ARÇELİK COMPANYARÇELİK COMPANY
Corporate OverviewCorporate Overview
Brief OverviewBrief Overview
Group
Koç Group
Turkey’sTurkey’s biggestbiggest industrialindustrial andand commercialcommercial conglomerateconglomerate..
• 2006 Consolidated Turnover of USD 34,5 billion,
• The shares of 18 Koç Group companies are traded at the İstanbul Stock Exchange,
• The Group consists of over 100 companies in 30 countries,
• 95.000 employees,
• Over 14,000 dealers, agencies and after-sales services .
• Being the only Turkish company in FORTUNE’s Top 500 Global Company List, ranked as
190
th
in 2007
Some of the key companies;
Koç Group
Some of the key companies;
FoundedFounded in 1926, Koçin 1926, Koç Group operatesGroup operates inin five core business segmentsfive core business segments;;
• AUTOMOTIVE Tofaş, Ford Otosan, Türk Traktör, Otokar, Otoyol
Otokoç, Birmot
• ENERGY Tüpraş, Opet, Aygaz
• FINANCE Yapı & Kredi, Koç Financial Services, Koç Allianz
Insurance
• FOOD & RETAILING Migros, Tansaş, Koçtaş, Tat, Düzey
• CONSUMER DURABLES Arçelik, Beko Elektronik, Arçelik-LG Klima
Arçelik Company
Year of Establishment : 1955
Headquarters : İstanbul, Turkey
Core Business : Production, marketing and after
sales service of a full range of
household appliances,
components
Total Number of Employees-worldwide : 17.000
Consolidated Net Sales-worldwide 2006 : € 3,9 billion
Consolidated Net Sales-international 2006 : € 1,9 billion
TheThe CCompanyompany provides products and services toprovides products and services to
consumers in more than 100 countries with itsconsumers in more than 100 countries with its
1111 production plantsproduction plants in 4in 4 different countriesdifferent countries,,
1133 international companies and 9 brands.international companies and 9 brands.
Arçelik means ....
50+ Experience over half a century since 1955
PRODUCT+
Production, marketing and after sales service of a full
range of household appliances and components.
17.000+ Employees more than 17 thousand
4.500+
Leader in Turkish market with more than 4,500
authorized dealers and 600 services
7 BILLION YTL 7 billion YTL of consolidated turnover in 2006
11 11 production plants in 4 different countries
9 9 brands
13 13 sales and marketing companies, operating abroad
100+
Provides its consumers in more than 100 countries in
5 continents with its products and services
181 MILLION € 181 million Euros of investment in 2006
PRODUCTION+
Turkey's leader manufacturer and the third largest
white goods producer in Europe
75 MILLION+
Reaching nearly 17 million houses in Turkey and 75
million houses in the world
Shareholder Structure
Koç Group
Teknosan A.Ş.
Burla Ticaret ve Yatırım A.Ş.
Others
56,3
14,7
7,7
21,3
Vision
To possess one of the 10 most
preferred global brands in our
sector by the year 2010
with BEKO
Strategic Targets
To reach consolidated net sales of EUR 6bln. in 2010 by growing with
an average of 14% in 2006-2011 period.
To keep the leading market position in Turkish market.
To achieve at least 50% of total consolidated net sales from
international sales.
To reach 2% global market share in 2010 with Beko brand.
To maintain group profitability above industry average and create
economic profit.
To possess the capability to develop products, which will differentiate
from competitors and supply benefits to consumers.
Milestones
1955 : The Company was established in Sütlüce
1959 : Arçelik has produced first washing machine in Turkey.
1960 : Arçelik has produced first refrigerator in Turkey.
1991 : Establishment of R&D center and Consumer Information
Service
2000 : Arçelik-LG Air Conditioning Industry and Trade Inc.
started production.
2001 : Domestic marketing and sales operations of Beko
branded products started to run by Arçelik Company
2002 :
Blomberg, a German household appliances company
was acquired, followed by the acquisition of Elektra
Bregenz, an Austrian household appliances company,
and its brand Elektra Bregenz.
Leisure and Flavel, was acquired as white goods
brands of the UK.
Arctic, a refrigeration appliances company in Romania
was acquired.
Beko became the leading brand in UK’s refrigerator
market.
Launch of the new logo, reflecting the innovative and
dynamic structure.
Milestones
2003 : Sales of smart appliances commenced.
Arçelik Company has been selected as
“Turkey’s Best Company” by “Banker
Magazine”, published by Financial Times.
2004 : Decision made to invest in Russia.
2005 :
Arçelik Company has celebrated its 50th
anniversary.
Foundations were laid for the production plant
in Moscow, Russia.
The Chest Freezer production line became
operational in Arctic plant, Romania.
Tumble dryer production started in Çayırova
and additional investment decision is given to
increase the production capacity by a new dryer
plant.
Blomberg product range was carried out.
Arstil furniture stores became operational.
Arçelik Company in 2006
In 2006, BEKO branded ovens
become the market leader in
Belgium with 24,7% of share.
Two more TPM awards to Arçelik
Company
Exported BEKO branded
diswashers and washing
machines to China.
Exported “Exclusive Beko Shop
System” to international markets
Organized the “8
th
Innovation
Day” with presenting 193 awards
to its inventors
Beko LLC washing machine,
refrigerator and TV production
plant started to operate in 2006.
Blomberg branded dryer has
been selected “Best Buy” in
Europe by “Test Achats/Test
Aankoop”
Beko branded dishwashers and
washing machines are selected
“Best Buy” in Europe by “Which”
and “Test Achats/Test Aankoop”
2nd
International Beko Authorized
Dealers’ Meeting with 1500
attendees
Beko Elektronik
With increasing its share in Beko
Elektronik, Arçelik Company
targets to achieve ;
Synergy within our distribution channels,
Cost-saving,
Accelerating the decision-taking
processes,
Dynamic brand-management.
Beko Elektronik is the 2
nd
largest
TV manufacturing company in
Europe.
Production & Distribution
HQ, Istanbul/Turkey
Sales & Marketing Companies
Beko Deutschland GmbH, Germany Arcelitalia S.r.l., Italy
Elektra Bregenz AG; Austria Beko Magyarosszag K.F.T., Hungary
Beko Cesko S.R.O., Czech Republic Beko Slovakia S.R.O., Slovakia
Beko Electronics Espana S.L., Spain Beko S.A., Poland
Beko France S.A., France Beko Shanghai Trading Co. Shanghai
Beko Plc, UK
Production & Marketing Companies
Arctic S.A., Romania
Beko L.L.C., Russia
Beko Electrical Appliances Co.Ltd., China
Brands
A leading brand in Turkish household appliances industry
One of the leading brands in Turkey, preferred by 250 million consumers in
more than 100 countries
Upper - scale brand of household appliances, combining advanced
technology with German design
A strong, prestigious brand of household appliances in Austria
The leading brand in the Romanian household appliances market
A leading brand in the cooking appliances market in the UK
Cooking appliances brand in UK
The household appliance and television brand of price conscious
consumers
Furniture brand with a product range of more than 1500 world class
products
Product Range
Major Household
Appliances
Refrigerators
Freezers
Washing Machines
Dryers
Dishwashers
Ovens
Mini- Midi Ovens
Microwaves Ovens
Cook tops
Small Household
Appliances
Vacuum Cleaners
Electric Kitchen
Appliances
Irons
Fans
Personal Care
Appliances
Electronics
TV
Video, DVD
Satellite Systems
Hi-Fi Systems
Home Theatre
Portable Hi-Fi Systems
TV Racks
Fax Machines
Phones
Computers
Built-in Products
Heating-Ventilation
Air Conditioning
Air Conditioners
Water Heaters
Flash Heaters
Heating Appliances
Components
Compressors
Industrial Motors
Motor-pumps
+ Ready-made Kitchen, Furniture and Home Textiles
Refrigerators
Dishwashers
Ovens
Cookers
Cooker Hoods
Marketing Structure in Turkey
Arçelik Company
Arçelik Brand Beko Brand Altus Brand
Arçelik
Authorized
Dealers
Beko
Authorized
Dealers
Other Dealers
Dealership System & Network
Total White Goods Dealer Network
in Turkey
%60
%40
Arçelik Dealers Others
~ 4500 Dealers
~ 600 After Sales Service Stations
Total Service Network in Turkey
%25
%75
Arçelik Services Others
Market Position
Domestic Market Structure
• Household appliances domestic market
capacity in 2006: 5,7 million units
• High level competition with international
brands in the market
• 5% growth compared to 2005
• Swift increase in the number of
households with a rapidly growing
population of which 50% is 30 years
and younger
Arçelik Company
• Market leadership
• Wide product range providing quick
response to market requirements
• Perfect after-sales services approach
The Market Leader
Competitive Power
• Financial structure
• Growth with brands
• Technology and innovations
• Consumer sensibility
• Production facilities
• Corporate culture and social
responsibilities
Arçelik Company strengthens its leading position in the
domestic market with its share exceeding 50%.
Financial ResultsFinancial Results -- 20062006
Consolidated Turnover
Consolidated TurnoverConsolidated Turnover
1900
2082
2686
3741
3873
0
500
1000
1500
2000
2500
3000
3500
4000
2002 2003 2004 2005 2006
MillionMillion EuroEuro
DomesticDomestic
InternationalInternational
DistributionDistribution ofof TurnoverTurnover
50
50
52
48
56
44
50
50
52
48
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006
(%)(%)
Ranked as the 3rd largest household appliances
manufacturer in Europe
Investments
43
78
105
153
181
0
20
40
60
80
100
120
140
160
180
200
2002 2003 2004 2005 2006
Capital expenditure of 181 € million in the year 2006.
Investments
BekoBeko LLCLLC RefrigeratorRefrigerator &&
Washing Machine andWashing Machine and TVTV
Production PlantProduction Plant –– RussiaRussia
• Investment of € 90 million
• Mass production started in
October 2006
• Refrigerator and washing
machine capacity of 900.000
units per year
• Television production
capacity of 750.000 per year
Investments
NewNew Chest Freezer LineChest Freezer Line ––
ArcticArctic,, RomaniaRomania
• Investment of € 5 million
• Chest freezer production
capacity of 400.000 per year
Dryer Production PlantDryer Production Plant ––
IstanbulIstanbul,, TurkeyTurkey
• Investment of € 25,6 million
• To attain dryer production
capacity of 800.000 units per
year by 2008.
• 85% of the production for
international sales.
0
200
400
600
800
1000
2006 2007 2008
,000
0
500
1000
1500
2002 2003 2004 2005 2006
1.300
Production Capacities
0
1000
2000
3000
4000
5000
2002 2003 2004 2005 2006
Washing Machine
4.000
0
1000
2000
3000
4000
5000
2002 2003 2004 2005 2006
Refrigerator
4.500
0
500
1000
1500
2000
2500
2002 2003 2004 2005 2006
Oven
2.000
(000)
Dishwasher
(000)
(000)
(000)
International Market Share*
* : Covered 27 countries; including Europe, Russia and Turkey
**: 2006 Panelmarket Europe Freestanding 8 PG. Source: Gfk
Arçelik Company’s internationalArçelik Company’s international marketmarket share with its branded productsshare with its branded products
hashas reachedreached 10%10%****
New Strategic Markets
CHINA
• Sales & Marketing company is
founded in Shangai.
• Shipments of washing machines
and dishwashers are realized for
the first time in March and April
2006.
• Operating in 7 states, 4 chains,
46 sales corners.
• Sold 4,178 products with a
turnover of approximately 1
mio$ in this market in 2006.
• Target to reach 10 million EUR
turnover in 2007.
USA
• First shipment of dishwashers is
realized in June, 2006.
TechnologyTechnology && InnovationInnovation
Intellectual Property
Innovation means TechnologyInnovation means Technology;;
Technology meansTechnology means Patent...Patent...
• In addition to facility investments,
one of the critical factors of
Arçelik Company’s success is “the
power to create technology and
innovation”.
• Arçelik Company owns 13% of all
patents produced in Turkey in the
last three years.
• In the last 3 years, 45% of the
international patent applications
with the World Intellectual
Property Organization (WIPO)
from Turkey belongs to Arçelik
Company.
As the company with the most patent applications in 2005,
Arçelik Company won “first prize” in the first ever “TPE-Patent League Awards”
granted by the Turkish Patent Institute (TPE) .
111 115
148
374
168
90
4731
0
50
100
150
200
250
300
350
400
2003 2004 2005 T otal
Turkey Arçelik
International Patent Applications to WIPO
New Developments
Built-in Products
• The 1
st
producer of built-in
products in Turkey
• 120 different models of built-in
appliances
• Built-in oven cooking with one
touch
• Superb silent hoods
• Highly-secure cookers with timer
• Multifunctional (normal and
microwave) ovens
• Compact series fitting in 40 cm
cabinets
• Pryolitic (self-cleaning) built-in
oven
• Anti-bacterium built-in
refrigerators
New Products
World’s Fastest Washing
Machine
• Arçelik has added a new
washing machine to its
international product line with
the privilege of being
“the world's fastestthe world's fastest" washing
machine
• Xpress 14' - washing 2 kg light
soiled cotton garments in 14
minutes – WORLD’S FASTEST
PROGRAM IN DOING SO.
• Xpress 30' - washing 7 kg light
soiled cotton garments in 30
minutes – WORLD’S FASTEST
PROGRAM IN DOING SO
7kg 1200rpm electronic washer
New Products
World’s Fastest Dishwasher
• Arçelik technology has
created the world’s fastest
dishwasher with A washing
performance in 58 minutes
for full/daily load.
New Products
Side-By-Side (SBS)
Refrigerator
• Arçelik has started Side by
Side refrigerator production
in its Eskisehir plant in 2006.
• The plant has the highestthe highest
production capacityproduction capacity in this
segment in Europe.
New Products
Turkish Coffee Machine -
Mini TELVE
• With its own technology,
Arçelik Company has
developed Turkish coffee
machine “Mini TelveMini Telve” with
single tank and launched it in
the year 2006.
• This product is protected
with 4 patents.
AwardsAwards && AchievementsAchievements
Some of the awards in 2006
Arçelik A.Ş. won first prize in the first ever
“TPE-Patent League Awards” granted by the
Turkish Patent Institute (TPE) with 136 patent
applications.
ElektraElektra BregenzBregenz built-in oven and refrigerator won 5
awards in 2006 Plus X contest. Combi
refrigerigerator “Innovation” and “Ecology” award,
Oven “Design” and “Ease of use” awards, Elektra
Bregenz brand “Most Innovative Brand” award.
BlombergBlomberg combi refrigerator and built in pyrolitic
oven won 4 awards in 2006 Plus X contest. Combi
refrigerator “Innovation” and “Ecology” awards, built
in pyrolitic oven “Design” and “Ease of use” awards.
In 2006, BlombergBlomberg branded refrigerator has won the
first prize in “EU Environment Awards”, whereas
Ekolojist dishwasher has won the second prize in the
same competition.
Some of the awards in 2006
TPM (Total Productive Maintenance) Award
• Arctic Refrigerator Production Plant
TPM (Total Productive Maintenance)
Continuity Award
• Eskişehir Refrigerator Production Plant.
Capital magazine has selected Arçelik
Company as Turkey’s;
• Fastest growing company in last 30 years
• Most innovative company
• The magazine described Arçelik as a role model
company, owing its success to continuous
innovations, focus on brand management and
investment strategy.
ForFor aa continous and bettercontinous and better life...life...
Environment
As Arçelik Company, we consider the “environment” as an asset to
pass on to future generations and adopt the principle of
environment protection as a requirement of our management
approach based on Total Quality.
According to the principles above, in all Arçelik facilities we;
• use methods for more effective utilization of energy and natural
resources
• improve methods to eliminate causes of pollution
• conform to environment related national and international laws and
regulations
• fulfill the requirements of the local, national and international laws and
regulations
• train all our employees and subcontractors to enhance their awareness
• prefer the materials and technologies that reduce environmental
impacts, beginning from design to production stages
• carry out environmental impact analyses for new investments
We perform all these activities within the scope of an environmental
management system based on continuous improvement and
manufacture environment-friendly consumer products. For this
reason we document and certificate our environmental
management system according to ISO 14001 requirements.
In 2006, 4.681 hours-long trainings for raising the awareness and
sensitivity for environment among employees have been realized.
Total Quality Management
Total Quality Management activities began in
early 1980’s with the application of Quality
Cycles.
These activities have been gathered under
the “Total QualityTotal Quality” umbrella in early 90’s and
have been developed with the following
applications:
• Quality and Environmental Management System
• EFQM Excellence Model
• Total Productive Maintenance (TPM)
• 6 Sigma
Today, all production facilities have the ISO
9001:2000 Quality Management System
Certificate.
Total Quality Management
Six-Sigma Methodology
• The mission of the organization
is to acquire processes that will
provide the highest level of
customer satisfaction and
Company productivity with the
least amount of resources.
• Six Sigma methodology has
been implemented in 1998.
• This approach, first applied to
production processes, has been
extended to all processes in
2003.
• A net profit of € 28 million has
been earned with 290 projects
since 1998.
Environment-friendly Products
• Consumes 10% less energy than the A Energy efficient products
• 1,19 kWh with its A+ Energy class
• With the electronic water control system, it calculates exact amount
of water needed for washing and prevents extra water consumption.
• Produced in A energy efficiency class
• Consumes 30% less energy than the B energy efficient products.
• Uses environmental friendly R600a cooling gas,
which does not harm the ozone layer.
• AAA performance with only 9 liters of
water consumption per washing
• Consumes only 1,05 kWh energy
• The A energy efficient pyrolitic oven only consumes
0,79 kWh energy with the turbo cooking function
• Its 3D cooking function provides extra energy saving
• With its A energy performance, the “heat-pump”
dryer consumes 45% less energy than the
standard tumble dryers.
• With its genuine tumble pattern, it guarantees
extra drying, and so avoids extra energy
consumption.
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social Responsibility
At Arçelik Company, we perceive Corporate Social Responsibility as
integral part of our business.
Our “Corporate Social Responsibility” approach comprises
‘conforming to legal, moral standards and human rights, having
environment sensitive approach everywhere we operate, our
responsiveness to the needs of the community; the responsibilities
we undertake for sustainable development and our support
commitment, along with providing the most qualified and innovative
products and services to our customers’.
Our greatest strength is our employees and partners, which see
themselves as being Corporate CitizensCorporate Citizens, and are committed to
dedicate their effort, energy and time voluntarily to contribute to
the community.
Standing United for Education with Arçelik
Company
• In line with the understanding of “contribution to sustainable
development”; we have initiated “Standing United for
Education Program”, consists of 5 different projects
in March 2004. We target to raise the public awareness for the
development of Regional Primary Boarding Schools in Turkey.
• In 2005-2006 period; 80.000 students at 101 schools in 24
cities have been reached within this program;
• The program targets to reach :
Education
300 Schools
200.000 Students
In 8 years
Culture & Art
“The Genius of Leonardo”
• The exhibition, which covers the unique
and functional 40 replicas most of which
are life-sized and which were constructed
by expert historians and engineers who
had studied these original drawings of
Leonardo Da Vinci dating between the
1478 and 1513 in detail, is at the same
time the biggest international exhibition
that focuses on the engineering genius of
the Artist.
• The exhibition, which was housed at
Rahmi M. Koç Museum in Istanbul in
2006, was visited by over 114.000
people in 2 months.
• In 2007, METU hosted this exhibition,
which was moved to Ankara upon
resounding demands with the
contributions of Arçelik Company.
Between February 24 – March 24, more
than 60.000 people visited the exhibition.
Sports
In the year 2006, Arçelik Company has
undertaken the sponsorship of the Turkish
National Basketball League for 4 years, with
its Beko brand - sustaining adolescence,
innovation and dynamism-, operating with
the same perspective.
Arçelik Company is believing that the settled
longevous coalition between the Basketball
Federation and Beko brand, will have a great
contribution to the league, where the young
players, who represent our country abroad
foremost in NBA, are grown.
In addition to the support for education, culture and arts, Arçelik Company is
also supporting sports events, which are assessed as a major contribution
to the development of our country and our youth.
www.arcelikas.com

CORPORATE_OVERVIEW

  • 1.
  • 2.
  • 3.
    Koç Group Turkey’sTurkey’s biggestbiggestindustrialindustrial andand commercialcommercial conglomerateconglomerate.. • 2006 Consolidated Turnover of USD 34,5 billion, • The shares of 18 Koç Group companies are traded at the İstanbul Stock Exchange, • The Group consists of over 100 companies in 30 countries, • 95.000 employees, • Over 14,000 dealers, agencies and after-sales services . • Being the only Turkish company in FORTUNE’s Top 500 Global Company List, ranked as 190 th in 2007 Some of the key companies;
  • 4.
    Koç Group Some ofthe key companies; FoundedFounded in 1926, Koçin 1926, Koç Group operatesGroup operates inin five core business segmentsfive core business segments;; • AUTOMOTIVE Tofaş, Ford Otosan, Türk Traktör, Otokar, Otoyol Otokoç, Birmot • ENERGY Tüpraş, Opet, Aygaz • FINANCE Yapı & Kredi, Koç Financial Services, Koç Allianz Insurance • FOOD & RETAILING Migros, Tansaş, Koçtaş, Tat, Düzey • CONSUMER DURABLES Arçelik, Beko Elektronik, Arçelik-LG Klima
  • 6.
    Arçelik Company Year ofEstablishment : 1955 Headquarters : İstanbul, Turkey Core Business : Production, marketing and after sales service of a full range of household appliances, components Total Number of Employees-worldwide : 17.000 Consolidated Net Sales-worldwide 2006 : € 3,9 billion Consolidated Net Sales-international 2006 : € 1,9 billion TheThe CCompanyompany provides products and services toprovides products and services to consumers in more than 100 countries with itsconsumers in more than 100 countries with its 1111 production plantsproduction plants in 4in 4 different countriesdifferent countries,, 1133 international companies and 9 brands.international companies and 9 brands.
  • 7.
    Arçelik means .... 50+Experience over half a century since 1955 PRODUCT+ Production, marketing and after sales service of a full range of household appliances and components. 17.000+ Employees more than 17 thousand 4.500+ Leader in Turkish market with more than 4,500 authorized dealers and 600 services 7 BILLION YTL 7 billion YTL of consolidated turnover in 2006 11 11 production plants in 4 different countries 9 9 brands 13 13 sales and marketing companies, operating abroad 100+ Provides its consumers in more than 100 countries in 5 continents with its products and services 181 MILLION € 181 million Euros of investment in 2006 PRODUCTION+ Turkey's leader manufacturer and the third largest white goods producer in Europe 75 MILLION+ Reaching nearly 17 million houses in Turkey and 75 million houses in the world
  • 8.
    Shareholder Structure Koç Group TeknosanA.Ş. Burla Ticaret ve Yatırım A.Ş. Others 56,3 14,7 7,7 21,3
  • 9.
    Vision To possess oneof the 10 most preferred global brands in our sector by the year 2010 with BEKO
  • 10.
    Strategic Targets To reachconsolidated net sales of EUR 6bln. in 2010 by growing with an average of 14% in 2006-2011 period. To keep the leading market position in Turkish market. To achieve at least 50% of total consolidated net sales from international sales. To reach 2% global market share in 2010 with Beko brand. To maintain group profitability above industry average and create economic profit. To possess the capability to develop products, which will differentiate from competitors and supply benefits to consumers.
  • 11.
    Milestones 1955 : TheCompany was established in Sütlüce 1959 : Arçelik has produced first washing machine in Turkey. 1960 : Arçelik has produced first refrigerator in Turkey. 1991 : Establishment of R&D center and Consumer Information Service 2000 : Arçelik-LG Air Conditioning Industry and Trade Inc. started production. 2001 : Domestic marketing and sales operations of Beko branded products started to run by Arçelik Company 2002 : Blomberg, a German household appliances company was acquired, followed by the acquisition of Elektra Bregenz, an Austrian household appliances company, and its brand Elektra Bregenz. Leisure and Flavel, was acquired as white goods brands of the UK. Arctic, a refrigeration appliances company in Romania was acquired. Beko became the leading brand in UK’s refrigerator market. Launch of the new logo, reflecting the innovative and dynamic structure.
  • 12.
    Milestones 2003 : Salesof smart appliances commenced. Arçelik Company has been selected as “Turkey’s Best Company” by “Banker Magazine”, published by Financial Times. 2004 : Decision made to invest in Russia. 2005 : Arçelik Company has celebrated its 50th anniversary. Foundations were laid for the production plant in Moscow, Russia. The Chest Freezer production line became operational in Arctic plant, Romania. Tumble dryer production started in Çayırova and additional investment decision is given to increase the production capacity by a new dryer plant. Blomberg product range was carried out. Arstil furniture stores became operational.
  • 13.
    Arçelik Company in2006 In 2006, BEKO branded ovens become the market leader in Belgium with 24,7% of share. Two more TPM awards to Arçelik Company Exported BEKO branded diswashers and washing machines to China. Exported “Exclusive Beko Shop System” to international markets Organized the “8 th Innovation Day” with presenting 193 awards to its inventors Beko LLC washing machine, refrigerator and TV production plant started to operate in 2006. Blomberg branded dryer has been selected “Best Buy” in Europe by “Test Achats/Test Aankoop” Beko branded dishwashers and washing machines are selected “Best Buy” in Europe by “Which” and “Test Achats/Test Aankoop” 2nd International Beko Authorized Dealers’ Meeting with 1500 attendees
  • 14.
    Beko Elektronik With increasingits share in Beko Elektronik, Arçelik Company targets to achieve ; Synergy within our distribution channels, Cost-saving, Accelerating the decision-taking processes, Dynamic brand-management. Beko Elektronik is the 2 nd largest TV manufacturing company in Europe.
  • 15.
    Production & Distribution HQ,Istanbul/Turkey Sales & Marketing Companies Beko Deutschland GmbH, Germany Arcelitalia S.r.l., Italy Elektra Bregenz AG; Austria Beko Magyarosszag K.F.T., Hungary Beko Cesko S.R.O., Czech Republic Beko Slovakia S.R.O., Slovakia Beko Electronics Espana S.L., Spain Beko S.A., Poland Beko France S.A., France Beko Shanghai Trading Co. Shanghai Beko Plc, UK Production & Marketing Companies Arctic S.A., Romania Beko L.L.C., Russia Beko Electrical Appliances Co.Ltd., China
  • 16.
    Brands A leading brandin Turkish household appliances industry One of the leading brands in Turkey, preferred by 250 million consumers in more than 100 countries Upper - scale brand of household appliances, combining advanced technology with German design A strong, prestigious brand of household appliances in Austria The leading brand in the Romanian household appliances market A leading brand in the cooking appliances market in the UK Cooking appliances brand in UK The household appliance and television brand of price conscious consumers Furniture brand with a product range of more than 1500 world class products
  • 17.
    Product Range Major Household Appliances Refrigerators Freezers WashingMachines Dryers Dishwashers Ovens Mini- Midi Ovens Microwaves Ovens Cook tops Small Household Appliances Vacuum Cleaners Electric Kitchen Appliances Irons Fans Personal Care Appliances Electronics TV Video, DVD Satellite Systems Hi-Fi Systems Home Theatre Portable Hi-Fi Systems TV Racks Fax Machines Phones Computers Built-in Products Heating-Ventilation Air Conditioning Air Conditioners Water Heaters Flash Heaters Heating Appliances Components Compressors Industrial Motors Motor-pumps + Ready-made Kitchen, Furniture and Home Textiles Refrigerators Dishwashers Ovens Cookers Cooker Hoods
  • 18.
    Marketing Structure inTurkey Arçelik Company Arçelik Brand Beko Brand Altus Brand Arçelik Authorized Dealers Beko Authorized Dealers Other Dealers
  • 19.
    Dealership System &Network Total White Goods Dealer Network in Turkey %60 %40 Arçelik Dealers Others ~ 4500 Dealers ~ 600 After Sales Service Stations Total Service Network in Turkey %25 %75 Arçelik Services Others
  • 20.
    Market Position Domestic MarketStructure • Household appliances domestic market capacity in 2006: 5,7 million units • High level competition with international brands in the market • 5% growth compared to 2005 • Swift increase in the number of households with a rapidly growing population of which 50% is 30 years and younger Arçelik Company • Market leadership • Wide product range providing quick response to market requirements • Perfect after-sales services approach
  • 21.
    The Market Leader CompetitivePower • Financial structure • Growth with brands • Technology and innovations • Consumer sensibility • Production facilities • Corporate culture and social responsibilities Arçelik Company strengthens its leading position in the domestic market with its share exceeding 50%.
  • 22.
  • 23.
    Consolidated Turnover Consolidated TurnoverConsolidatedTurnover 1900 2082 2686 3741 3873 0 500 1000 1500 2000 2500 3000 3500 4000 2002 2003 2004 2005 2006 MillionMillion EuroEuro DomesticDomestic InternationalInternational DistributionDistribution ofof TurnoverTurnover 50 50 52 48 56 44 50 50 52 48 0 10 20 30 40 50 60 70 80 90 100 2002 2003 2004 2005 2006 (%)(%) Ranked as the 3rd largest household appliances manufacturer in Europe
  • 24.
    Investments 43 78 105 153 181 0 20 40 60 80 100 120 140 160 180 200 2002 2003 20042005 2006 Capital expenditure of 181 € million in the year 2006.
  • 25.
    Investments BekoBeko LLCLLC RefrigeratorRefrigerator&& Washing Machine andWashing Machine and TVTV Production PlantProduction Plant –– RussiaRussia • Investment of € 90 million • Mass production started in October 2006 • Refrigerator and washing machine capacity of 900.000 units per year • Television production capacity of 750.000 per year
  • 26.
    Investments NewNew Chest FreezerLineChest Freezer Line –– ArcticArctic,, RomaniaRomania • Investment of € 5 million • Chest freezer production capacity of 400.000 per year Dryer Production PlantDryer Production Plant –– IstanbulIstanbul,, TurkeyTurkey • Investment of € 25,6 million • To attain dryer production capacity of 800.000 units per year by 2008. • 85% of the production for international sales. 0 200 400 600 800 1000 2006 2007 2008 ,000
  • 27.
    0 500 1000 1500 2002 2003 20042005 2006 1.300 Production Capacities 0 1000 2000 3000 4000 5000 2002 2003 2004 2005 2006 Washing Machine 4.000 0 1000 2000 3000 4000 5000 2002 2003 2004 2005 2006 Refrigerator 4.500 0 500 1000 1500 2000 2500 2002 2003 2004 2005 2006 Oven 2.000 (000) Dishwasher (000) (000) (000)
  • 28.
    International Market Share* *: Covered 27 countries; including Europe, Russia and Turkey **: 2006 Panelmarket Europe Freestanding 8 PG. Source: Gfk Arçelik Company’s internationalArçelik Company’s international marketmarket share with its branded productsshare with its branded products hashas reachedreached 10%10%****
  • 29.
    New Strategic Markets CHINA •Sales & Marketing company is founded in Shangai. • Shipments of washing machines and dishwashers are realized for the first time in March and April 2006. • Operating in 7 states, 4 chains, 46 sales corners. • Sold 4,178 products with a turnover of approximately 1 mio$ in this market in 2006. • Target to reach 10 million EUR turnover in 2007. USA • First shipment of dishwashers is realized in June, 2006.
  • 30.
  • 31.
    Intellectual Property Innovation meansTechnologyInnovation means Technology;; Technology meansTechnology means Patent...Patent... • In addition to facility investments, one of the critical factors of Arçelik Company’s success is “the power to create technology and innovation”. • Arçelik Company owns 13% of all patents produced in Turkey in the last three years. • In the last 3 years, 45% of the international patent applications with the World Intellectual Property Organization (WIPO) from Turkey belongs to Arçelik Company. As the company with the most patent applications in 2005, Arçelik Company won “first prize” in the first ever “TPE-Patent League Awards” granted by the Turkish Patent Institute (TPE) . 111 115 148 374 168 90 4731 0 50 100 150 200 250 300 350 400 2003 2004 2005 T otal Turkey Arçelik International Patent Applications to WIPO
  • 32.
    New Developments Built-in Products •The 1 st producer of built-in products in Turkey • 120 different models of built-in appliances • Built-in oven cooking with one touch • Superb silent hoods • Highly-secure cookers with timer • Multifunctional (normal and microwave) ovens • Compact series fitting in 40 cm cabinets • Pryolitic (self-cleaning) built-in oven • Anti-bacterium built-in refrigerators
  • 33.
    New Products World’s FastestWashing Machine • Arçelik has added a new washing machine to its international product line with the privilege of being “the world's fastestthe world's fastest" washing machine • Xpress 14' - washing 2 kg light soiled cotton garments in 14 minutes – WORLD’S FASTEST PROGRAM IN DOING SO. • Xpress 30' - washing 7 kg light soiled cotton garments in 30 minutes – WORLD’S FASTEST PROGRAM IN DOING SO 7kg 1200rpm electronic washer
  • 34.
    New Products World’s FastestDishwasher • Arçelik technology has created the world’s fastest dishwasher with A washing performance in 58 minutes for full/daily load.
  • 35.
    New Products Side-By-Side (SBS) Refrigerator •Arçelik has started Side by Side refrigerator production in its Eskisehir plant in 2006. • The plant has the highestthe highest production capacityproduction capacity in this segment in Europe.
  • 36.
    New Products Turkish CoffeeMachine - Mini TELVE • With its own technology, Arçelik Company has developed Turkish coffee machine “Mini TelveMini Telve” with single tank and launched it in the year 2006. • This product is protected with 4 patents.
  • 37.
  • 38.
    Some of theawards in 2006 Arçelik A.Ş. won first prize in the first ever “TPE-Patent League Awards” granted by the Turkish Patent Institute (TPE) with 136 patent applications. ElektraElektra BregenzBregenz built-in oven and refrigerator won 5 awards in 2006 Plus X contest. Combi refrigerigerator “Innovation” and “Ecology” award, Oven “Design” and “Ease of use” awards, Elektra Bregenz brand “Most Innovative Brand” award. BlombergBlomberg combi refrigerator and built in pyrolitic oven won 4 awards in 2006 Plus X contest. Combi refrigerator “Innovation” and “Ecology” awards, built in pyrolitic oven “Design” and “Ease of use” awards. In 2006, BlombergBlomberg branded refrigerator has won the first prize in “EU Environment Awards”, whereas Ekolojist dishwasher has won the second prize in the same competition.
  • 39.
    Some of theawards in 2006 TPM (Total Productive Maintenance) Award • Arctic Refrigerator Production Plant TPM (Total Productive Maintenance) Continuity Award • Eskişehir Refrigerator Production Plant. Capital magazine has selected Arçelik Company as Turkey’s; • Fastest growing company in last 30 years • Most innovative company • The magazine described Arçelik as a role model company, owing its success to continuous innovations, focus on brand management and investment strategy.
  • 40.
    ForFor aa continousand bettercontinous and better life...life...
  • 41.
    Environment As Arçelik Company,we consider the “environment” as an asset to pass on to future generations and adopt the principle of environment protection as a requirement of our management approach based on Total Quality. According to the principles above, in all Arçelik facilities we; • use methods for more effective utilization of energy and natural resources • improve methods to eliminate causes of pollution • conform to environment related national and international laws and regulations • fulfill the requirements of the local, national and international laws and regulations • train all our employees and subcontractors to enhance their awareness • prefer the materials and technologies that reduce environmental impacts, beginning from design to production stages • carry out environmental impact analyses for new investments We perform all these activities within the scope of an environmental management system based on continuous improvement and manufacture environment-friendly consumer products. For this reason we document and certificate our environmental management system according to ISO 14001 requirements. In 2006, 4.681 hours-long trainings for raising the awareness and sensitivity for environment among employees have been realized.
  • 42.
    Total Quality Management TotalQuality Management activities began in early 1980’s with the application of Quality Cycles. These activities have been gathered under the “Total QualityTotal Quality” umbrella in early 90’s and have been developed with the following applications: • Quality and Environmental Management System • EFQM Excellence Model • Total Productive Maintenance (TPM) • 6 Sigma Today, all production facilities have the ISO 9001:2000 Quality Management System Certificate.
  • 43.
    Total Quality Management Six-SigmaMethodology • The mission of the organization is to acquire processes that will provide the highest level of customer satisfaction and Company productivity with the least amount of resources. • Six Sigma methodology has been implemented in 1998. • This approach, first applied to production processes, has been extended to all processes in 2003. • A net profit of € 28 million has been earned with 290 projects since 1998.
  • 44.
    Environment-friendly Products • Consumes10% less energy than the A Energy efficient products • 1,19 kWh with its A+ Energy class • With the electronic water control system, it calculates exact amount of water needed for washing and prevents extra water consumption. • Produced in A energy efficiency class • Consumes 30% less energy than the B energy efficient products. • Uses environmental friendly R600a cooling gas, which does not harm the ozone layer. • AAA performance with only 9 liters of water consumption per washing • Consumes only 1,05 kWh energy • The A energy efficient pyrolitic oven only consumes 0,79 kWh energy with the turbo cooking function • Its 3D cooking function provides extra energy saving • With its A energy performance, the “heat-pump” dryer consumes 45% less energy than the standard tumble dryers. • With its genuine tumble pattern, it guarantees extra drying, and so avoids extra energy consumption.
  • 45.
  • 46.
    Corporate Social Responsibility AtArçelik Company, we perceive Corporate Social Responsibility as integral part of our business. Our “Corporate Social Responsibility” approach comprises ‘conforming to legal, moral standards and human rights, having environment sensitive approach everywhere we operate, our responsiveness to the needs of the community; the responsibilities we undertake for sustainable development and our support commitment, along with providing the most qualified and innovative products and services to our customers’. Our greatest strength is our employees and partners, which see themselves as being Corporate CitizensCorporate Citizens, and are committed to dedicate their effort, energy and time voluntarily to contribute to the community.
  • 47.
    Standing United forEducation with Arçelik Company • In line with the understanding of “contribution to sustainable development”; we have initiated “Standing United for Education Program”, consists of 5 different projects in March 2004. We target to raise the public awareness for the development of Regional Primary Boarding Schools in Turkey. • In 2005-2006 period; 80.000 students at 101 schools in 24 cities have been reached within this program; • The program targets to reach : Education 300 Schools 200.000 Students In 8 years
  • 48.
    Culture & Art “TheGenius of Leonardo” • The exhibition, which covers the unique and functional 40 replicas most of which are life-sized and which were constructed by expert historians and engineers who had studied these original drawings of Leonardo Da Vinci dating between the 1478 and 1513 in detail, is at the same time the biggest international exhibition that focuses on the engineering genius of the Artist. • The exhibition, which was housed at Rahmi M. Koç Museum in Istanbul in 2006, was visited by over 114.000 people in 2 months. • In 2007, METU hosted this exhibition, which was moved to Ankara upon resounding demands with the contributions of Arçelik Company. Between February 24 – March 24, more than 60.000 people visited the exhibition.
  • 49.
    Sports In the year2006, Arçelik Company has undertaken the sponsorship of the Turkish National Basketball League for 4 years, with its Beko brand - sustaining adolescence, innovation and dynamism-, operating with the same perspective. Arçelik Company is believing that the settled longevous coalition between the Basketball Federation and Beko brand, will have a great contribution to the league, where the young players, who represent our country abroad foremost in NBA, are grown. In addition to the support for education, culture and arts, Arçelik Company is also supporting sports events, which are assessed as a major contribution to the development of our country and our youth.
  • 50.