In 2016, OYAK generated USD 1.4 billion in distributable resources and provided 19.1% return on the savings of its members. The Group also paid a total of USD 764.4 million in compulsory (legal) benefits.

 

Esteemed members, business partners, and dear employees,

2016 was a difficult year marked by uncertainty and sharp fluctuations in world markets, a global economic slowdown and political developments in Turkey.

The Turkish economy was also affected by the fluctuations in global markets. It began to slow due to a series of terrorist attacks, the crisis with Russia, political tensions in the Middle East and the state of emergency declared in the wake of the treacherous coup attempt on July 15. Nevertheless, Turkey’s economy grew 2.9% in 2016.

Boasting a history spanning 56 years, robust financial structure and a well-balanced portfolio, OYAK is one of the strongest conglomerates in Turkey.

Following the change in management that took place in May, we initiated a restructuring effort. The aim was to build a more efficient and functional organizational structure that can meet the management needs of the Group in the future. We replaced senior management at some of our companies and undertook efforts to further reinforce internal communications. In addition, we adopted a more effective savings approach in all management functions to ensure a more secure future for OYAK members. In light of these developments in 2016, OYAK executed its operations in a conservative manner and continued to create added value for the Turkish economy – proving once again that it is one of Turkey’s most powerful and reliable corporations.

Offering a unique, successful occupational pension scheme based on mandatory savings in Turkey, OYAK plays an important role in the country’s development with the significant added value and employment opportunities created by Group companies. In recent years, OYAK has evaluated overseas investment opportunities and ventured into international markets. Currently, the Group has 86 companies operating in 20 countries, including Turkey.

OYAK Group companies provide employment to some 30 thousand people in Turkey; in 2016, the Group companies paid USD 1,561 million in direct and indirect taxes. OYAK Group companies support the Turkish economy with their operations in the manufacturing, service and financial services industries. Meanwhile, OYAK significantly contributes to the improvement of Turkish society with its environmental, educational and art initiatives in line with the Group’s sustainability strategy.

For 22 years, OYAK has consistently delivered returns to its members that outpace the inflation rate.

As of year-end 2016, the number of OYAK members climbed to 305,728. In line with its goal of achieving a sustainable financial performance, OYAK has consistently delivered returns that outpace the inflation rate for 22 years, ensuring a secure future for its members. Some 78.1% of OYAK members are actively working while 21.9% are covered by the OYAK Pension Benefit System.

As a result of its operations in 2016, OYAK’s consolidated net assets amounted to USD 18.3 billion, consolidated assets (members’ savings) totaled USD 7.2 billion, and consolidated revenue climbed to USD 8.5 billion. In 2016, OYAK generated USD 1.4 billion in distributable resources and provided 19.1% return on the savings of its members.

Compulsory (legal) benefits paid to OYAK members rose 23% over the previous year to USD 764.4 million in 2016. Retirement benefit payments account for the biggest share in compulsory (legal) benefit payments at 68.6%. In 2016, OYAK paid a total of USD 524.1 million to 9,000 members, who became entitled to receive retirement benefits and exited the system.

In addition to compulsory (legal) benefits, OYAK supports its members by offering social services such as personal loans and housing financing to meet their needs. Social service payments made by OYAK in 2016 amounted to USD 163 million.

In the past 53 years, OYAK has made more than 100,000 members homeowners by either offering them housing finance or via residential development projects.

Under the new management, OYAK will increasingly contribute to the Turkish economy and society in 2017.

I am confident that the new management team will build upon the achievements of OYAK Group. With a well-established operating history spanning 56 years, the Group will continue contributing to the Turkish economy and society. I would like to take this opportunity to thank our members for their unwavering trust; our employees who contribute to OYAK’s success with their perseverance and meticulous efforts; all of our distinguished directors who have served on our statutory boards; all former and current managers and employees of OYAK Group companies for their selfless efforts and contributions; and our esteemed business partners, personally and on behalf of OYAK Board of Directors.

Respectfully yours,

 

Mehmet TAŞ
Major General (R)
Chairman of the Board of Directors