PDF (3,0MB) - Türk Telekom Investor Relations

PDF (3,0MB) - Türk Telekom Investor Relations PDF (3,0MB) - Türk Telekom Investor Relations

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Türk Telekom Human ResourcesEmploying 37,524 people by the year-end of 2012, TürkTelekom Group offer all employees with an opportunity ofutilizing their potentials by attaching great importance totheir development.Türk Telekom endeavors to provide every kind ofdevelopment opportunity and support for enablingits employees, who came from different geographies andhave different backgrounds and professions, to work ina harmonious, delightful work environment by sharing acommon language and the values of the company.By the end of 2012, Türk Telekom Group employed atotal of 37,524 people. Türk Telekom provides servicewith over 24,000 employees, 16% of whom are womenand 84% of whom are men. Of total employees, 30%have bachelor’s degrees and 27% are associate degreeprogram graduates. Of total employees, 24% are aged22 to 29 years old, 42% are aged 30 to 44 years old, and34% are 45 years old or older.Türk Telekom Group Personnel InformationTürk Telekom 24,183AVEA 1,947TTNET 566ARGELA 153INNOVA 684SEBIT 246ASSISTT 9,417SOBEE 30PANTEL 298Total 37,524Talent ManagementWithin 2012, all recruitment processes were transferred intoSAP and made more integrated and efficient. The TalentManagement system, which is built with the “Everyone is apotential” approach, seeks to enable all employees to utilizetheir full potential. While employee potential is assessed withthe Talent Management Model, career and developmentprojections are made in line with the talents of personnel.24,000 Employees In 81 Provinces Together On TheSame PlatformThrough its Performance Management System, TürkTelekom aims to create an corporate culture displayinghigh performance. This requires achievement oftargets, providing profitability for investors, and havingcompetitive human resources. Considering thesefactors, Türk Telekom focuses on the development of itsemployees at the highest level.The Türk Telekom family’s internal communicationportal, İleTTişim, provides to over 24,000 employees in81 provinces an important means of self-development aswell as crucial information such as corporate data, workrelated resources, personal data, demand managementand other information.Türk Telekom AcademyTürk Telekom Academy conducts training and developmentactivities in order to sharpen the Company’s competitiveedge in the industry, foster the development of TürkTelekom Group’s intellectual capital, and transform theindividual know-how of employees into corporate know-how.Türk Telekom Academy also performs organizationaldevelopment activities, international projects, andcollaborations in addition to training and developmentprograms. The Academy carries out activities under thetitles of portal management, education managementsystem and SAP management, training promotionpublicity activities and education catalog management.2012 Training and Certification ProjectsIn 2012, with the contributions of Innova, a Türk TelekomGroup Company, new certificate programs aimed atproviding successful managerial and leadership models formanagers serving in the information sector were launched.These programs, organized under the names of “LeaderDevelopment in Information Sector,” “Manager Developmentin Information Sector” and “Project Manager Developmentin Information Sector,” seek to provide required technicalknowledge and skills for enabling personnel to perform theirtasks in their current positions with higher quality.Within the scope of the Call Center OperationalDevelopment Project, by preparing competence setsintended for operations employees of AssisTT, a TürkTelekom Group Company, career planning, performanceassessment, assessment center, training processes andtraining catalogs were prepared. Also, integrated humanresources processes structuring study was performed forthe company.The DSLAM Expertise Basic Level Certificate Programthat was initiated recently contributed to the professionaldevelopment of access and network personnel who arein charge of the planning, installation, operation andmaintenance of DSLAM systems that enable broadbandservices (xDSL).In 2012, authorization was obtained for the test centersof Prometric, a certification testing provider, and PearsonVue, which carries out activities for providing licensing,regulation, certification and academic test services.Türk Telekom Group aimed to improve the productivity ofthe training and development activities performed withinTürk Telekom Group through its Measurement of Returnon Training Programs Project implemented in 2012. In thiscontext, the efficiency of performed trainings is measuredand necessary actions are planned for development whilecontributions of training and development activities to thecompany and company employees are assessed.Türk Telekom CollaborationsWith the intent of developing human resources, TürkTelekom continued its collaborations with manycorporations and establishments in 2012.HuaweiThe Cable Transmission Systems Competence DevelopmentCertificate Program carried out with the Türk Telekom -Huawei cooperation was among the certificate programsrealized in 2012. This program was organized with theintention of improving the competencies of personnelworking in Network SMC/Backbone and R-SMC/Regionaloperations which are based on a 24/7 principle foruninterrupted operation of transmission network.Training and Development Platform Association ofTurkey (TEGEP)In 2012, the 12 SME representatives who placed within thescope of certificate programs organized in 2011 with thesupport of Training and Development Platform Associationof Turkey (TEGEP), began the certification program withinthe framework of “Leader Development CertificationProgram.” A second organization of the competition wasorganized again by Türk Telekom Academy wherein rankedSME owners will be included in 2013 trainings.Association for Telecoms Businessmen (TÜTED)Within the scope of collaboration with the Association forTelecoms Businessmen (TÜTED), Türk Telekom Academycontinued to organize certification programs in 2012 withthe intention of improving the global competitive powerof Turkey’s telecommunications sector.Together with TÜTED, the “Telecommunication TechnologiesCertificate Program” and “Information TechnologiesCertificate Program,” both of which are prepared in linewith emerging innovations in the fields of information andtechnology, seek to create awareness for third and final yearundergraduate students, graduates, and vocational highschool students pursuing education in telecommunications.MicrosoftThrough expertise of Microsoft Silver Learning, thetraining business partner and authorized training centerof Microsoft, Turk Telekom set up a business partnershipthat may provide accredited training service with Microsoftall across Turkey under the titles such as Windows, Office,Dynamics, Server Technologies and Visual Studio.Collaboration with UniversitiesAlso in 2012, Türk Telekom Academy continued to supporttraining and development activities of Türk Telekom Groupemployees by concluding comprehensive collaborationagreements with universities. Within the scope ofcollaborations concluded between Bilkent University,Bahçeşehir University, Fatih University and Türk Telekom,employees continued to benefit from discounted master’sdegree programs. Through these collaborations, TürkTelekom Academy aims to improve the competencies ofpersonnel, to enhance intellectual knowledge level, and tocontribute to the development of the sector.In 2012, with the collaboration concluded with CambridgeUniversity, the BULATS (Business Language TestingService) testing service was launched. BULATS isprepared by the ESOL Exam Center and regarded as mostprestigious business language test of the world.76TÜRK TELEKOM ANNUAL REPORT 2012

Investor RelationsWith a market capitalization of nearly TL 24.1 billion atthe end of 2012, Türk Telekom is one of the most valuablecompanies in Turkey.Carrying out its public disclosure and transparencyefforts in full compliance with corporate governanceprinciples, Türk Telekom equally protects the interests ofall of its shareholders and stakeholders.In 2012, Investor Relations focused on providing timely,accurate and complete information to shareholders andall related stakeholders and responded to over 1,000information requests via telephone and email. Withinthe same period, the department participated in 24foreign and five local investor conferences and organizedroadshows and met with over 420 representativesfrom over 370 investment enterprises. Furthermore,within the body of the Capital Markets and InvestorRelations Directorship, the group conducted over 30investor meetings and nearly 100 teleconferences. Thedepartment met with over 200 shareholders and/oranalysts, and their queries were responded to personally.The Investor Relations website was enhanced in 2011through an analysis of best practices across the world,and it now provides the most rapid access of informationto shareholders and stakeholders. As Turkey’s firstinvestor relations website compatible with tabletcomputers and mobile phones, it has Turkish and Englishversions which are updated simultaneously. Completewith analysts’ reports and expectation survey results,the website also features the automatically updatedshare price of Türk Telekom on its home page for theconvenience of users.Türk Telekom’s monthly economic bulletin, first publishedin 2011, was also met with great interest from investorsand in no time became a pioneering publication in theindustry, both domestically and internationally.Expanding Corporate Investor BaseIn 2012, as a result of the intense target-driven workby the Investor Relations team, Türk Telekom madesignificant progress in its corporate investor basecompared to previous years. By the year’s end, TürkTelekom had over 220 corporate investors. The corporateinvestor base structure is: 43% US-based funds, 26% UKbasedfunds and 17% Europe-based funds. The numberof brokerage houses actively following Türk Telekomexceeded 30, which is a very high figure for a Turkishcompany.Turkey’s First Investor Relations SummitTurkey’s first Investor Relations Summit, organized bythe Turkish Investor Relations Society (TÜYİD), and washeld in December 11, 2012 with the pioneering role ofTürk Telekom Investor Relations. Over 100 professionalsfrom investor relations, brokerage houses and fundmanagement companies attended the event whichincluded panels about communications tools for InvestorRelations, international investor relations managementand effective investor targeting. Notable panelistsincluded Onur Öz, Türk Telekom Capital Markets andInvestor Relations Director. The panels were followedby a cocktail reception with a keynote speech by ISEChairman Dr. İbrahim Turhan. TTNET CEO and TÜYİDVice President Abdullah Orkun Kaya attended the cocktailreception, where Dr. İbrahim Turhan gave a speechabout latest news on Capital Markets and the plannedinnovations for the coming period.Corporate Governance RatingsRated in 2009 by corporate governance agencySAHA, Türk Telekom is the one and only TurkishTelecommunications Company with a corporategovernance rating. Featured in the Istanbul StockExchange’s (ISE) Corporate Governance Index, TürkTelekom increased its corporate governance rating to8.80 in 2012, from the previous year’s 8.37, once againconfirming its commitment to corporate governanceprinciples. The main categories of Türk Telekom’scorporate governance rating were as follows:Main Categories Weight % Allocated& Scores ReceivedRatingShareholders 25 8.07Public Disclosure and Transparency 35 9.33Stakeholders 15 9.33Board of Directors 25 8.47Total 100 8.80This assessment is a clear indication that Türk Telekomlargely complies with CMB’s corporate governanceprinciples and implements the required policies andpractices. As a result of this assessment, Türk Telekomconfirmed that it employs efficient management andinternal control mechanisms, identifies and activelymanages a large proportion of corporate governancerisks, protects the rights of shareholders andstakeholders in a fair manner, runs premium publicdisclosure and transparency practices, and the companyalso documented that the structure and operation of theBoard of Directors was built on a solid foundation.Performance and Dividend ProductivityTraded on the ISE since May 2008, Türk Telekom hasbecome one of the most valuable companies on thestock exchange as a result of its superior financial andoperational performance, successful management teamand active investor relations efforts. Türk Telekom’smarket capitalization, which was TL 24.5 billion as of 2011year-end, was around TL 24.5 billion as of 2012 year-end.From Türk Telekom’s IPO until 2012 year-end, the ISE-100Index gained 106% in value while TTKOM stock increased113%. While the stock exchange followed a fluctuatingcourse in the first quarter of 2012 due to domestic andglobal driven issues, the ISE-100 Index began to positivelydecouple from global markets. The determinant forthis differentiation was the rating upgrade of Fitch inNovember with the expectation that Turkey’s creditrating would be upgraded to investment grade. Alongwith all these developments, the ISE-100 Index improvedby 52% in 2012. Thanks to this positive decoupling, theshare of foreign investors in free float reached 66% butclosed out 2012 at 63%.Despite a dividend distribution totaling TL 1.9 billion inMay 2012, TTKOM’s share price was TL 6.92 as of 2012year-end, down from TL 7.02 as of 2011 year-end. Ifdividend effect was excluded, gain on TTKOM’s shareprice realized 94% and the share of foreign investorsin free float realized at the level of 70%, above the ISEaverage.Featured in the ISE Dividend 25 Index, Türk Telekom haspaid nearly TL 7 billion in dividends since 2008. Havingbroken a record in ISE history in 2011 by paying TL 2,244million in gross cash dividends, the company in May 2012distributed its entire 2011 distributable profit of TL 1,896million in gross cash dividends. Türk Telekom’s Boardof Directors decided to propose to the first GeneralAssembly the distribution to shareholders of the entire2012 distributable profit of TL 2,413 million. Türk Telekominvestors’ dividend earnings per share in the years 2008,2009, 2010 and 2011 were realized respectively as TL0.43, TL 0.45, TL 0.64 and TL 0.54. In the event thatthe General Assembly approves this proposal, dividendearnings per share in 2012 will be TL 0.69.78TÜRK TELEKOM ANNUAL REPORT 2012

Türk <strong>Telekom</strong> Human ResourcesEmploying 37,524 people by the year-end of 2012, Türk<strong>Telekom</strong> Group offer all employees with an opportunity ofutilizing their potentials by attaching great importance totheir development.Türk <strong>Telekom</strong> endeavors to provide every kind ofdevelopment opportunity and support for enablingits employees, who came from different geographies andhave different backgrounds and professions, to work ina harmonious, delightful work environment by sharing acommon language and the values of the company.By the end of 2012, Türk <strong>Telekom</strong> Group employed atotal of 37,524 people. Türk <strong>Telekom</strong> provides servicewith over 24,000 employees, 16% of whom are womenand 84% of whom are men. Of total employees, 30%have bachelor’s degrees and 27% are associate degreeprogram graduates. Of total employees, 24% are aged22 to 29 years old, 42% are aged 30 to 44 years old, and34% are 45 years old or older.Türk <strong>Telekom</strong> Group Personnel InformationTürk <strong>Telekom</strong> 24,183AVEA 1,947TTNET 566ARGELA 153INNOVA 684SEBIT 246ASSISTT 9,417SOBEE 30PANTEL 298Total 37,524Talent ManagementWithin 2012, all recruitment processes were transferred intoSAP and made more integrated and efficient. The TalentManagement system, which is built with the “Everyone is apotential” approach, seeks to enable all employees to utilizetheir full potential. While employee potential is assessed withthe Talent Management Model, career and developmentprojections are made in line with the talents of personnel.24,000 Employees In 81 Provinces Together On TheSame PlatformThrough its Performance Management System, Türk<strong>Telekom</strong> aims to create an corporate culture displayinghigh performance. This requires achievement oftargets, providing profitability for investors, and havingcompetitive human resources. Considering thesefactors, Türk <strong>Telekom</strong> focuses on the development of itsemployees at the highest level.The Türk <strong>Telekom</strong> family’s internal communicationportal, İleTTişim, provides to over 24,000 employees in81 provinces an important means of self-development aswell as crucial information such as corporate data, workrelated resources, personal data, demand managementand other information.Türk <strong>Telekom</strong> AcademyTürk <strong>Telekom</strong> Academy conducts training and developmentactivities in order to sharpen the Company’s competitiveedge in the industry, foster the development of Türk<strong>Telekom</strong> Group’s intellectual capital, and transform theindividual know-how of employees into corporate know-how.Türk <strong>Telekom</strong> Academy also performs organizationaldevelopment activities, international projects, andcollaborations in addition to training and developmentprograms. The Academy carries out activities under thetitles of portal management, education managementsystem and SAP management, training promotionpublicity activities and education catalog management.2012 Training and Certification ProjectsIn 2012, with the contributions of Innova, a Türk <strong>Telekom</strong>Group Company, new certificate programs aimed atproviding successful managerial and leadership models formanagers serving in the information sector were launched.These programs, organized under the names of “LeaderDevelopment in Information Sector,” “Manager Developmentin Information Sector” and “Project Manager Developmentin Information Sector,” seek to provide required technicalknowledge and skills for enabling personnel to perform theirtasks in their current positions with higher quality.Within the scope of the Call Center OperationalDevelopment Project, by preparing competence setsintended for operations employees of AssisTT, a Türk<strong>Telekom</strong> Group Company, career planning, performanceassessment, assessment center, training processes andtraining catalogs were prepared. Also, integrated humanresources processes structuring study was performed forthe company.The DSLAM Expertise Basic Level Certificate Programthat was initiated recently contributed to the professionaldevelopment of access and network personnel who arein charge of the planning, installation, operation andmaintenance of DSLAM systems that enable broadbandservices (xDSL).In 2012, authorization was obtained for the test centersof Prometric, a certification testing provider, and PearsonVue, which carries out activities for providing licensing,regulation, certification and academic test services.Türk <strong>Telekom</strong> Group aimed to improve the productivity ofthe training and development activities performed withinTürk <strong>Telekom</strong> Group through its Measurement of Returnon Training Programs Project implemented in 2012. In thiscontext, the efficiency of performed trainings is measuredand necessary actions are planned for development whilecontributions of training and development activities to thecompany and company employees are assessed.Türk <strong>Telekom</strong> CollaborationsWith the intent of developing human resources, Türk<strong>Telekom</strong> continued its collaborations with manycorporations and establishments in 2012.HuaweiThe Cable Transmission Systems Competence DevelopmentCertificate Program carried out with the Türk <strong>Telekom</strong> -Huawei cooperation was among the certificate programsrealized in 2012. This program was organized with theintention of improving the competencies of personnelworking in Network SMC/Backbone and R-SMC/Regionaloperations which are based on a 24/7 principle foruninterrupted operation of transmission network.Training and Development Platform Association ofTurkey (TEGEP)In 2012, the 12 SME representatives who placed within thescope of certificate programs organized in 2011 with thesupport of Training and Development Platform Associationof Turkey (TEGEP), began the certification program withinthe framework of “Leader Development CertificationProgram.” A second organization of the competition wasorganized again by Türk <strong>Telekom</strong> Academy wherein rankedSME owners will be included in 2013 trainings.Association for Telecoms Businessmen (TÜTED)Within the scope of collaboration with the Association forTelecoms Businessmen (TÜTED), Türk <strong>Telekom</strong> Academycontinued to organize certification programs in 2012 withthe intention of improving the global competitive powerof Turkey’s telecommunications sector.Together with TÜTED, the “Telecommunication TechnologiesCertificate Program” and “Information TechnologiesCertificate Program,” both of which are prepared in linewith emerging innovations in the fields of information andtechnology, seek to create awareness for third and final yearundergraduate students, graduates, and vocational highschool students pursuing education in telecommunications.MicrosoftThrough expertise of Microsoft Silver Learning, thetraining business partner and authorized training centerof Microsoft, Turk <strong>Telekom</strong> set up a business partnershipthat may provide accredited training service with Microsoftall across Turkey under the titles such as Windows, Office,Dynamics, Server Technologies and Visual Studio.Collaboration with UniversitiesAlso in 2012, Türk <strong>Telekom</strong> Academy continued to supporttraining and development activities of Türk <strong>Telekom</strong> Groupemployees by concluding comprehensive collaborationagreements with universities. Within the scope ofcollaborations concluded between Bilkent University,Bahçeşehir University, Fatih University and Türk <strong>Telekom</strong>,employees continued to benefit from discounted master’sdegree programs. Through these collaborations, Türk<strong>Telekom</strong> Academy aims to improve the competencies ofpersonnel, to enhance intellectual knowledge level, and tocontribute to the development of the sector.In 2012, with the collaboration concluded with CambridgeUniversity, the BULATS (Business Language TestingService) testing service was launched. BULATS isprepared by the ESOL Exam Center and regarded as mostprestigious business language test of the world.76TÜRK TELEKOM ANNUAL REPORT 2012

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