01.04.2022

Koç Holding’s 58th Ordinary General Assembly Convened

16 min

Koç Holding’s 58th Ordinary General Assembly convened on 1 April 2022, Friday at the Holding’s Headquarters in Nakkaştepe with the participation of Koç Holding Honorary Chair Rahmi M. Koç, Vice Chair of the Board of Directors Ali Y. Koç, Board of Directors Member İpek Kıraç, Koç Holding’s senior management and shareholders. Due to the absence of Koç Holding Chair of the Board of Directors Ömer M. Koç, the General Assembly Meeting was presided by Ali Y. Koç. At the meeting, 2021 Annual Report was shared with the participants and the Board of Directors Report was read out. In his statement, Koç Holding Honorary Chair Rahmi M. Koç said, “We are confident in our country’s future and we will resolutely continue with our investments.” Koç Holding Chair of the Board of Directors Ömer M. Koç remarked, “Despite the myriad of uncertainties, the Koç Group leaves behind another year of most satisfactory financial results.” Koç Holding CEO Levent Çakıroğlu commented that, “The strength we derive from our century-old established corporate values as well as our modern competencies, which we have developed through the transformation programs we faithfully implement have played a major role in the performance of the Koç Group, which has been successfully tested against significant adversities, especially in the last two years.”

Rahmi M. Koç: “We are confident in our country’s future and we will resolutely continue with our investments.”
 
In his statement in the Annual Report, Koç Holding Honorary Chair Rahmi M. Koç said: “Thanks to a healthy balance sheet, robust liquidity, FX-earning businesses, extensive supply-chain capabilities, and uninterrupted investments, the Koç Group for its part continued to create value for the whole country during what was a very challenging year. Of the approximately TL 53 billion (USD 8.9 billion) that our group has invested during the last five years, TL 17.3 billion (USD 1.9 billion) was booked in 2021. As we have taken every opportunity to make clear, we are confident in our country’s future and we will resolutely continue with our investments.” Noting that Koç Holding supports social wellbeing in a variety of ways through the efforts in the areas of education, science, health, and culture & art, Rahmi M. Koç continued, “Thanks to the Vehbi Koç Foundation, which has completed half a century of service, we have been sharing the added value generated by our commercial success with our country and its people through various projects and investments.”
 
Ömer M. Koç: “It is projected that the pandemic will be broadly brought under control in the second half of 2022 with the development of new treatments as well as vaccines.”
 
In his statement in the Annual Report, Koç Holding Chair of the Board of Directors Ömer M. Koç underlined that they left behind another year in which they had to deal with the difficulties brought about by the COVID-19 pandemic, and remarked as follows: “By 2022, enough vaccines will have been produced to inoculate the whole world. However, it is clear that the risk will continue with the emergence of new variants, as we observed at the end of the year, unless we can act in global solidarity to make sure that the countries with insufficient financial means have access to the vaccine. However, it is projected that the pandemic will be broadly brought under control in the second half of 2022 with the development of new treatments as well as vaccines. In any case, I believe that with widening inequalities between countries and social segments, we will enter an era of increasing political risks in the world in the wake of the pandemic.”

Ömer M. Koç: “Whatever the circumstances, we will strive to do the best for our country and humanity by remaining faithful to the century-old corporate values, which we have inherited.”
 
Pointing out that the Koç Group left behind another year of most satisfactory financial results despite the myriad of uncertainties, Ömer M. Koç stated, “All of our businesses exhibited a performance beyond their budgets. We have maintained our long-term strategic focus, while managing the risks and taking advantage of the opportunities by taking decisions in line with constantly changing conditions. The purchase of our partner’s shares in Yapı Kredi and the share buyback programs for Koç Holding and Arçelik were welcomed by the market. The partnership between Arçelik and Hitachi, which we announced in 2020, was completed in 2021, while Ford Otosan embarked on our country’s largest electrification automotive investment during the year. Arçelik’s acquisition of Whirlpool’s company in Turkey and Entek’s acquisition of the Süloğlu wind power plant were other important steps we took during the year. As we rapidly take and implement operational and strategic decisions, which are reflected in our successful financial results, we benefit from the fruits of our hard work to establish a culture that embraces change. This year, we took an important step forward when we added carbon transition to the scope of our cultural transformation program, which is shaped by our digital transformation, agile management, zero-based budgeting, innovation and entrepreneurship projects. It is clear that this issue, which has become one of the most important agenda items of the global economy and politics, will shape our competitiveness in the near future. Our Carbon Transition Program will offer an ambitious and realistic perspective, which will prepare us for this future. We are delighted to have been recognized as the most reputable brand of our country in 2021 as well. As I always emphasize, the most important element of our reputation is how our young people - who are our future - perceive us. The Koç Group will continue to go to the greatest lengths to be a ‘reliable stakeholder’ which will feed their hopes and enable them to realize their ideals. Whatever the circumstances, we will strive to do the best for our country and humanity by remaining faithful to the century-old corporate values, which we have inherited.”

Levent Çakıroğlu: “We have concluded the year with an outstanding financial performance, despite all the challenges, thanks to the structure of our portfolio, our prudent financial management and our sound business strategy.”
 
In his statement in the Annual Report, Koç Holding CEO Levent Çakıroğlu said, “We are delighted to have concluded the year with an outstanding financial performance which exceeded our budgets in all businesses, despite all the challenges, thanks to the structure of our portfolio, our prudent financial management and our sound business strategy.” His statement continued as follows: “In 2021, our consolidated revenue increased by 89% to reach TL 346.7 billion, while our combined international revenue stood at USD 19 billion. We boosted the total volume of our investments over the last 5 years to TL 53 billion, undertaking TL 17.3 billion in combined investment in 2021, even in an environment of uncertainty. In line with our global growth vision, we also press forward with our foreign investment activities. The strength we derive from our century-old established corporate values as well as our modern competencies, which we have developed through the transformation programs we faithfully implement have played a major role in the performance of the Koç Group, which has been successfully tested against significant adversities, especially in the last two years. We are held up as an example to our stakeholders on domestic and international platforms with our programs, which are future-oriented and involve a multidimensional cultural change, including the digital transformation, innovation, in-house entrepreneurship, agile management and zero-based budgeting.”

“Our human capital, which is a source of tremendous pride for our group, is the subject of our cultural transformation journey”, said Levent Çakıroğlu. “We expand the agile management approach in all of our companies with comprehensive programs and improve internal dialogue mechanisms. Our strategic workforce transformation efforts also gained momentum in 2021. For a fifth year, we retained our position as Turkey’s number 1 in the ‘World’s Best Employers’ survey list published by the Forbes Magazine in 2021. Koç Holding was named as the world’s 165th best employer, rising 124 places compared to the previous year.”

Koç Holding’s new Board of Directors has been determined.

The Board of Directors elected at the 58th Ordinary General Assembly Meeting of Koç Holding is composed of the individuals named below:

Rahmi M. Koç - Honorary Chair
Ömer M. Koç - Chair
Ali Y. Koç - Vice Chair
Semahat S. Arsel - Member
Caroline N. Koç - Member
İpek Kıraç - Member
Levent Çakıroğlu - Member and CEO
Jacques A. Nasser - Member
Emily K. Rafferty - Independent Member
Dr. Cem M. Kozlu - Independent Member
Peter Martyr - Independent Member
Michel Ray de Carvalho - Independent Member
 
KOÇ HOLDİNG AND THE KOÇ GROUP IN 2021:

The Board of Director’s review of 2021 in the Annual Report focused on the following:
  • Koç Holding is the only Turkish company to be listed among the “World’s Largest 500 Companies” by Fortune. In addition, Koç Holding was once again ranked as Turkey’s number one in the “World’s Best Employers” list published by Forbes.
  • In 2021, Koç Holding’s combined revenues reached TL 544.3 billion.
  • Expanding our global presence, creating strong brands, generating ever more value for our customers and improving our human resources continued to shape our investments. The Koç Group’s total combined investments reached TL 53 billion over the last 5 years including TL 17.3 billion investments in 2021. The highest amount of investments was made in the automotive sector, followed by the energy and consumer durables sectors.
  • R&D, innovation, technology and digital transformation remained among our group’s main focus areas. Investing nearly TL 3.3 billion in R&D in 2021, the Koç Group accounted for approximately 7% of the total private sector R&D investments undertaken in Turkey.
  • The Koç Group’s international revenues stood at USD 19 billion, supported in particular by our automotive and consumer durables companies, contributing 32% to the Group’s total combined revenues. Foreign currency and foreign currency linked revenues, including Tüpraş, made up around 53% of total combined revenues.
  • As of 31 December 2021, Koç Holding and its publicly traded companies at Borsa İstanbul 100 index (BIST 100) accounted for 21% of the total market capitalization of the companies listed on BIST 100.
  • The Koç Group’s combined revenues correspond to around 8% of Turkey’s GDP and its exports account for around 7% of Turkey’s total exports.
The highlights of the Koç Holding 2021 Annual Report that tackled the Koç Group’s sustainability priorities and associated performance in detail are as follows:
  • Creating long-term, sustainable benefits for the world and the countries in which it operates lies at the heart of the Koç Group’s business model. Koç Holding manages its efforts in this area within the framework of the “Lead. Together” strategy.
  • Koç Holding, which is among the companies that support the Task Force on Climate-Related Financial Disclosures (TCFD), aims to manage the risks and potential opportunities arising from climate change within the framework of TCFD, to regularly disclose them to its stakeholders and to extend them across its ecosystem.
  • In line with its 2050 carbon neutrality target, Koç Holding commits to reduce Scope 1 and Scope 2 greenhouse gas emissions by 27% in 2030 and by 49% in 2040, compared to the 2017 baseline year. To devise the roadmap for transitioning to a low-carbon economy necessary for achieving this target, the Carbon Transition Program has been launched across the Koç Group.