Corporate Overview 2015 - Arçelik A.Ş. · PDF fileCorporate Overview 2015 . Table of Contents ... Milestones 1955 The Company was established in Sütlüce, ... The business...

Corporate Overview

2015

Table of Contents

Koç Group

Arçelik A.Ş.

• At a Glance

• Financial Results

• Brands, Global Network, Market Position

• Technology and Innovation

• Awards and Achievements

• Corporate Social Responsibility

2

Koç Group

Founded in 1926 Koç Group TURKEY’S LEADING INVESTMENT HOLDING COMPANY

o The only Turkish company in Fortune’s Top 500 Global Company List ranked 341th

o 2014 consolidated revenues: USD 31,3 billion ( 68,6 billion TL)

o 2015 1Q consolidated revenues: USD 5,6 billion (13,8 billion TL)

o Total combined revenues that make up about 8% of Turkey’s GDP (As of 2013 year-end)

o Exports that make up 10 % of Turkey’s total exports (As of 2013 year-end)

o Total share in BIST Market Capitalization is 17% (As of 2014 year end)

o The Group consists of over 100 companies in 33 countries

o Over 80.000 employees worldwide

o Over 11.000 dealers and after-sales services, 978 bank branches in Turkey

o 10% of private sector R&D investments

o According to Turkish Patent Institute’s 2013 Turkey’s Patent Applications ranking 4 of the top ten

companies are Koç Group companies

o The Top Turkish company in EU Industrial R&D Investment Scoreboard ranked 614th place. 4

Leading positions with strong competitive advantages in several business segments

Koç Group

Consumer Durables

Arçelik A.Ş.

Arçelik LG

International Alliance:

LG Electronics

Energy

Tüpraş, Opet, Aygaz,

Entek, Aygaz Doğal Gaz,

Akpa, Demir Export

Other Sectors Food, DIY Retailing,

Tourism, Marinas, IT,

Ship & Yacht

Construction

Finance

Yapı Kredi Bank and

subsidiaries

Koç Finans

International Alliance:

Unicredit

Automotive Tofaş, Ford Otosan, Türk

Traktör, Otokar, Otokoç

Otomotiv

International Alliances:

Ford Motor Co, Fiat Auto

S.p.A, Case New Holland 5

Arçelik A.Ş.

Production, marketing and after-sales services of

consumer durable goods,

consumer electronics and components

25,000 employees

Consolidated net sales

2015 1Q: 2,867 million TL

(1,035 million EUR / 1,166 million USD)

2014 : 4,307 million EUR / 12,514 million TL

10 brands

A sales and marketing organization operating in 26 countries

15 production plants in 6 countries*

(China, Romania, Russia, South Africa and Turkey)

Products and services in more than 130 countries

* Company broke ground its Tailand Refrigerator Factory in Jan 2015.

Since 1955, more than half a century of experience

Arçelik A.Ş.

7

Vision

8

Milestones

1955 The Company was established in Sütlüce, İstanbul.

1959 The first washing machine is produced in Turkey.

1960 The first refrigerator is produced in Turkey.

1975 Refrigerator Plant started production.

1977 Compressor Plant started production.

1991 Establishment of R&D Centre and Consumer

Information Service.

1993 Arçelik Dishwasher Plant started production.

1999 Cooking Appliances Plant started production.

2000 Arçelik A.Ş. won the EFQM Prize for Quality Success.

Arçelik-LG Air Conditioning Industry and Trade Inc. started production.

2001 Marketing and sales operations of Beko branded products started to run

by Arçelik Company.

9

Milestones 2002 Blomberg, a German household appliances company was acquired,

followed by the acquisition of Elektra Bregenz, an Austrian household appliances

company, and its brand Elektra Bregenz.

Leisure and Flavel, was acquired as white goods brands of the UK.

Arctic, a refrigeration company in Romania was acquired.

Beko became the leading brand in UK’s refrigerator market.

Launch of the new Arçelik logo, reflecting the

innovative and dynamic structure.

2005 Arçelik Company celebrated its 50th anniversary.

Foundations were laid for the production plant in

Moscow, Russia.

The Chest Freezer production line became operational in Arctic Plant, Romania.

Tumble dryer production started in Çayırova Washing Machine Plant

and to increase the production capacity additional investment decision

was made to built a new dryer plant.

10

Milestones

2006 Beko LLC Washing Machine and Refrigerator

plant started to operate.

Company became the biggest shareholder

of Beko Elektronik A.Ş., the consumer

electronics company.

Exported Beko branded dishwashers

and washing machines to China.

Beko brand became the sponsor of

the Turkish Basketball League.

2007 SBS (Side by side) Refrigerator with

Active Fresh Blue technology was launched.

Beko Elektronik A.Ş. became the owner of the

Grundig Multimedia Company and Grundig brand.

One Touch Dishwasher was launched.

Beko Electrical Appliances Washing Machine

Production Plant in China started operation. 11

Milestones

2008 Turkey’s first Tumble Dryer Plant started to operate in Istanbul.

Divide and Cool (DAC): Divisible cooling technology was

introduced.

Beko Elektronik A.Ş. changed its trade name to Grundig

Elektronik A.Ş.

The business partnership with Sony to manufacture of

Sony LCD TV at Grundig Elektronik A.Ş.

2009 Arçelik A.Ş. merged with Grundig Elektronik A.Ş.,

a subsidiary in which the Company holds the

majority of shares.

Eco panel LCD TV consumes 45% less electricity

was produced.

The first 4 door refrigerator produced in Turkey.

With its A-30% energy performance, the world’s least energy

consuming washing machine was produced.

12

Milestones

2009 The world’s most quiet, the fastest and least water

consuming dishwasher was launched.

Launch of the new vision

2010 Arçelik launches its new washing machine, 8124 HST

Economist, which consumes 50% less power than A

energy class.

Arctic celebrates its 40th anniversary.

The first 3D LED TV is produced in Turkey.

“World’s most economical dishwasher” A-30%

62107 HIT Economist is introduced to consumers.

Arçelik opens its first “Concept” store in Turkey.

World’s first A+++ No Frost refrigerator consuming

the least electrical energy in its own class is produced. 13

2011 Arçelik Group acquired Defy Appliances

(Proprietary) Limited (“Defy”), the leading

home appliances manufacturer in Southern Africa

Milestones

2012 Arçelik Group expanded its global network

establishing new sales and marketing

offices and companies:

- Eygpt, Beko LLC Eygpt

- Ukraine, Beko Ukraine

- Australia, Beko A and NZ Pty Ltd.

- Taiwan, Ardutch B.V.

2013 Arctic, the leading white goods brand of Arçelik A.Ş.

opened a new refrigerator production line at Gaesti

Plant.

14

2014 Beko introduced its products to Thailand market.

Beko launched its new logo.

Beko and FC Barcelona entered into a four-year

partnership. The new logo of Beko is affixed on

the new team jersey.

Defy, opened a new side by side refrigerator

line in East London Plant.

Arçelik A.Ş. became one of the 15 companies

listed under Borsa Istanbul -BIST Sustainability

Index.

2015 Arçelik A.Ş. broke ground of its

Tailand Refrigerator Plant.

Arçelik Company celebrates its 60th. anniversary.

Milestones

Brands

Global Network

Market Position

The leading brand in Turkish household appliances industry.

One of the leader brands in Turkey and a global brand preferred in

more than 100 countries.

A brand of household appliances, combining aesthetic design

and technological with environment friendly features.

A strong, prestigious brand of household appliances in Austria.

The leading brand in the Romanian household appliances market.

The traditional brand for solo cooking appliances in the UK.

One of the strongest household appliances brand in the UK and Ireland.

The household appliance and television brand of price conscious

consumers.

A well known brand in Turkish and Western European market with

wide range of product portfolio of consumer electronics and personal care appliances.

Brands

The leading home appliances brand in Southern Africa.

17

Product Range

Built-in &

Freestanding Appliances

Refrigerators

Freezers

Washing Machines

Dryers

Dishwashers

Ovens

Hobs

Hoods

Warming Drawers

Microwave Oven

Water Dispensers &

Water Filtration

Small Household

Appliances

Vacuum Cleaners

Kitchen Appliances

Personal Care

Garment Care

Fans

Steam Cleaners

Consumer Electronics

TVs

Home theatre systems

Hi-Fi Systems

Portable audiosystems

Dect phones

Mobile Phones

Notebooks & Desktop PCs

POS Cash Register

Heating-Ventilation- AC

Air Conditioners

Combi Boilers

Water Heaters

Room Heaters

Components

Hermetic Compressors

Industrial Motors

Appliances Motor-pumps

+ Ready-made Kitchen 18

Global Network

19

HQ (Turkey/Istanbul)

Production Plants

International Sales & Marketing

Global Network Headquarters

Turkey/İstanbul

Production Plants-Turkey

Refrigerator Plant Eskişehir

Washing Machine Plant İstanbul, Tuzla

Electronics Plant İstanbul, Beylikdüzü

Cooking Appliances Plant Bolu

Dishwasher Plant Ankara

Electric Motors Plant Tekirdağ, Çerkezköy

Compressor Plant Eskişehir

Tumble Dryer Plant Tekirdağ, Çerkezköy

Production Plants-International

Refrigerator Plant Romania , Gaeşti

Refrigerator and Washing Machine Plant Russia,Kirzhach

Washing Machine Plant China , Changzhou

Cooking Appliances and Tumble Dryer Plant South Africa, Jacobs

Cooling Appliances Plant South Africa,

Ezakheni, Ladysmith

Refrigerator Plant South Africa,

East London

International Sales and Marketing

Ardutch B.V. Taiwan Taiwan

Beko A and NZ Pty Ltd. Australia, New Zealand

Beko Deutschland GmbH Germany

Beko Egypt Trading LLC Egypt

Beko Electronics España S.L. Spain

Beko France S.A.S. France

Beko Italy SRL Italy

Beko LLC. Russia

Beko Plc. UK, Rebublic of Ireland

Beko Slovakia S.R.O. Slovakia

Beko S.A. Poland, Czech Republic

Beko Shanghai Trading

Company Ltd. China

Beko Ukraine LLC. Ukraine

Changzhou Beko Electrical

Appliances Co. Ltd. China

Defy Appliances Ltd. Republic of South Africa

Defy (Botswana)(Proprietary )Ltd. Botswana

Defy (Namibia)(Proprietary) Ltd. Namibia

Elektra Bregenz AG Austria

Grundig Multimedia A.G. Switzerland

Grundig Intermedia GmbH Germany, Croatia

Grundig Nordic No AS Norway

Grundig Nordic AB. Sweden

SC Arctic SA Romania

Beko Hong Kong Ltd. Hong Kong, China

20 Beko Thai Co., Ltd. (Rayong Tayland) founded as a production, sales and marketing company in December

2014 and planned to start production by the end of 2015.

Arçelik A.Ş. is the third largest company in white goods industry in Europe.

Arçelik A.Ş. is the undisputed leader of home appliances sector in Turkey,

in Romania with Arctic brand and in South Africa with Defy brand.

Consolidated Sales Revenue: EUR 4,3 billion

61% of turnover from international sales

Strong Growth in Global Marketplace

Arçelik is the market leader

in Turkey Beko, the market

leader in UK

Beko is one of the top 3 brands in France

Romania: Market leader

via Arctic brand

• The 2nd largest home appliances brand in

Europe,

• The leader brand in white goods market in UK,

• The leader brand in total freestanding home

appliances market in Poland and France,

• The leader brand refrigerator and deep freezer

product segments in Belgium,

• The leader brand in deep freezer in Spain and

Israil,

• The 2nd brand in refrigerator, deep freezer and

dryer product segments in France,

• Increased its marketshare more than twice and

became the market’s fastest growing brand in

Germany,

Beko; International Home Appliances Brand

Technology and Innovation

R&D - Innovative Technology

The only Turkish company among the

top 1.000 allocating resources to R&D,

according to a European Commission.

Preserving the technologies and

products with patents.

Continuous cooperation with national

and international firms.

Globally recognized and awarded

designs and products

Ease of Use (intelligent, silent,

easy to use)

Environment friendly

Innovative & Efficient

Comply with future

standards

Technology & Products With Energy Efficient

Efficient Resource Usage

Target :

Blomberg CT 1300 A awarded with EU Commissions' u Energy + Award and REC Turkey EU Award for Environment

The patent leader in Turkey,

developing its own technology without using licences.

24

PCT: Patent Corporation Treaty WIPO: World Intellectual Property Organization

Intellectual Property Management Arçelik A.Ş.,

• Turkey’s Patent Champion

• The only Turkish company listed in the “Top 500 Companies” issued

by World Intellectual Property Organization(WIPO) for 5 years, as

being the only Turkish company listed in top 200 of this list

• Has one third of the international patent applications to WIPO

• According to 2011 and 2012 of European Patent Office (EPO) Annual

Reports, half of the Turkish patent applications registered by EPO

belong to Arçelik A.Ş.

25

Innovative Products

IonFresh Technology

A+++

Dishwasher

Side by Side

Refrigerator

A++ Washing Machine

Invertor Motor

Technology

Dryer 54 wide, A++

Innovative Products

65’’ -55’’ Finearts TV

Built-In -Oven

90cm Induction Built-In Cooker

Eco-Friendly Products Tumble Dryer

A+++ - 10%

28

A+++ -50%

Washing Machine

Built-in oven

• A- 45%

• noise level of 41 dBA

A+ 3D Smart TV

No-Frost Combi Refrigerator

A+++ - 30%

“Our priority is the production of goods in a manner that respects

both human life and the environment.”

29

Environment

• Arçelik A.Ş. adopts “Sustainable Development” and principle of environmental protection as a requirement of the Total Quality Management approach.

• Within the context of this approach, Arçelik A.Ş. applies environment-friendly processes and manufactures environment-friendly products.

• Arçelik A.Ş. evaluates and monitors its compliance with environment and health & safety oriented national and international legal requirements.

• In this context, Arçelik A.Ş. closely monitors the developments in the industry and complies to the directives and regulations in Europe;

– WEEE - Waste of Electrical and Electronic Equipment,

– RoHS - Restriction of the Use of Certain Hazardous Substances,

– EuP - Eco Design Requirements for Energy Using Products Directives,

– REACH Regulation- Registration, Evaluation and Authorization of Chemicals.

• In an effort to increase the awareness and sensitivity for environmental issues, trainings are organized for employees.

30

• Arçelik A.Ş. is the first and only company to receive Gold certificate in the

global white goods sector with its 8 production facilities in Turkey in 2010.

• Refrigerator, Washing Machine, Cooking Appliances and Compressor Plants in

Turkey reached “Platinum Award” in 2011. In 2012,The Washing Mashine Plant in

China and in 2013, Dishwasher, Tumble Dryer, Electric Motors Plants in Turkey and

Arctic Cooling Appliances Plant in Romania, also reached Platinum Level.

Energy Efficiency in Production

31

Energy Management

Arçelik A.Ş. and its employees comply with all applicable

national and international energy-related laws and

regulations, continue its activities in line with energy

management system based on continuous improvement

by procuring essential sources.

Our approach;

• use energy and natural resources efficiently for the products and the activities

• prefer energy efficient technologies and applications for the production and the activities

• be a model to industry as ‘the most efficient products’ manufacturer

• prefer products and services that were generated in energy efficiency manner for the

production and the activities

• raise awareness of our employees and the society about energy efficiency and use of

natural sources accompanying the Quality, Environmental, Health and Safety Management

Systems and we strive to set a model in durable goods sector with regard to environmental

efforts.

32

33

Business Excellence • Arçelik A.Ş. pursues excellence in all processes leading to the final

product, implementing an efficient Total Quality Management.

• Total Quality Management activities in Arçelik began in the early

1980s with the implementation of Quality Circles and these

activities have been developed with the following applications:

-EFQM Excellence Model

-ISO 9001 Quality Management System

-ISO 14001 Environmental Management System

-ISO 50001 Energy Management System

-ISO 14064-1 Greenhouse Gas Reporting System

-ISO 10002 Customer Satisfaction Management System

-ISO 27001 Information Security Management System

-OHSAS 18001 Occupational Health and Safety Management Sys.

-ISO 17025 Laboratory Management System

-Six Sigma (Process Improvement)

-Total Productive Maintenance (TPM)

-BSCI and Sedex Social Accountability Systems

-AEO Authorized Economic Operator Status

• Compliance with Management System Standards is being

assessed and developed through periodical internal and external

audits.

34

Business Excellence

• Arçelik A.Ş. uses the Six Sigma Methodology in order to reach excellence by increasing productivity across all of its business processes to stay competitive in international markets.

• By implementing the Six Sigma Methodology, Arçelik A.Ş. aims to :

-improve processes,

-make the processes transparent manageable,

-create decision making mechanism based on data,

-develop a platform to continuous growth in profitability,

-harmonize its organizational targets and process objectives,

-maintain customer focus

-create a common language and improve creativity.

Occupational Health and Safety

Arçelik A.Ş. performs its Occupational Health and Safety activities by;

• Removing the hazards arising by the activities or minimizing the Occupational Health and Safety related risks to the minimum level at source by using a proactive approach,

• Using the appropriate, safe and healthy technologies,

• Developing the awareness in Occupational Health and Safety issues among the employees and helping them to adopt the appropriate behaviours in order to prevent work accidents and work related diseases within the frame work of Arçelik A.Ş. Occupational Health and Safety Management System.

35

Awards & Achievements

2014 • Arçelik A.Ş. received a total of seven awards including three first place awards and four

second place awards in "IMMIB Stars of Export 2013" awards.

• Arctic Romania Refrigerator Plant received the “TPM Special Award”.

• Solidarity Cooking Marathon Project carried out by Beko in Spain received three awards

in “Global Mercury Excellence Awards”, one of the most famous corporate communications

awards of the world.

• Seven different products of Arçelik A.Ş. were given awards within the scope of “IF

Design”, one of the most prestigious design awards of the world.

• Arçelik A.Ş. entitled to "Authorized Economic Operator Certificate" by The Ministry of

Customs and Trade.

• Arçelik A.Ş. is entitled to “CIPS Corporate Certification”, which is a global accreditation

issued to around 130 companies globally in order to ensure excellence in purchase

management.

• Arçelik A.Ş. became one of the 15 companies listed under "BIST Sustainability Index", which

is based on environmental, social and corporate governance performances of companies.

• Arçelik is selected as "The Most Popular Brand" in both white goods and consumer

electronics fields and a category-independent survey, which is conducted for the first time,

within the scope of "Turkey's Lovemarks" research.

• 13 products of Arçelik A.Ş. are entitled to awards within the scope of "Good Design Awards"

presented by Chicago Athenaeum Museum of Architecture and Design and Metropolitan Arts

Press Ltd. Museum.

• Arçelik A.Ş. is given “R&D Leadership” and “Leadership in Technology Development” awards

within the scope of the Third Turkey Innovation Week organized by Turkish Exporters'

Association.

• Arçelik A.Ş. became the winner in “Innovation Strategy” category of InovaLIG Innovation

Leaders Awards within the scope of Turkey Innovation Week.

• 2013 Sustainability Report of Arçelik A.Ş. is issued in accordance with the new G4 reporting

guidelines of GRI - Global Reporting Initiative.

2014

Corporate Social

Responsibility

Corporate Social Responsibility

At Arçelik Company, we perceive Corporate Social Responsibility as integral part of our business.

Our “Corporate Social Responsibility” approach comprises ‘conforming to legal, moral standards and human rights, being diligent to environment and to the needs of the community everywhere we operate, our commitment to sustainable development, along with providing the most qualified and innovative products and services to our customers’.

Our greatest strength is our employees and partners, which see themselves as being Corporate Citizens, and are committed to dedicate their effort, energy and time voluntarily to contribute to the community.

40

• Arçelik A.Ş. conducts fact finding surveys and prepares reports to meet the requirements of the Global Compact principles and SA 8000 (Social Accountability) Standards.

• Arçelik A.Ş. was among the first signatories of the Code of Conduct issued by CECED.

– This treatise ensures that the companies demonstrate a sustainable performance in meeting the requirements of international conventions on working conditions and those regarding the environmental laws and regulations.

• Arçelik A.Ş. published the 6th Sustainability Report covering the Company’s operations in the light of economic, social and environmental performance. Report’s “B+” application level has been checked and approved by the GRI Secretariat.

Corporate Social Responsibility

41

White Fish Playrooms

Standing United for Education social responsibility program

reached 300 schools in 60 cities, 200.000 students .

Donating Blood

for My Country

Vocational Education Laboratory of Arçelik A.Ş. World Environment Day Event

Corporate Social Responsibility

42

No Barriers for My Country Project

Seminars on the Right Approach Towards the Disabled

Arçelik A.Ş. Employees Read Books to the Visually Disabled

Support for International Mandela Day - Turkey

Corporate Social Responsibility

43

We Give More Life to Your Clothes - Spain Ethelbert Children's Home –

Defy - South Africa

Support from the CHOC

home- Defy – South Africa

Beko REFRESH -

Slovenia

10 Years, 10 Cities, 10 Schools Project

- Bosnia

Association for Needy Children,

Projuventüte - Austria

Ecology from A to Z with Arctic - Romania

Beko Planting Trees Campaign - China

Support for the Krymsk Flooding in Krasnodar - Russia

Orphaned Children Attend the Tabaluga Theater, Munich, Germany

Corporate Social Responsibility

44

Raising Public Awareness on Environment

Environment Friendly Projects :

• TEMA - “Oak Campaign”

• TEMA - “Don’t waste your water” campaign

• En-Ver “Energy Efficiency ” Project

• En-Ver “Motor Movement ” Project

“For My Country Project” of Koç Group,

voluntary team comprising Arçelik A.Ş. employees, authorized

dealers and services organized environmental trainings for

the children in 80 Turkish cities.

In addition to developing environment-friendly products,

Arçelik A.Ş. believes its social responsibility to support

activities raising the public awareness about

environmental issues.

45

Raising Public Awareness on Environment • Arçelik takes a leading role to

increase public awareness regarding

sustainability and climate change.

• To be a spokesman for Turkey

Climate Change Leaders Group

• Signed the 2 Degree Challange

Comminuque.

• Attended the World Climate Summit

held in Durban, Africa.

• Attended the UN Conference on

Sustainable Development in Rio,

South America.

• Attended the World Climate Summit

held in Doha, Qatar.

46

Sports Beko-Basketball Event Sponsorships

*the biggest sponsor of the tournament

(*)Presenting Sponsor of

2014 FIBA World Basketball Cup in Spain

2013 Euro Basket European

Basketball Championship in Slovenia

2011 Euro Basket European

Basketball Championship in Lithuania

2010 FIBA World Basketball Cup in Turkey

Main Sponsor of

2009 EuroBasket in Poland)

2009 FIBA Asian Championship Sponsor in China

47

Sports

German Basketball League

Lithuanian Basketball League

Italian Basketball League

Beko-Basketball League Sponsorships

Beko – FC Barcelona Partnership

49

Sports

Sports

Grundig - Official Technology

Sponsor of German Football

League

Beko has become the sponsor of

FA Cup in UK in 2012

50

Beko - Beşiktaş Football Team

Beko has been the sponsor of

Classic Golf Cup

Sponsorships

Thank you

www.arcelikas.com