As Turkey’s unique, successful complementary occupational pension fund, OYAK plays an important role in the development of Turkey with the added value and employment opportunities it has created through investments over the years. OYAK Group companies have become global players with their manufacturing output and export sales as well as with their successful financial performance. The direct and indirect taxes paid by OYAK Group companies in 2016 accounted for 1.03% (USD 1,561 million) of total taxes paid in Turkey.


Valued members, dear employees, and esteemed business partners:

In 2016, world markets focused their attention on the Federal Reserve’s interest rate policy, the European Central Bank’s asset-purchase program and faltering global economic activity. Meanwhile, the US presidential election and Brexit (Britain’s decision to leave the EU) dominated the political agenda.

Turkey was also affected by these global developments as well as heightened geopolitical risks in our region, terrorist attacks, and the adverse conditions created by the treacherous coup attempt on July 15. The USD/ TRY exchanged rate climbed to record highs after the declaration of the State of Emergency in the aftermath of the failed coup, as international credit rating agencies downgraded Turkey’s sovereign ratings, and amid discussions over the constitutional reform referendum. Despite this unfavorable environment, Turkey’s economy grew 2.9% in 2016.

As we continued to create value for the Turkish economy, we provided high returns, well above the CPI, on members’ savings.

2016 was a very successful year for OYAK. Our total consolidated assets climbed to USD 18.3 billion, consolidated net assets amounted to USD 7.2 billion, and total distributable resources – or rate of return as we call it – totaled USD 1.4 billion. As in previous years, OYAK achieved a high return rate of 19.1%, well above the CPI, on members’ savings in 2016.

Contributing to the Turkish economy at an ever-increasing pace each year, OYAK is a large-scale fund management company that invests members’ savings in the most efficient and profitable manner. OYAK, a giant group composed of enterprises that operate in 20 countries, grows steadily every year. In 2016, OYAK Group’s consolidated revenue totaled USD 8.5 billion and operating profit climbed to USD 1.6 billion.

OYAK Group companies not only rank among the tax champions in their respective industries and cities with their successful financial performance, they have also become global players with their manufacturing output and export sales. In 2016, OYAK Group paid a total of USD 1.6 billion in taxes, while the Group’s total exports amounted to USD 3.5 billion.

OYAK’s energy and drive – further refreshed with the new management team – will help the Group move forward into the future.

In 2016, OYAK underwent a change in management for the first time in 16 years, marking a major milestone for the Group. After we took the helm in May, we initiated reorganization at OYAK Head Office and Group companies in accordance with best practices. To this end, we separated and restructured the management teams of our automotive, cement and concrete companies, which were previously operating under the same roof, on a sector basis in order to manage them more effectively in line with current business requirements and market conditions. We plan to further build upon OYAK’s achievements to date with a forward-looking, dynamic management style and new initiatives.

OYAK Group companies have contributed to the Turkish economy through manufacturing and job creation for the past 56 years.

As in prior years, OYAK once again ranked among the top groups in Turkey in 2016. The Group’s total revenue, manufacturing output, export sales and contributions to employment in minerals-metallurgy, cement, concrete, automotive, logistics, energy, chemicals, financial services and other service industries lead the pack in Turkey. A strong corporate governance structure, synergy among Group companies, High quality professional workforce and merit-based corporate culture as well as a well-diversified portfolio have been the main drivers of success in the 56-year history of OYAK Group.

OYAK Mine Metallurgy Group, the leading iron & steel manufacturer in Turkey, has transformed Turkish steel into a global brand.

Having established a competitive advantage in international markets, OYAK Mine Metallurgy Group – Turkey’s first and largest integrated manufacturer of iron and steel – recorded a capacity utilization rate much higher than the global steel industry average, producing 9.4 million tons of liquid steel in 2016. The Group’s sales revenue totaled USD 3.8 billion in 2016 while it continued to contribute to Turkey’s total exports with its export sales to 45 countries. We are very pleased to see that OYAK Mine Metallurgy Group is transforming Turkish steel into a global brand by implementing high quality standards and innovative practices.

OYAK Cement-Concrete Group takes part in large-scale infrastructure projects in Turkey.

In 2016, the Turkish cement industry expanded 5% while OYAK Cement-Concrete Group maintained its leadership position with 15.3% market share. We are making solid progress toward our goal of becoming not only a regional power but also a global player.

I believe that the restructuring process at OYAK Cement-Concrete Group will further improve the Group’s customer and market oriented approach and will be key to unleashing additional growth.

OYAK also leads the way in the Turkish automotive industry with its innovative practices.

The automotive industry – the major driver of Turkey’s exports – is very important for OYAK Group. We are proud to lead the way in the automotive sector with our manufacturing company OYAK Renault; sales and marketing company MAİS, which underwent a management restructuring in 2016; and auto finance company ORFİN. In 2016, OYAK Renault became the leading passenger car manufacturer and the third largest exporter in country’s total exports in Turkey with its export sales to more than 80 countries on five continents.

Additionally, the Automotive Journalists Association named Renault Megane Sedan the “Car of the Year” at Turkey’s Car of the Year Competition 2017, which was held for the second time.

OYAK Chemistry Group competes in the global marketplace.

The smart investments we have made in the chemistry industry in recent years have further bolstered the synergy among the Group companies. Our investment program also helped OYAK Group become the market leader of industrial chemicals, which we think will become a very important industry in future years. OYAK Chemistry Group – boasting 19 integrated plants on five continents and a worldwide distribution network – has become a global manufacturer and marketer of PVC stabilizers, refractors and specialty alumina, which are seen as high-demand products of the future.

OYAK Energy Group continues to provide power to Turkey with new investments.

The İSKEN thermal power plant, which is owned by OYAK Energy Group and has an installed capacity of 1,320 MW, generated 9,529 GWh of electricity in 2016 – single-handedly meeting 3.5% of Turkey’s energy demand. After the commissioning of AYAS thermal power plant, currently in the investment phase, total annual installed capacity will rise to 1,945 MW, and OYAK Energy Group will be able to contribute even more to meeting our country’s energy demand. We plan to continue our energy investments in the coming period.

OYAK Denizcilik ve Liman İşletmeleri A.Ş. is established.

In 2016, our subsidiary OYAK Denizcilik ve Liman İşletmeleri A.Ş. was established to manage the ports and port concessions owned by Group companies under one roof. This new entity will also build and operate ports, piers, loading and unloading facilities and carry out maritime transportation operations.

The superior performance of OYAK Group companies, which hold the top spots in industry rankings in Turkey and worldwide, is frequently recognized with awards.

Erdemir Group, operating under the OYAK Mine Metallurgy Group, placed 13th in the 2016 World-Class Steelmaker Rankings, a listing compiled by World Steel Dynamics, the world’s leading steel industry information service. In 2016, Erdemir Group ranked 12th on the list of the “500 Largest Private Companies in Turkey,” issued by Capital magazine; it also ranked fifth among the country’s most profitable companies. In addition, Erdemir, Turkey’s largest integrated manufacturer of steel, was named the leader of the metals industry at the Platin Global 100 Awards. Ersem, our other subsidiary under the Mine Metallurgy Group, received third prize for cold-rolled flat steel exports, granted by the Steel Exporters’ Association.

Besides creating value for our country’s economy, our industrial enterprises make a difference with their innovative products and energy efficiency projects, leading the way in their respective industries with their R&D efforts. For example, İsdemir was presented with first prize for its project titled “Power Generation Using Top Pressure Turbine for Blast Furnaces No. 3 and 4” at the Industrial Energy Efficiency Project Competition (SENVER) organized by the Ministry of Energy and Natural Resources. Chemson, which operates under our Chemistry Group, won the Gold award in the “Innovation” category with its project “PVC filament for 3D printing” – a first-of-its-kind product in the world – at the 2016 Inovyn Awards. Furthermore, Akdeniz Kimya won first prize for the “Highest Production” in the “Chemicals” category.

OYAK increasingly contributes to the environment and society through its sustainability strategy and best practices which are implemented by all Group companies.

OYAK Group has built a unique organizational sustainability structure that covers all Group companies by integrating sustainability into its business strategies. We also share our performance results with our stakeholders on an annual basis. In 2016, we received the “Green Era for Sustainability” award, granted by the Green Economy Forum, for our sustainability approach and successful practices that focus on the environmental, social and financial impact of our operations.

Providing an exemplary model for Turkey, OYAK is ready for new breakthroughs with its new management and dynamic structure.

The new energetic management team has the determination and ambition to move OYAK forward closer to its goals in a safe and swift manner. As in previous years, our primary goal will be to deliver consistent real returns on members’ savings and to further improve the services we offer to our members. To this end, we will continue to improve OYAK’s organizational structure in accordance with industry best practices, further diversify its portfolio and evaluate investment opportunities to minimize risks.

As the first and largest complementary occupational pension fund in Turkey, OYAK will continue to set an example for our country. Together with our colleagues, we will work hard to achieve this goal. I am confident that our strong organization will continue to move forward steadily in the coming period, as it has over the past 56 years.

I would like to thank the entire OYAK family, as together we will achieve new breakthroughs that will create value for our country with the strength we derive from the trust of OYAK members.

Respectfully yours,


Süleyman Savaş ERDEM