolidated Financial StatementsTogether with Independent Auditor’s Report

As of 31 December 2014 and 2013

Saygın Certified Financial Consultancyand Independent Auditing Inc.

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CONSOLIDATED FINANCIAL REPORTSCREDIT RATING REPORT

JCR Eurasia Rating evaluated “AE Arma-Elektropanç Elektromekanik Sanayi Mühendislik Taahhüt ve Ticaret A.Ş.” and assigned a Long Term National Grade and outlook of ‘A-(Trk)/Stable’. Additionally, the Long Term International Foreign Currency and Long Term International Local Currency Grades have been determined as ‘BBB-/Stable’. Additional ratings are stated in the table below:

LongTerm

ShortTerm

INTERNATIONAL

Foreign Currency BBB- A-3

Local Currency BBB- A-3

OutlookFC Stable Stable

LC Stable Stable

NATIONALLocal Rating A- (Trk) A-1 (Trk)

Outlook Stable Stable

Sponsor Support 2 -

Stand Alone B -

SOVEREIGN

Foreign Currency BBB- -

Local Currency BBB- -

OutlookFC Stable -

LC Stable -

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CONSOLIDATED FINANCIAL REPORTSINDEPENDENT AUDITORS REPORT

AE ARMA-ELEKTROPANÇ ELECTRICAL MECHANICAL INDUSTRY ENGINEERING CONTRACTING AND TRADE INC.

Fulya Mah. Vefa Deresi Sok. No: 11, 34394 Şişli - İstanbul / TURKEYTel.: +90 212 275 54 84 - Fax: +90 212 274 06 41

[email protected]


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AE Arma-Elektropanç 2014 Annual Report

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