ENERGY
AKDENİZ ELECTRICITY DISTRIBUTION INC.
Akdeniz Electricity Distribution Inc. was completely privatized on 28.05.2013 started to offer services under the ownership of Cengiz Holding-Limak Holding -Kolin Construction Joint Venture. 

Akdeniz Electricity Distribution Inc. serves in the west Mediterranean region. Our company provides electricity distribution service in Antalya, which is the gateway of Turkey to the world and capital of tourism, Isparta, which is famous for carpet and rose and Burdur, which is known for its lakes.

Akdeniz Electricity Distribution Inc. provides service for total 2.833.206 thousand people as follow: 2.158.165 in Antalya, 417.774 in Isparta and 257.267 in Burdur.

Akdeniz Electricity Distribution Inc. distributes electricity ofabout 7,8 billion kWh for about 1.7 million subscribers in an area of about 36.486 m2. Akdeniz Electricity Distribution Inc. holds market share of 4% in the field of electricity consumption. Active customers of Akdeniz Electricity Distribution Inc. amountto 1.670.859 as of the end of 2013. 352 personnel in total work at Akdeniz Electricity Distribution Inc. as of February 2014.
AKKÖY ENERGY INC.
Akköy Energy Generation Inc. was established in 1999 in order to execute the Akköy I and Akköy II hydroelectric power plant (HEPP) projects which are among the important energy projects undertaken by the private enterprise in Turkey and it has committed to carry out installation and commissioning of these power plants within 49-year license period and operation of the formers until the end of the license periods. 

Kolin Construction Tourism Industry and Trade Inc. is the main partner, with share rate of 97%, of Akköy Energy Generation Inc. which has reached installed power of 337 MW in total with Akköy I HEPP which was commissioned in 2008 and has an investment amount of 120 million US Dollars and Akköy II HEPP which was commissioned in 2012 and has an investment amount of € 312 million. 

The 37-year professional experience, engineering know-how, market experience and its well-established trust in the market have become the main thrusting force for Akköy Energy as other companies which are included in the Group and get involved in other sectors. The most important advantage of Akköy Energy Generation Inc. in comparison with the other companies of the electricity market is that Kolin can establish and operate costeffective but productive facilities due to competent and experienced personnel, professional experience, know-how and technological infrastructure as well as the strong financial structure. Furthermore, the fact that Akköy Energy Generation Inc. uses domestic water resources to generate electricity instead of the imported energy resources which pose serious pricing risks and ambiguities plays a decisive role to protect competitive power in the market. 

Since Akköy Energy Generation Inc. holds a generation license which includes use of renewable energy resource in the projects it can sell the electrical energy generated within the framework of the license to the followings: 
• Market participants as far as it is included in the YEK Support Mechanism which is operated by the TEİAŞ Load Dispatch Center based on the YEK Support Unit Price established as 7,3 cent/kWh in the Law on Utilization of Renewable Energy Resources to Generate Electric Energy no 5346, 
• Wholesale companies, retail sale companies and free consumers based on independent bilateral agreements, 
• Day Ahead Market and Balancing Market within the framework of the Balancing and Settlement Regulation. 

In 2013, electricity consumption and electricity generation were respectively 245,48 billion kWh and 239,29 billion kWh in Turkey and 654 million kWh was generated by Akköy Energy Generation Inc. in the same year. Share of Akköy Energy Generation Inc. in the electricity generation market of Turkey was 0,28%. 

Electricity generation amount is dependent on the water income and Akköy Energy Generation Inc. targets to reach the optimum profitability. Electricity consumption of Turkey is estimated to be 256,66 billion kWh in 2014. 

Akköy I HEPP 
Constructed on Harşit Brook of Gümüşhane Province, Kürtün District, Akköy I Dam and HEPP has roller-compacted concrete (RCC) body of 54 m high, an energy tunnel of 12,5 km long and 3 Francistype turbines of vertical axis (34.5 MWm/33.98 MWe) inside. 

Commercial generation activities were started in the first and second units of Akköy I HEPP as of 19 August 2008 and in the third unit as of 27 November 2008. Following the commercial operation date, net electric energy which was generated annually and provided to the national network is as follows: 20,15 million kWh in 2008, 317,40 million kWh in 2009, 303,31 million kWh in 2010, 236,73 million kWh in 2011, 232,15 million kWh in 2012 and 239,35 million kWh in 2013. With Akköy I Cansuyu HEPP for which sap of the Akköy I HEPP Project will be used, an additional facility will be established with installed power of 0.520 MW and energy generation of 4.261.000 kWh. An application was made to EPDK to obtain preliminary license and it is planned to launch the energy generation within the year. 

Akköy II HEPP 
Akköy II HEPP Project covers Aladereçam, Gökçebel and Yaşmaklı Dams. The energy generation is executed at the Akköy II Hydroelectric Power Plant which is constructed next to the Akköy I HEPP and whose service block is adjoining to the Akköy I HEPP to be used jointly. Aladereçam Dam is located on 1.790 m thalweg level on Karaovacık Brook of Gümüşhane as a roll-compacted concrete body of 56 m high. Water of the dam is transferred to the power plant of 7-MW installed power through an energy tunnel of 4,7 km long, with internal diameter of 3,20 m, surge shaft and penstock of 455 m long with diameter of 1,50 m. Water-holding capacity of Aladereçam Dam was calculated as 13,934 hm3 and the water used there is firstly directed to Aladereçam HEPP and after it passes through the turbines, it is discharged outside the power plant into the Gökçebel Dam reservoir. 

Gökçebel Dam is located on 1.491 m thalweg level on Gelavara Brook and constructed in rock-filling type with front concrete cover of 140 m high. Water holding capacity of Gökçebel Dam was calculated as 94,78 hm3. This dam is connected to the Yaşmaklı Dam reservoir through a transfer tunnel of 6.651 m in length and 4 m in diameter. Yaşmaklı Dam is located on 1.527 m thalweg level on Gavraz Brook and constructed in concrete weight type of 103 m high. Water holding capacity of the dam was calculated as 17,68 hm3. The water to be collected in the reservoir is directed to the surge shaft through an energy tunnel of 4.002 m long with internal diameter of 4 m and then to Akköy II Hydroelectric Power Plant through a penstock of 3.688 m long, with diameter of 2,70 m and net head of 1.220 m. 

Akköy II HEPP Project is ranked as the first in Turkey and the fourth in the world with the net head of 1.220 m high. This high head, and accordingly the pressure, ensures obtainment of specific water consumption of about 0,33 m3/kWh which puts forward quite economic operation conditions. 

The power plant is operated with two Pelton-type turbines of vertical axis with installed power of 116,79 MW (233,58 MW in total). After the Akköy II HEPP was put into operation, total nstalled power of Akköy Energy Generation Inc. reached 337 MW. 

Provisional acceptance was made in June 2012 and generation activities were started at Akköy II HEPP which generated electric energy of 413,97 million MW in 2013. 

Aiming to use water which is our most important domestic and renewable resource, Akköy I and II Projects, on the one hand, contribute to reduce external dependence in the field of energy and create employment and on the other hand, meet everincreasing energy needs of our industry with environmentallyfriendly energy resources. 

In addition to being the first investment of Kolin in the energy sector, Akköy I and II Projects are also very important cornerstones which put forward engineering infrastructure and financial power of Kolin. The advantageous unit investment costs which arise from the know-how, experience and technical means of Kolin in these projects and unit operation costs minimized through its engineering power will provide the Kolin Group of Companies to gain an important place in the market in the field of electric energy as well and create significant added value. An application was made to EPDK for Aladerçam HEPP, the subcomponent of the Akköy II HEPP Project. Installed power and energy generation of this power plant are respectively 7.56 MW and 18.200.000 kWh.



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ALBE ENERGY INC.
Yalnızardıç Dam and Berat Dam which are among the current hydroelectric power plant projects of the company are located in Antalya Province and have installed power of 33 MW and energy generation of 86 GWh.
Yaprak HEPP, another project, is also situated within the bordersof Antalya Province and has installed power of 9,3 MW and annual energy generation of 29 GWh.

Energy generation was started in 2013 at Yaprak HEPP and also construction of the Yalnızardıç Dam and Berat HEPP was launched in the same year.

Construction works of the Yalnızardıç Dam and Berat HEPP are foreseen to be completed in April 2015.
BOĞAZİÇİ ELECTRICITY DISTRIBUTION INC.
Privatization procedures were completed on 28.05.2013 for Boğaziçi Electricity Distribution Inc. and started its activities under the Joint Venture of Cengiz Holding, Limak Holding and Kolin Construction. 

Boğaziçi Electricity Distribution Inc. which distributes electricity to European Side of İstanbul, among the most popular cities of  Turkey and world, carries out distribution activities of 24 billion kWh electricity for about 4 million subscribers on an area of 3.573 km2. Boğaziçi Electricity Distribution Inc. 

(BEDAŞ) is like flagship of the sector with the market share of 13%. Network rehabilitation investments which were made in 2013 about the electric distribution continue intensely in 2014 as well. Besides the network rehabilitation investments, BEDAŞ increases it service quality even more with the investments in the field of human resources, training, research and development, computer technologies and software. 

Total of active customers of Boğaziçi Electricity Distribution Inc. is 4.041.790 as of the end of 2013. 705 personnel work for Boğaziçi Electricity Distribution Inc. as of January 2014.
CLK AKDENİZ ELECTRICITY RETAIL SALE INC.
Following the privatization of Akdeniz Electricity Distribution Inc. on 28.05.2013, CLK Akdeniz Electricity Retail Sale Inc. started to provide service under the Joint Venture of Cengiz Holding, Limak Holding and Kolin Construction after the electric distribution companies were separated by a legal requirement in terms of distribution and retail sale activities as of 01.01.2013 pursuant to Electricity Market Law no 4628 article 3 and Communiqué Concerning Factors Subject to Regulation within the context of Revenue and Tariff Regulation and Principles Regarding Reporting article 39. 

Following the separation, Akdeniz Electricity Distribution Inc. undertook the distribution activities while CLK Akdeniz Electricity Retail Sale Inc. started to perform retail sale activities as of 1 July 2013. Our company has been assigned to sell electricity, over the retail sale tariff, to non-free consumers, customers who earned the right to become free consumers and want to exercise this right and the free consumers as the final source supplier, who are located in the region of Akdeniz Electricity Distribution Inc. as its area of activity covers Antalya, Burdur and Isparta, within the framework of the authorities granted by the Energy Market Regulatory Board.

The customers who are located outside its activity area and in other regions of Turkey and have earned the right to become free consumer are presented the chance to become customers of CLK Akdeniz Electricity Retail Sale Inc. Having been serving about 1,7 million customers, our company keeps working to extend its portfolio. 

Our company aims to explain the ever-developing concept of Free Consumer to its customers and become leading in the market and it goes ahead soundly based on these targets. 

As CLK Akdeniz Electricity Retail Sale Inc. which serves to its customers with 63 personnel; advantageous pricing offered to the customers in 2013, infrastructure activities which prevent long queues in our enterprises and our customer-centered working approach will continue in 2014 incessantly as well in order to make our vision real.
CLK BOĞAZİÇİ ELECTRICITY RETAIL SALE INC.
CLK Boğaziçi Electricity Retail Sale Inc. started its activities under the Joint Venture of Cengiz Holding, Limak Holding and Kolin Construction following the 100% share transfer on 28.05.2013. As of 1 July 2013, Boğaziçi Electricity Distribution Inc. undertook the distribution activities while CLK Boğaziçi Electricity Retail Sale carries out the retail activities. 

CLK Boğaziçi Electricity Retail Sale Inc., as the final source supplier, provides electric sale and post-sale service to the customers who benefit from distribution services of BEDAŞ in the European Side of İstanbul. 

Subscribers who earned the right to become free consumers and located outside the European Side of İstanbul and in other regions of Turkey are presented the chance to become customers of CLK Boğaziçi Electricity Retail Sale Inc. CLK Boğaziçi Electricity Retail Sale Inc. sells energy of 16.320.401.582 kWh to about 4 million customers with 267 personnel. Serving 8% of the country, our company has a leading position in the sector with the number of its customers and the amount of the sold energy. 

As CLK Boğaziçi Electricity Retail Sale Inc. which created customercentered approach, in 2013, through infrastructure activities to increase customer satisfaction and service quality and marketing/ sale activities to ensure advantageous prices for the customers will continue this approach incessantly in 2014 as well.
CLK ÇAMLIBEL ELECTRICITY RETAIL SALE INC.
Following the legal regulation which requires separation of distribution and retail sale activities as of 01.01.2013, CLK Çamlıbel Electricity Retail Sale Inc. started its services under CLK Energy Investment Inc., After the legal separation decision was taken in 2012, Çamlıbel Electricity Distribution Inc. undertook the distribution activities while CLK Çamlıbel Electricity Retail Sale Inc. carries out the retail sale activities as of 1 January 2013.

Our company has been assigned to sell electricity, over the retail sale tariff, to non-free consumers and customers who earned the right to become free consumers as the final source supplier, who are located in the region of Çamlıbel Electricity Distribution Inc. as its area of activity covers Sivas, Tokat and Yozgat, within the framework of the authorities granted by the Energy Market Regulatory Board (EPDK). The customers who are located outside its activity area and in other regions of Turkey and have earned the right to become free consumer are presented the chance to become customers of CLK Çamlıbel Electricity Retail Sale Inc. Having been serving 731.742 customers with 69 personnel and selling energy of 2.330.227.397 kWh, our company keeps working to extend its portfolio.
CLK ULUDAĞ ELECTRICITY RETAIL SALE INC.
Following the privatization of Uludağ Electricity Distribution Inc. on 01.09.2010, CLK Uludağ Electricity Retail Sale Inc. started to provide service under the Joint Venture of Cengiz Holding, Limak Holding and Kolin Construction after the electric distribution companies were separated by a legal requirement in terms of distribution and retail sale activities as of 01.01.2013 pursuant to Electricity Market Law no 4628 article 3 and Communique Concerning Factors Subject to Regulation within the context of Revenue and Tariff Regulation and Principles Regarding Reporting article 39. 

Following the separation, Uludağ Electricity Distribution Inc. undertook the distribution activities while CLK Uludağ Electricity Retail Sale Inc. started to perform retail sale activities as of 1 January 2013. 

Serving throughout Turkey, in particular Bursa, Balıkesir, Yalova and Çanakkale of the Marmara Region, CLK Uludağ Electricity Inc. is final source supplier of all customers who do not purchase electricity from different supplying firms. We offer the continuous and environmentally friendly electric energy to our customers on a cost-effective basis; provide solutions with our specialist and strong teams and keep our activities with all administrative and technical infrastructures. 

Our company which meets 80% of the energy used in the region, sold electricity of 7.918.556.831 kWh to 2.407.941.000 customers in 2013. The call center works 7/24 to respond any and all demands and problems of our customers about the electricity. Our firm maintains its activities to provide more qualified services during and after the retail sale contract and it aims to offer the environmentally friendly electric energy to the customers on a continuous and cost-effective basis.
CLK ENERGY PARTNERSHIP ELECTRICITY WHOLESALE INC.
It was established in 2011 under the Joint Venture of Limak Holding, Cengiz Holding and Kolin Construction Inc. and started its activities by obtaining Wholesale Electric License as per the Electricity Market Law no 4628. Aim of CLK Energy Partnership Electricity Wholesale Inc. is to offer the electric energy which is generated in a qualified, continues and environmentally friendly manner to our customers in a cost-effective manner.
CLK ENERGY INVESTMENT INC.
With the affiliated Akdeniz, Boğaziçi, Çamlıbel, Uludağ Electricity Distribution and CLK Retail Sale Companies as well as the Wholesale Company; CLK Energy Inc. provides electric distribution and retail sale services in four regions and in 11 provinces for 9 million subscribers. The company is among the leading groups
ÇAMLIBEL ELECTRICITY DISTRIBUTION INC.
Privatization procedures of Çamlıbel Electricity DistributionInc. were finalized on 31.08.2010 and the company startedits activities under Kolin Construction Tourism Industry and Trade Inc., Limak Investment Energy Generation Services and Construction Inc. and Cengiz Holding Inc.
Being active in Sivas, Tokat and Yozgat, our company obtained distribution license from the Energy Market Regulatory Board and distributes electricity to about 732 thousand active subscribers.

Our company distributed 2.471.240 MWh energy in 2013 and achieved growth of 2,3% in the distributed energy in comparison with 2012.

YEARS

Amount of the Distributed Energy (MWh)

SİVAS

TOKAT

YOZGAT

TOTAL

2012

1.145.578.848

631.111.789

636.211.951

2.412.902.589

2013

1.191.678.623

640.566.199

638.995.546

2.471.240.368



Network rehabilitation investments which were made in 2013 about the electric distribution continue intensely in 2014 aswell. The service quality will be improved even more with theinvestments in the field of human resources, training, computer technologies and research and development.

342 personnel in total work for Çamlıbel Electricity Distribution Inc. as of the end of 2013 and 1.094 personnel work as well within the framework of the service procurement.


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ESGAZ URBAN NATURAL GAS DISTRIBUTION TRADE INC.
As an affiliated company of Kolin Group of Companies, ESGAZ Inc. has been carrying out natural gas distribution activities within urban area of Eskişehir since 2004. The company meets about 3% of the domestic natural gas consumption demand in Turkey. 

Having adopted the principle of providing maximum service with minimum resource without sacrificing quality, the company is among the most productive companies in the natural gas distribution sector. With its projects and investments performed with experienced managers and personnel, it helps extend the use of natural gas on the one hand and ensures life and property security of the subscribers by being sensitive about the use of safe gas on the other hand. 

Primary activities of 2013 
Total trade volume of natural gas of Esgaz Inc. was 687 million sm3 in 2013. 266 million sm3 and 45.4 million sm3 of this amount were respectively delivered to subscribers and free consumers; the remaining 375.6 million sm3 was transported only. On the other hand, 19.861 BBS new subscribers were registered in 2013 and total number of the subscribers reached 343.672 BBS at the end of 2013. 

In 2013, infrastructure investments continued in Çifteler and Mahmudiye Districts which were newly included in the distribution region. To this aim, PE main line of 17.110 meters, PE service line of 14.350 meters, steel line of 3,918 meters, 1.603 service boxes and 2 region regulators were mounted. Total cost of the executed infrastructure investments is TL 4.714.780,00 VAT excluded. 

On the other hand, current customers located in Kırka, Mahmudiye and Çifteler Districts, newly included in the distribution region, were started to be provided with the transfer service by Esgaz Inc. as of February 2013. Stations which are situated in these regions and belonged to BOTAŞ before this service were taken over by Esgaz Inc. in return for TL 2.857.000,00 VAT excluded. 

Esgaz Inc. holds ISO 9001 Quality Management, ISO 14001 Environmental Management and OHSAS 18001 Occupational Health and Safety Certificates. 

With the high tax amounts, Esgaz Inc. is among the Corporate Tax Champions of Eskişehir Province and consequently this high added value contributes to both Eskişehir and national economy. The company was ranked as the 5th among the corporate tax payers of Eskişehir in 2012. 

A pioneering step from Esgaz Inc. 
With its 16-year natural gas experience, Eskişehir is one of the Turkish provinces which met with the natural gas the earliest. However, both the natural gas network and the internal installations used by the subscribers are quite old, which requires periodic control of the relevant network and internal installations. In this regard, Esgaz Inc. took the lead among the distribution companies and started periodic control of the internal installations of the subscribers in order to ensure safe gas use. 

Within the framework of this project, the public was informed through local press, District Governorships and Consumer Associations. Later on, starting from the oldest areas where the use of natural gas goes back to the farthest, necessary plans were made and informative meetings were held for the subscribers of the relevant regions to explain sensitivity and necessity of the problem.

Due to interest and positive approach of the subscribers, internal installations of about 5.200 subscribers were adapted to the technical standards through both device replacement and installation revision in 2013. 

It is planned to continue the relevant site works which started in 2012 in the years ahead as well in order to ensure safe gas use.


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ETKİ PORT MANAGEMENT NATURAL GAS IMPORT AND TRADE INC.
Procedures regarding LNG Storage and Gasification Terminalinvestment which is planned to be established in Aliağa District of İzmir by Kolin Group of Companies and for which a license application was made to EPDK are carried out by Etki Port Management Natural Gas Import and Trade Inc.

Planned as the third biggest LNG storage and gasification terminal, the facility is envisaged to have LNG storage capacity of 280.000 m3 and gasification capacity of 6,3 billion m3 at the same time. When this project is realized, a new natural gassupply point will have been established for Turkey and it will alson contribute to security of supply.

Procedures concerning execution of the investment before EPDK and other institutions also continued in 2012 and the EPDK delivered a Conforming Decision for the project on 14.08.2012.

EIA works were completed in 2013 and the EIA Report was finalized on 09.07.2013. Following the completion of the relevant processes, EIA Positive Certificate will be obtained and license will be received from EPDK for the project whose construction plans have been developed to a great extent. 


HİDRO-GEN ENERGY IMPORT-EXPORT AND DISTRUBITION TRADE INC.
Hidro-Gen Inc. was founded on 14.09.2007. Royalty operation of Thermal Power Plant of the Deniş II, Evciler, Kozluören andTürkpiyale reserves which are located on the site with permit noS:34714 (İR4168) within the borders of Manisa Province, Soma District owned by Turkish Coal Enterprises (TKİ) was awarded to Hidro-Gen Inc. and the relevant contract was concluded by the parties on 03.10.2012.

Duration of the contract signed with TKİ is 30 years as of commissioning date of the power plant. According to the contractual provisions, Hidro-Gen will establish a thermal powerplant of minimum 450 MW within 6 years.

Since the royalty contract was signed, EIA Positive Certificate has been obtained from the Ministry of Environment and Urbanization. Electric Generation Pre-License was also obtained from the Energy Market Regulatory Board (EPDK). In order to expropriate the real estate which may be needed for Soma Kolin Thermal Power Plant, Public Interest Decision was taken by EPDK on 26.12.2013.

Following the feasibility studies performed by Kolin Group,capacity of the thermal plant was increased to 510 MW from 450 MW. Within this framework, main power system of Soma Kolin Thermal Plant which ensures electricity generation will be composed of 2 fluidized-bed boilers, 2 steam turbines and generator set. Gross installed power of each unit is planned as 255 MW. Within this configuration, Boiler was purchased from Foster Wheeler Firm and Turbine-Generator were purchased from Siemens Firm. Production planning activities still continueon the mining sites.
IŞIKSU ENERGY GENERATION AND TRADE INC.
Established by Kolin Group of Companies on 07.02.2008 in Ankara, the Company applied to EPDK for license in order to establish and operate a natural gas cycle plant of 430 MW installed power in İzmir, Aliağa District, Çakmaklı Village.

Preliminary conformity certificate was obtained from EPDK; EIAworks required by the Ministry of Environment and Urbanization were completed and EIA Positive Certificate was obtained on25.06.2013.

Assessment period still continues before EPDK; an importantprogress was made concerning the Construction Plan and it is expected to obtain the Pre-License within the short period of time.
İZMİRGAZ URBAN NATURAL GAS DISTRIBUTION TRADE INC.
İzmirgaz Inc. was born from the partnership of Kolin and Türkerler Group. It is the only firm authorized to carry out the distribution and transport of natural gas through local pipeline network within the “Distribution Region” of İzmir and Tire as allowed by the license obtained from EPDK and it has been performing intra-city natural gas distribution activities for 9 years. 

With the natural gas consumption of 2,7 billion Sm3 in İzmir during 2013, İzmirgaz had a share of 5,8% in natural gas consumption of overall Turkey. 

With its investments and active marketing activities, the company provided the natural gas to the disposition of about 925 thousand potential subscribers and reached subscribers equal to 474.798 houses (BBS) in total by achieving the targeted number of subscribers in 2013. “Internal Installation and Service Line Certificate” was awarded to 497 firms in order to provide the subscribers with the internal installation transformation service. 

As of the end of 2013, İzmirgaz provided distribution services for 4.525 free consumers in total which include 334 industrial facilities (150 of them are located within the Organized Industrial Zone), 2.794 commerce houses, 959 official offices and 25 customers for whom transfer procedures were made.

İzmirgaz is ranked as the 3rd in overall Turkey as the natural gas transfer potential and reached the following transfer figures at the end of 2013:


Subscriber (House)

253.537.468 Sm3

Free Consumer (İzmirgaz)

306.008.625 Sm3

Transport

2.131.037.311 Sm3

Total

2.690.583.404 Sm3




The second most intensely industrialized region of Turkey, İzmir is also ranked as the 2nd in meeting export and import rates. Use of natural gas is inevitable generalized in the cities where industry and export have been developed. Therefore, İzmirgaz will always remain in the first ranks as the natural gas transfer potential. 

İzmirgaz holds the ISO 9001:2000 Quality Management System, ISO 14001 Environmental Management System and OHSAS 18001 Occupational Health and Safety Certificate as of 2007 and ISO 10002 Customer Satisfaction certificate as of 2013. 

Investments and Projects of 2013 
As of the foundation in December 2005 and until the end of 2013, investment of TL 269.974.811 was made in total by İzmirgaz; PE line of 2100 km, steel line of 410 km and 98 thousand service boxes were mounted. It aims to increase the number of RMS/A, which was 19 at the end of 2013, to 21 in 2014. 102 regional regulators were mounted and put into operation all over the city. In addition to the infrastructure works which aim to generalize the natural gas use throughout the city, natural gas marketing strategies were developed and important achievements were made under such subscriber categories as industry, commerce house and school. In 2013, Project, Site Management Systems and SCADA projects were executed or developed. Thus, instant information flow could be provided in the company. Furthermore, daily natural gas consumption amounts can be estimated with scientific methods based on the Demand Estimation System. 

One of the most important contributions for İzmir and residents of İzmir is the effect of the natural gas on the breathable air quality of İzmir. 

Increase of the subscribers in parallel with the generalization of natural gas has played an important role in preventing the intense air pollution of İzmir and granting a habitable urban structure of modern standards. Non-profit organizations and public offices provided support as well. İzmirgaz contributed to İzmir economy in 2013 too with its employees, many infrastructure firms, 497 internal installation firms, production and marketing firms and employees of the contracting firms that work in the field of infrastructure construction.

İzmirgaz in the field of Social Responsibility 
İzmirgaz which has adopted it as a principle to support various social campaigns in İzmir becomes, from time to time, sponsor of the activities of local administrations and various nonprofit organizations and also through the projects it personally produces and implements, it contributes to art and culture life of İzmir and its residents. It is especially important for İzmirgaz to raise awareness of children about environment and energy within the framework of its social responsibility. Among many social responsibility projects executed by İzmirgaz in 2013, there are such traditionalized ones as Theater Workshop, Turkish Art Music Chorus, Inter-School Drawing Picture Competition and Photograph Competition. 

2014 targets
In 2014, İzmirgaz will continue its activities in accordance with the targets below:
• To increase number of the natural gas subscribers in the areas where investment procedures are completed, 
• To increase amount of the transported/sold natural gas to 3 billion m3 as of the year end, 
• To take part in and organize meetings for the non-profit organizations, municipalities and public in order to minimize the air pollution throughout İzmir, 
• To increase works relating to customer satisfaction, 
• To increase number of industry customer, 
• To increase the number of online transactions by using the new technologies, 
• To create brand addiction and be in the limelight, 
• To generalize cooling technology with natural gas, 
• To create conscious natural gas consumers.


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KOLEN ELECTRICITY WHOLESALE IMPORT AND EXPORT INC.
To be a more competitive market supplier in the developing and liberalizing Turkish energy sector, Kolen needs to constitute its portfolio with cost-effective, high-profit and long-term projects. However, this requires time and organizational preparation. 

In 2013, Kolen took the necessary steps to create a portfolio of (1) long-term cost-effective structure, (2) risk management against electric price fluctuations and increases and (3) a balanced structure, which are main elements of the long-term portfolio management. 

In order to constitute a balanced (reliable and profitable) portfolio, Kolen used the following three sale channels actively in 2013 by optimizing the profit margin and electric sale volume of 577 million KWh was achieved. 

1. Retail sale channel: sale to the final consumer 
2. Wholesale trade channel: supply, countrywide and importexport sale channels, 
3. Spot market sale channel.

With the developing structure of the Turkish market, the retail sale channel has become a critical method for the producers and suppliers. Kolen has decided to develop this channel since 2013. 

Activities of Kolen performed in 2013 to develop the sale channels and constitute a healthy management inside the company can be summarized as follow: 

I. During this period, Kolen included prestigious brands of Turkey in its portfolio and started supply of the affiliated firms. Main components of the retail sale channel development strategy have been stated below:

a. Dealer channels: Contract was concluded with 12 dealers in İstanbul, Ankara, İzmir, Gaziantep, Eskişehir and Kayseri Provinces of Turkey. Communications are ongoing for the other provinces and the number will increase to 15 active dealers shortly. In addition to the business partners with suitable infrastructure to renew the customer portfolio, strong sale team and network, we can also collaborate with the enterprises which are close to our sector and offer consultancy services. 
b. Regional focus: We deem it appropriate to focus on the cities which we consider as economically sound, with large SME infrastructure and advantageous to reach the customer and not to undertake any commercial activity where our electric distribution partners are active. For instance, we had the opportunity to know the region and customer of the gas distribution activity in and around İzmir and Eskisehir where our Group performs gas distribution activity. Kolen is ranked as the 4th about the number of subscribers in İzmir. 
c. Alternative channels: New channels were created to become leading supplier on the online supplier change sites and reach the large mass customers through associations and/or platforms. For instance; an agreement was signed with Association of Family Physicians. 

II. Wholesale trade channel activities: In this channel, Kolen aims to develop the energy supply and trade portfolio, create synergy for retail channels and increase the productivity. Through RES capacity purchase and various bilateral agreements concerning development of wholesale and retail trade channel, supply structure was solidified even more in 2014. 

III. Process development activities: Improving the current reports about performance of Kolen and rendering those more systematic have been completed in the following fields: FAVÖK, invoice-collection, portfolio position and risk management and necessary steps were taken to integrate them fully to the front/mid/back office systems. Purchase and integration of the software about customer management, invoicing and collection (which are important for retail sale channel) were performed.
NATURGAZ NATURAL GAS IMPORT AND EXPORT INDUSTRY AND TRADE INC.
Naturgaz Natural Gas Import and Export Industry and Trade Incstepped in the natural gas market with the Natural Gas WholesaleLicense obtained from the Energy Market Regulatory Boardon 04 October 2007. Naturgaz Inc. converted the wholesalelicense into the import license (SPOT LNG) on 17 February 2011.Wholesale activities which started in 2010 still continue. One ofthe two companies which have supplied natural gas for İzmirgazand Esgaz since 2010, Naturagaz will continue, in 2014 too, thenatural gas supply in both regions with market share of 30% and 25% respectively. The company carries out the day ahead andday end transactions, even more over-the-counter natural gastransactions together with the other suppliers of the natural gaswholesale market, performs the natural gas trade actively and itstrade volume in the market increases day by day.

In the Turkish natural gas market where public domination isstill visible, 8 importing firms and 20 wholesale firms includingthe public companies performed the relevant activities in 2013.Among these firms, Naturgaz Inc. increased the market share of 0,3% in 2012 to 0,7% in 2013 and acquired natural gas trade of 269 million Sm3. Naturgaz Inc. plans to supply naturalgas, under competitive conditions, to the distribution companiesand free costumers in order to import LNG (Liquified NaturalGas) and carry out search-generation activities in the country. 

The most important prerequisite to create a free, active, competitive, liquid and deep natural gas market is to rule out the factors which prevent the competition in the natural gas supplyand base the price on the supply-demand and exchange ratebalance.The energy prices increased all over the world in 2012 following the increase in petrol prices but it was not reflected to the internalmarket in 2013 due to public pricing based on cross subvention.Price policy of the Public which had about 75% of the market in 2013 and which is independent from the market requirements and fluctuations in the last quarter of 2013 resulted in new entries on the market and competition and deep trade between the current market players.

The most important element in the natural gas sector, as in other fields of the energy, is the diversification and security of the supply. Natural Gas Market Law no 6446 takes this aspect into consideration and stipulates the distribution companies to supply natural gas from minimum two companies. However, dueto load factors of the distribution companies in the consumption profiles, it is very difficult to supply the natural gas according tothe demand profile. Naturgaz Inc. has undertaken supply amount,load factor, price and rate risks of the relevant distributioncompanies and maintains this with success. Naturgaz Inc. aims to sustain the successful growth of the previous years and two fold the market share in 2014. With its Import (Spot LNG) License, it plans to import, as LNG, some of the gas which it will wholesale in the periods ahead.

Following diversification of the natural gas supply, transparency of the commerce center and balancing market mechanisms; it will continue the national and international works to apply the suitable strategies to the management of price risks, its own coststructure and the requirements of the customers.

Naturgaz Inc. maintains its activities about establishment of anatural gas market where reference natural gas prices will bedetermined and endeavors, through PETFORM of which it is a member, to install a platform where customers and supplierscome together without any restriction and make business.
TRUVA ENERGY CONSTRUCTION INDUSTRY AND TRADE INC.
In addition to making investments in the energy and industry sectors, Truva Inc. was established in 2005 to perform energy import and export activities.

Knowledge of  the Kolin Group of Companies in the constructionand energy sector renders Truva Inc. competitive in its fields of activity.

Truva A.Ş. participated in the Da-Ta Ordinary Partnership with 98%-share and started to provide electric infrastructure construction services to Uludağ Electricity Distribution Inc.and Çamlıbel Electricity Distribution Inc. as of the beginning of 2012. To this aim, its activities are ongoing in Bursa, Balıkesir,Çanakkale, Yalo- va, Sivas, Yozgat and Tokat Provinces and their districts.

In 2013, the company undertook electric infrastructureconstruction works from Boğaziçi, Akdeniz, Çamlıbel and Uludağ Electricity Distribution Inc. and these works still continue.
ULUDAĞ ELECTRICITY DISTRIBUTION INC.
Uludağ Electricity Distribution Inc. carries out electric distribution activities in Balıkesir, Çanakkale, Yalova and Bursa Provinces and their districts which fall under its area of responsibility. As of the end of 2013, the number of active customers of Uludağ Electricity Distribution Inc. amounts to 2.407.941 and electricity equal to 10.381.300 mWh was distributed. 

631 personnel work for Uludağ Electricity Distribution Inc. as of January 2014. Network rehabilitation investments of 2013 concerning electricity distribution continue intensely in 2014 as well. Investments in the field of human resources, training, computer technologies and research and development also continue to realize our mission of qualified service.