Çimsa cement industry and trade inc. january 1, 2010 …

ÇIMSA CEMENT INDUSTRY AND

TRADE INC.

JANUARY 1, 2010 – JUNE 30, 2010

ACTIVITY REPORT

Çimsa Cement Industry and Trade Inc.

Board of Directors Activity Report

Prepared in Accordance with Communiqué Serial: XI No:29

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A)

Partnership Title: Çimsa Cement Industry and Trade Inc. Report Period: 01.01.2010 -30.06.2010

Board of Directors

1. Mehmet GÖÇMEN Chairman

2. Mustafa Nedim BOZFAKIOĞLU Deputy Chairman

3. Mehmet Hayrettin ġENER Member (until June 1, 2010)

4. Yılmaz KÜLCÜ Member (until July 19, 2010)

5. Serra SABANCI Member

6. Levent DEMĠRAĞ Member (as of July 13, 2010)

7. Mahmut Volkan Kara Member (as of July 19, 2010)

There are no executive members on the Board of Directors.

The Board of Directors consists of five members chosen among shareholders according to the Company Core

Contract. There are no independent members among the members elected in the General Assembly.

Audit Board:

Ġlker YILDIRIM

Bahadır BORAN

Members of the Board of Directors:

Mehmet Göçmen Chairman

Born in 1957, Mehmet Göçmen completed his post graduate degree in Industrial Engineering and Operational

Research at Syracuse University in the U.S. after completing his BA Degree at ODTÜ Industrial Engineering

and High School education at Galatasaray High School. Göçmen began his career at Çelik Halat ve Tel San. A.ġ.

in 1983, and worked as Lafarge Ekmel Beton A.ġ. General Manager and Lafarge Turkey Business Development

and Foreign Relations Assistant Chairman between 1996 and 2002. He worked as General Manager at Akçansa

beginning in of June 2003, resigning from his position on 01.08.2008. He worked as Deputy Chairman of the

Board of Directors at Çimsa from 15.09.2004-09.09.2005. He was re-elected as a Board member on 02.05.2006

and undertook the Deputy Chairmanship until 20.07.2009. Göçmen is Chairman of the Board of Directors as of

this date.

Mustafa Nedim Bozfakıoğlu Deputy Chairman

Born in Tarsus in 1950, Nedim Bozfakıoğlu graduated from the Istanbul University, Faculty of Economics in

1972. He worked as Financing Manager and Financial Affairs Deputy Manager at Lassa and Kordsa. He then

worked as Budget, Accounting and Consolidation Department Head at H.Ö. Sabancı Holding. He currently

works as General Secretary at Hacı Ömer Sabancı Holding.

Yılmaz Külcü (until July 19, 2010)

Member

Born in Afyon in 1944, Yılmaz Külcü graduated from the Istanbul Technical University Faculty of Electrical

Engineering in 1966. Beginning his career as an Electrical Engineer at the TEK 9th Regional Directorate, Külcü

later worked as Afyon Cement Premises Manager, Söke Cement Industry Assistant Manager, Elazığ Cement

General Manager, Çorum Cement General Manager, Gaziantep Cement General Manager, Çitosan Electrical

Works Department Head, Çitosan Technical Assistant General Manager and Member of the Board of Directors

and Niğde Cement General Manager. Assigned to Çimsa Cement Industry and Trade Inc. on 01.04.1994, Mr.

Külçü continues his duty as a Member of the Board of Directors of Çimsa Cement Industry and Trade Inc.

Mehmet Hayrettin Şener (until June 1, 2010)

Member




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Mehmet Hayrettin ġener began his career as Shift Engineer between 1979 and 1981 at Çanakkale Cement

Industry and Trade Inc., and worked as Production Chief, Production Manager, Enterprises Group Manager and

Deputy General Manager at Akçimento respectively as of 1981. He worked at the Büyükçekmece Plant between

1996 and 1999, and the Çimsa Cement and Trade Inc. Kayseri Plant between 2004 and 2005 as Plant Manager. As General Manager at the OYSA Cement Industry and Trade Inc. until 31.10.2007, ġener was elected as a

Member of the Board of Directors of Çimsa Cement Industry and Trade Inc. as of 08.04.2007.

Serra SABANCI

Member

Born in 1975 in Adana, Serra Sabancı completed her undergraduate degree at the Portsmouth University and

Economy Department of Ġstanbul Bilgi University, from where she graduated ranking first in her class. Having

worked at Temsa, Serra Sabancı has also taken trainings on Company Acquisition and Board Memberships at the

Institute of Directors in London. Serra Sabancı currently works as a Board Member on the Board of Directors of

Sabancı Holding and various group companies, and as a member of the Board of Trustees at the Sabancı

Foundation. She was elected for membership of the Board of Directors of Çimsa Cement Industry and Trade Inc.

as of 18.12.2009.

Levent Demirağ (as of July 13, 2010)

Member

Born in Erzurum in 1959, Levent Demirağ graduated from the Ankara University Faculty of Political Sciences in

1980. He worked as an Account Specialist in the Ministry of Finance between 1980 and 1992. Undertaking

various responsibilities at Hacı Ömer Sabancı Inc. since 1994, Levent Demirağ currently works as Head of

Sabancı Holding Financial Affairs and Financing Department.

M. Volkan Kara (As of July 19, 2010)

Member

Born in Istanbul in 1973, Mahmut Volkan Kara graduated from Robert College and Istanbul Technical

University Machine Engineering department. Kara completed his post graduate studies, obtaining an MBA

degree from the North Carolina University Kenan-Flagler Business School in USA. He worked at Dell

Computers in Austin, Texas, A.T. Kearney in Chicago Illinois and SAB Miller in Milwaukee Wisconsin

respectively in the USA. Kara currently works as Corporate Strategy and Planning Director in Sabancı Holding

Strategy and Business Development Group Presidency.

B) Amendments Made to the Core Contract Within the Period and Their Reasons:

No amendments were made to the Core Contract within the first 6 months of 2010.

C) Industrial Developments and Main Factors Affecting the Industry:

The cement industry, which remained steady in 2009, is expected to grow 4-5% in 2010. Indicators of this

growth emerged in the first quarter of 2010 and the Turkish Cement Industry recorded a growth of 12% in this

period.

In 2009, due to the recession in demand in the internal market and as a result of intensive demand from abroad,

especially Iraq, Syria and Afghanistan, total cement and clinker export reached to 20 million tons. In 2010, the

market experienced a major growth in domestic sales due to the boom in domestic market. Domestic cement

sales increased by 14% according to the latest data for the first 4 months of 2010 declared by Turkish Cement

Manufacturers' Association declared at the end of April 2010. Total cement and clinker international sales also

increased by 5%.




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Regionally, a decrease of 7% was experienced in the Southeastern Anatolia Region due to downfalls in export in

cement production at the first 4 months of the year. Greatest increase in cement production was in Central

Anatolia region with 39%. While the Aegean (-2%) and Mediterranean (-8%) Regions shrank in domestic sales,

the Central Anatolian region grew 45%. There have been major increases in the Black Sea (64%) and

Mediterranean (33%) Regions in total clinker and cement export.

Considering the ongoing infrastructure investments and booming housing investments, the growth trend in

internal sales is expected to continue in the upcoming months.

D) Financial Resources of the Company and Risk Management Policies:

Financing of the company's investment and operating capital are supplied with short and medium-long term

export, Turkish Lira and foreign currency credits.

Defining and monitoring all possible risks that our company may encounter forms the basis of our risk

management policy. In parallel to the risk management and applications procedure implemented by one of our

partners, Hacı Ömer Sabancı Holding Inc. group companies, corporate risk management applications were

initiated. All risks that our company may encounter were classified according to their priority and are being

closely monitored by Company top management and the Board of Directors. In order to deal with all risks that

might directly affect Company’s financial status for all our facilities, the company was insured within the context

of global policies in accordance to the Sabancı Holding risk management policies.

Foreign exchange risks of the company that may arise from foreign currency credits are automatically disposed

of with export revenues, and appropriate financial instruments are evaluated separately. The Company began

using TL credits with the decrease in TL credit costs. Decreasing our financing costs was the aim of utilizing

short term TL credits from Eximbank.

E) Forecasts of Company Development:

As a member of Sabancı Cement Group, Çimsa enhances its strategic planning process with its scenario-based

approach. In the broadest sense, scenario-based strategic planning is defined as developing necessary strategic

options in order to be successful in possible future scenarios. Therefore Çimsa will determine the best strategic

approach for each scenario possible in the future instead of planning based on a single foreseen future, and this

provides flexibility to Çimsa in planning.

F) Quality and quantity of issued capital market instruments, if present

There are no issued capital market instruments.

G) Our Production Plants and Production Capacities:

Mersin Plant

First Facility Production Line

The rotary kiln in the plant which started production in 1975 consists of two pre-heater cyclone lines each of

which are four-staged. In 1983, coal grinding and combustion systems were added to the plant, leading to a

savings in fuel costs. 100% petroleum coke (with 4.5% sulphur) is burned in this kiln. In 2006, a waste

combustion unit was installed to bring additional income to the plant.

Second Facility Production Line

A second facility rotary kiln that can produce both grey and white cement according to needs began production

in December 1989. The facility consists of a raw material mill with crushers and pre-homogenization systems,

two raw material silos, a rotary kiln and clinker stock hall.




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Third Facility Production Line Another line which produces white cement was brought online in December 1999. The facility consists of a raw

material mill with crushers and pre-homogenization systems, two raw material silos, a rotary kiln and clinker

stock hall. The facility also has a white cement mill with a production capacity of 100 tons/hour. 100%

petroleum coke (with 4.5% sulphur) is burned in this kiln.

Calcium Aluminate Cement Production Plant This plant consists of a kiln with a production capacity of 2.3 tons/hour, a cement mill with a grinding capacity

of 5 tons/hour and a packaging unit. It was brought online in 2002. A second kiln with a clinker capacity of 2

tons/hour was put into production in 2007. In 2008, a bulk filling plant with a capacity of 50 tons/hour and

installation of a packaging machine with a capacity of 45 t/h were completed.

Paper Bag Plant

2,094,500 million paper bags were produced at the Paper Bag Plant located in Mersin Plant in the first quarter of

2010 and these paper bags were used at the Mersin, Kayseri, Niğde, EskiĢehir and Ankara Plants.

Kayseri Plant

The Çimsa Kayseri Plant was established in 1992 with a cement grinding and packaging capacity of 820,000

tons and was acquired by Çimsa in 1995. A pre-crusher system was built into the cement mill in 2005 in order to

increase cement grinding capacity and reduce energy consumption. The foundation of a clinker production line

was laid in order to transform the existing facility into an integrated cement plant. Clinker production at the plant

began at the end of December 2005 with the completion of building, installation and engagement works. Plant

capacity, which was 1,800 tons/day was increased to 2,175 tons/day as a result of the improvement works carried

out. The existing trass mill was transformed into a coal mill with a capacity of 20 tons/hour.

Eskişehir Plant

The EskiĢehir Cement Plant was brought into service in 1957 on the 22nd

kilometer of the EskiĢehir - Istanbul

highway on a plot of 1,800 acres. With its wet kiln 3.6 meters in diameter and 125 meters in length of German

MIAG technology and a capacity of 150,000 thousand tons/year, the plant continued production until 1987.

Its first line, still in existence today, was installed in 1976 with a three-staged pre-heater and a dry system kiln

3.6 meters in diameter and 52 meters in length with a capacity of 275,000 thousand tons/year. Also with MIAG

technology, the line’s total capacity has been increased to 425,000 thousand tons/year.

With the pressure of the rapid increase in energy prices in the 80's and the opportunities provided by industrial

technical advancements, in 1987 the dry system production line pre-heater was replaced with a four-staged pre-

heater with a precalcination feature and annual capacity was increased to 440,000 tons with improvements in

other units.

The production plant was acquired by Çimsa from SDIF on December 27, 2005. The plant reached a record level

of production with 486,000 tons of clinker produced in its first year under the umbrella of Çimsa.

The clinker production capacity of the Çimsa EskiĢehir Cement Plant, which was 480,000 tons in 2006, reached

1.4 million tons of clinker with the capacity increases made in the previous two years under Çimsa.

Niğde Plant

The Niğde Plant was established in 1957 under the name of Niğde Cement Industry. Its rotary kiln, with an

established capacity of 850 tons/day (265,000 tons/year) was put in service in 1976. After modernization in

1993, kiln capacity increased from 850 tons/day to 1,150 tons/day. Kiln capacity was increased to 1,240 tons/day

in 2008.

Ankara Cement Grinding and Packaging Facility

The Ankara Cement Grinding and Packaging Facility has a cement grinding capacity of 150,000 tons/year. The

facility was acquired by Çimsa within the framework of the sales conducted by SDIF. The plant’s capacity was

increased after it was acquired by Çimsa and a closed system ball mill of 85 tons/day and 700,000 tons/year

production capacity as well as a cement silo with a capacity of 5,000 tons were built.

Marmara Rota Port Cement Packaging Facility




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The plant was leased in June 2008. Çimsa super white cement is dispatched from the facilities in Mersin as bulk

and stored in a 5,000 ton horizontal silo.

Mersin Çimsa

1st Plant 3,380 grey clinker (Tons/Day) 2nd Plant 1,785 grey clinker (Tons/Day)

2nd Plant 1,450 white clinker (Tons/Day) 3rd Plant 1,750 white clinker (Tons/Day)

1st Isıdaç 55 ısıdaç clinker (Tons/Day)

1st Isıdaç 55 ısıdaç clinker (Tons/Day)

Kayseri Çimsa

Production Line 2,175 grey clinker

(Tons/Day)

Eskişehir Çimsa

1st Production Line 1,700 grey clinker (Tons/Day)

2nd Production Line 2,300 grey clinker

(Tons/Day)

Niğde Çimsa

Production Line 1,240 grey clinker

(Tons/Day)

Ankara Çimsa Mill

Grinding Facility Capacity 2,040 (Tons/Day)

OUR READY-MIXED CONCRETE FACILITIES

Çimsa Ready-mixed concrete started production with Zeytinli Ready-mixed Concrete facility in Adana in 1998.

Property of 37 of the total 46 ready-mixed concrete plants 25 of which are wet and 21 of which are dry system

located in Adana, Mersin, Kayseri, Antalya, Osmaniye, KahramanmaraĢ, NevĢehir, Aksaray, Karaman, Konya,

Bilecik, Adapazarı, Konya, Bursa, EskiĢehir and Kütahya belong to Çimsa. Remaining nine of them are leased

for operation by Çimsa.

Çimsa also carries out its activities in aggregate industry that it considers as one of its main businesses. In this

direction it invests in mineral fields where a good quality of aggregate is derived and where environment-

friendly production can be performed in Mediterranean and Central Anatolia regions. With two active aggregate

pits at the moment, Çimsa started to supply high quality aggregate needed by the ready-mixed concrete and

construction industries from these plants in 2009. Planning to continue these investments in parallel to the

developments in construction and infrastructure needs of the Turkish market and within the framework of its

sustainability principles, Çimsa aims to double its existing production capacity in 2010 first, and then aims to

complete the CE certificates of all pits and increase its reputation in the industry as a corporate manufacturer.

A total of 314 transit mixers, 72 mobile and 5 fixed pumps are used in the plants where 127 experienced and

specialized employees work. Property of 257 transit mixers, 14 loaders, 65 mobile and 5 fixed pumps of these

machines belong to Çimsa.

Following technological and scientific developments closely and presenting these developments to its customers

as new products, new machine pools and services, Çimsa continued procurement of new machines in 2009. 40




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Volvo brand transit mixers with environmentally sensitive EURO4 motors were purchased within this context.

As well as the wet system mixers with Stetter brand ultra-structure of 9 cubic meters capacity, 4 mobile pumps

with 36 meter booms, two of which are Schwing and the other two are Putzmeister brand were also purchased.

Within the context of the Ready-Mixed Concretes Central Dispatch Project it realized in 2009, Çimsa provided

collection of he customer orders placed to all ready-mixed concrete plants at a single center, calculation of the

distance and raw material costs considering the construction site information of the customers and realization of

dispatch to the related construction site from the most profitable plant. Project aims to realize the deliveries in

quality and on time and increasing customer satisfaction and loyalty. Allowing for performing credit query fort

he customers at order stage, the system provided current monitoring of the customer credit information.

Replacing also the production software in all plants in 2009, Çimsa continues its way to become the first

company in Turkey to use its own software in its plants while performing all data flow automatically.

International Affiliations and Terminals

Çimsa Cementos Espana S.A.U (Spain)

Belonging completely to Çimsa, the terminal was engaged in Sevilla, which is one of Spain's most important

ports in 1996. Çimsa Isıdaç-40 and super white cement is dispatched in bulk from the facilities in Mersin and

presented as bulk or in bags using the packaging systems of the 5 thousand tons silo. Producing also white

cement blended furnishing materials, the facility creates a certain buyer group in Spanish market.

CSN Cement Sales North GmbH (Germany)

Established with 50% partnership of German CSN GmbH and Çimsa, CSN markets white cement and Isıdaç-40

in Germany with its bulk cement silo capacity of 7 thousand and 500 tons, and markets white cement and Isıdaç-

40 in Germany.

Çimsa Cement Free Zone Ltd. (T.R.N.C)

Closely monitoring growth potentials in its surroundings, Çimsa has acquired Erçim Cement Ind. LLC within the

context of the investment decision it has taken for TRNC in 2005. Located in Famagusta Port, the facility was

made suitable for bulk cement storage and sales in the end of 2005 with the investment made after acquisition.

Approximately 50 thousand tons of grey cement was sold in 2007 in the plant with a cement storage capacity of

approximately 5 thousand tons. In 2008, 70 thousand tons of grey cement sales is aimed in Cyprus market.

Cimsarom Marketing Distributie S.R.L. (Romania)

CĠMSAROM was established in Constanza, a port city of Romania in February 2006, all of its shares belonging

to Çimsa in order to perform marketing and distribution of especially white cement and Isıdaç 40 both in

Romania and abroad.

Çimsa-Rus Cement Trading Company Limited (Russia)

Belonging completely to Çimsa, the terminal was engaged in Novorossiysk, which is one of Russia's most

important ports.

CIMSA ADRIATICO S.R.L. (Formerly:MED CON SRL) (Italy)

60% of the shares of the MED.CON Srl Company that owns a cement terminal in Italy’s Trieste Port that

provides growth opportunity in developing markets and representing a strategic importance in reaching the white

cement markets and customers and providing sustainability of competition advantage was acquired on February

9, 2010.




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H) Production and Sales

Çimsa produces and sells white/grey clinker, white/grey cement and calcium aluminated cement.

Six-Months Production Figures of 2010

Clinker Production

Grey Clinker 1,661,213 tons White Clinker 420,517 tons ISIDAÇ-40 Clinker 10,851 tons Sulphate Resistant Clinker 3,589 tons TOTAL 2,096,170 tons

Cement Production

Grey Cement 2,109,750 tons White Cement 496,204 tons ISIDAÇ-40 12,602 tons SDÇ Cement 2,761 tons EkoHarç 27,590 tons TOTAL 2,648,907 tons

In January 1 – June 30, 2010 period our domestic sales turnover increased by 37% in comparison to the same

period of the previous year and reached to 255 million TL. Our international sales turnover decreased by 24%,

reaching 106 million TL.

I) Financial Ratios:

Consolidated Consolidated

30.06.2010 31.12.2009

Net Operating Capital= Current Actives – Current Passives 11,089,331 53,534,836

I-Liquidity Ratios:

1- Current Ratio = Floating Assets / Short Term Liabilities

2-Liquidity Ratio = Floating Assets-Stocks-Other Floating Assets /

Short Term Liabilities

1.04 0.56 1.23 0.67

II-Financial Structure Ratios:

1-Total Liabilities / Equity

2-Short Term Liabilities / Total Actives

3-Long Term Liabilities / Total Actives

0.44 0.26 0.05 0.29 0.19 0.03

III-Profitability Rates:

1-Net Period Profit / Net Sales 2-Net Period Profit / Total Actives 3-Net Period Profit / Equity Capital

0.16 0.05

0.07

0.18 0.09 0.12




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J) Changes within the Upper Management Throughout The Year and Names and Surnames of Current

Top Managers:

Mehmet Hacıkamiloğlu General Manager

Hüseyin Özkan Assistant General Manager (Cement Sales and Marketing)

Basri Dinçer Assistant General Manager (Cement Production) (1/05/2010 Technical Consultant)

Nevra Özhatay Assistant General Manager (Financial Affairs)

Tamer Denizci Assistant General Manager (Purchasing and Logistics)

ġahap Sarıer Assistant General Manager (Ready-mixed concrete)

Ayfer GüreĢ Assistant General Manager (Corporate Development and Human Resources)

Mutlu Doğruöz Assistant General Manager (Investment and Automation)

Doğan Özkul Plant Manager (Mersin)

Mehmet ġahin Plant Manager (Kayseri)

Levent Öncel Plant Manager (Niğde)

Ülkü Özcan Strategy and Business Development Manager

Mehmet Hacıkamiloğlu

General Manager

Completing his undergraduate degree at the Boğaziçi University Construction Engineering Department, Mehmet

Hacıkamiloğlu obtained his graduate degrees from the Istanbul University International Administration

Department and Executive MBA program at Sabancı University. Started his service in the Sabancı Group as a

Facility Manager at Betonsa, continued his career in Sabancı Group as an Investment and Planning Specialist in

the company. He worked as Strategy Development and Planning Manager between 1997 and 1999 at Akçansa;

as Company Manager at Agregasa between 1999 and 2001. Hacıkamiloğlu began working as Deputy General

Manager at Çimsa (Financial and Administrative Affairs) after working as Finance Coordinator for two years.

Assigned as Çimsa General Manager on 01.07.2006, Mr.Hacıkamiloğlu currently works as Çimsa General

Manager.

Hüseyin Özkan

Deputy General Manager

(Marketing and Sales-Cement)

Graduating from the ODTÜ Economics Department, Hüseyin Özkan began his career at Exsa Export as

Marketing Chief in 1983. Transferring to Çimsa Cement in 1986, Özkan worked as Domestic and International

Trade Chief and Sales and Marketing Manager respectively. Özkan works as the Deputy General Manager

Responsible for Marketing and Sales as of 1999.

Basri Dinçer


(Cement Production)

Graduating from the ITU Chemical Engineering Department, Basri Dinçer began his career as Operations

Engineer at Çanakkale Cement in 1979. Working as Quality Control Chief at Nuh Cement in 1982, Dinçer

worked as the Operations Manager at Enka Teknik after his one year experience in Nuh Cement. Transferring to

Çimsa after 6 years in his position, Dinçer worked as Production Manager between 1989 and 2003. Basri Dinçer

started in his position of Deputy General Manager Responsible for Cement Production at Çimsa beginning in

2003.

Şahap Sarıer


(Ready-mixed Concrete)




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ġahap Sarıer started his career as a field manager at Betonsa in 1995 after graduating from the Construction

Engineering department of Dokuz Eylül University. Continuing his career as Operations Chief between 1995 and

1997, Sarıer worked as Akçansa Ready-mixed cement Regional Manager between 1998 and 2004. Working as

Operations Manager in Karçimsa A.ġ. for the following two years, Sarıer began working at Çimsa as Deputy

General Manager responsible for ready-mixed Concrete in 2006. While continuing in his current position, Sarıer

obtained an Executive MBA degree from Sabancı University.

Nevra Özhatay Deputy General Manager

(Administrative Affairs)

Obtained her MBA degree from UK's Exeter University after graduating from the Business Administration

Department of Boğaziçi University, Nevra Özhatay began working at the Sabancı Holding Cement Group as a

Finance Specialist and Talent Pool candidate. Promoted to Management Support Manager in 1996, Özhatay was

assigned as Strategy and Business Development Specialist in 1998, Planning and Control Manager in 2000,

Strategy and Business Development Manager in 2004 and as Logistics, Strategy and Business Development

Director as of 2008. Özhatay took over the Financial Affairs Deputy General Manager position as of

01.01.2009.

Tamer Denizci


(Purchasing and Logistics)

Beginning his career as Financial Affairs Chief at Dusa Industrial Co., Tamer Denizci worked as Financial and

Administrative Affairs Manager between 1992 and 1994 in Yes International A.ġ. after his experience of 4 years

in Dusa. Beginning as the Financial Affairs Manager at Lafarge Beton A.ġ. in 1994, he worked as Export and

Sales Director at Lafarge Aslan Cement. He began working at Çimsa as Financial Affairs Deputy General

Manager and is currently working as Purchasing and Logistics Deputy General Manager. Denizci graduated

from the ĠTÜ Administration Engineering Department.

Mutlu Doğruöz


(Investment and Automation)

Graduating from the Boğaziçi University Electrical and Electronic Engineering Department, Mutlu Doğruöz

began his/her career as Electronics Chief at Enka Teknik in 1983. Working as the manager in charge of the

establishment of automation systems for five years, Doğruöz began work as the Deputy Project Manager at the

Saudi Services Group. Transferred to Çimes Electronic Industry after 4 years of experience at the Saudi Services

Group, Doğruöz worked as Company Manager, Deputy General Manager and General Manager respectively at

Çimes. Beginning at Çimsa as Investment Manager in 2006, Mutlu Doğruöz currently works as Deputy General

Manager Responsible for Investments at Çimsa.

Ayfer Güreş


(Corporate Development and Human Resources)

Graduating from the Boğaziçi University Department of Counselling and Psychological Consultancy, Ayfer

GüreĢ obtained her graduate degree on Organizational Psychology from Columbia University. Beginning her

career as a Human Resources Specialist at Mudo A.ġ., GüreĢ started working as a specialist in Sabancı Holding

after her graduate education. Continuing her career as Human Resources Manager at Sabancı Holding between

1997 and 2007, she began working as Corporate Development and Human Resources Manager at Çimsa Cement

in 2007. Ayfer GüreĢ currently works as Deputy General Manager responsible for Corporate Development and

Human Resources.




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Doğan Özkul

Plant Manager (Mersin)

Completing his undergraduate degree in Chemistry Engineering at Istanbul University, Doğan Özkul worked as

Quality Control Chief at Çanakkale Cement between 1978 and 1983. Continuing his Quality Control and

Production Management career, he began working at Enka Teknik in 1983 and remained there for four years,

Özkul worked as Production Manager between 1988 and 2006. Working as Karçimsa Company Manager

between 2006 and 2007, Özkul served as Çimsa Cement Niğde Plant Manager between 2007 and 2008. Özkul

currently works as the Mersin Plant Manager.

Mehmet ġahin

Plant Manager (Kayseri)

Obtaining his post graduate degree from the Hacettepe University Physical Engineering Department, Mehmet

ġahin began his career as a Research Specialist at TCMB in 1979. He continued there until 1985. Transferred to

Çimsa Cement in 1985, ġahin worked as Shift Engineer, Process Control Chief and R&D Manager respectively.

Assigned as Çimsa Kayseri Plant Manager in 2005, ġahin continues in that position.

Levent Öncel Plant Manager (Niğde)

Levent Öncel completed his undergraduate degree at the Chemical Engineering Department of METU and his

graduate degree at the Mersin University Geology Engineering Department. He started working as Production

Manager at Berdan Tekstil in 1988. He worked as Quality Control Engineer, Process Control Chief, Quality

Control Manager and Production Manager respectively at the Çimsa Mersin Plant beginning in 1990. Assigned

as Çimsa Niğde Plant Manager in 2008, Öncel continues in that position.

Ülkü Özcan

Strategy and Business Development Manager

Graduated from Galatasaray High School and Marmara University Business Administration (English)

Department, Ülkü Özcan started his/her career in Lafarge Turkey in 1999. Özcan worked as Strategic Planning

Specialist between 1999 and 2003 Strategic Business Development Manager between 2003 and 2005 and

Marketing Project Manager between 2005 and 2007 respectively. Transferred to Çimsa Cement in January 2007

as Strategy and Business Development Manager, Özcan currently continues this position.

K) Personnel Movements and Collective Labor Agreement Applications

a) Personnel and Worker Movements:

There are 988 employees and workers working at Çimsa's headquarters and other plants in total as of

30.06.2010. 31 employees and workers resigned from Çimsa and 62 employees and workers were recruited

within the period.

b) Collective Labor Agreement:

The collective labor agreement, the period of which ended on 31.12.2007, was replaced with a new collective

labor agreement signed between Turkish Çimse-ĠĢ Labor Union and Cement Industry Employers' Union on

21.03.2008. This agreement entered into effect as of 01.01.2007 for 3 years. The period of this collective labor

agreement will end on 31.12.2010.

c) Wages and Benefits for Employees:

Off-Scope Employees: Wage + 4 bonus wages per year




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For employees and workers that TĠS is applied for: Wage + 4 wages of bonus per year

140.-TL./Month Social Benefits

Social Benefits such as Clothing, Birth, Death, Marriage, Meal,

Transport and etc. are also provided.

Additionally, white collar employees may be provided with supplementary benefits such as private life, private

health insurance and individual pension insurance according to their positions.

Ö) Information on Donations Made Throughout The Year:

Our Company donated 31,836 TL to various public institutions and organizations throughout the year.

L) Information on Existence of Peripheral Organizations:

HEADQUARTERS

Kısıklı Cad. No:4 Sarkuysan - Ak ĠĢ Merkezi S Blok Altunizade - Ġstanbul Telephone: (0216) 651 53 00 Fax: (0216) 651 14 15

CEMENT PLANTS

• Çimsa Mersin

Toroslar Mah. Tekke Cad. YenitaĢkent Mersin Telephone: (0324) 454 00 60 Fax: (0324) 454 00 75

• Çimsa Kayseri

Malatya Karayolu 35. Km Bünyan Kayseri

Telephone: (0352) 712 16 07 Fax: (0352) 712 16 90

• Çimsa Eskişehir

Ġstanbul Karayolu 22. Km Çukurhisar EskiĢehir

Telephone: (0222) 411 32 00 Fax: (0222) 411 31 31

• Çimsa Ankara

KarĢıyaka Mah. Fırat Cad. No: 3 Lalahan Ankara Telephone: (0312) 865 23 96 Fax: (0312) 865 23 95

• Çimsa Niğde

Hacı Sabancı Bulvarı Niğde

Telephone: (0388) 232 36 30 Fax: (0312) 232 36 34

• Çimsa Malatya Terminal

TCDD Yanı Çimento Dolum Tesisi Battalgazi Malatya

Telephone: (0422) 841 36 77 Fax: (0422) 841 32 30

• Çimsa Marmara Terminal

Sahil Caddesi Rota Limanı Ġçi Yarımca/ Körfez/Kocaeli

Telephone: (0262) 528 42 33

ÇĠMSA ÇĠMENTO SANAYĠ VE TĠCARET A.ġ.

SERĠ:XI NO:29 SAYILI TEBLĠĞE ĠSTĠNADEN HAZIRLANMIġ YÖNETĠM KURULU FAALĠYET

RAPORU

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Fax: (0262) 528 42 36

• Çimsa Cement Industry and Trade Inc.«

Mersin Free Zone Branch

Yalçın Alabeyoğlu Bulvarı Parkur ĠĢ Merkezi Ofis No 209 Mersin

Phone: (0324) 233 47 65 Fax: (0324) 233 47 66

READY-MIXED CONCRETE FACILITIES

• Zeytinli Ready-mixed Concrete Plant

Adana - Mersin Yolu Üzeri 17. Km Kestel Mevkii Zeytinli Seyhan/Adana

Phone: (0322) 441 19 01 (3 lines) Fax: (0322) 441 18 99

• Karahan Ready-mixed Concrete Plant

Eski Karaisalı Yolu Üzeri Seyhan / Adana

Phone: (0322) 495 20 21 Fax: (0322) 495 20 22

• Misis Ready-mixed Concrete Plant

Hacı Sabancı Organize Sanayi Bölgesi 6. Cadde Misis Yüreğir / Adana

Phone: (0322) 394 34 20-21 Fax: (0322) 394 34 22

• İncirlik Ready-mixed Concrete Plant

Güzelevler Mah. Girne Bulvarı Bossa - 2 Fab. Yanı Yüreğir / Adana Phone: (0322) 346 02 39

Fax: (0322) 346 02 49

• Osmaniye Ready-mixed Concrete Plant

Tüysüz Beldesi Yolçatı Mevkii D-400 Karayolu Üzeri Toprakkale / Osmaniye

Phone: (0328) 633 24 59 Fax: (0328) 633 24 60

• Kahramanmaraş Ready-mixed Concrete Plant

Kayseri Yolu Üzeri 2. Km Galericiler Sitesi BitiĢiği KahramanmaraĢ

Phone: (0344) 234 13 10 Fax: (0344) 234 13 11

• Kozan Ready-mixed Concrete Plant

Kozan Organize Sanayi Bölgesi Ġçi Kozan / Adana

Phone: (0322) 529 20 21 Fax: (0322) 529 20 22

• Manavgat Ready-mixed Concrete Plant

Köyönü Çeltek Mevkii Sanayi Sitesi KarĢısı Ilıca, Manavgat / Antalya

Phone: (0242) 747 61 74 (3HAT) Fax: (0242) 747 61 75

• Alanya Ready-mixed Concrete Plant

Büyükyer Mahallesi Payallar / Alanya

Phone: (0242) 545 42 04 (2 Lines) Fax: (0242) 545 42 05

ÇĠMSA ÇĠMENTO SANAYĠ VE TĠCARET A.ġ.

SERĠ:XI NO:29 SAYILI TEBLĠĞE ĠSTĠNADEN HAZIRLANMIġ YÖNETĠM KURULU FAALĠYET

RAPORU

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• Çimsa - Eskişehir Ready-mixed Concrete Plant

Muttalip Yolu 500. Metre - EskiĢehir Tesis Müh. Semih ġafak Kandaz Phone: (0222) 321 28 12 Fax: (0222) 321 18 72

• Kütahya Ready-mixed Concrete Plant

Kütahya - Balıkesir Yolu 1. Km - Kütahya

Phone: (0274) 224 19 87 Fax: (0274) 224 19 88

• Kumarlı Ready-mixed Concrete Plant

Çevre Yolu Konaklar Mah. Sivas Caddesi KavĢağı / Kayseri Phone: (0352) 224 67 40 (3 lines) Fax: (0352) 224 67 44

• Anbar Ready-mixed Concrete Plant

Ankara Karayolu Üzeri Ambar Mevkii Bölge Trafik Arkası / Kayseri

Phone: (0352) 326 92 43 Fax: (0352) 326 92 46

• Develi Ready-mixed Concrete Plant

Develi - Zile Yolu Zile Kasabası Develi / Kayseri

Phone: (0352) 631 83 47 Fax: (0352) 631 83 49

• Nevşehir Ready-mixed Concrete Plant

Niğde Yolu Üzeri 7.Km. Göre / NevĢehir Phone: (0384) 232 83 95 Fax: (0384) 232 82 62

• Yenihal Ready-mixed Concrete Plant

Bahçelievler Mah. 1097 sok. No:2 Yenihal Yolu Yalınayak Kasabası / Mersin Phone: (0324) 235 73 14 Fax: (0324) 235 73 17

• Tarsus Ready-mixed Concrete Plant

Address: Çamlıyayla Yolu, Eshab-ı Kehf Yol KavĢağı, Tarsus / Mersin

Phone: (0324) 627 27 97 Fax: (0324) 627 17 57

• Batıkent Ready-mixed Concrete Plant

Çamlıca Mah. Yıldırımhan Lisesi Arkası / Mersin Phone: (0324) 341 68 82 Fax: (0324) 341 68 84

• Tece Ready-mixed Concrete Plant

Cumhuriyet Mah. Mersin-Silifke Karayolu Üzeri, Tece Mevki / Mersin Phone: (0324) 482 26 07 Fax: (0324)482 26 09

• Silifke Ready-mixed Concrete Plant

Kabasakallı Köyü Gökçeboyu Mevki, Silifke / Mersin

Phone: (0324) 714 42 66 Fax: (0324) 714 42 66



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• Aksaray Ready-mixed Concrete Plant

Organize San. Bölgesi Aksaray Phone: (0382) 266 21 16 Fax: (0382) 266 21 18

• Karaman Ready-mixed Concrete Plant

Organize San. Bölgesi Karaman Phone: (0338) 224 10 26 Fax: (0338) 224 10 92

• Ereğli Ready-mixed Concrete Plant

Niğde Yolu Üzeri 3.Km. Ereğli / Konya Phone: (0332) 710 00 51 Fax: (0332) 710 00 52

• Konya Ready-mixed Concrete Plant

Horozluhan Mahallesi Anayurt Caddesi No: 10 Selçuklu / Konya Phone: (0332) 346 11 12 Fax: (0332) 346 11 13

• Yenişehir Ready-mixed Concrete Plant

Akdere Mevkii Org. San. Bölgesi YeniĢehir / Bursa

• İnegöl Ready-mixed Concrete Plant

Cerrah Kasabası Kalburt Mevkii Dereboyu - Ġnegöl / Bursa

Phone: (0224) 714 22 00 Fax: (0224) 714 22 03

• İnegöl Stone Pit

Karalar Köyü Mevkii Ġnegöl / Bursa

Phone: (0224) 714 22 02

• Adapazarı Ready-mixed Concrete Plant

Toroslar Mah. Plevne Cad. No: 31 Sakarya Phone: (0264) 373 72 00

• Pamukova Ready-mixed Concrete Plant

Yenice Mah. Murualtı Mevkii Pamukova / Sakarya Phone: (0264) 551 68 10 Fax: (0264) 551 41 95

• Osmaneli Ready-mixed Concrete Plant

Camikebir Mah. Çörektepe Mevkii Osmaneli / Bilecik Phone: (0228) 469 21 32 Fax: (0228) 469 21 31

• Bilecik Ready-mixed Concrete Plant

1. Organize Sanayi Bölgesi 8. Cadde No: 3 Merkez / Bilecik

Phone: (0228) 216 00 23 Fax: (0228)216 00 22

INTERNATIONAL TERMINALS

• Cementos Espana S.A.U – Spain

Phone: 00 34 95 427 50 68 Fax: 00 34 95 427 19 36



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Address: Carretera de la Esclusa S/N, Darsena del Batan Notre, 41011 Puerto de Sevilla / Spain

• CSN Cement Sales North GmbH (Germany)

Phone: 00 49 40 70 20 93 14 Fax: 00 49 70 20 93 20/22 Address: Nesserlander Strasse, 5 Emden / Germany 26721

• Çimsa Cement Free Zone Ltd. Cyprus

Phone: 00 90 392 365 49 80 Fax: 00 90 392 365 49 81 Address: Free Port Zone, Famagusta/TRNC

• Cimsarom Marketing Distributie S.R.L. (Romania)

Phone: 00 40 241 585 333 Fax: 00 40 241 585 333 Address: Bd Mamaia, Ofice Nr 5, Nr 251 Et 4, Constanza/Romania

• Çimsa-Rus Cement Trading Company Limited (Russia)

Phone: 00 7 918 66 49 344 Address: Malozemelskaya Str, No: 16, 353900 Novorossiysk / Russia

• CIMSA ADRIATICO S.R.L. (Formerly:MED CON SRL) Italy

Phone: 00 39 040 282 09 18 Fax: 00 39 040 282 09 23 Address: ası Riva Alvise Cadamosto,8 34147 Trieste / Italy

Çimsa cement industry and trade inc. january 1, 2010 …

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