AE ARMA-ELEKTROPANÇ ANNUAL REPORT 2016...AE ARMA-ELEKTROPANÇ AT A GLANCE Company Profile 02...

AE ARMA-ELEKTROPANÇ ANNUAL REPORT 2016

Trade Registration Number : 463497

AE ARMA-ELEKTROPANÇ AT A GLANCE

Company Profile 02

Strategy 03

Mission & Vision 04

Activities 05

Subsidiaries & Branch Offices 06

Operation Map 07

Milestones 08

Awards & Achievements 10

FROM THE MANAGEMENT

Chairman’s Message 14

The Board of Directors 16

ACTIVITIES IN 2016

New Projects in 2016 22

Ongoing Projects 25

Completed Projects in 2016 30

Human Resources 34

Information Management 40

Quality 41

Occupational Health & Safety 42

Environmental Awareness 46

Contribution to Society 48

Ethical Policy 50

FINANCIAL STATEMENTS

Key Indicators 54

INDEX

ANNUAL REPORT

01


COMPANY PROFILE

“ We are a leading technical contractor which has carried out

electromechanical works for numerous prestigious projects in 9 different

countries across 3 different continents, with our managers having over 40

years of experience in engineering.”

One of the strongest and leading companies of Turkish engineering and contracting sector,

ARMA ENGINEERING founded in 1986 and ELEKTROPANÇ ELECTRICAL INDUSTRY founded in

1991 joined their forces and resources in October 2001 to establish AE ARMA-ELEKTROPANÇ.

With the ample experiences of both groups and the state of the art technologies, this alliance

enables AE Arma-Elektropanç to optimize services and perform a leadership role in Turkey

and the continually growing international markets by applying innovative, skilled engineered

and cost effective solutions.

With years of experience and innovative solutions, as an international technical service provid-

er, AE has successfully completed numerous type of projects such as residential, commercial,

retail, educational, healthcare, social and cultural, theme parks, sports arena, hospitality, data

center, transportation & infrastructures and industrial.

MERGER OF 2 LEADING ENGINEERING COMPANIES

OVER 40 YEARS EXPERIENCED MANAGEMENT TEAM

OPERATIONS IN9 DIFFERENT COUNTRIES ACROSS 3 CONTINENTS

+

+

02


STRATEGY

“ As a company which renews continuously and increases its value, it is our

primary objective to render client-oriented services while we deliver MEP

works for high quality projects with the experience we have gained over the

course of many years.”

While expanding to new markets, we are aiming to be the MEP contractor of the important

projects by maintaining our high-quailty and reputation and establishing partnerships with

global players in the sector and to be carrying out the sustainability with risk and cost con-

trol. Board of Directors and senior management are constantly monitoring activities accord-

ing to our strategy. During the periodical and frequent management meetings, performance

of the company is kept under control and new targets and strategies are being developed.

Our 2017 targets are:

• Expand our operations to new markets like South and Southwest Asia,

• Become one of the key player in Sub-Saharan Africa market,

• Involve in infrastructure, oil & gas and railway projects,

• Strengthen our strong capital structure,

• Grow at least 15% while maximizing our profitability in the new projects,

• Establish new global partnership agreements.

EXPANDING TO SOUTH ASIA, SOUTHWEST ASIA and

SUB-SAHARAN AFRICA MARKETS

15% TURNOVER GROWTH

INVOLVE IN INFRASTRUCTURE, OIL & GAS and RAILWAY PROJECTS

+

+

03


MISSION & VISION

“ We continue to carry out prestigious projects with our staff open to

continuous development, improvement and innovation in ever changing

and developing world.”

Mission

With the supreme breadth of knowledge, products and services, our mission is to resolve

challenging technical design and engineering problems by using successful project imple-

mentation, combining our expertise with our superior technology and working towards the

highest delivery standards for cost effective solutions.

Vision

Our vision is becoming an international player not only in the electrical and mechanical

sectors (MEP), but also in the tourism, health and renewable energy sectors with an aim to

create partnerships, long term investments, turnkey solutions and ultimately maximizing

customer satisfaction by ensuring to provide with an optimum and reliable solutions.

INNOVATION

DEVELOPMENT

CHANGE

+

+

04


ACTIVITIES

AE Arma-Elektropanç covers the entire range of electrical engineering solutions of every

sizes, such as low, medium and high tension, energy management and distribution, measur-

ing and control technology, instrumentation, integrated security and building management.

AE covers the entire spectrum of air, climate and energy solutions, including HVAC cold and

heat storage, cleanroom technology, piping, fire-extinguishing technology and mechanical

process installations.

For the industrial sector, the focus of AE is on power plants, the automotive industry, chem-

icals and petrochemicals, pharmaceuticals, oil & gas, the animal feed, aircraft and food

industry.

For traffic & infrastructure, AE provides the measurement, analysis and improvement of

traffic flow, traffic management, infrastructure and safety, airport infrastructure, railway, tram

and metro, tunnels, bridges and locks, transport and distribution networks, public lighting,

waste and drinking water treatment and management.

AE manages technical facility services like operation & maintenance and repair of multiven-

dor equipment’s in intelligent residences, offices, industrial facilities, power plants, airports

and aircraft maintenance centres. AE services protects the technical assets and reduce

OPEX.

AE also provides services and solutions by applying the latest state of the art technologies,

particularly in energy saving and green buildings.

“ We are a leading technical contractor which furnishes electromechanical

services for infrastructures and superstructures with various functions and

sizes.”

ELECTRICAL ENGINEERING

MECHANICAL ENGINEERING

+

05


SUBSIDIARIES & BRANCH OFFICES

“ We carry on our activities with our 6 companies and 4 branch offices,

across 3 different continents, in order to provide our clients in diverse

cultures and regions with the best and fastest service.”

AE ARMA-ELEKTROPANÇ BRANCH OFFICES

AE Arma-Elektropanç Electromechanical Industry Engineering Contracting and Trade Inc. - Moscow / Russian Federation

AE Arma-Elektropanç Electromechanical Industry Engineering Contracting and Trade Inc. - Abu Dhabi / UAE

AE Arma-Elektropanç Electromechanical Industry Engineering Contracting and Trade Inc. - Baku / Azerbaijan

AE Arma-Elektropanç Electromechanical Industry Engineering Contracting and Trade Inc. - Nicosia / TRNC

AE ARMA-ELEKTROPANÇ SUBSIDIARIES SHARES (%)

AE Arma-Elektropanç Electromechanical Industry Engineering Contracting and Trade Inc. - Turkey 100

OOO AE Arma-Elektropanc Elektromekanik - Russian Federation 100

Arma Elektropanc Electromechanical Co. L.L.C. - Dubai / UAE 49

AE Arma-Elektropanc Electromechanical Contracting Qatar W.L.L. - Qatar 48

AE Arma-Elektropanc Electromechanical Contracting Lebanon S.A.R.L. - Lebanon 45

AE Arma-Elektropanc Building Services Limited - United Kingdom 25

06


OPERATION MAP

ONGOING PROJECTS

Turkey

Russian Federation

United Arab Emirates (Dubai & Abu Dhabi)

Algeria

United Kingdom

COMPLETED PROJECTS

Turkey

Russian Federation

United Arab Emirates (Dubai & Abu Dhabi)

Algeria

Azerbaijan

TRNC

Georgia

Ethiopia

TURKEY

TRNC

GEORGIA

AZERBAIJAN

DUBAI (UAE)

ABU DHABI (UAE)

ALGERIA

ETHIOPIA

UNITEDKINGDOM

RUSSIAN FEDERATION

LEBANON

QATAR

07


MILESTONES

2003OOO AE Arma-Elektropanc Elektromekanik was

established in Russian Federation.

2001Arma Engineering & Elektropanç Electrical

joined their forces to establish AE Arma-

Elektropanç.1991Elektropanç Electrical Industry & Trade

Corporation was established.

1986Arma Engineering & Trade was estab-

lished.

20001980 1990

“ Established by their shareholders who have more engineering

experiences then the companies they have set up, AE moves forward with

the strength it gets from the past.”

08

2015Remaining 49% of the shares was bought back

by AE Arma-Elektropanç from Imtech N.V. by

April 2015 and the partnership has been ended.

Second tallest completed building of Europe,

Mercury City project was handed over in

October 2015.

AE Arma-Elektropanc Building Services Limited

was established in London, UK.

2016By Issuing the very first bonds and bills of

its sector, AE Arma-Elektropanç redeemed

10 million TL worth of bonds with its own

resources.

2011AE Arma-Elektropanc Electromechanical

Contracting Qatar W.L.L. was established.

2012AE Arma-Elektropanc Electromechani-

cal Contracting Lebanon S.A.R.L. which

the Hariri family is the 50% partner was

established.

80% shares of AE Arma-Elektropanç was

acquired by Imtech N.V. in October.

2014AE Arma-Elektropanç bought back 31%

shares which 80% was sold to Imtech N.V.

2010Azerbaijan branch office was established.

The 4th and 9th completed tallest buildings

of Europe, Capital City project was handed

over.

2009Abu Dhabi branch office was established.

2006Arma Elektropanc Electromechanical Co.

L.L.C. was established in Dubai, UAE.

2005TRNC branch office was established.

2005 2010 2015+

09


AWARDS & ACHIEVEMENTS

“ AE Arma-Elektropanç which is one of the leading players in the regions

where it operates, have proven its success with the lists it is ranked and the

awards it received.”

AE Arma-Elektropanç crowned its grandeur and success by being in the list of important

media organisation and receiving many prestigious awards.

AE was ranked 222th in the list of “The Top 250 International Contractors 2016” published

by Engineering News Record (ENR), the industry’s most prestigious international maga-

zine, by increasing 7 ranks compared to 2015. AE, which has taken part in this list for the

last three consecutive years, is one of the 40 Turkish contractors listed from Turkey.

In the list of “Top 25 MEP Contactors of the Middle East” published by MEP Middle East

known as the reputable and prestigious publications of the Middle East construction

industry, AE was ranked as 5th in 2016 and took place in the list as the third time consecu-

tively.

Additionally, AE took part in both reports of Fortune 500 Türkiye and Capital 500 Türkiye

prepared regularly each year by Fortune and Capital known as the world’s most prestig-

ious economics and business world publications, and thus it has once again confirmed its

place among the largest and most valuable companies in Turkey.

Each of the logos and brands above is the registered product of the affiliated companies and the copyright and other rights belong to each company.

+

+

+

10

FROM THE MANAGEMENT

CHAIRMAN’S MESSAGE

14

We left 2016 behind, which was quite dramatic and challenging

for Turkey and the world. On the night of 15th of July, as a nation

we faced an insurrection that gave us all a deep shock. We further

clamped together by fighting this attempt down, thanks to the

prudence of our nation and our faith in unity and solidarity as a na-

tion, under the leadership of our Honourable President. Through-

out the year, we were shocked by hateful terrorist attacks aimed

at disturbing the unity and solidarity of Turkish Republic and we

were deeply sorry for those who lost their lives in those attacks.

But after all, we remained standing and showed whole world that

terror could never yield any results. Non-decreasing tension in

Syria and consequently the refugee crisis which is the concern of

whole world have long given the signs that something was not

on the right track in the world. The recession experienced by the

largest economies in the world and the exchange rate fluctuations

(volatility) have affected Turkey, as many other countries. However,

the fact that the tension emerged between Turkey and Russia in

the previous year has disappeared and new co-operations have

developed, has indicated that the relations we have with our

neighbours in this region can change for the better, upon the will

of the parties.

For all the problems encountered around the world and in the

geography which encompasses our country, a growth by 2.8 per-

cent is predicted in 2017 for the global economy. US and Russian

economy will grow and the trading with the regional countries will

be able to boost thanks to the improvement in bilateral relations.

The new medium-term schedule revealed by the government

introduced substantial support elements to promote the export

and exporters. These practices will encourage the exporters and

lend impetus to the export. In the view of such data, it wouldn’t be

wrong to say that 2017 will be a more positive year as compared

to the previous year and a great deal of opportunities that appear

behind the challenges are awaiting for us. As AE Arma-Elektropanç,

we consider it duty on our part to get into the markets that are

convenient for our country, with a responsibility induced by being

one of the significant organisations of Turkish economy and add

value to our country economically and socially by extending the

boundaries of the geography in which we currently carry out

business.

To assess our company for the past year; AE not only reached its

objectives but also kept on breaking grounds in its sector. Issuing

the very first bonds and bills in the sector in 2015, AE restored

its trust in capital markets in 2016 by 10 million TL worth of bond

redemption it realized with its own resources.

As we headed into 2016, we had 20 ongoing projects, 7 of which

were delivered last year. By awarding to 3 new prestigious pro-

jects we achieved a contract value of around 800 million dollars.

We undertook the entire MEP works for Garanti Bank Technology

Campus Data Centre Project which is one of the distinguished

TIER-4 data centres in Turkey and around the world, Al Maktoum

International Airport Passenger Terminal Building Extension

Project which will become the largest airport in the world once

completed and Marsa Al Seef (Phase 4) project which will contrib-

ute alot in Dubai tourism.

Also, our co-operations continued last year in accordance with our

vision. We established a strategic cooperation to install efficient

and affordable energy production plants, seeking to produce and

operationalize affordable and reliable energy particularly in the

markets across Africa which is rich in natural resource but still

developing.

Highly reputable publications across the world did not remain

unresponsive to these achievements of AE. We ranked 222nd in

the list of “The Top 250 International Contractors 2016” published

by Engineering News Record (ENR) and 5th in the list of “Top 25

MEP Contactors of the Middle East” published by MEP Middle

East. We are getting closer and closer to our objective day by day

to become a global player in the MEP sector.

All these achievements are surely about a team work. With its

over 500 engineers and 5.000 employees, AE delivers a multi-

cultural service with their employees from 37 different countries.

This structure played a significant role in the success of meeting

the diverse cultures, standards and expectations properly and

in a timely manner, which is a part of doing business in different

geographies. As AE which invested around 5 million TL in 2016 in

an effort to develop business, create new markets and invest in

technology, we aim to continue our investments in 2017 as well

and increasing our turnover by 15 percent with the new projects

we will secure.

AE is ready to rush through its target of becoming a global player

in 2017. It’s always been a common goal of whole AE family to

increase the added value we contribute to the national economy,

boost our employment capacity and keep our flag flying in new

regions other than our country. As AE, we will keep on carrying out

projects that will make tremendous impact across the world and

representing Turkey proudly in the international arena.

A. Medih Ertan

Chairman of the Board

15

Kemal Kızılhan

Co-Chairman

FROM THE MANAGEMENT

THE BOARD OF DIRECTORS

16

Left to right

HASAN İNCEBoard Member

BURAK Ç. KIZILHANDeputy General Manager

Board Member

KEMAL KIZILHANCo-Chairman

A. MEDİH ERTAN Chairman of the Board

ALİ SERİMIndependent Board Member

H. DEMİR ÖZKAYAGeneral Manager

Board Member

17

FROM THE MANAGEMENT

THE BOARD OF DIRECTORS

He was born in 1952 in İstanbul. He was graduat-ed from İstanbul Technical University in 1973. He started his career at Turkish Government Atomic Energy Commission at Çekmece Nuclear Research Training Center (ÇNAEM) at TR-2 Reactor Expand-ing Department by receiving a scholarship. Then, he established his companies called Elektropanç

Electronics in 1976 and Elektropanç Electrical in 1991. He is one of the co-founder of AE Arma- Elektropanç. He is a member of Chamber of Elec-trical Engineers (EMO) and co-founder of Electrical Contractor & Engineer Association (ETMD) where he was the chairman at the 2nd term. A. Medih Ertan is currently the Chairman of the Board of AE.

He was born in 1955 in Rize where he went to primary and high school. He was graduated from Yıldız Technical University in 1981 from Electrical Engineering Department and then, started his career at Set Elektrik. He established his first company in 1981 called Arma Engineering which has handed over numerous important projects in the construction sector and where he was

the chairman of Arma Engineering’s group of companies until 2000. He is one of the co-founder of AE Arma-Elektropanç. Kemal Kızılhan is currenlty the Co-Chairman of AE. He is a member of Chamber of Electrical Engineers (EMO) and co-founder of Electrical Contractor & Engineer Association (ETMD).

He was born in İstanbul in 1960, where he was completed his high school education in 1978 from Kabataş High School. He was graduated as an Electrical Engineer from Yıldız Technical Univer-sity in 1985 and received his master’s degree in business administration from İstanbul Univer-sity Business and Economics Institute. Starting his professional career in electrical contracting sector in 1984, Hasan İnce founded Hasel Elektrik

Mühendislik in 1987 and handed over many important projects. He is one of the co-founder of Elektropanç Electrical established in 1991. He is one of the co-founder of AE Arma-Elektropanç and he has been a Member of the Board since the foundation of the company. Hasan İnce is a member of Chamber of Electrical Engineers (EMO), Electrical Contractor & Engineer Association (ETMD) and İstanbul Sailing Club.

A. MEDİH ERTANChairman of the Board

KEMAL KIZILHANCo-Chairman

HASAN İNCEBoard Member

18

He was born in İstanbul in 1955. He completed his high school education from İstanbul Erkek Lisesi. He was graduated from İstanbul Techni-cal University Electronics and Communication Engineering Department in 1978. He received his master’s degree in Electronics and Communica-tion Engineering at the same university in 1980. He started his career as a research assistant at Electrical Faculty of İstanbul Technical University in 1978. He was awarded a scholarship from RWTH Aachen University in Germany where he had his master of science degree in 1981 and he worked as a research assistant at automatic control faculty and continued his postgraduate studies from 1981 until 1984. After his short term military service, he

worked in Merk Telefonbau at Munich – Germany as a software engineer in the development of the ISDN phones. Later, he worked for Siemens Turkey from 1985 until 2000 respectively as commissioning engineer, sales and marketing engineer, marketing manager, project responsible, project manager and department director at traffic signalisation, highways and building services. H. Demir Özkaya moved to Elektropanç Electrical by 2000 and is one of the co-founder of AE Arma- Elektropanç. He is the General Manager and Board Member of the company since the establishment. He is a member of Electrical Contractor & Engineer Association (ETMD), İTÜ alumni, Turk Trade and Turkish National Committee on Illumination.

Burak Ç. Kızılhan was born in 1984 and graduated from French High School called Lycee Saint-Benoit in İstanbul, Turkey. Then he received his bachelors degree in Electrical & Electronics Engineering at University of Hertfordshire in London, UK. Further to his bachelors degree, he received his master of science degree in Engineering Management at Brunel University in London, UK. He also complet-ed his Executive Education in Finance at Harvard Business School in Boston, USA. After his studies, he worked for Schneider Electric in London, UK for 2 years as a project manager. Further to his career in the UK, he returned to his family business at AE Arma-Elektropanç and settled his life in the UAE and became the business development manager responsible for MENA (Middle East & North Africa) region’s operations of the company.

He returned to AE’s headquarters located in Istanbul, Turkey by January 2014 and became the Deputy General Manager and Board Member of the company. Burak Ç. Kızılhan was listed four times (2012,2013,2015 & 2016) in the list of “Power 100 the Most Influential People in the Middle East’s Construction Industry” issued by the pres-tigious “Construction Week” magazine. He is the youngest person in the list. He was also listed four times as “The Most Promising 20 CEO’s” list. And he was listed at 38th at the list of Fortune Türkiye “40 Under 40” the most influential young people in business. Burak Ç. Kızılhan’s current duties in the non-governmental organisations are; Endeavor Turkey Membership, Chamber of Electrical En-gineers (EMO), 1907 Fenerbahçe Derneği Board Member, Fenerbahçe SK Member.

Started his professional career in Ernst & Young he has experienced with Top 500 companies of Turkey and Forbes 2000 companies establishing a network of corporate leaders with in-depth experience for some of the key sectors and players in the South East Europe and the MENA region. Published two books and various articles and re-spected throughout the Istanbul community, he is a diligent leader with a reputation for successfully contributing to the growth of Turkey’s expanding private sector and providing substantive and intel-

lectual leadership. In addition to being a corporate advisor and an entrepreneur he is serving as a board member in various companies. Ali Serim is a member of UNESCO Turkey; ICOM Turkey and a Fellow of the RSA (Royal Society for the encour-agement of Arts, Manufactures and Commerce), an enlightenment organization committed to finding innovative practical solutions to today’s social challenges and a Trustee of the Yildiz Palace Foundation a guarding institution for the last impe-rial palace of the Ottoman Empire.

H. DEMİR ÖZKAYAGeneral Manager / Board Member

BURAK Ç. KIZILHANDeputy General Manager / Board Member

ALİ SERİMIndependent Board Member

19

LEGO, the LEGO logo, LEGOLAND are trademarks of the LEGO Group. LEGOLAND is a Merlin Entertainments brand.

ACTIVITIES IN 2016

NEW PROJECTS IN 2016

The Data Center Project which is going to be certified by Uptime

Institute, will be one of the first TIER-4 certified data centers in Tur-

key. All systems in data center will be projected and implemented

fail-safe and according to zero-error tolerance principle. The plant

to be equipped with a backup electricity line, auxiliary power and

backup cooling systems will be serviceable in a 96-hour outage

and offer 99.995% operability. The plant to be equipped with high

security systems will be accessed through the use of biometric

access control systems. The construction of the project started in

July 2016 and it is planned to be completed by June 2017.

Garanti Bank Pendik Technology Campus Data Center

Employer : Garanti Bankası A.Ş.

Main Contractor : Doğuş Construction

Consultant : Midek Era

Scope of Works : MEP Works

Project Location : İstanbul / Turkey

Total Area : 7.000 m2

Project Start Date : 2016

22

Once all phases are completed, Dubai Al Maktoum International

Airport will be one of the largest airports in the world. The owner

of the project is Dubai Aviation & Engineering Projects Company

(DAEP) and main contractor is Al Jaber Engineering and Contracting

(ALEC). DAEP is a leading engineering organisation of the dynamic

aviation sector of Dubai, which is in charge of designing, master

planning, infrastructure development and construction.

In the first signed phase of the project, 66.107 m2 size of passenger

terminal building will enlarged to 145.926 m2 will be and completed

in June, 2018. Once completed, it will reach to a capacity of 26.5

million passengers.

As part of passenger terminal extension works, arriving passengers

(arrivals) building will contain a baggage handling system along

with a lounge, baggage area and related services for arriving pas-

sengers will render services in total of 55 checkpoints, visa and

related service areas. Departing passenger (departures) building

will deliver services in 10 business counters along with 64 new

check-in counters. The extemsion project will also include 12 new

lounges.

Within the scope of MEP works, AE undertook the training activities

for the supply, installation, testing and commissioning work with

respect to all low and medium voltage power systems, fire alarm

systems light control and emergency lighting systems along with

BIM designing, including HVAC, BMS, piping and drainage systems,

firefighting systems and SCADA.

Al Maktoum International Airport - Passenger Terminal BuildingExtension Project

Employer : DAEP

Main Contractor : ALEC LLC

Consultant : Dar Al Handasah


Project Location : Dubai / UAE



23

In Marsa Al Seef project; a huge living area will be constructed

together with the hotels, outdoor museum and amphitheatre, cafes

and restaurants by the canal. Combining the maritime trade back-

ground of Dubai with the contemporary life, this project will give a

magic touch to Dubai with the markets, art galleries and handcraft

shops to be built on water. Dutco Balfour Beatty is the main contrac-

tor of the project which is expected to make a huge contribution to

the development of tourism around Dubai Creek. AE undertook the

MEP contracting services for two four-star Jumeriah Hotel and one

carpark in the fourth phase of Marsa Al Seef project. The project is

expected to be completed in 2018.

Marsa Al Seef (Phase 4)

Employer : Meraas Holding

Main Contractor : Dutco Balfour Beatty LLC

Consultant : WS Atkins





24

Belgravia Gate

Employer : Wainbridge Estates Belgravia Limited

Main Contractor : Ant Yapı UK

Consultant : MACE


Project Location : London / United Kingdom



Bluewaters Wharf Retail

Employer : Meraas Holding

Main Contractor : ALEC LLC

Consultant : WSP





Domodedovo Airport - Terminal 2

Employer : DKM Construction

Main Contractor : Ant Yapı

Consultant : Domodedovo Construction Management


Project Location : Moscow / Russian Federation



ACTIVITIES IN 2016

ONGOING PROJECTS

25

Fili Grad (Phase 2)

Employer : MR Group

Main Contractor : Ant Teq

Consultant : AK Proekt





Manzara Adalar

Employer : İş GYO


Consultant : Entegre Project Management





Nurol Life

Employer : Nurol GYO

Main Contractor : Nurol Construction

Consultant : Nurol GYO





26

Wasl District

Employer : Al Wasl Properties

Main Contractor : Shapoorji Pallonji Mideast LLC

Consultant : Kling Consult





Grand Mosque Algeria - Energy Center

Employer : Anergema

Main Contractor : China State Construction

Engineering Corporation (CSCEC)

Consultant : Krebs+Kiefer


Project Location : Algiers / Algeria



Oasis Multifunctional Business Complex

Employer : AND Corporation

Main Contractor : Procons

Consultant : ABV Group





27

Grand Mosque Algeria

Employer : Anergema

Main Contractor : China State Construction

Engineering Corporation (CSCEC)

Consultant : Krebs+Kiefer

Scope of Works : Electrical Works

Project Location : Algiers / Algeria



Marina City - Plot B

Employer : National Investment Corporation

Main Contractor : Nurol LLC

Consultant : WS Atkins


Project Location : Abu Dhabi / UAE



Garanti Bank Pendik Technology Campus

Employer : Garanti Bankası A.Ş.

Main Contractor : Doğuş Construction

Consultant : Midek Era





28

OKO Tower

Employer : Capital Group


Consultant : Capital Group





Total Ongoing Projects : 16

Total Area : 2.485.577 m2

29

LEGOLAND® Dubai (Package 2 & 3)

Employer : DXB Entertainments

Main Contractor : Besix Orascom JV (JVBO)

Consultant : Kling Consult




Project Start / Complete Date : 2015 / 2016

RiverlandTM Dubai

Employer : DXB Entertainments

Main Contractor : Kier Dubai LLC

Consultant : WME





University of Dubai

Employer : Dubai Chamber of Commerce

Main Contractor : Kier Dubai LLC

Consultant : Dar Al Handasah





ACTIVITIES IN 2016

COMPLETED PROJECTS IN 2016

30

Nurol Tower

Employer : Nurol GYO

Main Contractor : Nurol Construction

Consultant : Nurol GYO

Scope of Works : Mechanical Works




SOCAR Tower

Employer : SOCAR

Main Contractor : Tekfen Construction

Consultant : Heerim Architects & Planners

Scope of Works : Electrical Works

Project Location : Baku / Azerbaijan



Bab Al Qasr Hotel & Residence

Employer : EMROC

Main Contractor : Nurol LLC

Consultant : Surbana


Project Location : Abu Dhabi / UAE



31

Boulevard Hotel Baku

Employer : Pasha Group

Main Contractor : Pasha Construction

Consultant : Black & White Engineering


Project Location : Baku / Azerbaijan



32

ACTIVITIES IN 2016

HUMAN RESOURCES

Considering the technological develop-

ment and transformation as well as the

status of the sector in Turkey and abroad,

the activities to promote our competive-

ness as well as employee satisfaction and

productivity constituted the basis of our

activities in 2016. Our activities to reinforce

the internal communication and high mo-

tivation have enabled us to increase the

satisfaction of our employees and boost

the productivity significantly. Our human

resources policy which was updated in

accordance with the activities carried out

and the objectives set by the manage-

ment were put into practice and we are

still working on the improvement of the

system.

Human resources activities for 2016 are

outlined below:

ERP Implementations

The preparations for ERP software, which

will be live system in early 2017, have

continued throughout 2016 and the live

system was eventually launched in ac-

cordance with the schedule. Actions have

been carried out to describe the compa-

ny’s work flows and processes currently

with the ERP.

Organisation Chart

The positions required within the company

to meet the current and future objectives

regarding the growth were redefined. The

relations with the positions, teams, depart-

ment managers and other departments

were updated, approval and organisational

charts were reviewed and organisational

relation charts were created.

Productivity Growth

Productivity growth at the workplace is di-

rectly proportionate to the creation of right

teams in the right time, selection of the

persons that will make up the team from

the persons eligible for the team and the

success in the recruitment process. The

key to success in any job is to create the

right team in the right time. The conformity

of teams and manager profiles were fig-

ured out with personality inventories and

perception tests and care was taken to

select the new members of the team from

persons eligible for the team.

Personality inventory studies were initiated

once the works regarding the company

structure and job definitions were com-

pleted. Attention and perception tests are

conducted particularly for the employees

in the positions where the attention and

perception are expected to be high, with a

view to identify the size of perception and

management leadership trainings provided

to mid-level managers are carried out to

make sure that the managers of the future

act in accordance with the company’s

profile. Consultancy is received from the

specialist company for the tests and train-

ing. Through to these tests performed on

the persons in critical positions, the internal

operation was intended to run smoothly

and positive results were achieved.

“ It is among our objectives to ensure a high motivation and productivity so

that we can step further as a manpower in the projects we carry out.”

HIGH MOTIVATION

REWARD SYSTEM

PRIORITY FOR DISABLED EMPLOYEES

EDUCATION

+

+

+

34

Staff Reduction

In case there is a need to reduce staff in

some departments instead of dismissing

the employees, it is decided to replace

them to other departments if needed and

suited.

Recruitment and Placement

In 2016, we mainly focused, subsequent

to the ERP, on the recruitment and place-

ment process. The action plan in recruit-

ment and placement processes under-

lined the following principles:

• Consultancy was received from a spe-

cialist company on recruitment and

placement.

• Activities were performed in coordina-

tion with the Corporate Communications

department, with a view to maintain the

position of our company among the

other companies in the market.

• Performance management ensured

that the industrious and highly skilful

persons in our current staff was noticed

and an appropriate reward system was

introduced. The applicants planned

to be employed were told about the

reward system, clearly explaining that

there will be high opportunitesi for their

careers in case of high performance.

• Priority was given to the employment of

the disabled people. All postings regard-

ing the job openings included the phrase

“The applicants with disability are given

the priority as per our company policy”.

• Monthly employment demand charts

were prepared and the recruitment and

placement performance from the Human

Resources department was shared regu-

larly with senior management.

• Necessary actions were taken to cut

down on all the procedures, from the

personnel demand all the way to the

fulfilment of such demand.

• The budgets and staff planning of all

our businesses were reviewed and

updated. Therefore, a great deal of time

was saved by beginning the recruit-

ment process well in advance, rather

than beginning the search after such a

demand arises.

• It was found out that describing the

qualifications for the position needed

accurately would prevent the loss of

time as it would increase the possibility

and reduce the time to find the right

applicant, therefore, some improve-

ments were made in the field. We

made sure that the managers of our

company received relevant training in

this respect and we also informed our

managers by preparing circulars which

would help them to describe the posi-

tion needed correctly.

• The number of applicants interviewed by

phone decreased as the qualifications

for the position needed began to come

in the details as requested. It helped us

both to save time and get less negative

feedback from the applicants following

the interview.

• Special attention was taken not to dis-

criminate between religion, language,

race and gender and to offer equal

career opportunities during recruitment

and for our existing employees.

• In case the job opening is closed, all

applicants interviewed are provided

with a feedback not via mail but by

phone and clearly notified of the rea-

son why they were not eligible for the

position.

Electronic Storage of Documents

The personal files of our employees were

reviewed and any missing document were

completed and electronic copies of such

documents were created in an effort to

make them suitable for transfer into ERP

since the storage of any document, certifi-

4.097 BLUE COLLAR

920 WHITE COLLAR

+

5.0

17E

MP

LOY

EE

S*

*By 31.12.2016, AE employees were 817 white collar and 1284 blue collar, AE’s subcontractors’ employees were 103 white collar and 2813 blue collar. 35

cate, data and information about the qual-

ifications of our employees will be much

easier as we switch to the ERP system.

Position Codes

Some studies were carried out in terms of

our position codes which will be a com-

pany standard and the sorting and classi-

fication of our employees were finalised.

The studies to include the employees of

subcontractors were completed.

Timesheets and Payrolls

Special care was taken to follow up the

timesheets and overtime hours and to

inform the employees in this regard. Our

employees are given sufficient time and

opportunity to check their timesheets and

raise their objection before the payrolls are

prepared.

2017 Objectives

Our plans for 2017 are to make sure that

the parts of our projects, with respect to

human resources, switch to the use of

ERP, and appropriate arrangements with

regards to the cooperation with the head-

quarters are made in the database.

Our next agenda will focus on organizing

psychological support for those suffering

a trauma or willing to leave the job due

to death of relatives or problems experi-

enced within the family. Human resources

will not be involved in this process, privacy

will be observed and the bookings with

the psychologist will be dealt by us only.

YEAR NUMBER OF FEMALE EMPLOYEE NUMBER OF MALE EMPLOYEE TOTAL

2014 68 2.117 2.185

2015 69 2.228 2.297

2016 73 4.944 5.017

%98.5 Male%1.5 Female

DISTRIBUTION BY GENDER

SUPPORT TO EMPLOYEES

36

DISTRIBUTION OF FEMALE EMPLOYEES BY TITLE*

%1.5 Top Management

%7.1 Technician

%10 Senior Management

%21.4 Engineer/Specialist%60 Administrative Staff

%1.9 Top Management

%30.5 Technician

%15.6 Senior Management

%31.9 Engineer/Specialist

%20.1 Administrative Staff

DISTRIBUTION OF MALE EMPLOYEES BY TITLE*

DISTRIBUTION BY EDUCATION*

%70.7 University

%1.3 Master & Doctorate

%4.6 High Schools

%23.4 Primary Education

*White collar employees of AE and AE’s subcontractors as of 31.12.2016 were taken into account.. 37

%4.6 18-20

%12.7 40-50

%47.8 20-30

%31 30-40

%90.3 5 years and under%7.6 5-10 years

% 2.1 10 years and over

%3.9 50+

DISTRIBUTION BY AGE*

DISTRIBUTION BY SENIORITY**

%21.2 Turkey

%45 Indıa

%13.6 Bangladesh

%4.1 Pakistan

%7.2 Others

%8.9 Uzbekistan

THE DISTRIBUTION BY NATIONALITY*

*All employees of AE and AE’s subcontractors as of 31.12.2016 were taken into account.**All employees of AE as of 31.12.2016 were taken into account.38

Iran1

Palestine2

Syria12

Pakistan203

Bangladesh675

Uzbekistan447

India2.257

Turkey1.064

Tajikistan44

Kyrgyzstan62

Romania17

Nigeria14

Russia66

Philippines39

United Kingdom

47

Brazil1

Algeria5

Moldova1

Sudan2

Jordan9

South Africa1

Ireland4

Lebanon1

Ghana2

Ukraine11

France1

Sri Lanka5

Poland1

Yemen1

Australia1

Azerbaijan7

Canada1

Nepal3

UAE1

Egypt6

Iraq1

Afghanistan2

EMPLOYEES FROM

37 DIFFERENT

NATIONALITIES

39

ACTIVITIES IN 2016

INFORMATION MANAGEMENT

Our information management activities for

2016 were outlined below:

ERP “CAN” Project

The ERP project called “CAN” by AE Arma-

Elektropanç Information Management

department continued to be on the top of

the objectives in 2016 as in 2015. Intensive

works were carried out in 2015 and 2016

for the project which the project’s kick off

was in November, 2014. It’s been intended

to move to use the system operation thor-

oughly in 2017 as soon as all the modules

have been transferred to a live environment

in the last quarter of 2016. The installation

of ERP software designed for all branches

of AE and since last quarter of 2016 im-

plementation started at UAE region. It has

been planned to use the system in the

second quarter of 2017.

SAM Certificate

All software are used with a licence at AE

headquarters and branch offices and in the

projects due to data theft, data loss, data

security and other reasons and we were

entitled to get another SAM certificate in

2016, in addition to the one we got in 2015.

Based on “Software Asset Management”, a

licence inspection conducted by Microsoft

with respect to their own software, in our

headquarters and sites.

Office 365

The IT ecosystem today undergoes a rapid

change. It’s now become much easier to

invest in a strong infrastructure at less in-

vestment prices. Microsoft Office 365 sets a

good example in this regard. We can easily

leave the heavy investment components

such as servers, source, long consultancy

times, etc. The products that we can li-

cense with a monthly or yearly contract

lowered the investment amounts while

bringing a higher quality global technology

model. In this context, the project of tran-

sition to Office 365 was started in the last

quarter of 2016 in all branches and sites in

the UAE region. It is planned to complete

the switchover in the first quarter of 2017.

Information Management Help Desk

“Help Desk” service point, launched in the

second quarter of 2015 with a view to min-

imise the difficulties encountered by AE

employees in information technology (IT)

equipment and software usages. It is aimed

to find quick solutions to any potential

problems, continued its activities in 2016

increasingly. We got the opportunity to find

quicker and more efficient solutions as the

requests from the users could be collected

in a single point.

Intranet Network

The domestic intranet network called

“AENET” was updated and improved in

2016. Any information, quality document,

procedures of the disciplines and instant

announcements are to be shared via this

portal within the company were arranged

in a more user-friendly way. In 2017 this

platform will be moved to Microsoft Share

Point.

“ We aim to have an access to the updated data instantly by using our

operations, resources and state-of-the-art technology efficiently, with the

motto “we can’t manage what we can’t measure”.”

ERP PROJECT

HELP DESK

+

+

40

ACTIVITIES IN 2016

QUALITY

AE Arma-Elektropanç has ISO 9001:2008

certificate of Quality Management System

within the scope of MEP works. The effi-

ciency and continuous improvement of our

Occupational Health and Safety Manage-

ment System is monitored regularly through

3rd party external audits conducted by NQA

Turkey.

Our activities for 2016, with respect to our

quality management system are outlined

below:

• In January 2016, an external audit was

carried out at the headquarters and

Turkey projects by NQA Turkey as an

independent 3rd party company. During

this external audit, 2 number of non-con-

formity reports that have been opened

as a result of inspections in the previous

year, were closed out, and only 1 OFI

(Observation of Improvement) Report

was opened for 2016 aimed at improving

the Quality System.

• The results of the external audit was

reviewed by the Top Management, and

continuous development of the system is

achieved by the implementation of final

decisions suggested for improvement.

• The existing internal procedures and

other documents (form, list, sample doc-

uments, construction methods, instruc-

tions etc.) related to Occupational Health

and Safety Management System and En-

vironmental Management System have

been reviewed and 319 documents have

been revised or newly prepared in 2016

for the usage of our employees within

the scope of the Quality Management

System. In this context, the documents

prepared or revised in 2016 were shared

with all employees via AENET. The rele-

vant master list which shows the revision

numbers and dates of the prepared and

revised documents was updated.

• The Quality, environmental and occu-

pational health & safety documentation

related to all other processes (purchas-

ing, project management, project design

etc.) were also reviewed, the necessary

revisions are made and shared with all

AE employees within the scope of the

Quality Management System.

• In 2016, a “Quality Control, Testing and

Commissioning” department was estab-

lished and a manager was appointed,

in order to carry out the quality control

activities in Turkey projects; follow up

that relevant quality control documents

are prepared and used at the site and

ensure that the construction works are

performed in accordance with the speci-

fied method statements.

• As part of continuous improvement

process of AE; the development and

installation work of the ERP “CAN” project

is carried out by the Information Manage-

ment department.

“ It is one of our main duties to complete the job in high-quality requested

by the client at the optimum cost and timely manner.”

41

ACTIVITIES IN 2016

OCCUPATIONAL HEALTH & SAFETY

AE Arma-Elektropanç has OHSAS

18001:2007 Occupational Health and Safety

Management System Certificate within the

scope of MEP works. The efficiency and

continuous improvement of our Occupational

Health and Safety Management System is

monitored regularly through 3rd party external

audits conducted by NQA Turkey.

Our activities in 2016, with respect to our

occupational health and safety management

system are outlined as below:

Identification of Hazards and Risk Assess-

ments

The reports on hazard identification and risk

assessments which were prepared and intro-

duced in 2015, were reviewed by the risk as-

sessment teams at the headquarters and on

all construction sites in Turkey wherever the

activities carried out in 2016, and the changes

were also shared with the employer and AE

project management on sites and AE man-

agement at the headquarters. In order to take

the necessary actions, responsible persons

have been appointed and target dates are

determined, and necessary information are

conveyed to the employees about job-spe-

cific hazards and risks that those may arise

from site activities or due to use of equipment

or workplace environment. The progress in

the action plans created based on the revi-

sion of “Risk Assessment Report” in 2016 is

followed up with the issued reports for the

corrective and preventive actions.

Legal Requirements and Evaluation of

Compliance

Appropriate notifications were made by us

with respect to the employees of the sub-

contractor, whose professional qualifications

were found to be ineligible pursuant to

“Professional Qualifications Board’s Circular

Regarding the Professions Requiring Profes-

sional Qualification Certificate” published in

the Official Gazette dated as 25.05.2015 and

numbered with 29366. Sufficient number of

certified employees are provided to fulfill

the obligation that based on the number of

employees working in very hazardous work-

places shall have a minimum of 10% certified

first aiders.” Renewal times of the existing

certified first aid employees are monitored.

Provision of OHS Staff and Other Resources

We continued to receive professional service

from OSGB (Common Health and Safety Unit)

for the recruitment of the personnel who

will be in charge of occupational health and

safety at the headquarters and in the projects

across Turkey. Our headquarters and cen-

tral warehouse were evaluated as separate

establishments as of 30th November 2016

and therefore separate business registration

numbers were issued by the Social Security

Institution. Since the number of employees

working at the headquarters buildings is less

than 50, our application for the head office

buildings to be included as less dangerous

workplace has been accepted. For this rea-

son, the employment of OHS officer, work-

place physician and health staff was tempo-

LIFE AND WORK SAFETY FIRST

+

“ With the principle of “life and job safety first” and the objective of “zero

accident”, we provide a safe and healthy working environment for our

employees, and we follow and implement new techniques to increase the

productivity of our projects.”

42

rarily discontinued as from 30.11.2016 until

the relevant legal requirement arises. Notifi-

cations of the related personnel to the Min-

istry of Labor and Social Security are made

through the OHS Record and Follow-up

and Monitoring Program. All necessary

equipment related to occupational health

and safety (i.e., scaffolds, mobile cranes, fire

extinguishers etc.), materials such as safety

tape band, barriers, life lines, and personal

protective equipment (e.g. helmets, reflec-

tive vests, safety shoes, safety belts, safety

glasses, welder mask etc. ) are provided in

accordance with the type of the work the

employees carry out in each project.

Occupational Health & Safety Trainings

All employees at the headquarters and in

the projects across Turkey are provided

with a basic occupational safety training

before they start to work. The Basic OHS

trainings topics include “legal rights and

responsibilities, warning signs, and the use

of importance of personal protective equip-

ment”. Besides, OHS technical trainings and

job specific trainings such as working on

scaffolds, use of grinders, working on mobile

scaffold and portable ladders etc. are also

conveyed to the employees. To build OHS

awareness among all employees, daily

on-the-job trainings are performed at each

construction site, special hazards in relation

to the job and the necessary measures to be

taken against these hazards have been de-

scribed to the employees daily basis before

they are starting to work.

Documentation

All OHS documents such as procedures,

instructions, sample documents, forms, lists,

method statements etc. , which are pre-

pared on a corporate basis in AE Occupa-

tional Health and Safety Management Sys-

tem, are revised as deemed necessary and

update versions has been communicated to

all employees through AENET by the Direc-

tor of Quality and Risk Department. The pro-

cedure and relevant forms on OHSAS Haz-

ard Identification and Risk Assessment has

been issued by the Directorate of Corporate

Quality and Risk Department. In addition,

the OHS procedures have been prepared in

regard to the OHS Legal Requirements and

Evaluation of Compliance, and Reporting

and Investigation of Work Accidents and re-

lated forms as per each the said procedures.

We began to work on making the OHS

internal regulations into a booklet which will

be distributed to the employees. 61 OHS

instructions were also issued via AENET to

be used in our projects.

Site Inspections and Internal Audits

The compliance with the requirements

described in the procedures and instructions

issued in our OHS management system is

checked daily by our OHS officers and dur-

ing internal and external audits at our pro-

jects. All nonconformities described in the

site inspection reports which are prepared

daily basis by OHS experts and corrective

preventive actions related to the issues

determined in internal and external audits

are responded and implemented imme-

diately, and it is not allowed to commence

the works before the nonconformities are

closed. Corrective and preventive activities

related to the non-conformities and im-

provement proposals which are determined

in internal and external audits are recorded,

and reported to the management by the

management representative during the pro-

cess of evaluation of the OHS performance

of our project sites.

OHS Monitoring & Measuring

Action plans have been established to

ensure the implementation of preventive

actions related to the measures to be taken

according to the new Risk Assessment

Report issued in 2016, and the non-con-

formities remained from the OHSC board

meetings and followed up with corrective

preventive activity reports.

All the employees who will start work on

our project sites are not allow to work on

sites without their health reports which will

be taken from the workplace physician in

order to confirm they can work in the highly

hazardous workplace. Follow up of health

checks during employment process and

periodical health checks accordingly, are

being ensured by the workplace physician

provided from OSGB (Common Health

Safety Unit) at the headquarters whereas on

project sites are provided by the employers.

To monitor the risk of occupational illness of

our employees and to take necessary pre-

cautions accordingly, the health surveillance

was performed at our headquarters by

means of a mobile health care team sup-

plied from a health institution in May 2016. A

periodical health screening including lung,

ear, eye examinations and blood tests were

conducted and medical anamnesis details

were recorded.

OHS Committees

In the AE’s headquarters, the OHS commit-

tee board meetings were held on a monthly

basis with the attendance of class A OHS

expert and management representative,

OHS board members and employee repre-

sentatives, whereas these meetings were

also held at the sites with the participation

of class A OHS expert, class C OHS experts,

project managers, employee represent-

atives and subcontractors. In 2016, OHS

board assembled 11 times regularly in the

course of the period until our headquarters

were included in the scope of “less danger-

ous workplace” (as of 30.11.2016). In 2016,

OHS board meeting was held 12 times by

AE in our Garanti Bank Pendik Technology

Campus project. In addition, AE project

43

management and OHS officers participated

regularly in OHS coordination meetings

held bimonthly by the employer. OHS board

meetings were held by AE 10 times in Man-

zara Adalar project site and 12 times in Nurol

Life project site. The imlementations and

announcements with respect to the relevant

agenda items and meeting decisions were

shared with all employees and subcontrac-

tors.

Emergency Plans and Drills

Emergency plans prepared in accordance

with the corporate procedure created for

response to emergencies were put into prac-

tice at our headquarters and in our projects,

and all relevant emergency equipment has

been supplied. A total of 21 employees were

set up as emergency response teams at AE

headquarters and an emergency drill was ar-

ranged in accordance with a scenario includ-

ing fire, first aid and evacuation emergencies.

46 employees working in the additional office

building of our headquarters were evacuated

from the building, gathered at the emergency

assembly point. Regarding the outcomes of

relevant emergency drills and suggestions

for corrective actions, the relevant reports

have been prepared and shared with all

emergency teams, the senior management

and all related employees.

Works Executed by Subcontractors

In all our project sites, AE’s subcontractors

were also incorporated in the OHS opera-

tions. The required induction trainings and

job-specific safety trainings were provided to

all employees including those of the subcon-

tractor personnel by the Class A OHS expert,

and the employees were only allowed to

enter to the project site after they received

these trainings. Within the context of AE’s

annual training plan, it was ensured that the

subcontractors participated in occupational

health and safety trainings in general and

technical aspects. Measuring and evaluation

was also conducted in exams conducted at

the end of these trainings and appropriate

participation and achievement certificates

were issued.

Follow up of occupational accidents and

corrective actions

No accident involving death or permanent

injury was experienced in 1 million 851 thou-

sand 750 man-hours in 2016 at Garanti Bank

Pendik Technology Campus project. A total

of 159-working day loss was experienced in

9 work accidents, of which involved 1 tem-

porary injury. 8 of them received medical

attention at the infirmary of workplace due to

sickness. 14 near-miss incident was occurred.

10-working day was lost in 2 work accidents

in Manzara Adalar project site. A total of

10-working day loss was experienced in 3

work accidents in Nurol Life project site, one

of which belonged to the subcontractor. All

work accident reports were prepared and

appropriate notifications were made on the

electronic page of SSI (Social Security Institu-

tion). In the event of work accidents and near

miss incidents, the risk assessment reports

have been reviewed and renewed whenever

necessary. Root/cause analyses were con-

ducted and necessary preventive/corrective

actions were taken for the work accidents

and recorded, with a view to preventing

any potential work accidents in the future.

The work accident statistics of the SSI were

shared with the employees and it was aimed

to raise the awareness of the employees by

giving examples of mortal or seriously injured

work accidents which might be caused by in

case the hazardous situations and risks are

not eliminated.

The scheduled trainings in the annual training

plan in 2016 for headquarters and projects

were carried out as stated in table : 10.6

88

TR

AIN

ED

EM

PLO

YE

ES

44

Training SubjectTraining Duration

(Hour / Person)

Number of

Employees

Total Training

Duration

(Hour / Person)

Trained

Employees

Total Training

Hours

Trained

Employees

(%)

HEADQUARTERS

Basic OHS 4 100 400 70 280 70

Technical OHS 8 100 800 54 432 54

Health 4 100 400 56 224 56

Emergency Teams 2 21 42 15 30 71

First Aid 16 7 112 7 112 100

Total 34 328 1.754 202 1.078

TURKEY PROJECTS

Basic OHS 4 2.093 8.372 1.025 4.100 49

Technical OHS 8 2.093 16.744 1.247 9.976 59

Health 4 2.093 8.372 106 424 5

Risk Assessment 4 - - - - -

Emergency Teams 4 974 3.896 974 3.896 100

Fire Fighting 4 - - - - -

First Aid 16 44 704 44 704 100

Hygiene 8 - - - - -

Heating and Installation 40 693 27.720 693 27.720 100

Machinery Maintenance

and Repairs40 12 480 12 480 100

Building Insulation 40 13 520 13 520 100

Electrical Panel

Supervisor40 543 21.720 543 21.720 100

Air Conditioning 40 109 4.360 109 4.360 100

Rigger 8 9 72 9 72 100

Working at Height 14 71 994 71 994 100

Scaffolding Assembling

& Disassembling and

Scaffolding Inspections

4 - - - - -

Lifting Equipment Oper-

ator40 - - - - -

Toolbox 0,5 2.093 1.046 5.033 2.516 120

Orientation 2 2.093 4.186 607 1.214 29

Total 320,5 12.933 99.186 10.486 78.696

Grand Total 354,5 13.261 100.940 10.688 79.774

45

ACTIVITIES IN 2016

ENVIRONMENTAL AWARENESS

“ Thanks to the measures we take, we carry on our activities as an eco-

friendly company for the protection of the environment. ”AE Arma-Elektropanç has ISO 14001:

2004 Environmental Management System

Certificate within the scope of MEP works.

The effectiveness of our environmental

management system is regularly audited

by the Corporate Quality & Risk Department

Manager at the headquarters, the domestic

and overseas construction sites both in

Turkey and UAE. Besides, external audits

are also conducted by the 3rd party super-

vision company NQA Turkey to monitor

the Integrated Management Systems of AE

for continuous development. Our activities

for 2016, with respect to our environment

management system are outlined below:

Manual

AE Arma-Elektropanç management has

evaluated the Integrated Quality, Environ-

ment and Safety Policy in 2016 and pub-

lished the Environmental Policy and Envi-

ronmental Management System Manual

separately apart from the Integrated QHSE

Policy and Integrated Quality, Environmen-

tal and OHS Manual.

Documentation

Environmental aspects and impacts as-

sessment procedure, waste management

and pollution prevention procedure have

been issued via AENET to all employees.

Additionally, Environmental Monitoring and

Measurement Procedure has also been

prepared by the Corporate Quality & Risk

Management Directorate.

Waste Management

Paper-cardboard, plastic, metal, glass

wastes of our headquarters are collected in

the recycling containers provided from the

local municipality and approximately 2 tons

of recycling waste are segregated from

the garbage waste. The recycling wastes

collected separately are handed over to

the recycling crews of the municipality for

recycling, in an effort to help reduce the

amount of waste to be released into envi-

ronment. In February 2016, our corporate

quality and risk department manager (En-

vironmental Engineer, MSc) participated in

the environmental legislation refreshment

training organized by TÜÇEV on behalf of

the Ministry of Environment and Urbanisa-

tion and her Certificate on Environmental

Officer became valid until 26.02.2020.

Since AE was considered as releasing posi-

tion on the market, the amount of packag-

ing materials procured from the suppliers

was determined in 2016. In 2017, the pack-

aging waste will be recorded electronically

in the data system of the Ministry of Envi-

ronment and Urbanisation, ensuring that

packaging waste are taken under control.

The hazardous waste which may be pro-

duced at the headquarters are collected

in the appropriate containers, separately

from other household garbage. The hazard-

ous wastes are continued to be collected

during 2016 as the waste did not reach to

the minimum quantity. The non-hazardous

recycling waste and hazardous wastes

produced at our project sites are trans-

ferred to the temporary storage areas or to

the designated locations, and disposed of

by the employer. An application was made

to Istanbul Cosmopolitan Municipality for

Medical Waste Acceptance Certificate in

order to collect any medical waste sepa-

rately, which may potentially be generated

in the infirmary of headquarters, and the

Medical Waste Acceptance Certificate was

obtained on 18.03.2016.

Monitoring and Measurement

The stack gas emission which may be

emerged from the natural gas boiler used

at the headquarters for heating purposes

was measured by an accredited laboratory

and it was confirmed that the legally ad-

missible limits were not exceeded.

+

+

46

ACTIVITIES IN 2016

CONTRIBUTION TO SOCIETY

AE Arma-Elektropanç carrying out busi-

ness in different regions of the world and

becoming a successful player in inter-

national arena in MEP contracting, we

position the issues such as the correct

and efficient use of resources, energy

efficiency, environment and sustainability,

which are important for the world and

mankind, in the centre of our activities in

all countries we operate and regard cre-

ating benefit and awareness in these sub-

jects among our responsibilities, as part of

our expertise.

On the other hand, we produce projects

that will create an added value in the sub-

jects of education, social development

and protection of environment and we

support the existing projects underway,

with respect to MEP contracting business

in which we have knowledge, experience

and expertise, by aiming at making a sus-

tainable contribution to our country eco-

nomically and socially.

We pay attention to the criteria of being

“long-term” in the projects that we fiction-

alise and support with a view to create

sustainable effects and integrate our

employees, shareholders and non-gov-

ernmental organisations into the projects

of our organisation as well. We are in the

opinion that it is of vital importance to

encourage multi shareholder dialogue and

sharing between multiple actors, in social

responsibility activities that will create a

benefit and social difference.

Our approaches and activities in relation to

contribution in the community are outlined

below:

“Construction of the Future” continues at

full steam

We launched the social responsibility

project “Building the Future” in October,

2015 in cooperation with Turkish Educa-

tion Foundation (TEV), one of the long-

est-established and leading foundations in

Turkey, in an effort both to carry the sector

that we serve with a sustainable social

responsibility conception to higher levels

in terms of human resources and to con-

tribute to the community.

We established AE Arma-Elektropanç

Scholarship Fund within the foundation

by signing a cooperation with TEV, within

the scope of our social responsibility

project “Construction of the Future”, in

order to help train the successful youth

who receive education, to be employed

in our sector. We keep on providing

scholarships through this fund, to the suc-

cessful students who study in electrical,

electrical-electronic engineering and me-

chanical engineering departments of the

leading technical universities in Turkey but

need support due to financial problems.

Growing bigger and bigger thanks to the

contributions primarily from our internal

shareholders, our fund will further expand

in the future with the contributions of all

our shareholders so as to deliver more

scholarships.

“ Being one of the leading companies where we operate, we aim to create

a real value and make difference as one of our priorities.”

+

+

CONSTRUCTION OF THE FUTURE

MENTORSHIP

48

We invest in the future with the strength

we get from mentorship

Mentorship stands out a mandate that we

pay particular attention in our ongoing

project. While our company managers

provide mentorship in order to prepare the

students included our social responsibility

project “Building the Future” for their ca-

reers, we include the students who may

have any demand, into the mentorship

activities, as well. It is a rewarding experi-

ence for our managers as it is a source of

happiness for us to get the opportunity to

guide the students who are successful but

lacking sufficient experience. Our manag-

ers lead the way and guide the university

students targeting a career in the con-

struction sector, by participating in the

activities organised at different universities,

knowing that our sector can only further

thrive, thanks to the managers who get a

decent education in this field.

As AE, we attach importance to every

stage of education and continue non-stop

providing the different supports that we

offer in order to secure equal conditions in

education and to make sure that all stu-

dent can take the advantage of technolog-

ical resources as part of the modern world.

Our project “Beware!There is Life in the

Shelter!” keeps continuing

As AE, another social responsibility project

that we launched in 2015 was the project

called “Beware!There is Life in the Shelter!”

setting out with the fact that the cities we

live in is a whole with their people, forests

and animals, we sought to improve the en-

vironment, in the least, around the animal

shelters in the large cities of Turkey, which

are not in good shape, and the conditions

around the open spaces where the ani-

mals live all together and to make these

shelters more liveable for the abandoned

animals. In this context, our cooperation

processes with both the municipalities and

leading NGOs, with respect to our project

called “Beware!There is Life in the Shelter!”

began in 2015. It is among our objectives

to maintain the ongoing project of 2016,

more actively in 2017. With this project,

we wish to show the public what MEP

contracting which is our area of expertise

means as we renovate the shelters that

are not in good condition while we point

out the living conditions of our animal

friends in the cities. We also do our very

best not to leave our dear friends alone in

the wild, by building “mini shelters” for the

stray animals inhabiting the open spaces

like forests, where they can have access to

water and food.

49

ACTIVITIES IN 2016

ETHICAL POLICY

As a member of TEID, we undertake below

articles:

• Conduct our business in compliance

with any and all applicable local laws,

including, primarily, the Constitution of

the Republic of Turkey, and any and all

international treaties, conventions,

• agreements and regulations, to which

the Republic of Turkey is signatory.

• Build our business on ethical principles

• Endeavour to earn a reputation for

integrity, competence and excellence

• Introduce a transparent disclosure pol-

icy for the company’s operations

• Protect and encourage fair competition

• Have due regard for labour law includ-

ing health and safety and support the

fair employment of young, women and

physically challenged individuals

• Prevent any form of corruption

• Consider integrity as our core values

in all our business processes and busi-

ness relations.

• Put our efforts towards making busi-

ness ethics constitute the very funda-

mental of our corporate culture.

• Provide our employees with the aware-

ness, rules and practices to ensure

avoidance of conflicts of interests.

• Maintain equal distance to any and all

public offices and authorities, admin-

istrative entities and political parties

without any expectations of interest

through the course of our operations

and actions.

• Support endeavors contributing to eco-

nomic and social development.

• Prohibit our employees from accepting

and giving away presents which may

influence their or counter party’s impar-

tial decision making and conduct.

• Develop practices to disseminate

above principles, concepts and prac-

tices to all parties within our sphere of

influence, including our business part-

ners, contractors and suppliers.

• We further declare our support to the

10 principles constituting the essence

of the United Nations Global Compact

and represent our commitment to take

such principles into consideration in the

organization of our managerial struc-

ture and the development and imple-

mentation of our corporate policies.

“ We care about an open, honest, reliable and ethical communication, in

order to have long-term and sound relations with our employees, business

partners and social environment at all times.”

50

FINANCIAL STATEMENTS

KEY INDICATORS

SUMMARY OF BALANCE SHEET (TL) 2014 2015 2016

Current Assets 297.097.069 460.467.262 743.608.683

Long-Term Assets 13.606.059 21.870.743 25.072.795

Total Assets 310.703.128 482.338.005 768.681.478

Short Term Liabilities 172.150.541 289.979.198 606.422.057

Long Term Liabilities 42.194.111 91.525.083 27.704.049

Equity 96.358.476 100.883.724 134.555.373

Total Equity and Liabilities 310.703.128 482.388.005 768.681.478

SUMMARY OF INCOME STATEMENT (TL) 2014 2015 2016

Total Revenue 386.935.299 459.694.858 797.106.592

Gross Profit 49.511.768 55.885.819 101.603.316

EBIT 23.924.048 28.980.866 52.159.384

Net Profit / (Loss) of the Period 3.766.978 8.948.000 36.770.189

KEY RATIOS 2014 2015 2016

Current Ratio = Current Assets / Short Term Liabilities 1,73 1,59 1,23

Leverage Ratio = Total Liabilities / Total Assets 0,69 0,79 0,82

Gross Profit Margin 12,80% 12,16% 12,75%

EBIT Margin 6,18% 6,30% 6,54%

Net Profit / (Loss) Margin 0,97% 1,95% 4,61%

54

TOTAL REVENUE (TL)

NET PROFIT OF THE PERIOD (TL)

TOTAL REVENUE DISTRIBUTED BY COUNTRIES OF OPERATION (TL)

800M

40M

600M

30M

400M

20M

200M

10M

0

0

2014

2014

38

6.9

35.

29

9

2015

2015

459

.69

4.8

588

.94

8.0

00

3.7

66

.978

2016

2016

797.

106

.59

23

6.7

70.1

89

Turkey 108.420.130

Russia 91.733.293

Algeria 6.928.844

Azerbaijan 5.603.245

UAE 570.416.628

United Kingdom 14.004.452

55

AE ARMA-ELEKTROPANÇ ELECTROMECHANICAL INDUSTRY ENGINEERING CONTRACTING AND TRADE INC.

Fulya Mah. Vefa Deresi Sok. No: 11, 34394 Şişli - İstanbul / TURKEY

Tel: +90 212 275 54 84 - Fax: +90 212 274 06 41

[email protected]

www.arma-elektropanc.com

AE ARMA-ELEKTROPANÇ ANNUAL REPORT 2016...AE ARMA-ELEKTROPANÇ AT A GLANCE Company Profile 02...

Documents

Transcript of AE ARMA-ELEKTROPANÇ ANNUAL REPORT 2016...AE ARMA-ELEKTROPANÇ AT A GLANCE Company Profile 02...