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Koç Holding’s Financial Results For The First Half of 2016<p align="justify"> <strong>KOÇ HOLDING POSTS TL 31.1 BILLION CONSOLIDATED TURNOVER AND TL 1.4 BILLION NET PROFIT FOR PARENT COMPANY IN THE FIRST HALF OF 2016</strong><br><br> <strong>KOÇ HOLDING CEO LEVENT ÇAKIROĞLU:</strong><br><strong> “OUR INVESTMENTS TOTALLING TL 30 BILLION IN THE PAST FIVE YEARS FUNCTION AS THE MOST SIGNIFICANT INDICATOR OF OUR STRONG BELIEF IN OUR COUNTRY AND ITS FUTURE. WE SHALL CONTINUE TO PROMOTE OUR COUNTRY’S POTENTIAL WHEREVER WE OPERATE AND THROUGHOUT THE WORLD.”</strong><br><br> Koç Holding has posted a total consolidated turnover of 31.1 billion Turkish liras and net profits of 1.4 billion Turkish liras for the parent company in the first half of 2016. Assessing Koç Holding’s financial results for the first half of 2016, Koç Holding CEO Levent Çakıroğlu says: “Our country has come through quite a challenging period when a coup attempt, a black mark in our political history, targeted the unity and integrity of the Republic of Turkey. It was the belief in democracy held so dear by our nation, state and forces of law that thwarted this attempt. That our country has passed this crucial test of democracy with flying colours is a credit to our nation. I would like to take this opportunity to ask that God rest the souls of the victims, and extend my sympathy to their families as I wish the injured a speedy recovery. We are proud to note the triumph of common sense, unity and harmony in effecting a swift return to normality in the wake of this intolerable coup attempt. The resultant environment of solidarity has opened an enormous window of opportunity in establishing a sustainable social peace. I am convinced that it is now beholden upon all segments of society to behave responsibly; I would also like to reiterate, on behalf of the Koç Group, our readiness to do our duty. Nearly the same age as the Republic of Turkey, our Group has witnessed many a tough period in their common history. With nothing less than totally unshakeable confidence in Turkey, we have always endeavoured to prove to our loyalty to our country through our work and production. Our investments totalling 30 billion Turkish liras in the past five years serve as the most significant indicator of our strong belief in our country and its future. We shall continue to promote our country’s potential wherever we operate and throughout the world.” <br><br> <strong>Levent Çakıroğlu: “Investments ensured our sustained growth in the first half of the year as we continued to contribute to the economy and employment.”</strong><br> Drawing attention to the first half performance of Koç Group companies that continue to serve as driving forces of their industries in Turkish economy, Levent Çakıroğlu remarks: “The first half of 2016 has been characterised by intense political uncertainty, geopolitical risks and market turbulence both in Turkey and abroad. During this period, we have continued to grow and contribute to the economy and employment through a varied portfolio, powerful exporting companies and investments; moreover, our S&P investment grade status is maintained thanks to the solid operational and financial performances of our companies and our strong balance sheet. In line with our global vision we have taken a major step to further fortify Arçelik’s international position. We have signed an agreement to acquire the leading Pakistani home appliances manufacturer. Several investments in the automotive sector made in the past few years have enabled us to launch new models on the market in 2016, and drive the growth in Turkish automotive exports. As we grew profitability in banking, we have also taken the necessary steps to strengthen our capital structure and cash holdings. We have continued to invest in technology as we place enormous value on R&D and innovation; consequently today, three of the Patent League top five are Koç Group companies.” <br><br> <strong>Levent Çakıroğlu: “Responding to strong domestic demand, Tüpraş realised full capacity and grew sales by 12% in the first half of the year.”</strong><br> Remarking on the sales growth of Tüpraş year-on-year, helped also by the Fuel Oil Recycling Facility despite the decline of the net refinery margin in the same period due to the weakening product-price ratios in the Mediterranean market in the first half of the year, Levent Çakıroğlu comments, “Tüpraş achieved total sales of 14.5 M tonnes in the first half of the year, representing a growth of 12% year-on-year. Solid domestic demand grew domestic sales by 23%.”<br><br> <strong>Levent Çakıroğlu: “We have become the driving force of growth in Turkish automotive exports.”</strong><br> “Strong export performance has fostered growth in both turnover and profitability for our automotive companies despite the decline in demand in commercial vehicles in the first half of the year” says Levent Çakıroğlu and continues: “Bolstered by investments and new products, Ford Otosan and Tofaş bucked the trend in the industry and grew their total export figures by 17% and 53% respectively, with exports accounting for nearly 70% of their sales. Koç Group companies have also, in this period, become global players in manufacturing and R&D. As Ford Otosan begins mass production of the new generation Ecotorq lorry engine developed and built entirely in Turkey, Tofaş has given the go-ahead for the production of the Hatchback and Station Wagon models in the Fiat Aegea Project, a Tofaş intellectual and industrial property.” <br><br> <strong>Levent Çakıroğlu: “Arçelik strengthens its position in the global home appliances market.”</strong><br> Remarking on the continued growth in Arçelik’s share on the European home appliances market in the first half of 2016 and its Beko brand’s steady top two position in units sold, Levent Çakıroğlu states: “Solid domestic demand and strong exports have helped Arçelik to grow total turnover by 20% in the first half of the year. In a move consistent with its global growth strategy, Arçelik has also signed an acquisition agreement with Dawlance, Pakistan’s leading home appliances manufacturer in the same period. We have consequently taken a significant step in raising Arçelik’s manufacturing power to eighteen facilities in seven countries.”<br><br> <strong>Levent Çakıroğlu: “Yapı Kredi continues to display a successful performance.”</strong><br> Highlighting Yapı Kredi’s increased profitability in the first half of the year, while maintaining its position in capital, cash holdings and market share, Levent Çakıroğlu continues: “Yapı Kredi’s consolidated net profit (based on Turkish Accounting Standards) has risen by 62% year-on-year to reach 1.55 billion Turkish liras, while cumulative tangible return on equity rose by 433 points on base and reached 14%. Strong profitability, effective capital usage and issuance of a subordinate loan have all contributed to strengthening the bank’s capitalisation. With a sustained focus on digital banking in 2016 and mobile banking leading the way, Yapı Kredi has continued to expand its customer base via digital channels.”<br><br> </p>
Prof. Zeynep Çelik is the recipient Vehbi Koç Award in the field of “Culture”.<p style="text-align:justify;">The recipient of the 13<sup>th</sup> <a href="http://www.vehbikocodulu.com/">Vehbi Koç Award</a> was announced at the award ceremony attended by the members of the entire Koç family, and guests. Among the three candidates nominated by the Selection Committee headed by Prof. Şevket Pamuk, Vehbi Koç Foundation Board of Directors chose <strong>Prof. Zeynep Çelik</strong> as the recipient of the 13<sup>th</sup> Vehbi Koç Award for her remarkable work in the field of culture and history. Mustafa V. Koç, Chairman of Koç Holding, presented the award to Prof. Zeynep Çelik who will also receive $100,000 as a financial reward.<br><span style="line-height:1.6;"><br>In the speech he delivered at the 13</span><sup>th</sup><span style="line-height:1.6;"> Vehbi Koç Commemoration and Award Ceremony, </span><strong style="line-height:1.6;">Mustafa V. Koç</strong><span style="line-height:1.6;">, </span><span style="line-height:1.6;">Chairman of Koç Holding, pointed out that numerous individuals and institutions in Turkey, like the Vehbi Koç Foundation, strive everyday to add value to the society, and continued "It has become the principle of our Foundation to ensure that such exemplary work is recognized and promoted." Adding that the </span><a href="http://www.vehbikocodulu.com/" style="line-height:1.6;">Vehbi Koç Award </a><span style="line-height:1.6;">is given out annually in one of Vehbi Koç Foundation's three main fields of activity, education, culture, and healthcare, respectively, and that </span><strong style="line-height:1.6;">Prof. Zeynep Çelik</strong><span style="line-height:1.6;"> has been chosen for this year's award for her invaluable work in the field of culture, Mustafa V. Koç said: "Prof. Çelik is a historian that has contributed immensely to the Ottoman urban, cultural and intellectual history in the last thirty years; and while doing that she has broken the introverted nature of the Ottoman historiography, which it was often confined to, and opened it to a much wider audience."<br></span><span style="line-height:1.6;"><br><strong>Mustafa V. Koç: "If Vehbi Koç were here today, he would say 'Hold tight to your business. Don't stray from what you know is right. Hardships come and go. What's important is the business and the values that keep this business together'."</strong></span></p><p style="text-align:justify;">"This is the eighteenth anniversary of the passing of Vehbi Koç, the founder of our group. It is also the thirteenth year that we are giving out the Vehbi Koç Award that we have established to recognize and honor individuals and institutions with outstanding contributions to the development of Turkey and Turkish people. We remember Vehbi Koç every single day. This Group is his legacy and carries his mark in each and every corner. Love for our country, our hard work, the importance we place on institutionalization, superior work ethics, always striving to outperform ourselves, the principle of doing good for our country and for humankind, these are all Vehbi Koç's legacy and they light our path."</p><p style="text-align:justify;">Mustafa V. Koç said that while preparing his speech, he remembered Vehbi Koç even more in these turbulent times that we are all going through, and continued: "We asked ourselves, 'What would Vehbi Koç recommend if he were alive?' If Vehbi Koç were here today, I think he would say 'Hold tight to your business. Don't stray from what you know is right. Hardships come and go. What's important is the business and the values that keep this business together'."<br><span style="line-height:1.6;"><br><strong>Mustafa V. Koç: "We have always been interested and involved in our country's issues with objectivity, and we will continue to be so in the future too."</strong></span></p><p style="text-align:justify;">Mentioning that despite many developments in Turkey, some issues and weaknesses sadly tend to repeat themselves, Mustafa V. Koç added: "As a developing country, we have experienced many ebbs and flows both in democracy and economy during this journey. It is highly probable that we will face such challenges in the future as well. In order to minimize the implications of these fluctuations, we have taken universal values and the principles of institutionalization as our anchor, and we have continued to work and do our best.  While doing that we have never entered into the daily political debates and always remained objective. However, this country belongs to us and it is our duty to protect this beautiful country that is the pillar of our strength. We have always been interested and involved in our country's issues with objectivity, and we will continue to be so in the future too."<br><span style="line-height:1.6;"><br><strong>Mustafa V. Koç: "We will always protect and be faithful to the values that our founder has entrusted us with."</strong></span></p><p style="text-align:justify;">Mustafa V. Koç pointed out that in his memoirs titled "Hayat Hikayem" (1973), the late Vehbi Koç talked in his own modest style about all of his achievements, which seemed impossible to undertake in a lifetime, his challenges and successes, as if they were very easily accomplished. He continued, "But you know that there are months and sometimes years of work, discussions, and negotiation processes behind each success. One of the best examples of this is the fact that he worked relentlessly for twenty years to create Vehbi Koc Foundation, which as an institution has been serving our country for 45 years and which brings us together today. As I remember our founder with love and respect, I would like to emphasize that we will always protect and be faithful to the values that our founder has entrusted us with."<br><span style="line-height:1.6;"><br><em>Prof. Zeynep Çelik: An Architectural Historian with immense contributions to Ottoman, urban and cultural history in the last 30 years</em></span></p><p style="text-align:justify;">A short film including sections from Prof. Çelik's life was shown during the award ceremony; in her acceptance speech Prof. Zeynep Çelik said that she was very honored to receive the 13<sup>th</sup> Vehbi Koç Award. "My generation has played an important role in expanding the breadth of architectural history, in stretching and pulling it toward unexpected directions, and approaching from a critical point of view.  I am quite proud to be considered a part of this movement. A special contribution that my works have provided is to underline intercultural relationships. I believe I have established that the late period Ottoman Empire is an important part of modernity, which is always attributed to the West. This is now a widely recognized phenomenon."</p><p style="text-align:justify;">After graduating from Istanbul Technical University, Department of Architecture with B. Arch. in 1975, she received her M. Arch. degree from Rice University, and Ph.D. from University of California, Berkeley. In 1991 she started teaching at the New Jersey Institute of Technology, Department of Architecture and Design, where she continues as distinguished professor, while she carries on her studies and research.</p><p style="text-align:justify;">She published her first book "The Remaking of Istanbul: Portrait of an Ottoman City in the Nineteenth Century" in 1986 for which she won the Institute of Turkish Studies Book Award. The book is considered the first significant and systematic work on the urban architecture in the Ottoman period. Prof. Zeynep Çelik was awarded a Doctor Honoris Causa degree by the Bosporus University in 2013 for her unique and pioneering work in the fields of Ottoman urban, cultural and intellectual history.<br><span style="line-height:1.6;"><br><strong>About Vehbi Koç Foundation</strong></span></p><p style="text-align:justify;">Founded on January 17, 1969 by the late Mr. Vehbi Koç, one of the most prominent Turkish industrialists, <strong>Vehbi Koç Foundation</strong> is celebrating its 45<sup>th</sup> anniversary with the rightful pride of having contributed dozens of institutions to Turkey and supporting tens of thousands of students. Aiming to contribute to a modern and growing country since its inception as the <strong>first private foundation in Turkey</strong>, the Foundation is committed to delivering pioneering and exemplary services that will improve the society's quality of life in the areas <strong>of education, health,</strong> and <strong>culture. </strong>To date, Vehbi Koç Foundation has provided Turkey with 28 educational, six healthcare and six cultural institutions, and also supported hundreds of projects. In addition to the scholarships offered through <strong>educational institutions</strong>, the number of students supported by the foundation with direct scholarships has reached 45 thousand in 45 years. Further information about Vehbi Koç Foundation can be found at <a href="http://www.vkv.org.tr/">www.vkv.org.tr</a> .<br><strong style="line-height:1.6;"><em><br>About Vehbi Koç Award:</em></strong></p><p style="text-align:justify;">Aiming to recognize and reward exemplary services that add value to the society, the <strong>Vehbi Koç Award</strong> is given out annually in the areas of education, healthcare, and culture since 2002. Worth $100,000, it is the highest financial award given out in Turkey. The previous recipients of the award are:</p><ul><li>2002 - <strong>Topkapı Palace Museum </strong>for their invaluable cultural activities</li><li>2003 - <strong>Mother Child Education Foundation</strong> (AÇEV) for their successful educational initiatives</li><li>2004 - <strong>Bilkent University School of Sciences, Department of Biology and Genetics</strong> for their contributions to healthcare</li><li>2005 - <strong>Fazıl Hüsnü Dağlarca</strong> in literature, as a sub-category of culture,</li><li>2006 - <strong>Nuri Okutan, the then Governor of Sakarya</strong> for his contributions to pre-school education during his career</li><li>2007 – <strong>Prof. Aziz Sancar</strong> in the area of health for his globally recognized studies on the Molecular Mechanisms of DNA Repair and Regulation of the Biological Clock</li><li>2008 - <strong>Prof. Mehmet Özdoğan</strong> for his contributions to prehistoric archaeology in the Marmara Region</li><li>2009 - <strong>Prof. Türkan Saylan</strong> for her life-long commitment to education</li><li>2010 - <strong>Prof. Turgay Dalkara</strong> for his international achievements in cerebrovascular diseases</li><li>2011 - <strong>Prof. Filiz Ali,</strong> regarded the most productive and influential musical authority, musicologist and music critic in Turkey, and the <strong>Ayvalık International Music Academy</strong> (AIMA) she founded as an institution that not only empowers young musicians by opening new horizons but is also recognized both locally and internationally as a successful transformation project.</li><li>2012 - <strong>Prof. Nermin Abadan Unat</strong>, known as the "Master of masters" who taught Political Science to hundreds of students and academicians, for being a prominent scholar and pioneering researcher in the field of "Women" and "International Migration".</li><li>2013 - <strong>Prof. Gökhan Hotamışlıgil</strong> for his discoveries that completely changed the medical world's perception of metabolic diseases </li></ul>
The Patent Winners Of Turkey<p>​<span style="line-height:1.6;text-align:justify;">Four of the </span><span style="line-height:1.6;text-align:justify;">Koç Group</span><span style="line-height:1.6;text-align:justify;"> companies ranked in the top 10 and the other three companies in the top 30 list in the "Companies with the Highest Number of Domestic Patent Applications in 2013" ranking of the </span><span style="line-height:1.6;text-align:justify;">Turkish Patent Institute</span><span style="line-height:1.6;text-align:justify;">. Koç Group</span><span style="line-height:1.6;text-align:justify;"> companies made a total of 400 patent applications in 2013. This figure was 310 the year before. A</span><span style="line-height:1.6;text-align:justify;">rçelik was at the top of the list with 193 patent applications, followed by Ford Otosan at the second spot with 80. Tofaş was number six with 48 patent applications and Türk Traktör was number nine with 20 applications. According to the patent application ranking, the other Koç Group companies in the top-30 list were; Otokar (11), Arçelik- LG (16) and Tüpraş (26). </span></p><p><span style="line-height:1.6;text-align:justify;"></span><strong style="line-height:1.6;text-align:justify;"><br> </strong><strong style="line-height:1.6;text-align:justify;">"Quality is just as important as the quantity of patent applications."</strong><strong style="line-height:1.6;text-align:justify;"> <br></strong><span style="line-height:1.6;text-align:justify;"><br>We have long been implementing the Intellectual Property Rights Strategy, pioneered by us in Turkey when we put it in writing in 2012. We have also been applying the Intellectual Property Rights Management Project for the past four years. Both initiatives have played significant roles in the success of our companies.  We acted on with the objective of bestowing our Group companies with the ability to manage their own intellectual property rights on their own and to carry out their work according to international standards. We are happy to see that they have achieved this goal," said CEO of Koç Holding Turgay Durak as he assessed the success of Koç Group companies in the Turkish Patent Institute ranking.  Durak asserted that quality is just as important as the quantity of patent applications. "All patent applications are evaluated by the Intellectual Property Rights Committees, which have been established in our companies, and applications are made only for innovations considered to have strategic and licensing potential and which will be used on the product directly."</span></p><p style="text-align:justify;"><strong style="line-height:1.6;"><br>Turgay Durak: We account for nearly 10 percent of all R&D spending in the private sector.</strong><span style="line-height:1.6;"> <br></span><span style="line-height:1.6;"><br>Turgay Durak stressed the need to invest in new technologies for the future of our country's economy. He mentioned that Koç Group places the utmost importance on science and technology and that they continuously develop their efforts in this field on a company basis. "The highest number of R&D activities in Turkey takes place within our Group and we have 14 R&D centers that have been approved by the Ministry of Science, Industry and Technology.  A total of 3397 technical personnel, of whom 2553 are engineers with bachelors, masters and doctorate degrees, and 844 are technicians work in our R&D centers. We announced that our R&D spending totaled 2.7 billion Turkish lira for the past five years. We are proud to have added 677 million Turkish lira to this figure in 2013. The total number accounts for nearly 10 percent of total private sector R&D spending. Koç Group companies have achieved high rankings in the Turkish Patent Institute's list thanks to these efforts," said Turgay Durak. Turgay Durak expressed that as of 2013, the intellectual property rights portfolio of Koç Group included over 2,500 patent families as well as more than 5,500 patents, over 6,500 brands, over 700 designs and more than 4,000 Internet domains. He added that this is the largest intellectual property rights portfolio in Turkey and in the region.</span></p><p style="text-align:justify;"><strong style="line-height:1.6;"><br>Koç Group companies' rankings in the "Companies with the Highest Number of Domestic Patent Applications in 2013" list:</strong><span style="line-height:1.6;"> <br></span><strong style="line-height:1.6;"><br>Arçelik</strong><strong style="line-height:1.6;">             </strong><span style="line-height:1.6;">: </span><strong style="line-height:1.6;">Number 1</strong><span style="line-height:1.6;">; 193 patent applications</span></p><p><strong>Ford Otosan</strong><strong>    </strong>: <strong>Number 2</strong>; 80 patent applications</p><p><strong>Tofaş</strong><strong>               </strong>: <strong>Number 6</strong>; 48 patent applications</p><p><strong>Türk Traktör</strong><strong>    </strong>: <strong>Number 9</strong>; 20 patent applications </p><p><strong>Otokar</strong><strong>            </strong> :<strong> Number 11</strong><strong>:</strong> 16 patent applications (four companies share the number 11 spot in the list)</p><p><strong>Arçelik-LG</strong><strong>       </strong> :<strong> Number 16</strong>; 13 patent applications (two companies share the number 16 spot in the list)</p><p><strong>Tüpraş</strong><strong>            </strong> :<strong> Number 26</strong>; 10 patent applications (five companies share the number 26 spot in the list)</p>
News33<p>​</p><p style="text-align:center;">Koç Holding posted consolidated sales revenues of 13.6 billion Turkish lira in the first quarter of 2013 with 619 million Turkish lira pre-tax profits and 452 million Turkish lira net profits after minority interest.  "Koç Group will focus on risk management and austerity measures while maintaining sustainable growth strategies for the remainder of the year at a time of political and economic stress in Europe and turmoil in nearby countries." said Turgay Durak, CEO of Koç Holding.  </p><p style="text-align:justify;">While assessing the results for the first quarter of 2013, Mr. Durak said that loan demand improved as a result of low interest rates, combined with the increased confidence in the country's economy. This, in return, triggered the demand, especially in durable and semi-durable consumer goods. Turgay Durak stated that Koç Group expected the growth in Turkish economy to be based mainly on domestic demand in 2013. "We project that net exports' contribution to growth will be limited as rising domestic demand will increase imports and our export markets have not completely pulled through," he said. Turgay Durak drew attention to the continuing uncertainty in the European economy of late, as well as to rising political conflict in nearby regions. He said Koç Group would maintain foreign risk management and austerity measures in the short term. </p><p style="text-align:justify;"><strong><em> </em></strong></p><p style="text-align:justify;"><strong><em> </em></strong></p><p style="text-align:justify;"><strong><em> </em></strong><strong><em>"We keep investing at full steam..."</em></strong></p><p style="text-align:justify;">Turgay Durak said that despite of all the fragility in the European economy and the turmoil surrounding the nearby region, Koç Group perseveres with its long-term sustainable growth strategies through investments and practices that produce employment.  "We strive to make the highest possible contribution to our country while aiming to use our resources in the best possible way to create continuous high return investments for our country and the stakeholders. Combined investment of 6.8 billion Turkish lira that we planned for 2013 is going ahead at full speed" he said. Turgay Durak pointed out the significance of 2013 in terms of investments for Koç Group companies. "Tüpraş and Ford Otosan in particular are going through a substantial investment period. The $2.4 billion residuum upgrade project of Tüpraş is currently 65 percent complete, with $1.55 invested in the first quarter of 2013. The project is scheduled for completion by November 2014 and will produce 3.5 million tons of high quality white product. When the Tüpraş refineries are working at full capacity, Tüpraş will produce a significant portion of Turkey's need for diesel fuel, which is mostly met by foreign resources.  Following the Ford Transit Custom model that was introduced by Ford Otosan last year, work for the New Transit is under way for the end of 2013. In addition, developments and new facility investments for the new commercial vehicles will be carried out throughout the year ahead of the start of production in 2014. Tofaş is maintaining its efforts to export Doblo to the US," said Mr. Durak. </p><p style="text-align:justify;"><strong><em>"Momentous global initiatives..."</em></strong></p><p style="text-align:justify;">Turgay Durak commented on how Koç Group's pioneering and exemplary works have been crowned with momentous accomplishments in the international arena. He reiterated the achievement of international credit rating agencies S&P and Moody's assigning Koç Holding's long-term corporate credit rating.  He called attention to the fact that both agencies have raised Koç Holding's long-term corporate credit rating to "Investment grade." "We are enormously proud for being the first Turkish company to have been deemed worthy of this rating. Statements from both international credit rating agencies declared that the underlying factors in Koç Holding's accomplishment were effective risk management practices, a balanced portfolio structure that the company enjoys as a result of its robust presence in diverse industries and geographies, importance placed on corporate management strategies, a proven management structure and the solid financial profile of the company," he said.  Turgay Durak also commented on the $750 million that Koç Holding borrowed through a dollar-denominated Eurobond issuance with a seven year term. "We set an example for Turkish companies once again as a result of the issuance with the best price at this maturity length." he added.  </p><p style="text-align:justify;"> </p><p style="text-align:justify;"> </p><p style="text-align:justify;"><strong><em>"Results that make a difference..."</em></strong></p><p style="text-align:justify;">Turgay Durak remarked that Koç Group companies have made strides towards growth by strengthening their positions in Turkey as well as in foreign markets. Mr Durak talked about the worldwide attention the Turkish banking industry has received in spite of challenging global economic conditions. "Yapı Kredi maintained sustainable and profitable growth in the first quarter of the year, increasing its profits by 31 percent year-on-year." he told.   Turgay Durak stressed the advancements Arçelik has made on the way to becoming a leader in many of the countries it operates in. "Arçelik successfully showed growth in all of the countries it operates in. Beko has been successful in increasing its market share the most based on the number of items sold in Western Europe. Arçelik maintained its place as the market leader in Romania, in addition to remaining market leader in South Africa with the Defy brand" Mr. Durak stated. "Koç Group companies are becoming globalized through investment." said Turgay Durak. He added, "Otokar is a great example as it is covering a lot ground on the way to becoming a global brand in the defense industry whilst celebrating its 50th anniversary. It exports military vehicles to nearly 30 countries in five continents."  Turgay Durak stated that Tofaş distributed dividend in the amount of 480 million Turkish lira, the highest figure ever in its history. "Moreover the Linea model by Tofaş has remained as the most preferred automobile brand in Turkey, while Doblo secured its place as the best selling light commercial vehicle," Mr. Durak said. </p><p style="text-align:justify;"><strong><em>"Koç Fest University Sports Games of Turkey hosted 20,000 student athletes in competitions..."</em></strong></p><p style="text-align:justify;">Turgay Durak said that 20,000 athletes from 185 universities competed in 44 events in the Koç Fest University Sports Games of Turkey sponsored by Koç Group. "The final competitions held between April 15 and May 12 gave us a glimpse of the Olympic spirit this year. Student athletes from universities would give us the greatest honor if they win medals in the 2020 Olympics," he said. </p><p style="text-align:justify;"><strong><em>"Health Sciences Campus at the Vehbi Koç Foundation is set to become one of the biggest projects of Turkey in its field..."</em></strong></p><p style="text-align:justify;">Turgay Durak pointed out the Vehbi Koç Foundation as a crucial part of the Koç Group and reminded us the work that it has completed to bolster the development of our country, as well as setting the best examples and creating solutions for social needs. He underlined that the first phase of construction in the Koç University School of Medicine Health Sciences Campus continued in the first quarter of 2013. "The Health Sciences Campus will include a Medical Faculty as well as a Training and Research Hospital, emerging as one of the biggest projects of its kind in Turkey. After the completion of the first phase of construction in 2014, which will include the faculty and the hospital, our students will continue their education in the Health Sciences Campus in Topkapı. We will have provided the country with a very valuable service when the second phase of the project has been completed, with the nursing school and accommodation for the nurses and academics are also opened.   </p><p style="text-align:justify;">​ </p>
KOÇ HOLDING SUSTAINS RECORD LEVEL INVESTMENTS IN 2014<p style="text-align:justify;"><strong>​KOÇ HOLDING SUSTAINS RECORD LEVEL INVESTMENTS IN 2014 </strong><strong style="line-height:1.6;">AND CONTINUES TO PIONEER IN R&D AND INNOVATION</strong></p><p style="text-align:justify;"><strong>​TURGAY DURAK, CEO OF KOÇ HOLDING,</strong><strong style="line-height:1.6;">ASSESSED THE FINANCIAL RESULTS OF 2013:</strong><span style="line-height:1.6;"> </span></p><p style="text-align:justify;"><strong>"2013 PRESENTED CHALLENGES BOTH FOR THE GLOBAL AND THE TURKISH ECONOMY. NEVERTHELESS, THE KOÇ GROUP CONTINUED TO DELIVER EXCEPTIONAL RESULTS . GLOBAL AND DOMESTIC DEVELOPMENTS INDICATE ANOTHER TOUGH YEAR AHEAD IN 2014. THE KOÇ GROUP IS DETERMINED TO CONTINUE WITH HISTORICALLY LARGE INVESTMENTS IN ITS CURRENT BUSINESSES; DRIVEN BY OUR MOTTO "I LIVE AND PROSPER AS LONG AS</strong><strong>  </strong><strong>MY COUNTRY LIVES AND PROSPERS " .<br><br></strong></p><p style="text-align:justify;">Koç Holding closed 2013 with successful results despite the challenges both at home and abroad; consolidated sales revenues totaled 66,2 billion Turkish lira and net profit for parent company shares reached 2,7 billion Turkish lira. "There were two separate periods in 2013: prior to and after the FED announcements regarding tapering off asset purchases, made during the third week of May. In terms of the industries we do business in, we see that almost every industry has been affected differently by this economic conjuncture. The Group closed 2013 with results that are in parallel with the targets we had set at the start of the year, despite all of the uncertainties and challenging market conditions. Koç Group strives to work so as to make the utmost contribution to our country with the faith we have in the long-term potential of Turkey. Our successful results is a manifestation of how we work together as a great familywith more than 80,000 personnel and executives; over 10,000 dealers, with whom we make a difference in the lives of millions of consumers; our strong supplier base and the synergy we have developed with the unions that represent our employees.  I thank everyone who has made a contribution to this achievement," said Turgay Durak, CEO of Koç Holding, as he assessed the Group's financial results for 2013.<br><span style="line-height:1.6;"><br><em>He continued, "We are in the midst of the biggest organic investment period in the Group's history."<br></em></span><span style="line-height:1.6;"><br>Turgay Durak emphasized Koç Group's continued large-scale investments with a focus on growth despite the fluctuating macroeconomic conjuncture at home and abroad in 2013. He added, "We made a record combined investment of 6.4 billion Turkish lira in 2013. We are in the midst of the biggest organic investment period in the Group's history. A number of crucial investments are planned for completion within 2014. At a cost of $2.7 billion, the Residuum Upgrade Project by Tüpraş is undoubtedly the most important among them, and it is 92 percent completed. Upon completion at the end of 2014, the Residuum Upgrade Project is expected to help lower the current account deficit by nearly $1 billion. Following the introduction of the Transit Custom at Ford Otosan last year, the New Transit and the Courier, which are light commercial vehicles, are set to be released on the market in the first half of 2014.  I would also like to state that the new R&D Center at Ford Otosan is going to begin operations with a 1,300-strong staff of engineers.  The Doblo project, with its exports to the USA, and facelift investments are also due to start this year. Work will be stepped up in 2014 within the scope of the new automobile project, which is planned for production towards the end of 2015 with a projected investment of $520 million. Construction of TürkTraktör's new 50,000-capacity plant in Erenler, Adapazarı is in the works with a proposed opening date of June 2014.  The third and fourth prototypes of Altay, a strategically important national tank project, are being manufactured by Otokar as we speak. Yapı Kredi is going to open 60 new branches in 2014 to increase its market share, thanks to a strengthened workforce and a customer-focused banking approach. R&D as well as new product and capacity increase investments will continue on the side of durable consumer goods. New market share gains have helped Arçelik forge ahead on the way to becoming one of the biggest white goods manufacturers in the world. Recently, Arçelik launched a new production line at the Gaesti plant for its white goods brand Arctic in Romania.  The Refrigerator Plant in Romania has given Arçelik the second biggest production capacity in Europe, just behind its Eskişehir Refrigerator Plant, which boasts the biggest production capacity in Europe.  We are assessing investment and purchasing potentials by continuously looking into manufacturing and sales opportunities in new markets."<br></span><span style="line-height:1.6;"><br><em><strong>A constant leader in R&D and innovation<br></strong></em></span><span style="line-height:1.6;"><strong><em><br></em></strong>"One of our critical objectives remains as preserving o</span><span style="line-height:1.6;">ur leadership role through technology and innovation investments in order to enhance our companies' global competitiveness," said Turgay Durak as he pointed out that Koç Group Companies maintained their leadership in R&D investments and patent development in 2013 within this scope. Mr. Durak also drew attention to the 14 R&D centers within Koç Group that have been approved by the Ministry of Science, Industry and Technology. He stated that more than 3,000 employees work at the R&D centers: "The Turkish Patent Institute's 'Companies with the Highest Number of Domestic Patent Applications in 2013' list ranked Arçelik at the number one spot, with Ford Otosan pursuing it in second place. Tofaş and Türk Traktör took sixth and ninth place, respectively. In 2013, The Turkish Exporters Assembly rewarded Arçelik with the 'Most Innovative Company' award for the second time. In light of all of these gratifying developments, Koç Group aspires to strengthen its technological and innovative abilities so as to improve Turkish companies' competitiveness in the global markets," he finished.<br></span><span style="line-height:1.6;"><br><em><strong>Export results make us proud<br></strong></em></span><span style="line-height:1.6;"><strong><em><br></em></strong>Turgay Durak highlighted the continuing achievements of Koç Group Companies in the Turkish Exporters Assembly awards. "Tüpraş maintained its leadership in exports, with Ford Otosan again pursuing it in second place. Tofaş and Arçelik took fifth and sixth place, respectively," he said. He also emphasized the fact that Koç Group accounted for nearly 10 percent of Turkey's total exports by achieving combined exports of $15.7 billion in 2013. <br></span><strong style="line-height:1.6;"><br>We are among the Turkish companies that the international finance markets trust the most<br></strong><span style="line-height:1.6;"><strong><br></strong>"Consistent financial success also manifests itself in the company's share price performance," Mr. Durak stated, stressing that Koç Holding's average market value surged by 40 percent, whereas BIST 30 Index rose by 24 percent on average year-on-year in 2013.  He highlighted that while net asset values of holding companies in Turkey were traded with an average discount of 35 percent, Koç Holding was traded with an average of only 3 percent. "We are proud to see that Koç Group is among the Turkish companies that the international finance markets trust and have the most faith in. We pride ourselves on the fact that international credit rating agencies S&P and Moody's set Koç Holding's long-term corporate credit score as 'investable' in 2013," he asserted.<br></span><span style="line-height:1.6;"><br><em><strong>We are a pioneer in social investments and strategic philanthropy<br></strong></em></span><span style="line-height:1.6;"><strong><em><br></em></strong>Mr. Durak underlined the proud developments of 2013 in terms of Vehbi Koç Foundation's activities. "Vehbi Koç Foundation preserves and demonstrate the sense of responsibility we feel for our country and society. The resources it allocates have turned it into one of the biggest foundations in Europe. Since its establishment, the Foundation has been striving to support the growth of our country's economy, to serve as the best-in-classmodel and to address the needs of our society. Construction of the second phase of Koç University School of Medicine's Health Sciences Campus began in 2013 and it is set for completion in the first half of 2014. Once complete, Koç University Health Sciences Campus and the Training and Research Hospital is going to become one of the biggest health projects to be realized in Turkey, with 400 beds, imaging centers equipped with state-of-the-art devices, intensive care units, and emergency services for adults and children. We believe our Health Sciences Campus is going to grow into an important center in our country and in the world, thanks to the special hospital services that are dedicated to oncology and children's diseases," he said.  Mr. Durak remarked that Vehbi Koç Foundation's model school project would gain speed in 2014. He continued: "After our model school is completed, the Model School Guide, which will contain all the information - from the architecture of the school to the education model - will be available for use when a foundation, institution or philanthropist wishes to build a school."<br></span><span style="line-height:1.6;"><br><em><strong>Our social responsibility projects are developing long-term and permanent solutions for our country<br></strong></em></span><span style="line-height:1.6;"><strong><em><br></em></strong>Turgay Durak maintained that Koç Group's social investments were based on two foundations using a holistic, long-term and strategic approach. The first is the Vehbi Koç Foundation and the second is Koç Group's social responsibility projects that are nearly the size of those of a non-governmental organization."We are carrying out the 'Vocational High School, a National Matter' and the 'For My Country' projects with the support of our employees and dealers. It gives us great pleasure to see that these projects are producing long-term and permanent solutions for our country," he explained. He continued, the 'No Barriers for My Country' project has been introduced with the purpose of improving physical conditions so as to ensure more involvement of disabled people in work and society, and also to develop social awareness and sensitivity to this subject. Due to the impact of the project and the interest it has garnered, we have decided to extend it for another year.  Our project team is going to ensure participation by Koç Group personnel in the 'Right Approach to Disability Trainings.' Then, it is going to continue to extend these trainings to all corners of Turkey through our ambassadors, who are My Country volunteers. Furthermore, according to each company's sector and area of responsibility, efforts will be maintained to design new products and services for the disabled, and added support will be provided for social work projects.​</span></p>
To the Attention of the Press and the Public<p align="justify"> The attempted coup that our country faced in the evening of 15 July 2016 has targeted the democratic and constitutional Republic of Turkey, our unity and integrity. <br><br> The belief in democracy held by our nation, state and forces of law has vanquished and overcome this indefensible coup attempt. <br><br> Democracy is the main foundation stone of our Republic, and living under roof of a democratic and constitutional state is the greatest guarantee for the future of our nation. <br><br> We need even more common sense, unity and harmony than ever before for a swift return to normality. <br><br> We would like to express our heartfelt conviction that we will overcome this difficult period as we stand shoulder-to-shoulder with our state and our nation. As we ask that God rest the souls of the victims of these events, we would like to extend our sympathy to their families and wish the injured a speedy recovery. <br><br> With our deepest regards, <br> Koç Holding A.Ş. <br><br> </p>

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