Energy Group - Zorlu Enerji

2007 Annual Report
Energy in our dreams...

in this report
Zorlu Energy Group: From Past to Present 04
Corporate Profile 08
Financial Highlights 09
Zorlu Group 12
Energy Group 13
Power Plants of Zorlu Energy 14
The Strengths and Competitive Advantages of Zorlu Energy 16
Message from the Chairman 18
Message from the CEO of the Zorlu Energy Group 20
Board of Directors 24
Senior Management 26
Management Assessment and Analysis of Operational Results 28
Group Companies 46
Corporate Governance Principles Compliance Report
and Financial Information 50
Profit Distribution Policy and Proposal 62
Statutory Auditors’ Report 63
Resolution of the Board of Directors 64
Consolidated Financial Statements at 31 December 2007
Together with Auditor's Report 65
Investor Information 103
Directory 104

Zorlu Energy Annual Report
With its integrated activities extending
from generation and sales of electric
power, production, distribution and
sales of natural gas and project
process to “turnkey” installation and
long term maintenance and operation
of power plants, Zorlu Energy Group
enjoys a unique position in its sector.
our dreams
Working for a happy future in a better
world.
01

02 Zorlu Energy 2007 Annual Report
continuous
Zorlu Energy Group is one of the leading and
most powerful players in the sector.
6 Natural gas
conversion
plants
Energy in our dreams...
420 MW
Installed capacity

Energy 2007 Annual Report 03
progressZorlu
207
ton/hour
Steam capacity
10
Projects

04 Zorlu Energy 2007 Annual Report
from past to
Zorlu Energy's 15-year adventure
Zorlu Energy Group: From past to present
1993
Zorlu Energy Electricity Generation Co.
Inc. was set up to meet the electricity and
steam needs of industrial companies
belonging to the Zorlu Group.
1997
Auto producer agreements have been
signed with the Ministry of Energy and
Natural Resources. Construction work of
two power stations has started in
Lüleburgaz and Bursa.
The first power unit, capable of producing
7 MW of electricity and 20 tons of steam
per hour, entered operation in Lüleburgaz.
1998
The second unit at the cogeneration power
plant in Lüleburgaz, with a production
capacity of 7 MW of electricity and 20 tons
of steam per hour, entered commercial
operation.
LM2500 gas turbines, with an installed
capacity of 26 MW at the combined
conversion plant in Bursa, entered
operation as a simple cycle plant. As the
9 MW capacity steam turbine came on
stream, the total capacity of the combined
conversion plant reached 35 MW. With
these new power plants, Zorlu Energy was
able to meet the entire electricity needs of
the whole Zorlu Group.
1999
Two combined conversion plants with a
combined generation capacity of 43 MW
were constructed by Zorlu Energy Systems
Construction Group in Bursa and in
Lüleburgaz, and entered operation as
simple cycle plants. The total capacity of
the plants in both cities subsequently
reached 135 MW.
A 154 kV switch center was installed at
TE‹Afi (The Transmission System Operator
of Turkey) in Industry Zone in Bursa, and
Bursa Generation System was connected
to the Turkish 154 kV energy transmission
system. The Company, founded to meet
the energy needs of Group companies,
was able to sell about 50% of the electricity
it generated to companies outside the
Zorlu Group.
2000
Zorlu Industrial and Energy Facilities
Construction and Trade Inc. was
established as the first step taken by the
Zorlu Energy Group to diversify its fields
of activity. Zorlu Industrial raised the total
capacity to 156 MW of electricity and
150 tons of steam per hour.
The ratio of energy provided to companies
outside the Zorlu Group rose to 70% and
the Zorlu Energy Group gained a more
prominent position for itself in the energy
market.
20% of the paid-in capital of Zorlu Energy
Electricity Generation Co. Inc. was offered
to the public through the ISE (‹stanbul
Stock Exchange).
Zorlu O&M Energy Facilities Operating and
Maintenance Services Inc. was established
Zorlu Petrogas Petroleum, Gas and
Petrochemical Products Construction
Industry and Trade Inc. was established
2001
Zorlu Energy Group was issued with the
ISO 9001/2000 quality management
system certificate for its three companies.
Zorlu O&M signed its first long term service
agreement beyond the Zorlu Group. Zorlu
O&M maintenance services established a
R&D unit at METU Techno Kent in order
to conduct studies aimed at increasing
the efficiency and the performance of those
plants for which it carries out maintenance
services. Moreover, Zorlu O&M signed an
agreement of mutual cooperation with
General Electric.
The number of the company's customers
outside the Zorlu Group approached 200.
Once performance and efficiency
increasing measures were completed at
each generation station, electricity
generation was observed to increase by
up to 15% through the installation of
evaporation systems for the gas turbines
by Zorlu Industrial and Energy Facilities
Construction and Trade Inc.
2002
Following the signing of an agreement with
the First Ankara Chamber of Organized
Industry Zone, the Zorlu Industrial and
Energy Facilities Construction and Trade
Inc. initiated construction work of a 55 MW
capacity combined cycled electricity
generation plant.
Maintenance services were carried out in
India and Greece by Zorlu O&M.
With the installation of a 154 kV switch
center at Zorlu Energy's Lüleburgaz power
station, in a bid to raise the quality of power
and production safety, the station was
connected to the 154 kV national grid.
2003
The Ankara Power Station entered
operation, bringing the total installed power
generation capacity up to 211 MW.
Zorlu Natural Gas Import, Export and
Wholesale Inc. and Zorlu Electricity Import,
Export and Wholesale Trade Inc. was
established.
Zorlu Industrial and Energy Facilities
Construction Trade Inc. entered contracts
to establish power stations in the Kayseri
Organized Industry Zone and preliminary
studies were carried out for Kayseri Birlik
Textiles and Yalova ‹pek Ka¤›t.
Zorlu Energy Group initiated the OHSAS
18001 and ISO 14001 Management
Systems Establishment and Settlement
Project in all of its companies.
Zorlu O&M provided substitute turbine
services in Greece.

present
Performance and efficiency enhancing
measures were implemented at each plant,
with installation of “sprint” systems in the
LM6000 gas turbines, undertaken by Zorlu
O&M Inc., increasing the power generation
in the power stations by 10%.
2004
Zorlu O&M initiated maintenance activities
at General Electric's (GE) LM6000 gas
turbines at a plant level. A joint service
contract was also reached between and
Zorlu O&M and Turkish Airlines.
Zorlu Industrial signed a letter of intent for
a project to construct two turn-key energy
stations in Israel.
Zorlu Energy and Zorlu O&M received
the OHSAS 18001 Occupational Health
and Safety System Certificate and the ISO
14001 Environmental Management System
Certificate. Zorlu Industrial also initiated
studies regarding such certification.
2005
The decision was taken to enter a
partnership with Dorad Energy Ltd., with
a 25% stake. The Company plans to
develop power stations with 800 MW of
installed power capacity to render
contracting, operating and maintenance
services for power stations in Israel, with
a view to partnerships and investments.
In addition, a decision was also taken
to enter a 51% partnership with ICFS
International LLC Limited located in Virginia,
USA to invest in and be a partner in power
stations and to render contracting,
operation and maintenance services in
Russia.
The project for the first private power station
in Moscow got underway with the
foundations for the plant laid down.
Having been awarded a natural gas
exploration license, Zorlu Petrogas initiated
exploration operations in the Gulf of
‹skenderun and the Adana Region.
Zorlu Petrogas won the tenders related to
the Gaziantep-Kilis and K›rklareli-Tekirda¤-
Edirne natural gas distribution lines.
Zorlu Energy joined the list of the 100
fastest growing companies in Europe.
The Trade Finance Magazine voted the
Kayseri power station project as the most
successful finance project in 2005. The
Kayseri OSB power station, built by Zorlu
Industrial, entered simple cycle commercial
generation.
Zorlu Petrogas purchased the Australian
based Amity Oil International Pty. Ltd.,
which has a partnership with the TPAO
(Turkish Petroleum Corporation), carrying
out petroleum and natural gas exploration
and production operations in Turkey.
2006
Zorlu Energy Group continued to grow with
recently founded Zorlu Hydroelectric Power
Generation Inc. and Rotor Electric
Generation Co. Inc., license of which was
taken over by Zorlu Energy Group.
Zorlu Energy signed a 20-year long electric
power generation agreement with the
Pakistan Alternative Energy Development
Board (AEDB) to establish a wind farm in
Pakistan. The first phase of the wind farm
has a capacity of 49.5 MW with an option
to increase this capacity up to 300 MW.
Studies were started in Osmaniye to build
a wind farm which would boast the single
highest installed capacity of any wind farm
in Turkey. The first phase of the wind farm
has a capacity of 135 MW, and it is targeted
to raise this capacity to 245 MW by the
end of 2009.
Zorlu Energy Electricity Generation Co.
Inc. won the tender held for the Sandalc›k
(127.8 MW) and Narl› (82.5 MW)
hydroelectric power plants to be located
on the Dalaman River in Mu¤la, and
initiated feasibility studies for these
hydroelectric power plants.
Zorlu Energy 2007 Annual Report 05
2007
Zorlu Energy Electricity
Generation Inc. won the tender
held by the General Directorate
of State Water Operations for
the Tirebolu Hydroelectric
Power Plant, which is planned
to be built in the Tirebolu
district in the province of
Giresun. Feasibility studies
have started for the plant,
which will have a capacity of
60 MW.
Thrace Region Natural Gas
Distribution Inc. has brought
natural gas to the Fevzipafla,
Gaziosmanpafla and Y›ld›r›m
Beyaz›t districts of Çerkezköy.
Gazdafl started natural gas
distribution in Merveflehir,
Gaziantep.

Zorlu Energy 2007 Annual Report
06
energy for
We undertake timely and accurate investments
to ensure high quality and uninterrupted
energy.

life
Zorlu Energy 2007 Annual Report07
Energy in our dreams...

08 Zorlu Energy 2007 Annual Report
Zorlu Energy
A strong financial structure and investment portfolio
Corporate Profile
Present in all stages of the energy
business line…
With its foundations laid down with Zorlu Energy Electricity
Generation Co. Inc. founded in 1993, Zorlu Energy Group
is currently one of the leading and most powerful participants
in its sector.
With its integrated activities extending from generation and
sales of electricity, the production, distribution and sales
of natural gas and project process to “turnkey” installation
and long term maintenance and operation of power plants,
Zorlu Energy Group enjoys a unique position in the sector.
Zorlu Energy Group has 6 natural gas conversion plants
with a total installed capacity of 420 MW of electricity and
207 tons/hour of steam. The electricity generated at these
plants is predominantly directed to the Balancing and
Settlement system while some is allocated to industrial
firms as an uninterrupted and high quality source of energy.
The current levels of electricity generation accounts for 8%
of all the electricity produced by private sector companies.
Apart from electricity generation, the Group also undertakes
natural gas exploration activities in Thrace and already
distributes natural gas in Thrace and Gaziantep.
Zorlu Energy Group attaches a great deal of importance
to studies into fields of renewable energy, such as
hydroelectric, wind energy and geothermal energy, as well
as thermal power plants and aims to step up its activities
in this direction. With this vision, the Group aims to better
evaluate Turkey's wind and hydro energy potential,
• Work on the first phase of a 135 MW wind farm project
in Osmaniye got underway. The electricity generation
capacity of the plant will be raised to 245 MW through an
investment to add 110 MW of new capacity. The license
for the new capacity has already been obtained.
• The Group currently carries out feasibility and projecting
studies for three hydroelectric power plants, two of which
will be in Dalaman and one will be in Tirebolu.
Zorlu Energy Group has cemented its presence in Europe,
Asia and the Middle East as well as Turkey to evaluate
opportunities in the field of energy and become a regional
power. The projects carried out in Russia, Pakistan and
Israel are important steps for the Group in reaching this
target.
The Group continues to grow in compliance with the principle
of diversifying products and services under the strategy of
commanding a presence in every field of the energy
business line, aiming to raise its investments in the
generation, transmission, transportation and distribution
of energy at both a national and international level going
forward.

Financial Highlights
Zorlu Energy 2007 Annual Report 09
(USD million) 2005 2006 2007
Revenues 163.0 274.1 361.3
Gross Profit 17.3 33.7 51.8
Operating Profit -4.8 -4.2 -9.2
adj. EBITDA* 12.1 22.9 35.0
Net Income 2.6 -27.3 1.4
Total Assets 472.0 597.4 970.0
Shareholders' equity 250.6 215.1 271.2
Net Debt 169.9 304.5 553.4
Net Debt / Equity 0.68 1.42 2.04
Gross margin (%) 10.6% 12.3% 14.3%
EBITDA margin (%) 7.4% 8.4% 9.7%
Net Profit margin (%) 1.6% -10.0% 0.4%
* excl. drilling expenses
Financials are in accordance with IFRS.

10 Zorlu Energy 2007 Annual Report
We use more renewable energy sources for the future of
the earth.

Zorlu Energy 2007 Annual Report 11
Energy in our dreams...

12 Zorlu Energy 2007 Annual Report
group
Zorlu Group produces and works for Turkey.
Zorlu Group
The story of the Zorlu Group reaches back to its foundation in
the early 1950s in a small textile atelier in the town of Babada¤
in Denizli province. Growing and gaining strength in textiles by
creating globally recognized brands, the Zorlu Group translated
its success in textiles into the businesses of brown and white
goods and digital products through Vestel and into the energy
sector through Zorlu Energy. In 2006, the Zorlu Group made a
bold and successful entry into real estate investment and
development in order to tap the huge growth potential that it
saw there and it undertook a number of investments in ‹stanbul
as well as in ‹zmir and Marmaris.
Textile Group
Korteks
Zorluteks
Linens Marketing
Zorlu Foreign Trade
Vestel Group of Companies
Vestel Electronics
Vestel White Goods
Vestel Digital
Vestel Communications
Vestel Foreign Trade
Vestel Durable Goods Marketing
Vestel CIS
Vestel Defense Industrials
AYESAfi
Birim
Veseg
Vestel France
Vestel Iberia
Vestel Italy SRL
Vestel Holland BV
Vestel Benelux BV
Vestel Trade
Vestel UK Ltd.
Vestel Electronica SRL
OY Vestel Scandinavia AB
UTS-United Technical Services, SPOL S.R.O.
Vestpro Electronics S.A.
Dexar Multimedia&Telecommunications
Vestel USA
CABOT Communications Ltd.
Vestel Electronic India
Vestel Electronics Research&Development
Deksarnet Telecommunications
‹zmir Technology Development
Vestek
With brands that Turkey takes pride in, facilities that carry Turkish
industry into the future, and uninterrupted investment in business
and society, the Zorlu Group today produces and works for
Turkey.
With 30 thousand employees and total assets worth TRY 11
billion and in keeping with its philosophy “If we're going to go,
then go as far as we can. If we're going to ascend, then go as
high as we can. If we're going to be, then be the best we can
be”, the Zorlu Group continues to increase the visibility of the
Zorlu name in the global arena as well as the confidence that
is felt in it.
Energy Group
Zorlu Energy
Zorlu O&M
Zorlu Industrial
Zorlu Petrogas
Amity Oil International
Rotor
Zorlu Hydroelectric
Thrace Region Natural Gas Distribution
Gaziantep Natural Gas Distribution
Zorlu Electricity
Zorlu Natural Gas
ICFS International LLC
Rosmiks International B.V.
Rosmiks LLC (Russia)
Zorlu Energy Pakistan
Dorad Energy (Israel)
Ashdod Energy (Israel)
Ramat Negev Energy (Israel)
Solbar Energy (Israel)
Property Group
Zorlu Yap› Yat›r›m A.fi.
Zorlu Property
Development & Investment
Akmerkez G›da ve ‹htiyaç
Maddeleri Pazarlama
‹hracat ‹thalat San. ve Tic. A.fi.
‹ntermar Ticaret Pazarlama
Turizm A.fi.

Energy Group
ZORLU ENERGY ELECTRICITY GENERATION CO. INC.
Zorlu Energy, the first company in the Zorlu Energy Group, was
founded as an auto producer company to meet the electricity
and steam requirements of textiles factories belonging to the
Zorlu Group. The Company later started to provide electricity
and steam for other companies in response to demand from
outside the Group. The Company today currently controls a total
installed capacity of 420 MW in six power stations.
Zorlu Energy is the flagship of the Zorlu Energy Group as well
as a shareholder of all other Group companies. As one of the
fastest growing companies in the energy sector in Europe, Zorlu
Energy also draws attention in the global arena.
Zorlu Energy, ranked 158th place in the list of the top 500
companies published annually by the ‹stanbul Chamber of
Industry in 2005, increased its rank to 135th in 2006.
Zorlu Energy operates with sensitivity to the environment, nature
and the society in which it operates. It has equipped all of its
power stations with water injection systems to ensure NOX
emissions come within the limits stipulated by the World Bank.
Zorlu Energy
Zorlu Energy Shareholding Structure
Domestic Subsidiaries
20% Zorlu O&M
20% Zorlu Industrial
80% Rotor
73% Zorlu Petrogas 100% Amity Oil Int.
80% Zorlu Hydroelectric
5% Gaziantep Natural Gas Distribution
1% Zorlu Electricity
5% Thrace Region Natural Gas Distribution
1% Zorlu Natural Gas
Zorlu Energy 2007 Annual Report 13
This system, which helps limit greenhouse warming by using
the waste heat in steam, is known as environment-friendly energy
generation. Zorlu Energy was the first auto producer to have
achieved a quality certificate in Turkey. The Company, which
was awarded the TS/EN ISO 9001-2000, the OHSAS 18001 and
the ISO 14001 certificates, also employs the Integrated
Management System.
20% of Zorlu Energy shares went public in 2000, and 29.4% of
the company's shares currently trade on the ISE. Zorlu Energy,
the first listed energy company in Turkey, is the only publiclyheld
company of the Zorlu Energy Group.
Zorlu Energy signed a Carbon Emission Sale Contract with
EcoSecurities in 2007 for the first 135 MW phase of the wind
farm being established in Osmaniye. The first phase of the wind
farm, which will enter production in Osmaniye in 2009, will
produce around 500,000 MWh of electricity per year, reducing
CO2 emissions by 400,000 tons/year. The Company aims to
sign a similar contract for the additional capacity of 110 MW to
the wind farm in Osmaniye, the wind farm project in Pakistan
and natural gas conversion and cogeneration plant projects in
Russia and Israel.
Zorlu Energy
Korteks 17.55%
Zorlu Holding 43.21% Other Zorlu Group
Companies 9.83%
Publicly Held 29.41%
Foreign Subsidiaries
51% 100% 100%
ICFS Int. LLC Rosmiks Int. B.V. Rosmiks LLC
100% Zorlu Energy Pakistan
25% Dorad Energy
51% Ashdod Energy
51% Ramat Negev Energy
26,5% Solbar Energy
on the next page Zorlu Energy Group's generation power

14 Zorlu Energy 2007 Annual Report
Zorlu Energy Group
generation
Power Plants of Zorlu Energy
Lüleburgaz Power Plant
Type: Cogeneration Energy Plant with Natural Gas Conversion
Capacity: 65.7 MW Electricity + 162 tons/hour Steam
Ankara Power Plant (Organized Industry Zone)
Type: Combined Cycle Energy Generation Plant with Natural
Gas Conversion
Capacity: 50.3 MW Electricity
Bursa Power Plant (Organized Industry Zone)
Type: Combined Cycle Energy Generation Plant with Natural
Gas Conversion
Capacity: 90 MW Electricity

power
Kayseri Power Plant (Organized Industry Zone)
Type: Combined Cycle Energy Generation Plant with Natural
Gas Conversion
Capacity: 188.5 MW Electricity
Zorlu Energy 2007 Annual Report 15
Yalova Power Plant (‹pek Ka¤›t - Alt›nova)
Type: Cogeneration Energy Plant with Natural Gas Conversion
Capacity: 15.9 MW Electricity + 30 tons/hour Steam
Kayseri Power Plant (Birlik Textiles Enterprises Middle
Organized Industry Zone)
Type: Cogeneration Energy Plant with Natural Gas Conversion
Capacity: 7.2 MW Electricity + 15 tons/hour Steam
on the next page competitive advantages

Zorlu Energy 2007 Annual Report
16
competitive
We convert market opportunities into success through
our vision and our identity as a leader.

Zorlu Energy 2007 Annual Report 17
advantages
The strengths and competitive
advantages of Zorlu Energy
Seizing on the advantage of being one of the first in this field of industry, Zorlu Energy
Group has astutely anticipated market opportunities through its vision and its identity
as a leader, and converted them into success.
The Group is expanding its operations in Turkey and in neighboring countries in
accordance with developments taking place in the energy field, implementing the
principle of diversification of risk the most appropriate way, while taking firm steps
towards being a global energy power.
Diversity of Products and Services
In the first years following its establishment, the Zorlu Energy Group had only been
producing electricity for the Zorlu Group; after years of steadily raising its generation
capacity, the Company is now able to supply the energy and steam needs of other
industrial organizations as well. Through its specialized companies, the Group also
conducts business abroad, including natural gas exploration and production, turnkey
power plant installation services for industrial firms, natural gas sales and distribution
services to meet residential and commercial natural gas needs, maintenance and
operational services for other industrial entities operating power plants.
In the framework of its product and service diversity strategy, Zorlu Energy Group is
following tenders for wind farms, hydroelectric plants on the privatization agenda,
electricity distribution tenders and natural gas contract transfer tenders.
Geographic Advantage
Zorlu Energy Group now carries its mobility and competence to beyond national
borders, is still constructing the first private sector-operated power plants in Moscow
and taking solid steps towards gaining a presence in Israel, in accordance to company's
strategic goals. With a key interest in projects in the surrounding region, as well as
in developing new markets, Zorlu Energy Group is dedicated to carry its experience
and know-how to different countries, and the 50 MW wind farm being built in Pakistan
is an example of this.
on the next page Message from the Chairman

18 Zorlu Energy 2007 Annual Report
Message from the Chairman
A number of developing countries, including Turkey, are in the
midst of a process of liberalization and privatization of the energy
sector as a necessity to create liberal markets. New market
regulation laws enacted in Turkey since 2001 have paved the way
for the entry of private sector companies into the energy market,
setting the stage for competition in the electricity, natural gas and
petroleum business lines and bringing improvements in efficiency,
quality, sustainability and customer satisfaction .
Zorlu Energy Group has built up its presence in the energy sector
over more than 15 years, either by taking over investments in the
privatization process, and/or being awarded the rights to operate
or making investments from scratch. Our Group has been carrying
out its activities, from natural gas and oil exploration to extraction
and distribution of natural gas, from generation to distribution of
regi
electric power, from installation to maintenance and operation of
power plants, through its companies specialized in different fields
in an approach of gradual growth which embraces more and
more sub-sectors within the energy business line.
Energy supply security on the global agenda.
A look at developments in international markets shows that the
global energy sector is suffering from a bottleneck; it is also clear
that fossil fuels, which currently produce 80% of the world's total
energy, will maintain their weight until 2030-2040 on the basis of
recent evaluations, and that progress on the use of renewable
energy has yet to achieve the targeted levels. In this context, at
a time of global energy constraints, priority has been given to
R&D studies for the conversion of energy produced by fossil fuels
into cleaner and more environment-friendly energy.

Zorlu Energy 2007 Annual Report 19
onal power
Against the current backdrop of relentlessly rising energy costs,
it is vital that we reach our decisions in a healthy and rapid manner
on behalf of both Turkey and our Group. If Turkey fails to grasp
the nettle of this challenge, the country will be late to meet the
rising demand for energy and suffer from an exponentially rising
cost of supplying energy.
Our biggest hope lies in liberalization, which targets a sectoral
environment with no cross-subsidies in all value chains of the
sector, with a pricing mechanism left entirely to market forces.
2008 is set to be a crucial year in terms of the swift privatization
of electricity distribution networks, but also in allowing new players
enter the market through this privatization process, as well as
initiation of the operation of the liberal market in real sense, and
the transfer of publicly owned - the state is the biggest player in
national energy production, accounting for a share of 75-80% the
total - and inefficiently operated plants to the private sector in
order to make necessary investments as soon as possible in
terms of providing the liquidity required by the market.
Working with high ideals.
We act with a long-term point of view in all our projects and
activities, always striving to ensure that our services in the energy
sector serve the general public, and aware that no public benefit
can be neglected for the sake of any corporate benefits. We
believe companies in the energy sector have a historical
responsibility to pave the way for new liberalization and privatization
activities, and in order to remove related concerns amongst the
general public.
Under all circumstances, our core service principle is to work to
the principles of quality, reliability and lower energy prices which
the public will expect from us following the liberalization and/or
privatization processes.
Further to this, one of the issues which we, as Zorlu Energy, have
focused on is to act within a corporate approach based on energy
sustainability while minimizing the damage to the environment
while striving to maximize the use of renewable energy resources
within our total production portfolio.
We aim to become a regional power through the investments
evaluating the strategic position of our country.
Zorlu Group signed the UN Global Compact on November 12,
2007, thereby carrying the principles and values which it has
adopted since its foundation to a dimension of global social
responsibility. We believe that the wide recognition of the Global
Compact will help ensure a better world, and we would hope that
more and more institutions in Turkey implement such principles.
Our Vision: To be a global company and a regional player
Zorlu Energy Group specified the route to its growth based on
the target of being an ambitious regional player with its broad
range of activities in the most strategic sector of Turkey and the
world.
Our Group configures its investment portfolio based on the
awareness that Turkey is located at a crossroads in the global
energy map and is gradually becoming a more and more popular
brand, not only in Turkey, but also in projects abroad; the
development of Russia's first privately owned power station,
energy projects in Israel and a wind farm project in Pakistan are
all leading steps of our vision, and also mark the beginning of
our success story in being a global company and a regional
power.
We, as Zorlu Energy Group, always place our nation at the top
of our list of priorities. We have contributed steadfastly to the
development of our country and will continue to do so through
our investments and projects.
I would like to extend my sincerest best wishes to all our
shareholders, business partners and social stakeholders.
Zeki Zorlu
Chairman of the Board

20 Zorlu Energy 2007 Annual Report
Message from the CEO of the Zorlu Energy Group
Zorlu Energy Group has strived to continuously
develop and activate its corporate and operational
structure in its journey towards becoming a
regional power in the global league.

Zorlu Energy 2007 Annual Report 21
performance
Zorlu Energy Group ended the year 2007 with a successful
performance, having achieved significant progress on its journey
towards becoming a regional power in the energy business thanks
to expanding its organization in various fields of the energy sector
its strong financial structure and through astute investments as
part of its strategic growth roadmap.
Large scale and efficient production
The year 2007 was marked by a bottleneck in energy supplies in
Turkey. To combat this, Zorlu Energy raised its production efficiency
by renewal and optimization activities, and attained its highest
production since its foundation by operating its plants at maximum
capacity.
The implementation of the Balancing and Settlement Regulation
(DUY) system also enabled our Group recoup previous years'
losses during 2007, which had arisen from the situation whereby,
the rises in natural gas prices and in our other expenses parallel
to this rising trend, were not reflected to electricity sale prices.
Taking precautions necessary to keep our power stations operating
at maximum efficiency and adjusting their operation systems in
accordance with the structure set forth in the DUY system will
remain our priorities in the coming period.
The supply-demand imbalance has gradually been seen to
increase in the Turkish energy market, while serious threats now
face supply security. Against this backdrop, it has become ever
more vital to encourage investment. We, as a company, are
carrying out our investments by making use of all related incentive
mechanisms in order to supply the energy required by the nation.
Zorlu Energy attained its highest production since its
foundation by operating its plants at maximum capacity.
The building blocks of continuous development
Zorlu Energy Group has striven to continuously develop its
corporate and operational structure in order to create an energy
company profile which fits modern global models. Zorlu Energy
Group's general investment targets and strategy have been
configured on the following principles:
• Diversification of resources for production; bringing our
production, which is currently carried out based on a single
source, to a point where it can be carried out through a variety
of resources;
• Selecting environment- friendly technologies with a focus on
renewable energy;
• Balancing base load power plants which provide a steady flow
of power to ensure supply security and renewable energy power
stations in our portfolio.
Zorlu Energy Group has concentrated on investments for the
future, by taking their environmental impact into account.
Accordingly, we plan to expand our portfolio with investments in
wind energy as well as geothermal and hydroelectric energy in
near future.
Aiming to grow through renewable energy sources.
We are very ambitious in renewable energy projects, which will
play an extremely important role in our country's future. To this
end, we have already started projects on wind farms and
hydroelectric power plants. We have begun to establish one of
the biggest wind farms of the world, which will be completed in
2009.

22 Zorlu Energy 2007 Annual Report
Zorlu Energy Group has concentrated on
investments for the future, by taking their
environmental impact into account. Accordingly,
we plan to expand our portfolio with investments
in wind energy as well as geothermal and
hydroelectric energy in near future.
The Osmaniye wind farm will stand out in the international energy
arena with a capacity of 245 MW. The wind farm will generate
half as much electricity as the Seyhan Dam. In addition, the Group
plans to swiftly bring two hydroelectric power plants into operation
on the Dalaman River. As well as contributing significantly to the
national economy with its investments in renewable energy, Zorlu
Energy also aims to take decisive steps towards protecting the
environment.
We have acted decisively with our actions. In 2007, Zorlu Energy
signed a VERPA (Voluntary Emission Reduction Purchasing
Agreement) with EcoSecurities, which is one of the most
experienced and leading companies of its sector in the field of
“carbon credit” applications. This agreement is an important step
for the Turkish energy sector, which is currently not party to the
Kyoto Agreement.
Stepping up our power abroad.
Our operation and maintenance company provides operation
and maintenance services to both our own plants as well as
private sector energy corporations, by participating in various
tenders both at home and abroad.
Our EPC group, Zorlu Industrial, is constructing two power plants
in Moscow with the strength it receives from the power plants that
it previously constructed in Turkey. Once the first phase of the
construction work on the power stations is completed, each power
plant will have a generation capacity of 170 MW; this will increase
to 680 MW in the second phase of the investment.
Negotiations for the financing of four projects in Israel, with a
combined capacity of 1,050 MW, and work on the procurement
of goods are currently under way.
All permits have now been received for the establishment of a 50
MW capacity wind farm in Pakistan, and we reached the point of
signing agreements including guarantees given to us by the
Pakistani government. If activities proceed in line with our
expectations, the capacity of the wind farm could later be raised
to 300 MW.
Investments to continue in the period ahead
Our first target for 2008 is to rapidly complete our existing projects
and gradually raise our production capacity. Our management
capability, our strong financial structure and our credibility will
stand out as the significant advantages to allow us to successfully
complete our investments.

Our strategies to diversify energy resources in our investments
in Turkey are concentrated on renewable energy. In line with our
target of increasing the number of renewable energy power plants
in our portfolio, work on our hydroelectric power plants and wind
farms will proceed at full speed during 2008.
Moreover, as part of measures implemented to reduce dependency
on natural gas, one of our targets is to establish of a new coalfired
power station. Coal still accounts for 40% of global electricity
and energy production.
We have developed a more sensitive approach with respect to
these issues, mainly global warming and reducing carbon
emissions, which have gradually assumed a more prominent
position on the global agenda. Therefore, realizing these
investments for this purpose without delay and in a timely manner
stands out as another issue of concern for us.
We are willing and decisive to participate in electricity distribution
privatization tenders and to operate in this field.
In the field of natural gas distribution, we are conducting
infrastructure activities within the framework of the guarantees
provided to EMRA in respect to the distribution of natural gas in
Tekirda¤, Edirne and K›rklareli in Thrace, and also Gaziantep and
Kilis in the south east of Turkey. Once the homes are connected,
gas supplies will gradually be rolled out in these cities.
Zorlu Energy 2007 Annual Report 23
Working together to achieve success…
We are building Zorlu Energy Group's success, both for today
and in the future, with the support of all of our employees; by
keeping a close watch of global developments and by continuously
questioning ourselves to do better… Our road is long, but we are
advancing in great strides towards our ambitious targets, which
we have inherited from our deep rooted past.
I would like to extend my sincerest thanks to our board members,
employees and all our social stakeholders.
Murat Sungur Bursa
CEO of the Energy Group and Board Member

24 Zorlu Energy 2007 Annual Report
Board of Directors
1 Zeki ZORLU
Chairman of Board of Directors
(1939 - Denizli) Zeki Zorlu began his career in
a family company operating in the textiles sector
and opened his first textiles store in Trabzon.
Having founded Korteks in 1976 during his
career, which began in Babada¤, Denizli and
continued in ‹stanbul, Zeki Zorlu laid down the
foundation of Zorlu Holding which today has
25,000 employees and 60 companies. Apart
from its new investments in the textiles sector,
Zorlu Group stepped into electronics and white
goods sector with Vestel, which was acquired
in 1994, into the energy sector in 1996 and into
the real estate sector in 2006. As well as serving
as the Co-Chairman of the Board of Directors
of Zorlu Holding, Zeki Zorlu is also serving as
the Chairman of the Group companies operating
in the textiles and energy sectors.
2 Olgun ZORLU
Board Member
(1965 - Trabzon) After graduating from high
school, Olgun Zorlu completed a number of
courses in the UK in the fields of textiles and
business administration and completed an
internship in the textiles industry. He started to
serve as a manager at the Zorlu Group in 1988.
Having acquired business administration and
management experience in the textiles field,
which is one of the main fields of activity of the
Group, Olgun Zorlu still conducts market
research abroad and manages new application
and development activities. Apart from his duty
as a Board Member at Zorlu Energy, Olgun
Zorlu also serves as the Board Member in a
variety of Group companies.
3 Selen ZORLU MEL‹K
Board Member
(1975 - Trabzon) Selen Zorlu Melik has
graduated from Uluda¤ University Business
Administration Department. She started her
career in Denizbank in 1998 and joined
Management Trainee Program in 1999 at the
same bank. Within Denizbank she served several
positions and in 2001 she attended Marketing
Certificate Program at the University of California
Berkley (USA). In 2002 she started to work in
Korteks, textile manufacturing and trade
company of Zorlu Group, and she became
Member of the Board at the same company in
2004. She joined to Zorlu Energy Group as the
Board Member in 2005.
4 Murat Sungur BURSA
Board Member
(1954 - Mersin) Murat Sungur Bursa has
graduated from Middle East Technical University
in 1977. Following his education in American
Hobart School of Welding Technology, he
completed his MBA in Gazi University Business
Administration-Product Management. He began
his career in Industrial Training and Development
Centre as mechanical engineer. Between 1986-
1988 he worked as Vice Chairman of WASME
(World Assembly of Small and Medium
Enterprises). Also between 1988-1990 he
operated in State Planning Organization as
European Community Relations Expert. 1990-
1991 he was Part-Time Consultant in World
Bank assisted Turkish Eximbank Project to
promote Export Oriented Small and Medium
Scale Industries. 1991-1994 he was General
Director of Environmental Impact Assessment
and Planning General Directorate. During 1995
-1998, first he was appointed to Deputy
Undersecretary of Ministry of Environment, then
he became Undersecretary of Ministry. At the
beginning of October 2003 he started to work
as Director in Prime Ministries Project
Implementation Unit. He than joined to Zorlu
Energy Group in May 2006 as CEO and Board
Member.
5 Melih E. ARAZ
Vice Chairman
(1948 - ‹stanbul) Melih E. Araz graduated from
the Faculty of Political Sciences at Ankara
University in 1972. After having completed an
MBA at the Kelley School of Business within
the University of Indiana, he continued his
education at the Harvard Business School in
the field of “Top Level Management”.
Commencing his career at the Citibank N.A.'s
organization in Turkey, Mr. Araz assumed top
level duties in a variety of units in the ‹stanbul,
‹zmir, Bahrain, Athens and New York branches
and took on important responsibilities in the
foundation and expansion of the Citibank
organization. Later, being appointed as the
CEO/General Manager at Interbank A.fi., Mr.
Araz played a leading role in bringing Interbank
to a respected position in the corporate and
investment banking fields in Turkey. Mr. Araz
now serves as a consultant for a variety of
companies in the fields of finance and strategic
management, and is also the Vice Chairman of
the Board of Directors of Zorlu Energy Inc., a
Managing Director at Ata Yat›r›m A.fi., and a
Board Member at fienocak Holding A.fi.,
Klimasan A.fi., ‹zmir Enternasyonel Otelcilik A.fi.
and Entegre A.fi.
6 Prof. Dr. A. Can TUNCAY
Board Member
(1944 - Ankara) Prof. Dr. A. Can Tuncay
graduated from the Faculty of Law at the Ankara
University in 1966. After completing his advocacy
internship, he was admitted to the Faculty of
Law at the ‹stanbul University in 1968 as an
assistant lecturer. He received a Ph. D. in law
in 1975 and became an assistant professor of
law in 1980. Having promoted as a professor
in 1988, Mr. Tuncay lectured in the Department
of Law on Occupational and Social Security at
the ‹stanbul Faculty of Law for 32 years. After
retiring, he started to serve at the Faculty of
Law at the Yeditepe University in 2000. Being
appointed as the Board Member of the Zorlu
Energy Group in 2006, Mr. Tuncay still works
at Bahçeflehir University as the Head of the
Department of Law on Occupational and Social
Security. A. Can Tuncay is also a legal advisor
for many domestic and foreign companies.
7 Burak ‹. OKAY
Board Member
(1967 - Ankara) Burak ‹. Okay graduated from
the Faculty of Law at the Ankara University in
1990. After completing the international law
certificate program in New York, he started his
career at the Department of Legal Consultancy
in Türkiye ‹fl Bank. He later went on to work in
Garanti Bank, MNG Bank and Nortel Networks
Netafl respectively and then served at the Bener
Law Firm as an executive. Joining Zorlu Group
in 2006, he played an active role in the
configuration of the law department serving all
the Group companies. Mr. Okay still serves as
the Law Coordinator of the Zorlu Group and is
a Board Member of the Zorlu Energy Group
since 2007.

Zorlu Energy 2007 Annual Report 25
5 3
1
4 6 2 7
on the next page Senior Management

26 Zorlu Energy 2007 Annual Report
Senior Management
Murat Sungur BURSA
CEO of the Zorlu Energy Group,
Board Member
Please refer page 24 for the CV of Murat Sungur
Bursa.
Selen ZORLU MEL‹K
Deputy CEO of the Zorlu Energy Group,
Board Member
Please refer page 24 for the CV of Selen Zorlu
Melik.
Mehmet Ali NEYZ‹
Deputy CEO of Zorlu Energy Group
(1959 - ‹stanbul) Mehmet Ali Neyzi completed
his high school education at the German High
School and Robert College, before going on to
graduate from the Department of Electrical
Engineering and Computer Science at Princeton
University in 1980. Mr. Neyzi began his career
in Arçelik in 1983 and worked there until 1998
were he served as the Deputy General Manager
responsible for materials and marketing.
Completing the Strategic Marketing education
program at the Harvard Business School in
1997, Mehmet Ali Neyzi became the General
Manager of Ram D›fl Ticaret A.fi. in 1998.
Working at Tan› Pazarlama ve ‹letiflim Hizmetleri
A.fi. as the company's General Manager
between 2002 and 2004, Mr. Neyzi then served
as the General Manager of Aygaz A.fi. during
the period 2004-2008. He joined the Zorlu
Energy Group in April 2008 as the Deputy CEO
in order to take duty in the decision-making
process in respect to studies in existing and
new areas of activity.
‹. Sinan AK
Assistant General Manager, Finance
(1971 - Ankara) ‹. Sinan Ak has graduated from
‹stanbul Technical University with a bachelor
degree of engineering management. He served
as a bond dealer in Evgin Securities in 1996.
Later he got his MBA degree from Old Dominion
University (USA) with a finance concentration.
He than joined to Zorlu group in June 2000.
Within the Zorlu Group he served in various
positions and companies as follows: between
2000 and 2002 in Vestel Communications as
finance chief; between 2002 and 2006 in Vestel
White Goods as finance manager and since
2006 in Zorlu Energy as Assistant General
Manager.
Serhat fi‹MfiEK
Assistant General Manager, Production and
Trade
(1968 - Elaz›¤) Serhat fiimflek has graduated
from Y›ld›z Technical University Electrical
Engineering Department in 1990. He has started
his career in Tekfen as an engineer and
undertaken several managerial positions in
Temel Su, Shell and Trakya ‹plik. In February
2001 he joined to Zorlu Energy and since 2007
served as Assistant General Manager.

Gökmen TOPUZ
Assistant General Manager, Investments
(1972 - ‹stanbul) Gökmen Topuz has graduated
from ‹stanbul Technical University Electrical
Engineering Department in 1995. He got his
MBA degree in Yeditepe University and
continues his PhD on Organizational Behaviors
Program at the same university. He started his
career as a Project Manager in MAN Desentrale
Energie Systeme. He served in various
managerial positions in Wartsila-Enpa, Kale
Energy, Piramit Energy between 1998 - 2007
and joined to Zorlu Energy in September 2007
as Assistant General Manager.
Bülent Ç‹L‹NG‹R
Director, Procurement and Logistics
(1963 - Ankara) Bülent Çilingir has graduated
from Middle East Technical University
Department of Civil Engineering and got his
MSc degree at the same University in 1985. He
started his career as a Project Manager in
Kutlutafl Construction in 1989. Between 1989 -
2003 he has undertaken several managerial
positions in Bay›nd›r Holding, Bay›nd›r
Construction, Erel Technology Group. In 2003
he started to work as a consultant and in April
2006 he joined to Zorlu Energy as Procurement
and Logistics Director.
Zorlu Energy 2007 Annual Report 27
A. Tansel VARAN
Director, Human Resources and Corporate
Communications
(1970 - ‹stanbul) A. Tansel Varan has graduated
from ‹stanbul University Faculty of Economics
and Finance. He got his MA degree in
economics from University of Vienna in 1996
and in 1997 he attended Business English and
Internet Certificate Program at the University of
California Berkley (USA). He joined to Anadolu
Group as a Management Trainee in 1997 and
served in various managerial positions in the
group. He worked as Human Resources
Manager in Do¤an Group and Ak-Al Textile
between 2002 and 2005 and joined to Zorlu
Energy in December 2005 as Human Resources
and Corporate Communications Director.

28 Zorlu Energy 2007 Annual Report
activities
Zorlu Energy's power stations reached their maximum
capacity in 2007, allowing the Company to continue increasing
its sales.
Management assessment and
analysis of operational results

Zorlu Energy 2007 Annual Report 29

30
Zorlu Energy 2007 Annual Report
production
EÜAfi (Electricity Generation Co. Inc.) and its subsidiaries account
for 48% of all energy generation. The private sector accounts for
52% of all energy produced in Turkey.
Economic and sectoral developments impacting operations
Turkish Electricity Sector
Four public enterprises operate in the Turkish electric power
market: EÜAfi-Electricity Generation Co. Inc. (generation), TETAfi-
General Management of Turkish Electricity Trading and Contracting
Inc. (sale), TE‹Afi-Turkish Electricity Transmission Company
(transmission) and TEDAfi-Turkish Electricity Distribution Co. Inc.
(distribution). While the distribution business is carried out by 21
companies, only one of them (operating in Kayseri) is a private
sector company. Three more distribution companies (Baflkent,
Sakarya and Ayedafl) are expected to be brought under the scope
of the privatization program to be auctioned by the end of 2008.
EÜAfi and its subsidiaries command a 48% share of total energy
production. The private sector accounts for 52% of all electricity
generation.
Natural gas has the biggest share (45%) of electricity generation
in Turkey, followed by hydroelectric power with a 24% share, while
domestically mined lignite (a variant of coal) accounts for a further
20% of all electricity generated. The private sector is now expected
to reduce use of imported natural gas in electricity generation
and concentrate on hydroelectric power and power stations
operating with imported coal going forward.
Demand for electricity in Turkey has increased at a CAGR of 7.8%
since 1985 in parallel with economic development, industrialization
and urbanization. The growth has continued largely unabated
even in the face of challenges facing the national economy.
Consumption of electricity is expected to carry on rising in the
next 10-15 years. The growth rate in the first 10 months of 2007
was 9%.
Despite the increase in recent years, Turkey's per capita electricity
consumption remains the lowest in Europe at just 1,656 kWh per
year, only half the per capita consumption of 3,325 kWh in Poland,
which has the next lowest consumption on a per capita basis.
According to a research study conducted by TE‹Afi, Turkey will
face a deficit in electricity supply by 2009 based on a high-demand
scenario, or by 2011 under a low-demand scenario projection.
According to TE‹Afi estimates, Turkey will require 30,000 MW of
new generation capacity by 2016, necessitating USD 3-4 billion
in annual investment expenditure.
Although natural gas prices have risen by 84% since 2003 in
parallel with the continuous surge in crude oil prices, electricity
sales prices were not raised until 2008.
The reason for the squeezing profitability in the sector becomes
clear when it is considered that the private sector generates 70%
of its electricity from natural gas. Some private sector companies
even requested the cancellation of their licenses during this period.
A balancing mechanism was established in August, 2006 as per
the Balancing and Settlement Regulation (DUY) in order to close
the deficit in supply and to raise private sector interest in electricity
generation investments.
The purpose of the system is to provide cost-effective and efficient
use of production resources within the system by creating a
competitive quoting environment through a spot market to be
formed by means of price offers of the electricity generating
companies.

A balancing mechanism
was established in August,
2006 as per the Balancing
and Settlement Regulation
(DUY) in order to close the
deficit in supply and to
raise private sector interest
in electricity generation
investments.
Electricity generation by primary energy source
(%)
2,5%
46%
25%
26,5%
Sector
1%
18%
46%
35%
EÜAfi
Liquid Fuels
Natural Gas
Hydro
Coal
Zorlu Energy 2007 Annual Report 31
Although a complete open spot market has not yet emerged due
to the fact that most of the actors on the sale and purchase side
are state enterprises, private producers have started to improve
their margins by on the back of the high price levels dominating
the market.
Residential electricity tariffs were raised by 19% and industrial
tariffs were raised by 12% with effect from January 1, 2008.
In order to encourage the private sector to invest in the sector,
and also by taking planned privatizations into account, the
government declared that the automatic pricing mechanism would
be implemented from July 2008.
The privatization of electricity distribution rights and power station
- particularly coal-fired power stations - is on EÜAfi's agenda.
The privatization of the electricity distribution networks for three
regions is planned to be completed by the end of 2008.
The Russian, Israeli and Pakistani electricity sectors, in which
Zorlu Energy continues to invest, offer similar characteristics to
those of the Turkish electricity sector:
• Demand rising in excess of global average levels
• A need for foreign investment in order to remove the deficit in
supply in near future
• A state-controlled market in electricity generation and distribution
• Increasing electricity prices on the back of strong demand
combined with weak supply, due to rising liberalization

32
Zorlu Energy 2007 Annual Report
The Russian Electricity Sector
Russia is one of the world's three largest producers and consumers
of energy and is one of the key players in the global energy sector.
However, the country's aging infrastructure is struggling under
the weight of Russia's rapid economic growth.
Power stations with around 50 GW of installed capacity in Russia's
European region, corresponding to one quarter of the nation's
total installed capacity, will reach the end of their service life by
2010.
As Russia generates a high level of income from natural gas
exports, the Russian government plans to limit natural gas supply
in electricity generation. The government plans to reduce the
share of electricity generated by natural gas fired power stations
in total electricity production from 69% in 2006 to 65% in 2010
and 60% in 2015.
Unified Energy (UES), 52% owned by the Russian state and 10%
owned by Gazprom, a public company with a monopoly in the
natural gas sector. This energy giant accounts for 70% of Russia's
total energy production and commands a considerable share of
its electricity transmission and distribution networks. Following a
restructuring process, UES expects to offer its shares to the public
or transfer shares of 20 publicly owned energy generation
companies. The reform process necessitates the privatization of
production and distribution facilities by UES; however, the entire
transmission network of the country will remain under state control.
Demand for electricity in Russia is expected to rise by 5.2% in
2008 and to triple by 2020. Electricity consumption in Russia rose
by 4.2% in 2006, double the government's official estimate, and
exceeding the increase in energy production.
UES decided to bring a large scale USD 124 billion investment
plan into effect in 2016.
UES announced that global energy giants such as Fortum
(Finland), Enel (Italy), E.ON (Germany), Endesa (Spain), Electricite
de France (France) and AES (USA) were ready to invest in the
Russian market.
The Electricity Sector in Israel
Israel Electric Corp. (IEC) is Israel's only integrated electricity
generating company and produces, transmits and distributes
almost all of the electricity consumed throughout the country.
The Israeli state owns 99.85% of IEC. At the end of 2006, the
Company had 17 power stations with a combined installed
capacity of 10,899 MW. Israel is world's leader in solar energy
research and makes extensive use of solar energy for hot water.
The government has been targeting privatizations in the energy
sector since 1996. According to reform plans revised by the
Ministry of Infrastructure, the IEC will be divided into a variety of
subsidiaries based on business function (generation, transmission
and distribution). The second phase of the reform package is to
divide these subsidiaries into smaller companies and then privatize
them. The development of the electricity sector will be left only
to private electricity producers by 2010.
Israel's demand for electricity rose at a CAGR of 4.9% between
1996 and 2006, surpassing the 3.4% rate of GDP growth in the
same period, while the rate of growth in the country's total installed
capacity was 3.1% over the same period. In 2006, the state issued
licenses to private electricity producers to generate 2,500 MW of
electricity, equal to 25% of the country's total installed capacity.
In order to meet the increase in demand that it has projected,
IEC aims to raise its production capacity by a total of 36% to
15,000 MW by 2011.
As of December 2006, 71% of Israel's electricity was generated
from coal, 18% from natural gas and 11% from gasoline and
diesel. IEC converts generators coal and oil fired generators into
natural gas fired generators and plans to raise the amount of
electricity generated from natural gas to 50% of the total by 2010.

The Russian, Israeli and
Pakistani electricity
sectors, in which Zorlu
Energy continues to invest,
offer similar characteristics
to those of the Turkish
electricity sector.
The Electricity Sector in Pakistan
Zorlu Energy 2007 Annual Report 33
The electricity sector in Pakistan is managed by two primary
energy authorities. The Pakistani Water and Power Development
Authority (WADPA) is responsible for the supply of energy
throughout Pakistan. The energy branch of the WADPA has been
divided into generation, transmission and distribution companies.
The Karachi Electric Supply Company Ltd. serves Karachi and
its immediate surroundings with the contribution of private
producers. As of December 2006, there were 21 private electricity
producers in the country on the basis of the build-own-operate
(BOO) system.
Pakistan has a total installed production capacity of 19,800 MW.
Thermal power plants account for about 65% of this total with
33% generated from hydroelectricity and 2% from nuclear power
plants.
Private producers have accounted for a large part of the growth
in energy production in recent years, along with several of the
WADPA's hydroelectric dam projects. Some private producers
have been raising funds from foreign investors. The rapid increase
in capacity has brought a partial solution to the power cuts
throughout the country and the seasonal fluctuations in Pakistan's
hydro-electricity capacity.
Electricity consumption has grown at a CAGR of 6% since 2001.
Pakistan's energy deficit is projected to hit 5,000 MW by 2010
based on the current level of capacity; projects have been
approved with a combined capacity of 1,769 MW to come on
stream by 2010, only meeting 30% of the projected deficit.
Swathes of the country's rural regions still lack access to electricity,
and these regions are expected to drive substantial growth in
demand for energy in the long term.
It is estimated that around 25% of the electricity generated in
Pakistan is lost during transmission and distribution, due to the
poor quality of the country's transmission and distribution
infrastructure and the significant illegal usage of electricity.

Zorlu Energy 2007 Annual Report
34
8%
Zorlu Energy's power stations produce 8% of the private
sector's total electricity production.
Assessment of the Group's operations and their results
Domestic operations
Electricity Production
Natural Gas Power Plants
The Zorlu Energy Group's Lüleburgaz, Bursa, Ankara, Kayseri
and Yalova power stations generate electricity and steam for the
industrial enterprises which compose the group's main customer
portfolio. The plants have a total installed capacity of 420 MW of
electricity and can produce a total of 207 tons of steam per hour.
These plants generate 8% of the total electric power produced
by the private sector in Turkey, and the energy produced at these
plants is predominantly directed to the Balancing and Settlement
system and partially to industrial firms as uninterrupted and high
quality source of energy.
Hydroelectric Power Plants
The Group continues to work on the projects of three hydroelectric
power plants. Detailed feasibility studies for the construction of
the Sandalc›k (127.8 MW) and Narl› (82.5 MW) hydroelectric power
plants on the Dalaman River and project design activities for the
Tirebolu hydroelectric power plant (preliminary feasibility: 60 MW)
are still in progress.
Renewable Energy Plants
Osmaniye Wind Farm Project
With a focus on renewable and alternative energy resources,
Zorlu Energy Group is building Turkey's largest wind farm.
Rotor Electric Power Generation Inc., one of the Group companies,
holds a 25-year license to generate electricity at the 135 MW wind
farm in Osmaniye. The Company also received two further electricity
production licenses from the Energy Market Regulatory Authority
in 2007 for the two wind farm projects, which will have capacities
of 60 MW and 50 MW, in the same region. Zorlu Energy signed
a contract with GE Energy for the purchase of 54 turbines, each
capable of generating 2.5 MW of electricity, to be used at the
wind farm, to be built by Rotor on the licensed field. In its first
phase, the wind farm will have a capacity to produce 135 MW of
electricity, with electricity generation planned to commence in
2009. The state guaranteed that it will buy the generated electricity
at a price of Euro 0.055/kWh.
A Carbon Emission Sale Contract was signed with Ireland-based
EcoSecurities Group PLC in 2007 for the sale of carbon emissions
until the end of 2012, arising in connection with the wind farm
project.
Natural Gas Exploration and Production Activities
Zorlu Petrogas and Amity Oil International are the two Zorlu Energy
Group companies to operate in the field of natural gas exploration.
Zorlu Petrogas, in which Zorlu Energy holds a 79.1% stake, holds
a natural gas exploration license for 15 regions. Although geological
and geophysical studies and evaluations are still being carried
out in the respective regions, the Company currently has no
natural gas reserves or power stations. Amity Oil International, in
which Zorlu Petrogas acquired a 100% stake in 2005, holds a
natural gas exploration license for 9 regions. Amity Oil International
continues natural gas and oil exploration activities in Thrace in
cooperation with TPAO (Turkish Petroleum Corporation), while
the Company has been producing and selling natural gas since
2002. Amity Oil International extracted 182 million m 3 of natural
gas in 2007, and aims to increase this figure to 185 million m 3 by
2008.
Natural Gas Distribution Activities
The Group is currently engaged in natural gas distribution activities
in Thrace and Gaziantep, and has been undertaking infrastructural
work on one hand while gradually initiating natural gas distribution
on the other. Natural gas was brought to both regions in 2007.
Natural gas distribution was rolled out to homes as well as
industrial facilities.

With a focus on renewable
and alternative energy
resources, Zorlu Energy
Group is building Turkey's
largest wind farm.
International Operations
Electricity Generation
Natural Gas Power Plants
Zorlu Energy 2007 Annual Report 35
Russia
Zorlu Energy builds two power plants in Moscow:
• Tereshkovo (340 MW & 150 Gcal heat)
• Kojukhovo (340 MW & 270 Gcal heat)
Following the establishment of a 51% partnership with ICFS
International located in Virginia, USA, chosen as the investment
partner to realize power station projects in Russia, Rosmiks Ltd.,
100% indirectly controlled by ICFS, won the tenders for the 340
MW Tereshkovo power station and 340 MW Kojukhovo power
station which were called by the Moscow Municipality for the city's
electricity and heating requirements.
Construction work for the 170 MW Tereshkovo and Kojukhovo
power stations - which comprise the first phase of the investment
- got underway in 2006 and gained pace in 2007. Both power
stations are expected to enter operation in the last quarter of
2008. Work on the second phase of the investment is planned to
get underway in early 2009.
Construction of the two power stations in Russia is carried out by
Zorlu Industrial, while Zorlu O&M will be responsible for their
operation and maintenance.
Negotiations with the Russian Tariff Committee in respect to
electricity tariffs are still under way. Agreements will be also signed
with possible purchasers - Mosenergosbyt (electricity) and Moek
(heat). Tariffs will be set at an annual basis until 2011, when the
Russian natural gas and electricity price quoting mechanism is
scheduled to be completely liberalized. Moreover, the Moscow
Municipality will guarantee to refund the difference between the
commercial gas price and the price set for Mosenergo, the city's
biggest electricity auto-producer.

36 Zorlu Energy 2007 Annual Report
1,050 MW
Work is currently in progress on four projects
with a total capacity of 1,050 MW in Israel.
Israel
Zorlu Energy has a presence in Israel's private electricity production
sector. The Company plans to realize four projects in Israel through
partnerships which it has established. While such projects are
still in the planning process, investments are envisaged to get
underway following the completion of necessary financial
processes. Production is anticipated to commence in 2011 at the
earliest once the investments have been completed.
Dorad Project
The Group's largest project in Israel is the Dorad project. A
shareholder's agreement was signed between Eilat Ashkelon
Infrastructure Services Ltd., Edelcom Ltd, U. Dori Engineering
Works Corporation Ltd. and Zorlu Enerji for the project in respect
to Dorad Energy Ltd's natural gas conversion power plant located
in Ashkelon, Israel, with an installed capacity of 800 MW, whereby
the Group has a 25% partnership with Dorad Energy Ltd. The
plant in question is the largest privately owned power plant in
Israel and will provide about 8% of the total national installed
capacity.
Dorad's biggest customer will be the Ministry of Defense.
Additionally, under the scope of the project, a 15-year gas purchase
agreement was signed with the Egypt-based EMG at the end of
2007, which will be effective from 2011.
Zorlu Energy has three further projects of cooperation with the
Israel based Edeltech Ltd. for the establishment of natural gas
fired power stations, which will provide electricity and steam to
Israel's industrial enterprises.
Ashdod Project
Ashdod Energy Ltd., in which the Company holds a 51% stake,
plans to invest in a cogeneration power plant which will have a
capacity of about 50 MW of electricity and 40 tons/hour of steam.
Ramat Negev Project
Ramat Negev Energy Ltd., in which the Company holds a 51%
stake, plans to invest in a cogeneration power station which will
have a capacity of about 100 MW of electricity and 70 tons/hour
of steam.
Solbar Project
The Company has established a 26.5% partnership with Solbar
Energy Ltd. which plans to invest in a cogeneration power station
which will have a capacity of about 100 MW of electricity and
70 tons/hour of steam.
Zorlu Industrial is constructing the power stations in Israel, while
Zorlu O&M will be responsible for their operation and maintenance.
Renewable Energy Plants
Pakistan Wind Farm Project
Zorlu Energy signed an agreement with the Pakistani Alternative
Energy Development Board (AEDB) in 2006 to establish a wind
farm in Pakistan. According to the signed agreement, AEDB will
allocate an area to Zorlu Energy in the wind power development
region located in Jamphir, Haydarabat; Zorlu Energy, in return,
will build a wind farm in this region and generate electricity for a
period of 20 years. The first phase of the project will have a
maximum generation capacity of 49.5 MW, with an option to
increase capacity up to 300 MW.
In this project, as in Zorlu Energy's other investments, Zorlu
Industrial is constructing the wind farm while Zorlu O&M will be
responsible for their operation and maintenance.
Work on the power station is planned to get underway in 2008,
with the power station scheduled to come on stream during 2009.
The electricity generation and electricity sale tariffs were announced
in the declaration made by the Pakistani National Electric Power
Regulatory Authority (NEPRA) at the end of 2007, and these
terms will be valid for a period of 20 years. According to this,
the first 50 MW phase of the project is projected to generate
149,000 MWh of electricity, with the weighted average sale price
of the energy determined as 10.5 US cents/kWh over the 20 year
period.

One field where Zorlu
Energy Group stands out
from the competition is its
ability to produce solutions
including turnkey EPC
(Engineering, Procurement
and Construction) services.
Other Operations
Zorlu Energy 2007 Annual Report 37
Maintenance and Operation Services for Power Stations
Zorlu Energy Group serves power plants both at home and abroad,
predominantly with long-term maintenance agreements under
the scope of its maintenance and operation services.
In addition to its cooperation agreements with General Electric,
Chromalloy and Turkish Airlines, the Group provides operation
and maintenance services for Zorlu Energy's power stations in
Turkey, as well as Nuh Energy, Bosen Energy and Y›ld›z MDF;
internationally, the Group provides services for power stations of
the Public Power Corporation in Greece and the Alghanim
International General Trading & Contracting Co. in Kuwait.
Zorlu O&M will provide the operation and maintenance services
for Zorlu Energy's projects in Russia, Israel and Pakistan, where
the construction is still under way.
Power Plants Construction and Installation Services
One field where Zorlu Energy Group stands out from the
competition is its ability to produce solutions including turnkey
EPC (Engineering, Procurement and Construction) services. This
feature, which moves the Group one step forward in its sector,
ensures that it is a preferred business partner in national and
international markets.
Within the scope of these services, Zorlu Energy will provide EPC
services for the construction of the Group's two 340 MW power
plants in Moscow and four combined conversion plants in Israel,
with generation capacities ranging between 50 and 800 MW.

38 Zorlu Energy 2007 Annual Report
906.6 MW
The company's total installed capacity is projected to reach
906.6 MW in 2008 following the completion of projects and
investments currently under way.
Developments in production
Electricity generation for 2007
Zorlu Energy Turkey
Months (MWh) (MWh)
January 215,903 15,863,243
February 195,841 14,646,495
March 184,989 15,749,667
April 215,080 14,917,033
May 188,757 15,204,905
June 179,781 15,815,617
July 219,836 17,581,158
August 220,240 17,773,217
September 207,363 15,785,791
October 196,153 15,051,196
November 215,427 16,079,322
December 225,655 16,695,227
Total 2,465,026 191,162,871
Cumulative installed capacity
(MW)
420
2007
173.4
906.6
2008
173.4
1,153.6
2009
197.9
1,241.1
2010
246.9
1,482.1
2011
Zorlu Energy's current level of production constitutes 8% of the
total electricity generated by private sector companies in Turkey.
Productivity and safety studies are continuously being carried
out and improvements have been made accordingly at the
Company's plants. Efficiency per kWh increased during 2007,
and thus more electricity was generated by using less gas.
Zorlu Energy's established capacity is projected to rise to
906.6 MW in 2008 following the completion of projects currently
in progress and further planned investments, and is planned to
reach 1,912 MW by 2014 by sustaining the growth trend in the
coming years.
320.4
1,508.6
2012
920.4
1.708,6
2013
920.4
1.912,6
2014
Partners
Zorlu Energy

Breakdown of sales
(MW)
Group 14%
Outside the Group 12%
Inside 2%
DUY 72%
Sales 2005 2006 2007
Electricity (KWh) 1,948,655,767 2,474,980,355 2,643,410,040
Steam (tonnes) 556,010 711,323 702,700
Natural Gas (S/m 3 ) - 250,085,768 227,888,631
Sales revenues-EBITDA
(USD million)
9.0
161,1
2005
21.9
274.1
2006
37.0
361.3
2007
EBITDA
Sales revenues
Sales
Zorlu Energy 2007 Annual Report 39
Zorlu Energy sells 72% of the electricity it generates to the
Balancing and Settlement (DUY) market. The Balancing and
Settlement market offered a price 4% in excess of that offered by
TEDAfi (Turkish Electricity Distribution Co. Inc.) in 2007.
Zorlu Energy sells the remaining 14% of the electricity it generates
to Group companies and 12% to companies outside the Group.
The Company's sales revenues exhibited 32% YoY growth in 2007
to be realized at USD 361 million, while the Company's EBITDA
reached USD 35 million in 2007 vs. USD 23 million in 2006.

40 Zorlu Energy 2007 Annual Report
2,700 GWh
Zorlu Energy aims to produce 2,700 GWh of electricity
in 2008.
Investments
Most of the investment expenditures for the first phase of the
Tereshkovo-Kojukhovo projects in Russia will be made in 2008.
The second phase investments (2*170 MW) are planned to start
in the first half of 2009.
Investment expenditures concerning the Osmaniye (Rotor) Wind
Farm and Jhampir, Pakistan Wind Farm projects will be carried
out during 2008.
Project Capacity MW Type Investment Planned (USD million)
Domestic
Osmaniye 135 Wind 240
60 110
50 90
Narl›&Sandalc›k 204 Hydroelectric 250
Tirebolu 60 Hydroelectric 100
Foreign
Moscow, Russia
Tereshkovo-Kojukhovo 680 Natural Gas 1,110
Phase 1 340 710
Phase 2 340 400
Jhampir, Pakistan 49.5 Wind 115
Israel
Dorad 800 Natural Gas 850
Ashdod 50 Natural Gas 70
Solbar 100 Natural Gas 110
Ramat 100 Natural Gas 110
Investment concerning natural gas distribution totaled to USD 40.2 million.
Investment (USD million) Current Planned
Thrace region 24.2 147
Gaziantep region 16 132
Total 40.2 279
Future-related expectations and projections
• Zorlu Energy aims to generate 2,700 GWh of electricity and
703,000 tons of steam in 2008.
• As a part of vertical integration process, Zorlu Energy will deal
with electricity distribution privatization tenders planned to be
held in 2008.
• Studies into the establishment of a coal fired power station with
a minimum capacity of 1,000 MW are under way.
• Russia, Tereshkovo-Kojukhovo (1st phase), Pakistan, Jhampir
Wind Farm and Turkey Osmaniye Wind Farm,,investments will
be carried out during 2008. The completion and full operation of
these projects are targeted for 2009.

Zorlu Energy 2007 Annual Report 41

42
Zorlu Energy 2007 Annual Report
people
As a core plank of its social responsibility principle, Zorlu Energy Group
carries out its activities within an environmental management system based
on improving environmental awareness and supporting the protection of the
environment and natural resources, to create a better, cleaner world.
Zorlu Energy Group, People and the Environment
Zorlu Energy Group specifies working standards to protect the
health and safety of its employees and to reduce the negative
impact of its activities on the environment by reflecting its
philosophy of quality, which lies at the heart of its corporate culture
and is confirmed with its Integrated Management System.
Zorlu Energy, the main company performing the production
activities of the Group, holds the ISO 9001:2000, ISO 14001 and
OHSAS 18001 Management System certificates and works in
accordance with the Integrated Management System.
Zorlu Energy was the first auto producer company in Turkey to
be awarded with a quality certificate. The Company was found
to be in compliance with all criteria set out by the quality system
FORCE-Dantest CERT and was awarded the TS/EN ISO 9001:2000
Quality Management System Certificate in 2001. In 2004, Zorlu
Energy went on to acquire the OHSAS 18001-1999 Occupational
Health and Safety Standards Certificate and the ISO 14001:1999
Environmental Management System Certificate.
Zorlu Energy Group's Environmental Policy
Zorlu Energy Group views the environment as a treasure to be
preserved for future generations, and as a key plank of its social
responsibility, conducts its activities within an environmental
management system based on improving environmental
awareness and protecting natural resources in order to create a
better and cleaner world.
In line with this purpose, in all activities of Zorlu Energy Group:
• Materials and technologies are chosen which will minimize
negative impacts on the environment.
• Energy and natural resources are used the most efficient manner
possible.
• Systems are applied to prevent pollution at the source, even
before it appears.
• Wastes (solid, liquid and gaseous) are kept under strict control
and disposed of without harming the environment.
• National and international legal environmentally related
regulations and agreements are followed.
• Employees and subcontractors undergo training aimed at
raising their environmental awareness.
• Impact analysis studies are conducted which take the
environmental factor into consideration in new investments.
Zorlu Energy Group's Policy on Workers' Occupational
Health and Safety
One of Zorlu Energy's core policies is not to compromise on its
workers' health and safety in its activities.
The elements of this policy have been specified in line with the
objectives such as accident prevention and avoiding harm to
people and facilities in operational activities, and to take any kinds
of measures for this purpose:
• To always preempt dangers and take measures against the
risk of possible losses, accidents or damages within the scope
of the principles related to health and safety;
• To reduce the adverse impacts of activities on human health,
to raise the awareness of all employees, subcontractors,
customers, and contractors on health and safety, to support them
with training programs and to cooperate with all institutions which
monitor public benefits in this field;
• To prevent recurrence of any harmful events or accidents and
prepare reports in respect to such events and accidents in order
to improve organizational performance, as well as to ensure that
lessons are learnt from such events;
• To award those who contribute to the improvement of health
and safety related issues;
• To effectively carry out the Emergency Management Plan when
necessary;
• To comply with legal regulations related to this policy.

Zorlu Energy 2007 Annual Report 43
environment
Energy efficiency and
savings are central themes
of Zorlu Energy Group's
field of social
responsibility, which are
followed by the Group's
activities towards the
environment, education
and children, especially
those who are disabled or
who have special needs.
Corporate Social Responsibility
Zorlu Energy Group approaches the concept of social responsibility
from two angles: corporate responsibility and corporate social
responsibility.
The field of corporate responsibility deals with issues directly
related to the Group's activities such as ethical business-making
principles, corporate governance, environmental awareness, and
employees' rights. Within this framework, the UN Global Compact
signed by the Zorlu Holding is principally taken as a reference in
the activities of the Energy Group. Moreover, practices adopted
by Group companies follow targets and resolutions specified in
respect to energy savings and regarding each activity (from use
of paper to water consumption) in an attempt to reduce the impact
of the Group's activities on global warming.
The field of corporate social responsibility aims to make a
sustainable contribution to areas which are of importance to
society. Apart from social needs, social responsibility fields have
been specified following evaluations based on trends in developed
countries, society's expectations, compliance with the Group's
activities and their contribution to corporate identity.
Energy efficiency and savings are central themes of Zorlu Energy
Group's field of social responsibility, which are followed by the
Group's activities towards the environment, education and children,
especially those who are disabled or who have special needs.
Zorlu Energy, along with other Zorlu Group companies, contributes
to education through the Mehmet Zorlu Foundation. Moreover,
Zorlu Energy has donated computers and electrical devices to
the education center established in ‹stanbul, belonging to the
Par›lt› Association, where our visually impaired children are
educated so they can continue their lives as independent
individuals.
Zorlu Energy Group has followed a route of rapid growth in recent
years, in parallel with the liberalization in the sector, while at the
same time strengthening its corporate structure.
Within this framework, studies have been carried out to prepare
for long-term projects concerning energy efficiency and other
specified fields within the scope of corporate communication
activities, which are deemed to be of high benefit to society and
generate a tangible contribution for society.

44 Zorlu Energy 2007 Annual Report
communica ca
Zorlu Energy Group boasts a sound, assertive and strong
name before the public, supported by the Zorlu name.
Zorlu Energy Group, People and the Environment
Corporate Communication Strategy
Fundamental elements of the corporate communication strategy
of Zorlu Energy Group are:
• To develop corporate prestige;
• To cement and perpetuate the existing perception with activities
that will enable us reach the targeted perception;
• To strengthen bidirectional communication with all stakeholders;
• To ensure the adoption of the Group's position and values
within the organization and to strengthen communication and
sharing;
• To take social responsibility in specified areas;
• To perform planned and continuous communication.
Zorlu Energy Group boasts a sound, assertive and strong name
before the public, supported by the Zorlu name. The Group has
further strengthened its prestige by stressing the importance of
the social dimension inherent in the energy sector in its activities
and communication, and highlighting Zorlu Energy's position as
a leading and reliable corporation in respect to national energy
policies.
Zorlu Energy Group's ultimate target in its communication activities
to spread awareness that it is an employer with the following
features, by further improving the existing positive perception of
the Group:
• Specialized and experienced,
• A leader, with a voice and a point of reference in the sector,
• Popular,
• Transparent, well managed and equipped with a sense of
corporate and social responsibility,
• Respectful of the environment,
• A reliable business partner in the global dimension,
• Cares about the happiness of its employees in their business
and private lives, and contributes to their individual development
and careers.
Human Resources
The basic HR principles at Zorlu Energy Group, which believes
that happy employees bring high performance, are as follows:
• To provide a pool of professionals qualified for and capable of
applying new developments in the field of energy in line with our
targets to the Group companies;
• To provide its employees with national and international career
opportunities where they can unleash their potential, display their
creativity and abilities and thus raise individual and team
performance; and
• To support the working environment through effective
communication and motivation.
Within the framework of these principles, Zorlu Energy Group
works to establish a rapidly moving and proactive organizational
structure and to implement HR policy practices which will raise
employees' abilities and efficiency for the purpose of all Group
companies to reach their targets. Such activities are supported
by a fair and competitive performance evaluation and pay system
based on the abilities of the personnel, as well as their businessrelated
responsibilities, training and experience, as required by
the business, while addressing to employees' abilities and high
performance.
Professional training sessions are held with a view towards
supporting individual development of employees.
Zorlu Energy Group employs a total of 598 people, 213 of whom
serve at Zorlu Energy. 43% of the employees are university
graduates and 50% are high school graduates.
In line with the growth of the Zorlu Energy Group, achieved on
the back of its vision and targets, the Group's workforce is
constantly expanding. Zorlu Energy Group plans to hire 100-150
new workers to join Group companies in 2008. Planned
communication activities are conducted to promote communication
between employees and to develop a sense of corporate
citizenship. Employee awareness of corporate targets and
managerial decisions and practices is considered highly important
in raising employee loyalty to the company and therefore achieving
successful business results. Therefore, managerial decisions are
shared with all employees through intra-corporate communication
channels.

tion
Zorlu Energy 2007 Annual Report 45

46
Zorlu Energy 2007 Annual Report
Group Companies
ZORLU INDUSTRIAL AND ENERGY FACILITIES
CONSTRUCTION AND TRADE INC.
Zorlu Industrial entered operation in 2000 for the purpose of being
a preferred contractor in the international energy market.
Zorlu Industrial produces environment-friendly and cost-effective
solutions including the following services:
• Pre-feasibility studies for investors
• Engineering
• Purchasing activities
• Turn-key construction and mounting (EPC - Engineering,
Procurement and Construction)
Performing all of its operations under the ISO 9001-2000 Quality
Assurance System Certificate, Zorlu Industrial gained a presence
for itself in the international market with its successfully completed
facilities. Zorlu Industrial is also responsible for the construction
of two plants in Moscow, each with a capacity of 340 MW, and
the EPC of 4 combined cycle plants in Israel, the capacities of
which vary between 50 and 800 MW.
ZORLU O&M POWER PLANT OPERATION AND
MAINTENANCE SERVICES INC.
Zorlu O&M was founded in 2000 to provide operation and
maintenance services for Zorlu Energy and other energy
companies. Zorlu O&M is the first national operation and
maintenance company in the Turkish energy sector.
Zorlu O&M renders service in the following fields:
• Complete plant maintenance
• Plant operation
• Complete turbine replacement
• Replacement of hot part modules
• Repair of compressor steering fin
• Maintenance of control systems and software development
• Performance and efficiency increasing repairs
Holding the ISO 9001:2000, ISO 14001:1996 and OHSAS
18001:1999 Quality Assurance Systems Certificates, Zorlu O&M
focuses on providing timely services with a customer-oriented
service approach, applying the latest technology through a welltrained
and experienced maintenance workforce.
Zorlu O&M has cooperation agreements with General Electric,
Chromalloy and Turkish Airlines, and provides operation and
maintenance services in Turkey for Zorlu Energy's power stations
in Turkey, as well as Nuh Energy, Bosen Energy and Y›ld›z MDF;
internationally, it provides services for the power stations of the
Public Power Corporation in Greece and Alghanim International
General Trading & Contracting Co. in Kuwait.
Operation and maintenance services to Zorlu Energy's projects
in Israel and Pakistan, construction of which is still under way,
will also be rendered by Zorlu O&M.
ZORLU PETROGAS PETROLEUM, GAS AND
PETROCHEMICAL PRODUCTS, CONSTRUCTION,
INDUSTRY AND TRADE INC.
Zorlu Petrogas was founded in 2000 to conduct natural gas
distribution projects, set up oil and petrochemicals production
facilities as well as the search, exploration, extraction and trading
of oil and natural gas.
Having acquired 15 licenses for natural gas and petroleum
exploration in a variety of regions throughout Turkey, the Company
conducted drilling and seismological studies in Adana and Hatay
between 2004 and 2006. The Company has been conducting
studies in Thrace since 2007.
Having bid in tenders held by EMRA (the Energy Market Regulatory
Authority) in 2005, Zorlu Petrogas won the tenders for natural gas
distribution in Thrace and Gaziantep for a period of 30 years and
established a variety of companies to carry out the distribution
business.

AMITY OIL INTERNATIONAL
Fully owned by Zorlu Petrogas, Amity Oil was founded to conduct
the search, extraction, production and trade of oil and natural
gas. Amity Oil conducts searching and extraction of natural gas
in Thrace, where Amity Oil and the TPAO (Turkish Petroleum
Corporation) hold a common license.
Amity Oil sells the natural gas it extracts in 9 natural gas wells
drilled in Göçerler, Çay›rdere, Adatepe, D. Adatepe, Velimefle,
B.Velimefle, Eskitafll›, Reisdere and Alpullu to industrial facilities
in the Marmara Region. The Company continues its drilling
exploration activities in the same region and is also performing
studies aimed at finding new natural gas production fields.
THRACE REGION NATURAL GAS DISTRIBUTION INC.
Zorlu Petrogas subsequently set up a subsidiary, Thrace Region
Natural Gas Distribution (Gazdafl Thrace), to carry out the
distribution in the residential areas (Tekirda¤, Muratl›, Edirne,
K›rklareli, Kavakl›, Babaeski, Lüleburgaz, Evrensekiz,
Büyükkar›flt›ran, Misinli, Ulafl, Çerkezköy, Kapakl›, K›z›lp›nar,
Karaa¤aç, Velimefle, and Veliköy) in Thrace, for which it was
granted the right to perform natural gas distribution. The subsidiary
was granted the distribution license on January 25, 2006. Having
begun installing the infrastructure necessary for the distribution
process by establishing operation offices in Edirne, K›rklareli,
Tekirda¤, Çerkezköy and Lüleburgaz, the Company started to
distribute natural gas to Çerkezköy, K›rklareli and Lüleburgaz for
the first time in 2007. Gazdafl Thrace's customer portfolio includes
industrial facilities as well as residential customers.
GAZDAfi GAZ‹ANTEP NATURAL GAS DISTRIBUTION INC.
Zorlu Petrogas subsequently set up a subsidiary, Gazdafl
Gaziantep Natural Gas Distribution Inc., to carry out the distribution
to homes in Gaziantep, Kilis and Nizip, for which it was granted
the right to perform natural gas distribution. Having obtained its
distribution license on February 24, 2006, the distributor company
established a Regional Directorate in Gaziantep and an operation
office in Nizip and began installing infrastructure from early 2006.
Natural gas was brought to Gaziantep for the first time in 2007.
Gazdafl Gaziantep provides natural gas to industrial facilities as
well as homes in the region.
Zorlu Energy 2007 Annual Report 47
ZORLU ELECTRICITY IMPORT, EXPORT AND WHOLESALE
TRADE INC.
Zorlu Electric was established in 2003 to purchase electricity from
within Turkey and duty free zones and carry out wholesale or
direct sale within Turkey and export it to foreign countries.
ZORLU NATURAL GAS IMPORT, EXPORT AND WHOLESALE
TRADE INC.
Zorlu Natural Gas was established in 2003 to purchase
compressed natural gas (CNG) and liquefied natural gas (LNG)
from within Turkey, in duty free zones and internationally, to carry
out the wholesale or direct sale both within Turkey and export
CNG to foreign countries.
ROTOR ELECTRIC POWER GENERATION INC.
Rotor was purchased by Zorlu Energy Group in 2007. The
Company was established to build, operate and provide
maintenance to wind farms as well as electricity, steam and heat
production facilities operating with all forms of renewable energy,
and to sell produced electric power, heat and steam.
Rotor Electric Power Generation Inc., in which Zorlu Energy owns
a 80% share through both direct and indirect stakes, carries out
its activities under the scope of its 25-year production license to
implement its project in Osmaniye, the first phase of which has
a capacity of 135 MW, and two other wind farm projects, one of
which has a capacity of 60 MW and the other a 50 MW capacity.
ZORLU HYDROELECTRIC POWER GENERATION INC.
Zorlu Hydroelectric was established in 2007 to build hydroelectric
power plants as well as power stations based on all forms of
renewable energy, and to sell the electricity produced at these
facilities.

48 Zorlu Energy 2007 Annual Report
Corporate Governance
Principles Compliance Report
and Financial Information

Zorlu Energy 2007 Annual Report 49

50
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Corporate Governance Principles Compliance Report
CONTENTS
1- Statement of Compliance with Corporate Governance Principles
PART I-SHAREHOLDERS
2- Investor Relations Unit
3- Shareholders’ Exercise of their Right to Obtain Information
4- Information about General Meetings
5- Voting Rights and Minority Rights
6- Dividend Distribution Policy and Timing
7- Transfer of Shares
PART II-PUBLIC DISCLOSURE AND TRANSPARENCY
8- Company Disclosure Policy
9- Disclosure of Material Events
10- The Corporate Website and its Content
11- Disclosure of the Company’s Ultimate Controlling Shareholder(s)
12- Public Disclosure of Those who may Have Access to Insider Information
PART III-STAKEHOLDERS
13- Keeping Stakeholders Informed
14- Stakeholder Participation in Management
15- Human Resources Policy
16- Relations with Customers and Suppliers
17- Social Responsibility
PART IV-BOARD OF DIRECTORS
18- Structure and Composition of the Board of Directors and Independent Members
19- Qualifications of Board Members
20- Mission, Vision and Strategic Goals of the Company
21- Risk Management and Internal Control Mechanism
22- Authorities and Responsibilities of Board Members and Executives
23- Operating Principles of the Board of Directors
24- Prohibition on Doing Business or Competing with the Company
25- Code of Ethics
26- Number, Structure and Independence of Committees Established by the Board of Directors
27- Financial Benefits Provided to the Board of Directors

Zorlu Enerji Elektrik Üretim A.fi.
Corporate Governance Principles Compliance Report
1- Statement of Compliance with Corporate Governance Principles
In parallel with the activities related to Corporate Governance commenced in 2005 at Zorlu Energy Electricity Generation, corporate
governance mechanisms were started to be run across the Company in line with the said principles. In the first phase of these
activities, a series of amendments were made to the Company’s articles of incorporation so as to be able to offer an egalitarian,
accountable, responsible and transparent structure to the shareholders. While these amendments served to grant the rights
envisaged by the Corporate Governance Principles to minority shareholders, radical changes were made to the management
structure in pursuance of “better governance”. Following the revisions made to the articles of incorporation, Corporate Governance
practices were carried on with the establishment of Corporate Governance mechanisms at the Company. While the Board of
Directors was vested in greater efficiency with independent members, it was aimed to further increase the efficacy in management
by the Audit Committee set up under the Board of Directors.
Activities undertaken in 2007 with a view to further increasing the compliance of Zorlu Energy Electricity Generation are
summarized below:
• Appointment of an independent member as the head of the Audit Committee: Melih E. Araz, an independent board member,
has been appointed to serve as the head of the Audit Committee, and Olgun Zorlu, a non-executive board member, has been
appointed as the other member of the Committee.
• Revamping of the Company’s corporate website in 2007 in line with Corporate Governance Principles: Commenced in 2007, the
work on revamping the Company’s website in line with Corporate Governance Principles is aimed to be brought to completion
during the first quarter of 2008.
• A new performance appraisal system has been introduced for the Zorlu Energy Group employees, which is based on individual
performance but also relates to results obtained by the department and the Company, and which aims to contribute to the
employees’ individual and the organization’s corporate development.
In the implementation of Corporate Governance Principles, certain principles that do not conform to the Company’s structure and
that are regarded as potential obstacles against its activities were excluded. These principles and the reasons for opting not to
comply therewith are summarized below:
• Cumulative voting: The Company does not make use of the cumulative voting method. However, the representation to be
provided by cumulative voting on the Board of Directors is achieved by the presence of independent members on the Board.
• The Company’s articles of incorporation contain no provisions stipulating that material decisions such as “demergers and share
exchanges, buying, selling, or leasing substantial amounts of tangible/intangible assets, or donations and grants, or giving
guarantees such as suretyship, mortgage in favor of third parties” are required to be taken at a general meeting. The underlying
reason is that the nature of the sector in which the Company is active requires it to buy, sell, or lease quite frequently. Having to
hold a general meeting every time such a transaction takes place is considered to be impossible and thus, no such article has
been included in the articles of incorporation. This practice is refrained from in order to ensure that deals are made quickly and to
prevent opportunities from being missed.
Zorlu Energy hereby espouses a transparent and open management style and aims to establish its approach to management that
is responsible and accountable towards all of its shareholders in general and to its minority shareholders in particular.
The new steps to be taken in time in keeping with Corporate Governance Principles will be publicly disclosed on the Company’s
website.
Murat Sungur Bursa Selen Zorlu Melik
CEO of the Energy Group Deputy CEO of the Energy Group
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PART I- SHAREHOLDERS
2- Investor Relations Unit
Zorlu Energy Electricity Generation carries out its relations with shareholders through Zorlu Group of Companies Investor Relations
and Corporate Finance Department. Information for this department which carries out Zorlu Energy’s relations with shareholders is
as follows:
Figen Çevik serves as the director of Corporate Finance and Investor Relations Unit.
The Corporate Finance and Investor Relations Unit can be reached via the Company’s website; also it can be contacted at the
phone number 0 212 286 03 20 or by sending an email to yatirimci@zoren.com.tr. The direct phone line of the Corporate Finance
and Investor Relations Unit also provides a continual means of access.
The principal activities carried out by the Unit in 2007 are summarized below:
About 35 one-on-one meetings
During the reporting period, the Unit received about 80 queries by e-mail and about 40 by telephone.
All these queries were carefully responded to verbally and/or in writing within the framework of the Company's disclosure policy
and in such a way so as not to reveal any trade secrets.
3- Shareholder’s exercise of their right to obtain information
During 2007, Zorlu Energy Accounting Unit received 120 queries from investors, all of which have been responded to in detail. The
breakdown of these queries is presented below:
Query byNumber
E-mail 80
Fax -
Letter -
Phone 40
Total 120
The Investor Relations Unit provided detailed responses to all 120 queries received in 2007. Of the queries received by the Unit,
80% was related to operational and financial performance, and the remaining 20% to various topics including investments, share
movements, information on general meeting, etc.
Zorlu Energy website and material event disclosures were the tools used in 2007 for the disclosure of developments that might
have an impact on the shareholders’ exercise of their rights. Efforts are ongoing to revamp the Company’s website so as to be
able to communicate maximum amount of information in the shortest time possible and on the principles of timeliness, accuracy,
completeness, and in a quick and intelligible manner. By these efforts, it is aimed to vest the website in a structure that covers
sufficient details with respect to shareholders’ right to obtain information, as well as all other aspects stated in the CMB’s
Corporate Governance Principles.
During 2006 annual general meeting, an article regarding the appointment of a special auditor in the form of an amendment to the
articles of incorporation has been presented to the shareholders. The said article read “Shareholders representing five percent of

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Corporate Governance Principles Compliance Report
the Company’s publicly-held shares may demand appointment of a special auditor for specific auditing of a certain material event.
In the event such demand is rejected by the general assembly, shareholders representing at least one twentieth of the Company’s
capitalization shall be entitled to request the appointment of a special auditor from a competent court for the examination and
clarification of the predicament.” No request was made during the reporting period for the appointment of a special auditor.
4- Information on general meetings
Zorlu Energy Electricity Generation held its 2006 annual general meeting on 30 May 2007 at 13:30 at the address Bursa Organized
Industrial Zone.
The invitation for the meeting including the meeting agenda and date has been made within due time by being published in the
Turkish Trade Registry Gazette issue 6803 dated 08 May 2007 and in the Dünya newspaper and Bursa Hakimiyet newspaper, both
dated 08 May 2007, for publicly-held shares; by registered mail to shareholders who had notified their addresses by delivering
share certificates in advance, as well as via the Company website, and by registered mail to all holders of registered share
certificates which are not traded on the stock exchange.
While the general meeting is open to the participation of stakeholders and the media, neither stakeholders nor the media
representatives attended the meeting.
Out of 8,166,535,000 shares corresponding to the Company’s total capitalization of TRY 81,665,350, 5,310,552,008.40 shares or
65% representing TRY 53,105,520,084 in capital were present in person at the meeting. No proxy votes were cast.
To facilitate participation of the holders of registered shares in the general meeting, no deadlines are set for registration in the
shareholders’ register.
Prior to the general meeting, the annual report, financial statements, and the articles of incorporation were made available for the
inspection of shareholders at the Company’s headquarters and at the head office of the Holding. All this information was also
published on the corporate website together with the general meeting announcement and agenda.
Shareholders were allowed to direct questions during the general meeting. All questions posed by shareholders were answered in
detail.
Shareholders introduced no motions during the meeting.
Zorlu Energy Annual Report 2007 53
The Company's articles of incorporation contain no provisions requiring material decisions such as “demergers or buying, selling,
or leasing substantial amounts of assets and property” to be taken at a general meeting. The reason for this is the fact that the
nature of the sector in which the Company is active requires it to buy, sell, and lease quite frequently, and having to hold a general
meeting every time such a transaction takes place is not deemed to be possible. Hence, it has been refrained from including such
an article in the articles of incorporation.
The minutes of the general meetings are made available for the examination of shareholders at the Company's own headquarters
and at the head office of the Holding. Additionally, all announcements, documents, and other materials related to general
meetings are accessible to shareholders and to all other stakeholders on the Company’s website.

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5- Voting rights and minority rights
All of the shares of Zorlu Energy Electricity Generation entail equal rights. There are no privileges with respect to voting rights or
participation in dividends. This matter is not provided for in the Company’s articles of incorporation either.
Zorlu Industrial and Energy Facilities Construction and Trade Inc., Zorlu O&M Power Plant Operation and Maintenance Services,
Zorlu Petrogas Petroleum, Gas and Petrochemical Products, Construction, Industry And Trade Inc., Trakya Region Natural Gas
Distribution Inc., Gazdafl Gaziantep Natural Gas Distribution Inc., Zorlu Electricity Import, Export and Wholesale Trade Inc., Zorlu
Natural Gas Import, Export and Wholesale Trade Inc., Zorlu Hydroelectric Power Production Inc. which are the investments of
Zorlu Energy Electricity Generation, do not have a stake in the Company.
Minority shares are represented in the management by two independent members elected to seats on the Board of Directors. Due
to the fact that the independent members on the Board of Directors have the capability to perform their duties without yielding to
any influence, they equally protect and represent the rights of all shareholders including those of minority shareholders at the
Board of Directors.
The Company does not implement cumulative voting method. However, the representation of cumulative voting is achieved by the
presence of independent members on the Board of Directors.
6- Dividend distribution policy and timing
The Company’s shares provide no privileges concerning distribution of profits. Each share of stock is entitled to an equal dividend.
The proposal for distribution of profits earned in 2006 covered in item 8 of the Company’s general meeting agenda was explained
to the participants, and was unanimously approved at the general meeting.
No dividend distribution was made due to the fact that the financial statements showed loss, which were drawn up according to
the Capital Market Law, the Communiqué Serial: XI No: 25 concerning “Accounting Standards in the Capital Markets”, and the tax
laws.
In accord with the dividend distribution policy established in the Board of Directors meeting held on 07 May 2007, the Company
decided to distribute dividends that are equal to minimum 25% of the attributable profit in cash or in the form of bonus shares to
the shareholders in 2007 and in subsequent years, in line with the provisions of the articles of incorporation. The amount of
dividends to be distributed shall be proposed depending on national and global economic conditions and the Company’s growth
plan by the Board of Directors each year at the general meeting. The said policy was presented for the information of the
shareholders at the 2006 general meeting convened on 30 May 2007.
7- Transfer of shares
The Company's articles of incorporation contain no provisions restricting the transfer of shareholding interests. Article 6 of the
articles of incorporation states that “shares in the Company may be freely transferred without prejudice to the provisions of the
Turkish Commercial Code, CMB Legislation, EMRA Legislation, and these articles of incorporation”.
PART II- PUBLIC DISCLOSURE AND TRANSPARENCY
8- Company disclosure policy
Zorlu Energy Electricity Generation's disclosure policy has been formulated in 2005 in line with the CMB’s Corporate Governance
Principles and has been distributed as an appendix to the annual report for the information of investors at the 2006 annual general
meeting. The disclosure policy has also been published on the corporate website.

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Corporate Governance Principles Compliance Report
The issues addressed by the Company's public disclosure policy are summarized below:
• The clarity, timeliness, and truthfulness of public disclosures
• The contents of public disclosures
• The frequency and the ways in which information may be publicly disclosed
• Disclosure tools
• Individuals authorized to make disclosures
• Relations of Board members and executives with the media
• Meetings with investors
• General meetings
• Disclosures to be made to the media
• Effectiveness of the website
• Disclosures to be made regarding future matters
The disclosure policy has been approved by the board of directors. The Board of Directors is responsible for monitoring, reviewing
and improving the disclosure policy. The Investor Relations Unit, which is planned to be set up, will be responsible for the
supervision and monitoring of the disclosure policy.
9- Disclosure of material events
During 2007, the Company made a total of 20 material event disclosures, which were sent to the CMB and the ISE. Additional
information was requested by the ISE and the CMB for two of the disclosures made. The Investor Relations Unit is responsible for
the disclosure of material events.
Since the Company is not quoted on any overseas stock exchange, the disclosures made were limited to Turkey.
10- The corporate website and its content
The Company has an easily accessible and active website at the address www.zorluenerji.com.tr. The efforts are in progress to
revamp the website so as to cover all of the information listed in Article I.11.5 of Section II of the CMB’s Corporate Governance
Principles.
11- Disclosure of the Company’s ultimate controlling shareholder(s)
The Company has no non-corporate ultimate controlling shareholders.
Zorlu Energy Annual Report 2007 55

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The Company’s shareholding structure is presented below:
SHAREHOLDERS SHAREHOLDING INTEREST (%) NOMINAL SHARE VALUE (TRY)
Zorlu Holding 43.21% 35,288,432.74
Korteks 17.55% 14,330,198.11
Prime Emerging M. 3.50% 2,858,287.25
Zorlu Linen 0.53% 428,743.09
Linens Marketing 0.47% 383,827.15
Zorluteks Textile 0.23% 191,913.57
Zorlu Real Estate Development and Investment Inc 0.35% 287,870.36
Zorlu Grand Hotel 0.23% 191,913.57
Vestek Electronics 0.40% 326,661.40
Zorlu Foreign Trade 4.12% 3,361,276.00
Publicly Held 29.41% 24,016,226.76
TOTAL 100.00% 81,665,350.00
12- Public disclosure of those who may have access to insider information
The Company has publicly disclosed the list of individuals who are in a position to have access to insider information.
These individuals are listed below.
Individual Position
Zeki Zorlu Chairman of the Board of Directors
Melih E. Araz Deputy Chairman of the Board of Directors
Murat Sungur Bursa Board Member and CEO
Olgun Zorlu Board Member
Selen Zorlu Melik Board Member
A. Can Tuncay Board Member
Burak ‹. Okay Board Member
fierif Ar› Statutory Auditor
Hakan Efltürk Statutory Auditor
Mehmet Ali Neyzi Vice President
Hamit Özaslan General Manager / Zorlu Industrial Inc.
M. Erdo¤an Günefl General Manager / Zorlu O&M Inc.
‹. Sinan Ak Deputy General Manager / Energy Group
Gökmen Topuz Deputy General Manager / Energy Group
Serhat fiimflek Deputy General Manager / Energy Group
Hüseyin Morkoyun Deputy General Manager / Natural Gas Group
Abdullah Lütfi Kurtbo¤an Deputy General Manager / O&M
A. Tansel Varan Human Resources and Corporate Communications Director
Bülent Çilingir Procurement and Logistics Director
fiahin Göndiken Projects and Investments Director / Zorlu Petrogas
Figen Çevik Zorlu Group of Companies Investor Relations and Corporate Finance Directors
Gürsel Ya¤an Natural Gas Distribution and Regions Manager[G1]
F. Ayten Eslek Accounting Manager
Erol Birinci Accounting Manager
Hasan Ayd›n Finance Manager

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Corporate Governance Principles Compliance Report
A. Ya¤mur Özdemir Project Finance Manager
Ebru Haytaç Finance and Budget Manager
Mehmet Çavuflo¤lu Optimization and Control Services Manager
Osman Karabay Geothermal Investments Manager
Atilay Y›lmaz Kayseri Power Plant Manager
Gürcan Okumufl Bursa Power Plant Manager
Hüseyin Gül Lüleburgaz Power Plant Manager
Hüseyin Atabay Ankara Power Plant Manager
Türkan Güngör Accounting Assistant Manager
Baflak Sezgin Contracts Specialist
Elif Do¤an Contracts Specialist
Erdal Kural Budget Chief
Müjgan Selik Chief Accountant
PART III- STAKEHOLDERS
13- Keeping stakeholders informed
Zorlu Energy Electricity Generation redesigned its website so as to keep stakeholders informed on matters concerning them, and
made available all kinds of information relating to the Company in line with the Corporate Governance Principles. In addition, the
Company has the intranet system to keep employees informed, whereby the information on the Company can be accessed
subject to limits of authorization. All kinds of information geared towards employees are provided in detail on the intranet.
With respect to keeping customers and suppliers informed, informative meetings are organized as and when such requests are
received from them.
One-to-one or collective meetings are held with investors and brokers, if so requested thereby.
14- Stakeholder participation in management
Stakeholders do not participate in the management. However, importance is attached to ensure participation of employees in the
Board meetings at certain intervals, so as to offer them the chance to voice their opinions directly. There is no model designed to
involve other stakeholders in the management.
15- Human resources policy
The HR policy is devised to cover the recruitment, promotion, dismissal, training, performance appraisal and compensation
systems.
The training activities to be carried out for the purpose of supporting professional and personal development of employees are
structured; the Training Catalogue prepared offers the employees the chance to choose training programs in line with their needs.
Designed to monitor all the training activities in parallel with career plans, the training portal is brought to the final phase.
There is no representative assigned to conduct the Company-employee relationships. Upon appointment, independent members
will represent employees along with all other stakeholders in the Board of Directors.
T
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Corporate Governance Principles Compliance Report
he employees are treated equally and without any discrimination whatsoever in all matters involving training, career development,
promotion, etc.
No complaints have been received from the employees regarding discrimination.
16- Relations with customers and suppliers
Zorlu Energy Electricity Generation gives utmost importance to customer satisfaction. The requests of customers are responded to
within the shortest time possible, and all resources are put into immediate action for resolution of problems forthwith.
Also the Customer Care Unit has been set up to ensure customer satisfaction. The Unit mostly extends technical and financial
support. Intermediary services are also offered in relation to the problems the customers experience with the regulatory authorities
such as the EMRA and the Treasury. In line with the EMRA regulation, the customers’ counters have been replaced by the
Company and modems have been installed to enable remote monitoring of counters.
Because the Company is not in direct relationship with its customers, customer satisfaction is predominantly related to the high
level of discount rates.
17- Social responsibility
In all of its activities, Zorlu Energy carefully observes the United Nations Global Compact which is signed by Zorlu Holding and
which covers all Group companies.
During 2007, the Company had all necessary and legal examinations carried out concerning the protection of the environment.
Along this line, Environmental Impact Assessment (EIA) certificates are obtained for all installations every year from the Ministry of
Environment.
According to the environmental impact reports, no violations of environmental protection have been established to date and all of
the Company’s practices are being carried out with a keen eye on the environment factor.
The Company also holds three certifications received from ISO relating to the protection of the environment.
During the reporting period, the Company caused no harm to the environment and no lawsuits were lodged against the Company
on account of environmental damage.
Within the scope of social responsibility, the aim is to offer sustainable contribution in areas that the society needs. Energy
efficiency and saving takes the lead among the social responsibility fields identified. It is planned to launch publications that will
enhance awareness of the society in these topics. These are followed, in order of priority, by environment, education, and activities
geared towards children in general and handicapped children in particular. The computer and electrical household appliance
needs were fulfilled for the training center set up in ‹stanbul by Par›lt› Derne¤i, an association pursuing activities on the premise of
offering training and education to visually-impaired children so as to help them carry on with their lives as independent individuals.
Contributions to education are carried out by Mehmet Zorlu Foundation, and Zorlu Energy Electricity Generation supports these
initiatives as a Group company.

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PART IV- BOARD OF DIRECTORS
18- Structure and composition of the Board of Directors and independent members
The Board of Directors of Zorlu Energy Electricity Generation is composed of seven members. Almost all of the Board members
are non-executive members.
Zeki Zorlu, the chairman of the Board, serves as a non-executive member. The general manager of the Company is Salim
Arslanalp. The chairman of the Board and chief executive officer are different individuals.
Member Position Classification
Zeki Zorlu Chairman of the Board of Directors Non-executive
Melih E. Araz Deputy Chairman of the Board of Directors Non-executive
Murat Sungur Bursa Member Executive
Olgun Zorlu Member Non-executive
Selen Zorlu Melik Member Executive
A. Can Tuncay Member Non-executive
‹. Burak Okay Member Non-executive
In keeping with Corporate Governance, two independent members have been elected to the Board of Directors which is
composed of seven members in total.
Independent members satisfy the independence criteria set forth in the CMB’s Corporate Governance Principles Communiqué.
No restrictions are imposed on Board members' undertaking one or more duties outside the Company.
19- Qualifications of Board members
Upon the amendments to be made to the articles of incorporation at the annual general meeting, the minimum qualifications
required of Board members shall be incorporated in the articles of incorporation. Qualifications that will be included in the articles
of incorporation fully coincide with those stipulated in articles 3.1.1, 3.1.2 and 3.1.5 of Section IV of the CMB’s Corporate
Governance Principles.
The Corporate Governance Committee which will function under the Board of Directors of Zorlu Energy Electricity Generation has
decided to create training programs for members not satisfying some of the qualifications referred to above, in case such a need
arises. To date, no training has been given to Board members.
20- Mission, vision and strategic goals of the Company
The mission and vision of the Company have been spelled out and publicly disclosed by the Board of Directors.
Mission: Be the leading power in Turkey and a regional power in the world in all segments of the energy sector.
Vision: Generate and distribute safe, quality, environmentally-compatible and sustainable energy; create value for our
shareholders, customers and employees based on effective, market- and customer-focused activities.
The Board of Directors approves the strategic goals formulated by executives.
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The Board of Directors of Zorlu Energy Electricity Generation takes care to obtain the opinions and suggestions of the relevant
units while setting the strategic goals. Suggestions relating to strategic goals are reported to the Board of Directors and work is
undertaken so as to implement these goals as soon as possible. The extent to which the goals are attained is measured by
monitoring the results on the basis of activities quarterly when financial statements are drawn up and at year-end. Once a year, the
Board of Directors conducts an annual review of the degree to which the Company has accomplished its objectives, as well as its
activities and past performance.
21- Risk management and internal control mechanism
Zorlu Energy Electricity Generation Board of Directors uses the SAP system at the Company for purposes of risk management and
internal control. The SAP system enables running/recording of all integrated work processes on computer systems at the
establishments, thus increasing the speed and productivity of the relevant establishment. The system also gives employees and
managers access to all kinds of information and reports that concern them in line with the scopes of their authorizations.
In addition, a program has been created on the Company’s intranet system for monitoring problems related to internal control,
which is effectively operated. Any issue that arises at any level is referred to the relevant manager and resolved.
The Board of Directors of Zorlu Energy Electricity Generation defined existing and potential risks and formulated the policies in
relation to the same.
22- Authorities and responsibilities of Board members and executives
The authorities and responsibilities of Board members were not set forth in detail in the articles of incorporation of Zorlu Energy
Electricity Generation
By the revision made to the articles of incorporation at the 2005 general meeting, the authorities and responsibilities of Board
members were incorporated in the articles of incorporation.
The authorities and responsibilities of the Board of Directors, which are also covered in the articles of incorporation, are stated
below:
• Defining and publicly disclosing the Company’s mission and vision, and monitoring and supervising the accomplishment of the
targets set;
• Representing the Company before shareholders and third parties, formulating the Company principles therefor;
• Approving the Company’s annual budget and business plans;
• Observing the compliance of the Company’s activities to applicable legislation, articles of incorporation and internal regulations;
• Ensuring that the Company books are duly kept;
• Drawing up the Company’s balance sheet and profit and loss statements, preparing the annual report, and making the same
available for examination by shareholders prior to the general meeting;
• Submitting a proposal to the general assembly concerning the distribution of profit;
• Summoning the general assembly for ordinary or extraordinary meeting and satisfying the procedure related to general
meetings;
• Overseeing that the decisions passed by shareholders at general meetings are enforced;
• Setting the rules to be complied with by the Company employees, including the code of ethics;
• Formulating and publicly disclosing the Company’s disclosure policy;
• Setting up the committees that will function under the Board of Directors, electing their members, defining their operating
principles, and ensuring that they operate effectively and productively;
• Taking into consideration the recommendations of the Corporate Governance Committee in relation to the Company’s senior
executives.

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Corporate Governance Principles Compliance Report
23- Operating principles of the Board of Directors
Agendas for Board meetings are determined by the chairman and the members of the Board of Directors. Requests received from
executives are taken into consideration in determining the agenda items.
Article 9 of the articles of incorporation stipulates that the Board of Directors shall hold at least monthly meetings. Board meetings
are convened 12 times a year at a minimum.
In line with Corporate Governance Principles, a secretariat has been set up under the Board of Directors at the Company. The
secretariat is responsible for keeping the minutes of the Board meetings and archiving them. The secretariat also keeps the Board
members informed in a timely and simultaneous manner and delivers the agenda and related information and reports to the Board
members at least one week in advance of each meeting.
It has been decided that difference of opinions that may be voiced at Board meetings and detailed justifications for dissenting
votes must be entered into the record and forwarded to statutory auditors in written form; however, to date there has never been
such an instance. Upon approval of the articles of incorporation at the general meeting, justifications for dissenting votes cast by
independent members by reason of difference of opinions will be publicly disclosed on the corporate website.
It is made sure that the Board members are personally present at Board meetings that will vote on the issues stipulated in article
2.17.4 of Section IV of the CMB's Corporate Governance Principles as requiring the actual attendance of Board members at
meetings.
No Board members, including the chairman, have weighted voting and/or vetoing rights. Each member, including the chairman,
possesses an equal vote.
24- Prohibition on doing business or competing with the Company
The agenda item concerning Zorlu Energy Electricity Generation Board members’ doing business or competing with the Company
is laid down for the approval of shareholders each year at the general meetings.
No board member did any business or competed with the Company during the year.
Zorlu Energy Annual Report 2007 61
If any event occurs relating to the prohibition of doing business and competing with the Company, any conflict of interest that
might arise therefrom will be publicly disclosed within the frame of Corporate Governance Principles.
25- Code of Ethics
The Company’s code of ethics has been spelled out in writing and made known to the employees. Utmost care is given to ensure
compliance with the code of ethics that is formulated for the Board of Directors, the Company and its employees.
26- Number, structure and independence of the committees established by the Board of Directors
Pursuant to article 3 of the CMB Communiqué Serial: X, No: 19, the Board of Directors established the Audit Committee so as to
ensure healthy oversight of financial and operational activities. The Corporate Governance Committee has not been set up as yet.
However, with the election of independent members to the seats on the Board of Directors, it is planned to establish the Corporate
Governance Committee chaired by an independent head in line with the CMB’s Corporate Governance Principles. Within the frame
of this plan, the detailed operating principles of the Committee are formulated in writing.

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The detailed work plans of the Audit Committee and the Corporate Governance Committee are put into writing.
The Audit Committee is composed of two individuals: Melih E. Araz and Olgun Zorlu. Melih E. Araz, who is an independent Board
member, serves as the head of the Audit Committee.
The articles of incorporation stipulate that the Audit Committee must meet at least four times a year (once in each quarter). The
Board secretariat is responsible for recording the decisions made, and keeping the minutes of the meetings held by the
Committee.
The Committee carries out its activities in accord with the detailed operating principles put into writing.
27- Financial benefits provided to the Board of Directors
The attendance fees to be paid to the members of the Board of Directors are determined at the general meeting. In 2007, the
members of the Zorlu Energy Electricity Generation Board of Directors were paid TRY 50,000 in total, which is commensurate with
precedents in the sector. The statutory auditors were paid TRY 2,412 a year each.
There is no performance measurement for the Board members. No rewarding system reflecting the Company’s performance has
been set up.
The Company has extended no loans or credits to any Board member or manager.
Profit distribution policy and proposal
Under a resolution passed at a meeting of the Board of Directors of Zorlu Enerji Elektrik Üretim Afi held at the company
headquarters on 7 May 2007, it has been decided to distribute at least 25% of the company’s net distributable profits to
shareholders in 2007 and the years that follow in accordance with the dividend policy specified by the board as cash payments or
in the form of shares of stock. The amount of dividend to be paid is to be recommended by the Board of Directors at the ordinary
general meeting of shareholders that is held every year on the basis of national and international economic conditions and the
company’s growth plans.
Profit distribution proposal for the 1 January 2007-31 December 2007 fiscal year
Although the financial statements prepared as required by tax laws show a profit, the consolidated financial statements prepared
in accordance with Capital Markets Board communique XI:25 concerning accounting standards in capital markets show a loss.
For this reason, it has been decided pursuant to CMB resolution 7/242 25 February 2005 to recommend to the general assembly
of shareholders that no dividend be paid out as there is no distributable profit.

Zorlu Enerji Elektrik Üretim A.fi.
‹ç Denetim Raporu
Ortakl›¤›n Unvan› : Zorlu Enerji Elektrik Üretim Anonim fiirketi
Merkezi : Organize Sanayi Bölgesi Pembe Cd. No:13 BURSA
Sermayesi : 81.665.350.- YTL
Faaliyet Konusu : Elektronik ve buhar üretimi
Denetçi veya denetçilerin ad›
ve görev süreleri, ortak veya flirketin
personeli olup olmad›klar› : fierif ARI – 1 y›l
Hakan EfiTÜRK – 1 y›l
Ortak ve personel de¤iller
Kat›l›nan Yönetim Kurulu ve
yap›lan denetleme kurulu
toplant›lar› say›s› : 5
Ortakl›k hesaplar›, defter ve
belgeleri üzerinde yap›lan
incelemenin kapsam›, hangi
tarihlerde inceleme yap›ld›¤› ve
var›lan sonuç
hükümlerine göre tutuldu¤u : Her ay bafl›, bir önceki ay geçici bilanço hesaplar› denetlenmifltir. Defterlerin V.U.K
görülmüfltür.
Türk Ticaret Kanunu’nun 353’ncü
maddesinin 1’inci f›kras›n›n 3
numaral› bendi gere¤ince ortakl›k
veznesinde yap›lan say›mlar›n
say›s› ve sonuçlar› : Y›lda de¤iflik tarihlerde dört defa vezne say›m› yap›lm›fl olup, mevcutlar›n kay›tlara
uygun oldu¤u anlafl›lm›flt›r.
Türk Ticaret Kanunu’nun 353.
maddesinin 1. f›kras›n›n 4
numaral› bendi gere¤ince yap›lan
inceleme tarihleri ve sonuçlar› : Ayda bir defa yap›lan incelemede flirkete rehin ve teminat veya vedia olarak teslim
edilen k›ymetli evrak bulunmad›¤› anlafl›ld›.
‹ntikal eden flikayet ve
yolsuzluklar ve bunlar hakk›nda
yap›lan ifllemler : Herhangi bir konuda flikayet ve yolsuzluk müracaat yap›lmam›flt›r.
Zorlu Enerji Elektrik Üretim Anonim fiirketi’nin 01.01.2007-31.12.2007 dönemi hesap ve ifllemlerini Türk Ticaret Kanunu, ortakl›¤›n
esas sözleflmesi ve di¤er mevzuat ile genel kabul görmüfl muhasebe ilke ve standartlar›na göre incelemifl bulunmaktay›z.
Görüflümüze göre içeri¤ini benimsedi¤imiz 31.12.2007 tarihi itibariyle düzenlenmifl bilanço, ortakl›¤›n an›lan tarihteki mali durumunu
01.01.2007-31.12.2007 dönemine ait gelir tablosu, an›lan döneme ait faaliyet sonuçlar›n› gerçe¤e uygun ve do¤ru olarak
yans›tmaktad›r.
Bilanço’nun ve Gelir Tablosu’nun onaylanmas›n› ve Yönetim Kurulu’nun aklanmas›n› arz ederiz.
fierif ARI Hakan EfiTÜRK
Denetçi Denetçi
Zorlu Energy Annual Report 2007 63

64
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Resolution of the Board of Directors
RESOLUTION DATE : 27.04.2008
RESOLUTION NO : 2008/9
PARTICIPANTS : Zeki Zorlu
Elmas Melih Araz
Olgun Zorlu
Selen Zorlu Melik
Murat Sungur Bursa
Aziz Can Tuncay
Burak ‹smail Okay
MEETING AGENDA:
The Board of Directors of ZORLU ENERJ‹ ELEKTR‹K ÜRET‹M ANON‹M fi‹RKET‹ convened at the company’s headquarters under
the chairmanship of Mr. Zeki Zorlu and discussed the subjects on the agenda and adopted the below-mentioned resolutions.
The Board of Directors who convened for the meeting decided unanimously to accept the 2007 Annual Report, which has been
presented to the Board of Directors and is attached hereto, and to make the report available to shareholders.
BOARD OF DIRECTORS
Zeki Zorlu Elmas Melih Araz Olgun Zorlu Selen Zorlu Melik
Chairman Vice Chairman Board Member Board Member
Murat Sungur Bursa Aziz Can Tuncay Burak ‹smail Okay
Board Member Board Member Board Member

Zorlu Enerji Elektrik Üretim A.fi.
Consolidated Financial Statements At 31 December 2007 Together With Auditor’s Report
Zorlu Energy Annual Report 2007 65

66
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Independent Auditor’s Report
To The Shareholders and Board of Directors of
Zorlu Enerji Elektrik Üretim A.fi.
We have audited the accompanying consolidated financial statements of Zorlu Enerji Elektrik Üretim A.fi. (the “Company”) and its
subsidiaries listed under note 1, which comprise the consolidated balance sheet as at 31 December 2007, and the consolidated
statements of income, changes in equity and cash flow for the year then ended and a summary of significant accounting policies
and other explanatory notes.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to
the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
During 2006, there have been changes in the regulations related to investment allowances. According to these changes
investment allowances have been discontinued as from 01 January 2006. However investment allowances unused and carried
forward as of 31 December 2005 and investment allowances on projects approved as of 31 December 2005 on which expenditure
continues to be incurred after 31 December 2005 may be deducted from the profits for the years 2006, 2007 and 2008. However,
the profit remaining after deduction of investment allowances for the said three years will be subject to 30% corporation tax. The
Company has become entitled to investment allowances of YTL 348.034.194 as of 31 December 2006 and the Company has
exercised the option of using investment allowances and pay corporation tax at 30%. The deferred tax asset related to investment
allowances as of 31 December 2007 was calculated as YTL 51.258.430. The realization of this deferred tax asset is dependent
upon generation of sufficient profits until and including 2008.

Zorlu Enerji Elektrik Üretim A.fi.
Independent Auditor’s Report
Opinion
In our opinion, except for the effects, if any, of the matters explained in the preceding paragraph, the consolidated financial
statements present fairly in all material respects, the consolidated financial position of the Company as of 31 December 2007, and
of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards.
Ergin Uluslararas› Denetim ve Yeminli Mali Müflavirlik A.fi.
Member Firm of GRANT THORNTON International
Aykut Halit
Partner
Istanbul, 10 April 2008
Zorlu Energy Annual Report 2007 67

68
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Consolidated Balance Sheets at 31.12.2007 and 2006
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Assets Note 2007 2006
Current assets
Cash and cash equivalents 5 26.773.720 305.099
Trade receivables 6 26.622.514 44.099.957
Inventories 7 33.998.103 26.090.263
Other assets 8 59.595.220 14.353.822
Total current assets 146.989.557 84.849.141
Non-current assets
Investments 9 5.782.621 1.334.102
Property, plant and equipment 10 879.290.107 672.810.009
Intangible assets 11 41.905.045 28.782.240
Other assets 8 108.428 95.455
Deferred tax asset 16 55.701.097 51.765.217
Total non-current assets 982.787.298 754.787.023
Total assets 1.129.776.855 839.636.164
The accompanying notes are an integral part of these consolidated financial statements.

Zorlu Enerji Elektrik Üretim A.fi.
Consolidated Balance Sheets at 31.12.2007 and 2006
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Liabilities and equity Note 2007 2006
Current liabilities
Borrowings 12 248.320.274 157.115.394
Trade payables 13 70.369.621 45.437.084
Taxation on income 16 916.416 2.618.822
Provision for expenses 14 248.711 399.681
Due to related parties 23 285.683.524 71.896.365
Other liabilities 15 5.387.881 3.784.275
Total current liabilities 610.926.427 281.251.621
Non-current liabilities
Borrowings 12 137.297.075 199.299.125
Trade payables 13 668.879 172.102
Provision for expenses 14 7.114.416 4.350.855
Reserve for retirement pay 17 1.366.011 1.033.844
Deferred tax liability 16 56.587.640 51.231.617
Total non-current liabilities 203.034.021 256.087.543
Equity
Share capital 18 192.613.350 192.613.350
Minority interest 47.487.126 20.731.161
Translation reserve (794.760) --
General reserves 76.510.691 88.952.489
Total equity 315.816.407 302.297.000
Commitments and contingencies 19
Total liabilities and equity 1.129.776.855 839.636.164
The accompanying notes are an integral part of these consolidated financial statements.
Zorlu Energy Annual Report 2007 69

70
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Consolidated Income Statements for the Years Ended 31.12.2007 and 2006
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Note 2007 2006
Net sales 469.773.925 391.845.682
Cost of sales (402.405.095) (343.626.103)
Gross profit 67.368.830 48.219.579
Selling expenses (12.686.760) (24.362.698)
General and administrative expenses (47.344.916) (25.244.031)
Other expense, net 21 (19.300.210) (4.648.420)
Operating loss (11.963.056) (6.035.570)
Financing income 22 87.854.964 54.804.468
Financing expense 22 (64.964.909) (79.719.961)
Profit (loss) before taxation 10.926.999 (30.951.063)
Taxation charge
Current (7.838.673) (7.190.144)
Deferred (1.255.064) (882.010)
Taxation on income 16 (9.093.737) (8.072.154)
Net profit (loss) for the year 1.833.262 (39.023.217)
Attributable to:
Equity holders of the Company (10.324.440) (44.917.559)
Minority interest 12.157.702 5.894.342
1.833.262 (39.023.217)
Basic and fully diluted earnings per share 4 0,00 (0,00)
The accompanying notes are an integral part of these consolidated financial statements.

Zorlu Enerji Elektrik Üretim A.fi.
Consolidated Statements of Changes in Equity for the Years Ended 31.12.2007 and 2006
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Share capital General reserves Translation reserve Minority interest Total equity
Balance at 01 January 2006 192.613.350 133.870.048 -- 9.744.666 336.228.064
Cash increase in subsidiaries share capital -- -- -- 5.092.153 5.092.153
Net loss for the year -- (44.917.559) -- 5.894.342 (39.023.217)
Balance at 31 December 2006 192.613.350 88.952.489 -- 20.731.161 302.297.000
Consolidated subsidiaries as from 01 January 2007 -- (2.117.358) (339.088) 39.606 (2.416.840)
Acquisition of subsidiary -- -- -- 1.674.265 1.674.265
Cash increase in subsidiaries share capital -- -- -- 13.300.000 13.300.000
Translation differences -- -- (455.672) (415.608) (871.280)
Net profit for the year -- (10.324.440) -- 12.157.702 1.833.262
Balance at 31 December 2007 192.613.350 76.510.691 (794.760) 47.487.126 315.816.407
The accompanying notes are an integral part of these consolidated financial statements.
Zorlu Energy Annual Report 2007 71

72
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Consolidated Cash Flow Statements for the Years Ended 31.12.2007 and 2006
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Note 2007 2006
Profit (loss) before tax 10.926.999 (30.951.063)
Adjustment to reconcile net income to net cash provided
from operating activities:
Depreciation of property plant and equipment 10 35.547.626 31.810.537
Amortization of intangible assets 11 3.906.906 602.964
Increase in provisions 2.612.591 (763.207)
Provision for retirement pay 332.167 310.453
Profit on sale of property, plant and equipment (27.816) (153.481)
Loss on sale of property, plant and equipment 40.599 313.506
Interest expense 22 38.280.235 18.748.320
Interest income 22 (2.457.233) (2.234.855)
Unearned interest on receivables (154.941) (70.549)
Unearned interest on payables 88.324 (112.486)
Provision for diminution in value of inventories 746.532 343.601
Provision for doubtful receivables 3.009.103 --
Operating profit before changes in working capital 92.851.092 17.843.740
Changes in operating assets and liabilities
Trade receivables 14.668.513 (10.286.536)
Inventories (8.654.372) (11.643.787)
Other assets (46.028.088) 36.027.449
Trade payables 25.340.990 18.347.692
Due to related parties 222.879.426 65.060.139
Other liabilities 1.879.788 8.265.359
Taxes paid (9.541.079) (5.858.778)
Net cash provided by (used in) operating activities 293.396.270 117.755.278
Cash flows from investing activities
Acquisition of subsidiary (25.363.341) --
Cash increase in subsidiaries share capital 13.300.000 5.092.153
Purchases of investments (5.011.692) (801.057)
Purchases of property, plant and equipment (260.297.451) (235.988.178)
Purchases of intangible assets (300.023) (4.181.961)
Disposal of natural gas drilling expenses 18.057.232 6.405.603
Proceeds from sale of property, plant and equipment 179.078 31.368
Net cash used in investing activities (259.436.197) (229.442.072)
Cash flows from financing activities
Proceeds from borrowings 25.102.014 124.670.411
Interest received 2.457.233 2.234.855
Interest paid (34.179.419) (15.661.066)
Net cash provided by (used in) financing activities (6.620.172) 111.244.200
Translation difference (871.280) --
Net increase (decrease) in cash and cash equivalents 27.339.901 (442.594)
Cash and cash equivalents at beginning of year 305.099 747.693
Cash and cash equivalents at end of year 26.773.720 305.099
The accompanying notes are an integral part of these consolidated financial statements.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
1. ORGANISATION AND NATURE OF ACTIVITIES
Zorlu Enerji Elektrik Üretim A.fi. (the “Company” or “Zorlu Enerji”) is a member of the Zorlu Group of Companies which are under
the control of the Zorlu family. The Company and its subsidiaries were established to meet the power requirements of Zorlu Group
establishments and other industrial companies.
The registered office address of the Company is Nilüfer Organize Sanayi Bölgesi, Pembe Caddesi, Bursa/Turkey.
The direct and indirect shareholding of Zorlu Enerji in their capital, are:
Operating Shareholding (%)
Consolidated company Location 2007 2006
Zorlu O/M Enerji Tesisleri ‹flletme ve Bak›m Hizmetleri A.fi. Turkey 24,0 24,0
Zorlu Endüstriyel ve Enerji Tesisleri ‹nflaat Ticaret A.fi. Turkey 20,0 20,0
Zorlu Petrogas, Petrol, Gaz, Petrokimya Ürünleri ‹nflaat Sanayii ve Ticaret A.fi. Turkey 79,1 79,1
Zorlu Elektrik Enerjisi ‹thalat ‹hracat ve Toptan Ticaret A.fi. Turkey 2,4 2,4
Zorlu Do¤algaz ‹thalat ‹hracat ve Toptan Ticaret A.fi. Turkey 2,4 2,4
Trakya Bölgesi Do¤algaz Da¤›t›m A.fi. Turkey 11,0 11,0
Gazdafl Gaziantep Do¤algaz Da¤›t›m A.fi. Turkey 11,0 11,0
Amity Oil International Pty. Ltd. Turkey 79,1 79,1
Rosmiks International B.V. Holland 51,0 51,0
Rosmiks LLC Russia 51,0 --
ICFS International LLC USA 51,0 --
Rotor Elektrik Üretim A.fi. Turkey 88,0 --
Zorlu Hidroelektrik Enerji Üretim A.fi. Turkey 88,0 --
For the purpose of consolidated financial statements Zorlu Enerji and its subsidiaries will be referred to collectively as the “Group”.
Zorlu Elektrik Enerji ‹thalat ‹hracat A.fi., Zorlu Do¤algaz ‹thalat ‹hracat A.fi., Trakya Bölgesi Do¤algaz Da¤›t›m A.fi. and Gazdafl
Gaziantep Do¤algaz Da¤›t›m A.fi. are consolidated because they are under the effective control and management of the Group.
Nature of activities of the Group
Zorlu Energy Annual Report 2007 73
Zorlu Enerji Elektrik Üretim A.fi. (Bursa/Turkey) - Zorlu Energy was established in 1993 for the purpose of generating
electricity and steam mainly for Zorlu Holding Group Companies. Zorlu Enerji Elektrik Üretim A.fi. supplies uninterrupted power to
around some industrial users and mainly DUY system, by its natural gas combined cycle plants in Bursa (90 MW), in Ankara (50,3
MW), in Kayseri (189 MW) and by its cogeneration plants in Lüleburgaz (66 MW), in Kayseri (7MW) and Yalova (16MW).
Zorlu O&M Enerji Tesisleri ‹flletme ve Bak›m Hizmetleri A.fi. (Istanbul/Turkey) - Zorlu O&M Powerplant Operation and
Maintenance Services was established 2000 to provide operational and maintenance services to power plants.
Zorlu Endüstriyel ve Enerji Tesisleri ‹nflaat Ticaret A.fi. - (Istanbul/Turkey) - This company became operational in 2000 for
the purpose of developing, implementing and providing financial support to industrial and energy plant projects.
Zorlu Petrogas, Petrol, Gaz ve Petrokimya Ürünleri ‹nflaat Sanayi ve Ticaret A.fi. (Istanbul/Turkey) - Zorlu Petrogas,
Petroleum, Gas and Petrochemical Products, Construction was established 2000 to engage in natural gas distribution projects,
petroleum and petrochemical production facilities, as well as marketing of petroleum and natural gas.

74
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Zorlu Elektrik Enerji ‹thalat ‹hracat A.fi. (Istanbul/Turkey) - Zorlu Elektrik was established in 2003 for the purpose of
procurement of wholesale electricity from domestic sources, free trade zones and international grid-connected countries for resale;
on wholesale and retail basis.
Zorlu Do¤algaz ‹thalat ‹hracat A.fi. (Istanbul/Turkey) - Zorlu Do¤algaz was established in 2003 for the purpose of wholesale
procurement of compressed natural gas and/or liquefied natural gas to other wholesale companies, free trade zones and countries
abroad; owns license for wholesale and retail sales and direct sales to free consumers .
Trakya Bölgesi Do¤algaz Da¤›t›m A.fi. (Istanbul/Turkey) - This company was established in 2005 for the purpose of city gas
distribution in Edirne-K›rklareli-Trakya, Turkey.
Gazdafl Gaziantep Do¤algaz Da¤›t›m A.fi. (Istanbul/Turkey) - This company was established in 2005 for the purpose city gas
distribution in Gaziantep-Kilis region, Turkey.
Amity Oil International Pty. Ltd. Zorlu Petrogas acquired the 100% shares in Amity Oil in 2005. Amity Oil is engaged in
petroleum and natural gas exploration and production in Turkey.
Rosmiks International B.V. (Holland)
This company was established in 2006 for the purpose of providing financial support to two energy plant projects in Russia and
owns 100% of Rosmiks LLC.
Rosmiks LLC
Rosmiks LLC was established for the purpose of building and operating two energy plants respectively in “Kozukhovo” and
“Tereskhova” regions in Russia with a capacity of 170MW each. Rosmiks LLC started these projects around mid 2007 and plans
to complete them by the end in 4th quarter of 2008 and operate them thereafter.
ICFS International LLC (“ICFS”)
ICFS was established in the USA in 2005 and owns 100% of Rosmiks International BV established in Holland.
Rotor Elektrik Üretim A.fi. (“Rotor”)
Rotor was established for the purpose of building wind power plants and was acquired by Zorlu Energy Group in 2007.
Zorlu Hidroelektrik Enerji Üretim A.fi. (“Hidroelektrik”)
Zorlu Hidroelektrik was established in 2007 for the purpose of building hydroelectric power plants and other power plants based
on renewable energy sources.
2. BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS
The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”)
as developed and published by the International Accounting Standards Board (“IASB”).
The Company, which is quoted on the Istanbul Stock Exchange, maintains its books of account and prepares its statutory financial
statements in accordance with the Turkish Commercial Code, accounting policies prescribed by the Turkish Capital Markets Board
and tax legislation and since 1994 has adopted the Uniform Chart of Accounts issued by the Ministry of Finance (collectively
“Turkish Practices”). Its subsidiaries which are incorporated in Turkey maintain their books of account and prepare their statutory
financial statements in accordance with the Turkish Commercial Code and Tax Legislation and the Uniform Chart of Accounts
issued by the Ministry of Finance. The foreign subsidiaries maintain their books of account and prepare their statutory financial
statements in their local currencies and in accordance with the regulations of the countries in which they operate. The financial
statements of overseas subsidiaries are converted into New Turkish Lira (YTL) by closing rate method. The consolidated financial
statements have been prepared from statutory financial statements of the Company and its subsidiaries and presented in New

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Turkish Lira (YTL) with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS. Such
adjustments mainly comprise deferred taxation, employee termination benefits, fixed assets and borrowing costs, investment
property, receivables, interest expense accruals on bank loans.
Measurement currency and reporting currency
The restatement for the changes in the general purchasing power of YTL as of 31 December 2005 is based on IAS 29 (“Financial
Reporting in Hyperinflationary Economies”). IAS 29 requires that financial statements prepared in the currency of a
hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and the corresponding
figures for previous periods be restated in the same terms. One characteristic (but not limited to) that necessitates the application
of IAS 29 is a cumulative three year inflation rate approaching or exceeding 100%. As of 31 December 2005, the three year
cumulative rate has been 36% (31 December 2004: 70% - 31 December 2003: 181%) based on the Turkish countrywide wholesale
price index published by the State Institute of Statistics.
As of 1 January 2006, it has been decided to discontinue the adjustment of financial statements for inflation after taking into
account that hyperinflation period has come to an end as indicated by existing objective criteria and, that other signs indicating the
continuance of hyperinflation have largely disappeared the financial statement as of 31 December 2006 have therefore, not been
subjected to any adjustment for inflation.
The effects of ending the adjustments for inflation on financial statements are summarized as follows:
The financial statements as of 31 December 2006 have not been subjected to any inflation adjustment whereas the financial
statements for previous periods have been adjusted for inflation on basis of the measuring unit current at the last preceding
balance sheet date namely 31 December 2005.
Together with the ending of the hyperinflationary period the balances adjusted for inflation as of the last preceding balance sheet
date form the opening balances of the assets, liabilities and equity accounts as of 1 January 2006.
Offsetting
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right
to set off the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability
simultaneously.
Comparable financial information and reclassification of prior period financial statements
The balance sheets with the accompanying notes as of 31.12.2007 and 2006 and statement of income, cash flow and changes in
equity with the accompanying notes for the twelve months period ended 31.12.2007 and 2006 are presented as comparatively.
For the compatibility of the current financial statements these financial statements are reclassified if necessary.
Zorlu Energy Annual Report 2007 75
As of 31.12.2006 advances paid to suppliers for the construction of two 170MW energy power plants in Rosmiks LLC, Russia
amounted to YTL 136.526.469 which was accounted for “Construction contracts work in progress” was reclassified to construction
in progress under property, plant and equipment.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed in the preparation of the accompanying financial statements are summarized below:
Basis of consolidation
The consolidated financial statements incorporate the financial statements of Zorlu Enerji and entities controlled by Zorlu Enerji
(listed under note 1). Control is achieved where the Company has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities.

76
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of disposal, as appropriate.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Minority
interests consist of the amount of those interests at the date of the original business combination and the minority’s share of
changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority’s interest in the
subsidiary’s equity are allocated against the interests of the Group except to the extent that the minority has a binding obligation
and is able to make an additional investment to cover the losses.
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the
aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments
issued by the Group in exchange for control of the acquire, plus any costs directly attributable to the business combination. The
acquirer’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are
recognised at their fair values at the acquisition date.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the
business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities
recognised. If, after reassessment, the Group’s interest in the net fair value of the acquirer’s identifiable assets, liabilities and
contingent liabilities exceeds the cost of the business combination, the excess is recognised immediately in profit or loss.
The interest of minority shareholders in the acquire is initially measured at the minority’s proportion of the net fair value of the
assets, liabilities and contingent liabilities recognised.
Foreign currency translations
Transactions are recorded in New Turkish Lira, which is the Company’s functional currency. Transactions in foreign currencies
during the periods have been translated at the exchange rates prevailing at the dates of these transactions. Balance sheet items
denominated in foreign currencies have been translated at the exchange rates prevailing at the balance sheet dates. Exchange
gains or losses arising from settlement and translation of foreign currency items have been included in the financing income or
expense accounts as appropriate.
The foreign exchange rates used by the Group are as follows:
2007 2006
US Dollar 1,1647 1,4056
EUR 1,7102 1,8515
Foreign entities - Foreign consolidated subsidiaries are regarded as foreign entities since they are financially, economically and
organizationally autonomous. Their reporting currencies are the respective local currencies. Financial statements of foreign
consolidated subsidiaries are translated at year-end exchange rates with respect to the balance sheet and at exchange rates at
the dates of the transactions with respect to the income statement. All resulting translation differences between the closing
balances and opening balances due to the difference in inflation and devaluation are included in currency translation adjustment in
equity.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Property, plant and equipment
Property, plant and equipment are stated at cost as restated in the equivalent purchasing power of YTL at 31 December 2005 less
accumulated depreciation and any impairment in value. Depreciation is charged so as to write off the cost or valuation of assets,
other than land and properties under construction, over the estimated useful live of the asset using the straight line basis over the
following years stated below:
Useful life
in years
Land improvements 25-30
Buildings 25-30
Leasehold improvements 5
Machinery and equipments 17-25
Furniture, fixtures and office equipments 5-10
Motor vehicles 5
Zorlu Energy Annual Report 2007 77
The carrying values of property, plant and equipment are reviewed for impairment periodically and when events or changes in
circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values
exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in income.
Intangible assets
Rights and other intangible assets are capitalized and amortized on a straight line basis over their estimated useful lives, not
exceeding a period of 5 years.
Natural gas exploration expenses
Costs directly associated with an exploration well, and exploration and property leasehold acquisition costs are capitalised until the
determination of reserves is evaluated. If it is determined that commercial discovery has not been achieved, these costs are
charged to expense.
Capitalisation is made within property, plant and equipment or intangible assets according to the nature of the expenditure. Once
commercial reserves are found, exploration and evaluation assets are tested for impairment and transferred to development
tangible and intangible assets and depreciation and/or amortisation is charged during the exploration and evaluation phase.
Development tangible and intangible assets
Expenditure on the construction, installation or completion of infrastructure facilities, such as platforms, pipelines and the drilling of
commercially proven development wells, is capitalised within tangible and intangible assets according to nature. When
development is completed on a specific field, it is transferred to production assets. Depreciation and/or amortisation are charged
during the exploration and evaluation phase.
Depreciation/amortisation
Natural gas properties/intangible assets are depreciated/amortised using the unit-of-production method. Unit-of-production rates
are based on proved developed reserves, which are oil, gas and other mineral reserves estimated to be recovered from existing
facilities using current operating methods.

78
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Impairment - exploration and evaluation assets
An impairment loss is recognised for the amount by which the exploration and evaluation assets’ carrying amount exceeds their
recoverable amount. The recoverable amount is the higher of the exploration and evaluation assets’ fair value less costs to sell and
their value in use.
Finance lease
Assets held under finance leases are recognized as assets of the Company at their fair value at the date of acquisition. The
corresponding liability to the Company is included in the balance sheet as a finance lease obligation. Finance costs, which
represent the difference between the total leasing commitments and the fair value of the assets acquired, are charged to the
income statement over the term of the relevant lease so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each accounting period.
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs comprise direct materials and, where applicable, direct
labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition but
excludes borrowing cost. Cost is calculated by using the weighted average method. Net realizable value represents the estimated
selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distribution.
Related parties
Companies and their related parties, investments and affiliates controlled by Zorlu Group are considered and referred to as related
parties.
Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be
reliably measured. Revenue is shown net of value added and sales taxes, discounts and returns.
Borrowing cost
Borrowing cost directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the cost of those assets. All
other borrowing costs are recognized in net profit or loss in the period in which they are incurred.
Commitments and contingencies
Transactions that may give rise to contingencies and commitments are those where the outcome and the performance of which
will be ultimately confirmed only on the occurrence or non occurrence of certain future events, unless the expected performance is
not very likely. Accordingly, contingent losses are recognized in the financial statements if a reasonable estimate of the amount of
the resulting loss can be made. Contingent gains are reflected only if it is virtually certain that the gain will be realized.
Use of estimates
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these
estimates. These estimates are reviewed periodically, and as adjustments become necessary, they are reported in earnings in the
periods in which they become known.
Income taxes
Tax expense (income) is the aggregate amount included in the determination of net profit or loss for the period in respect of
current and deferred tax.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Zorlu Energy Annual Report 2007 79
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are
recognized for all taxable temporary differences.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance
sheet date.
Provisions
Employee benefits - Under Turkish labour law, the Group and its Turkish subsidiaries are required to pay termination benefits to
each employee who has completed one year of service and whose employment is terminated without due cause, or who retires in
accordance with social insurance regulations or is called up for military service or dies.
Other provisions - Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. Where the Group expects a provision to be reimbursed, for
example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is
virtually certain.
Investments
All investments are initially recognized at cost, restated at the equivalent purchasing power of New Turkish lira at 31 December
2005, being the fair value of the consideration given and including acquisition charges associated with the investment.
Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability in its balance sheet when and only when it becomes a party to the
contractual provisions of the instrument. The Group derecognizes a financial asset or a portion of financial asset when and only
when it loses control of the contractual rights that comprise the financial asset or a portion financial asset. The Group
derecognizes a financial liability when and only when a liability is extinguished that is when the obligation specified in the contract
is discharged, cancelled and expires.
Trade receivables
Trade receivables are measured at initial recognition at fair value and are subsequently measured at amortized cost using the
effective interest rate method to set an allowance for unearned interest. Appropriate allowances for estimated irrecoverable
amounts are recognized in profit or loss when there is objective evidence that the asset is impaired. The allowance recognized is
measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted
at the effective interest rate computed at initial recognition.
Trade payables
Trade payables are initially measured at fair value and are subsequently measured at amortized cost using the effective interest
rate method to set an allowance for unearned interest.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges,
including premiums payable on settlement or redemption, are accounted for on an accrual basis and are added to the carrying
amount of the instrument to the extent that they are not settled in the period in which they arise.

80
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Cash and cash equivalents
For the purpose of cash flow statement, cash and cash equivalents comprise cash in hand, deposits with banks and other
financial institutions, other money market placements and funds lent under securities resale agreements with the original maturity
of three months or less.
Earnings per share
Earnings per share (“EPS”) disclosed in the income statements are determined by dividing net income by the weighted average
number of shares that have been outstanding during the related year or period and taking into account bonus issues and right
issues. There is no difference between basic and diluted earnings per share for any class of shares for any of the years.
4. EARNINGS PER SHARE
2007 2006
Net profit attributable to shareholders 1.833.262 (39.023.217)
Weighted average number of ordinary shares in issue 8.166.535.000 8.166.535.000
Basic and diluted earnings per share 0,00 (0,00)
5. CASH AND CASH EQUIVALENTS
Cash in hand 62.026 180.434
Demand deposit at banks 2.538.724 124.665
Time deposit at banks 24.172.970 --
26.773.720 305.099
As of 3.12.2007, the interest rate varied between 3,75% and 4,5% per year for foreign currency and 16,5 - 16,75% per YTL.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
6. TRADE RECEIVABLES
2007 2006
Current accounts
- Third parties 22.629.213 37.072.071
- Related parties, note 23
Notes receivable
5.394.750 7.503.658
- Third parties 2.274.064 371.008
Others 35.318 9.889
30.333.345 44.956.626
Unearned interest on receivables (-) (121.464) (276.405)
Allowance for doubtful receivables (-) (3.589.367) (580.264)
Movement of doubtful receivables is as follows:
26.622.514 44.099.957
Opening balance as of 1 January 580.264 580.264
Charge for the period 3.009.103 --
Ending balance 3.589.367 580.264
7. INVENTORIES
2007 2006
Raw materials 1.926.749 1.428.955
Spare part 27.996.234 23.645.455
Merchandise 671.901 178.208
Advances given 4.493.352 1.181.246
35.088.236 26.433.864
Allowance for diminution in value (-) (1.090.133) (343.601)
Movement of allowance for diminution in value of inventories is as follows:
Zorlu Energy Annual Report 2007 81
33.998.103 26.090.263
Opening balance as of 1 January 343.601 --
Charge for the year 746.532 343.601
Ending balance 1.090.133 343.601

82
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
8. OTHER ASSETS
2007 2006
Current
Prepaid expenses and income accruals 1.717.457 1.567.862
Income accruals 23.287.273 6.462.289
VAT receivable 22.322.548 4.953.976
Work advances 186.733 321.431
Due from personnel 35.765 23.490
Prepaid taxes 1.362.064 13.527
Other 10.683.380 1.011.247
59.595.220 14.353.822
Non-current
Prepaid expenses 108.428 95.455
9. INVESTMENTS
Share % Amount
Entity Country 2007 2006 2007 2006
Equity investments
Solbar Energy Ltd. Israel 27% 27% 764.235 932.621
Dorad Enerji Ltd. Israel 25% -- 36.049 --
800.284 932.621
Unconsolidated subsidiaries
ICFS International LCC Russia -- 51% -- 394.787
LLC Zorlu Enerji Ukraine 100% 100% 13.604 6.694
Machteshim Energy Ltd. Israel 51% -- 1.412.600 --
Ashdod Energy Ltd. Israel 51% -- 3.387.500 --
Zorlu Intergas GMBH Austria 80% -- 51.472 --
Zorlu Enerji Pakistan Ltd. Pakistan 100% -- 117.161 --
As from 01.01.2007 ICFS International LCC was consolidated in the accompanying financial statements.
4.982.337 401.481
5.782.621 1.334.102
As of 31 December 2007, the above noted companies in which the Company has a controlling interest or significant influence are
not consolidated or equity accounted as they are immaterial individually and in aggregate to the results and financial position of
the Group.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
10. PROPERTY, PLANT AND EQUIPMENT
Zorlu Energy Annual Report 2007 83
Consolidated
2006 Disposals Disposals subsidiary Transfers 2007
Cost
Land 5.807.246 147.999 -- -- -- 5.955.245
Land improvements 14.053.936 6.056.846 (35.347) -- 3.884.607 23.960.042
Buildings 23.031.549 196.995 -- 172.977 379.322 23.780.843
Leasehold improvements 45.160 41.367 (37.570) -- -- 48.957
Plant and machinery 528.964.828 334.894 -- -- 429.473 529.729.195
Motor vehicles 193.361 483.492 (15.475) 299.818 -- 961.196
Furniture and fixtures 4.621.229 2.172.028 (123.158) 96.722 288.443 7.055.264
Natural gas drilling cost 9.939.077 -- -- -- 2.250.865 12.189.942
586.656.386 9.433.621 (211.550) 569.517 7.232.710 603.680.684
Construction in progress
- Natural gas drilling expenses 26.864.560 18.590.090 (18.057.232) -- (2.708.814) 24.688.604
- Energy power plants 188.799.040 195.923.969 -- 3.779.938 (764.961) 387.737.986
- Other 10.207.816 32.112.440 -- -- (3.780.366) 38.539.890
812.527.802 256.060.120 (18.268.782) 4.349.455 (21.431) 1.054.647.164
Accumulated depreciation
Land improvements 6.949.877 1.281.089 (937) -- -- 8.230.029
Buildings 2.655.078 773.875 -- -- (4.767) 3.424.186
Leasehold improvements 13.266 9.622 (2.205) -- -- 20.683
Plant and machinery 122.025.721 31.883.753 -- 74.105 -- 153.983.579
Motor vehicles 185.310 98.464 (4.633) 29.852 -- 308.993
Furniture and fixtures 2.508.736 596.353 (11.914) 8.167 3.970 3.105.312
Natural gas drilling cost 5.379.805 904.470 -- -- 6.284.275
139.717.793 35.547.626 (19.689) 112.124 (797) 175.357.057
Net book value 672.810.009 879.290.107

84
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
2005 Additions Disposals Transfers 2006
Cost
Land 5.507.690 299.556 -- -- 5.807.246
Land improvements 13.591.744 540.075 (77.883) -- 14.053.936
Buildings 22.426.636 70.531 -- 534.382 23.031.549
Leasehold improvements 18.633 26.527 -- -- 45.160
Plant and machinery 492.643.757 700.419 -- 35.620.652 528.964.828
Motor vehicles 405.857 -- (212.496) -- 193.361
Furniture and fixtures 3.772.663 692.048 -- 156.518 4.621.229
Natural gas drilling cost 8.857.795 1.081.282 -- -- 9.939.077
547.224.775 3.410.438 (290.379) 36.311.552 586.656.386
Construction in progress
- Natural gas drilling expenses 9.661.149 27.211.261 (6.405.603) (3.602.247) 26.864.560
- Energy power plants 24.789.510 196.133.151 -- (32.123.621) 188.799.040
- Other 478.890 10.314.610 -- (585.684) 10.207.816
582.154.324 237.069.460 (6.695.982) -- 812.527.802
Accumulated depreciation
Land improvements 5.013.054 1.960.967 (24.144) -- 6.949.877
Buildings 2.018.316 636.762 -- -- 2.655.078
Leasehold improvements 5.837 7.429 -- -- 13.266
Plant and machinery 94.353.903 27.671.818 -- -- 122.025.721
Motor vehicles 227.310 32.842 (74.842) -- 185.310
Furniture and fixtures 2.121.748 386.988 -- -- 2.508.736
Natural gas drilling cost 4.266.074 1.113.731 -- -- 5.379.805
108.006.242 31.810.537 (98.986) -- 139.717.793
Net book value 474.148.082 672.810.009
Disposals related to Natural Gas Drilling Expenses represent costs directly associated with exploration wells where sufficient
profitability could not be attained. As a result, as of 31.12.2007 YTL 18.057.232 (2006: YTL 6.405.603) was expensed under other
expenses in the income statement.
The Company’s policy is to trace all material and significant fixed asset additions under construction in progress and transfer to
the related fixed asset accounts when the construction process is completed. Significant portion of the construction-in-progress
balance represented the investment made in;
- natural gas exploration in Trakya region,
- construction of two energy power plants in Russia and
- laying down natural gas pipeline infrastructure in Lüleburgaz, Edirne, Çerkezköy, K›rklareli and Tekirda¤.
As of 31.12.2007, fixed assets were insured for YTL 383.274.723 (31.12.2006: 468.427.896).
The guarantees given to secure bank loans are set out in note 20.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
11. INTANGIBLE ASSETS
Zorlu Energy Annual Report 2007 85
Consolidated
2006 Additions subsidiary Transfer 2007
Cost
Rights 6.454.887 101.704 16.709.054 24.616.996 47.882.641
Goodwill 24.595.565 -- -- (24.595.565) --
Other intangible assets 457.432 198.319 -- -- 655.751
31.507.884 300.023 16.709.054 21.431 48.538.392
Accumulated amortization
Rights 2.539.116 3.137.178 668.362 797 6.345.453
Other intangible assets 186.528 101.366 -- -- 287.894
2.725.644 3.238.544 668.362 797 6.633.347
Net book value 28.782.240 41.905.045
Consolidated
2005 Additions subsidiary Transfer 2006
Cost
Rights 3.380.173 3.074.714 -- -- 6.454.887
Goodwill 24.595.565 -- -- -- 24.595.565
Other intangible assets 431.467 25.965 -- -- 457.432
28.407.205 3.100.679 -- -- 31.507.884
Accumulated amortization
Rights 2.007.092 532.024 -- -- 2.539.116
Other intangible assets 115.588 70.940 -- -- 186.528
2.122.680 602.964 -- -- 2.725.644
Net book value 26.284.525 28.782.240

86
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
12. BORROWINGS
2007 2006
Current
New Turkish Lira bank loans 328.487 29
Foreign currency bank loans 247.957.071 157.082.647
Finance lease liabilities, net 34.716 32.718
248.320.274 157.115.394
Non-current
Foreign currency bank loans 137.261.499 199.223.024
Finance lease liabilities, net 35.576 76.101
137.297.075 199.299.125
Foreign currency bank loans effective interest rates vary between 3,6% and 8,9% (2006: 3,56% and 8,87%).
Current foreign currency bank loans
As of 22 August 2007, the Group obtained a loan from Standard Bank (Holland) amounting USD 160 million with a maturity of 31
March 2008 with an interest rate of 7,3% per year . Additionally the Group obtained a loan from Credit Europe Bank CJSC
amounting to USD 22 million with an interest rate of 7,25% per year. Both loans were obtained for the bridge financing of the
energy power plants construction in Russia.
As of 31 December 2006, the Group obtained a loan from Fortis Bank N.V. (Holland) amounting USD 80 million also for financing
its energy power plants construction in Russia. This loan has a maturity of 22 August 2007 and bore an interest of Libor +1,8% per
year was duly repaid during 2007.
Summary maturity schedule of bank borrowings is given below:
2007 YTL
USD EUR Equivalent
2008 206.583.009 4.297.650 247.957.072
2009 21.471.708 3.986.199 31.825.296
2010 21.471.708 3.986.199 31.825.296
2011 14.831.708 3.800.445 23.774.011
2012 8.191.708 3.241.783 15.084.980
2013 5.002.090 1.109.059 7.722.647
2014 5.002.090 1.109.059 7.722.647
2015 5.002.090 1.109.059 7.722.647
2016 5.002.090 1.109.059 7.722.647
2017 2.501.050 554.529 3.861.327
295.059.251 24.303.041 385.218.570

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
2006 YTL
USD EUR Equivalent
2007 105.871.810 4.466.233 157.082.647
2008 21.471.708 4.126.494 37.820.836
2009 21.471.708 3.986.199 37.561.080
2010 21.471.708 3.986.199 37.561.080
2011 14.831.708 3.800.445 27.883.979
2012 8.191.708 3.241.783 17.516.426
2013 5.002.091 1.109.058 9.084.360
2014 5.002.091 1.109.058 9.084.360
2015 5.002.091 1.109.058 9.084.360
2016 5.002.091 1.109.058 9.084.360
2017 2.501.047 554.529 4.542.183
The payment schedules of finance lease liabilities are given below:
Zorlu Energy Annual Report 2007 87
215.819.761 28.598.114 356.305.671
2007 2006
Finance lease instalments:
Due in one year 41.936 45.638
Due between one to five years 38.274 86.839
Future finance charges on finance leases (9.918) (23.658)
70.292 108.819
The present value of finance lease liabilities:
Due in one year 34.716 32.718
Due between one to five years 35.576 76.101
70.292 108.819

88
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
13. TRADE PAYABLES
2007 2006
Current
Current accounts
- Third parties 69.585.933 45.794.823
- Related parties, note 23 1.096.591 43.566
Other 894 816
70.683.418 45.839.205
Unearned interest on payables (-) (313.797) (402.121)
70.369.621 45.437.084
Non-current
Deposits and guarantees received 668.879 172.102
14. PROVISION FOR EXPENSES
Current
Provision for legal claims 248.711 399.681
Non-current
Provision for share of TRT 7.114.416 4.350.855
An accrual for the share of Turkish Radio Television (“TRT”) charged to the Company in regards the license agreement signed with
EPDK (Energy Market Regulatory Board) on 21.03.2003. According to the representation furnished by the Company’s
management, the Company filed a lawsuit against EPDK to object to such amounts claimed. The related court proceeding is in
progress and the outcome of the court decision is being awaited. In the accompanying financial statements full provision was set
aside for this claim.
Movement of provision for expenses is as follows:
Legal Provision for share
claims of TRT
Opening balance 399.681 4.350.855
Additions 33.147 2.807.653
Disposals (184.117) (44.092)
Ending balance 248.711 7.114.416

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
15. OTHER LIABILITIES
Zorlu Energy Annual Report 2007 89
2007 2006
Income tax and social security premiums payable 2.016.766 3.324.151
Advances received 150.152 206.238
Due to personnel 460.530 227.432
Other 2.760.433 26.454
5.387.881 3.784.275
16. TAXATION ON INCOME
In Turkey, the corporation tax rate on the profits for the calendar year 2007 is 20% (2006: 20%). Taxable profits are calculated by
modifying accounting income for certain exclusions and allowances for tax purposes from the profit disclosed in the statutory
income. No other taxes are paid unless profits are distributed.
In Turkey no taxes are withheld from undistributed profits, profits added to share capital (bonus shares) and dividends paid to
other resident companies. Other than those, profits distributed in dividend to individuals and non-resident companies are subject
to withholding at the rate of 15%.
In Turkey, the tax legislation does not permit a parent company and its affiliates to file a consolidated tax return. Therefore,
provision for taxation charge, as reflected in the accompanying consolidated financial information, has been calculated on a
separate-entity basis.
The exemption period granted on profits from the sale of investment shares and immovable property by Corporation Tax Law
transitory articles No. 28 and 29 expired on 31 December 2004. However this exemption was re-enacted by Law No. 5281 on
permanent basis in effect from 1 January 2005. Accordingly, 75% of profits from the sale of investments and immovable’s held for
a minimum of two years will be tax exempt provided the sale proceeds are collected within two years and 75% of the profit is
added to share capital or is kept in a special reserve account for minimum five years.
Companies were allowed to deduct 40% of the value of fixed assets (exceeding YTL 6.000) purchased after 24 April 2003
(investment allowances) from their taxable profits as investment incentive. Such investment deduction is also not subject to income
tax withholding. The investment deductions not used in any year because of insufficient profits may be carried to future periods.
Investment allowances related to fixed assets purchased or to be purchased under Investment Incentive Certificates granted or
applied for before 24 April 2003, may be based on up to 100% of the investment value in fixed assets, but these are subject to tax
at 19.8%. Investment allowances have been cancelled as from 1 January 2006 but investment allowances earned prior to this date
may be used up to 31 December 2008; any balance unused after this date may not be carried forward; if this option is exercised
the balance of taxable profit after deduction of investment allowances is to be taxed at 30%.
Tax losses that are reported in the Corporation Tax in Turkey return may be carried forward and deducted from the corporation tax
base for a maximum of five consecutive years.
The Turkish Tax Procedural Law does not include a procedure for formally agreeing tax assessments. Tax returns must be filed
within three and half months of the year-end and may be subject to investigation, together with their underlying accounting
records, by the tax authorities at any stage during the following five years.

90
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
Taxes included in the balance sheet are shown below:
2007 2006
Corporation and income taxes 7.838.673 7.190.144
Prepaid taxes (-) (6.922.257) (4.571.322)
916.416 2.618.822
Deferred taxation
The Group recognizes deferred tax assets and liabilities based upon temporary differences between its financial statements as
reported for IAS purposes and its statutory tax financial statements. These differences usually result in the recognition of revenue
and expenses in different reporting periods for IAS and tax purposes.
The composition of cumulative temporary differences and the related deferred tax assets/liabilities in respect of items for which
deferred tax has been provided at the balance sheet dates using the expected future tax rates were as follows:
Cumulative
temporary difference Deferred tax
2007 2006 2007 2006
Deferred tax asset
Retirement pay provision 1.366.011 1.033.844 359.630 268.353
Unearned interest on receivables 121.464 276.405 36.439 74.577
Accrued expenses 10.188.660 4.516.342 2.862.444 1.333.968
Investment incentives 348.034.196 343.492.425 51.258.430 49.911.573
Doubt debt provision expenses 2.866.390 -- 859.917 --
Other 1.611.535 836.614 324.237 176.746
55.701.097 51.765.217
Deferred tax liability
Temporary differences arising
from restating non-monetary assets 187.202.032 171.600.077 56.493.499 51.114.515
Unearned interest on payables 313.797 402.131 94.141 117.102
The movement of deferred tax liability is given below:
56.587.640 51.231.617
886.543 (533.600)
2007 2006
Opening balance (533.600) (1.415.610)
Consolidated subsidiary as from 01 January 2007 165.079 --
Deferred tax charge 1.255.064 882.010
Ending balance 886.543 (533.600)

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
17. RESERVE FOR RETIREMENT PAY
In accordance with existing social legislation in Turkey, the Company is required to make lump-sum termination indemnities to
each eligible employee who has completed one year of service with the Company, and whose employment is terminated due to
retirement or for reasons other than resignation or misconduct.
The amount of indemnity is the equivalent of one month’s salary for each year of service subject to a ceiling which is YTL 2.030,19
as of 31 December 2007 (2006: YTL 1.857,4) on historical cost basis).
The Company has no other obligation for employee termination other than the retirement pay above.
In the accompanying consolidated financial statements, the Company reflected a liability for termination benefits based upon
factors derived using their experience of personnel terminating their services and being eligible to receive retirement pay and
discounted to present value at the balance sheet date by using average market yield, expected inflation rates and an appropriate
discount rate.
The Group has no other obligation for employee termination other than the retirement pay above.
Movement of reserve for retirement pay is given below:
Zorlu Energy Annual Report 2007 91
Opening balance 1.033.844 723.391
Additions 571.583 380.835
Disposals (239.416) (70.382)
Ending balance 1.366.011 1.033.844
Personnel cost:
Gross salaries, wages and employers' share of social insurance 18.334.374 11.336.339
Key personnel salaries and other short term benefits 1.554.529 690.843
Number of personnel at year end: 537 437
18. SHARE CAPITAL
The authorized share capital of the Company comprised 190.000.000 shares of par value Ykr 1 each at 31.12.2007 and the issued
and paid up share capital of the Company comprised 81.665.350 shares of par value Ykr 1 each at 31.12.2007 and 2006.
As of 31.12.2007 and 2006 the shareholders of the Company and their percentage shareholdings were as follows:
Shareholding % Shareholding amount
2007 2006 2007 2006
Zorlu Holding A.fi. 43% 43% 35.288.433 35.288.433
Korteks Mensucat Sanayi ve Ticaret A.fi. 18% 18% 14.330.198 14.330.198
Shares held by public 29% 29% 24.016.227 24.016.227
Other shareholders 10% 10% 8.030.492 8.030.492
Share capital 100% 100% 81.665.350 81.665.350
Inflation adjustment of share capital 110.948.000 110.948.000
192.613.350 192.613.350

92
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
19. COMMITMENTS AND CONTINGENCIES
Contingent assets
2007 2006
Obtained from customers and supplier
Letters of guarantee 95.081.756 71.549.713
Checks and notes 6.251.627 25.967.117
Contingent liabilities
a. Letters of guarantee, checks and notes received
Energy Market Regulatory Authority 23.535.000 8.460.600
Other 13.345.102 9.983.073
b. As of 31.12.2006, the Group mortgaged its property, plant and equipment to the extent of USD 60.000.000. Additionally Zorlu
Holding A.fi. and Korteks Mensucat Sanayi ve Ticaret A.fi. were guarantors for the loans obtained for long term investments by the
Group.
c. Courts cases started by the Group and pending as of 31.12.2007 amounted to YTL 1.865.894 and as of the same date court
cases started and pending against the Group amounted YTL 404.062.
d. The Company and Zorlu Holding A.fi. were guarantors for the bridge loan signed between Fortis Bank N.V./Fortis Banque S.A.
and Standard Bank PLC amounting USD 160 million.
20. SEGMENT INFORMATION
The Group is currently organised into two major production divisions. The basis on which the group reports its primary and
secondary segment information is as follows:
Electricity, steam production and maintenance services (Electricity segment):
Production and sales by Zorlu Enerji - Turkey
Production and sales by Rosmiks LLC (under construction)- Russia
Production and sales by Rotor (under construction) - Turkey
Production and sales by Zorlu Hidroelektrik (under construction) - Turkey
Sales by Zorlu Elektrik - Turkey
Maintenance services by Zorlu O/M - Turkey
Development and financial services to energy segment by Zorlu Endüstriyel - Turkey
Financial services to energy segment by ICFS and Rosmiks International - USA and Holland
Natural gas extraction and distribution services (Natural gas segment):
Production and sales by Amity Oil - Turkey
Production and sales by Zorlu Petrogas - Turkey
Sales by Trakya Do¤algaz - Turkey
Sales by Gazdafl - Turkey
Sales by Zorlu Do¤algaz - Turkey

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
A. Business segments 2007 2006
Net sales:
Electricity segment 363.955.576 296.535.423
Natural gas segment 105.818.349 95.310.259
469.773.925 391.845.682
Segment assets:
Electricity segment 1.029.687.083 758.362.247
Natural gas segment 100.089.772 81.273.917
1.129.776.855 839.636.164
Capital expenditure on property, plant and equipment
Electricity segment 196.115.473 196.770.998
Natural gas segment 59.944.647 40.298.462
256.060.120 237.069.460
Depreciation expense
Electricity segment 32.989.092 28.965.331
Natural gas segment 2.558.534 2.845.206
35.547.626 31.810.537
B. Geographical segments 2007 2006
Segment assets
Turkey 952.296.394 839.636.164
Asia 176.840.583 --
Rest of the world 639.878 --
1.129.776.855 839.636.164
Capital expenditure on property, plant and equipment
Turkey 100.703.723 237.069.460
Asia (construction in progress) 155.356.397 --
More than 99% (2006: more than 99%) of sales are generated from sales in Turkey.
Zorlu Energy Annual Report 2007 93
256.060.120 237.069.460

94
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
21. OTHER INCOME (EXPENSE), net
2007 2006
Profit on sale of property, plant and equipment 27.816 153.481
Disposal of unnecessary provision for TRT (note 14) -- 1.109.477
Income from insurance claims 1.976.317 342.334
Other 1.817.854 612.334
Other income 3.821.987 2.217.626
Loss on sale of property, plant and equipment (40.599) (313.506)
Contribution to TRT (note 14) (2.807.653) --
Drilling expenses (18.057.232) (6.405.603)
Other (2.216.713) (146.937)
Other expense (23.122.197) (6.866.046)
22. FINANCING INCOME (EXPENSE), net
(19.300.210) (4.648.420)
Foreign exchange gain 84.807.529 51.820.538
Interest income 2.457.233 2.234.855
Unearned interest on payables 590.202 749.075
Financing income 87.854.964 54.804.468
Foreign exchange loss (24.504.496) (59.699.820)
Interest expense (38.280.235) (18.748.320)
Bank commission expenses (133.346) (26.772)
Unearned interest on receivables (523.585) (566.040)
Other financing expenses (1.523.247) (679.009)
Financing expense (64.964.909) (79.719.961)
22.890.055 (24.915.493)
23. RELATED PARTY DISCLOSURE
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the
other party in making the financial and operating decisions. For the purpose of these financial statements shareholders are
referred to as related parties. Related parties also include individuals that are principle owners, management and members of the
Group's Board of Directors and their families. In the course of conducting its business, the Group conducted various business
transactions with related parties on commercial terms.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
a) As of 31.12.2007 and 2006, the most significant balances with related parties are as follows:
Trade Trade Due from Due to
receivables payables related parties related parties
2007
Zorlu Holding A.fi. -- 625.493 -- 285.475.534
Zorluteks Tekstil Ticaret ve Sanayi A.fi. 1.394.733 -- -- --
Korteks Mensucat Sanayi ve Ticaret A.fi. 3.403.035 -- -- --
Other related parties 596.982 471.098 -- 207.990
5.394.750 1.096.591 -- 285.683.524
2006
Zorlu Holding A.fi. -- -- -- 68.488.033
Zorlu Linen Dokuma Emprime Konfeksiyon A.fi. 1.983.311 -- -- 3.408.332
Korteks Mensucat Sanayi ve Ticaret A.fi. 5.438.361 -- -- --
Other related parties 81.986 43.566 -- --
b) Transactions carried out with related parties are as follows:
Zorlu Energy Annual Report 2007 95
7.503.658 43.566 -- 71.896.365
Operating Financing Financing
Sales expenses income expense
2007
Zorlu Holding A.fi. -- 4.654.551 30.669.292 14.728.939
Korteks Mensucat Sanayi ve Ticaret A.fi. 41.001.804 386.984 -- --
Zorluteks Tekstil Ticaret ve Sanayi A.fi. 21.767.669 4.183 29.032 --
Other related parties 400.263 251.148 54.690 273.135
63.169.736 5.296.866 30.753.014 15.002.074
Operating Financing Financing
Sales expenses income expense
2006
Zorlu Holding A.fi. -- 4.579.989 7.337.374 4.024.055
Korteks Mensucat Sanayi ve Ticaret A.fi. 38.190.584 109.607 2.115.267 684.886
Zorlu Linen Dokuma Emprime Konfeksiyon A.fi. 17.671.637 906 31.666 --
Other related parties 792.493 -- -- --
56.654.714 4.690.502 9.484.307 4.708.941

96
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
24. FINANCIAL INSTRUMENTS
Financial risk management objectives and policies
The Group’s principal financial instruments comprise bank loans, overdrafts, cash and short-term deposits. The main purpose of
these financial instruments is to raise funds for the Group’s operations. The Group has various other financial instruments such as
trade debtors and trade creditors, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are liquidity risk, foreign currency risk and credit risk. The
management reviews and agrees policies for managing each of these risks and they are summarized below.
Interest rates risk
The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s long-term debt obligations. The
Group’s policy is to manage its interest cost using a mix of fixed and variable rate debt.
Liquidity risk
The Group raises funds by liquidating its short term financial instruments, e.g. by collecting receivables and disposing of trading
investments. The Group’s proceeds from these instruments generally approximate their fair values.
Credit risk
The Group trades primarily with recognized, creditworthy third parties. It is the Group policy that all customers who wish to trade
on credit terms are subject to credit screening procedures. In addition, receivable balances are monitored on an ongoing basis
with the result that the Group’s exposure to bad debts is not significant.
With respect to credit risk arising from the other financial assets of the Group, comprising cash and cash equivalents, the Group’s
exposure to credit risk arises from default of the other party, with a maximum exposure equal to the carrying amount of these
instruments. There are no significant concentrations of credit risk within the Group.
Foreign currency risk
The Group’s operations are conducted locally. During the course of its business, the Group is exposed to transactional and
contractual foreign exchange risks resulting from currency exposures with respect to USD and EURO. The most significant foreign
currency risk exposure arises from the foreign currency borrowings that were obtained to finance the investments undertaken. The
Group tries to manage such risk by strictly monitoring the domestic and international money markets and taking precautionary
position in the event of high currency fluctuations.

Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
YTL
USD EUR RUBLE ('000) GBP equivalent
2007
Cash and cash equivalents 14.904.377 2.492.856 44.178 145 23.732.822
Trade receivables 1.065.251 84.137 -- -- 1.384.589
Other receivables 80.000 10.065 17.604 -- 951.209
Advances given 50.583.928 75.533.717 -- -- 188.092.864
Total foreign currency assets 66.633.556 78.120.775 61.782 145 214.161.484
Current borrowings 206.583.008 4.297.650 -- -- 247.957.071
Non-current borrowings 88.476.241 20.005.392 -- -- 137.261.499
Current finance lease liabilities -- 20.299 -- -- 34.715
Non-current finance lease liabilities -- 20.802 -- -- 35.576
Trade payables 3.168.117 403.226 495.135 26.146 28.089.458
Due to related parties 245.106.494 -- -- -- 285.475.534
Other liabilities 96.000 -- -- -- 111.811
Total foreign currency liabilities 543.429.860 24.747.369 495.135 26.146 698.965.664
Net foreign currency position (476.796.304) 53.373.406 (433.353) (26.001) (484.804.180)
2006
Cash and cash equivalents 16.031 70.883 -- 1 153.776
Trade receivables 955.004 45.484 -- -- 1.426.567
Due from related parties 4.094.608 -- -- -- 5.755.381
Other receivables 686.550 5.363 -- -- 974.944
Advances given 350.000 -- -- -- 491.960
Construction contracts work in progress 81.810.000 11.630.749 -- -- 136.526.469
Total foreign currency assets 87.912.193 11.752.479 -- 1 145.329.097
Current borrowings 105.871.810 4.466.233 -- -- 157.082.647
Non-current borrowings 109.947.951 24.131.884 -- -- 199.223.024
Current finance lease liabilities -- 17.669 -- -- 32.716
Non-current finance lease liabilities -- 41.102 -- -- 76.101
Trade payables 5.206.652 39.655 -- 49.935 7.529.557
Due to related parties 11.575.191 -- -- -- 16.270.088
Other liabilities -- 2.554 -- -- 4.729
Total foreign currency liabilities 232.601.604 28.699.097 -- 49.935 380.218.862
Net foreign currency position (144.689.411) (16.946.618) -- (49.934) (234.889.765)
25. POST BALANCE SHEET EVENTS
Zorlu Energy Annual Report 2007 97
a) A “Contract for Purchase/Sale of Carbon Emissions” was signed on 22 January 2008 between the Company and EcoSecurities
Group PLC (Ireland) whereby the carbon emissions generated by the wind field power plant to be built in Osmaniye Region with
capacity of 135MW under the licence owned by the subsidiary “Rotor” will be purchased by Eco Securities Group PLC until end of
year 2012.

98
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Notes to Consolidated Financial Statements for the Year Ended 31 December 2007
(All amounts in New Turkish Lira ("YTL") unless indicated otherwise.)
b) The Company’s subsidiary Rotor has applied to obtain a license from the Energy Market Regulatory Board (“EMRA”) for a
licence to set up and operate a 50 MW and a 60 MW wind power energy plant respectively in two regions of Osmaniye for 25
years. With its letter dated 24 January 2008 EMRA required Rotor to increase its share capital from YTL 34,5 million to YTL 65,4
million in order to grant the requested licence. The notification that above mentioned increase in the share capital occurred was
published in Trade Registry Gazette dated 03 April 2008.
c) The Company’s subsidiary Rotor has applied to and obtained an investment incentive certificate dated 23 January 2008,
numbered 88998 from Turkish Treasury related to the construction of the 135 MW electricity production plant operated by wind
power.
d) With the agreement dated 21 February 2008 the Company has authorised Standard Bank PLC to organize a 5 year USD 500
million syndication loan for financing of Tereshkovo ve Kojuhovo energy power plant projects in Russia.
e) The General Directorate of Petroleum Affairs (GDPA) has granted licences to the subsidiary Zorlu Petrogas for a period of four
years (2008-2012) or petroleum exploration in region numbered XVII in ‹zmir and region numbered XVIII in Mu¤la.
f) A licence for petroleum exploration by the Company’s subsidiary Amity Oil in the region numbered XIV in Adana has been
granted by GDPA for four years (2008-2012).
g) The Company’s subsidiary Ashdod Energy Limited signed a contract with Bank Leumi (Israel) on 25 March 2008 for financing
its 50 MW electricity power plant construction amounting USD 60 million in Ashdad, Israel with repayment of the loan depending
upon the completion date of the construction.
h) On 05 March 2008 the Group has won the tender for the operating license of Tercan, Kuzgun, Mercan, ‹kizdere, Ç›ld›r, Beyköy
and Ataköy Hydroelectric power plants and the thermal power plant in Denizli for a period of 30 years and for acquisition of the
ownership of natural gas power plant located in Van all owned by Ankara Do¤al Elektrik Üretim ve Ticaret A.fi. for USD 510 million.
The tender was organised by the Turkish Privatisation Administration.
With this bidding the Group acquired the ownership of the natural gas power plant located in Van, obtained a 30 year license to
operate the hydroelectric power plants located in Tokat, Eskiflehir, Kars, Rize, Erzurum, Erzincan and Tunceli and the thermal
power plant located in Denizli.
The final takeover of above plants awaits the decision of the Privatisation Administration and of the competition board. Details of
the plants are as follows :
Region Type Power
Edremit-Van (Engil Natural gas power plant) Natural gas 15,0 MW
Sarayköy (Denizli Thermal power plant) Thermal 15,0 MW
Almus-Tokat (Ataköy Hydroelectric power plant) Hydroelectric 5,5 MW
Sar›cakaya-Eskiflehir (Beyköy Hydroelectric power plant) Hydroelectric 16,8 MW
Arpaçay-Kars (Ç›ld›r Hydroelectric power plant) Hydroelectric 15,4 MW
‹kizdere-Rize (‹kizdere Hydroelectric power plant) Hydroelectric 18,6 MW
Il›ca-Erzurum (Kuzgun Hydroelectric power plant) Hydroelectric 20,9 MW
Ovac›k-Tunceli (Mercan Hydroelectric power plant) Hydroelectric 19,2 MW
Tercan-Erzincan (Tercan Hydroelectric power plant) Hydroelectric 15,0 MW

Zorlu Enerji Elektrik Üretim A.fi.
Investor Information
Ordinary General Meeting
In line with a resolution passed at a meeting of the Board of Directors of Zorlu Enerji Elektrik Üretim A.fi., the Company’s ordinary
general meeting for 2007 will be held on 22 May 2008 at 13:30 am at the address of Bursa Organize Sanayi Bölgesi Pembe Cad.
No: 13 - Bursa.
Independent Auditor
Engin Ba¤›ms›z Denetim ve Serbest Muhasebecilik Mali Müflavirlik A.fi.
Member of Grant Thornton International
Y›ld›z Posta Cad.
Dedeman ‹flhan› No: 48, Kat: 5
34349 Gayrettepe-‹stanbul
Financial Information and Company News
Zorlu Enerji Elektrik Üretim A.fi. annual reports, financial statements, auditor’s reports, explanations on special events and other
information about the Company may be obtained from the Company’s website at http://zorluenerji.com.tr/ as well as from the Zorlu
Group Investor Relations Department by email or telephone.
Investor Relations
Figen Çevik
Corporate Finance and Investor Relations Director
Zorlu Plaza 34310 Avc›lar ‹stanbul Turkey
Phone: (+90 212) 286 03 20
Email: yatirimci@zoren.com.tr
Zorlu Energy Annual Report 2007 99
Share Information
Zorlu Enerji Elektrik Üretim A.fi.’s shares have been trading on the ‹stanbul Stock Exchange National Market under the symbol
ZOREN since 2000.
As of 31 December 2007, Zorlu Enerji Elektrik Üretim A.fi.’s market value was on the order of USD 347 million. The trading volume
of the Company’s shares on ISE was worth about USD 3 million in 2007.

100
Zorlu Energy Annual Report 2007
Zorlu Enerji Elektrik Üretim A.fi.
Directory
Bursa (Head Office) : Organize Sanayi Bölgesi, Pembe Cadde, No: 13 16159 Bursa, Turkey
Tel: +90 224 242 5616
Fax: +90 224 242 5611
‹stanbul : Zorlu Plaza 34310 Avc›lar - ‹stanbul, Turkey
Tel: +90 212 456 2300
Fax: +90 212 422 0099
K›rklareli : Büyükkar›flt›ran Kasabas›, Teyyare Meydan› Mevkii 39760 Lüleburgaz - K›rklareli, Turkey
Tel: +90 288 436 2478
Fax:+90 288 436 2487
Ankara : ASO 1.Organize Sanayi Bölgesi, Büyük Selçuklu Caddesi No: 1 06935 Sincan - Ankara, Turkey
Tel: +90 312 267 1929
Fax: +90 312 267 1939
Kayseri : Organize Sanayi Bölgesi, 6. Cadde, No: 21 38070 Melikgazi - Kayseri, Turkey
Tel: +90 352 321 2420
Fax: +90 352 321 2918
Yalova : ‹pek Ka¤›t Fabrikas›, Zorlu Enerji Tesisleri, Tokmakköyü 77700 Alt›nova - Yalova, Turkey
Tel: +90 226 462 8900
Fax: +90 226 462 8899

www.zorluenerji.com.tr