It is Vestel time now VESTEL ELEKTRONİK 2014 ANNUAL REPORT

184 

Loading....

Loading....

Loading....

Loading....

Loading....

Full text

(1)

It is Vestel

time now

(2)

INTRODUCTION

2 SUMMARY FINANCIAL AND OPERA TIONAL INDICATORS

10 HIGHLIGHTS FROM VESTEL IN 201 4

16 VESTEL’S AWARDS AND P

ARTICIPATIONS IN FAIRS IN 2014

24 CHAIRMAN’S MESSAGE 28 BOARD OF DIRECTORS 30 INTERVIEW WITH THE CE

O 34 EXECUTIVE COMMITTEE 36 VESTEL IN BRIEF

40 VESTEL’S GLOBAL OPERATION NETW ORK

42 VESTEL’S STRATEGY AND REALIZA

TIONS IN 2014

44 ZORLU GROUP

REVIEW OF THE YEAR 2014

48 R&D AT THE HEART OF VESTEL ’S COMPETITIVENESS

54 VESTEL COOPERATION E

COSYSTEM 56 VESTEL SMALL HOUSEHOLD APPLIANCES 57 VESTEL LED LIGHTING

58 EXCELLENCE IN SALES & MARKETING AND SERVICES

SUSTAINABILITY

66 SUSTAINABILITY AND VESTEL

FINANCIAL INFORMATION AND REPORTS

76 RISKS AND ASSESSMENT OF THE BO ARD OF DIRECTORS

80 INTERNAL AUDIT DEPARTMENT AND ITS OPERATIONS

81 STATEMENT OF RESPONSIBILIT Y 82 CORPORATE GOVERNANCE PRINCIPLES

COMPLIANCE REPORT

103 DIVIDEND DISTRIBUTION PROPOSAL 104 STATEMENT OF INDEPENDENCE B

Y THE INDEPENDENT BOARD MEMBER CANDID

ATES

106 CONCLUSION OF THE AFFILIA

TION REPORT PREPARED PURSUANT TO THE ARTICLE 199 OF

THE TURKISH COMMERCIAL C ODE 107 INDEPENDENT AUDITOR’S REPORT

(3)

It is Vestel time now

In 2014 Vestel;

• Further advanced

its position of

being

a preferred ODM

business partner

for

the A-brand pr

oducers in interna

tional

markets;

• Became the

leader in the T

urkish TV

market and incr

eased its mark

et share

in the Turkish

white goods mark

et

driven by its new

sales and mark

eting

initiatives, expansion

into new sales

channels and

restructuring o

f its

after-sales services,

which were back

ed by its

new communica

tion strategy launched

with the “Türkiye

Vestelleniyor

(Turkey is

Vestelized)” campaign.

While advances

in technology

are

increasingly aff

ecting the course

of our

lives, Vestel will

continue to touch

the

lives of consumers

with its products.

INTRODUCTION 1 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(4)

SUMMARY FINANCIAL AND OPERATIONAL

INDICATORS

EBITDA* EBITDA Margin * Excluding other income and expenses from operating activities

2012

115

1.6

2013

6.3

394

2014

9.3

724

Geographical

Breakdown of Sales

Breakdown of Sales

by Segment

2012

7,

029

2013

6

,218

2014

7,

767

2012

12

2013

17

2014

20

64%

Europe

63%

TV and

Electronics

29%

Turkey

37%

White

Goods

7% Other

EBITDA (TL Million) and

EBITDA Margin (%)

Net Sales

(TL Million)

Gross Profit Margin

(%)

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(5)

Vestel’s consolidated

revenues grew by 25%

YoY to TL7,767 million

in 2014.

With 20% Vestel

recorded its highest

gross profit margin to

date.

In 2014, EBITDA grew by

84% YoY to reach TL724

million, with EBITDA

margin increasing from

6.3% to 9.3%.

25%

20%

9.3%

INTRODUCTION 3 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(6)

SUMMARY FINANCIAL AND OPERATIONAL INDICATORS

Key Financial Indicators

Consolidated Income Statements

(Million USD)

2012

2013

2014

Net Sales

3,921

3,270

3,550

Exports/Sales

75%

73%

71%

Gross Profit

468

570

718

Gross Profit Margin

11.9%

17.4%

20.2%

Operating Profit/(Loss)*

(41)

82

207

Operating Profit Margin

(1.0%)

2.5%

5.8%

EBITDA*

64

207

331

EBITDA Margin

1.6%

6.3%

9.3%

Net Profit/(Loss)**

(62)

(52)

45

Net Profit Margin

(1.6%)

(1.6%)

1.3%

* Excluding other income and expenses from operating activities **Attributable to equity holders of the parent

With its strong performance in 2014, Vestel increased its

gross profit and EBITDA to their historically highest levels

in TL terms.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(7)

Consolidated Balance Sheets (Million USD)

2012

2013

2014

Cash and Cash Equivalents

187

164

267

Trade Receivables

824

763

833

Inventories

565

594

743

Current Assets

1,722

1,645

2,099

Property, Plant and Equipment

711

645

589

Total Assets

2,758

2,641

3,157

Short Term Financial Liabilities

1,693

1,722

1,973

Long Term Financial Liabilities

312

289

593

Shareholders’ Equity

753

630

591

Net Financial Debt

372

304

445

Summary Consolidated Statements

of Cash Flow (Million USD)

2012

2013

2014

Net Cash Flows From Operating Activities

55

229

280

Net Cash Flows From Investing Activities

(212)

(180)

(199)

Net Cash Flows From Financing Activities

74

(65)

42

INTRODUCTION 5 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(8)

SUMMARY FINANCIAL AND OPERATIONAL INDICATORS

Credit Rating

Standard & Poor’s, the credit rating agency, upgraded Vestel Elektronik’s credit rating outlook from

stable to positive on 31 October, 2014, in parallel with the improvement in the Company’s operational

performance and the expectations of a positive net cash flow in 2015.

S&P

B-/Positive

Corporate Governance Rating

Sub-Categories

Weight

Rating (2014)

Rating (2013)

Shareholders

0.25

9.33 (93.39%)

9.25 (92.57%)

Public Disclosure and Transparency

0.25

8.94 (89.45%)

8.89 (88.90%)

Stakeholders

0.15

9.09 (90.91%)

8.93 (89.38%)

Board of Directors

0.35

8.86 (88.69%)

8.76 (87.64%)

Total

1.00

9.03 (90.39%)

8.94 (89.45%)

Shareholding Structure

Shareholders

Amount of Shares

(TL)

Share Percentage

(%)

Zorlu Holding AŞ

216,053,592

64.41

Zorlu Holding AŞ (free float)

44,047,711

13.13

Other Shareholders (free float)

75,354,971

22.46

Total

335,456,275

100.00

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(9)

Vestel Elektronik Shares

The shares of Vestel Elektronik Sanayi ve Ticaret AŞ

(“Vestel”) have been trading on the BIST National

Market since 1990 under the VESTL ticker.

In addition, the Company’s global depositary

receipts, which have been trading on the London

Stock Exchange since 2000, began trading on the

London Over-the-Counter market (OTC market)

on 3 January 2011.

The shares of Vestel Beyaz Eşya Sanayi ve Ticaret

AŞ, a subsidiary of Vestel Elektronik Sanayi ve

Ticaret AŞ, have been trading on the BIST since

2006 under the VESBE ticker.

As of the end of 2014, Vestel Elektronik’s shares are

included in the BIST NATIONAL MARKET, BIST 50,

BIST 100, BIST 100-30, BIST ALL, BIST CORPORATE

GOVERNANCE, BIST METAL PRODUCTS and BIST

INDUSTRIAL indices.

Vestel Elektronik was added to the BIST 50 index

in 2014 thanks to the increase in its market

capitalization and daily trading volume.

A market capitalization of

TL2.1 billion as of the end

of 2014.

Vestel Elektronik was included

in the BIST 50 index in line with

the increase in the value of its

shares and daily trading volume

in 2014.

Vestel Elektronik’s share price

stood at TL6.35 as of the end

of 2014, having demonstrated

a strong performance

throughout the year.

TL2.1 billion

TL6.35

Share Price Summary (TL)

2014

Number of Shares

33,545,627,500

Free-float

11,940,268,200

Yearly High

7.75

Yearly Low

1.38

Year-End Price

6.35

Market Capitalization*

2,130,147,346

* As of 31.12.2014 INTRODUCTION 7 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(10)

SUMMARY FINANCIAL AND OPERATIONAL INDICATORS

Vestel Elektronik Share Price Performance (TL)

Vestel Elektronik - Relative Performance

250 200 150 100 50 0 9 8 7 6 5 4 3 2 1 0 BIST 100 VESTL 500 450 400 350 300 250 200 150 100 50 0

VESTL: 310%

BIST 100: 26%

Relative: 224%

Daily Trading Volume (TL Million) (Left Axis) Share Price (TL) (Right Axis)

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(11)

Vestel Elektronik’s shar

e price more

than quadrupled during 201

4 to reach

TL6.35 by the end o

f the year in parallel

with the Company

’s strong financial

performance during the year

, taking its

market capitaliza

tion to TL2,130 million

by the end of the year

.

In the same period, the BIST 100 index

notched up a r

eturn of 26%. With its

performance, V

estel Elektronik achieved

the 5

th

highest return among the

companies in the BIST ALL index.

INTRODUCTION 9 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(12)

HIGHLIGHTS FROM VESTEL IN 2014

10

awards

Venus

proved itself with

the 10 design

awards it had

won in interna

tional

competitions

in 2014.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(13)

The Venus smart phone, a symbol of Vestel’s technological

development, also represents an important leap for the

sector.

Vestel produces

Turkey’s first locally

developed smart phone

Vestel presented the Venus, its smart phone, which is domestically designed and manufactured and developed by the Turkish engineers at the Vestel City, for the first time at the IFA Fair. The smart phone was launched in Turkey in September 2014, and offered for sale in two different models - the Venus X and the Venus V. The Venus X attracts attention with its sharp contours whereas Venus V has a more rounded design. Both models come in 5.0” and 5.5” screen sizes and black and white color options. Vestel signed an agreement with Google for the Venus that uses the Android

operating system. Vestel became the first and the only Turkish manufacturer with the legal right to use Google services such as Google Play. The Venus 5.0 V and 5.0 X models stand out with their quad-core Qualcomm processors and long battery life while Venus 5.5 V and 5.5 X feature 4G capability, NFC technology, a 13mp camera and a quad-core 1.4 GHz Qualcomm Snapdragon 400 processor.

The Venus smart phone, that clearly indicates Vestel’s advancement in technological development, also represents an important leap for the sector. Venus proved itself with the 10 design awards it had won in international competitions during 2014.

Collaboration between

Vestel and Sharp in the

European white goods

market

Vestel signed a brand licencing agreement with Sharp in line with its strategy of enhancing collaboration with global brands. Vestel Ticaret AŞ, which is a 100% owned subsidiary of Vestel, took over the rights to develop, manufacture, sell and market white goods products under the Sharp brand in Europe through the brand licensing agreement signed on 26 September, 2014. Vestel Ticaret AŞ became the exclusive distributor of Sharp branded products in the European market which are produced at Vestel Beyaz Eşya factories and the Sharp Corporation’s facilities in Asia as of 1 January 2015.

INTRODUCTION 11 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(14)

HIGHLIGHTS FROM VESTEL IN 2014

Two new world record

holding products from

Vestel Beyaz Eşya

Vestel Pyrojet Washing Machine

The washing machine with Pyrojet technology, which consumes 70% less energy than products with 8 kg capacity and 60% less energy than products with 9 kg capacity in the A+++ energy class, is the holder of world record in terms of energy efficiency in its category. Vestel Pyrojet is endorsed by German Electrical, Electronic and Information Technologies Association (VDE) for its energy efficiency.

Pyrojet also stands out with its Allergy Specialist Program, endorsed by one of the world’s most prestigious allergy institutions, Allergy UK, as the first washing machine in Turkey to be effective in tackling 7 different allergens and 4 different bacteria types, in addition to holding a record in energy efficiency.

The success of the washing machine’s anti-allergen program using Pyrojet technology was proven in an event that took place in the UK that is of particular pride for Vestel. Allergy UK donated a Vestel Pyrojet washing machine to the family of the 9 year old Daisy Ames, who had been suffering greatly from inflamed

eczema wounds in her legs. The Pyrojet’s anti-allergen program ended the eczema cycle by providing effective hygiene in the clothes, contributing to her rapid recovery. The Pyrojet washing machine also possesses a large door, full graphic screen, sensitive wash with bumerang body that reduces vibration and Digital Drive silent operation technologies.

Vestel Ekomaks Dishwasher

Vestel Ekomaks, which consumes 20% less energy than the A+++ energy class, was endorsed by the German Electrical, Electronic and Information Technologies Association for its energy efficiency.

The Vestel Ekomaks Dishwasher provides its users with the opportunity to wash full cutlery for 14 people at once with its smart basket design and 3rd basket.

It washes urgent dirty cutlery in 18 minutes with the Jetwash 18 washing program while the Smartwash program measures the degree of soil and identifies the most appropriate washing program. Ekomaks also filters the last rinse of water from the dishes with its Waterbox technology and uses the water again in the pre-wash, thereby providing additional water savings.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(15)

Turkey’s first tablet

with the Google

Play Certificate

Vestel introduced the Turkey’s first

Google Play certified tablet, the Vestel 10.1” Tablet PC

to the market. The Vestel 10.1” Tablet PC is a candida

te to be the new favourate of technology enthusiasts with

its dual-core processor and screen offering

a wide viewing angle. Its entire design and production pr

ocess was carried out by the Turkish engineers at Vestel City. The

Vestel 10.1” Tablet PC, whose powerful processor

allows it to provide a light speed internet experience for

its users, also draws attention with its HD view quality

and long battery life. INTRODUCTION 13 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(16)

Vestel has introduced the display technology of the future at affordable prices to Turkish consumers through its 4K Ultra HD 127” screen TV. The Vestel 4K Ultra HD TV has 4 times the resolution of Full HD televisions and promises a unique experience for its audience. The TV offers Turkey’s richest local content with its 68 applications, 3D image, internal HD satellite receiver and internal wi-fi receiver features. The Vestel Ultra HD TV is equipped with the Smart Center technology, facilitating the transfer of digital broadcasts on TV to smart phones and tablets through its Follow Me feature.

Vestel’s new 3D Smart TV series, which attract attention with their sleek design and technology, allow two full screens to be watched at the same time through the Double Screen feature. The Double Fun feature of the Vestel 3D Smart TV also allows games to be played on a full screen.

Authorized service technicians receive “Long Term Specialty Training” within the scope of the education program carried out by the Vestel Customer Services General Directorate. In addition, an “Authorized Service Center Management Certificate Program” aimed at the owners of Authorized Service Centers is continuing in collaboration with Yaşar University. 96 Authorized service center owners received their diplomas in 2014. The second term of the “Authorized Service Center Management Certificate Program”, provided in cooperation between Vestel and Yaşar University’s Continuous Education Center, is also in progress. HIGHLIGHTS FROM VESTEL IN 2014

Vestel introduces

the Ultra HD view to

Turkey

“Double Screen” from

Vestel

Diploma awarded to

Vestel’s Authorized

Service Centers by

Yaşar University

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(17)

Within the scope of FATİH (Movement of Enhancing Opportunities and Improving Technology) Project, Vestel won the second phase of the smart board tender, after having also won the first phase, and is about to begin the deliveries.

The smart boards to be produced by Vestel, which won the two smart board tenders within the scope of the FATİH project, will be installed in 41,996 schools in 81 cities.

The project, which is an exemplary model for the Middle East and Europe, represents an important step in the area of world education technologies.

Vestel became a member of The European Committee of Domestic Equipment Manufacturers (CECED) which is one of the most important international sectoral associations in the European white goods industry. CECED, whose members include the world’s leading white goods and small household appliances manufacturers, operates with the aim of ensuring that the manufacturing of all household appliances from white goods to small household appliances is more innovative and environmentally friendly.

Vestel LED Lighting began to take place in the DIALux Program, which is used by hundreds of thousands of lighting planners and designers worldwide, with its products. The users will be able to access Vestel LED Lighting fixtures aimed at closed and open space lighting and Vestel LED retrofit lamps through the DIALux’s online, free of charge catalog that is available in 10 languages.

Deliveries starting for

the FATİH smart board

tender

A member of CECED

Collaboration between

Vestel LED Lighting

and DIALux

INTRODUCTION 15 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(18)

VESTEL’S AWARDS AND PARTICIPATIONS IN

FAIRS IN 2014

66 awards

The number o

f design awards V

estel

won in 2014

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(19)

Vestel demonstrates the importance it attaches to R&D,

design, innovation, quality, brand equity and to people

through the successes and awards it has achieved as a

result of the extensive studies conducted by a wide array

of audit and research companies, programs, institutes,

media and professional associations, both in Turkey and

abroad.

Vestel is a key player in the field of electronics, white

goods and information technologies both in Turkey and in

international markets. Vestel reinforces its position through

the new successes and awards it receives each year,

demonstrating that it has already reached a global scale.

INTRODUCTION 17 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(20)

VESTEL’S AWARDS AND PARTICIPATIONS IN FAIRS IN 2014

Design Awards

Vestel was the first and the sole corporate member accepted from Turkey into the International Industrial Design Associations Council, which is one of the world’s most important associations in the field of industrial design. Its products, developed through its advanced technological infrastructure and its indisputable strength in R&D and design have won a bouquet of awards in national and international platforms and competitions. Successfully reflecting the quality, functionality, creativity and respect for ecology criteria into the design of its products, Vestel continues to add to its collection of awards by advancing its design capabilities every year. Vestel demonstrated its success in design through the 66 awards it had won in the competitions it participated during 2014. The Company took part in the following competitions;

• The A Design Award 2014, • Plus X Award 2014-2015, • Red Dot Design Awards,

• IF Design Awards, • Good Design, • Plus X Awards, • Design Turkey 2014.

Vestel won a total of 357 awards in the last seven years.

Vestel won a total of 9 awards in the Good Design Awards 2014; 4 awards in the Electronic Products category with its three different LED TV models, including its Curved LED TV and the Venus smart phone and 5 awards in the white goods category with its Blue Line, Plain, Neo and XXL Smart NF Refrigerators and its Linea Dishwasher, which were nominated among the white goods, which successfully bring together design and technology.

Vestel Beyaz Eşya’s products were granted 3 awards in the IF Design Awards and 2 awards in the Red Dot Design Awards. The Puzzle French Door Refrigerator won the IF Design Award while the exclusive 6D large volume fridge won awards at both the IF Design Awards and Red Dot Design Awards.

Vestel returned from the Plus X Design Awards 2014 organized in Germany with a clutch of 25 awards. The Company increased the number of its design awards for the Venus smart phone to 10 by winning the “Best Design Brand of the Year 2014-2015” - an award granted only to a few select brands in the design category.

Vestel was granted the “The Best Product of the Year” Award in 3 different product categories: • CHOPIN 4K Ultra HD Media Player

– The Best Set-top Box of the Year • SMART 65PF7575 65” LED TV –

The Best LED TV of the Year • RC1600 –The Best Remote

Control of the Year

In addition to the awards for its Venus smart phone and the awards mentioned above, Vestel won a total of 21 awards with its LED TV and 4K Ultra HD Media Player models in the categories of high quality, innovation, design and ease of use.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(21)

Vestel reinforces its position with the new successes and

awards it wins each year.

Vestel wins “Turquality Special

Award”.

The “Design Turkey Industrial Design Awards” - Turkey’s biggest award event in innovation and branding - was organized for the fourth time this year in trust of the Ministry of Economy and with the collaboration of the Turkish Exporters Assembly and Industrial Designers Professional Association.

The event, which was opened to the international arena for the first time this year, received a total of 410 applications with 65 products receiving the “Good Design Award”. Vestel won the highest number of design awards in the event, with three awards in the white goods category and two awards in electronics. Vestel was also granted the Turquality Special Award, which was given for the first time.

R&D Awards

Vestel is ranked the first among

R&D centers.

Vestel became the leader in both the electronics and consumer durables sectors in the R&D Awards given within the scope of the 3rd Private

Sector R&D Centers Summit. Vestel stood out in the evaluation, which was based on a number of criteria including personnel employment, R&D spending, project capacity, collaboration and interaction, commercialization and intellectual property competency among the 164 R&D centers from 24 sectors, ranking the first in both of the two sectors in which it operates.

Vestel Elektronik winner of the

“Innovation Cycle” in İnovaLig

Innovation Championships

The third “Turkey Innovation Week 2014” was organized by the Turkish Exporters Assembly with the support of the Ministry of Economy and the strategic partnership of the private sector this year. The İnovaLig Innovation Championships Awards Ceremony was held on the closing day, at which Vestel Elektronik was granted the winning award in the “Innovation Cycle” category.

Two awards for the HIPERMED

Project

The HIPERMED Project, in which Vestel Elektronik also took part, was deemed worthy of the EUREKA Innovation Award 2014 and the Celtic-Plus Innovation and Excellence Award 2014.

INTRODUCTION 19 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(22)

VESTEL’S AWARDS AND PARTICIPATIONS IN FAIRS IN 2014

Marketing

Communication

Awards

Vestel won several awards with its new movement initiated under its new brand identity and advertising strategy.

Vestel won 5 awards in Crystal

Apple Creativity Festival.

Vestel returned from the Crystal Apple Creativity Festival with one Crystal, two Silvers and three Bronze Apples, winning a total of 5 awards.

Vestel won one award in Effie

Awards.

Vestel won a bronze Effie in the durable goods category in the Effie Awards.

Vestel won a clean sweep in a

category in the Mediacat Felis

Awards.

Vestel won all the 4 awards given in the Household Appliances and Goods, Furniture and Decoration category in the Mediacat Felis Awards.

Vestel won the 3

rd

prize in Direct

Marketing Awards.

Vestel won the 3rd prize in the

“Integrated Marketing Campaigns” category in the 7th Direct Marketing

Awards organized by the Direct Marketing Communicators Association in 2014.

Golden Compass Award given to

Mega Factory Vestel City.

Vestel won an award in Media Relations category at the Golden Compass Awards organized for the 13th time this year by the Turkey

Public Relations Association (TÜHİD) with the communication of the Vestel City located in Manisa, which was also featured in the famous National Geographic Channel’s Mega Factories documentary series.

Winner of the Best Brand Award

in complaint management

Vestel continues to set itself apart in the field of after-sales services. Vestel won the winning award in the white goods category in the A.L.F.A. Awards organized for the first time this year jointly by the Marketing Turkey Magazine, the Marketing Management Institute, Şikayetvar. com and the Method Research Company, which measures the customer satisfaction processes. Vestel was selected as the best brand in complaint management in its category as a result of the evaluations conducted on the basis of the response times to complaints, the number of complaints received and the number of messages expressing thanks from customers. As in 2013, Vestel received the highest complaint management success score, ranking the 1st

by far in the all categories, i.e. dishwashers, fridges, washing machines, televisions and general white goods, in all the quarters of 2014 according to the ŞikayetEndex data from Şikayetvar.com. Vestel was announced to be the brand which has received the highest number of thank you messages from its customers.

HR Awards

Vestel won “The Most Successful

Human Resource Practice”

Award with its V-Asist Project

which provides consultancy

services to dealers.

Vestel notched up another success through activities carried out in line with its vision of becoming Turkey’s leading retailer. Vestel won “The Most Successful Human Resource Practice” Award with its V-Asist project which provides consultancy services to dealers in the Retail Sun Awards, which was organized within the scope of Retail Days - one of Turkey’s biggest organizations in the business world.

Vestel won three awards in the Respect to Human Awards organized for the 14th time by Kariyer.net, which

is Turkey’s largest human resources platform. Vestel was selected as “The Most Acclaimed Company” and “The Anatolian Company To Have Received The Most Job Applications”. Vestel also won the “Respect for People” Award. Reflecting its service quality in all areas from manufacturing and retailing to after-sales services and the value it attaches to people on its all stakeholders, Vestel once again proved itself as one of the Turkey’s leading brands.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(23)

Vestel displayed the level it had reached with its smart

home systems at the IFA Fair, and is in the process of further

reinforcing its position in advanced technology products.

Vestel was deemed worthy

of two awards by virtue of its

employment power within

the scope of the 7

th

Manisa

Employment and Education

Meeting Days.

Vestel won “The Enterprise Providing The Highest Level Of Employment” and “The Enterprise Employing The Most Women” Awards among the nearly 2,500 companies operating in Manisa. Vestel became “The Enterprise Providing The Most Employment” with its nearly 16,000 employees, according to an evaluation conducted based on the companies’ existing employment figures. It also won the title of “The Enterprise To Employ The Most Women”, with its more than 5,000 female employees.

Environmental Awards

Vestel Elektronik wins “Green

Point” from ÇEVKO.

Vestel Elektronik won the Incentive Award in the Large Scale Companies Category at the Green Point Awards, which was organized by Environmental Protection and Packaging Wastes Treatment Foundation (ÇEVKO), in recognition of the Company’s activities carried out under its Sustainable Operational Excellence approach.

Istanbul Chamber of Industry’s

14

th

Environmental and Energy

Awards

Vestel Elektronik was ranked the 1st in the “Environmentally Friendly

Application” category with its environmental friendly chrome coating system within the scope of the “Environment and Energy Awards” organized by the Istanbul Chamber of Industry.

Participations in Fairs

in 2014

A show of power in the IFA Fair

Vestel participated in the IFA Fair, which is Europe’s largest electronics and white goods fair organized in Germany’s capital, Berlin, for the 19th

time in 2014. Vestel demonstrated its power in design and R&D at the IFA Fair, exhibiting its 618 different products.

Vestel’s booth was set up on a 3,000 m2 area and attracted around 1,000

visitors each day. Vestel’s newest product, the Venus Smart Phone which uses the Android operating system, received very positive reactions and wide acclaim. The Fair was also an opportunity for Vestel, which is in the process of reinforcing its position in advanced technology products, to display the level it had reached with its smart home systems.

Light & Building Fair

Vestel LED Lighting participated in the Light & Building Fair, one of Europe’s most important lighting fairs and organized in Frankfurt, for the first time. Vestel LED Lighting displayed 60 different products at its booth on a 126 m2 area. The

Fair was an opportunity for Vestel LED Lighting to showcase its LED High Ceiling and LED Batten luminaires for the first time, which were developed completely by the Turkish engineers at the Vestel R&D center, in addition to their optical, mechanical, electronic and power unit designs.

INTRODUCTION 21 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(24)

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(25)

Always in our

lives

Vestel takes part

in consumers’

lives

with its products

in Turkey and

in 149

countries around

the world.

INTRODUCTION 23 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(26)

CHAIRMAN’S MESSAGE

Ahmet Nazif Zorlu

Chairman

Dear stakeholders,

We leave behind what was a highly successful year for our Company. It gives me great pleasure to report that despite the problems encountered in the economy, Vestel maintained its strong performance in 2014 and achieved successful results.

In the global economy, trade volume and the rate of economic growth failed to reach the desired levels in 2014. Although the US and UK economies demonstrated a more robust recovery than expected, the stagnation in Eurozone countries continued. China, the world’s second biggest economy, lost some

of the growth momentum, which it has maintained for a long period, while Japan could not reap the fruits it was expecting from its monetary expansion program.

In the USA, the FED started to gradually implement a monetary tightening program, which it had previously announced, in 2014. This precipitated a loss in the value of the other countries’ currencies against USD, a trend that was most keenly felt in the currencies of developing countries.

The global macroeconomic outlook from 2014 to 2015 demonstrates that the dust has not yet settled in the global economy, where

differences in growth rates between groups of countries are increasingly becoming more apparent.

Geopolitical developments, especially in Russia and the

surrounding countries, including the Middle East, have given rise to fears regarding stability.

Economic recovery has gained momentum in the USA, whose economy started to exhibit growth with its indicators displaying a positive trend. The FED, which takes into account the globally weak growth performance especially in Europe, China and Japan in marked contrast with the strong growth in the USA, signaled that it would implement the interest rate

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(27)

In 2014, Vestel became the market leader in the domestic

TV market and increased its market share in the domestic

white goods market thanks to the new initiatives built on a

solid strategy.

hikes which it had been planning to introduce from the second half of 2015, gradually and with more caution. Given this, capital outflows from developing countries are expected to be more moderate. The latest Quantitative Easing Program announced by the European Central Bank (ECB) in January 2015 is expected to be a positive development for the upcoming period. In addition, the slump in oil prices has started to support the EU economy which is largely dependent on imported energy, giving rise to the first signals of recovery in the Eurozone.

Despite the loss of momentum in economic growth in line with the trend seen in other developing countries, Turkey succeeded in maintaining its stable performance in 2014 with a 2.9% GDP growth. The monetary policies pursued by Turkey’s Central Bank (CBT) were one of the basic determinants of our country’s macroeconomic performance in 2014. The rebalancing achieved between domestic and international demand as a result of the economic policies

implemented toward reducing the current account deficit, paved the way for a narrowing of the foreign trade deficit and the current account deficit. The plunge in oil prices, which declined by almost 50% in the second half of 2014, contributed to the reduction in the current account deficit thanks to the sharp drop in Turkey’s energy import bill. This outlook is also expected to prevail in 2015 and based on the forecasts that growth will be more driven by the domestic demand and private sector investments this year, economic growth is expected to remain at similar levels with 2014.

2014 marked an important milestone for Vestel, which has preserved its firm stance under all economic conditions with its astute foresight and strategies. The combination of a wider product range, expansion into new sales channels coupled with strong growth in retail sales in the domestic market, and our exports reaching 149 countries enabled us to grow in excess of the targets we had set out at the beginning of the year. Our sales and profit displayed strong growth and our successes were reflected to Vestel Elektronik’s

market capitalization. Hence, the Company notched up the 5th highest

return among the companies in the BIST All index during 2014. In the domestic market, Vestel became the market leader in the TV segment and increased its market share in the white goods segment thanks to the new initiatives undertaken with a well-founded strategy in the areas of sales, marketing, distribution and after-sales services. In international markets, the brand licensing agreement signed with Sharp in the field of white goods for the European market and the acquisition of new A-brand customers in both the white goods and TV businesses were the most important developments of the year.

The Venus smart phone, which was developed by the Turkish engineers at the Vestel City, one of the world’s largest industrial complexes and symbolizes the cutting edge of technology, was introduced to the Turkish consumers at reasonable prices in 2014. We aim to reinforce our position in the smart phone market by rolling out new models of Venus to the domestic market in 2015, which has received a great

INTRODUCTION 25 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(28)

CHAIRMAN’S MESSAGE

In international markets, the most important developments

of the year were the acquisition of new A-brand clients in

both the white goods and TV businesses and the brand

licensing agreement signed with Sharp in the area of white

goods for the European market.

deal of attention in a short span of time.

The Venus, which we view as a project of national pride, will help in bringing down the current account deficit by reducing the mobile phone imports while also contributing to increasing Turkey’s export capacity through the mobile phone exports which we plan for the coming period.

The Venus smart phone once again demonstrated that we are a world class company in terms of global competition, innovation, technology and product quality. The Venus smart phone also marked the successful integration of our product range into the smart home concept. Another important development of the year was the smart board tender, the contract for which we signed at the beginning of 2014, within the scope of the “Movement of Enhancing Opportunities and Improving Technology” (FATIH) Project undertaken by the Ministry

of Transport, Maritime Affairs and Communication. The contract value amounts to TL1 billion and deliveries in the project started towards the end of the year.

We view this project as a revolution in our education system, and an important step towards future. In addition to this project, we also produce smart boards for private schools and offices, serving an increasing number of users. Our Group’s production is centered on high value added advanced technology products. As a result of the studies we have carried out in this direction, the average screen size of our televisions increased by 4 inches in 2014. In addition, we increased the share of Smart TVs in our total TV sales. As for white goods, we lead the market with high energy and water saving products, which also offer extra hygienic and anti-allergic characteristics. Similarly, we have continued to expand in the LED lighting sector as well, where we are currently the market

leader, offering the best solutions to consumers with our indoor and outdoor lighting products. We unwaveringly continue our efforts to offer Vestel’s technology and design to Turkey and the world through our innovative products which exceed customer expectations and are developed in our R&D Department, where we produce the technology of the future.

Social responsibility is one of the important factors, which increasingly affects consumer preferences in today’s world.

Consumers increasingly care about whether the products and services they purchase harm the environment or make contribution to the society. As a Group, we give priority to ensuring that our products include environmentally friendly features, such as energy efficiency and water conservation. We accord special consideration to the economic, environmental and

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(29)

The Venus smart phone demonstrated once again that we

are a world class company in terms of global competition,

innovation, technology and product quality. The Venus

smart phone also marked the successful integration of our

product range into the smart home concept.

social effects of all of our operations within the framework of our

sustainability approach, which we have maintained for years as part of our corporate culture. Accordingly, we carry out a number of projects in this area.

I am delighted to be able to say that all of our companies under the Vestel roof endorse a range of successful practices in a number of areas, particularly in education and environment, under the guidance of the Zorlu Group Sustainability Principles.

The feedback we receive from you, our shareholders, ensures that we look to the future with greater confidence and strengthens us. In the coming years, our main goals will be to reinforce the trust that has been shown in us and in our brands, and maintain our prestige at the highest level.

Our successes are based on the valuable efforts of our employees and managers, and the trust and

support of our business partners and consumers. I believe we will build a better future together and I would like to take this opportunity to extend my gratitude to all.

It is our duty and responsibility to continue to invest in Turkey’s future and to provide better quality products and services. We always dream big under the Vestel roof and derive strength from your presence to give life to our dreams. We believe that we will strengthen the position of Vestel and Turkey in global markets by continuing to work towards our goals. There is no obstacle to achieving these dreams as we move towards our mutual goal…

Yours faithfully,

Ahmet Nazif Zorlu Chairman

INTRODUCTION 27 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(30)

BOARD OF DIRECTORS

Ahmet Nazif Zorlu

Chairman

Mehmet Emre Zorlu

Board Member

Hacı Ahmet Kılıçoğlu

Board Member

Ali Akın Tarı

Vice Chairman

Mümin Cengiz Ultav

Board Member

Selen Zorlu Melik

Board Member

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(31)

Ahmet Nazif Zorlu

Chairman

(1944 - Denizli) Ahmet Nazif Zorlu began his professional career in a family-owned textiles business. He set up his first company, Korteks, in 1976. In the years that followed, he continued to undertake new investments in the textiles industry and founded Zorlu Holding in 1990. Mr. Zorlu purchased the rights to the Vestel trademark in 1994. He is currently the Chairman of the Board and Vice Chairman of numerous Zorlu Group companies active in different sectors, including Vestel Beyaz Eşya San. ve Tic. AŞ and Vestel Elektronik San. ve Tic. AŞ.

Ali Akın Tarı

Vice Chairman

(1943 - Koruköy) After his graduation from the Istanbul Law Faculty, Ali Akın Tarı served as a Tax Inspector and as a Chief Tax Inspector at the Ministry of Finance between 1972 and 1986. He was appointed as the Vice-President of the Tax Inspectors Board in 1986 and Group Head of the Istanbul Tax Inspectors Board in 1989, and continued to serve in this position until he was appointed as a Board Member of the Banking Regulation and Supervision Agency in 2001. He was also elected as a Board Member of the Savings Deposit Insurance Fund in the same year. He left his position at the Banking Regulation and Supervision Agency when his period of duty expired in 2004, and was appointed as a Consultant for the Ministry of Finance. Mr. Tarı served in this position until 2007, when he voluntarily left his position in the public sector to work in different areas in the private sector. Mr. Tarı became a member of the Board of Directors and the Audit Committee of Dilerbank in 2008; in addition to this position, he was appointed as a member of the Board of Directors of Diler Holding in 2011. Still serving in these positions, Mr. Tarı holds the titles of Certified Public Accountant and Independent Auditor.

Selen Zorlu Melik

Board Member

(1975 - Trabzon) Selen Zorlu Melik graduated from the Faculty of Economics and Administrative Sciences, Department of Business Administration at Uludağ University. She began her professional career at Denizbank in 1998. Following her internship at the Denizbank Bursa Branch, she joined the Management Trainee Program at the same bank in 1999. After working in a number of positions at the Denizbank head office, Mrs. Zorlu Melik attended a Marketing Certificate Program at the University of California, Berkeley, USA in 2001. She subsequently started to work at the Korteks Yarn Plant in 2002 and became a Board Member of the same Company in 2004. She has been serving as the Deputy President of the Zorlu Energy Group, as a Board Member of Zorlu Enerji Elektrik Üretim AŞ and also as Board Member at several Zorlu Group companies since 2005. Since April 2012, Mrs. Zorlu Melik has been acting as the Deputy President of Zorlu Energy Group.

Mehmet Emre Zorlu

Board Member

(1984 - Istanbul) Mehmet Emre Zorlu graduated from the Department of Electrical and Electronics Engineering at Koç University in 2006. He went on to complete a master’s degree in Innovation and Technology Management from the University of Essex in the United Kingdom in 2007 and 2008. Mr. Zorlu began working at the Vestel Group of Companies in 2009. In addition to his position as a Board Member at Vestel Elektronik, Mr. Zorlu also serves as a Board Member at Zorlu Holding and its affiliated companies.

Mümin Cengiz Ultav

Board Member

(1950 - Eskişehir) Mümin Cengiz Ultav graduated from Middle East Technical University with BSc and MSc degrees in Electronics Engineering. He began his professional career at the International Philips Institute and subsequently served in the IT and R&D departments of various electronics companies in Turkey and abroad. Mr. Ultav joined Vestel in 1997 as the President responsible for Technology. He stepped down from his position as a Member of the Executive Committee responsible for Strategic Planning and Technology on 30 June 2011. Mümin Cengiz Ultav currently serves as a Board Member at Vestel Elektronik Sanayi ve Ticaret AŞ.

Hacı Ahmet Kılıçoğlu

Board Member

(1956 - Giresun) Hacı Ahmet Kılıçoğlu graduated with a Bachelor’s degree in Economics in 1977 and Master’s degree in Economics in 1978 from the University of Essex. He started his professional career at the Ministry of Industry and Technology in 1979. In 1980 he became an Assistant Specialist at Türkiye İş Bankası and after working in the private sector for a couple of years, Mr. Kılıçoğlu held administrative positions at the United Nations Development Program (UNDP) and the F-16 project. He then took office at Türk Eximbank in 1987, where he worked in various positions. He later served as the CEO of the bank and as a Board Member between 1998 and 2010. He also served as a Board Member at the Banks Association of Turkey between 1998 and 2010 and was elected as the President of the World EximBanks Union (The Berne Union) in 2001. Mr. Kılıçoğlu also served as a Consultant to the President at the Islamic Development Bank between 2008 and 2009 and as a Vice Chairman at Denizbank in 2010. Mr. Kılıçoğlu is currently a Board Member at Beşiktaş Futbol Yatırımları Sanayi ve Ticaret AŞ and Şeker Mortgage Finansman AŞ in addition to his board memberships at Vestel Elektronik Sanayi ve Ticaret AŞ, Vestel Beyaz Eşya Sanayi ve Ticaret AŞ and Zorlu Enerji Elektrik Üretim AŞ.

INTRODUCTION 29 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(32)

INTERVIEW WITH THE CEO

Enis Turan Erdoğan

Chairman of the Executive Committee

How would you evaluate 2014

for the economy and the sector?

Even though the Turkish economy managed to grow in 2014, with 2.9%, the growth rate fell behind the economy’s long term potential growth rate of 5%. The Central Bank of Turkey’s tight monetary policy was an instrumental factor behind the economic developments during the year. As part of the macro-precautionary measures implemented since the end of 2013 to curb the current account deficit, which is the Achilles heel of the Turkish economy, the limitations imposed on consumer credits and credit card installments put a cap on consumption in 2014. Like all other sectors, these measures also took their toll on the electronics and white goods sectors. Domestic TV sales grew by 15% in 2014, driven by the low penetration rate in flat TVs

and the positive impact of the World Cup in June 2014. Domestic white goods sales, on the other hand, demonstrated a sharp contraction in the first four months of the year, but closed the year with a narrower 2% decline thanks to the recovery in demand, which started in September and gained further pace in the last quarter of the year.

International TV sales weakened on a YoY basis in the second half of the year due to the end of the World Cup and the supply tightness in panels/cells, which are the main component of TVs - which started in the second quarter on a global basis and extended into the rest of the year. As for white goods, Turkish producers’ white goods exports grew by 5% YoY in 2014, in parallel with the recovery in the European market, which is the main destination for Turkish exports.

How was the year for Vestel?

What were the highlights of

2014?

2014 was a year of important developments for Vestel. There was a clear improvement in our sales and profitability while our market capitalization more than quadrupled to reach TL2.1 billion (USD918 million) by the end of the year, in line with our strong financial performance. Vestel notched up the 5th highest return among the

companies in the BIST All index during 2014.

Vestel’s sales revenues grew by 25% YoY to reach TL7.8 billion in 2014, with exports accounting for 71% of total revenues. 64% of the Company’s total sales were directed to European countries, 29% to the domestic market and 7% to other countries.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(33)

In 2014, the most important development for us was the

introduction of Venus, our smart phone, to the market. Our

entry into the smart phone business started with 4 models and

will continue with new and more developed models which

track the latest trends and technologies.

2014 was a record breaking year in terms of profitability, with our gross profit increasing by 45% YoY to TL1,570 million, denoting its highest level to date thanks to the continuing efficiency and costdown efforts, increasing share of the more profitable mid-high end products in our sales mix and the positive impact of the weaker TL on our export margins, given our net exporter position. In parallel with the growth in its revenues and gross profit, Vestel recorded TL724 million of EBITDA, denoting its historically highest level in TL terms with an increase of 84% YoY, while EBITDA margin improved by 3 percentage points from 6.3% to 9.3%. In line with these positive developments in profitability, Vestel closed the year 2014 with a net profit of TL97 million on a consolidated basis.

Vestel increased its market shares in the domestic TV and white goods markets in 2014, by posting a higher than market growth and became the domestic leader in TV sales. On the export side, Vestel maintained its position as Turkey’s export leader in electronics for the 17th year and

increased its exports in white goods while adding new A-brand clients to its customer portfolio. The number of countries we export to increased

to 149 in 2014 while our expansion to new markets, especially in the Far East, Asia, South America and Africa, continues.

The most important development for us during 2014 was bringing our smart phone, the Venus, to the market. Our entry into the smart phone business started with 4 models and will continue with new and more developed models which track the latest trends and technologies. It would be no exaggeration to claim that this is the first time smart phones have been produced domestically in Turkey in a real sense, in what is Vestel’s most important move - paving the way for smart phones to become a main business line like TVs in the future. The mobile phone market is about to reach 14 million units in Turkey, and 1.5 billion units in the world. Entering a market that is 4 times larger than the television market brings immensely important opportunities for Vestel.

In what was another important move forward, we took over the rights to develop, manufacture, sell and market white goods products in Europe under the license of the Sharp brand for 5 years. We expect

this agreement to increase our white goods export revenues and enhance our branded and premium product sales in the European market, where we currently operate mainly as an ODM producer.

Vestel also achieved a serious leap in small home appliances, where it offers a wide product range. It also increased its sales in this segment by about 50% in 2014.

Could you please talk about

Vestel’s superiority in R&D and

its reflections on production and

consumers in 2014?

Increasing vertical integration in electronics R&D has a positive effect on our cost structure. As important steps of this integration, optical/ mechanical design and improvement of test infrastructure further

advanced Vestel’s power in R&D. In 2014, Vestel brought 4K2K panels, which support high resolution in large screen TVs, to the market as the first in Turkey, and as one of the firsts in Europe. At the same time, R&D studies for Curved TVs were completed. Ultra HD Curved TVs are planned to be brought to the market in the first quarter of 2015.

INTRODUCTION 31 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(34)

INTERVIEW WITH THE CEO

As a result of the R&D studies conducted over a period of two years, our Venus smart phone - which was domestically designed and produced - was brought to the market in September 2014. Venus was an inevitable development in the technological process that followed smart television. In the mobile technologies sector, where change is fast, our R&D studies continue in order to offer new features in our Vestel branded tablets and phones. Smart solutions gained importance in connection with the development of internet and wireless

communication systems. All devices and systems in our homes can be remotely controlled from mobile phones and tablet PCs through smart home integration. Vestel successfully integrated its product range with the smart home concept. Within this scope, smart home systems were developed, which include air conditioning units, ovens, fridges, dishwashers and washing machines, which can be remotely controlled by Vestel Smart TV, tablet PCs and smart phones.

Two factors come forward here; mobility and connectivity. I can assure you that Vestel will maintain its technological development in these two areas. At Vestel we want to be remembered with the smart home concept by exceeding our claims with our R&D infrastructure. In the coming period, Vestel will be able to completely design smart homes with its smart devices.

Since 2012, we have been offering solutions with LED technology, which provide up to 80% of energy savings and healthy lighting in different settings, ranging from interior lighting for shopping malls, schools and hospitals to street lighting. Vestel has proven itself as an important player in the LED lighting sector through the projects it has undertaken during 2014. The Company maintained its leading position in the domestic market, where it commands a 14% market share, in 2014. In 2014, Vestel also achieved around 50% growth in the professional displays (digital signage) field, which it identifies as a new area of growth for the coming period, following its expansion in LED lighting.

In white goods, the Company focused on producing new models for both the domestic and overseas markets, and developed special products demanded by some niche markets as well as products that encompass the newest technologies. Vestel developed Pyrojet washing machine that consumes 70% less energy than A+++, which is the world’s most efficient washing machine. The Company also developed Ekomaks dishwasher that consumes the least amount of water with 5.5 liters. Vestel obtained efficiency certificates for these two machines from German Electrical, Electronic and Information Technologies Association (VDE).

All electronic cards, power cards and control cards used in Vestel’s consumer electronics and white goods products, as well as the cards that enable their integration into the smart home network and the related software are produced in-house, thus eliminating dependence on external resources. R&D

studies aimed at automation and development of quality improvement systems are ongoing.

Vestel targets to take its existing smart platform structure one step forward through the ‘internet of things’ approach by integrating its smart devices that work on the Smart TV infrastructure with the Vestel Cloud. Some of the areas of study that come to the forefront in line with this target are sensor technologies, wearable technologies, automation

applications based on the smart factory concept and control systems.

One of Vestel’s leading competitive advantages is its capability to transfer the technologies it develops in the field of electronics to different areas where similar technologies are used. The Company’s knowledge and experience in power electronics form a basis for R&D studies aimed at designing charging stations for electric vehicles and have offered us a new area of expansion.

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(35)

Vestel aims to take its existing smart platform structure a step

further through the ‘internet of things’ approach by integrating

its smart devices that work on the Smart TV infrastructure with

the Vestel Cloud.

Could you talk about your

domestic market strategy and

new plans for expansion?

Our expansion strategy for the domestic market goes back to two years. We started this transformation by establishing the Customer Services General Directorate. During this transformation, we connected all the processes from service organization to training, from appearance /display in our shops - where we directly interact with our customers - to excellence in after-sales services; we built all the processes from one end to the other, and on top of each other. On the other hand, in addition to our exclusive dealers, we penetrated into a new distribution channel by starting to sell our products in technology retailers.

We are going through a stage in which brand loyalty is weakening and customer experience is gaining more importance. In this period, those brands, which listen to their customers and address their current needs by offering appropriate solutions, will stand out. From this point on, we have positioned Vestel as a company that works to meet the consumers’ needs fully above all else. In line with our new retailing concept, we have set forward with a promise of ensuring a customer friendly shopping experience.

We also based our communication strategy on our new approach. Our aim was to raise Vestel - which brings technology to Turkish people at the same time with the world - to the position it deserves in the eyes of the consumers. We want products created by Vestel’s technology, R&D and design capabilities to be in every home. As a result of this vision, we launched the “Turkey is Vestelized” campaign.

We can summarize the gains from these efforts as follows; more than 30% growth in the domestic market, increased recognition and trust, high customer satisfaction and to be the 1st in the TV and white goods

categories in the Complaints Index for the last two years.

What are your forecasts and

wishes for the coming period?

Volatility in global markets will continue in 2015. In Turkey, we have a general election coming up, which is likely to delay the consumption in the domestic market. However, demand is expected to recover in the second half of the year thanks to increased political and financial predictability, which may lead the domestic demand to be better than in 2014 for the full year.

Our target for 10% export growth at Vestel remains intact. We will also continue to increase our emphasis on the domestic market

this year and maintain our growth momentum. I hope to see the fruits of the labors we took in 2014 more clearly in 2015.

The expectation that the year will be difficult creates a reflex to develop new strategies for different scenarios, a reflex that enables us to overcome the difficulties more easily. The experience we have gained from the sweeping crises in 2001 and 2008 enabled us to develop a resistance threshold. It is crucial for big companies such as ours to take actions fast. In line with our master plan, we developed strategies to raise Vestel’s brand value to higher levels. We see Vestel as a world company, and accept that 2015 will be a spring board in this direction.

We combine our values that we have woven around a business culture that has people at its heart with an innovative approach that is in Vestel’s DNA, and we will carry this to the future. We will continue to offer the best products and services to our stakeholders by recognizing their expectations and needs well and by basing our actions on the reality that technological development will define the world of the future.

INTRODUCTION 33 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(36)

EXECUTIVE COMMITTEE

Enis Turan Erdoğan

Chairman of the Executive Committee

Necmi Kavuşturan

Executive Committee Member

Ahmet Süha Erol

Executive Committee Member

Nedim Sezer

Executive Committee Member

Bekir Cem Köksal

Executive Committee Member

Özer Ekmekçiler

Executive Committee Member

İhsaner Alkım

Executive Committee Member

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(37)

Enis Turan Erdoğan

Chairman of the Executive Committee

(1955 - Mersin) Enis Turan Erdoğan graduated from the Department of Mechanical Engineering at the Istanbul Technical University in 1976 and completed a master’s degree in Production Management at Brunel University in the UK in 1979. After serving in managerial positions for various firms in Turkey, he joined Vestel in 1988. Having held various managerial positions at Vestel since 1988, he served as the President of Vestel Dış Ticaret AŞ and a member of the Executive Committee of Vestel Elektronik until 2013. Turan Erdoğan was appointed as the Chairman of the Executive Committee of the Vestel Group of Companies on 1 January 2013. Mr. Erdoğan served as the President of TURKTRADE (Turkish Foreign Trade Association) for two periods between 2002 and 2006 before being the first Turkish citizen to be appointed as a Board Member of Europe’s largest ICT Confederation, DIGITALEUROPE, a position which he held between 2010 and 2014.

Bekir Cem Köksal

Executive Committee Member

(1967 - Ankara) Bekir Cem Köksal graduated from the Department of Mechanical Engineering at Boğaziçi University in 1988, and completed his master’s degree at Bilkent University in 1990. He subsequently worked in the banking industry between 1990 and 2001. In 1997, he was appointed as the Assistant General Manager of Denizbank and he joined Vestel as a Chief Financial Officer in 2002. Mr. Köksal currently serves as an Executive Board Member in charge of Finance.

İhsaner Alkım

Executive Committee Member

(1954 - Kırcaali) İhsaner Alkım graduated from the Department of Electronics and Communications Engineering at the Istanbul Technical University in 1977. After assuming various positions in the communications and electronics sectors, he joined the Vestel family in 1988. Mr. Alkım has served in various R&D related positions in Vestel, except for a break which he took between 1998 and 2002. In 2005, Mr. Alkım was appointed as a Member of the Executive Committee and continues to hold this position as the Member in charge of Electronics Operations.

Necmi Kavuşturan

Executive Committee Member

(1956 - Gaziantep) Necmi Kavuşturan graduated from the Faculty of Political Sciences at Ankara University in 1979. After serving in various positions in the banking sector, he was appointed as the Assistant General Manager in the Denizbank Management Services Group in 1997. Mr. Kavuşturan was appointed as the Human Resources Coordinator of Zorlu Holding in 2003. He has been a Member of the Executive Committee responsible for Human Resources at Vestel Group since 2005.

Özer Ekmekçiler

Executive Committee Member

(1957 - İzmir) Özer Ekmekçiler graduated from the Department of Industrial Engineering at the Middle East Technical University. After serving in senior executive positions in a number of sectors, he was appointed as the General Manager of Vestelkom AŞ in 2000. In 2005, Mr. Ekmekçiler was appointed as a Member of the Executive Committee. Mr. Ekmekçiler continues to hold this position as the member in charge of the Digital Products.

Nedim Sezer

Executive Committee Member

(1958 - Tekirdağ) Mr. Sezer graduated from the Department of Mechanical Engineering at the Istanbul Technical University in 1982. He completed a master’s degree in the Institute of Business and Economics at Istanbul University in 1990. After serving in various Turkish companies, he was appointed as the Plant Manager at Vestel Beyaz Eşya’s Washing Machine Factory in 1998. Since 2012, he has been serving as the General Manager of Vestel Beyaz Eşya in addition to serving as a Member of the Executive Committee of the Vestel Group of Companies.

Ahmet Süha Erol

Executive Committee Member

(1957 - İzmir) Ahmet Süha Erol graduated from the Department of Electrical Engineering at the Middle East Technical University in 1979. He worked as a Foreign Trade Executive in various companies in Algeria, the UK and Turkey before joining Vestel in 1998. Mr. Erol started his career at Vestel as a Procurement Manager between 1998 and 2000. He then continued serving as the Foreign Trade Assistant General Manager between 2000 and 2006 and as the General Manager at Vestel Dış Ticaret AŞ between 2006 and 2013. He was appointed as the Executive Committee Member in charge of Foreign Trade at the Vestel Group of Companies on 1 January 2013 and has been serving in this position since then.

INTRODUCTION 35 VESTEL ELEKTRONİK 2014 ANNUAL REPORT

(38)

VESTEL IN BRIEF

23

23 companies, 17 o

f

which are loca

ted

abroad

16,000

Employing nearly

16,000 people

VESTEL ELEKTRONİK 2014 ANNUAL REPORT

Figure

Updating...

References

Updating...

Related subjects :