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									ANNUAL REPORT 2009

                     Refining...       th
                                     8 largest
                                     refining company

                     LPG...          Europe’s
                                     5 largest
                                     LPG company

                                     3rd largest
                     Fuel products   and
                     distribution…   fastest growing
                                     fuel distribution company
                                     in customer satisfaction


       Energy demand hit in year of recession

       The global economic recession in 2009 created a drop in energy demand. World crude oil demand declined by 1.2 million barrels
       a day to 85 million barrels a day, causing refinery capacity utilization rates to fall. Significant cuts in heavy crude oil production by
       OPEC member states led to the processing of lighter crude oil. When falling production levels failed to meet the demand for fuel
       oil, fuel oil prices rose, narrowing the price differential between light and heavy crude oil. While world GDP fell by 1% in 2009,
       contraction reached 3.2% in the developed economies and 4% in the Euro zone. World trade volume decreased by 12%. The
       economic recession reduced demand for middle distillates, in particular, and increasing inventories pressured both prices and
       refinery capacity utilization rates. The refining sector was struck by a double blow in 2009 with the decline in demand and the addition
       of new capacity. Production flexibility and logistic superiority were the most important factors determining the profitability of refinery
       companies in this challenging environment.

                                       Developments in the Turkish
                                       energy sector
                                       Fuel                                                  LPG

                                       Turkey's GDP contracted by 4.7% in 2009. Total        The utilization of natural gas continued to increase
                                       consumption of fuel (black and white products)        worldwide in 2009, limiting the use of LPG by
                                       declined by 7.6% to 17.7 million tons, according      households and industry, while autogas demand
  The most                             to the Petroleum Industry Association. Total          continued to grow. The consumption of LPG in
                                       consumption of automotive fuels (gasoline, diesel     Turkey, Europe's second largest LPG market,
  important                            and autogas) fell by 2.3% to 18 million tons.         grew by 5% to 3.6 million tons. As the use of
  development in                       Total consumption of white products (gasoline         alternative energy sources increased,
                                       and diesel) decreased by 3.8% to 15.7 million         consumption of cylinder gas and bulk gas fell by
  the energy                           tons. Black products (fuel oil and heating fuel)      4% and 5%, respectively, compared to 2008,
                                       fell by 30.5% to 1.9 million tons.                    while autogas grew by 9%.
  sector in 2009
  was the steep                        One of the most important developments in the
                                       sector in 2009 was the initiation of a temporary
  decline in                           price cap on the distribution and retail sales of
  demand.                              fuel. However, this ceiling was lifted after two
                                       months and the pricing was liberalized once
Electricity                                           Natural gas

2,833 MW additional generation capacity was           Turkish natural gas market contracted by 2%           Tüprafl was the
introduced in Turkey in 2009. With the addition       in 2009 with total domestic consumption               most profitable
of this new capacity, consisting of 1,400 MW          declining to 36 billion m3.
of natural gas and approximately 1,000 MW of                                                                  global refinery
renewable resources such as hydro and wind,           Further to the liberalization of liquefied natural
Turkey's total capacity increased by 7%.              gas imports and the entry of four private sector
                                                                                                            in the last three
Nevertheless, energy consumption fell by 2.5%         companies who won the contract transfer                    quarters of
year-on-year due to the global crisis.                tenders within the scope of Turkey Natural Gas
                                                      Market Law No. 4646, the private sector in             2009 based on
Another important development was the
publication of the Electricity Sector Strategy
                                                      Turkey started importing natural gas. The share
                                                      of private sector in the total natural gas imports
                                                                                                            operating profit
Report in June. First prepared in March 2004,         was 10% and is expected to increase in future.         per barrel from
the report contains topics including the initiation   In line with the decline in crude oil prices in the
of the privatization of generation assets in 2009,    second half of 2008 and first quarter of 2009,            refining and
the completion of privatization of distribution       the natural gas import prices also fell. As a               marketing
assets by the end of 2009, the regulation of          result, domestic sales price for natural gas was
“free consumer” limits, and the implementation        40% lower compared to 2008.                                  activities.
of incentives in the pricing of electricity to
encourage conservation and efficient usage.           Koç Group Energy Segment
Lastly, Electricity Market Balancing and
Settlement Code became effective in December.         Through its ownership of Tüprafl, Koç Group,
                                                      Turkey's energy sector leader, owns the entire
Privatizations                                        refining capacity of the country and meets
                                                      approximately 70% of total fuel demand in
In 2008 and 2009, the privatization of 20             Turkey. By implementing effective measures,
distribution regions (excluding Kayseri, which        Tüprafl ended 2009 with high profitability
was already privatized) continued. In 2008,           despite challenging market conditions,
Baflkent, Sakarya, Aras and Meram regions,             generating the highest operating profit per barrel                    22
and in 2009, Çoruh, Osmangazi and Yeflil›rmak
regions, were tendered for a 30-year period
                                                      from refining and marketing activities among                          23
                                                      global refineries in the last three quarters of the
through block sale. Tenders for the Vangölü,          year.
F›rat, Çaml›bel and Uluda¤ regions are
scheduled to be completed in the first quarter        Opet continued to increase its market share
of 2010 and privatization of the remaining            and maintained 3rd place in white products and
distribution assets are planned to be completed       2nd place in black products in the domestic
within the year.                                      market.

On the generation side, privatization tenders         Aygaz consolidated all energy companies in
for 52 mini hydro plants owned by Elektrik            Koç Holding Energy Segment, excluding fuel
Üretim A.fi. with 142 MW total installed capacity      and refineries, under its umbrella and became
are targeted to be held in 2010. The privatization    the main shareholder in these companies.
process for 4 coal plants with 3,074 MW               Aygaz, which is one of the five largest LPG
installed capacity is also expected to be kicked      companies in Europe, maintained its leadership
off in 2010. The remaining 13,128 MW will be          of the Turkish LPG sector.
privatized in 9 portfolios.
                                                      Koç Group companies own more than 70% of
                                                      Turkey's total storage capacity of crude oil and

       Tüpraş                        Turkey's only and Europe's
                                     8th largest refining company
       Total Revenues:
       $13,118 million               Tüprafl is Turkey's sole refining company,       Efforts to decrease operational and energy
                                     operating four oil refineries with an annual    costs bore fruit during the year. This
       Domestic Market Position:
                                     crude oil processing capacity of 28.1           yielded the Company $79 million
       Turkey's sole refining
                                     million tons. Tüprafl, which joined Koç          additional EBITDA and $32 million of
       70% of Turkey's fuel demand   Group in 2005 following the privatization,      energy savings. Tüprafl also made
       (including jet fuel)          is Turkey's largest industrial enterprise and   opportunistic purchases on the spot crude
                                     the 8th largest refining company in Europe.     market to minimize the risks pertaining to
       International Position:       With its large market share, corporate          the price differential between crude oil
       Europe's 8th,                 reliability, production facilities and          and finished products.
       world's 30th largest          partnerships, Tüprafl is a leading integrated
       refining capacity
                                     petroleum company.                              As a result of the profitability focused
       Share of International                                                        approach throughout the year, Tüprafl
       Revenues:                     Tüprafl is the supplier of 36 different          generated the highest operating profit per
       14.8%                         petroleum products across Turkey and is         barrel from refining and marketing activities
                                     among the most complex refineries in the        during the last three quarters of the year
                                     Mediterranean with a Nelson Complexity          among the global refineries.
       $ 779 million
                                     level of 7.25. In 2009, the Company sold
       Gross Refining Margin:        58.4% of its products to distribution           Around 70% of Turkey's total
       $ 9.21/barrel                 companies, 15.4% to export markets, 3.2%        storage capacity
                                     to the military, 4% to LPG customers, 9.3%
       Shareholder Structure:        to direct customers and 9.3% to asphalt         Tüprafl owns 40% of Opet, which is
       Enerji Yatırımları A.fi.       customers. 29% of the sales from Tüprafl         Turkey's 3rd largest fuel distribution
       51%                           refineries was made via pipelines while
       Free Float
                                                                                     company. Together with Opet, Tüprafl
                                     42% was made via marine transportation          owns about 70% of Turkey's total crude
       49%                           and 29% via land and railway                    oil and fuel storage capacity, giving Tüprafl
                                     transportation.                                 the highest potential of meeting the
                                                                                     country's national reserve requirement.
                                     Most profitable refinery in the
                                     last three quarters of the year                 Investments ensure
                                                                                     production at EU standards
                                     Tüprafl was one of the first refineries in
                                     the world to implement an optimum               The Master Investment Plan, which is
                                     production policy to minimize the impacts       meant to boost Tüprafl' profit potential and
             www.tupras.com.tr       of the challenging market conditions. The       competitive edge, modernize refineries
                                     Company ameliorated the impact of the           and enable production according to EU's
                                     crisis on its financial results through         environmental standards, was finished
                                     operational flexibility and optimum             with the completion of the ‹zmit Refinery
                                     inventory management. In 2009, the price        Gasoline specification improvement. As
                                     differential between Brent crude and heavy      of April 20, 2009, all gasoline products
                                     crude oil prices decreased, making crude        sold in Turkey are in Euro V specs and
                                     oil relatively more expensive. In response      their 10 ppm sulphur, aromatic and
                                     to the contracting refinery margins and         benzene values are equivalent to those of
                                     slim profitability in exports, Tüprafl           EU countries. 80 projects have been
                                     decreased crude oil charge and applied          completed in ‹zmit, ‹zmir and K›r›kkale
                                     an optimum production and sales policy          refineries to boost Tüprafl' operational
                                     to meet domestic demand by increasing           competence, energy efficiency and
                                     the use of semi-finished products               profitability have been initiated, generating
                                     (operationally more cost efficient relative     $234 million additional EBITDA.
                                     to crude oil). This maximized the utilization
                                     of its conversion units and increased the       To address the viscosity problems
                                     efficiency of white products with high          experienced in regions of Turkey with
                                     added value. As a result, the Company's         tough winter conditions, Tüprafl has
                                     crude capacity utilization came in at 60.4%,    produced a 10 ppm diesel oil that
                                     and total capacity utilization rate including   preserves its viscosity even at
                                     the semi-finished products was 69.1%. In        -25 degrees Celsius and introduced this
                                     line with the policies implemented, 18.2        product to the market on November 20,
                                     million tons of products were supplied to       2009.
                                     the domestic market and white product
                                     yield increased from 68.7% in 2008 to
                                     73.6% in 2009.
Important milestone in the                      Fitch increases Tüpraş's rating
Residuum Upgrading Project                      to 'BBB-'
The Residuum Upgrading Project was              On December 3, 2009, the international
planned by Tüprafl to increase the               credit rating agency, Fitch Ratings raised
Company's value-added by transforming           Turkey's foreign currency long term
low value black products such as fuel oil       country rating. Following that, Fitch Ratings
into more valuable white products such          also raised Tüprafl' foreign currency long-
as Euro V compliant gasoline and diesel,        term rating from BB to BBB-, the country
which are currently short supply in Turkey.     ceiling. Tüprafl' local currency long-term
The project, planned for the ‹zmit Refinery,    rating was confirmed as BBB- and its
was launched in 2008 with the basic             outlook for both types of currencies as
engineering stage. On December 17,              “stable”.
2009, Tüprafl signed an agreement with
the Spanish firm Tecnicas Reunidas as           The factors behind this increase are
the main contractor for the project.            Tüprafl' strong operational and financial
                                                structure, efficient storage capacity,
The Residuum Upgrading Project is               leadership in the Turkish market and a
estimated to cost $1.8 billion and is           cash structure exceeding the refining
planned for completion in early 2014.           sector average.
Once the investment is complete, Tüprafl'
production of black products will decrease      Strengthening Corporate
by 50%, and its white product yield will        Governance performance
increase to 83%. The investment will
increase ‹zmit Refinery's Nelson                Tüprafl increased its corporate governance
Complexity from 7.75 to 14.5, thus making       rating from 8.20 to 8.34 and is among the
it one of the most complex refineries in        pioneer companies of the ISE Corporate
Europe. This project will optimize the Izmit    Governance Index.
Refinery, while also increasing capacity
utilization by allowing raw material to flow
                                                “Accountability Award”
to Izmit from other refineries, and increase                                                                                        25
product flexibility and maximization at all     Tüprafl took 2nd place in a field of Turkey's
refineries. The project is estimated to         top-50 revenue-earning companies in the
generate additional revenues of around          “Ethical Accountability 2008 Turkey
$1 billion and EBITDA of $420 million.          Assessment” conducted by AccountAbility,
                                                an independent corporate social
R&D focused projects                            responsibility and accountability
                                                organization, in cooperation with the
Tüprafl aims to create an environment of         Institute for Social Responsibility.
collaboration between universities,
research institutions and industry to jointly   Health, Safety and
develop and manage research projects.
To this end, the first joint projects with      Environment (HSE) at world
TÜB‹TAK MAM, Koç University, Bo¤aziçi           standarts
University, METU and Dokuz Eylül
University have been initiated and a            Human health, technical safety and the
Master's Degree Program has been                environment, which together are the
established at the Bo¤aziçi University.         building blocks of sustainability, are
Numerous R&D projects were initiated            continuously at the forefront of Tüprafl'
during the year from diverse areas and          thinking and operations. In 2009, the
subjects such as the real time optimization     number of accidents were halved
of the Hydrocracker Unit, the design of         compared to 2008. In 2009, Tüprafl
devices for cooling the air coming from         proudly outperformed its targets and
                                                reached world standards in accident               Why Tüpras
reactors, modeling the mechanisms for
                                                incidence and severity rates, two of the
exchanger pollution generation,                                                                  •Turkey's only
                                                most important safety performance criteria,                         refi
purification of chimney gases and the
mathematical simulation and modeling of         at 2.5 and 73 respectively.                      •70% of Turkey's ning company
                                                                                                                     total licensed storag
refining operations.                                                                               capacity                               e
                                                                                                •Highly complex
                                                                                                •Production at
                                                                                                                   EU standards
                                                                                                •Strong logistics
                                                                                                                  synergy with Ayg
                                                                                                 and Opet                              az

       Opet                         Continued increase in market
       Total Revenues:
       $ 4,756 million              Established in 1992, Opet Petrolcülük
                                    joined Koç Group as a 50-50 joint venture
       Domestic Market Position:    in 2002. The Company is engaged in retail
       3rd in white products with   and wholesale distribution of petroleum
       16.6% market share
                                    products including jet-fuel, production and
       2nd in black products with
       26.0% market share
                                    marketing of lubricating oil and the
                                    international trade of petroleum products.
       Network:                     Opet endeavors to develop its activities
       1,324 stations               and boost its service quality and market
       (including Sunpet)           share with the ultimate objective of             Unrivalled sector leader in
       EBITDA:                      becoming the consumer's first choice in          customer satisfaction
       $ 262 million                the Turkish fuel distribution sector.
                                                                                     Opet continued its leadership in customer
       Gross Profit Margin:                                                          satisfaction in the fuel distribution sector
                                    Opet continued to increase its market
                                    share in 2009. As of year-end 2009, it was       for the 4th consecutive year based on the
       Operating Profit Margin:     the 3rd largest fuel distributor in the white    results of the Turkish Customer Satisfaction
       4.9%                         products (gasoline and diesel) with 16.6%        Index survey conducted every year by
                                    market share and the 2nd largest in black        KalDer, the Turkish Society for Quality.
       Shareholder Structure:       products (fuel oil and heating fuel) with a      Opet has achieved sustainable sector
       Tüprafl                       26.0% market share. Despite the                  leadership due to the importance that it
       40.0%                        contraction of the fuel market, Opet drove       gives to its customers.
       Other Koç                    its sales volume up 5.1% in white products
       10.0%                        and 26.1% in black products during the           The number of customers enrolled in the
       Öztürk Group                                                                  'Opet Kart' customer program rose from
                                                                                     2.9 million in 2008 to 3.6 million by the
                                    Opet increased the number of its stations        end of 2009.
                                    from 1,317 at the end of 2008 to 1,324 at
                                    the end of 2009. Of these, 798 operate           Opet is a socially responsible company
                                    under Opet brand and 526 under the               that supports the society by focusing on
                                    Sunpet brand.                                    environmental and social issues through
                                                                                     projects that are integrated in its activities
                                    Highest storage capacity in the                  and relationships with its stakeholders.
                www.opet.com.tr     fuel distribution sector                         Social responsibility plays an important
                                                                                     part in Opet's corporate culture. Since its
                                    As of year-end 2009, with the completion         foundation, the Company has carried out
                                    of the facilities in construction, the total     numerous social responsibility projects
                                    storage capacity reached 1.1 million.            and many others are currently under way.
                                    Together with Tüprafl, Opet owns about
                                    70% of Turkey's total storage capacity           2010 and beyond
                                    including petroleum products and crude
                                    oil. This rise in the storage capacity further   Opet's targets and strategy in the
                                    augments Opet's competitive advantage            upcoming period are focused on its main
                                    in the sector.                                   competitive advantages. Opet aims to
                                                                                     realize unique and successful projects,
                                    In 2009, Opet continued to deliver storage       while enhancing its service quality and
                                    services to international firms engaging in      strengthening its customer relationship
                                    trade and transfer services in the petroleum     management infrastructure. As a result,
                                    sector in its Marmara Ere¤lisi Terminal. As      Opet aims to increase its market share
                                    of the end of 2009, the capacity leased to       and achieve growth, while maintaining
                                    international firms stands at 470,000 m3.        customer satisfaction.
Aygaz                            Turkey's leading LPG company

Total Revenues:                  Aygaz is Koç Group's first company in the      According to Energy Market Regulatory
$ 2,448 million                  energy sector and has been the leader of       Authority (EMRA) data, Aygaz Group's
                                 the Turkish LPG sector since the day it        sales in 2009 in the cylinder, bulk and
Domestic Market Position:        was established. The Company's                 autogas segments amounted to 1.1
(Including Mogaz)                achievements in recent years have put it       million tons. Total sales, including domestic
Leader in the LPG sector since   among the top five LPG companies in            wholesale, domestic retail, barter, exports
its establishment in 1961
                                 Europe. In addition to autogas, cylinder       and transit sales, reached 1.6 million tons.
Market shares:
                                 LPG and bulk LPG distribution, Aygaz also      Aygaz posted revenues of $2.4 billion in
38.6% in cylinder LPG
23.9% in autogas                 manufactures and sells LPG equipment.          2009. Export and transit sales amounted
29.8% in total LPG               Aygaz owns and operates Turkey's first         to $109 million.
                                 and only LPG maritime fleet, which it uses
Distribution network:            for international LPG trading.                 Capital expenditures by Aygaz and its
(Including Mogaz)                                                               subsidiaries reached $83.1 million in 2009.
3,263 total sales points:        Innovation and reliability are the two core
2,142 cylinder LPG dealers       qualities that have placed and kept Aygaz,     Strong distribution network
1,121 autogas stations           the generic brand name for cylinder gas        and product quality
                                 in Turkey, at the forefront since its first
International Position:
Europe's 5th largest             day. Aygaz has almost 50 years of              Aygaz provides services in all 81 provinces
LPG distribution company         experience and know-how and is fully           in Turkey through its 2,142 cylinder gas
                                 committed to making the brand even             dealers and 1,121 autogas stations in its
Share of International           stronger by developing its product line to     endeavor to become the “company closest
Revenues:                        match the ever changing consumer needs.        to the consumer”. Due to its large
5%                               A flagship company of Koç Holding, Aygaz       distribution network, more than 100,000
EBITDA:                          has a diversified portfolio and is now the     households purchase Aygaz LPG cylinders
$ 252 million                    umbrella company consolidating Koç             and one million vehicles run on Aygaz
                                 Holding Energy Group companies                 Euro LPG+ every day.
Gross Profit Margin:             excluding fuel distribution and refining.
                                 To this end, Aygaz increased its share of      In 2009, Aygaz maintained its undisputable          26
                                 Entek and Aygaz Do¤al Gaz in 2009.
Operating Profit Margin:                                                        leadership position in the LPG sector and           27
8%                                                                              all its sub segments with a 29.8% total
                                 Aygaz is Turkey's 9th largest private-sector   market share. As the only LPG company
Shareholder Structure:           industrial company according to ‹stanbul       operating in the autogas market with its
Koç Holding                      Chamber of Industry's “Turkey's Top 500        own brand nationwide, Aygaz reinforced
51.2%                            Industrial Enterprises 2008” listing and is    its leadership and increased autogas sales
                                 Turkey's first and only publicly-traded LPG    by 10.9% in 2009, at the backdrop of a
                                 company. Aygaz is one of the few               9% market growth. Despite the overall
Free Float
24.3%                            companies that has managed to become           contraction in the cylinder LPG market,
                                 the generic brand for its product and is       the Company continued to increase its
                                 fully committed to environmentally sensitive   market share in this segment as well.
                                 and sustainable development. Focused
                                 on the areas of education, culture, arts       During the difficult period when economic
                                 and the environment, Aygaz emphasizes          recession hit sales, Aygaz's strong
                                 both the past and the future in its social     distribution network and product quality
                                 responsibility projects as a company that      continued to make a difference. According
                                 embraces the past while continuing to          to EMRA data, Aygaz's 2009 market share
                                 invest in the future.                          (including the Mogaz brand) in the cylinder
                                                                                LPG market reached 38.6% and its share
                                                                                of the autogas market was 23.9%.

                                                                                                     Why Aygaz?
                                                                                                   •Turkey's leading
                                                                                                                       LPG company
                                                                                                   •Turkey's largest LP
                                                                                                                        G storage capacity
                                                                                                   •Service to more th
                                                                                                    households daily an 100,000
                                                                                                  •1 million vehicles ru
                                                                                                   Euro LPG+ every nning on Aygaz

       Superior procurement and                                                                            2010 and beyond
       logistics power
                                                                                                           Aygaz's main objective is to remain the
       Aygaz is Turkey's number one LPG                     Aygaz continued its R&D efforts,               LPG sector leader for quality and safety.
       importer and it operates Turkey's largest            technology improvement projects and            Sustaining leadership in all segments,
        tanker truck fleet. Aygaz transports the            innovations in 2009. The Company has           raising market share and maximizing
       LPG it procures from domestic or                     filed patent applications to the Turkish       profitability are the pre-eminent short and
       international refineries to its filling facilities   Patent Institute under three categories in     medium term strategies of Aygaz. As for
       via pipeline, ship or tanker trucks. LPG is          2009: liquid measuring system, cylinder        the long-term, Aygaz aims to widen its
       distributed throughout Turkey in the form            loading machine, and automatic painting        energy pool by developing solutions for
       of cylinder, bulk or autogas via its 3,300           machine with rotating base for household       Turkey's alternative energy needs.
       dealers.                                             type cylinders.
       Aygaz has 5 marine terminals, 10 filling             Awards for achievements
       facilities and a maritime fleet of 4 LPG                                                            Mogaz is the second Koç Group Company
       vessels, all equipped and operating at               Aygaz is ranked among Turkey's top 5           operating in the LPG sector with Aygaz.
       international standards. Aygaz owns the              most transparent companies in terms of         Mogaz provides distribution services under
       largest LPG storage capacity of Turkey,              corporate governance in the “Turkish           the Mogaz and Lipetgaz brands and ranks
       with 170,000 m3 excluding the tanker                 Transparency and Disclosure Research”          7th largest in the Turkish LPG market
       fleet. Its Dörtyol Marine Terminal ranks as          prepared by Sabanc› University Corporate       among 63 companies with a total annual
       one of Turkey's largest LPG entry stations.          Governance Forum in partnership with           sale volume of 200,000 tons. The
       Aygaz marine terminals have an annual                Standard and Poor's. Aygaz was ranked          Company ranks 4th in cylinder gas, 3rd in
       LPG throughput capacity of 1 million tons.           among the top 5 companies in the “Ethical      bulk gas and 8th in autogas segments.
       LPG cylinders, tanks, valves and regulators          Accountability 2008 Turkey Assessment”
       produced at Aygaz's Gebze facility, are              conducted by AccountAbility, an                Mogaz maintained its strong position and
       exported to 15 countries in Europe, the              independent corporate social responsibility    reached a market share of 5.3% with
       Middle East and Africa.                              and accountability organization, in            expanding direct sales activities in 10 cities
                                                            cooperation with Institute for Social          and newly opened dealerships in 2009.
       An environmentally friendly                          Responsibility. The “Best Brands” survey
       product: Aygaz Euro LPG+                             conducted by an independent research           In July, Mogaz started distributing Aygaz
                                                            company identified Aygaz as one of             Euro LPG+, autogas with additive
       Aygaz continued to lead the growing                  Turkey's top 4 product brands and the          developed and introduced to the market
       autogas market in 2009 by expanding its              best brand in the LPG sector. Aygaz's 3D       by Aygaz in June. The product was
       product and service portfolio and offering           corporate website, www.aygaz.com.tr, won       promoted through a marketing campaign
       solutions to meet customers' needs.                  the “Outstanding Achievement” award in         and applauded by dealers and consumers
       Launched in 2009 after four years of                 the energy category of the“Interactive         alike.
       intensive research, Aygaz Euro LPG+,                 Media Awards” competition. The Society
       autogas with additive, provides a cleaner            of Health Volunteers awarded Aygaz 2nd         In 2010, Mogaz aims to increase its share
       engine, higher performance, lower                    place in the Social Responsibility Grand       in the autogas and cylinder gas markets
       consumption and a more environmentally               Award category for the Company's social        and develop its direct sales activities and
       friendly fuel alternative.                           responsibility project “Ay›fl›¤› - Moonlight:   improve customer satisfaction.
                                                            Beam of Health from Aygaz”.
       Aygaz organizes “Cylinder Gas Briefing
       Trainings” to increase consumer
       awareness about cylinder gas usage and
       to encourage its safety and efficiency.

       As the owner of the highest number of
       patents in the Turkish LPG sector, Aygaz
       places great emphasis on innovation in
       the areas of environmental protection and
       ecological sustainability, which are two
       indicators of social development, with the
       belief that the development of technologies
       that utilize clean and renewable energy
       sources is critical both for the country and
       the world as a whole.
Entek                                                                                            Akpa
Entek is Koç Group's power generation           Entek intends to make new investments to         Akpa carries out LPG distribution,
company that operates two natural gas           maintain its market share in the future, to      wholesale marketing of petroleum
combined cycle plants and one gas turbine       utilize alternative resources for investments,   products, and retailing and wholesaling of
based cogeneration facility in Istanbul,        establish large, powerful and high efficiency    consumer durables. The Company has
Kocaeli and Bursa with a combined               power plants, and to direct itself towards       dealers in Bursa, Eskiflehir, Antalya, Ankara,
capacity of 302 MW. As of the end of 2009,      renewable energy that poses no input price       ‹zmir and Denizli and generated TL200
Entek ranked 6th among private sector           uncertainty. In addition to optimal              million revenues in 2009.
power generation companies in Turkey            adaptation to the Balancing and Settlement
with 5% share in the private sector's total     Code that became effective in December
production. 83% of the energy generated         2009, the Company aims penetrate the
                                                                                                 Demir Export
by Entek is sold to the Market Financial        bilateral contracts market via Eltek to create   Demir Export is Turkey's 2nd largest private
Settlement Center via the current               alternative sales channels. Financial            sector coal producer for thermal power
transmission networks while 11% is sold         difficulties experienced by several              plants. It also mines iron, chrome, zinc and
to customers connected with a direct            companies in the sector create new               copper ores. The Company is an exporter
transmission line to the plant. The remaining   acquisition opportunities.                       of copper, chrome and zinc.
6% is sold as steam energy from the Bursa
and Kocaeli facilities. Eltek was founded
as a subsidiary of Entek in 2003 and            Aygaz Doğal Gaz                                  Demir Export focused on operational
                                                                                                 efficiency and continued its activities in
operates in the wholesale electricity market.
                                                Aygaz Do¤al Gaz operates in the natural          2009 in a way to shield it from the impact
                                                gas market, selling and transmitting             of sudden price fluctuations. Being the
Turkey’s demand for electricity decreased
                                                liquefied natural gas (LNG) and                  supplier of a strategic product range
by about 2.5% in 2009 and a the total
                                                compressed natural gas (CNG).                    provided resilience to Demir Export in a
generation capacity increased by 2800 MW.
                                                                                                 volatile environment.
Particularly in the second half of the year,
supply surpassed demand, causing prices         As part of the liberalization of the natural
                                                gas market, wholesaling natural gas via          Demir Export emphasizes quality, the
to fall. The amount of water accumulating
                                                pipelines gained a momentum in 2009.             environment, occupational safety and
in the dams increased by more than 100%
                                                The Company signed a natural gas                 worker health in all its activities. It is Turkey's
compared to 2008, which further increased
                                                procurement agreement with a licensed            first and only coal producer to have ISO-             28
available capacity. During this period, Entek
managed to maintain its profitability by        gas-importing company and natural gas            9001 Quality, ISO-14001 Environment and               29
                                                sales agreements with consumers.                 OHSAS 18001 Occupational Health and
implementing flexible operational processes
                                                                                                 Safety Management Systems certifications.
and achieving optimum capacity utilization
rates. Entek's main strengths were direct       Aygaz Do¤al Gaz will start natural gas
customers connected with a transmission         wholesaling to independent consumers via
line to the Kocaeli plant, sales to steam       pipelines on January 1, 2010.
customers and the employment of flexible
operational methods.

The established capacity increased by
62 MW with the addition of 15 MW power
from the steam turbine and the completion
in August 2009 of LM6000 unit at a total
investment cost of $31 million. The
company also renewed a LM6000 unit in
Bursa and a HSPT unit and a LM2500
turbine in Kocaeli.

                                                                                                                             Otlukilise iron mine

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