Turkcell Iletisim Hizmetleri AS Annual Report 2020

FY2020 Annual Report · Turkcell Iletisim Hizmetleri AS
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TURKCELL 
TURKCELL 
INTEGRATED A         UAL REPORT 2020

2

Table of Contents

6About Turkcell

Our vision and mission

Turkcell Group: 
Developments in 2020

Chairman’s message

Board of Directors

Message from the CEO

Executive Officers

Top Management of 
subsidiaries

About the report

20

22

26

32

38

44

50

56

58Value creating Turkcell

Value creating Turkcell: 
Technology for life, hope 
for the future

Sustainability strategy

Our value creation process 
and business model

Strategic focus areas and 
business operations 

Interactions with our 
stakeholders

Measuring the value created

60

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76

78Strong corporate governance

Management Team support 
for value-creation process

Trends and their impacts

Effective risk and crisis 
management

Strategic initiatives and 
opportunities

126Human capital

84

86

98

102

Human capital 
management

Our decent business 
practices

Our productive Turkcell 
family

Making a difference in 
employment

148Manufactured capital

Strong network

Strong fiber infrastructure

Strong spectrum

International sale and 
wholesale

130

131

132

144

152

156

157

158

159

106Financial capital

Revenues from operations 

Business model hedging

Efficient capital allocation

Diversified financing

Strong and transparent 
financial management

Transparent investor  
communication - Investor 
Relations

Digital finance  
transformation

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123

Techfin’s shining stars: 
Paycell and Financell

123

Data centers

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TURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table of Contents

160Intellectual capital

Innovation and 
entrepreneurship

164

Digital services and solutions

167

Digital business services 
(DBS)

Brand and responsibility

173

177 178Our social values 

and relations

Turkcell social values and 
relations management

Our brand

Strong sales channels and 
our services

Our tariffs and packages

Social investment projects

Contribution to exchanging 
knowledge and experience 
across all stakeholders

Our public affairs

Value oriented, responsible 
supply chain management

182

185

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189

194

204 

205

207

210Natural capital

Climate crisis management

Energy management

Renewable energy

215

219

220

222Appendices

Appendix-1 Communication 
channels table

224

Appendix-2 Cooperated 
national, international 
and non-governmental 
organizations 

Appendix-3 Board of 
Directors memberships

Appendix-4 Turkcell 2020 
awards

Appendix-5 GRI content 
index table

225

226 

226

228

Appendix-6 UNGC progress 
table

238

246Group companies and other 

information on corporate 
governance

Our subsidiaries

Subsequent events after the 
reporting period

2020 financial year 
Corporate Governance 
Principles Compliance 
Report

Other issues regarding 
corporate governance

Conclusion of the subsidiary 
report

248

254

256 

270

272

274Sectoral and 

financial information

Turkcell Group 2020 financial 
& operational review

276

Forward looking statement 

281

Appendix-7 Sustainability 
Principles Compliance 
Framework table

240

Developments in our 
companies and sector

Independent auditor’s report 
and consolidated financial 
statements

Our offices

Glossary

283 

288

401

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TURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
6

About Turkcell

About 
Turkcell

20

Our vision and mission

22

26

32

38

Turkcell Group: Developments in 2020

Chairman’s message

Board of Directors

Message from the CEO 

44

Executive Officers 

50

Top Management of Subsidiaries

56

About the report

TURKCELL INTEGRATED ANNUAL REPORT 2020

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8

About Turkcell

Turkcell has conducted 
its operations in the 
communications 
and technology 
services field as 
a pioneer of the 
telecommunications 
sector in Turkey since 
1994. Over the past 
27 years, Turkcell has 
played a key role 
in the development 
of Turkey’s 
telecommunications 
sector, first as a 
mobile communication 
company, then 
as an integrated 
telecommunications 
operator and 
eventually as a digital 
operator. 

Turkcell Group companies serve their 

the  total  spectrum  in  Turkey  availa-

customers  with  high-quality  voice, 

ble  for  mobile  operators’  use.  Turk-

messaging,  data,  and  IPTV  services 

on mobile and fixed networks. More-

over, Turkcell offers its customers val-

cell  offers  fiber  internet  speed  of  up 
to  10  Gbps  with  its  FTTH  services. 
Furthermore,  it  is  the  pioneer  of  5G 

ue-added  and  innovative  services  in 

research  and  development  stud-

accordance  with  its  strategic  focus 

ies  in  Turkey,  conducting  numerous 

areas, namely; digital services, digital 

tests  and  participating  in  related  lo-

business services and techfin servic-

cal  and  international  organizations. 

es. Turkcell Group companies operate 

in  4  countries  -  Turkey,  Ukraine,  Be-

larus, and Northern Cyprus. Turkcell is 

dedicated  to  meeting  the  communi-

cation needs of its customers to their 

high  quality  standards  with  its  wide 

coverage in Turkey and diverse range 

of services abroad. Turkcell conducts 

its  operations  to  offer  opportunities 

not  only  for  its  customers,  but  for  all 

of  its  stakeholders  with  the  ultimate 

goal  of  creating  overall  social  val-

ue,  and  accordingly  leverages  new 

technologies,  services  and  prod-

ucts  as  the  leading  communications 

and  technology  company  of  Turkey. 

Turkcell  launched  LTE  services  in  its 

home  country  on  April  1,  2016,  em-
ploying  LTE-Advanced  and  3  carrier 
aggregation  technologies  in  81  cit-
ies.  Turkcell  has  a  total  bandwidth 

of  234.4  MHz,  equivalent  to  43%  of 

Shareholders

TVF Bilgi Teknolojileri İletişim 
Hizmetleri Yat. San. ve Tic. A.Ş.

IMTIS Holdings S.A.R.L.

Publicly traded*

Other

Total

* Publicly traded shares also include the ADS trading at NYSE.

Turkcell has been listed on the Borsa 

Istanbul  (BIST)  and  New  York  Stock 

Exchange  (NYSE)  since  July  2000,  as 

the  only  Turkish  company  to  be  list-

ed  on  both  stock  exchanges.  Turk-

cell  debt  instruments  are  traded  on 
the  Irish  Stock  Exchange.  Turkcell  is 
a  constituent  of  the  MSCI  Sustain-

ability  Index  and  the  Borsa  Istan-

bul  Sustainability  Index.  Turkcell  re-

ported  TRY29.1  billion  of  revenues 

in  2020  with  total  assets  of  TRY51.5 

billion  as  of  December  31,  2020.

Turkcell’s new shareholder structure:
Following  the  amendment  of  the 

Company’s  articles  of  association 

at  the  Ordinary  General  Assembly 

held  on  October  21,  2020,  a  new 

era  began  with  the  share  transfer 

transactions  completed  on  Octo-

ber  22,  2020,  whereby  the  part-

nership  structure  was  simplified:

Nominal
(TRY thousand)

Share (%)

576,400

435,600

1,187,004

996

26.20

19.80

53.95

0.05

2,200,000

100.00

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For more information about Turkcell, you can visit www.turkcell.com.tr

About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
10

About Turkcell

We stand by our 
customers with 
our strong telecom 
infrastructure

2020 was a year in which the key role of the telecom sector in our 
lives and in the economic system was highlighted by the COVID-19 
pandemic.  During  this  period,  we  have  stood  by  our  customers 
with  our  wide  range  of  innovative  offers  and  digital  propositions, 
providing  superior  customer  experience  and  additional  benefits 
responding  to  their  changing  needs  and  demand.  We  sustained 
our  high  quality  customer  service  with  a  rich  value  proposition 
by  leveraging  our  robust  telecom  infrastructure.  In  particular,  we 
met their rising data demand with our mobile and fixed offerings, 
including rich content, as well as our innovative product Superbox 
that provides uninterrupted household broadband service at fiber-
like speeds over the mobile network.

Postpaid 
subscriber
net additions

1.6
million

Superbox 
subscribers

591
thousand

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About Turkcell

TURKCELL INTEGRATED ANNUAL REPORT 2020

Digital services and 
solutions adding 
value to life

In  a  period,  during  which  the  demand  for  digital  services 
accelerated  further  with  the  impact  of  the  pandemic, 
we  continued  to  serve  our  customers  with  our  innovative 
and  inclusive  digital  services  and  solutions  developed  by 
Turkcell engineers, in step with our visionary strategy and 
strong business model. And in this environment, where our 
customers  have  preferred  to  stay  home,  we  have  stood 
by them with our broad digital services portfolio. We have 
made their time at home more enjoyable by offering digital 
experience  over  TV+,  fizy,  lifebox  and  Dergilik  platforms, 
while  enabling  them  to  make  video  calls  with  their  loved 
ones via BiP.

Standalone 
digital services 
revenue

TRY1.3
billion

3
million
paid users

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About Turkcell

TURKCELL INTEGRATED ANNUAL REPORT 2020

Our digital business 
services accompany our 
customers on their digital 
transformation journey

In  this  period,  during  which  institutions’  digitalization  needs  have 
rapidly risen, we conduct projects enabling companies to make faster 
decisions and work more efficiently, not only in areas where we are 
at  the  forefront,  but  in  all  matters  related  to  technology,  leveraging 
our  advanced  solutions  and  services  developed  with  a  digital 
integrator  identity.  As  part  of  our  digital  business  services  focus,  we 
support companies as a “reliable technology partner” on their digital 
transformation journey, while offering necessary products and solutions 
to reduce their costs and enable them to access new revenue streams. 
Going forward, we will continue to provide the information technology 
solutions that our customers need across a wide range of sectors from 
transportation to finance, from health to education and logistics, and 
from production to retail and energy with a one-stop-shop approach. 
Moreover, we will continue to support our customers with our end-to-
end products and services portfolio, ranging from telecom services to 
cloud solutions, and from Internet of Things to cyber security.

Digital business 
services revenue 
growth

30%

System 
integration 
projects backlog

TRY967
million

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TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
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About Turkcell

TURKCELL INTEGRATED ANNUAL REPORT 2020

Effective and reliable 
solution to increasing 
digital payments 
demand through our 
techfin services

We  facilitate  the  lives  of  our  customers,  meeting  their  digital 
payment  needs  via  the  solutions  we  have  created  under  the 
Paycell roof, merging financial and tech services. In the pandemic 
environment,  where  payment  habits  have  changed  and  the 
demand for digital payments has risen rapidly, we have helped 
our  customers  make  all  their  payment  transactions  swiftly 
and  securely  through  Paycell,  which  is  differentiated  from  its 
competitors by its wide product and service portfolio.

Paycell 
3-month active 
users

4.7
million

Paycell 
non-Group 
revenue growth

62%

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TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
18

About Turkcell

TURKCELL INTEGRATED ANNUAL REPORT 2020

Turkcell is creating
sustainable value

We create value for our customers with our innovative and 
value-added  products  and  services,  while  maintaining  our 
relationships with all stakeholders in our ecosystem with the 
principles of being honest, coherent, fair and ethical. In light 
of our “Technology for life, hope for the future” motto, we act 
on our responsibility to increase social welfare and combat 
environmental  challenges,  while  contributing  to  economic 
development. We integrate our fundamental values such as 
supply chain transparency, conservation of natural resources 
and high customer satisfaction into our business processes.

Investing

1%

of our revenue in 
social investment 
projects

The target of 
meeting all our 
electricity demand 
from renewables by

2030

Becoming 
a carbon-neutral 
company by

2050

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TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
20
20

Our vision

Superior digital services 
for a better future

Our misson

To add value to the digitalization journey of our customers, both 
in Turkey and across the globe, and enrich their lives with our 
continuously improving competencies and robust ecosystem

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22

About Turkcell

Turkcell Group: 
Developments in 2020

Turkcell Group companies operate in 
4 countries - Turkey, Ukraine, Belarus, 
and the Turkish Republic of Northern 
Cyprus (TRNC).*

TURKEY
TURKCELL TURKEY

Mobile customers 33.4 million
Fixed customers 2.4 million
IPTV customers 871 thousand

Revenues TRY25.2 billion

UKRAINE
lifecell

BELARUS
BeST

TRNC
Kuzey Kıbrıs Turkcell

Mobi le customers 9.3 mi llion
Revenues TRY1,776 mi llion 

Mobi le customers 1.4 mi llion
Revenues TRY395 mi llion 

Mobi le customers 0.5 million
Revenues TRY239 mi llion

*  lifecell Europe: The marketing partnership between Turkcell Europe and Telekom Deutschland Multibrand GmbH, the subsidiary of Deutsche Telekom, 
  ended on April 30, 2020 pursuant to the respective agreement.

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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Developments in 2020:

Strong revenue, operational 
profitability and net income 
performance on the back of 
a robust business model and 
prudent risk management, 
despite the impacts of 
COVID-19 

Declining leverage and 
sustained long FX position 
thanks to effective balance 
sheet management, despite 
challenging macroeconomic 
conditions

Revenues 
rose to TRY29.1 
billion on

15.8%

growth

EBITDA
 margin

42.2%

EBIT margin

21.6%

TRY4.2 billion 
net income 
on a
30.5%
rise

Strong data usage momentum 
with accelerated digitalization 
demand

Average 
monthly data 
usage per mobile 
subscriber at 
11.7 GB on a

58.1%

increase

Average 
monthly data 
usage per 4.5G 
subscriber at

13.6 GB

Leverage 
down to

0.8x

Long FX 
position at

USD132
million*

Increasing share of digital 
sales channels in total sales 
with the rising demand for 
e-commerce

Share of
digital sales 
channels in total 
consumer sales* 
having risen to
14.3%
(Q420) 

30 million
monthly 
average website 
visitors

Strong cash flow generation 
through robust operational 
performance and disciplined 
capex management

TRY3.4
billion cash flow 
generation**

Strong performance in our 
strategic focus areas

25.6%

increase in 
standalone digital 
services 
revenues

30.1%

growth in 
digital business 
services 
revenues

62%

rise in 
Paycell 
non-Group 
revenues

Strong ARPU performance thanks 
to the rich value proposition and 
customer appreciation

Mobile ARPU*** 
having reached 
TRY49.1 on a

15.0%

rise

Residential 
fiber ARPU at 
TRY70.9 on

9.2%

growth

Sustainability focus as one of the 
main components of our business 
model

Adoption 
of the UN 
Sustainable 
Development 
Goals

We will 
continue our 
success in 
sustainable finance 
by increasing 
the diversity of 
financing

Successful subscriber net 
addition performance on robust 
infrastructure, innovative services 
and solutions, customer-oriented 
business approach

1.1

million total net 
subscriber 
additions

1.6

million 
postpaid net 
additions

Postpaid 
subscribers 
having risen to

65.7%

share

* Advance payments are included.  ** Free cash flow calculation includes EBITDA and the following items as per IFRS cash flow statement; acquisition of property, 
plant and equipment, acquisition of in tangible assets, change in operating assets/liabilities, payment of lease liabilities and income tax paid. *** Excluding M2M.

* Excluding fixed business.

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
26

Chairman’s message

Bülent Aksu
Chairman of the Board of Directors
Please see page 33 for detailed CV.

2020  was  a  year,  in  which  we  wit-
nessed a global health crisis that led to 
unprecedented  economic,  social  and 
environmental developments in the re-
cent  world  history.  As  of  March  2020, 
the COVID-19 pandemic started to af-
fect our country as well. The pandem-
ic  led  to  various  social  and  economic 
challenges  that  impacted  individuals, 
businesses  and  overall  society  for  the 
whole  year.  Our  government  has  de-
veloped  policies  since  the  first  day  of 
the  pandemic  to  mitigate  its  impacts 
on  our  citizens.  As  Turkcell,  we  have 
also  taken  several  measures  to  mini-
mize the effects of the pandemic con-
sidering  the  health  of  our  customers, 
business partners and employees.

As  the  COVID-19  pandemic  caused 
us  to  reconsider  our  knowledge  and 
habits,  it  also  highlighted  the  key  role 
of communications in our lives. Accord-
ingly,  we  concluded  the  year  having 
strengthened and renewed our servic-
es  and  products  so  as  to  better  fight 
against  the  negative  impacts  of  this 
recently-emerged phenomena.

We successfully met the rising demand 
for  digital  services  and  telecommuni-
cations offerings during the pandemic 
via  our  robust  infrastructure.  We  con-
tinued  to  offer  the  best  experience  to 
our people through our telecom servic-
es, the key to our consistent growth, as 
well  as  our  digital  products  portfolio, 
our  digital  business  services  that  pro-
vide organizations with an end-to-end 
digital transformation opportunity, and 
our  new  generation  payment  systems 
in techfin.

Our most important tool to drive value 
creation  in  this  challenging  environ-

ment  was  our  robust  telecommunica-
tions  infrastructure,  in  which  we  have 
invested  TRY32  billion  over  the  past 
five  years.  In  a  period,  when  telecom 
operators around the world requested 
internet broadcasters to restrict service 
or lower video resolution as a solution 
to  the  intensive  use  of  the  network, 
we  successfully  managed  a  traffic 
increase,  approaching    50%,  with  our 
robust infrastructure. We continued our 
5G preparations at full speed concen-
trating  on  network  transition  and  R&D 
activities.  Additionally,  we  carried  out 
valuable  activities  together  with  our 
business  partners  towards  developing 
domestic  and  national  5G  products 
and digital solutions.

We  enabled  our  customers  to  meet 
all  their  communication  needs  with-
out  leaving  their  homes  through  our 
website  and  Digital  Operator  appli-
cation,  the  infrastructure  of  which  we 
optimized  recently.  We  increased  the 
upload speed fourfold to 20 Mbps and 
the  minimum  download  speed  up  to 
50  Mbps,  to  improve  the  experience 
of our fiber internet subscribers for re-
mote  working  and  distance  learning. 
Due to strong customer interest in high-
er  speeds,  in  September  we  launched 
our 200 Mbps household internet offer.

We  provided  solutions  for  those,  who 
needed communication the most, such 
as  healthcare  workers,  our  custom-
ers  aged  65  and  above,  and  children 
continuing  distant  education,  through 
support  packages.  We  helped  efforts 
to  raise  awareness  of  the  pandemic 
communicating  #lifesathome  caption 
to  our  customers.  We  made  the  time 
they  were  obliged  to  spend  at  home 

more enjoyable by providing addition-
al benefits on our services such as BiP, 
Dergilik,  fizy  and  TV+.  As  the  payment 
methods  of  people  started  to  digitize, 
our new generation payment platform 
Paycell  stood  out  with  its  easy-to-use 
and secure payment infrastructure. The 
digital  content  purchases  over  Paycell 
doubled compared to last year reflect-
ing the change in payment habits.

Video  conference  systems  have  be-
come  widely  used  tools  in  the  new 
working  models  led  by  the  pandemic. 
However, the security and data privacy 
issues associated with various systems 
have raised concerns among  individ-
ual users and corporations. In order to 
address  these  issues,  we  rapidly  took 
the  necessary  steps  to  offer  our  cus-
tomers  a  secure  alternative.  Accord-
ingly,  thanks  to  the  efforts  of  Turkcell 
engineers , we launched our advanced 
digital  conference  solution,  BiP  Meet, 
and  took  the  remote  meeting  experi-
ence to the next level.

The developments regarding data pri-
vacy  and  protection  in  the  early  days 
of  2021  once  again  underlined  the 
critical  importance  of  developing  and 
using  domestic  and  national  applica-
tions. Our communication and life plat-
form  BiP,  which  has  been  developed 
by  Turkish  engineers  and  reflects  our 
commitment to the issue, attracted the 
interest of users with the rising aware-
ness of the society on data privacy. BiP 
started  to  be  used  in  many  countries 
thanks to the features including instant 
translation and video calls of up to 10 
people, differentiating it from competi-
tion in the international arena. I believe 
that  as  a  country,  we  should  be  using 

27

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
28

We also stood 
beside our people 
in need, having 
made a TRY20 
million donation to 
the “Together We 
Are Enough My 
Turkey” campaign 
launched by our 
President Mr. Recep 
Tayyip Erdoğan.

domestic applications not only in mes-
saging,  but  in  all  other  fields.  We  will 
inevitably encounter with similar nega-
tive experiences in the future unless we 
rely on our own digital solutions.

We implemented a TRY47 million sup-
port  package    to  keep  our  ecosystem 
functioning  and  preserve  employment 
as  part  of  the  fight  against  pandem-
ic. We also stood beside our people in 
need, having made a TRY20 million do-
nation to the “Together We Are Enough 
My Turkey” campaign launched by our 
President Mr. Recep Tayyip Erdoğan.

We continued to carry out activities in 
the health sector leveraging our quar-
ter-century  experience  in  communi-
cations  and  technology  also  in  2020, 
when health issues became even more 
important. In this period, in which Tur-
key has marked worldwide best prac-
tices  in  the  health  sector,  four  hospi-
tals, two of which were field hospitals, 
were opened. We continued to provide 
service  through  the  Turkcell  Hospital 
Information  Management  System  at 
Yozgat,  Adana,  Elâzığ,  Eskişehir,  Bur-
sa,  Başakşehir  Çam  and  Sakura,  and 
Tekirdağ  City  Hospitals.  All  of  these 
facilities,  equipped  with  Turkcell  tech-
nologies, are focused on providing the 
best healthcare service to our people.

As  the  leader  in  supporting  the  digital 
transformation of our country, we con-
tinued  to  offer  our  corporate  custom-
ers  wide  range  of  solutions  including 
hosting  services,  cloud  infrastructure, 
backup  services,  disaster 
recovery 
and  security  services.  In  this  respect, 
we reached a total white space  area 
of  39,500  m2  with  our  data  centers 
established  in  four  cities  and  at  eight 
locations.  While  our  traditional  data 
centers  are  located  in  Dudullu,  Kar-
tal,  Yenibosna  and  Söğütözü,  our  new 
generation  data  centers, 
that  are 
equipped  with  superior  technologies 
and  built  to  international  standards, 
are located in Ankara Temelli and Euro-
pean side, Gebze, and İzmir. Our ability 
to  manage  over  11,000  virtual  servers  
and over 20 petabytes of data for our 

corporate  customers  underpins  their 
trust  in  the  Turkcell  brand.  In  this  con-
text, we continued our activities around 
data centers keeping our pace in 2020. 
Our  data  centers,  in  which  we  have 
invested  over  TRY2  billion  to  date,  en-
able us to provide services addressing 
the  needs  of  the  region,  backup  data 
across  different  geographies,  and  en-
sure the security of customer data.

We deem compliance with the law on 
the protection of personal data as part 
of all our products and services among 
our  top  priorities.  In  this  respect,  we 
took advanced measures with respect 
to data privacy and security to ensure 
compliance with the regulations of our 
country,  as  well  as  with  the  Gener-
al  Data  Protection  Regulation  (GDPR), 
which  we  are  subject  to  regarding 
our  products  and  services  provided  in 
European  Union  countries.  While  our 
Compliance  Committee    carries  out 
its  activities  to  audit  processes,  pro-
cedures  and  policies  with  respect  to 
data  security,  we  aim  to  improve  our 
risk  management  and  accountability 
having  established  Data  Impact  Anal-
ysis process. Within the scope of GDPR 
compliance, we appointed a Data Pro-
tection  Officer  (DPO)  to  the  Turkcell 
Group.  We  will  continue  to  implement 
all  necessary  actions  to  comply  with 
national  and  international  legislation, 
as  well  as  GDPR  in  the  upcoming  pe-
riods.

Intellectual  capital  is  undoubtedly  a 
subject  of  equal  importance  to  finan-
cial capital in strengthening a compa-
ny. As part of this vision, we conducted 
several  valuable  projects  in  2020  in 
accordance  with  diversity  and  inclu-
siveness  principles  that  shapes  Turk-
cell’s  human  resources  practices.  In 
particular, we give utmost importance 
to  increasing  the  number  of  wom-
en  employees  to  enhance  equality  of 
opportunity  within  our  sector.  In  this 
respect, we launched our “Women En-
gineer  Employment”  project  targeting 
women  engineers,  who  are  to  begin 
their  career  or  whose  career  was  in-

I wholeheartedly 
believe that 
our Company 
will continue its 
consistent growth 
and become 
more competitive 
at the global 
level with the 
simplified 
shareholder 
structure and 
thereby enhanced 
decision-making 
capability.

terrupted  for  various  reasons.  As  part 
of  our  recruitment  activities  to  help 
reverse  brain  drain,  which  is  another 
key  consideration  for  us  from  a  hu-
man resources perspective, we kicked 
off the “Stars Coming Back” project in 
2020,  thus  opening  Turkcell’s  doors  to 
Turkish  professionals  working  abroad. 
While  we  have  created  over  1,000 
employment  through  the  “GNÇYTNK” 
program over the past 6 years, we also 
implemented a new project in 2020 for 
young  people.  Accordingly,  we  gave 
10,010  university  students  and  recent 
graduates  the  opportunity  to  gain  ex-
perience  at  Turkcell’s  departments  of 
their  choice  via  our  “Unlimited  Talent 
Program”.  As  part  of  this  mega  pro-
ject, which we enabled online remote 
access as the pioneer of digital trans-
formation,  our  young  people  had  the 
opportunity to engage in countless job 
experiences  from  technology  trainings 
to  personal  development  workshops, 
networking  and  mentor  support  to 
meeting with senior management and 
award competitions. In order to create 
stronger  synergy,  our  artificial  intelli-
gence systems grouped young people 
according  to  their  specific  areas  of 
interest,  whereby  the  participants  had 
the  opportunity  to  fully  utilize  Turkey’s 
most extensive experience project.

Although  2020  was  a  year  that  chal-
lenged organizations in terms of mac-
roeconomic and governance perspec-
tives,  Turkcell  became  even  stronger 
with  the  developments  realized 
in 
the  last  quarter  of  the  year.  The  his-
torical  decisions  taken  at  our  Gener-
al  Assembly  held  in  October  with  the 
strong  participation  of  our  sharehold-
ers  marked  the  start  of  a  new  era  for 
our  Company.  At  the  General  Assem-
bly of Turkcell, which represents Turkey 
in  the  international  capital  markets, 
amendments  to  its  articles  of  asso-
ciation  were  approved  by  the  share-
holders.  Turkey  Wealth  Fund  became 
the largest and controlling  shareholder 
with a 26.2% stake following the com-

pletion  of  share  transfer  transactions 
subsequent to the General Assembly. I 
wholeheartedly believe that our Com-
pany will continue its consistent growth 
and  become  more  competitive  at  the 
global  level  with  the  simplified  share-
holder structure and thereby enhanced 
decision-making capability.

Turkcell,  which  is  a  significant  value 
for  our  country,  is  listed  both  at  Borsa 
Istanbul  and  the  New  York  Stock  Ex-
change for 20 years. It is our intention 
to  enhance  the  value  created  over 
those 20 years to a higher level in the 
upcoming periods, with the trust of our 
domestic and foreign investors.

We  carry  out  our  activities  with  the 
understanding that Turkcell’s participa-
tion in international platforms is valua-
ble for representation of our county in 
the  international  arena.  Thus,  we  will 
be  supportive  of  initiatives  that  serve 
the  good    in  the  global  arena.  In  this 
respect,  we  were  the  only  compa-
ny  in  Turkey  responding  to  the  call  of 
the United Nations in September 2020, 
which  celebrated  its  75th  anniversa-
ry  this  year.  In  order  to  overcome  the 
global  crisis  caused  by  the  pandemic, 
we signed the declaration that requires 
demonstrating transparent and ethical 
leadership  as  the  public  sector,  civil 
society  and  private  sector,  prioritizing 
value-oriented strategies and acting in 
cooperation with stakeholders to elim-
inate inequalities.

As  Turkcell,  one  of  our  indispensable 
priorities  is  to  reach  out  and  improve 
lives through the power of technology 
and  communications,  while  providing 
our  customers  the  highest  quality  ser-
vice. We  stood  by  our  people  in  2020 
as we have done for the past 27 years, 
with  our  social  responsibility  projects 
focused  on  social  benefits  and  re-
duction  of 
inequality.  We  touched 
the  lives  of  200  thousand  young  and 
disabled  individuals  with  our  Whiz 
Kids  and  People  Without  Boundaries 
projects  that  we  have  invested  in  for 
many years in the education area. Our 

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
30

About Turkcell

While developing 
globally competitive 
technologies, we 
also attach great 
importance to these 
technologies being 
people-oriented. 
In this respect, we 
established “the 
Artificial Intelligence 
Principles”, in a first 
for Turkey. 

becoming  a  carbon-neutral  company, 
the Green Loan we obtained to finance 
those investments, as well as issuance 
of  human  rights  and  environmental 
policies were other important develop-
ments of this year. And so I am pleased 
to present you with our integrated an-
nual  report,  one  of  the  most  valuable 
outputs  of  these  activities,  and  which 
we prepared for the first time this year 
so  as  to  enable  all  our  stakeholders, 
especially our investors, to get to know 
Turkcell  better,  and  evaluate  it  from  a 
wider perspective.

I would like to extend my sincere grat-
itude to our customers, who have fur-
ther  strengthened  the  Turkcell  brand 
with their appreciation under the chal-
lenging conditions of 2020, our share-
holders  and  investors,  who  have  sup-
ported  our  Company  with  their  trust, 
all our employees, who have continued 
to work with love and enthusiasm, de-
spite  this  unprecedented  period  in  re-
cent  history,  and  all  our  stakeholders. 
Going forward, as Turkey’s Turkcell, we 
will continue to work with the support 
of all our stakeholders, and in accord-
ance with Turkcell’s ethical values and 
focus on social benefit, to create value 
for lives of our customers and the op-
erations of corporations.

Sincerely,

Bülent Aksu
Chairman of the Board of Directors

Dream Companion, My Sign Language 
and  My  Gem  Inside  projects  are  the 
best examples of how inequalities can 
be reduced utilizing the power of tech-
nology. Following the earthquake, flood 
and avalanche disasters we faced, we 
mobilized our technology and commu-
nications  power  for  our  people  in  the 
field.  We  marked  a  first  in  the  world 
with  our  Helping  Hand  project,  which 
we  rapidly  implemented  over  Payce-
ll  platform  after  the  flood  disaster  in 
Giresun. We reached out to  tradesmen  
and  families  impacted  by  the  flood, 
and provided our support via Paycell. In 
addition to the support provided by our 
Company,  “Turkcell  Volunteers”,  whose 
entire income is generated via the do-
nations  of  Turkcell  Group  employees, 
helped  our  people  via  the  campaigns 
initiated  for  Elâzığ,  Giresun  and  İzmir. 
We  will  continue  to  be  at  service  of 
Turkey,  both  with  our  technological 
power and our social benefit projects, 
as we have been for 27 years.

While  developing  globally  competi-
tive technologies, we also attach great 
importance  to  these  technologies  be-
ing  people-oriented.  In  this  respect, 
we  established  “the  Artificial  Intelli-
gence  Principles”,  in  a  first  for  Turkey. 
We  shared  our  commitment  to  these 
principles  with  the  public  via  the  arti-
ficial technologies we have developed. 
Furthermore,  we  adapted  a  sustaina-
ble technology development approach 
that is ethical, responsible and respect-
ful  of  human  rights.  Duly,  our  Human 
Rights Policy states that we undertake 
the  mission  of  carefully  observing  the 
governance  processes  of  Artificial  In-
telligence Principles. 

As  part  of  our  sustainability  activities, 
one  of  our  key  focus  areas,  we  took 
important  steps  in  2020,  and  realizing 
many  firsts.  We  are  truly  proud  of  es-
tablishing  our  Integrated  Value  Crea-
tion Committee and improving our CDP 
score, which we are regularly reporting 
since 2015, from C- to B. Moreover, re-
newable  energy  investments  towards 

TURKCELL INTEGRATED ANNUAL REPORT 2020

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32
32

About Turkcell

Board of Directors

Board of Directors

Bülent Aksu
Chairman of the Board

Bülent Aksu has 25 years of manage-

of balance sheet and FX risk manage-

rial experience in finance, accounting, 

ment  along  with  his  innovative  solu-

tax and management fields in various 

tions to funding investments. Mr. Aksu 

sectors including telecommunications, 

strengthened  Turkcell’s  leading  posi-

energy,  petrochemicals,  textiles  and 

tion  in  local  and  international  capital 

audit. He began his career at Inspec-

markets having carried out first Asset 

tion  Board  of  Kuveyt  Türk  A.Ş.  as  an 

Backed  Securities  (ABS)  issuance  in 

Auditor,  and  then  undertook  Finance 

non-banking  sector,  and  having  led 

Manager  and  Group  Finance  Direc-

financing  bill,  lease  certificate  and 

tor  roles,  respectively  at  Çalık  Hold-

Eurobond  transactions.  In  2016  and 

ing  in  2003.  Between  2008  and  2012, 

2018,  Mr.  Aksu  was  voted  among  the 

he served as CFO at Akfel Group. Mr. 

top 50 most influential CFOs in Turkey 

Aksu undertook CFO role at Azerbai-

by  the  Fortune  Turkey  magazine.  Mr. 

jani  National  Oil  and  Gas  Company’s 

(SOCAR)  subsidiaries  Petkim  Petrok-

imya  Holding  A.Ş.  and  STAR  Rafineri 

Aksu served as Deputy Minister for the 
Ministry  of  Treasury  and  Finance  be-
tween August 3, 2018 and January 29, 

A.Ş.,  respectively  from  2012  to  2016. 

2021.  He  served  as  a  Board  Member 

Bülent  Aksu  carried  out  numerous 

of  Türk  Telekomünikasyon  A.Ş.  from 

mergers  and  acquisitions  transac-

November 2018 to March 2019. Bülent 

tions in various industries, and actively 

Aksu  served  as  a  member  of  Turkcell 

managed  financial  transactions  in-

Board  of  Directors  between  March 

cluding  project  financing  and  bond 

2019  and  March  2020.  Between  May 

issuance  in  international  and  domes-

2019 and February 2021, he served as 

tic markets. He led the completion of 

the  financing  agreement  of  USD3.3 

billion  with  18  years  maturity  signed 

the Chairman of Board of Directors of 
Turk Eximbank. Mr. Aksu was appoint-
ed as the Chairman of Turkcell’s Board 

between  23  local  and  international 

of  Directors  effective  as  of  March  12, 

financial  institutions  and  STAR  Rafin-

2020. Mr. Aksu represented our coun-

eri, one of the most prominent indus-

try  as  Sherpa  at  the  G20  summit  in 

trial  investments  of  our  country.  This 

2018,  and  as  Turkey  Governor  at  the 

agreement  had  been  the  top  project 

Asian  Development  Bank  (ADB)  and 

financing  transaction  made  in  Turkey 

the African Development Bank (AfDB); 

to  that  date  in  terms  of  amount  and 

Turkey Deputy Governor at the World 

maturity.  Moreover,  it  had  been  the 

largest  project  financing  transaction 

Bank (WB), European Bank for Recon-
struction and Development (EBRD) and 

in  Europe  in  2014.  Bülent  Aksu  served 

Asian  Infrastructure  Investment  Bank 

as  CFO  of  Turkcell  from  July  20,  2016 
to  July  17,  2018.  Mr.  Aksu  made  valu-
able  contributions  to  Turkcell  having 

(AIIB);  as  Turkey  Executive  Director  at 

Islamic  Development  Bank  (IsDB)  be-

tween August 2018 and January 2021. 

implemented  international  practices 

Bülent  Aksu  graduated  from  Istanbul 

enabling Turkcell to become an exem-

University  Faculty  of  Business  Admin-

plary company of our country in terms 

istration (English) in 1996.

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34

Hüseyin Aydın
Board Member

Hüseyin  Aydın  was  born  in  1959  in 

served as General Manager of Halk-

Artvin,  Borçka.  He  graduated  from 

bank  between  2005  and  2011,  when 

the  Ankara  Academy  of  Economics 

the bank went public in 2007 as the 

and  Commercial  Sciences 

(Facul-

biggest  transaction  of  the  country 

ty  of  Economics)  in  1981.  He  began 

since then. Having joined Ziraat Bank 

his  career  as  an  Assistant  Auditor  at 

as the CEO on July 15, 2011, Mr. Aydın 

Ziraat  Bank  and  served  as  Auditor, 

also  serves  as  the  Chairman  of  the 

the  Head  of  Department,  Duisburg/

Banks  Association  of  Turkey  since 

Germany Representative and Branch 

2010  and  Board  Member  of  Turkey 

Manager.  After  working  as  an  Exec-

Wealth  Fund  Management  Co  since 

utive Board member at Halkbank, as 

2017.  Hüseyin  Aydın  was  appointed 

a Board member at Pamukbank and 

to  the  Turkcell  Board  of  Directors  on 

as  Deputy  Chairman  at  Ziraat  Bank 

March 8, 2019.

between  2003  and  2005,  Mr.  Aydın 

Afif Demirkıran
Independent Board Member

Afif  Demirkıran  was  born  in  Siirt  in 

1952.  Having  completed  his  primary 

and secondary education in Siirt, Afif 

Demirkıran  graduated  from  Mining 

Deputy  at  the  23rd  and  24th  periods 
of the Grand National Assembly Tur-
key. In the 22nd period, he also served 
as a member of the State Economic 

Faculty  of  Istanbul  Technical  Univer-

Commission  for  Enterprises,  member 

sity  in  1973.  Later  he  studied  engi-

of Turkish Group OSCE PA and mem-

neering  and  had  master’s  degree  at 

the Leeds University in UK. He served 

as  an  executive  in  Etibank,  as  Head 

of  Foreign  Investment  Department 

at  the  Undersecretariat  of  State 
Planning  Organization,  as  General 

Manager  of  Foreign  Investment  Di-

rectorate  at  the  Undersecretariat  of 

Treasury, as a Board Member of Ere-

ber  of  the  Turkey-EU  Joint  Parlia-
mentary Commission. In the 23rd and 
24th  periods,  he  was  the  President  in 
the  Turkey-EU  Joint  Parliamentary 
Commission. In the 22nd, 23rd and 24th 
periods,  he  served  as  the  Chairman 

of  Turkey-Spain  Inter-Parliamentary 
Friendship  Group.  In  the  24th  period, 
he also was the Deputy Chairman of 

gli Iron and Steel Inc. and Sümerbank 

Turkey-Pakistan 

Inter-Parliamentary 

A.Ş., as various executive positions in 

Friendship  Group.  Since  2016,  he  has 

private sector companies, as Gener-

been the Deputy Chairman of Foreign 

al Manager and Chairman of Turkish 

Affairs Directorate of Justice and De-

Electricity  Generation  and  Transmis-

velopment  Party.  Mr.  Demirkıran  was 

sion Company (TEAŞ), and as General 

appointed to the Turkcell Board of Di-

Manager  of  Vakıf  Enerji  ve  Maden-

rectors by Capital Markets Board De-

cilik  A.Ş..  Being  active  in  politics 

cision effective as of March 6, 2020. 

since 2002, Afif Demirkıran served as 
Batman  Deputy  in  the  22nd,  and  Siirt 

He is married and has four children.

Nail Olpak
Independent Board Member

Nail  Olpak,  was  born  in  1961  in  İbe-

tees  of  the  Foundation  for  the  Sup-

cik,  Burdur.  He  graduated  from  Aydın 

port  of  İstanbul  Medeniyet  University, 

High  School.  Having  graduated  from 

Member  of  the  Board  of  Trustees  of 

Istanbul  Technical  University  Faculty 

Kandilli Club. Nail Olpak also served as 

of Mechanical Engineering, Mr. Olpak 

the  Chairman  of  MÜSİAD  (Independ-

completed  his  master’s  degree  in  the 

ent  Industrialists  and  Businessmen’s 

field of Energy at Yıldız Technical Uni-

Association) and the Chairman of MÜ-

versity. Mr. Olpak serves as the Chair-

SİAD High Advisory Board, Vice-Chair-

man  of  the  Board  of  NORA  Elektrik 

man of IBF (International Business Fo-

AS,  PAK  Yatirim  AS  and  OMN  AS  and 

rum), Council Member of B20 Steering 

as  the  board  member  of  companies 

Committee of Turkey, Council Member 

in which these three companies have 

of  İTO  (Istanbul  Chamber  of  Com-

shareholdings. As part of his activities 

merce), Board Member of İDTM (Istan-

in  NGOs  and  for  public  welfare;  Mr. 

bul World Trade Center), Board Mem-

Olpak serves as President & Chairman 

ber  of  the  Huzur  Hospital  Foundation, 

of the Executive Board of DEİK, Board 

Board  Member  of  ENVERDER  (Energy 

Member of Export Credit Bank of Tur-

Efficiency  Association),  Member  of 

key (TURK EXIMBANK), Board Member 

High Advisory Board and  Board Mem-

of Turkcell, Board Member of İstanbul 

ber of MMG (Architects and Engineers 

Development Agency (İSTKA), Member 

Group), Founding Committee Member 

of  High  Advisory  Board  of  MÜSİAD, 

of Turkish-Japanese University, Mem-

Member  of  the  Founding  Committee 

ber of the Board of Trustees of Com-

of  International  Technological,  Eco-

mercialize Center Istanbul (CCI), Board 

nomic  and  Social  Research  Founda-

Member  of  Turkey  Silicon  Valley.  Mr. 

tion  (UTESAV),  Member  of  the  Board 

Olpak  was  appointed  to  the  Turkcell 

of  Trustees  of  Tourism  Development 

Board of Directors by Capital Markets 

and  Education  Foundation  of  İstan-

Board Decision, effective as of March 

bul  Chamber  of  Commerce  (TUGEV), 

6,  2020.  Nail  Olpak  was  granted  the 

Member  of  Founders  Board  of  İlim 

title of Honorary PhD in the branch of 

Yayma  Foundation,  Member  of  the 

International  Relations  by  Ahi  Evran 

Board  of  Trustees  of  Huzur  Hospital 

University and Mehmet Akif Ersoy Uni-

Foundation,  Member  of  the  Board  of 

versity.  Olpak  is  married  and  is  the 

Trustees  of  Human  Development  and 

father of two sons who are Architect 

Societal  Education  Foundation  (İG-

and Mechatronic Engineer. He speaks 

ETEV),  Member  of  the  Board  of  Trus-

English very well.

Tahsin Yazar
Independent Board Member

Tahsin  Yazar  was  born  in  İspir,  Er-

Mr.  Yazar  was  appointed  as  Advisor 

zurum  in  1975.  He  graduated  from 

to  the  Minister  of  Energy  and  Natu-

Ankara  University  Faculty  of  Law  in 

ral Resources on January 12, 2016. As 

1996.  After  starting  his  career  as  a 

of  August  1,  2018,  he  was  appointed 

freelance  lawyer,  he  continued  at 

as Advisor to the Minister of Treasury 

Devres  Law  Office  and  Zorlu  Hold-

and Finance and he held this position 

ing A.S., respectively. Mr. Yazar joined 

until  the  replacement  of  Minister.  Mr. 

Calik  Holding  Inc.  in  2010  as  Director 

Yazar  was  appointed  to  the  Turkcell 

of  Energy  Group  Legal  Affairs  and 

Board  of  Directors  as  independent 

also  acted  as  a  board  member  of 

board member by decision taken by 

Yesilirmak  Electricity  Distribution  Inc. 

the Capital Markets Board on March 

and  Aras  Electricity  Retail  Sales  Inc. 

6, 2020.

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
36

Figen Kılıç
Board Member

Figen Kılıç, born in 1970 in Gaziantep, 

manager for electronic ticket system 

graduated from the Selçuk University, 

integration  and  management  proje-

Electrical Electronics Engineering de-

cts in various cities of Turkey. In 2014, 

partment  and  received  her  Master’s 

Figen  Kılıç  worked  at  Turkcell  İletişim 

Degree  from  the  Gebze  High  Tech-

Hizmetleri  A.Ş.  and  in  2015  was  ap-

nology  Institute.  Trained  in  project 

pointed to the Information and Com-

management, process management, 

munication  Technologies  Authority 

and  test  engineering,  Kılıç  also  gra-

(ICTA)  of  Turkey  as  its  first  women 

duated  from  the  Anadolu  University 

board  member.  After  her  term  in  of-

Faculty  of  Open  Education,  Depart-

fice ended in 2019, she acted as Ser-

ment  of  Law,  and  is  studying  in  the 

vice Delivery General Manager of the 

Department of Business Administrati-

Republic  of  Turkey  Ministry  of  Family, 

on of the same university. Figen Kılıç, 

Labor  and  Social  Services.  Figen  Kı-

started her career as technical trans-

lıç currently serves as Advisory Board 

lator in İhlas Group, before moving to 

Member of BİLTEG Group at TÜBİTAK, 

İstanbul Municipality BELBİM A.Ş. for a 

as  a  Board  Member  of  ULAK  Com-

lengthy  period,  working  on  payment 

munications Inc. and as Chairwomen 

projects as R&D engineer, Project Co-

of Kıbrıs Türk Denizcilik A.Ş. Figen Kılıç 

ordinator and R&D Manager. In 2010, 

was  appointed  to  the  Turkcell  Board 

she transferred to E-Kent Ödeme Sis-

of  Directors,  effective  as  of  January 

temleri A.Ş. (Çalık Holding) where she 

29, 2021.

served  as  IT  and  Operational  team 

* Ms. Ingrid Maria Stenmark and Mr. Christopher James Powell, members of our Company’s Board of Directors, resigned from their duties as of October 22, 2020.

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020We took over this ﬂag from those who sacriﬁced their lives forthe nation and those who held on to the ﬂag even after martyrdom. Now it’s your turn to carry it with honor!Visit takeovertheﬂag.com and carry the crescent and star with honor.I am #TakingOverTheFlag From ThoseWho Bestowed This Soil a NationWE COMMEMORATE MUSTAFA KEMAL ATATURK AND OUR MARTYRS WITH GREAT RESPECT.HAPPY AUGUST 3Oth VICTORY DAY!MARTYR SANCAKTAR MEHMETCIK MEMORIALTHE BATTLE OF DUMLUPINAR SQUARE 
 
 
 
 
 
 
 
 
 
 
 
 
 
38

Message from the CEO 

Murat Erkan
Chief Executive Officer
Please see page 45 for detailed CV.

2020  was  a  year,  in  which  COVID-19 

We  took  several  measures  for  our 

Kids  Laboratories  opened  with  our 

pandemic  led  to  drastic  changes  in 

employees  and  customers  within  the 

support,  and  children  could  produce 

economic and social terms worldwide, 

context  of  the  COVID-19  pandemic. 

face shields for healthcare workers.

and transformed daily life and ways of 

We  implemented  the  remote  work-

doing business. And as we met brand-

new concepts such as social distanc-

ing,  remote  working  and  distance 

ing  model  prioritizing  the  health  of 
our  employees  since  the  first  COV-
ID-19  case  was  detected  thanks  to 

education, we also witnessed a rapid 

our  communication  systems  and  in-

digital  transformation  in  our  lives.  In 

fact,  all  of  these  developments  have 

further  underlined  the  importance  of 

formation  technology 
infrastructure. 
Our  remote  working  model  also  in-
cludes  over  10  thousand  call  center 

investments  in  communication  infra-

employees.  While  the  pandemic  led 

structures  and  technology.  Today,  it  is 
widely accepted that having a strong 
telecommunication  sector  is  the  only 

to increased data and digital services 

usage, we have successfully managed 

the  resulting  network  traffic  increase 

way  to  ensure  the  successful  trans-

through our strong telecommunication 

formation  of  education,  the  business 

infrastructure  and    our  timely  invest-

world  and  the  wider  economy  in  this 

ments.  During  this  period,  we  offered 

new environment.

As  the  Turkcell  family,  we  mobilized 

our  technology  infrastructure,  know-

how and experience so as to provide 

our customers a high quality and unin-

terrupted  communication  experience 
throughout  2020  operating  period, 
which  was  shaped  by  the  COVID-19 
pandemic.  We  benefitted  from  the 

advantages  of  our  leader  position  in 

the  sector  in  terms  of  digitalization, 

and of investments in our infrastructure 

over  the  years.  Leveraging  our  strong 

mobile  and  fixed  infrastructures,  we 

successfully  managed  the  increased 

traffic  on  our  network,  while  meeting 

the changing demands of our custom-

ers  without  any  difficulty.  Indeed,  our 

digital  services,  digital  business  ser-

vices  and  techfin  services  successful-

ly  met  the  rapidly  rising  digitalization 

needs of our both consumer and cor-
porate segment customers.

support packages for customers aged 

65 and above, healthcare workers and 

students,  and  thereby  stood  by  them. 

We  improved  the  connection  quali-

ty  of  our  fiber  subscribers,  who  work 

from home, or who continue their ed-

ucation  remotely.  In  line  with  the  in-

crease in time spent at home, interest 

in  our  digital  services  also  increased 

accordingly.  We  provided  additional 

benefits  in  various  services  we  pro-

vide through our rich portfolio of dig-

ital  services.  In  cooperation  with  the 

Ministry  of  Health,  we  created  a  BiP 

channel  where  up  to  date  COVID-19 

information, measures and content are 

shared.  Turkcell  customers  aged  65 

and  over,  who  stayed  at  home,  could 

make a call to Paycell’s call center and 

order basic food and cleaning agents 

and pay through their bills. As part of 

our  social  responsibility  projects,  we 

provided new 3D printers to the Whiz 

As  customer  behavior  changed  sig-

nificantly  over  the  pandemic  period, 
online  platforms  saw  increased  us-
age  for  shopping.  We  also  observed 

strong  rise  in  transaction  volumes  on 

our website and Digital Operator ap-

plication,  which  are  among  our  focus 

areas  and  that  we  regularly  develop. 

While  the  number  of  visitors  to  digi-

tal  sales  channels  reached  30  million 

per  month  in  2020,  the  3-month  ac-

tive  users  of  Digital  Operator  appli-

cation  was  23  million.  Online  top-up 

transaction volume realized over these 

channels tripled on an annual basis. In 

this  context,  the  share  of  digital  sales 

channels  in  Turkcell  Turkey  consumer 

revenues  (excluding  our  fixed  busi-

ness)  reached  14.3%  in  fourth  quarter 

of 2020.  Going forward, we will con-

tinue to focus on sales through digital 

channels, which positively impacts our 

operational  costs.  Another  important 
development of 2020 was the launch 

of  our 

technological  marketplace, 

Turkcell Pasaj. Our customers can pur-

chase thousands of products including 

smartphones,  new  generation  tech-

nologies,  household  electrical  appli-

ances, personal care products, gaming 

computers, sports products, music and 

hobby  products  from  Turkey’s  leading 

suppliers  with  Turkcell  assurance  over 

Turkcell  Pasaj,  which  was  developed 

by Turkcell engineers.

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
40

In 2020, we 
continued to serve 
our customers 
with our innovative 
and inclusive 
digital services 
developed by 
Turkish engineers. 
Our standalone 
digital services 
revenue rose 26% 
for the year. In a 
period of increased 
time spent at home, 
we stood by our 
customers with 
our digital service 
portfolio. 

Our digital-oriented strategy

propositions,  our  subscriber  base  ex-

and strong business model led to 

robust results
In  2020,  all  macroeconomic  develop-

panded with net additions of 1.1 million 
in 2020. Accordingly, despite the chal-
lenges of the pandemic, we achieved 

ments  were  affected  by  the  conse-

our target of adding 1 million subscrib-

quences  of  COVID-19  pandemic.  The 

ers in 2020.

economic  activity  in  many  sectors 

came  to  a  halt  with  the  distortions  in 

the  global  supply  chain  and  demand, 

and  also  with  increased  unemploy-

ment.  These  developments  eventually 

led  global  economies  to  contract  in 

2020. Yet despite these conditions that 

affected  Turkey  and  our  other  coun-

tries  of  operation,  we  sustained  our 

successful  operational  and  financial 

performance  in  2020,  thanks  to  our 

digital-oriented  strategy  and  robust 

business  model.  Turkcell’s  consolidat-

ed  revenues  rose  by  15.8%  to  TRY29.1 

billion. Consolidated EBITDA increased 

by  17.7%  to  TRY12.3  billion  leading  to 

an EBITDA margin 42.2% on 0.7pp im-

provement. Our EBIT margin was 21.6%. 

We  registered  a  strong  net  income 

performance of TRY4.2 billion on 30.5% 

rise. Our operational capex to sales ra-

tio (excluding licenses) was realized at 

18.5%  in  line  with  our  plans.  Moreover, 

along with these solid set of results, on 

the back of our strong balance sheet, 

cash generation strength and profita-

ble  operations,  we  distributed  TRY812 

million  in  dividends  to  our  sharehold-

ers, which corresponds to the highest 

rate permitted by legislation.

Despite the challenges of 

the COVID-19 pandemic, we 

strengthened our subscriber base
In  a  period,  when  the  effects  of  the 

pandemic were deeply felt, we stood 

by our customers with our wide range 

of offers, additional benefits and cam-

paigns  that  addressed  the  changing 
customer needs through an innovative 
and value creation focused approach. 

In particular, we responded to the ris-

ing  data  usage  demand  via  products 
and  services  offered  over  our  mobile 
and  fixed  networks.  Consequently,  as 

our  customers  appreciated  our  value 

While  our  postpaid  subscriber  base 

expanded  strongly  with  1.6  net  annu-

al additions, the share of our postpaid 
subscribers in total mobile subscribers 
reached  66%.  Mobile  blended  ARPU 

(excluding  M2M)  rose  15.0%  reach-

ing  TRY49.1  driven  mainly  by  growing 

postpaid  subscriber  base,  rising  data 

and  digital  service  usage  and  upsell 

efforts.

Demand for our fixed offers was also 

strong in 2020, as our customers spent 

more  time  at  home.  While  we  regis-

tered net 180 thousand fiber subscrib-

er additions, our total fixed subscriber 
base exceeded 2.4 million. Residential 
fiber  ARPU  rose  by  9.2%  to  TRY70.9. 

Superbox,  our  product  offering  unin-

terrupted  household  internet  service 

at  fiber  speeds  over  the  mobile  net-

work,  became  one  of  our  most  suc-

cessful products of 2020 amid rapidly 

growing demand for fixed broadband. 

In 2020, where the importance of fast 

and  high-quality  household  internet 

service  became  ever  clearer,  Super-

box  reached  591  thousand  total  sub-

scribers  with  268  thousand  net  sub-

scriber additions, successfully meeting 

strong  customer  demand.  Our  IPTV 

subscriber base also rose to 871 thou-

sand  subscribers  with  152  thousand 

net additions  this year.

We met the rising digital needs of 

our customers via our three strategic 

focus areas
In  2020,  we  continued  to  serve  our 

customers  with  our  innovative  and 

inclusive  digital  services  developed 

by  Turkish  engineers.  Our  standalone 

digital  services  revenue  rose  26%  for 

the year. In a period of increased time 

spent  at  home,  we  stood  by  our  cus-

tomers with our digital service portfo-

As the largest 
data center 
operator of 
Turkey, we offered 
our more than 
1,600 corporate 
customers the 
opportunity to 
manage their 
data remotely, 
supporting 
their business 
continuity. 

lio. We made their time at home more 
enjoyable  by  offering  digital  experi-
ence over TV+, fizy, lifebox and Dergi-

lik  platforms,  while  enabling  them  to 

make video calls with their loved ones 

via  BiP.  We  continued  to  develop  our 

digital portfolio by adding various new 

features and services this year as well. 

We also established separate compa-

nies for BiP, TV+, fizy and lifebox servic-

es marking a significant milestone for 

their  competition  strategies.  Through 

our  product,  TV+  Ready,  we  offered 

the opportunity to turn every television 

into a smart TV thanks to the embed-

ded  TV+  application.  We  introduced 

the  Turkcell  Digital  Security  service  to 

address  continuously  rising  internet 

usage  so  as  to  ensure  the  security  of 

our consumer segment customers. We 

also added the lifebox transfer service 

to our portfolio, allowing users to eas-

ily and securely share files. We began 

to offer YaaniMail e-mail service to our 

corporate customers this year, provid-

ing uninterrupted service over our data 

centers.  Meanwhile,  as  remote  work-

ing practices led to increased demand 

for video conferencing, we developed 

the  BiP  Meet  application  to  meet  this 

need, and offered it to our customers. 
We  felt  proud  as  12th  Ambassadors 
Summit  was  held  digitally  over  BiP 

Meet, developed by Turkish engineers. 

Moreover,  we  established  a  private 

closed platform for ASELSAN over BiP, 
ensuring  that  the  intra-company  cor-

respondence  of  around  8  thousand 

employees  is  conducted  securely.  Re-

cently rising concerns over data priva-

cy resulted in greater demand for the 

BiP application, where all user data is 

stored at high security data centers of 

Turkcell  located  in  Turkey.  In  the  first 

two months of 2021, BiP registered 27 

million new users. We continued to ex-

port the digital services we developed 

in  2020.  As  part  of  our  collaboration 

with  Digicel,  our  BiP,  TV+,  lifebox  and 

Fast Login services are currently being 

used in 32 countries, including the Car-

ibbean,  Central  America  and  Pacific 

regions.

The revenue of digital business servic-

es,  one  of  our  strategic  focus  areas, 
and  with  which  we  accompany  pri-
vate companies and public institutions 

on their digital transformation journeys 

increased  by  30%  in  2020.  We  suc-

cessfully  met  the  increased  demand 

for new generation technologies such 

as  data  center,  cloud,  cyber  security, 

managed  services,  system  integration 

projects, internet of things, large data 

and  business  applications,  in  addition 

to  the  conventional  telecom  services 

in  our  portfolio.  We  took  the  lead  in 

corporate  digital  transformations  by 

being  awarded  over  2,300  projects 

with  a  total  contract  value  of  TRY1 

billion  in  2020.  Of  these,  420  were 

system  integration  projects  for  which 

we  provided  end-to-end  solutions. 

We  have  a  backlog  in  the  amount  of 

TRY967  million  from  the  system  inte-

gration projects signed to date. As the 
largest data center operator of Turkey, 
we  offered  our  more  than  1,600  cor-

porate  customers  the  opportunity  to 

manage their data remotely, support-

ing  their  business  continuity.  We  put 

into  use  the  cloud  section  of  Ankara 

Temelli  Data  Center,  Turkey’s  largest 

data  center,  launching  “Government 

Cloud” specifically designed for public 

institutions.  Meanwhile,  having  imple-

mented  the  technological  infrastruc-
ture  of  4  new  hospitals  in  the  health 
sector,  two  of  which  are  field  hospi-
tals,  we  reached  a  bed  capacity  of 
over 8 thousand at 9 hospitals in total, 
also continuing our market leadership 

of  this  sector.  Additionally,  this  year, 

we  increased  the  number  of  glob-

al  vendor  partnerships  to  21  through 

strengthened  cooperation.  By  further 

increasing  our  competencies  in  this 

field  over  the  coming  period,  we  will 

remain the digital transformation part-

ner  of  corporations  and  become  the 
leader in the information technologies 
market.

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
42

While 
participating 
in studies both 
locally and at 
the international 
level towards 
bringing the 
technology of 
the future to our 
customers, we 
work towards 
making our 
infrastructure 
ready for the 5G 
transition.

On the techfin front, our third strategic 

billion free cash flow from our opera-

distance  learning  practices  made  the 

toral NGOs, we feel the pride of rep-

the  share  transfer  transactions  com-

focus  area,  we  helped  our  customers 

to complete all their payment transac-

tions swiftly and securely via our new 

tions  in  2020.  Thus,  despite  exchange 
rate fluctuations, our net debt to EBIT-
DA  ratio  improved  by  0.2x  and  de-

generation payment platform, Paycell, 

clined  to  0.8x  by  the  end  of  the  year. 

importance of access to fiber connec-

resenting Turkey on international plat-

pleted  in  October.  I  consider  this  sig-

tions  more  apparent.  Therefore,  fiber 

access, which is essential to the digital 

transformation of our country and the 

forms.  Accordingly,  we  are  among 
the  founding  members  of  the  United 
Nations  Global  Compact  CFO  Task 

nificant  development  that  led  to  a 
simplified shareholding structure to be 
a  milestone  in  Turkcell’s  history.  I  also 

in the pandemic period, during which 

The foreign currency cash we hold and 

transition  to  5G  technology,  remains 

Force,  an  initiative  that  guides  the  fi-

believe that our Company will contin-

payment habits changed and the de-

the  derivatives  instruments  we  use  to 

as  a  priority  issue  for  our  industry.  As 

nancial  leaders  of  global  companies 

ue  to  deliver  strong  operational  per-

mand  for  digital  payment  services 

mitigate foreign currency risk support-

Turkcell,  we  believe  in  the  need  to 

in  the  field  of  sustainable  finance. 

formance,  and  sustainable  and  prof-

rose.  Our  3-month  active  subscribers 

ed our strong net income performance.

rapidly  implement  a  shared  model  in 

We contributed to the drafting of the 

itable  growth  in  this  new  era  entered 

using the Paycell application, differen-

tiated  by  its  ease  of  use  and  secure 

payment  infrastructure,  reached  4.7 

million.  Thanks  to  the  “Ready-to-use 

Limit” feature added to Paycell in July, 

users can spend their mobile payment 

limits  over  their  Paycell  cards.  Ready-

to-use-Limit reached 190 thousand in-

dividual  users  and  a  total  volume  of 

TRY85  million  by  the  end  of  the  year. 

The transaction volume on the Payce-

ll  card  more  than  doubled  compared 

to  the  same  period  of  the  previous 

year. Digital content purchases rose by 

70% compared to the previous year to 

TRY84  million  per  month.  In  2020,  we 

took an important step to ensure that 

the 24/7 money transfer service to the 

IBAN  numbers  of  contracted  banks. 

We also added the mobile POS prod-

uct  this  year  to  the  Paycell  merchant 

solutions.  Having  been  registered  by 

the  Ministry  of  Treasury  and  Finance 

and  the  Revenue  Administration,  Pay-

cell  Android  POS  offers  cost  and  ef-

ficiency advantages to member mer-

chants,  while  providing  the  processes 
inventory  monitoring 
of  collection, 

and  e-invoice  over  a  single  platform. 

Moreover,  the  total  sapling  donation 

to the Paycell Forest project, which we 

implemented as part of the Breath to 

the  Future  project  of  the  Ministry  of 

Agriculture  and  Forestry,  exceeded  11 

thousand.

We continued to generate cash
Thanks to our strong operational per-

formance,  disciplined  cost  manage-

ment practices, and effective working 
capital  management  and  efficient 
capex planning, we generated TRY3.4 

We continued to invest in projects 

that will drive the future
One  of  the  major  topics  of  the  up-

coming  period  will  be  5G  technology. 
Having  commenced  use  in  over  60 
countries,  5G  technology  will  play  an 

important  role  in  the  digital  transfor-

mation of institutions and sectors with 

the novel services it has to offer. While 

participating  in  studies  both  locally 

and at the international level towards 

bringing  the  technology  of  the  future 

to  our  customers,  we  work  towards 

making  our  infrastructure  ready  for 

the  5G  transition.  Within  this  frame-

work, we take part in a diversity of 5G 
projects of international technological 
organizations such as those of NGMN, 

GSMA,  and  ITU.  Additionally,  this  year, 

we also continued our support for the 

“End-to-End  Domestic  and  National 

5G  Communication  Network  Project” 

established  under  the  leadership  of 

the  Information  and  Communication 

Technologies  Authority  and  with  the 

support  of  TÜBİTAK,  together  with 

Communication  Technologies  Cluster 
firms. 

During the pandemic period, our cus-

tomers’ need for fast and high-quality 
Wi-Fi  service  increased.  We  signifi-
cantly  improved  indoor  internet  cov-

erage through the Wi-Fi 6 technology 

that  we  implemented  this  year,  and 

initially  used  in  households  in  Turkey. 

Duly,  we  ensured  internet  usage  of 

uniform  quality  throughout  the  home 

by  preventing  speed  cuts  caused  by 

building structure.

The increased time spent at home, and 

the adaptation of remote working and 

infrastructure investments so as to op-

Principles  for  Integrated  Sustainable 

into  with  Turkey  Wealth  Fund,  which 

timize use of our country’s resources. In 

Development  Goals  Investments  and 

expressed  its  confidence  in,  and  sup-

this respect, we believe that instead of 

Finance  together  with  42  internation-

port for our strategy on all platforms.

competing on infrastructure, we could 

al  companies  from  diverse  sectors. 

invest  our  resources  in  services  and 

projects,  which  could  create  greater 

value for our country.

We focused on our 
sustainability activities
As  Turkcell,  we  attach  priority  to  cre-

ating sustainable value, realizing social 
responsibility  projects  and  leveraging 
the  power  of  technology  and  com-

These  principles  were  announced  to 
the  world  at  the  75th  session  of  the 
UN  General  Assembly  meeting  held 

in  New  York  in  September.  Moreover, 

registering a first in the sector, we of-

fered our employees GSMA “Sustaina-

ble  Business  Development  in  the  Mo-

bile Sector” online training.

And so in leaving 2020 behind, a year 

that  emphasized  communication  and 

technology  as  being  an  indispensa-

ble  human  right,  I  wish  to  thank  all 
our employees for their contribution to 
our  success,  and  our  Board  of  Direc-

tors  for  their  confidence  and  support. 

I would like to express gratitude to our 

customers and business partners who 

We  continued  to  utilize  sustainability 

have remained with us throughout our 

munication  to  create  social  bene-

financing instruments this year as well. 

success story.

fit.  The  educational  projects  that  we 

In  this  context,  we  signed  a  5-year 

conduct  leveraging  our  technological 

maturity  EUR50  million  green  loan  fi-

competencies  with  a  commitment  to 

equal  opportunities,  support  achiev-

ing Sustainable Development Goals. In 

nancing  agreement  with  ING  Bank. 
This agreement marks the longest ma-
turity corporate green loan agreement 

this  respect,  as  part  of  People  with-

thus  far  signed  in  Turkey.  We  plan  to 

out  Boundaries  project,  we  continue 

utilize  the  credit  for  the  financing  of 

to  offer  diverse  solutions  to  people 

our sustainable investments.

While celebrating the 20th anniversary 
of being listed on both Borsa Istanbul 

and the New York Stock Exchange, we 

are  to  pioneer  our  sector  adapting  a 

new  reporting  structure.  I  am,  there-

fore,  delighted  to  present  to  you,  our 

valuable  stakeholders,  the  first  Inte-

grated  Report  of  Turkcell  and  of  our 

with  disabilities  enabling  them  the 

opportunity  to  participate  in  daily  life 

equally.  We  support  the  education  of 

students  with  our  Whiz  Kids  project 

that  makes  a  difference  with  its  rich 
content,  while  we  raise  awareness 

regarding  electronic    waste  via  our 

Recycle  into  Education  project.  Going 

forward,  we  will  continue  to  leverage 

technology  to  support  our  people  in 

realizing  their  potential,  to  eliminate 

social  barriers  and  to  ensure  social 

equality of opportunity. 

We  view  national  and  international 
non-governmental  organizations  as 

among  the  most  valuable  business 

partners  in  our  ecosystem.  In  this  re-

gard,  while  carrying  out  projects  in 
cooperation  with  national  and  sec-

The  importance  we  attach  to  human 

sector. As Turkcell senior management, 

resources has been one of the signifi-

we have paid the utmost attention to 

cant values of Turkcell since its estab-

implementing IIRC Framework require-

lishment. While making an investment 
into  the  intellectual  capital  and  local 
development  of  our  country  via  the 

ments, in preparing our 2020 integrat-

ed  annual  report.  Accordingly,  we  are 

proud  to  present  our  first  integrated 

“Stars  Are  Back”  recruitment  project, 

report to you, our valuable stakehold-

we  offered  10,010  university  students 

ers.  I firmly hope that 2021 becomes a 

and new graduates the opportunity to 

year in which we all look to the future 

gain  experience  at  Turkcell  and  steer 

in good health and confidence.

their future through the “Unlimited Tal-

Sincerely,

ent Program”.

A new era began for Turkcell with 

simplification of its shareholding 

structure
Turkey Wealth Fund became the larg-

est and controlling shareholder of our 
Company  with  a  26.2%  stake  through 

Murat Erkan

Chief Executive Officer

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
44

About Turkcell

Executive Officers

Executive Officers

05:32

Murat Erkan

Osman Yılmaz

Serhat Demir

Kadri Özdal

Ceyhun Özata

Fatih Alper Ergenekon

Ataç Tansuğ

Serkan Öztürk

Gediz Sezgin

Ali Türk

Murat Erkan
Chief Executive Officer

Murat Erkan was appointed as Turk-

fense industry and industrial products 

cell Chief Executive Officer on March 

sectors  starting  from  2006.  Murat 

15, 2019. Mr. Erkan, who started his ca-

Erkan  joined  Turkcell  Group  in  June 

reer at Toshiba, worked as an Appli-

2008  as  the  General  Manager  of 

cation Engineer at Biltam Mühendislik 

Turkcell Superonline, and he assumed 

and  then  served  as  the  first  “System 

the role of Executive Vice President of 

Engineer” of Turkey at Cisco Turkey. He 

Sales from December 2015 to March 

served as Chief Officer at Cisco Sys-

2019.  Murat  Erkan  graduated  from 

tems  in  charge  of  Technology,  Sales, 

Yıldız  Technical  University  Electronics 

Business  development  and  Channel 

and  Telecommunication  Engineering 

Management. Mr. Erkan served as the 

Department. He completed the Stra-

Business  Unit  Manager  at  Aneltech 

tegic  Marketing  Program  at  Harvard 

working on solutions related to tele-

Business School in 2010.

communications, mobile, ICT, the de-

Osman Yılmaz
Executive Vice President 

Finance (CFO)

Osman  Yılmaz  was  appointed  as 

Asset  Management.  In  August  2016, 

Turkcell  Chief  Financial  Officer  on 

he  joined  Turkcell  family  as  Director 

August  1,  2018.  Mr.  Yılmaz  started 

of Treasury, Risk and Collection Man-

his  professional  career  at  Türkiye 

agement. Mr. Yılmaz holds a dual BSc 

İş  Bankası  Treasury  Department  in 

degree  in  Economics  and  Manage-

2006.  In  2007,  he  worked  at  BNP/
TEB Treasury Department. From 2008 

ment  from  London  School  of  Eco-
nomics  and  Istanbul  Bilgi  University, 

to  2016,  he  served  as  Senior  Fund 

MSc  in  Financial  Engineering  from 

Manager  in  Structured  Products  and 

Boğaziçi  University  and  a  PhD  in  Fi-

Group  Head  of  Fixed  Income  and 

nance from Özyeğin University.

Multi  Asset  Funds  at  HSBC  Global 

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

45

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46

Serhat Demir
Executive Vice President 

Legal and Regulation

Serhat  Demir  joined  Turkcell  as  the 

Between  2009  and  2015,  Mr.  Demir 

Executive Vice President of Legal and 

undertook Çalık Holding Legal Affairs 

Regulation  Function  on  May  18,  2015. 

Director  role  and  in  the  meantime 

In addition to his current role, he has 

he  also  served  as  member  of  Board 

been also serving as acting Executive 

of  Directors  at  holding  level  and  at 

Vice  President  of  Human  Resources 

group  companies  that  operated  in 

since March 16, 2020. Mr. Demir start-

telecom  and  finance  fields  in  Turkey 

ed  his  professional  career  in  1997  at 

and abroad. Serhat Demir graduated 

Dun  &  Bradstreet  Turkey  office.  From 

from  the  Faculty  of  Law  at  Istanbul 

2003  to  2007  he  worked  at  Yıldız 

University.  He  received  his  MBA  de-

Holding  Legal  Consultancy  Depart-

gree  from  Fatih  University  and  com-

ment  and  in  2007  he  served  as  the 

pleted  Executive  Education  Program 

Legal  Counsel  at  Çalık  Holding  A.Ş. 

at Harvard Law School.

Kadri Özdal
Executive Vice President 

Consumer Sales

Kadri  Özdal  was  appointed  as  the 

Özdal  took  part  in  foundation  and 

Executive  Vice  President  of  Con-

management of n11.com which is one 

sumer  Sales  on  September  26,  2019. 

of the largest e-commerce platforms 

He  started  his  professional  career 

in  Turkey  and  held  CSO  role.  In  Feb-

at  Vodafone  in  1999  and  worked  in 

ruary  2016,  he  joined  Turkcell  as  Al-

sales, marketing and commercial op-
erations departments. He then joined 

ternative Sales Channels Director and 
managed  non-exclusive  and  digital 

Turk  Telekom  and  held  positions  in 

sales  channels,  finally  having  served 

sales  development,  channel  optimi-

as  Retail  Channels  Sales  Director. 

zation  and  management  functions. 

Kadri  Özdal  graduated  from  Dokuz 

He  served  as  sales  development  di-

Eylül University, Faculty of Economics 

rector and then as CSO from 2011 to 

and Administrative Sciences, Depart-

2012.  Between  2012  and  2016,  Kadri 

ment of Public Administration.

Ceyhun Özata
Executive Vice President 

Corporate and Residential Sales

Ceyhun Özata was appointed as the 

Direct  Sales  Director,  and  Marketing 

Executive Vice President of Corporate 

Director positions at Turkcell Superon-

and  Residential  Sales  on  September 

line. From 2008 to 2015, he served as 

26,  2019.  He  started  his  professional 

the  Vice  President  of  Retail  Sales  at 

career  at  Reuters  and  worked  as  a 

Turkcell  Superonline  which  acceler-

Customer  Advisor  from  1995  to  1996. 

ated  fiber  infrastructure  investments. 

He  held  Assistant  Manager  of  Cus-

Lastly, he served as the Sales Director 

tomer Operations role at Superonline 

of Turkcell Residential and Small Me-

from 1996 to 1999. He served as a CRM 

dium  Business  Management  starting 

and  Product  Management  Manager 

from  2015  until  his  most  recent  as-

at IXIR AŞ from 1999 to 2001. Starting 

signment.  Ceyhun  Özata  graduated 

from 2002, Özata held Project Man-

from Boğaziçi University, Department 

ager,  Online  Sales  Manager,  CRM  & 

of Electronics.

Fatih Alper Ergenekon
Executive Vice President  

Marketing

Fatih  Alper  Ergenekon,  was  appoint-

headquarters in Memphis, Tennessee 

ed  as  the  Executive  Vice  President 

between  2002-2005.  He  joined  the 

of  Marketing  on  April  29,  2020.  He 

Marketing  Department  of  Turkcell  in 

started  his  professional  career  as 

2005 and was appointed as Market-

a  project  manager  at  OTA  NGO  in 

ing  Manager  in  2006  and  Marketing 

Berlin,  Germany  in  1996.  He  worked 
as  a  consultant  at  I-BIMSA  between 

Director  in  2010.  Lastly,  he  served  as 
Strategy  Director  starting  from  Sep-

1997-2000.  After  getting  his  Master 

tember  2018.    Fatih  Alper  Ergenekon 

of  Business  Administration  degree 

received  his  Bachelor’s  degree  in  In-

from the University of Rochester, New 

dustrial  Engineering  from  the  Middle 

York  in  2002,  he  worked  as  a  Senior 

East Technical University in 1996.

Marketing  Specialist  at  FedEx  USA 

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
48

Ataç Tansuğ
Executive Vice President 

Digital Services and Solutions

Ataç  Tansuğ  was  appointed  as  the 

baijan  and  Global  Customer  Service 

Executive  Vice  President  of  Digital 

Director role in his last two years in the 

Services and Solutions on September 

company. He joined Turkcell Group as 

26,  2019.  Mr.  Tansuğ  started  his  pro-

the Chief Technology Officer of Turk-

fessional  career  as  System  Support 

cell Superonline in 2013. Later he was 

Engineer at Datapro in 1999. Between 

appointed  as  Transmission  &  Core 

2002 and 2009, he served as Interna-

Network  Planning  Director  at  Turkcell 

tional  NGN/IMS  Service  Support  En-

in 2016. Lastly, he held Digital Services 

gineer,  Team  Leader  and  Team  Man-

&  Solutions  Technology  Director  po-

ager  in  Alcatel-Lucent.  From  2009  to 

sition  at  Turkcell.  He  graduated  from 

2011, he held Product Service Director 

the Department of Civil Engineering at 

role  responsible  for  Turkey  and  Azer-

Boğaziçi University.

Serkan Öztürk
Executive Vice President 

Information and Communication Technologies

Serkan  Öztürk  was  appointed  as  the 

as  Chief 

Information  Technologies 

Executive  Vice  President  of  Informa-

Officer  in  life-Ukraine  between  2009 

tion and Communication Technologies 
in September 2015. Between 2017 and 
2019,  he  also  served  as  the  Executive 

Vice  President  of  Customer  Experi-
ence  in  addition  to  his  existing  role. 
Serkan Öztürk joined Turkcell in 2000 
as a Project Supervisor. He worked as 

and  2010  and  in  Turkcell  Superonline 

between  2010  and  2011.  From  2011  to 

2015  he  served  as  Turkcell  Customer 

Relations  Management  and  Business 
Intelligence  Solutions  (CRM  &  BIS)  Di-

rector. Serkan Öztürk graduated from 
Middle East Technical University Elec-

project  supervisor  and  manager  at 

trical and Electronics Engineering de-

Turkcell  Project  Management  Office 

partment. He received his MBA degree 

between  2000  and  2009.  He  served 

from Istanbul University.

Gediz Sezgin
Executive Vice President 

Network Technologies

Gediz  Sezgin  joined  Turkcell  as  a 

vice  Network  under  the  ICT  Function 

Network  Engineer  in  1995.  In  Octo-

and  held  various  executive  positions 

ber  2015,  he  was  appointed  as  the 

in the Technology Function. Mr. Sezgin 

Executive  Vice  President  of  Network 

started his career at Alcatel Teletaş in 

Technologies. Previously, he served as 

1991. He graduated from Istanbul Tech-

Senior  Vice  President  of  Information 

nical  University  Electronics  and  Com-

and  Communication  Technologies, 

munication  Engineering  Department 

Chief Information and Communication 

and received his Master’s Degree and 

Technologies  Officer,  Director  of  Ap-

PhD from the same university.

plication  Operations,  Director  of  Ser-

Ali Türk
Executive Vice President 

Supply Chain Management

Ali  Türk  joined  Turkcell  as  the  Senior 

he  worked  at  Ceva  Lojistik  as  Ware-

Vice  President  of  Supply  Chain  Man-

house  and  Value  Added  Operations 

agement  in  May  2016.  He  was  ap-

pointed  as  the  Executive  Vice  Presi-

Group Manager. Mr. Türk joined Turk-
ish Airlines in 2011 as Cargo Operations 

dent of Supply Chain Management in 
March 2017. Mr. Türk started his career 
at  Başak  Hayat  Sigorta  in  1999.  From 

Vice  President.  He  was  appointed 

as  Turkish  Airlines  Cargo  Operations 
President  in  2012.  Ali  Türk  graduated 

2002 to 2007, he held various mana-

from  Istanbul  Technical  University  In-

gerial  positions  responsible  for  logis-

tics  planning,  warehouse  and  supply 
chain management processes at Ülker 
Group companies. From 2007 to 2011, 

dustrial  Engineering  Department  and 
completed Executive MBA program of 
Istanbul Technical University

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
50

About Turkcell

Top Management 
of Subsidiaries

Murat Erkan
Chief Executive Officer
Please see page 45 for detailed CV.

İsmet Yazıcı
General Manager of 

lifecell Ukraine

İsmet  Yazıcı  joined  Turkcell  in  2009. 

al  Sales  Engineer,  Romania  Country 

Mr.  Yazıcı  has  been  serving  as  the 

Manager,  Product  Marketing  Man-

General Manager of lifecell, Turkcell’s 

ager,  EMEA  Region  CDMA  Business 

subsidiary in Ukraine, since May 2017. 

Development Director, and Enterprise 

Prior  to  this  position,  Yazıcı  worked 

Leader,  respectively,  at  the  Turkey 

as  the  Deputy  General  Manager  of 

and USA offices of Nortel until 2009. 

Sales  and  Business  Development  at 
Global  Tower  between  2009  and 

İsmet  Yazıcı  received  his  bachelor’s 
degree  in  Electrical-Electronics  En-

2010. He served as the General Man-

gineering  from  Hacettepe  University 

ager  of  Global  Tower  between  2010 

in 1992, and his postgraduate degree 

and 2011. From 2011 to 2015, he served 

in  Political  Science  from  Marmara 

as  the  General  Manager  at  BeST, 

University  in  1998  and  in  Internation-

Turkcell’s  subsidiary  in  Belarus,  and 

al  Marketing  and  Management  from 

as  General  Manager  at  Kuzey  Kıbrıs 

the University of Texas in 2001. In 2011, 

Turkcell  between  2015  and  2017.  Be-

he  received  his  second  undergradu-

ginning  his  professional  career  in 

ate  degree  from  Istanbul  University, 

1993, Yazıcı served as the Research & 

Faculty of Law.

Development  Engineer,  Internation-

Erdal Yayla
General Manager of BeST

BeST  General  Manager  Erdal  Yayla 

ager  role  starting  from  November 

joined  Turkcell  İletişim  Hizmetleri  A.Ş. 

2018  until  March  2020  in  addition  to 

as a Financial Controller & Reporting 

his  existing  responsibility.  Mr.  Yay-

Specialist  in  2003.  He  served  as  the 

la  serves  as  BeST  General  Manager 

Manager  of  Financial  Accounting, 

since  March  2020.  Mr.  Yayla  start-

Controlling  and  Reporting  Depart-

ed  his  career  as  a  Senior  Auditor  at 

ment  (2004-2010),  Deputy  General 

PricewaterhouseCoopers in 1999, and 

Manager of Finance (2010-2016) and 

then worked as a Financial Controller 

Acting General Manager (2014-2015), 

at LafargeHolcim in 2002. Erdal Yayla 

respectively  at  lifecell,  Turkcell’s  sub-

graduated  from  Marmara  University 

sidiary  in  Ukraine.  He  served  as  the 

Faculty  of  Economics  and  Adminis-

Deputy General Manager of Finance 

trative Sciences in 1999 and complet-

at BeST, Turkcell’s subsidiary in Bela-

ed  the  Executive  Development  Pro-

rus, starting from March 2016, and he 

gram at Wharton School in 2016.

assumed  the  Acting  General  Man-

Çağatay Aynur
General Manager of

Turkcell Global Bilgi

Çağatay Aynur joined Turkcell Group 

Corporate Sales Director in charge of 

in 2000. On July 1, 2015, he was ap-

Large  Scale  Businesses  and  Corpo-

pointed  as  the  General  Manager  of 

rate Sales Director in charge of Mid-

Turkcell Global Bilgi. Prior to this role, 

Scale Businesses at Turkcell. Mr. Aynur 

he  served  as  the  Regional  Manag-

graduated from Department of Met-

er  in  charge  of  Strategic  Customers 

allurgical  Engineering  at  Middle  East 

and  Public  Affairs,  Sales  Manager  in 
charge  of  Large  Scale  Businesses, 

Technical University in 1993.

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52

About Turkcell

Z. Korhan Bilek
General Manager of 

Turkcell Finansman

Korhan  Bilek  joined  Turkcell  team  as 

fourSA Turkey between 2011 and 2016. 

Investor  Relations  and  Mergers&Ac-

He  began  his  professional  life  as  Re-

quisitions  Director  in  November  2016, 

search Analyst at the Federal Reserve 

and  was  appointed  as  Treasury  and 

Bank. He served as an analyst at Ak-

Capital  Markets  Management  Direc-

Invest  between  2002  and  2004  and 

tor in December 2018. Since July 2020, 

Finance  Director  at  Sabancı  Holding 

he  serves  as  Turkcell  Finansman  AŞ 

between 2004 and 2013.  Korhan Bilek 

General Manager and Board Member. 

has a M.S. degree from Boğaziçi Uni-

Prior to Turkcell, he worked as CFO at 

versity Electrical and Electronics Engi-

Teknosa for 3 years and was a mem-

neering department, and received his 

ber of the Board of Directors at Carre-

MBA from University of Rochester.

Melike Kara
General Manager of Turkcell Payment 

and Electronic Money Services

Melike  Kara,  worked  as  a  manager 

Business  Administration  in  2004  and 

in  Turkcell  Mobile  Financial  Servic-

began  working  at  Pricewaterhouse-

es  Department  from  2011  to  2015.  In 

Coopers  Istanbul  Office  the  same 

February 2015, Ms. Kara was appoint-
ed  as  Turkcell  Ödeme  ve  Elektronik 

year. After 2 years of PwC experience, 
she held various positions in the field 

Para Hizmetleri A.Ş. General Manager. 

of  marketing  and  business  develop-

Kara graduated from the Middle East 

ment  within  Garanti  Bank  Payment 

Technical  University  Department  of 

Services business line.

Murat Küçüközdemir
General Manager of Kuzey Kıbrıs 

Turkcell (Acting)

Murat  Küçüközdemir  graduated  from 

the  Turkcell  family  in  2011  after  the 

İstanbul  Technical  University,  Depart-

acquisition of Global İletişim by Turk-

ment  of  Electronics  and  Communi-

cell  Group,  worked  as  Data  Center 

cation  Engineering  in  1992.  He  start-

and  Cloud  Information  Technologies 

ed  his  professional  life  in  1993  and 

Consultant,  Corporate  Fixed  Products 

assumed  technical  and  managerial 

Marketing  Director  and  Public  Sales 

roles  at  Telemesaj  A.Ş.,  İntelnet  A.Ş. 

Director  at  Turkcell.  In  April  1,  2019  he 

and  Elkotek  A.Ş.  companies  up  un-

was  appointed  as  the  Sales  &  Mar-

til  2005.  He  continued  his  career  as 

keting Director of Kuzey Kıbrıs Turkcell 

the  General  Manager  of  Gisad  Tel-

and effective from February 1, 2021 he 

ekom  A.Ş.  between  2005  and  2007. 

has become the Acting General Man-

Between  2007  and  2011,  he  worked 

ager.  He  completed  Insead  Business 

as  Assistant  General  Manager  and 

School  Leadership  Development  and 

General  Manager  at  Global  İletişim 

IMD  Business  School  Global  Leader-

A.Ş.. Murat Küçüközdemir, who joined 

ship programs.

Erkin Kılınç
General Manager of 

Turkcell Energy Solutions

Erkin Kılınç joined Turkcell Energy Solu-

at  Akfel  Group  (2009-2011),  as  Turkey 

tions as the General Manager in 2017. 

Sales Director at RWE (2011-2015) and 

Kılınç began his career at Ode Insula-

as  Assistant  General  Manager  at  Li-

tion as Sales Specialist in 1998. Subse-
quently,  he  served  as  Sales  Specialist 

mak  Energy  (2015-2017).  Erkin  Kılınç 
received his bachelor’s degree in Me-

at Doğan Foreign Trade&Agency Op-

chanical  Engineering  from 

Istanbul 

erations (2001-2003), as Energy Trade 

Technical University in 1998, and Exec-

Group  Manager  at  Akenerji  (2003-

utive MBA degree from Işık University 

2009), as Energy Projects Coordinator 

in 2003.

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54

Kaan Turan
General Manager of Turkcell 

Digital Business Services

Kaan  Turan  joined  Turkcell  Group  in 

Services  and  Solutions  Management 

2013.  He  serves  as  the  General  Man-

Executive  in  ATOS  Turkey,  as  Global 

ager  of  Turkcell  Digital  Business  Ser-

Large  Deals  Solution  Director  in  Sie-

vices since March 1, 2020. Prior to that 

mens AG Germany, as Service Factory 

role he worked as System Integration 

Operations  Manager,  as  Knowledge 

and IT Services Manager, Digital Inte-

Manager and as IT Architect Consult-

gration & IT Solutions Director, Strate-

ant  in  Siemens  Turkey,  respectively. 

gic  Partnership  &  Business  Develop-

Kaan  Turan  graduated  from  Middle 

ment Director and finally acting Gen-

East  Technical  University,  Department 

eral  Manager  of  Turkcell  Digital  Busi-

of Electrical – Electronics Engineering 

ness  Services  in  Turkcell.  Before  join-

in 2000.

ing  Turkcell  he  worked  as  Managed 

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About TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
56

About Turkcell

About the report

We are proud to 
present Turkcell’s first 
integrated report, 
reflecting Turkcell’s 
corporate reporting 
approach and focus 
on value creation, for 
the attention of our 
stakeholders. Going 
forward, we aim to 
present our economic, 
social, environmental, 
and corporate 
governance approach, 
strategy, business 
model, value creation 
process, performance, 
and sustainable 
business focus together 
on an annual basis 
reflecting the principles 
of transparency and 
accuracy.

Turkcell  2020  Integrated  Annual  Re-
port has been prepared in accordance 
with  Turkish  Commercial  Code  and 
Capital Markets Board’s “Communiqué 
on  Principles  Regarding  Financial  Re-
porting in the Capital Markets” (“Com-
muniqué”) No. II.14.1. The report has also 
been  prepared  with  the  guidance  of 
the  International  Integrated  Reporting 
(IR) Framework of the International In-
tegrated Reporting Council (IIRC). With 
its  2020  Integrated  Annual  Report, 
Turkcell aims to present an assessment 
to  all  stakeholders  of  its  sustainable 
value  creation  activities 
integrated 
with  its  expertise  and  management 
capabilities.  The  value  creation  focus 
presented in this report includes Turk-
cell’s assets, the resources required to 
implement  its  strategies  and  achieve 
its goals, and its approach to manag-
ing  its  capitals  and  policies.  As  stat-
ed  in  the    Framework  of  IIRC,  the 
report  content  has  been  designed 
around six capitals. Meanwhile, a ma-
teriality  approach  has  been  adopted 
by canvassing the views of key stake-
holders  in  creating  the  content  and 
structure of the integrated report, and 
also  to  support  the  effective  imple-
mentation of Turkcell’s IR strategy. 

The  terms  “Turkcell”  and  “Company” 
in the report represent Turkcell İletişim 
Hizmetleri  A.Ş.  Our  report  covers  the 
activities  realized  between  1  January 
2020 – 31 December 2020, in accord-
ance  with  the  “Core”  option  of  the 
Global Reporting Initiative (GRI). 

Please refer to the Glossary 
section of the report for the 
explanation of abbreviations 
and technical definitions used 
in the report.

investors 

This report aims to address the infor-
mation  requirements  primarily  of  our 
long-term 
(shareholders, 
bondholders, and potential investors). 
In  addition,  it  provides  information 
that  goes  beyond  financial  report-
ing  to  encompass  all  other  Turkcell 
stakeholders,  including  Turkcell  em-
ployees, customers, public institutions 
and  organizations,  and  non-govern-
mental organizations.

SDG 12.6

Turkcell  2020  Integrated  Annual  Re-
port is also a communication of pro-
gress  report  of  the  United  Nations 
Global  Compact,  to  which  Turkcell 
has been a signatory since 2007.

Through the 2020 Turkcell 
Integrated Annual Report you 
can follow the Sustainable 
Development Goals and 
Objectives, to which our 
operations contribute, with the 
Sustainable Development Goal 
and Target icons next to the text.

Turkcell  2020  Integrated  Annual  Re-
port  has  been  prepared  based  upon 
the “Comply or Explain” principle of the 
Sustainability  Principles  Compliance 
Framework,  which  entered  into  force 
on October 2, 2020 with the amend-
ment  made  to  the  Corporate  Gov-
ernance  Communiqué  by  the  Capital 
Markets Board of Turkey. You may fol-
low the list of relevant report sections 
regarding  the  items  included  in  the 
Sustainability  Principles  Compliance 
Framework  in  the  Annex-7  Sustaina-
bility  Compliance  Framework  table 
of  this  report.  In  leveraging  its  strong 
corporate  structure,  Turkcell  gives  ut-
most  importance  to  the  feedback 
and  suggestions  received  from  its 
stakeholders  as  part  of  its  value  cre-
ation journey in its home country and 
sector.  You  may  submit  all  your  opin-
ions,  questions,  and  feedback  on  our 
report  to  dahaiyibirdunya@turkcell.com.tr

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58

About Turkcell

Value 
creating 
creating 
Turkcell

Value creating Turkcell: 

Technology for life, hope for the future

Sustainability strategy

60

62

63  

Our value creation process and business model

66 

Strategic focus areas and business operations

72

76

Interactions with our stakeholders

Measuring the value created

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60

Value creating Turkcell

Strengthening our 
capitals with our core 
competencies, we 
use our value creation 
model to inform our 
stakeholders on the 
value Turkcell creates 
for our country, society, 
the regions where 
we carry out our 
operations, and for all 
our stakeholders.

With  27  years  full  of  achievements 
behind us, as Turkey’s Turkcell, we aim 
to introduce the latest technologies to 
our  country  and  people  through  our 
infrastructure  and  technology  invest-
ments, contribute to the digital trans-
formation  of  Turkey  and  enrich  every 
moment  for  our  customers  through 
our  value-added  services  and  solu-
tions.  We  have  been  working  to  cre-
ate  value  for  all  our  stakeholders  in 
Turkey  and  other  countries  since  our 
establishment.  Our  corporate  identity 
as a responsible technology company 
and our sustainable activities allow us 
to  shape  our  business  model  in  light 
of  trends  that  impact  society  and 
our  sector,  as  well  as  feedback  from 
the  stakeholders  in  our  value-chain.

We  closely  monitor  our  main  capi-
tals, the value that we create, and our 
social  contribution,  which  we  enrich 
through  our  business  operations  and 
core  competencies,  via  tangible  and 

measurable  performance  indicators. 
Strengthening  our  capitals  with  our 
core competencies, we use our value 
creation  model  to  inform  our  stake-
holders  on  the  value  Turkcell  creates 
for  our  country,  society,  the  regions 
where  we  carry  out  our  operations, 
and  for  all  our  stakeholders.  As  part 
of  our  focus  on  continuous  devel-
opment  and  progress,  we  establish 
our  value  creation  model  under  our 
main  capitals,  which  are  inputs  to 
our  operations,  and  we  present  it  for 
the  first  time  this  year  from  the  val-
ue-creation  perspective  of  integrat-
ed  management.  We  empower  the 
Turkcell  sustainability  strategy,  which 
is  among  the  key  components  of  our 
value  creation  model,  by  establish-
ing  connectivity  between  those  in-
puts  and  our  strategic  focus  areas 
and  core  competencies,  and  focus 
on  managing  the  value  we  create, 
reduce and transform across capitals.

Value creating Turkcell: Technology 
for life, hope for the future

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As  Turkcell,  our  main  goal  is  to  be 
the  leader  in  every  activity  we  car-
ry  out.  Therefore,  we  have  started 
to  use  integrated  reporting  as  our 
main  corporate  reporting  tool  as  of 
2020,  to  transparently  and  compre-
hensively  present  the  environmental, 
social,  and  corporate 
information 
demanded  by  our  investors  and  key 
stakeholders,  and  to  maintain  our 

Turkcell’s first 
integrated annual 
report aims to 
disclose the integrated 
value creation and 
transformation process 
in a comprehensive 
way in line with 
the principles of 
transparency and 
accuracy, for all 
stakeholders and in 
particular for investors.

leader  and  pioneer  position  in  the 
inter-
sector  by  closely  following 
national  trends  and  best  practices. 

In  this  respect,  we  aim  to  commu-
nicate  the  value  that  we  create  to 
our  stakeholders  not  only  from  a  fi-
nancial  perspective,  but  also  from 
social  and  environmental  perspec-
tives  more 
through 
reporting  model.
the 

transparently 

integrated 

Value creating TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
62

Value creating Turkcell

Sustainability strategy

Adaptation of 
Sustainability and its 
policies by all Turkcell 
employees, feature 
among the Company’s 
strategic goals, and
are assigned as Key 
Performance Indicators 
for everyone from the 
Chief Executive Officer 
to employees.

activities have been initiated to ensure 
that  all  employees  will  receive  train-
ing on Sustainability and ESG policies.

In  2021,  inclusive  sustainability  goals, 
which  include  renewable  energy  use 
and  installation,  increasing  women’s 
employment,  compliance  of  suppli-
ers  from  environmental,  social  and 
governance  perspectives,  the  recy-
cling  of  waste,  and  adaptation  of 
Sustainability  and  its  policies  by  all 
Turkcell  employees,  feature  among 
the  Company’s  strategic  goals,  and 
are  assigned  as  Key  Performance  In-
dicators  for  everyone  from  the  Chief 
to  employees.
Executive  Officer 

Our  Company’s  ESG  Key  Perfor-
mance  Indicators  (KPI)  such  as  gen-
der equality, use of renewable energy, 
and  employee  training  are  included 

in  our  sustainability  report,  which  we 
have  published  since  2011.  These  Key 
Performance  Indicators  are  subject 
to  BIST  SI  (Borsa  Istanbul  Sustain-
Index)  and  CDP  evaluation.
ability 

We  continue  to  establish  systems  to 
closely  monitor  sub-parameters  re-
lated  to  ESG  Key  Performance  In-
dicators.  When  the  respective  data 
can  be  verified,  we  present  such  KPIs 
together  with  local  and  internation-
al  sector  benchmarks  as    part  of  our 
Sustainability  Committee  activities.

You can access more information 
on our strategic focus areas, 
core competencies and business 
strategies in the “strategic 
initiatives” section of the report.

Our value creation process and business model

Keeping in mind 
the importance of 
sustainability initiatives 
for our country and 
the world we live 
in, we carry out our 
activities to increase 
our social contribution, 
reduce our negative 
environmental impact 
and offer innovative 
solutions to our 
customers. 

As a signatory to numerous 
international principles and 
programs such as UNGC, United 
Nations Women Empowerment 
Principles (UN WEPs), and GSMA’s 
Digital Declaration on Climate 
Change, we closely follow global 
developments in sustainability, 
taking the best practices in the 
field as a reference.

SDG 12.6

You can access more 
information on the sustainability 
initiatives that we have signed 
or contributed to in the section 
presenting the measurement of 
value created.

We  have  a  significant  potential  for 
sustainable  value-creation  as  one  of 
the leading players in the telecommu-
nications  sector.  The  telecommunica-
tions  sector  has  the  potential  to  save 
10  times  more  carbon  emissions  than 
its own carbon footprint thanks to the 
innovative  solutions  provided  to  cus-
tomers.  Furthermore,  mobile  technol-
ogies offer great benefits for equality 
of opportunities among societies, and 
for access to financial, health and ed-

ucation services by expanding smart-
phone  and  broadband  penetration, 
thereby  providing  access  to  various 
online services such as online banking.

We  enhanced  Turkcell’s  existing  sus-
tainability  strategy  in  2020  to  create 
long-term value for our society. In this 
respect, we integrated Turkcell’s supe-
rior  digital  services,  deep  experience 
in  the  sector,  core  competencies,  fo-
cus  on  the  Sustainable  Development 
Goals and the high growth potential of 
our  sector  into  the  strategy.  Turkcell’s 
sustainability  strategy  has  been  de-
veloped  in  accordance  with  our  stra-
tegic  focus  areas  and  business  strat-
egy,  by  considering  the  sustainability 
potential  of  the  telecommunications 
sector. We integrate our sustainability 
strategy  into  our  business  operations 
by  carrying  out  activities  under  three 
main sustainability focus areas, “com-
bating climate change with the power 
of  technology”,  “accessible  and  inclu-
sive  services  focused  on  human  hap-
piness”  and  “being  a  good  corporate 
citizen”,  and  we  implement  practices 
with  regards  to  these  focus  areas.

Relevant  units  of  our  Company  re-
ceived sustainability and human rights 
trainings  from  GSMA  in  2020.  In  2021, 

As part of our 2020 
integrated annual 
report, we designed 
Turkcell’s value 
creation process to 
tangibly measure 
the value-created 
and transparently 
communicate it to our 
stakeholders. Within 
the framework of 
value creation model, 
we present the main 
capitals of Turkcell via 
performance indicators 
that are enriched 
by its business 
operations and core 
competencies.

The  six  capital-based  approach 
specified  in  the  IIRC  Integrated  Re-
porting Framework has been adopt-
ed  in  establishing  our  value  creation 
process.  In  the  development  of  our 
value creation process, we organized 
integrated  thinking  focused  meet-
ings  and  workshops  with  various 
departments  of  our  Company  to  re-
flect their activities and capture their 
interactions  with  other  divisions  in 
light  of  Turkcell’s  strategic  focus  ar-
eas,  sustainability  strategy  and  core 

competencies.  We  have  identified 
the global and local trends, risks and 
opportunities that have the potential 
to  impact  our  value  creation  pro-
cess, and thus our business activities. 

As  Turkcell,  we  conduct  our  activi-
ties not in isolation, but in connection 
with  the  stakeholders  in  our  ecosys-
tem. In this respect, we have reflect-
ed the connection of our activities to 
our  stakeholders,  as  well  as  to  Sus-
tainable  Development  Goals,  with 
icons  in  our  value  creation  process.

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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64

Value creating Turkcell

Turkcell value creation process

I n p u t s

Business operations

O u t p u t s

Va l u e   c re a te d

S D G

Related stakeholders

Financial capital
• Revenues from operations
• Business model hedging
• Efficient capital allocation
• Financing diversity
• Strong and transparent financial 

management

Human capital
• Diversity, inclusiveness, and equal opportunity
• Our competent employees and career 

development

• Safe and healthy workplace environment 
• Agile teams/employees 
• Employment practices that make a difference

Intellectual capital
• Patents and R&D studies
• Entrepreneurship ecosystem, start-up and 

university collaborations
• Services and applications 
• Artificial intelligence and blockchain applications
• Being a strong brand
• Cyber security services
• Company policies

Manufactured capital
• Strong network
• Strong spectrum
• Strong fiber infrastructure 
• Data centers

Social values and relationships
• Strong communication with our employees and 

their families, our customers, our suppliers, and our 
common values

• Civil society, academy, public and corporate 

partnerships, international representation of the 
sector and our country

• Social investment projects and sponsorships
• Transparent and trust-oriented stakeholder relations

Natural capital
• Natural resources management
• Renewable energy investments and projects

M a i n   co m p ete n c i es

Strong bond
with customers

Strong
infrastructure

Advanced 
analytical
capabilities 
& technology

Strong & agile 
team

TURKCELL INTEGRATED ANNUAL REPORT 2020

Outputs

TRY29.1
billion revenue

TRY12.3
billion EBITDA

TRY6.3
billion EBIT

TRY4.2
billion net income

TRY3.4
billion free 
cash flow

1,080
R&D employees

557
patent applications

10
incubator 
collaborations

4.5G speed 
up to
1.4 Gbps

76%
 increase in 
network traffic 
rate

51%
network 
virtualization 
rate

Big Turkcell Group 
family of
24,675
people

Fiber internet 
speed up to
10 Gbps

33.4
million mobile 
subscribers (Turkey) 

47.9
million Group 
subscribers

Investment to 
social investment
projects with
1% of our
annual revenue

36.1% 
localization rate 
in our suppliers that
make up 90% of 
our purchasing 
volume

1.4 million
total training 
hours

19,409.38
t CO2e Scope 1 
emissions

440,938.58
t CO2e Scope 2
emissions

63,699.52
t CO2e Scope 3
emissions

1.6 million
kWh installed total 
renewable energy power

6.5 tons
of electronic waste 
recovered with Recycle
into Education

• Value created through sustainable growth
• Strong balance sheet 
• Market capitalization
• Dividend paid and dividend yield
• Value created for countries of operation

• Contribution to employment
• Having competent human capital - ready for the future digital world 
• Creating a strong and agile working culture
• Developing competencies to increase female employment in the technology sector
• Being a good employer

• Enhancing innovation and the entrepreneurial ecosystem with Turkcell experience
• Becoming an operator on a global level with digital operator vision
• Facilitating life by developing inclusive and value-added products and services
• Better understanding the customer through data analysis skills
• Reducing cyber security-related risk and meeting the cyber security needs of customers
• Ensuring ethical and equal business processes
• Value creation through use of open-source coding

• Offering fast, quality, and inclusive services
• Contribution to keeping Turkey’s data in Turkey
• Leadership in technology and digital transformation
• Inclusive access to information and the internet 
• Improving domestic and national technological infrastructure

• Strong corporate management
• Value created through social investment projects
• Contribution to sharing information and experience among stakeholders
• Net Promoter Score
• Adapting a responsible and ethical business mindset to the Turkcell ecosystem
• Contribution to the socio-economic and cultural development of society  
  through supporting NGOs
• Net customer additions
• Being both leading and pioneering company in the sector and country  
  through representations

• Ratio of energy consumption from renewables
• Annual energy savings
• Responsible use of resources
• Improving carbon emissions performance
• Reducing customers’ environmental impact
• Financial value created through sustainability activities
• Consumption of energy and resources due to Turkcell’s growing operations

Shareholders, Employees, Suppliers, 
International organizations

Shareholders, Employees, Suppliers, Public 
institutions, Civil society organizations, 
Autonomous organizations, International 
organizations

Employees, Consumer segment 
customers, Corporate segment customers, 
Suppliers, Public institutions, Civil society 
organizations, Autonomous organizations, 
International organizations, Media, 
Corporate social responsibility projects 
beneficiaries

Employees, Consumer segment 
customers, Corporate segment customers, 
Suppliers, Public institutions, Autonomous 
organizations, International organizations

Shareholders, Employees, Consumer 
segment customers, Corporate segment 
customers, Suppliers, Public institutions, 
Civil society organizations, Autonomous 
organizations, International organizations, 
Media, Corporate social responsibility 
projects beneficiaries

Shareholders, Suppliers, Public institutions, 
Civil society organizations, International 
organizations, Corporate social 
responsibility projects beneficiaries

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TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
66

Strategic focus areas 
and business operations

Our telecom business

In order to pursue 
sustainable and 
profitable growth, 
we focus on three 
strategic areas, namely 
digital services, digital 
business services 
and techfin services 
along with our main 
line of business, 
telecommunication 
services.

We  shape  our  business  operations 
that  support  our  value  creation  pro-
cess in accordance with our strategic 
initiatives. We digitize the lives of our 
stakeholders  by  leveraging  our  core 
competencies. In order to pursue sus-
tainable  and  profitable  growth,  we 
focus on three strategic areas, namely 
digital  services,  digital  business  ser-
vices and techfin services along with 
our  main  line  of  business,  telecom-
munication  services.  We  continue  to 
improve  our  digital  services  and  ex-
pand  them  internationally.  Through 
our digital business services, we pro-
vide  end-to-end  solutions  to  private 
sector  companies  and  public  insti-
tutions,  meeting  all  their  technologi-
cal  needs  and  assisting  in  their  dig-
ital  transformation.  We  address  the 

needs  of  these  companies  and  insti-
tutions through services ranging from 
cyber security to cloud solutions, and 
from  IoT  to  establishing  integrated  IT 
system  infrastructure.  As  part  of  our 
techfin  services  platform,  another  of 
our  Company’s  strategic  focus  area, 
we continue to expand individual and 
corporate  customer  base  of  Paycell, 
our payment system, through new in-
tegrations.

You  can  find  details  on  our  measur-
able  targets  for  achieving  success 
within  the  scope  of  our  business  op-
erations  conducted  in  line  with  our 
strategic initiatives in the relevant sec-
tions of this report. Turkcell defines the 
period  of  short-,  mid-  and  long-term 
targets as:

Ta rg et s *

We sustain our 
customer net addition 
performance thanks 
to our strategy of 
always standing by 
our customers, while 
delivering innovative 
and extensive offers 
and additional 
benefits. We met the 
fixed internet demand 
of our customers 
through new offers and 
options.

Short-term 
target
0-1 year

Medium-term 
target
1-3 years

Long-term 
target
3+ years

While 
technological  developments 
have  been  affecting  every  sector  in 
various  scales,  the  telecommunica-
tions  sector  is  one  of  the  most  im-
pacted.  The  companies  operating 
in  telecom  sector  value  the  diversity 
of  alternative  products  and  services 
achieved  through  digital  transforma-
tion  as  they  continue  to  invest  in  the 
core  business  line,  telecom  services, 
and  sustain  profitability.  In  this  re-
spect,  the  strong  customer  demand 
for  the  distinctive  mobile  and  fixed 
offers  that  we  provide  as  part  of 
our  telecom  services  continues.  We 
achieve  robust  growth  in  our  mobile 
business  on  the  back  of  increasing 
data usage, our upsell efforts and in-
creasing  share  of  postpaid  subscrib-
ers.  We  also  achieve  strong  growth 
on  the  fixed  front  with  the  rising 
number  of  fiber  and  IPTV  customers.

We  continued  to  provide  innovative 
mobile and fixed offers to our custom-
ers in 2020 as part of our telecommu-
nication  solutions  that  connect  mil-
lions to each other. Responding swift-
ly  to  changing  customer  needs  and 
executing  the  required  solutions  have 
remained our priority in the pandemic 
environment.  Plans  for  Teams,  the  in-
centives of which can be shared with 
family members or friends, and Mega 
Plans,  which  allow  annual  data  quo-
ta purchase, ranked among our new-
ly-introduced services. We sustain our 
customer  net  addition  performance 
thanks  to  our  strategy  of  always 
standing by our customers, while de-
livering innovative and extensive offers 
and  additional  benefits.  We  met  the 
fixed internet demand of our custom-
ers  through  new  offers  and  options. 

And  by  extending  smart  offers  and 
win-win propositions, we empowered 
the  usage  habits  of  our  customers, 
who have opted for greater use of our 
digital channels during the pandemic.

The  strong  demand  for  mobile  data 
usage  continued  in  2020  with  the 
growing  number  and  higher  data 
consumption  of  4.5G  subscribers. 
While  the  average  data  usage  of 
our  subscribers  rose  44%  year-on-
year and reached 13 GB in Q420, the 
data consumption of 4.5G subscribers 
reached 14.9 GB on 38% year-on-year 
rise  in  the  last  quarter  of  the  year. 

We registered strong 
mobile ARPU (except 
M2M) growth of 
15.0% in 2020 thanks 
to rising data usage, 
upsell efforts and 
the growing share of 
postpaid customers. 
We registered 9.2% 
residential fiber ARPU 
growth on the back of 
renewed value offers, 
upsell efforts, higher 
speed plans and the 
rising share of IPTV 
users.

You can find the opportunities 
identified in line with our 
strategic focus areas and core 
competencies in the strong 
corporate governance section.

* Please note that this report contains forward looking statements based on our current estimates and expectations regarding market conditions for each of our different bu-
sinesses. No assurance can be given that actual results will be consistent with such estimates and expectations. For a discussion of factors that may affect our results, see our
Annual Report on Form 20-F for 2019 filed with the U.S. Securities and Exchange Commission, and in particular, the risk factor section therein.

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Value creating TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
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68

Value creating Turkcell

Digital services

Digital business services

As the world’s first 
digital operator, we 
support private sector 
companies and public 
institutions during their 
digital transformation 
journey leveraging 
our digital business 
services, which we 
developed to offer our 
25 years of technology 
experience to our 
corporate customers.

We continue to 
work 24/7 to create 
worldwide success 
stories with OTT 
(over-the-top media 
services) brands that 
will open up to the 
world as brand-new 
companies and prove 
more attractive to 
foreign investors.

Our  digital  services  and  solutions, 
which  have  millions  of  users  world-
wide,  are  centered  on  life  and  expe-
rience.  We  continue  to  provide  solu-
tions that meet our users’ every digital 
need through our value-added digital 
services  and  solutions,  from  music  to 
TV,  personal  cloud  to  instant  commu-
nication, search engine to e-mail and 
sports to games. While these services 
positively  reflect  on  the  ARPU  levels 
of  our  users,  they  also  increase  their 
loyalty  to  Turkcell.  And  while  we  pi-
oneer  Turkey’s  digital  transformation 
thanks to our locally developed digital 
services, we also extend our expertise 
in this field beyond the borders of our 
country  through  our  subsidiaries  and 
business partners.

In order to stand out among the com-
petition  on  a  global  level,  we  estab-
lished  four  separate  companies  for 
BiP,  fizy,  TV+  and  lifebox  services  and 
they  began  their  new  journey  on  July 
1,  2020.  Going  forward,  these  ser-
vices  will  continue  to  progress  fast-
er,  stronger  and  with  greater  focus 
through 
their  own  organizational 
structures.  We  continue  to  work  24/7 
to  create  worldwide  success  stories 
with  OTT  (over-the-top  media  ser-
vices) brands that will open up to the 
world  as  brand-new  companies  and 
prove  more  attractive  to  foreign  in-
vestors. Our new companies continue 

their growth trajectories to offer digi-
tal experiences not only to their users 
in Turkey, but also to their users across 
the world.

While  our  applications,  which  do  not 
have content dependency, have users 
in 192 countries around the world, our 
content  based  applications  are  man-
aged  with  plans  to  rapidly  increase 
their  penetration.  We  are  swiftly  pro-
gressing  in  terms  of  digital  transfor-
mation  with  BiP,  fizy,  TV+  and  lifebox 
services,  developing  dozens  of  fea-
tures that are firsts in the world. More-
over, we continue to store the applica-
tion data at our own data centers as 
part  of  our  data  localization  strategy.
BiP  Meet,  the  video-conference  solu-
tion  introduced  to  Turkcell  employees 
for  test  use  as  of  June  2020,  was  in-
troduced to the end-users in October 
2020. Thus, we rapidly implemented a 
solution  that  met  the  rising  need  for 
remote  meeting  and  business  man-
agement during the pandemic.

Payment  and  access  methods  such 
as  mobile  payment,  credit  card,  ap-
plication store payment infrastructures 
and  gift  cards  at  technology  stores 
increase channel diversity for sales of 
digital  services.  We  are  able  to  offer 
an  operator  independent  digital  au-
thentication service based on different 
security and verification levels through 
Fast Login, another Turkcell solution.

their  digital 

As  part  of  our  digital  business  ser-
vices  strategic  focus  area,  we  offer 
end-to-end  value  added  services, 
that reflect customer needs, to private 
sector  companies  and  public  institu-
tions  alike,  leveraging  new  technol-
ogies  including  cloud,  cyber  security, 
Internet  of  Things,  big  data,  business 
solutions,  managed  services  and  ar-
tificial intelligence that are becoming 
increasingly important in today’s busi-
ness world in parallel to technological 
developments. As the world’s first dig-
ital operator, we support private sec-
tor  companies  and  public  institutions 
during 
transformation 
journey leveraging our digital business 
services, which we developed to offer 
our 25 years of technology experience 
to our corporate customers. The solu-
tions we offer ensure that our custom-
ers stay at the very forefront of what 
the market has to offer. We constantly 
expand  our  services  portfolio,  which 
is well-positioned to serve customers 
of  all  scales,  and  create  new  solu-
tions and offerings particularly target-
ing  small-scale  customers.  Offering 
end-to-end 
information  technology 
services,  we  provide  our  customers 
“digital transformation consultancy” at 
various scales and in different sectors 
along their digital transformation jour-
ney.  Leveraging  our  extensive  sales 
network,  strong  partner  ecosystem 

and superior infrastructure, we aim to 
be  Turkey’s  number-one  information 
technology  and  digital  solutions  pro-
vider.

Creating  value-added  solutions  that 
distinguish  us  from  the  competition 
within  the  scope  of  our  digital  busi-
ness  services,  we  serve  corporates 
with  a  brand-new  business  model 
that addresses their end-to-end tech-
nology  needs.  Meanwhile,  in  lever-
aging  our  qualified  human  capital  in 
accordance with this business model, 
we  meet  customer  needs  with  tai-
lor-made  solutions.  In  evaluating  our 
2020 business results, we observe the 
positive reflections of the changes we 
made, despite the pandemic environ-
ment that deeply impacted the global 
economy. During Turkey’s digitalization 
journey,  we  will  continue  to  provide 
end-to-end solutions to organizations 
and  our  business  partners  as  part  of 
our digital business services focus.

In  addition  to  our  strong  mobile  net-
work and approximately 50 thousand 
km  end-to-end  fiber 
infrastructure 
that  enables  us  to  deliver  superior 
quality services, we have 8 new gen-
eration data centers, 3 of which have 
Tier-3  Design  and  Operational  Sus-
tainability  certificates  received  from 
the  Uptime  Institute,  an  international 
certification institution. 

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TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
70

Value creating Turkcell

As part of the digital 
transformation 
journey of 
organizations, 
we meet all their 
needs end-to-end, 
ranging from team 
and document 
management to 
digitalization of 
financial processes 
and staff trainings, 
through Turkcell digital 
business services.

We store the entire information tech-
nologies  infrastructure  of  organiza-
tions at Turkcell data centers through 
Turkcell  Cloud  services;  we  thereby 
ensure  a  more  flexible  infrastructure 
while  reducing  their  costs.  The  cloud 
service,  which  we  provide  with  a  full 
back-up  infrastructure  at  six  data 
centers, has ISO 27017 Cloud Informa-
tion  Safety  Certification,  confirming 
our  information  security  competence. 
We are the first and only service pro-
vider in Turkey to hold this certificate. 
In  the  cyber  security  field,  another 
component  of  digital  transformation, 
we  protect  corporates  against  cyber 
threats  through  our  FIRST  and  OIC-
CERT  member  Security  Operation 
Center,  consultancy  services  such  as 
penetration  tests  and  vulnerability 
analyses,  and  a  large  cyber  security 
product portfolio. With the Turkcell IoT 
platform, that we established as part 
of our strategy to provide end-to-end 
solutions  to  institutions  and  our  busi-
ness partners, we allow companies to 
manage their equipment and machin-
ery  remotely  via  the  cloud  without 
any need for infrastructure investment, 
and  to  develop  their  solutions  on  the 

Techfin services

And with the world 
having undergone 
a rapid techfin 
transformation over 
the past decade, the 
penetration of techfin 
services and solutions 
has risen swiftly. As 
Turkcell, we have 
been pursuing our 
activities aware of this 
potential in the techfin 
field, catering to our 
customers with our 
services and solutions 
under the Paycell and 
Financell brands.

market in Turkey, where competition is 
focused on providing solutions in par-
ticular verticals, Paycell is differentiat-
ed  by  its  strong  positioning  enabled 
by  its  wide  portfolio  of  services,  and 
its  access  to  Turkcell’s  deep  technol-
ogy  expertise,  large  customer  base 
and  sales  channel.  As  part  of  its  go 
to market strategy, Paycell focuses on 
increasing  the  number  of  merchants 
through mobile POS and QR payment 
solutions,  while  making  efforts  to 
raise the number of Super App users.  

Financell,  the  leader  of  the  non-bank 
financial  sector  by  customer  num-
ber,  aims  to  contribute  to  the  digital 
transformation of Turkey by becoming 
the  financing  partner  of  Digital  Busi-
ness Services in accordance with our 
Group’s  growth  strategy  in  the  cor-
porate  segment.  Under  the  Financell 
roof,  we  offer  financing  solutions  to 
our consumer and corporate segment 
customers for their purchases of tech-
nological  products  and  services.  We 
effectively manage credit risk by con-
ducting  a  faster  credit  assessment, 
leveraging our credit risk infrastructure 
and  digital  transformation  capabil-
ities.  Meanwhile,  we  aim  to  become 
the  largest  Insurtech  player  in  Turkey 
with  the  end-to-end  digital  solutions 
of  Turkcell  Sigorta.  We  offer  innova-
tive solutions for customers’ risk man-
agement  with  fast  and  easy  access 
products.  In  this  respect,  customers 
have  the  opportunity  to  conveniently 
access and purchase insurance prod-
ucts via all Turkcell channels including 
call center, digital channels and stores.

In  the  new  digital  era,  where  the 
majority  of  interactions  have  moved 
to  digital  platforms,  many  financial 
transactions  in  daily  life  are  also  in-
creasingly  digitized.  And  with  the 
world having undergone a rapid tech-
fin transformation over the past dec-
ade, the penetration of techfin servic-
es  and  solutions  has  risen  swiftly.  As 
Turkcell,  we  have  been  pursuing  our 
activities aware of this potential in the 
techfin  field,  catering  to  our  custom-
ers with our services and solutions un-
der  the  Paycell  and  Financell  brands. 

With Paycell, our vision is to integrate 
technology  and  financial  services  in 
accordance  with  changing  customer 
needs and habits, and to enable more 
customers  to  readily  access  financial 
services  by  offering  fast  and  secure 
payment  solutions.  Factors  including 
Turkey’s  large  and  young  population, 
high  smart  device  penetration,  near-
ly  30  million  unbanked  potential  us-
ers, high prevalence of cash usage in 
shopping, rising e-commerce volumes 
and  supportive  regulatory  develop-
ments,  create  a  favorable  environ-
ment  for  increasing  the  penetration 
of  digital  payment  services  in  Turkey 
and  support  the  usage  of  solutions 
offered  by  Paycell.  Furthermore,  the 
COVID-19  pandemic,  which  has  im-
pacted the world since the beginning 
of  2020,  changed  the  payment  hab-
its  of  people  and  increased  the  de-
mand for digital payment services. As 
Paycell, we meet the digital payment 
needs  of  our  customers  through  our 
wide payment solutions portfolio, and 
thereby  facilitate  their  lives.  Accord-
ingly,  we  introduce  our  services  and 
solutions  to  our  customers  in  various 
verticals including direct carrier billing, 
bill  payment,  e-wallet,  money  trans-
fer  and  payment  facilitation  over  our 
application,  which  we  position  as  a 
Super  App.  In  the  fragmented  techfin 

IoT  platform.  Analyzing  dynamic  and 
real data through our big data servic-
es,  we  support  our  customers’  stra-
tegic  decision-making  process,  thus 
contributing  to  their  profitability  and 
efficiency. As part of the digital trans-
formation  journey  of  organizations, 
we  meet  all  their  needs  end-to-end, 
ranging  from  team  and  document 
management  to  digitalization  of  fi-
nancial  processes  and  staff  trainings, 
through  Turkcell  digital  business  ser-
vices.

In  addition  to  all  our  products  and 
services,  so  far,  we  have  implement-
ed  approximately  1,500  tailor-made 
projects  for  our  customers  in  man-
aged services and system integration 
fields,  leveraging  the  power  of  our 
business partners identified as experts 
in  their  fields,  as  well  as  our  internal 
resources,  products  and  processes. 
We  implement  digital  transformation 
projects with our consultants, who are 
experts in their fields, designing verti-
cal  solutions  that  address  the  needs 
of each sector. In the health sector, as 
an  integrator  providing  and  manag-
ing  all  required  technology  solutions 
for city hospitals, we hold the leading 
position  in  the  public-private  sector 
partnership  (PPP)  market  by  bed  ca-
pacity and hospital number. We have 
active operations at seven city hospi-
tals,  namely  Yozgat,  Adana,  Eskşehir, 
Elazığ, Bursa, Başakşehir and Tekirdağ 
City  Hospitals,  and  two  field  hospi-
tals  managing  the  entire  technology 
infrastructure  from  hardware  to  soft-
ware and from systems to operations. 
Meanwhile,  we  continue  to  grow  our 
ecosystem,  cooperating  with  sub-
contractors  and  business  partners 
in  product  /  business  development 
and  sales  with  a  win-win  approach. 
Moreover,  we  regularly  expand  the 
solutions  portfolio  that  we  offer  to 
our  customers  in  terms  of  technical 
capability  and  project  diversity  by 
establishing  partnerships  with  global 
vendors.

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

71

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72

Interactions with our stakeholders

Material topics

In light of feedback 
and suggestions 
received from our 
stakeholders, we 
continuously improve 
our processes and 
work to enhance our 
performance.

At  Turkcell,  we  work  to  provide  the 
maximum benefit to our stakeholders 
and create value. We value the views 
of  our  stakeholders  and  consider  all 
groups impacted by our activities with 
an inclusive approach to the greatest 
extent  possible.  In  light  of  the  feed-
back  and  suggestions  received  from 
our  stakeholders,  we  continuously 
improve  our  processes  and  work  to 
enhance  our  performance.  Fueled  by 
these firm ambitions, we will continue 
to create value for all our stakeholders 
in the upcoming periods.

SDG 17.17

The  fundamental  working  principles 
we  adopt  as  Turkcell  include  inclu-
siveness,  accessibility,  and  the  pro-
vision  of  transparent,  consistent,  and 
timely  information  to  the  stakehold-
ers.  We  believe  in  simultaneous  and 
open  dialogue  with  our  stakeholders, 
and  work  continuously  to  address  all 
questions  and  requests  from  them 
swiftly and accurately. In this respect, 
we  have  mapped  Turkcell’s  materi-
al  topics  in  our  materiality  matrix  by 
taking on board our stakeholders’ val-
uable views.

You can find the details of 
our communication channels 
with various stakeholders in 
Appendix-1: Communication 
channels table.

In order to identify the 
material topics that 
guide our management 
approach and 2020 
integrated annual 
report structure, we 
analyzed global 
and sectoral trends 
together with our key 
internal and external 
stakeholders’ views, 
global stakeholders’ 
reports, and the 
principles set out 
by international 
organizations such as 
GSMA, GRI and SASB.

We identified the topics of the ques-
tionnaire,  which  we  addressed  to 
our key stakeholders based on glob-
al  trends  and  by  incorporating  the 
outputs  of  workshops  with  working 
groups, which include representatives 
from  our  key  departments.  We  took 
priorities  of  our  stakeholders  into 
consideration  while  we  conducted 
a  comprehensive  stakeholder  anal-
ysis  by  reaching  out  to  our  internal 
and  external  key  stakeholder  groups 
through  the  questionnaire  to  receive 
their  opinions. We  evaluated  and  in-
terpreted  the  2020  Turkcell  materi-
al  topics,  which  we  classified  under 
environmental,  social,  governance, 
products,  and  infrastructure  topics, 
from the perspective of our strategic 
focus  areas  and  core  competencies, 

as  well  as  the  results  of  stakeholder 
analysis.  Following  this  stage,  we  in-
tegrated  these  topics  with  Turkcell’s 
sustainability  material  topics  identi-
fied in previous reporting periods. As 
part of the external trend analysis, we 
analyzed  SDGs,  the  World  Economic 
Forum Global Risks Report 2020*, and 
the  initiatives  that  guide  the  busi-
ness  world  and  mobile  communica-
tion sector. We also took the reports 
published by companies operating in 
the  same  sector  into  consideration 
in  order  to  assess  their  perspective 
on  society  and  the  sector.  Having 
integrated  the  views  of  our  senior 
management,  we  established  Turk-
cell’s  material  topics  from  an  inte-
grated  value  creation  perspective.

The process of material topic identification

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* World Economic Forum – Global Risk Report 2020, 
  http://www3.weforum.org/docs/WEF_Global_Risk_Report_2020.pdf

Value creating TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
74

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Cyber security 
and privacy

Superior digital services 
and innovation

Customer satisfaction 
and loyalty

Strong infrastructure and 
superior service quality

Being a good
corporate citizen

Fight against climate change
and effective energy management

Creating social 
value

Strong financial 
performance

Value oriented 
responsible supply chain

Effective risk 
and crisis 
management

Low

Importance for Turkcell

High

Environmental

Social

Governance

Products and infrastructure

Interaction of material topics

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group

Material 
topics

Superior digital 
services and innovation

Customer satisfaction 
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Cyber security
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Strong infrastructure and
superior service quality

Being a good 
corporate citizen

Creating 
social value

Fight against climate 
change and effective 
energy management

Strong financial 
performance

Value oriented, 
responsible supply chain

Effective risk and 
crisis nanagement

75

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Value creating TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
76

Measuring the value created

As Turkcell, we are 
sensitive to the value 
we create for society, 
the environment, 
and the economy 
in developing our 
products and services 
and conducting our 
activities. In addition to 
its positive reflection 
on our financial 
performance, we 
have the opportunity 
to observe the value 
we create through 
our relationship with 
key stakeholders such 
as our suppliers and 
customers, and through 
our social investment 
activities.

We  aim  to  obtain  more  up-to-date 
and  comparable  results  by  incorpo-
rating the views of our key stakehold-
ers,  global  and  sectoral  trends,  the 
reports  of  global  stakeholders,  and 
the recommendations of internation-
al  organizations    such  as  GSMA,  GRI 
and  SASB  in  identifying  the  material 
topics that guide our operations and 
sustainability activities.

SDG 17.16

joined  the  UNGC.  In  addition,  we 
became  a  signatory  to  the  UNGC 
“Statement  for  the  Private  Sector”  in 
2020.  We  integrate  the  10  principles 
that UNGC identified under the topics 
of  human  rights,  working  standards, 
environment  and  combating  corrup-
tion  into  our  business  processes.  We 
publish our state of adherence to the 
10  principles  in  our  UNGC  Communi-
cation  on  Progress  Report  (CoP)  an-
nually.

You can access the SDG 
mapping of our material topics 
in the Interaction with our 
Stakeholders section of this 
report.

Sustainable Development Goals 
Sustainable 
Development  Goals 
(SDGs)  were  adopted  by  the  Unit-
ed  Nations  in  2015.  They  comprise 
17  goals  and  169  targets  that  aim  to 
end  poverty,  protect  our  planet,  and 
enable  people  to  live  in  peace  and 
welfare  by  2030.  SDGs  help  corpo-
rates  to  calibrate  their  objectives  in 
line  with  the  2030  agenda.  Turkcell 
also  takes  SDGs  and  their  priorities 
into  account  while  conducting  its 
operations.  Moreover,  we  also  take 
SDGs as a guideline in identifying our 
material topics, which we renew an-
nually by considering the priorities of 
our stakeholders and of Turkcell.

In  the  integrated  annual  report,  our 
activities that contribute to SDGs are 
demonstrated  with  the  relevant  SDG 
icons  within  the  text.  Our  activities 
that  we  have  matched  with  SDGs 
contribute to either one or more tar-
gets.

United Nations Global Compact
In  2000,  the  United  Nations  Global 
Compact was established to dissem-
inate  sustainable  and  responsible 
policies,  practices,  and  reporting  in 
the  business  world.  We  are  among 
the  first  Turkish  companies  to  have 

You can access our statements 
regarding our progress on UNGC 
Principles in the UNGC progress 
table section.

Furthermore in 2020, within the scope 
of  the  75th  anniversary  of  the  United 
Nations, we supported the global co-
operation  initiative,  which  stresses 
the  point  that  ours  is  a  time  of  “un-
precedented deterioration and glob-
al  transformation”  urging  both  the 
public  and  private  sector  to  act  re-
sponsibly in the face of crises such as 
climate change, economic uncertain-
ty, social injustice, increasing disinfor-
mation  and,  in  particular,  COVID-19, 
and  advocating  immediate  initiation 
of  international  cooperation  in  these 
fields.

United Nations Women 
Empowerment Principles (UN WEPs)
We  have  been  a  signatory  to  the 
United  Nations  Women’s  Empow-
erment  Principles  since  2012  in  sup-
port  of  equal  opportunities.  Guiding 
the  activities  and  policies  of  institu-
tions  around  seven  principles  in  line 
with the 2030 goals of the SDGs, UN 
WEPs  supports  practices  that  aim 
to  empower  women  in  the  business 
environment,  such  as  equal  wage 
practices and zero tolerance against 
discrimination.

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Value creating TurkcellTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
78

About Turkcell

Strong 
corporate 
governance

84

86

Management Team support for value-creation process

Trends and their impacts

98  

Effective risk and crisis management

102 

Strategic initiatives and opportunities

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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Strong corporate governance

Demonstrating 
exemplary corporate 
citizenship 
Having a strong 
corporate management 
system enables us to 
operate at the highest 
efficiency level and to 
demonstrate exemplary 
corporate citizenship 
through compliance 
with all regulatory 
responsibilities. 
Moreover, we 
differentiate as a 
company, trusted 
by our stakeholders, 
thanks to compliance 
with domestic and 
international business 
regulations ensured 
by our Company’s 
compliance programs 
and our understanding 
of superior business 
ethics.

SDG 16.6

You can access our detailed 
explanations as to corporate 
governance in the Corporate 
Governance Principles 
Compliance Report section of 
this integrated report, which 
was previously presented within 
our annual reports.

Turkcell  is  the  only  Turkish  company 
listed on both Borsa Istanbul (BIST) and 
the New York Stock Exchange (NYSE). 
This status in the capital markets en-
ables  us  to  adopt  corporate  govern-
ance  principles  in  a  permanent  and 
optimal  way  within  the  internal  or-
ganizational structure, which confirms 
our commitment in the long-term and 
sustainable  value  that  our  effective 
corporate  processes  create.  Turkcell 
acts in accordance with sectoral reg-
ulations  and  competitive  dynamics, 
and  closely  follows  current  develop-
ments. It reports cases that may occur 
within  this  scope  with  transparency, 
while  categorizing  the  current  litiga-
tion  management  system  according 
to ESG factors is among the goals of 
future periods.

Turkey’s Turkcell has 
become stronger
Upon  completion  of  the  share 
transfer  transactions  immediately 
after  the  Ordinary  General  As-
sembly  meeting  held  on  October 
21,    Turkey  Wealth  Fund  has  be-
come  the  largest  shareholder  of 
our Company with a 26.2% stake, 
including a 15% privileged stake in 
parallel to its mission of investing 
in the strategic value of Turkey. 

shareholder 

Within 
the  scope  of  Turkey 
Wealth  Fund’s  strategy  of  sup-
porting Turkey’s strategic compa-
nies,  their  presence  as  Turkcell’s 
largest 
represents 
trust  in  Turkcell  and  its  potential 
by  emphasizing  the  importance 
of  technology  &  digitalization. 
This  change,  leading  to  a  sim-
plified  shareholding  structure  of 
Turkcell, intends to prevent poten-
tial  conflicts  of  interest  between 
shareholders  in  the  new  era,  and 
to  create  long-term  value  for  all 
shareholders.

Shareholder structure
Since 2000, Turkcell İletişim Hizmetleri 
A.Ş has been the only company, shares 
of which are traded on Borsa Istanbul 
and also on the New York Stock Exc-
hange  as  “ADS  (American  Depository 
Share)” Level III.

You can access further details 
on our shareholder structure in 
Note 1 of the IFRS report.

As a listed Company, we aim to pro-
vide  long-term  benefits  not  only  to 
our  customers,  but  also  to  all  our 
stakeholders  with  operating  at  the 
highest  standards  of  corporate  gov-
ernance practices. In this context, we 
demonstrate  exemplary  corporate 
citizenship  by  improving  our  sustain-
ability  strategy  and  value  creation 
model,  and  also  by  making  it  one  of 
our  primary  goals  to  act  in  line  with 
international  standards  in  the  fields 
of  human  rights,  business  ethics,  an-
ti-bribery and corruption, competition 
management, risk and crisis manage-
ment.

Compliance with international capital 
markets  and  effective  corporate 
governance practices
In line with our aim of being an exem-
plary  corporate  citizen,  we  oversee 
compliance  with  national  and  inter-
national  Anti-Bribery  and  Corruption 
(ABC)  standards  covering  all  our  ac-
tivities,  and  attach  importance  to 
being  a  trusted  company  for  all  our 
stakeholders.  The  Anti-Bribery  and 
Corruption  Policy,  adopted  by  the 
Board  of  Directors  in  2016,  is  among 
our  fundamental  documents  embod-
ying our combat against bribery and 
corruption  while  reflecting  the  “zero 
tolerance”  principle  of  the  Board  of 
Directors on the subject. Our ABC Pol-

Within the framework 
drawn up by the 
ABC Policy, the ABC 
Program has been 
carried out with the 
establishment of the 
Corporate Governance 
& ABC Program Office 
(ABC Office), which 
takes the necessary 
preventive measures 
to ensure compliance 
with these rules and 
provides risk-based 
trainings and internal 
communications, as of 
April 2018. 594 Turkcell 
employees received 
87 hours of ABC Policy 
training in 2020.

icy  is  publicly  available,  and  we  ex-
pect  the  entire  Turkcell  ecosystem  to 
act in line with this document. Within 
the framework drawn up by the ABC 
Policy,  the  ABC  Program  has  been 
carried  out  with  the  establishment 
of  the  Corporate  Governance  &  ABC 
Program  Office  (ABC  Office),  which 
takes the necessary preventive meas-
ures to ensure compliance with these 
rules  and  provides  risk-based  train-
ings and internal communications, as 
of  April  2018.  594  Turkcell  employees 
received 87 hours of ABC Policy train-
ing in 2020.

SDG 16.5

Turkcell due to its specifical position in 
the  capital  markets  is  putting  a  dual 
rule set into practice, within the frame-
work  of  both  Turkish  and  U.S.  capital 
markets,  particularly  on  corporate 
governance  structures  and  financial 
reporting processes. Among Turkcell’s 
effective  corporate  processes 
im-
plemented  as  part  of  those  require-
ments,  the  following  can  be  named: 
Turkcell  Board  of  Directors  and  its 
committees’ structure, operating rules 
and  independence  of  its  members; 
the effective internal control environ-
ment  regarding  the  financial  report-
ing processes based on reporting and 
disclosure liabilities before the Capital 
Markets  Board  (CMB),  U.S.  Securities 
and Exchange Commission (SEC), BIST 
and NYSE; the ethical rules applicable 
to the company’s senior management 
as  well  as  finance  executives  in  ac-
cordance with SEC; the code of con-
duct for members of the Board of Di-
rectors who are also  public officials; 
and the blackout period and the quiet 
period for the trading of shares. 

Practices  based  on  the  Public  Com-
panies  Accounting  Reform  and  In-
vestor  Protection  Act,  also  known  as 
Sarbanes-Oxley  (SOX)  Act  and  U.S. 
Foreign  Corrupt  Practices  Act  (FCPA), 
which  aim  to  improve  the  control 
mechanisms  of  companies’  financial 
reporting  while  supporting  effective 
corporate  management,  particularly 
stand  out  as  part  of  Turkcell’s  long-
term and sustainable corporate DNA.

As  of  January  2020,  Turkcell’s  Sanc-
tions  Compliance  Program  adopted 
by the Board of Directors has been put 

into effect. Within the scope of Turk-
cell’s Sanctions Compliance Program, 
as  an  example  of  good  practice,  the 
existing  processes  of  our  Company 
have been reviewed and transformed 
into  a  written  procedure  in  line  with 
international developments regarding 
economic and trade sanctions – with 
a particular focus on OFAC (Office of 
Foreign Assets Control). 

Due  to  our  dual  listing  in  the  cap-
ital  markets,  in  order  to  carry  out 
our  obligations  to  comply  with  cap-
ital  markets  regulations  and  corpo-
rate  governance  practices  that  we 
are  subject  to  under  an  autonomous 
structure  that  has  direct  access  to 
the  Board  of  Directors,  SOX  Coordi-
nation and Compliance Unit has been 
established  within  the  ABC  Office 
as  of  January  2019.  The  SOX  Coor-
dination  and  Compliance  Unit,  along 
with  monitoring  the  regulations  of 
SEC  and  Public  Company  Accounting 
Oversight  Board,  supports  corporate 
transparency and contributes to relia-
ble information disclosure to the pub-
lic  by  incorporating  good  practices 
within our Company. Accordingly, dur-
ing  the  COVID-19  and  remote  work-
ing period, necessary actions are be-
ing  taken  against  possible  risks  and 
good  practices  are  continued  to  be 
adopted  in  accordance  with  the  U.S. 
legislations  which  our  Company  and 
our  independent  auditor  complies  to 
by  following  developments  regard-
ing  our  Sarbanes  Oxley  404  internal 
control  environment  and  regulatory 
authorities’  guidelines.  Training  and 
awareness  activities  are  carried  out 
by the SOX Coordination and Compli-
ance  Unit  under  the  title  of  SOX  404 
practices  that  constitute  an  integral 
part of our employees’ way of doing 
business.  As  part  of  SOX  404  related 
activities,  12  internal  company  bulle-
tins were published and a total of 48 
hours  of  training  was  provided  to  44 
employees in 2020.

Human rights, work ethics and 
common values
The big Turkcell family and the Turkcell 
ecosystem  are  aware  of  the  impor-
tance  of  having  a  responsible  busi-
ness  model  that  complies  with  ethi-
cal standards, and that its employees 

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Strong corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
82

With the Turkcell 
Common Values and 
Code of Business 
Ethics (TODİEK) 
handbook, which was 
developed in line with 
global best practices 
and adopted by the 
Board of Directors, we 
protect our employees, 
being our family, 
and demonstrate 
exemplary ethical 
behavior across our 
ecosystem.

•  Various  initiatives  are  taken  to  en-
sure employee happiness and welfare 
such as increasing business efficiency, 
digitizing  business  processes,  facil-
itating  workplace  life  and  access  to 
business tools, finding quick solutions 
to technical and administrative prob-
lems,  providing  side  benefits  to  em-
ployees,  objectively  measuring  per-
formance. Necessary actions are tak-
en  to  ensure  the  accessibility  of  our 
platforms to our disabled employees.

• Our suppliers and business partners 
are encouraged to adopt and imple-
ment these principles, which we have 
adopted for our employees.

SDG 8.5

As declared in our Human Rights Pol-
icy,  we  respect  our  employees  “Right 
and Freedom to Assemble” and “Right 
and Freedom to Establish and Engage 
in  Union  Activities”  according  to  the 
Constitution  of  the  Republic  of  Tur-
key.  We  also  support  our  employees 
in becoming members of professional 
groups  in  their  field,  or  of  NGOs  that 
provide social benefit.

With  the  Turkcell  Common  Values 
and Code of Business Ethics (TODİEK) 
handbook,  which  was  developed  in 
line  with  global  best  practices  and 
adopted  by  the  Board  of  Directors, 
we protect our employees, being our 
family,  and  demonstrate  exemplary 
ethical  behavior  across  our  ecosys-
tem.

You can access our Human 
Rights Policy on our website.

form the basis of its success. Accord-
ingly, it implements the Human Rights 
Policy  to  create  a  work  environment 
worthy  of  human  dignity  and  value. 
Turkcell  pays  attention  to  the  ethical 
and responsible development and use 
of  the  technologies  that  it  uses  and 
will  develop  in  business  processes.  It 
aims  to  create  a  more  livable  world 
by contributing to UN Sustainable De-
velopment  Goals,  respecting  human 
dignity,  fundamental  rights  and  free-
doms in the technologies it develops, 
especially  artificial  intelligence  tech-
nology. Under this Policy;

• Employees are not assessed based 
on  their  gender,  religion,  language, 
race,  ethnic  origin,  physical  appear-
ance,  and  disability  when  making 
decisions with respect to recruitment, 
promotion, development etc.

• All kinds of discrimination and har-
assment against or between employ-
ees are opposed and no compromise 
is ever made on these issues.

• The “Right and Freedom to Assem-
ble”  and  the  “Right  to  Establish  and 
Engage in Union Activities” of our em-
ployees, as also expressed in the Con-
stitution of the Republic of Turkey, are 
respected.

•  Modern  working  environments  are 
provided,  especially  to  ensure  occu-
pational health and safety.

• Legal working hours are respected, 
and  the  work-life  balance  is  main-
tained and encouraged.

•  Measures  are  taken  against  all 
kinds of violence in the workplace or 
at  home,  and  our  policies  and  pro-
cedures,  which  form  the  basis  of  our 
corporate  management,  include  ad-
equate  and  clear  regulations  on  this 
issue.

In 2020, 24 cases 
have been examined. 
However, none of 
those 24 cases is 
related to any incidents 
violating the Turkcell 
Group Anti-Bribery and 
Corruption Policy.

Our  employees,  customers  and  suppliers  can  convey  reasonable  doubts 
and  information  regarding  cases  that  violate,  or  may  present  a  potential 
violation of business ethics to the Turkcell Ethics Committee anonymously 
through  the  Ethics  Line  (532  210  4444).  Additionally,  our  employees  can 
report cases of violations of regulations or ethically inappropriate situations 
directly  to  the  Audit  Committee  auditcommittee@turkcell.com.tr  or 
indirectly  via  our  Ethics  Committee.  They  can  use  the  Company’s  intranet, 
internal forms, telephone and e-mail etikbildirim@turkcell.com.tr.

In  2019,  42  cases  were 
reported 
through  Ethics  Channels  and  were 
reviewed.  These  cases  were  handled 
under the 3 main categories of unethi-
cal and immoral behavior, information 
security  incidents  and  financial-relat-
ed  issues.  Among  measures  taken  as 
a  result  of  the  examined  cases,  there 
were  6  terminations  of  employment. 
Out  of  42  cases,  1  was  evaluated  as 
non-material fraud and a lawsuit was 
initiated  by  the  Company.  In  2020,  24 
cases  have  been  examined.  Howev-
er,  none  of  those  24  cases  is  related 
to  any  incidents  violating  the  Turkcell 
Group  Anti-Bribery  and  Corruption 
Policy.

Competition management
Turkcell and Turkcell Group companies 
take  various  measures  to  ensure  and 
protect  effective  competition  in  the 
markets where they operate, as well as 
to carry out business and transactions 
in accordance with the relevant com-
petition law and regulations. The main 
objective of competition law is to pre-
vent  dominant  players  in  the  market 
to  abuse  their  power  by  establishing 
inter-company  agreements,  decisions 
and  practices,  which  avoids,  distorts 
or restricts fair competition. Moreover, 
the  competition  law  controls  merger 
and  acquisition  transactions  to  pre-
serve competition in the markets, and 
makes necessary regulations and con-
ducts supervision to protect competi-
tion.  In  this  context,  certain  processes 
are  followed  within  Turkcell,  including, 
but not limited to the following:

•  The  guidelines,  briefings  and  train-
ings prepared as part of the competi-
tion compliance process are examined 
by all employees.

•  In  line  with  our  general  principles, 
any verbal or written agreements and 
communications  with  competitors  on 
the following issues are avoided; price 
determination,  sharing  of  customer/
region,  sharing  of  trade  channels,  re-
striction of supply amount or initiating 
a boycott, and collusion in tenders.

• Sharing sensitive information among 
competitors is prohibited. 

• Causing difficulties for the activities 
of  competing  companies,  prevention 
of  new  entrance  to  the  market,  high 
sales  prices  and  sales  prices  below 
cost are avoided.

• Resale prices of third parties that re-
sell Turkcell products and services are 
not  interfered  in  by  Turkcell.  Recom-
mended  sales  price  notification  rules 
are precisely followed.

Turkcell and Turkcell Group companies 
act  in  all  their  markets  of  operation 
in  accordance  with  competition  rules 
under  the  Turkish  Commercial  Code, 
the Law on the Protection of Compe-
tition,  the  Electronic  Communications 
Law and secondary legislations. 

We  disclose  information  on  critical 
cases  that  Turkcell  is  a  party  to,  as 
part of our disclosures to the BIST, SEC 
and  other  related  authorities  in  com-
pliance with CMB and IFRS standards. 
In  this  context,  critical  cases  arising 
from competition law are also includ-
ed in those reports. In 2020, there is no 
preliminary  research  initiated,  or  in-
vestigation filed against our Company 
before  the  Competition  Authority  for 
alleged  violation  of  competition  reg-
ulations under the Law on the Protec-
tion of Competition.

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84

Management Team support
for value-creation process

Chaired by the 
Chairman of Turkcell 
Board of Directors, 
the Turkcell Integrated 
Value Creation 
Committee was 
established at Senior 
Management level 
to regularly report 
its activities to the 
Board of Directors and 
inform relevant Board 
Committees when 
necessary.

Turkcell’s  management  model  adopts 
the mission of creating short, medium 
and  long-term  value  with  the  sup-
port of its management team. Turkcell 
Board of Directors steers the strategic 
initiatives  of  Turkcell  in  accordance 
with  the  principles  of  accountability 
and  fulfilling  responsibility.  In  accord-
ance  with  Capital  Markets  Legisla-
tion,  the  senior  management  of  our 
Company is defined, as “Persons with 
Administrative Responsibility”  and the 
members  of  the  board  of  directors, 
and  such  persons  who,  although  not 
a  board  member,  have  the  authority 
to  regularly  access  the  insider  infor-
mation  of  the  Company  directly  or 
indirectly  and  make  administrative 
decisions affecting the future develop-
ment  and  commercial  targets  of  the 
Company. Persons with administrative 
responsibility in our Company are de-
termined  as  the  Board  Members  and 
Company Management Team.

The  business  relations  of  Turkcell  are 
governed  through  the  resolutions  of 
the Board of Directors, who represents 
the Company’s shareholders and is re-
sponsible to them. The Board of Direc-
tors consists of 9 members, who have 
general  management 
responsibility 
regarding  Turkcell’s  activities  accord-
ing to Turkcell’s Articles of Association. 
As  of  December  31,  2020  the  Board 
consisted  of  5  members.  In  accord-
ance  with  the  Articles  of  Association, 
5  out  of  9  members  are  elected  by 
TVF Bilgi Teknolojileri İletişim Hizmetleri 
Yatırım Sanayi ve Ticaret A.Ş. (TVF) us-
ing their privileged rights. Four of those 
5 members are also to be nominated 
by  TVF.  There  are  no  privileges  fore-
seen for the election of the remaining 
4  members,  including  3  independent 
board  members.  The  term  of  mem-
bership  for  the  Board  of  Directors  is 
a maximum of 3 years and the Chair-
man of the Board of Directors has no 
executive  function.  The  Chairman  of 

the Board of Directors is elected from 
among the 5 members for whom TVF 
has privileged voting rights, in accord-
ance  with  the  privileges  set  forth  in 
the  Articles  of  Association.  On  Janu-
ary  29,  2021,  our  Company’s  Board  of 
Directors decided to appoint Ms. Figen 
Kılıç  as  a  Board  Member  to  the  seat, 
which  became  vacant  following  Ms. 
Ingrid  Maria  Stenmark’s  resignation, 
pursuant  to  Article  363  of  the  Turkish 
Commercial  Code.  There  is  a  total  of 
6 members, 5 being male and 1 being 
woman member in the Turkcell Board 
of  Directors.  There  are  five  commit-
tees  established  as  per  CMB  legisla-
tion that report to the Board of Direc-
tors.  The  Board  of  Directors  publishes 
the  “Corporate  Governance  Principles 
Compliance Report” within the annual 
reports and transparently discloses in-
formation on any incompliance issues 
to our stakeholders. 

You  can  access  further  details  on  the 
Board  Committees,  their  duties  and 
members  in  the  Corporate  Govern-
ance Principles Compliance Report or 
on our website. 

Chaired  by  the  Chairman  of  Turkcell 
Board  of  Directors,  the  Turkcell  Inte-
grated Value Creation Committee was 
established  at  Senior  Management 
level  to  regularly  report  its  activities 
to  the  Board  of  Directors  and  inform 
relevant Board Committees when nec-
essary. Turkcell Senior Management is 
responsible  for  the  activities  carried 
out  as  part  of  integrated  value  crea-
tion  and  integrated  reporting,  under 
the supervision of the Turkcell Board of 
Directors. Turkcell Senior Management 
pays utmost attention to the adoption 
of  transparency  and  reliability  princi-
ples  while  overseeing  the  integrated 
value  creation  process  and  the  con-
tent  of  the  integrated  annual  report. 
The  Integrated  Value  Creation  Com-
mittee  reports  the  activities  carried 
out  within  the  scope  of  environmen-

The Turkcell 
Sustainability 
Committee reports to 
the Board of Directors 
through the Integrated 
Value Creation 
Committee on all 
activities and outputs 
carried out within the 
scope of determining 
and effectively 
implementing short 
and long-term action 
plans in line with 
environmental, social 
and governance 
policies, determining 
material sustainability 
issues, risks and 
opportunities.

tal,  social  and  governance  policies  to 
the Board of Directors and receives its 
approval, in a manner to be disclosed 
publicly through the integrated annual 
report on a yearly basis.

The following can be listed among the 
responsibilities of the Integrated Value 
Creation Committee of Turkcell Group; 

•  Providing  direction  for  report  plans 
within the scope of the integrated val-
ue creation process and the integrat-
ed report,

• Reviewing the integrated value cre-
ation  process  in  line  with  Turkcell’s 
strategy, 

• Giving direction to the content of the 
integrated  report  and  providing  opin-
ion on its draft content.

The  Turkcell  Sustainability  Commit-
tee  reports  to  the  Board  of  Directors 
through  the  Integrated  Value  Crea-
tion  Committee  on  all  activities  and 
outputs  carried  out  within  the  scope 
of  determining  and  effectively  imple-
menting  short  and  long-term  action 
plans in line with environmental, social 
and  governance  policies,  determining 
material sustainability issues, risks and 
opportunities.

Turkcell’s policies evaluated within the 
scope  of  ESG  are  established  by  the 
Sustainability and the Integrated Value 
Creation Committees, decided on and 
approved  by  our  Board  of  Directors, 
and published on the Turkcell Sustain-
ability  website.  Turkcell  Human  Rights 

Policy  and  Environmental  Policy  were 
approved  by  the  Board  of  Directors 
decision dated January 29, 2021.

https://www.turkcell.com.tr/en/abou-
tus/corporate-social-responsibility/
sustainability

The  Integrated  Value  Creation  Com-
mittee  was  established  in  order  to 
integrate  our  Company’s  ESG  policies 
with  our  short  and  long-term  goals 
and  strategies.  The  committee 
is 
chaired by the Chairman of the Board 
of Directors of the Company. The goals 
and  strategies,  which  are  determined 
by the committee, are communicated 
to  the  public  on  the  Turkcell  website 
through our integrated report and CDP 
report. 

Moreover, system infrastructure estab-
lishment  regarding  our  transition  pro-
cess to ISO 14001 Environmental Man-
agement System had been started.

Among  the  economic,  environmental 
and social agreements, principles and 
other  initiatives  that  are  supported 
by  our  senior  management  and  that 
we  are  a  signatory  to  are;  the  United 
Nations  Global  Compact  (UNGC),  the 
United  Nations  Development  Program 
Business  Call  to  Action  (UNDP  BCTA) 
Program and the United Nations Wom-
en  Empowerment  Project  (UN  WEPs), 
GSMA’s Digital Declaration on Climate 
Change, mPower Youth initiatives and 
the  Business  Council  for  Sustainable 
Development Turkey (BCSD Turkey).

Turkcell integrated value creation governance mechanism:

Board of Directors

Integrated Value 
Creation Committee

Sustainability 
Committee

Project 
Teams

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86

Trends and their impacts

2020  has  been  a  turning  point  for  the  industry  in  which  we  operate.  It  highlighted  the  exciting  and  fun-
damental trends of recent years such as technological developments, changing economic structures and 
evolving social needs. As Turkcell, we closely follow up on those trends, as well as issues such as COVID-19, 
mobility and climate change, and shape our business model and strategy to accurately address and man-
age such issues. As we have to date, so too in the future do we aim to introduce our country and our people 
with the latest technologies via our domestic and national digital services developed by our engineers and 
software developers. We further aim to contribute to the digital transformation of our country and create 
value for all our stakeholders with our innovative and value-added solutions. While evaluating and analyzing 
such global trends, we make use of publicly available sources such as industry reports and opinions, as well 
as  the  reports  of  international  organizations.  This  section  includes  insights  into  the  prominent  trends  and 
Turkcell’s approach to managing them.

Switching to 5G
Mobile  communication  technologies, 
which  are  renewed  with  a  new  gen-
eration  approximately  every  10  years, 
continue  to  achieve  developments  at 
full speed in today’s world. 4.5G tech-
nology,  the  standards  of  which  were 
defined  in  the  2010s,  and  which  has 
been  used  in  our  country  since  2016, 
meets the high bandwidth demand of 
our  customers.  According  to  a  Global 
Mobile  Suppliers  Association’s  (GSA) 
report,  Turkcell  is  among  the  top  5 
operators  in  the  world  to  provide  the 
highest  speed  in  4.5G  technology  as 
of  May  2020.  With  5G,  standards  of 

which are currently being determined, 
and with the innovative solutions it will 
lead  to,    the  download  speeds  that 
will reach the level of gigabits per sec-
ond,  autonomous  vehicles,  virtual  re-
ality, augmented reality, remote health 
and education services, remote work-
ing and Internet of Things (IoT) will be 
further integrated into our lives. More-
over, 5G technologies are expected to 
contribute USD2.2 trillion to the global 
economy  between  2024  and  2034, 
and  global  5G  connections  are  ex-
pected to reach 1.8 billion by 2025*.
Apart  from  the  telecom  sector,  5G 
also  opens  the  door  to  fundamen-

tal  changes  in  various  sectors  such 
as  health,  automotive,  entertainment 
and  services.  As  a  software-based 
technology,  which  will  be  central  to 
several  sectors,  5G  is  to  drive  strate-
gic  change  in  the  way  countries  and 
corporations  view  communication 
technologies.  Although  the  frequen-
cies used for wireless communications 
in our country are technology-neutral, 
the frequencies required to implement 
the innovative solutions offered by 5G 
value  proposition  and  meet  expecta-
tions, have yet to be allocated by the 
ICTA.

How do we manage?
We  work  on  this  technology  over 
the  5G  test  networks  we  established 
in  select  cities  using  the  temporary 
5G  test  frequencies  allocated  by  the 
ICTA.  In  those  test  areas,  we  analyze 
the  transition  of  our  4.5G  network  to 
5G, observe 5G network performance 
and  examine  5G  network  products. 
Moreover,  we  contribute  to  the  de-
velopment  of  local  5G  infrastructure 
with  the  “End-to-End  Domestic  and 
National 5G Communication Network” 
Project  that  we  signed  as  a  stake-
holder  in  2017,  and  which  is  carried 
out  within  the  scope  of  Communica-
tion  Technologies  Cluster  (HTK)  activ-
ities  and  supported  by  TÜBİTAK.  With 
our  5G  test  networks,  we  not  only 
experience  the  technology  itself,  but 
also aim to establish a domestic and 
national  5G  digital  ecosystem  by  im-

plementing  5G  solutions  for  different 
vertical  sector  business  models.  We 
are happy to be the pioneer of numer-
ous  5G  studies  in  our  country  for  this 
purpose so far. We have taken various 
important steps in using 5G technolo-
gy  ranging  from  communicating  with 
drones to pre-medical intervention to 
a patient while in the ambulance, from 
the first live TV broadcast over 5G to 
the VR experience in sports competi-
tions. Using our 5G test networks, we 
will continue to lead the establishment 
of a domestic and national 5G digital 
service ecosystem. Moreover, with our 
5G R&D team, established in 2017, we 
participated in numerous national and 
international  projects  on  focus  areas 
determined in the 5G area and devel-
oped projects with our own resources. 
We  have  created  a  wide  ecosystem 
through  collaborations  with  regulato-

ry  and  standardization  organizations 
and  universities  and  research  insti-
tutions,  and  by  working  closely  with 
many  local  and  foreign  institutions 
and  organizations,  including  compa-
nies from various sectors. We actively 
undertook the Vice Presidency role in 
the “Machine Learning for Future Net-
works  including  5G”  focus  group,  es-
tablished  under  “ITU-T  Study  Group 
13  -  Future  networks  with  a  focus  on 
IMT-2020, cloud computing and trust-
ed  network  infrastructure  (SG13)”  that 
took  place  between  February  2018 
and June 2020. Furthermore, we con-
tinued to support the development of 
technology by actively participating in 
the  “Technologies  for  Network  2030” 
focus  group  established  to  work  on 
6G issues in SG13.

* GSMA

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Big data
As the world comes to terms with the 
Industry  4.0  revolution,  the  business 
world  is  at  the  adaptation  stage  to 
this  new  era,  where  all  information 
is instantly shared via the Internet of 
Things and creating big data, through 
digital  transformation.  Even  though 
numerous  companies  recognize  the 
potential  value  of  big  data,  these 
companies  still  need  to  transform 

their  technological  infrastructure  so 
as  to  benefit  from  the  opportunities 
that  can  be  achieved  with  big  data 
predictions.

In  the  telecommunications  world,  a 
large  amount  of  data  is  produced 
every day through social media net-
works,  connected  devices,  customer 
behavior, government service portals, 
call  data  records,  billing  information 

and  similar  sources.  As  a  result,  it  is 
becoming  increasingly  difficult  for 
mobile operators to cope with rapid 
fluctuations  in  data  volumes.  While 
leading  to  difficulties  for  the  tele-
communications  industry  in  terms  of 
technical  infrastructure  requirements, 
big  data  also  offers  the  opportunity 
to  turn  this  challenge  into  an  oppor-
tunity  with  big  data  analytics  appli-
cations.

How do we manage?
As  Turkcell,  we  provide  our  corpo-
rate  customers  the  opportunity  to 
understand  the  shopping  habits  of 
potential  customers  and  reach  them 
with  our  big  data  analytics  services. 
Big  data  also  enables  us  to  interpret 
changes in the shopping habits of ex-
isting  customers,  and  accordingly  to 
offer the most appropriate solutions.

Our  Big  Data  Analytics  Consultants 
work to determine the characteristics 
of  our  existing  and  new  customers 
with  customer  profiling  studies.  We 
also prioritize studies to increase the 
loyalty  of  existing  customers.  Thus, 
with  big  data,  we  can  understand 
the  needs  of  our  existing,  new  and 
old  customers,  and  increase  our  rev-
enue  with  new  value  proposals.  We 

are  aware  of  the  need  to  interpret 
the correct customer data in order to 
reach the target audience and make 
the right investments, and we contin-
ue growing our business by doing so 
with big data.

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88

Climate change
Global warming, which threatens the 
existence of life on earth and the im-
pacts  of  which  are  felt  more  inten-
sively  each  day  in  diverse  perspec-
tives  from  daily  life  to  government 
policies,  mainly  results  from  human 
activities.  Global  warming  triggers  a 
series of chain reactions in economic, 
ecological and social life and causes 
global migration crises, resulting in an 
obstacle  to  economic  activities,  and 
epidemic  diseases  arising  from  the 
destruction of biological diversity. We 

acknowledge  that  climate  change 
and  biodiversity  risks  are  interde-
pendent. As a recent example, scien-
tific  studies  show  that  COVID-19  has 
been mainly caused by issues associ-
ated with natural capital. With global 
warming continuing at an escalating 
pace,  the  studies  indicate  that  all 
these  interconnected  problems  will 
further  escalate  due  to  pandemic 
risk, climate risk and biodiversity risk.
Considering  forest  fires,  flood  dis-
asters  and  incidents  related  to  de-
struction  of  biodiversity,  which  have 

increased  in  frequency  all  over  the 
world  in  recent  years  and  have  be-
come  extremely  difficult  to  control, 
World  Economic  Forum  (WEF)  de-
fined the top five global risks in terms 
of probability as climate-related risks 
in  its  2020  Global  Risk  Report.  In  or-
der to manage these risks effectively, 
businesses  need  to  achieve  net  zero 
emissions  rapidly  and  focus  on  the 
implementation  of  circular,  renewa-
ble and regenerative strategies.

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Digital transformation and inclusion
While  the  speed  of  accessing  and 
processing 
increases 
information 
with rapidly developing mobile com-
munications  technologies,  the  de-
pendency  on  physical  locations  and 
assets  decreases.  These  dynamics 
create valuable new opportunities for 
many individuals and institutions. The 
rapid  and  intense  increase  in  global 
transactions  over  the  internet  with 
the  COVID-19  pandemic  shows  that  
new  business  models  are  to  emerge 
that will potentially add value to the 
lives  of  users.  According  to  a  Forbes 
article, as of April, there was a year-
on-year  growth  of  129%  in  e-com-
merce  orders  in  the  USA  and  Cana-
da.  The  fact  that  many  companies 

started  working  remotely  due  to  the 
pandemic,  and  that  such  applica-
tions  were  successful,  suggests  that 
remote  working  will  continue  par-
tially after the pandemic. This shows 
that  the  importance  of  services  and 
applications  in  the  field  of  commu-
nications  will  continue  to  rise  in  the 
upcoming periods.

Digitalization  reduces  the  distance 
between people in different countries 
and  rapidly  increases  the  accessibil-
ity  of  digital  applications,  products 
and  services.  Mobile  communica-
tion  services  cover  5.2  billion  people 
around  the  world,  corresponding  to 
67%  of  the  world’s  population.  The 
number of people with access to in-

ternet  through  mobile  applications 
has  reached  3.8  billion,  making  the 
telecom  sector  one  of  the  most  ef-
fective  channels  for  digital  services 
to  reach  people.  The  telecom  sector 
has great potential for eliminating in-
equalities  around  the  world  and  for 
providing  access  to  information  and 
services,  including  financial  services. 
Over the past 20 years, mobile tech-
nologies  have  accounted  for  about 
10% for every USD100 increase in per 
capita income.* Additionally, with the 
mission  of  providing  access  to  digi-
tal  services,  the  telecom  sector  can 
pave the way for social development 
for  various  socio-economically  dis-
advantaged  groups,  including  wom-
en and the youth.

How do we manage?
As  Turkcell,  since  our  establishment, 
we  have  placed  technology’s  power 
to provide equal opportunities at the 
center  of  all  our  social  responsibility 
projects,  having  implemented  pro-
jects  that  aim  to  ensure  equal  op-
portunities  in  information  access  for 
all.  Using  our  strong  analytical  com-
petencies,  we  develop  high  quality 
and innovative products, services and 
projects,  and  offer  services  in  many 
areas from education to finance.

We  continue  our  rapid  improvement 
in the mobile payment field with our 
Paycell  application,  which  has  been 
positioned as a new generation super 
app, with over 9 million downloads to 
date.  Within  the  scope  of  our  digital 
services, we offer solutions that meet 
the  needs  of  our  customers  with  our 
products  including  TV+,  fizy,  BiP  and 
lifebox. We support the digitalization 
journey of institutions by offering dig-
ital business services. In areas where 

the infrastructure is insufficient to de-
liver  fiber  internet,  we  can  provide 
fast  and  secure  internet  access  for 
everyone  via  our  Superbox  product 
offering fiber speed internet. With the 
Whiz  Kids  project,  we  bring  special, 
talented students together with tech-
nology  and  science.  Moreover,  we 
offer our My Sign Language  applica-
tion,  which  instantly  translates  what 
is written and said into sign language, 
free of charge for all operators’ users.

How do we manage?
Climate  change  risks  directly  affect 
Turkcell’s business operations. As Turk-
cell,  we  conduct  field  risk  analyzes 
during  the  installation  of  base  sta-
tions.  We  take  measures  against  the 
risks  of  extreme  weather  events  and 
natural  disasters  caused  by  climate 
change,  and  plan  for  the  transfer  of 
data  centers  to  locations  with  cold 
climates,  foreseeing  a  rise  in  average 
air temperatures in the long term. 

* GSMA

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You can access more 
information on Turkcell’s efforts 
regarding the Climate Change 
trend in the “natural capital 
section” of the report.

For  our  energy-focused  activities, 
we  turn  to  environmentally  friend-
ly  green  energy  resources  within  the 
framework  of  Sustainable  Develop-
ment  Goals.  We  have  implemented 
our  Turkcell  Sustainability  Strategy  in 
2020,  in  line  with  our  goals  of  meet-
ing all our electricity demand from re-
newable energy sources by 2030 and 
becoming  a  carbon  neutral  company 
by 2050.

SDG 13.b

SDG 7.2

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Mobility
Fundamental trends such as autono-
mous  driving  technologies,  connec-
tivity,  electrification  and  car  sharing 
are  shaping  the  present  and  future 
of  mobility  concepts.  The  idea  has 
gained  momentum  and  become 
widespread that the developments in 
mobility field will affect many factors 
ranging from the cities we live to the 
roads we use as well as the compa-
nies operating in this area. Moreover, 
it  is  anticipated  that  the  concept  of 
mobility  will  not  only  trigger  signifi-
cant  changes  in  the  automotive  and 

transportation sectors, but also in the 
technology  sector.  In  the  aftermath 
of  the  COVID-19  pandemic,  mobility 
is expected to contribute to econom-
ic  recovery  and  create  opportunities 
for  digital  technologies,  as  well  as 
new employment.
Rapid  developments 
in  mobili-
ty  trends  and  technologies  have 
brought  our  country  to  the  edge  of 
a  new  era.  The  transportation  sec-
tor,  which  focuses  on  developing 
new  technologies,  works  on  flexible 
and  innovative  solutions  to  specific 

needs.  KPMG  Turkey’s  report,  issued 
in September 2020 providing insights 
on the development of mobility sec-
tor  in  Turkey,  indicates  the  advan-
tage  of  utilizing  lithium  from  its  own 
mines  will  position  Turkey  favorably 
in  the  development  of  electric  vehi-
cle market, where we will participate 
with the domestic and national vehi-
cle.  The  TOGG  project,  Turkey’s  first 
domestic  car  to  be  designed  as  an 
electric  vehicle,  marks  an  important 
and powerful initiative in the mobility 
sector.

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Regulatory developments and sector regulations
Telecommunications  sector  activities 
are  closely  monitored  and  regulat-
ed  as  freedom  of  communication 
is  defined  as  a  constitutional  right, 
and telecom is among the most crit-
ical  sectors  in  our  country.  Moreover, 
ensuring  effective  and  competitive 

market  dynamics  and  helping  cus-
tomers with the desired level of dig-
ital    experience  requires  the  active 
participation of sector players, NGOs 
and  regulatory  authorities.  In  order 
to  unlock  the  potential  of  electron-
ic  communication  technologies  and 

develop  innovative  services  meeting 
customer  needs,  sectoral  regulations 
should  support  the  development  of 
the  digital  economy,  and  ensure  fair 
competition  and  investment  environ-
ment.

How do we manage?
Our mobility solutions, offered as part 
of  digital  business  services,  incorpo-
rate  the  most  advanced  vehicle  and 
fleet  technologies  for  improving  the 
safety of vehicles as well as employ-
ees.  “Turkey’s  Automobile  Initiative 
Group”  announced  the  development 
of  Turkey’s  domestic  automobile, 
TOGG,  in  December  2019,  with  its 
design  and  roadmap  subsequently 

determined.  Preparations  for  Turkey’s 
domestic  and  electric  automobile 
continue  at  full  speed  with  the  con-
sortium consisting of five large com-
panies,  including  Turkcell,  and  the 
TOBB partnership. 
As  Turkcell,  we  contribute  to  the  se-
curity of the information network, and 
invest in cyber security and data pri-
vacy  fields  accordingly.  We  consider 

this  critical  for  both  mobility  service 
developers  as  well  as  institutions 
and individuals benefiting from those 
services.  Having  adopted  domestic 
approach  on  software  development 
and hardware production, and lever-
aging  our  data  centers  we  prepare 
the technical infrastructure that com-
panies will need in the upcoming pe-
riod for mobility solutions.

How do we manage?
As Turkcell, we keep our activities and 
continue expansion in the global mar-
ket  by  managing  disputes  effectively 
and  taking  preventive  legal  actions, 
while  building  business  strategies  on 
solid legal foundations. The digitaliza-
tion of our processes helps us add va-
lue to our leadership journey and the 
reputation  of  Turkcell  and  our  Group 

companies.  We  consider  public  insti-
tutions  and  regulatory  authorities  an 
essential part of our ecosystem. The-
refore, we contribute to all legislative 
work  that  directly  or  indirectly  con-
cerns our industry at all stages as an 
active stakeholder by focusing on the 
continuity of a sustainable ecosystem 
and customer welfare. We are aware 

that  regulatory  developments  have 
the  potential  to  directly  affect  our 
business  model  and  strategies.  We 
pursue  our  activities  in  accordance 
with our goal of creating value for our 
country  and  our  industry  by  working 
in cooperation with regulatory autho-
rities and relevant stakeholders.

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Sustainable financing activities
Sustainable  Finance  relates  to  fi-
nancing activities where funding can 
be accessed based on a range of en-
vironmental,  social  and  governance 
criteria.  The  climate  crisis  has  led  to 
the  rising  importance  of  non-finan-
cial risk factors for investors, and re-
porting on these factors has become 
widespread  accordingly.  With  the 
support  of  the  United  Nations  Glob-
al Compact, companies have started 
to  manage  their  business  strategies, 

corporate  finance  and  investment 
activities in accordance with the tar-
gets  determined  within  the  frame-
work of the SDGs. 
In  parallel  to  the  increasing  risks  as-
sociated  with  climate  change,  sus-
tainable  borrowing  instruments  are 
expected to expand, while banks will 
set  stricter  rules  on  the  sustainabili-
ty  performance  of  the  projects  they 
finance.  According  to  KPMG’s  re-
port  “The  numbers  are  changing  the 

world”,  34%  growth  was  registered 
in  ESG  impact  investments  between 
2016  and  2019,  and  the  ratio  of  sus-
tainable  investment  to  total  man-
aged assets in Europe reached 48.8%. 
The “European Green Deal”, issued at 
the end of 2019, underlines the critical 
importance  of  sustainable  financing 
activities  for  financing  investments 
implemented 
and  projects  to  be 
within  the  scope  of  the  long-term 
plan.

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The development of fintech applications
The  accelerated  digitalization,  wid-
er  use  of  cryptocurrency  and  block-
chain  and  the  rising  global  smart-
phone penetration provide a conven-
ient environment for the development 
of  financial  technologies  (fintech). 
According to the KPMG report “Pulse 
of Fintech”, the fintech field has made 
a  significant  improvement  with  the 
doubling  of  investments  in  the  field 
between 2018 and 2019 compared to 
the  period  between  2014  and  2017. 
After  the  mega  mergers  and  acqui-
sitions realized in fintech field in 2019, 
investments in fintech-related servic-
es  such  as  digital  banking  and  con-
tactless  payment  systems  rose  with 

the effect of the COVID-19 pandemic, 
especially in the first half of 2020, and 
fintech investments reached USD25.6 
billion in the first quarter of 2020. 
Smartphones,  which  are  the  prima-
ry  means  used  for  internet  access 
by  people,  play  a  facilitating  role  for 
many  technologies  and  services,  in-
cluding  fintech.  Fintech  and  mobile 
services have the potential to provide 
access  to  financial  resources  and 
services  for  the  unbanked  popula-
tions. As the World Bank’s 2017 Findex 
report indicates, access to the finan-
cial  systems  provides  the  opportuni-
ty  of  financial  and  social  independ-
ence,  especially  for  those  deprived 

of  certain  fundamental  needs  such 
as  having  a  bank  account,  and  also 
for women, corresponding to 56% of 
adult population. As 44% of its popu-
lation does not have a bank account 
according  to  the 
Interbank  Card 
Center (BKM), Turkey has great poten-
tial in the fintech field with its young 
population and high smartphone use 
ratio.  Through  the  legislative  change 
that  took  effect  as  of  July  2020,  the 
concept  of  “Open  Banking”  has  also 
taken root in Turkish banking legisla-
tion  as  a  key  step  for  fintech.  Thus, 
the  regulatory  environment  in  Turkey 
has become more convenient for the 
development of fintech applications.

How do we manage?
In  the  Turkcell  ecosystem,  fintech 
is  referred  to  as  techfin  in  terms  of 
our  focus  on  technology,  and  tech-
fin  activities  are  carried  out  through 
our  three  subsidiaries;  Paycell,  Finan-
cell  and  Turkcell  Insurance.  Leverag-
ing  our  experience  of  over  a  quarter 
century,  superior  digital  services  and 
advanced  analytical  capabilities,  we 
closely  follow  the  innovations  in  the 
techfin  field  and  develop  pioneering 
products and solutions.

Paycell,  being  Turkcell’s  new  gen-
eration  payment  platform,  is  full  of 
opportunities  for  both  individual  and 
corporate  customers  in  the  mobile 
payment  field.  Paycell  application 
has  been  downloaded  over  9  million 
times.  While  services  such  as  mon-
ey  transfers  and  payments  can  be 
readily  realized  through  the  Paycell 
application, we provide payment fa-
cilitation services to over 12 thousand 
contracted  merchants  with  solutions 

including  QR-based  payment  and 
mobile  POS.  Financell,  our  financ-
ing  service  that  facilitates  individual 
and  corporate  customers’  access  to 
technological products, has extended 
loans  in  the  amount  of  TRY18  billion 
to  approximately  5.6  million  custom-
ers  since  its  foundation.  At  Turkcell 
Insurance, through our innovative ap-
proach  in  the  insurance  arena,  we 
provide customers convenient, simple 
and fast insurance services.

How do we manage?
As  we  are  well  aware  of  the  in-
creasing  transparency  and  reporting 
expectations  of  investors  on  ESG  is-
sues, we began preparing our annual 
report  using  the  integrated  reporting 
structure as of 2020. 

We  focus  on  sustainable  financing 
options  to  diversify  our  funding  op-
tions,  support  our  sustainability  ac-
tivities and provide access to finance 
with  more  favorable  conditions.  In 
this context, we utilized the “Sustain-
ability Indexed Loan” in 2019 and ob-
tained a “Green Loan” in 2020. These 

transactions enable us to conduct our 
business  and  investments  in  accord-
ance with the realization of the SDGs. 
Meanwhile, we continue our activities 
as  one  of  the  founding  members  of 
the UNGC CFO Taskforce, which aims 
to  create  a  market  for  investments 
towards the SDGs.

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Cyber   security
Despite  numerous  advantages,  the 
increased use of technology and the 
acceleration of digital transformation 
in  the  business  world  expose  organ-
izations  to  cyber  security  risks.  The 
impacts  of  the  COVID-19  pandemic 
have forced organizations to use dig-

ital platforms and tools, while testing 
them in terms of cyber security issues. 
transformation  permanent-
Digital 
ly  changes  the  way  companies  do 
business,  especially  during  the  pan-
demic  period,  and  will  continue  to 
do so in the upcoming periods. Thus, 

cyber   security emerges as a dynam-
ic  field  comprised  of  numerous  dif-
ferent  components.  The  increase  in 
cyber  security  threats  underlines  the 
importance  of  information  security 
for organizations.

How do we manage?
We carry out activities at the nation-
al and international fronts to develop 
measures,  which  will  help  identifying 
threats,  reducing  and  eliminating  the 
effects  of  possible  attacks  and  inci-
dents,  and  to  share  those  measures 
with  identified  bodies.  We  build  se-
cure  infrastructures  and  systems  by 
improving  our  processes,  creating 
awareness,  developing  qualifications 

of our human capital, setting up lay-
ered security controls and using new 
generation  technologies.  With  the 
Turkcell  Security  Operations  Center, 
working  24/7,  we  monitor  current 
threats  and  cyber-attacks,  and  take 
the  necessary  actions  by  apply-
ing  end-to-end  security  checks  and 
tests.  Thanks  to  our  digital  operator 
competence, we offer our experience 

in cyber security and information se-
curity  to  our  individual  and  corpo-
rate  customers  as  a  service  via  the 
Turkcell  Security  Operations  Center 
operating 24/7. We continue to meet 
the  needs  of  institutions,  organiza-
tions  and  individuals  in  diverse  are-
as  including  ensuring  cyber  security, 
protecting  data,  and  establishing  in-
tegrated infrastructure.

Artificial intelligence
Artificial intelligence (AI) has become 
a term that refers to applications and 
software  that  perform  significantly 
more  complex  tasks  than  any  other 
functions 
leveraging  solely  human 
capital. Being among the top agenda 
items  of  the  decision-making  mech-
anisms  of  institutions  and  organiza-
tions,  artificial  intelligence  technolo-
gy  is  reshaping  company  strategies. 
Many  companies  make  significant 
investments  in  data  science  teams 
to benefit from the opportunities and 
values   offered by AI. There are numer-
ous  application  examples  confirming 

its value. Moreover, organizations are 
able to improve user experience and 
increase  productivity  by  integrating 
machine  learning  and  cognitive  in-
teractions  into  traditional  business 
processes and applications software. 
KPMG  published  the  “Living  in  an  AI 
World”  report  in  2020,  which  exam-
ines the business world digitalized by 
artificial intelligence. According to the 
study  included  in  the  report,  92%  of 
participants  are  of  the  opinion  that 
artificial  intelligence-based  technol-
ogies  will  enable  their  companies  to 
be  more  efficient,  while  73%  believe 

that  more  aggressive  decisions  are 
required  in  relation  to  their  compa-
nies’ artificial intelligence investments 
and adaptation processes. 

In the telecom sector, issues such as 
meeting  the  rising  demand  in  terms 
of  product  and  service  diversity,  the 
subscribers’ customized digital needs, 
coverage  area  and  bandwidth  as 
well  as  the  intensified  competitive 
environment  are  growing  in  impor-
tance,  while  artificial  intelligence  is 
anticipated  to  play  a  key  role  in  of-
fering solutions for those areas.

How do we manage?
In  January  2020,  as  Turkcell,  we  an-
nounced seven principles that we will 
comply as part of our activities in ar-
tificial  intelligence,  which  is  expect-
ed  to  be  the  focus  of  technological 
developments.  As  the  first  company 
taking  this  step  in  Turkey,  we  have 
joined  global  players  that  contribute 
to  artificial  intelligence  ethics.  In  our 
country,  we  played  a  leading  role  at 
the  turning  point  for  artificial  intelli-
gence, which will be the most popular 
technological  concept  over  the  next 
decade and impact the global leader-
ship claim of countries. As part of our 
offers  and  services,  we  interpret  the 
big  data  gathered  from  our  activities 
with artificial intelligence and provide 
our customers with customized offers 

leveraging  our  analytical  capabilities. 
Using  machine  learning  techniques  in 
various  areas  such  as  traffic  density, 
capacity  management  and  anomaly 
detection in our network, we contrib-
ute to the efficiency of our infrastruc-
ture.  We offer our artificial intelligence 
solutions  to  institutions  and  organiza-
tions through our Digital Business Ser-
vices company. Our legal and regula-
tory team has long been collaborating 
with global organizations to eliminate 
concerns  over  artificial  intelligence, 
and  also  to  increase  its  positive  im-
pact.  Turkcell  plays  an  active  role  in 
international  platforms  on  which  the 
principles and future of artificial intel-
ligence are elaborated. In this context, 
we  have  contributed  to  the  following 
studies  among  others;  global  princi-
ples  on  children’s  rights  and  artificial 
intelligence  and  the  responsible  use 
of facial recognition systems. We also 

collaborated  with  the  world’s  leading 
standardization organization IEEE with 
regards  to  the  determination  of  eth-
ical  standards  in  artificial  intelligence 
systems that process emotions as part 
of  the  “Standard  for  Child  and  Stu-
dent Data Governance” and “Standard 
for  Age  Appropriate  Digital  Services 
Framework”  projects.  We  also  take 
part  in  ITU’s  working  group  on  smart 
cities,  as  well  as  artificial  intelligence 
and  health  working  groups.  Further-
more,  we  contributed  to  the  World 
Economic  Forum’s  “A  Framework  for 
Responsible  Limits  on  Facial  Recog-
nition  Use  Case:  Flow  Management” 
project. Turkcell acts with utmost care 
within  the  framework  of  the  Law  on 
the  Protection  of  Personal  Data  and 
continues  to  work  complying  with  its 
declared principles to ensure that arti-
ficial intelligence brings value to both 
our customers and the world.

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The growing need for communication due to COVID-19
As of the end of 2020, the COVID-19 
pandemic has affected more than 80 
million  people  worldwide  resulting 
in  over  1.7  million  deaths.    The  esti-
mated economic contraction for year 
end  2020  is  around  4.4%,  and  this  is 
expected to bring serious socio-eco-
nomic  consequences.  The  World 
Bank’s  October  2020  estimates  re-
vealed  that  the  COVID-19  pandemic 
is  expected  to  place  88-100  million 

people in extreme poverty in 2020.
The  dynamics  that  emerge  with 
the  pandemic  have  already  caused 
changes 
in  many  areas.  Remote 
working  has  become  predominant 
while  in-person  learning  is  being  re-
placed with distance learning. More-
over, we see reflections of changes in 
consumer  preferences  affecting  nu-
merous  sectors  from  transportation 
to  retail  and  distance  entertainment. 

A  study  conducted  by  ACI  reveals 
that  the  online  retail  shopping  ratio 
increased  by  74%  worldwide  in  the 
first months of the pandemic. Mean-
while,  remote  healthcare  services 
are  also  increasing  rapidly.  These 
trends point to increasing demand in 
the  mobile  communications  industry. 
New  technologies,  especially  includ-
ing 5G, are expected to play a critical 
role in meeting such demand.

How do we manage?
In parallel with the developments in the 
COVID-19 pandemic, we analyze new 
dynamics in the most efficient manner 
and  respond  quickly  to  the  changing 
needs  of  our  customers  and  society. 
As the importance of telecom services 
has risen significantly due to the rising 
demand  for  distant  education,  health 
and entertainment services,  we have 
improved  our  infrastructure  and  in-
creased  our  support  to  prevent  any 
service disruptions. We supported dis-
tance learning by providing additional 
data  quotas  for  students  and  teach-
ers.  We  doubled  the  monthly  internet 
quota  to  6  GB  for  “teachers  and  stu-

dents”  who  will  benefit  from  the  EBA 
(distance  education  platform)  infra-
structure. We donated 15 GB data al-
lowance  and  15  thousand  minutes  for 
three  months  to  ensure  that  the  field 
personnel of the Ministry of Health can 
work  without  communication  disrup-
tions.  During  the  transition  period  to 
remote  working,  we  provided  over 
1,600  corporate  customers,  some  of 
which are among Turkey’s largest en-
terprises,  the  opportunity  to  manage 
data centers remotely. We also stood 
by  our  customers  through  our  digital 
services. BiP Meet offers a secure vid-
eo conferencing experience for online 
meetings,  while  TV+  enables  users  to 

watch  TV  channels  and  movies.  We 
offer  fizy  for  music  lovers,  magazine 
applications  for  those  who  keen  to 
read  newspapers  and  magazines, 
as  well  as  Yaani  search  engine,  and 
Paycell  for  secure  and  fast  payments 
without touching money or credit card. 
Moreover, all of these applications can 
be used by all operator users.

You can access more 
information on our practices 
related to COVID-19 throughout 
the report in COVID-19 note 
sections.

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98

Effective risk and 
crisis management

The importance of 
effective risk and 
crisis management to 
mitigate the macro-
economic uncertainties 
observed over recent 
years, and especially in 
2020 with the impact 
of pandemic, has once 
again proven vital. 
Effective Risk and 
Crisis Management, 
a priority for both our 
Company and our 
stakeholders, enables 
the management of 
risks that may impact 
the achievement of 
Company targets 
determined in line 
with our strategies, 
within the scope of 
the Corporate Risk 
Management (CRM) 
system. While doing 
so, a pro-active risk 
management policy is 
adopted that turns risks 
into opportunities.

SDG 16.6

Risk management and Internal 
control mechanism
In  selecting  an 
independent  audit 
company;  the  Audit  Committee  con-
siders  the  competencies  and  impar-
tiality  of  independent  audit  firms  and 
presents its suggestion to the Board of 
Directors. 

During  our  Company’s  Ordinary  gen-
eral  assembly  meeting  held  on  Octo-
ber  21,  2020  PwC  Bağımsız  Denetim 
ve  Serbest  Muhasebeci  Mali  Müşavir-
lik A.Ş. (PricewaterhouseCoopers) was 
appointed  as  the  Company  auditor 
for  the  auditing  of  our  Company’s  fi-
nancial statements of 2020, as per the 
Turkish Commercial Code (TCC). 

The  Internal  Audit  function  within  the 
Company directly reports to the Board 
of  Directors  and  is  responsible  for  the 
auditing of Turkcell İletişim A.Ş. and all 
group companies, which are subsidiar-
ies,  and  reporting  the  results  of  audit 
activities carried out in step with Inter-
national Standards for the Professional 
Practice of Internal Auditing to the Au-
dit  Committee.  The  auditing  activities 
of  the  Internal  Audit  mainly  comprise 
operational audits conducted pursuant 
to  annual  risk-based  audit  plans  and 
audits in accordance with compliance 
to  Article  404  of  the  Sarbanes  Oxley 
Act. 

Operational audit activities are carried 
out  according  to  annual  audit  plans 
prepared with respect to a risk-based 
audit  approach.  Through  conducting 
operational  audits,  the  Internal  Au-
dit  evaluates  the  effectiveness  of  risk 
management, control, and governance 
processes,  providing  assurance  to  the 
Board of Directors and Audit Commit-
tee in this respect, and thereby assist-
ing Turkcell in meeting its goals. 

Meanwhile,  as  we  are  listed  on  the 
New York Stock Exchange in the Unit-
ed  States,  and  as  per  the  provisions 
of  Article  404  of  the  Sarbanes  Oxley 

Act, which all publicly-traded compa-
nies  are  required  to  comply  with,  au-
dit activities are conducted within the 
framework of the annual plan to pro-
vide  assurance  in  terms  of  the  exist-
ence,  adequacy  and  effectiveness  of 
the internal control system adopted by 
Turkcell and Turkcell group companies, 
the  financial  statements  of  which  are 
consolidated.  All  stages,  covering  the 
planning of audit activities, identifying 
internal control insufficiencies, and fol-
lowing up and closing related actions, 
are carried out in accordance with the 
aforementioned  article,  and  regularly 
reported to the Audit Committee, CEO 
and CFO.

The  Internal  Audit  Unit  also  provides 
consultancy  services  with  respect  to 
matters  at  hand,  as  well  as  matters 
raised by the management.

The Internal Audit Unit reports on com-
pliance  practices  as  per  Article  404 
of  the  Sarbanes  Oxley  Act  to  the  Au-
dit  Committee,  CEO  and  CFO,  while 
the  Enterprise  Risk  Management  Unit 
reports  its  activities  to  the  Early  De-
tection  of  Risks  Committee.  The  Inter-
nal  Audit  mechanism  operates  with  a 
risk-based audit approach. Within this 
scope,  functionally  and  institutionally 
probable  risks  are  continuously  mon-
itored,  with  the  risk  analyses  resulting 
from these conducted operations con-
stituting the main input of audit activ-
ities.

Since  the  end  of  the  financial  year 
of  2012,  the  “Early  Detection  of  Risks 
Committee”  has  been  in  operation  to 
perform activities in a manner affiliat-
ed  with  the  Board  of  Directors  within 
the scope of article 378 of the Turkish 
Commercial  Code  and  the  Commu-
niqué on Corporate Governance of the 
Capital  Markets  Board.  The  Early  De-
tection  of  Risks  Committee  supports 
the  Board  of  Directors  by  performing 
studies for the purpose of the early de-
tection of risks that may jeopardize the 

In order to increase 
the effectiveness 
of the Turkcell 
Crisis Management 
Plan, regular drills 
are conducted, 
and trainings and 
awareness activities 
are held with the 
participation of Crisis 
Management Teams 
and related groups.

existence, development and continuity 
of  the  Company,  implementing  the 
necessary measures related to identi-
fied risks and managing of those risks. 
The  Committee  reports  to  the  Board 
of Directors once every 2 months and 
these  reports  are  shared  with  the  in-
dependent  audit  company.  The  Board 
of  Directors  regularly  provides  an 
evaluation  of  the  risks  affecting  the 
Company  through  the  Early  Detection 
of  Risks  Committee.  According  to  the 
Turkcell  Corporate  Risk  Management 
approach,  risks  that  are  assessed  as 
“Very  High”  and  “High”  upon  Impact 
and  Probability  scale  risk  assessment 
are  monitored  together  with  business 
owners every two months. These risks 
are brought to the Early Risk Detection 
Committee and necessary actions are 
taken. Medium and Low-level risks are 
assessed  together  with  risk  officers 
and followed up in the Enterprise Risk 
Universe  through  the  monitoring  and 
tracking  system.  The  very  high  and 
high risks that are raised at risk anal-
ysis  meetings  are  re-evaluated  prior 
to  each  presentation  and  presented 
to  the  Early  Risk  Detection  Commit-

tee, which consists of members of the 
Board of Directors.

The Enterprise Risk Management team 
is  responsible  for  assessing  risks  and 
reporting  risk  prevention  activities  to 
the  Early  Detection  of  Risks  Commit-
tee,  as  well  as  coordinating  the  risk 
prevention  activities  within  Turkcell 
and  its  group  companies  through  the 
Corporate Risk Management method-
ology.  Each  director  is  responsible  for 
the Enterprise Risk Management activ-
ities in her/his unit. The Enterprise Risk 
Management  team  carries  out  risk 
management duties together with di-
rectors, managers who directly report 
to  vice  presidents,  and  risk  contacts. 
The  Turkcell  Enterprise  Risk  Manage-
ment team has adopted an approach 
whereby  the  risk  management  pro-
cess  is  integrated  with  fundamental 
management  processes.  In  so  doing, 
a framework associated with the pro-
cess was identified in accordance with 
an Enterprise Risk Management proce-
dure as per the COSO ERM framework 
and ISO 31000 standard. 

In  2000,  Turkcell  formed  its  business 
continuity  plans  in  a  manner  also  en-
compassing  its  technical  operations, 
repositioning 
its  business  continuity 
plan  as  Business  Continuity  Manage-
ment by broadening the extent thereof 
in 2004.

With  the  restructuring  in  2011,  the 
scope  of  the  program  expanded  to 
comprise  Turkcell  Group  companies 
and suppliers. The Turkcell Group Busi-
ness  Continuity  Management  System 
has been structured and certified in a 
manner  ensuring  the  continuity  of  our 
call, messaging, internet, server servic-
es,  data  centers  and  societal  security 
services  as  per  the  international  “ISO 
22301,  Societal  Security  -  Business 
Continuity  Management 
Systems” 
standard.  Regular  drills  are  conducted 
to  test  our  business  continuity  plans, 
drafted  in  consideration  of  customer 
expectations,  corporate  policies  and 
legal  obligations,  so  as  to  guarantee 
their  sustained  operation  in  case  of 
emergency or disaster.

Our  geographically  dispersed  tech-
nical  infrastructure,  extensive  cover-

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Technological 
developments are 
followed through 
collaborations with 
important international 
sectoral organizations 
such as GSMA, as well 
as through competent 
R&D studies and 
projects at national 
and international levels.

age,  solution  partner  network,  mobile 
network,  mobile  base  stations,  addi-
tional  capacity,  emergency  centers 
and  extensive  experience  in  handling 
emergencies  enable  us  to  minimize 
risks.  Additionally,  the  experience  of 
our  Group  companies  in  customer 
services,  our  high-speed  fiber-optic 
infrastructure,  data  storage  services 
and  our  experienced  software  devel-
opment  teams  allow  us  to  effectively 
manage  any  disasters  from  another 
center, thereby ensuring the continuity 
of our activities.

Turkcell’s Crisis Management Plan cov-
ers  seven  major  events;  operational 
disruptions,  natural  disasters  (earth-
quakes,  floods,  etc.),  cyber-attacks, 
terrorism, fire, pandemic and epidemic 
and  toxic  events.  In  order  to  increase 
the  effectiveness  of  the  Turkcell  Crisis 
Management  Plan,  regular  drills  are 
conducted,  and  trainings  and  aware-
ness activities are held with the partic-
ipation  of  Crisis  Management  Teams 
and related groups.

Information security risks
Data  security  risk:  This  includes  the 
risks  of  theft,  loss,  leakage,  deliberate 
or  accidental  disclosure,  misregistra-
tion,  alteration,  deletion,  destruction 
and  inaccessibility  of  any  information 
stored both in physical and/or in elec-
tronic media via authorized/unauthor-
ized  access  from  within  or  outside  of 
the  organization.  In  response  to  risks 
associated with data security, Turkcell 
takes the necessary technical and ad-
ministrative measures. 

Cyber  security  risk:  This  involves  the 
risk  of  destruction  of  information  sys-
tems  and  of  damage  to  systems  due 
to the malicious use of Turkcell’s inter-
nal  and  external  computer  and  net-
work  systems.  In  this  context,  Turkcell 
manages vulnerabilities by implement-
ing  end-to-end  security  controls  and 
tests.  The  Security  Operations  Center 
monitors  threats  24/7  and  performs 
Cyber Attack Monitoring and Defense.

Financial risks
Macroeconomic risks: This includes the 
risk of worsening expectations and/or 
the  current  situation  due  to  econom-
ic  and  political  uncertainties.  Turkcell 
already diversifies its financing sourc-

es  and  keeps  different  resources  and 
necessary  agreements  ready,  in  the 
event  of  cases  of  possible  sanctions 
and regional inability to access certain 
resources.

Currency, interest and inflation risk: This 
includes  the  risk  of  increasing  costs 
and decreasing income due to fluctu-
ations in inflation, and interest rate and 
exchange rates. In this context, market 
dynamics  are  closely  monitored,  and 
appropriate  financial  instruments  are 
selected and implemented to minimize 
exchange rate risk.

Liquidty,  financing  risks:  This  involves 
the risk of disruptions to cash flow due 
to inaccessibility of financing resourc-
es  utilized  or  intended  to  be  utilized, 
or  inability  to  pay-back  loans.  Turk-
cell’s  forward-looking  cash  projection 
is  systematically  monitored  with  the 
principles  of  effective  balance  sheet 
and liquidity management.

Cash  generation  and  collection  risks: 
This  involves  the  risk  of  disruptions  to 
cash flow due to the inability to collect 
existing  receivables  on  time.  In  peri-
ods  when  collection  risk  increases  for 
certain reasons (economic crisis, pan-
demic,  war,  etc.),  collection  balances 
and trends, as well as cash flow track-
ing  are  monitored  and  reported  to 
senior management on a daily basis.

Strategic risks
Investment  risks  and  risk  of  adapta-
tion  to  technological  developments: 
These are the risks that can affect the 
Company’s  position,  reputation  and 
image  in  the  market  and  the  sector 
in  the  short,  medium,  or  long  term.  In 
this  context,  sectoral,  local  and  glob-
al  trends  and  competitor  activities  in 
new  business  lines  are  closely  moni-
tored  and  necessary  actions  are  tak-
en.  Technological  developments  are 
followed  through  collaborations  with 
important  international  sectoral  or-
ganizations such as GSMA, as well as 
through  competent  R&D  studies  and 
projects  at  national  and  international 
levels.

Legal risks
Risks  regarding  compliance:  This  in-
volves the risk of encountering admin-
istrative sanctions as a result of failure 

In order to prevent 
employee mistakes 
and more effectively 
manage processes 
and projects, 
Turkcell Academy 
identifies training 
needs and plans 
competency trainings 
in areas of employee 
development.

to comply with the applicable regula-
tions. Turkcell aims to monitor and pre-
vent any possibility of non-compliance 
by  closely  following  developing  and 
changing regulations with a pro-active 
management  approach.  Within  this 
context,  business  teams  are  provided 
with briefings and information with re-
spect to changes in legislations as well 
as  new  regulations  which  are  moni-
tored  by  senior  management  through 
personal  data  steering  committee, 
compliance  committee,  sub-compli-
ance  committee  and  information  sys-
tems compliance committee; and rele-
vant compliance activities are carried 
out  in  this  respect.  Moreover,  various 
measures  are  taken  via  digitalized 
tools such as internal audit and auto-
mated  control  systems,  working  con-
tinuously, in order to prevent the occur-
rence of any breach and imposition of 
any administrative sanctions. 

Lawsuits  and  legal  conflict  risks:  This 
includes the risk of encountering sanc-
tions against the Company due to the 
filing of a lawsuit related to the area of 
responsibility.  Legal  activities  are  car-
ried out regarding those conflicts that 
may arise against Turkcell regarding its 
operations/contracts/projects.

Business continuity risks
These are the risks the Company may 
encounter as a result of events includ-
ing  operational  interruptions,  natural 
disasters, terrorism, etc. Crisis, business 
and service continuity plans within the 
Company have been prepared metic-
ulously.  In  order  to  evaluate  its  effec-
tiveness  and  identify  potential  areas 
for  improvement,  plans  are  reviewed 
periodically, and regular drills are car-
ried out annually.

Operational risks
Risks  arising  from  the  environment, 
sustainability  and  ecology:  This  in-
cludes  issues  that  may  arise  due  to 
climate  change  (temperature  chang-
es,  increase  in  energy  consumption, 
increase  in  energy  prices,  insufficient 
waste  management,  lack  of  protec-
tion of water resources, etc.) and risks 
related  to  environmental  factors  that 
may affect human health and biolog-
ical  diversity.  In  this  context,  Turkey’s 
first  ISO  50001  certified  mobile  oper-
ator,  Turkcell,  is  making  extensive  re-

through  an 

newable  energy  investments  through 
its  subsidiaries  and  also  tracking  its 
energy  consumption.  As  an  ISO  14064 
(International  Greenhouse  Gas  Calcu-
lation  and  Verification  Standard)  cer-
tified  mobile  operator,  Turkcell  calcu-
lates  and  verifies  its  greenhouse  gas 
independent 
emissions 
organization.  Through  its  CDP  Climate 
Change  reporting,  Turkcell  regularly 
shares its climate change performance 
and  its  approach  to  climate-related 
risks  and  opportunities  with  its  stake-
holders.  Turkcell  aims  to  be  carbon 
neutral by 2050, and continues its ac-
tivities  to  meet  its  target  of  sourcing 
100%  of  its  electricity  consumption 
from renewable sources by 2030.

Risks  related  to  managing  relation-
ships  with  third  parties:  This  includes 
risks  that  arise  from  inefficient  man-
agement  of  third  parties.  These  may 
occur  due  to  failure  of  third  parties 
in  fulfilling  their  responsibilities  com-
pletely  and  accurately,  their  activities 
violating  company  procedures  and 
legal  regulations,  or  their  fraudulent 
behavior.  In  order  to  minimize  risk  of 
potential  impact  on  operations  and 
targets,  agreements  are  made  with 
business  partners  having  obtained 
legal  opinion.  In  order  to  prevent  em-
ployee  mistakes  and  more  effectively 
manage processes and projects, Turk-
cell Academy identifies training needs 
and plans competency trainings in ar-
eas of employee development.

Market risks
Macroeconomic  and  political  uncer-
tainty  risks:  This  includes  the  risks  of 
worsening  expectations  and/or  the 
current  situation  due  to  economic 
effects  such  as  the  reflection  of  ex-
change  rate  fluctuations  and  inflation 
on  consumption  habits  of  customers, 
and  of  political  uncertainties.  Global 
trends,  economic  indicators,  competi-
tion, revenues and subscriber data are 
regularly monitored by Turkcell. 

Competition risks: This includes the risk 
of being disadvantageous in compet-
ing  activities  or  technological  and/
or  sectoral  developments.  In  this  con-
text,  market  and  competitor  activities 
are  closely  monitored  and  efforts  are 
made  to  respond  to  such  competing 
activities with timely actions.

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102

Strategic initiatives 
and opportunities

In evaluating global 
trends and Turkey’s 
growth potential, we 
have determined three 
strategic focus areas 
in addition to our 
core telecom business 
that build on our four 
main competencies. 
In parallel to our 
strategic focus 
areas, we have four 
main competencies 
stemming from our 27 
years of experience 
and know-how, which 
distinguish us from 
other operators in the 
sector and strengthen 
our leader position.

While our strategic focus areas direct 
our  Company’s  operations,  we  also 
ensure that all business lines evaluate 
opportunities  in  the  most  effective 
manner.

Our strategic focus areas are re-eval-
uated annually through meetings and 
surveys with the participation of em-
ployees  from  every  level,  and  there-
fore, we ensure the consistent reflec-
tion of our strategy based on current 
trends,  opportunities  and  competen-
cies.

Our telecom business
•  Rising  trend  for  data  usage  in  the 
young  customer  segment:  Consider-
ing the increasing mobile data usage 
trend  among  young  customers  and 
the trend towards mobilizing, we offer 
various  campaigns  and  develop  new 
applications and services through so-
cial  media-oriented  packages  and 
the GNÇ application for the needs of 
our young customers.

• Market share increase in corporate 
customer segment: As Turkcell, we fo-
cus  on  further  increasing  our  already 
large  corporate  customer  market 

share  and  benefitting  from  the  op-
portunities  brought  by  digitalization. 
In  this  context,  we  prepare  various 
campaigns  for  tradesmen  and  SMEs, 
especially  given  changing  needs  due 
to the COVID-19 pandemic.

Digital services
•  New  revenue  opportunities  in  traf-
fic  and  data  usage  with  increasing 
active  users  and  transaction  volume: 
The number of active users of our ser-
vices  is  rising  each  day.  Accordingly, 
our  transaction  volumes,  commission 
revenues,  advertising  revenues  and 
subscriptions are also growing. 

•  The  growing  importance  of  mo-
bile  applications  with  remote  work-
ing:  The  COVID-19  pandemic  has  led 
the  world  to  work  remotely.  This  has 
increased  the  importance  of  com-
munication  infrastructures,  software 
and the security of these systems for 
companies. Remote working is antici-
pated to grow in popularity even after 
the COVID-19 pandemic. As a leading 
technology  company  equipped  to 
meet  respective  needs  in  this  area, 
we provide services via our products 
such as BiP, Yaani Mail, lifebox and BiP 
Meet to high security standards.

Digital business services
• Increasing demand for data centers 
in  accordance  with  regulations  to 
store personal data in our country: In 
order  to  maintain  data  security  and 
ensure  privacy  of  personal  data,  as 
Turkey’s largest data center operator, 
we continue our activities with the vi-
sion that Turkey’s data should remain 
in Turkey. In this context, regulatory ar-
rangements concerning the storage of 
certain data in Turkey have increased 
the demand for our data centers, thus 
helping  us  improve  our  business  and 
contributing to our revenues.

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•  Global  IT  service  providers  to  face 
difficulty  in  price  competition  due  to 
currency  impact:  Due  to  the  impact 
of  currency  movements,  we  are  in  a 
position to offer advantageous prices 
for our digital business services com-
pared to foreign service providers.

•  Absence  of  accepted  major  play-
ers  in  the  new  generation  technolo-
gies  market  such  as  IoT  and  artificial 
intelligence: We use our big data, IoT 
and  artificial  intelligence  (AI)  expe-
rience  and  competencies  in  various 
areas  including  the  development  of 
products  and  services.  The  absence 
of accepted major players in IoT and 
artificial  intelligence  solutions,  which 
are  still  developing  areas,  creates  an 
advantage  for  Turkcell.  The  Republic 
of  Turkey’s  national  vision  to  encour-
age  development  of  domestic  and 
national  technologies,  is  considered 
as an opportunity for Turkcell.

•  The  increasing  importance  of  re-
mote  health  services,  distance  learn-

ing, remote working, and of products 
and  services  in  these  areas:  The  in-
creasing  need  for  remote  solutions 
during  the  pandemic  period  led  to 
increased  demand  for  products  and 
services,  which  we  focus  on,  in  the 
field of remote health, education and 
working solutions.

You can access detailed 
information in the intellectual 
capital section.

• Opportunities arising from the need 
for  digital  transformation  in  private 
and  public  sectors:  Digitalization  of-
fers various opportunities for produc-
tivity and service quality increase for 
companies  and  public  institutions.  As 
Turkcell,  we  also  offer  end-to-end 
digital  transformation  services  via 
customized  solutions  to  Turkish  com-
panies and public institutions, togeth-
er with financing opportunities to fa-
cilitate  their  access  to  digitalization 

process. We steer our country’s digital 
transformation journey by collaborat-
ing with local partners.

•  SME  opportunities  in  the  Informa-
tion  Technologies  market:  Leveraging 
the positive perception of its 27 years 
brand  in  the  eyes  of  customers,  and 
its  nationwide  strong  sales  network, 
Turkcell has a competitive advantage 
in the medium-sized companies seg-
ment.

• Ability to offer end-to-end solutions 
with  a  one-stop-shop  approach  by 
integrating  the  Information  Technolo-
gies  and  Telecom  business:  Turkcell’s 
successful  transformation  from  a  tel-
ecom  operator  to  an  IT  company  in 
recent  years,  together  with  its  com-
petent  human  capital,  strong  tech-
nical  know-how  and  collaborations 
with suppliers help it stand out in the 
market. 

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Strong corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Main competencies

Strong bond with customers
•  The  operator  meeting  the  quality 
service and communication needs of 
the  customers  during  the  pandemic 
period

•  Superior  digital  customer  experi-
ence via growing digital services

•  Seamless  service  thanks  to  Turk-
cell’s  strong  infrastructure  and  wide 
range of IT solution services

Strong infrastructure
•  Sustaining  the  leading  and  differ-
entiating  network  quality  in  the  sec-
tor and reinforcing the leading oper-
ator  position  in  technology  with  the 
launch of 5G

You can access detailed 
information in the manufactured 
capital section.

•  Increasing  efficiency  by  using  the 
technology neutral spectrum

• Delivering the latest and innovative 
solutions  via  fixed  and  mobile  tech-
nologies  to  the  consumer,  corporate 
and residential segments

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Techfin services
•  Regulations  becoming  more  sup-
portive  of  our  techfin  projects:  The 
regulatory  environment  in  Turkey  has 
become  more  supportive  for  techfin 
services  with  the  two  new  types  of 
authorizations as part of Open Bank-
ing, namely, “Account Information Ser-
vice  Provision”  and  “Payment  Order 
Start Service Provision,” as well as the 
opportunity to offer Mobile POS.

•  30  million  potential  unbanked  us-
ers in Turkey: Techfin and mobile tel-
ecommunications  services  provide 
a  convenient  environment  for  many 
people  to  access  financial  services 
due  to  ease  of  use.  Turkcell  has  the 
potential  to  reach  nearly  30  million 
unbanked  users  in  Turkey  providing 
opportunity  to  access  financial  ser-
vices,  which  is  important  for  individ-
uals in terms of economic independ-
ence and social equality.

• Increase in demand for contactless 
payment methods by individuals and 
institutions  after  the  pandemic:  The 
use  of  POS  devices  and  cash,  which 
can  cause  contamination,  declined 
during  the  COVID-19  pandemic.  The 
pandemic  period  has  enabled  many 
people to meet with digital/contact-
less payment systems and resulted in 
increased  use  of  such  systems.  The 
anticipated increase in demand even 
after  the  pandemic  creates  an  op-
portunity for Turkcell.

•  More  accurate  credit  scoring  with 
the  Credit  Registration  Bureau  (KKB) 
and  telecom  data:  Turkcell  knows  its 
customers better leveraging the cus-
tomer data it gathers through its tele-
com business. Thus, the most conven-
ient  loan  options  can  be  offered  to 
customers  in  the  financing  business 
based on KKB and telecom data.

•  Financing  the  Turkcell  ecosystem 
and  new  customer  potential:  Finan-
cell, being one of our techfin services, 
offers  individual  and  corporate  cus-
tomers  convenient  financing  oppor-
tunities  for  their  needs.  We  continue 

tomer demand and needs. We aim to 
be the pioneer of this transformation 
with Turkcell Insurance, through inno-
vative solutions and digital processes 
based on big data. 

You can access detailed 
information on our techfin 
services in financial capital and 
intellectual capital sections.

to  add  new  customers  as  well  as 
expand our ecosystem and financing 
volume  via  the  financing  services  of 
Financell.

• Growth  potential 
in  corporate 
segment  with  digital  transformation 
financing:  Companies  in  our  eco-
system  can  acquire  software,  server 
equipment,  smartphones  and  tab-
lets,  which  they  need  on  their  digital 
transformation  journey,  at  custom-
ized  prices,  advantageous  interest 
rates and with flexible payment plans 
through  the  “Digital  Transformation 
Financing”  offer  we  provide  with  our 
Group  company  Financell.  Thereby, 
we support the digitalization journey 
of companies.

•  The  digital  channel  share  of  less 
than  1%  in  the  insurance  sector  re-
flects a significant transformation op-
portunity  considering  changing  cus-

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• Cyber   security products and servic-
es that require Digital Operator com-
petence

You can access details on our 
cyber security products and 
services in the intellectual 
capital section.

•  Contribution  to  digital  transforma-
tion with joint infrastructure

You can access details in the 
manufactured capital section.

Advanced analytical 
capabilities & technology
• Greater focus on and need for ana-
lytical  capability  with  increased  dig-
italization

• Recognizing the customer and early 
detection of their needs by using big 
data and analytical modeling

You can access details in the 
intellectual capital section.

Strong & agile team
• Increasing importance of agile and 
flexible  teams  in  accordance  with 
the need “to master swiftly in difficult 
tasks”,  which  stems  from  digitaliza-
tion

•  Providing  efficiency  through  the 
transformation  of  company  culture 
with a flexible and agile approach

• Effective talent management

You can access details in the 
human capital section.

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Strong corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
106

About Turkcell

Financial 
capital

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123

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Revenues from operations  

Business model hedging

Efficient capital allocation

Diversified financing

Strong and transparent financial management

Transparent investor communication - Investor Relations

Digital finance transformation 

Techfin’s shining stars: Paycell and Financell

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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108

Financial capital

Financial capital

Inputs

Outputs

Value created

Revenues from operations
• Strong cash ﬂow generation

Business model hedging
• Inﬂationary pricing
• Effective use of hedging instruments
• Strong collection performance
• Strong liquidity position

Effective capital allocation
• Asset light model
• Active portfolio management

Financing diversity
• Bank loans
• Debt market instruments
• Sustainable ﬁnancing

Strong and transparent ﬁnancial 
management
• Transparent and accountable ﬁnance    
  management
• Transparent investor communication

TRY29.1

billion revenue

18.5%

operational 
CAPEX / sales 
ratio

USD132

million long 
FX position

Outputs

TRY12.3

billion EBITDA

TRY6.3

billion EBIT

TRY3.4

billion free cash ﬂow

Meetings with

506

investors

TRY4.2

billion net income

0.8x

consolidated 
leverage ratio

EUR50

million sustainable / green 
ﬁnancing

Value created through  
sustainable growth
• Real growth
• Investments

Strong balance sheet structure
• Liquidity performance
• Optimized debt maturity and cost of  
  funding
• Foreseeable net income performance

Market capitalization

Dividend paid and dividend yield

Value created for countries 
of operation
• Contribution to GDP

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TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
110

Strong financial performance

As part of our solid 
corporate governance 
efforts, we disclose our 
financial management 
approach to our 
stakeholders through 
our integrated annual 
reports and quarterly 
and annual results 
presentations, as well 
as our website, and the 
meetings we attend 
and organizations we 
hold.

We  view  our  financial  capital  as  the 
key  economic  input  of  all  activities 
we  carry  out  on  our  journey  towards 
creating  stakeholder  value.  Ensuring 
the  continuity  of  our  superior  service 
quality  through  our  strong  infrastruc-
ture, introducing our country and peo-
ple  to  the  latest  technologies,  further 
improving employment conditions, re-
alizing social responsibility projects of 
true  benefit  and  creating  shareholder 
value through dividends and increased 
market  capitalization  requires  robust 
financial  performance.  In  this  respect, 
strong  and  sustainable  financial  per-
formance is among Turkcell’s material 
topics.

As  part  of  our  activities  within  the 
scope  of  financial  capital,  we  aim 
for  the  revenues  generated  by  our 
operations  to  deliver  strong  opera-
tional  profitability  through  disciplined 
cost  management  practices.  We  also 
take  measures  to  effectively  manage 
our  working  capital  and  operational 
capex,  thereby  supporting  the  strong 
cash flow generation capability of our 
operations.

Our  business  model  hedging  practice 
is  of  great  importance  to  us  in  terms 
of  the  sustainability  of  financial  per-
formance. In this regard, we price our 
products  and  services  factoring  in 
prevailing  economic  conditions  in  ac-
cordance with our inflationary pricing 
policy, aiming to maintain real revenue 
growth  and  eliminate  the  inflationary 
impacts on our operational profitabili-
ty. Furthermore, through the active use 
of  hedging  instruments,  we  also  pro-
tect  our  financials  against  exchange 
rate  fluctuations,  while  securing  our 
cash  flows.  Maintaining  strong  liquid-
ity resources provides a resilient posi-
tioning against macroeconomic crises. 
We ensure the efficient use of capital 
through  the  balanced  management 
of  our  leverage  level.  Meanwhile,  the 
effective management of our working 
capital with strong collection practic-
es  supports  our  cash  generation  per-
formance.

In  this  context,  our  business  mod-
el  hedging  practices  and  successful 
budget  management  approach  help 
transform  our  successful  operational 
activities  into  strong  financial  results. 
Efficient  capital  allocation  is  anoth-
er core topic in terms of our financial 
capital.  While  carrying  out  activities 
to  allocate  our  capital  resources  to 
more profitable areas that bring high-
er  growth,  we  also  aim  to  unlock  the 
potential  value  of  our  assets  in  our 
balance sheet.

We  closely  monitor  local  and  global 
debt  and  capital  markets  for  the  fi-
nancing of our operations and invest-
ments,  meeting  our  financing  needs 
through optimum funding methods by 
utilizing diverse borrowing instruments 
of appropriate currency, cost and ma-
turity  structure.  We  effectively  utilize 
both  traditional  financing  instruments 
such  as  bank  loans  and  open  credit 
lines,  and  capital  market  instruments 
such  as  bonds,  lease  certificates  and 
Eurobond issuances in local and inter-
national markets.  As part of our solid 
corporate governance efforts, we dis-
close  our  financial  management  ap-
proach to our stakeholders through our 
integrated  annual  reports  and  quar-
terly and annual results presentations, 
as well as our website, and the meet-
ings we attend and organizations we 
hold. In line with the goal of increasing 
our  Company’s  market  capitalization 
through  transparent  communication, 
we aim to develop and deepen the in-
vestor profile and increase the weight 
and  number  of  long-term  institutional 
investors.

You may review the details of 
our audited annual financial 
performance in the consolidated 
financial statements section.

COVID-19 note
Due to measures taken during the 
pandemic  period,  including  cur-
few restrictions, the use of data on 
mobile and fixed networks has in-
creased with greater time spent at 
home and the rising use of remote 
working  and  education  platforms. 
This  has  resulted  in  a  significant 
increase in the need for digitaliza-
tion. In this context, while rising de-
mand for our data and digital ser-
vices    and  solutions  has  positively 
impacted  our  revenues,  our  inter-
national  roaming  revenues  have 
notably  decreased  due  to  travel 
restrictions. Additionally, there were 
a  number  of  delays  to  our  corpo-
rate projects.

With a focus on liquidity manage-
ment and collection risk  in order to 
maintain  our  strong  financial  per-
formance, we made dynamic rev-
enue  projections  and  implement-
ed  effective  cost  control  actions. 
Meanwhile,  we  prioritized  revenue 
generation  in  planning  our  capital 
expenditures.  During  the  pandem-
ic,  we  maintained  communication 
with  our  stakeholders  with  the 
same  level  of  focus. We  transpar-
ently  communicated  our  risks,  ex-
pectations and assessments to our 
stakeholders  in  the  COVID-19-fo-
cused  teleconference  meeting  we 
organized at the beginning of April. 
Subsequently,  we  shared  updates 
on the subject during our quarter-
ly  announcements  and  meetings 
with our investors.

As  Turkcell  Group,  going  forward 
we  plan  to  lead  the  digital  trans-
formation  process  that  has  been 
accelerated  by 
the  COVID-19 
pandemic,  leveraging  our  strong 
financial  structure,  innovative  digi-
tal  services  and  solutions,  and  our 
customer-oriented  business  ap-
proach.  Ensuring  the  sustainability 
of  this  transformation  and  imple-
menting services that establish the 
digital backbone of Turkey remain 
key  objectives  of  our  financial  ef-
forts.

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Revenues from operations
In  generating  revenues  from  ope-
rations,  we  ensure  the  continuity 
of the innovative services we offer 
our  customers,  improve  the  emp-
loyment  conditions  of  our  emp-
loyees,  contribute  to  the  national 
economy  through  our  investments, 
and create value for our investors.

2020  was  a  year  during  which  all 
macroeconomic 
developments 
reflected  the  impact  of  COVID-19 
pandemic,  as  the  world’s  econo-
mies  shrank  on  related  disruption 
to the global supply chain and de-
mand.

Despite these 
developments, which 
affected Turkey and 
other markets in 
which we operate, we 
sustained our strong 
financial performance 
in 2020 thanks to our 
successful strategy 
and strong business 
model.

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Turkcell Group revenue
TRY million

15.8%
2020 
growth

Despite the negative impact of travel 
restrictions  on  international  roaming 
revenues,  our  revenues  increased  by 

15.8%  to  TRY29.1  billion,  driven  mainly 
by increased data and digital service 
usage.

6
2
4
0
1

,

9
1
0
2

0
8
3
5

,

9
1
0
2

8
8
7
8

,

8
1
0
2

0
0
5
4

,

8
1
0
2

0
7
2
2
1

,

0
2
0
2

6
9
2
6

,

0
2
0
2

17.7%
2020 
 growth

17.0%
2020 
 growth

Turkcell Group EBITDA
TRY million

Turkcell Group EBIT
TRY million

Financial capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
112

We sustained our 
strong operational 
profitability in 2020 
with the contribution 
of remote working 
practices, the 
decline in travel 
expenses, the 
increased share 
of digital sales 
channels, savings in 
marketing expenses 
and disciplined 
cost management 
practices.

We  sustained  our  strong  operational 
profitability  in  2020  with  the  contri-
bution  of  remote  working  practices, 
the  decline  in  travel  expenses,  the  in-
creased share of digital sales channels, 
savings in marketing expenses and dis-
ciplined  cost  management  practices. 
Accordingly, EBITDA increased by 17.7% 
to TRY12.3 billion, while the EBITDA mar-
gin rose to 42.2%. Our EBIT margin was 
21.6%. In a period, during which macro-

economic  uncertainties  prevailed  due 
to the pandemic, and while the Turkish 
Lira depreciated 24% and 35% against 
the US Dollar and Euro, respectively, we 
registered    strong  net  income  on  the 
back of our robust operational perfor-
mance and prudent financial risk man-
agement  practices.  Accordingly,  our 
net income rose 30.5% on a yearly ba-
sis to TRY4.2 billion, marking the historic 
high achieved by our company.

7
3
2
4

,

6
4
2
3

,

9
1
0
2

0
2
0
2

30.5%
2020 
 growth

1
2
0
2

,

8
1
0
2

Turkcell Group net income
TRY million

Operating in the telecom sector brings 
responsibilities such as having a strong 
infrastructure  capable  of  meeting  ris-
ing capacity needs and regularly intro-
ducing customers to new technologies. 
The revenues derived from our opera-
tions and our ability to generate strong 
cash  flows,  along  with  our  financing 
resources, allow us to continue our in-
frastructure investments and introduce 

our  customers  to  the  technologies  of 
tomorrow. Duly, our operational capital 
expenditures  (excluding  license  fees) 
in  2020  amounted  to  18.5%  of  our  to-
tal  revenues.  During  this  period,  while 
making  investments  we  followed  a 
disciplined approach supportive of our 
goal  of  increasing  customer  satisfac-
tion, providing social benefit and sup-
porting our revenue generation.

Operational CAPEX 
(excluding license fee)
/ sales ratio
Ratio

When our non-operational capital ex-
penditures are included, we have made 
a total  investment of TRY32 billion over 
the past 5 years. We have contributed 
to  cost  savings  and  the  development 
of domestic technologies by supplying 
part  of  our  network  equipment  from 
domestic production.

0.5 pp
2020 
 growth

%
5
8
1

.

8
1
0
2

%
0
8
1

.

9
1
0
2

%
5
8
1

.

0
2
0
2

Details of our domestic 
network investments and 5G 
activities can be found in the 
manufactured capital section of 
our report.

We have contributed 
over TRY50 billion 
to the Turkish 
economy since our 
establishment! The 
revenues generated 
from our operations 
enable us to support 
the economies of 
those countries in 
which we operate.

We  will    be  able  to  finance  the  tele-
com  equipment  procurements  to  be 
made  over  the  next  3  years  in  Euros 
and  Renminbi  (RMB)  as  part  of  the 
EUR500  million,  8-year  maturity  loan 
agreement signed with the China De-
velopment Bank (CDB) in 2020 for the 
financing  of  our  infrastructure  invest-
ments.  Having  signed  this  long-term 
loan  agreement  at  favorable  terms, 
we  have  encouraged  local  currency 
trade  with  foreign  suppliers,  strengt-
hening  trust  both  in  Turkcell  and  Tur-
key’s  economy.  Furthermore,  we  sig-
ned  a  loan  agreement  of  US$90  mil-
lion in December 2020 with ING BANK 
N.V. and AB Svensk Exportkredit within 
the framework of the insurance of the 
Swedish  Export  Credit  Agency  (EKN) 
for the financing of products and ser-
vices  procured  from  Ericsson  AB  and 
Ericsson  Telekomünikasyon  A.Ş.  The 
loan agreement comprises three tran-
ches, each with a maturity of 10 years.

Regarding  the  revenues  we  generate 
from  operations,  free  cash  flow  ge-

Free cash flow
TRY billion

-0.1

2014

-2.5

2015

-2.2

2016

4.5G investment period

neration  is  among  the  issues  that  we 
focus on the most. Our free cash flow 
generation  performance,  which  was 
at a negative level between 2014 and 
2018, particularly due to the frequency 
and network investments made in re-
lation  to  4.5G  technology,  turned  po-
sitive in 2018 upon completion of tho-
se investments in large part, and was 
followed  by  a  rising  trend  of  strong 
operational  performance.  We  sustai-
ned our solid financial performance in 
2020, creating free cash flow of TRY3.4 
billion. We intend to continue this per-
formance  until  the  next  technology 
investment  cycle,  by  maintaining  suc-
cessful  operational  performance  and 
ensuring disciplined capital expenditu-
re  and  working  capital  management.
As Turkcell, we operate in 4 countries, 
creating value through economic, so-
cial  and  technological  development. 
We  also  contribute  to  the  digitaliza-
tion of other nations by exporting our 
superior  digital  services,  knowledge 
and experience to 37 countries. 

3.4

2.4

-0.7

0.0

2017

2018

2019

2020

We support the economy and GDP of 
other countries, as our operations and 
services  result  in  increased  economic 
activity, creating job opportunities and 
generating tax revenue.

SDG 8.1

Business model hedging
Business model hedging is one of our 
key  focus  areas  in  sustaining  strong 
financial  performance.  In  this  con-
text,  we  price  our  products  accord-
ing to prevailing economic conditions, 
actively  protect  our  balance  sheet 
against  exchange  rate  fluctuations 
using hedging instruments, and effec-
tively  manage  our  liquidity  resources. 
During the pandemic period collection 
performance  management  has  also 
been an issue of greater focus.

As  Turkcell,  we  pay  attention  to  the 
right  pricing  of  the  value  proposition 
we  offer  to  our  customers.  While  im-
plementing  pricing,  it  is  vital  to  take 
economic  conditions  into  account  for 
the  sustainability  of  our  services.  In 
this  respect,  we  focus  on  pricing  our 
products  and  services  to  reflect  in-
flation.  Our  inflationary  pricing  prac-
tice  contributes  primarily  to  achiev-
ing  sustainable  real  revenue  growth, 
while helping to eliminate inflationary 
pressure  on  our  costs,  and  thereby 
protecting  our  operational  profitabili-
ty. Moreover, as we determine our in-
vestment budget based on generated 
revenues,  we  also  protect  our  capital 
expenditures  against  exchange  rate 
fluctuations,  reflecting  the  impact  of 

such  fluctuations  to  our  revenues  in 
the long run through inflationary pric-
ing. Leveraging our analytical compe-
tencies and using big data effectively, 
we price our products and services by 
understanding  the  needs  of  our  cus-
tomers, and reflecting inflation trends. 
Accordingly, we offer the right price to 
the right customer at the right time.

We  support  our  robust  operational 
and financial performance with strong 
ARPU generation backed by inflation-
ary  pricing  practice.  Meanwhile,  our 
growing postpaid subscriber base, ris-
ing  data  usage  and  our  upsell  strate-
gy also support ARPU generation. We 
expect our ARPU performance to trend 
with the inflation path in the long term.

113

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V
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A
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C
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L

S
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R
O
N
G
C
O
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P
O
R
A
T
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G
O
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R
N
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E

F
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P
E
N
D
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E
S

I

Financial capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
114

As at the end of 
2020, we have a net 
FX long position of 
USD132 million. Going 
forward, we aim to 
maintain our foreign 
exchange position 
at a neutral-positive 
level in order to 
minimize the impact 
of exchange rate 
movements on our 
financials.

Turkcell ARPU vs. CPI Trend
Q118=100
Company and TUIK announcements

155

142

152

149

136

127

137

131

138

134

139

138

115

112

119

111

124

121

120

114

8
1
3
Q

8
1
4
Q

9
1
1

Q

9
1
2
Q

9
1
3
Q

9
1
4
Q

0
2
1
Q

0
2
2
Q

0
2
3
Q

0
2
4
Q

Tcell ARPU (exl. M2M)

CPI

100

100
8
1
1

Q

105

104

8
1
2
Q

We follow a prudent risk management 
approach within the framework of our 
business  model  hedging  practice.  In 
this  respect,  we  hold  the  bulk  of  our 
cash  in  hard  currencies  as  a  natural 
hedging  mechanism.  As  of  the  end 
of  2020,  excluding  FX  swap  transac-
tions,  74%  of  our  cash  is  in  USD,  4%  is 
in  EUR  and  22%  is  in  TRY.  In  addition, 
we  actively  use  hedging  tools  within 
the scope of our prudent risk manage-
ment  approach.  Utilizing  these  tools, 
we  convert  our  floating  rate  foreign 
currency  denominated  debt  into  fixed 
rate Turkish Lira debt. While 78% of our 
total debt before hedging transactions 
is in foreign currency as at the end of 
2020,  the  ratio  declines  to  43%  when 
the effects of hedging instruments are 
included.  In  order  to  reduce  our  risk 

by  diversifying  our  foreign  exchange 
transactions  and  position,  we  also 
prioritize  local  currency  trade  when 
making payments to our suppliers. This 
year,  we  signed  Turkish  Lira  denomi-
nated  payment  agreements  with  our 
largest suppliers to protect our foreign 
exchange denominated assets. Thanks 
to  our  successful  hedging  practices, 
we  were  able  to  turn  our  foreign  ex-
change  position,  which  was  negative 
in  2018,  to  positive  in  2019.  As  at  the 
end  of  2020,  we  have  a  net  FX  long 
position  of  USD132  million.  Going  for-
ward,  we  aim  to  maintain  our  foreign 
exchange position at a neutral-positive 
level  in  order  to  minimize  the  impact 
of  exchange  rate  movements  on  our 
financials.

Net FX position
USD million

5
1
1

9
1
0
2

2
3
1

0
2
0
2

8
1
0
2

4
2
2
-

As a telecom 
company that 
operates in emerging 
markets, we must 
always be prepared 
for ups and downs 
in financial markets, 
and sustain a strong 
liquidity position 
accordingly to ensure 
operational continuity.

Hedging  tools  also  protect  us  against 
interest rate risk in the market. Accord-
ingly,  approximately  39%  of  our  total 
debt has a floating interest rate as at 
the  end  of  2020,  while  our  fixed  rate 
borrowing  share  is  at  approximately 
94%  including  the  effects  of  hedging 
instruments. Also vital to the risk man-
agement approach is the fact that the 
hedging tools that we use cover both 
principal and interest payments of the 
respective  debt  service  to  maturity.  In 
this  respect,  the  terms  of  our  hedg-
ing agreements are protected against 
fluctuations 
in  market  conditions. 
Moreover,  we  work  with  well-known, 

reputable  and  reliable  counter  parties 
when entering into these agreements. 

As  a  telecom  company  that  operates 
in emerging markets, we must always 
be  prepared  for  ups  and  downs  in  fi-
nancial  markets,  and  sustain  a  strong 
liquidity position accordingly to ensure 
operational  continuity.  Liquidity  man-
agement  is  therefore  a  crucial  area 
for our financial capital. In this respect, 
we hold TRY11.9 billion in cash, mostly in 
foreign currency on our balance sheet 
as at the end of 2020. This amount is 
sufficient to cover our entire debt ser-
vice until the end of 2024.

Liquidity management*
Principal & interest payments (USD million)

1,517

1,517

552
275

277

2021

325

325

325
66
259

255

255

2022

2023

2024

2025+

FX

Local Currency

In addition to our strong cash position, 
our  committed  credit  lines  of  USD727 
million, as well as our strong free cash 
flow  generation  performance  support 
our liquidity position.

Another  crucial  focus  area  concern-
ing liquidity is debt management. De-
spite  the  significant  depreciation  of 

the  Turkish  Lira  against  the  US  Dollar 
and Euro in 2020, we managed to low-
er  our  leverage  level  (net  debt/EBIT-
DA)  to  0.8x,  thanks  to  our  strong  cash 
generation performance. Until the next 
technology  investment  cycle,  our  goal 
will be to lower our leverage level with 
strong  cash  flow  generation,  and  to 
prepare for future investments.

x
4
.
1

8
1
0
2

x
0
.
1

9
1
0
2

x
8
0

.

0
2
0
2

Consolidated leverage ratio

*   Data of Turkcell Group companies excluding Turkcell Financing Company. 
   Includes principal and interest payments.

115

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I

Financial capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
116

We also sustained 
a robust collection 
performance with 
respect to our 
financing business in 
2020 in the pandemic 
environment, keeping 
our cost of risk below 
sector averages.

Additionally,  the  synchronized  mone-
tary  and  fiscal  expansion  of  govern-
ments  and  central  banks  to  mitigate 
the  devastating  effects  of  COVID-19 
have  caused  the  declining  interest 
rates to fall to historic low levels. In this 
respect,  we  prepaid  the  USD1  billion 
syndicated loan, which we had utilized 
to  finance  infrastructure  investments 
and potential investment opportunities 
as part of the agreement signed with 
BNP  Paribas,  Citibank,  HSBC,  ING  and 
Intesa  Sanpaolo  banks  in  2015,  there-
by optimizing our financing costs. Fur-
thermore,  we  extended  our  debt  ma-
turity with the long-term loans utilized 
throughout the year.

Collection  performance  has  been  an 
area  of  increased  focus,  particularly 
during the pandemic period. While we 

took timely actions for collections, our 
customers  were  also  sensitive  to  bill 
payments given that telecom services 
are an integral part of their lives. These 
two factors enabled us to maintain our 
strong collection performance in 2020. 

We  also  sustained  a  robust  collection 
performance  with  respect  to  our  fi-
nancing  business  in  2020  in  the  pan-
demic  environment,  keeping  our  cost 
of  risk  below  sector  averages.  We 
follow a prudent approach to granting 
loans  to  customers.  We  take  several 
metrics including the payment perfor-
mance  of  our  customers  with  respect 
to their telecom bills, as well as cred-
it  bureau  scores  into  consideration  as 
part of our evaluation process. This ap-
proach  forms  the  basis  of  our  strong 
collection performance. 

%
2
3

.

9
1
0
2

%
4
2

.

0
2
0
2

%
0
2

.

8
1
0
2

Financell cost of risk
Ratio

Efficient capital allocation
The biggest challenges facing the tel-
ecom  industry  on  a  global  scale  are 
high  capex  requirements  and  slow 
revenue  growth  due  to  competition. 
For  this  reason,  many  telecom  com-
panies  around  the  world  are  lower-
ing  their  resource  allocation  in  the 
traditional  telecom  business  through 
public  offerings,  M&A  transactions, 
infrastructure  sharing,  and  sell  and 
in-
leaseback 
vesting  into  higher  growth  areas.  As 
Turkcell,  we  also  invest  in  areas  of 
low  investment  requirement  such  as 
digital  services,  techfin  services,  and 
information technologies, focusing on 
digital  efficiency,  and  adopting  the 

transactions,  while 

“Asset-Light”  approach  to  support 
our economic growth. Going forward, 
our goal will be to achieve balanced 
revenue  growth  through  traditional 
telecom  businesses  and  new  invest-
ment  areas.  Moreover,  we  are  plan-
ning  to  also  finance  our  investments 
in new businesses with free cash flow 
generation and active portfolio man-
agement  activities,  along  with  debt 
financing.  As  part  of  active  portfolio 
management,  we  aim  to  unlock  the 
value    of  the  assets  in  our  balance 
sheet  by  carrying  out  capital  market 
or private transactions when suitable 
market conditions and investor appe-
tite exist. 

SDG 8.2

UNGC CFO Taskforce
We  are  among  the  founding 
members  of  the  UN  Global 
Compact  CFO  Task  Force  ini-
tiative,  which  aims  to  develop 
sustainable  corporate  finance 
models  and  tools  in  line  with 
United  Nations  Sustainable 
Development  Goals.  This  initi-
ative  aims  to  ensure  that  the 
concept of sustainable finance 
becomes  an  essential  factor 
in  the  policy-making  process-
es  of  institutions  via  financial 
leaders  of  the  global  business 
world,  to  achieve  sustainable 
development goals and to cre-
ate a large, liquid and effective 
market  for  investments  that 
serve these goals.

The  initiative,  in  which  Turk-
cell  Chief  Financial  Officer 
Osman  Yılmaz  participated, 
determined  the  critical  task 
areas  in  accordance  with  the 
SDGs  as  being  ‘Impact  thesis 
and  Measurement’,  ‘Integrat-
ed  Strategy  and  Investments’, 
‘Integrated  Corporate  Finance’ 
and  ‘Integrated  Communica-
tions and reporting’. 

42  global  companies  from  19 
sectors  with  a  total  market 
capitalization  of  over  USD1 
trillion  participate  in  the  CFO 
Task Force. In addition to con-
tributing  to  the  SDGs  within 
the  scope  of  this  project,  the 
project also develops common 
policies to realize the goals set 
for the UN 2030 agenda.

SDG 17.16

As  Turkcell,  we  carry  out  ac-
tivities  to  increase  the  partic-
ipation  of  Turkish  institutions 
and  organizations  in  the  CFO 
Taskforce  in  cooperation  with 
UN  Global  Compact  Network 
Turkey.

We transferred our 41.5% stake in Fin-
tur  Holdings  B.V.  to  Sonera  Holding 
B.V.  in  2019  as  part  of  our  efficient 
capital allocation focus. The cash in-
flow  that  resulted  from  this  transac-
tion  helped  us  improve  our  leverage 
ratio and liquidity, and strengthen our 
foreign exchange position.

Moreover, as part of the support we 
provide to infrastructure sharing pro-
jects,  we  share  fixed  infrastructure 

with  Türksat  and  Vodafone,  which 
enables us to reach more households 
with  our  services  and  achieve  effi-
ciencies.  Going  forward,  the  poten-
tial for passive infrastructure sharing, 
particularly  for  fiber,  will  continue  to 
be  evaluated.  In  parallel  to  global 
trends,  we  believe  that  infrastructure 
sharing  has  the  potential  to  create 
operational  savings  as  well  as  sup-
port  the  national  economy  via  the 
efficient use of resources.

Diversified financing
By leveraging our established market 
relations,  we  aim  to  utilize  alterna-
tive  funding  methods  and  resources 
in  pursuit  of  financing  diversity,  be-
side  our  strong  equity  position.  We 
utilize  loans  obtained  from  domestic 
and  foreign  banks,  issue  Eurobonds 
in  international  markets,  bonds,  bills, 
lease  certificates  and  Asset  Backed 
Securities in local markets, and obtain 
ECA loans for financing procurements 
from  foreign  suppliers.  We  also  use 
sustainable  financing  (sustainability 
indexed  loan,  green  loan)  as  part  of 
diversified funding resources.

SDG 8.4

We  play  a  leading  role  in  Turkey  in 
terms  of  accessing  sustainable  fi-
nancing  sources.  In  2019,    utilizing  a 
“Sustainability Linked Loan” of EUR50 
million with 3-year maturity from BNP 
Paribas,  we  further  strengthened  our 
leading  position  in  funding  activi-
ties  through  sustainable  financing. 
In  2020,  we  entered  into  a  5-year 
maturity,  EUR50  million  “Green  Loan 
Agreement”  with  ING  to  finance  our 
environmentally-friendly  investments 
in renewable energy, energy efficien-
cy,  green  digital  services  and  green 
buildings,  strengthening  our  position 
in this field.

Loans utilized under Sustainable 
/ Green financing loans
EUR million

0
5

0
5

9
1
0
2

0
2
0
2

-

8
1
0
2

Strong and transparent 
financial management
It  is  also  of  importance  for  our  cor-
porate  structure  that  we  have  a 
transparent  and  accountable  finan-
cial management, as well as a robust 
one.  We  plan,  manage  and  analyze 
our  budget  effectively  within  the 
scope  of  this  transparent  and  strong 
financial  management  approach. 
In  our  countries  of  operation,  we 
manage  our  tax  practices  transpar-
ently  and  accountably,  directly  and 
indirectly,  and  disclose  them  via  our 
annual  reports,  material  disclosures, 
and  quarterly  and  annual  results  re-

leases. Across the company, we share 
information in many different formats, 
including  share  performance  report-
ing,  senior  management  reports  and 
benchmarking analysis.

In 
line  with  being  an  exemplary 
corporate  citizen,  we  carry  out  an-
ti-bribery  and  anti-corruption  activ-
ities  with  zero-tolerance,  and  act  in 
accordance with legislation to main-
tain  an  effective  competitive  market 
environment.  We  conduct  all  our  fi-
nancial  transactions  in  accordance 
with CMB and SEC regulations.

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Financial capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
118

We explain our 
approach to 
communication with 
our investors and 
other stakeholders 
in our social values 
and relationships 
section, and our 
communication 
channels in the 
stakeholder 
communication 
channels table.

Celebrating 
our 20th 
anniversary 
at the New York 
Stock 
Exchange!

2020.  By  the  end  of  2020,  Turkcell’s 
American  Depositary  Shares  num-
bered 63.3 million.

On  October  15,  2015,  Turkcell  issued 
bonds with a nominal value of USD500 
million and a maturity of 10 years. On 
April 11, 2018, we issued bonds, which 
are also traded on the Irish Stock Ex-
change (Euronext Dublin), with a nom-
inal  value  of  USD500  million,  a  ma-
turity  of  10  years  and  a  coupon  rate 
of  5.80%.  In  addition,  our  subsidiary 
Superonline  carried  out  three  sukuk 
issuances for a total of TRY325 million 
on  February  4,  June  23  and  Novem-
ber 18 of 2020. Our subsidiary Turkcell 
Finansman  received  on  November  12 
CMB  approval  for  a  bond  issuance 
with a limit of TRY500 million, but has 
made no issuances in 2020.

The  share  of  foreigners  in  Turkcell’s 
free  float  was  79.4%  in  2020.  In  the 
same  period,  the  share  of  foreigners 
in Borsa Istanbul was 49%.

We  regularly  report  annually  on  the 
performance of Turkcell shares at the 
BIST  and  NYSE,  and  also  report  on 
five-year trends.

You may access the details of 
our principles and reporting 
on anti-bribery and corruption, 
competition management 
and related issues in the 
strong corporate governance 
section, and the data on taxes 
in the consolidated financial 
statements section.

Transparent  investor  communication 
- Investor Relations
We  conduct  our  investor  relations 
activities in accordance with Corpo-
rate  Governance  Principles,  having 
adopted  an  approach  that  ensures 
accessibility,  and  that  provides  rapid 
feedback to stakeholders, and deliv-
ers transparent, consistent and timely 
information.  As  part  of  our  transpar-
ent  and  active  communication,  we 
give  access  to  documents  such  as 
audit  reports,  press  releases  and  in-
vestor  presentations,  which  include 
quarterly  financial  and  operational 
performance on a quarterly basis, on 
our website. 

We  have  begun  to  issue  a  consoli-
dated  integrated  annual  report,  and 
to  disclose  related  information  pre-
viously filed separately in our annual 
reports and sustainability reports.

Capital market instruments
performance
Turkcell  shares  commenced  trading 
simultaneously  on  the  Borsa  Istanbul 
(BIST)  and  the  New  York  Stock  Ex-
change  (NYSE)  on  July  11,  2000.  The 
shares  are  traded  under  the  TCELL 
ticker  at  the  BIST  and  as  American 
Depositary  Shares  (ADS)  on  the  NYSE 
under the ticker TKC.*

Turkcell’s  issued  capital  has  a  nom-
inal  value  of  TRY2.2  billion.**  Turkcell, 
the  only  Turkish  company  listed  both 
on  Borsa  Istanbul  and  the  New  York 
Stock Exchange, became the 9th most 
valuable company among those trad-
ed  on  the  BIST  with  a  market  value 
of  TRY35.4  billion  as  of  December  31, 

  * Two ADRs represent five shares.
**  It includes 2,200 million shares, each with a nominal value of 1 TL.

The Turkcell Investor 
Relations team 
consists of members 
with a deep 
understanding both 
of the company 
itself and of sector 
dynamics, and who 
can convey the 
strategy and focus 
areas of the company 
comprehensively.

Share and bond buyback
The  Turkcell  Board  of  Directors  au-
thorized  the  Company  management 
to  buy  back  Company  shares  and 
bonds with a maximum fund amount 
of  TRY450  million  in  an  attempt  to 
protect our investors against any per-
ception  of  instability  that  may  arise 
in  the  short  and  medium  term;  sub-
sequent  to  the  events  on,  and  after 
July  15,  2016,  and/or  due  to  the  po-
tentially negative reflection of global 
macroeconomic volatility on Turkey in 
accordance with the announcements 
of  the  Capital  Markets  Board  dated 
July 21, 2016 and July 25, 2016. In this 
context, since 2016, 16.9 million shares 
(equivalent  to  TRY180.2  million)  and 
bonds  totaling  USD20.5  million  nom-
inal  amount  (equivalent  to  TRY103.5 
million)  have  been  purchased.  All  of 
the bonds had been sold back as at 
the end of 2020.

Our business principles
We  adopt  Corporate  Governance 
Principles.  The  basic  business  prin-
ciples  adopted  by  the  Turkcell  In-
vestor  Relations  Department  include 
accessibility,  the  provision  of  rapid 
feedback  to  stakeholders,  and  their 
informing  transparently,  consistently 
and  on  a  timely  basis.  Information 
flow  is  provided  to  all  stakeholders 
through  the  Public  Disclosure  Plat-
form, Turkcell Investor Relations web-
site and social media platforms. 

The  Turkcell  Investor  Relations  team 
consists  of  members  with  a  deep 
understanding  both  of  the  company 
itself  and  of  sector  dynamics,  and 
who can convey the strategy and fo-
cus  areas  of  the  company  compre-
hensively.  The  team  is  differentiated 
in the sector by its dynamic structure 
and effective communication. Turkcell 
Investor  Relations  works  to  establish 
long  lasting  relationships  with  inves-
tors.  Questions  from  investors  and 
analysts  are  answered  in  the  fastest 
and  most  transparent  manner  within 
the framework of relevant legislation. 
In  this  context,  as  the  Investor  Rela-
tions Department, throughout 2020:

•  We  held  a  total  of  506  meetings 
with  institutional  investment  funds, 
most being virtual.

• We attended 19 investor conferenc-
es, of which 15 were virtual.

• We shared our financial results four 
times during the year via teleconfer-
ences.

• We shared the initial impact of the 
COVID-19  pandemic  on  our  business 
with our investors.

•  Over  a  thousand  information  re-
quests were received throughout the 
year  via  phone  and  e-mail,  to  all  of 
which we responded.

The  limitations  on  travel  arising  from 
the pandemic have obliged us to hold 
our  meetings  with  analysts,  investors 
and  credit  rating  agencies  virtually. 
In this respect, we have reduced our 
travel related carbon footprint.

The top 10 topics most frequently 
asked to Investor Relations in 2020 
were:

The effects of the pandemic 
on our activities,

The impact of 
macroeconomic conditions 
on business model and 
financials,

Shareholder change, and its 
possible effects on strategy,

The competitive environment, 
our pricing policy and 
the trend of operational 
indicators,

5G license tender roadmap 
and related capital 
expenditures,

Details on hedging 
instruments,

Strategic focus areas, 
priorities and goals,

Strategy and expectations in 
international operations,

Details regarding operational 
investments,

Liquidity and debt structure.

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Our company’s 
ESG rating was 
determined as 
A by Morgan 
Stanley Capital 
International (MSCI) 
in January 2021. 
Turkcell is the only 
telecommunications 
company in Turkey to 
have this rating.

We  strive  to  provide  the  maximum 
benefit and create value for Turkcell 
and our stakeholders 
The  primary  goal  of  Turkcell  Inves-
tor  Relations  is  to  increase  the  mar-
ket  capitalization  of  our  company 
and  the  trading  volume  of  Turkcell’s 
shares. Within this scope, our target is 
to  develop  and  deepen  Turkcell’s  in-
vestor profile and increase the weight 
and number of long-term investors in 
the institutional investor base. 

Our  communication  makes  a  differ-
ence 
Turkcell  believes  in  simultaneous  and 
open  communication  with  its  stake-
holders.  As  Turkcell  Investor  Rela-
tions, we actively use communication 
channels such as the website and the 
Public  Disclosure  Platform  to  provide 
comprehensive,  accurate  and  timely 
information  to  our  investors  around 
the world.

We  conveyed  our  risks,  expectations 
and  evaluations  regarding  the  pan-
demic to our stakeholders by organ-
izing  a  teleconference  meeting  on 
April 10, 2020, when uncertainty was 
at its peak. This meeting was an ex-
emplary action in terms of transpar-
ent  and  fair  corporate  governance 
practice,  and  was  appreciated  by 
our  stakeholders  for  its  timing  and 
content.

indices  and  perfor-

Sustainability 
mance indicators
Our  successful  activities  in  the  sus-

tainability  area  are  confirmed  by 
our  achievements  in  local  and  glob-
al indices. We have been included in 
the  BIST  Sustainability  Index  (BIST  SI) 
since  its  launch  in  2014.  By  revealing 
companies’  approach  to  sustaina-
bility  issues  such  as  global  warming, 
depletion of natural resources includ-
ing water, health and safety, and em-
ployment,  this  index  provides  an  in-
dependent assessment and registra-
tion of companies by Borsa Istanbul.

Our  company’s  ESG  rating  was  de-
termined  as  A  by  Morgan  Stanley 
Capital  International  (MSCI)  in  Janu-
ary 2021. Turkcell is the only telecom-
munications  company  in  Turkey  to 
have this rating.

Moreover,  Turkcell  is  the  only  Turkish 
telecommunications  company  to  be 
included  in  the  FTSE4Good  Emerg-
ing  Markets  Index  which  measures 
the  ESG  performance,  calculated  by 
FTSE, an independent organization in 
partnership  with  the  London  Stock 
Exchange and Financial Times.

Share information and dividend yield
As  the  investor  relations  team,  we 
aim  to  increase  the  market  capital-
ization  of  Turkcell  to  its  fair  value.  In 
this  respect,  we  evaluate  the  possi-
bilities of creating strategic value  in 
accordance  with  our  policies.  We 
also  aim  for  dividend  distribution  to 
our  shareholders  in  accordance  with 
our  dividend  policy,  and  within  the 
framework of fiscal discipline.

D i v i d e n d   y i e l d

2018
7.2%

2019
3.6%

2020
2.3%*

* In 2020, dividend pay-out ratio to our shareholders was 25%, which was the highest rate permitted by legislation.

27 brokerage 
houses, half of 
which are foreign 
companies, actively 
monitor and analyze 
Turkcell shares. 
As of the end of 
2020, there are 
21 analysts giving 
“buy”, 6 analysts 
giving “hold” and no 
analysts giving “sell” 
recommendation.

TCELL (TL)*

Lowest

Highest

Closing

TKC (USD)*

Lowest

Highest

Closing

2015

7.80

10.67

7.80

2015

6.61

11.32

6.69

2016

7.00

9.80

7.68

2017

7.38

13.53

13.53

2018

9.19

14.73

11.46

2019

10.55

14.23

13.48

2020

11.78

16.83

16.10

2016

2017

2018

2019

2020

5.02

8.52

5.44

5.26

8.93

8.93

3.58

9.74

5.30

4.37

6.63

5.67

4.29

6.13

5.39

*Share prices are adjusted for dividend payments.

Source: Bloomberg

Stock exchange symbols

Country

Share

ADR

Bond

Bond

Stock exchange

Borsa İstanbul

NYSE

Irish Stock Exchange

Irish Stock Exchange

Ticker symbol

TCELL

TKC

ISIN: XS1298711729

ISIN: XS1803215869

Analyst recommendations

Share performance (Relative) (2020)

78% 22%

BUY

HOLD

1.3

1.2

1.1

1.0

0.9

0.8

0.7

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Financial capital

TURKCELL

S&P
Fitch
Fitch National

Long-term 
credit rating

BB-
BB-
AAA (tur)

Outlook

Date

Stable
Stable
Stable

April 2019
March 2021
March 2021

SUPERONLINE

Long-term 
credit rating

JCR-ER
JCR-ER National

BBB-
AA (Trk)

Outlook

Date

Negative
Stable

May 2020
May 2020

Credit ratings 
Turkcell, 
Superonline 
and Turkcell 
Finansman* 
receive ratings 
from the world’s 
leading credit 
rating agencies.

TURKCELL 
Finansman

Long-term 
credit rating

Fitch
Fitch National

B+
AA- (tur)

Outlook

Date

Stable
Stable

April 2020
April 2020

International credit  rating agency Fit-
ch  Ratings  upgraded  our  Company’s 
national long-term credit rating from 
“AA+  (tur)”  to  “AAA  (tur)”  and  kept  its 

outlook  as  “Stable”.  Our  company’s 
issuer 
long-term  foreign  currency 
default  rating  was  affirmed  as  “BB-” 
and its outlook as “Stable”.

Investor Relations Contact Information 
Tel: +90 (212) 313 18 88 Fax: +90 (216) 504 40 58
E-mail: investor.relations@turkcell.com.tr
https://www.turkcell.com.tr/en/aboutus/investor-relations
Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi 
No: 20 B Blok Küçükyalı Ofispark, 34854 - Maltepe / İSTANBUL

* Turkcell Finansman’s Fitch rating expired on April 27, 2020 due to commercial reasons.

Carrying out 
activities that 
consider the needs 
of our customers, we 
successfully ended 
2020 having posted 
record transaction 
volumes across 
various products. 
Paycell increased 
its revenues by 13% 
this year, while its 
EBITDA margin was 
52%. Paycell’s non-
group revenues rose 
by 62% during the 
same period.

Digital finance transformation
Increasing the digital maturity of the 
finance  function  is  among  our  top 
priorities.  We  digitize  the  operating 
model  of  the  finance  function  in  or-
der to provide an environment where 
business  processes  are  organized 
over  systems,  manual  interventions 
are  minimized,  and  internal  control 
points  are  automatically  supported. 
As part of this transformation, we aim 
to  improve  operational  efficiency  as 
well  as  establish  a  working  environ-
ment comparable to best practices.

In  this  context,  our  current  financial 
maturity  level  was  assessed,  pro-
gress  areas  were  determined,  and 
roadmaps were established in detail. 
Upon  completion  of  the  transforma-
tion,  which  considers  every  compo-
nent of the operating model ranging 
from process to technology, and from 
organization  to  data,  68%  of  the  fi-
nance function’s processes are to be 
digitized and a 20% operational effi-
ciency increase is expected.

Techfin’s shining stars: 
Paycell ve Financell
In  2020,  we  continued  to  improve 
the  products  and  services  we  offer 
to our customers under Paycell. Pay-
cell,  which  serves  over  12  thousand 
contracted  merchants,  expanded 
its  solution  portfolio  for  commercial 
businesses with the Android POS this 
year.  Paycell  Android  POS,  the  first 
Android  POS  device  to  comply  with 
relevant legislation, and approved by 
the  Turkish  Revenue  Administration 
(GİB),  provides  cost  and  efficiency 
advantages  to  member  merchants, 
while offering collection, stock track-
ing  and  e-invoice  processes  on  a 
single  platform.  The  Paycell  Single 
Account  project  conducted  in  2020, 
enabled  users  to  view  and  easily 
manage  their  Paycell  Card  balance 
and mobile payment limits in a single 
account. Also in 2020, we took an im-
portant step by enabling 24/7 money 
transfer  service  to  an    IBAN  number 
with  contracted  banks.  Moreover, 
we  offered  a  completely  contact-
less  payment  experience  by  improv-

ing  the  payment  process  at  physical 
points in the pandemic period, during 
which contactless payments became 
more  popular  as  customers  sought 
new  payment  methods.  Having  en-
tered 
into  new  agreements  with 
numerous  restaurants,  markets  and 
coffee  chains,  we  ensured  that  cus-
tomers  could  make  their  purchases 
contactless with QR codes.

SDG 8.3

Paycell  enables  customers  to  make 
purchases  at  member  merchants 
without  the  need  of  a  bank  card  or 
payment at the door, offering the op-
portunity  to  reflect  the  fee  to  telco 
bills. Paycell also provides the oppor-
tunity  of  paying  corporate  bills  both 
using  the  application  and  at  Turkcell 
stores. With the rising number of con-
tracted merchants each year, Paycell 
customers  can  shop  quickly  and  se-
curely  using  QR  codes.  Meanwhile, 
Paycell  Card  offers  the  opportunity 
of  using  a  card  to    those  under  the 
age of 18, and therefore unable to be 
a  bank  customer.  At  the  same  time, 
Paycell Card customers can manage 
their  balance  and  mobile  payment 
limits through a single account.

Paycell  registered  a  first  this  year  by 
adding  a  brand  new  easy  payment 
alternative.  Thanks  to  the  “Ready  to 
use  limit”  feature,  users  can  spend 
their  mobile  payment  limits  via  their 
Paycell Cards at any time, and repay 
through their Turkcell bill at the end of 
the  month.  Moreover,  they  can  con-
vert part of this personalized limit into 
funds and withdraw them in cash.

Carrying  out  activities  that  consider 
the needs of our customers, we suc-
cessfully  ended  2020  having  posted 
record  transaction  volumes  across 
various  products.  Paycell  increased 
its  revenues  by  13%  this  year,  while 
its  EBITDA  margin  was  52%.  Payce-
ll’s  non-group  revenues  rose  by  62% 
during  the  same  period.  The  number 
of Paycell 3 month-active users have 
become  4.7  million,  and  the  number 
of  Paycell  registered  credit  cards 
reached  7.9  million  with  an  increase 
of 88%.

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E
L
L

S
T
R
O
N
G
C
O
R
P
O
R
A
T
E
G
O
V
E
R
N
A
N
C
E

F
I

N
A
N
C

I

A
L

C
A
P

I

T
A
L

H
U
M
A
N

C
A
P

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A
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M
A
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F
A
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E
D

C
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P

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A
L

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I

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
124

Financial capital

Paycell 3-month active 
users (million)

Paycell total transaction 
volume (TRY billion)

Revenue (TRY million)

EBITDA (TRY million)

EBITDA margin (%)

2018

4.8

7.8

187

136

73%

2019

4.5

9.4

252

160

64%

2020

4.7

9.0

 285

 147

52%

Financell,  one  of  the  key  players  in 
Turkey’s financing sector, allows us to 
offer  financing  solutions  to  individu-
al  and  corporate  customers  for  their 
technological  product  and  service 
purchases.  In  2020,  we  also  became 
active in the field of corporate loans 
via  our  digital  transformation  loan. 
Meanwhile,  credit  risk  infrastructure 
and  digital  transformation  projects 
implemented  in  2020  enabled  us  to 
conduct credit assessments at a fast-
er  pace  and  manage  credit  risk  ef-
fectively. With the completion of pro-

jects  in  2020,  we  started  to  provide 
financing  offers  to  our  Corporate 
segment  and  Superonline  customers. 
Accordingly,  we  became  capable  of 
providing  financing  solutions  for  all 
products  and  services  that  we  sell 
as  Turkcell.  Turkcell  Sigorta  Aracılık 
Hizmetleri  A.Ş.,  which  completed  its 
infrastructure  development  activities 
in  the  last  quarter  of  2019,  continued 
to  offer  innovative  risk  management 
solutions to its customers via fast and 
easy-to-access products.

2018

2019

2020

Number of customer acquisitions for Turkcell 
through Financell (thousand)

Financell asset size (TRY billion)

Number of credits granted by Financell (million)

Number of customers who used credits annually 
(million people)

Total customer loan portfolio (TRY billion)

Revenue (TRY million)

EBITDA (TRY million)

EBITDA margin (%)

Net income (TRY million)

102

5.2

2.4

1.9

4.2

942

426

45%

254

113

3.0

1.9

1.4

2.4

899

504

56%

187

129

2.5

2.0

1.4

1.9

567

367

65%

241

The interaction of our 
financial capital with 
our other assets

Our financial capital 
plays a key role in 
providing the necessary 
financing for the 
realization of all activities 
conducted under other 
capitals, while itself 
being supported by 
revenues generated 
from other capitals. 
Revenues generated by 
our services support our 
market capitalization 
and dividend yield, 
while the quality of 
our products and 
services are enhanced 
by the financing of 
R&D studies, thereby 
increasing customer 
satisfaction. Meanwhile, 
our social responsibility 
projects and transparent 
communication with our 
investors contribute to 
our social values and 
relationships. Furthermore, 
through our sustainable 
financing activities we 
reduce our negative 
impact on our natural 
capital.

(cid:41)(cid:36)T(cid:56)(cid:53)(cid:36)

******************************************
******************************************

Tarih
(cid:250)(cid:252)(cid:79)e(cid:87)(cid:80)e (cid:36)dı:
(cid:250)(cid:252)(cid:79)e(cid:87)(cid:80)e Kodu:

Dosya No:
Sıra No:
Tarife Kodu:

1 2 / 0 7 / 2 0 2 0
(cid:250) s (cid:87) a (cid:81) (cid:69) u (cid:79)
2 1 2 . 3 0 . 0 9 3 . 0 0

512,23
292,22
872,29

125

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PAYCELL HAZIR LİMİT’İNDEN
PAYCELL KART’INA AKTAR

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DİLEDİĞİN YERDE
KULLAN

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GERİ ÖDEMESİNİ
FATURANA YANSIT

R
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L
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A
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D

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TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
126

Strong corporate governance

Human 
capital

130

Human capital management

131

Our decent business practices

132

Our productive Turkcell family

144

Making a difference in employment

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

127

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T
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V
A
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G
O
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F
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H
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A
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A
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R
E
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A
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S

I

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128

Human capital

Human capital

Inputs

Outputs

Value created

Diversity, inclusion and equal opportunity
• VoE and VoD meetings 
• Woman Developers of the Future Project

Our competent employees and career development
• Backup management
• YUPO
• Turkcell Academy trainings
• Digital Master’s Program
• Technology Retailing Certiﬁcate Program

Safe and healthy work environment
• Field OHS improvement studies
• RADAR Program

Agile teams/employees

Employee practices that create difference
• Young Talents
     • Young Talent
     • Stajcell
• Flex HR applications
• The Stars Coming Back project
• Equal Conditions, Equal Chances at Turkcell! 
• The “Tell your Candidate, Create Beneﬁt” application

Number 
of new hires

 female

262
461

male

Outputs

150employment 

through Young 
Talent Program

98.7%

RADAR Turkcell 
Group performance 
score

33%women employee 

ratio

1.4million total hours 

of training

Employee 
turnover rate

200

internship through 
Stajcell

0.89

occupational accident 
frequency

Contribution to employment
• Employment created in the countries / geographies 

where we operate

Having competent human resources, ready for the 
digital world of the future
• Developing the competencies of employees

Developing the competencies of women to increase 
their employment in technology ﬁeld

Creating a strong and agile employee culture

Being a good employer
• Having physically and mentally healthy employees
• Diversity, inclusiveness and equal opportunity in 

Human Resources practices

• Loss of working hours due to occupational accidents

for female

2%
6%

for male 
employees

39,560

ReFlex number

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

129

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T
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A
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S
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C
O
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P
O
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A
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G
O
V
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R
N
A
N
C
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I

F
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130

Human capital

Human capital management
Throughout  our  journey  of  activities 
that  serve  our  people  with  prod-
ucts  and  services  that  reflect  Turkcell 
quality,  it  is  our  priority  to  imbue  our 
employees  with  a  sense  of  pride  in 
being  part  of  the  Turkcell  family.  We 
comply  with  legal  requirements  as 
part  of  our  human  resource  process-
es  in  accordance  with  relevant  laws 
and  regulations.  We  communicate 
all  operational  changes  that  could 
significantly  impact  our  employees 
within  the  legal  notice  period  via 
our  internal  communication  channels. 
We  consider  it  among  our  core  eth-
ical  values    to  oppose  discrimination 
based  on  gender,  age,  belief,  ethnic-
ity,  nationality,  marital  status,  health 
status, and physical capacity in all of 
Turkcell’s  business  activities.  Respect 
for human rights lies at core of our hu-
man  resources  activities.  Accordingly, 
we implement human resources prac-
tices  that  ensure  equal  opportunities 

for  all  individuals,  and  support  inclu-
sion and diversity. As the large Turkcell 
Group family of 24,675 employees, we 
adapt to the requirements of the rap-
idly  evolving  digital  age  with  agility 
to better respond to customer needs. 
And we continuously develop our skills 
with training programs that offer rich 
content.

Under  the  leadership  of  the  Turkcell 
HR  Center  of  Excellence  team,  we 
carry out activities regarding the de-
sign  of  all  our  human  resources  pro-
cesses,  changes  and  improvements 
to  our  procedures,  as  well  as  wage 
policies  and  the  performance  and 
development  management  of  our 
employees.  With  the  cooperation  of 
Turkcell  teams  and  our  Organization-
al Development directorate, we carry 
out  exemplary  activities  in  determin-
ing the goals and risks of our business 
processes, defining roles and respon-
sibilities  and  digitizing  of  our  human 
resources management.

We consider 
Turkcell employees 
as members of a 
large productive 
family, who carry out 
activities with the 
aim of creating social 
value by leveraging 
skills in their area of 
expertise, and as the 
key asset of Turkcell. 

During Turkcell’s 
digital transformation 
journey, we continue 
to receive the 
greatest support from 
our employees thanks 
to Turkcell’s strong 
communication and 
interaction culture. 
We aim to ensure 
an employment 
experience that 
makes our employees 
feel more valuable 
and productive, 
and hence happier. 
This approach is an 
integral part of our 
corporate culture.

COVID-19 note:
In  2020,  employment  and  work-
ing conditions were reshaped by 
the  COVID-19  pandemic.  Yet,  we 
continued  our  recruitment  activ-
ities  to  meet  increasing  custom-
er  demand,  as  well  as  achieve 
our  digitalization  goals.  While 
carrying  out  activities,  we  also 
supported  the  national  econo-
my  via  our  successful  employ-
ment  practices.  Having  already 
independent 
conducted  office 
working  practices  such  as  “mo-
bile  working”  and  “office  station” 
for over 3 years, we were able to 
rapidly adapt to different remote 
working  models  such  as  mobile 
working  and  home  office  when 
COVID-19  entered  the  picture. 
We  provided  our  field  employ-
ees  with  the  necessary  hygien-
ic  materials.  Moreover,  we  took 
necessary  actions  to  ensure  our 
employees’ physical and psycho-
logical safety. To enable them to 
spend  more  quality  time  while 
working  remotely,  increase  so-
cialization  and  enhance  team 
motivation, we organized remote 
training  courses,  online  company 
activities,  and  various  programs 
aimed  at  healthy  living.  In  this 
period,  we  also  received  instant 
feedback  from  our  employees, 
and  developed  our  processes 
and  principles  in  light  of  the  in-
formation  gathered.  As  part  of 
the  ‘COVID-19  Virtual  Working 
Assessment  Survey’  conducted 
by  Kincentric  and  scored  by  our 
employees,  we  achieved  robust 
results  on  each  of  the  following 
main  topics:  ‘Anxiety  and  Con-
nectivity’, 
‘Senior  Management 
Approach,  Communication’,  ‘Em-
ployee  Health,  Well-being,  Oc-
cupational  Safety’,  and  ‘Virtual 
Work  Efficiency’.  The  survey  re-
sults  confirmed  Turkcell  as  being 
among  the  top-ranked  compa-
nies in Turkey in terms of positive 
perception. We also scored high-
er results in comparison to global 
companies across all metrics.

Our decent business practices
We  carry  out  all  of  our  human  re-
sources activities with a focus on val-
ue  creation  with  the  responsibility  of 
being an exemplary corporate citizen 
both  in  our  country  and  globally.  We 
hear  the  expectations  of  the  strong 
and agile Turkcell family with regards 
to  business  management,  and  take 
swift  actions  to  increase  employee 
loyalty  and  satisfaction.  We  aim  to 
make  sure  that  Turkcell  is  the  most 
preferred  workplace  in  the  eyes  of 
our employees through the combina-
tion of our decent business practices 
and “Digital HR” vision.

Diversity, inclusion and equal opportunity
Respect  for  human  rights  is  at  the 
core  of  our  human  resources  activi-
ties. In this regard, our human resourc-
es practices extend equal opportuni-
ties to all individuals, supporting inclu-
sion and diversity. Turkcell carries out 
its activities to prevent discrimination, 
inequality,  human  rights  violations, 
forced  labor  and  child  labor  within 
the  scope  of  its  Human  Rights  Poli-
cy  and  continues  its  efforts  to  adopt 
these values across its supply chain.

All  related  activities  and  practices 
confirm our commitment to our equal 
opportunity,  inclusion  and  diversity 
principles. In 2020, there were no cas-
es  of  discrimination  brought  against 
Turkcell  İletişim  Hizmetleri  A.Ş.  by  our 
employees  or  third  parties,  and  no 
lawsuits were filed against Turkcell for 
discrimination. 

We state our commitment to compli-
ance  with  the  principles  set  forth  in 
our  Human  Rights  Policy  announced 
at  the  beginning  of  2021  as  part  of 
our  relations  with  our  employees, 
customers,  business  partners  and  all 
our  stakeholders.  Thereby,  we  aim  to 
ensure compliance to requirements of 
national  legislation  and  international 
capital  markets  regulations  that  we 
are subject to, regarding employment 
conditions. 

We respect the rights of our employ-
ees  arising  from  employee-employ-
er  relations,  and  protect  these  rights 
with  our  human  resource  practices. 
With  our  equal  pay  for  equal  work 
policy, there is no basic salary differ-
ence  between  our  female  and  male 
employees.  In  order  to  prevent  the 
incidence  of  child  labor  and  debt 
bondage, we adopt the ILO (Interna-
tional  Labor  Organization)  standards 
across our entire value chain, particu-
larly for our suppliers.

SDG 10.4

You can find detailed information 
on our equal opportunity, 
inclusion and diversity practices 
for our supply chain in the value-
oriented responsible supply 
chain management section of 
our report.

Most of our operations are performed 
by Turkcell employees. With new col-
leagues, who join us from all over Tur-
key, we constantly expand our family 
and  increase  the  active  workforce. 
Meanwhile,  we  believe  that  profes-
sions  and  fields  of  expertise  go  be-
yond  gender  classifications.  As  a 
leading digital operator company, we 
support women and their activities in 
STEM (Science, Technology, Engineer-
ing,  Mathematics)  areas.  Accordingly, 
we carry out numerous activities that 
support  the  employment  of  women 
engineers,  particularly  through  the 
Women Developers of the Future pro-
gram.

SDG 5B

You can find detailed 
information about the Women 
Developers of the Future 
Program in the social values 
and relationships section of our 
report.

131

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Human capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
132

Our subsidiary Global 
Bilgi, which operates 
at 25 locations, 19 
being in Turkey, and 
6 in Ukraine as at 
the end of 2020, 
contributed to the 
development of both 
local economies and 
the human resources 
development at these 
locations through 
the employment it 
creates. Providing 
employment to 
approximately 16,000 
people, Global Bilgi 
creates value as a 
pioneer of its sector 
with 9,600 women 
employees, who 
make up 60% of the 
total workforce.

Turkcell family employees*

Female

Male

Female

Male

Female

Male

2018

2019

2020

32%
1,722
People

68%
3,633
People

32%
1,770
People

68%
3,685
People

33%
1,877
People

67%
3,772
People

Ratios of current employees by age groups*

30 years and under

Between 30 - 50

50 years and older

2018

19%

77%

4%

Education level of our employees*

Doctorate (PhD)

Master’s degree

Bachelor’s degree

Associate degree

High school

Other

2018

1%

26%

66%

3%

3%

1%

2019

22%

75%

3%

2019

1%

28%

66%

2%

2%

1%

2020

25%

72%

3%

2020

1%

25%

69%

2%

3%

1%

Ratios of current managers by age groups*

30 years and under

Between 30 - 50

50 years and older

2018

-

94%

6%

2019

-

95%

5%

2020

0.3%

94.8%

4.9%

Employees who left the Company*

Female

Male

Female

Male

Female

Male

2018

2019

2020

32%
151
People

68%
327
People

27%
162
People

73%
438
People

28%
125
People

72%
317
People

Age groups of employees who left the Company*

30 years and under

Between 30 - 50

50 years and older

2018

18%

77%

5%

2019

21%

71%

8%

2020

34%

63%

3%

Employee turnover*

Gender ratio breakdown per position*

Female

Male

Female

Male

Female

Male

2018

2019

2020

Female Male

Female Male

Female Male

Below manager

33.5%

66.5%

Manager

Director

21.3%

17.9%

78.7%

82.1%

33.8%

22.2%

66.2%

34.6%

65.4%

77.8%

23.0%

77.0%

13.3%

86.7%

16.9%

83.1%

2018

2019

2020

3%

6%

3%

8%

2%

6%

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

133

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134

Our new mothers 
are offered the 
opportunity of 
working in the office 
between 10.00-15.00, 
and from any location 
of their choice for 
the rest of the day, 
until their babies 
are 16 months old. 
Meanwhile, though 
legal provision for 
paternity leave in 
Turkey is 5 days, we 
provide 10 days of 
leave to our new 
fathers, so that our 
male employees 
can assume greater 
responsibility in 
childcare.

SDG 5.4

Voluntary employee resignation rates*

Voluntary resignation

2018

5%

2019

6%

2020

6%

Employees who received an exit interview*

Number of employees

Number of completed surveys

Participation rate

2019

271

157

58%

2020

312

163

52%

Employees taking parental leave*

2018

2019

2020

Short-
term 
target

Mid-
term 
target

Long-
term 
target 

Number of 
employees 
who used 
their parental 
leave right

Rate of 
employees 
returning to 
work after 
their parental 
leave

Employee 
retention 
rates 
following 
parental 
leave

40 

52

60

- 

 -

- 

 100%

 98%

97%

 98%

 98%

 98%

 85%

88% 

93%

88% 

90%

90%

We  manage  our  Compensation  Poli-
cy  at  all  levels  with  maximum  relia-
bility. We transparently communicate 
the Remuneration Policy of our Board 
Members and Senior Managers to all 
our stakeholders. 

We  apply  our  remuneration  policies 
impartially  by  basing  all  our  operati-
ons on common standards to prevent 
discrimination  between  our  female 
and  male  employees  performing  si-
milar jobs.

SDG 5A

In addition to a 
range of social 
responsibility 
activities that 
we undertake 
to support 
the active 
participation 
of disabled 
individuals in 
business life, we 
have provided 
employment 
for 13 disabled 
people, 3 of 
whom are 
Young Talents 
as part of our 
Young Talent 
Program in 
2020.

Rate of average entry level wage to minimum wage (times higher)*

Female

Male

Female

Male

Female

Male

2018

2019

2020

3.5

3.5

2.8

2.8

2.6

2.6

Transparent performance
evaluation
All Turkcell employees are included 
in  the  annual  performance  evalu-
ation process that is conducted in 
a transparent and fair manner. As 
part of the annual salary increase 
process, which covers all employ-
ees,  the  following  criteria  set  is 
taken  into  consideration;  macro 
and  socio-economic 
indicators, 
sectoral  developments,  company 
performance and dynamics, inter-
nal comparisons, the market value 
of  the  respective  role,  individual 
performance and sustainable per-
formance  (performance  and  tal-
ent management results).

As  part  of  the  Goal  Setting  pro-
cess  at  Turkcell,  each  employ-

ee  is  expected  to  set  their  goals 
together  with  their  superior  and 
keep  those  goals  updated  with 
the changing priorities throughout 
the  year.  Strategic  initiatives  de-
termined as part of the company 
strategy  are  included  as  key  initi-
atives  firstly  on  the  scorecards  of 
our  senior  management.  KPI  sets 
that  support  those  strategic  in-
itiatives  are  also  included  on  the  
scorecards of employees. Employ-
ees  connect  their  goals  to  those 
of  their  superior  in  a  way  to  also 
match  the  strategic  initiatives  of 
the  Company.  Accordingly,  a  ho-
listic  “Goal  Tree”  is  created,  illus-
trating  connections  between  the 
objectives and strategic initiatives 
of the C-level executives of the re-
spective functions.

We  rely  on  the  power  of  communi-
cation.  The  Voice  of  Managers  pro-
gram provides our managers the op-
portunity to give direction to Turkcell 
strategies  under  the  leadership  of 
our  Strategy  Department.  We  bring 
our  directors  together  at  Voice  of 

Directors meetings organized in con-
venient  settings  where  ideas  can  be 
exchanged.  The  Voice  of  Employees 
survey enables our employees to ex-
press  their  opinions  and  suggestions 
transparently.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

135

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136

Employee loyalty and happiness
We are working towards enabling an 
efficient  and  enjoyable  employment 
experience  with  “How  About  Conne-
cting to Life?” slogan. We keep open 
dialogue with our employees through 
Employee  Engagement  Surveys,  and 
continuously review the effectiveness 
of  our  practices  in  accordance  with 
the results obtained. In 2019, we ran-
ked  among  the  ‘Best  Workplaces  in 
Turkey’ based on the results of Emp-
loyee Engagement Survey. 

We continued our 
success with the 
Virtual Working 
Assessment Survey 
regarding the 
COVID-19 period in 
2020, and were proud 
to top the list among 
both local and global 
companies.

We  appreciate  our  employees: 
With  our  “CEO  and  CXO  awar-
ds”,  our  CEO  and  C-level  exe-
cutives  reward  employees  who 
make  a  difference.  Our  instant 
rewarding  platform  enable  exe-
cutives to give awards to emplo-
yees with successful performan-
ce over Mobilim application. We 
reward 
innovative  employees, 
those  who  add  long-term  va-
lue to our Company through the 
“This deserves an award” initiati-
ve. Through our “Innovation Plat-
form”,  we  canvass  opinions  of 

employees on issues determined 
by  the  business  departments, 
rewarding  those  with  the  most 
innovative  suggestions.  Emplo-
yees, who complete their 5th, 10th, 
15th, and 20th years of service, are 
awarded  a  specially  prepared 
thank-you  package  and  celeb-
rated  at  our  “Seniority  Awards 
Ceremony”.  Besides  asking  for 
business  ideas,  we  also  encou-
rage  our  employees  to  partici-
pate in activities such as Turkcell 
Volunteers  that  have  a  positive 
social impact.

As  a  side  benefit,  we  provide  all 
part-time  and  full-time  employees 
of  Turkcell  Turkey  companies  life  in-
surance  against  death  and  critical 
illness.  We  also  offer  accident  and 
post-illness  disability  insurance  as  a 
side  benefit.  The  health  package  of-
fered  to  our  employees  covers  inpa-
tient and outpatient treatment, child-
birth,  dental  treatment  and  glasses/

lenses.  Additionally,  our  employees, 
their spouses and children all benefit 
from  this  coverage.  In  addition  to  le-
gal paternity leave, our male emplo-
yees are entitled to 10 calendar days 
of leave upon becoming a father. The 
Turkcell  Private  Pension  Plan  covers 
all employees, who complete their 6th 
month at Turkcell. Our employees can 
all own Turkcell Company shares.

We  believe  in  the  importance 
of  feedback  in  the  successful 
management  of  our  business 
processes. ReFlex, our digital fe-
edback  mechanism,  allow  us  to 
provide  feedback  instantly.  Over 
the ReFlex system, which can be 
accessed via mobile and our Hu-

man  Resources  mobile  applica-
tion  Turkcell  Life,  we  help  emp-
loyees  with  performance  and 
goal  management,  appreciate 
success, provide constructive fe-
edback with an aim to maximize 
work  efficiency  and  employee 
satisfaction.

Number of ReFlex responses from employees* 

2018

2019

2020

Short-term 
target

Mid-term 
target

Long-term 
target 

24,065

36,715

39,560

40,000 

45,000
- 
50,000

50,000 

We closely 
follow the legal 
obligations 
regarding 
Occupational 
Health and 
Safety (OHS) 
within the 
framework of 
our Occupational 
Health and 
Safety Policy, 
organize 
trainings, 
regularly auditing 
our activities and 
checking their 
pertinence.

Safe and healthy work environment
In accordance with our motto “Above 
all comes the health of our employe-
es”, one of our key responsibilities is to 
ensure  full  safety  in  all  our  work  en-
vironments, and to protect the health 
and  well-being  of  all  our  employees 
under the expertise of Turkcell Group 
Occupational Health and Safety Unit. 
Firstly, we closely follow the legal ob-
ligations regarding Occupational He-
alth and Safety (OHS) within the fra-
mework  of  our  Occupational  Health 
and  Safety  Policy,  which  is  in  comp-
liance  with  Occupational  Health  and 

Accident frequency rate*,**

Safety Law No. 6331 and the ILO-OSH 
(ILO Occupational Safety and Health) 
2001 standard. We organize trainings, 
regularly  auditing  our  activities  and 
checking their pertinence. We mana-
ge the physical security standards of 
our  buildings  and  facilities  in  accor-
dance  with  Private  Security  Services 
Law  No.  5188  and  the  respective  re-
gulations.  In  addition  to  their  profes-
sional training, all of our security per-
sonnel are informed of Turkcell dyna-
mics  by  their  own  companies  before 
starting work at Turkcell.

Gender

Unit

2018

2019

2020

Short-
term 
target

Mid-
term 
target 

Long-
term 
target 

Female 

Male 

Total

Number of 
accidents 
/ working 
hours

Number of 
accidents 
/ working 
hours

Number of 
accidents 
/ working 
hours

2.37

2.07

1.38

1.85

2.15

0.68

2.09

2.11

0.89

2

2

2

1

1

1

0

0

0

**  The accident frequency rate is calculated by multiplying “the ratio of the total number of  
    accidents to total working hours” by 1 million.

Number of accidents*

Number of occupational 
diseases*

Gender

2018

2019

2020

Gender

2018

2019

2020

Female

Male

Total

11

12

23

26

27

53

5

5

10

Female

Male

Total

0

0

0

0

0

0

0

0

0 

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

137

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Human capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
138

In  the  field  of  Occupational  Health 
and  Safety  (OHS),  our  RADAR  soft-
ware  program  developed  by  Turkcell 
Teknoloji Araştırma ve Geliştirme A.Ş., 
offers  employees 
the  opportunity 
to  report  dangerous  situations  and 
follow  up  on  their  status.  Through 
Turkcell’s  RADAR  application,  we 
evaluate  employee  suggestions  and 
complaints 
regarding  occupational 
health  and  safety  issues  according 
to  the  risk  categories.  We  transpar-
ently  share  Turkcell  Group  indicators 
with our employees, such as accident 
frequency rate, details of the accident 
and total lost days.

RADAR,  which  is  part  of  the  Corpo-
rate  Occupational  Health  and  Safety 
Management  System,  uses  criteria 
determined  by  Turkcell  Occupational 
Safety Experts. It has been developed 
by  Turkcell  Teknoloji  software  devel-
opers as a system in compliance with 
prevailing  legislation.  It  is  a  system 
not  only  used  for  document  tracking, 
but also one that allows occupation-
al  health  and  safety  professionals  to 
carry out their responsibilities. Thanks 
to  RADAR,  the  occupational  health 
and safety performance across Turk-
cell  Group  companies  is  calculated 
as an annual score and monitored by 
the management. The scoring criteria 
is determined in accordance with the 
penalty scoreboard table of the rele-
vant legislation.

Loss of working hours due to occupational accidents*

104 hours
2018

920 hours
2019

32 hours
2020

Third party OHS data

2018

2019

2020

Female Male

Female Male

Female Male

7

4

3

6

2

15.4

8.8

6.6

13.2

4.4

0

0

0

0

24

16

112

184

0

0

0

0

0

0 

Number of 
accidents (third 
parties)

Accident 
frequency rate 
(third parties)

Number of 
occupational 
diseases (third 
parties)

Loss of working 
hours due to 
occupational 
accidents (hours) 
(third parties)

OHS training hours*

Female

Male

Total

2018

928

1,013

1,941

Number of entry health examinations*

Female

Male

Total

2018

434

742

1,176

2019

7,128

18,384

25,512

2019

321

475

796

2020

3,520

4,992

8,512

2020

127

262

389

We became the 
first company 
in the sector 
to receive the 
“TSE COVID-19 
Safe Service” 
certification 
of the Turkish 
Standards 
Institute. During 
the pandemic 
period, we 
quickly adapted 
our offices to 
the requirements 
given in circulars 
issued by official 
institutions, 
and we focus 
on continuous 
improvement to 
ensure that our 
offices remain 
healthy and 
safe.

Number of periodic health examinations*

Female

Male

Total

2018

442

573

1,015

2019

373

531

904

2020

114

194

308

RADAR Turkcell Group performance score*

2018

2019

2020

Short-term 
target

Mid-term 
target

Long-term 
target 

98.2%

98.9%

98.7%

98.5%

98.7%

99%

We  communicate  OHS  issues  to  all 
our  employees  on  the  Turkcell  OHS 
Portal. We expect our business part-
ners  to  comply  with  our  OHS  Policy 
and  ensure  that  they  take  measures 
within  this  framework  through  our 
business  contracts.  Our  OHS  experts 

analyze  all  occupational  accidents 
and  OHS  data.  Reporting  the  sta-
tistical  data  gathered  from  incident 
reports  to  senior  management  on  a 
monthly basis, we determine our oc-
cupational  health  and  safety  targets 
as well as our future action plan.

Health and Wellness Programs
We  are  dedicated  to  the  health 
and  well-being  of  our  emplo-
yees.  In  this  context,  we  recei-
ve  support  from  our  workplace 
physicians, psychologists, dietici-
ans and sports trainers to ensure 
that our employees live a healthy 
life.  For  the  little  ones  of  our  fa-
mily, we offer a one-on-one me-

eting  opportunity  with  our  com-
pany pedagogue. We have imp-
lemented  programs  concerning 
the  beloved  living  creatures  of 
ourselves  and  our  families.  Duly, 
as  Turkcell  members,  we  have 
access  to  information  on  our 
animals  and  plants  through  the 
Veterinary  and  Home  /  Garden 
Plants Consultancy support line.

Our productive Turkcell family
With our strong team that shapes the 
future,  we  base  our  organization  on 
flexible  and  agile  foundations.  We 
work  across  a  diversity  of  fields  to 
grow  our  strong  and  agile  Turkcell 
Family  and  continuously  take  it  one 
step  further.  By  adopting  an  “equal 
opportunity”  approach  to  education, 

we  provide  all  our  employees  with 
the opportunity of self-improvement, 
regardless of their duties and respon-
sibilities  within  the  Company.  Within 
the scope of Turkcell Talent Manage-
ment,  we  realize  backup  manage-
ment  and  the  YUPO  (High  Potential) 
Program.

Turkcell backup management
Employees  working  in  manage-
ment positions (C-Level, General 
Manager, Director, Manager) and 
critical expert positions, who are 
critical in implementing company 

strategies,  are  backed  up  by  in-
ternal  and/or  external  sources. 
This  contributes  to  the  business 
continuity  and  sustainable  per-
formance of the company.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

139

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140

Human capital

YUPO (High Potential)
Launched  in  2019,  YUPO  is  a 
program  that  identifies  em-
ployees with distinctive talents, 
who  transform  these  talents 
into high performance, perform 
in line with Turkcell culture and 
values,  and  help  carry  Turkcell 
to  the  future.  In  pursuing  suc-
cess  at  Turkcell,  we  believe 
that  Turkcell  employees  who 
proactively  strive  to  benefit 
their  customers,  country,  team 
and 
themselves,  deserve  a 
motivational  privilege,  and 
YUPO exists precisely with this 
in  mind.  YUPO  features  volun-
tary  experts  who  meet  to  set 
related  criteria.  YUPOs  have 
priority  participation  in  certi-
fication  programs  at  interna-
tional  universities,  apprentice-
ship  programs  in  Turkey  and 
abroad,  and  conferences  and 
seminars. In addition, thanks to 
the various networking oppor-
tunities available to them, they 
can both increase their impact 
and gain access to platforms in 
which  they  can  share  their  in-
tellectual knowledge.

Turkcell Academy
With Turkcell Academy, Turkcell’s cor-
porate  university,  we  remain  beside 
our employees on their journey of de-
velopment. Dozens of Turkcell Acade-
my  initiatives  ensure  the  competen-
cy  of  our  productive  Turkcell  family, 
while  preparing  Turkcell  and  Turkey 
for  the  digital  transformation  of  the 
future.  In  2020,  Turkcell  Academy  set 
about  making  a  difference  by  pre-
paring  over  56,000  employees    and 

business  partners  in  our  ecosystem 
for the future. We have implemented 
diverse  trainings  to  improve  Turkcell 
and its ecosystem in 2020 through our 
new  graduate  employment  program 
Young Talent and Digital Masters Pro-
grams.  The  program  is  implemented 
across the Company with the leader-
ship programs we have prepared at 6 
levels and training development jour-
neys  prepared  for  various  functions 
and field teams.

SDG 4.3, 4.4

Total training hours*

1.9 million
2018

2.2 million
2019

1.4 million
2020

Number of employees participated in Turkcell Academy
trainings*

3.5 million
2018

3.6 million
2019

3.3 million
2020

Gender breakdown of our employees participated in 
Turkcell Academy trainings in  2020*

Female

54%

Male

46%

the 

leadership  of  Turkcell 
Under 
Academy,  which  has  received  over 
40  international  awards    since  its 
establishment  as  Turkey’s  first  cor-
porate  university,  we  support  digital 
transformation  in  education  by  co-
operating  with  leading  universities  in 
Turkey and around the world, as well 
as educational institutions. We attach 
great importance to the development 

of  our  Academy  Instructors;  whose 
expertise makes a valuable contribu-
tion  to  the  educational  processes  of 
our  family.  With  over  600  instructors, 
200 of whom are active, we carry out 
programs  with  Boğaziçi  University  to 
improve  their  teaching  skills  on  the 
one hand, while on the other support-
ing  them  with  trainings  to  enhance 
their expertise.

Age breakdown of our employees who participated in 
Turkcell Academy trainings in  2020*

30 years and under

Between 30 - 50

50 years and older

67%

32%

1%

Number of Turkcell Academy instructors

610 instructors
2018

623 instructors
2019

676 instructors
2020

Turkcell ecosystem 
features trainings 
under 6 diverse 
topics within the 
scope of Primary 
Mandatory 
Trainings. We offer 
“Occupational 
Health and Safety 
Trainings”, as 
well as trainings 
in “Information 
Security”, “Business 
Continuity”, “Anti-
Bribery and 
Anti-Corruption”, 
“Competition 
Law” and “Turkcell 
Values and 
Business Ethics 
Rules” with the 
participation of all 
our employees.

Training hours per employee*

Turkcell primary mandatory trainings*

68 hours
2018

66 hours
2019

33 hours**
2020

22,330 hours
2018

32,809 hours
2019

21,792 hours
2020

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.
** Due to the pandemic, we have converted our face-to-face trainings to live and virtual classrooms of fewer hours in the digital environment.

TURKCELL INTEGRATED ANNUAL REPORT 2020

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

TURKCELL INTEGRATED ANNUAL REPORT 2020

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142

Digital Masters
With  the  Turkcell  Digital  Mas-
ters  Program,  focused  on  new 
generation 
technologies  set 
to  shape  tomorrow’s  world, 
and  on  developing  pioneering 
products and services, we aim 
to  raise  our  employees’  ex-
pertise  to  the  highest  level  in 
this  field.  Within  the  scope  of 
the  Digital  Masters’  Program 
prepared  in  cooperation  with 
Udacity  and  Turkcell,  we  offer 
online  trainings  in  the  fields  of 
Business Analytics, AI Program-
ming  with  Python,  Computer 
Vision,  NLP,  Blockchain  Devel-
oper,  Programming  for  Data 
Science,  AI,  Data  Scientist,  In-
troduction 
to  Programming, 
Machine  Learning,  Cloud  De-
veloper and Introduction to ML. 
To date, 2,503 Turkcell employ-
ees have applied to the Digital 
Masters’ Program. 2,195 people 
have taken the exam conduct-
ed  by  Udacity  and  a  total  of 
1,050  Turkcell  employees  were 
entitled to receive training.  Our 
participants  who  successfully 
complete  trainings  and  pro-
jects receive the Udacity Nano 
Degree Certificate.

Ratio of internet-based trainings to all trainings*

93%
2018

91%
2019

91%
2020

Technology Retailing 
Certificate Program
This is the sector’s first and only Tech-
nology  Retailing  Certificate  program, 
designed  to  enable  employees  wor-
king  in  Turkcell’s  retail  and  corporate 
sales  channels  to  serve  our  custo-
mers to the standards set by Turkcell. 
As  part  of  this  program,  our  emplo-
yee  candidates  receive  training  on 
Turkcell  products  and  services,  new 
technologies,  sales  techniques  and 

customer experience. After the know-
ledge  exam  and  competency  evalu-
ations, those employees qualified for 
certification commence their journey 
of providing superior customer servi-
ce.  The  certification  rate  of  emplo-
yees  working  in  our  sales  stores  has 
been  at  95%  for  3  years.  From  mea-
surements made after the initial year 
of the program, it was observed that 
the employee turnover rate had dec-
reased by 30%.

D E V E L O P   Y O U R   C O N S U L T I N G  
C O M P E T E N C E   W I T H   T H E   T U R K C E L L  
A C A D E M Y   D I G I T A L  
TRANSFORMATION CONSULTANT PROGRAM

G E T   R E A D Y   F O R   T H E   F U T U R E!

The most comprehensive consulting program in 
Turkey that is prepared uniquely for corporate sales
teams and provide guidence to the digital
transformation journey of our customers, has 
began!
https://tag.turkcell.com.tr

Digital Transformation 

Consultancy Development 

Program
We  conduct 

the  Digital 

Transformation Consultancy 

Development  Program 

to 

develop  the  competencies 

and skills of our employees 

in  the  corporate  sales  and 

Digital  Business  Services 

team. It plays a key role in the 

success  of  Turkcell’s  digital 

business  services  initiative 

that  guides  our  customers 

along their journey of digital 

transformation.

Turkcell Academy 
Young Talents Program 
Within the scope of the Young Talent 
Program, which has been implement-
ed  to  recruit  talented  young  people, 
Turkcell  offers  a  fully  online  4-month 
training  program  specifically  de-
signed for new recruits. The compre-
hensive  orientation  in  the  program 
includes  Turkcell,  Customer,  Technol-
ogy, Life and Entrepreneurial Leaders 
modules. The program is offered with 
digital  learning,  artificial  intelligence 
technologies,  experiential 
learning, 
skill  development,  social  responsi-
bility  projects,  and  different  learning 
methods where simulation and learn-
ing  are  applied  together.  Program 
participants  shared  450  suggestions 
for  improvements  to  customer  expe-
rience by listening to over 7,000 calls 
from  the  “My  Customer  Voice”  plat-
form in 2020. 

The  program  trainings  are  organized 
with  the  corporate  universities  of 
technology  companies  such  as  Hua-
wei,  Oracle,  Cisco,  Ericsson,  Nokia 
and Dell, as well as Turkcell Technol-
ogy  teams,  in  order  to  develop  the 
technology  vision  of  Young  Talents. 
Through  these  corporate  universities, 
which  we  strategically  cooperate 
with,  participants  receive  training  in 

artificial  intelligence,  cyber  security, 
data center, data analysis and block-
chain.  They  also  receive  information 
from  Turkcell  Technology  teams  on 
the  operation  of  these  technologies 
at  Turkcell.  In  the  “Life”  step  of  the 
program  participants  attend  semi-
nars  on  motivation,  psychology  and 
leadership approaches.

In the “Entrepreneurial Leaders” mod-
ule,  which  we  designed  as  the  final 
module  of  the  program,  our  Young 
Talents receive training from Koç Uni-
versity on subjects such as customer 
focus, innovation, digital trends, lead-
ership, strategic thinking, and finance, 
and  experience  Strategic  Business 
Management Simulation.

In addition to this development jour-
ney,  Young  Talents  provide  social 
benefits  helping  children  undergoing 
treatment  as  part  of  our  social  re-
sponsibility projects by making them 
smile.  When  Young  Talents  upload 
their  smiling  photos  to  the  ‘Young 
Talent 2020’ channel on the BiP plat-
form, their photos transform into toys 
for  the  children.  Therefore,  with  this 
project,  they  get  the  opportunity  to 
experience  Turkcell’s  focus  on  creat-
ing social benefit at first hand.    

Developers of the Future - Young 
Talent  & Stajcell Project
In  2020,  we  contributed  to  the  ca-
reers  of  all  candidates  who  applied 
to  Young  Talent  and  Stajcell  projects 
by  providing  training  and  certifica-
tion  during  the  recruitment  process. 
For the first time in a recruitment pro-
cess,  candidates  began  training  be-
fore  being  hired.  We  contributed  to 
the careers of 5,890 candidates who 
applied  to  the  Young  Talent  process 
through  the  trainings  they  received 
from  the  Developers  of  the  Future. 
We  supported  828  candidates  keen 
to  complete  internships  at  Turkcell 
along their career paths through De-
velopers of the Future trainings.

With the CX Lab Customer 
Experience Development Program
With the CX Lab Customer Experien-
ce  Development  Program,  we  have 
aimed  to  improve  the  customer-o-
riented  design  perspectives  of  our 
customer experience teams. 

With CX Lab, we introduced a brand-
new modem and service model with 
smart home assistant feature of Turk-
cell Evim 360 as part of our fixed in-
ternet services. On the financial servi-
ces front, as part of TechFin solutions, 
we  have  developed  a  new  service 
that  can  be  used  to  track  spending 
and savings via Paycell Wallet.

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

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144

“Flex” human resources 
of the digital age  
At Turkcell, our human resource 
practices  comprise  a  flexible, 
digital  platform  that  we  call 
“Flex”.  We  enable  our  employ-
ees  to  customize  and  person-
alize  almost  any  application 
we offer them through our Flex 
HR system as part of our jour-
ney  to  becoming  “Digital  HR”. 
With  FLEXSourcing,  another 
Flex application, our productive 
Turkcell  family  can  voluntari-
ly  invest  20%  of  their  working 
time in innovative projects that 
require  different  perspectives, 
expertise  and  a  variety  of 
competencies.  With  our  FLEX-
Sourcing  application,  which 
offers diverse options from ar-
tificial intelligence to gamifica-
tion, and from data analytics to 
crowdfunding,  over  300  Turk-
cell  employees  participated  in 
more  than  50  voluntary  pro-
jects  in  the  2019-2020  period, 
generating value for Turkcell.

Our agile teams
At  Turkcell,  we  consider  our  business 
units’  agility,  strength  and  flexibility 
to be the greatest source of our suc-
cess.  With  agile  teams  being  one  of 
the  four  main  competencies  toward 
achieving  Turkcell’s  strategic  initia-
tives, we work to establish a flexible 
and  agile  structure  from  Network  to 
Finance, and from Law to Marketing, 
across  our  entire  productive  Turkcell 
family.  In  2020,  we  improved  our  or-
ganizational  structure  even  further 
in  terms  of  agility.  We  are  proud  to 
have  increased  the  number  of  agile 
teams this year from 85 to 181, helping 
us to take full advantage of our em-
ployees’  talent  and  experience.  We 
effectively manage our company re-
sources to realize our strategic focus 
areas.  We  maximize  agility  by  opti-
mizing  our  business  processes  with 

Making a difference in employment
As one of Turkey’s 
largest employers, 
we are a vast family 
of over 24,000 
employees with our 
local and international 
subsidiaries.
Despite the adverse conditions of the 
pandemic  during  2020,  our  human 
resources strategic planning success-
fully  increased  our  business  volume 
without  delaying  recruitment.  Given 
our aim of providing a superior digital 
product  and  service  experience,  and 
our  increasing  workload  in  this  peri-
od, we continue to seek professionals 
of technological expertise. Yet we do 
not limit our recruitment to these ar-
eas  alone;  we  continue  to  recruit  in 
many areas ranging from information 

our  end-to-end  value-generating 
organizational  structure.  The  organ-
izational  structures  of  new  business 
areas are updated according to mar-
ket needs. We determine application 
areas by monitoring the performance 
of  the  pilot  applications  of  our  agile 
working  model.  And  through  master 
and management programs we con-
tinuously invest in our human capital, 
bringing young talent to Turkcell with 
the  most  comprehensive  recruitment 
program in Turkey.

You can find detailed 
information about our resource 
allocation in the strategic 
initiatives and opportunities 
section of our report.

and  communication 
technologies 
to  finance,  and  from  marketing  and 
sales to human resources. As Turkey’s 
digital operator, we have largely dig-
italized  our  recruitment  process  and 
employee experience. In this context, 
especially  during  the  pandemic  pe-
riod,  we  have  made  increased  use 
of  online  assessment  tools,  employ-
ing  artificial  intelligence  technology 
in our recruitment process as part of 
our  innovative  approach.  In  our  new 
graduate  recruitment  process,  dur-
ing  the  video  interview  phase,  we 
have used artificial intelligence in the 
mood-assessment  of  approximately 
3,000  candidates.  When  the  results 
of  one-on-one  interviews  we  con-
duct match with artificial intelligence 
analysis,  we  deem  it  as  an  indicator 
of success for our evaluation process. 
Our use of artificial intelligence in re-
cruitment will continue to increase.

increases 

Young Talents Program
Turkcell  launched  the  Young 
Talent  Program  in  2016  to  re-
cruit  talented  young  people. 
The  need  to  “quickly  master 
difficult  jobs”  that  comes  with 
digitalization, 
the 
importance  of 
flexible  and 
agile  teams.  Today’s  business 
world  is  looking  for  versatile 
talent.  The  main  purpose  of 
our  employment  policy  is  to 
add  talents  who  will  resolute-
ly  achieve  results,  pursue  their 
dreams,  possess  high  techno-
logical  aptitude,  and  who  can 
quickly  adapt  to  new  condi-
tions.  As  a  result,  we  open  our 
doors to professionals who are 
experts  in  their  fields,  as  well 
as  young  people  who  have 
just  began  their  career.  A  key 
innovation  of  the  program  this 
year  was  the  development  of 
online  application  and  evalua-
tion processes to provide 100% 
equal  opportunity  for  disabled 
candidates.  As  a  result  of  this, 
3  visually  impaired  candidates 
who  successfully  passed  all 
stages joined the Turkcell fami-
ly as Young Talents. We see the 
Young Talent program not only 
in terms of youth employment, 
but  also  as  an  investment  in 
new human resources required 
for  digital  transformation  that 
will  carry  our  country  into  the 
future.

New hires*

Full-time

Part-time

New hires by gender*

Female

Male

2018

728

12

2018

265

475

2019

590

2

2019

174

418

2020

723

0

2020

262

461

We  draw  particular  attention  to  so-
cial  equality  of  opportunity  and  an-
other priority topic, women’s employ-
ment,  with  the  Women  Engineers 
Project. We offer job opportunities at 
Turkcell  by  developing  special  work-
ing models for women who have nev-
er worked before, or who are current-
ly unable to work for various reasons 
such  as  marriage  or  motherhood. 
Accordingly,  we  conducted  a  project 
launched  with  the  “Equal  Conditions, 
Equal    Chances”  motto,  aimed  at  in-
creasing  the  employment  of  women 
engineers in 2 phases. The first phase 
involved  advertisements  for  female 
engineers  who  are  3rd  and  4th  grade 
students.  Following  the  evaluation  of 

received  applications,  we  conducted 
general  skill  and  technical  tests,  and 
one-on-one  human  resource  inter-
views.  101  people  who  successfully 
completed  the  process  were  entitled 
to  participate  in  6-week  IOS,  Java, 
C# and Android trainings. Those who 
successfully  complete  the  program 
in  the  technology  camp,  set  to  take 
place  in  the  digital  environment  with 
projects created by expert instructors, 
will  have  the  opportunity  to  work  at 
Turkcell,  either  part  time  or  full  time. 
Our  efforts  to  increase  the  employ-
ment  of  women  who  have  taken  a 
break  from  their  career,  which  is  the 
second phase, is ongoing.

Number of applicants to the Young Talent Program*

60,000
2018

28,500
2019

63,000
2020

Employment provided through the Young Talent Program* 

235 people
2018

153 people
2019

150 people
2020

*  Demographic information presented in our human capital section covers data from the companies Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşletmecilik A.Ş., Superonline İletişim 
Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., 
Turkcell Sigorta Aracılık Hizmetleri A.Ş., Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik 
Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş. and BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. Employee numbers were provided by Turkcell’s Employee Experience Management 
Directorate, and did not change significantly during the year.

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Human capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
146

Stajcell 
Hundreds  of  young  people  can  dis-
cover  their  talents  by  completing 
internships  at  various  Turkcell  de-
partments  thanks  to  the  STAJCELL 
program. The STAJCELL program pro-
vided internship opportunities to 200 
young people in the summer of 2020. 
We  are  constantly  expanding  our 
talent  pool  with  the  project  camps, 
hackathons  and  online  competitions 
we organize throughout the year.

Stajcell Plus
With  StajcellPlus,  we  provide  part-
time  employment  to  young  people 
who stand out in the Stajcell program, 
delivering social benefit by providing 
business  experience  to  those  set  to 
start their career in Turkey, and iden-
tifying  young  people  of  high  poten-
tial to steer in the right direction. Our 
target  audience  in  this  program  is 
3rd  and  4th  grade  university  students, 
and we conduct orientation trainings, 
Cross Talk, HR Talks, monthly CXO Tea 
Talks  and  project  design  activities. 
The  StajcellPlus  program  began  with 
45 participants on October 1, 2020. At 
the end of this 6-month program, we 
aim to evaluate full-time employment 
opportunities as part of this project in 
January 2021.

The Stars Coming Back
With  the  “The  Stars  Coming  Back 
project”, which we launched in 2020 
as  part  of  our  recruitment  strategy, 
we  urged  Turkish  citizens  working 
abroad  to  make  applications  to  ap-
propriate  roles  at  Turkcell.  We  aim 
to  contribute  to  Turkey’s  intellectual 
capital and make a major investment 
in  the  future  with  this  project.  Our 
project is geared at making econom-
ic  and  social  contributions  by  stimu-
lating the reverse brain drain.

With  the  principle  of  adding  value 
to  society,  we  offer  interview  train-
ing and information to all candidates 
prior to their interviews. After the in-

At Turkcell it’s Equal 
Conditions, Equal Chances!
At  Turkcell, 
“Equal  Conditions, 
Equal  Chances”  is  a  program 
aimed  at  increasing  our  employ-
ment of female engineers. We in-
vite students, or newly graduated 
female  engineers  to  interviews 
once  they  pass  an  online  exam, 
and  organize  the  “Technological 
Women  Bootcamp”  program  for 
our successful candidates. At this 
stage, our candidates participate 
in  the  training  programs  of  Turk-
cell  Academy  to  realize  projects. 
We  offer  employment  opportu-
nities to those candidates whose 
projects  are  successful.  At  Turk-
cell,  another  focus  of  the  “Equal 
Conditions,  Equal  Chances  Pro-
ject”  is  the  reinstatement  of  our 
female engineers who have tak-
en  a  break  from  their  career  for 
various reasons such as marriage, 
birth or relocation. We believe this 
investment enables us to highlight 
the qualified workforce of wom-
en  in  our  country  and  contribute 
to  both  Turkcell  and  Turkey  eco-
nomically and socially.

terview, regardless of whether it was 
positive  or  not,  we  thank  our  candi-
dates for seeing Turkcell as their em-
ployer of choice with internet gifts.

With  our  “Tell  Your  Candidate,  Cre-
ate  Benefit”  application,  we  expect 
Turkcell  employees  to  recommend 
talented  external  candidates  for  va-
cant  positions  on  HR  Life.  If  the  can-
didate  proposed  by  our  employees 
successfully  completes  all  processes 
and  joins  us,  we  offer  our  employee 
a small thank you gift through Paycell.

The interaction of our 
human capital with 
other capitals 

Our productive 
Turkcell family 
provides one of the 
greatest contribution 
to the development 
of our sector and 
country, combining 
its dreams with 
technology and 
communication, 
and with the 
privilege of being 
a Turkcell member. 
Our employees 
are the preeminent 
component in 
transforming 
our financial, 
manufactured, 
intellectual and 
natural capital into 
the value created 
by the Turkcell 
business operations. 
At the same time, 
our human capital 
is representative of 
our social values 
and relationships, 
and those of our 
stakeholders, with 
whom we create 
shared value.

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Human capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manufactured 
capital

152

Strong network

156

Strong fiber infrastructure

157  

Strong spectrum

158

International sale and wholesale

159

Data centers

150

Manufactured capital

Manufactured capital

Inputs

Outputs

Value created

Strong network
• Base stations
• Towers
• Redundant and integrated infrastructure
• Telco cloud
• Investment in domestic equipment
• Service Operations Center (SOC)

Strong spectrum

Strong ﬁber infrastructure

Data centers

4.5G

 speed 
(up to 1.4 Gbps)

76%

network trafﬁc 
increase rate

Outputs

10,281

base station sites with 
risk assessment

51%

network 
virtualization 
rate

99.96%

data accessibility 
rate

Fiber internet 
speed up to

10 Gbps

Tower 
portfolio of

10,913

Offering fast, quality and 
inclusive services
• Providing high quality services
  to our customers

Contribution to keeping Turkey’s data  
in Turkey
• Turkey’s largest data center operator
• Contribution to data security

Leadership in technology and digital 
transformation
• Network ready for new technology  
  transformations

Access to information and internet for 
everyone

Improving  domestic and national 
technological infrastructure
• Applying innovative technologies       
  not previously applied in Turkey to our    
  infrastructure and making a difference  
  in the market

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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152

Strong infrastructure and 
superior service quality

We ensure the delivery of 
reliable and high speed 
services to our customers 
leveraging superior 
digital competencies, 
strong financial 
management and 27 
years of experience 
in the telecom sector. 
We closely follow 
technological trends 
and develop world-class 
applications to maintain 
strong infrastructure 
and superior service 
quality, which are 
among the material 
topics for Turkcell and 
our stakeholders. While 
carrying out activities to 
support the development 
of domestic technologies, 
we also engage in 
international projects 
and promote our brand 
beyond our country. We 
are proudly the largest 
data center operator in 
Turkey, carrying out our 
activities in this area 
in support of domestic 
technology development. 
We operate our base 
stations with an 
approach that ensures 
compliance with national 
and international 
standards with a 
performance that goes 
beyond their minimum 
requirements, paying 
utmost attention to the 
health of our valuable 
customers and overall 
society.

As  part  of  our  manufactured  capital, 
we  continue  to  invest  in  our  infrast-
ructure  to  add  value  to  the  digital 
journey  of  our  customers.  We  have 
a  strong  access  network  built  over 
rich  frequency  resources  enabling  us 
to offer one of the fastest 4.5G servi-
ces  in  the  world.  In  accordance  with 
our  vision  that  “Turkey’s  data  should 
remain  in  Turkey”,  we  continue  our 
activities  as  the  largest  datacenter 
operator  in  Turkey.  Meanwhile,  we 
support  and  actively  participate  in 
projects related to the domestic ma-
nufacturing  of  network  equipment. 
We  also  expand  our  fiber  infrastruc-
ture to deliver services to more hou-
seholds. We comply with regulations 
and ensure high service quality as an 
exemplary corporate citizen.

Strong network
We  know  that  a  reliable  and  fast 
network  with  a  large  coverage  is  of 
great importance in delivering a suc-
cessful  customer  experience.  In  this 
regard,  we  continuously  improve  our 
infrastructure 
investments 
through 
and  R&D  activities.  The  pace  of  de-
velopment  of  today’s  technologies 
requires companies to actively follow 
trends  in  creating  and  implementing 
new  services  and  solutions.  We  also 
support  our  country’s  technological 
development  carrying  out  activities 
to implement the latest infrastructure 
solutions and develop domestic tech-
nologies.  In  the  meantime,  by  impro-
ving our service quality, we also grow 
our revenues.

Expanding our strong fiber infrastruc-
ture annually, we grow the number of 
fiber-connected base stations. More-
over, we provide fiber access to hou-
seholds in additional cities.

Along with infrastructure investments, 
we take measures to increase the ef-
ficiency of our network implementing 
new  technologies  so  as  to  effecti-
vely  manage  the  annually  increasing 
network traffic of our customers. 

Hence,  we  do  not  compromise  on 
service  quality  even  during  busy  pe-
riods  by  maintaining  efficient  use  of 
network resources. The rise in traffic, 
particularly in 2020 due to COVID-19, 
which  was  higher  than  expected, 
once again underlined the importan-
ce  of  infrastructure  investments  and 
efficiency efforts for service quality.

COVID-19 note
Curfew  measures,  increa-
sing  remote  working  and 
remote education practices, 
have  resulted  in  significant 
rise  in  fixed  internet  usage 
and  4.5G  data  traffic.  Ac-
cordingly,  we  took  measu-
res to increase capacity and 
meet additional 4.5G traffic 
load  on  the  network  during 
this period. We continue our 
activities  to  effectively  ma-
nage  the  higher  demand 
for  data  usage  over  Super-
box and fiber offerings, and 
provide high quality service. 
With  our  data  centers,  we 
have  offered  our  corpora-
te  customers  the  ability  to 
manage their data 24/7, re-
motely.

Mobile infrastructure
Our mobile infrastructure possesses a 
smart  and  flexible  network  structure 
comprising  mainly  our  base  stations. 
We carry out activities aiming to im-
prove  the  coverage  area  and  dura-
bility of our base stations and towers, 
which form the basis of our telecom 
business,  thereby  increasing  the  ac-
cessibility of our services.

Base stations
Having  adopted  an  approach  pri-
oritizing  public  health,  we  operate 
our  base  stations  utilizing  the  latest 
technologies and in compliance with 
national regulations and international 
standards.  We  also  locate  our  base 
stations  accordingly  to  avoid  creat-
ing any sort of visual pollution.

The base stations in our network are 
well equipped to demonstrate all ca-
pabilities  of  the  technology  that  we 
provide to our customers. 

Meanwhile,  our  base  stations,  which 
can offer multiple technology support 
(singleRAN),  can  be  defined  as  envi-
ronmentally  friendly  with  their  more 
compact size and lower energy con-
sumption.

%
6
7

0
2
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2

%
8
3

9
1
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2

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4
2

8
1
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2

Network traffic increase
Rate in bandwidth*

Base stations and public health
In order to prevent any negative im-
pact on public health, our base sta-
tions must operate below the elec-
tromagnetic field intensity threshold 
levels   determined by the Regulatory 
Authority, the ICTA. These thresholds 
were   determined by the ICTA with a 
prudent approach at lower and saf-
er levels compared to the exposure 
limits   determined by the Internation-
al  Non-Ionizing  Radiation  Protec-
tion  Board  (ICNIRP)  and  accepted 
by  the  World  Health  Organization 
(WHO). As per research in this field, 
no harm to human health has been 
identified  from  radio  signals  below 
ICNIRP  limits.  The  threshold  levels 
defined for Turkey by regulation are 
at  70%  of  the  limits    determined  by 
ICNIRP,  and  at  25%  per  device.  The 
maximum limits   that a base station 
can  be  operated  at  in  our  country 
are much lower (approximately 1/4) 
compared to limits   set for European 
Union countries.

We  are  subject  to  the  ICTA  and 
its  respective  regulations  with  re-
gards to installation and inspection 
of  base  stations.  As  part  of  the  in-
stallation process of a base station, 
information  regarding  the  power 
specifications,  the  antenna  type, 
location  of  the  station  and  its  sur-
rounding is reported in detail to the 

ICTA.  The  base  stations  can  be  in-
stalled in approved locations. Once 
a  base  station  is  activated,  EMR 
(Electromagnetic  Field)  measure-
ment  is  conducted  by  independent 
institutions  accredited  by  the  ICTA 
within  one  week,  with  the  results 
submitted  to  the  ICTA.  Moreover, 
the  ICTA  also  conducts  inspections 
and  measurements  on  the  base 
stations.  As  part  of  the  two  ICTA 
criteria that stand out with respect 
to public health, there should be no 
living space within the “Safety Dis-
tance”  determined  based  on  the 
power  output  of  the  base  station, 
while  its  electromagnetic  field  in-
tensity, having been configured ac-
cordingly, should be within the legal 
limits.  Should  any  failure  to  comply 
with  the  relevant  ICTA  criteria  be 
detected, the base stations are dis-
mantled,  with  significant  sanctions 
or penalties imposed.

As  Turkcell,  we  effectively  manage 
the  impact  of  our  network  oper-
ations  on  public  health  by  imple-
menting  much  stricter  limits  com-
pared  to  those  set  by  the  legal 
authorities.  In  2020,  there  were  no 
cases  that  resulted  in  legal  penal-
ties  against  our  Company  with  re-
gards to the impact on health of our 
products and services.

Moreover,  we  conduct  risk  assess-
ment tests to ensure the safety of our 
base  stations  and  our  teams  work-
ing in the field. Having conducted risk 
assessment  tests  at  8,832  base  sta-
tion  sites  in  2019  and  10,281  in  2020, 
we  are  one  step  closer  to  achieving 

our  short-term  target  of  conducting 
10,800  risk  assessment  tests  each 
year. We aim to minimize risk factors 
to the greatest possible extent by im-
plementing  improvement  actions  for 
areas  identified  as  a  result  of  these 
assessments.

*  Total data volume: mobile + fixed

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As  part  of  our  activities  carried  out 
at  base  station  sites,  we  encounter 
occupational  health  and  safety  risks 
in relation to issues including working 
at  height,  electrical  works,  excava-
tion  works,  and  vehicle  use.  In  order 
to  avoid  these  risks,  we  rely  on  our 
working  principles  and  action  plans. 
Until the end of 2020, 4,051 sites were 
inspected,  risk  analysis  forms  were 
prepared for 1,449 sites, and 590 sites 
were repaired for a safer working en-
vironment.

Moreover, 
“Network 
in  preparing 
Technologies Geographical Risk Anal-
ysis  Reports”  on  a  regular  basis,  we 
aim  to  ensure  that  our  base  stations 
operate efficiently, in an environmen-
tally  friendly  manner  and  in  accord-
ance  with  health  and  safety  regu-
lations  considering  the 
interaction 
between  human,  environment  and 
telecommunications.  Through  these 
reports  we  also  aim  at  the  efficient 
planning  of  our  base  stations’  oper-
ation times.

Number of base station sites with risk assessments completed

2018

2019

2020

Short-term 
goal

Mid-term 
goal

Long-term 
goal 

6,870

8,832

10,281

10,800

14,800

28,000

Number of processes improved as a result of risk 
assessments at base station sites

2018

2019

2020

Short-term 
goal

Mid-term 
goal

Long-term 
goal 

11,859

12,283

12,873

14,000

16,000

23,200

Towers
Global Tower, the leading tower com-
pany  in  Turkey  and  one  of  our  sub-
sidiaries,  operates  in  four  countries. 
Providing services to telecom opera-
tors,  radio-TV  broadcasters,  internet 
service  providers,  energy  companies 
and public institutions in the fields of 
tower  rental,  tower  build-and-sell, 
tower  maintenance  and  contract 
management, Global Tower has also 
started to provide its customers sat-
ellite  communication  services  with 
end-to-end  solution  concepts.  Glob-
al  Tower  provides  closed-circuit  sat-
ellite  services  at  over  two  thousand 
points over its own infrastructure with 
geographic redundancy, and aims to 
increase  its  product  range  and  ser-
vice  diversity  by  following  satellite 
sector trends.

Global Tower has a portfolio of 10,913 
towers as of the end of 2020 and the 
portfolio distribution is as follows;

Turkey:  8,789  (owned:  4,341,  right  of 
use:  2,256,  contract  management: 
2,192)

Ukraine: 1,175 (owned)

Belarus: 834 (right of use)

TRNC: 115 (right of use)

Global  Tower  closely  monitors  the 
transformation  process  of  the  tele-
communications infrastructure sector 
from  tower  management  to  infra-
structure  management 
throughout 
the  world  and  plans  to  introduce 
new  business  lines  in  this  sector  to 
its  customers.  On  the  other  hand,  it 
is  observed  that  mobile  operators  in 
our  country  have  a  positive  stance 
on 
infrastructure  sharing  and  the 
consolidation  model  pioneered  by 
Global  Tower  in  parallel  with  global 
developments. With  the  new  regula-
tory arrangements to be made in this 
area,  a  crucial  step  will  be  taken  in 
terms of operational savings and re-
source efficiency.

Integrated infrastructure  with 
redundant sources
We  completed  the  convergence  of 
our  fixed  and  mobile  transmission  in-
frastructure in the transmission aggre-
gation layer. Having implemented this 
new design, we optimized investments 
through the use of shared network de-
vices  for  fixed  and  mobile  infrastruc-
ture. Accordingly, we created a trans-
mission  network  with  a  shared  archi-
tecture  for  fixed  and  mobile  services. 
Other  benefits  of  the  new  transmis-
sion  network,  the  standards  of  which 
have  already  been  shaped,  may  be 
listed as:

•  Ability  to  position  higher  capacity 
devices  in  the  transmission  aggrega-
tion layer

•  Creating  a  backhaul  structure  to 
meet 5G service needs

• Ease of operational management

Our Fixed Mobile Convergence Project 
in this field received the Best Network 
Transformation Initiative award at the 
Asia Communication Awards in 2020. 

We  are  able  to  access  our  network 
data  centers  with  high  redundancy 
through our flexible transmission infra-
structure  with  redundant  sources.  We 
continue  our  network  investments  in 
our  large  data  centers  built  in  Ankara 
and  Izmir  following  the  one  in  Gebze, 
Kocaeli.  Having  opened  the  Istanbul 
Europe data center, we will focus our 
network investments in our large data 
centers, which we have recently built. 
Thus,  while  increasing  investment  ef-
ficiency,  we  are  constantly  building  a 
stronger communication infrastructure 
against natural disasters.

Telco cloud
We have virtualized 50% of our mobile 
and  fixed  core  network  infrastructure 
to  date.  On  the  back  of  virtualiza-
tion,  we  integrated  infrastructures  for 
network  applications  and  achieved 
CAPEX  and  OPEX  savings  through 
horizontal  and  vertical  architectures. 
Along  with  investment  savings,  we 
have  been  able  to  deliver  services 
faster  using  similar  hardware  and  in-
frastructure  for  virtualized  services 
and  solutions.  In  2020,  we  completed 
our core network infrastructure migra-
tion  to  virtual  infrastructure  with  re-
spect to mobile internet and HD voice 
services over 4.5G. Going forward, we 
will  be  making  mobile  core  network 
investments entirely on the Telco cloud 
infrastructure.

Network virtualization rate (%)

2018

2019

2020

Short-term 
goal

Mid-term 
goal

Long-term 
goal 

18%

41%

51%

51%

58-65%

75%

Central  management  and  orches-
tration  are  becoming 
increasingly 
important with greater system diver-
sity  and  volumes  in  NFVI  (Network 
Function  Virtualization  Infrastructure) 
infrastructure.  In  order  to  meet  the 
rising  communication  needs  of  our 
customers on a timely and seamless 
basis,  we  utilize  the  MANO  (MAN-
agement  and  Orchestration)  solu-
tion,  which  enables  us  to  manage 
core  network  system  life  cycles  with 
a faster and more flexible approach.

Monitoring  KPIs  related  to  the  archi-
tectural components of the virtual in-
frastructure  and  the  ability  to  imple-
ment  root  cause  analysis  regarding 
the relationship between these com-
ponents  are  crucial  in  sustaining  the 
quality  of  network  services  offered 

to  our  customers.  In  this  respect,  we 
have  implemented  the  NFVI  Service 
Assurance  project  to  manage  cus-
tomer  experience  over  virtual  infra-
structure more effectively.

Service Operations Center (SOC)
The Service 
Operations Center 
actively conducts 
analysis and carries 
out operational 
activities 24/7 to keep 
infrastructure and 
service continuity at 
optimal levels. 

It is crucial to monitor alarms to iden-
tify  potential  failures  in  our  network 
and take necessary actions regarding 
these  failures  on  a  timely  basis.  We 
take necessary measures to increase 
digitalization  and  automation  levels 
in  the  Service  Operations  Center  to 
improve efficiency and minimize po-
tential errors.

We have in large part automated the 
processes of monitoring and commu-
nicating  network  failures  for  the  ac-
cess network in 2020. “ZeroTouch Ac-
cess  Network  Automation  Activities” 
leads to operational efficiency in the 
SOC unit, as well as proactivity in the 
process of managing customer com-
plaints at the Call Center. Having au-
tomated  processes  for  the  Regional 
Solution Partner (RSP) teams that car-
ry  out  site  operations,  we  were  able 
to shorten the response and solution 
times of problems, thereby contribut-
ing to customer satisfaction.

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156

Investing in domestic equipment
We support the technological devel-
opment and digitalization process of 
our country participating in initiatives 
to  develop  domestic  technologies 
and equipment, thereby creating val-
ue for our country. Introducing Turkey 
to  the  latest  technologies  and  inte-
grating them to our infrastructure, we 
continue  to  differentiate  our  market 
position.

SDG 17.16

SDG 9.B

As  part  of  domestic  antenna  and 
4.5G base station development activ-
ities,  we  provided  expert  support  to 
Aselsan  and  ULAK  ranging  from  the 
design phase to field tests. We start-
ed  to  use  the  respective  equipments 
in  our  network.  Moreover,  as  part  of 
the  process  for  developing  domestic 
and national 5G technology, we give 
support to ULAK Haberleşme A.Ş. and 
HTK 
(Communication  Technologies 
Cluster),  which  carry  out  activities  in 
development and manufacturing. Do-
mestic  5G  product  development  ac-
tivities  continue  within  the  scope  of 
the End-to-End Domestic and Nation-
al Communication Network (UUYM5G) 
Project.  As  Turkcell,  we  participate  in 
the UUYM5G Project with a large and 
organized project team, and contrib-
ute to the project by sharing our ex-
pertise in 5G as well as providing ac-
cess to our laboratory and test equip-
ment  facilities.  The  product  groups, 
which  are  developed  as  part  of  the 
project,  include  5G  New  Radio,  Core 
Network,  OSS,  NFV,  and  Radiolink. 
Actively  engaging  in  these  projects, 
we provide the maximum support to 
domestic  and  national  development 
activities  in  Turkey.  As  a  member  of 
the Turkey Cyber   Security Cluster, we 
contribute  to  the  development  of  a 
domestic  cyber  security  ecosystem, 
and increase awareness and cooper-
ation in this area by bringing togeth-
er the public and private sectors and 
academic institutions.

broadband  access  to  households  at 
speeds of up to 10 Gbps via globally 
accepted G-PON/XGS-PON technol-
ogy.  This  value  is  an  upper  limit  and 
may  vary  depending  on  variables 
such  as  tariff  type,  fiber  internet  us-
age density, and the maximum speed 
the  modem  can  support.  While  the 
average  fixed  internet  speed  in  Tur-
key  is  around  28  Mbit,  90%  of  Turk-
cell  customers  prefer  offerings  with 
speeds of over 35 Mbit.

In  2020,  we  introduced  our  new  fib-
er  customers  to  Wi-Fi  6  technology, 
enabling  them  to  experience  fib-
er  speed  at  home  more  effectively. 
Through  this  technology  we  provide 
up  to  40%  speed  improvement  and 
much  better  home  coverage.  We 
continue 
technologies 
that  meet  increasing  demand  from 
our customers in the pandemic envi-
ronment, particularly for remote edu-
cation and remote work.

to  develop 

As  we  continue  to  expand  our  ser-
vices, we also focus on solutions that 
meet  the  needs  of  our  corporate 
customers.  We  became  the  first  op-
erator to offer the SD-WAN service to 
customers. We provided security and 
access  services  simultaneously  on  a 
single platform. We created solutions 
to  reduce  increasing  costs,  while  in-
creasing production capacities.

Moreover,  as  part  of  managed  ser-
vices,  we  can  address  the  changing 
needs  of  our  corporate  and  whole-
sale  customers  via  services  such  as 
Enterprise Wi-Fi. We continue to offer 
new  technologies  in  the  Wi-Fi  field 
such as SMS integration, logging, and 
Wi-Fi 6.

The new generation 
Converged Transport 
Network architecture,  
developed by 
Turkcell engineers in 
accordance with our 
customers’ needs, 
enables us to manage 
data traffic in mobile 
and fixed networks 
from a single channel. 
In this regard, our customers continue 
to receive a high quality and fast ser-
vice even during periods of heavy us-
age as has been the case during the 
pandemic  period.  Converged  Trans-
port  Network  architecture,  which  is 
part  of  the  preparation  process  for 
the  5G  network,  enables  the  use  of 
technologies  to  be  introduced  with 
5G technology.  

Strong fiber infrastructure
As the Company that introduced Tur-
key  to  fiber  internet  at  the  speed  of 
light,  we  provide  fast,  high  quality 
and inclusive services to our custom-
ers,  and  facilitate  everyone’s  access 
to  information  and  the  internet.  As 
Turkcell,  we  brought  fiber  infrastruc-
ture  to  all  81  cities  of  Turkey. We  are 
also  able  to  provide  corporate  and 
wholesale  services  in  every  city  of 
Turkey. We work relentlessly to deliv-
er Turkcell quality everywhere.

SDG 11.A

We provide a fiber internet service to 
households in 23 cities, and continue 
to expand our coverage. We continue 
to  invest  during  the  pandemic  peri-
od. And we develop our fiber internet 
infrastructure,  higher  speed  internet 
tariffs  and  new  technological  solu-
tions.  As  Turkcell,  we  provide  fiber 

While  we  continue  to  expand 
our fiber infrastructure, we also 
offer household internet servi-
ce  over  our  mobile  network 
with  our  Superbox  solution, 
which was developed to bring 
Turkcell  quality  to  locations 
without fiber access and offer 
high quality internet service at 
fiber speed to customers. The 
internet usage has risen signi-
ficantly particularly during the 
pandemic  environment  with 
the  use  of  remote  education 
and remote working practices 
and  with  more  time  spent  at 
home. The demand for Super-
box  service,  which  provides 
same  day  installation  oppor-
tunity  to  customers,  doubled 
in  the  first  week  of  April,  and 
268  thousand  net  subscribers 
were registered in 2020.

Superbox 
was deemed 
worthy of 3 
different awards: 
International 
Business Awards, 
Effie Awards and 
GTI Awards.

SDG 9.B

Strong spectrum
With  the  frequency  resources  that  it 
owns, Turkcell has the largest licensed 
spectrum  that  can  be  used  in  mobile 
communications  services 
in  Turkey. 
Having  34%  and  68%    more  spectrum 
resources  compared  to  other  opera-
tors in the market, respectively, Turkcell 
leverages this muscle to provide higher 
quality  services  to  its  customers.  Fur-
thermore, the technologies used in the 
telecom  sector  are  also  transforming 
via rapid technological developments. 
We establish our spectrum assets in a 
technology neutral approach to easily 
adapt  to  technological  developments 
and  leverage  the  large  cost  of  infra-
structure investments and long service 
lifecycle  to  the  maximum  extent  pos-
sible.

Leveraging our rich 
frequency resources, 
we aim to maintain 
the high service 
quality of our 4.5G 
service, as confirmed 
with the maximum 
1.4 Gbps speed* that 
we offer, with 5G 
technology also, when 
introduced in the 
upcoming periods.

We  represented  our  country  in 
the international arena via the 5G 
test  project  that  we  successfully 
conducted  in  NGMN  (Next  Gene-
ration  Mobile  Networks  Alliance), 
the  members  of  which  consist 
of  operators  serving  over  60%  of 
mobile phone users over the wor-

ld  with  more  than  200  networks. 
As  part  of  the  5G  field  tests,  we 
have demonstrated that 5.5 Gbps 
cell capacities can be reached in 
downloads  by  using  Multi-User 
MIMO 
technology. 
You  can  access  the  technical  re-
port of the project via the link.

(MU-MIMO) 

Refarming
As part of the project, we aim to 
increase  the  spectrum  resourc-
es  allocated  to  4.5G  technology 
due to increasing 4.5G data traf-
fic.  We  will  plan  and  implement 
activities  in  relation  to  frequency 
transformation  and 
inter-tech-
nology refarming that will enable 
spectrum  efficiency.  The  resource 

allocated to 4.5G technology has 
been  increased  significantly  as 
part  of  city-based  implementa-
tions, prioritizing metropolitan cit-
ies. In this regard, we created ad-
ditional network capacity to meet 
increasing data usage particularly 
during  the  pandemic,  while  in-
creasing customer experience.

You may find detailed information on 5G trends that lead to 
changes and developments in the telecom sector and many 
other business areas in the trends section.

*  This value is an upper limit and represents theoretical peak values. The speed that the customer can 
receive may vary depending on the maximum speed that the terminal can support, its location and 
distance from the base station, the configuration of the base station, the instant traffic density in the 
network and the number of subscribers currently receiving service from the field.

https://www.ngmn.org/technical-documents.html

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158

High speed, high quality and 
inclusive services; Access to 
information and internet for 
everyone
We  aim  to  provide  faster, 
more 
inclusive  and  higher 
quality  services  to  our  cus-
tomers  through  investing  in 
and  improving  our  networks 
and 
infrastructure.  We  aim 
to  maintain  our  high  network 
availability  via  data  accessi-
bility rate of 99.96% calculated 
over  traffic  loss  in  our  mobile 
network,  and  our  low  inter-
ruption  rate  of  0.3%  in  mobile 
voice calls.

We  serve  our  customers  with 
innovative  solutions  such  as 
Superbox,  and  aim  to  provide 
access to information and the 
internet for everyone.

As  part  of  our  Portable  So-
lar  Field  project,  we  have  re-
duced  our  carbon  emissions 
by  generating  46  MWh  of 
electricity  from  5  solar  panels 
that we added to our portfolio 
in  2020,  and  5  portable  solar 
fields established in 2019. 

Meanwhile,  we  increased  our 
service  coverage 
seasonal 
by  offering  the  Portable  Solar 
Field  solution  in  Bodrum  Gök-
ova  Kissebükü,  Alanya  Fakır-
calı  Plateau,  Beytabı  Plateau 
in  Ordu,  Alancık  Plateau  in 
Giresun, Artvin Borçka Beyazsu 
Plateau,  and  one  of  the  pla-
teaus of Karçal Mountain at an 
altitude of 3,415 meters.

SDG 9.1, 9.4, 9.C

International sale and wholesale
We lead the transformation of the 
telecommunications sector in Tur-
key  and  support  its  development 
through the business partnerships 
we  establish  with  international 
and  national  operators  in  inter-
national roaming, interconnection, 
wholesale  voice,  wholesale  data, 
tower and digital services.

Turkey, the main internet route
We  have  become  the  most  im-
portant  capacity  and 
internet 
provider  for  many  neighboring 
countries  through  our  activities 
conducted  since  2008  as  part  of 
our vision of transforming the Silk 
Road into the Fiber Road, and our 
core  strategy  of  positioning  Tur-
key as the primary internet route, 
with Istanbul becoming a regional 
internet hub.

Through collaborations with lead-
ing  global  operators,  we  have 
served  as  a  bridge  providing 
wholesale  customers  with  un-
interrupted  access  from  East  to 
West, at the speed of light.

Istanbul, the traffic exchange 
hub of the region
As  part  of  our  wholesale  data 
services,  we  have  increased  our 

international carrying capacity to 
over 10 Tbps. We have cooperat-
ed with the world’s largest global 
traffic  exchange  platforms  and 
played  a  major  role  in  their  de-
cision to enter the Turkish market. 
Thus, we have taken another cru-
cial  step  in  transforming  Istanbul 
into  the  traffic  exchange  hub  of 
the  region.  We  have  also  played 
a  significant  role  in  encouraging 
content  providers  to  offer  their 
services from Istanbul.

Digital export
We  strengthened  our  digital  ex-
port  move  through  our  cooper-
ation  with  Digicel  Group  in  the 
fourth quarter of 2020, which ini-
tially began with our cooperation 
with  Moldovan  operator  Moldcell 
in 2017 and with Albanian opera-
tor ALBtelecom in 2019. Operating 
in  the  Caribbean,  Central  Ameri-
ca  and  Pacific  regions,  Digicel,  in 
partnership with Lifecell Ventures, 
a  100%  Turkcell  subsidiary,  has 
offered  life  and  communication 
platform  BiP,  TV  platform  TV+, 
lifebox  and  Fast  Login  to  its  cus-
tomers  in  32  countries.  We  will 
continue  to  expand  our  digital 
service  and  technology  solutions 
by  establishing  strong  collabora-
tions worldwide.

Data centers
As  Turkey’s  largest  data  center  op-
erator,  we  build  technologically  ad-
vanced  data  centers  in  accordance 
with  our  vision  that  Turkey’s  data 
should  remain  in  Turkey.  We  provide 
24/7  remote  data  center  manage-
ment  services  to  over  1,600  custom-
ers  including  Turkey’s  largest  corpo-
rations.  We  enable  our  customers  to 
access systems independent of loca-
tion and continue to work from home, 
which  has  become  increasingly  im-
portant,  particularly  in  the  pandemic 
environment. Meanwhile, expert Turk-
cell  engineers  provide  remote  assis-
tance  and  solve  problems  quickly  in 
extraordinary circumstances.

Offering superior 
cyber security 
standards at our 
data centers and 
supporting domestic 
technologies, we 
also create value as 
part of our activities 
geared at our cyber 
security and privacy 
material topic.

Our Ankara data center, the largest in 
Turkey  with  12  thousand  m2  of  white 
space, plus our Izmir and Gebze data 
centers  have  been  built  with  high 
earthquake  resistance  systems  and 

have  systems  rooms  that  can  with-
stand  fire  for  120  minutes.  Our  data 
centers  also  pursue  environmental-
ly  friendly  practices.  Roof  type  solar 
panels  are  installed  at  the  Ankara 
Data Center to produce approximate-
ly  500  thousand  kWh  of  electricity 
annually and meet usage needs. With 
our  LEED  (Leadership  in  Energy  and 
Environmental  Design)  Gold  certified 
data centers, we set a pioneering ex-
ample  not  only  in  terms  of  the  tech-
nology  itself,  but  also  of  our  impact 
on the environment.

SDG 9.1, 9.4

SDG 7.2

SDG 13.1

Our Ankara data 
center was awarded 
the Operational 
Sustainability Gold 
certificate, valid 
for 3 years, by the 
Uptime Institute, which 
inspects data centers 
at the international 
level.  
We  also  attach  utmost  importance 
to  the  use  of  domestically  manufac-
tured products in the building process 
of our data centers. We continue our 
efforts to increase the rate of domes-
tic products used in the data centers 
that we build. Accordingly, the ratio of 
domestic products used in the Gebze 
Data  Center,  which  opened  in  2016, 
was  35%,  while  that  of  the  Ankara 
Data  Center,  which  opened  in  2019, 
had increased to 65%.

Data center domestic product usage rate

Gebze
Data Center

35%

İzmir
Data Center

50%

Ankara
Data Center

65%

The interaction of 
our manufactured 
capital with our other 
capitals

Our manufactured 
capital provides 
technical infrastructure, 
operability and speed 
for all our services and 
products. Although 
our infrastructure and 
data centers create 
negative value due to 
energy consumption 
via our natural capital, 
we actively conduct 
efficiency and saving 
activities to reduce 
such impact. We pay 
utmost attention to 
public health via our 
ERM practices at our 
base stations, which 
are much stricter 
than stipulated by 
operative regulations 
and standards, 
thereby contributing 
to our social values 
and relationships. 
We strengthen our 
intellectual capital 
with the solutions we 
create as a result of 
our R&D activities. We 
also strengthen our 
financial assets with 
the economic value 
we create.

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Manufactured capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intellectual 
capital

164

Innovation and entrepreneurship

167

Digital services and solutions

173  

Digital business services (DBS)

177

Brand and responsibility

162

Intellectual capital

Intellectual capital

Inputs

Outputs

Value created

Patents and R&D activities
• University and start-up collaborations: 
  Our facilitating role in private sector collaborations
• National and international supported projects: 
  Active participation in R&D programs
• Intellectual and industrial property rights: 
  Our Intellectual and industrial rights management
• Technical and academic publications

Entrepreneurship ecosystem, start-up 
and university collaborations
• Techno-park visits: Our close relations with 
  entrepreneurship ecosystem
• Beehive: Our crowd funding platform
• Corporate entrepreneurship programs: 
  Our transformation programs to corporate entrepreneurs

Services and applications we developed
• Our indivudal and corporate digital products and services: 

Digital services and digital business services

• Techﬁn: Our technology ecosystem for ﬁnancial services
• Developing artiﬁcial intelligence products internally and 

externally at Turkcell: AI technologies we have developed

AI and blockchain applications
• AI Principles: Our AI approach
• AI based products and services: 
  Services we offer on the AI platform
• Blockchain applications: Our Blockchain solutions

Being a strong brand: Strong brand in its sector

Cyber security services
• MSS Managed security services: Customized security services
• Cyber Defence Center: Cyber security applications
• Offensive security: Security test and assessments

Company policies

1,080

R&D employees

10incubator 

collaborations

Outputs

26%

digital services 
standalone 
revenue growth

140 billion

messages sent 
via BiP

40
thousand

Chatbot users

557patent

applications

9

hospitals provided  
with technological 
infrastructure

Improving the innovation and 
entrepreneurship ecosystem through 
Turkcell experience
• Adding innovative perspectives to our 

current solutions through university and 
start-up collaborations

• Contribution to domestic technology 

development

Being an operator at the global scale 
through a digital operator vision

Making life easier by developing 
inclusive and value creating products 
and services
• Contribution to Turkey’s digital 

transformation and national economy 
through TOGG project

• Creating value-add through services using 

big data analytics

Understanding the customer better 
through data analytics competence

Reducing cyber security risks, meeting 
the cyber security needs of customers

Ensuring ethical and equal business 
processes

Value created through 
open source coding

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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164

Superior digital services 
and innovation

customers.  We  offer  our  products  to 
the  right  customer  at  the  right  time 
and  the  right  price,  leveraging  both 
our  strong  bond  with  them  and  our 
advanced  analytical  skills,  which 
rank  among  our  core  competencies. 
On the back of our big data analytics 
applications,  we  are  able  to  provide 
customized  offers  to  more  than  35 
million customers.

Innovation and entrepreneurship
Through our subsidiary Turkcell Tech-
nology,  we  conduct  our  activities  as 
one of the largest R&D organizations, 
with over 1,000 R&D employees as of 
2020. We continue to offer innovative 
solutions in national and international 
markets  through  activities  geared  at 
the  development  of  new  technolo-
gies. With the experience accumulat-
ed  throughout  the  transformation  of 
Turkcell  from  a  technology-oriented 
network provider to a service-orient-
ed experience provider, we carry out 
joint  R&D  programs  and  issue  aca-
demic  publications  with  universities, 
and engage in startup collaborations 
with techno park companies. Moreo-
ver,  we  participate  in  nationally  and 
internationally  supported  projects, 
contribute  to  technical  publications, 
and conduct training and conference 
that  enable  knowledge 
activities 
transfer.

SDG 9.4

COVID-19 note
We  use  our  intellectual  capital 
to  provide  timely  and  effecti-
ve  responses  to  the  COVID-19 
pandemic,  which  has  signi-
ficantly  impacted  key  areas 
such  as  education,  social  life, 
and  the  economy.  During  the 
curfews,  we  implemented  the 
“Getir  Turkcell’le”  project  over 
Paycell  infrastructure  to  help 
our  customers  aged  65  and 
above  meet  their  needs.  As 
part  of  this  cooperation,  the-
se  customers,  who  called  the 
Paycell  call  center  to  place 
orders,  could  easily  make  the-
ir  payments  by  reflecting  the 
cost to their telco bill over Pay-
cell  infrastructure.  Meanwhile, 
students,  who  have  continued 
remote  education  from  home 
during this period, could follow 
their lessons on our digital tele-
vision  platform  TV+.  As  part  of 
the fight against the pandemic, 
a 24/7 information channel ser-
vice  was  offered  to  BiP  users, 
regardless of their operators.

We aim to steer the 
future with our 1,080 
R&D employees, who 
have adopted the 
principle of integrating 
our value-creating and 
innovative approach to 
our corporate culture 
and stakeholders, in step 
with our activities aimed 
at “developing and 
improving technology”.

We  believe  that  an  innovative  busi-
ness  culture  based  on  strong  per-
formance  in  systems,  processes  and 
technology  is  essential  to  achieve 
the  most  efficient  and  effective  re-
sults  from  our  strategic  initiatives 
and  business  model.  Leveraging  our 
intellectual capital in the competitive 
markets  we  operate  in  allows  us  to 
implement  and  develop  our  strategy 
in  the  most  effective  way.  In  this  re-
spect, while enriching the experience 
of our customers in their digitalization 
journey,  we  aim  to  create  value  for 
all  our  stakeholders  with  a  focus  on 
digital transformation.

Our  intellectual  capital  touches  var-
ious  fields  such  as  innovation,  entre-
preneurship,  brand  power,  responsi-
bility,  products  and  services,  which 
reflect  Turkcell’s  unique  expertise 
and  knowledge,  and  is  one  of  the 
driving  forces  of  sustainable  growth 
that  differentiates  Turkcell.  Leverag-
ing our superior digital competencies 
and  analytical  capabilities,  we  uti-
lize new technological developments 
such as IoT, artificial intelligence and 
blockchain  to  improve  our  products 
and  services.  Thanks  to  our  services 
developed  and  improved  by  Turkcell 
engineers, we produce solutions that 
meet the needs and demands of our 

We  gather  the  innovative  products 
and  services  developed  through  our 
engineering  activities  at  the  Turkcell 
Technology R&D center under the fol-
lowing groups: 

Roaming  solutions,  big  data 
processing,  business  intelligen-
ce  applications,  smart  cloud 
platform and solutions develo-
ped  on  platform,  location-ba-
sed services and platforms, ge-
ographic  information  systems, 
customer 
relations  manage-
ment  and  solutions,  network 
management  solutions,  new 
generation  value  added  servi-
ces,  mobile  financial  systems, 
music  and  entertainment  ser-
vices, 
IPTV  services,  mobile 
marketing solutions, Internet of 
Things  (IoT),  AR/VR,  5G  infrast-
ructures,  mobile  communica-
tion  solutions,  campaign  ma-
nagement  systems,  smart  SIM 
card  solutions,  digital  identity 
technologies,  developments  in 
image & video processing with 
artificial  intelligence,  text  and 
natural language analysis (NLP), 
recommendation  engines,  vo-
ice  analytics,  robot  assistants, 
robotic  process  automation, 
mobile  analytical  platforms, 
artificial  intelligence  in  health, 
business applications solutions, 
learning  and  education  app-
lications  solutions,  e-mail  and 
search  engine  solutions,  digital 
broadcast solutions, CDN (Con-
tent  Delivery  Network)  Soluti-
ons,  Over-the-Top  (OTT)  and 
blockchain solutions.

In our patent 
application processes, 
we continue to 
exchange our 
experience with 
universities, startups, 
SMEs, business 
partners and the 
entire ecosystem.

Number of R&D employees

894 people
2018

956 people
2019

1,080 people
2020

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Reflecting  Turkcell’s  strategy  of  ex-
panding  the  presence  and  scope  of 
its  products  and  services  in  interna-
tional  markets,  we  aim  to  develop 
our  new  digital  and  ICT  services  on 
a  global  scale  based  on  the  latest 
technologies  and  market  needs,  and 
grow in those regions where we offer 
our services. 

By  preparing  our  patent  applications 
for the products and services that we 
develop,  and  reviewing  the  patents 
applied and registered by technology 
companies  in  the  field  in  which  we 
operate,  we  obtain  information  on 
competition  and  trends,  and  identify 
those areas where we can differenti-
ate ourselves. 

Number of patent registrations*

Number of patent applications

*Presented as cumulative number.

2018

369

453

2019

521

511

2020

700+

557

Turkcell Teknoloji has a leading position 
in its sector in Turkey with 2,674 national 
patent applications, 167 international patent 
applications and over 700 registered patents 
completed since 2008.

We  support  valuation  activities  with 
respect  to  registered  utility  models 
and patents within Turkcell Group. As 
part  of  these  activities,  we  continue 
to gain experience on the calculation 
methods of cost efficiencies created 
by technical solutions that are subje-
ct to patents. As a result of the patent 
valuation  activities  for  our  solutions 
such  as  Messaging  Applications  and 
International  Fraud  Prevention  Sys-
tems, we continue to benefit from the 
corporate  tax  advantages  provided 
by  the  Ministry  of  Finance  conside-

ring the benefit created by patented 
products.

As part of our responsibility as a bo-
ard  member  of  ITEA3  (International 
Technology  Education  Association) 
and  Celtic  Next  cluster  programs 
within  EUREKA  (The  European  Audi-
ovisual  Observatory),  we  enable  the 
firms  in  our  ecosystem  and  SMEs  to 
access 
In 
projects that we participate in under 
the EUREKA umbrella, funding support 
is assessed by competent authorities, 

international  platforms. 

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Intellectual capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
166

Intellectual capital

TÜBİTAK-TEYDEB  (the  Scientific  and 
Technological  Research  Council  of 
Turkey  –  Directorate  of  Technology 
and  Innovation  Support  Programs). 
In recent years, we have successfully 
increased the number of project app-
lications as part of the Horizon 2020 
main  program  and  subprogram  that 
derive direct and large grant support 
from  the  European  Commission,  on 
platforms offering a more competiti-
ve and selective environment for pro-
posing project ideas.

We  continue  to  seek  university  and 
startup  collaboration  opportunities 
in order to support startups in accor-
dance  with  the  guidance  of  the  Mi-
nistry  of  Science,  Industry  and  Tech-
nology,  and  to  expand  Turkey’s  R&D 
ecosystem so as to increase the we-
ight  of  domestic  products  and  servi-
ces.  We  develop  products  with  star-
tup companies, provide technological 
support,  and  increase  their  commu-
nication  and  recognition  by  including 
them  in  the  European  Union  projects 
that we are involved in.

As an example, we continue to work 
with  a  techno  park  company  to 
transfer real-time water analysis over 
NB-IoT  based  communication  modu-
les  as  of  2020.  This  project  enables 
remote analysis of drinking water re-
sources  in  the  event  of  a  disaster  or 
refugee  influx.  By  integrating  our  5G 
competencies  to  the  hardware  pro-
duction  capabilities  of  the  startup 
company,  we  work  on  an  innovative 
national product.

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HORIZON project applications

University collaborations supported by TÜBİTAK

Incubator collaborations

2018

2019

2020

11

8

7

10

9

15

2018

2019

2020

4

8

4

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5

10

Beehive – Turkey’s
crowd funding platform
The  Beehive  platform,  enabling  en-
trepreneurs to receive necessary re-
sources  from  society  to  implement 
their technology and innovation-ori-
ented projects, provides various ad-
vantages in terms of crowd funding. 

Beehive  enables  project  owners  to 
secure  the  financial  resources  they 
need to launch their products via the 
support of individuals across socie-
ty, in large and small amounts, rather 
than relying on a specific person or 
institution.  Over  7  thousand  project 
applications  have  been  submitted 

to  Beehive  to  date.  40  out  of  73 
selected  projects  have  successful-
ly  completed  their  campaigns  with 
funds  reaching  around  TRY7.5  mil-
lion. Initiatives that have successfully 
attracted  funds  and  started  mass 
production  have  already  begun  to 
make a difference in the world.

Value Created through Use 
of Open-Source Coding
As  Turkcell,  the  use  of  open-
source  software  is  a  signif-
icant  topic  for  us  both  from  a 
user  and  developer  perspec-
tive.  Open-source  software  is 
utilized  to  solve  various  prob-
lems  in  software  architecture. 
We  prefer  using  open-source 
software  as  the  building  block 
of  high-volume 
infrastructure 
applications such as ONEDESK, 
ULTIA, ONENT, YAP, PARS, which 
have been developed under the 
Turkcell GENS directorate. In this 
respect,  in  addition  to  creating 
value  in  terms  of  license  man-
agement  and  cost  initiatives, 
we  support  the  future  of  the 
software  world  contributing  to 
the development of high-quali-
ty secure software without any 
provider restrictions.

Our  human  capital  lies  at  the  heart 
of our R&D and innovation strategies. 
In this respect, we provide academic 
development opportunities to Turkcell 
Technology  researchers.  Our  post-
graduate  and  doctorate  programs, 
designed  to  improve  the  technical 
knowledge  base  of  our  employees 
in accordance with the qualifications 
required  by  our  sector,  are  ongoing 
since  2014  with  a  rapidly  growing 
curriculum.

In the meantime, in 
accordance with 
our vision of leading 
the production of 
new technologies, 
we contributed to 
the expansion of 
technology studies 
by issuing 23 
academic and 95 
technical publications 
on national and 
international platforms 
in 2020.

Digital services and solutions
While  our  digital  services  and  solu-
tions  offer  our  users  a  richer  value 
proposition,  we  also  work  on  devel-
oping  our  solutions  to  cover  all  user 
needs. Leveraging the power of tech-
nology and communication, we have 
maintained  our  tradition  over  the 
past  27  years  of  facilitating  people’s 
lives and achieving firsts, by conduct-
ing  projects  befitting  the  title  of  the 
world’s  first  digital  operator.  We  not 
only  offer  communication  services, 
but also produce and develop digital 
services. The telecommunication sec-
tor  is  no  longer  limited  to  voice  and 
SMS services. Based on this strategy, 
we have developed numerous digital 
services  domestically  thanks  to  the 
more  than  1,000  engineers  working 
for  our  Company.  Establishing  sep-
arate  companies  for  some  of  these 
services, we have taken an important 

step towards their global competitive 
positioning. BiP, lifebox, TV + and fizy 
brands, which aim to stand out in the 
global  competitive  arena,  are  now 
positioned  as  separate  companies. 
As part of this structure, these brands 
conduct their activities faster, strong-
er, and with greater focus within their 
own organizational structures.

In 2020, we increased 
our digital services 
standalone revenues 
by 26%.

We continue to lead the digital trans-
formation  demanded  by  society 
through  dozens  of  services  includ-
ing  video  conferencing,  e-mail  ser-
vices,  instant  messaging,  TV,  digital 
broadcasting,  cloud  storage,  digital 

authentication  and  music  platform, 
which have been developed by Turk-
ish engineers and software develop-
ers.  To  make  this  digital  transforma-
tion accessible, we use our advanced 
analytical  capabilities,  and  position 
the  right  service  for  the  right  cus-
tomer,  thereby  enhancing  customer 
experience.  Furthermore,  develop-
ing  these  services  and  solutions,  we 
aim  to  contribute  to  the  production 
of  domestic  technologies,  and  to 
support  the  national  economy  with 
self-sufficient  technology  solutions. 
Meanwhile, we design global brands 
and  technologies,  which  we  digitally 
export  to  the  world.  We  consider  it 
our  primary  goal  to  make  a  positive 
contribution  to  the  national  econo-
my  and  reputation  of  our  country  by 
creating economic value through na-
tional  security,  data  ownership,  and 
by making use of our own data.

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Intellectual capital

Communication without Boundaries: BiP
BiP,  which  is  an  all-access  applica-
tion,  offers  a  seamless  communica-
tion  service  via  secure  messaging, 
calls  and  group  video  calls.  BiP  dif-
ferentiates  itself  from  global  players 
with  features  such  as  lost  messag-
ing,  web  calling,  emergency  button, 
fast  and  secure  money  transfer  as  if 
sending a message, group video-call, 
video-conference  solution  and  the 
option  of  using  two  phone  numbers 
on  a  single  device,  called  Second 
Number at BiP.

In  2020,  the  number  of  group  video 
calls  made  over  BiP  increased  ap-
proximately  fivefold  compared  to 
2019,  from  7.1  million  to  34.1  million. 
Meanwhile, data usage doubled from 
3.9  million  GB  to  8  million  GB.  With 
BiP, we achieved a 16% growth in ap-
p2app calls in 2020. 

Through  the  BiP  Meet  platform,  we 
enable  users  to  communicate  with 
anywhere  in  the  world  anytime  over 
a  strong  infrastructure  with  a  user 
friendly  interface,  while  keeping  all 
respective data in Turkey. 

You may access the products, 
services and detailed 
information we offer within 
BiP at www.bip.com

You can access BiP Meet, 
Turkey’s fast and secure 
remote meeting solution, 
on www.bipmeet.com

Number of BiP active users (million)

Total number of messages sent via BiP (billion) 

2018

2019

2020

11

34

8.9

90

9.6

140

Supporting the fight against COVID-19 through BiP
BiP  users,  independent  of  operator,  can  take  an  Online  COVID-19  test 
from the Ministry of Health channel in the Discover section, and access 
the  ALO  184  Ministry  of  Health  Contact  Center  Information  Line  free 
of  charge  in  suspicious  cases.  Users  following  the  channel  can  also 
instantly access current news on the pandemic announced by the Min-
istry of Health, the COVID-19 Live Map showing the latest updates and 
general announcements.

The first company-specific communication platform: a-ileti
As  part  of  our  customized  corporate  solutions,  over  8  thousand  Asel-
san employees conduct all of their communications securely thanks to 
the a-ileti platform, exclusively designed and developed for Aselsan by 
Turkcell engineers.

BiP Emergency Button
The “Request Help” feature on the Emergency Button of BiP, developed 
by  Turkcell  engineers,  now  also  works  on  Bluetooth  technology  when 
needed,  saving  lives  in  emergencies.  The  number  of  registered  emer-
gency contacts, who can be reached in the event of natural disasters 
such as earthquakes has exceeded 2 million. Users are able to inform 
their  emergency  contacts,  registered  to  the  platform  in  advance,  on 
whether they are safe or need help, with a single button via the emer-
gency feature.

The  best  thing  that  can  happen  to  a 
phone: lifebox
lifebox, which allows users to securely 
store and share photos, videos, music 
and  documents,  offers  a  secure  and 
easy  platform  to  keep  memories, 
while  also  offering  a  social  experi-
ence. Our personal smart cloud stor-
age service lifebox, on which billions 
of  images  have  been  uploaded  to 
date, appeals to users not only in Tur-
key, but all around the world. 

With  functions  beyond  storage,  life-
box stands out for its feature of auto-
matically creating stories among the 
photos  it  chooses,  as  well  as  recog-

nizing  faces  and  objects,  while  also 
ensuring  that  contact  information  is 
not  lost  in  any  adverse  situation  via 
secure  contacts  backup.  Documents 
archived  in  various  categories  may 
be  securely  accessed  by  using  fin-
gerprint,  face  recognition  or  pass-
word.  Moreover,  images  in  lifebox 
can be categorized separately based 
on person, object, date, and location 
criteria. 

With lifebox Transfer, we aim to offer 
a convenient and free-of-charge ex-
perience  of  fast  file  sharing  without 
need  for  membership,  while  storing 
all respective data in Turkey.

You may access the products, 
services, and detailed 
information we offer within 
the scope of lifebox on 
www.mylifebox.com and 
www.lifeboxtransfer.com.

Number of ﬁles backed-up via lifebox (billion)

Number of users who backed-up their contacts via 
lifebox (million)

Number of users who uploaded ﬁle to lifebox 

(million)

2018

2019

2020

3.5

1.1

6.4

2.7

8.1

3.3

3.2

4.3

5.4

TV joy is everywhere: TV+
TV+, both a first and unique in terms 
of the TV watching experience in Tur-
key,  is  a  ground-breaking  television 
platform  changing  the  dynamics  of 
the  TV  world.  TV+  continues  to  play 
an important role in the digitalization 
of  user  experience  by  enabling  its 
users to access series, movies, docu-
mentaries, sports, children’s programs 
and other TV content, whenever and 
wherever they like. In addition to the 
rich  content  of  TV+  and  its  superior 
technical  features  that  provide  ease 
of  use,  users  can  watch  television 

any-time  and  anywhere  via  TV+ 
Ready,  and  benefit  from  the  oper-
ator-independent  TV+  service.  TV+, 
which was developed by Turkcell en-
gineers, can be watched on all plat-
forms. Even non-smart televisions can 
be  converted  to  a  smart  TV  thanks 
to  TV+  Ready  introduced  this  year. 
Users  of  TV+  can  access  the  world’s 
leading  football  leagues  such  as  the 
Bundesliga  and  Premier  League,  and 
other sports content such as NBA and 
Formula  1,  as  well  as  documentaries 
and thousands of applications.

You can find the products, 
services, and detailed 
information we offer within 
TV+ on www.tvplus.com.tr.

Number of IPTV users (thousand)

2018

2019

2020

613

720

871

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Turkey’s  digital  music  platform:  fizy
fizy, one of the most popular and pre-
ferred music platforms in Turkey, now  
delivers  a  more  customized  music 
experience to its customers with rec-
ommendation lists along with a rich-
er content archive. In addition to en-
joying  an  ad-free  music  experience 
and high-quality sound, fizy Premium 
users can view song lyrics and listen 
to content offline. As a differentiation 
point  from  competing  applications, 
users can benefit from advantageous 
discount  offers  thanks  to  brand  col-
laborations and customer campaigns 
exclusive to fizy. In 2020, as part of a 
campaign exclusive to students, they 
benefited from fizy’s standard Premi-
um membership.

In addition to our 4 
brands, for which 
separate companies 
were established, 
Yaani, YaaniMail 
and Dergilik have 
also been among 
our users’ favorite 
applications.

You may access the products, 
services, and detailed 
information we offer over 
fizy on www.fizy.com.

Number of fizy contents (million)

2018

2019

2020

28.8

32.6

33.5

Yaani  stands  out  with  its  features  of 
understanding  the  Turkish  language 
very  well,  showing  the  most  appro-
priate  results  for  the  searched  con-
tent  and  providing  Turkcell  subscrib-

ers  with  a  search  experience  of  rich 
data  sources.  It  makes  a  difference 
by  showing  the  closest  location  to 
the user in location-based searches.

Number of total Yaani downloads (million)

7.6

9.7

11.6

2018

2019

2020

In accordance with our vision of of-
fering  domestic  digital  services,  we 
introduced  our  customers  to  anoth-
er crucial service with the launch of 
domestic e-mail platform YaaniMail. 
YaaniMail,  launched  to  serve  both 
corporate and individual clients, was 
developed  by  Turkcell’s  R&D  engi-
neers.  The  platform,  serving  with 
the “@yaani.com” extension, offers a 
strong domestic alternative to glob-
al  competitors.  The  information  and 
data of YaaniMail users are stored at 
Turkcell Data Centers.

YaaniMail reached 
the 1 million account 
level in its first year 
thanks to vibrant user 
interest. 

Dergilik, where hundreds of newspa-
pers and magazines published in Tur-
key are delivered digitally on a single 
platform, enriches the magazine and 
newspaper reading experience, while 
facilitating the user experience of ac-
cessing  digital  publications.  Further-
more,  certain  Dergilik  features  are 
firsts  in  the  sector,  such  as  personal 
articles,  offline  reading,  automatic 
downloading  of  the  current  issue  of 
a  preferred  magazine  with  a  single 
instruction,  current  issue  notification 
of  magazines  in  the  favorites  list, 
and  reading  hundreds  of  magazines 
for  the  price  of  a  single  one.  Dergi-
lik  continues  to  provide  its  users  a 
unique  reading  experience  through 
recently launched audio articles, and 
personalized  magazine,  newspaper 
and article offers.

Environmentally friendly and 
practical solutions through 
digitalization: Digital signature 
at home
On the back of the new solution 
that  we  developed,  customers 
wishing to subscribe to our fib-
er,  DSL,  Superbox  and  TV+  of-
ferings will be able to complete 
their  subscription  using  a  digi-
tal  signature.  This  solution  ena-
bles service teams to complete 
product  set  up  and  configura-
tion 30% faster. Meanwhile, this 
will also lead to 11 million pages 
of  documents  being  digitalized 
annually, thereby protecting the 
environment.
1.5 million 
households are 
expected to use 
digital signatures 
annually across 
Turkey. 

Smart legal documentation
automation
In  addition  to  the  solutions  we 
offer to customers, we also de-
velop  a  smart  documentation 
solution for our own legal func-
tion,  the  paper  usage  of  which 
is  extreme.  As  part  of  this  pro-
ject,  we  aim  to  reduce  manual 
transactions  by  digitizing  the 
responses  to  legal  document 
requests  from  the  authorities, 
so  as  to  save  on  paper  usage. 
Thus, we expect to achieve ef-
ficiencies through prevention of 
errors  while  conducting  tasks, 
and  the  automation  of  manu-
ally  implemented  assignments 
and query functions via robotic 
processes.

Better  customer  experience  through 
artificial intelligencei 
We  enrich  and  develop  our  products 
and  services  making  use  of  artificial 
intelligence. By leveraging artificial in-
telligence to develop solutions for our 
applications  and  customer  services 
channels,  we  create  more  efficient 
and customized services. In 2020, we 
identified 7 principles to comply with 
in  utilizing  the  powerful  tool  of  artifi-
cial  intelligence  as  part  of  our  oper-
ations,  including  responsible  content 
management.  We  are  committed  to 
responsible  use  of  artificial  intelli-
gence tools within the scope of these 
principles. We were the first company 
in  Turkey  to  disclose  such  principles. 
Furthermore,  as  part  of  our  Human 
Rights  Policy  disclosed  at  the  begin-
ning  of  2021,  we  aim  to  utilize  tech-
nologies,  and  in  particular  artificial 
intelligence,  paying  utmost  attention 
to  human  dignity  and  fundamental 
rights  and  freedoms,  in  support  of 
SDGs. You may find more information 
on the artificial intelligence principles 
on  the  “digital  responsibility”  page  of 
our website.

Our artificial intelligence team carries 
out  predictive  modelling  and  seg-
mentation  activities  to  create  target 
audiences  for  business  units.  More-
over,  they  provide  post-analysis  and 
insights  for  Turkcell  products,  servic-
es,  tariffs,  and  campaigns.  Support-
ing business units via analytical trend 
models so as to offer tariffs, products 
and  services  to  the  right  customers, 
they  contribute  to  revenue  growth  of 

our  Company,  and  play  a  key  role  in 
raising customer satisfaction..

Chatbot
We  integrated  our  artificial  intelli-
gence-based  chatbot,  developed  in-
ternally  by  Turkcell  engineers,  to  our 
Digital Operator application, while the 
integration process continues on other 
digital  products.  We  follow  a  profes-
sional  approach  to  chatbot  develop-
ment processes, thereby managing all 
steps  including  needs  analysis,  data 
preparation,  model  training,  dialogue 
design, and middle layer development 
internally.  Making  use  of  the  quality 
control  screens  and  the  quality  con-
trol  process,  which  we  developed  to 
sustain  and  continuously  improve  the 
product’s  quality,  we  aim  to  enhance 
the  chatbot  experience  of  our  cus-
tomers each day.

In 2020, the share of 
customers, whose 
requests were met over 
chatbot without the 
need to connect to a 
customer representative, 
was 93.3%. Meanwhile, 
the total number 
of customers using 
chatbot reached 40 
thousand. 

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172

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Voice analytics – Turkcell AI voice
As Turkcell engineers, we have devel-
oped  our  own  artificial  intelligence 
voice  to  enrich  customer  experience 
of  our  products,  services,  and  pro-
cesses.  In  the  training  of  our  artificial 
intelligence-based 
text-to-speech 
models,  we  used  40  hours  of  audio 
data  voiced  by  vocal  artist  Şenay 
Gürler  in  a  professional  sound  studio 
over  months  of  intense  work.  We  are 
also  actively  working  to  improve  our 
models  and  gain  new  competencies 
with new readings from Şenay Gürler. 

We have integrated our 
artificial intelligence 
voice into Turkcell’s 
digital products Dergilik 
and GollerCepte, as 
well as into the online 
trainings prepared by 
our Academy team. Our 
artificial intelligence 
voice has also been 
integrated into the 
Global Bilgi call center 
system.

TURKCELL INTEGRATED ANNUAL REPORT 2020

FOYA 
FOYA  is  an  artificial  in-
telligence  platform  that 
provides  solutions  in  the 
field  of  fraud  and  risk 
analysis. Advanced image processing 
techniques,  OCR  (Optical  Character 
Recognition)  and  face  detection  ca-
pabilities allow us to instantly identify 
the picture type, detect any informa-
tion inconsistency in the identity, and 
check  whether  the  passport  picture 
is  real,  and  whether  the  person  has 
registered  a  fraudulent  transaction 
in  the  past.  Thus,  it  prevents  trans-
actions being made using fake iden-
tities.  FOYA  won  3rd  prize  at  the  IDC 
DX AWARDS 2020 in the “Digital Trail-
blazer” category.

SIMA  –  Face  analytics 
platform
SIMA is an API-based ar-
tificial  intelligence  plat-
form  that  provides  face 
analytics  solutions.  It  contains  a  rich 
portfolio  of  features  including  face 
recognition,  registration,  verification, 
age, gender, and emotion prediction. 
Our  SIMA  platform  is  actively  used 
for personal verification processes in 
digital  onboarding  processes,  and  in 
Paycell and Digital Operator applica-
tions. Face detection and recognition 
algorithms  were  developed  by  Turk-
cell engineers working on authorized 
face  images.  The  most  appropriate 
combination  of  deep  learning  and 
machine  learning  algorithms  is  used, 
with that being the most up-to-date 
method.

AI based recommendation engine
We  make  use  of  the  recommenda-
tion  engine  infrastructure  developed 
by  Turkcell  engineers  to 
increase 
the  customer’s  personalized  user 
experience  of  our  applications  and 
communication  channels.  Current-
ly,  we  personalize  content  such  as 
suggestions,  product  similarities  and 
personalized product lists in fizy, TV+ 
and  Dergilik  applications  with  artifi-
cial  intelligence  support.  Behind  the 
recommendation  engine  is  a  very 
powerful  and  large  data  infrastruc-
ture,  comprising  a  cluster  of  servers, 
which process over 200 million items 
of data per day.

This large volume of 
data is processed by 
choosing the most 
appropriate algorithms 
specific to the subject/
problem such as 
machine learning, 
deep learning, and 
collaborative filtering, 
and regularly feeds 
relevant applications at 
integration points.

Cyber security

We  carry  out  activities  on  the  na-
tional  and  international  fronts  to 
develop measures that help identify 
threats,  and  that  reduce  and  elimi-
nate the effects of possible attacks 
and  incidents,  and  to  share  those 
measures  with  identified  bodies.  As 
part of these activities, we operate 
information  security  management 
systems under the supervision of our 
senior management that ensure the 
security  of  information  in  accord-
ance  with  business  requirements, 
laws  and  legal  regulations.  In  2008, 
we  became  the  first  telecommuni-
cation operator in Turkey to receive 
ISO  27001  Information  Security  and 
Management  System  certification. 

We  retain  our  certification  by  con-
stantly  improving  our  information 
security practices and by being au-
dited annually by independent audi-
tors.

Cyber  security  plays  an  important 
role  both  in  conducting  our  inter-
nal activities and in the provision of 
products  and  services  to  our  cus-
tomers.  The  Turkcell  Cyber  Security 
team has a competent staff of over 
130 engineers, and these specialized 
experts  work  tirelessly  for  the  sys-
tems  security  of  both  Turkcell  and 
our  customers.  Our  Cyber  Security 
Center  monitors  our  customers’  in-
frastructures  24/7,  taking  measures 
against possible threats. 

SDG 9.B

Within  the  scope  of  digital  busi-
ness  services,  in  addition  to  the 
cyber  security  services  we  offer  to 
our  corporate  customers,  we  also 
develop  products  for  our  individ-
ual  customers.  The  digital  security 
service  blocks  users  from  access-
ing  malicious  addresses  to  protect 
them  against  cyber  threats  such  as 
phishing and malware, informs them 
of  past  password  leaks,  and  warns 
them in case of new password sei-
zure  attempts  via  SMS  and  e-mail. 
All  mobile  customers  can  use  this 
service to avoid fraud, or to protect 
their device and personal data. Our 
digital  security  service  has  over  10 
thousand active customers.

Digital business services  (DBS)
Turkcell Digital Business Services was 
established  in  January  2019  to  serve 
as  the  digital  transformation  part-
ner  of  Turkcell  corporate  customers, 
leveraging  Turkcell’s  brand  power 
of  27  years,  its  extensive  sales  force 
covering  public,  strategic,  large  and 
small-scale  customers,  and  its  supe-
rior  technology  infrastructure.  Turkcell 
digital  business  services  combines 
Turkcell’s  telecom  service  provider 
strategy  with  the  “Digital  Transfor-
mation Business Partner” approach to 
corporate customers.

We are developing our 
business model through 
Turkcell digital business 
services to address the 
needs of all industries 
and to implement 
value-adding projects 
through horizontal and 
vertical solutions in 
transportation, finance, 
healthcare, education, 
logistics, production, 
retail and energy and in 
similar fields. 

We  provide  end-to-end  digital  solu-
tions to private sector companies and 
public institutions. Thus, we contribute 
to  the  value  propositions  of  Turkey’s 
growing  digital  economy  that  ena-
bles  enterprises  to  reduce  their  costs 
and grow their revenues.
In  accordance  with  our  vision,  we 
have 
implemented  approximate-
ly  1,500  tailormade  projects  to  date, 
which  we  continue  to  manage.  As 
part  of  these  efforts,  we  analyze  the 
needs of customers across every sec-
tor and opt for the appropriate solu-
tion.  With  our  expert  project  man-
agement  team,  we  deliver  several 
solutions  and  services  across  diverse 
fields including fixed access, network, 
cyber security, data center and cloud 
services,  managed  services,  digital 
transformation, IoT, big data, business 
applications  and  so  on.  We  imple-
ment  the  most  effective  solution  in 
accordance with the specific business 
processes of our customers. In imple-
menting our projects, we benefit both 
from  our  internal  resources,  products, 
processes  and  technologies,  and  the 
strength  of  our  business  partners  in 
the  ecosystem  that  we  have  identi-
fied  as  the  most  competent  in  their 
field, managing projects of high value 
proposition from end-to-end.

In order to facilitate the digital trans-
formation  journey  of  Turkey’s  organ-
izations,  we  own  a  strong  mobile 
network  operating  on  the  widest 
spectrum, 50 thousand km of end-to-
end  fiber  infrastructure  and  8  world-
class  data  centers,  including  3  new 
generation  facilities.  These  together 
enable  us  to  provide  superior  quality 
services  in  support  of  our  customers’ 
technological  transformation.    As  the 
largest  data  center  operator  in  Tur-
key,  we    pursue  activities  towards 
building new generation data centers 
that  are  the  world’s  most  advanced 
and  secure,  in  accordance  with  the 
vision  that  “Turkey’s  data  should  re-
main  in  Turkey.”  Our  new  generation 
data  centers  hold  Tier-3  Design  and 
Operation  Sustainability  certificates 
from international certification institu-

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174

tion,  the  Uptime  Institute. We  are  the 
first  data  center  operator  in  Turkey 
to have received Uptime Operational 
Sustainability  certification.  Our  new 
generation  data  centers  designed 
and  built  to  international  standards, 
are  preferred  by  global  companies, 
including  finance  and  energy  enter-
prises  and  global  service  providers. 
At  our  data  center  in  Ankara/Temelli, 
the  largest  in  Turkey,  we  transformed 
a  room  into  a  “Public  Hall”  by  physi-
cally  isolating  it  for  our  public-sector 
customers. In order to serve our pub-
lic institutions in accordance with the 
Presidency  Information  and  Commu-
nication  Security  Measures  Circular 
into  force  regarding  the  security  of 
public  data  and  its  transfer  to  digi-
tal environments, and the guide pub-
lished  accordingly,  we  launched  our 
Government Cloud service in 2020.

Via  Turkcell  Cloud  services,  we  po-
sition  all  information  technology  in-
frastructure  of  institutions  at  Turkcell 
Data  Centers,  thus  providing  more 
flexible  infrastructures  while  reducing 
costs.  We  offer  uninterrupted  service 
experience  from  fully  backed-up  in-
frastructures  at  six  separate  data 
centers  located  in  Istanbul,  Ankara, 
Izmir  and  Kocaeli.  We  continue  to 
develop  our  services  as  the  first  and 
only service provider in Turkey, whose 
cloud  information  security  holds  ISO 
27017 Cloud Information Security Cer-
tification.

We  provide  consultancy  services  to 
corporations  at  all  levels  in  the  field 
of cyber security, another component 
in  the  field  of  digital  transformation. 
Our  Security  Operations  Center  is  a 
member  of  international  organiza-
tions  such  as  FIRST  and  OIC-CERT 
having met their membership require-
ments. Thus, it has access to the best 
resources  for  reactive/proactive  pro-
tection  and  countermeasures.  Pene-
tration  test  and  vulnerability  analysis 
services also feature in the cyber se-
curity services portfolio of our center 
that carries out security scans of key 
institutions.  The  “Turkcell  Bozok  Cy-
ber  Threat  Intelligence  Platform”  de-
veloped  by  Turkcell  engineers  using 
100% domestic technology, offers the 

advantage  of  protecting  customers, 
which  receive  Turkcell  Security  Op-
eration  Center  service  against  cyber 
threats. This platform can also be pro-
vided as a separate service to organ-
izations that request it. 

With the Turkcell IoT Platform, we al-
low  companies  to  remotely  manage 
their  devices  and  machines  via  the 
cloud  without  incurring  infrastructure 
investment  costs.  Our  business  part-
ners  operating  in  the  IoT  ecosystem 
can develop their solutions on the IoT 
Platform and reach Turkcell corporate 
customers 
through  collaborations. 
With  the  energy  efficiency  scenario, 
one  of  the  IoT  scenarios,  companies 
can  instantly  measure  their  energy 
consumption  and  transfer  the  data 
into  actionable  information  for  deci-
sion-making,  while  at  the  same  time 
making  significant  energy  savings.  In 
addition  to  the  IoT  Platform,  we  of-
fer  institutions  solutions  with  the  IoT-
based products we have developed in 
many areas such as Akıllı Atık (Smart 
Waste), Kopilot, Turkcell Filiz and Turk-
cell Enerjim. 

We  support  our  customers’  strate-
gic  decision-making  processes  and 
increase  their  profitability  and  effi-
ciency  through  meaningful  analyses 
based on the dynamic and real data 
garnered  from  our  big  data  services. 
Thanks to these services, we continue 
to  create  value  for  our  customers  in 
many sectors such as retail, shopping 
malls, transportation, finance, tourism, 
fuel oil and finance.

In  an  organization’s  journey  towards 
digital 
transformation,  with  Turk-
cell  digital  business  applications  we 
provide  all  end-to-end  needs  from 
team  and  document  management 
to  digitalization  of  financial  process-
es,  including  employee  training  man-
agement.  We  continue  to  expand 
our  product  portfolio  to  meet  indus-
try-specific  needs,  while  also  pro-
viding  our  customers  with  business 
application services that can be used 
jointly, with easy installation and use.

In addition to our value-added servic-
es,  we  realize  digital  transformation 

We support our 
customers’ strategic 
decision-making 
processes and increase 
their profitability and 
efficiency through 
meaningful analyses 
based on the dynamic 
and real data garnered 
from our big data 
services. Thanks to 
these services, we 
continue to create 
value for our customers 
in many sectors such as 
retail, shopping malls, 
transportation, finance, 
tourism, fuel oil and 
finance.

In 2020, digital business 
services put into 
service the technology 
infrastructure of 
Başakşehir City 
Hospital, one of the 
largest hospitals 
in Europe with a 
2,682-bed capacity. 
In addition, digital 
business services 
provided and installed 
the IT infrastructure 
required during the 
pandemic period for 
the Sancaktepe and 
Yeşilköy multipurpose 
emergency hospitals, 
which both have a 
1,008 bed capacity, 
and for Tekirdağ City 
Hospital, which has a 
475-bed capacity. As 
Turkcell, the services 
we provide support 
employment at 9 
hospitals.

projects  with  vertical  solutions  that 
appeal  to  the  needs  of  each  sector. 
With  our  consultants  of  specific  sec-
tor expertise, we analyze our custom-
ers in the ten focus sectors of finance, 
health,  education,  logistics,  produc-
tion, retail, energy, tourism, SMEs and 
central and local administrations. We 
adopt a 360-degree perspective and 
reveal  the  current  situation  with  sec-
tor-based  customer  scores.  Thus,  in-
stead  of  offering  a  general  solution, 
we  move  towards  deeper  custom-
er-centricity by positioning a solution 
set  that  considers  their  specific  sec-
toral needs.

We  continue  to  conduct  projects  of 
high  value  proposition  in  the  health 
sector,  where  we  have  deep  expe-
rience.  Turkcell  digital  business  ser-
vices  is  the  market  leader  by  num-
ber  of  hospitals  and  beds  covered  in 
the  public-private  sector  partnership 
market  through  the  city  hospitals 
projects,  which  have  become  the  lo-
comotive  of  success  for  our  national 
healthcare  sector.  Turkey  is  among 
the world’s leading healthcare service 
providers, especially in the region. We 
continue to provide end-to-end digi-
tal solutions in the health sector with 
our  current  7  city  and  2  field  hospi-
tals.    We  continue  to  play  an  impor-
tant  role  in  the  digital  transformation 
of  hospitals,  especially  with  our  own 
Information  Management 
Hospital 
System  (HIMS)  software,  which  we 
have developed exclusively with Turk-
cell Digital Business Services resourc-
es.  In  2020,  Digital  Business  Services 
put into service the technology infra-
structure  of  Başakşehir  City  Hospital, 
one of the largest hospitals in Europe 
with  a  2,682-bed  capacity.  In  addi-
tion, Digital Business Services provid-
ed  and  installed  the  IT  infrastructure 
required  during  the  pandemic  period 
for the Sancaktepe and Yeşilköy mul-
tipurpose emergency hospitals, which 
both  have  a  1,008  bed  capacity,  and 
for  Tekirdağ  City  Hospital,  which  has 
a  475-bed  capacity.  As  Turkcell,  the 
services we provide support employ-
ment at 9 hospitals. 

There are three main categories in our 
business  partnership  ecosystem  that 

we manage end-to-end; our subcon-
tractors, those we develop products/
solutions together with, and our sales 
partners.  We  focus  on  creating  new 
sales  opportunities  for  our  products, 
services,  and  system  integration  pro-
jects  through  our  sales  partners.  In 
2020, we launched the “Business Part-
nership  Program”  for  approximate-
ly  150  sales  partners  in  our  ecosys-
tem  having  different  competencies. 
We  continue  to  grow  our  ecosystem 
working  with  a  win-win  approach. 
Moreover,  through  our  business  part-
nerships  with  global  vendors,  we 
expand  our  solution  portfolio  to  our 
customers in terms of technical com-
petency and project diversity.

While  offering  our  products  and  ser-
vices,  we  make  big  data  meaningful 
with  artificial  intelligence  and  busi-
ness  intelligence  systems,  thanks  to 
our  advanced  analytical  capabilities 
and technology investments. 

As  Turkcell,  we  conduct  analytical 
studies  based  on  data  science  fun-
damentals,  plus  studies  in  the  fields 
of  artificial  intelligence  and  machine 
learning.  We  closely  follow  artificial 
intelligence 
that  are 
technologies 
used  effectively  across  many  areas 
such  as  healthcare,  transportation, 
finance,  communication,  and  urban 
and  environmental  planning.  Utilizing 
the  latest  technologies,  we  develop 
solutions  focusing  primarily  on  peo-
ple,  society,  and  the  environment, 
thereby  enhancing  the  customer  and 
employee  experience,  and  creating 
value for our country. 

The  Turkcell  ML  (Machine  Learning) 
platform  has  been  developed  to  im-
plement appropriate scenario model-
ling with high performance and accu-
racy  by  leveraging  high-volume  data 
learning  competen-
and  machine 
cies.  As  part  of  these  activities,  over 
TRY20 million has been saved to date. 
Moreover, having launched the block-
chain-based  “Blacklist  Between  Op-
erators”  system,  we  can  share  a  list 
of customers with overdue payments 
of over a certain amount. This system, 
which is used jointly by all operators, 
helps  them  reduce  customer-related 
risks through information exchange.

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Intellectual capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
176

Intellectual capital

The initiative, formed by 
a consortium of 5 major 
companies including 
Turkcell, carries out its 
activities continuously 
towards the launch of 
Turkey’s own domestic 
and electric automobile 
brand. 

Domestic  electric  automobile  TOGG 
will  stand  out  for  its  feature  of  inter-
net connection. As part of connectivity 
solutions,  in  addition  to  features  such 
as  viewing  meetings  and  activating 
navigation based on your meeting lo-
cation,  it  is  also  possible  to  continue 
listening to a song in the car that was 
being  enjoyed  at  home  using  fizy,  a 
part of Turkcell’s digital services port-
folio.  The  vehicle  is  also  scheduled  to 
have  features  such  as  weather  fore-
cast, navigation and the synchronizing 
of home and car temperature.

You may access more 
information about the 
transaction volumes and 
number of users of Paycell in the 
financial capital section.

Turkcell and mobility
In  the  field  of  mobility,  a  rising  trend 
in the telecom and technology sector 
in  general,  we  continue  our  activities 
regarding autonomous vehicles at and 
above  level  3,  leveraging  our  image 
and video processing capabilities. 

As  part  of  e-mobility  activities,  lever-
aging  our  telecom  industry  capabili-
ties we installed 3 charging stations of 
different  brands  that  have  similarities 
in terms of charging station manage-
ment  for  testing  purposes.  These  sta-
tions  were  integrated  with  software 
solutions in MSP (Mobility Service Pro-
vider),  CPO  (Charge  Point  Operator) 
and Roaming layers offered by various 
companies in the field of e-mobility. In 
this respect, station management and 
end-user experiences were observed.

As part of the 5G Remote Driving pro-
ject,  using  artificial  intelligence  algo-
rithms,  we  are  carrying  out  activities 
to  identify  whether  an  autonomous 
vehicle is in danger and keep it away 
from  such  situations  via  remote-con-
trol  center  over  the  Turkcell  5G  net-
work.

Turkey’s  domestic  automobile  TOGG, 
developed  by  Turkey’s  Automobile 
Joint  Venture  Group  Inc,  was  an-
nounced  in  December  2019,  where-
upon  its  design  and  roadmap  were 
revealed. 

Proov  is  a  digital  identity  man-
agement  application  devel-
oped  with  blockchain  technol-
ogy that enables users to prove 
their  identity  while  registering 
to institutions and organizations 
utilizing  data  previously  stored 
in  various  other 
institutions/
organizations.  It  is  based  on  a 
model  that  enables  personal 
data privacy to be managed by 
blockchain technology. Through 
use  of  cryptographic  methods, 
the activities of digital identities 
cannot be tracked, but are pro-
tected.

RPA 
(Robotic  Process  Automation) 
technology  is  installed,  and  the  re-
spective  infrastructure  activities  are 
implemented across Turkcell. Duly, 145 
processes  have  begun  to  be  carried 
out  using  RPA,  towards    manual  pro-
cess automation. 

Turkey’s new generation payment 
platform: Paycell
Paycell  continues  to  increase  its  pe-
netration  on  the  back  of  easy  and 
secure  payment  solutions.  Paycell 
stands  out  as  a  technology-oriented 
techfin that manages all its processes 
with end-to-end automatized systems 
over  a  robust  technological  infrastru-
cture.  Having  adopted  an  agile  wor-
king model to differentiate itself within 
the rapidly changing dynamics of the 
techfin  ecosystem,  Paycell  manages 
it  business  processes  more  efficiently, 
achieving  value  creation  in  the  offe-
ring  of  its  products  and  services.  This 
approach  also  allows  rapid  and  easy 
adoption of new technologies. Paycell 
provides  value-added  data  analytic 
models  not  only  with  respect  to  its 
infrastructure,  but  also  with  respect 
to  analytical  solutions  so  as  to  pro-
vide  better  and  sustainable  services 
to  consumer  segement  and  business 
partners alike.

increase 

Brand and responsibility
the  capacity  and 
We 
strength  of  our  superior  digital  ser-
vices  by  constantly  researching  the 
latest  hardware  and  software  trends 
and  equivalents  at  the  global  level. 
This  allows  us  to  advance  the  Turk-
cell  brand  through  new  features  that 
facilitate our customers’ lives. In every 
field  we  work  in,  we  strive  towards 
removing digital barriers and increas-
ing  access  at  every  point  where  we 
touch  society,  and  we  continue  to 
support the development of technol-
ogy and communication. We are glad 
to note that our products and servic-
es  across  diverse  fields  have  grown 
the Turkcell brand without losing their 
technology focus.

We bear the 
responsibility of 
providing a good 
customer experience, 
not only via our 
employees in direct 
contact with our 
customers, but also 
via the entire Turkcell 
Family, who design, 
develop, and plan our 
products and services 
for our customers.

The  basis  of  this  understanding  that 
Turkcell  acts  on  is  a  responsibility 
towards  all  of  our  stakeholders  in-
cluding  customers,  employees,  sup-
pliers,  shareholders,  public,  dealers, 
non-governmental  organizations,  uni-
versities, and the media. In our policies 
implemented  in  this  context,  we  aim 
to transform the power of technology 
into  benefits  for  everyone,  inclusively 
and  sustainably,  and  we  work  to  en-
sure  ethical  and  equitable  business 
processes  across  the  entire  Turkcell 
ecosystem. In this context, our policies 
that we share publicly are as follows:

Human Rights Policy: 
We  are  committed  to  fulfilling  our 
duties  by  embracing  fundamental 
rights and freedoms, and to ensuring 
compliance  with  national  legislation 
on  working  life  and  the  international 
capital  markets  regulations  that  we 
are bound by.

Anti-Bribery and Corruption Policy: 
We view the carrying out of our ac-
tivities fairly, honestly and in accord-
ance with legal and ethical codes a 
necessity.

Quality Policy:
We  continuously  improve  our  pro-
cesses  and  implement  an  effective 
quality management system.

Customer Satisfaction Policy: 
We  solve  customer  requests  with  an 
open, transparent, swift, and custom-
er-oriented approach.

Information Security Policy:
At  Turkcell,  we  ensure  the  security  of 
information in accordance with busi-
ness  needs,  laws,  and  legal  regula-
tions.

SDG 16.5, 16.6, 16.B

You may access the policies that 
we implement to set the highest 
standards as Turkey’s leader in 
the telecommunication sector on 
turkcell.com.tr.

The interaction 
of our intellectual 
capital with other 
capitals

Our intellectual 
capital plays a key 
role in providing the 
required creative 
strength for all 
other capitals, and 
is in turn supported 
by the outputs of 
other capitals. We 
aim to improve our 
product and service 
quality, and thereby 
increase stakeholder 
satisfaction by 
focusing our R&D 
and innovative 
activities to respond 
to their needs 
and expectations. 
Meanwhile, on the 
back of our brand 
approach and sense 
of responsibility, 
we support 
strong corporate 
management, and 
our social values, and 
relationships.

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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Our social 
Our social 
values 
and relations
and relations
and relations

182

Turkcell social values and relations management

185

Our brand

186  

Strong sales channels and our services

189

Our tariffs and packages

194

Social investment projects

204

Contribution to exchanging knowledge and experience across all stakeholders

205  

Our public affairs

207

Value oriented, responsible supply chain management

180

Our social values and relations

Our social values and relations

Inputs

Outputs

Value created

million mobile and

33.4
2.4

million ﬁxed 
customers

15

points difference 
with the second 
closest competitor 
on customer net 
promoter score

18 

 minutes average 
response time over 
all platforms and 
accounts

100 
thousand

students reached 
through Turkcell 
Whiz Kids Project

7.5 million

participants attended 
the Developers of 
the Future Platform 
trainings

10 
thousand

visitors to Turkcell 
Dialogue Museum

30

startups working 
with the Business 
Cooperation 
Model

36.1%

of procurements 
from local suppliers 
which comprise 
90% of our 
suppliers

Outputs

Our strong relations with our 
employees, their families, customers 
and suppliers, and our common values
• Strong Sales Channels
• Turkcell Common Values and Code of  
  Business Ethics
• Supplier Portal

Civil society, academy, public and 
corporate partnerships, international 
representation of our country and 
sector 
• National and international 
  NGO memberships
• Social investment projects
• Turkcell Foundation
• Turkcell Volunteers

Social investment projects and 
sponsorships
• Education without Boundaries
• Whiz Kids
• Women Developers of the Future
• Zorlu Performance Arts Center
• Video Call Center
• National Football A Team Sponsorship 
• Sponsorships for Athletics - Swimming   
  Projects and Turkish Sports Federation    
  for the Physically Disabled
• Supporting arts & culture and sports    
  projects

Transparent and trust oriented 
stakeholder relations
• Transparent communication with the  
  public, sectoral development focused  
  relations management
• Ambassadors Summit
• Transparent and active investor  
  relations management

Strong corporate governance

Value creation through social 
investment projects
• Impact analyses of projects and
  their results
• Support for closing the digital gap
  in society / digitalization rate

Contribution to exchanging 
information and experience among 
stakeholders

Net Promoter Score

Adapting responsible and ethical 
business mentality to the Turkcell 
ecosystem

Contribution to the socio-economic-
cultural development of society by 
supporting NGOs

Net new customer additions

Being the leader and guiding 
company in the sector and country by 
representations

• Development of the  
  telecommunication sector

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TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
       
    
182

With the power 
we derive from the 
core competencies 
within Turkcell’s DNA, 
we create social 
value through more 
efficient, ethical, and 
transparent stakeholder 
relationships. These 
serve the common 
good of society by 
transforming our social 
and relational inputs 
into meaningful outputs, 
highlighting the healing 
power of technology.

Turkcell  social  values  and  relations 
management
We  bring  our  value-creating  Turkcell 
identity in our social values and stake-
holder relationships together with the 
vision  of  providing  superior  digital 
services for a better future. We ensure 
respect  for  our  stakeholders’  rights 
through Turkcell Common Values and 
Business  Ethics  Rules  (TODİEK)  and 
our  Anti-Bribery  and  Corruption  Pol-
icy, which guides our business model.

Turkcell common values
• We value people
• We own our social values
• We are rich in our differences
• We are here for our customers first 
• We are an agile team
• We believe in open communication
• We make a difference

Turkcell business ethics rules
• We respect fundamental freedoms
• We act within certain rules 

concerning invitations and travel
• We pay attention when giving and 

receiving gifts

• We realize our social responsibility 

projects in good faith

As  with  technology,  so  too  in  the 
spreading  of  environmental  aware-
ness, do we act from the responsible 
position  of  leadership.  We  comply 
with the laws and regulations enact-
ed  on  the  environment,  health,  and 
safety. We ensure the effective man-
agement  of  all  our  service  activities, 
the security of our information assets 
against risks, and their accuracy and 
continuous  availability,  by  operating 
the 
information  security  manage-
ment  system  based  upon  our  infor-
mation security policies and with the 
approval of our Senior Management. 
Accuracy is the basis of financial and 
commercial 
record  management, 
and we comply with the national and 
international  legal  regulations  that 
we are bound by to the highest pos-
sible degree. 

We comply with both 
the US Anti-Bribery 
and Foreign Corrupt 
Practices Act (FCPA) 
and local laws in our 
interactions with public 
institutions.

COVID-19 note
While  maintaining  our  position 
as the communication and tech-
nology  leader,  we  managed  our 
social  values  and  relationships, 
which we view as being among 
the  main  considerations  during 
the pandemic worldwide. In light 
of  our  Life’s  at  Home  motto,  we 
have  demonstrated  to  our  cus-
tomers  and  employees  that  we 
offer  technologies  that  uninter-
ruptedly continue education and 
work from home, while support-
ing  our  ecosystem.  We  worked 
towards the goal of having hap-
pier  and  more  loyal  customers 
with  our  interactive  events  and 
sponsorship activities. During the 
early  days  of  the  pandemic,  our 
CEO  Murat  Erkan  joined  over  5 
thousand  Turkcell  employees  in 
live  broadcasts  on  Pikcell.  We 
conducted  the  COVID-19  Virtual 
Work  Assessment  Survey  to  un-
derstand  our  employees’  needs 
at  the  start  of  the  pandemic. 
In  light  of  employee  feedback 
gathered  by  these  surveys,  we 
swiftly  developed  our  processes 
and  principles.  We  conducted 
comparative surveys to measure 
the  productivity  and  experienc-
es  of  our  employees  in  this  pro-
cess  and  implemented  different 
working  models  (such  as  work-
ing  from  home,  mobile  working) 
and  we  conducted  focus  group 
studies  on  further  improvement 
areas.  We  enabled  employee 
feedback  concerning  both  their 
physical  and  mental  health,  and 
took  action  accordingly  during 
the  pandemic  and  period  of  re-
mote  working  through  the  “How 
are  you  Turkcell?”  project.  We 
called  all  our  employees  and 
business  partners  who  were 
physically  or  mentally  unwell, 
lending our support and inquiring 
into  their  condition.  We  organ-
ized social events such as fitness 
programs,  sports  team  activi-
ties,  online  workshops,  e-games 

tournaments,  Lucky  One  Knows 
competitions  and  Coffee  Break, 
in which all our employees could 
participate  online.  In  addition  to 
these, we continued to strength-
en  the  Turkcell  team  spirit  and 
employee motivation with activ-
ities  on  special  occasions  such 
as  April  23  National  Sovereignty 
and  Children’s  Day,  mother’s/fa-
ther’s  day,  software  developer’s 
day,  engineer’s  day,  and  via  ap-
plications such as Instant Awards 
and  CXO  Awards.  Moreover,  we 
made  the  working  from  home 
period  more  comfortable  and 
easier  for  our  employees  by  or-
ganizing  special  campaigns  us-
ing  Turkcell’s  internet  and  digital 
application services.

Meanwhile,  we  stood  by  our 
customers  during  the  pandem-
ic  period.  We  implemented  a 
support  plan  that  includes  our 
telecommunication 
benefits, 
fixed  internet,  mobile  internet, 
and  bulk  SMS,  for  those  SMEs 
that  have  experienced  difficulty 
due  to  business  closure.  With-
in  the  scope  of  Water  of  Life 
aid,  we  offered  free  fixed  inter-
net  for  the  first  three  months  to 
small businesses returning to the 
workplace  after  the  COVID-19 
lockdowns,  we  provided  com-
plimentary  mobile  data  for  their 
communication  needs,  and  to 
support them during the normal-
ization  process.  We  doubled  the 
packages  of  SMEs  keen  to  pro-
mote  their  campaigns  via  mes-
sage by gifting up to the quantity 
of SMSs received from the Mes-
sage Base service, and gave SMS 
gifts to businesses subscribed to 
the service. We reached 47.7 mil-
lion people through the commu-
nication  of  Water  of  Life  aid  for 
tradesmen.Our  digital  advertise-
ment video has been viewed 1.4 
million  times  and  our  campaign 
page  registered  209  thousand 
clicks.  While  150  thousand  cus-

tomers  won  GB  gifts,  Bulk  Mes-
sage  package  sales  increased 
by 50%. We carried out projects 
focused  on  managing  the  im-
pacts of the crisis with our pub-
lic  sector  business  partners,  the 
Ministry  of  National  Education, 
and  the  Ministry  of  Health,  as 
well  as  with  those  from  the  civil 
society. We doubled the monthly 
internet quota to 6 GB for ‘teach-
ers  and  students’  using  the  EBA 
infrastructure.  To  support  health-
care  professionals  working  with 
great  devotion  for  our  health, 
we  gifted  additional  data  and 
voice packages. Furthermore, we 
have supported the stay at home 
movement, a key one of the most 
necessary means of beating the 
virus,  by  changing  the  network 
text  on  our  customers’  phones 
to  “lifesathome”.  In  this  process, 
we constantly informed our cus-
tomers through our social media 
accounts,  sharing 
information 
on  the  current  situation  for  their 
greater convenience. Meanwhile, 
with  the  #lifesathome  concerts, 
we united Turkey’s beloved artists 
with their fans. For moral support, 
we  put  11  performances  with  8 
million  interactions  into  service, 
which  can  be  viewed  again  on 
TV+  and  fizy.  As  of  September, 
we  started  to  transform  income 
generated  by  the  recycling  of 
electronic  waste  collected  from 
the  public  at  Turkcell  stores  into 
educational  scholarships  for  the 
children of our health heroes who 
lost their lives to the pandemic, as 
part of our Recycle for Education 
project.  We  believe  that  what 
the  pandemic  has  reminded  us 
of  the  most  is  the  need  to  work 
together  for  a  “better  world”. 
With this in mind, we started the 
“A Better World” internal initiative. 
Through  all  these  practices,  we 
aim to enhance sustainability, the 
focus  of  our  business  model,  in 
the eyes of our employees, and in 
social values and relations.

TURKCELL INTEGRATED ANNUAL REPORT 2020

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Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
making  process  with  common  pur-
pose  to  meet  the  needs  of  all  our 
functions  during  the  pandemic  with-
in  the  scope  of  “Alternative  Working 
Models  in  the  New Working  Culture”, 
which we plan to implement in 2021.

We secure the working rights of 
the productive Turkcell family with 
our policies that operate within the 
framework of decent work practices. 

As part of Turkcell 
Human Rights Policy, 
Human Resources Policy 
and equal opportunity 
applications, we 
continue to connect 
millions of people to 
life daily with the best 
services and products, 
with the support of 
our productive Turkcell 
family and as members 
of the best teams at 
Turkey’s digital operator.                 

Our brand
We lead our country’s 
technological 
development with our 
vigorous brand, strong 
infrastructure, superior 
analytical capabilities, 
and qualified human 
resources. 

individuals 

and 
We 
empower 
organizations,  making 
life  easier, 
fun,  and  secure  for  them  with  our 
customer-oriented approach, superior 
analytical capabilities, and innovative 
digital  products  and  services.  We 
continue to differentiate the customer 
experience with offers tailored to the 
needs  of  each  segment.  Thanks  to 
our strong infrastructure, we continue 
to  meet  the  communication  needs 
of  our  country  at  high  speed  and 
without  interruption.  Our  corporate 
is  always  supportive  of 
business 
the 
leading  companies  of  Turkey 
and  SMEs  alike.  We  increase  our 
contribution  to  the  Turkish  economy 
by  being  their  business  partner.  The 
social responsibility projects we have 
implemented  help  us  attain  the  goal 
of  becoming  a  stronger  society  by 
promoting  equality  in  all  areas,  and 
the unity of our country.

184

Our social values and relations

Our corporate social values
and relations
With  great  devotion  we  have  ma-
naged  all  our  social  relations  as  a 
technology  company  offering  inclu-
sive,  accessible,  and  superior  digital 
services,  and  in  line  with  the  goal  of 
being Turkey’s Turkcell, set among our 
communication  focuses  at  the  start 
of  2020.  Under  our  Senior  Manage-
ment leadership, we have developed 
our  competencies  in  relations  ma-
nagement,  an  area  of  strength  for 
us,  together  with  our  employees  at 
all  levels.  We  manage  our  relations 
through  TODİEK,  our  guide  for  social 
values. With the support of our Seni-
or  Management,  we  strive  to  create 
a  business  culture  across  all  activi-
ties  that  complies  with  the  law  and 
Turkcell’s  own  policies,  by  acting  in 
accordance with the set of rules de-
termined  by  TODİEK.  In  this  context, 
Turkcell  Senior  Management  acts  in 
a  conscientious  and  reliable  manner 
by  ethically  evaluating  the  conflicts 
of interest that arise, or that may ari-
se  from  personal  relationships  and 
financial  or  commercial  interests  as 
part  of  their  responsibilities  towards 
Turkcell. 

Our Management Team 
makes complete, fair, 
accurate, timely and 
clear statements in all 
company reports and 
documents disclosed to 
the public, or submitted 
to the capital markets 
regulators, and acts 
in compliance with all 
laws, regulations, and 
rules that Turkcell is 
bound by.

You may find more detailed 
information about our corporate 
structure in the strong corporate 
governance section of our report.

TURKCELL INTEGRATED ANNUAL REPORT 2020

Employee relations
We  determine  improvement  actions 
by  listening  to  the  expectations,  re-
quests,  and  complaints  of  our  em-
ployees  through  periodically  con-
ducted  Employee  Engagement  Sur-
vey and Pulse questionnaires.

We  undertake  the  use  of  various 
communication  channels  to  better 
understand  the  needs  of  our  em-
ployees.  In  this  context,  we  organ-
ize  workshops  and  regular  informa-
tion  sessions  with  the  communities 
formed  by  our  colleagues  across  di-
verse functions and tasks. Believing in 
the power of instant communication, 
we manage our intra-company com-
munication processes interactively on 
the  BiP  groups  we  have  created  for 
our  employees,  and  work  towards  a 
timely response to their needs. 

We launched the HR Volunteers plat-
form in 2020 with the voluntary par-
ticipation  of  101  employees  from  all 
functions  within  Turkcell.  Regardless 
of their roles within the organization, 
we aim for our employees, who have 
the  power  to  influence  and  drive 
change,  to  become  change  ambas-
sadors.  These,  as  our  HR  Volunteers, 
will add value to the development of 
human  resources  processes,  practic-
es  and  products,  acting  as  catalysts 
within  the  organization  by  enriching 
the  employee  experience.  With  our 
YUPO  initiative,  we  run  support  pro-
grams  for  our  employees  identified 
as being of high potential. We aim to 
support our employees’ career devel-
opment  through  our  committee  and 
Performance Coaches, established to 
support the performance period pro-
cess and monitor performance eval-
uation stages from a function-based 
perspective.  Through  the  DOX  (Digi-
tal  Office  Experience)  Digital  Office 
Committee  and  the  DOX  Subcom-
mittee,  we  will  operate  our  decision 

Turkcell in communication  
Despite the challenging conditions of 
2020, it has been a year in which we 
both  consolidated  Turkcell’s  leader-
ship  in  network  capacity  and  made 
a difference with our compassionate 
and  attentive  communication  ap-
proach, by prioritizing customer need 
during the challenging pandemic pe-
riod. 

As  a  Company  that  reflects  social 
consciousness to its communications, 
we began 2020 with the movie “Kad-
er”  highlighting  the  importance  of 
equal opportunity. 

While  fulfilling  its  corporate  social 
responsibility  mission  of  raising  mo-
rale  under  pandemic  conditions,  our 
commercial, “Be Patient” became one 
of the most successful of the period. 
With it, we aimed to make everyone 
who  had  to  stay  home  feel  that  we 
were  right  there  with  them  under  all 
conditions,  and  that  these  difficult 
days  would  eventually  pass.  We  did 
this as a brand with the long-estab-
lished  mission  of  connecting  people 
to  life  under  the  motto  of  “Connect 
to Life”. 

We  conducted  our  “So  Attractive” 
communications throughout the year 
to  underline  the  urgency  of  connec-
tion quality and to highlight our supe-
riority in this regard, with emotionally 
themed  advertisements  at  the  fore-

front. As Turkcell, we continue to work 
towards goals such as internet speed 
through  the  strength  of  our  high 
network  capacity,  while  being  the 
best  operator.  We  reached  58  mil-
lion  people  with  98%  integrated  ac-
cess  through  our  commercial  film,  in 
which we showcased national gems 
ranging from Ordu to İzmir, and from 
Ağrı to Urfa, as well as our coverage 
quality. Our So Attractive (Çok Çekici) 
campaign has been among the most 
appreciated  commercials  with  a  41 
AHI  score,  becoming  the  most  pop-
ular  and  recalled  commercial  in  July 
and  August  according  to  Adwatch 
results.

We  also  launched  İşTurkcell  to  posi-
tion  our  corporate  marketing  busi-
ness as part of segment communica-
tion for addressing the technological 
needs  of  our  corporate  customers 
under  “Business  at  Technology,  Tech-
nology at Turkcell” motto. Through the 
new  communication  platform  under 
the İşTurkcell brand, which offers our 
products  to  customers  ranging  from 
tradesmen  to  SMEs  and  corporates, 
we  conveyed  the  message  that  our 
customers  need  only  consult  Turkcell 
for  technological  products  and  solu-
tions without turning elsewhere.

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186

Strong sales channels  
and our services

Our sales channel structure
We  bring  our  customers  all  the  ad-
vantages,  tariffs,  devices,  products, 
and  services  that  Turkey’s 
leader 
communication and technology com-
pany  offers.  We  continue  to  develop 
solutions and provide customer-focu-
sed  services  through  Turkcell  stores, 
alternative  sales  channels,  the  online 
channel,  the  Digital  Operator  appli-
cation, Fiber and DSL solution centers 
and corporate sales channels.

Our retail channel
At  our  retail  channel,  we  continue  to 
provide  Turkcell  quality  services  at 
around  1,300  Turkcell  stores,  whose 
digital  transformation  was  comple-
ted in 2018, and at 4,408 digital sales 
points.

As a company that 
pioneered the digital 
transformation of 
Turkey, we now have a 
new generation store 
concept where physical 
contact points are 
minimized.

Digitalized experience  
with contactless store
During  the  COVID-19  period,  we 
implemented 
“Contactless 
the 
Shopping”  concept  as  of  Octo-
ber  to  protect  the  health  of  our 
customers  and  employees,  and 
to  minimize  physical  contact. 
Now, our customers will be able 
to check the offers, device spec-
ifications  and  award  winning 
games at our stores by scanning 
the  QR  codes  using  their  own 
smartphones.

We offer our devices, tariffs and digi-
tal service products in a clear, conven-
ient, and visually enriched manner with 
“GO”  that  digitalizes  sales  conversa-
tions between employees and custom-
ers  as  links  in  the  digitalization  chain. 
In addition to the benefits we provide 
to our customers; we increase employ-
ee  engagement  and  motivation  with 
special  awards.  In  2020,  we  enriched 
the TRY/package top up and bill pay-
ment  experience  by  implementing  the 
“GO Cash” application at the payment 
point, where customer traffic is heavy. 
We added value to our service model 
with the ability to offer our customers 
instant  personalized  offers,  increas-
ing  our  sales  force,  and  continuing  to 
raise  customer  satisfaction  through 
improved experience with “GO Cash”. 

In our supply chain model, we acceler-
ated the product order processes of our 
dealers with Turkcell Portal. We trans-
formed  from  a  B2B  portal  operating 
with  limited  products  and  categories 
into  a  “Digital  B2B  Procurement  Plat-
form” that can supply a wide range of 
products and categories from multiple 
channels with a multi-vendor structure. 
We  continue  to  provide  customized 
guidance  to  our  dealers  according  to 
their orders and sales. We accelerated 
our processes and enhanced the expe-
rience by establishing a “Content Man-
agement  Team”.  Currently,  we  offer 
24  thousand  products  of  260  brands 
through  110  suppliers  via  Turkcell  Por-
tal.  To  make  the  customer  purchasing 

We launched a new era in device 
sales. We began to provide con-
tracted  offers  and  made  Finan-
cell  credits  available  to  our  pre-
paid customers who were previ-
ously  only  able  to  purchase  de-
vices  in  cash.  Thus,  we  offer  our 
prepaid  customers  the  opportu-
nity to purchase a device with a 
contract,  or  an  upfront  contract 
without switching to postpaid.

experience contactless, easy, and fast, 
we  implemented  the  “Reflect  to  my 
Bill” application. Today we ensure that 
the  amount  of  the  purchased  product 
is  reflected  to  the  customer’s  bill  via 
Paycell.  Thanks  to  “Pay  by  Bill”,  which 
can be used not only for one product, 
but for the payment of the entire bas-
ket,  our  customers  can  now  purchase 
products using only their smartphones 
without signing any documents.

We  also  began  to  provide  servic-
es  for  new  customer  registration  and 
customer  number  porting  activation 
transactions,  by  extending  the  scope 
of the “Bi tıkla Mağazada (At the Store 
with  a  Click)”  application  launched  in 
2019  and  used  in  the  delivery  process 
for  devices  purchased  through  tele 
sales  channels  in  the  physical  chan-
nel.  Our  customers  can  conveniently 
pick up the products that they reserve 
on turkcell.com.tr or through tele sales 
channels at Turkcell stores in their pre-
ferred locations. For a unique and unin-
terrupted  Turkcell  experience,  we  give 
our  customers  the  option  to  choose 
the channel.

Digital Signature
As  of  May  2018,  we  completed 
the  digital  signature  transforma-
tion  of  all  our  stores  (TİM/DSN/
DSN+)  for  individual  mobile  tran-
sactions.  As  of  September  2020, 
we  completed  the  digital  signa-
ture  transformation  of  all  our  in-
dividual  fixed  customers  at  Fiber 
Solution  Centers  and  DSL  Soluti-
on  Center  Business  partnerships. 
Accordingly,  the  digital  signatu-
re  usage  rate  of  our  individual 
fixed  customers  soared  by  98%. 
As  a  result,  while  reducing  our 
costs  on  such  items  as  archives, 
documents,  and  cargo,  we  also 
enabled more secure, faster, and 
easier transactions for our custo-
mers.

Our alternative sales channel
As part of our alternative sales chan-
nel  that  has  reached  a  sales  volume 
of  26.8  million  products,  we  trans-
formed  each  channel  reaching  the 
customer  into  a  sales  channel,  while 
continuing  to  serve  through  Hyper-
markets,  Bank  Channels,  Chains  and 
Telesales.  Our  Telesales  channel  has 
also  become  the  major  sales  chan-
nel  for  our  digital  services  with  2.5 
million  sales  of  TV+,  lifebox  and  fizy 
products,  making  use  of  big  data, 
our  analytical  models  and  artificial 
intelligence.  With  TV+,  lifebox,  and 
fizy  collaborations  with  banks,  we 
ensured the brand recognition of our 
DSS products and increased our sales 
by  directing  customers  to  our  digital 
channels.  In  Bank  and  Market  chan-
nels, we achieved a sales increase of 
up  to  46%  by  offering  TRY/package 
products  to  customers  seeking  ac-
cess to this service from their homes 
due to the pandemic.

Digital sales channels and services
As part of the digitalization focus, our 
online  sales  channel  has  also  taken 
steps to shape Turkey’s e-commerce 
sector  in  2020.  While  the  number  of 
visitors to digital sales channels reac-
hed 30 million per month in 2020, the 
3-month active users of Digital Ope-
rator  application  was  23  million.  To-
day, the digital channel share in total 
retail device sales revenue has incre-
ased 3.6 times compared to the pre-
vious  year,  while  total  TRY/package 
downloads  had  a  threefold  increase. 
In  this  context,  the  share  of  digital 
sales channels in Turkcell Turkey con-
sumer  revenues  (excluding  our  fixed 
business) reached 14.3% in fourth qu-
arter of 2020.

In line with our channel 
growth strategy, we 
shaped our investments 
with a focus on 
communication, traffic, 
sales, delivery, and 
loyalty. 

We  implemented  various  technical 
improvements  to  enhance  the  pro-
cesses by working with Turkcell’s pro-
fessional ICT team. Under our Artifici-
al Intelligence and Data Analytics te-
ams’ leadership, we implemented our 
sales  setups,  where  we  emphasized 
the  importance  of  personalization. 
We have adopted a creative, friendly, 
value-oriented,  and  familiar  approa-
ch to communication. We maintained 
our  focus  on  hourly  and  nighttime 
campaigns  to  encourage  our  cus-
tomers  to  spend  more  time  on  turk-
cell.com.tr.  Our  campaign  called  the 
“Those  who  can’t  Sleep  Club”,  active 
between 22.00 and 02.00 during the 
night, was the bronze prize winner in 
the  Direct  Response/Lead  Generati-
on  category  of  MIXX  Awards  Europe 
2020, organized by IAB Europe. “Tho-
se who can’t Sleep Club“ will continue 
to  bring  our  customers  brand-new 
concepts  with  a  focus  on  the  right 
time  and  right  product  at  the  right 
price. For our customers who look for 
more  internet  and  more  advantage-
ous prices, we have begun to design 
campaign  formats  for  both  postpaid 
and prepaid Turkcell products, as well 
as for new customer registration and 
customer number portability catego-
ries. 

increasing  our 

recognition 
While 
with  the  use  of  accurate  and  tar-
geted  media,  we  sought  to  create 
the  perception  of  turkcell.com.tr  as 
offering  a  wide  range  of  affordable 
products  with  a  quality  experience. 
We boosted new customer traffic on 
the  website  with  our  strategic  cam-
paigns.  Focusing  on  an  uninterrupted 
and  excellent  customer  experience, 
we  listened  to  customer  requests 
and  complaints  on  social  media;  we 
prepared  campaigns  that  reflected 
their  wishes;  we  popped  up  on  both 
product detail pages and basket pa-
ges  with  complementary  product 
suggestions.  We  created  alternative 
payment methods for purchases and 
provided  delivery  within  24  hours.  By 
providing  differentiated  subscription 
services,  we  facilitated  the  applica-
tion  process  and  better  served  our 
customers,  delivering  their  sim  cards 
to their homes.

Our next move to expand our di-
gital sales channels, Turkcell Pasaj, 
has  been  launched  in  December 
2020. Turkcell, the world’s first di-
gital  operator,  takes  its  place  in 
the rapidly growing e-commerce 
market  in  the  field  of  consumer 
electronics.  Within  the  scope  of 
Turkcell  digital  sales,  we  introdu-
ced  our  marketplace  platform, 
Turkcell  Pasaj,  on  which  diverse 
customers  and  suppliers  will  be 
able  to  buy  and  sell  products  in 
the  electronic  products  category 
under  www.turkcell.com.tr.  In  the 
future,  it  will  be  possible  to  sell 
electronic  products  to  Turkcell 
and  even  other  suppliers  via  this 
channel. 

Collaborating  with  Turkey’s  largest 
and  most  reliable  suppliers,  Turkcell 
initiated this journey with the goal of 
providing  “secure  online  shopping”. 
Thousands of products from smartp-
hones to vacuum cleaners, and from 
hobby  products  to  computers,  are 
available  on  Turkey’s  first  electronic 
marketplace  platform  “Turkcell  Pa-
saj”. Providing users fast delivery and 
flexible payment options, Turkcell Pa-
saj also offers easy cancellation and 
refund options. 

Discount  options  that  fit  all  comers 
are  offered  on  “Turkcell  Pasaj”.  The 
customers  of  all  operators  can  also 
enjoy  those.  “Turkcell  Pasaj”  custo-
mers  will  soon  be  able  to  pick  up 
their products purchased on the plat-
form around 1,300 Turkcell stores ac-
ross Turkey. Thus, a real online/offline 
shopping  experience  will  be  introdu-
ced on “Turkcell Pasaj”.

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Our tariffs and packages

Our postpaid packages
We  provide  a  “superior”  experience 
with  our  rich  content  offers  tailored 
to the usage habits of each customer 
through  the  Yıldız,  Bol,  Platinum  and 
GNÇ  packages  we  introduced  in  the 
second half of 2020. By following cur-
rent  trends,  we  respond  to  changing 
customer  usage  needs  by  adding 
internet  quotas  valid  in  social  media 
applications  in  the  recently  introdu-
ced Platinum and GNÇ packages. We 
allow our Platinum customers to ma-
nage their calls and internet needs as 
they choose with the For Me Campa-
ign  that  converts  unused  minutes  to 
GB. Moreover, our customers can also 
easily access the usage and payment 
alternatives most suitable for their li-
festyle  with  our  Comfortable  offers, 
which  do  not  require  contract.  Com-
fortable  offers  protect  customers 
from  exceeding  their  consumption  li-
mit  while  providing  flexible  payment 
convenience.

Our prepaid packages
We constantly track the usage habits 
and needs of our prepaid customers 
through  big  data  and  market  analy-
ses, and regularly update and widen 
our prepaid package alternatives ba-
sed on changing customer needs. 

In addition to the 
monthly packages, we 
address the short-term 
needs of our customers 
through our weekly and 
daily solutions.

requiring 

Our  customers  can  report  their  net-
work connection complaints to us via 
the  application  by  doing  the  auto-
matic call connection control from the 
“Help”  feature,  and  easily  complete 
their  document 
requests 
from  the  “Submit  Request”  feature  by 
adding  a  photo  of  the  related  docu-
ment. Moreover, all requests and com-
plaints  can  be  easily  tracked.  In  ad-
dition  to  all  these,  our  customers  get 
support from the artificial intelligence 
backed  Turkcell  Assistant  whenev-
er  required,  and  can  easily  perform 
many  transactions  without  having  to 
reach  the  call  center.  Our  customers 
can  manage  all  their  Turkcell  sub-
scriptions  including  fixed  broadband 
and  mobile  lines  from  a  single  appli-
cation by adding each to the platform 
via the “Add Account” function. Nearly 
300  thousand  Superonline  custom-
ers  make  2.5  million  transactions  per 
month  using  Digital  Operator.  With 
the addition of the Gift Pool feature to 
the Digital Operator, introduced on 14 
October  2019  and  visited  nearly  500 
thousand  times  per  day  by  Turkcell 
customers,  our  customers  can  view 
and  track  all  the  gifts  and  privileges 
they  have  earned  to  date,  as  well  as 
those  they  can  potentially  get  from 
Turkcell over the coming periods, on a 
single space. 

We  enable  our  corporate  customers 
to  carry  out  all  relevant  transactions 
regarding their corporate lines over a 
single  platform  through  the  My  Com-
pany  application,  which  is  tailored  to 
corporate customers. We forward de-
velopments  regarding  corporate  lines 
to relevant company officials through 
instant  notifications.  Turkcell  provides 
speed  and  convenience  to  company 
officials  enabling  them  to  carry  out 
transactions such as switching to ap-
propriate  offers  and  campaigns,  and 
SIM card changes online and without 
paperwork.  We  provide  convenient 
offers  for  our  customers  as  part  of 
digital special packages sales. 

We celebrate their birthdays and pro-
vide them a personalized experience. 
In 2020, 300 million transactions have 
been  made  via  My  Company’s  web 
and  mobile  application  platforms, 
used by 350 thousand companies.

Over  the  coming  periods,  we  will 
continue  to  hone  our  muscles  in  the 
e-commerce  world  where  speed, 
logistic  services, 
product  diversity, 
diverse  payment  alternatives,  brand 
assurance  and  innovative  approach-
es  are  competitively  significant.  We 
will ensure an excellent experience for 
our customers with the backing of our 
Group Companies and bring them the 
channel-specific  solutions  of  Paycell 
and Financell.

As for the past 27 years, 
we view our customers 
as being among the key 
members of our Turkcell 
family, and we work 
to add value to each 
moment of their lives. 

Our  Digital  Operator  application, 
which  we  developed  in  order  to  re-
spond  to  customer  needs  using  the 
most  appropriate  means,  became 
the  most  preferred  service  and  sales 
channel  of  Turkcell  customers,  reach-
ing  56.4  million  downloads  in  2020. 
The 3-month active users of the appli-
cation reached 23 million and Turkcell 
customers made their transactions on 
Digital  Operator  with  an  average  of 
225.4 million logins per month over the 
past year. In addition to viewing their 
remaining usage through the applica-
tion; our customers can view and pay 
their  bills,  access  packages,  services 
and  campaigns  that  fit  their  needs, 
and  switch  between  offers  instantly. 
We remember the special days of our 
customers and celebrate them via the 
application,  sharing  personalized  re-
minders  and  information.  Additionally, 
we  help  our  customers  to  make  the 
right transitions at the right time with 
proactive  notifications.  We  also  offer 
our  customers  suitable  device  and 
accessory  offers  on  Digital  Operator. 
Our  cargo  tracking  module  displays 
the  delivery  status  of  the  products 
they purchase.

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Innovation
In  2020,  we  continued  to  focus  on 
applications  and  offers  featuring  in-
novative  solutions  to  increase  both 
customer  acquisition  and  customer 
loyalty.

SDG 8.3

Turkcell Biz (Family and friends):  
Our innovative digital platform

We have created an innovative digital 
platform  that  is  unique  in  the  sector, 
where  our  customers  can  come  to-
gether  with  their  loved  ones  to  cre-
ate  groups  and  earn  more  together. 
At Turkcell Biz, our individual postpaid 
customers can set up groups of a min-
imum of 2 and maximum of 5 people, 
free of charge, without any package/
tariff changes. Members can share GB 
with  each  other  for  free  and  benefit 
from exclusive internet gifts. 

With  Turkcell  Biz,  we  have  attained  a 

digital  value  that  will  increase  both 
customer  acquisition  and  customer 
loyalty, offering innovative setups.

Postpaid Mega Packages

Our  customers  can  utilize  the  us-
age quotas in their packages as they 
choose for a year with our annual lim-
ited  offers,  introduced  exclusively  by 
Turkcell as a first for Turkey, and make 
their  payments  monthly  at  a  fixed 
price.  Thus,  package  contents  are  ef-
fectively  used  and  package  limit  ex-
ceeding problems are avoided.

Prepaid Mega Packages
In particular with the changing habits 
during the pandemic, we have added 
the  3-month  Mega  Package  alterna-
tive to our product range for our pre-
paid  customers  requiring  longer-term 
packages.  Thus,  our  customers  who 
wish  to  install  a  Mega  Package  in-

Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
190

Turkcell Fiber Speed Festival
Given  the  rising  need  for  household 
internet  speed,  especially  during  the 
pandemic,  we 
launched  a  Speed 
Festival  at  Turkcell  Fiber  to  bring  the 
speed and quality of Turkcell Fiber to 
even  more  households.  We  focused 
on meeting customer needs with high 
speed and diversified campaigns. We 
began  to  offer  our  customers  200 
Mbps  speed  for  the  first  time  at  the 
retail level. Our customers using inter-
net at 100 Mbps and above doubled in 
number  within  a  short  period  of  time 
due to the campaign.

Our corporate packages
With our innovative offers, we gener-
ated solutions tailored to the increas-
ing  internet  needs  of  our  corporate 
customers.  By  strengthening  our  im-
age of a superior service provider, we 
continued  to  focus  on  new  custom-
er  acquisition  and  existing  customer 
management.

Our customers who bought a new sim 
card are connected to life via Turkcell 
with  our  innovative  offers  and  prop-
ositions  featuring  abundant  internet 
and gifts. 

We  multiplied  the  advantages  of  be-
ing  a  Turkcell  member  with  compli-
mentary  social  media  packages,  lim-
it-stop service, and campaign propo-
sitions  ranging  from  fuel  to  electricity 
bills.

We  have  provided  solutions  tailored 
to the needs of our customers for their 
growing mobile and fixed internet us-
age.

stead of topping up on a monthly ba-
sis,  need  only  do  so  every  3  months, 
and can divide usage in the package 
to different periods according to their 
needs.

Prepaid packages that can be offered 
as gifts
In  light  of  the  changing  habits  of  our 
customers and the pandemic environ-
ment, we activated our prepaid pack-
ages that can be offered as gifts. Duly, 
without  leaving  their  homes,  our  cus-
tomers are able to purchase commu-
nication  packages  on  the  Digital  Op-
erator  for  their  loved  ones  on  special 
occasions such as birthdays and anni-
versaries, and send them with person-
alized messages and images.

Our fixed services
The need for internet speed, being the 
most critical component of household 
internet for our customers, has gained 
in  significance  during  the  pandemic. 
We  continued  to  meet  our  customer’ 
needs  with  Superbox,  which  offers 
a  unique  customer  experience  with 
easy  installation,  portability,  and  fast 
internet.  As  part  of  Turkcell  Fiber,  we 
provided  high  speed  and  campaign 
diversity  to  meet  the  needs  of  our 
customers,  who  have  experienced  its 
unique  speed,  during  the  pandemic 
period.

Superbox Plug-Go
By  changing  the  definition  of 
household  internet  in  Turkey, 
we  ensure  cost  advantages, 
while  enabling  our  customers 
to  access  internet  from  the-
ir  households  by  visiting  the 
nearest  Turkcell  store  without 
waiting for installation. By pro-
viding  credit  financing  via  Fi-
nancell, we offer various pay-
ment options to our customers 
and gain on capital costs.

We offered our customers the oppor-
tunity to purchase additional packag-
es  either  by  reflecting  them  to  their 
bills, or by credit card via Digital Op-
erator.  We  diversified  the  additional 
packages  they  could  purchase  and 
enabled  those  of  our  customers  re-
stricted  by  company  officials  from 
purchasing  additional  packages  by 
reflecting them on the bill, to purchase 
additional packages exclusive to their 
corporate  lines  with  their  individual 
credit  cards.  We  introduced  Flexible 
Packages  for  those  customers  who 
use data lines and cannot use up their 
internet,  allowing them to use the GBs 
they purchased on their smartphones. 
Hence, they were able to use a single 
internet package on two devices. We 
have  introduced  advantageous  Hot-
spot  Packages,  so  that  our  custom-
ers can easily connect to the internet 
from  any  device  without  the  need  to 
search for a Wi-Fi connection.

By focusing on our existing customers, 
we consolidated our image of “supe-
rior service provider”.

By  introducing  the  anniversary  cam-
paign, we gave away 5 GB of internet 
per  day  to  all  our  customers  on  the 
anniversary of their joining the Turkcell 
Corporate family. 

to 

internet 

We  allowed  company  officials  to 
send 
their  employees 
through  the  complimentary  GB  pool. 
Through  this  campaign,  the  GB  pool 
allowed  those  officials  to  distribute 
complimentary GBs to corporate lines, 
instead  of  offering  this  to  corporate 
lines separately.

Our segments
By adding new digital privileges to our 
loyalty programs during the pandem-
ic,  we  remained  the  brand  offering 
superior  services,  and  making  a  dif-
ference as a superior service provider 
in the eyes of our customers.

New  digital  privileges  exclusive  for 
changing needs at Platinum
This  year,  Turkcell  embraced  innova-
tion  by  giving  its  customers  privileg-
es  not  offered  before  with  Platinum, 
which  appeals  to  those  customers 
with 
intensive  communication  and 
internet  needs.  During  the  pandem-
ic  period,  we  provided  opportunities 
in  many  areas  such  as  free  premi-

um  membership  to  fizy  and  TV+,  gift 
books,  organic  household  shopping 
and  children’s  clothing  shopping  with 
the  Platinum  at  Home  tab.  We  also 
met  many  customer  needs  by  offer-
ing Platinum privileges through digital 
channels,  making  Turkcell  products 
easier  to  access.  We  provided  com-
plimentary internet packages valid on 
the  online  education  platform  (EBA), 
and  recognized  the  device  and  tar-
iff/package  needs  of  our  customers 
aged  over  60,  establishing  a  special 
communication channel to meet their 
requests.  By  keeping  our  customers 
engaged  with  Platinum  Dream  Gifts 
raffles,  this  feature  scored  its  histor-
ic  highest  beneficiary  number  ap-
proaching  4.7  million  times,  involving 
310  thousand  individual  customers. 
With  a  growth  of  18%  compared  to 
the  previous  year,  the  Platinum  Privi-
lege  Program  reached  approximately 
400  thousand  unique  customers  and 
over  5  million  interactions.  This  year, 
our brand has enriched the lives of our 
customers  with  our  sponsorships  and 
privileges  such  as  Turkcell  Platinum 
Bosphorus  Cup,  Platinum  Park,  Turk-
cell Platinum Night Flight Concerts and 
Zorlu PSM, having become a desirable 
brand to be a part of.

In the second wave of the pandemic, 
we introduced the new tab, Long Live 
the  Weekend  with  Platinum,  where 
we  offer  our  customers  end-to-end 
digital  privileges.  We  enabled  our 
customers to enjoy numerous privileg-
es at home without having to go out. 
They  met  their  daily  needs  thanks  to 
the  discounts  on  Getir,  Tchibo  online, 
and kahve.com without leaving home, 
while we offered an entertaining stay-
home  experience  through  privileges 
such  as  Zorlu  PSM  online  events  and 
gift tickets, TV+ Premium membership 
and D&R online store gifts. 

You may visit Turkcell Platinum 
website to discover the 
privileged opportunities of 
Turkcell Platinum.

GNÇ App: 2020, the year of  
records at GNÇ!
GNÇ,  the  favorite  application  of  our 
youth,  added  to  its  records  this  year. 
The  GNÇ  application  ended  the  year 
as  Turkey’s  most  downloaded  youth 
application  with  11.5  million  down-
loads. 

We  offered  an  opportunity  to  those 
young  people  who  want  to  become 
entrepreneurs through the GNÇ Idea-
thon competition for the second time 
this  year,  awarding  the  winners.  This 
year with 3,600 ideas, the number of 
applications  to  the  competition  has 
doubled from last year.

2020 was a record-breaking year for 
the  Crack  the  Egg  Campaign,  a  fa-
vorite  among  young  people,  during 
which we gave 79 million gifts to our 
young customers. 

During the COVID-19 period, we have 
developed two new games within the 
application to offer innovations to our 
young  people.  We  achieved  a  30% 
rise  in  application  usage  thanks  to 
the  high  interest  shown  by  our  young 
customers  in  Blast  and  GNÇ  Trivia. 
We will continue to invest in the GNÇ 
Mini  Games  platform  by  adding  new 
games  to  those  GNÇ  games  already 
played  by  4  million  young  people  on 
17 million occasions in 2020, further in-
troducing our innovations to our youth.

The  GNÇ  Star  Music  Competition, 
which took place for the first time this 
year, receiving over 2 thousand appli-
cations,  allowed  young  people  keen 
to  become  musicians  to  showcase 
their  skills.  With  Challenge  TV,  which 
we  introduced  during  the  GNÇ  Star 
competition, young people respond to 
challenges  with  videos  via  the  GNÇ 
application and win surprise gifts. 

We  continued  to  offer  benefits  to 
young  people  through  brand  collab-
orations  made  in  2020.  We  provided 
young  people  who  pay  with  Paycell 
QR a 50% discount on Burger King’s 3 
best-selling menus.

With  the  Push  &  Take  platform,  an-
other of our innovations, we offer sur-
prise  gifts  and  opportunities  to  GNÇ 
members every Monday at a surprise 
hour  from  the  GNÇ  application,  invit-
ing  young  people  to  the  application. 
Thanks  to  the  Push  &  Take  platform, 
application  visits  on  Mondays  rose 
by  250%  and  total  application  usage 
by  15%.  In  2020,  the  GNÇ  application 
doubled its monthly visitor number to 
register the highest numbers ever.

You can access the 
GNÇ world and its 
innovative applications 
on GNÇ website.

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Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
192

Digital Operator
Over  the  COVID-19  period,  we  con-
tinued  to  create  value  with  our  new 
projects that address increasing dig-
ital needs and improve customer ex-
perience.

Our digital focus
We  have  introduced  many  experi-
ential  improvements  and  exclusive, 
advantageous  offers  for  both  Digi-
tal  Operator  and  turkcell.com.tr  and 
other  digital  platforms,  providing 
solutions  to  meet  the  changing  dig-
ital  needs  of  our  individual  prepaid 
customers 
that  have  accelerated 
notably due to COVID-19. With these 
offers,  we  have  expanded  our  prod-
uct range, with our customers able to 
purchase  digitally  with  a  price  ad-
vantage  and  without  leaving  home. 
In  2020,  362  million  people  visited 
turkcell.com.tr.  In  the  prepaid  world, 
we  enabled  personalized  packages 
to  be  purchased  by  credit  card  via 
digital channels, making all our pack-
ages  accessible.  We  increased  the 
share of our digital channel in pack-
age sales to 3.6 times what it was at 
the start of the year. Through another 
development, we allowed customers 
to view all the packages exclusive to 
them in a single space under the fast 
transaction  menu  by  querying  the 
number.  Furthermore,  we  activated 
our  prepaid  packages  that  can  be 
offered  as  gift.  Duly,  our  customers 
are  able  to  purchase  communica-
tion packages from the Digital Oper-
ator  without  leaving  home,  for  their 
loved ones on special occasions such 
as  birthdays  and  anniversaries,  and 
send  them  with  personalized  mes-
sages and images.

We  started  by  redesigning  turkcell.
com.tr  so  that  our  customers  could 
readily  access  our  postpaid  pack-
ages  and  began  to  offer  our  pack-
ages  with  a  fresh  and  simpler  look. 
We have implemented our smart of-
fer display model to sort our tailored 
offers  made  to  Turkcell  customers. 
Through  the  50  GB  additional  pack-

age  we  offer  on  the  digital  chan-
nel,  we  were  there  for  our  custom-
ers  when  they  needed  us  with  our 
affordable  and  abundant  content 
package. Duly, we ensured the satis-
faction  of  our  customers  by  meeting 
their  intensive  internet  needs  during 
COVID-19 curfews. With the “Gift Pool 
Campaign” introduced in April, our in-
dividual  postpaid  customers  can  se-
lect  the  gift  they  wish  from  our  cat-
alogue when purchasing a new tariff 
package.

Shake and Win once again made 
a difference in 2020 through its 
innovations
While  Turkcell  customers  could 
choose  the  gifts  that  best  fit  their 
needs among the rich gift options of 
Turkcell’s  most  popular  promotional 
campaign,  Shake  and  Win,  they  had 
the flexibility to use their gifts when-
ever  they  wanted.  With  the  “Shake 
and Win GB Festival”, we introduced 
mega  internet  gifts  of  up  to  25  GB, 
never  seen  before  in  the  history  of 
the  campaign.  Over  13  million  Turk-
cell  customers  shook  their  phones  in 
2020  via  the  Digital  Operator  app. 
We  shared  over  60  million  gifts  with 
our  customers  every  month.  To  max-
imize customer interest, and given its 
contribution  to  income,  other  prod-
ucts,  and  digital  services,  through 
Shake and Win we made diverse of-
fers  and  digital  services  promotions 
this  year  for  customers  who  partic-
ipated  weekly  in  the  campaign.  We 
also  supported  the  active  usage  of 
Turkcell  digital  service  campaigns 
through  promotions  on  Shake  and 
Win.

Turkcell’s  full  Support  for  women 
through Bizce!

We 
renewed  Turkcell 
Bizce, Turkcell’s women’s 
platform,  which  set  out 
to  provide  “full  support 
to women” with its con-
tent and design that en-
dorse women’s active participation in 
the  economy  and  self-development, 

and  that  offer  solutions  to  important 
issues  of  interest.  With  the  renewed 
Bizce,  we  offer  brand-new  features 
and  content  to  meet  the  changing 
needs  of  women.  Women  also  sold 
16 
their  handcrafted  products  at 
thousand  stores  in  Our  Market  plat-
form. In addition to the high quality of 
the  handcrafted  products,    the  safe 
home  delivery  option  has  stood  out 
as the key feature of the application, 
especially  during  the  pandemic.  We 
hosted experts in the Expert category, 
where  many  questions  uppermost  in 
women’s minds from health to cuisine 
are  answered  with  videos  that  were 
viewed  around  200  thousand  times. 
With the Collect Coupons Campaign, 
we  distributed  350  thousand  gifts 
daily  to  our  users  of  the  application, 
who  collected  10.6  million  coupons. 
We offered advantages with our sur-
prise draws and brand privileges. Our 
astrology  feature  was  used  around 
500 thousand times. With our brand-
new  Share  Discount  feature,  our  us-
ers  shared  their  discounts  with  each 
other. During this period in which we 
have  stayed  at  home,  new  DIY,  rec-
ipe  and  handicraft  videos  for  wom-
en were viewed 250 thousand times. 
Our users can also access content on 
a  wide  range  of  topics,  such  as  the 
inspiring  stories  of  women  entrepre-
neurs, business planning, and working 
parents  on  the  Bizce  app  under  the 
Get  Inspired  and  Self  Development 
categories.

Our customer relations

Customer satisfaction 
and loyalty
As the Turkcell family, 
we strive to make our 
customers feel “Safe, 
Valuable, Happy” in 
every decision we 
make and with every 
product or service 
we design, and we 
aim to provide our 
customers with an 
“easy, personalized and 
consistent” experience. 
The customer-oriented 
cultural transformation 
we initiated in 2019 is 
at the heart of every 
decision taken by all 
Turkcell employees with 
the “being here for my 
customer” mindset. 
We pay attention to 
our customers’ needs 
and demands with 
our people-oriented 
communication, 
reflective of our 
adopted mission. 
Primarily, we design our 
products and services 
so as to create value 
for people, making 
them accessible for 
all to help eliminate 
social inequalities. 
We consider our high 
customer satisfaction 
a crucial metric of our 
success.

Number of customers (million)

Mobile

Fixed

2018

33.8

2.3

2019

32.7

2.3

2020

33.4

2.4

Also in 2020, we continued to see higher Net 
Promoter Scores compared to our competitors in 
Turkey in individual mobile, corporate mobile, and 
fixed individual categories.

Customer Net Promoter Scores (NPS)

2018 last 
quarter

2019 last 
quarter

2020 last 
quarter

Gap between the closest 
competitor

Gap between the second 
closest competitor

13

23

With a focus on growth in new post-
paid customer acquisition in 2020, we 
continued to offer our customers inno-
vative offers of rich content, consist-
ently updated according to customer 
need. Despite the pandemic that be-
gan  to  have  its  effect  in  March,  we 
increased our postpaid customer ac-
quisition by 8% compared to the pre-
vious year. In addition, we have seen 
a greater performance in the Mobile 
(MNP)  market 
Number  Portability 
compared to 2019. In 2020, we start-
ed to offer content-rich packages to 
our new prepaid customers. With the 
normalization  process,  we  increased 
the  revenue  contribution  of  our  new 
prepaid  customers  by  boosting  our 
share  in  the  number  porting  market 
and packaging rate. 

With  a  “Single  Turkcell”  approach, 
we  prioritize  an  “Omnichannel  Ex-
perience”  in  our  customer  relations 
management  to  maintain  Turkcell’s 
rich  channel  diversity.  With  our  om-
nichannel projects, we aim to offer an 
integrated experience in Turkcell cus-
tomers’  channel  interactions  where 

10

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15

20

our  customers  don’t  need  to  provide 
the same information repeatedly. We 
also  surprise  them  along  their  cus-
tomer  journey  with  our  technologies 
and the harmonious operation of our 
channels.

Customer oriented cultural 
transformation
Over  500  Turkcell  employees  have 
implemented  more  than  170  projects 
to  improve  customer  experience  in 
2020 as part of our Customer Orient-
ed  Cultural  Transformation  Program 
that  we  have  implemented  for  three 
seasons, within the framework of our 
customer-oriented corporate cultural 
transformation.  The  “Customer  Expe-
rience Hackathon” that we kicked off 
in  the  third  season  has  allowed  our 
employees to put into practice those 
ideas that make a difference for our 
customers during this transformation. 

towards 
We  continue  advancing 
our  goal  of  “1  million  new  customers 
every year, until 2022”, based upon of 
our principles of high customer satis-
faction and loyalty.

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194

Our social values and relations

Customer complaints management
We  commit  to  addressing  custom-
er  requests  in  an  open,  transparent, 
rapid,  reassuring  and  people-orient-
ed way on the basis of our Customer 
Satisfaction Policy.

We  determine  our  customer  perfor-
mance  metrics  annually  in  line  with 
our  customer  experience  strategy  of 
continuous  improvement  in  service 
quality.  This  is  done  by  considering 
all Turkcell functions together, as well 
as  the  customer  experience  offered 
through our call center, the video call 
service for our hearing-impaired cus-
tomers, and digital and face-to-face 
services channels, and by monitoring 
them  throughout  the  year.  Through 
7  functions,  we  ensure  rapid  action 
taking and follow up, as well as end-
to-end  customer  experience  with 
cross  targeting,  and  the  establishing 
of  measuring  and  anomaly  detec-
tion structures across 308 experience 
metrics. 

As  well  as  taking  rapid  actions,  it  is 
also crucial to clearly understand the 
customer,  empathize  with  them  and 
hear them out. In this context, and to 
provide still better customer services, 
we  now  instantly  recognize  custom-
ers  by  voice  thanks  to  our  text  and 
audio analytics capabilities integrat-
ed using artificial intelligence.

Thanks  to  our  AI-backed  Chat  and 
Chatbot 
infrastructure,  we  deliver 
rapid  feedback  to  our  customers  to 
meet  their  needs.  We  monitor  the 
reasons  behind  our  customer  calls 
with  real-time  setups,  right  from  the 
welcoming  message  of  the  Interac-
tive  Voice  Response  System  through 
to connection to the customer repre-
sentative,  and  provide  solutions  with 
proactive  scenarios.  With  the  solu-
tions  offered  to  our  customers,  we 
enabled 289.9 thousand Turkcell cus-
tomers to complete their transactions 
over  IVR  by  informing  32.5  million  of 
them in the January-December peri-
od of 2020, resulting in time saving. 

We  respond  24/7  to  our  customers 
on Facebook, Twitter, Instagram, You-
Tube,  and  LinkedIn  with  a  total  of  55 
accounts.  We  receive  211  thousand 
comments  on  average  on  social  me-
dia from 63 thousand users per month. 
We  provide  support  to  our  users  re-
garding  our  digital  applications  by 

initiating  digital  dialogue  reflecting 
the nature of the respective platforms 
and our brand positioning. Meanwhile, 
we instantly follow up all sectoral so-
cial  media  interactions  with  our  AI-
backed  analysis  model  and  take  ac-
tions to improve customer experience.

Average response time of all platforms and accounts (minutes)

35 minutes
2018

20 minutes
2019

18 minutes
2020

%
2
4

9
1
0
2

%
0
1

0
2
0
2

Improvement rate of average response time 
of all platforms and accounts, compared to 
the previous reporting year

Social investment projects

Creating social value

By leveraging the opportunity of equalizing power of technology, we 
implement social inclusion projects that aim to provide all with equal 
opportunities  in  accessing  information.  Across  all  our  activities  we 
value the principles of protecting public health, and developing local 
communities and economies. For the long term, we aim to contribute 
to a more livable world, while making a positive social difference by 
allocating 1% of our annual revenue to social investment projects. 

Turkcell Foundation
We  continue  to  implement  projects 
that serve our country and humanity 
at large with the Turkcell Foundation, 
backed by the strength and reliabili-
ty of the Turkcell brand.

Turkcell Volunteers

One out of five Turkcell employees 
is a Turkcell volunteer 
As  Turkcell  Volunteers,  we  realized 
numerous  initiatives  in  2020  for  our 
people  in  need,  and  among  disad-
implement 
vantaged  groups.  We 
engaging,  strongly  communicative, 
technology  using,  participatory  and 
environmentalist  volunteering  pro-
jects  through  “Turkcell  Volunteers”, 
the  entire  cost  of  which  is  met  from 
the  donations  of  Turkcell  Group  em-
ployees.

Corporate social 
responsibility projects 
Leaving  no  one  behind,  we 
provide  equal  access  to  infor-
mation to children, women, the 
disabled,  the  elderly,  refugees, 
and  economically  disadvan-
taged  groups  thanks  to  the 
opportunity-leveling  power  of 
technology;  we  cover  life  and 
inspire.

No  politically  affiliated  finan-
cial aid activity has been con-
ducted  directly  or  indirectly  by 
Turkcell in 2020.

Whiz Kids Project
The  Turkcell  Whiz  Kids  Project,  car-
ried out in cooperation with the Min-
istry  of  National  Education,  aims  to 
introduce  talented  students  to  tech-
nology,  discovering  and  developing 
their talents at early ages. Whiz Kids 
Technology Laboratories, established 
as  part  of  the  project,  provides  stu-
dents with laptops, 3D printers, smart 
boards, electronic and robotic coding 
sets,  and  tool  kits.  Children  receive 
training  and  develop  projects  on  ar-
tificial intelligence, coding, space sci-
ence,  robotics,  the  smart  home,  and 
cloud technologies. 

As part of the Whiz Kids Project, we 
reached 59 laboratories in total in 41 
cities  by  establishing  14  new  class-
es  in  2020.  We  handed  out  close  to 
1,000  coding  education  kits  during 
the  year.  Students  of  the  Whiz  Kids 
Project  have  to  date  won  266  prizes 
at the national and international level.

To  date,  over  5  million  items  of  edu-
cational content have been accessed 
on  the  Whiz  Kids  training  platform 
and  free-access  mobile  application. 
70  thousand  students  across  Turkey 
have received training. Our education 
portal and mobile application include 
free-of-charge education content for 
all students in Turkey, such as Arduino, 

mBot  Robot  Programming,  Robotics, 
Space Sciences, Mobile Game Devel-
opment,  Artificial  Intelligence,  Smart 
Home, and Deep Learning.

Within  the  scope  of  the  project,  we 
have so far;

• distributed Maker and Robotic Cod-
ding  Kits  to  over  30  thousand  stu-
dents,

• established  59  Whiz  Kids  Technol-
ogy  Laboratories  in  41  cities  across 
Turkey,

• provided 250 thousand hours of on-

line training, and

• covered  40  thousand  kilometers 
in  Anatolia  for  face-to-face  work-
shops.

The Whiz Kids Project carried out ac-
tivities to contribute to society during 
the  pandemic.  Whiz  Kids  students  in 
33  technology  classes,  with  the  sup-
port of their teachers, produced face 
shields  using  3D  printers  to  support 
health  professionals  fighting  at  the 
forefront  of  the  COVID-19  pandem-
ic.  Turkcell  added  new  3D  printers 
to  Whiz  Kids  classes,  whereby  Whiz 
Kids  students  were  able  to  produce 
15 thousand face shields per month.

SDG 4

SDG 10

Number of students accessed via the Turkcell Whiz Kids Project

2018

2019

2020

Short-term 
target

Mid-term 
target

Long-term 
target 

30,000

50,000

100,000

100,000

130,000

150,000

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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196

Our social values and relations

People without Boundaries 
Through our technology we pro-
vide  many  solutions  that  make 
life  easier  across  numerous 
fields under the “People without 
Boundaries” roof, contributing to 
the  social  inclusion  of  disabled 
individuals.  We 
leverage  the 
healing power of technology for 
social  benefit  in  the  Education 
without  Boundaries  Program, 
My  Gem  Inside  Project,  Turkcell 
Dialogue  Museum,  Sports  with-
out  Boundaries  Program,  My 
Dream Companion and My Sign 
Language applications.

SDG 4.5

SDG 8.5, 8.6

Education without  
Boundaries program
As  part  of  the  Education  without 
Boundaries program initiated in June 
2015 under the auspices of the Minis-
try of National Education, we support 
disabled  students’  development  in 
education  and  employment  with  the 
aim of boosting the competencies of 
disabled  children  in  need  of  special 
education,  ensuring  their  active  par-
ticipation in society. Within the scope 
of 
the  program,  we  established 
technology  classes  for  visually  im-
paired students and vocational train-
ing  centers  for  students  with  mental 
disabilities.  At  the  Special  Education 

Center established throughout Turkey, 
students with mild mental disabilities 
are  prepared  for  employment  after 
school  in  vocational  workshops.  We 
enabled visually impaired students to 
code their dreams with a Braille print-
ed coding kit that we provided them 
as part of a project launched in 2020. 
Since  2015,  we  have  reached  over 
70  thousand  students  at  112  schools 
across  60  cities.  20  thousand  stu-
dents  benefited  from  our  projects  in 
2020.  We  have  also  enabled  almost 
1,000  visually  impaired  students  to 
experience  the  digital  world  in  2020 
through  the  robotics  kit  and  training 
program that we made available this 
year for visually impaired people.

Sports without Boundaries 
Under  the  Sports  without  Boundaries 
program we launched in 2020, we be-
gan  to  support  our  mentally  disabled 
students in the field of sports. We sup-
ported our disabled athletes of poten-
tial  by  establishing  sports  classes  for 
special  education  students  in  Adana, 
Ardahan, Diyarbakır, Gaziantep, Kahra-
manmaraş, Kırıkkale, Konya, Osmaniye, 
Şanlıurfa,  Van  and  Erzincan.  Students 
of these schools will be trained in ath-
letics (disc, javelin, shot put, long jump, 
and  running),  table  tennis,  basketball, 
and  gymnastics  through  sports  clubs, 
and will be prepared for national and 
international  competitions.  In  2020, 
we  have  established  Sports  without 
Boundaries  classes  at  11  special  edu-
cation  schools  in  Turkey,  with  almost 
5 thousand disabled students benefit-
ting  from  them.  Our  project  will  con-
tinue  to  support  the  development  of 
disabled students in the field of sports, 
with  national  skier  Ayşe  Kader  Yavuz 
being the face of the program.

The My Gem Inside project
This  project,  implemented  under 
the  auspices  of  the  Ministry  of 
National  Education,  supports  the 
education  of  children  with  au-
tism  across  Turkey  through  spe-
cial classes established in schools 
and a free digital application. The 
My  Gem  Inside  project,  success-
fully  funded  by  Turkcell’s  funding 
platform,  Beehive,  reaches  out 
to  children  with  autism  and  their 
families  across  Turkey.  Within  the 
scope of the project, implemented 
in two areas, special classes with 
digital application support are es-
tablished  to  provide  education  to 
students with autism. 

The  project  supports  the  educa-
tion of almost 3 thousand children 
with  autism  and  learning  difficul-
ties  at  21  My  Gem  Inside  classes 
established by Turkcell at 18 Minis-
try of National Education schools.

The  My  Gem  Inside  application, 
developed  under  the  supervision 
of  pedagogues  and  expert  train-
ers,  supports  the  mental,  behav-
ioral,  and  emotional  development 
of children in need of special ed-
ucation. Moreover, the application 

also  provides  instant  reports  and 
informative  content  for  families 
and teachers to help monitor child 
development.  With  the  new  fea-
ture  added  to  the  application  on 
the  2020  Autism  Awareness  Day, 
and  thanks  to  AI-based  develop-
ment, children with autism had the 
opportunity  to  better  learn  which 
facial  expression  reflects  which 
emotion  through  instant  imitation 
and  repetition.  During  the  pan-
demic  period,  educational  con-
tent concerning proper face mask 
usage,  hand  hygiene  and  social 
distancing  has  been  added  for 
students  with  autism  on  the  edu-
cation platforms of the Ministry of 
National Education. 

As of 2020, over 400 thousand 
games are being played monthly 
on the My Gem Inside mobile 
application, with 50 thousand 
children reached via the app. 

Within the project’s 
scope, we have 
reached 60,000 
students since 2019.

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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Our social values and relations

My Dream Companion & My 
Sign Language

My Dream Companion 
the  visually 
enables 
impaired 
receive 
to 
from  hun-
updates 
dreds of news sources 
in various categories, including sci-
ence and technology, health, sports, 
politics,  and  the  economy.  Users 
also gain access to current articles 
of over 2,500 columnists, as well as 
thousands  of  audio  books,  and  in-
tellectual  content  such  as  training 
materials  and  magazines.  Utilizing 
beacon  technology,  the  My  Dream 
Companion  application  helps  vis-
ually  impaired  individuals  obtain 
detailed  information  about  retail 
stores as they pass by at shopping 
malls  in  Turkey.  Users  also  benefit 
from  navigation  services  through 
beacon  technology  at  numerous 
malls, university campuses and mu-
seums. Audio description technolo-
gy  also  helps  the  visually  impaired 
to experience movies at all cinemas 
across  Turkey  without  losing  visual 
detail.  Many  international  awards 
have been won thanks to audio de-
scription technology that describes 
features  of  the  environment,  place, 
person or object and scenes with-
out  dialogue,  and  have  been  the 
key feature of over 250 general re-
lease, and festival films to date.

My  Sign  Language  Application:  My 
Sign  Language  facilitates  commu-
nication between hearing-impaired 
individuals  and  those  unfamiliar 
with  Sign  Language.  The  appli-
cation,  which  features  the  most 
comprehensive  Turkish  Digital  Sign 
Language  Dictionary,  supports  the 
personal development of the hear-
ing impaired. Last but not least, the 
application,  that  allows  access  to 
the video call service on the app via 
Turkcell and Superonline call centers, 
has over 130 thousand users.

Turkcell Dialogue Museum  
The “Dialogue in the Dark” and “Dialo-
gue in Silence” exhibits initiated in coo-
peration with Istanbul Social Enterprise 
to  create  awareness  of  social  issues, 
have been transformed into a perma-
nent museum under the name of “Turk-
cell Dialogue Museum.” As of 2015, with 

the  support  of  Turkcell  the  museum 
introduces  visitors  to  an  alternative 
world, accompanied by visually impa-
ired  and  hearing-impaired  guides.  As 
part  of  the  project,  nearly  50  visually 
and hearing-impaired individuals have 
been  employed  in  Istanbul  with  the 
support of Turkcell.

Disaster response
In  2020  we  met  our  responsibility  of 

Connect the World with Books 
With  the  cooperation  of  Turkcell 

supporting  our  country  and  people 

Corporate  Communication  and  Con-

during natural disasters. We provided 

sumer  Sales  Commercial  Marketing 

grant  support  to  350  tradesmen  and 

Teams, a total of 140 thousand books 

200 families in Giresun, where flood-

spanning  30  genres  of  Turkish  and 

ing  occurred  in  August.  The  support 

World  Classics,  were  distributed  as 

to  tradesmen,  whose  premises  were 

a semester holiday gift to all children 

damaged,  and  to  affected  families, 

who visited our 181 stores in 24 cities 

has  been  provided  via  Paycell  cards 

in Eastern and Southeastern Anatolia. 

Our activities to increase 
social digital literacy
We  run  various  training  activ-
ities  to  make  Turkey  a  leader 
in  software  devel-
country 
opment  and  digital  transfor-
mation.  In  order  to  improve 
people’s  lives  with  technology 
and  contribute  to  realizing  the 
dreams of our society, we work 
to  eliminate  the  inequality  of 
opportunity,  financial  barriers, 
inadequate resources, and lack 
of role models.

Accordingly, we have made an addi-

tion to Turkcell’s equality of opportu-

nity projects carried out to encourage 

children  to  spend  more  productive 

and entertaining semester holidays.

issued on their behalf. 

Our Helping Hand to Giresun through 

Paycell  project  also  marks  a  first  in 

terms  of  our  digital  services  being 

used  for  providing  aid  purposes  dur-

ing a disaster. Meanwhile, we created 

a  special  communication  package 

to  support  search  and  rescue  teams 

that  rescued  dozens  of  people  from 

the rubble following October’s earth-

quake  in  Izmir.  Immediately  after  the 

earthquake,  we  identified  a  free  call 

and  internet  package  to  meet  the 

emergency  needs  of  our  customers 

in  the  disaster  area,  positioning  our 

12 mobile base stations in the area to 

ensure  the  continuity  of  communica-

tion, and establishing 6 mobile charg-

ing  stations  in  those  locations  most 

affected by the earthquake.

Turkcell Dialogue Museum visitors

2018

2019

2020

Short-term 
target

Mid-term 
target

Long-term 
target 

52,500

54,500

10,000

72,500

65,000

75,000

Turkcell video call center
The  Face-to-Face  Customer  Ser-
vice  channel  of  Turkcell  and  Su-
peronline  began  to  offer  video 
services  as  of    March  1,  2019  to 
foster social support. In May 2020 
we also added our BiP channel to 
our  service  initiated  over  Turkcell 
Digital Operator and My Sign Lan-
guage  applications  back  in  2019. 
This  innovation  also  facilitates  the 
lives  of  hearing-impaired  custom-
ers.  Customers  can  access  Face-
to-Face Customer Service from the 
Digital  Operator,  as  well  as  Sign 
Language,  BiP  applications,  Turk-
cell and Superonline stores, and re-
ceive service in sign language be-
tween 10:00-01:45 each day of the 

week. Hearing-impaired customers 
can use the service free of charge. 
As  part  of  the  service  model,  ex-
ternal calls and call-backs to cus-
tomers  can  be  performed  by  call 
center  representatives.  Customers 
can  reach  out  to  the  call  center 
by clicking the link in the message 
once an SMS is sent.

Turkcell serves 
approximately 3 
thousand hearing-
impaired customers 
per month over the 
video call center.

Turkey’s Largest Software Plat-
form: Turkcell Developers of 
Future
We  provided  Python  training  ses-
sions  with  Microsoft  SQL  Server, 
Data Literacy, Data Science, and an 
Introduction to Artificial Intelligence 
through  our  Developers  of  the  Fu-
ture platform in 2020. Furthermore, 
2D  Mobile  Game  Production  with 
C#  over  Unix  Game  Platform,  Data 

Visualization,  Data  Manipulation, 
Data  Pre-processing,  Statistics  for 
Data  Science,  Big  Data  and  Data 
Science Project Management train-
ing had been published on the Unix 
Game  Engine.  In  addition  to  tech-
nology  training,  Turkcell  provides 
everyone the opportunity for devel-
opment with Digital Literacy Train-
ing  regardless  of  age  and  know-
how level.

Turkcell Developers of Future Program

Number of certificates received 
from the Developers of the 
Future platform

Number of users reached 
by Developers of the Future 
trainings (million)

2018

2019

2020

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13,755

83,000

5.0

6.4

7.5

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TURKCELL INTEGRATED ANNUAL REPORT 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
200

Women Engineers who 
Develop the Future
In  2020,  we  organized 
the 
Women Engineers who Develop 
the  Future  project.  Within  this 
scope,  we  received  4,131  appli-
cations  and  reached  101  Tech-
nology  Camp  participants.  The 
project  will  continue  over  the 
coming years

SDG 4.3, 4.4, 4.5

SDG 5.5, 5.B

SDG 8.3

SDG 10.2

Turkcell’s kids code the future
Through this project, we help children 
aged  between  7-18  to  develop  cod-
ing  skills  through  Scratch  and  AppIn-
ventor trainings. Thereby, our children 
learn coding and acquire competenc-
es for the future.

Digital Literacy Program
We continue to disseminate our “Dig-
ital  Literacy”  training  through  various 
channels  to  advance  the  increasing 
digitalization  experience  of 
those 
middle-aged adults who have yet to 
encounter the digital world, especially 
during  the  pandemic  period.  Initially, 
we aim to bring the content to a wid-
er  audience  via  television  broadcast 
on TV+.

Recycle into Education
Thanks to the “Recycle into Education” 
social  responsibility  project  imple-
mented  with  the  support  of  Turkcell 
to  monitor  electronic  waste  across 
Turkey, many unused devices ranging 
from  computers  to  satellite  receiv-
ers,  and  from  telephones  to  audio 
systems  are  collected  in  the  techno 
waste  containers  located  at  Turkcell 
stores,  contributing  to  the  improve-
ment of children’s lives.

Together  with  TÜBİSAD,  Turkcell  has 
channeled  6.5 
tons  of  electronic 
waste collected since the first day of 
the  project  into  the  economy.  While 
all  related  income  was  donated  to 
TEGV  (Education  Volunteers  Founda-

tion of Turkey) to be used for the ed-
ucation of children, starting as of the 
new semester in the reporting period, 
the  income  is  now  donated,  through 
KAHEV (Women Physicians Education 
Support  Foundation),  to  the  children 
of  healthcare  professionals  who  lost 
their lives during the pandemic.

In addition to the social value 
we created through the 
Recycle into Education Project, 
we contribute to our natural 
capital. You can access more 
information on this in our natural 
capital section.

Limitless Talent
Within the scope of Turkcell Limitless 
Talent  Program,  developed  by  Turk-
cell  Academy  and  lasted  10  weeks, 
10,010  young  people  had  the  op-
portunity  to  experience  Turkcell  for 
a  week.  Limitless  Talents,  who  have 
the chance to get to know the busi-
ness  unit  of  their  interest,  work  and 

learn  together,  participate  in  vari-
ous online trainings and live training 
sessions. 3,440 Limitless Talents who 
successfully  completed  the  “Turkcell 
Academy  Future  Ready  Certificate 
Program”  received  their  certificates 
from  Turkcell  Academy  to  prepare 
them  for  the  competencies  of  the 
new world.

Our sponsorship projects
Our support for sports 
and arts & culture
We continue our pioneering 
efforts for the development 
of culture, the arts and 
sports in Turkey so that our 
artists and sportspeople can 
be acclaimed in national 
and international arenas.

National Football Team 
Sponsorship
Turkcell  has  been  the  main  sponsor 
of the Men’s and Women’s A Nation-
al Football Teams since 2005 and the 
“Official  Communication  Sponsor” 
since  2002.  Our  A  National  Team, 
which  we  have  proudly  support-
ed  for  18  years,  is  representing  our 
country in Euro 2020. We continue to 
support  our  Men’s  and  Women’s  Na-
tional  Teams  for  the  development  of 
Turkish  football,  and  expect  them  to 
make  our  country  proud  again  with 
fresh  successes  in  international  tour-
naments.

Turkish Sports Federation for the 
Physically Disabled
We  have  deepened  our  collabora-
tion  with  the  Sports  Federation  for 
the  Physically  Disabled,  that  started 
with  football  back  in  2016,  thereaf-
ter  expanding  to  18  disabled  sports 
branches  (amputee  football,  basket-
ball, shooting, arm wrestling, archery, 
swimming,  sailing,  tennis,  badminton, 
athletics,  sitting  volleyball,  table  ten-
nis, weightlifting, boccia, skiing, danc-
ing,  curling,  and  fencing)  and  7,514 
disabled  athletes.  Our  physically  dis-
abled  athletes  made  us  proud  win-
ning  92  medals  in  total,  including  28 
gold, 32 silver and 32 bronze medals, 
in  international  tournaments  in  2020. 
Furthermore, 26 disabled athletes, in-
cluding  6  table  tennis  players,  1  ath-
lete,  6  shooters,  7  archers,  4  swim-
mers  and  12  wheelchair  basketball 
players,  have  qualified  to  attend  the 
Tokyo Paralympic Games.

Athletics - Swimming Project
We  continue  at  full  speed  the  Ath-
letics  and  Swimming  Performance 
Projects  that  we  kicked  off  in  2013, 
and  that  involve  a  TRY56  million 
sports  investment,  in  collaboration 
with the Turkish Athletics Federation 
and  Turkish  Swimming  Federation. 
We have provided the greatest and 
longest-term  support  for  amateur 
sports  in  Turkey  to  date  through 
these  projects.  We  work  together 
on  many  issues  with  the  Federa-
tions  such  as  applying  innovative 
and  modern  management  models, 
expanding  the  young  athlete  pool, 
ensuring continuous elite athlete de-
velopment,  and  organizational  and 
technological development.

Turkish  athletics  and  swimming, 
main  sponsor  of  which  is  Turkcell, 
continued  registering  successes  in 
the 2020 season. 

Our  national  athletes  won  161  med-
als in total, 123 in athletics and 38 in 
swimming,  in  the  international  are-
na, despite the late-opened season 
due to the pandemic. Thirteen of our 
athletes  and  5  swimmers  have  met 
the requirements to attend the 2021 
Tokyo  Olympics  and  will  represent 
our country.

In  addition  to  these  successes,  in 
2020, the number of licensed swim-
mers reached 203,796 and the num-
ber  of  active  swimmers  reached 
11,868, while the number of licensed 
athletes  reached  246,648  and  the 
number  of  active  athletes  reached 
31,583. We continued our support for 
the  success  of  our  athletes  through 
30  athletics  and  swimming  tour-
naments  organized  for  various  age 
groups in different categories across 
Turkey, under the Turkcell name.

Medals won in 2020, with Turkcell’s sponsorship

Number of 
medals in 
Paralympics

28
GOLD

32
SILVER

32
BRONZE

Number of 
medals in 
Athletics

40
GOLD

41
SILVER

32
BRONZE

Number of 
medals in 
Swimming

11
GOLD

11
SILVER

16
BRONZE

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Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turkcell Platinum
Bosphorus Cup
Turkcell  Platinum  Bosphorus  Cup, 
among Turkey’s key sporting organi-
zations in the international arena, saw 
its 19th outing this year. We broadcast 
the  race  live  via  the  Turkcell  Plati-
num application with exclusive foot-
age. Fifty sailboats and close to 500 
sailors  attended  the  race  that  we 
organized  in  compliance  with  pan-
demic  rules.  In  2020  we  reached  25 
million  people  through  communica-
tion activities realized through digital 
platforms  and  the  media  regarding 
the Turkcell Platinum Bosphorus Cup.

Zorlu Performance Arts Center
As part of our venue sponsorship since 
2018,  the  main  theater  stage  at  Zor-
lu  PSM  hosts  world-famous  perfor-
mances and shows under the name of 
“Turkcell  Stage”.  The  theater  stage  at 
the center welcomes art lovers as the 
“Turkcell  Platinum  Stage”.  All  cultural 
and arts events such as musicals, con-
certs and theater plays are performed 
on  stages  hosted  by  Turkcell.  Thanks 
to  our  cooperation,  Turkcell  Platinum 
customers,  who  enjoy  comfort  and 

privileges in all areas of life, have the 
opportunity to win exclusive tickets for 
Zorlu  PSM  events.  Paycell  customers 
who  buy  their  tickets  with  Turkcell’s 
new  generation  payment  platform 
Paycell Card enjoy the privilege of fol-
lowing many events at Zorlu PSM with 
discounts. We have hosted 7 hundred 
thousand  visitors  at  over  1,200  events 
since  2018.  We  have  continued  our 
support  during  the  pandemic  peri-
od,  standing  by  art  lovers  with  online 
events.

202

Turkish Federation of Traditional 
Sport Branches
The  Federation,  which  we  support  as 
the main sponsor, consists of 247 clubs 
in 64 provinces, and over 20 thousand 
athletes,  351  trainers,  1,700  referees, 
and is active in the following branches: 
equestrian, javelin, ambling, horseback 
archery,  aba  wrestling,  salwar  wres-
tling,  belt  wrestling,  traditional  sleigh, 
sleigh and kokboru. The objective is to 
successfully  showcase  our  ancestral 
sports,  especially  at  national  and  in-
ternational level, to increase their rep-
utation and secure future success; and 
we  aim  to  raise  healthy,  active  and 
successful young people in our society 
by  creating  opportunities  to  increase 
the presence of these sports branches 
specific to our culture.

Trabzonspor 5G infrastructure 
collaboration
We  signed  a  3-year  agreement  with 
Trabzonspor,  a  Super  League  club, 
starting  from  the  2019-2020  season. 
Within  the  scope  of  the  agreement, 
we  established  a  5G  infrastructure 
at  Trabzonspor’s  home  ground  in  Ak-
yazı. We delivered Turkey’s first 5G live 
broadcast from the stadium ahead of 
Trabzonspor’s  league  match  against 
Fenerbahçe. We will continue contrib-
uting  to  the  digital  transformation  of 
sports  clubs  and  sports  broadcasting 
in the upcoming period.

Turkey Athletic Talent Screening 
and Orientation to Sports Project
As  of  2018  we  have  become  the  of-
ficial  sponsor  of  the  Turkey  Athletic 
Talent  Screening  and  Orientation  to 
Sports  Project,  executed  in  collabo-
ration  with  the  Ministry  of  Youth  and 
Sports and the Ministry of National Ed-
ucation.  We  aim  for  the  participation 
of  1  million  primary  school  students 
at  3rd  grade  in  our  project  each  year. 
While  we  ensure  the  participation  of 
4 thousand students in the profession-
al  athletes  pool  annually  through  the 
project, we encourage children unable 
to enter the athletes pool, to continue 
their sports activities by directing them 
to Provincial Sports Center activities.

Sabancı Museum
Considering  culture  and  the 
arts  among  the  core  values  of 
Turkey,  we  became  the  Com-
munication  and  Technology 
sponsor  of  Sakıp  Sabancı  Mu-
seum  in  2014  to  support  and 
celebrate  the  value  created. 
We  will  continue  to  increase 
our support in this area.

GNÇ Star Music Competition
Over  2  thousand  candidates  have 
applied to the GNÇ Star Music Compe-
tition,  which  we  organized  to  support 
young  musicians.  More  than  25  thou-
sand users rated the performances of 
the competitors through the GNÇ app-
lication.  The  performances  of  the  top 
10  finalists  were  evaluated  by  celeb-
rated  artists  Ferman  Akgül  and  Fatma 
Turgut during the live broadcast on the 
GNÇ YouTube channel. 

The  digital  finale,  followed  by  hund-
reds  of  thousands  of  people,  gene-
rated  great  interest.  Famous  stars  not 
only evaluated the 10 finalists, but also 
shared memories of their own musical 
journey,  as  well  as  inspiring  stories  for 
young musicians.

2020 İşTurkcell   
Technology Meetings
We  marked  another  first  through  our 
İşTurkcell  Technology  Meetings  event. 
Held  with  the  theme  of  “How  Close 
are  You  to  the  Digital  Technologies 
that  Grow  Your  Business  in  the  Digital 
Age?”, over 1,000 people attended our 
panels  where  we  discussed  the  topic 
covering  various  businesses  and  sec-
tors. 

With our customers having the oppor-
tunity to be informed on our products 
one-to-one at our booths, an average 
of 800 visitors entered each of our bo-
oths  during  the  day,  with  200  custo-
mers participating in the game setup.

Turkcell Platinum Park
With  Turkcell  Platinum  Park,  opened 
in  2018,  we  offer  our  customers  and 
society the opportunity to escape the 
monotony of urban life. As part of the 
project realized in step with our goal 

of  happy  customers,  we  have  provi-
ded discounts and benefits to approxi-
mately  50  thousand  Turkcell  Platinum 
customers  for  off-road,  archery  and 
restaurant related use since 2018.

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Sectoral supports
As  Turkcell,  we  aim  to  be  the  pio-
neer of diverse sectors along with 
the  telecommunication  sector  it-
self, to follow innovative approach-
es  and  to  contribute  to  the  devel-
opment of the respective sectors in 
question.  In  this  context,  we  spon-
sor  many  congresses  and  confer-
ences  on  diverse  subjects  such  as 
HR  applications,  digital  marketing, 
supply  chain  management,  avia-
tion and space technologies, cyber 
security,  and  technology  solutions. 

Our sponsorships bring us together 
with various target audiences such 
as  entrepreneurs,  students,  inves-
tors, NGOs and public representa-
tives, academics, white-collar em-
ployees, and the middle and senior 
managers of corporations. In 2020, 
we  continued  to  support  activities 
carried  to  digital  platforms  due  to 
the pandemic. We had the oppor-
tunity of reaching millions of view-
ers,  and  we  convey  our  messages 
through  over  50  congresses  and 
conferences throughout the year.

Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
204

Contribution to exchanging 
knowledge and experience 
across all stakeholders
We determine the expectations 
of  our  stakeholders  as  inclusi-
vely  as  possible,  in  light  of  the 
social  groups  that  our  services 
and activities impact. We make 
a  collective  contribution  to  the 
development  of  the  technology 
sector  and  create  value  toget-
her in line with our vision of sus-
tainable  communication.  Due 
to  our  leader  position  in  digital 
transformation,  we  consistently 
exchange knowledge and infor-
mation with our stakeholders by 
collaborating  with  NGOs,  inter-
national  organizations,  startups, 
and universities.

SDG 17.16

SDG 16.7

You can access more 
information about our 
stakeholder relations in 
the interactions with our 
stakeholders section of the 
report.

United Nations Global Compact 
(UNGC)
The UNGC, with Turkcell being among 
its  first  signatories,  organized  an  on-
line  interview  event  with  the  partic-
ipation  of  academicians  and  direc-
tors  of  signatory  public  institutions, 
companies and NGOs as part of their 
20th  anniversary  activities.  Turkcell’s 
CEO  Murat  Erkan  participated  in  the 
exclusive  interview  series  organized 
on  the  occasion  of  the  20th  anniver-
sary  of  UNGC  via  the  remote  meet-
ing  solution,  BiP  Meet,  developed  by 
the  communication  and  life  platform 
BiP. He talked about how Turkcell has 
adapted  the  10  principles  of  UNGC 
to  company  policies  and  strategies, 
as  well  as  the  future  sustainability 
targets  of  Turkcell.  Furthermore,  as 
the sole Turkish representative on the 
GSMA board, our CEO also shared in-
formation  on  sectoral  developments 
in our country.

United Nations Global Compact 
CFO Taskforce
The CFO Taskforce initiative has been 
established by the UNGC, the preem-
inent  global  corporate  sustainabil-
ity  effort,  with  Turkcell  being  among 
its  founding  members.  The  initiative 
brings the worldwide CFO communi-
ty  together  within  the  framework  of 
sustainability.

You can access more 
information on the UNGC CFO 
Taskforce in the financial capital 
section of the report.

that  guide 

Being the leader and pioneer 
company in our sector and 
country through representations
GSMA
We are among the 800 GSMA mem-
ber  organizations 
the 
global  mobile  communication  sector. 
In  addition  to  sharing  Turkcell’s  na-
tional  and  international  experiences 
on  global  platforms,  we  contribute 
to the use of mobile technologies for 
social benefit and support the digital 
economy  via  mobile  platforms  and 
the  development  of  new  generation 
communication  technologies  on  the 
GSMA roadmap.

GSMA Sustainability Network
Moreover,  we  continue  our  contribu-
tion  to  the  transition  of  the  interna-
tional  telecommunication  sector  to-
wards  SDGs,  through  participation  in 
the  activities  of  the  GSMA  Sustaina-
bility  Network,  a  sub-organization  of 
the GSMA.

We were the first operator to provide 
“Sustainable  Business  Development” 
trainings  to  its  employees.  As  part  of 
the key role mobile operators play in 
the  sustainable  business  world,  we 
aim  to  advance  our  sustainability 
strategy  for  social  and  environmen-
tal  benefit,  reflecting  this  in  the  way 
business is conducted today, and en-
abling our employees to acquire new 
skills through this training. 

We were the first company in Turkey 
to  sign  the  GSMA  Accessibility  Prin-
ciples.  Additionally,  we  were  among 
the  first  8  companies  in  the  world  to 
do  so.  In  being  a  signatory  to  these 
principles,  we  pledge  to  design  and 
develop  all  Turkcell  platforms  for  our 
disabled  customers  and  employees 
according  to  globally  accepted  ac-
cessibility  standards.  As  Turkcell  we 
will  continue  to  provide  more  equal 
and accessible services and increase 
the  number  of  accessible  products 
and  solutions  with  the  assistance  of 
all Turkcell units, in the awareness that 
disabilities arise from social barriers.

Our public affairs
We  are  the  operator  with  the  most 
robust  mobile  network  operating  on 
the  widest  spectrum.  We  play  a  le-
ading  role  in  Turkey’s  technological 
transformation  with  50  thousand  ki-
lometers  of  end-to-end  fiber  infrast-
ructure and world-class data centers 
that enable us to provide superior qu-
ality  services.  We  act  in  accordance 
with the tax and legal liability related 
regulations  that  we  are  bound  by. 
With our exemplary corporate citizen 
identity, we have contributed over 44 
billion  Turkish  Liras  of  tax  and  legal 
obligations  related  payments  to  the 
public since 2015. 

Turkcell  and  Turkcell  Group  compa-
nies are subject to a great number of 
regulations,  and  our  companies  also 
deal  with  many  public  institutions  in 
line  with  their  fields  of  activity.  The 
regulatory  frameworks  that  concern 
Turkcell’s  main  field  of  activity  and 
the activities of Group companies di-
rectly  and  fundamentally  affect  the 
technical  and  commercial  operations 
of  our  companies,  as  well  as  service 
delivery,  and  the  framework  of  their 
relations with stakeholders. 

We collaborate with the relevant ins-
titutions  in  the  consultation,  develop-
ment,  and  implementation  processes 
of  these  regulations.  As  Turkcell,  we 
closely  follow  all  legislative  initiati-
ves  that  concern  our  field  of  activity. 
By  analyzing  the  regulations  in  terms 
of  legal,  technical,  commercial,  ope-
rational,  and  economic  aspects,  we 
communicate  our  opinions  and  sug-
gestions  to  the  public.  Moreover,  we 
closely  follow  legislative  works  car-
ried  out  by  relevant  public  instituti-
ons  and  organizations,  and  disclosed 
for  public  opinion  within  the  relevant 
NGOs,  and  contribute  to  the  shaping 
of regulations through position papers 
prepared accordingly.  SDG 16.7

SDG 17.16

Business Council for Sustainable 
Development Turkey (BCSD Turkey)
The  Business  Council  for  Sustainable 
Development  Turkey  (BCSD  Turkey), 
the  regional  partner  and  part  of  the 
World  Business  Council  for  Sustaina-
ble Development (WBCSD), exchang-
es its sustainability experience among 
members  on 
various  platforms 
through working group activities. 

As  part  of  our  collaboration  with  the 
foundation,  we  set  our  initial  activity 
areas  as  circular  economy,  sustain-
able  finance,  the  future  of  business 
with technology, net-zero carbon and 
women  employment.  In  this  context, 
Korhan Bilek, on the finance side and 
Erkin Kılınç, the CEO of Turkcell Enerji 
represent  our  Company  on  this  plat-
form.  As  part  of  the  foundation’s  ac-
tivities, we are a member of the Tur-
key Materials Marketplace and a sig-
natory  to  IPG  (Business World  Plastic 
Initiative).  As  a  signatory  to  IPG,  our 
commitment  to  reducing  the  use  of 
plastics is ongoing.

Mobile Telecommunications 
Operators Association (m-TOD)
The Mobile Telecommunication Oper-
ators  Association  was  established  in 
June 2016 by the three authorized op-
erators of the sector to create activ-
ity  areas  for  the  solution  of  common 
problems, and to take initiatives at all 
stakeholder levels to implement those 
solutions. With the platform, of which 
Turkcell is among the founding mem-
bers, we aim to directly contribute to 
pioneering  an  ethical,  proactive,  and 
competitive mindset in the Turkish tel-
ecommunication services sector.

You can access the details of 
other national and international 
sector representations in the 
measuring the created value 
section, Appendix-2: National 
and international organizations 
and non-governmental 
organizations and Appendix-3: 
Our Board of Directors 
memberships.

2020 Ambassadors 
Summit
12th  Ambassadors  Con-
The 
ference,  which  this  year  took 
place in the digital environment 
as a COVID-19 precaution, was 
held  on  the  video  conference 
platform  BiP  Meet,  developed 
by  Turkcell  engineers.  Turkey’s 
President  Recep  Tayyip  Erdo-
ğan  met  with  ambassadors 
serving  at  149  locations  abro-
ad  at  the  12th  Ambassadors 
Conference  organized  by  the 
Presidency  of  Turkey  and  the 
Ministry  of  Foreign  Affairs  un-
der  the  auspices  of  the  Digital 
Transformation Office.

You can access the details of 
2020’s significant legal and 
regulative developments in the 
company and sector developments 
section of the report.

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Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
206

Public health
We  manage  the  effects  of  our 
products and services on public 
health  by  setting  limits  below 
those  set  by  the  International 
Commission  on  Non-Ionizing 
Radiation  Protection 
(ICNIRP), 
authorized by the World Health 
Organization, 
in  accordance 
with  national  and  international 
regulations.

You  can  access  more  informa-
tion  about  the  effects  of  our 
base  stations  on  public  health 
in our manufactured capital se-
ction of the report.

With  the  Hospital  Information 
Management  System  we  cont-
ribute  to  the  digital  transfor-
mation processes of smart city 
hospitals,  thus  supporting  the 
technological  development  of 
public health.

You can find detailed 
information about our 
contribution to the digital 
transformation process of our 
city hospitals in our intellectual 
capital section of the report.

The  changing  dynamics  of  our  age 
come  with  a  transformation  of  pub-
lic  services  expectations  and  un-
derstanding.  The  public  institutions, 
whose primary mission is to improve 
the quality of life in our country, work 
to enhance sustainable service qual-
ity  with  a  citizen-oriented  approach, 
while striving to fulfil this duty at op-
timal cost.

We are aware of the leveraging role 
of  digital  transformation  and  tech-

nology in this transition. It is now pos-
sible to create a cleaner, more trans-
parent,  and  more  interactive  world 
thanks  to  the  proliferation  of  tech-
nologies including smart devices and 
broadband  internet.  Indeed,  for  this 
very  reason,  Turkcell  has  embarked 
on  a  journey  to  build  smart  cities 
and  smart  municipalities  and  enable 
smart lives with all public bodies and 
directors on the basis of its Real-Time 
Installation  approach,  robust  infra-
structure, and end-to-end solutions.

Turkey’s Automobile Joint 
Venture Group Inc. - TOGG
Turkey’s  Automobile  Joint  Ven-
ture Group Inc. (TOGG) was es-
tablished on June 25, 2018 with-
in  the  framework  of  Turkey’s 
Automobile Project implement-
ed  through  the  coordination  of 
the  Republic  of  Turkey  Ministry 
of 
Industry  and  Technology 
and  the  Union  of  Chambers 
and  Commodity  Exchanges  of 
Turkey.  As  one  of  the  founding 
partners  of  this  company  with 
a  19%  shareholding,  we  aim  to 
be  involved  in  fields  of  great 
potential  such  as  connected 
vehicles, smart cities, and intel-
ligent transportation.

Transparent and proactive 
investor relations
As  part  of  Turkcell  Investor  Re-
lations, we list our fundamental 
working  principles  as  accessi-
bility,  rapid  feedback  to  stake-
holders,  and  the  transparent, 
consistent  and  timely  informa-
tion  provision.  In  accurately  in-
troducing  Turkcell  to  our  inves-
tors, and analyzing our business 
model,  risks  and  opportunities, 
we  aim  to  establish  a  trans-
parent  and  proactive  investor 
relations  management  with  a 
focus  on  making  a  difference 
by mastering Turkcell strategies 
and  effectively  communicating 
them to investors.

You can access more 
information about TOGG in our 
intellectual capital section of the 
report.

You can find more information 
on Turkcell’s transparent and 
effective investor relations 
management in our financial 
capital section of the report.

Value oriented, responsible 
supply chain management

The number of 
companies starting to 
integrate competitive 
and beneficial 
practices in supply 
chain sustainability into 
their working methods 
to effectively manage 
the impacts of their 
business models has 
been rising rapidly over 
recent years. Within 
the framework of our 
value creation principle, 
we re-evaluate each 
stage in our supply 
chain management 
starting from the 
materials we use, 
including the activities 
and practices of each 
company in our supply 
chain. We classify our 
supply chain resources 
as information, 
material, financial and 
workforce resources, 
and undertake the 
management of each 
resource meticulously. 
To make our national 
and international 
supply network as 
agile, flexible, and 
sustainable as our 
direct operations, 
we restructure 
our main business 
processes, logistics 
and technologies with 
a holistic approach, 
supported by our 
suppliers.

We  ensure  the  seamless  delivery  of 
our  ethical,  fair,  and  honest  business 
practices  with  every  firm  we  work 
with  in  our  supply  chain  through  our 
policies  and  contracts.  We  sign  a 
framework  agreement  with  every 
firm  we  work  with  and  give  impor-
tance  to  compliance  with  the  princi-
ple of opposing forced or compulsory 
labor,  as  well  as  issues  such  as  em-
ployee  rights  and  prevention  of  child 
labor.  Within  the  scope  of  the  child 
labor clause in our framework agree-
ments,  we  ensure  that  our  suppliers 
comply with the rule stating that “The 
company  should  not  use  child  labor. 
Unless  a  higher  age  limit  is  specified 
in  local  laws,  no  one  under  the  age 
of  15  who  has  not  completed  com-
pulsory  education  (within  the  scope 
of  International  Labor  Organization 
(ILO)  convention  No.  138)  ought  to 
be  employed.  Employees  below  the 
age  of  18  should  not  be  employed  in 
jobs  that  pose  danger,  or  in  night-
shift  jobs  in  order  to  meet  their  ed-
ucational needs”. We also ensure the 
ethical  management  of  our  business 
processes  in  line  with  the  rule  that 
“No  employees  ought  to  be  forced 
to work in any situation. This require-
ment includes the forced prison labor, 
labor  in  exchange  of  debt  with  high 
interest,  or  other  forms  of  forced  la-
bor”  clause  to  prevent  forced  labor. 
Should any supplier violate the frame-
work  agreement  and  fail  to  comply 
with the requirements of the clauses, 
we act according to the relevant legal 
clause.

We expect our suppliers to respect all 
employer-employee  relations  with-
in  the  framework  of  respecting  em-
ployee  rights,  as  part  of  our  Code  of 
Ethics  and  our  Policy  of  combatting 
Bribery  and  Corruption  as  published 
on  the  Turkcell  Supplier  Portal  and 
agreed upon by our suppliers.

SDG 8.7, 8.8

SDG 16.5, 16.6

Given that our services directly touch 
people’s  lives,  potential  service  dis-
ruptions  can  directly  impact  the  vital 
needs of our society such as commu-
nication,  health,  and  security.  There-
fore, the products and services offered 
to our customers by our suppliers hold 
utmost importance. We determine all 
the suppliers we work with on the ba-
sis of mutual trust, along with criteria 
such  as  quality-price  balance,  past 
performance,  market  conditions,  and 
references. We prioritize those suppli-
er  candidates  with  quality  manage-
ment  and  information  security  man-
agement  certification,  who  are  sen-
sitive  to  the  ecological  balance,  and 
who  work  within  the  scope  of  social 
responsibility principles, together with 
other basic criteria.

We classify our suppliers according to 
the Kraljic Matrix, according to which 
we  evaluate  those  with  a  purchase 
volume  of  above  a  certain  amount 
through a survey on quality, and com-
mercial as well as operational issues. 
According to the evaluation results, we 
take actions such as terminating work 
with  the  supplier,  implementation  of 
supplier  improvement  measures,  or 
rewarding  the  supplier.  In  our  val-
ue-oriented, responsible supply chain 
practices, we evaluate the complaint 
processes  as  per  contract  articles,  in 
line  with  the  general  customer  com-
munication  channels,  or  feedback 
from  the  business  units,  swiftly  tak-
ing remedial actions. Through regular 
assessments and audits, we evaluate 
the  compliance  of  our  suppliers  and 
report  them  to  our  Senior  Manage-
ment.  In  2020,  there  were  no  cases 
indicating  that  our  supply  chain  and 
suppliers  had  caused  a  negative  en-
vironmental  or  social  impact,  or  else 
could have a potentially negative one.

As  Turkcell  Group,  we  consider  our 
purchasing  management  structure 
under  4  main  categories  namely; 

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Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
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strategy,  people,  process,  and  prac-
tice.  In  all  our  purchasing  processes, 
we  carry  out  our  activities  with  a 
transparent  approach  towards  our 
stakeholders,  considering  ethical,  an-
ti-corruption,  and  social  contribution 
aspects.  National  and  international 
standards are our compass in making 
our  purchasing  processes  completely 
transparent. We conduct our purchas-
ing processes in accordance with the 
following rules and standards:

• Sarbanes-Oxley Act (SOX)

• Security Exchange Commission 

(SEC) Regulations

• Foreign Corrupt Practices Act   

 (FCPA)

• Capital Markets Board (CMB)   

 Regulations

• Information and Communications   

 Technology Authority (ICTA)   
 Regulations

• Liabilities regarding the Turkish  

 Code of Commerce (TTK)

• Liabilities regarding the Turkish  

 Penal Code (TCK)

• Liabilities regarding the Turkish Tax  

 Legislation

• ISO 9001 Quality Management  

 System and ISO 27001 Information   
 Security Management System

• Customs Law No. 4458 and Free  

 Zones Legislation

• Liabilities regarding other countries  

 that we operate in (Ukraine,  
 Belarus, TRNC)

In managing our purchasing process-
es,  we  adopt  cost  analysis  and  dy-
namic working principles. 

When assessing 
purchasing processes, 
we prioritize those 
practices that allow us 
to save on costs and 
use the integrating 
power of technology.

The interactions of our 
social values and relations 
with other capitals

Our social values that shape the 
way we do business and our 
relationships with our stakeholders 
are among our most significant 
capitals that guide all other capital 
components and contribute to 
the strong Turkcell image. Our 
social values and relations reflect 
in our communications, which 
increases Turkcell’s brand value 
and reputation. Accordingly, we 
realize the vision and mission 
underpinning our various capitals 
through our statements such 
as “Turkey’s data should remain 
in Turkey”, “Turkey’s robust 
infrastructure”, and “Mobile internet 
at Fiber Speed”. We support our 
robust financial capital through 
high customer satisfaction and 
loyalty. And with the awareness 
of being a good corporate citizen, 
our solid relations with employees, 
the public, our suppliers and our 
society form the cornerstone of 
our Turkcell identity, which creates 
value for the long run.

Localization efforts
In terms of supporting domestic and 
national digital transformation, nurtur-
ing Turkey’s entrepreneurship ecosys-
tem, and contributing to sustainability; 
we carry out Category Localization 
Activities, Supplier Relations, Tek-
nokent Relations and Entrepreneur 
Assistance Programs (My Great 
Partner Program), the efforts of At-
tracting Global Investment to Turkey, 
the activities of the Trade Attaché, 
and all Intra-Company Stakeholder 
Coordination activities. Localization 
efforts are critical for Turkcell, being 
directly related to our relations with 
the Local Ecosystem and the ICTA. 
In April 2020, we began to work on 
the “Turkcell Localization Program” 
aimed at running and following-up 
processes under a single roof, with 
the direct guidance of our Chairman 
and the CEO. The main categories 
to be followed in the short, medium 
and long-term have been designated, 
with localization potential noted at 
meetings held at senior management 
level. The studies carried out on the 

In 2020, we updated our standard 
purchasing  processes  to  support 
startup  companies.  Our  Domestic 
and  National  Industrial  Relations 
team  visited  techno  parks,  pro-
moted our new purchasing model 
and encouraged the ecosystem to 
participate in the processes. 

design of localization methodologies 
for these categories involve expert 
teams considering both demand and 
purchasing aspects.

SDG 9.B

Our localization 
framework ensures that 
purchased products 
are produced in 
Turkey and purchased 
services are delivered 
by a local workforce. 
The localization rate 
of our main suppliers, 
which corresponds to 
approximately 90% 
of our total purchase 
volume, has been 
realized at 36.1% in 
2020.

As  of  the  end  of  November  2020, 
with  the  My  Great  Partner  Pro-
gram  we  have  generated  a  pur-
chase  volume  of  TRY14.7  million 
with 30 companies affiliated to 17 
techno parks across 10 provinces.

Number of startups working with the cooperation model

2019

2020

Short-term target

Mid-term target

6

30

30

40

Supplier Oriented Innovation Projects
The Supplier Oriented Innovation (SOI) 
is a program encouraging suppliers to 
leverage  their  innovative  potential  for 
company  benefit.  Turkcell  currently 
works  with  1,500  suppliers  and  has  a 
total of 5 thousand suppliers managed 
within  its  ecosystem.  These  suppliers 
serving  Turkcell  also  provide  similar 
services  to  many  different  companies 
on  a  local  and  global  scale.  Suppliers 
can  be  informed  firsthand  of  any  in-
novative  development  in  their  field  of 
work at the companies they serve. 

At  the  same  time,  suppliers  are  able 
to  notice  the  differences  in  business 
practice  among  different  companies 
to  which  they  provide  the  same  ser-
vice,  and  thus  assess  the  efficiencies 
as well as inefficiencies regarding that 
business.  The  SOI  program  aims  at 
being  informed  of  global  innovations 
in those fields in which we work with 
suppliers, and to evaluate the potential 
for suppliers to access innovations.

To encourage 
innovation, additional 
rights and advantages 
are given to suppliers 
and our employees 
who work in innovative 
project teams. The 
projects were evaluated 
by the Committees 
established at the Vice-
Presidential level. A total 
of 47 ideas had been 
submitted by the end 
of 2020. Seven ideas 
were brought to the 
committee, 6 of which 
were implemented.

TURKCELL INTEGRATED ANNUAL REPORT 2020

209

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Our social values and relationsTURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural 
capital

215

Climate crisis management

219

Energy management

220 

Renewable energy

212

Natural capital

Natural capital

Inputs

Outputs

Value created

Natural resources management
• Energy efﬁciency
• Efﬁcient resource use
• Waste management and circular 

economy

• Using IoT applications to increase 

natural resource efﬁciency

Renewable energy investments  
and project
• Turkcell Energy investments 
• TRNC Solar Power Plant
• Portable Solar Field Project
• Solar panel installations on roofs

19,409.38
t CO2e
Scope 1 emissions

6.5 tons

of electronic waste 
recovered with 
Recycle into 
Education

0.2% 

renewable energy share
in energy consumption

Outputs

63,699.52
t CO2e
Scope 3 emissions

1.6 million

kWh installed total
renewable energy 
power

440,938.58
t CO2e
Scope 2 emissions

165.5 million

kWh savings with 
energy saving 
practices

154,057 m3

annual total water 
consumption

Renewable electricity consumption ratio

Annual energy savings

Responsible use of resources

Improving carbon performance
• Reduced Scope 3 emissions with remote working

Contribution to reducing the environmental impact 
of customers
• Carbon emissions per petabyte

Financial value created through sustainability activities

Rising energy and resource consumption due to 
Turkcell’s growing operations

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

213

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214

Fight against climate change 
and effective energy management

We plan the use of 
our natural capital 
by considering the 
balance of the 
natural ecosystem 
and the needs of 
future generations, 
aiming at the effective 
management of 
our environmental 
performance. 
We take various 
initiatives to reduce 
the environmental 
impact of our 
operational activities 
while improving our 
business processes 
in accordance with 
sustainable innovation 
principles. We include 
our employees 
and their families, 
suppliers, investors, 
and customers in this 
process.

Fight against climate 
change and effective 
energy management

Our  senior  management, 
having  adopted  the  fight 
against climate change as 
one  of  its  agenda  items, 
holds  the  responsibility  of 
supervising  our  sustaina-
bility  activities,  which  we 
carry  out  in  accordance 
with Sustainable Develop-
ment  Goals  and  integrate 
into our operations. 

While  conducting  our  op-
erations,  our  thinking  is  to 
implement  new  projects 
that minimize our environ-
mental impact, create na-
ture friendly business pro-
cesses, train employees on 
environmental  awareness, 
technologies, 
use  clean 
offer  solutions  to  custom-
ers  and  other  stakehold-
ers for a more sustainable 
life,  conduct  research  into 
environmentally-friendly 
products and services and 
conserve  the  ecological 
environment. 

We  adopt  an  approach 
that focuses on the effec-
tive use of natural resourc-
es across our value chain, 
utilizing renewable energy 
resources  as  part  of  effi-
cient energy management 
practice.

Our business model and sustainability 
strategy  aim  to  transform  our  use  of 
natural resources into social and eco-
nomic value, prioritizing the manage-
ment of environmental impacts during 
this  transformation.  We  focus  on  un-
derstanding, managing, and reducing 
our  impacts,  aware  of  the  close  re-
lationship  between  our  business  and 
natural  capital.  As  Turkcell,  we  strive 
for  the  sustainable  management  of 
our  operations,  increasing  efficien-
cy  and  maximizing  the  value  gained 
from  our  natural  capital.  We  comply 
with  national  environmental  regula-
tions.  In  2020,  there  were  no  filings 
against Turkcell by regulatory and su-
pervisory bodies with respect to leg-
islative misconducts, or complaints in 
relation to environmental issues.

COVID-19 note
With  the  spread  of  the  CO-
VID-19  pandemic,  the  Turkcell 
family  switched  to  a  remote 
working  model.  Subsequently, 
we  observed  that  this  model 
had  various  impacts  on  ener-
gy  use  both  in  the  short-  and 
long-term.  Although  the  long-
term  effects  of  remote  wor-
king on energy use and carbon 
emissions  are  still  uncerta-
in,  during  this  period  we  had 
the  opportunity  to  reduce  our 
emissions as energy consump-
tion in our offices declined and 
our  business  travels  were  limi-
ted  in  scope.  The  rising  use  of 
online  platforms  that  we  have 
developed, such as Paycell, has 
enabled  significant  savings  in 
resource consumption.

In  2020,  our  Company  organized 
competitions  with  awards  for  en-
its 
vironmental  friendliness  among 
employees  in  light  of  sustainabili-
ty  improvements  in  current  business 
practices.  In  addition,  a  business  unit 
focused  on  sustainability  was  estab-
lished  with  KPIs  related  to  corporate 
sustainability assigned to its employ-
ees.  In  2021,  a  target  including  ESG 
issues  was  added  to  our  Company’s 
business  goals,  and  a  methodology 
was created using ESG parameters to 
assess employee performance.

it 

impact, 

While  Turkcell  reports  processes  of 
environmental 
includes 
those  elements  of  indirect  environ-
mental impact in various reports (ISO 
14064  Greenhouse  Gas  Calculation 
and  Verification  Management  Sys-
tem - CDP Climate Change Reporting 
etc.).  It  develops  projects  and  good 
practices  for  those  indirect  impacts. 
It  has  developed  various  projects  re-
lated  to  customers’  electronic  waste, 
or employee waste. In 2021 it has for-
mulated  plans  to  report  the  emission 
items  not  reported  within  Scope  3 
emissions in the upcoming periods. 

Turkcell  purchased  carbon  credits  to 
offset  carbon  emissions  caused  by 

Activity

Heating (natural gas)

Generator (diesel)

Fleet cars (gasoline + diesel)

Refrigerant gas filling*

Fire extinguisher refilling

Purchased electricity

the  printing  of  the  2020  integrated 
annual report. Details of the offsetting 
process can be followed using the QR 
code on the back cover of our report.

Climate crisis management 
Emissions management
In order to manage the climate crisis 
effectively, the monitoring and report-
ing  of  our  greenhouse  gas  emissions 
generated as a result of our activities 
are  among  our  main  environmental 
priorities.  In  this  regard,  as  the  first 
mobile  operator  in  Turkey  we  fulfill 
our  responsibilities  with  ISO  14064-1 
Corporate  Greenhouse  Gas  Emis-
sions  Calculation  and  Reporting  Cer-
tification.  We  monitor  our  Scope  1, 
Scope 2 and Scope 3 greenhouse gas 
emissions resulting from our activities 
through  calculations  made  using  the 
IPCC Tier 1 and Tier 2 (electricity) ap-
proach,  covering  CO2,  CH4,  N2O  and 
HFC  gases.  In  our  ISO  14064  Calcu-
lation  and  Reporting  of  Greenhouse 
Gas  Emissions  audits,  we  include  the 
use  of  personnel  shuttles  within  the 
scope  of  our  direct  and  indirect  en-
ergy  consumption  and  other  indirect 
emissions,  as  well  as  waste  gener-
ated,  transmission  and  distribution 
losses  in  the  electricity  network,  our 
logistics  operations,  and  emissions 

arising from the production of energy 
that we consume.

As  the  first  mobile  operator  to  hold 
ISO  50001  and  ISO  14064  certifica-
tion,  we  strive  to  have  all  ESG  pro-
cesses  verified  by  independent  third 
parties.

Regarding  the  reporting  of  our  emis-
sions,  we  receive  external  audits  in 
every  reporting  period  from  an  inde-
pendent party for our Scope 1, 2 and 
3  greenhouse  gas  emissions  as  per 
ISO  14064  requirements.  In  addition, 
since 2014 we have annually reported 
our  emissions  transparently  through 
the  CDP  Climate  Change  Program  to 
meet  the  information  requirements 
of  our  stakeholders.  Our  base  year 
for  greenhouse  gas  emission  calcu-
lation  is  determined  as  2016  in  terms 
of  data  integrity  and  consistency  of 
scope. It is determined that 2016 was 
the most appropriate year for Turkcell, 
where  direct  and  indirect  emissions 
are  comprehensively  monitored,  and 
where data is compliant with the re-
quirements  and  completeness  princi-
ple. There is no activity related to the 
burning of biomass within our opera-
tional boundary.

Scope

t CO2e

Scope 1

19,409.38

Consumption 
amount

545,182

1,865,001.95

1,626,596

3.2056

0.9552

Unit

Sm3

lt

lt

ton

ton

865,100,351.53

kWh

Purchased natural gas (central heating)

467,542

Sm3

Scope 2

440,938.58

Heating and backup power generation (generator)

Personnel shuttles

Waste generated

Logistics

Production of consumed energy (gasoline + diesel)

Production of consumed energy (natural gas)

1,288,100

375,048.23

lt

lt

3,647.38

ton

323,578

3,491,597.95

lt

lt

545,182

Sm3

Electric transmission and distribution losses**

865,100,351.78

kWh

  * Our refrigerant types are R410A, R134A, R22 and R407C. 
** Calculated proportionally using the total purchased electricity amount.

Scope 3

63,699.52

215

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Natural capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
216

Natural capital

We  also  take  innovative  steps 
in  sustainable 
finance.  With 
the  “Sustainability  Linked  Loan” 
agreement signed with BNP Par-
ibas and the “Green Loan Agree-
ment”  signed  with  ING  in  2020, 
we  expand  our  sustainability 
approach  to  financing  activities. 
With the utilization of these sus-
tainable  loans,  we  fulfill  our  en-
vironmental responsibilities while 
reducing our financing costs.

Total greenhouse gas emissions* (t CO2e)

2018

2019

2020

54,453

108,025

19,409

384,341

383,988

440,938

65,607

80,627

63,699

Scope 1

Scope 2

Scope 3

You may find the details of our 
sustainable financing activities 
in the financial capital section of 
the report.

In 2020, 31 million downloa-
ds were made on our Dergi-
lik  application  that  enables 
access  to  newspapers  and 
magazines  via  a  single  digital  plat-
form. Based on the number of pages 
of  an  average  publication,  the  total 
number  of  pages  accessed  by  the-
se  downloads  is  560  million.  Thus,  in 
2020,  Dergilik  users  preserved  close 
to 152 thousand trees, supporting the 
reduction  of  carbon  emissions.  We 
expect the positive environmental im-
pact  we  create  through  the  Dergilik 
application  to  continue  growing  with 
the rising use of digital publishing. 

The  “Turkcell  Kopilot”  app-
lication  offers  a  new  di-
mension  to  the  car  driving 
experience  with  superior 
features. It indirectly leads to a redu-
ction in gas consumption through the 
analysis  of  gas  usage,  the  route  ta-
ken, and the driver. With this applica-
tion we help companies manage their 
fleet with an environmentally-friendly 
approach.

* External verification was completed on 24.02.2021 as per ISO 14064-3 Standard by TSI. You can access 
the certification via the link.

The  Turkcell  greenhouse  gas  emissions  intensity  ratio  for  2020,  including  Direct 
(Scope 1) and Energy Indirect (Scope 2) Emissions was calculated as 143.59 ton 
CO2e/Petabyte.  The  intensity  metric  for  GHG  emissions  intensity  is  defined  as 
“2020 Turkcell Turkey’s emission per petabyte”. 

Carbon emission per petabyte* (t CO2e)

306.41
2018

239.79
2019

143.59
2020

*The  ratio  of  total  Scope  1  and  Scope  2  carbon  emissions  to  mobile  network 
data traffic (Superonline carbon emissions and Scope 3 emissions is excluded.)

We  developed  a  biometric  signature 
practice  for  contracts  signed  with 
landlords  as  part  of  the  field  rental 
process.  We  adopted  a  digital  con-
tract  management  system  allowing 
end-to-end digital data entry instead 
of  a  process  based  on  physical  ex-
change  of  contracts,  which  reduced 
the  number  of  required  steps  from 
13  to  5.  We  can  now  complete  the 
field  rental  process,  which  previously 
took  3-10  days,  in  a  single  day.  With 

the  adoption  of  this  new  practice,  to 
date 1,075 contracts have been signed 
with biometric signature, thus leading 
to savings on paper consumption, ar-
chiving, cargo, and fuel costs.

Having  preferred  hybrid  vehicles  over 
diesel  vehicles  in  our  company  car 
fleet,  we  aim  to  achieve  a  35  to  40 
gram lower CO2 emission per kilome-
ter.  Accordingly,  we  target  preventing 
approximately  960  tons  of  CO2  emis-
sions annually.

We  develop  our  sustainability  strat-
egy  and  goals  by  taking  climate 
change scenarios and SDGs into con-
sideration.  Reflecting  our  recently  set 
goal  of  becoming  a  carbon  neutral 
company by 2050, we determine car-
bon  price  based  on  offers  collected 
from our solution partners in the mar-
ket  to  offset  the  emissions  from  our 
operations.  The  unit  price  of  carbon 
varies  between  EUR0.5  and  EUR1  per 
ton.  In the upcoming periods, we plan 
to  create  an  internal  carbon  pricing 
plan  to  offset  some  of  our  Scope  3 
emissions.  Within  the  scope  of  this 
plan, we aim to offset carbon in areas 
such as business travel and corporate 
communication  events.  Meanwhile, 
we aim to raise employee awareness 
of the impact of our activities, and ex-
pect it to trigger behavioral change.

Water management 
We attach importance to responsible 
water  consumption  within  the  scope 
of  our  activities,  with  water  being 
among the most vital natural resourc-
es.  As  part  of  our  exemplary  corpo-
rate  citizenship  approach,  we  take 
steps  to  reduce  our  water  consump-
tion  through  sustainable  water  man-
agement,  which  we  hold  among  our 
leading environmental responsibilities. 

Although water is not a resource that 
we  directly  use  in  developing  our 
products and services, as a responsi-
ble company in terms of resource use, 
we disclose the amount of water we 
use through our annual disclosures.

Our  water  demand  arises  from  the 
daily  general  water  use  of  our  em-
ployees  at  the  locations  where  we 
conduct  our  operations.  In  our  Data 
Centers,  we  reuse  rainwater  as  gray 
water (in toilets and urinals) with var-
ious  filtering  processes.  We  continue 
our  efforts  to  recycle  and  reuse  our 
wastewater.

Total water consumption (municipal water)

105,958 m3
2018

236,357 m3
2019

154,057 m3
2020

While  we  strive  to  improve  the 
water  performance  within  our 
operations,  we  also  support  our 
customers in managing their wa-
ter consumption with the solutions 
we offer. Our Smart Water Meter 
platform  solution,  which  allows 
meters  to  be  read  and  valves  to 
be  opened/closed  remotely  lev-
eraging  IoT  technologies,  helps 
control  water  consumption,  en-
abling  instant  monitoring  of  wa-
ter use and protection of natural 
resources.  We  offer  our  “Filiz” 
application to farmers in order to 
protect  scarce  water  resources 
and  support  sustainable  agricul-
tural  activities.  “Filiz”  communi-
cates critical information such as 
plant  development,  water  need 

and  disease  risk  to  farmers,  en-
abling  them  to  take  necessary 
measures.  “Filiz”  collects  this  in-
formation  by  monitoring  various 
soil  and  air  parameters  through 
sensors  and  incorporating  them 
into  algorithms  created  with  ar-
tificial  intelligence.  “Filiz”  is  also 
noteworthy for its ability to reach 
agricultural  engineers 
through 
digital  channels.  Almost  half  of 
the farmers in Turkey lack access 
to  technical  support.  In  this  re-
gard, we enable access to tech-
nical  information  for  those  who 
need  it,  through  digital  channels. 
Integrating 
these  capabilities 
with technology, we support sus-
tainable agriculture.

Waste management
We manage waste resulting from our 
operations and activities by selecting 
appropriate  methods  and  technolo-
gies. Having adopted the approach of 
generating  minimum  waste  and  and 
maximum  recycling,  we  conduct  our 
processes in full compliance with rele-
vant regulations through our contract-
ed waste management company.

SDG 12.2

As part of our activities, we integrate 
systems that reduce waste generation 
and  the  use  of  natural  resources  into 
our  operations.  Furthermore,  we  sort 
waste,  the  generation  of  which  we 
cannot  prevent,  at  its  source  and  im-
plement recycling measures.

We  develop  practices  to  reduce  the 
consumption of materials such as pa-
per  and  toner  in  our  office  buildings, 
and  sort  all  types  of  waste  such  as 
paper, plastic, and domestic waste at 
their source. We send sorted waste to 
recycling  facilities  as  part  of  our  co-
operation  with  municipalities  and  re-
spective authorities.

We collect batteries in waste battery 
containers  and  deliver  them  to  mu-
nicipalities  and  TAP  (Portable  Battery 
Manufacturers  and  Importers  Associ-
ation) for recycling.

As part of Turkey’s Zero Waste Project 
launched  nationwide,  we  have  car-
ried  out  activities  since  2018  to  limit 
waste generation. 

TURKCELL INTEGRATED ANNUAL REPORT 2020

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218

Having  established  a  Waste  Man-
agement Center at our headquarters, 
solid  food  waste  collected  from  our 
cafeteria and office floors is recycled 
by compost machine and turned into 
organic soil fertilizer.

We are proud to be 
the first company 
in Turkey to have 
implemented Zero 
Waste Project, 
even though we 
don’t engage in 
manufacturing 
activities.

Waste generated from our office activities (ton)

Type of waste

Domestic waste

Waste oil

Paper

Medical waste*

Batteries*

Electronic waste*, **

  * Hazardous waste

** Being reported as of 2019.

2018

1,249

15.4

84.6

0.243

2.36

N/A

2019

1,286

15.5

83.61

0.261

0.68

0.24

2020

617

11

33

0.08

0.249

0.35

In order to prevent waste oil from mix-
ing with domestic wastewater, we use 
oil  trap  systems.  We  dispose  of  haz-
ardous waste such as batteries, toner, 
electronics,  cables,  and  consumables 
resulting  from  our  operations  through 
licensed  recycling  companies  having 
the  required  competency  within  the 
regulatory  framework.  Thus,  we  pre-
vent hazardous waste from interacting 
with the environment.

Within  the  scope  of  product  reuse, 
we  sell  secondhand  devices  as  well 
as other types of scrap to companies 
using  older  technologies.  We  aim  to 
revalue 100% of network infrastructure 
devices  as  part  of  such  sales.  Hence, 
we contribute to the circular economy 
system,  which  ensures  that  resources 
are not redundantly extracted or wast-
ed, but recovered for reuse. As part of 

the Modem Renewal Project launched 
in  2019,  we  renew  or  repair  modem 
products no longer used by customers 
and make them ready for reuse. Within 
the  scope  of  this  project,  152,024  set-
top boxes (STB), 63,303 Superbox prod-
ucts, 108,368 optical network terminals 
(ONT)  and  404,431  modems  were  re-
newed  in  2020.  Thirty  three  percent 
(approximately  188  thousand)  of  the 
fiber  modems  used 
(approximately 
569 thousand) and 60% (approximate-
ly 154 thousand) of the ADSL modems 
(approximately  259  thousand)  used 
in  2020  were  sourced  from  modems 
renewed  within  the  year.  In  addition, 
80% of the renewed STBs, 100% of the 
ONTs (installed upon determination of 
the functionality of ONT products) and 
60%  of  the  Superboxes  were  used  in 
the  same  year  and  brought  into  the 
service of our customers.

SDG 12.2

Secondhand sales and scrap sales volume* (ton)

5,253.25 tons
2018

5,599.89 tons
2019

4,220.18 tons
2020

* 100% revaluation of network related waste as scrap or second hand is aimed at.

We  are  well  aware  of  the  adverse 
impact  of  electronic  waste  on  the 
ecosystem  if  not  properly  managed. 
Hence,  we  carry  out  our  activities  in 
this  field  with  the  utmost  care.  In  or-
der to convert risk into opportunity, we 

utilize products classified as electronic 
waste, yet that include rich raw mate-
rials  and  materials  suitable  for  reuse, 
as  part  of  circular  economy,  thereby 
achieving  financial  savings  and  effi-
cient use of limited resources.

We  started  the  “Recycle  into 
Education”  project,  which  is  an 
electronic waste recycling cam-
paign  in  Turkey,  in  cooperation 
with  “TÜBİSAD  (Informatics  In-
dustry  Association)”.  Unused 
electronic  devices  that  have 
become  waste  are  collected 
at  Turkcell  stores  in  “electron-
ic  waste”  boxes.  The  proceeds 
derived  from  the  sale  of  these 
products were donated to TEGV 
(Turkey  Education  Volunteers 
Foundation)  in  previous  years. 
Starting  with  the  new  school 
year, we began to donate these 
proceeds  to  the  children  of 
healthcare  professionals,  who 
lost  their  lives  during  the  pan-
demic,  through  the  KAHEV  (Fe-
male  Doctors  Education  Sup-
port  Foundation).  We  recycled 
nearly  6.5  tons  of  electronic 
waste in 2020.

As  part  of  the  project,  we  also 
recycle  the  electronic  waste  of 
our employees. With this project, 
we not only aim to contribute to 
the transformation in education, 
but also raise awareness of the 
pollution  caused  by  electronic 
waste  and  its  potential  for  re-
cycling. We also continue inten-
sive campaign communications 
to  raise  awareness  of  the  pro-
ject among all our stakeholders.

SDG 12.2

You may find information 
about the social benefit we 
create through our Recycle into 
Education project in our social 
values and relationships chapter.

With  the  environmentally-friend-
ly  invoice  subscription,  which  we 
established  through  the  Telesales 
channel,  we  reduce  our  printing 
and  delivery  costs,  while  signif-
icantly  reducing  our  paper  con-
sumption and related environmen-
tal impact.

We carry out all transactions from 
new  subscription  to  tariff  chang-
es,  and  from  buying  a  new  SIM 
card  to  settling  invoices  at  Turk-
cell  stores  with  a  digital  signature 
on  a  tablet  in  just  seconds.  Digital 
signature also makes it possible to 
subscribe  to  services  that  require 
at-home  installation  for  our  cus-
tomers such as DSL, Superbox and 

TV+.  We  expect  to  reduce  paper 
consumption by 30% while digitiz-
ing  approximately  11  million  pages 
of documents annually with digital 
signature.  Meanwhile,  we  enable 
companies  from  all  industries  to 
use the digital signature service.

The  smart  legal  document  auto-
mation  solution,  which  we  devel-
oped  for  our  legal  function  that 
traditionally  sees  high  paper  con-
sumption,  helps  reduce  paper  use 
and manual processes through ro-
botic process automation. Accord-
ingly,  we  reduce  error  risk,  while 
becoming  more  environmental-
ly-friendly  and  operating  a  more 
effective system.

Energy management 
We address our energy management 
practices from two perspectives; 
the energy we consume as part of 
our activities and the energy we 
produce from renewable sources. As 
part of our mission to ensure opti-
mum use of natural resources, and 
our environmentally-friendly business 
model based on shaping technology 
according to social needs, we prior-
itize the use of renewable energy re-
sources. By 2030, we aim to meet all 
our electricity needs from renewable 
resources. As the first mobile opera-
tor in Turkey, having obtained the ISO 
50001 Energy Management System 
standard, we make use of every op-
portunity to save energy.

With our Turkcell Energy Solutions 
subsidiary established in 2017 as part 
of Turkcell Group, we aim to become 
a consistent and transparent elec-

tricity energy supplier that operates 
within the boundaries of private law 
in the competitive environment, in or-
der to supply low cost and environ-
mentally-friendly energy. The value 
that we seek to create in this context 
is based on leveraging the increased 
synergy and activity arising from 
the provision of energy, energy solu-
tions, and mobile and fixed benefits 
through an integrated approach. 

We calculate and monitor our energy 
performance via an energy intensity 
performance indicator defined as 
the ratio of non-renewable energy 
consumption to net revenue. The 
Turkcell Energy Density ratio for 2020, 
including our total energy consump-
tion, is calculated as 76,800 GJ/
Petabyte. The specific measurement 
unit used in the energy intensity cal-
culation is identified as “emission per 
petabyte.”

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Natural capitalTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
220

Natural capital

Renewable energy
As  part  of  our  goals  of  meeting  our 
entire  electricity  consumption  from 
renewable  sources  by  2030  and  be-
coming a net-zero company by 2050, 
we pioneer renewable energy invest-
ments  by  employing  the  self-con-
sumption  model  in  our  buildings.  We 
therefore target becoming a compa-
ny  that  generates  its  electricity  from 
environmentally-friendly resources.

We plan to meet our 
energy requirements 
from green energy 
sources by having 
power plants of our 
own and leasing 
renewable energy 
generation capacity 
from power plants in 
Turkey with a long-
term approach. 

SDG 7.2

SDG 13.1

tainability  Gold  certification.  There 
are  64  data  centers  worldwide  and 
4  in  Turkey  that  have  obtained  this 
certification.  Our  Gebze  Data  Center 
was  the  first  in  Turkey  to  receive  the 
certificate in 2018 followed by our An-
kara Data Center.

We  continue  to  generate  electricity 
from  renewable  resources  through  a 
solar energy scheme installed on the 
roof of the Turkcell Adana Plaza build-
ing.  We  utilize  the  energy  generated 
through  the  self-consumption  mod-
el  to  meet  the  electricity  needs  of 
our  Adana  Plaza  building.  We  avoid 
around 26 t CO2e of greenhouse gas 
emissions  annually  from  a  70  thou-
sand  kWh  electricity  generation  ca-
pacity.

We generated 1.6 
million kWh electricity 
from renewables with 
3 solar power projects 
in 2020. Hence, we 
met 0.2% of our 
energy consumption 
from renewables for 
the year.

As  Turkcell  Energy  Solutions,  we  ap-
proach  energy  consumption  and 
generation  from  an  environmentalist 
perspective  by  installing  solar  ener-
gy  power  plants  at  our  data  centers 
and offices, and reducing the carbon 
emission  within  the  self-consump-
tion  model  framework.  In  2020,  the 
electricity generated by the self-con-
sumption  model  reached  an  amount 
equivalent  to  the  1-year  electricity 
consumption  of 
1,230  households. 
Furthermore,  we  stand  to  encourage 
environmentalist  methods 
through 
electricity  trade  with  renewable  en-
ergy  power  plants.  We  continue  our 
environmentalist  approach  with  our 
renewable energy supply that is cer-
tificated with I-REC in 2020.

Turkcell  Energy  Solutions,  which  will 
continue its renewable energy invest-
ments in the coming periods, aims to 
make  Turkcell  a  company  that  sup-
plies  its  electricity  from  environmen-
tally-friendly  sources  with  zero  car-
bon emissions.

With  our  group’s  first  solar  power 
plant,  located  in  the  Turkish  Repub-
lic  of  Northern  Cyprus,  we  generate 
1.2  million  kWh  of  electricity  annual-
ly, preventing emission of 448 t CO2e 
to  the  atmosphere.  With  this  plant, 
we also reduce the demand load on 
the  TRNC  Turkish  Electricity  Authority 
(KIB-TEK)  network  and  contribute  to 
the  digital  infrastructure  of  the  elec-
tricity network.

At the Ankara Data Center, the first in 
Turkey to generate its own energy via 
solar  panels,  we  benefit  from  solar 
power  through  new  generation  pan-
els  installed  on  top  of  the  building’s 
parking lot, meeting part of our elec-
tricity demand from renewable sourc-
es.  We  avoided  112.5  t  CO2e  GHG  of 
emissions via our data center building 
that generates 300 thousand kWh of 
electricity a year. In addition, we are 
proud  to  be  Turkey’s  sole  company, 
two data centers of which have ob-
tained  Uptime  OS  Operational  Sus-

Portable Solar Field solution, which we 
developed  to  meet  communication 
needs  in  regions  where  the  popula-
tion increases periodically, but where 
access to energy resources is limited, 
is  a  product  of  our  innovation  activ-
ities.  These  communication  stations, 
installed  in  various  locations  across 
Turkey,  stand  out  for  their  environ-
mentally-friendly nature and contrib-
ute to our sustainability goals. We are 
proud  to  share  that  our  investments 
into  renewable  energy  technologies 
will continue in the upcoming periods. 

We design our processes to minimize 
the  environmental  impact  not  only  in 
our  direct  operations,  but  throughout 
our entire value chain. In accordance 
with our green procurement practices, 
we evaluate the compliance of prod-
ucts we use to various environmental 
criteria such as energy efficiency and 
the  sustainability  of  raw  materials, 
and  prioritize  the  use  of  products  of 
low greenhouse gas emission.

Turkcell  sets  short-  and  long-term 
goals to reduce its negative environ-
mental impact, carrying out reporting 
and activities accordingly. In 2021, Key 
Performance Indicators for renewable 
energy and techno waste have been 

determined  as  a  business  target  for 
the  relevant  teams.  In  2021,  prepa-
rations  on  the  compliance  process 
of  suppliers  with  the  Environmental 
and  Human  Rights  Policies  published 
by  Turkcell  have  begun.  The  compli-
ance  of  suppliers  with  Turkcell’s  ESG 
processes has also been assigned to 
the  relevant  objectives  as  business 
targets.

We  carry  out  energy  saving  activi-
ties  to  ensure  responsible  use  of  our 
existing  energy  resources. We  attach 
importance  to  the  energy  efficien-
cy  of  our  network  equipment.  We 
continue  to  replace  air  conditioning 
devices  and  energy  infrastructure  in 
data center system rooms with more 
efficient,  state-of-the-art  products. 
In  calculating  our  energy  savings, 
we  consider  the  approximate  annual 
savings of each field in which saving 
initiatives  are  implemented,  and  cal-
culate  annual  savings  by  taking  the 
total  number  of  such  fields  into  ac-
count. And in pursuit of achieving en-
ergy  savings,  we  leverage  practices 
such  as  fields  without  air  condition-
ing, efficient rectifier technology, pas-
sive cooling, outdoor cabinets, power 
saving  algorithms,  renewable  energy 
and GPON technology.

SDG 7.3

Amount of total savings through energy saving 
activities and projects

114.63 
million kWh
2018

139.6
million kWh
2019

165.6 
million kWh
2020

The interaction of our 
natural capital with 
our other capitals

Natural resources, 
the supply of which 
is limited, is of great 
importance in our 
sustainable growth 
mission. We cover 
the effects of our use 
of natural resources 
through sustainable 
and green financing 
solutions in our 
financial capital. We 
ensure that long-term 
intellectual property 
practices as well as 
social and relational 
programs that take 
natural resources 
into account 
for sustainable 
development are 
implemented. We 
use our technological 
competencies 
to produce 
environmentally-
friendly solutions and 
provide the most 
sustainable service to 
our customers.

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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Appendices

224

Appendix-1 Communication channels table 

225

Appendix-2 Cooperated national, international and non-governmental organizations 

226 

Appendix-3 Board of Directors memberships

226

Appendix-4 Turkcell 2020 awards

228

Appendix-5 GRI content index table

238

Appendix-6 UNGC progress table

240

Appendix-7 Sustainability Principles Compliance Framework table

224

APPENDIX-1: Communication channels

APPENDIX-2: Cooperated national, international and non-governmental organizations

Stakeholder group

Communication channels

Employees

Suppliers

Internal and External Meetings, C-level Open Door meetings, Assessments, 
Announcements, Dashboard, Reports, Awayday, Events, Information Reports, Periodic 
Publications and Bulletins

Supplier Management System (2020), Supplier Portal, Internal and External Meetings, 
Supplier Days, Cooperation Meetings with SME and Local Manufacturers, Turkcell 
Partner Network, Field Rental Owner Meetings, Technopark Meetings

Customers

Media, Turkcell.com.tr, Turkcell and Turkcell CEO Social Media Accounts

Shareholders and investors

Board of Directors Meetings, Conferences, Meetings and Road-show activities, Investor 
and  Analyst  Day  Meetings,  Quarterly  Final  Disclosures  and  Teleconferences  on  the 
Investor Relations Website, Material Disclosures via the Public Disclosure Platform, Annual 
and  Interim  Activity  Reports,  Frequently  Asked  Questions  Section  and  Turkcell  Investor 
Relations e-mail and Phone Lines

Public institutions
and regulatory bodies

Official Correspondence with Ministries, Periodic, Subject-Specific or Sector-Wide 
Meetings, Workshops etc. Events, Public Opinion Documents, Information Reports, 
Presentations and Position Documents, Periodic Publications and Bulletins, Periodic 
Contents (Business Plans, Annual Plans, Strategy Documents, Action Plans etc.)

NGOs

Media

Students

Academicians

Board of Directors Meetings, Working Group Meetings, Council Meetings, Workshops, 
Seminars and Conferences, Annual Forums and Meetings, Regional Events, Fairs, Award 
Ceremonies, Subject-Oriented Initiatives (via website and social media), Memberships, 
Working Groups Activities and Projects, Meetings, Joint Projects

Direct Communication, Turkcell Media website, Turkcell and Turkcell CEO social media 
accounts, turkcell.com.tr,

Curriculum Courses, Certificate Programs, Technical Trip, Project Competitions, 
Information Sharing Sessions, Sponsorships in parallel with Turkcell Academy’s Vision of 
Raising Qualified  Human Resources for the Sector

Curriculum Courses and Certificate Programs in parallel with Turkcell Academy’s Vision 
of Raising Qualified Human Resources for the Sector, Scholarship Opportunity for PhD 
Students studying in the Field of Artificial Intelligence with the Turkcell Foundation, 
Supporting Publications

Think tanks

Content and Contribution to Publications Prepared for the Sector

3GPP

AUSDER

BCTR

BGD

EDİDER

DEİK

ECTA

ETİD

ETSI

FIRST

FKB

GSMA

GTI

IAPP

IIC

ItechLaw

ITU

MOBİSAD

M-TOD

MÜSİAD

NGMN

ÖDED

PERYÖN

SKD

TELKODER

TOBB

TUYAD

TÜBİSAD

TÜSİAD

TÜYİD

The 3rd Generation Partnership Project

Intelligent Transportation System Association of Turkey

Blockchain Turkey Platform

Information Security Association (ISA)

Digitalization in Energy Association

Foreign Economic Relations Board of Turkey

European Competitive Telecommunications Association

Electronic Commerce Operators Association

European Telecommunications Standards Institute

Forum of Incident Response and Security Teams

Financial Institutions Union

Global System for Mobile Communications Association

Global TD-LTE Intiative

International Association of Privacy Professionals

International Institute of Communication

International Technology Law Association

International Telecommunication Union

Mobile Communication Tools and Information Technologies Businessmen Association

Mobile Telecommunication Operators Association

Independent Industrialists and Businessmen Association

Next Generation Mobile Networks

Payment and Electronic Money Association

Turkey People Management Association

Business World and Sustainable Development Association

Turkish Competitive Telco Operators’ Association

The Union of Chambers and Commodity Exchanges of Turkey

Telecommunications Satellite and Broadcasting Business People Association

Informatics Industry Association

Turkish Industry and Business Association

Turkish Investor Relations Society

UN (UN Global Compact)

United Nations Global Compact

WTECH

YASED

Women’s Association in Technology

International Investors Association

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AppendicesTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
MURAT ERKAN, SERHAT DEMİR, GEDİZ SEZGİN

Media Excellence Awards

Social Cause - Related Campaign Award for our Smile and Make Them Smile project

226

APPENDIX-3: Board of Directors memberships

Non-governmental organization

Board Member

BURHANETTİN AL

BGD 

M-TOD

TÜYİD

TUYAD

FKB 

DEİK 

ZEYNEL KORHAN BİLEK

BARIŞ ZAVAROĞLU

ZEYNEL KORHAN BİLEK

AFİF DEMİRKIRAN (Associate Member)

Award

Content

Corporate Content Awards 
Europe

With our Smile and Make Them Smile project, two gold awards in the Best Use of 
Mobile and Best Content Targeted to the CSR Community categories

MarTech Awards

First prize in the category of Best Use of Technology in Public Relations with our Smile 
and Make Them Smile project

Social Media Awards

Three bronze and one silver awards at the Social Media Awards Turkey - Jury Awards 
with our ‘’Let Those Without Barriers Make Their Dreams Realize’’, and “Smile and Make 
them Smile” projects

Stevie Mena 2020

Gold Stevie award in “General Information Web Sites Innovation Award” category at 
Stevie Mena 2020 with our Turksporu.com.tr project

The Ones who Take 
Agriculture to the Future

At the Future of the Agriculture Forest Summit held under the auspices of the Ministry 
of Agriculture and Forestry, Turkcell won the “Carrying Agriculture to the Future” award 
with its Filiz Project.

Effie Awards Turkey

Gold Effie in Telecommunication Brands and Services category with Turkcell Fiber 
Speed   Everywhere campaign with Superbox. Bronze Effie in the Tourism - Culture - Art 
category with fizy Inter-High School Music Competition.

HRO Today Association 
Awards

“Recruitment Team of the Year” award within the scope of Europe, Middle East and 
Africa regions

With The “Bu mu Bu mu?” Campaign; Felis award in the “In-Store Customer Experience” 
category Achievement awards in “Use of Contact Point Technologies”, “In-store 
Media Usage” and “Digital Installation” categories. With The “Şanslı Çark” Campaign; 
achievement award in the “Digital Installation” category

Award in the social responsibility category with our free shopping project during the 
pandemic period for people over 65, which we implemented in cooperation with the 
Getir brand.

Turkey’s Best Mobile Network Solution Provider award with the SuperBox product

PSM Awards

International Business 
Magazine Awards

Asia Communication Awards

Network Transformation Initiative award with our “FMC - Fixed & Mobile Convergence” 
and “World’s first live network 800G Capacity Carrier” projects carried out in the 
Transport Network

HR Brilliance Awards

Silver award in the “HR Team of the Year” category for the “Emotion - Situation Analysis 
with Artificial Intelligence” project we implemented in the GNÇYTNK 2020 process.

IDC Türkiye

At the IDC Cloud&Datacenter Summit 2020; Turkcell artificial intelligence platform and 
Turkcell public cloud project awards in the private cloud category at the Cloud awards 
given as part of the summit.

5th Most Admired Company at 
Capital & Zenna

In the “Most Admired Companies” survey published in Capital magazine, the 5th 
Company, ranked 2nd in the “Employee Satisfaction” category, and the 3rd Company in 
the “Social Benefits Provided to Employees” category.

Awards for SDG

Platinum award in the Responsible Production and Consumption Category at the 
Sustainable Development Goals Awards of the CSR Summit with our Convert to 
Education Project

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Turkey’s Best Place to Work

“2019 Best Workplaces Program at” Kincentric Turkey - Best Employer award 
organized by Kincentric

MediaCat - Felis Awards

APPENDIX-4: Turkcell 2020 awards

In addition to the awards in the relevant sections of the report, we were deemed worthy of the awards given below and 
much more in 2020.

Award

Content

GSMA Glomo Awards

“Most Innovative Application” award with BiP’s translation feature at GLOMO, 
organized by World Mobile Operators Association GSMA

Trust Awards 2020

Most Reliable Telecommunications Company

Şikayet var ACE Awards

First prize with Turkcell Diamond in the category of “Communication” 
Second prize in the “Service Provider” category and Turkcell TV+ third prize in the 
“Digital Platform” category.

Ace of M.I.C.E

Best Activity Award for the Ambassadors Summit 2018 held for Turkcell dealership 
employees. 
Best Children’s Event with Children’s Festival 2019 and Best Guerrilla Event with UEFA 
Super Cup Final Event 2019.

Eventex Awards

Turkcell 23rd of April Children’s Festival (2019), 1 gold and VoD (Voice of Directors) 
internal communication events, 1 silver, 4 bronze awards, total 6 awards.

Loyalty Magazine Awards

Award of the Best Corporate Social Responsibility Initiative with Intelligence Power

Whiz Kids’ Mark at 
TEKNOFEST

World HR Congress

Four awards for Turkcell Whiz Kids students

“Best Orientation Program for New Employees” award with Turkcell Academy 
GNÇYTNK training program

Brandon Hall Excellence 
Awards

Separate awards for two trainings focused on financial development and leadership 
of Turkcell Akademi

50 HR Leaders who Discover 
the Future

One of the 50 HR Leaders Who Discover the Future - Serhat Demir, our Assistant 
General Manager Responsible for Turkcell Law, Regulation and Human Resources

AppendicesTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
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APPENDIX-5: GRI content index table

You can find the GRI items and related sections answered by the report within the scope of GRI 102-55 on this table.
GRI items on material issues are marked with

GRI 102 General Disclosures (2016)

Disclosure

Organizational Profile

Report section

Page

GRI 102 General Disclosures (2016)

Disclosure

Governance

Report section

Page

102-1 Name of the Organization

About the report

102-2 Activities, Brands, Products, and Services

About Turkcell

102-3 Location of Headquarters

Turkcell Küçükyalı Plaza, Aydınevler Mahellesi İnönü 
Caddesi No:20 Küçükyalı Ofispark B Blok – Maltepe / 
İSTANBUL

102-4 Location of Operations

Turkcell Group: Developments in 2020

102-5 Ownership and Legal Form

About Turkcell

102-6 Markets Served

102-7 Scale of the Organization

102-8 Information on Employees and Other 
Workers

About Turkcell
Turkcell Group: Developments in 2020

About Turkcell
Revenues from operations
Diversity, inclusion and equal opportunity

Diversity, inclusion and equal opportunity

102-9 Supply Chain

Value oriented, responsible supply chain management

102-10 Significant Changes to the
Organization and its Supply Chain

Shareholder structure
The marketing cooperation between Turkcell Europe 
GmbH, our company’s subsidiary in Germany, and 
Telekom Deutschland Multibrand GmbH, a subsidiary of 
Deutsche Telekom, was terminated on April 30, 2020 in 
accordance with the relevant contract.

In the reporting year, there was no significant change 
regarding the organization’s supply chain

102-11 Precautionary Principle or Approach

Risk management and internal control mechanism

102-12 External Initiatives

Measuring the value created

102-13 Membership of Associations

Cooperated national, international and non-
governmental organizations 
Board of Directors memberships

Strategy

102-14 Statement from Senior Decision-maker

Message from the CEO 

102-15 Key Impacts, Risks and Opportunities  

Risk management and internal control mechanism

Ethics and Integrity

102-16 Values, Principles, Standards, and Norms of 
Behavior

Our vision and mission

102-17 Mechanism for Advice and Concerns About 
Ethics

Human rights, work ethics and common values

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102-18 Governance Structure

Management Team support for value-creation process

102-19 Delegation

Management Team support for value-creation process

102-20 Responsibility at the Management Level of 
Environmental, Economic and Social Issues

102-21 Stakeholder Consultation on Economic, 
Environmental and Social Issues

102-22 Composition of the Highest Governance 
Body and its Commitments

Management Team support for value-creation process

Management Team support for value-creation process

Management Team support for value-creation process

102-23 Chair of the Highest Governance Body

Management Team support for value-creation process

102-24 Nomination and Selection of the 
Governance Body

102-26 The Role of the Highest Governance Body 
in Determining Purpose, Value and Strategy

102-29 Identifying and Managing Economic, 
Environmental and Social Impacts

102-31 Review of Economic, Environmental, and 
Social Topics  

102-32 Highest Governance Body’s Role in 
Sustainability Reporting

Management Team support for value-creation process

Management Team support for value-creation process

Management Team support for value-creation process

Risk management and internal control mechanism

Management Team support for value-creation process

102-33 Communicating Critical Concerns

Risk management and internal control mechanism

102-35 Remuneration Policies

Diversity, inclusion and equal opportunity
Sustainability strategy

102-36 Process for Determining Remuneration

Transparent performance evaluation

Stakeholder Engagement

102-40 List of Stakeholder Groups

Communication channels table

102-41 Collective Working Agreements

There are no collective bargaining practices for 
employees under Turkcell payroll.

102-42 Identifying and Selecting Stakeholders

Interactions with our stakeholders

102-43 Approach to Stakeholder Engagement

Interactions with our stakeholders
Communication Channels Table

102-44 Key Issues and Concerns

Material topics

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GRI 102 General Disclosures (2016)

Disclosure

Reporting Practice

Report section

Page

102-45 List of all Entities Included in the 
Organization’s Consolidated Financial Statements 
or Equivalent Documents

Consolidated Financial Statements

102-46 Defining Report Content and Topic 
Boundaries

About the report

102-47 List of Material Topics

Material topics

102-48 Restatement of Information

Consolidated Financial Statements

102-49 Changes in Reporting

102-50 Reporting Period

102-51 Date of Most Recent Report

Material topics

About the report

In March 2019, Turkcell Annual Report covering our 
activities in 2019 and Turkcell Sustainability Report in July 
2020 have been published.

102-52 Reporting Cycle

102-53 Contact Point for Questions Regarding the 
Report

About the report

About the report

102-54 Claims of Reporting in Accordance with 
the GRI Standards

About the report

102-55 GRI Content Index

GRI content index table

102-56 External Assurance

External assurance has been obtained only for the 
items specified in the Turkcell 2020 Integrated Report.

GRI 201 Economic Performance (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its 
Boundary

Strong financial performance

103-2 The Management Approach and its 
Components

Strong financial performance

103-3 Evaluation of the Management Approach

Capital market instruments performance, 
Sustainability indices and performance indicators, 
Share information and dividend yield

201-1 Direct Economic Value Generated and 
Distributed

Financial capital

201-2 Financial Implications and other Risks and 
Opportunities due to Climate Change

Climate crisis management

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GRI 202 Market Presence (2016)

Disclosure

Report section

202-1 Ratio of Standard Entry Level Wages by 
Gender and Local Minimum Wage

Diversity, inclusion and equal opportunity

GRI 203 Indirect Economic Impacts (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its 
Boundary

Base stations and public health

103-2 The Management Approach and its 
Components

Innovation and entrepreneurship
Base stations and public health

103-3 Evaluation of the Management Approach

Base stations and public health

203-1 Infrastructure Investments and Services 
Supported

Strong infrastructure

203-2 Important Indirect Economic Impacts

Innovation and entrepreneurship
Base stations and public health

GRI 204 Procurement Practices (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its 
Boundary

103-2 The Management Approach and its 
Components

Value oriented, responsible supply chain management

Value oriented, responsible supply chain management

103-3 Evaluation of the Management Approach

Value oriented, responsible supply chain management

204-1 Ratio of Spendings on Local Suppliers

Value oriented, responsible supply chain management

GRI 205 Anti-corruption (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its 
Boundary

Compliance with international capital markets and 
effective corporate governance practices

103-2 The Management Approach and its 
Components

Compliance with international capital markets and 
effective corporate governance practices

103-3 Evaluation of the Management Approach

Compliance with international capital markets and 
effective corporate governance practices

205-1 Activities Assessed in Terms of Corruption-
Related Risks

Compliance with international capital markets and 
effective corporate governance practices

205-2 Communication and Training on Anti-
Corruption Policies and Procedures 

Compliance with international capital markets and 
effective corporate governance practices

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GRI 206 Anti-competitive Behavior (2016) 

Disclosure

103-1 Explanation of the Material topic and its 
Boundary

Report section

Competition management

103-2 The Management Approach and its 
Components

Competition management

103-3 Evaluation of the Management Approach

Competition management

206-1 Legal Actions for Anti-competitive Behavior,
Anti-trust, and Monopoly Practices

Competition management

GRI 302 Energy (2016) 

Disclosure

103-1 Explanation of the Material topic 
and its Boundary

103-2 The Management Approach 
and its Components

Report section

Energy management

Energy management

103-3 Evaluation of the Management Approach

Energy management

302-1 Energy Consumption within the Organization

302-3 Energy Intensity

Emissions management
Renewable energy

Renewable energy

302-4 Reduction of Energy Consumption

Renewable energy

GRI 305 Emissions (2016) 

Disclosure

103-1 Explanation of the Material topic and its 
Boundary

Report section

Emissions management

103-2 The Management Approach and its 
Components

Emissions management

103-3 Evaluation of the Management Approach

Emissions management

305-1 Scope 1 Emissions: Direct GHG Emissions

Emissions management

305-2 Scope 2 Emissions: Energy Indirect GHG 
Emissions

Emissions management

305-3 Scope 3 Emissions: Other Indirect GHG 
Emissions

Emissions management

305-4 Emission Intensity

Emissions management

305-5 Reduction GHG Emissions

Emissions management

305-6 Emissions of Substances That Deplete
the Ozone Layer

Emissions management

305-7 NOx, SOx and Other Significant Air 
Emissions 

Not applicable to Turkcell’s operational boundaries.

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GRI 306 Waste management (2016) 

Disclosure

103-1 Explanation of the Material topic and its 
Boundary

103-2 The Management Approach and its 
Components

Report section

Waste management

Waste management

103-3 Evaluation of the Management Approach

Waste management

306-2 Type and Wastes by Disposal Method

Waste management

306-3 Significant Leaks

306-5 Water Affected by Water Discharge and 
Water Discharges

Leaks and spills of liquid wastes are not within the 
scope of Turkcell’s operation.

Municipal water is used at offices within the scope 
of Turkcell operations. Water affected by Turkcell’s 
drainage and water discharge is in the scope of water 
intended for human consumption.

GRI 307 Environmental compliance (2016)

Disclosure

Report section

307-1 Non-compliance with Environmental Laws
and Regulations

Fight against climate change
and effective energy management

GRI 308 Supplier environmental assessment (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its 
Boundary

103-2 The Management Approach and its 
Components

Value oriented, responsible supply chain management

Value oriented, responsible supply chain management

103-3 Evaluation of the Management Approach

Value oriented, responsible supply chain management

308-1 New Suppliers that were Screened Using
Environmental Criteria

308-2 Negative Environmental Impacts in the
Supply Chain and Actions Taken

Value oriented, responsible supply chain management

Value oriented, responsible supply chain management

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GRI 401 Employment (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Making a difference in employment

103-2 The Management Approach and its Components

Making a difference in employment

103-3 Evaluation of the Management Approach

Making a difference in employment

401-1 Recruitment and Employee Exchange

Making a difference in employment
Diversity, inclusion and equal opportunity

401-2 Benefits Provided to Full Time Employees, but Not 
Provided to Temporary or Part-Time Employees

Employee loyalty and happiness

401-3 Maternity Leave

Diversity, inclusion and equal opportunity

GRI 402 Labor/Management Relations (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Employee loyalty and happiness

103-2 The Management Approach and its Components

Employee loyalty and happiness

103-3 Evaluation of the Management Approach

Employee loyalty and happiness

402-1 Minimum Notice Periods Regarding Operational 
Changes

Human capital management

GRI 403 Occupational Health and Safety (2018) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Safe and healthy work environment

103-2 The Management Approach and its Components

Safe and healthy work environment

103-3 Evaluation of the Management Approach

Safe and healthy work environment

403-1 Occupational Health and Safety Management System Safe and healthy work environment

Base stations

403-2 Hazard Identification, Risk Assessment, and Incident
Investigation

Safe and healthy work environment
Base stations

403-3 Occupational Health Services

403-4 Worker Participation, Consultation, and
Communication on Occupational Health and Safety

Safe and healthy work environment
No employees are excluded from the OHS 
Management System.

Safe and healthy work environment

403-5 Worker Training on Occupational Health and Safety

Safe and healthy work environment

403-6 Promotion of Worker Health

Employee loyalty and happiness

403-7 Prevention and Mitigation of Occupational Health and 
Safety Impacts Directly Linked by Business Relationships

Safe and healthy work environment
Base stations

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GRI 403 Occupational Health and Safety (2018) continued

Disclosure

Report section

403-8 Workers Covered by an Occupational Health and 
Safety Management System

Safe and healthy work environment 
Base stations

403-9 Work-related Injuries

Safe and healthy work environment

403-10 Work-related Ill Health

Safe and healthy work environment

GRI 404 Training and Education (2016) 

Disclosure

103-1 103-1 Explanation of the Material topic and its 
Boundary

Report section

Turkcell Academy

103-2 The Management Approach and its Components

Turkcell Academy

103-3 Evaluation of the Management Approach

Turkcell Academy

404-1 Average Hours of Training Per Year Per Employee

Turkcell Academy

404-2 Programs for Upgrading Employee Skills and 
Transition Assistance Programs

Turkcell Academy

404-3 Percentage of Employees Receiving Regular 
Performance and Career Development Reviews

Transparent performance evaluation

GRI 405 Diversity and Equal Opportunity (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Diversity, inclusion and equal opportunity

103-2 The Management Approach and its Components

Diversity, inclusion and equal opportunity

103-3 Evaluation of the Management Approach

Diversity, inclusion and equal opportunity

405-1 Diversity of Governance Bodies and Employees

Diversity, inclusion and equal opportunity

405-2 Ratio of Basic Salary and Remuneration of Women
to Men

Diversity, inclusion and equal opportunity

GRI 406 Non-discrimination (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Diversity, inclusion and equal opportunity

103-2 The Management Approach and its Components

Diversity, inclusion and equal opportunity

103-3 Evaluation of the Management Approach

Diversity, inclusion and equal opportunity

406-1 Incidents of Discrimination and Corrective Actions
Taken

Diversity, inclusion and equal opportunity

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236

GRI 407 Freedom of Association and Collective Bargaining (2016)

Disclosure

Report section

407-1 Operations and Suppliers in Which the Right to 
Freedom of Association and Collective Bargaining may 
be at Risk

Human rights, work ethics and common values
Value oriented responsible supply chain management

GRI 408 Child Labor (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Value oriented responsible supply chain management

103-2 The Management Approach and its Components

Value oriented responsible supply chain management

103-3 Evaluation of the Management Approach

Value oriented responsible supply chain management

408-1 Operations and Suppliers at Significant Risk for 
Incidents of Child Labor

Diversity, inclusion and equal opportunity
Value oriented responsible supply chain management

GRI 409 Forced or Compulsory Labor (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Value oriented responsible supply chain management

103-2 The Management Approach and its Components

Value oriented responsible supply chain management

103-3 Evaluation of the Management Approach

Value oriented responsible supply chain management

409-1 Operations and Suppliers at Significant Risk for
Incidents of Child Labor

Diversity, inclusion and equal opportunity

GRI 410 Security Practices (2016)

Disclosure

Report section

410-1 Security Personnel Trained in Human Rights Policies
or Procedures

Safe and healthy work environment

GRI 413 Yerel Toplumlar (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Creating social value

103-2 The Management Approach and its Components

Creating social value

103-3 Evaluation of the Management Approach

Creating social value

413-1 Operations with Local Community Engagement,
Impact Assessments, and Development Programs

Base stations and public health
Creating social value

413-2 Operations with Significant Actual and Potential 
Negative Impacts on Local Communities

Base stations and public health

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GRI 414 Supplier Social Assessment (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its 
Boundary

103-2 The Management Approach and its 
Components

Value oriented responsible supply chain management

Value oriented responsible supply chain management

103-3 Evaluation of the Management Approach

Value oriented responsible supply chain management

414-1 New Suppliers that were Screened Using
Social Criteria

414-2 Negative Social Impacts in the Supply Chain
and Actions Taken

Value oriented responsible supply chain management

Value oriented responsible supply chain management

GRI 415 Public Policy (2016)

Disclosure

Report section

415-1 Political Contributions

Social investment projects

GRI 416 Customer Health and Safety (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Our public affairs

103-2 The Management Approach and its Components

Our public affairs

103-3 Evaluation of the Management Approach

Our public affairs

416-1 Assessment of the Health and Safety Impacts of
Product and Service Categories

Base stations and public health

416-2 Incidents of Non-compliance Concerning the Health
and Safety Impacts of Products and Services

Base stations and public health

GRI 418 Customer Privacy (2016) 

Disclosure

Report section

103-1 Explanation of the Material topic and its Boundary

Cyber security

103-2 The Management Approach and its Components

Cyber security
Digital business services (DBS)

103-3 Evaluation of the Management Approach

Cyber security

GRI 419 Socioeconomic Compliance (2016)

Disclosure

Report section

419-1 Non-compliance with Laws and Regulations in the
Social and Economic Area

Our Companies and sector developments

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AppendicesTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
238

APPENDIX-6: UNGC progress table

Topic

UNGC Principles

Human Rights

Labor

Principle 1: Businesses should support and respect the 
protection of internationally proclaimed human rights

Principle 2: make sure that they are not complicit in human 
rights abuses

Principle 3: Businesses should uphold the freedom of 
association and the effective recognition of the right to 
collective bargaining

Principle 4: the elimination of all forms of forced and 
compulsory labor

Principle 5: the effective abolition of child labor

Principle 6: the elimination of discrimination in respect of 
employment and occupation

Principle 7: Businesses should support a precautionary 
approach to environmental challenges

Environment

Principle 8: undertake initiatives to promote greater 
environmental responsibility

Principle 9: encourage the development and diffusion of 
environmentally friendly technologies

2020 Turkcell 
Integrated Report Section

Strong corporate governance

Human capital

Strong corporate governance

Human capital

Human capital

Human capital

Social values and relations

Human capital

Social values and relations

Human capital

Natural capital

Natural capital

Natural capital

Anti-corruption

Principle 10: Businesses should work against corruption in all its 
forms, including extortion and bribery

Strong corporate governance

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240

Appendices

APPENDIX-7: Sustainability Principles Compliance Framework table

Please ﬁnd the reference to relevant report sections at which we addressed the Comply or Explain requirement of the 
principles.

IR Section

Page 

A.GENERAL PRINCIPLES

A1. Strategy, Policy and Goals

The Board of Directors determines ESG material issues, 
risks and opportunities, and creates ESG policies 
accordingly. In terms of the effective implementation 
of these policies; In-partnership directives, business 
procedures, etc. can be prepared. The Board of Directors 
takes decisions on these policies and discloses them to 
the public.

It determines the Partnership Strategy appropriate to the 
ESG policies, risks and opportunities. It determines and 
publicly discloses its short and long-term goals in line 
with the partnership strategy and ESG policies.

A2. Implementation/Monitoring

It determines the committees/units responsible for the 
execution of ESG policies and makes them public. The 
responsible committee/unit reports the activities carried 
out within the scope of the policies to the Board of 
Directors at least once a year, and in any case within the 
maximum periods determined for the public disclosure of 
annual activity reports in the relevant Board regulations.

Management Team support for
value-creation process

Management Team support for
value-creation process

Management Team support for
value-creation process

Creates and publicly discloses implementation and 
action plans in line with the short- and long-term goals 
set.

Management Team support for
value-creation process

Determines the ESG Key Performance Indicators (KPI) 
and explains them on a yearly basis. In the presence 
of verifiable data, it presents KPIs with local and 
international sector comparisons.

Sustainability strategy

Explaining the innovation activities that may improve 
the sustainability performance of business processes or 
products and services.

Intellectual capital
Social investment projects

A3. Reporting

Reports the sustainability performance, goals and 
actions at least once a year and makes it public. 
Discloses the information on sustainability activities 
within the scope of the annual report

It is essential to share information that is important for 
stakeholders in understanding the position, performance 
and development of the partnership in a direct and 
concise manner. It can also explain detailed information 
and data on the corporate website and prepare 
separate reports that directly meet the needs of 
different stakeholders.

About the report

About Turkcell
Strong corporate governance 

Additionally, as listed in communication 
channels in Annex – 1 of the report, 
important statements are shared with 
the public through channels including 
Quarterly Result Disclosures and 
Material Disclosures (ÖDA) via the 
Public Disclosure Platform.

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It takes maximum care in terms of transparency and 
reliability. It objectively explains all kinds of developments 
concerning material issues in disclosures and reporting 
within the scope of the balanced approach.

About the report 

Sustainability strategy

Delivers information on which of the United Nations (UN) 
2030 Sustainable Development Goals its activities are 
related to.

Sustainable Development Goals
Interaction of material topics 

An explanation about the lawsuits filed and / or 
concluded against environmental, social and corporate 
governance issues.

Strong corporate governance

A4. Verification

Verification is done by independent third parties 
(independent sustainability assurance providers), and it 
discloses its sustainability performance measurements 
to the public and endeavors to increase the coverage of 
such verification processes.

B. ENVIRONMENTAL PRINCIPLES

Explains policies and practices, action plans, 
environmental management systems (known by the 
ISO 14001 standard) and programs in the field of 
environmental management.

Emissions management

Management Team support for
value-creation process
Natural capital 

Complies with environmental laws and other relevant 
regulations and explains them.

Fight against climate change and 
effective energy management

It explains the limitations of the environmental report to 
be included in the report prepared within the scope of 
the Sustainability Principles, reporting period, reporting 
date, data collection process and reporting conditions.

About the report
GRI content index

Describes the highest level responsible, relevant 
committees and tasks within the partnership on the issue 
of the environment and climate change.

Management Team support for
value-creation process

Describes the incentives it offers for the management of 
environmental issues, including the achievement of goals.

Fight against climate change and 
effective energy management

Explains how environmental problems are integrated into 
business goals and strategies

Sustainability strategy 
Energy management
Renewable energy

Explains the sustainability performance of business 
processes or products and services, and the activities 
undertaken to improve this performance.

Environmentally friendly and practical 
solutions through digitalization
Natural capital

It explains how it manages environmental issues along 
the partnership value chain and integrates suppliers and 
customers into its strategies, not just in terms of direct 
operations.

Sustainability strategy
Fight against climate change and 
effective energy management

Explanation of involvement in policy-making processes 
on environmental issues (sectoral, regional, national and 
international); cooperation with the associations, related 
organizations and non-governmental organizations 
concerning the environment, and the duties it has taken, 
if any, and the activities it supports.

Measuring the value created 
UNGC CFO Task Force
Contribution to exchanging knowledge 
and experience across all stakeholders
Appendix-2 
Appendix-3

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242

Appendices

IR Section

Page 

IR Section

Page 

Reports periodically comparable information on 
environmental impacts in the light of environmental 
indicators (Greenhouse gas emissions (Scope-1 (Direct), 
Scope-2 (Energy indirect), Scope-3 (Other indirect) 1), air 
quality, energy management, water and wastewater 
management, waste management, biodiversity impacts)

Fight against climate change and 
effective energy management

It describes the standard, protocol, methodology, and 
base year details used to collect and calculate its data.

Emissions management
(ISO 14064 GHG Emissions Calculation 
and Verification System)

Describing the status of environmental indicators for the 
reporting year (increase or decrease) in comparison with 
previous years.

Natural capital 

Sets short and long-term goals to reduce its 
environmental impact and explains these goals. It 
is recommended that these targets be determined 
based on Science as suggested by the United Nations 
Conference of the Parties on Climate Change. If there is 
progress in the reporting year according to the targets 
set before, it provides information on the subject.

Renewable energy 

Explains the strategy adopted and actions taken to 
combat the climate crisis.

Sustainability strategy 
Fight against climate change and 
effective energy management

Describes the program or procedures to prevent or 
minimize the potentially negative impact of the products 
and/or services it offers; explains the actions of third 
parties to reduce greenhouse gas emissions.

High speed, high quality and inclusive 
services; Access to information and 
internet for everyone
Renewable energy

It explains the actions taken to reduce its environmental 
impacts, the total number of projects and initiatives 
carried out, and the environmental benefits / benefits 
and cost savings they provide.

Natural capital 

It reports the total energy consumption data (excluding 
raw materials) and describes the energy consumption as 
Scope-1 and Scope-2.

Emissions management

Provides information on electricity, heat, steam and 
cooling generated and consumed in the reporting year.

Renewable energy
Emissions management

Carries out studies on increasing the use of renewable 
energy, transition to zero or low carbon electricity and 
explains these studies.

Renewable energy

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Explains renewable energy production and usage data.

Renewable energy

21

Explains energy efficiency projects and the amount of 
energy consumption and emission reduction resulting 
from them.

Renewable energy
You can access our 2020 CDP Report 
at https://s.turkcell.com.tr/SiteAssets/
Hakkimizda/en/corporate-social/
programme-response-investor-
CDP-2020.pdf

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It reports the amount of water withdrawn, used, 
recycled and discharged from underground or above 
ground, its sources and procedures (Total water 
withdrawal by source, water resources affected by 
water withdrawal; percentage and total volume of 
recycled and reused water, etc.).

Water management

It explains whether operations or activities are included 
in any carbon pricing system (Emission Trading System, 
Cap & Trade, or Carbon Tax).

Climate crisis management
You can access our 2020 CDP Report 
at https://s.turkcell.com.tr/SiteAssets/
Hakkimizda/en/corporate-social/
programme-response-investor-
CDP-2020.pdf

Describes the carbon credit information accumulated or 
purchased during the reporting period.

Fight against climate change and 
effective energy management

Explains the details where carbon pricing is applied 
within the partnership.

26

Explains all mandatory and voluntary platforms on which 
it discloses environmental information.

Climate crisis management
You can access our 2020 CDP Report 
at https://s.turkcell.com.tr/SiteAssets/
Hakkimizda/en/corporate-social/
programme-response-investor-
CDP-2020.pdf

You can access our 2020 CDP Report 
at https://s.turkcell.com.tr/SiteAssets/
Hakkimizda/en/corporate-social/
programme-response-investor-
CDP-2020.pdf

C. SOCIAL PRINCIPLES

C1. Human Rights and Employee Rights

Develops a Corporate Human Rights and Employee 
Rights Policy declaring full compliance with the Universal 
Declaration of Human Rights, the ILO Conventions which 
Turkey has approved, and the legal framework and 
regulations governing human rights and working life in 
Turkey. Discloses the policy in question and the roles and 
responsibilities for its implementation.

Provides equal opportunity in recruitment processes. 
Considering supply and value chain effects, it includes 
fair workforce, improvement of labor standards, women’s 
employment and inclusion issues (such as women, 
men, religious belief, language, race, ethnic origin, age, 
disability, refugee, etc.) in its policies.

Describes measures taken along the value chain for the 
protection of certain economic, environmental, social 
factors (low-income groups, women, etc.) or minority 
rights / equality of opportunity.

Diversity, inclusion and equal 
opportunity
Value oriented, responsible supply 
chain management

Making a difference in employment
Employee relations 
Diversity, inclusion and equal 
opportunity

Making a difference in employment
Social investment projects

Reporting developments regarding discrimination, 
inequality, human rights violations, forced labor, and 
corrective practices. Explaining the regulations preventing 
the employment of child labor.

Diversity, inclusion and equal 
opportunity
Value oriented, responsible supply 
chain management

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5

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9

Explains policies regarding investment in employees 
(training, development policies), compensation, vested 
benefits, right to unionize, work/life balance solutions 
and talent management. Determines dispute resolution 
processes by creating mechanisms for employee 
complaints and dispute resolution. It regularly explains 
the activities carried out to ensure employee satisfaction.

Creates occupational health and safety policies 
and makes them public. Provides explanation of the 
precautions taken and accident statistics gathered to 
prevent work accidents and health.

IR Section

Human capital
Our corporate social values and 
relations

Page 

128
184

Safe and healthy work environment

137

Public disclosure on personal data protection and data 
security policies.

https://www.turkcell.com.tr/tr/gizlilik-
ve-guvenlik?page=kisisel-verilerin-
korunmasi

Ethical policy explanation including work, work ethics, 
compliance processes, advertising and marketing ethics, 
open disclosure, etc.

Human rights, work ethics and 
common values

Explains work done within the scope of social 
investment, social responsibility, financial inclusion and 
access to finance.

10

Organizes informational meetings and training programs 
for employees on ESG policies and practices.

C2. Stakeholders, International Standards and Initiatives

Carries out its activities in the field of sustainability by 
considering the needs and priorities of all stakeholders 
(employees, customers, suppliers and service providers, 
public institutions, shareholders, society and non-
governmental organizations, etc.).

It regulates and publicly discloses a customer 
satisfaction policy regarding the management and 
resolution of customer complaints.

Conducts stakeholder communication continuously 
and transparently; It explains which stakeholders are 
contacted, for what purpose, on what issue and the 
frequency of communication, and also on developments 
in sustainability activities.

Publicly discloses the international reporting standards 
it has adopted (Carbon Disclosure Project (CDP), Global 
Reporting Initiative (GRI), International Integrated 
Reporting Council (IIRC), Sustainability Accounting 
Standards Board (SASB), Climate-Related Financial 
Disclosures Task Force (TCFD), etc.)

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4

Digital transformation and inclusion
Diversified financing
Techfin’s shining stars: Paycell and 
Financell
High speed, high quality and inclusive 
services; Access to information and 
internet for everyone
Social investment projects

Sustainability strategy
Compliance with international capital 
markets and effective corporate 
governance practices
Safe and healthy work environment

Material topics

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194

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About the report

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IR Section

Measuring the value created 
Being the leader and pioneer company 
in our sector and country through 
representations

Page 

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Sustainability indices and performance 
indicators

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Statement of compliance with 
corporate governance principles for 
the year 2020

Sustainability strategy

Statement of compliance with 
corporate governance principles for 
the year 2020
Material topics

Sustainability strategy
Social investment projects
Being the leader and pioneer company 
in our sector and country through 
representations

Publicly discloses the international organizations or 
principles (Equator Principles, United Nations Environment 
Program Finance Initiative (UNEP-FI), United Nations 
Global Principles (UNGC), United Nations Principles 
for Responsible Investment (UNPRI), etc.) that it is a 
signatory or member, international principles adopted 
(International Capital Market Association (ICMA) Green/
Sustainable Bond Principles).

Concrete efforts to be included in the Borsa Istanbul 
Sustainability Index and international sustainability 
indices (Dow Jones Sustainability Index, FTSE4Good, 
MSCI ESG Indices, etc.).

D. CORPORATE GOVERNANCE PRINCIPLES

Within the scope of Capital Markets Board Corporate 
Governance Communique numbered II-17.1, it makes 
maximum effort to comply with all Corporate 
Governance principles in addition to the mandatory 
Corporate Governance principles.

While determining its corporate governance strategy, 
it considers the sustainability issues, the environmental 
impacts of its activities and the principles in this regard.

As stated in the Corporate Governance Principles, it 
takes the necessary measures to comply with the 
principles regarding stakeholders and to strengthen 
the communication with the stakeholders. It seeks the 
opinions of stakeholders while determining its measures 
and strategies regarding sustainability issues. 

It implements social responsibility projects, awareness 
activities and trainings to raise awareness regarding 
sustainability issues and their importance.

It endeavors to be a party to the international standards 
and initiatives on sustainability and to contribute to their 
related projects. 

Measuring the value created 
Being the leader and pioneer company 
in our sector and country through 
representations

Discloses its policies and programs regarding anti-
bribery and anti-corruption and tax integrity principle.

Anti-bribery and corruption policy
Financial capital
Our public affairs

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AppendicesTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
246

Group companies and other information
on corporate governance

Group companies 
and other information 
on corporate governance

248

Our subsidiaries

254

Subsequent events after the reporting period

256 

2020 financial year Corporate Governance Principles Compliance Report

270

Other issues regarding corporate governance

272

Conclusion of the subsidiary report

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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248

Our subsidiaries*

its  subscribers  to  choose  their  eSIM 
numbers.

lifecell  has  actively  participated  in 
activities  to  combat  COVID-19,  do-
nating  2  mechanical  ventilators  to 
the  Ukraine  COVID-19  control  center. 
Furthermore,  lifecell  provided  free  of 
charge  communication  packages  in-
cluding 20 GB and 1500 voice minutes 
to over 13,000 health sector workers in 
March  and  April.  Additionally,  the  op-
erator  sent  over  8  million  information 
messages to its subscribers on behalf 
of the Ministry of Health. Moreover, li-
fecell zero rated the traffic and voice 
calls  to  the  numbers  and  web  pages 
of  the  Ministry  of  Health  and  Ministry 
of Foreign Affairs.

lifecell  became  the  first  operator  to 
test  the  5G  network  segment  at  its 
headquarters in Kiev in March in coop-
eration with Ericsson. Furthermore, the 
company  acquired  a  new  license,  in-
creasing  its  900  MHz  frequency  band 
from  3.8  MHz  to  5.6  MHz  for  UAH121 
million  also  in  March.  The  new  fre-
quencies are used to provide LTE ser-
vices to rural regions, and national and 
international highways. The respective 
license will be effective for five years 
as of July 1, 2020.

lifecell
lifecell started its operations in Ukraine 
in  February  2005.  In  2020,  lifecell’s 
3-month  active  subscriber  base  ex-
panded  by  0.6  million  to  8.1  million. 
lifecell  sustained  its  leadership  of  the 
Ukrainian  market  in  smartphone  pen-
etration,  which  had  reached  81.2%  by 
year-end.

lifecell was the first operator to launch 
4.5G  services  for  its  customers  in  the 
2600  MHz  frequency  band  in  2018, 
followed by a successful launch in the 
1800  MHz  frequency  band  within  the 
same  year.  lifecell  had  a  geographi-
cal  coverage  of  31.8%  and  population 
coverage of 63.2% in Ukraine (3G and 
4.5G) by year end.

In  2020,  the  number  of  three-month 
active  subscribers  using  3G  and  4.5G 
reached 5.5 million, while mobile data 
usage  per  user  grew  by  64%.  lifecell 
achieved  strong  operational  perfor-
mance in 2020, with revenue and EBIT-
DA growth of 14.2% and 11.9%, respec-
tively.  Meanwhile,  lifecell  registered 
positive  net  income  in  2020,  which 
was a result of this strong operational 
performance.  lifecell’s  revenues  in  TL 
terms rose 34.9% to TRY1,776 million. 

In  March  2020,  lifecell,  together  with 
the  other  operators,  launched  its  4G 
service in Kiev metro, and provided its 
service  in  45  underground  metro  sta-
tions.

During  the  period  between  March-
May  2020,  when  lockdown  measures 
were  taken  against  the  COVID-19 
pandemic, lifecell continued its efforts 
towards  the  provision  of  high-quality 
services  to  its  customers.  In  this  peri-
od,  lifecell  launched  new  features  in 
the BiP Messenger and BiP SOS pack-
age,  introducing  the  BiP  Emergency 
Virtual Number, and the multi-account 
management  option  in  the  My  lifecell 
application.  lifecell  was  the  first  op-

erator  to  launch  eSIM  in  Ukraine  and 
enabled the remote purchase of eSIM, 
free-of-charge  delivery  of  lifecell  SIM 
cards and mobile care services for its 
customers. lifecell also gave subscrib-
ers  the  flexibility  to  purchase  service 
packages  for  their  friends  and  rel-
atives.  As  voice  calls  became  much 
more  popular  for  communication  in 
Ukraine, lifecell provided additional of-
fers and promotions, including unlimit-
ed call offers to any operators.

In 2020 lifecell continued to offer new 
services  to  its  customers.  The  Pay-
cell  Mobile  Wallet  application  helps 
its  subscribers  to  make  payments  in 
a  secure  and  comfortable  way  with 
minimum commission rates. Likar On-
line enables users to get remote con-
sultancy from doctors. Over the Busuu 
education  platform,  users  have  the 
opportunity  to  learn  new  languages. 
With  the  cooperation  of  Universalna 
insurance  company  and  lifecell,  sub-
scribers  can  purchase  travel  Insur-
ance. lifecell SCREEN users can receive 
screen  repair  insurance  for  their  mo-
bile  devices.  Meanwhile,  lifecell  was 
the  first  operator  in  Ukraine  to  allow 

following 

Turkcell Global Bilgi 
Turkcell Global Bilgi offers new gener-
ation services in customer experience 
closely 
the  digitalization 
trends  and  leveraging  21  years  of  ex-
perience in customer services. Turkcell 
Global Bilgi aims to enhance customer 
satisfaction  and  consequently  its  rev-
enues  creating  customized  solutions 
for more than 70 companies including 
Turkcell  itself.  The  company  continues 
its  activities  acting  as  strategic  busi-
ness partners of its customers.

Turkcell  Global  Bilgi  employs  nearly 
16  thousand  people  in  25  locations; 
19 in Turkey and 6 in Ukraine as at the 
end  of  2020.  The  company  leads  the 
sector  and  creates  value  with  9,600 
women  employees,  which  make  up 
60% of the total workforce.

Turkcell Global Bilgi is among Turkey’s 
top  500  IT  companies  and  provides 
traditional  call  center  services  and 
also  consultancy  services  such  as  re-
search  management,  customer  expe-
rience design and social media man-
agement.  Turkcell  Global  Bilgi  has  re-
alized own digital platforms in its R&D 
center and also provides robotic pro-
cess automation, cloud-based switch-
board  infrastructure,  digital  assistant 
and  self-service  information  technol-
ogies technical services to companies.

cation  using  facial  recognition  tech-
nology  based  on  a  machine  learning 
algorithm in 2020.

The service has been successfully de-
veloped by lifetech, which was estab-
lished  as  a  99.9%  subsidiary  of  BeST 
to  serve  in  the  fields  of  telecommu-
nications  and  infrastructure  solutions, 
information and communication tech-
nologies,  software  development  and 
security systems.

lifetech successfully provides IT based 
solutions  to  Turkcell  Group  and  other 
customers  and  carries  out  software 
development  projects  both  in  Belarus 
and other countries.

Kuzey Kıbrıs Turkcell  
Kuzey Kıbrıs Turkcell was established in 
1999  as  a  100%  owned  subsidiary  of 
Turkcell. Having operated until 2007 as 
part  of  a  revenue  sharing  agreement 
with  the  Turkish  Republic  of  Northern 
Cyprus  Telecommunication  Depart-
ment, the Company signed an 18-year 
GSM license contract in the same year. 

Kuzey  Kıbrıs  Turkcell  continues  its  ac-
tivities as the leading operator of the 
TRNC  with  its  infrastructure  covering 
almost  the  entire  population,  and  an 
active  subscriber  market  share    of 
65.6%* according to Information Tech-
nologies and Communications Author-
ity data for Q3 of 2020.

Entering  the  fixed  broadband  market 
in TRNC with Lifecell Digital Ltd. in 2018, 
Kuzey Kıbrıs Turkcell continues to serve 
in this field with the momentum it has 
gained  in  a  short  time.  With  Turkcell 
Home Internet, a first for the island, the 
people  of  TRNC  are  offered  postpaid 
home  internet  service  regardless  of 
having  a  mobile  line  or  being  a  Turk-
cell customer.

In 2020, Kuzey Kıbrıs Turkcell registered 
revenue  of  TRY239.4  million  on  7.7% 
annual growth. 

BeST
BeST  (Belarusian  Telecommunications 
Network),  which  joined  the  Turkcell 
Group  in  July  2008,  became  the  first 
mobile operator to offer 3G services in 
Belarus in November 2009. As of 2020 
year-end,  BeST  continued  its  rapid 
growth  with  99.9%  population  cover-
age and 97.7% geographical coverage.

BeST became one of the first two op-
erators to offer 4G services in August 
2016  through  LTE  infrastructure  estab-
lished  by  beCloud.  BeST  provides  4G 
LTE  services  across  all  regions  and 
major  cities  of  Belarus  with  35%  4G 
geographical  coverage.  The  share  of 
4G  subscribers  reached  63%  of  the 
3-month  active  subscriber  base  in 
2020.  Increasing  4G  services  pene-
tration has led to an average monthly 
data  consumption  per  user  to  13  GB. 
The 4G network serves 73% of the to-
tal data traffic as of 2020.

While  converting  subscribers  to  4G 
users,  BeST  continues  to  transform  it-
self  from  a  communication  services 
provider to a digital operator by offer-
ing diversified digital services portfolio 
in accordance with Turkcell’s strategy. 

While the tariff plans that include data 
and  terminal  packages  enable  the 
growth  of  ARPU,  BeST  enriches  cus-
tomers’ digital experiences by bringing 
together connectivity and content. Ac-
cordingly,  BeST  has  included  BiP,  fizy, 
lifebox,  Magazines,  TV+,  and  Games 
Platform to its digital services portfolio.

BeST became the first mobile operator 
in Belarus to launch a digital SIM card 
activation service via a mobile appli-

* Not all our subsidiaries are included in our Subsidiaries section. You can find the list of subsidiaries in our subsidiaries section of the IFRS report under note 40.

*Active subscriber base excluding telemetri susbcriptions.

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250

Group companies and other information
on corporate governance

Global Tower 
Global  Tower,  Turkey’s  leading  tow-
er  company,  today  operates  in  four 
countries. Global Tower provides tele-
communications  infrastructure  servic-
es including tower leasing, tower build 
& sell, contract management, mainte-
nance  services  to  mobile  operators, 
radio  and  TV  broadcasters,  internet 
service  providers,  energy  companies 
and  public  institutions.  Global  Tower 
also  provides  satellite  services  and 
solutions  to  its  customers  in  accord-
ance with its end-to-end services ap-
proach.  The  company  currently  offers 
closed  circuit  satellite  services  over  2 
thousand  points  from  its  own  infra-
structure with geographic redundancy. 
The  company  aims  to  enrich  product 
and  service  diversity  by  following  in-
dustry trends. 

Global  Tower’s  10,913  tower  portfolio 
distribution  as  the  end  of  2020  is  as 
follows:

•  Turkey:  8,789  (owned:  4,341  right  of 
use:  2,256,  contract  management: 
2,192)

•  Ukraine: 1,175 (owned)

•  Belarus: 834 (right of use)

•  TRNC: 115 (right of use)

Global Tower closely follows the trans-
formation  process  of  the  global  tele-
communication  infrastructure  sector, 
from  tower  management  to  infra-
structure  management,  and  plans  to 
introduce  new  emerging  services  in 
the  industry  with  its  customers.  It  is 
also  observed  that  mobile  operators 
in  Turkey  have  a  positive  attitude  to-
wards infrastructure sharing and con-
solidation  model  which  is  pioneered 
by  Global  Tower,  in  parallel  to  recent 
global  trends.  A  critical  step  can  be 
taken  in  terms  of  operational  savings 
and resource efficiency with new reg-
ulatory developments.

Superonline İletişim Hizmetleri A.Ş.
Superonline İletişim Hizmetleri A.Ş. was 
established  in  2004  to  operate  under 
the Turkcell Superonline brand.

Turkcell  Superonline  provides  services 
for the purpose of making and operat-
ing  the  necessary  investments  for  the 
provision  of  telecommunication  ser-
vices, and undertaking the representa-
tion  of  domestic  and  foreign  busi-
nesses  that  provide  these  services.  In 
addition, Turkcell Superonline provides 
international and national mass voice 
transportation, providing private inter-
national  rental  data  line  for  corpora-
tions and international internet access 
services,  and  develops  individual  and 
corporate internet services.

In  2020,  Turkcell  Superonline’s  rev-
enues  were  TRY5.5  billion,  while  its 
EBITDA  was  TRY2.9  billion.  As  of  the 
end  of  2020,  fiber  subscriber  base 
had reached 1.7 million. As of the end 
of  2020,  Superonline  provides  fiber 
access  to  3.8  million  homepass  with 
approximately  50  thousand  km  roll-
out,  in  23  cities.  Turkcell  Superonline 
fiber  data  acccesses  to  households 
at  speeds  up  to  10  Gbps.  Turkcell  Su-
peronline,  already  shares  its  fiber  in-
frastructure  with  Türksat  and  Voda-
fone  Turkey  through  the  infrastructure 
sharing  cooperation  agreements,  and 
can  provide  internet  service  to  more 
homepass.

Superonline  has  been  authorized  by 
ICTA to provide Internet Providing Ser-

vice,  Fixed  Telephone  Service,  Infra-
structure  Management  Service,  Sat-
ellite  Communication  Service,  Cable 
Broadcast  Service  and  Virtual  Mobile 
Network  Service.  According  to  the 
regulations of the ICTA, authorizations 
can be definite term or indefinite de-
pending on the type; definite term au-
thorizations can be extended by mak-
ing  a  renewal  application  to  the  ICTA 
in  a  certain  period  before  the  end  of 
the authorization.

Turkcell Finansman
Established  in  March  2016,  Turkcell 
Finansman  A.Ş.  provides  financing 
solutions  to  corporate  and  individual 
customers  as  part  of  their  purchas-
es  of  technology-based  services  and 
products  under  the  “Financell”  brand. 
Financell is in the leader position with 
the  highest  customer  number  in  the 
nonbank financial sector.

Financell serves its customers through 
around  1,300  Turkcell  stores,  2,092 
DSN+  (digital  sales  points)  stores  and 
digital sales channels in Turkey.

Turkcell  Finansman  which  has  an  as-
set size of TRY2.5 billion as at the end 
of  2020  has  granted  TRY18  billion  in 
loans  to  around  5.6  million  customers 
to date, become one of the key play-
ers  in  the  Turkish  financing  sector.  Fi-
nancell  extended  its  services  into  the 
corporate lending market with its dig-
ital  transformation  loan.  Through  the 
credit  risk  and  digital  systems  trans-
formation projects carried out in 2020, 
Turkcell  Finansman  performs  credit 
application  assessments  more  rapid-
ly  and  continues  to  manage  its  credit 
risk effectively. With the projects com-
pleted in 2020, financing services have 
also started to be provided to Corpo-
rate and Superonline customers. Thus, 
Financell  provides  financing  solutions 
for  all  products  and  services  sold  by 
the Turkcell Group.

The  company  recently  established  a 
new  techfin  initiative,  Turkcell  Sigorta 
Aracılık  Hizmetleri  A.Ş.,  which  aims  to 
offer innovative solutions for customer 
risk management in risk management 
area  with  fast  and  easy-to-access 

products.  In  this  context,  customers 
have the opportunity to readily access 
and purchase insurance products from 
all  Turkcell  channels,  including  call 
centers, digital channels, and dealers.

Turkcell  Sigorta  meets  the  insurance 
needs of customers by offering life in-
surance and device insurance, its main 
products, to individual customers who 
receive  financing  through  Financell. 
Moreover,  the  personal  accident  in-
surance  product  has  been  introduced 
in  2020.    The  first  end-to-end  digi-
tal  sales  via  QR  code  in  Turkey  have 
been realized, in addition to sales via 
the  call  center  and  store  channels.  It 
aims  to  secure  its  place  in  the  mar-
ket as a pioneering player in the field 
of  insurtech  with  new  and  innovative 
optional  insurance  products  to  be 
launched in the future.

Turkcell Ödeme Hizmetleri ve 
Elektronik Para Hizmetleri - Paycell
Turkcell  Ödeme  ve  Elektronik  Para 
Hizmetleri  A.Ş.  (TÖHAŞ)  extended  the 
scope  of  its  operational  permit  ob-
tained from the BRSA in 2016, with an 
E-Money  license  in  2017.  With  a  rap-
id  techfin  transformation  having  tak-
en  place  worldwide  over  the  past  10 
years,  the  Turkey  market  offers  great 
potential  for  techfin  services  to  ex-
pand  through  its  attractive  internal 
dynamics. In particular, the high young 
population,  high  smart  device  pene-
tration  rate,  approximately  30  million 
unbanked  potential  users,  still-high 
rate  of  cash  use  in  shopping  and  in-

*We hold an 33% stake.

creasing  e-commerce  volume  stand 
out  as  factors  that  will  support  the 
rapid  rise  in  the  penetration  of  tech-
fin  solutions.  The  COVID-19  pandem-
ic  that  has  impacted  the  world  since 
the start of 2020 has accelerated this 
transformation.  Particularly,  chang-
ing living conditions and needs led to 
increased  customer  focus  on  digital 
platforms.  E-commerce  was  one  of 
the  sectors  most  positively  affected. 
In  accordance  with  these  needs  and 
changing  customer  habits,  our  vision 
with Paycell is to enable more users to 
readily benefit from financial services 
through fast and secure payment solu-
tions  that  we  created  by  combining 
technology with financial services.

In  2020,  Paycell  continued  to  improve 
the products and services that it offers 
to its customers. Paycell, which serves 
over  12  thousand  contracted  mer-
chants, expanded its solution portfolio 
for  commercial  businesses  with  the 
Android POS this year. Paycell Android 
POS,  the  first  Android  POS  device  to 
comply  with  relevant  legislation,  and 
registered  by  the  Turkish  Revenue 
Administration,  provides  cost  and  ef-
ficiency advantages to member mer-
chants, while offering collection, stock 
tracking  and  e-invoice  processes  on 
a  single  platform.  Paycell  closed  the 
year  of  2020  with  great  success  on 
the strength of these activities consid-
ering  the  needs  of  its  customers,  and 
continued  to  lead  the  techfin  industry 
by  reaching  record  transaction  vol-
umes  in  various  products.  While  Pay-
cell  customers  reached  4.7  million  in 
2020, the Paycell application, enriched 
with  new  functions,  exceeded  9  mil-
lion  downloads.  The  total  transaction 
volume  through  Paycell  reached  TRY9 
billion.

Sofra Kurumsal ve Ödüllendirme 
Hizmetleri A.Ş.*
Sofra  Kurumsal  ve  Ödüllendirme  Hiz-
metleri  A.Ş.  is  a  meal  card  company 
established in 2018 in partnership with 
Turkcell, Belbim and PTT. It serves under 
the  Paye  Card  brand.  Paye  Card  has 
reached  more  than  16  thousand  mer-
chants across Turkey.

The Paye meal card is the first one that 
can  be  used  on  transportation.  Paye 
Card, which is a contactless card, can 
be used at all points where the Istanbul 
Card is valid, aside from its meal card 
feature.

Paye  offers  an  easy  payment  service 
that  allows  employees  to  save  time 
while  paying  for  their  meals  through 
its  contactless  payment  feature.  Paye 
Card  offers  fast  and  easy  payment 
with  the  QR  method  at  contracted 
stores  and  market  chains  with  Paycell 
QR payment infrastructure.

Turkcell Teknoloji
Turkcell  Teknoloji  has  been  contribut-
ing  to  the  development  of  the  tech-
nology  infrastructure  of  Turkcell,  the 
leader  telecommunication  company 
of  Turkey,  since  2006,  and  offers  its 
innovative solutions for the use of op-
erators abroad. Within the framework 
of  Turkcell’s  strategy  to  expand  its 
products and services into internation-
al  markets,  Turkcell  Teknoloji  aims  to 
develop  new  digital  and  ICT  services 
in  global  statandards  in  line  with  the 
latest technology and market require-
ments, and to expand in regions where 
Turkcell Group operates. Products and 
services  developed  by  Turkcell  Te-
knoloji  serve  over  100  million  users  in 
15 countries today.

As  one  of  Turkey’s  largest  and  most 
competitive  R&D  centers  with  over 
1,000  R&D  engineers  as  of  2020, 
Turkcell  Teknoloji  marked  numerous 
achievements  both  in  Turkey  and  the 
wider  world.  Turkcell  Teknoloji  aims 
to  develop  innovative  technologies 
in  communications  and  in  the  areas 
where  it  has  an  impact.  The  compa-
ny also targets to be a leader, pioneer, 
and role model in Turkey by employing 
the most talented human capital in the 
R&D  industry  to  the  greatest  possible 
extent.  With  the  experience  accumu-
lated  throughout  the  transformation 
of Turkcell from a technology-oriented 
network provider to a service-oriented 
experience  provider,  Turkcell  Teknoloji 
strives to be an R&D center with inno-
vative solutions developed for domes-

TURKCELL INTEGRATED ANNUAL REPORT 2020

TURKCELL INTEGRATED ANNUAL REPORT 2020

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tic and international markets.

Turkcell  Teknoloji  focuses  on  roaming 
solutions,  big  data  processing,  busi-
ness  intelligence  applications,  smart 
cloud  platform  and  platform-devel-
oped  solutions,  location  based  ser-
vices  and  platforms,  customer  rela-
tionship  management  and  solutions, 
network  management  solutions,  next 
generation value added services, mo-
bile  financial  systems,  music  and  en-
tertainment  services,  IPTV  services, 
mobile  marketing  solutions,  Internet 
of  Things  (IoT),  geographic  informa-
tion  systems,  voice  identification,  AR/
VR,  5G  infrastructure  projects,  mobile 
communication  solutions,  campaign 
management systems, smart Sim card 
solutions,  digital  identity  technologies, 
image  and  video  processing  based 
on  artificial  intelligence,  text  analy-
sis  (NLP),  suggestion  engines,  voice 
analytics,  robot  assistants,  robotics 
process  automation,  mobile  analyti-
cal  platforms,  artificial  intelligence  in 
health,  learning  and  education  appli-
cations  solutions,  e-mail  and  search 
engine  solutions,  digital  broadcast 
solutions,  CDN  (Content  Delivery  Net-
work)  solutions,  Over-the-Top  (OTT) 
and blockchain solutions.

Turkcell  Teknoloji  is  the  leader  in  the 
telecommunications  sector  in  Turkey 
with  2,674  national  and  167  interna-
tional  patent  applications  and  more 
than  700  registered  patents  since 
2008.  Leading  the  development  of 

new  technologies,  Turkcell  Teknoloji 
issued  23  academic  and  95  technical 
publications  on  national  and  interna-
tional  platforms  in  2020  which  posi-
tively  impacted  the  increased  use  of 
technology.  Moreover,  the  technology 
experience of the ecosystem has been 
increased by sustained intensive prod-
uct  promotion,  conference  participa-
tion and training activities over various 
channels.

Lifecell Ventures
Established  as  a  100%  Turkcell  sub-
sidiary 
in  the  Netherlands,  Lifecell 
Ventures’s  mission  is  to  offer  digital 
communication, content-based enter-
tainment,  music,  TV  applications  and 
technology  solutions  developed  by 
Turkcell  Group  companies  and  tech-
nology  partners  to  the  global  market. 
In 2017, the company launched its first 
international  digital  solution  partner-
ship  with  the  Eastern  Europe  opera-
tor Moldcell with its “BiP” and “lifebox” 
products.  lifecell  Ventures  expanded 
digital  solution  partnerships  in  2019 
through  the  launch  of  “BiP”  and  “life-
box”  with  ALBtelecom,  the  Albanian 
mobile  operator.  With  the  agreement 
signed  with  Lifecell  Ventures  in  Jan-
uary  2019,  Digicel  launched  BiP,  Billo 
(lifebox) and PlayGo (TV+) products in 
32 countries in the Caribbean, Central 
America,  and  Asia  Pacific  regions  as 
of  fourth  quarter  2020,  adding  them 
to  its  digital  services  portfolio.  Digicel 
is  also  able  to  follow  trends  instantly 

Türkiye’nin  Otomobili  Girişim  Grubu 
Sanayi Ve Ticaret A.Ş.
Türkiye’nin  Otomobili  Girişim  Grubu 
Sanayi  ve  Ticaret  A.Ş.  (TOGG)  was 
established  on  June  25,  2018  within 
the framework of Turkey’s Automobile 
Project  implemented  through  the  co-
ordination  of  The  Republic  of  Turkey 
Ministry  of  Industry  and  Technology 
and The Union of Chambers and Com-
modity Exchanges of Turkey. As one of 
the  founding  partners  of  this  compa-
ny with a 19% shareholding, we aim to 
be  involved  in  fields  promising  great 
potential  such  as  connected  vehicles, 
smart  cities  and  intelligent  transpor-
tation.  TOGG,  aiming  to  develop  new 
generation  electric  and  connected 

cars  and  to  create  a  mobility  eco-
system  around  those,  communicated 
the  progress  achieved  in  design  and 
engineering  work  to  public  and  in-
troduced  the  C-SUV  concept  vehicle 
along with C-Sedan model at the un-
veiling  ceremony  in  December  2019. 
The ground-breaking ceremony of the 
factory  took  place  in  Gemlik  /  Bursa 
on  July  18,  2020.  The  construction  of 
the  factory,  where  fully  electric  SUVs 
in  2022  and  then  sedan  models  will 
be  manufactured,  is  aimed  for  com-
pletion within 18 months. We will con-
tinue  to  support  the  electric  powered 
and  brand-new  automobile  platform 
which is also in-line with Turkcell’s sus-
tainability focus.

with RTM (Real Time Monitoring Solu-
tion)  and  RTA  (Real  Time  Action  Solu-
tion)  technology  solutions,  and  has 
gained  the  competence  to  make  the 
best  offer  to  its  customers.  Lifecell 
Ventures  makes  a  significant  contri-
bution  to  digital  export  targets  by  in-
creasing the penetration of digital ser-
vices and technology solutions, and by 
providing strong business partnerships 
all over the world.

Turkcell Enerji Çözümleri ve Elektrik 
Satış Ticaret A.Ş.  (Turkcell Energy 
Solutions)
Having  commenced  its  operations  in 
2018  with  the  “Enerjicell”  brand,  Turk-
cell  Enerji  Çözümleri  ve  Elektrik  Satış 
Ticaret  A.Ş.,  became  one  of  the  most 
important free-market electricity sup-
pliers in Turkey in terms of the number 
of  registered  counters  in  2019  serving 
its retail and corporate customers. En-
erjicell,  which  focused  on  corporate 
customers  in  2020,  aims  to  change 
towards  creating 
existing  practice 
customer  experience  in  the  industry 
through its superior service quality. 

Continuing  its  retail  electricity  service 
business,  Enerjicell  also  expanded  its 
business  into  renewable  energy  gen-
eration  in  2019.  Throughout  the  year, 
Enerjicell pioneered renewable energy 
investments in Turkcell’s buildings with 
self-generated  electricity  consump-
tion  model.  The  company  engaged 
in  and  completed  rooftop  solar  panel 
projects, including the one in newly es-
tablished Ankara datacenter. Planning 
to  continue  its  renewable  energy  in-
vestments  in  the  coming  years,  Ener-
jicell  aims  to  transform  Turkcell  into  a 
company, which will have carbon free 
emissions  and  generate  electricity 
from environmentally-friendly resourc-
es. 

Turkcell  Sales and Digital Business 
Services
Turkcell  Digital  Services  was  estab-
lished  in  early  January  2019  in  order 
to accompany our customers on their 
digital transformation journey and lead 
them  as  a  strategic  technology  part-
ner  in  this  field  by  adding  IT  compe-
tencies  to  Turkcell’s  superior  telecom 
infrastructure  and  competencies.  As 
one of the companies most invested in 
Turkey’s human resources and technol-
ogies, our main goal is to be a reliable 
technology partner that provides end-
to-end, key solutions to our customers. 
We provide services in many different 
areas, including access services, cloud 
technologies,  data  center  services, 
cyber security services, managed ser-
vices,  internet  of  things,  big  data  an-
alytics,  business  applications,  sectoral 
solutions, and new generation technol-
ogies,  which  we  offer  to  our  custom-
ers  on  our  strong  infrastructure. While 
satisfying  the  telecommunication  and 
IT  needs  of  corporations  with  Turkcell 
assurance,  expertise,  and  difference, 
we  will  remain  motivated  to  further 
improving our service quality and de-
veloping  products  and  services  day 
by day in accordance with needs and 
expectations of our customers. We will 
continue to achieve this by leveraging 
our  superior  infrastructure,  technology 
investments  and  highly-skilled  human 
capital.  By  integrating  our  customers’ 
existing infrastructure investments with 
new generation services, we build and 
implement  their  future  technology  in-
vestments  together.  This  allows  our 
customers to advance on their digital 
transformation  journey  with  the  most 
appropriate  financial  model  and  with 
new technology investment plans, en-
abling  them  to  focus  more  on  their 
own business. 

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254

Subsequent events after
the reporting period

January 08, 2021

Announcement Regarding the Decision to Issue Lease Certificates

Our Company’s Board of Directors resolved that our wholly owned subsidiary Turkcell Ödeme ve Elektronik Para Hizmetleri 
A.Ş  shall  issue  management  agreement  based  lease  certificates  (sukuk)  in  accordance  with  capital  markets  legislation 
through  an  asset  leasing  company  at  an  amount  of  up  to  TRY200  million,  in  Turkish  Lira  terms,  with  maturities  up  to  12 
months, in the domestic market, in one or more tranches, without public offering, as private placement and/or to be sold to 
institutional investors. The respective issuance is subject to approval of Capital Markets Board.

January 11, 2021

Announcement Regarding the News in the Media - Ziraat Bank Loan

This announcement concerns news and comments in the media which reportedly includes our Company regarding a loan 
granted by Ziraat Bank to a company located outside of Turkey. We neither utilized the respective loan nor we are a party 
to  the  loan  agreement  directly  or  indirectly.  In  this  respect,  the  relevant  loan  has  no  impact  on  our  Company’s  financial 
statements.     

January 29, 2021

Announcement Regarding Turkcell Human Rights Policy and Turkcell Environmental Policy

Our Company’s Board of Directors approved Turkcell Human Rights Policy and Turkcell Environmental Policy, which are at-
tached below.

January 29, 2021

Announcement Regarding the Board Member Appointment

Our Company’s Board of Directors has decided to appoint Ms. Figen Kılıç as a Board Member to the seat, which became 
vacant following Ms. Ingrid Maria Stenmark’s resignation, pursuant to Article 363 of the Turkish Commercial Code.

February 03, 2021

Announcement Regarding the Capital Increase in Lifecell Ventures

The  capital  of  our  100%  owned  subsidiary  Lifecell  Ventures  Coöperatief  U.A.  (“Lifecell  Ventures”)  is  increased  by  EUR 
15,000,000. Our Company’s pre-emption rights with respect to the capital increase is fully paid.

March 08, 2021 

Announcement Regarding the Incorporation of Turkcell Dijital İş Servisleri A.Ş. 

Turkcell Dijital İş Servisleri A.Ş. with a capital of TRY 100,000, and the shares of which are fully owned by our Company’s 
subsidiary Superonline İletişim Hizmetleri A.Ş. has been incorporated and registered.

The  public  disclosure  regarding  the  incorporation  of  the  company  was  postponed  by  respective  board  decision  since  it 
could have impacted investment decision of investors and stock price.

Statement of compliance with corporate 
governance principles for the year 2020

Turkcell İletişim Hizmetleri A.Ş. (“Turkcell” or the “Company”) is aware of its responsibilities towards its stakeholders, with the 
belief that high standards of corporate governance are key to maintain successful business practices and to provide long-
term  economic  value  to  the  company’s  shareholders.  Within  this  framework,  having  adopted  the  principles  of  “equality,” 
“transparency,”  “accountability”  and  “responsibility”  that  constitute  the  basis  of  corporate  governance  in  its  activities,  the 
Company exercises due diligence with regard to compliance with the Capital Markets Law (“CML”) and the secondary reg-
ulations and resolutions of the Capital Markets Board (“CMB”). 

In parallel with corporate governance efforts established with the creation of the Investor Relations Department at the time 
of the IPO, and gained momentum in 2003, corporate governance mechanisms are being implemented in line with the cor-
porate governance principles.  

Turkcell İletişim Hizmetleri A.Ş. places a great importance on the full compliance with Corporate Governance Principles. 

In the activity period that ended as of 31 December 2020, as the amendments in the articles of association provided the 
legal ground for the election of independent board members in the following general assembly meetings, our company aims 
full compliance with the partially complied principle numbered 4.3.7, as mandated in the annexes of the Corporate Govern-
ance Communiqué and in the relevant legislation.      

On 21 October 2020, the following main amendments to the articles of association regarding corporate governance have 
been approved by the ordinary general assembly: 

(i) The size of the board of directors has been increased from seven members to a total of nine members; 

(ii) 15% of the total issued shares of Turkcell, owned by TVF Bilgi Teknolojileri İletişim Hizmetleri Yatırım Sanayi ve Ticaret 
Anonim Şirketi (“TVF BTIH”) as the surviving entity from the Turkcell Holding A.S. (“Turkcell Holding”) / TVF BTIH merger, 
have been re-classified as a separate class of Group A Shares (the “Group A Shares”); 

(iii)  A  nomination  privilege  has  been  created  on  the  Group  A  Shares,  allowing  the  holders  thereof  to  nominate  four 
candidates for appointment of five members of the board of directors of the Company; a voting privilege has been 
created on the Group A Shares, allowing the holders thereof to cast six votes for each Group A Share in respect of 
the appointment of a. five members of the board of directors of the Company, and b. the chairman of the presiding 
committee of the general assembly of shareholders;

(iv) All shareholders of the Company (including the holders of Group A Shares) are entitled to cast one vote per share on 
all other matters submitted to a vote of Turkcell’s shareholders, including the appointment of the residual four mem-
bers of the board of directors of Turkcell (including independent ones); 

(v) The chairman of the board of directors shall be elected among the members of the board of directors elected through 

the exercise of the privileges granted to Group A Shares; 

(vi)  The  meeting  quorum  requirement  of  the  board  of  directors  requires  five  members  constituting  the  majority  of  full 
number of its members, and the decision quorum requires the affirmative vote of at least five members present in 
the meeting; 

(vii) A new article “Compliance with Corporate Governance Principles” is added to the articles of association. 

Although  full  compliance  with  non-mandatory  corporate  governance  principles  provided  for  in  the  relevant  legislation  is 
aimed, it has yet to be achieved due to the challenges in the implementation of certain principles, the incompatibilities be-
tween some principles and the current structure of the Company and the market.  

Currently, the principles yet to be fully complied with so far have not led to any conflicts of interest between the stakeholders. 

In the activity period that ended as of 31 December 2020, necessary explanations are provided in the annual report; (i) the 
Corporate Governance Compliance Report (“CGCR”) and (ii) the Corporate Governance Fact Sheet (“CGFS”) and (iii) other 
relevant sections of the annual report as to the corporate governance principles in the annexes of the Communiqué on Cor-
porate Governance with which the compliance is achieved as well as the ones that are not yet complied with. 

Taking into account the amendments of the regulations and the practices, future efforts will continue to improve our corpo-
rate governance practices including the limited number of unimplemented principles and, to ensure, within the framework 
of  these  principles,  the  better  operation  of  the  mechanisms  with  respect  to  the  corporate  governance  practices  of  the 
partnership. 

Should the CGCR or CGFS be amended within the activity period, a material event disclosure will be made, and this amend-
ment will be included in the interim activity reports.

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256

2020 financial year Corporate 
Governance Compliance Report

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

1.1. FACILITATING THE EXERCISE OF SHAREHOLDER 
RIGHTS

1.1.2 - Up-to-date information and disclosures 
which may affect the exercise of shareholder 
rights are available to investors at the corporate 
website.

1.2. RIGHT TO OBTAIN AND REVIEW INFORMATION

1.2.1- Management did not enter into any 
transaction that would complicate the conduct 
of special audit.

1.3. GENERAL ASSEMBLY

1.3.2- The company ensures the clarity of the 
General Assembly agenda, and that an item on 
the agenda does not cover multiple topics.

1.3.7- Insiders with privileged information 
have informed the board of directors about 
transactions conducted on their behalf within 
the scope of the company’s activities in order 
for these transactions to be presented at the 
General Shareholders’ Meeting.

1.3.8- Members of the board of directors who 
are concerned with specific agenda items, 
auditors, and other related persons, as well 
as the officers who are responsible for the 
preparation of the financial statements were 
present at the General Shareholders’ Meeting.

X

X

X

X

1.3.10- The agenda of the General Shareholders’ 
Meeting included a separate item detailing the 
amounts and beneficiaries of all donations and 
contributions.

X

1.3.11 - The General Shareholders’ Meeting 
was held open to the public, including the 
stakeholders, without having the right to speak.

X

1.4. VOTING RIGHTS

1.4.1 - There is no restriction preventing 
shareholders from exercising their shareholder 
rights.

X

X

No information regarding 
this kind of activities were 
received from such person 
following the routine 
information requests 
made before the general 
assembly meetings.

Donations and charities 
are included seperately 
on the general assembly 
agenda; but information 
regarding the amount 
and beneficiaries of these 
donations and charities 
are given separetely in 
the general assembly 
meeting within the scope 
of shareholders’ right to 
obtain information.
Results of general 
assembly meeting 
has been shared 
with the media 
through press 
release.

X

X

1.4.2-The company does not have shares that 
carry privileged voting rights.

1.4.3- The company withholds from exercising 
its voting rights at the General Shareholders’ 
Meeting of any company with which it has 
cross-ownership, in case such cross-ownership 
provides management control.

1.5. MINORITY RIGHTS

1.5.1- The company pays maximum diligence to 
the exercise of minority rights.

1.5.2- The Articles of Association extend the use 
of minority rights to those who own less than 
one twenthieth of the outstanding shares, and 
expand the scope of the minority rights.

1.6. DIVIDEND RIGHT

1.6.1 - The dividend policy approved by the 
General Shareholders’ Meeting is posted on the 
company website.

1.6.2 - The dividend distribution policy comprises 
the minimum information to ensure that the 
shareholders can have an opinion on the 
procedure and principles of dividend distributions 
in the future.

1.6.3 - The reasons for retaining earnings, and 
their allocations, are stated in the relevant 
agenda item.

1.6.4 - The board reviewed whether the dividend 
policy balances the benefits of the shareholders 
and those of the company.

X

X

X

X

X

1.7. TRANSFER OF SHARES

1.7.1 - There are no restrictions preventing shares 
from being transferred.

X

2.1. CORPORATE WEBSITE

2.1.1 - The company website includes all elements 
listed in Corporate Governance Principle 2.1.1.

X

Please see AoA: Article 
7.2 and 7.3 https://s.
turkcell.com.tr/SiteAssets/
Hakkimizda/yatirimci-
iliskileri/documents/pdf/
Anasozlesme21102020_
ENG.pdf

Tresholds determined by 
the respective legislation 
are in effect.

X

Turkcell distributed 
dividend in 2020.

Without prejudice to 137/3, 
due to Article 7.5 of the 
AoA we ticked the “Partial” 
box.

257

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
258

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

2.1.2- The shareholding structure (names, 
privileges, number and ratio of shares, and 
beneficial owners of more than 5% of the issued 
share capital) is updated on the website at least 
every 6 months.

2.1.4 - The company website is prepared in other 
selected foreign languages, in a way to present 
exactly the same information with the Turkish 
content.

2.2. ANNUAL REPORT

2.2.1 - The board of directors ensures that the 
annual report represents a true and complete 
view of the company’s activities.

2.2.2 - The annual report includes all elements 
listed in Corporate Governance Principle 2.2.2.

3.1. CORPORATION’S POLICY ON STAKEHOLDERS

3.1.1- The rights of the stakeholders are protected 
pursuant to the relevant regulations, contracts 
and within the framework of bona fides 
principles.

3.1.3 - Policies or procedures addressing 
stakeholders’ rights are published on the 
company’s website.

3.1.4 - A whistleblowing programme is in place 
for reporting legal and ethical issues.

3.1.5 - The company addresses conflicts of 
interest among stakeholders in a balanced 
manner.

3.2. SUPPORTING THE PARTICIPATION OF 
THE STAKEHOLDERS IN THE CORPORATION’S 
MANAGEMENT 

3.2.1 - The Articles of Association, or the internal 
regulations (terms of reference/manuals), 
regulate the participation of employees in 
management.

3.2.2 - Surveys/other research techniques, 
consultation, interviews, observation method 
etc. were conducted to obtain opinions from 
stakeholders on decisions that significantly affect 
them.

X

X

X

X

X

X

X

X

X

X

(Communique on 
Material Events Disclosure 
Article-16/2) Central 
Securities Depository is 
updating the respective 
information available in 
PDP under the General 
Information heading. 
We also disclose these 
information as sourced by 
CSD on our website.

Corporate web site 
related to public is 
available in English, Arabic 
and Russian language in 
addition to that Investor 
Relations page is provided 
both in Turkish and in 
English.

Employees’ participation 
to the management is 
facilitated through internal 
regulations of the compa-
ny and various company 
practices.

3.3. HUMAN RESOURCES POLICY

3.3.1 - The company has adopted an 
employment policy ensuring equal opportunities, 
and a succession plan for all key managerial 
positions.

3.3.2 - Recruitment criteria are documented.

3.3.3 - The company has a policy on human 
resources development, and organises trainings 
for employees.

3.3.4 - Meetings have been organised to 
inform employees on the financial status of 
the company, remuneration, career planning, 
education and health.

3.3.5 - Employees, or their representatives, were 
notified of decisions impacting them. The opinion 
of the related trade unions was also taken.

3.3.6 - Job descriptions and performance 
criteria have been prepared for all employees, 
announced to them and taken into account to 
determine employee remuneration.

3.3.7 - Measures (procedures, trainings, raising 
awareness, goals, monitoring, complaint 
mechanisms) have been taken to prevent 
discrimination, and to protect employees 
against any physical, mental, and emotional 
mistreatment.

3.3.8 - The company ensures freedom of 
association and supports the right for collective 
bargaining.

3.3.9 - A safe working environment for 
employees is maintained.

3.4. RELATIONS WITH CUSTOMERS AND SUPPLIERS

3.4.1- The company measured its customer 
satisfaction, and operated to ensure full 
customer satisfaction.

3.4.2 - Customers are notified of any delays in 
handling their requests.

3.4.3 - The company complied with the quality 
standards with respect to its products and 
services.
3.4.4 - The company has in place adequate 
controls to protect the confidentiality of sensitive 
information and business secrets of its customers 
and suppliers.

X

X

X

X

X

X

X

X

X

X

X

X

X

We do not have a 
syndicate.

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
260

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

3.5. ETHICAL RULES AND SOCIAL RESPONSIBILITY

3.5.1 - The board of the corporation has adopted 
a code of ethics, disclosed on the corporate 
website.

3.5.2- The company has been mindful of its 
social responsibility and has adopted measures 
to prevent corruption and bribery.

4.1. ROLE OF THE BOARD OF DIRECTORS

4.1.1- The board of directors has ensured 
strategy and risks do not threaten the long-term 
interests of the company, and that effective risk 
management is in place.
4.1.2- The agenda and minutes of board 
meetings indicate that the board of directors 
discussed and approved strategy, ensured 
resources were adequately allocated, and 
monitored company and management 
performance.

4.2. ACTIVITIES OF THE BOARD OF DIRECTORS

4.2.1- The board of directors documented its 
meetings and reported its activities to the 
shareholders.

4.2.2- Duties and authorities of the members of 
the board of directors are disclosed in the annual 
report.

4.2.3 - The board has ensured the company has 
an internal control framework adequate for its 
activities, size and complexity.

4.2.4- Information on the functioning and 
effectiveness of the internal control system is 
provided in the annual report.

4.2.5 - The roles of the Chairman and Chief 
Executive Officer are separated and defined.

4.2.7-The board of directors ensures that the 
Investor Relations department and the corporate 
governance committee work effectively. 
The board works closely with them when 
communicating and settling disputes with 
shareholders..

4.2.8 - The company has subscribed to a 
Directors and Officers liability insurance covering 
more than 25% of the capital.

X

X

X

X

X

X

X

X

X

X

X

Since duties and 
responsibilities of the 
Board of Directors are 
determined by the 
Commercial Code we do 
not have specific chapter 
in our annual report 
regarding this topic.

The roles of chairman and 
chief executive officer our 
Company is seperate.

This year’s policy limit for 
Directors and Officers 
liabiliy did not exceed 25% 
of the company capital.

X

We do not have a policy 
which restrains female 
candidates from being 
appointed as a board 
member.

Due to the epidemic, all 
members  attended the 
meetings either online or 
physically. 

4.3. STRUCTURE OF THE BOARD OF DIRECTORS

4.3.9- The board of directors has approved 
the policy on its own composition, setting a 
minimal target of 25% for female directors. The 
board annually evaluates its composition and 
nominates directors so as to be compliant with 
the policy.

4.3.10 - At least one member of the audit 
committee has 5 years of experience in audit/
accounting and finance.

4.4. BOARD MEETING PROCEDURES

4.4.1 - Each board member attended the 
majority of the board meetings in person.

4.4.2 - The board has formally approved a 
minimum time by which information and 
documents relevant to the agenda items should 
be supplied to all board members.

4.4.3 - The opinions of board members that 
could not attend the meeting, but did submit 
their opinion in written format, were presented to 
other members.

4.4.4 - Each member of the board has one vote.

4.4.5 - The board has a charter/written internal 
rules defining the meeting procedures of the 
board.

4.4.6 - Board minutes document that all items on 
the agenda are discussed, and board resolutions 
include director’s dissenting opinions if any.

X

X

X

X

X

X

X

4.4.7 - There are limits to external commitments 
of board members. Shareholders are informed 
of board members’ external commitments at the 
General Shareholders’ Meeting.

X

There is no rule which 
restricts board member 
to serve outside the 
company.

261

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
262

Company Compliance Status

Yes

Partial

No Exempted

Not 
Applicable

Explanation

4.5. BOARD COMMITTEES

4.5.5 - Board members serve in only one of the 
Board’s committees.

4.5.6- Committees have invited persons to the 
meetings as deemed necessary to obtain their 
views.

4.5.7 - If external consultancy services are used, 
the independence of the provider is stated in the 
annual report.

4.5.8 - Minutes of all committee meetings are 
kept and reported to board members.

4.6. FINANCIAL RIGHTS

4.6.1 - The board of directors has conducted 
a board performance evaluation to review 
whether it has discharged all its responsibilities 
effectively.

4.6.4 - The company did not extend any loans to 
its board directors or executives, nor extended 
their lending period or enhanced the amount of 
those loans, or improve conditions thereon, and 
did not extend loans under a personal credit title 
by third parties or provided guarantees such as 
surety in favour of them.

X

X

X

4.6.5 - The individual remuneration of board 
members and executives is disclosed in the 
annual report.

X

X

X

Due to the number of 
the board of members, 
they are serving as a 
committee member in 
more than one comittee.

X

No service has been 
received from an outside 
counsel in 2020.

Board of Directors’ 
performance has not been 
evaluated.

Aggregate amount of the 
remuneration of board 
members and executives 
is disclosed in the annual 
report.

Corporate Governance Information Form

1. SHAREHOLDERS

1.1. Facilitating the Exercise of Shareholders Rights

The number of investor meetings (conference, seminar/etc.) organised by the 
company during the year

1.2. Right to Obtain and Examine Information

The number of special audit request(s)

The number of special audit requests that were accepted at the General 
Shareholders’ Meeting

1.3. General Assembly

Link to the PDP announcement that demonstrates the information requested 
by Principle 1.3.1. (a-d)

Whether the company provides materials for the General Shareholders’ 
Meeting in English and Turkish at the same time

The links to the PDP announcements associated with the transactions that 
are not approved by the majority of independent directors or by unanimous 
votes of present board members in the context of Principle 1.3.9
The links to the PDP announcements associated with related party 
transactions in the context of Article 9 of the Communique on Corporate 
Governance (II-17.1)
The links to the PDP announcements associated with common and 
continuous transactions in the context of Article 10 of the Communique on 
Corporate Governance (II- 17.1)

The name of the section on the corporate website that demonstrates the 
donation policy of the company

The relevant link to the PDP with minute of the General Shareholders’ Meeting 
where the donation policy has been approved

In 2020, Investor Relations Department 
attended 19 investor conferences, 15 of 
which was held virtually and 4 was physi-
cally and held 506 meetings in total with 
analysts and corporate investment funds.

0

0

https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
general-assembly-information

Provided in English as well.

No transaction has been executed in the 
context of Principle 1.3.9

No related party transactions has been 
executed above the tresholds.

No related party transactions has been 
executed above the treshold.

https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
donation-policy

https://www.kap.org.tr/en/Bildirim/517918

The number of the provisions of the articles of association that discuss the 
participation of stakeholders to the General Shareholders’ Meeting

Identified stakeholder groups that participated in the General Shareholders’ 
Meeting, if any

Not available.

Not available.

1.4. Voting Rights

Whether the shares of the company have differential voting rights

Yes

In case that there are voting privileges, indicate the owner and percentage of 
the voting majority of shares.

Please see AoA: Article 7.2 and 7.3
https://s.turkcell.com.tr/SiteAssets/
Hakkimizda/yatirimci-iliskileri/documents/
pdf/Anasozlesme21102020_ENG.pdf

The percentage of ownership of the largest shareholder

26.2%

1.5. Minority Rights

Whether the scope of minority rights enlarged (in terms of content or the 
ratio) in the articles of the association

No

If yes, specify the relevant provision of the articles of association.

Not available.

1.6. Dividend Right

The name of the section on the corporate website that describes the 
dividend distribution policy

Minutes of the relevant agenda item in case the board of directors proposed 
to the general assembly not to distribute dividends, the reason for such 
proposal and information as to use of the dividend.

PDP link to the related general shareholder meeting
minutes in case the board of directors proposed to the general assembly not 
to distribute dividends.

https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
dividend-policy

Dividends are distributed in 2020.

Dividends are distributed in 2020.

263

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
264

General Assembly Meetings

The number 
of information 
requests 
received by 
the company 
regarding the 
clarification 
of the agenda 
of the General 
Shareholders’ 
Meeting

General 
Meeting 
Date

Shareholder 
participation 
rate to the 
General 
Shareholders’ 
Meeting

Percentage 
of shares 
directly 
present at 
the GSM

Percentage 
of shares 
represented 
by proxy

Specify the name of the page of the corporate 
website that contains the General Shareholders’ 
Meeting minutes, and also indicates for each 
resolution the voting levels for or against

Specify the 
name of the 
page of the 
corporate 
website that 
contains all 
questions asked 
in the general 
assembly 
meeting and 
all responses to 
them

The number 
of the relevant 
item or 
paragraph 
of General 
Shareholders’ 
Meeting 
minutes in 
relation to 
related party 
transactions

The number of 
declarations 
by insiders 
received by 
the board of 
directors

3. STAKEHOLDERS

3.1. Corporation’s Policy on Stakeholders

The name of the section on the corporate website that demonstrates the 
employee remedy or severance policy

It is not disclosed in the website of the 
Company.

The number of definitive convictions the company was subject to in relation to 
breach of employee rights
The position of the person responsible for the alert mechanism (i.e. 
whistleblowing mechanism)

7

Ethics Committee

The link to the related PDP general 
shareholder meeting notification

The contact detail of the company alert mechanism

E-mail: ethicscommittee@turkcell.com.tr 
Adres: Turkcell İletişim Hizmetleri A.Ş. Etik 
Kurulu Aydınevler Mah. İnönü Cad. No.20, 
Küçükyalı / İstanbul

21/10/2020 0

80%

0.01%

79.99%

https://s.turkcell.com.tr/SiteAssets/Hakkimizda/
yatirimci-iliskileri/documents/pdf/2019GK-
tutanak-ENG.pdf

No question 
submitted

N/A

0

https://www.kap.org.tr/en/Bildirim/882825

2. DISCLOSURE AND TRANSPARENCY

2.1. Corporate Website

Specify the name of the sections of the website providing the information 
requested by the Principle 2.1.1.

If applicable, specify the name of the sections of the website providing the 
list of shareholders (ultimate beneficiaries) who directly or indirectly own 
more than 5% of the shares.

List of languages for which the website is available

2.2. Annual Report

The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information requested by principle 2.2.2.

a) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the duties of the members of the board of 
directors and executives conducted out of the company and declarations on 
independence of board members.

b) The page numbers and/or name of the sections in the Annual Report 
that demonstrate the information on committees formed within the board 
structure.

c) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the number of board meetings in a year and 
the attendance of the members to these meetings.

ç) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on amendments in the legislation which may 
significantly affect the activities of the corporation.

d) The page numbers and/or name of the sections in the Annual Report 
that demonstrate the information on significant lawsuits filed against the 
corporation and the possible results thereof.
e) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the conflicts of interest of the corporation 
among the institutions that it purchases services on matters such as 
investment consulting and rating and the measures taken by the corporation 
in order to avoid from these conflicts of interest

https://www.turkcell.com.tr/en/aboutus/
investor-relations,
https://www.kap.org.tr/en/sirket-bilgileri/
genel/1103-turkcell-iletisim-hizmetleri-a-s

https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
shareholder-structure,
https://www.kap.org.tr/en/sirket-bilgileri/
genel/1103-turkcell-iletisim-hizmetleri-a-s

Turkish, English, Arabic (Partial) and 
Russian (Partial)

Information provided in the Annual Report 
under Other Issues Regarding Corporate 
Governance section.

Information provided in our website 
under “Investor Relations>Corporate 
Governance>Board Committees” heading 
and in the Corporate Governance 
Information Filings under section 4 which 
is attached to our annual report.

Information provided in the Corporate 
Governance Information Filings, which 
is attached to our annual report, under 
Section 4.
Information provided in the Annual 
Report under Telecommunications Sector 
in Turkey and Developments in Our 
Company.
Information provided under note 38 of 
IFRS report which is attached to our 
Annual Report.

We did not receive such services in 2020.

f) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the cross ownership subsidiaries that the 
direct contribution to the capital exceeds 5%

Information provided under note 40 of 
IFRS report which is attached to our 
Annual Report.

g) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on social rights and professional training of the 
employees and activities of corporate social responsibility in respect of the 
corporate activities that arises social and environmental results

Information provided in the Annual Report 
under section Our Social Values and 
Relations.

3.2. Supporting the Participation of the Stakeholders in the Corporation’s 
Management

Name of the section on the corporate website that demonstrates the internal 
regulation addressing the participation of employees on management bodies

Corporate bodies where employees are actually represented

Not available.

Not available.

3.3. Human Resources Policy

The role of the board on developing and ensuring that the company has a 
succession plan for the key management positions

The name of the section on the corporate website that demonstrates the 
human resource policy covering equal opportunities and hiring principles. Also 
provide a summary of relevant parts of the human resource policy.

Whether the company provides an employee stock ownership programme

The name of the section on the corporate website that demonstrates the 
human resource policy covering discrimination and mistreatments and the 
measures to prevent them. Also provide a summary of relevant parts of
the human resource policy.

Board of Directors, when necessary, 
get involved in the procees through 
Nomination Committee within the 
framework of the Committee’s roles& 
responsibilities.

Hiring process is carried out by taking Equal 
Opportunities Policy into consideration 
under the responsibility of the HR Depart-
ment. During the hiring process objective 
criteria such as; a.Being Turkish citizen or 
having work permit in Turkey b.Termination 
of military service c.Not to be deprived from 
civil rights d.Not to have a disease that will 
prevent him/her from working or pose a 
threat to the environment  e.Not to be sen-
tenced for an infamous crime f.Not under 
obligation of an involuntary servitude g.To 
have a graduate degree h.To have required 
skills determined specifically to the title and 
role (such as experience, field of graduation, 
certificate etc.) ı.”Close Relatives” (Spouses, 
brothers/sisters, children, father, mother, un-
cle, maternal aunt, paternal aunt) of people 
working in Turkcell Group companies may 
not be employed in Turkcell Group Com-
panies. Employees with no past experience 
are assessed within the special hiring pro-
grams such as GnçYtnk. External candidate 
applications are made through My Career 
www.turkcell.com.tr

There isn’t any employee stock
ownership programme

https://www.turkcell.com.tr/todiek/
english.html

The number of definitive convictions the company is
subject to in relation to health and safety measures

Not available.

265

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Name of the Chairman

Name of the CEO

Bülent Aksu

Murat Erkan

If the CEO and Chair functions are combined: provide the link to the relevant 
PDP announcement providing the rationale for such combined roles

CEO and Chair functions are not com-
bined.

Link to the PDP notification stating that any damage that may be caused by 
the members of the board of directors during the discharge of their duties is 
insured for an amount exceeding 25% of the company’s capital

No disclosures have been made since 
the policy limit for Directors and Officers 
liability did not exceed 25% of company 
capital.

The name of the section on the corporate website that demonstrates current 
diversity policy targeting women directors

Not available.

The number and ratio of female directors within the Board of Directors

1 - 14% (Our woman board member Ingrid 
M. Stenmark resigned from her duty in 
October 2020)

Composition of Board of Directors

Name, Surname of 
Board Member

Bülent Aksu

Hüseyin Aydın

Whether 
Executive 
Director Or 
Not

Non-
executive

Non-
executive

Whether 
Independent 
Director Or 
Not

Not 
independent 
director

Not 
independent 
director

Link To PDP 
Notification That 
Includes The  
Independency
Declaration

The First 
Election Date 
To Board

07/03/2019

Not available

08/03/2019

Not available

Whether the Independent Director 
Considered By The Nomination
Committee

Not 
Applicable

Not 
Applicable

Tahsin Yazar

Non-
executive

Independent 
director

06/03/2020

https://www.kap.org.
tr/en/Bildirim/824811

Not considered

Afif Demirkıran

Non-
executive

Independent 
director

06/03/2020

https://www.kap.org.
tr/en/Bildirim/824811

Not considered

Nail Olpak

Non-
executive

Independent 
director

06/03/2020

https://www.kap.org.
tr/en/Bildirim/824811

Not considered

Whether 
She/He is the 
Director Who 
Ceased to 
Satisfy The 
Independence 
or Not

Not 
Applicable

Not 
Applicable

Not 
Applicable

Not 
Applicable

Not 
Applicable

Whether The Director Has 
At Least 5 Years’ Experience 
On Audit, Accounting And/Or 
Finance Or Not

Yes

Yes

No

No

Yes

266

3.5. Ethical Rules and Social Responsibility

The name of the section on the corporate website that demonstrates the 
code of ethics
The name of the section on the company website that demonstrates the 
corporate social responsibility report. If such a report does not exist, provide 
the information about any measures taken on environmental, social and
corporate governance issues.

Any measures combating any kind of corruption including embezzlement and 
bribery

https://www.turkcell.com.tr/todiek/
english.html

Corporate Social Responsibility

For our Company it is essential to carry 
out its activities in a fair, honest, legal 
and ethical manner. Turkcell Group Anti-
Bribery and Corruption (“ABC”) Policy 
demonstrates and reflects our Company’s 
Board of Director’s commitment to 
the highest prevailing national and 
international anti-corruption and bribery 
standards. Turkcell expects the same 
degree of commitment from group 
companies as well. Within the main 
framework of the ABC Policy; in April 2018 
Corporate Governance & ABC Program 
Office has been established and an 
ABC program which provides necessary 
risk based trainings and establishes 
internal communication, and takes 
necessary preventive measures to ensure 
compliance with the rules has been 
initiated. With the establishment of the 
ABC Office, direct and efficient channels 
have been designed to access the 
Board of Directors, its committees and 
Senior Management with respect to ABC 
compliance related matters. ABC Office 
is the first contact point so that values 
and processes set by the ABC Program 
to be understood well and set these in 
motion along with Company’s dynamics. 
(Please see https://www.turkcell.com.tr/
en/aboutus/investor-relations/corporate-
governance/anti-bribery-and-corruption-
policy to obtain more information on our 
ABC Policy). Starting from 1 January 2021, 
Corporate Governance & ABC Program 
Office continues its activities under the 
title of “Corporate Governance & Capital 
Markets Compliance Directorate” with 
the same direct reporting to Board and 
autonomous structure. 

4. BOARD OF DIRECTORS-I

4.2. Activity of the Board of Directors

Date of the last board evaluation conducted

No evaluation has been conducted.

Whether the board evaluation was externally facilitated 

Whether all board members released from their duties at the GSM

No

Yes

Name(s) of the board member(s) with specific delegated duties and 
authorities, and descriptions of such duties

There is no executive member within 
the Board of Directors and all board 
members have A group
signature authorization.

Number of reports presented by internal auditors to the audit committee or 
any relevant committee to the board

12

Specify the name of the section or page number of the annual report that 
provides the summary of the review of the effectiveness of internal controls

Information provided in the Annual Report 
under Efficient Risk and Crisis
Management section.

267

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
268

4. BOARD OF DIRECTORS-II

4.4. Meeting Procedures of the Board of Directors

Number of physical board meetings in the reporting period 
(meetings in person)

Director average attendance rate at board meetings

Whether the board uses an electronic portal to support its work or not

8

100%

No

Number of minimum days ahead of the board meeting to provide information 
to directors, as per the board charter

5 days before the meeting.

The name of the section on the corporate website that demonstrates 
information about the board charter

We do not disclose the charter in the 
company’s website.

Number of maximum external commitments for board members as per the 
policy covering the number of external duties held by directors

We do not have such policy.

4.5. Board Committees

Page numbers or section names of the annual report where information 
about the board committees are presented

Link(s) to the PDP announcement(s) with the board committee charters

Information provided in our website 
under “ Investor Relations> Corporate 
Governance> Board Committees” 
heading and in the Corporate 
Governance Information Filings under 
section 4 which is attached to our annual 
report.

https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
board-committees

Composition of Board Committees-I

Names Of The Board Committees

Name Of Committees 
Defined As “ Other” In The 
First Column

Name-Surname 
of Committee 
Members

Whether 
Committee 
Chair Or Not

Whether Board Member 
Or Not

Audit Committee

Audit Committee

Audit Committee

Corporate Governance Committee

Corporate Governance Committee

Corporate Governance Committee

Corporate Governance Committee

Nomination Committee

Nomination Committee

Nomination Committee

Early Detection of Risk Committee

Early Detection of Risk Committee

Early Detection of Risk Committee

Remuneration Committee

Remuneration Committee

Remuneration Committee

Nail Olpak

Afif Demirkıran

Tahsiz Yazar

Tahsin Yazar

Nail Olpak

Yes

No

No

Yes

No

Board member

Board member

Board member

Board member

Board member

Ali Serdar Yağcı No

Not board member

Emre Alpman

No

Not board member

Afif Demirkıran

Yes

Board member

Bülent Aksu

Tahsin Yazar

Tahsin Yazar

No

No

Yes

Board member

Board member

Board member

Afif Demirkıran

No

Board member

Hüseyin Aydın

Tahsin Yazar

Bülent Aksu

Nail Olpak

No

Yes

No

No

Board member

Board member

Board member

Board member

4. BOARD OF DIRECTORS-III

4.5. Board Committees-II

Specify where the activities of the audit committee are presented in your 
annual report or website (Page number or section name in the annual report/
website)

Specify where the activities of the corporate governance committee are 
presented in your annual report or website (Page number or section name in 
the annual report/website)

Specify where the activities of the nomination committee are presented in 
your annual report or website (Page number or section name in the annual 
report/website)

Specify where the activities of the early detection of risk committee are 
presented in your annual report or website (Page number or section name in 
the annual report/website)

Specify where the activities of the remuneration committee are presented in 
your annual report or website (Page number or section name in the annual 
report/website)

Not available in the annual report. Please 
see: https://www.turkcell.com.tr/en/
aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please 
see: https://www.turkcell.com.tr/en/
aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please 
see: https://www.turkcell.com.tr/en/
aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please 
see: https://www.turkcell.com.tr/en/
aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please 
see: https://www.turkcell.com.tr/en/
aboutus/investor-relations/corporate-
governance/board-committees

4.6. Financial Rights

Specify where the operational and financial targets and their achievement 
are presented in your annual report (Page number or section name in the 
annual report)

Information provided in the Annual Report 
under Turkcell Group: 2020 Operational 
and Financial Review section.

Specify the section of website where remuneration policy for executive and 
non-executive directors are presented.

https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
compensation-policy

Specify where the individual remuneration for board members and senior 
executives are presented in your annual report (Page number or section name 
in the annual report)

Information provided under note 39 of 
IFRS report which is attached to our 
Annual Report.

Composition of Board Committees-II

Name Of Committees 
Defined As “ Other” In The 
First Column

Names Of 
The Board
Committees

Audit Committee

Corporate Governance 
Committee

Nomination Committee

Early Detection of Risk Committee

Remuneration Committee

The 
Percentage
Of Non-
executive
Directors

The 
Percentage Of
Independent 
Directors
In The 
Committee

100%

100%

50

100%

100%

100%

50%

67%

67%

67%

The Number Of
Meetings Held In
Person

The Number Of 
Reports On Its 
Activities Submitted To
The Board 

8

2

0

6

3

8

2

0

6

3

269

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
270

Other issues regarding
corporate governance

Board Member 
Name-Surname

Duties Outside The Group: 
Company Name

Duties Outside The Group: Title/
Position

Still Working in the 
Related Company?

Ministry of Treasury and Finance of Republic 
of Turkey

Deputy Minister

He left his position on 
January 29, 2021.

World Bank

G20 

Deputy Governor at the World 
Bank

He left his position on 
January 29, 2021.

Deputy Minister of Finance at G20

Asian Infrastructure Investment Bank (AIIB)

Turkey Deputy Governor at AIIB

European Bank for Reconstruction and 
Development (EBRD)

Turkey Deputy Governor at EBRD

Islamic Development Bank (IsDB)

Turkey Executive Director at IDB

Asian Development Bank (ADB)

Turkey Governor at ADB

African Development Bank (AfDB)

Turkey Governor at AfDB

Economic Cooperation Organization Trade 
and Development Bank (ECOBANK)

Turkey Governor at ECOBANK

Black Sea Trade and Development Bank 
(BSTDB)

Turkey Governor at BSTDB

Pre-Accession Financial Cooperation Between 
Our Country and the European Union

National Authorizing Officer

Bülent Aksu

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

COMCEC (ISEDAK)

National Coordination Committee 
Membership

He left his position on 
January 29, 2021.

Islamic Financial Services Board (IFSB)

General Assembly Membership

Financial Stability Board (FSB)

General Assembly Membership

FSB Middle East and North Africa Regional 
Advisory Group (MENA)

Financial Stability and Development 
Committee (FİKKO)

Ministry of Treasury and Finance - High 
Disciplinary Board

Member

Member

Chairman of the Board

Financial Cooperation Coordination Board 
(Directorate for EU Affairs)

Member

T. Eximbank A.Ş.

Chairman of the Board of Directors

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.

He left his position on 
January 29, 2021.ww

Hüda Gıda San. Tic. Ltd. Sti

Founding Partner

Yes

Board Member 
Name-Surname

Duties Outside The Group: 
Company Name

Duties Outside The Group: Title/
Position

Still Working in the 
Related Company?

Pak Yatirim İnşaat San. ve Tic. A.Ş.

Chairman of the Board of Directors Yes

Nora Elektrik Malzemeleri San. ve Tic. A.Ş.

Chairman of the Board of Directors Yes

Omn İnşaat San. ve Tic. A.Ş.

Chairman of the Board of Directors Yes

Avrupa Otoyolu Yatirim ve İşletme A.Ş.

Member of the Board of Directors

Kmo Anadolu Otoyol İşletmesi A.Ş.

Member of the Board of Directors

Marmara Otoyolu Yatirim ve İşletme A.Ş.

Member of the Board of Directors

Yes

Yes

Yes

Marmara Otoyol İnşaati Adi Ortakliği Ticari 
İşletmesi

Member of the Board of Directors

Yes

Krp Otoyol Inşaati Adi Ortakliği Ticari İşletmesi Member of the Board of Directors

Yes

Andeva Özel Eğitim Inşaat ve Özel Sağlik 
Hizmetleri A.Ş.

Company Partner

T. Eximbank A.Ş.

Member of the Board of Directors

Arikonak Elektrik Enerjisi Üretim San. ve Tic. A.Ş.  Member of the Board of Directors

Naryuva Elektrik Enerjisi Üretim San. ve Tic. A.Ş. Member of the Board of Directors

Narören Elektrik Enerjisi Üretim San. ve Tic. A.Ş. Member of the Board of Directors

No

Yes

Yes

Yes

Yes

Kirkkavak Elektrik Enerjisi Üretim San. ve Tic. 
A.Ş.

Nargüvem Elektrik Enerjisi Üretim San. ve Tic. 
A.Ş.

Member of the Board of Directors

Yes

Member of the Board of Directors

Yes

Nail Olpak

Narboz Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Naryayla Elektrik Enerjisi Üretim San. ve Tic. A.Ş. Member of the Board of Directors

Nardeniz Elektrik Enerjisi Üretim San. ve Tic. A.Ş. Member of the Board of Directors

Narkas Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narger Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narsa Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narbel Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narba Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narka Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narya Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narkoca Elektrik Enerjisi Üretim San. ve Tic. A.Ş. Member of the Board of Directors

Kurfalli Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narma Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narkan Elektrik Enerjisi Üretim San. ve Tic. A.Ş.

Member of the Board of Directors

Narbal Elektrik Enerjisi Üretim San. ve Tic. A.Ş. 

Member of the Board of Directors

Nartok Elektrik Enerjisi Üretim San. ve Tic. A.Ş. 

Member of the Board of Directors

Narkara Elektrik Enerjisi Üretim San. ve Tic. A.Ş.  Member of the Board of Directors

Tahsin Yazar

Afif Demirkıran

-

-

-

-

TC Ziraat Bankası

CEO & Member of the Board of 
Directors

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

-

-

Yes

Hüseyin Aydın

Türkiye Bankalar Birliği Başkanlığı

Chairman of the Board of Directors Yes

Türkiye Varlık Fonu Yönetimi A.Ş.

Member of the Board of Directors

Yes

271

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
272

Conclusion of the 
Subsidiary Report

01.01.2020 - 31.12.2020 Fiscal Year

Conclusion  of  the  Report  on  the  relationship  among  the  Parent  Company  and  the  subsidiaries  as  per  Article  199  of  the 
Turkish Commercial Code:

Details of the legal transactions of our Company with Turkcell Holding A.Ş. and its subsidiaries during the fiscal year 2020 
are given in the above tables. There is neither any legal transaction made in favor of Turkcell Holding A.Ş or one of its sub-
sidiaries nor any action taken or avoided in favor of Turkcell Holding A.Ş. or one of its subsidiaries upon directive by Turkcell 
Holding A.Ş.

Details  of  services  provided  and/or  fixed  asset  purchases/sales  performed  under  operational  activities  carried  out  be-
tween our Company and Turkcell Holding A.Ş. and/or its subsidiaries that are fully in conformity with the market during the 
fiscal year 2020 are included in this Report.

273

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
274

Sectoral 
and financial 
information

276

Turkcell Group: 2020 financial & operational review

281

Forward looking statement

283

Our Companies and sector developments

288

Independent auditor’s report and consolidated financial statements

401

Our offices 

402

Glossary

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Group companies and other informationon corporate governanceTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
276

TURKCELL GROUP: 2020 FINANCIAL & OPERATIONAL REVIEW

Our  audited  annual  consolidated  financial  statements  including  our  consolidated  statements  of  financial  position  as  of 
December 31, 2020 and 2019 and our consolidated statements of profit and loss, comprehensive income, changes in equi-
ty and cash flows for the two years in the period ended December 31, 2020 and the related notes included in this annual 
report have been prepared in accordance with International Financial Reporting Standards as issued by the International 
Accounting  Standards  Board  (“IFRS  Report”).  The  following  financial  and  operational  overview  focuses  principally  on  the 
developments and trends in our business in the full year 2020 and should be read in conjunction with the IFRS report. The 
figures are expressed in Turkish Liras (TRY) unless otherwise stated. A year on year comparison of key indicators is provided 
and figures in parentheses following the operational and financial results for the year end 2020 refer to the same item for 
the year end of 2019 unless otherwise stated. In the tables totals may not foot due to rounding differences. The same applies 
to the calculations in the text. 

TURKCELL GROUP: FINANCIAL SUMMARY

Profit & Loss Statement (million TRY)

Revenue
Cost of revenue1 
Gross Margin1
Administrative expenses

Selling and marketing expenses

Net impairment loses on financial and contract assets
EBITDA2 
EBITDA Margin  
Depreciation and amortization
EBIT3 
EBIT Margin 
Net finance income / (costs)

Finance income4
Finance costs4

Other income / (expense)

Non-controlling interests

Share of profit of equity accounted investees

Income tax expense

Discontinued operations

Net Income  

FY19

25,137.1
(12,036.9)

52.1%
(779.8)

(1,555.2)

(338.9)

10,426.4

41.5%
(5,046.6)

5,379.9

21.4%
(1,727.7)

297.5

(2,025.1)

(346.6)

(30.2)

(15.7)

(785.6)

772.4

3,246.5

FY20

29,103.7
(14,361.3)

50.7%
(749.6)

(1,373.0)

(349.6)

12,270.3

42.2%
(5,974.8)

6,295.5

21.6%
(1,131.7)

2,119.5

(3,251.2)

(523.3)

(2.5)

(13.8)

(387.2)

-

4,237.1

%Change 

15.8%
19.3%

(1.4pp)
(3.9%)

(11.7%)

3.2%

17.7%

0.7pp
18.4%

17.0%

0.2pp
(34.5%)

612.4%

60.5%

51.0%

(91.7%)

(12.1%)

(50.7%)

-

30.5%

(1) Excluding depreciation and amortization expenses. 

(2) EBITDA is a non-GAAP financial measure. See page 17 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.

(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.

(4) Fair value loss and interest expense regarding derivative instruments and the respective fair value gain and interest income regarding derivative instruments are represented on a net 

basis. Starting from Q219, interest income on financial assets and interest expenses for financial liabilities, both measured at amortized cost, are represented on a net basis. Historical 

periods were restated to reflect this change.

Consolidated Balance Sheet Data (Year End) (million TRY)
Cash and cash equivalents

Total assets
Long term debt

Total debt

Total liabilities

Total equity

2019
10,238.7

45,715.0
12,677.4

20,305.7

27,632.0

18,082.9

2020
11,860.6

51,498.4
16,353.7

21,586.4

30,713.5

20,784.9

 Change%
15.8%

12.7%
29.0%

6.3%

11.2%

14.9%

Summary Consolidated Cash Flow Statement (million TRY)
Net cash inflow from operating activities

Net cash outflow from investing activities

Net cash (outflow)/inflow from financing activities

Effects of exchange rate changes on cash and cash equivalents

Cash and Cash Equivalents

Profitability and Solvency Ratios (%)
Gross Profit Margin1
EBITDA Margin

EBIT Margin

Net Profit Margin

Total Liability / Equity Ratio

Net Debt / EBITDA Multiple

(1) Excluding depreciation and amortization expenses.

EXPLANATIONS:

Revenue2: Turkcell Group revenues rose 15.8%.

Turkcell  Turkey  revenues  grew  17.1%  to  TRY25,160  million 
(TRY21,487 million).

· Consumer  business  increased  15.7%  driven  by  strong
ARPU performance on the back of data and digital servic-
es usage, as well as residential business growth.

· Corporate revenues rose 23.5% supported by digital busi-
ness services revenue growth of 30.1%.

2019
9,026.6

(3,027.3)

(3,478.0)

298.2

10,238.7

2019
52.1%

41.5%

21.4%

12.9%

152.8%

1.0x

2020
13,092.8

(6,780.6)

(4,267.8)

(422.5)

11,860.6

2020
50.7%

42.2%

21.6%

14.6%

147.8%

0.8x

 Change%
45.0%

124.0%

22.7%

(241.7%)

15.8%

 Change%
(1.4pp)

0.7pp

0.2pp

1.7pp

(5.0pp)

(0.2x)

Administrative expenses: Administrative expenses fell to 2.6% 
(3.1%)  as  a  percentage  of  revenues,  driven  mainly  by  lower 
office overhead costs and travel expenses.

Selling and marketing expenses: Selling and marketing ex-
penses declined to 4.7% (6.2%) as a percentage of revenues 
driven by the decline in selling expenses (0.8pp), marketing 
expenses (0.5pp) and other cost items (0.2pp) as a percent-
age of revenues.

Net impairment loses on financial and contract assets: Net 
impairment losses on financial and contract assets was at 
1.2% (1.3%) as a percentage of revenues.

· Wholesale  revenues  grew  12.3%  to  TRY1,293  million
(TRY1,152 million).

EBITDA4: EBITDA grew by 17.7% resulting in an EBITDA margin 
of 42.2% (41.5%) on 0.7pp improvement.

Turkcell International revenues rose 26.9% to TRY2,542 million 
(TRY2,003 million). 

Other  subsidiaries’3  revenues  were  at  TRY1,401  million 
(TRY1,647 million).

Excluding  finance  business  and  sports  betting  operations, 
our  consolidated  revenue  growth  was  18.4%  year-on-year 
in FY20.

· Turkcell  Turkey’s  EBITDA  rose  20.4%  to  TRY10,585  million
(TRY8,789  million)  leading  to  an  EBITDA  margin  of  42.1%
(40.9%) on 1.2pp improvement.

· Turkcell  International  EBITDA  increased  29.4%  to  TRY1,169
million  (TRY904  million)  driving  an  EBITDA  margin  of  46.0%
(45.1%) on 0.9pp improvement.

· The  EBITDA  of  other  subsidiaries  was  at  TRY516  million
(TRY733 million).

Standalone  digital  services  revenues  grew  25.6%  year-on-
year in FY20.

Depreciation and amortization expenses: Depreciation and 
amortization expenses increased 18.4% in FY20.

Cost of revenue (excluding the depreciation and amortiza-
tion): Cost of revenue (excluding depreciation and amorti-
zation) increased to 49.3% (47.9%) as a percentage of reve-
nues. This was due mainly to the rise in cost of goods sold 
(2.3pp),  despite  the  decline  in  cost  of  revenue  of  financial 
services (0.5pp) and other cost items (0.4pp) as a percent-
age of revenues.

Net  finance  expense:  Net  finance  expense  decreased  to 
TRY1,132  million  (TRY1,728  million).  This  was  due  mainly  to 
lower foreign exchange losses after hedging and higher in-
terest income on time deposits.

Discontinued  operations:  In  accordance  with  our  strategic 
approach  and  IFRS  requirements,  Fintur  was  classified  as 
‘held  for  sale’  and  reported  as  discontinued  operations  as 
of October 2016. 

(2) Please refer to the notes to the consolidated financial statements for the definition of Turkcell Turkey, Turkcell International and other subsidiaries.

(3) “Other subsidiaries” is mainly comprised of our information and entertainment services, call center business revenues, financial services revenues and inter-business eliminations. 

(4) EBITDA is a non-GAAP financial measure.

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Sectoral and financial informationTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
278

On December 12, 2018, Turkcell signed a binding agreement, 
and  on  April  2,  2019  completed  the  transfer  of  its  shares 
in  Fintur  to  Sonera  Holding  B.V.,  the  majority  shareholder 
of  Fintur.  The  final  value  of  the  transaction  was  EUR352.9 
million.  As  the  conditions  precedent  required  for  the  share 
transfer  were  completed  within  Q119,  TRY772  million  profit 
generated  from  the  transaction  was  reflected  in  the  Q119 
financial statements.

Income  tax  expense:  Income  tax  expense  declined  50.7% 
due mainly to lifecell’s deferred tax income. Please note that 
in  Q420  lifecell  registered  TRY689  million  deferred  tax  in-
come having recognized its accumulated losses as deferred 
tax assets.

Net income: Group net income increased 30.5% to TRY4,237 
million (TRY3,246 million). Net income was positively impact-
ed  by  TRY689  million  deferred  tax  income  registered  by  li-
fecell. Excluding the deferred tax income impact and other 
one-off expenses, we registered a net income of TRY3,953 
million on a 39% rise on the back of strong operational per-
formance and prudent financial risk management. You can 
see one-off expenses below:

One-off impacts (million TRY)
Sales of Fintur

Mobile tax settlement

Wireless tax (net of tax)

Compensation for Kcell SPA (Fintur)

Total

One-off impacts (million TRY)
lifecell deferred tax

Provision for litigation expenses

Litigation expenses

Other

Total

FY19
772

(199)

(116)

(60)

396

FY20
689

(243)

(146)

(15)

285

Total  cash  &  debt:  Consolidated  cash  as  of  December  31, 
2020  decreased  to  TRY11,861  million  from  TRY13,524  million 
as of September 30, 2020 due mainly to the dividend pay-
ment,  and  the  impact  of  TRY  appreciation  on  our  FX  de-
nominated cash. Excluding FX swap transactions, 74% of our 
cash is in US$, 4% in EUR, and 22% in TRY.

Consolidated  debt  as  of  December  31,  2020  decreased  to 
TRY21,586 million from TRY22,841 million as of September 30, 
2020  due  mainly  to  the  impact  of  TRY  appreciation  on  FX 
denominated debt. Please note that TRY2,099 million of our 
consolidated debt is comprised of lease obligations. 

Consolidated debt breakdown excluding lease obligations:

·  Turkcell  Turkey’s  debt  was  at  TRY17,469  million,  of  which 
TRY10,197  million  (US$1,389  million)  was  denominated  in 
US$, TRY5,624 million (EUR624 million) in EUR, TRY283 million 
(CNY253 million) in CNY, and the remaining TRY1,364 million 
in TRY.

· Finance company had a debt balance of TRY1,038 million, 
of which TR259 million (US$36 million) was denominated in 
US$, and TRY465 million (EUR52 million) in EUR with the re-
maining TRY314 million in TRY. 

· The debt balance of lifecell was TRY980 million, fully de-
nominated in UAH. 

TRY1,202 million of lease obligations is denominated in TRY, 
TRY56 million (US$8 million) in US$, TRY186 million (EUR21 mil-
lion)  in  EUR,  and  the  remaining  balance  in  other  local  cur-
rencies (Please note that the figures in parentheses refer to 
US$ or EUR equivalents). 

Net debt as of December 31, 2020 was at TRY9,726 million 
with  a  net  debt  to  EBITDA  ratio  of  0.8  times.  Excluding  fi-
nance  company  consumer  loans,  our  telco  only  net  debt 
was at TRY7,788 million with a leverage of 0.7 times.

Turkcell  Group  had  a  long  FX  position  of  US$132  million  as 
at  the  end  of  the  year.  (Please  note  that  this  figure  takes 
advance payments into account). 

Capital expeditures: Capital expenditures including non-op-
erational items were at TRY9,079 million.

In 2020, operational capital expenditures (excluding license 
fees) at the Group level was at 18.5% of total revenues.

Capital expenditures (million TRY)
Operational Capex

License and Related Costs

Non-operational Capex (Including IFRS15 & IFRS16) 

Total Capex

Operational Review (Turkey):

Summary of Operational Data

Number of subscribers (million)
Mobile Postpaid (million)  

  Mobile M2M (million)

Mobile Prepaid (million)

Fiber (thousand)

ADSL (thousand)
Superbox (thousand)1
Cable(thousand)

IPTV (thousand)
Churn (%)2 

Mobile Churn (%)3
Fixed Churn (%)

ARPU (Average Monthly Revenue per User) (TRY)

Mobile ARPU, blended

  Mobile ARPU, blended (excluding M2M)

Postpaid

 Postpaid (excluding M2M)

Prepaid

Fixed Residential ARPU, blended

  Residential Fiber ARPU

Average mobile data usage per user (GB/user)

Mobile MoU (Avg. Monthly Minutes of usage per subs) blended

FY19
4,525.1

1.8

2,697.8

7,224.7

FY20

36.7
22.0

2.8

11.5

1,664.3

707.6

591.2

67.7

871.3

2.3%

1.9%

45.5

49.1

59.1

67.0

21.8

69.6

70.9

11.7

518.7

FY20
5,391.6

42.8

3,644.6

9,078.9

 Change%

2.8%
7.8%

7.7%

(7.3%)

12.1%

(1.6%)

82.9%

37.6%

21.1%

(0.4pp)

(0.2pp)

14.3%

15.0%

4.6%

4.2%

19.1%

10.1%

9.2%

58.1%

24.9%

FY19

35.7
20.4

2.6

12.4

1,484.7

719.1

323.2

49.2

719.7

2.7%

2.1%

39.8

42.7

56.5

64.3

18.3

63.2

64.9

7.4

415.3

(1) Superbox subscribers are included in mobile subscribers.

(2) Presentation of churn figures has been changed to demonstrate average monthly churn figures for the respective quarters.   

(3) In Q117, our churn policy was revised to extend from 9 months to 12 months (the period at the end of which we disconnect prepaid subscribers who have not topped up above TRY10). 

Additionally, under our revised policy, prepaid customers who last topped up before March will be disconnected at the latest by year-end. As a regulatory requirement, we started to 

disconnect prepaid lines in accordance with new ICTA regulation, which requires deactivation of prepaid lines which lack residency documents by the 6th month of subscription starting 

from 2019. Furthermore, as required by the ICTA, the line of a deceased customer should either be transferred to a successor/another user or terminated. Lines, which are not transferred 

or terminated, are to be disconnected at the end of seven months.

(4) We historically recorded all TV-related revenue under Turkcell Superonline and presented the related ARPU under fixed residential ARPU. As previously announced, our TV business 

has become a separate standalone subsidiary. In order to reflect this change in our organization, we decided to shift mobile OTT TV ARPU from fixed residential ARPU into mobile ARPU 

starting from Q320. We note that mobile TV revenues are generated by mobile subscribers. IPTV revenues will continue to be recorded under Turkcell Superonline and included under 

residential fixed ARPU. In order to maintain comparability, we provide ARPU data for the last three years, revised to reflect this change on our investor relations website in financial and 

operational data spreadsheet.

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Sectoral and financial informationTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
280

The number of our subscribers in Turkey grew by 1.1 million 
net  annual  additions,  reaching  36.7  million  in  FY20  despite 
the pandemic environment. Accordingly, we achieved our 1 
million net subscriber additions target for the year thanks to 
our solutions that meet changing customer needs, our rich 
value proposition, and innovative campaigns that facilitate 
their lives. 

The  average  monthly  mobile  churn  rate  was  2.3%  in  2020. 
The  higher  mobile  churn  rate  in  Q419  was  due  mainly  to 
the lump sum disconnection of subscriptions in accordance 
with  the  ICTA  regulation  that  requires  deactivation  of  pre-
paid lines, that lack residency documents by the 6th month 
of  subscription.  Average  monthly  fixed  churn  rate  was  at 
1.9% in FY20.

On the mobile front, our subscriber base expanded to 33.4 
million  on  712  thousand  net  annual  additions  in  FY20.  Our 
postpaid  subscribers  grew  on  1.6  million  net  annual  ad-
ditions,  the  highest  of  the  past  11  years.  Accordingly,  our 
postpaid  subscribers  reached  65.7%  (62.2%)  of  our  mobile 
subscriber  base  as  at  the  end  of  the  year.  Meanwhile,  our 
prepaid  subscribers  declined  892  thousand  in  FY20,  due 
mainly  to  the  disconnection  of  666  thousand  inactive  pre-
paid subscribers in Q420 in line with our churn policy. There 
were  also  194  thousand  disconnections  in  Q420  to  reflect 
the  regulatory  change  requiring  deactivation  of  deceased 
customers’ subscriptions.

On the fixed front, our subscriber base exceeded 2.4 million 
on 187 thousand net annual additions. Our fiber subscribers 
grew  by  180  thousand  annual  net  additions.  Superbox,  our 
fixed-wireless  access  offering,  registered  a  strong  perfor-
mance in FY20. Accordingly, it had 268 thousand net annual 
additions.  Meanwhile,  our  IPTV  customer  base  rose  to  871 
thousand on 152 thousand annual net additions. 

Our mobile ARPU (excluding M2M) 15.0% for the full year on 
the  back  of  a  larger  postpaid  subscriber  base  and  upsell 
efforts, as well as increased data and digital services usage.

Fiber residential ARPU grew by 9.2% for the full year driven 
mainly by upsell efforts and the acquisition of higher reve-
nue generating customers.

Average  monthly  mobile  data  usage  per  user  increased 
58.1% for the full year. This was driven mainly by the increas-
ing number and data consumption of 4.5G users, as well as 
higher digital services usage. Accordingly, the average mo-
bile data usage of 4.5G users reached 14.9 GB in Q420. The 
rising  number  of  Superbox  subscribers  also  had  a  positive 
impact on data consumption. 

The  number  of  4.5G  compatible  smartphones  on  our  net-
work  rose  to  21.5  million  on  2.3  million  annual  additions, 
comprising  91%  of  smartphones  on  our  network.  Total 
smartphone penetration had reached 81% as at the end of 
the year.

Forward Looking Statements

2021 guidance; revenue target of 14%-16%, EBITDA target of around TRY14 
billion, and operational capex over sales ratio target of around 20%.

2 0 2 1   G u i d a n ce

14%-16%
Revenue 
Growth

EBITDA
~TRY14
billion

~%20
Op. Capex/
Sales(1)

(1) Excluding license fee

Please note that this paragraph contains forward looking statements based on our current estimates and expectations regar-
ding market conditions for each of our different businesses. No assurance can be given that actual results will be consistent 
with such estimates and expectations. For a discussion of factors that may affect our results, see our last Annual Report on 
Form 20-F filed with the U.S. Securities and Exchange Commission, and in particular, the risk factor section therein.

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282

Our Companies and 
sector developments

Electronic Communications 
Sector in Turkey
According  to  the  Market  Data  report 
published  by  Information  and  Commu-
nication  Technologies  Authority  (ICTA),  
the regulatory authority of Turkish elec-
tronic communications sector, the num-
ber of companies in the sector is 458 as 
of the 3rd quarter of 2020, and the num-
ber  of  authorizations  granted  to  these 
companies is 834.

In  the  first  3  quarters  of  2020,  the  to-
tal  net  sales  revenues  of  mobile  oper-
ators  [Turkcell  İletişim  Hizmetleri  A.Ş. 
(“Turkcell”), Vodafone Telekomünikasyon 
A.Ş.  (“Vodafone”),  TT  Mobil  İletişim  Hiz-
metleri  A.Ş.  (“TT  Mobil”)]  and  Türk  Tele-
komünikasyon A.Ş. (“Türk Telekom”) were 
approximately TRY42.3 billion, while the
total  net  sales  income  of  other  opera-
tors was TRY14.1 billion. During the same
period, the total amount of investments
made  by  Turkcell,  Türk  Telekom,  TT
Mobil  and  Vodafone  was  realized  as
TRY8.4 billion.

Mobile Market
As of the 3rd quarter of 2020, there were 
82.8 million mobile subscribers in Turkey, 
corresponding  to  approximately  99.6% 
penetration  rate.  (Mobile  penetration 
rate  excluding  M2M  devices  and  0-9 
age population is 109%). 

The  number  of  4.5G  subscribers  was 
76.5  million,  while  the  number  of  3G 
subscribers  decreased  to  4.4  million. 
The number of mobile broadband sub-
scribers who receive 3G and 4.5G inter-
net services via computers and mobile 
phones increased to 65 million.

As  of  the  3rd  quarter  of  2020,  64%  of 
mobile  subscribers  were  in  postpaid 
tariffs,  while  36%  were  in  prepaid  tar-
iffs.  The  number  of  prepaid  mobile 
broadband  subscribers  was  22.7  mil-
lion and the number of postpaid mobile 
broadband subscribers was 42.3 million, 
while  the  number  of  M2M  subscribers 
reached 6.1 million. 

In  the  3rd  quarter  of  2020,  the  number 
of mobile numbers ported increased by 
6.8% compared to the previous quarter 
and  realized  as  3.3  million.  As  of  No-
vember  24,  2020,  total  MNP  transac-
tions reached 146 million.

Regarding the subscriber market shares; 
Turkcell had 40.7%, Vodafone had 31.4% 
and TT Mobil had 27.9% of the market. 
Approximately  86.5%  of  mobile  sub-
scribers were individual consumers and 
13.5% were corporate subscribers.

Monthly average data usage in mobile 
broadband was realized at the level of 
9.3 GB, while the monthly average data 
usage of subscribers with a device and 
SIM card suitable for 4.5G service was 
11 GB. In the 3rd quarter of 2020, the to-
tal  mobile  traffic  volume  increased  by 
12.3% compared to the same period of 
last  year  and  reached  78.9  billion  min-
utes.

Turkcell’s  revenue  market  share  was 
45.2%  while  Vodafone  had  30.3%  and 
TT  Mobil  had  24.5%  of  the  revenues  in 
the market.

The Broadband Internet Market
The number of broadband internet sub-
scribers,  which  was  around  six  million 
in  2008,  reached  80.9  million  (15.8  mil-
lion fixed broadband, 65 million mobile 
broadband  subscribers)  as  of  the  end 
of  the  3rd  quarter  of  2020.  Total  inter-
net subscribers increased 5% compared 
to  the  same  period  of  the  previous 
year.  The  number  of  xDSL  subscribers 
reached to 10.6 million, while the num-
ber  of  fiber  subscribers  exceeded  3.7 
million.  The  total  length  of  fiber  infra-
structure  of  alternative  operators  had 
reached 91,810 km.

In  the  first  3  quarters  of  2020,  the  to-
tal  revenues  related  to  internet  ser-
vice  providers  exceeded  TRY8.6  billion. 
The  average  monthly  data  usage  of 
fixed  broadband  internet  subscribers 
reached 153 GB. In Turkey, approximate-
ly  69%  of  fixed  broadband  subscribers 
prefer  packages  with  a  connection  of 
10-35 Mbit/sec speed.

As of the 3rd quarter of 2020, the share 
of xDSL services offered by alternative 
operators    in  the  broadband  market  is 
26%.

TV Market
As of the 3rd quarter of 2020, there are 
15  operators,  which  have  the  Cable 
Broadcasting  Service  (KYH)  authoriza-
tion.  While  the  number  of  subscribers 
of Türksat’s Cable TV  is 1.33 million, the 

operators  providing  IPTV  services,  Su-
peronline (TV+) and TTNet (Tivibu) have 
811  thousand  and  858  thousand  sub-
scribers respectively.

The  operators  authorized  to  provide 
satellite  platform  services  are    Digital 
Platform  Teknoloji  Hizmetleri  A.Ş.  (Dig-
itürk),  Demirören  TV  Digital  Platform 
İşletmeciliği  A.Ş.  (DSmart)  and  TTNET 
A.Ş. (Tivibu) that continue broadcasting
actively.

Fixed Voice Market
As of the end of the 3rd quarter of 2020, 
there  are  12.3  million  fixed  telephone 
subscribers,  while  the  penetration  rate 
is approximately 14.8%.

Legal and Regulatory Developments 
Concerning Our Industry and Our 
Companies 

Updates Regarding Mobile Reference 
Interconnection Offers
With 
the  Board  Decision  dated 
20.05.2020  and  numbered  2020/DK-
ETD/151, the collateral items in the Refer-
ence Interconnection Offer of our Com-
pany has been updated to be valid as of 
01.01.2021. The amount of the guarantee 
letter  to  be  given  to  our  Company  by 
companies which interconnect with our 
Company were increased, our Compa-
ny was given the authority to halt ser-
vice  immediately  if  unpaid  debts  and 
current usage of the SMS/MMS service 
exceeded  the  guarantee  letter,  and  in 
case of a sudden traffic increase, com-
panies  were  obliged  to  make  interim 
payments in addition to providing addi-
tional collateral. It is predicted that the 
updates  made  to  collateral  conditions 
will be beneficial in reducing the collec-
tion  risk  experienced  with  companies 
which interconnect with our Company.

Developments Regarding Mobile 
Access and Call Origination Market 
The  deregulation  decision  regarding 
the  Mobile  Access  and  Call  Origina-
tion Market, transition process of which 
was  extended  until  31.12.2019  with  the 
Board  Decision  dated  03.04.2019  and 
numbered  2019/DK-SRD/097,  entered 
into  force  as  of  01.01.2020.  With  the 
decision,  our  Company  is  able  to  ne-
gotiate commercially for Mobile Virtual 
Network Operator (MVNO) requests, as 

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284

other two MNOs in Turkey. In the event 
that the operators cannot compromise 
and are requested, the authority of ICTA 
to  operate  the  settlement  procedure 
continues.

However,  in  the  lawsuit  filed  for  the 
cancelation of the Board decision dat-
ed  18.02.2013  and  numbered  2013/DK-
regarding  acknowledgment 
SRD/105 
of  the  Final  Document  about  Mobile 
Networks  Access  and  Call  Origination 
Market, which is declaring our Compa-
ny as the operator with Significant Mar-
ket Power (SMP) in the Mobile Networks 
Access and Call Origination Market and 
thereby  imposing  certain  obligations 
on  our  Company,  the  court  found  the 
claims  of  our  company  justified,  and 
decided to cancel the transactions and 
decisions subject to the lawsuit. Subse-
quently,  the  ICTA  appealed  aforemen-
tioned decision, the 13th Chamber of the 
Council  of  State  found  the  claims  and 
defenses of the ICTA unfair and decided 
to  approve  the  annulment  decision.  In 
the subsequent process, the ICTA made 
an  application  for  a  correction  of  the 
decision  regarding  the  approval  deci-
sion, the 13th Department of the Council 
of State decided to reject the ICTA’s de-
cision correction application, and in this 
way,  the  said  court  decision  became 
final in favor of our Company. 

Removal of Tariff Control Obligation 
for SMS/MMS Termination Services
With  the  Mobile  Call  Termination  Mar-
ket Analysis published by the Board De-
cision dated 08.09.2020 and numbered 
2020/HR-SRD/258,  it  was  decided  to 
remove  the  cost-based  tariff  determi-
nation obligation being applied for the 
SMS/MMS  termination  services,  as  of 
01.10.2021.  Upon  deregulation,  the  op-
erators  will  be  able  to  negotiate  and 
determine  SMS/MMS  termination  rates 
among  themselves.  In  addition,  IP  in-
terconnection has been included in the 
obligation to provide access and inter-
connection imposed on operators. 

Abolition of Asymmetry in Mobile 
Termination Rates 
Mobile  termination  rates  have  been 
determined  asymmetrically  (at  differ-
ent levels) since 2005 by the ICTA, in a 
manner  that  is  against  our  Company, 
citing conditions such as mobile market 
conditions, traffic distribution, revenues, 

number  of  subscribers  and  technolog-
ical  differences.  In  the  lawsuit  filed  by 
our  Company  for  cancellation  of  the 
rejection  of  the  application  filed  to 
the  ICTA  on  13.11.2017  with  the  request 
to  abolish  the  inequality  (asymmetry) 
in  mobile  termination  rates,  the  court 
decided  to  accept  the  case  by  find-
ing the claims of our company justified 
with  its  decision  dated  18.07.2019;  ICTA 
appealed the case before Regional Ad-
ministrative Court. Regional Administra-
tive Court, which examined the request 
of appeal, sent the file to the Council of 
State for a new decision on the grounds 
that  the  case  should  be  heard  at  the 
Council of State. While the case is cur-
rently  pending  in  the  Council  of  State 
examination, a comprehensive study on 
interconnection fee levels is being con-
ducted by the ICTA.

On  the  other  hand,  the  fact  that  there 
was  no  difference  between  the  oper-
ators  that  could  justify  the  asymmetry 
was determined by the decision of 13th 
Chamber of the Council of State dated 
05.03.2015  and  numbered  E.2014/1750, 
K.2015/895.

Maximum Tariff Regulation on Mobile 
Electronic Communication Services
Maximum  tariffs  of  the  services  (na-
tional/international  voice  and  SMS, 
name/title  change,  line  transfer,  num-
ber  change,  SIM  card  change,  line  on/
off, detailed invoice, unknown numbers 
service  etc.)  included  in  the  Maximum 
Tariff  Regulation  of  Mobile  Electronic 
Communication  Services  are  updated 
every six months by ICTA. Tariff were in-
creased  by  5.8%  on  01.04.2020  and  by 
5.3% on 01.10.2020.

Developments in the Wholesale Fixed 
Local and Central Access Markets
the  Board  Decision  dat-
With 
17.01.2020  and  numbered  2019/
ed 
DK-SRD/338,  the  Final  Document  on 
Wholesale Fixed Local and Central Ac-
cess  Markets  Analysis  was  published. 
Together  with  this  market  analysis,  the 
incumbent operator (Türk Telekom) was 
designated  as  having  Significant  Mar-
ket  Power  in  related  fixed  broadband 
markets  and  obliged  to  offer  cost-
based  IP-level  Data  Stream  Access  (IP 
Bitstream)  and  Ethernet  Bitstream  Ac-
cess over its copper and fiber networks, 
to provide Virtual Unbundled Local Ac-

cess (VULA) service. Besides, the margin 
squeeze  obligation  has  been  imposed 
on the incumbent operator.

In  this  context,  Türk  Telekom’s  Draft 
Reference  Offers  (IP  Bitstream  Offer, 
Buy-Sell Wholesale  Offer,  Ethernet  Bit-
stream Offer, Facility Sharing and Dark 
Fiber  Offer,  SSG/ME 
Internet  Offer,  
Co-Location and Building Access Offer) 
which  determine  the  conditions  of  the 
access obligations and the Draft Proce-
dures  and  Principles  for  the  Detection, 
Prevention  and  Elimination  of  Margin 
Squeeze  have  been  submitted  to  the 
public  opinion  in  2020.  Efforts  to  final-
ize the relevant documents are ongoing 
before BTK. 

Regulation on Processing of Personal 
Data and Protection of Privacy in the 
Electronic Communications Sector 
The  “Regulation  on  the  Processing  of 
Personal  Data  and  the  Protection  of 
Privacy  in  the  Electronic  Communica-
tion  Sector”  published  in  the  Official 
Gazette  on  04.12.2020  will  enter  into 
force  on  04.06.2021,  six  months  after 
its  publication.  The  Regulation  regu-
lates  the  principles  and  procedures  to 
be  followed  by  operators  operating  in 
the electronic communications sector in 
terms of the data they obtain within the 
scope of providing electronic communi-
cations services, including legal person 
subscriptions.  Detailed  arrangements 
have  been  made  in  the  Regulation  on 
issues such as explicit consent process-
es  within  the  scope  of  processing  the 
data  of  subscribers  and  users,  data 
security, reporting of risk and violation, 
number hiding, and automatic call for-
warding.

Presidential Circular on Information 
and Communication Security 
Measures
Pursuant  to  the  Presidency  Circular  on 
Information  and  Communication  Se-
curity  Measures,  published  in  the  Of-
ficial  Gazette  numbered  30823  and 
dated  06.07.2019,  the  “Information  and 
Communication  Security  Guide”,  was 
announced  by  the  Presidential  Digital 
Transformation  Office  on  27.07.2020, 
which  sets  out  the  information  and 
communication  security  measures  to 
be  followed  and  related  activities  to 
be  carried  out  by  public  institutions  as 
well as the enterprises providing critical 
infrastructure services to ensure the se-

curity  of  critical  data  and  information. 
The  Guide  aims  to  encourage  the  use 
of domestic products within the frame-
work of measures to be taken by public 
institutions  and  concerned  enterprises, 
and  to  prevent  repetitive  studies  and 
investments.

ICTA Board Decisions Regarding the 
COVID Period
With the ICTA decision dated 31.03.2020 
and  numbered  2020/DK-THD/100;  until 
the  measures  introduced  by  Presiden-
tial  Circulars  regarding  the  epidemic 
are  lifted,  operators  have  been  given 
the opportunity to carry out call center 
services  remotely  without  interruption, 
to  send  invoices  electronically  and  to 
establish  subscriptions  remotely  by  re-
ceiving  the  information/documents  re-
quired for new subscriptions first  elec-
tronically and then by mail/cargo.

With  the  decision  of  the  ICTA  dat-
ed  31.03.2020  and  numbered  2020/İK 
YED/099;  it  has  been  made  possible 
to  postpone  by  up  to  3  (three)  months 
the sending periods of information and 
documents  prepared  within  the  scope 
of  the  regular  reports  that  we  are 
obliged to submit to the authority.

Establishment of Electronic 
Communication Subscription 
Contracts in the Electronic 
Environment 
Amendments to the Electronic Commu-
nications Law numbered 5809 made by  
the “Law on the Amendment of Certain 
Laws and Statutory Decrees” numbered 
7247,  which  entered  into  force  upon 
being published in the Official Gazette 
dated 26.06.2020 and numbered 31167, 
have regulated that the procedures and 
principles  regarding  the  verification  of 
the applicant’s identity for the contracts 
to  be  established  in  an  electronic  me-
dium  will  be  determined  by  ICTA.  The 
relevant procedures and principles have 
not yet been published. 

Commercial Communication and 
Commercial Electronic Messages
With the Regulation on the Amendment 
of the Regulation on Commercial Com-
munication  and  Commercial  Electronic 
Messages published in the Official Ga-
zette  dated  28.08.2020  and  numbered 
31227, a new system [Commercial Elec-
tronic  Message  Management  System 
(“CMMS”)]  that  allows  the  registration 

and  management  of  consents  giv-
en  or  refused  for  receipt  of  electronic 
including  the 
commercial  messages 
management  of  the  consents  and  the 
complaints,  has  been  introduced.    The 
system  obliges  service  providers  who 
wish  to  send  electronic  commercial 
messages,  to  register  with  the  CMMS 
and  to  transfer  their  existing  consent 
data  base.  It  has  also  been  regulated 
that  it  is  not  permitted  to  send  elec-
tronic  commercial  messages  to  recip-
ients  who  have  not  officially  consent-
ed the relevant service provider on the 
CMMS. Therefore, the service providers 
are expected to verify the consent giv-
en by the recipient before initiating the 
circulation of the electronic commercial 
messages.

Social Network Provider 
Regulations 
With  the  amendments  made  within 
the scope of Law No. 5651 on Regulat-
ing  Broadcasts  via  Internet  and  Fight-
ing  Crimes  Committed  Through  Such 
Broadcasts,  effective  from  01.10.2020; 
new  obligations  have  been  introduced 
to  overseas  social  network  providers 
with  daily  access  from  Turkey  exceed-
ing  1  million,  including  appointing  at 
least one person to be their representa-
tive in Turkey, and hosting the data from 
users  in  Turkey.  It  has  been  regulated 
that  if  regulations  are  not  complied 
with,  sanctions  such  as  administrative 
fines,  an  advertising  ban  and  band-
width reduction may be imposed. After 
the amendments made to the Law No. 
5651,  The  Procedures  and  Principles  on 
the  Social  Network  Provider  were  pre-
pared by the ICTA and published in the 
Official  Gazette  dated  02.10.2020  and 
have  entered  into  force.  Regulation  on 
Sales of Renewed Products

The Regulation on the 
Sale of Renewed Products
Products on the renewal of used mobile 
phones and tablets, warranty conditions 
of  renewed  devices,  authorization  of 
renewal  centers,  and  regulation  of  the 
obligations  of  market  actors  entered 
into  force  on  22.08.2020.  The  stand-
ard  published  by  the  TSE  on  17.02.2021 
for  renewal  centers,  which  will  sell 
renewed  and  certified  used  mobile 
phones,  the  purchase  of  second-hand 
mobile  phones  and  tablets  has  been 
made more reliable for consumers, and 

second-hand devices were enabled to 
be introduced to the ecosystem.

Amendment of Concession 
Agreements and Authorization 
Certificate within the Law No. 7061  
on Amending Certain Tax Laws and 
Certain Other Laws
With the Law No. 7061, it has been pos-
sible  to  structure  disputes  regarding 
certain  financial  obligations.  In  addi-
tion, with the Law, changes have been 
made  in  the  tax  laws  and  other  laws 
concerning the sector in order to elim-
inate  the  problems  experienced  in  the 
calculation, collection and follow-up of 
taxes  and  other  financial  obligations 
taken  from  the  electronic  communi-
cations  sector.  It  has  been  enacted  in 
the Law that the operators applying for 
restructuring  will  be  deemed  to  have 
applied to the ICTA for the amendment 
of the Concession Agreements and Au-
thorization Certificate within the scope 
of these changes. The texts prepared by 
our  Company  and  the  ICTA  regarding 
the  amendments,  were  included  in  the 
Concession  Agreements  and  Author-
ization  Certificate  upon  the  approval 
of  the  Council  of  State,  and  the  sig-
nature  processes  were  completed  on 
16.01.2020.

Cancellation of TRY138 Million 
Administrative Fine Imposed by the 
Ministry of Trade
As a result of the investigation conduct-
ed by the Ministry of Commerce for 2015, 
an administrative fine of TRY138 million 
was  imposed  on  our  Company  due  to 
alleged violations of distance contracts, 
subscriber  agreements,  agreement  of 
sales on installment. A lawsuit was filed 
for  the  cancellation  of  the  mentioned 
transactions and decisions by our com-
pany. The court found the claims of our 
Company to be justified and accepted 
the  case  and  cancelled  the  adminis-
trative  fine.  The  defendant  administra-
tion  appealed  the  decision  following 
the  rejection  of  defendant  administra-
tion’s appeal by Regional Administrative 
Court. The appeal process is pending.

Administrative Fine Imposed by the 
Competition Board
The Competition Board imposed an ad-
ministrative fine of TRY92 million claim-
ing  that  our  Company  had  violated 
competition  by  determining  the  resale 

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price of units. Legal actions have been 
taken  to  withdrawal  the  aforemen-
tioned  administrative  fine  by  our  com-
pany.

The Competition Board accepted some 
of the objections of our Company and 
changed  its  previous  decision;  it  abol-
ished the fine of TRY92 million and de-
cided  the  administrative  fine  of  TRY61 
million  for  our  Company  with  its  new 
decision.  The  administrative  fine  was 
paid with twenty five percent discount 
on 09.04.2020, in the amount of TRY45 
million. Then, a lawsuit was filed for the 
stay  of  the  execution  and  cancellation 
of  the  aforementioned  administrative 
fine. The case is pending.

Lawsuits Regarding the 
Use of 444 Numbers
In  three  separate  lawsuits  filed  by  our 
Company with the request for the stay 
of execution and the cancellation of the 
ICTA’s  transactions  that  restrict/prevent 
the use of the 444 numbers, it was de-
cided  to  cancel  the  ICTA  transactions 
on  the  ground  that  it  was  illegal,  and 
the  cancellation  decisions  were  fi-
nalized.  Due  to  the  decision  to  cancel 
the  aforementioned  ICTA  transactions, 
an  application  has  been  made  to  the 
ICTA  by  our  Company  to  execute  the 
requirements  of  the  court  decisions 
and  to  eliminate  the  illegality  in  prac-
tice.  Upon  the  implicit  rejection  of  this 
application,  another  lawsuit  was  filed, 
and the court accepted this case in fa-
vor  of  our  Company.  After  the  defend-
ant administration’s appeal and the Re-
gional Administrative Court rejection of 
the  defendant  administration’s  appeal, 
the ICTA appealed the aforementioned 
decision, and the appeal is pending. In 
the meantime, the ICTA conducts evalu-
ations and legislation studies regarding 
this dispute.

Cancellation of Board Decision 
Increasing the ICTA’s Obligation for 3G 
Coverage
In  the  lawsuit  filed  with  the  request 
for  stay  of  execution  and  cancella-
tion  of  the  decision  of  the  ICTA  dated 
21.07.2014  and  numbered  2014/DK-
YED/376,  which  changed  the  scope  of 
the  obligations  subject  to  the  Conces-
sion Agreement of Turkcell grounding on 
the amendment made in Laws No 6360 
and 6447 and Metropolitan Municipali-

ty  Law  No.5216  and  the  transaction  of 
the  notification  of  this  decision  dated 
14.08.2014  and  numbered  151.99/50991, 
the Court has justified the claims of our 
Company  with  its  decision  notified  on 
17.04.2019  and  decided  to  cancel  the 
Board  decision  and  the  act.  The  de-
fendant appealed the decision and the 
appeal is pending.

Amendment of the Regulation 
on Establishment and Operation 
Principles of Financial Leasing, 
Factoring and Financing Companies
“The  maturity  of  loans  used  for  the 
purchase  of  computers  cannot  exceed 
twelve  months,  the  maturity  of  loans 
used  for  the  purchase  of  tablets  can-
not  exceed  six  months,  the  maturity  of 
loans  used  for  the  purchase  of  mobile 
phones  of  up  to  three  thousand  five 
hundred  Turkish  Liras  cannot  exceed 
twelve  months  and  the  maturity  of 
loans  used  for  the  purchase  of  mobile 
phones priced over three thousand five 
hundred  Turkish  Liras  cannot  exceed 
three months. The same terms shall ap-
ply for the restructuring of these loans.” 
provision  has  been  introduced  in  ac-
cordance  with  the  Regulation  Amend-
ing  the  Regulation  on  Establishment 
and  Operation  Principles  of  Financial 
Leasing, Factoring and Financing Com-
panies published in the Official Gazette 
on  14.01.2020.  The  Presidency  Strategy 
and Budget Directorate is authorized to 
change  the  limitations  in  this  article  or 
to impose additional restrictions in this 
regard,  considering  the  opinion  of  the 
T.R. Ministry of Treasury and Finance.

Amendment of the Regulation on the 
Principles and Rules to be implied in 
Retail Trade
The  Regulation  Amending  the  Regula-
tion  on  the  Principles  and  Rules  to  be 
Implied in Retail Trade was published in 
the  Official  Gazette  dated  26.12.2020. 
Accordingly, the installment periods are 
determined as follows: 

• three months for mobile phone sales 
with a price of over three thousand five 
hundred Turkish Liras,

•  four  months  for  sales  of  electron-
ic  goods  such  as  video,  camera  and 
sound systems, and sales of televisions 
priced over three thousand five hundred 
Turkish Liras, six months for tablet com-
puter sales,

•  eighteen  months  for  domestic  ex-
penses  related  to  airlines,  travel  agen-
cies and accommodation.

Cancellation Decision Given for TÖHAŞ 
Payment Order Case
The mobile payment services of TÖHAŞ 
between  01.07.2015-15.08.2018  were 
audited  by  the  BRSA;  subsequently,  an 
administrative fine imposed on TÖHAŞ; 
in  the  amount  of  TRY18,762,982;  a  law-
suit  has  been  filed  by  TÖHAŞ  with  the 
request  for  the  stay  of  execution  and 
cancellation of the aforementioned de-
cisions  and  transactions.  The  hearing 
was held on 30.12.2020 in this case and 
it  is  expected  that  the  court  will  grant 
a decision.  

While  this  case  was  ongoing,  the  Tax 
Office sent a payment order for the col-
lection of the aforementioned adminis-
trative fine; a lawsuit was filed with the 
request  for  the  stay  of  execution  and 
the  cancellation  of  the  payment  order. 
In  the  lawsuit  filed,  the  court  decided 
to  accept  the  case  and  cancelled  the 
payment  order  subject  to  the  case. 
Therefore,  in  the  current  situation,  until 
the lawsuit filed for the cancellation of 
the  administrative  fine  is  concluded, 
the collection procedures should not be 
continued.

Limitation on Dividend Distributions
With  the  Provisional  Article  13  intro-
duced to the Turkish Commercial Code 
No. 6102 dated 13.01.2011 by “the Law on 
Reducing the Effects of the Novel Coro-
navirus  Pandemic  on  Economic  and 
Social Life and Law on Amendments to 
Certain Laws”,  which was published in 
the  Official  Gazette  dated  17.04.2020 
and  entered  into  force  as  of  the  same 
date, it has been regulated that compa-
nies are allowed to decide to distribute 
up  to  twenty-five  percent  of  their  net 
profit for the year 2019 until 30.09.2020. 
The  President  is  authorized  to  extend 
and  shorten  the  specified  period  for 
three  months,  and  with  the  Presiden-
tial  Decision  No.  2948  published  in  the 
Official  Gazette  dated  18.09.2020  and 
numbered  31248,  the  aforementioned 
period was extended until 31.12.2020.

platform an independent quality, it was 
decided to transfer the BiP platform to 
BiP İletişim Teknolojileri ve Dijital Servis-
ler  A.Ş.,  one  of  our  Company’s  subsidi-
aries, at a price to be determined in the 
valuation report to be prepared by the 
independent  audit  firm,  with  the  de-
cision  of  the  Board  of  Directors  dated 
24.09.2020.  This  transfer  process  was 
completed on 31.12.2020.

In  order  to  achieve  Turkcell’s  vision  of 
expanding its digital services and tech-
nology  solutions  in  international  mar-
kets, and to increase international pen-
etration,  on  07.09.2020  “Lifecell  Digital 
Communication  Technologies  B.V.”  was 
incorporated  in  The  Netherlands  with 
a  capital  of  EUR50,000  and  registered 
with  the  trade  registry,  as  a  compa-
ny  fully  owned  by  Lifecell  Ventures 
Coöperatief  U.A.,  one  of  our  subsidiar-
ies. It stores the data regarding sales of 
digital services and products, which are 
developed  with  the  resources  of  Turk-
cell,  in  Turkey.  On  04.12.2020,  its  trade 
name has been changed to “BiP Digital 
Communication Technologies B.V.”  and 
this change has been duly registered.

Entry into Force of the 
Digital Service Tax
The Law numbered 7194 on Digital Ser-
vice  Tax  and  Amendment  of  Certain 
Laws  and  the  Decree  numbered  375 
has  entered  into  force  on  01.03.2020; 
and the Communiqué on Application of 
Digital Service Tax was published in the 
Official Gazette dated 20.03.2020. The 
revenues obtained from the below-list-
ed  activities  in  Turkey  are  subject  to 
digital service tax at the rate of 7.5% as 
set out by the Law.

•  All  kinds  of  advertising  services  of-
fered in the digital environment,

•  Services  offered  in  digital  environ-
ment for the sale of any audio, visual or 
digital  content  and  for  listening,  view-
ing,  playing,  recording  or  using  these 
contents in digital environment,

• Services regarding providing and op-
erating  digital  environments  where  us-
ers can interact with each other,

• Intermediary services provided in dig-
ital environment by digital service pro-
viders  for  the  aforementioned  services 
as well as advertisements published on 
the websites of newspapers or maga-
zines, or on the websites of audio and/
or  visual  publishing  companies,  which 
are  active  only  in  digital  environment, 
or during broadcast flows thereof.

If the taxpayer is a member of a con-
solidated  group  in  terms  of  financial 
accounting, the group’s total generated 
revenue  regarding  the  services  subject 
to  the  tax  shall  be  taken  into  account 
when applying these limits.

Seizure of UYAP Asset Inquiries in the 
Electronic Environment
The Law on the Amendment of the Civil 
Procedure Law No. 7251 and Some Laws 
entered into force after being published 
in  the  Official  Gazette  No.  31199  dated 
28.07.2020. With the change; in the en-
forcement  proceedings,  it  is  stipulated 
that the goods, rights or receivables of 
the  debtor  can  be  questioned  through 
UYAP,  and  that  the  debtor’s  goods,  re-
ceivable  or  receivables  can  be  de-
manded  directly  through  UYAP.  As  a 
result  of  the  query  made  through  the 
electronic  system,  it  has  been  stated 
that  the  debtor’s  rights  and  /  or  prop-
erty  can  be  seized  electronically  by 
the  enforcement  offices  based  on  the 

request  of  the  creditor  who  requests 
lien on the rights and/or property of the 
debtor,  and  the  regulation  containing 
the detailed regulation on this issue will 
be published.

The Recently Established Lifecell Cloud 
(Lifebox), Lifecell Music (fizy) and 
Lifecell TV (TV+ ott) Companies
Turkcell İletişim Hizmetleri A.Ş. within the 
scope  of  the  decision  of  the  Board  of 
Directors dated 30.06.2020, transferred 
its fizy service to Lifecell Müzik ve Yayın 
İletim  A.Ş.,  its  lifebox  service  to  Lifecell 
Bulut  Çözümleri  A.Ş.,  and  Superonline 
İletişim  Hizmetleri  A.Ş.  managed  OTT 
activities  of  TV+  service  to  Lifecell  TV 
Yayın ve Content Hizmetleri A.Ş.

Lifecell Music (fizy) & Lifecell TV 
(TV+ ott) License and Authorization 
Applications with RTÜK 
With the Regulation on the Presentation 
of  Radio,  Television  and  Broadcasts  on 
the  Internet,  which  was  published  on 
01.08.2019,  radio,  television  and  broad-
casts on the internet and the transmis-
sion of these broadcasts on the internet 
are subject to license and authorization. 
In  this  context;  (i)  Lifecell  Müzik  Yayın 
ve  İletim  A.Ş.  has  applied  for  “Internet 
–  IBYH  Licence”  for  the  “fizy”  platform 
broadcasting  on  demand  from  the  in-
ternet,  (ii)  for  the  TV+  (OTT)  platform 
that  transmits  broadcasts  from  the  in-
ternet - mobile environment, Lifecell TV 
Broadcasting and Content Services A.Ş. 
made  the  application  for  “Broadcast-
ing Authorization on the Internet” to the 
Radio  and  Television  Supreme  Council 
(“Supreme  Council”)  on  01.07.2020,  and 
the decision of the Supreme Council on 
the applications is pending. 

Transfer of BiP Platform and 
Establishment of BiP B.V. 
With the decision of the Turkcell Board 
of  Directors  dated  29.04.2020,  it  was 
decided that the BiP platform owned by 
Lifecell  Ventures  Coöperatief  U.A.,  one 
of our subsidiaries, to be transferred to 
our Company Turkcell İletişim Hizmetleri 
A.Ş. at a price to be determined in the 
valuation report to be prepared by the 
independent  audit  firm,  by  transferring 
the  intangible  rights  constituting  the 
platform.  Accordingly,  the  transfer  pro-
cess  was  completed  on  30.06.2020. 
Subsequently,    in  order  to  give  the  BiP 

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Independent auditor’s
report and consolidated 
financial statements

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

AND INDEPENDENT AUDITOR’S REPORT

This report is 106 pages.

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TURKCELL ILETISIM HIZMETLERI AS 

F1

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.) 

Note 

31 December 2020 

31 December 2019 

Assets 

Property, plant and equipment 
Right-of-use assets 
Intangible assets 
Investment properties 
Trade receivables 
Receivables from financial services 
Contract assets 
Deferred tax assets 
Investments in equity accounted investees 
Other non-current assets 

Total non-current assets 

Inventories 
Trade receivables  
Due from related parties 
Receivables from financial services 
Contract assets 
Derivative financial instruments 
Financial assets at amortized cost 
Financial assets at fair value through other comprehensive income 
Cash and cash equivalents 
Other current assets 

Total current assets 

Total assets 

Equity 

Share capital 
Share premium 
Treasury shares  
Additional paid-in capital 
Reserves 
Remeasurements of employee termination benefit  
Retained earnings 

Total equity attributable to equity holders of  
Turkcell Iletisim Hizmetleri AS (“the Company”) 

Non-controlling interests 

Total equity 

11 
15 
12 
14 
19 
20 
21 
18 

17 

22 
19 

20 
21 
35 

25 
24 
23 

26 

26 

13,902,730 
2,380,174 
12,367,784 
13,675 
222,451 
75,717 
128,114 
836,608 
103,926 
883,842 
30,915,021  

203,715 
3,465,797 
16,476 
1,886,381 
972,052 
917,437 
172,363 
529,610 
11,860,555 
558,986 
20,583,372  

12,458,491 
1,783,096 
11,308,062 
16,283 
148,159 
123,136 
10,291 
189,342 
41,701 
304,270 
26,382,831 

178,399 
3,133,975 
4,477 
2,319,122 
933,969 
845,513 
5,368 
345,602 
10,238,715 
1,327,004 
19,332,144 

51,498,393 

45,714,975 

 2,200,000  
 269  
 (147,914) 
 35,026  
2,400,000 
 (94,684) 
16,392,070 

2,200,000 
269 
(144,152) 
35,026 
2,816,359 
(63,539) 
13,202,526 

20,784,767 

18,046,489 

171 

20,784,938 

36,455 

18,082,944 

The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 
1 

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296

 F2

TURKCELL ILETISIM HIZMETLERI AS 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.) 

TURKCELL ILETISIM HIZMETLERI AS 

F3

CONSOLIDATED STATEMENT OF PROFIT OR LOSS 
For the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

Liabilities 

Borrowings 
Employee benefit obligations 
Provisions 
Deferred tax liabilities 
Contract liabilities 
Other non-current liabilities 

Total non-current liabilities 

Borrowings 
Current tax liabilities 
Trade and other payables 
Due to related parties 
Deferred revenue 
Provisions 
Contract liabilities 
Derivative financial instruments 

Total current liabilities 

Total liabilities 

Total equity and liabilities 

  Note 

31 December 2020 

31 December 2019 

  Note 

  2020 

2019 

2018 

29 
30 
33 
18 
32 
28 

29 

34 

31 
33 
32 
35 

16,353,685 
381,923 
411,931 
1,337,831 
164,764 
498,059 
19,148,193 

5,232,737 
134,175 
4,976,605 
40,355 
116,921 
630,288 
315,070 
119,111 
11,565,262 

12,677,394 
294,331 
337,404 
1,165,630 
141,890 
359,857 
14,976,506 

7,628,333 
121,258 
4,117,471 
12,082 
56,544 
342,812 
290,408 
86,617 
12,655,525 

30,713,455 

27,632,031 

51,498,393 

45,714,975 

Revenue 
Revenue from financial services 
Total revenue 

Cost of revenue 
Cost of revenue from financial services 
Total cost of revenue 

Gross profit  
Gross profit from financial services 
Total gross profit 

Other income 
Selling and marketing expenses 
Administrative expenses 
Net impairment losses on financial and contract 
assets 
Other expenses 
Operating profit 

Finance income 
Finance costs 
Net finance costs 

Share of loss of equity accounted investees 
Profit before income tax 

Income tax expense 
Profit from continuing operations  

Gain from discontinued operations 
(attributable to owners of the Company)  

5 
5 

10 
10 

6 
10 
10 

10 
6 

8 
8 

9 

28,272,751 
830,987 
29,103,738 

23,996,262 
1,140,873 
25,137,135 

20,173,354 
1,119,121 
21,292,475 

 (20,161,096) 
 (174,963) 
 (20,336,059) 

(16,816,705) 
(266,775) 
(17,083,480) 

(13,751,195) 
(394,798) 
(14,145,993) 

8,111,655 
656,024 
8,767,679 

7,179,557 
874,098 
8,053,655 

96,585 
 (1,372,953) 
 (749,612) 

140,705 
(1,555,189) 
(779,755) 

 (349,595) 
(619,835) 
5,772,269 

(338,857) 
(487,295) 
5,033,264 

2,119,483 
  (3,251,164) 
  (1,131,681) 

297,450 
(2,025,118) 
(1,727,668) 

 (13,775) 
4,626,813 

(387,193) 
4,239,620 

(15,712) 
3,289,884 

(785,630) 
2,504,254 

6,422,159 
724,323 
7,146,482 

241,435 
(1,626,714) 
(673,370) 

(346,390) 
(381,582) 
4,359,861 

1,677,114 
(3,364,072) 
(1,686,958) 

(87) 
2,672,816 

(495,481) 
2,177,335 

- 

772,436 

- 

Profit for the year 

4,239,620 

3,276,690 

2,177,335 

Profit for the year is attributable to: 
Owners of the Company 
Non-controlling interests  
Total 

Basic and diluted earnings per share for profit attributable 
to owners of the Company (in full TL) 
Basic and diluted earnings per share for profit from 
continuing operations attributable to owners of the 
Company (in full TL)  
Basic and diluted earnings per share for profit from 
discontinued operations attributable to owners of the 
Company (in full TL) 

27 

27 

27 

4,237,086 
2,534 
4,239,620 

3,246,487 
30,203 
3,276,690 

2,021,065 
156,270 
2,177,335 

1.94 

1.94 

- 

1.49 

1.14 

0.35 

0.93 

0.93 

- 

The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 
2 

The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes. 
3 

297

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
298

 F4
TURKCELL ILETISIM HIZMETLERI AS 

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME 
For the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

Profit for the year 

Other comprehensive income/(expense): 

Note 

2020 

2019 

2018 

4,239,620      3,276,690 

2,177,335 

Items that will not be reclassified to profit or loss: 
Remeasurements of employee termination benefits 
Income tax relating to remeasurements of employee termination benefits

30 

Items that may be reclassified to profit or loss: 
Exchange differences on translation of foreign operations 
Exchange differences arising from discontinued operations 
Fair value reserve 
Cash flow hedges - effective portion of changes in fair value 
Cash flow hedges - reclassified to profit or loss 
Cost of hedging reserve - changes in fair value 
Cost of hedging reserve - reclassified to profit or loss 
Loss on hedges of net investments in foreign operations 
Income tax relating to these items 
-Income tax relating to exchange differences 
-Income tax relating to fair value reserve 
-Income tax relating to hedges of net investments 
-Income tax relating to cost of hedging reserve  
-Income tax relating to cash flow hedges 

35 

9 

35 

Other comprehensive income/(loss) for the year, net of income tax 
Total comprehensive income for the year 

Total comprehensive income for the year is attributable to:  

Owners of the Company 
Non-controlling interests 

Total 

Total comprehensive income for the year attributable to owners of 
the Company arises from: 
Continuing operations 
Discontinued operations 
Total 

(37,230) 
6,085 
(31,145) 

(36,385) 
8,005 
(28,380) 

12,699 
(2,794) 
9,905 

431,810 
29,352 
104,986 
- 
4,451 
(1,970) 
221,488 
1,523,123 
(439,365) 
(1,513,209) 
97,373 
(589,856) 
(21,768) 
102,212 
(55,389) 
(368,959) 
(56,728) 
167,028 
(99,234) 
7,729 
(979) 
483 
12,186 
72,684 
(16,634) 
92,089 
47,933 
(5,957) 
286,858 
(652,279) 
258,478 
(683,424) 
3,556,196      3,535,168 

424,817 
425,371 
- 
630,191 
(611,035) 
(390,267) 
42,665 
- 
(154,409) 
(226,667) 
- 
- 
76,472 
(4,214) 
367,333 
377,238 
2,554,573  

3,553,662      3,505,496 
29,672 

2,534     

2,398,930 
155,643 

3,556,196      3,535,168 

2,554,573  

3,553,662      2,628,074 
877,422 
3,553,662      3,505,496 

- 

1,957,396 
441,534 
2,398,930  

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. 
4 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
             
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300

 F6 TURKCELL ILETISIM HIZMETLERI AS 

CONSOLIDATED STATEMENT OF CASH FLOWS 
For the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

Note 

2020 

2019 

2018 

Cash flows from operating activities: 
Profit for the year from 

Continuing operations 
Discontinued operations 

Profit for the year including discontinued operations 

Adjustments for: 
Depreciation and impairment of property, plant and equipment and investment properties 
Amortization of intangible assets and right of use assets 
Net finance expense 
Fair value adjustments to derivatives 
Income tax expense 
(Gain) on sale of property, plant and equipment 
Unrealized foreign exchange losses on operating assets 
Provisions 
Share of equity accounted investees 
Loss/(gain) on sale of subsidiary 
Adjustments to (earnings) due to disposal of assets held for sale 
Non-cash other adjustments 

Change in operating assets/liabilities  
Change in trade receivables 
Change in due from related parties 
Change in receivables from financial services 
Change in inventories 
Change in other current assets 
Change in other non-current assets 
Change in due to related parties 
Change in trade and other payables 
Change in other non-current liabilities 
Change in employee benefit obligations 
Change in short term contract asset 
Change in long term contract asset 
Change in deferred revenue 
Change in short term contract liability 
Change in long term contract liability 
Changes in other working capital 
Cash generated from operations 

Interest paid 
Income tax paid 
Net cash inflow from operating activities 

Cash flows from investing activities: 
Acquisition of property, plant and equipment 
Acquisition of intangible assets 
Proceeds from sale of property, plant and equipment 
(Payments for)/proceeds from advances given for acquisition of property, plant and equipment  
Contribution of increase of share capital in joint ventures/associates 
Proceeds from sale of subsidiary 
Cash inflows from financial asset at fair value through other comprehensive income 
Cash outflows from financial asset at fair value through other comprehensive income 
Payments for financial assets at amortized cost 
Interest received 
Net cash outflow from investing activities 

Cash flows from financing activities: 
Dividends received for treasury share 
Proceeds from derivative instruments 
Repayments of derivative instruments 
Proceeds from issues of loans and borrowings 
Proceeds from issues of bonds 
Repayment of borrowings  
Repayment of bonds 
Dividends paid to shareholders 
Dividends paid to non-controlling interest in subsidiaries 
Acquisition of treasury shares 
Payments of lease liabilities 
Other cash (outflows)/inflows from financing activities 
Net cash outflow from financing activities 

Net increase in cash and cash equivalents 

Cash and cash equivalents at 1 January 

11-14 
12-15 

9 

19 
39 
20 
22 
23 
17 
39 
34 
28 
30 
21 
21 

32 
32 

11 
12 

4,239,620 
- 
4,239,620 

2,426,263 
3,548,516 
901,530 
  (2,016,859) 
387,193 
(23,950) 
4,384,197 
1,230,295 
13,775 
1,387 
- 
(13,840) 
15,078,127 

    (618,545) 
      (11,208) 
         429,950  
      (25,316) 
        547,475   
(71,752) 
27,484 
614,418 
             739  
        (20,850) 
      (38,636) 
    (117,823) 
82,254 
24,662  
22,874  
 (543,289) 
15,380,564 

 (1,653,675) 
 (634,094) 
13,092,795 

  (3,904,443) 
 (3,375,915) 
         99,843  
    (501,339) 
(76,000) 
1,229 
976,576 
(972,188) 
(23,298) 
994,899 
(6,780,636) 

6,232 
2,085,585  
 (866,650) 
22,983,201  
494,987  
 (26,354,532) 
 (455,878) 
 (811,622) 
 (32,856) 
(9,994) 
(1,302,335) 
(3,951) 
(4,267,813) 

2,504,254 
772,436 
3,276,690 

2,199,830 
2,846,735 
1,442,773 
(570,204) 
785,630 
(47,169) 
1,832,636 
920,924 
15,712 
- 
(772,436) 
(15,557) 
11,915,564 

(881,333) 
10,025 
1,651,180 
2,035 
(299,790) 
(38,112) 
(33,135) 
92,427 
(8,122) 
(36,231) 
(223,146) 
(6,778) 
45,402 
34,652 
10,292 
(506,303) 
11,728,627 

2,177,335 
- 
2,177,335 

1,894,445 
2,393,529 
983,881  
(1,719,610) 
495,481 
(43,727) 
2,954,304  
796,520 
87 
(110,308) 
- 
- 
9,821,937 

273,110  
(5,870) 
(69,991) 
(76,883) 
53,957  
142,133 
40,072 
(501,980) 
(242,384) 
(32,764) 
(711,928) 
(3,513) 
54,391 
 255,756 
 131,598  
(981,764) 
8,145,877  

(2,090,718) 
(611,354) 
9,026,555 

  (1,658,308) 
 (657,715) 
5,829,854 

(3,195,069) 
(2,821,111) 
81,192 
156,936 
(38,000) 
2,219,644 
84,655 
(369,591) 
- 
854,018 
(3,027,326) 

7,380 
1,924,363 
(1,101,876) 
29,060,490 
311,649 
(31,297,901) 
(225,794) 
(1,010,000) 
(125,027) 
(9,998) 
(1,215,320) 
204,077 
(3,477,957) 

(2,960,648) 
(2,264,912) 
103,864 
(204,817) 
(19,500) 
118,528 
- 
(39,877) 
- 
731,793 
(4,535,569) 

9,399 
1,054,345 
(710,522) 
44,341,070  
2,188,313 
(43,987,127) 
(191,312) 
(1,900,000) 
(58,778) 
(94,620) 
(1,164,879) 
(20,272) 
(534,383)  

2,044,346 

2,521,272 

759,902 

10,238,715 

7,419,239 

4,712,333 

Effects of exchange rate changes on cash and cash equivalents 

(422,506) 

298,204 

1,947,004 

Cash and cash equivalents at 31 December 

24 

11,860,555 

10,238,715 

7,419,239 

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Notes to the consolidated financial statements 

1. Reporting entity 

2. Basis of preparation and summary of significant accounting policies 

3. Financial risk management 

4. Segment information 

5. Revenue 

6. Other income and expenses 

7. Employee benefit expenses 

8. Finance income and costs 

9. Income tax expense 

10. Expenses by nature 

11. Property, plant and equipment 

12. Intangible assets 

13. Impairment of assets 

14. Investment property 

15. Right of use assets 

16. Discontinued operation 

17. Other non-current assets 

18. Deferred tax assets and liabilities 

19. Trade receivables and accrued revenue 

20. Receivables from financial services 

21. Contract assets  

22. Inventory 

23. Other current assets  

24. Cash and cash equivalents 

25. Financial assets 

26. Equity 

27. Earnings per share 

28. Other non-current liabilities 

29. Loans and borrowings 

30. Employee benefits 

31. Deferred revenue 

32. Contract liabilities 

33. Provisions 

34. Trade and other payables 

35. Derivative financial instruments 

36. Financial instruments 

37. Guarantees and purchase obligations 

38. Commitments and contingencies 

39. Related parties 

40. Subsidiaries 

41. Cash flow information 

42. Subsequent events 

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The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 
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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
302

 F8

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Reporting entity 

1. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Reporting entity (continued) 

1. 

Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company” or “Turkcell”) was incorporated in Turkey on  
5 October 1993 and commenced its operations in 1994. The address of the Company’s registered office is 
Maltepe  Aydinevler  Mahallesi  Inonu  Caddesi  No:  20,  Kucukyali  Ofispark/Istanbul.  It  is  engaged  in 
establishing and operating a Global System  for Mobile  Communications (“GSM”) network  in Turkey and 
regional states. 

In April 1998, the Company signed a license agreement (the “2G License”) with the Ministry of Transport 
and Infrastructure of Turkey (the “Turkish Ministry”), under which it was granted a 25-year GSM license in 
exchange for a license fee of USD 500,000. The License permits the Company to operate as a stand-alone 
GSM  operator  and releases  it  from  some  of  the  operating  constraints  in  the  Revenue  Sharing  Agreement, 
which was in effect prior to the 2G License. Under 2G license, the Company pays in cash the Undersecretariat 
of the Treasury (the “Turkish Treasury”) a monthly tax levy, namely a 'treasury share' equal to 15% of the 
Company's gross revenue from Turkish  GSM operations. The Company  continues to  build and operate its 
GSM network and is authorized to, among other things, set its own tariffs within certain limits, charge peak 
and off-peak rates, offer a variety of service and pricing packages, issue invoices directly to subscribers, collect 
payments and deal directly with subscribers. Following the 3G tender held by the Information Technologies 
and  Communications  Authority  (“ICTA”)  regarding  the  authorization  for  providing  IMT-2000/UMTS 
services and infrastructure, the Company has been granted the A-Type license (the “3G License”) providing 
the  widest  frequency  band,  at  a  consideration  of  EUR  358,000  (excluding  Value  Added  Tax  (“VAT”)). 
Payment of the 3G license was made in cash, following the necessary approvals, on 30 April 2009. 

On 26 August 2015, “Authorization Tender  on  IMT Services  and Infrastructure” publicly known as “4.5G 
license”  tender,  was  held  by  the  ICTA  and  the  Company  was  awarded  with  a  total  frequency  band  of  
172.4 MHz for 13 years. The tender price is  EUR 1,623,460 (excluding VAT of  18%). IMT authorization 
period expires on 30 April 2029 and operators were able to commence service delivery for 4.5G starting from  
1 April 2016. 2x1.4 MHz frequency band in 900MHz spectrum and 2 units of 2x5 MHz frequency bands in 
2100 MHz spectrum were commenced on 1 December 2015, while remaining packages were commenced on 
1 April 2016.  

The Company is obliged to pay the ICTA a monthly treasury share equal to 90% of 15% of gross revenue and 
10% is paid for a universal service fund. In addition, the Company pays annual contributions in an amount 
equal to 0.35% of net revenue to the ICTA’s expenses and 5% of net revenue to ICTA as a frequency fee 
(TRx). 

On 21 October 2020, the following main amendments to the articles of association have been approved by the 
Ordinary General Assembly:  

(i) 

(ii) 

(iii) 

The  size  of  the  board  of  directors  has  been  increased  from  seven  members  to  a  total  of  nine 
members;  

15% of the total issued shares of Turkcell, owned by TVF Bilgi Teknolojileri Iletisim Hizmetleri 
Yatirim Sanayi ve Ticaret Anonim Sirketi (“TVF BTIH”) as the surviving entity from the Turkcell 
Holding A.S. (“Turkcell Holding”) / TVF BTIH merger, have been re-classified as a separate class 
of Group A Shares (the “Group A Shares”);  

A nomination privilege has been created on the Group A Shares, allowing the holders thereof to 
nominate  four  candidates  for  appointment  of  five  members  of  the  board  of  directors  of  the 
Company; a voting privilege has been created on the Group A Shares, allowing the holders thereof 
to cast six votes for each Group A Share in respect of the appointment of  

a.  five members of the board of directors of the Company, and  

b. 

the chairman of the presiding committee of the general assembly of shareholders;  

(iv) 

(v) 

(vi) 

(vii) 

All shareholders of the Company (including the holders of Group A Shares) are entitled to cast 
one vote per share on all other matters submitted to a vote of Turkcell’s shareholders, including 
the  appointment  of  the  residual  four  members  of  the  board  of  directors  of Turkcell  (including 
independent ones);  

The  chairman  of  the  board  of  directors  shall  be  elected  among  the  members  of  the  board  of 
directors elected through the exercise of the privileges granted to Group A Shares;  

The meeting quorum requirement of the board of directors requires five members constituting the 
majority of full number of its members, and the decision quorum requires the affirmative vote of 
at least five members present in the meeting; and  

So long as the above mentioned privileges are in effect, unlimited authority to represent and bind 
Turkcell  regulated  under  Article  370  of  Turkish  Commercial  Code  shall  be  exercised  by  two 
members of the board of directors of the Company, including at least one member of the board of 
directors of the Company appointed through the exercise of the said privileges by the holders of 
Group A Shares.  

The completion of the transactions announced on 17 June 2020 between the Company’s direct and indirect 
shareholders and certain of its related parties, Turkiye Varlik Fonu (“TVF”), through Turkiye  Varlik Fonu 
Yonetimi A.S., TVF BTIH, T.C. Ziraat Bankasi A.S. (“Ziraat Bankasi”) took place on 22 October 2020, at the 
completion date among other things, (i) Telia Finland Oy (“Telia”), the holder of 47.09% shares of Turkcell 
Holding (indirectly 24.02% in Turkcell) divested of all of its interest in Turkcell’s shareholding structure by 
selling its shares to TVF BTIH; (ii) Cukurova Telecom Holdings Limited, the holder of 52.91% shares of 
Turkcell Holding according to public announcements (indirectly 26.98% in Turkcell) divested all of its interest 
in shareholding structure by selling its shares to TVF BTIH; (iii) following the merger of Turkcell Holding 
with TVF BTIH, IMTIS Holdings S.a r l. (“IMTIS Holdings”) acquired 24.8% of the issued shares of Turkcell, 
from TVF BTIH.  

As  announced  on  13  November  2020,  IMTIS  Holdings,  the  direct  shareholder  of  the  Company,  holding 
545,600,000 Group B ordinary and tradable shares corresponding to 24.8% of the issued shares, agreed to sell 
110,000,000  of  Turkcell  shares  corresponding  to  5%  of  the  issued  shares  to  institutional  investors.  The 
transaction is completed on 12 November 2020. Following completion of the transactions, capital shares and 
voting rights of TVF BTIH and IMTIS Holdings in the Company have become 26.2% and 19.8%, respectively. 
Proportion of the Company’s shares that are traded in domestic and foreign stock exchanges increased from 
48.95% to 53.95% (Note 26).   

The Group’s immediate and ultimate parents are TVF BTIH and TVF as of 31 December 2020, respectively. 
TVF has been established with the Law No. 6741 and published in the Official Gazette dated 26 August 2016. 

In order to ensure compliance with corporate governance principles of the Capital Markets Board (“CMB”), 
three independent board members were appointed in 2013. Additionally, two board members were appointed 
at the General Assembly dated 29 April 2013 as per the resolution of CMB. Also in 2013, two members were 
chosen from the independent nominees list submitted by Telia to CMB. On 29 March 2018, in accordance 
with the shareholder proposal at the Ordinary General Assembly, three new members were elected to serve for 
three years instead of three members who are not among independent members appointed by the CMB. Two 
new board members were appointed on 7 and 8 March 2019 in lieu of board members who had resigned at 
various dates in 2019. These two board members were reappointed for three years in the Ordinary General 
resigned  on  
Assembly  Meeting  held  on  12  September  2019.  One  of 
27 November 2019, and on 13 December 2019 a new board member was appointed for the vacant seat. Three 
new independent board members were appointed in lieu of existing three independent board members in board 
of directors with the CMB decision dated 5 March 2020.  

the  board  members 

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304

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F11

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Reporting entity (continued) 

1. 

On 21 October 2020, amendment on articles of association regarding increasing number of board of directors 
from seven to nine was approved at the Ordinary General Assembly Meeting. On 22 October 2020, two board 
members  resigned.  The  Company’s  board  of  directors  consists  of  a  total  of  five  non-executive  members 
including three independent members as of 31 December 2020. 

The consolidated financial statements of the Company as at and for the year ended 31 December 2020 comprise 
the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associates 
and a joint venture. Subsidiaries of the Company, their locations and their nature of operations are disclosed 
in Note 40. The Company’s and each of its subsidiaries’ and associate’s financial statements are prepared as 
at and for the year ended 31 December 2020. 

2. 

Basis of preparation and summary of significant accounting policies 

This note provides a list of the significant accounting policies adopted in the preparation of these consolidated 
financial statements to the extent they have not already been disclosed in the other notes below. These policies 
have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial 
statements are for the Group consisting of the Company and its subsidiaries and the Group’s interest in an 
associate and a joint venture. 

(a)  Compliance with IFRS 

The  consolidated  financial  statements  of  the  Group  have  been  prepared  in  accordance  with  International 
Financial  Reporting Standards  (“IFRS”)  and  interpretations  issued  by  the  IFRS  Interpretations  Committee 
(“IFRS IC”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as 
issued by the International Accounting Standards Board (“IASB”). 

The accounting policies, presentation and methods of computation are consistent with those of the previous 
financial year and corresponding reporting period, unless otherwise stated. 

The Group adopted IFRS 9, “Financial Instruments” and IFRS 15, “Revenue from Contracts with Customers” 
for the first time for the year commencing 1 January 2018. The Group also elected to early adopt IFRS 16, 
“Leases” for the first time for the year commencing 1 January 2018. 

The General Assembly has the power to amend and reissue the financial statements. The consolidated financial 
statements as at and for the year ended 31 December 2019 were authorized for issue by the Board of Directors 
on 20 February 2020.  

The consolidated financial statements as at and for the year ended 31 December 2020 were authorized for issue 
by the Board of Directors on 19 February 2021 and updated to reflect subsequent events after the original date 
of authorization for inclusion in its annual report on Form 20-F. 

(b)  Historical cost convention 

The accompanying consolidated financial statements are based on the statutory records, with adjustments and 
reclassifications for  the  purpose  of  fair presentation  in  accordance  with  IFRS  as  issued  by  the  IASB.  The 
financial statements have been prepared on a historical cost basis, except for the following measured at fair 
value: 

-  Derivative financial instruments, 

-  Consideration payable in relation to the acquisition of Belarusian Telecom, 

-  Financial asset at fair value through other comprehensive income.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(c)  Functional and presentation currency 

 (i)  Transactions and balances 

Transactions denominated in foreign currencies are translated into the functional currency using the exchange 
rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the 
reporting date are translated into the functional currency using the exchange rates at that date.  

Non-monetary  assets  and  liabilities  denominated  in  foreign  currencies  that  are  measured  at  fair  value  are 
translated to the functional currency using the exchange rates at the date when the fair value was determined. 
Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain 
or loss. For example, translation differences on non-monetary assets and liabilities such as assets held at fair 
value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation 
differences on assets classified as at fair value through other comprehensive income are recognized in other 
comprehensive income. 

Foreign exchange gains and losses are recognized in profit or loss, except: 

 

For capitalized foreign exchange differences relating to borrowings to the extent that they are regarded 
as an adjustment to interest costs eligible for capitalization.  

Foreign exchange differences are deferred in equity if they relate to qualifying cash flow hedges and qualifying 
net investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange 
gains and losses are presented in the statement of profit or loss on a net basis within finance income or finance 
costs.  

(ii)  Foreign operations 

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary 
economy)  that  have  a  functional  currency  different  from  the  presentation  currency  are  translated  into  the 
presentation currency as follows: 

  Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of 

that balance sheet, 

  Equity for each balance sheet presented is translated at historic cost at the date of transaction, 

 

Income and expenses for each statement of profit or loss and statement of comprehensive income are 
translated  at average monthly  exchange  rates  (unless  this is  not  a reasonable approximation of  the 
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses 
are translated at the dates of the transactions) and 

  All resulting exchange differences are recognized in other comprehensive income and accumulated in 

the foreign currency translation reserve, in equity. 

On  consolidation,  exchange  differences  arising  from  the  translation  of  borrowings  and  other  financial 
instruments  designated  as  hedges  of  any  net  investment  in  foreign  entities  are  recognized  in  other 
comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment 
are repaid the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on 
sale. 

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and 
liabilities of the foreign operation and translated at the closing rate. 

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306

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(d)  Use of estimates and judgments 

The preparation of the consolidated financial statements requires the use of accounting estimates. Management 
also needs to exercise judgment in applying the Group’s accounting policies. Actual results may differ from 
these estimates. 

Estimates and underlying assumptions are reviewed on an ongoing basis. Alterations to accounting estimates 
are recognized in the period in which the estimates are revised and in any future periods affected. 

Information about significant areas of estimation, uncertainty and critical judgments in applying accounting 
policies  that  have  the  most  significant  effect  on  the  amounts  recognized  in  the  consolidated  financial 
statements are described below: 

Allowance for doubtful receivables 

The Group maintains an allowance for doubtful receivables for estimated losses resulting from the inability of 
the Group’s subscribers and customers to  make required  payments. The  Group bases  the allowance on the 
likelihood  of  recoverability  of  trade  receivables, receivables  from  financial  services  and other  receivables; 
when there is objective evidence of impairment as a result of one or more events that occurred after the initial 
recognition of asset and that events have an impact on the estimated future cash flows of the financial asset or 
group  of  financial  assets  that  could  be  reliably  estimated.  The  allowance  is  periodically  reviewed.  The 
allowance  charged  to  expenses  is  determined  in  respect  of  receivable  balances,  calculated  as  a  specified 
percentage of the outstanding balance in each aging group, with the percentage of the allowance increasing as 
the aging of the receivable progresses. 

Capitalization and useful lives of assets 

The useful lives and residual values of the Group’s assets are estimated by management at the time the asset 
is acquired and regularly reviewed for appropriateness. The Group defines useful lives of its assets in terms of 
the assets’ expected utility to the Group. This judgment is based on the experience of the Group with similar 
assets.  In  determining  the  useful  life  of  an  asset,  the  Group  also  follows  technical  and/or  commercial 
obsolescence  arising  on  changes  or  improvements  from  a  change  in  the  market.  The  useful  lives  of  the 
telecommunication licenses are based on the duration of the license agreements. 

Gross versus net presentation of revenue 

When the Group acts as principal in sale of goods or rendering of services, revenue from customers and costs 
with suppliers are reported on a gross basis. When the Group acts as agent in sale of goods or rendering of 
services, revenue from customers and costs related to suppliers are reported on a net basis, representing the net 
margin earned. Whether the Group is acting as principal or agent depends on management’s analysis of both 
legal form and substance of the agreement between the Group and its business partners; such judgments impact 
the amount of reported revenue and costs but do not impact reported assets, liabilities or cash flows. 

Contracted handset sales 

The Company, the distributors and dealers offer joint campaigns to the subscribers which may include the sale 
of device by the dealer and/or distributor and a communication service to be provided by the Company. The 
Company does not recognize any revenue for the device in these transactions by considering the factors below: 

- the Company is not the primary obligor for the sale of handset, 
- the Company does not have control over the sale prices of handsets, 
- the Company has no inventory risk. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

2. 

  Basis of preparation and summary of significant accounting policies (continued) 

(d)  Use of estimates and judgments (continued) 

Multiple performance obligations and price allocation 

In arrangements which include multiple elements where the Group acts as principal, the Group considers that 
these bundled elements involve consideration in the form of a fixed fee or a fixed fee coupled with a continuing 
payment stream. A good or service is distinct if both of the following criteria are met: 

  The good or service is capable of being distinct,   
  The promise to transfer the good or service is distinct within the context of the contract. 

The arrangement consideration is allocated to each performance obligation identified in the contract based on 
relative stand-alone selling prices. If an element of a transaction is not distinct, then it is accounted for as an 
integral part of the remaining elements of the transaction. 

Income taxes 

The calculation of income taxes involves a degree of estimation and judgment in respect of certain items whose 
tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, 
as appropriate, through formal legal process. 

As part of the process of preparing the consolidated financial statements, the Group is required to estimate the 
income taxes in each of the jurisdictions and countries in which it operates. This process involves estimating 
the  actual  current  tax  exposure  together  with  assessing  temporary  differences  resulting  from  differing 
treatment of items, such as deferred revenue and reserves for tax and accounting purposes.  

The recognition of deferred tax assets is based upon whether it is probable that future taxable profits will be 
available  against  which  unrecognized  tax  losses  and  temporary  differences  can  be  utilized.  Recognition, 
therefore, involves judgment regarding the future financial performance of the particular legal entity in which 
the deferred tax asset has been recognized. 

Provisions, contingent liabilities and contingent assets 

As detailed and disclosed in Note 38, the Group is involved in a number of investigations and legal proceedings 
(both as a plaintiff and as a defendant) arising in the ordinary course of business. All these investigations and 
litigations are evaluated by the Group Management and disclosed (unless information concerning provisions 
are very sensitive, and full disclosure could prejudice the outcome of cases) or accounted for in the consolidated 
financial statements. Future results or outcome of these investigations and litigations might differ from these 
Group Management’s expectations. As at the reporting date, the Group Management believes that appropriate 
recognition  criteria  and  measurement  basis  are  applied  to  provisions,  contingent  liabilities  and  contingent 
assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing 
and amount by considering current conditions and circumstances. 

Annual impairment review  

The Group’s non-current are tested for impairment whenever events or changes in circumstances indicate that 
the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the 
asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s 
fair value less costs of disposal and value in use. 

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308

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F15

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

2. 

  Basis of preparation and summary of significant accounting policies (continued) 

(d)  Use of estimates and judgments (continued) 

Fair value measurements and valuation process 

(h)  Principles of consolidation and equity accounting (continued) 

(i) 

Business combinations (continued) 

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. In 
estimating the fair value of an asset or liability, the Company uses market-observable data to the extent it is 
available. Where Level 1 and 2 inputs are not available, the Company can engage third party qualified experts 
to perform the valuation, if necessary. The management works closely with the qualified external experts to 
establish  the  appropriate  valuation  techniques  and  inputs  to  the  model.  Information  about  the  valuation 
techniques  and  inputs  used  in  determining  the  fair  value  of  various  assets  and  liabilities  is  disclosed  in  
Note 36. 

(e)  Changes in accounting policies 

Other than the adoption of the new and revised standards as explained in Note 2(z), the Group did not make 
any significant changes to its accounting policies during the current year. 

(f)  Changes in accounting estimates 

If the application of changes in the accounting estimates affects the financial results of a specific period, the 
changes in the accounting estimates are applied in that specific period, if they affect the financial results of 
current and following periods; the accounting estimate is applied prospectively in the period in which such 
change is made. A change in the measurement basis applied is a change in an accounting policy, and is not a 
change in an accounting estimate.  

The Company does not have significant changes in accounting estimates during the year. 

(g)  Comparative information and revision of prior period financial statements 

The consolidated financial statements of the Group have been prepared consistent with prior periods. 

(h)  Principles of consolidation and equity accounting 

(i) 

Business combinations 

Business  combinations  are  accounted  for  using  the  acquisition  method.  The  consideration  transferred  in  a 
business combination comprises: 

  The fair value of the assets transferred, 
  Liabilities incurred to the former owners of the acquired business, 
  Equity interests issued by the Group, 
  The fair value of any asset or liability resulting from a contingent consideration arrangement, and 
  The fair value of any pre-existing equity interest in the subsidiary. 

Acquisition-related costs are expensed as incurred. 

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, 
with limited exceptions, measured initially at their fair values at the acquisition date. 

Goodwill is measured as the excess of the consideration transferred, amount of any non-controlling interest in 
the acquired entity, and acquisition-date fair value of any previously held equity interest in the acquired entity 
over the fair value of the net identifiable assets acquired. If those amounts are less than the fair value of the net 
identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain 
purchase.  The  Group  recognizes  any  non-controlling  interest  in  the  acquired  entity  on  an  acquisition-by-
acquisition basis either  at fair value or  at the non-controlling interest’s proportionate share of the acquired 
entity’s net identifiable assets. 

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted 
to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing 
rate,  being  the  rate  at  which  a  similar  borrowing  could  be  obtained  from  an  independent  financier  under 
comparable terms and conditions. 

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial 
liability  are  subsequently  remeasured  to  fair  value  with  changes  in  fair  value  recognized  in  profit  or  loss. 
Contingent consideration classified as equity is not subject to remeasurement.  Instead, any  gain or loss at 
settlement is recorded as an adjustment to equity through other comprehensive income. 

If  the  business  combination  is  achieved  in  stages,  the  acquisition  date  carrying  value  of  the  acquirer’s 
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or 
losses arising from such remeasurement are recognized in profit or loss. 

(ii) 

Subsidiaries 

Subsidiaries comprise all entities over which the Group has control. The Group controls an entity when the 
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability 
to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated 
from the date on which control is transferred to the Group. They are deconsolidated from the date that control 
ceases. 

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there 
are changes to one or more of the three elements of control listed above. 

Intercompany  transactions,  balances  and  unrealized  gains  on  transactions  between  group  companies  are 
eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of 
the transferred asset. 

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies 
adopted by the Group. 

Non-controlling interests in  the  results  and equity of  subsidiaries are shown  separately  in the consolidated 
statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement 
of financial position, respectively. 

Non-controlling interest has not been attributed to Belarus Telekom on the grounds that net assets of Belarus 
Telekom is negative, Belarus Telekom is financed solely by the Company and management’s assessment of 
relevant articles of the share purchase agreement with the non-controlling shareholder. 

financial 

loans  amounting 

The  Group  sold  six 
to  TL  439,364  between  2017  and  2019  
to  Aktif  Yatirim  Bankasi  A.S.  Turkcell  Varlik  Finansmani  Fund  (the  “Fund”)  founded  by  Aktif  Yatirim 
Bankasi A.S. in order to create funds for the issuance of Asset Backed Securities (“ABS”) which were issued 
by  the  Fund  in  a  structure  where  Turkcell  Finansman  A.S.  (“Turkcell  Finansman”)  acted  as  the  source 
organization.  These  aforementioned  funds  are  all  expired  and  there  are  no  issued  ABS  as  of  
31  December  2020.  Turkcell  Finansman  transferred  its  contractual  rights  to  receive  cash  flows  from  the 
financial loans that have been sold to the Fund resulting in de-recognition of the related assets from its financial 
statements. Moreover, the Group did not consolidate the Fund since the activities of the Fund are not controlled 
by the Group and the Fund has been defined as a structured entity. 

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310

 F16

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F17

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  

 2.  Basis of preparation and summary of significant accounting policies (continued) 

2.  Basis of preparation and summary of significant accounting policies (continued) 

(h)  Principles of consolidation and equity accounting (continued) 

(iii)  Changes in ownership interests 

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions 
with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying 
amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any 
difference between the amount of the adjustment to the non-controlling and any consideration paid or received 
is recognized in a separate reserve within equity attributable to owners of the Company.  

When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint 
control or significant influence, any retained interest in the entity is remeasured to its fair value with the change 
in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the 
purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. 
In addition, any amounts previously recognized in other comprehensive income in respect of that entity are 
accounted for as if  the Group had directly disposed of the related  assets or liabilities. This may  mean that 
amounts previously recognized in other comprehensive income are reclassified to profit or loss. 

If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence 
is retained, only a proportionate share of the amounts previously recognized in other comprehensive income 
are reclassified to profit or loss where appropriate.  

(iv)  Business combinations under common control 

Business combinations between entities or businesses under common control are excluded from the scope of 
IFRS 3. In a business combination under common control, assets and liabilities of the acquired entity are stated 
at predecessor carrying values. Any difference between the consideration given and the aggregate book value 
of the assets and liabilities of the acquired entity at the date of the transaction is recognized in equity. The 
acquired entity’s results and financial position are incorporated as if both entities (acquirer and acquiree) had 
always been combined, or using the results from the date when either entity joined the Group, where such a 
date is later. 

(v)  Put option over shares relating to non-controlling interests 

Where a put option is written by the Group on shares in an existing subsidiary held by non-controlling interests, 
the Group recognizes a financial liability at the present value of the redemption amount to reflect the put option. 
If the ownership risks and rewards of the shares relating to the put option is attributable to Group, the non-
controlling interest is derecognized. The difference between the put option liability and the non-controlling 
interests derecognized is recognized in equity. For business combinations after 1 January 2009, subsequent 
changes in the fair value of the put option liability are recognized in profit or loss. 

Reserve  for  put  option  over  shares  relating  to  non-controlling  interests  included  in  equity  arises  from  the 
difference  between  the  fair  value  of  the  put  option  written  by  Fintur  Holdings  B.V.  (“Fintur”)  on  non-
controlling shares in one of its subsidiaries and the derecognized non-controlling interests relating to that put 
option. 

 (h)  Principles of consolidation and equity accounting (continued)  

 (vi)  Investments in associates and joint ventures  

An associate is an entity over which the Group has significant influence, but not control or joint control. This 
is  generally  the  case  where  the  Group  holds  between  20%  and  50%  of  the  voting  rights.  Investments  in 
associates are accounted for using the equity method of accounting after initially being recognized at cost. 

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights 
to the net assets of the joint arrangement. The results and assets and liabilities of joint ventures are incorporated 
in these consolidated financial statements using the equity method of accounting. 

Under the equity method of accounting, an investment in an associate is initially recognized at cost and adjusted 
thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or 
loss,  and  the  Group’s  share  of  movements  in  other  comprehensive  income  of  the  investee  in  other 
comprehensive income. Dividends received or receivable from associates are recognized as a reduction in the 
carrying amount of the investment.  

When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in that entity, 
including any other unsecured long-term receivables, the Group does not recognize further losses, unless it has 
incurred obligations or made payments on behalf of the other entity. 

Unrealized  gains  on  transactions  between  the  Group  and  its  associates  are  eliminated  to  the  extent  of  the 
Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence 
of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed 
where necessary to ensure consistency with the policies adopted by the Group. 

On acquisition of an associate, any excess of the cost of the investment over the Group’s share of the net fair 
values of the associate’s identifiable assets and liabilities is recognized as goodwill, which is included in the 
carrying amount of the investment. Any excess of the Group’s share of the net fair value of the associate’s 
identifiable assets and liabilities over the cost of the investment is included as part of the Group’s share of the 
associate profit or loss in the period in which the investment is acquired. 

The  carrying  amount  of  equity-accounted  investments  is  tested  for  impairment.  The  Group  measures  an 
associate that is classified as held for sale at the lower of its carrying amount at the date of classification as 
held for sale and fair value less costs of disposal. Equity accounting ceases once an associate is classified as 
held for sale.  
Financial instruments 

(i) 

Classification 

From 1 January 2018, the Group classifies its financial assets in the following measurement categories: 

- Those to be measured subsequently at fair value (either through OCI or through profit or loss) and 
- Those to be measured at amortized cost. 

The classification depends on the Group’s business model for managing the financial assets and the contractual 
terms of the cash flows. 

For  assets  measured  at  fair  value,  gains  and  losses  will  either  be  recorded  in  profit  or  loss  or  OCI.  For 
investments in equity instruments that are not held for trading, this will depend on whether the Group has made 
an  irrevocable  election  at  the  time  of  initial  recognition  to  account  for  the  equity  investment  at  fair  value 
through other comprehensive income (FVOCI). 

The Group reclassifies debt investments when and only when its business model for managing those assets 
changes. 

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312

 F18

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F19

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

Financial instruments (continued) 

Recognition and derecognition 

2. 

(i) 

Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group 
commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows 
from the financial assets have expired or have been transferred and the Group has transferred substantially all 
the risks and rewards of ownership. 

Measurement 

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset 
not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition 
of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. 

Financial assets with embedded derivatives are considered in their entirety when determining whether their 
cash flows are solely payment of principal and interest. 

(i)  Debt instruments 

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset 
and the cash flow characteristics of the asset. There are three measurement categories into which the Group 
classifies its debt instruments: 

- Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent 
solely payments of principal and interest are measured at amortized cost. Interest income from these financial 
assets  is  included  in  finance  income  using  the  effective  interest  rate  method.  Any  gain  or  loss  arising  on 
derecognition is recognized directly in profit or loss.  

- FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where 
the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements 
in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest 
income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset 
is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit 
or loss. Interest income from these financial assets is included in finance income using the effective interest 
rate method.  

- FVPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or 
loss on a debt instruments that is subsequently measured at FVPL is recognized in profit or loss in the period 
in which it arises. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

Financial instruments (continued) 

Measurement (continued) 

2. 

(i) 

(ii)  Equity instruments 

The Group subsequently measures all equity investments at fair value. Where the Group’s management has 
elected  to  present  fair  value  gains  and  losses  on  equity  investments  in  OCI,  there  is  no  subsequent 
reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. 
Dividends from such investments continue to be recognized in profit or loss as other income when the Group’s 
right to receive payments is established. 

Changes  in  the  fair  value  of  financial  assets  at  FVPL  are  recognized  in  the  statement  of  profit  or  loss  as 
applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI 
are not reported separately from other changes in fair value. 

Impairment 

From 1 January 2018, the Group assesses on a forward looking basis the expected credit losses associated with 
its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on 
whether there has been a significant increase in credit risk. 

Loss allowances are measured on either of the following bases. 

  12 month expected credit losses (ECLs): these are ECLs that result from possible default events within 

the 12 months after the reporting date and 

  Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a 

financial instrument. 

The  Group  applies  lifetime  ECL  measurement  for  all  group  companies  except  Turkcell  Finansman  which 
applies both 12 month and lifetime ECL (general approach). 

Offsetting financial assets and financial liabilities 

Financial assets and liabilities are offset and the net amount presented in the statement of financial position 
where the Group has a legally enforceable right to offset the recognized amounts, and there is an intention to 
settle on a net basis or to realize the asset and settle the liability simultaneously. This policy had also been 
applied before 1 January 2018.  

Cash and cash equivalents 

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on 
hand,  deposits  held  at  call  with  financial  institutions  and  other  short-term,  highly  liquid  investments  with 
original maturities of three months or less that are readily convertible to known amounts of cash and which are 
subject to an insignificant risk of changes in value. 

Trade receivables 

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course 
of business. If collection of the amounts is expected in one year or less they are classified as current assets. If 
not, they are presented as non-current assets. 

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the 
effective  interest  method,  less  provision  for  impairment.  See  Note  36  for  a  description  of  the  Group’s 
impairment policies. 

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314

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F21

2. 

(i) 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

Financial instruments (continued) 

Trade and other payables 

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial 
year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due 
within 12 months after the reporting period. They are recognized initially at their fair value and subsequently 
measured at amortized cost using the effective interest method. 

Related parties 

A related party is a person or entity that is related to the Group. 

(a) A person or a close member of that person’s family is related to the Group if that person: 

(i) has control or joint control of the Group 

(ii) has significant influence over the Group; or 

(iii) is a member of the key management personnel of the Group or of a parent of the Group. 

(b) An entity is related to the Group if any of the following conditions applies: 

(i) The entity and the Group are members of the same group (which means that each parent, subsidiary 
and fellow subsidiary is related to the others). 

(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a 
member of a group of which the other entity is a member). 

(i) 

Financial instruments (continued) 

Derivatives and hedging activities  

Derivatives  are  initially  recognized  at  fair  value  on  the  date  a  derivative  contract  is  entered  into  and  are 
subsequently remeasured to their fair value at the end of each reporting period.  

Fair  values  of  foreign  exchange  forwards,  interest rate  and foreign  exchange  swaps  (IRS,  Cross  Currency 
Swaps etc.) and options are calculated with market levels of interest rates and Central Bank of Republic of 
Turkey  (“CBRT”)  exchange  rates  via  Bloomberg  financial  terminal.  If  market  levels  are  not  available  for 
valuation date, fair value for forward contracts will be the value of the discounted future value of the difference 
between contract price level and forward value of CBRT exchange rate with risk free rates for the period. 
Interest rate and currency swaps will be valued with the difference of the discounted cash flows of each leg of 
the  swaps  using  risk  free  rates  and  CBRT  exchange  rates.  Option  transactions  will  be  valued  with  option 
pricing models using risk free rates and CBRT exchange rates. 

The accounting  for  subsequent  changes  in fair  value  depends on  whether  the derivative  is  designated  as  a 
hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives 
as hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly 
probable forecast transactions (cash flow hedges). 

At  inception  of  the  hedge  relationship,  the  Group  documents  the  economic  relationship  between  hedging 
instruments and hedged items including whether changes in the cash flows of the hedging instruments are 
expected  to  offset  changes  in  the  cash  flows of  hedged  items.  The  Group  documents  its  risk  management 
objective and strategy for undertaking its hedge transactions. 

(iii) Both entities are joint ventures of the same third party. 

(i) 

Cash flow hedges that qualify for hedge accounting 

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. 

(v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or 
an entity related to the Group. If the Group is itself such a plan, the sponsoring employers are also 
related to the Group. 

(vi) The entity is controlled or jointly controlled by a person identified in (a). 

(vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key 
management personnel of the entity (or of a parent of the entity). 

Borrowings 

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently 
measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption 
amount is recognized in profit or loss over the period of the borrowings using the effective interest method. 
Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent 
that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the 
draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be 
drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the 
facility to which it relates. 

Borrowings are removed from the statement of financial position when the obligation specified in the contract 
is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has 
been extinguished or transferred to another party and the consideration paid, including any non-cash assets 
transferred or liabilities assumed, is recognized in profit or loss. 

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow 
hedges is recognized in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective 
portion is recognized immediately in profit or loss. 

Gains or losses relating to the effective portion of the change in intrinsic value of the options are recognized 
in the cash flow hedge reserve within equity. The changes in the time value of the options that relate to the 
hedged item (“aligned time value”) are recognized within OCI in the costs of hedging reserve within equity. 

Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss, as 
follows:  

- Where the hedged item subsequently results in the recognition of a non-financial asset, both the deferred 
hedging gains and losses and the deferred time value of the option contracts or deferred forward points, if any, 
are included within the initial cost of the asset. The deferred amounts are ultimately recognized in profit or 
loss as the hedged item affects profit or loss. 

- The gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings 
is  recognized  in  profit  or  loss  within  finance  cost  at  the  same  time  as  the  interest  expense  on  the  hedged 
borrowings. 

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for 
hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time 
remains in equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset. 
When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of 
hedging that were reported in equity are immediately reclassified to profit or loss. 

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316

 F22

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

Financial instruments (continued) 

Derivatives and hedging activities (continued) 

2. 

(i) 

(i) 

Cash flow hedges that qualify for hedge accounting (continued) 

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative 
instrument that does not qualify for hedge accounting are recognized immediately in profit or loss. 

The Group has started to apply hedge accounting as of 1 July 2018 for existing participating cross currency 
swap and cross currency swap transactions in accordance with IFRS 9 hedge accounting requirement. IFRS 9 
includes new hedge accounting rules aiming alignment with risk management activities. 

The Group enters into participating cross currency swap and cross currency swap transactions in order to hedge 
the changes in cash flows of foreign exchange denominated fixed and floating rate financial instruments. While 
applying cash flow hedge accounting, the effective portion of the  changes  in the  fair  value of the  hedging 
instrument is accounted for under “other comprehensive income/expense items to be reclassified to profit or 
loss” as a “hedging reserve” in equity, and the ineffective portion is recognized in profit or loss. The changes 
recognized in equity is reclassified and included in profit or loss in the same period when the hedged cash 
flows effect the profit or loss. In addition, time value of options included in participating cross currency swaps 
are accounted for cost of hedging and recognized under other comprehensive income. 

The new effectiveness test  model may  be qualitative depending on  the  complexity of  hedging  relationship 
provided that it is prospective only. The 80-125% range in IAS 39 is replaced by an objectives-based test that 
focuses on the economic relationship between the hedged item and the hedging instrument, and the effect of 
credit risk on that economic relationship. 

Under IFRS 9, a hedging relationship is discontinued in its  entirety  when as  a whole it ceases to meet the 
qualifying  criteria  after  considering  the  rebalancing  of  the  hedging  relationship.  Voluntary  discontinuation 
when the qualifying criteria are met is prohibited. Hedge accounting is discontinued when the risk management 
objective for the hedging relationship has changed, the hedging instrument expires or is sold, terminated or 
exercised, there is no longer an economic relationship between the hedged item and hedging instrument or 
when the effect of credit risk starts dominating the value changes that result from the economic relationship. 

When the Group discontinues hedge accounting for a cash flow hedge it shall account for the amount that has 
been accumulated in the cash flow hedge reserve in accordance as follows;  

-if the hedged future cash flows are still expected to occur, that amount shall remain in the cash flow hedge 
reserve until the future cash flows occur.  

-When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for 
hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time 
remains in equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset. 
When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of 
hedging that were reported in equity are immediately reclassified to profit or loss. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

Financial instruments (continued) 

2. 

(i) 

Derivatives and hedging activities (continued) 

(ii)  Foreign currency hedge of net investments in foreign operations 

The Company designates its foreign currency bank loans to hedge its net investment in a foreign operation. 
Foreign exchange gains or losses on the hedging instrument relating to the effective portion of the foreign 
currency hedge of net investments in foreign operations are recognized in other comprehensive income while 
any gains or losses relating to the ineffective portion is recognized in the income statement. Tax effects of 
foreign exchange gains or losses on the hedging instrument relating to the effective portion of the foreign 
currency hedge of net investments in foreign operations is recognized under other comprehensive income as 
well.  

On disposal of the foreign operation, the cumulative value of any such gains or losses recorded in equity is 
transferred to the income statement (Note 16). 

(j)  Property, plant and equipment  

(i)  Recognition and measurement  

Items of property, plant and equipment are stated at historical cost less depreciation and impairment losses. 
Property, plant and equipment related to the Company and its subsidiaries operating in Turkey are adjusted for 
the effects of inflation during the hyperinflationary period ended on 31 December 2005. Since the inflation 
accounting commenced on 1 January 2011, property, plant and equipment related to the subsidiaries operating 
in Belarus are adjusted for the effects of inflation. However, the decrease in inflation rate in subsequent years 
led the three-year cumulative rate as of the end of 2014 to decrease to 65%. Accordingly, the economy of 
Belarus was considered as transitioning out of hyperinflationary status and in 2015 it was determined to be 
appropriate to cease applying IAS 29. Therefore, subsidiaries operating in Belarus ceased applying IAS 29 in 
2015. 

Historical cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes cost of materials and direct labor, any other costs directly attributable to bringing 
the asset to a working condition for its intended use and the costs of dismantling and removing the items and 
restoring the site on which they are located, if any.  

Purchased software that is integral to the functionality of the related equipment is capitalized as part of that 
equipment.  When  parts  of  an  item  of  property,  plant  and  equipment  have  different  useful  lives,  they  are 
accounted for as separate items of property, plant and equipment. 

Gains and losses on disposals are determined by comparing proceeds with the carrying  amount.  These are 
included in profit or loss. 

Changes in the obligation to dismantle, remove assets on sites and to restore sites on which they are located, 
other than changes deriving from the passing of time, are added or deducted from the cost of the assets in the 
period in which they occur. The amount deducted from the cost of the asset shall not exceed the balance of the 
carrying amount on the date of change, and any excess balance is recognized immediately in profit or loss. An 
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount 
is greater than its estimated recoverable amount. 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
318

 F24

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(j)  Property, plant and equipment (continued) 

(ii)  Subsequent costs 

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, 
only when it is probable that future economic benefits associated with the item will flow to the Group and the 
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate 
asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the 
reporting period in which they are incurred. 

 (iii)  Depreciation 

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over 
their estimated useful lives.  

Land is not depreciated. 
The estimated useful lives are as follows: 

Buildings 
Mobile network infrastructure 
Fixed network infrastructure 
Call center equipment 
Equipment, fixtures and fittings 
Motor vehicles 
Leasehold improvements 

21 – 25 years 
4 – 20 years 
3 – 25 years 
4 –   8 years 
2 – 10 years 
4 –   6 years 
3 –   5 years 

Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of 
each reporting period. 

(iv)  Borrowing costs 

General and specific borrowing costs that are directly attributable to the acquisition, construction or production 
of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its 
intended use or sale. Qualifying assets are assets that necessarily take a substantial period to get ready for their 
intended use or sale. 

Other borrowing costs are expensed in the period in which they are incurred. 

(k) 

Intangible assets 

(i) 

Telecommunication licenses 

Separately acquired telecommunication licenses are stated at historical cost adjusted for the effects of inflation 
during the hyperinflationary period, where applicable, less amortization and impairment losses.  

Amortization 

Amortization is recognized in the statement of profit or loss on a straight-line basis by reference to the license 
period. The useful lives for telecommunication licenses are as follows: 

Telecommunications licenses 

3 – 25 years 

The  Company  has  been  granted  the  2G,  3G  and  4.5G  licenses  on  27  April  1998,  30  July  2009  and  
26 August 2015, respectively. The licenses are effective for 25, 20 and 13 years, respectively. 

(k) 

Intangible assets (continued) 

 (ii)  Computer software 

Acquired computer software licenses are capitalized based on the costs incurred to acquire and bring to use 
the specific software. 

Costs associated with maintaining computer software programs are recognized as an expense as incurred.  

Development costs that are directly attributable to the design and testing of identifiable and unique software 
products controlled by the Group are recognized as intangible assets when the following criteria are met: 

It is technically feasible to complete the software such that it will be available for use, 

 
  Management intends to complete the software and use or sell it, 
  There is an ability to use or sell the software, 
 
  Adequate technical, financial and other resources to complete the development and to use or sell the 

It can be demonstrated how the software will generate probable future economic benefits, 

software are available and 

  The expenditure attributable to the software during its development can be reliably measured. 

Directly attributable costs that are capitalized as part of the software include employee costs and an appropriate 
portion of relevant overheads. 

Research expenditure and development expenditure that do not meet the criteria above are recognized as an 
expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in 
a subsequent period. 

Capitalized development costs are recorded as intangible assets and amortized from the point at which the 
asset is ready for use. 

Amortization 

Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful 
lives. The useful lives for computer software are as follows: 

Computer software 

  3 – 8 years 

Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of 
each reporting period. 

(iii)  Other intangible assets 

Other intangible assets that are acquired by the Group which have finite useful lives are stated at historical cost 
adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization 
and impairment losses. Indefeasible Rights of Use (“IRU”) are rights to use a portion of an asset’s capacity 
granted  for  a  fixed  period  of  time.  IRUs  are  recognized  as  intangible  asset  when  the  Group  has  specific 
indefeasible rights to use an identified portion of an underlying asset and the duration of the right is for the 
major part of the underlying asset's useful economic life. IRUs are amortized over the shorter of the underlying 
asset's useful economic life and the contract term. 

24 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
320

 F26

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(k) 

Intangible assets (continued) 

(iii)  Other intangible assets (continued) 

Amortization 

Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful 
lives. The useful lives for computer software are as follows: 

Transmission line software 
Central betting system operating right 
Customer base 
Brand name 
Indefeasible right of use 

5 – 10 years 
  7 – 10 years 
  2 – 15 years 
  9 – 10 years 
  15 years 

Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of 
each reporting period. 

Goodwill 

Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is 
tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might 
be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an 
entity include the carrying amount of goodwill relating to the entity sold. 

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to 
those cash-generating units or groups of cash-generating units that are expected to benefit from the business 
combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which 
goodwill is monitored for internal management purposes, being the operating segments. 

 (l) 

Investment properties 
Recognition and measurement 

Investment properties are properties held for rental yields and/or for capital appreciation (including property 
under construction for such purposes). Investment properties are stated at historical cost less depreciation and 
impairment losses. 

An  investment  property  is  derecognized  upon  disposal  or  when  the  investment  property  is  permanently 
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising 
on  derecognition  of  the  property  (calculated  as  the  difference  between  the  net  disposal  proceeds  and  the 
carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized. 
Depreciation 
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over 
their estimated useful lives. The estimated useful lives are as follows: 
Investment Property 
Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end 
of each reporting period. 

   25 - 45 years 

(m)  Inventories 

Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling 
price in the ordinary course of business, less the estimated costs necessary to make the sale. Cost of inventory 
is determined using the weighted average method and comprises all costs of purchase and other costs incurred 
in bringing the inventories to their present location and condition. Costs of purchased inventory are determined 
after deducting rebates and discounts. At 31 December 2020 and 2019, inventories mainly consisted of mobile 
phone and its accessories, tablet, sim-cards, and tower construction materials.  

(n) 

Impairment of assets 

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested 
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be 
impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the 
carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s 
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value 
less costs of disposal and its value in use. Fair value is the price that would be received to sell an asset or paid 
to transfer a liability in an orderly transaction between market participants at the measurement date.  

Value  in  use  is  the  present  value  of  the  future  cash  flows  expected  to  be  derived  from  an  asset  or  cash-
generating  unit.  For  the  purposes  of  assessing  impairment,  assets  are  grouped  at  the  lowest  levels  (cash-
generating units) for which there are separately identifiable cash inflows which are largely independent of the 
cash inflows from other assets or groups of assets. Non-financial assets other than goodwill that suffered an 
impairment are reviewed for possible reversal of the impairment at the end of each reporting period. 

(o)  Employee benefits 

(i) 

Short-term obligations 

Liabilities  for  salaries  including  non-monetary  benefits  that  are  expected  to  be  settled  wholly  within  
12 months after the end of the period in which the employees render the related service are recognized in 
respect of employees’ services up to the end of the reporting period and are measured at the amounts expected 
to be paid when the liabilities are settled. The liabilities are presented as employee benefit obligations in the 
statement of financial position. 

 (ii)  Termination benefits 

In accordance with the labor law in Turkey, the Company and its subsidiaries in Turkey are required to make 
lump-sum  payments  to  employees  who  have  completed  one  year  of  service  and  whose  employment  is 
terminated  without  cause  or  who  retire,  are  called  up  for  military  service  or  die.  Such  payments  
are  calculated  based  on  30  days'  pay  up  to  a  of  maximum  full  TL  7,117  as  at  31 December 2020  
(31 December 2019: TL 6,380), per year of employment at the rate of pay applicable at the date of retirement 
or termination. Termination benefits paid to key executive officers are presented as other expenses. Reserve 
for  employee  termination  benefits  is  computed  and  reflected  in  the  consolidated  financial  statements  on a 
current  basis.  Discount  rate  used  for  calculating  employee  termination  benefit  as  of  31  December  2020  is 
3.01% (31 December 2019: 3.60%). The reserve is calculated by estimating the present value of future probable 
obligation of the Company and its subsidiaries in Turkey arising from retirement of employees. Reserve for 
employee termination benefits is calculated annually by independent actuaries using the projected unit credit 
method. 

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322

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F29

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(o)  Employee benefits (continued) 

(iii)  Defined contribution plans 

For defined contribution plans, the  Group  pays contributions to  publicly  or privately  administered  pension 
insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations 
once the contributions have been paid. The contributions are recognized as employee benefit expense when 
they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in 
the future payments is available. 

(iv)  Share-based payments 

The Group provides a cash-settled share-based payment plan for selected employees in return for their services. 
For  cash-settled  share-based  payment  transactions,  the  Group  measures  services  received  and  the  liability 
incurred at the fair value of the liability. Liabilities for cash-settled share-based payment plan are recognized 
as employee benefit expense over the relevant service period. The fair value of the liability is re-measured at 
each reporting date and at the settlement date. Any changes in fair value are recognized in profit or loss for the 
period.  

(v)  Personnel bonus 

Provision for bonus is provided when the bonus is a legal obligation, or past practice would make the bonus a 
constructive obligation and the Group is able to make a reliable estimate of the obligation. 

(p)  Provisions 

A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation 
that can be estimated reliably,  and it is probable that  an outflow  of resources will  be required to settle the 
obligation.  
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement 
is  determined  by  considering  the  class  of  obligations  as  a  whole.  A  provision  is  recognized  even  if  the 
likelihood of an outflow with respect to any one item included in the same class of obligations may be small. 
Provisions are measured at the present value of management’s best estimate of the outflow required to settle 
the present obligation at the end of the reporting period. The discount rate used to determine the present value 
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to 
the liability. The increase in the provision due to the passage of time is recognized as interest expense.  
Onerous contracts 
Present obligation arising under an onerous contract is recognized and measured as a provision. An onerous 
contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting 
the obligations under the contract exceed the economic benefits expected to be received under it.  

Dismantling, removal and restoring sites obligation 

The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to 
restore sites on which the assets were located. The dismantling costs are calculated according to best estimate 
of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of 
the time value of money and the risks specific to the liability. 

(q)  Revenue 

Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation. 
The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for 
transferring promised goods or services to a customer. Revenue is recognized when control is transferred to 
the customer. 

Revenue from telecommunication services includes postpaid and prepaid revenue from voice, data, messaging 
and value-added services, interconnect revenue, monthly fixed fees, SIM card sales and roaming revenue. The 
Company transfers control of these services over time and, therefore, satisfies the performance obligations and 
recognizes revenue from telecommunication services over time.  

With respect to prepaid revenue, the Group generally collects cash in advance by selling prepaid top up to 
distributors. In such cases, the Group does not recognize revenue until subscribers use the telecommunication 
services.  

Services may be bundled with other products and services and these bundled elements involve consideration 
in the form of a fixed fee or a fixed fee coupled with a continuing payment stream. A good or service is distinct 
if both of the following criteria are met: 

  The good or service is capable of being distinct,   
  The promise to transfer the good or service is distinct within the context of the contract. 

The  arrangement  consideration  is  allocated  to  each  performance  obligation  identified  in  the  contract  on  a 
relative stand-alone selling price. If an element of a transaction is not a distinct, then it is accounted for as an 
integral part of the remaining elements of the transaction. 

Revenue from  device  sales  is recognized  when  control  of the  device has  transferred, being  the  time  when 
delivered to the end customer.  For device sales made to intermediaries, revenue is recognized at the time when 
control of the device has been transferred, being when the products are delivered to the intermediary and the 
intermediary has no general right to return the device to receive a refund. If control is not transferred, revenue 
is deferred until sale of the device to an end customer by the intermediary or expiry of any right of return. 

The Group, the distributors and dealers offer joint campaigns to the subscribers which may include the sale of 
device by the dealer and/or the distributor and the sale of communication service by the Group.  In  certain 
campaigns, dealers make the handset sale to the subscribers, the instalments of which will be collected by the 
Group based on the letters of undertaking signed by the subscribers. With the letter of undertaking, the dealer 
assigns its receivables from handset sales to the distributor and the distributor assigns its receivables to the 
Group. 

The Group pays the distributor the net present value of the instalments to be collected from the subscribers and 
recognizes  contracted  receivables  in  its  statement  of  financial  position.  The  undue  portion  of  assigned 
receivables  from  the  distributors  which  were  paid  upfront  by  the  Group  is  classified  as  “undue  assigned 
contracted receivables” in trade receivables (Note 19). When monthly installment is invoiced to the subscriber, 
related portion is presented as “receivables from subscribers”. The Group collects the contracted receivables 
in  installments  during  the  contract  period  and  does  not  recognize  any  revenue  for  the  handset  in  these 
transactions when the Group does not act as principal for the sale of handset.  

Starting from 2016 the Group and distributors started to offer the option to buy a device through consumer 
financing loan, which will be collected by Turkcell Finansman. The Group carries a risk of collection in these 
transactions. Turkcell Finansman collects the purchased credit from the subscriber during the contract period 
and does not record revenue related to the device when it does not act  as principal for the sale of device. 
Revenue from financial services comprise of interest income generated from consumer financing activities. 
Interest income is recognized as it accrues, using the effective interest method. 

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324

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F31

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(q)  Revenue (continued) 

(q)  Revenue (continued) 

Monthly fixed fees represent a fixed amount charged to postpaid subscribers on a monthly basis without regard 
to the level of usage. Fixed fees are recognized on a monthly basis when billed. Monthly fixed fees are included 
in telecommunication services revenues. 

Revenues from the betting business comprise of mainly the net takings earned to a maximum of 1.4% of gross 
takings as the head agent of fixed odds betting games and mobile agent revenues of 7.25% of mobile agency 
turnover  after  deducting  VAT  and  gaming  tax  as  the  head  agent.  Revenues  from  the  betting  business  are 
recognized at the time all services related to the games are fully rendered. Under the agreement signed with 
Spor Toto Teskilat Mudurlugu A.S. (“Spor Toto”), Inteltek Internet Teknoloji Yatirim ve Danismanlik A.S. 
(“Inteltek”) is obliged to undertake any excess payout, which is presented on a net basis.  

Azerinteltek QSC (“Azerinteltek”) received authorization from Azeridmanservis Limited Liability Company 
set under the Ministry of Youth and Sport of the Republic of Azerbaijan to organize, operate, manage and 
develop  the  fixed  odds  and  paramutual  sports  betting  business.  Since  Azerinteltek  acts  as  principal,  total 
consideration received from the player less payout (distribution to players) and amounts collected from players 
on behalf of Ministry of Sports is recognized at the time all services related to the games are fully rendered.  

Azerinteltek  has  been  authorized  for  Lottery  games  by  Azerlotereya.  Azerinteltek  has  been  generating 
commission revenue over Lottery games turnover through its own agencies by applying 15% commission rate 
according to the agreement between Azerinteltek and Azerlotereya. Commission revenues are recognized at 
the time all services related to the games are fully rendered. 

Call center revenues are recognized at the time services are rendered during the contractual period. 

When the Group sells goods or services as a principal, revenue and operating costs are recorded on a gross 
basis. When the Group sells goods or services as an agent, revenue and operating costs are recorded on a net 
basis, representing the net margin earned. Whether the Group is considered to be acting as principal or agent 
in the transaction depends on management’s analysis described below and such judgments impact the amount 
of reported revenue and operating costs but do not impact reported assets, liabilities or cash flows: 

Indicators that an entity is a principal: 

  The entity is primarily responsible for fulfilling the promise to provide the specified good or service, 
  The entity has inventory risk before the specified good or service has been transferred to a customer 

or after transfer of control to the customer, 

  The entity has discretion in establishing the price for the specified good or service. 

The  Company  and  the  Ministry  of  Transport  and  Infrastructure  of  Turkey,  Directorate  General  of 
Communications  mutually  agreed  to  extend  the  contract,  to  establish  and  operate  mobile  communication 
infrastructure and operation in uncovered areas, until 30 June 2021 and to add mobile broadband services to 
the existing infrastructure providing GSM services under Universal Service Law and to operate the new and 
existing  networks  together.  As  of  31  December  2020,  the  Company  has  recognized  TL  223,965  
(31 December 2019: TL 191,235) revenue from its operations related to this contract. Since the Company acts 
as principal, revenue and operating costs are reported on a gross basis in the consolidated financial statements. 

The revenue recognition policy for other revenues is to recognize revenue as services are provided. 

Contract costs eligible for capitalization as incremental costs of obtaining a contract comprise commission on 
sale  relating  to  prepaid  and  postpaid  contracts  with  acquired  or  retained  subscribers.  Contract  costs  are 
capitalized  in  the  month  of  service  activation  if  the  Group  expects  to  recover  those  costs.  Contract  costs 
comprise sales commissions to dealers and to own salesforce which can be directly attributed to an acquired 
or retained contract. Contract costs are classified as intangible assets in the consolidated financial statements. 
The  asset  is  amortized  on  a  straight-line  basis  over  the  customer  lifetime,  consistent  with  the  pattern  of 
recognition of the associated revenue. 

(r) 

Income taxes  
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based 
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities 
attributable to temporary differences and to unused tax losses. 

Income tax expense is recognized in the statement of profit or loss, except to the extent that it relates to items 
recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other 
comprehensive income or directly in equity, respectively. 

The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the end 
of the reporting period in the countries where the Company’s subsidiaries and associates operate and generate 
taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in 
which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate based 
on amounts expected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability 
method,  on  temporary  differences  arising  between the  tax  bases  of  assets  and  liabilities  and their  carrying 
amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they 
arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from 
initial recognition of an asset or liability in a transaction other than a business combination that at the time of 
the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using 
tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are 
expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is 
settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available 
to utilize those temporary differences and tax losses.  

Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount 
and tax bases of investments in foreign operations where the Company is able to control the timing of the 
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable 
future.  

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets 
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and 
tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on 
a net basis, or to realize the asset and settle the liability simultaneously. 

Companies within the Group may be entitled to claim special tax deductions for investments in qualifying 
assets or in relation to qualifying expenditure (e.g., the Research and Development Tax Incentive regime in 
Turkey or other investment allowances). The Group accounts for such allowances as tax credits, which means 
that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognized for 
unclaimed tax credits that are carried forward as deferred tax assets. 

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326

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F33

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(s)  Earnings per share 

(v)  Equity 

The Group does not have any potential ordinary shares in issue, therefore basic and diluted earnings per share 
(“EPS”) are equal. Since basic and diluted EPS are equal, the Group presents both basic and diluted EPS on 
one line described as “Basic and diluted EPS”.  

Basic EPS is calculated by dividing the profit attributable to ordinary shareholders of the Company by the 
weighted-average number of ordinary shares outstanding during the financial year, excluding treasury shares. 
In Turkey, entities can increase their share capital by distributing “Bonus share” to shareholders from retained 
earnings.  In  computing  earnings  per  share,  such  “Bonus  share”  distributions  are  treated  as  issued  shares. 
Accordingly, the retrospective effect for such share distributions is taken into consideration when determining 
the weighted-average number of shares outstanding. 

(t)  Government grants 

Grants from the government are recognized at their fair value where there is a reasonable assurance that the 
grant will be received, and the Group will comply with all attached conditions. 

Government grants relating to costs are deferred and recognized in profit or loss over the period necessary to 
match them with the costs that they are intended to compensate. Government grants relating to property, plant 
and equipment are included in non-current liabilities as deferred government grants, and are credited to profit 
or loss on a straight-line basis over the expected useful lives of the related assets. 

(u)  Non-current assets held for sale and discontinued operations  

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through 
a  sale  transaction  rather  than  through  continuing  use,  and  a  sale  is  considered  highly  probable.  They  are 
measured at the lower of their carrying amount and fair value less costs of disposal. 

  An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs 
of disposal. A gain is recognized for any subsequent increases in fair value less costs of disposal of an asset, 
but not  in  excess  of  any cumulative  impairment  loss  previously recognized.  A gain  or  loss  not  previously 
recognized by the date of the sale of the non-current asset is recognized at the date of derecognition. 

An associate must meet the conditions to be classified as held for sale. It is first measured in accordance with 
applicable standards. Such standard is IAS 28, whereby the share of profits and remeasurement of carrying 
amounts are done in accordance with normal associate rules up to the point of classification as held for sale. 

The associate is then measured in accordance with IFRS 5. It is measured at the lower of carrying amount and 
fair value less costs of disposal. Equity accounting is ceased from the date the held for sale criteria are met. 

  Non-current assets classified as held for sale are presented separately from the other assets in the statement of 

financial position.  

  A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale 
and that represents a separate major line of business or geographical area of operations, is part of a single 
coordinated  plan  to  dispose  of  such  a  line  of  business  or  area  of  operations,  or  is  a  subsidiary  acquired 
exclusively  with  a  view  to  resale.  The  results  of  discontinued  operations  are  presented  separately  in  the 
statement of profit or loss. 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares 
are shown in equity as a deduction, net of tax, from the proceeds. 

Where any Group company purchases the Company’s equity instruments, for example as the result of a 
share buy-back plan, the consideration paid, including any directly attributable incremental costs (net of 
income taxes) is deducted from equity attributable to the owners of the Company as treasury shares until 
the  shares  are  cancelled  or  reissued.  Where  such  ordinary  shares  are  subsequently  reissued,  any 
consideration  received,  net  of  any  directly  attributable  incremental  transaction  costs  and  the  related 
income tax effects, is included in equity attributable to the owners of the Company. 

(w)  Dividends 

Provision  is  made  for  any  dividend  declared,  being  appropriately  authorized  and  no  longer  at  the 
discretion of the Company, on or before the end of the reporting period but not distributed at the end of 
the reporting period. 

(x)  Subsequent events 

Events after the reporting date; includes all events between the reporting date and the date on which the 
financial statements are authorized for issue, even if any announcement of profit or other selected financial 
information has been made publicly disclosed.  

In case of events requiring correction after the reporting date, the Group corrects this new situation 
accordingly. Events that are not required to be adjusted subsequent to the reporting date are disclosed in 
the notes to the consolidated financial statements. 

(y)  Leases 

At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or 
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of 
time in exchange for consideration. To assess whether a contract conveys the right to control the use of 
an identified asset, The Group assesses whether:  

-  The contract involved the use of an identified asset - this may be specified explicitly or implicitly; 
-  The asset should be physically distinct or represent substantially all of the capacity of a physically 

distinct asset. If the supplier has a substantive substitution right, the asset is not identified; 

-  The Group has the right to obtain substantially all of the economic benefits from the use of an asset 

throughout the period of use and  

-  The  Group  has  the  right  to  direct  use  of  the  asset.  The  Group  has  the  right  when  it  has  the  
decision-making rights that are most relevant to changing the how and for what purpose the asset 
is used. If these decision are predetermined; 

-  The Group has the right to operate the asset or,  
-  The Group designed the asset in a way that predetermines how and for what purpose it is 

used.  

At inception or on reassessment of a contract that contains a lease component, the Group allocates the 
consideration in the contract to each lease component on the basis of their relative stand-alone prices.  

32 

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328

 F34

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F35

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

2.  Basis of preparation and summary of significant accounting policies (continued) 

2.  Basis of preparation and summary of significant accounting policies (continued) 

(y)  Leases (continued) 

Right of use asset  

(y)  Leases (continued) 

Lease Liability (continued) 

The Group recognizes a right-of use asset and a lease liability at the lease commencement date.  

The right of use asset is initially recognized at cost comprising of: 

- 
- 
- 
- 

Amount of the initial measurement of the lease liability, 
Any lease payments made at or before the commencement date, less any lease incentives received, 
Any initial direct costs incurred by the Group and 
An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, 
restoring the site on which it is located or restoring the underlying asset to the condition required 
by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The 
lessee incurs the obligation for those costs either at the commencement date or as a consequence of 
having used the underlying asset during a particular period. 

The right-of-use asset is subsequently depreciated using the straight-line method from the 
commencement date to the earlier of the end date of the useful life of the right-of-use asset or the end 
date of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis 
as those property and equipment. In addition, the right-of-use asset is periodically reduced by 
impairment losses, if any, and adjusted for certain remeasurements of the lease liability (Note 29).  

Lease Liability  

The lease liability is initially measured at the present value of the lease payments that are not paid at the 
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily 
determined, the Group’s incremental borrowing rate. The Group uses its incremental borrowing rate as 
the discount rate.  

Lease payments included in the measurement of the lease liability comprise the following:  

- 
- 

- 
- 

Fixed payments, including in-substance fixed payments, 
Variable lease payments that depend on an index or a rate, initially measured using the index or 
rate as the commencement date, 
Amounts expected to be payable under a residual value guarantee and  
The exercise price under a purchase option that the Group is reasonably certain to exercise, lease 
payments in an optional renewable period if the Group is reasonably certain to exercise an extension 
option, and penalties for early termination of a lease if the Group is reasonably certain to terminate 
early.  

After  initial  recognition,  the  lease  liability  is  measured  (a)  increasing  the  carrying  amount  to  reflect 
interest on lease liability; (b) reducing the carrying amount to reflect the lease payments made, and (c) 
remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised 
in-substance fixed lease payments. 

Where,  (a)  there  is  a  change  in  the  lease  term  as  a  result  of  reassessment  of  certainty  to  exercise  an 
extension option, or not to exercise a termination option as discussed above; or (b) there is a change in 
the  assessment  of  an  option  to  purchase  the  underlying  asset,  assessed  considering  the  events  and 
circumstances in the context of a purchase option, the Group remeasures the lease liabilities to reflect 
changes to lease payments by discounting the revised lease payments using a revised discount rate. The 
Group determines the revised discount rate as the interest rate implicit in the lease for the remainder of 
the lease term, or the its incremental borrowing rate at the date of reassessment, if the interest rate implicit 
in the lease cannot be readily determined. 

Where, (a) there is a change in the amounts expected to be payable under a residual value guarantee; or 
(b) there is a change in the future lease payments resulting from a change in an index or a rate used to 
determine those payments, including change to reflect changes in market rental rates following a market 
rent review, the Group remeasures the lease liabilities by discounting the revised lease payments using an 
unchanged discount rate, unless the change in lease payments results from a change in floating interest 
rates. In such case, the Group uses the revised discount rate that reflects changes in the interest rate. 

The Group recognizes the amount of the remeasurement of lease liability as an adjustment to the right of 
use asset. Where the carrying amount of the right of use asset is reduced zero and there is further reduction 
in  the  measurement  of  the  lease  liability,  the  Group  recognizes  any  remaining  amount  of  the 
remeasurement in profit or loss. 

The Group accounts for a lease modification as a separate lease if both: 

The  modification  increases  the  scope  of  the  lease  by  adding  the  right  to  use  one  or  more 

- 
underlying assets and 
- 
The consideration for the lease increases by an amount commensurate with the stand-alone price 
for  the  increase  in  scope  and  any  appropriate  adjustments  to  that  stand-alone  price  to  reflect  the 
circumstances of the particular contract. 

The Group as a Lessor  

When the Group acts an intermediate lessor, it accounts for its interests in the head lease and the sub-lease 
separately. It assesses the lease classification of a sub-lease with reference to the right-of-use-asset arising 
from the head lease, not with reference to the underlying asset.  

If an arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the 
consideration in the contract.  

(z)  New standards and interpretations  

i) 

Standards, amendments and interpretations applicable as at 31 December 2020 

- 

- 

Amendments to IAS 1 and IAS 8 on the definition of material; effective from Annual periods 
beginning  on  or  after  1  January  2020.  These  amendments  to  IAS  1,  “Presentation  of  financial 
statements”, and IAS 8, “Accounting policies, changes in accounting estimates and errors”, and 
consequential amendments to other IFRSs: 
 

Use a consistent definition of materiality throughout IFRSs and the Conceptual Framework 
for Financial Reporting, 
Clarify the explanation of the definition of material, 
Incorporate some of the guidance in IAS 1 about immaterial information. 

 
 

Amendments to IFRS 3 - definition of a business; effective from Annual periods beginning on 
or after 1 January 2020. This amendment revises the definition of a business. According to feedback 
received by the IASB, application of the current guidance is commonly thought to be too complex, 
and it results in too many transactions qualifying as business combinations. 

34 

35 

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330

 F36

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F37

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Basis of preparation and summary of significant accounting policies (continued) 

2. 

(z)  New standards and interpretations (continued) 

(z)  New standards and interpretations (continued) 

i) 

Standards, amendments and interpretations applicable as at 31 December 2020 (continued) 

- 

- 

Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest rate benchmark reform; effective from Annual 
periods beginning on or after 1 January 2020. These amendments provide certain reliefs in connection with 
interest rate benchmark reform. The reliefs relate to hedge accounting and have the effect that IBOR reform 
should  not  generally  cause  hedge  accounting  to  terminate.  However,  any  hedge  ineffectiveness  should 
continue to be recorded in the income statement. Given the pervasive nature of hedges involving IBOR-
based contracts, the reliefs will affect companies in all industries. 

Amendment to IFRS 16, “Leases” - Covid-19 related rent concessions; effective from Annual periods 
beginning on or after 1 June 2020.  As a result of the coronavirus (COVID-19) pandemic, rent concessions 
have been granted to lessees. Such concessions might take a variety of forms, including payment holidays 
and  deferral  of  lease  payments.  On  28  May  2020,  the  IASB  published  an  amendment  to  IFRS  16  that 
provides an optional practical expedient for  lessees  from  assessing whether  a  rent  concession related to 
COVID-19 is a lease modification. Lessees can elect to account for such rent concessions in the same way 
as they would if they were not lease modifications. In many cases, this will result in accounting for the 
concession  as  variable  lease  payments  in  the  period(s)  in  which  the  event  or  condition that  triggers  the 
reduced payment occurs. 

ii) 

Standards, amendments and interpretations that are issued but not effective as at 31 December 2020 

Standards,  amendments  and  interpretations  that  are  issued  but  not  effective  as  at  31  December  2020 

ii) 
(continued) 

- 

- 

Amendments  to  IFRS  9, IAS  39,  IFRS  7,  IFRS  4  and  IFRS  16 Interest  Rate Benchmark  Reform 
Phase 2; effective from Annual periods beginning on or after 1 January 2021. The Phase 2 amendments 
address  issues  that  arise  from  the  implementation  of  the  reforms,  including  the  replacement  of  one 
benchmark with an alternative one. 
The Group has elected to early adopt the interest rate benchmark reform - Phase 2 as issued in August 2020 
which will be effective as of 1 January 2021 and the new rates will be used as of 1 January 2022. 

Amendments to IFRS 17 and IFRS 4, “Insurance contracts”, deferral of IFRS 9; effective from annual 
periods beginning on or after 1 January 2021. These amendments defer the date of application of IFRS 17 
by two years to 1 January 2023 and change the fixed date of the temporary exemption  in  IFRS  4 from 
applying IFRS 9, Financial Instrument until 1 January 2023. 

The  Group  does  not  expect  material  impact  of  new  standards  and  interpretations  on  the  Group’s  accounting 
policies. 

- 

- 

- 

IFRS 17, “Insurance contracts”; effective from annual periods beginning on or after 1 January 2023. This 
standard replaces IFRS 4, which currently permits a wide variety of practices in accounting for insurance 
contracts. IFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts 
and investment contracts with discretionary participation features. 

Amendments to IAS 1, “Presentation of financial statements” on classification of liabilities; effective 
from 1 January 2022. These narrow-scope amendments to IAS 1, ‘Presentation of financial statements’, 
clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the 
end of the reporting period. Classification is unaffected by the expectations of the entity or events after the 
reporting date (for example, the receipt of a waiver or a breach of covenant). The amendment also clarifies 
what IAS 1 means when it refers to the ‘settlement’ of a liability. 

A number of narrow-scope amendments to IFRS 3, IAS 16, IAS 37 and some annual improvements 
on IFRS 1, IFRS 9, IAS 41 and IFRS 16; effective from Annual periods beginning on or after 1 January 
2022. 
 

Amendments to IFRS 3, ‘Business combinations’ update a reference in IFRS 3 to the Conceptual 
Framework  for  Financial  Reporting  without  changing  the  accounting  requirements  for  business 
combinations. 
Amendments to IAS 16, ‘Property, plant and equipment’ prohibit a company from deducting from 
the cost of property, plant and equipment amounts received from selling items produced while the 
company is preparing the asset for its intended use. Instead, a company will recognize such sales 
proceeds and related cost in profit or loss. 
Amendments  to  IAS  37,  ‘Provisions,  contingent  liabilities  and  contingent  assets’  specify  which 
costs a company includes when assessing whether a contract will be loss-making. 
Annual  improvements  make  minor  amendments  to  IFRS  1,  ‘First-time  Adoption  of  IFRS’,  
IFRS 9, ‘Financial instruments’, IAS 41, ‘Agriculture’ and the Illustrative Examples accompanying 
IFRS 16, ‘Leases’. 

 

 

36 

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332

333

 F38

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F39

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Financial risk management 

3. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Financial risk management (continued) 

3. 

This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future 
financial performance. Current year profit and loss information has been included where relevant to add further 
context. 

The Group’s risk management policies are set to determine and analyze the risks faced, to establish the appropriate 
risk limits and to observe the commitment to those limits. These policies are constantly reviewed to make sure 
they reflect the Group’s operations and the changes in market conditions. 

Market risk 

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices 
affect  the  Group’s  income  or  the  value  of  its  holdings  of  financial  instruments.  The  objective  of  market  risk 
management is to manage and control market risk exposures within acceptable parameters, while optimizing the 
return on risk. The Group uses derivatives in order to manage market risks. All such transactions are carried at within 
the guidelines set by the Group Treasury. 

Credit risk 

(i) 

Foreign exchange risk 

At the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit 
risk is represented by the carrying amount of cash and cash equivalents, financial asset at fair value through other 
comprehensive income, financial asset at amortize cost, derivative financial instruments, contract assets, trade 
receivables, receivables from financial services, due from related parties and other current and non-current assets 
(Note 36). 

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The 
Group may require collateral in respect of financial assets. Also, the Group may demand letters of guarantee from 
third  parties  related  to  certain  projects  or  contracts.  The  Group  may  also  demand  certain  pledges  from 
counterparties if necessary, in return for the credit support it gives related to certain financings (Note 19). 

In monitoring customer credit risk, customers are grouped according to whether they are subscribers, financial 
services  customers,  other  corporate  customers  and  aging  profile,  maturity  and  existence  of  previous  financial 
difficulties.  Trade  receivables  and  contract  assets  are  mainly  related  to  the  Group’s  subscribers.  The  Group’s 
exposure to credit risk on trade receivables and contract assets is influenced mainly by the individual payment 
characteristics  of postpaid subscribers.  The  Group  establishes  an  allowance for impairment  that  represents its 
estimate  of  incurred  losses  in  respect  of  trade  receivables  and  contract  assets.  This  allowance  comprises  the 
general provision which is determined based on a loss event.  

Investments are preferred to be in liquid securities. The counterparty limits are set monthly depending on their 
ratings from the most credible rating agencies and the amount of their paid-in capital and/or shareholders equity. 
Policies  are  in  place  to  review  the  paid-in  capital  and  rating  of  counterparties  periodically  to  ensure  credit 
worthiness. 

The Group signs local and international derivate agreements in order to be able to execute financial derivative 
transactions with financial institutions that are believed to have sufficient credit ratings.  

The Group’s policy is to provide financial guarantees only to subsidiaries and distributors. At 31 December 2020, 
guarantees of TL 2,171,281 were outstanding (31 December 2019: TL 3,323,318). 

Liquidity risk  

the  end  of 

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an 
adequate amount of committed credit facilities to meet obligations when due and to close out market positions. 
At 
the  Group  held  demand  deposits  of  TL  975,753  
(31 December 2019: TL 632,022) that are expected to readily generate cash inflows for managing liquidity risk. 
Due to the dynamic nature of the underlying businesses, the Group Treasury maintains flexibility in funding by 
maintaining availability under committed credit lines. 

reporting  period 

the 

Management monitors rolling forecasts of the Group’s liquidity reserve (Note 36) and cash and cash equivalents 
(Note 24) on the basis of expected cash flows. In addition, the Group’s liquidity management policy involves 
projecting  cash  flows  in  major  currencies  and  considering  the  level  of  liquid  assets  necessary  to  meet  these, 
monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining 
debt financing plans. 

The  Group  operates  internationally  and  is  exposed  to  foreign  exchange  risk  arising  from  foreign  currency 
transactions, primarily with respect to the USD, EUR and RMB. Foreign exchange risk arises from recognized assets 
and liabilities denominated in a currency that is not the functional currency of the relevant Group entity. The Group 
holds a significant portion of its cash and cash equivalent in foreign currencies in order to manage foreign exchange 
risk. In addition, derivative financial instruments are used to manage exposure to fluctuations in foreign exchange 
rates and since 1 July 2018 the Company applies hedge accounting. Details of the Company’s foreign exchange risk 
is disclosed in Note 36. 

(ii) 

Interest rate risk 

The Group’s exposure to interest  rate risk is related to its financial assets and liabilities. The Group manage its 
financial  liabilities  by  providing  an  appropriate  distribution  between  fixed  and  floating  rate  loans.  Floating  rate 
exposures  can  be  changed  to  fixed  rate  exposures  based  on  short  term  and  long  term  market  expectations  via 
financial derivatives. The use of financial derivatives is governed by the Group Treasury’s policies approved by the 
Audit  Committee,  which  provide  written  principles  on  the  use  of  derivatives.  The  Group’s  borrowings  and 
receivables are carried at amortized cost. The borrowings are periodically contractually repriced (Note 36) and are 
also exposed to the risk of future changes in market interest rates. 

Effect of IBOR reform 

Following the financial crisis, the reform and replacement of benchmark interest rates such as USD LIBOR and 
other interbank offered rates (‘IBORs’) has become a priority for global regulators. There are ongoing studies for 
these  changes.  The  Group’s  risk  exposure  that  is  directly  affected  by  the  interest  rate  benchmark  reform  is  its  
USD 367,787 floating-rate debt. The Group has hedged this debt with participating cross currency, cross currency 
and interest swaps, and it has designated at participating cross currency swap in a cash flow hedge of the variability 
in cash flows of the debt, due to changes in 6-month USD LIBOR that is the current benchmark interest rate after 
the publication of Phase-2 in August 2020. The nominal amount of these derivative instruments is USD 431,359 
and the nominal amount of the hedged part of these instruments is USD 276,069. 

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The  Group  treasury  department  oversees  the  Group’s  USD  LIBOR  transition  plan.  This  transition  project  will 
include changes to systems, processes, risk and valuation models, as well as managing related tax and accounting 
implications. The Group currently anticipates that the areas of greatest change will be amendments to the contractual 
terms of the USD LIBOR-referenced floating-rate debt and the participating cross currency swap and updating hedge 
designations. 

Effect of IBOR reform – significant assumptions 

In calculating the change in fair value attributable to the hedged risk of the floating-rate debt, the Group has made 
the following assumptions that reflect its current expectations: 
- The floating-rate debt will move to an alternative benchmark rate during 2022, and the spread will be similar to 
the spread included in the participating cross currency swap used as the hedging instrument; 
- No other changes to the terms of the floating-rate debt are anticipated; and 
- The Group has incorporated the uncertainty over when the floating-rate debt will move to an alternative benchmark 
rate, the resulting adjustment to the spread, and the other aspects of the reform that have not yet been finalized by 
adding an additional spread to the discount rate used in the calculation. 

38 

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TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand 
currency units and are expressed in Turkish Liras unless otherwise stated.)  
Segment information 

4. 

The Group has two reportable segments in accordance with its integrated communication and technology services 
strategy - Turkcell Turkey and Turkcell International. While some of these strategic segments offer the same types 
of services, they are managed separately because they operate in different geographical locations and are affected 
by different economic conditions. 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating 
decision maker. The chief operating decision maker function is carried out by the Board of Directors, however 
Board of Directors may transfer the authorities, other than recognized by the law, to the CEO and other directors. 

Turkcell Turkey reportable segment includes the operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri 
A.S. (“Turkcell Superonline”), Turkcell Satis ve Dijital Is Servisleri Hizmetleri A.S. (“Turkcell Satis”), group call 
center  operations  of  Global  Bilgi  Pazarlama  Danismanlik  ve  Cagri  Servisi  Hizmetleri  A.S.  (“Turkcell  Global 
Bilgi”), Turktell Bilisim Servisleri A.S. (“Turktell”), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell 
Teknoloji”),  Kule  Hizmet  ve  Isletmecilik  A.S.  (“Global  Tower”),  Rehberlik  Hizmetleri  Servisi  A.S. 
(“Rehberlik”),  Turkcell  Gayrimenkul  Hizmetleri  A.S.  (“Turkcell  Gayrimenkul”),  Lifecell  Dijital  Servisler  ve 
Cozumler A.S. (“Lifecell Dijital Servisler”), Lifecell Bulut Cozumleri A.S. (“Lifecell Bulut”), Lifecell TV Yayin 
ve  Icerik  Hizmetleri  A.S.  (“Lifecell  TV”),  Lifecell  Muzik  Yayin  ve  Iletim  A.S.  (“Lifecell  Muzik”)  and  BiP 
Iletisim  Teknolojileri  ve  Dijital  Servisler  Anonim  Sirketi  (“BiP  Iletisim”).  Turkcell  International  reportable 
segment includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi (“Kibris Telekom”), East 
Asian  Consortium  B.V.  (“Eastasia”),  Lifecell  LLC  (“lifecell”),  Lifecell  Ventures  Cooperatief  U.A  (“Lifecell 
Ventures”), Beltel Telekomunikasyon Hizmetleri A.S. (“Beltel”), CJSC Belarusian Telecommunications Network 
(“Belarusian  Telecom”),  LLC  UkrTower  (“UkrTower”),  LLC  Global  Bilgi  (“Global  LLC”),  Turkcell  Europe 
GmbH (“Turkcell Europe”), Lifetech LLC (“Lifetech”),  Beltower LLC  (“Beltower”),  Lifecell Digital Limited 
(“Lifecell  Digital”),  Yaani  Digital  BV  (“Yaani”)  and  BiP  Digital  Communication  Technologies  B.V  (“BiP 
Digital”). The operations of these legal entities aggregated into one reportable segment as the nature of services 
are similar and most of them share similar economic characteristics. Other reportable segment mainly comprises 
the non-group call center operations of Turkcell Global Bilgi and the operations of Turkcell Finansman, Turkcell 
Odeme Hizmetleri A.S. (“Turkcell Odeme”), Turkcell Enerji Cozumleri ve Elektrik Satis Ticaret A.S (“Turkcell 
Enerji”), Paycell LLC and Turkcell Sigorta Aracilik Hizmetleri A.S (“Turkcell Sigorta”). 

The  Board  primarily  uses  adjusted  EBITDA  to  assess  the  performance  of  the  operating  segments.  Adjusted 
EBITDA  definition  includes  revenue,  cost  of  revenue  excluding  depreciation  and  amortization,  selling  and 
marketing expenses and administrative expenses.  

Adjusted EBITDA is not a financial measure defined by IFRS as a measurement of financial performance and 
may not be comparable to other similarly titled indicators used by other companies. Reconciliation of Adjusted 
EBITDA to the consolidated profit for the year is included in the accompanying notes.  

According  to  the  resolution  of  the  General  Assembly  dated  6  July  2020,  the  trade  name  of  Turkcell  Ozel 
Finansman A.S. (“TOFAS”) was changed to Lifecell  Iletisim Teknolojileri ve  Dijital Servisler A.S. (“Lifecell 
Iletisim”) and its business activity is determined and announced as providing digital services and products as of 
21 July 2020. The trade name of Lifecell Iletisim was changed to BiP Iletisim on 14 December 2020. BiP Iletisim 
has started its operations relating to providing digital services and products as of October 2020, and its operations 
are reported in Turkcell Turkey reportable segment. 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
336

 F42

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Segment information (continued) 

4. 

Profit for the period  

Add(Less): 

(Profit)/loss from discontinued 
operations 

Profit from continuing operations  
Income tax expense 
Finance income 
Finance costs 
Other income 
Other expenses 
Depreciation and amortization 
Share of loss of equity accounted 
investees 
Consolidated adjusted EBITDA 

Geographical information 

2020 

2019 

 2018 

4,239,620 

3,276,690 

2,177,335 

- 

(772,436) 

- 

4,239,620 
387,193 
(2,119,483) 
3,251,164 
(96,585) 
619,835 
5,974,779 

13,775 
12,270,298 

2,504,254 
785,630 
(297,450) 
2,025,118 
(140,705) 
487,295 
5,046,565 

15,712 
10,426,419 

2,177,335 
495,481 
(1,677,114) 
3,364,072 
(241,435) 
381,582 
4,287,974 

87 
8,787,982 

In  presenting  the  information  based  on  geographical  segments,  segment  revenue  is  based  on  the 
geographical  location  of  operations  and  segment  assets  are  based  on  the  geographical  location  of  the 
assets. 

Revenues 
Turkey 
Ukraine 
Belarus 
Turkish Republic of Northern Cyprus 
Netherlands 
Germany 
Azerbaijan 

Non-current assets 
Turkey 
Ukraine 
Belarus 
Turkish Republic of Northern Cyprus 
Unallocated non-current assets  

2020 

2019 

2018 

26,648,183 
1,800,983 
395,363 
229,652 
28,863 
694 
- 
29,103,738 

23,229,046 
1,322,116 
366,314 
209,109 
8,396 
2,154 
- 
25,137,135 

19,636,682 
923,181 
293,181 
169,014 
366 
1,580 
268,471 
21,292,475 

31 December 

 2020   

26,165,209 
3,390,246 
264,864 
244,710 
849,992 
30,915,021 

31 December 
2019 
22,737,468 
3,030,095 
219,281 
198,732 
197,255 
26,382,831 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         
338

 F44

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F45

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Revenue (continued) 

5. 

Telecommunication services 
At a point in time 
Over time 
Equipment revenues 
At a point in time 
Over time 
Revenue from financial services 
At a point in time 
Over time 
Call center revenues 
At a point in time 
Over time 
All other 
At a point in time 
Over time 
Total 
At a point in time 
Over time 

Turkcell 
Turkey 
21,676,330     
254,619     
21,421,711     
3,194,083     
3,105,851     
88,232     

- 
- 
- 

25,397     
               -      
25,397     
264,430     
48,626     
215,804     
25,160,240     
3,409,096     
21,751,144     

2020 

Turkcell 
International 

  Other 

      2,299,682     
          14,821     
     2,284,861     
        122,901     
        122,901     
                -      
                 -      
                -      
                -      
          34,566     
                -      
          34,566     
          85,261     
           9,132     
          76,129     
      2,542,410     
        146,854     
     2,395,556     

             -      
            -      
            -      
             -      
            -      
            -      

    845,189   
    245,223   
    599,966   
    415,366   

            -      

    415,366   
    813,071   

            -      

    813,071   
 2,073,626   
    245,223   
 1,828,403   

Intersegment 
eliminations 
 (58,507) 
-  
 (58,507) 
               -      
              -      
              -      
 (14,202) 
 (14,202) 
-  
 (43,358) 
-  
 (43,358) 
 (556,471) 
              -      
 (556,471) 
 (672,538) 
 (14,202) 
 (658,336) 

Consolidated 

  23,917,505   
      269,440   
 23,648,065   
    3,316,984   
   3,228,752   
        88,232   
       830,987   
      231,021   
      599,966   
       431,971   

               -     
      431,971   
       606,291   
        57,758   
      548,533   
  29,103,738   
   3,786,971   
 25,316,767   

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Revenue (continued) 

5. 

2019 

Turkcell 
International 

  Other 

Intersegment 
eliminations 

Consolidated 

Telecommunication services 
At a point in time 
Over time 
Equipment revenues 
At a point in time 
Over time 
Revenue from financial services 
At a point in time 
Over time 
Call center revenues 
At a point in time 
Over time 
Commission fees on betting business 
At a point in time 
Over time 
All other 
At a point in time 
Over time 
Total 
At a point in time 
Over time 

Turkcell 
Turkey 
19,157,657     
     198,734     
18,958,923     
  2,130,135     
  2,050,055     
       80,080     

- 
- 
- 

   1,780,793     
       10,555     
   1,770,238     
      115,905     
     115,905     
              -      

- 
- 
- 

       21,851     
              -      
       21,851     

        17,008     
              -      
       17,008     

- 
- 
- 

- 
- 
- 

     177,513     
       37,726     
     139,787     
21,487,156     
  2,286,515     
19,200,641     

        89,083     
       19,300     
       69,783     
   2,002,789     
     145,760     
1,857,029     

- 
- 
- 
- 
- 
- 
  1,141,712   
    222,930   
    918,782   
    308,126   

             -      

    308,126   
     132,300   

             -      

    132,300   
    635,841   
        2,306   
    633,535   
 2,217,979   
    225,236   
 1,992,743   

(60,147)   
               -      
(60,147)     

- 
- 
- 
(839)     
(839)     
               -      
(34,542)   
               -      
(34,542)     

- 
- 
- 

(475,261)     
(657)     
(474,604)     
(570,789)     
(1,496)     
(569,293)     

   20,878,303    
       209,289    
  20,669,014    
     2,246,040    
    2,165,960    
         80,080    
     1,140,873    
       222,091    
       918,782    
        312,443    
                -      
       312,443    
        132,300    
                -      
       132,300    
        427,176    
         58,675    
       368,501    
   25,137,135    
    2,656,015    
  22,481,120    

6.  Other income and expense 

Recognized in the statement of profit or loss: 

Gain on sale of fixed assets  
Gain on modification of lease contract 
Non-interest income from banks 
Rent income  
Gain on sale of investments 
Other 
Other income 

Litigation expenses 
Donation expenses 
Supplementary contributions to retailers 
Subscriber returns 
Restructuring cost 
Other 
Other expense 

2020 
23,950 
13,840 
12,245 
8,839 
                           -  
37,711 
96,585 

(387,352) 
             (60,778) 
              (46,804) 
(22,722) 
               (13,051)  
(89,128) 
(619,835) 

2019 
47,169 
1,484 
2,477 
6,522 
                          -  
83,053 
140,705 

(303,879) 
                         -  
                      -  
- 
           (91,710) 
           (91,706) 
        (487,295) 

2018 
43,727 
                          -  
5,996 
4,637 
110,308 
76,767 
241,435 

 (87,099) 
         (176,321) 
                       -  
- 
             (9,840) 
         (108,322) 
         (381,582) 

44 

45 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
340

 F46

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F47

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Employee benefit expenses 

7. 

Wages and salaries (*) 
Employee termination benefits (**) 
Defined contribution plans 

2020 
2,820,500   
38,879 
14,677 
2,874,056 

2019 
2,434,790 
31,799 
12,785 
2,479,374 

2018 
1,968,882 
29,140 
9,361 
2,007,383 

(*) Wages and salaries include compulsory social security contributions, bonuses and share based payments. 

(**) Remeasurements of employee termination benefits for the years ended 31 December 2020, 2019 and 2018 amounting to  
TL 37,230, TL 36,385 and TL (12,699) respectively are reflected in other comprehensive income. 

Employee benefit expenses are recognized in cost of revenue, selling and marketing expenses and administrative expenses. 

8. 

Finance income and costs 

Recognized in the statement of profit or loss: 

Cash flow hedges - reclassified to profit or loss 
Net fair value gains and interest on derivative 
financial instruments 
Interest income 
Other  
Finance income 

Net foreign exchange losses 
Net interest expenses for financial assets and 
liabilities measured at amortized cost 
Net fair value losses and interest on derivative 
financial instruments 
Cash flow hedges - reclassified to profit or loss 
Other 
Finance costs 
Net finance costs 

2020 
1,410,997 

317,820 
366,695 
23,971 
2,119,483 

2019 
- 

- 
288,010 
9,440 
297,450 

2018 
568,370 

654,933 
395,045 
58,766 
1,677,114 

(2,409,550) 

(1,039,618) 

(2,695,045) 

(811,439) 

(874,535) 

(552,101) 

- 
- 
(30,175) 
(3,251,164) 
(1,131,681) 

(550,438) 
461,133 
(21,660) 
(2,025,118) 
(1,727,668) 

- 
- 
(116,926) 
(3,364,072) 
(1,686,958) 

Net foreign exchange losses mainly include foreign exchange losses on borrowings, bonds issued and 
cash and cash equivalents. 

Foreign exchange losses from Belarusian Telecom and lifecell exclude foreign exchange losses incurred 
in the foreign operations’ individual financial statements, which have been recognized directly in equity 
under foreign currency translation reserve in the consolidated financial statements in accordance with the 
accounting policy for net investment in foreign operations as disclosed in Note 2c. 

Interest  income  and  expense  on  financial  assets  measured  at  amortized  cost  are  shown  netted  of  on 
consolidated statement of profit or loss. The Company has gross interest income and expense on financial 
assets at  amortized cost amounting  to TL 281,993, TL (1,093,432), TL 316,932, TL  (1,191,467), and  
TL 255,019, TL (807,120) for the years ended 31 December 2020, 2019 and 2018, respectively.  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Income tax expense 

9. 

2020 

2019 

2018 

 Current income tax expense 

   Deferred income tax credit/(expense) 
   Total income tax expense 

(724,688) 
337,495 
(387,193) 

(570,509) 
(215,121) 
(785,630) 

(654,953) 
159,472 
(495,481) 

  Income tax expense is attributable to profit from continuing operations.  

Income  tax  relating  to  each  component  of 
other comprehensive income 

2020 
Foreign currency translation differences 
Change in cash flow hedge reserve 
Change in cost of hedging reserve 
Fair value reserve 
Hedges of net investments in foreign 
operations 
Remeasurements of employee termination 
benefits 

2019 
Foreign currency translation differences 
Change in cash flow hedge reserve 
Change in cost of hedging reserve 
Fair value reserve 
Hedges of net investments in foreign 
operations 
Remeasurements of employee termination 
benefits 

2018 
Foreign currency translation differences 
Change in cash flow hedge reserve 
Change in cost of hedging reserve 
Remeasurements of employee termination 
benefits 

Before tax 
29,352 
9,914 
     (487,644) 
         (1,970) 

Tax (expense)/ 
credit 

7,729 
                (5,957) 
92,089 
483 

Net of tax 
37,081 
3,957 
   (395,555) 
       (1,487) 

     (368,959) 

72,684 

  (296,275) 

      (37,230) 
(856,537) 

6,085 
173,113 

    (31,145) 
(683,424) 

536,796 
(217,877) 
75,605 
4,451 

(55,389) 

(36,385) 
307,201 

850,188 
19,156 
(347,602) 

12,699 
534,441 

(99,234) 
47,933 
(16,634) 
(979) 

437,562 
(169,944) 
58,971 
3,472 

12,186 

(43,203) 

8,005 
(48,723) 

(28,380) 
258,478 

(226,667) 
(4,214) 
76,472 

(2,794) 
(157,203) 

623,521 
14,942 
(271,130) 

9,905 
377,238 

46 

47 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
342

 F48

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F49

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Income tax expense (continued) 

9. 

Reconciliation of income tax expense 

Profit from continuing operations before income tax 
expense   
(Loss) from discontinued operations before income tax 
expense   
Profit before income tax expense 

2020 

2019 

2018 

4,626,813 

3,289,884 

2,672,816 

- 

4,626,813   

772,436 
4,062,320 

- 
2,672,816 

- 
- 

(588,020) 
7,617 
198,160 

- 
- 

(123,738) 

(1,017,899)   

665,842 
6,746 

(893,710) 
(12,580) 
123,878 

(3,825) 
         130,718  

Tax at the Turkey’s tax rate  
Difference in overseas tax rates 
Effect of exemptions (*) 
Previously unrecognized tax losses used to reduce 
deferred tax expense (**) 
Utilization of previously unrecognized tax losses 
Effect of amounts which are not deductible and 
permanent differences 
Tax exemptions from sale of subsidiary and associate 
(***) 
Change in unrecognized deferred tax assets (****) 
Adjustments for current tax of prior years 
Tax effect of investment in associate and joint venture 
Other 
Total income tax expense 
 (*) Mainly comprises of research and development tax credit exemption. For the year ended 31 December 2018, includes the 
exemption effect of sales of Fintur amounted to TL 76,164. 
(**) Mainly comprises the deferred tax credit of TL 665,842 which relates to the carried-forward tax losses of lifecell. lifecell 
has recorded positive taxable profits for the year ended 31 December 2020, mainly as a result of increased subscriber numbers 
and cost management.  The Group has concluded that the deferred tax assets will be recoverable using the estimated future taxable 
profits based on the business plan of lifecell. The tax losses can be carried forward indefinitely and have no expiry date. 
(***) For the years ended 31 December 2019 and 2018, includes the Group’s transfer of its total shareholding  in Fintur and 
Azerinteltek, respectively (Note 39). 
(****) Mainly comprises of unused tax losses for which no deferred tax asset has been recognized. 

169,936 
(41,681) 
3,880 
(2,592) 
1,777 
(785,630) 

- 
(47,094) 
3,452 
(2,794) 
1,399 
(387,193) 

(134,538) 

(91,778) 

24,268 
(50,551) 
2,510 
- 
2,313 
(495,481) 

The Turkish entities within the Group are subject to corporate tax at the rate of 20%. Corporate tax is 
applied on taxable corporate income, which is calculated from the statutory accounting profit by adding 
back non-deductible expenses, and by deducting tax exempt income. On 5 December 2017, Turkey’s Law 
No. 7061 on the Amendment of Certain Tax Laws and Some Other Laws, and which was adopted on  
28 November 2017, was published in the Official Gazette. The Law increases the corporate tax rate under 
Corporate Tax Law, No. 5520, from the current 20% rate to 22% for tax years 2018, 2019, and 2020; the 
change took effect on the Law’s date of publication. The corporate tax rate decreases to 20% in 2021. 

In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file 
their tax returns by the end of the fourth month following the closing of the accounting year to which they 
relate. Corporate tax payment is made by the end of the month in which the tax return is filed. The tax 
authorities may, however, examine such returns and the underlying accounting records, and may revise 
assessments within a five-year period. Advance tax returns are filed on a quarterly basis. 

In Turkey, the transfer pricing provisions have been stated under Article 13 of Corporate Tax Law with 
the heading of “disguised profit distribution via transfer pricing”. The General Communiqué on disguised 
profit distribution via Transfer Pricing, dated 18 November 2007 sets out the details of implementation. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Income tax expense (continued) 

9. 

If a taxpayer enters into transactions regarding the sale or purchase of goods and services with related 
parties, where the prices are not set in accordance with arm's length principle, then related profits are 
considered  to  be  distributed  in  a  disguised  manner  through  transfer  pricing.  Such  disguised  profit 
distributions  through  transfer  pricing  are  not  accepted  as  tax  deductible  for  corporate  income  tax 
purposes. 

The deduction of 100% of the research and development expenses is allowed when the taxpayers are 
made these expenditures exclusively for new technology and information researches. 

Dividend payments of Turkish resident corporations to Turkish real persons, foreign corporations and 
foreign real persons are subject to 15% withholding tax. It is possible to apply reduced withholding tax 
rate for dividend payments made to abroad, under the scope of provisions of an applicable double taxation 
treaty.  On  the  other  hand,  dividend  payments  made  to  Turkish  resident  companies  are  not  subject  to 
withholding tax.  

Dividend income of Turkish taxpayers received from other Turkish taxpayers is exempted from corporate 
tax.  However,  dividends  received  from  participation  shares  and  stocks  of  fund  and  investment 
partnerships cannot utilize from this exemption.  

75%  of  the  profits  arising  from  the  sale  of  affiliate  shares,  founders'  shares,  redeemed  shares  and 
preemptive rights that are held by the corporations for at least two years are exempted from corporate tax. 
However, as of 5 December 2017, the date of the publication of the Law No. 7061, 50% of the profits 
arising from the sale of immovable properties  included in the assets of corporations for two years are 
exempted from corporate tax. The exemption rate had been 75% prior to this date. In order to benefit from 
these exemptions, profits must be recorded under a passive fund account on the balance sheet and not 
withdrawn for 5 years. Also, the sale amounts must be received until the end of the second calendar year 
following the sale.  

Pursuant to Article 10/13-h of Law No.7143 published in the Official Gazette dated 18 May 2018 and 
numbered 30425;  

  For the resident real persons and institutions, 

- 

Income from the sale of non-resident subsidiary shares, 

-  Participation income from non-resident subsidiaries,  

-  Commercial income through permanent establishment and permanent representatives abroad, 

including those obtained until the date 31 October 2018, are exempted from income tax or corporation 
the  effective  date  of  Article  until  
tax  under  condition  that  incomes  are  transferred  from 
31 December 2018. In accordance with the Presidential Decree dated 29 August 2018 and numbered 48, 
the terms of the Article have been extended for 6 months. In this way, including those obtained until the 
date  30  April  2019,  income  from  the  sale  of  non-resident  subsidiary’s  shares  are  exempted  from 
corporation tax under condition that incomes are transferred until 30 June 2019.  

  For  the  resident  real  persons  and  institutions,  income  from  the  liquidation  of  non-resident 
institutions are exempt from income tax or corporation tax under condition that incomes are transferred 
to  Turkey  until  the  date  31  December  2018.  In  accordance  with  the  President  Decision  dated  
29 August 2018 and numbered 48, the terms of the Article have been extended for 6 months. In this way, 
income  from  the  liquidation  of  non-resident  institutions  are  exempted  from  corporation  tax  under 
condition that incomes are transferred until 30 June 2019. 

48 

49 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
344

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TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F51

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

10.  Expenses by nature 

10.  Expenses by nature (continued) 

Breakdown of expenses by nature for the years ended 31 December 2020, 2019 and 2018 is as follows: 

Administrative expenses: 

Cost of revenue: 

Depreciation and amortization (*) 
Cost of goods sold 
Treasury share 
Interconnection and termination expenses 
Employee benefit expenses  
Radio expenses 
Frequency expenses 
Transmission expenses 
Universal service fund 
Roaming expenses 
Cost of revenue from financial services (**)  
Others  

2020 
(5,974,779) 
(3,301,984) 
(2,418,800) 
(2,247,647) 
(1,741,591) 
(921,153) 
(887,243) 
(426,036) 
(330,932) 
(214,478) 
(135,237) 
(1,736,179) 
(20,336,059) 

2019 
(5,046,565) 
(2,278,283) 
(2,191,427) 
(1,909,614) 
(1,447,037) 
(734,583) 
(802,950) 
(335,980) 
(297,053) 
(238,147) 
(240,297) 
(1,561,544) 
(17,083,480) 

2018 
(4,287,974) 
(1,284,180) 
(1,884,556) 
(1,763,414) 
(1,148,445) 
(508,884) 
(622,390) 
(326,080) 
(256,454) 
(226,806) 
(378,477) 
(1,458,333) 
(14,145,993) 

(*) As at 31 December 2020, depreciation and amortization expenses include depreciation and amortization expenses related to 
the financial services amounting to TL 39,726 (31 December 2019: TL 26,478; 31 December 2018: TL 16,321). 
(**) As at 31 December 2020, cost of revenue from financial services includes employee benefit expenses related to the financial 
services amounting to TL 18,166 (31 December 2019: TL 11,358; 31 December 2018: TL 8,532). 

Selling and marketing expenses: 

Employee benefit expenses 
Marketing expenses 
Selling expenses  
Others  

2020 
(634,367) 
(507,921) 
(173,064) 
(57,601) 
(1,372,953) 

2019 
(547,136) 
(554,538) 
(349,269) 
(104,246) 
(1,555,189) 

2018 
(433,997) 
(551,127) 
(555,158) 
(86,432) 
(1,626,714) 

Employee benefit expenses 
Service expenses 
Consultancy expenses 
Collection expenses 
Maintenance and repair expenses 
Travel and entertainment expenses 
Other  

2020 
(479,932) 
(58,255) 
(53,105) 
(52,189) 
(20,139) 
(17,009) 
(68,983) 
(749,612) 

2019 
(473,843) 
(52,756) 
(51,308) 
(57,097) 
(26,610) 
(34,644) 
(83,497) 
(779,755) 

2018 
(416,409) 
(35,257) 
(38,252) 
(37,525) 
(26,867) 
(38,406) 
(80,654)  
(673,370) 

Net impairment losses on financial and contract assets: 

Net impairment losses on financial and 
contract assets 

2020 

2019 

2018 

(349,595) 
(349,595) 

(338,857) 
(338,857) 

(346,390) 
(346,390) 

50 

51 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
346

 F52

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
348

 F54

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Intangible assets 

12. 

Turkcell 
The  carrying  amounts  of  2G,  3G  and  4.5G  licenses  are  TL  103,460,  TL  320,599  and  TL  3,320,721, 
respectively (31 December 2019: TL 149,443, TL 359,071 and TL 3,723,232, respectively). 

lifecell 

lifecell  owns  nine  activity  licenses:  a  technology  neutral  license,  issued  for  3G,  one  license  for 
international and long-distance calls and  seven PSTN licenses  for seven regions in  Ukraine. As  of 31 
December 2020, lifecell owns twenty frequency use licenses for IMT (LTE-2600, LTE-1800, LTE-900), 
IMT-2000  (UMTS), GSM-900, GSM-1800, and  microwave  Radiorelay and Broadband Radio  Access, 
which are regional and national. Additionally, lifecell holds a specific number range — three NDC codes 
for mobile network, twenty-eight permissions on a number resource for short numbers, ten permissions 
on a number resource for SS-7 codes (six regional and four international), one permission on a number 
resource for Mobile Network Code, eight permissions on a number resource for local ranges for PSTN 
licenses, two permissions on service  codes for  alternative routing selection for international  and long-
distance fixed telephony, and one permission on a code for global telecommunication service “800”. The 
carrying amount of lifecell’s licenses is TL 1,217,173 (31 December 2019: TL 1,254,713). 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
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TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

12. 

Intangible assets (continued) 

Amortization  expenses  for  the  years  ended  31  December  2020,  2019  and  2018  amounting  to  
TL 2,454,969, TL 1,920,756 and TL 1,580,319, respectively include impairment losses and are recognized 
ended  
in 
31  December  2020,  2019  and  2018  are  TL  18,460,  TL  2,540  and  TL  3,232,  respectively  and  are 
recognized in amortization expenses.  

Impairment 

losses  on 

the  years 

intangible 

cost  of 

revenue. 

assets 

for 

Computer  software  includes  capitalized  software  development  costs  that  meet  the  definition  of  an 
intangible  asset.  The  amount  of  capitalized  development  costs  is  TL  244,204  for  the  year  ended  
31 December 2020 (31 December 2019: TL 206,064). The amortization expenses related to capitalized 
software  development  costs  for  the  years  ended  31  December  2020,  2019  and  2018  amounting  to  
TL 46,601, TL 47,591 and TL 40,934, respectively are recognized in cost of revenue. 

13. 

Impairment of assets 
The Group’s cash-generating units (CGUs) are reviewed at each reporting date to determine whether there 
is any indication of impairment. If any such indication exists, then the recoverable amount of the CGU is 
estimated.  The  recoverable  amount  of  the  CGU  is  its  fair  value  less  cost  of  disposal.  At  
31 December 2020, no impairment test has been carried out since there was no indication of impairment 
in any of the Group’s CGUs. 

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Cost 
Opening balance  
Addition 
Disposal 
Transfer to property, plant and equipment  
Closing balance  
Accumulated depreciation 
Opening balance  
Transfer to property, plant and equipment 
Depreciation and impairment charges during the year 
Disposal 
Closing balance  

31 December 
2020 

31 December 
2019 

46,283      

- 
(15,985) 

6,781      
37,079      

(30,000)      
(5,528)      
(697) 
12,821      

(23,404) 

145,759     
987     
- 

(100,463)     
46,283     

(130,334)     
103,262     
(2,928)     

- 

(30,000)     

Net book amount  

13,675 

16,283     

Determination of the fair values of the Group’s investment properties  

The Group engages qualified external experts, authorized by the Capital Markets Board  of Turkey,  to 
perform the valuation of investment properties. Management works closely with the qualified external 
experts to establish the appropriate valuation techniques and inputs to the model. The fair values of these 
investment  properties  were  determined  using  a  variety  of  valuation  methods:  income  capitalization 
approach and market approach. In estimating the fair values of the properties, the highest and best use of 
the property is its current use. 

Rent  income  from  investment  properties  during  the  year  ended  31  December  2020  is  TL  5,855 
(31  December  2019:  TL  4,078  and  31  December  2018:  TL  3,092).  There  is  TL  294  direct  operating 
expense for investment properties during the year ended 31 December 2020 (31 December 2019: TL 522 
and 31 December 2018: None). 

57 

F57

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
352

 F58

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  
Investment properties (continued) 

14. 

The Group’s investment properties and their fair values at 31 December 2020 and 2019 are as follows: 

31 December 2020 

 Level 1 

Level 2 

Level 3 

Valuation Method 

Investment properties in Gebze 

Investment properties in Ankara 

Investment properties in Aydin 

- 

- 

- 
- 

- 

22,340 

15,160 

2,515 
17,675 

- 

- 
22,340 

Income capitalization 
approach  

Market approach 

Market approach 

31 December 2019 

 Level 1 

Level 2 

Level 3 

Valuation Method 

Investment properties in Gebze 

Investment properties in Ankara 

Investment properties in Istanbul 

- 

- 

- 
- 

- 

21,520 

14,400 

14,585 
28,985 

- 

- 
21,520 

Income capitalization 
approach  

Market approach 

Market approach 

Significant unobservable inputs and sensitivity of fair values of respective investment properties are as 
follows: 

In the “income capitalization” approach, a significant increase/(decrease) in rentals will cause a significant 
increase/(decrease) in the fair value. In addition, a slight decrease/(increase) in risk premium and discount 
rate  which  are  calculated  by  considering  current  market  conditions  will  cause  a  significant 
increase/(decrease) in the fair value.  

In the “market approach”, a significant increase/(decrease) in the market value of any properties which 
are located in similar areas with similar conditions will cause a significant increase/(decrease) in the fair 
value. 

58 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
354

 F60

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

F61

355

16.  Discontinued operations 

Disposal of Fintur  

In 2016, the Group has committed to the plan to exit from Fintur operations in relevant jurisdictions and 
initiated an active program to locate a buyer for its associate. In this regard, Fintur has been classified as 
held for sale and reported as discontinued operation starting from 1 October 2016. 

Equity  accounting  for  Fintur  ceased  as  of  1  October  2016,  and  in  accordance  with  IFRS  5,  Fintur 
has been measured at the lower of the carrying amount and fair value less costs to sell.  

  The Company signed the definitive agreement on 12 December 2018 to transfer its total shareholding in 
Fintur to the other shareholder of Fintur, Sonera Holding B.V. (“Sonera Holding”). The transfer to Sonera 
Holding  and  the  transfer  of  proceeds  completed  on  2  April  2019  subsequent  to  receipt  of  regulatory 
is  realized  as  TL  2,229,595  
approvals  on  29  March  2019.  The  final 
(EUR 352,851). The share transfer has been completed in 2019, gain on sale of the associate, amounting 
to TL 772,436 has been recognized under profit from discontinued operations in the consolidated financial 
statements.  

transaction  value 

Reconciliation of Fintur sales for the period ended 31 December 2019 is stated as below: 

Consideration received or receivable: 
Cash 
Total disposal consideration 
Carrying amount of net assets sold 
Gain on sale before income tax and reclassification of foreign currency 
translation reserve 
Reclassification of foreign currency translation reserve 
Income tax expense on gain 
Gain on sale after income tax 

31 December 2019 

2,229,595 
2,229,595 

(1,825,292) 

404,303 
368,133 
- 
772,436 

  Subsequent to recognition of gain on sale of Fintur for the three months period ended 31 March 2019, the 
Company has recognized compensation expense, which has been paid on 23 July 2019 according to Kcell 
Share Purchase Agreement amounting to TL 59,224 (USD 10,448). 

17.  Other non-current assets 

Advances given for property, plant and equipment 
Prepaid expenses 
Deposits and guarantees given 
Receivables from the Public Administration 
VAT receivable 
Others 

2020 
561,298 
141,201 
78,401 
72,848 
29,025 
1,069 
883,842 

2019 
59,959 
133,914 
34,602 
72,848 
1,902 
1,045 
304,270 

18.  Deferred tax assets and liabilities 

Recognized deferred tax assets and liabilities 

Deferred tax assets and liabilities at 31 December 2020 and 2019 are attributable to the following: 

Property, plant and equipment 
and intangible assets 
Investment 
Derivative instruments 
Reserve for employee 
termination benefits and 
provisions 
Trade and other payables 
Tax losses carried forward  
Tax allowances 
Other assets and liabilities (*) 
Deferred tax 
assets/(liabilities) 
Offsetting 
Net deferred tax 
assets/(liabilities) 

Assets 

Liabilities 

Net 

2020 

2019 

2020 

2019   

2020 

2019 

123,871 
- 
27,177 

145,242 
32,926 
24,303 

  (2,117,594) 
- 
(407,740) 

  (1,915,567) 
- 
(349,797) 

  (1,993,723) 
- 
(380,563) 

  (1,770,325) 
32,926 
(325,494) 

258,675 
26,511 
1,101,043 
5,158 
638,991 

167,589 
81,558 
258,040 
59,176 
586,769 

(1,362) 
(149,827) 
(3,254) 
- 
(2,872) 

(36,289) 
(14,823) 
- 
- 
(15,415) 

257,313 
(123,316) 
1,097,789 
5,158 
636,119 

131,300 
66,735 
258,040 
59,176 
571,354 

2,181,426 
  (1,344,818) 

1,355,603 
  (1,166,261) 

  (2,682,649) 
1,344,818 

  (2,331,891) 
1,166,261 

(501,223) 
- 

(976,288) 
- 

836,608 

189,342 

  (1,337,831) 

  (1,165,630) 

(501,223) 

(976,288) 

(*) Mainly comprises of loans, bonds, prepaid expenses and lease liabilities deferred tax assets. 

Movement in deferred tax assets/ (liabilities) for the years ended 31 December 2020 and 2019 were as follows: 

Opening balance 
Income statement charge 
Tax charge relating to components of other comprehensive income 
Exchange differences 
Closing balance, net 

2020 

2019 

(976,288) 
337,495 
173,113 
(35,543) 
(501,223) 

(709,628) 
(215,121) 
(48,723) 
(2,816) 
(976,288) 

The Group did not recognize deferred income tax assets of TL 551,847 (31 December 2019: TL 1,199,670) in 
respect of tax losses amounting to TL 2,986,951 (31 December 2019: TL 6,588,723) that can be carried forward 
against future taxable income. The unused tax losses were incurred mainly by Belarusian Telecom that are not 
likely to generate taxable income in the foreseeable future. 

Unused tax losses will expire at the following dates: 

Expiration Date 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
2028 
Indefinite 
Total 

Amount 
212,836 
136,298 
201,770 
345,681 
1,196,884 
45,470 
571,210 
188,354 
88,448 
2,986,951 

60 

61 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
356

 F62

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F63

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

19.  Trade receivables and accrued revenue 

Receivables from subscribers 
Accounts and notes receivable 
Undue assigned contracted receivables 

31 December 
2020 
2,263,544 
766,921 
435,332 
3,465,797 

31 December 
2019 
2,090,242 
745,442 
298,291 
3,133,975 

Trade  receivables  are  shown  net  of  provision  for  impairment  amounting  to  TL  617,932  as  at  
31 December 2020 (31 December 2019: TL 620,247). Movements in provision for impairment of trade 
receivables  and  due  from  related  parties  are  disclosed  in  Note  36.  The  accounts  and  notes  receivable 
represent receivables from distributors and roaming receivables. The Group’s exposure to currency risk 
and credit risk arising from trade receivables are disclosed in Note 36. 

Letters  of  guarantee  received  with  respect  to  the  accounts  and  notes  receivable  amounted  to  
TL 351,698 and TL 332,180 at 31 December 2020 and 2019, respectively. 

The undue assigned contracted receivables are the remaining portion of the assigned receivables from the 
distributors related to the handset campaigns which will be collected from subscribers by the Company 
in  instalments.  When  the  monthly  instalment  is  billed  to  the  subscriber,  that  portion  is  transferred  to 
“Receivables from subscribers”. The Company  measures the undue assigned contracted receivables  at 
amortized cost, bears the credit risk and recognizes interest income throughout the contract period. 

The accrued revenue represents accrued revenue from subscribers. Due to the high volume of subscribers, 
there are different billing cycles. Accordingly, an accrual is made at the end of each reporting period to 
accrue revenue for services rendered but not billed. The undue assigned contracted receivables related to 
handset  campaigns,  which  will  be  billed  after  one  year  amounted 
to  TL  172,261 
(31  December  2019:  TL  116,462)  is  presented  under  non-current  trade  receivable  amounted  to  
TL 222,451 (31 December 2019: TL 148,159). 

20.  Receivables from financial services 

Current receivables from financial services 
Non-current receivables from financial services 

31 December 
2020 
1,886,381 
75,717 
1,962,098 

31 December 
2019 
2,319,122 
123,136 
2,442,258 

Movements in provision for impairment of receivables from financial services are disclosed in Note 36. 

Starting from 2016 the Group and its distributors have offered handset campaigns where subscribers can 
buy  handsets  using  loans  placed  by  Turkcell  Finansman.  The  Group  assumes  credit  risk  in  these 
transactions. Turkcell Finansman collects the loan from the subscriber during the contract period and the 
Group does not recognize handset revenue unless it is acting as principal in the handset sale. 

21.  Contract assets 

Current contract assets: 

Contract assets 

31 December 
2020 
972,052 
972,052 

31 December 
2019 
933,969 
933,969 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

21.  Contract assets (continued) 

Non-current contract assets: 

Contract assets 

31 December 
2020 
128,114   
128,114     

31 December 
2019 
10,291 
10,291 

The contract assets represent contract assets from subscribers. Due to the high volume of subscribers, 
there are different billing cycles. Accordingly, an accrual is made at the end of each reporting period to 
accrue revenue for services rendered but not billed. Contract assets also include contracted receivables 
related to handset campaigns, and the portion which will be billed after one year is presented under long 
term contract assets. 

22. 

Inventory 
As of 31 December 2020, inventories amounting to TL 203,715 which consist of mainly mobile phone 
and its accessories, tablet, sim-cards and tower construction materials (31 December 2019: TL 178,399). 

23.  Other current assets 

Receivables from the Ministry of Transport and 
Infrastructure of Turkey 
Prepaid expenses 
VAT receivable 
Advances given to suppliers 
Receivables from tax office 
Other advances given 
Other 

24.  Cash and cash equivalents 

Cash in hand 

Banks 

- Demand deposits 
- Time deposits 

Other cash and cash equivalents 
Cash and cash equivalents  

31 December 
2020 

31 December 
2019 

224,563 
163,657 
49,490 
48,141 
20,864 
- 
52,271 
558,986  

669,621 
135,881 
109,777 
90,454 
99,882 
65,263 
156,126 
1,327,004 

31 December 
2020 
179 

31 December 
2019 
131 

11,852,022 
975,753 
10,876,269 
8,354 
11,860,555 

10,238,310 
632,022 
9,606,288 
274 
10,238,715 

As at 31 December 2020, the average effective interest rates of TL, USD and EUR time deposits are 
17.4%, 2.8% and 1.8% (31 December 2019: 10.7%, 2.3% and 0.4%) respectively. 

As at 31 December 2020, average maturity of time deposits is 30 days (31 December 2019: 38 days). 

62 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
358

 F64

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F65

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

25.  Financial assets 

25.  Financial assets (continued) 

Debt investments at fair value through other comprehensive income 

Debt investments at fair value through other comprehensive income (continued) 

Currency 

31 December 2019 

Nominal amount 
(original currency) 

Fair value  
(in TL) 

EUR 
EUR 
EUR 
EUR 
USD 
USD 
Total financial assets                                     

17,990 
10,000 
20,000 
2,000 
300 
1,000 

121,456 
67,773 
133,072 
15,026 
1,878 
6,397 
345,602   

Maturity 

29 May 2020 
5 February 2021 
17 December 2021 
16 February 2026 
21 February 2022 
10 August 2024 

During the year, the following gains (losses) were recognized in other comprehensive income. 

Gains / (Losses) recognized in other comprehensive income 
Related to debt securities 

31 December 
2020 

  31 December 
2019 

(1,487) 
(1,487) 

             3,472  
                3,472  

Debt investments at FVOCI comprise the following investments in listed and unlisted securities: 

Current Assets 
Listed debt securities 

31 December 
2020 
529,610 
529,610 

  31 December 
2019 
345,602 
345,602 

Fair values 

31 December  
2020 

31 December 
2019 

Fair value 
hierarchy  

Valuation technique  

Financial 
assets at fair 
value through 
other 
comprehensive 
income 

272,334 

- 

Level 2 

257,276 

345,602 

Level 1 

Present value of the 
estimated future cash 
flows based on 
observable yield 
curves and period end 
FX rates 
Pricing models based 
on quoted market 
prices at the end of the 
reporting period. 

Total 

529,610 

345,602 

As of 31 December 2020 and 2019, the nominal and fair value amounts of financial assets are as follows: 

Currency 

31 December 2020 

Nominal amount 
(original currency) 

Fair value  
(in TL) 

EUR 
EUR 
EUR 
EUR 
TRY 
TRY 
USD 
USD 
Total financial assets                                     

              10,000  
              20,000  
              20,000  
                1,995  
              24,108  
              24,312  
                   300  
                   996  

                   91,229  
                 181,105  
                 178,375  
                   19,718  
                   24,819  
                   24,362  
                     1,966  
                     8,036  
529,610   

Maturity 

5 February 2021 
13 March 2021 
17 December 2021 
16 February 2026 
2 March 2022 
2 March 2022 
21 February 2022 
10 August 2024 

64 

65 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
360

 F66

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F67

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

26.  Equity 

Share capital 

As at 31 December 2020, share capital represents 2,200,000,000 (31  December  2019:  2,200,000,000) 
authorized,  issued  and  fully  paid  shares  with  a  par  value  of  TL  1  each.  In  this  respect,  share  capital 
presented in the consolidated financial statements refers to nominal amount of registered share capital.  

Each  holder  of  shares  is  entitled  to  receive  dividends  as  declared  and  their  vote  entitlements  are 
determined as explained in Note 1. 

Companies with their shareholding percentage are as follows: 

Public Share 
TVF BTIH 
IMTIS Holdings 
Turkcell Holding 
Other 

31 December 2020 
TL 
(%) 
1,187,004   
53.95 
576,400   
26.20 
435,600   
19.80 
-   
- 
996   
0.05 

31 December 2019 
(%) 
TL 
48.95 
- 
- 
51.00 
0.05 

  1,077,004 
- 
- 
1,122,000 
996 

Total 
Inflation adjustment to share capital 
Inflation adjusted capital 

100.00 

2,200,000   

100.00 

(52,352)     
2,147,648     

2,200,000 
(52,352) 
2,147,648 

As at 31 December 2020, total number of shares pledged as security is 995,509 (2019: 995,509). 

Legal reserves 

The  legal  reserves  consist  of  first  and  second  reserves,  appropriated  in  accordance  with  the  Turkish 
Commercial Code (“TCC”). The TCC stipulates that the first legal reserve is appropriated out of statutory 
profits at the rate of 5% per annum, until the total reserve  reaches 20%  of a company’s  paid-in share 
capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash dividends in 
excess of 5% of the paid-in share capital. Under the TCC, the legal reserves can only be used to offset 
losses and are not available for any other usage unless they exceed 50% of paid-in share capital.  

Treasury shares 
During  2020,  the  Company  purchased  816,290  of  its  shares  on-market  with  prices  ranging  from  full  
TL 12.09 to full TL 12.35. The buyback was approved by the Board of Directors on 27 July 2016 and  
30 January 2017. Total amount of TL 9,994 was deducted from equity (2019: TL 9,998). 

  Dividends 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

27.  Earnings per share 

Numerator: 
Profit attributable to owners of the Company 
Denominator: 
Weighted average number of shares (*) 
Basic and diluted earnings per share for 
profit attributable to owners of the Company 
(in full TL) 
(*) Refer to Note 26 - Treasury shares 

Numerator: 
Profit from continuing operations attributable to 
owners of the Company 
Denominator: 
Weighted average number of shares (*) 
Basic and diluted earnings per share for 
profit from continuing operations attributable 
to owners of the Company (in full TL) 
(*) Refer to Note 26 - Treasury shares 

Numerator: 
Profit from discontinuing operations attributable 
to owners of the Company 
Denominator: 
Weighted average number of shares (*) 
Basic and diluted earnings per share for profit 
from discontinued operations attributable to 
owners of the Company (in full TL) 

(*) Refer to Note 26 - Treasury shares

2020 

2019 

2018 

4,237,086 

3,246,487 

2,021,065 

2,183,106,193 

2,183,922,483 

2,184,750,233 

1.94 

1.49 

0.93    

4,237,086 

2,474,051 

2,021,065 

2,183,106,193 

2,183,922,483 

2,184,750,233 

1.94 

1.14 

0.93    

- 

772,436 

- 

2,183,106,193 

  2,183,922,483 

2,184,750,233 

- 

0.35 

- 

Inteltek: 
According to the resolution of the Ordinary General Assembly Meeting of Inteltek dated 13 March 2020, 
the shareholders resolved to pay a dividend amount equal to TL 38,029 out of profits for the year ended  
to  TL  34,985  
31  December  2019  and  a  dividend  out 
(2019: TL 277,837 in total). The aggregate amount of dividends has been paid on 23 March 2020. 

reserves  amount  equal 

legal 

Turkcell: 

On 24 September 2020, the Company’s General Assembly has approved a dividend distribution for the 
year ended 31 December 2019 amounting to TL 811,622 (2019: TL 1,010,000); this represents a gross 
cash  dividend  of  full  TL  0.36892  per  share.  The  dividend  has  been  paid  to  the  shareholders  on  
30 November 2020. 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
362

 F68

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F69

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the year ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

28.  Other non-current liabilities 

29.  Loans and borrowings (continued) 

Consideration payable in relation to  
the acquisition of Belarusian Telecom 
Deferred revenue 

2020 

475,879 
22,180 
498,059 

2019 

359,554 
303 
359,857 

Consideration payable in relation to the acquisition of Belarusian Telecom represents the present value of 
the  long-term  contingent  consideration  payable to  the  seller. Payment  of  USD 100,000  (equivalent  to  
TL 734,050 as of 31 December 2020) is contingent on the financial performance of Belarusian Telecom, 
and based on management’s estimations, the amount is expected to be paid in instalments between 2025 
and 2030 (31 December 2019: in instalments between 2026-2030). The discount rate used for calculating 
present  value  of  the  consideration  payable  in  relation  to  the  acquisition  of  Belarusian  Telecom  as  of  
31 December 2020 ranges between 4.3% and 5.6% (31 December 2019: 5.2% and 6.1%). 

29.  Loans and borrowings 

Non-current liabilities 
  Unsecured bank loans 
  Secured bank loans 
  Lease liabilities 
  Debt securities issued 

Current liabilities 
  Unsecured bank loans 
  Secured bank loans 
  Lease liabilities 
  Debt securities issued 

31 December 
2020 

31 December 
2019 

7,779,354 
151,543 
1,521,713 
6,901,075 
16,353,685 

4,049,824 
144,261 
577,173 
461,479 
5,232,737 

6,092,170 
- 
1,101,303 
5,483,921 
12,677,394 

6,712,297 
2,415 
431,752 
481,869 
7,628,333 

The company has used loans in accordance with the loan agreement previously signed with J.P.Morgan 
and AB Svensk Exportkredit under the Swedish Export Credit Organization (“EKN”) insurance. As of  
31  December  2020,  the  Company  has  used  USD  47,100  and  USD  29,410  loan  on  1  April  2020  and  
27 November 2020, respectively, with a fixed interest rate of 3.84%. 

As at 31 December 2020, the company signed a green loan agreement amounting to EUR 50,000 with 
ING European Financial Services Plc. The respective loan has a maturity of 5 years and its annual interest 
rate is Euribor+1.95%. The loan facility is utilized to finance sustainable investments such as renewable 
energy, energy efficiency, green digital services and green buildings under the internationally recognized 
Green Loan Principles. The loan will be repaid at once at the end of the 5-year maturity term. The loan 
was fully utilized on 20 March 2020. 

The company has signed a loan agreement amounting to USD 90,000 with ING BANK N.V. and AB 
Svensk Exportkredit within the scope of the EKN insurance on 18 December 2020, which can be used for 
financing the products and services procured from Ericsson AB and Ericsson Telekomunikasyon A.S.. 
Each  tranches  has  a  period  of  15  months  respectively  and  the  last  tranche  will  be  available  until  
April 2024. The repayments of the tranches will be made in 2 equal installments per year and with a fixed 
interest rate of 3.04%. 
The company has signed a loan agreement amounting to EUR 500,000 with the China Development Bank 
on  10  August  2020,  which  can  be  used  for  the  infrastructure  investment  financing  of  the  Group  for  
3  years, and can be  utilized  both  in  EUR  and  RMB. The maturity  of the loan is  8  years  and  the first  
3 years are without principal repayment. The annual interest rate of the loan is Euribor+2.29% for the 
EUR tranche and the fixed 5.15% for the RMB tranche. 
Within  the  scope  of  buy-back  decisions  on  27  July  2016,  30  January  2017  and  24  March  2020,  the 
Company  sold  their  debt  securities  issued  with  a  total  nominal  value  of  USD  20,500  as  at  
31 December 2020. 

The company has decided to prepay and close its Club loan, which was utilized under the credit agreement 
disclosed on 17 September 2015 and which is to fully mature on 16 September 2020. Accordingly, the 
last two principal payments of the loan, which are due in June 2020 and September 2020 as per the credit 
agreement and which in total amounted to EUR 148.4 million and USD 166.7 million were made on  
23 March 2020. 

On  4  June  2020,  CMB  approval  has  been  taken  on  issuance  of  management  agreement  based  lease 
certificates in accordance with capital markets legislation in the domestic market, in Turkish Lira terms, 
at an amount up to TL 600,000, on various dates and at various amounts without public offering, as private 
placement  and/or  to  be  sold  to  institutional  investors  within  one  year.  On  18  November  2020,  the 
Company  has  issued  management  agreement  based  lease  certificates  amounting  TL  50,000  with  the 
maturity of 23 March 2021.  

68 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
364

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0
7

TURKCELL ILETISIM HIZMETLERI AS 

F71

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

30.  Employee benefits 

Retirement pay liability provision 
Unused vacation provision 

31 December 
2020 
301,459 
80,464 
381,923 

31 December 
2019 
222,164 
72,167 
294,331 

Provision for employee termination benefits 

Movements in provision for employee termination benefits are as follows: 

1 January 
Service cost 
Remeasurements 
Interest expense 
Benefit payments  
31 December 

2020 
222,164 
38,304 
37,230 
25,535 
(21,774) 
301,459 

2019 
160,613 
35,831 
36,385 
25,566 
(36,231) 
222,164 

The  sensitivity  of  provision  for  employee  termination  benefits  to  changes  in  the  significant  actuarial 
assumptions is: 

31 December 2020 

Sensitivity Level 

Change in assumption 
Impact on provision for employee 
termination benefits 

31 December 2019 

Sensitivity Level 

Change in assumption 
Impact on provision for employee 
termination benefits 

Interest Rate 

Inflation Rate 

1% increase  1% decrease 

1% increase 

1% decrease 

(14.1%) 

17.3% 

17.6% 

(14.6%) 

(42,566)   

           52,122                53,117   

(43,953)   

Interest Rate 

Inflation Rate 

1% increase  1% decrease 

1% increase 

1% decrease 

(14.2%) 

17.4% 

17.9% 

(14.7%) 

(31,547) 

38,657 

39,767 

(32,658) 

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions 
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.  

Defined contribution plans 

Obligations for contribution to defined contribution plans are recognized as an expense in the consolidated 
statement of profit or loss as incurred. The Group incurred TL 14,677, TL 12,785 and TL 9,361 in relation 
to  defined  contribution  retirement  plan  for  the  years  ended  31  December  2020,  2019  and  2018, 
respectively. 

Share based payments 

The Group has a share performance based payment plan (cash settled incentive plan) in order to build a 
common interest with its shareholders, support sustainable success, and ensure loyalty of key employees. 
The  KPIs  of  the  plan  are;  the  total  shareholder  return  in  excess  of  weighted  average  cost  of  capital 
(WACC), and ranking of total shareholder return in comparison with BIST-30 and peer group. Bonus 
amount is determined according to these evaluations, and it is distributed over a three-year payment plan. 

As  of  31  December  2020,  the  Group  recognized  expenses  of  TL  12,085  regarding  this  plan  
(31 December 2019: TL 28,199). 

71 

365

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            
 
 
 
 
366

 F72

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F73

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

31.  Deferred revenue 

  Deferred revenue primarily consists of rent income and it is classified as current at 31 December 2020 
and 2019. The amount of deferred revenue is TL 116,921 and TL 56,544 as at 31 December 2020 and 
2019, respectively. 

32.  Contract liabilities 

Current contract liabilities: 

Contract liabilities 

Non-current contract liabilities: 

Contract liabilities 

31 December 
2020 
315,070 
315,070 

31 December 
2019 
290,408 
290,408 

31 December 
2020 
164,764 
164,764 

31 December 
2019 
141,890 
141,890 

Contract liabilities primarily consists of right of use sold but not used by prepaid subscribers. 

Revenue  recognized  in  the  current  reporting  period  relating  to  carried  forward  contract  liabilities  is  
TL 290,408 (2019: TL 255,756). 

The following table shows unsatisfied performance obligation result as of 31 December 2020; 

Telecommunications service 
Equipment revenues 
Total 

31 December 2020 
900,816 
423,948 
1,324,764 

Management  expects  that  61%  of  the  transaction  price  allocated  to  the  unsatisfied  contracts  as  of  
31  December  2020  will  be  recognized  as  revenue  during  next  reporting  periods.  The  remaining  
39% will be recognized in the 2021 financial year. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

33.  Provisions  

Non-current provisions: 

Balance at 1 January 2020 
Provisions recognized 
Unwinding of discount 
Transfer to current provisions 
Remeasurements 
Effect of changes in exchange rates 
Balance at 31 December 2020 

Legal 
claims 
13,635 
11,033 
- 
(7,774) 
- 
- 
16,894 

Balance at 1 January 2019 
Provisions recognized 
Unwinding of discount 
Transfer to current provisions 
Effect of changes in exchange rates 
Balance at 31 December 2019 

  Legal claims   
9,364    
12,187 
- 

(7,916)   
-   

13,635 

Obligations for 
dismantling, 
removing and 
site restoration 
323,769 
7,840 
21,521 
- 
39,504 
2,403 
395,037 

Obligations for 
dismantling, 
removing and 
site restoration 
259,358 
29,080 
14,262 
- 
21,069 
323,769 

Total 
337,404 
18,873 
21,521 
(7,774) 
39,504 
2,403 
411,931 

Total 
268,722 
41,267 
14,262 
(7,916) 
21,069 
337,404 

Provision for legal claims are recognized for the probable cash outflows related to legal disputes. Refer 
to Note 38. 

The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to 
restore  sites  on  which the assets  were located. The dismantling  costs  are  calculated  according  to  best 
estimate of future expected payments discounted at a pre-tax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the liability. 

It  is  expected  that  the  obligations  for  dismantling,  removing  and  site  restoration  will  be  realized  in 
accordance with the useful life of GSM services materials. 

Additions to obligations for dismantling, removing and site restoration during the period are non-cash 
transactions and are recorded against property, plant and equipment. 

Obligations for dismantling, removing and site restoration are discounted using a discount rate of 9.9% 
at 31 December 2020 (31 December 2019: 6.1%).  

72 

73 

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L

C
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P

I

T
A
L

A
P
P
E
N
D

I

C
E
S

Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
368

 F74

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F75

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

33.  Provisions (continued) 

Current provisions: 

Balance at 1 January 2020 
Provisions recognized 
Payments 
Transfers from non-current provisions 
Effect of changes in exchange rates 
Balance at 31 December 2020 

  Legal claims(**) 
17,840 
232,879 
(6,109) 
7,774 
1,249 
253,633 

  Bonus(*) 
324,972 
590,187 
(537,598) 
- 
(906) 
376,655 

Total 
342,812 
823,066 
(543,707) 
7,774 
343 
630,288 

Balance at 1 January 2019 
Provisions recognized 
Payments 
Transfers from non-current provisions 
Effect of changes in exchange rates 
Balance at 31 December 2019 

  Legal claims(**) 
8,593 
4,369 
(4,344) 
7,916 
1,306 
17,840 

  Bonus(*) 

298,475     
521,647 
(501,234) 
- 
6,084 
324,972 

Total 
307,068 
526,016 
(505,578) 
7,916 
7,390 
342,812 

(*) Includes share-based payment (Note 30). 

(**) Refer to Note 38. 

34.  Trade and other payables 

Payable to suppliers 
Taxes payable 
Accrued treasury share, universal service fund 
contribution and contributions to the ICTA’s 
expenses  
Accrued selling and marketing expenses  
Other 

2020 
3,563,918 
668,260 

533,440 
4,477 
206,510 
4,976,605 

2019 
2,728,485 
523,584 

562,536 
100,792 
202,074 
4,117,471 

Payable to suppliers arises in the ordinary course of business. 

Taxes  payables  include  VAT  payables,  special  communications  taxes  payable,  frequency  usage  fees 
payable to the ICTA and personnel income taxes payable. 

Accrued selling and marketing expenses mainly result from services received from third parties related 
to the marketing activities of the Group, but not yet invoiced. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments 

The fair value of derivative financial instruments at 31 December 2020 and 2019 are attributable to the 
following: 

31 December 2020 

31 December 2019 

Held for trading 

Derivatives used for hedging 

Total 

Assets 

360,047 
642,623 

1,002,670 

Liabilities 

41,132 
66,851 

107,983 

Assets 

443,880 

483,448 

927,328 

Liabilities 

72,539 

- 

72,539 

the 

financial  assets  of  TL  917,437  
At  31  December  2020, 
total  held 
interest  expense  of  TL  85,233  
(31  December  2019:  TL  845,513)  also 
(31  December  2019:  TL  81,815)  and  the  total  held  for  trading  derivative  financial  liabilities  of  TL  119,111  
(31  December  2019:  TL  86,617)  also 
interest  expense  of  TL  11,128  
(31 December 2019: TL 14,078). 

for 
includes  a  net  accrued 

includes  a  net  accrued 

trading  derivative 

Derivatives used for hedging 

Participating cross currency swap and cross currency swap contracts 

The notional amount and the fair value of participating cross currency swap and cross currency  swap 
contracts for hedging purposes at 31 December 2020 are as follows: 

Sell 

Buy 

Currency 

Notional 
amount 

Currency 

Notional 
amount  Fair Value 

Maturity 

Participating cross currency swap contracts 

TL 
TL 
TL 
TL 
TL 
TL 
TL 
TL 
TL 
TL 
TL 

1,903,692 
239,107 
118,650 
224,536 
220,055 
184,622 
159,500 
156,999 
125,231 
92,887 
85,206 

EUR 
EUR 
EUR 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 

366,800 
48,012 
17,146 
40,010 
40,010 
32,008 
28,007 
24,006 
20,005 
16,004 
16,004 

Cross currency swap contracts 

TL 

99,127 

RMB 

162,121 

Derivatives used for hedge accounting financial assets 

221,937 
17,202 
35,940 
55,830 
42,674 
42,554 
42,068 
14,793 
27,096 
17,169 
28,131 

97,229 

642,623 

23 October 2025 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 

22 April 2026 

EUR 414,812 participating cross currency swap contracts includes TL 1,121,303 guarantees after the CSA 
agreement. 

74 

75 

369

A
B
O
U
T

T
U
R
K
C
E
L
L

V
A
L
U
E

I

C
R
E
A
T
N
G
T
U
R
K
C
E
L
L

S
T
R
O
N
G
C
O
R
P
O
R
A
T
E
G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

C
A
P

I

T
A
L

H
U
M
A
N

C
A
P

I

T
A
L

M
A
N
U
F
A
C
T
U
R
E
D

C
A
P

I

T
A
L

I

N
T
E
L
L
E
C
T
U
A
L

C
A
P

I

T
A
L

O
U
R

S
O
C
A
L

I

V
A
L
U
E
S

A
N
D

R
E
L
A
T
O
N
S

I

N
A
T
U
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A
L

C
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P

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T
A
L

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P
E
N
D

I

C
E
S

Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
370

 F76

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F77

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Interest rate swap contracts 

35.  Derivative financial instruments (continued) 

Held for trading (continued) 

The notional amount and the fair value of interest rate swap contracts for hedging purposes at 31 December 
2020 are as follows: 

Sell 

Buy 

Currency 

Interest rate swap contracts 

Notional  
amount 

  Currency 

Notional 
amount  Fair Value 

USD 
USD 
USD 
USD 

80,020 
40,010 
32,008 
28,007 

USD 
USD 
USD 
USD 

Derivatives used for hedge accounting financial liabilities 

80,020 
40,010 
32,008 
28,007 

(31,749) 
(15,112) 
(10,656) 
(9,334) 

 (66,851)   

Maturity 

22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 

Held for trading 

Cross currency swap, participating cross currency swap, FX swap and interest rate swap contracts 

The notional amount and the fair value of cross currency swap, participating cross currency swap, FX 
swap and interest rate swap contracts for hedging purposes at 31 December 2020 are as follows: 

Sell 

Buy 

Currency 

Notional 
amount 

   Currency 

Notional 
amount 

Fair Value 

Maturity 

Cross currency swap contracts 

TL 

TL 
TL 
TL 

45,504 
99,154 

98,537 
30,707 

EUR 
USD 

USD 
RMB 

Participating cross currency swap contracts 
EUR 
218,295 
EUR 
148,117 

TL 

TL 
TL 
TL 
TL 
TL 

146,677 
73,747 
98,295 
95,944 

EUR 
EUR 
USD 
USD 

7,200 
17,143 

17,143 
38,801 

32,008 
24,006 

24,006 
10,861 
16,004 
16,004 

20,853 

31,140 
31,575 
14,535 

67,361 

62,688 
80,075 
19,909 
13,356 
17,978 

23 September 2021 

20 March 2023 
20 March 2023 
22 April 2026 

22 April 2026 

22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 

FX swap contracts 

TL 

73,135 

USD 

10,000 

319 

6 January 2021 

Interest rate swap contracts 

USD 

17,778 

USD 

17,778 

258 

29 September 2028 

FX swap, interest swap and participating cross currency swap contracts 

The notional amount and the fair value of FX swap, interest swap and participating cross currency swap 
contracts for hedging purposes at 31 December 2020 are as follows: 

Sell 

Buy 

Currency 
FX swap contracts 

Notional amount 

   Currency 

EUR 
EUR 
TL 
TL 
RMB 

5,000 
33,000 
186,488 
73,865 
10,500 

USD 
USD 
USD 
USD 
USD 

Interest swap contracts 

Notional 
amount 

6,116 
40,075 
25,000 
10,000 
1,544 

Fair Value 

Maturity 

(148) 
(3,148) 
(2,851) 
(411) 
(488) 

5 January 2021 
12 January 2021 
6 January 2021 
6 January 2021 
13 January 2021 

USD 

22,222 

USD 

22,222 

(1,141) 

29 September 2028 

Participating cross currency swap contracts 

TL 
TL 

195,850 
155,340 

Cross currency swap contracts 

TL 
TL 
TL 

188,851 
224,100 
154,600 

USD 
USD 

EUR 
EUR 
USD 

25,000 
20,000 

19,900 
24,000 
20,000 

Total held for trading derivative financial liabilities 

(3,811) 
(5,890) 

20 November 2025 
20 November 2025 

(11,663) 
(2,021) 
(6,747) 
(38,319) 

2 December 2021 
21 December 2022 
20 November 2025 

Currency forward contracts 

The  notional  amount  and  the  fair  value  of  currency  forward  contracts  for  trading  purposes  at  
31 December 2020 are as follows: 

Buy 

Currency 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 

Notional 
amount 
500 
500 
500 
500 
500 
500 
500 
500 
500 
500 
500 
500 

Fair Value 
(194) 
(212) 
(216) 
(221) 
(226) 
(232) 
(237) 
(242) 
(250) 
(253) 
(262) 
(268) 
(2,813) 

Maturity 
31 January 2021 
28 February 2021 
31 March 2021 
30 April 2021 
29 May 2021 
30 June 2021 
31 July 2021 
31 August 2021 
30 September 2021 
30 October 2021 
30 November 2021 
31 December 2021 

371

A
B
O
U
T

T
U
R
K
C
E
L
L

V
A
L
U
E

I

C
R
E
A
T
N
G
T
U
R
K
C
E
L
L

S
T
R
O
N
G
C
O
R
P
O
R
A
T
E
G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

C
A
P

I

T
A
L

H
U
M
A
N

C
A
P

I

T
A
L

M
A
N
U
F
A
C
T
U
R
E
D

C
A
P

I

T
A
L

I

N
T
E
L
L
E
C
T
U
A
L

C
A
P

I

T
A
L

O
U
R

S
O
C
A
L

I

V
A
L
U
E
S

A
N
D

R
E
L
A
T
O
N
S

I

N
A
T
U
R
A
L

C
A
P

I

T
A
L

A
P
P
E
N
D

I

C
E
S

Held for trading derivative financial assets 

360,047 

Held for trading derivative financial liabilities 

76 

77 

Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
372

 F78

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F79

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Derivatives used for hedging 

Participating cross currency swap and cross currency swap contracts 

The notional amount and the fair value  of participating cross currency swap  and cross currency  swap 
contracts for hedging purposes at 31 December 2019 are as follows: 

Sell 

Notional 
amount 

Currency 

Buy 

Currency 

Notional 
amount  Fair Value 

Maturity 

Participating cross currency swap contracts 

TL 
TL 
TL 
TL 
TL 
TL 
TL 
TL 

1,820,280 
257,478 
85,593 
145,000 
128,833 
97,833 
64,667 
245,951 

Cross currency swap contracts 

EUR 
EUR 
USD 
USD 
USD 
USD 
USD 
USD 

433,400 
56,004 
18,668 
50,000 
33,333 
33,333 
16,667 
46,670 

148,066 
7,675 
21,581 
97,030 
57,280 
63,358 
28,394 
9,893 

23 October 2025 
22 April 2026 
22 April 2026 
16 September 2020 
16 September 2020 
16 September 2020 
16 September 2020 
22 April 2026 

TL 

115,628 

RMB 

189,107 

50,171 

22 April 2026 

Derivatives used for hedge accounting financial assets 

   483,448   

EUR 489,404 participating cross currency swap contracts includes TL 833,786 guarantees after the CSA 
agreement. 

35.  Derivative financial instruments (continued) 

Held for trading 

Cross currency swap, participating cross currency swap, FX swap and option contracts 

The notional amount and the fair value of cross currency swap, participating cross currency swap, FX 
swap and option contracts for hedging purposes at 31 December 2019 are as follows: 

Sell 

Buy 

Currency 

Notional 
amount 

   Currency 

Notional 
amount 

Fair Value 

Maturity 

Cross currency swap contracts 

TL 
TL 
TL 
TL 
TL 
TL 

TL 

242,873 
269,451 
137,952 
138,816 
84,224 
91,008 

35,818 

USD 
USD 
USD 
USD 
EUR 
EUR 

RMB 

Participating cross currency swap contracts 
EUR 
EUR 
EUR 
EUR 

172,772 
171,092 
227,750 
77,520 

TL 
TL 
TL 
TL 

TL 
TL 
TL 
TL 
TL 
TL 

FX swap contracts 

USD 
USD 
Option contracts 

EUR 
USD 

261,912 
108,349 
135,051 
215,354 
174,000 
186,050 

20,000 
20,000 

25,000 
50,000 

USD 
USD 
USD 
USD 
USD 
USD 

TL 
TL 

USD 
TL 

Held for trading derivative financial assets 

70,500 
70,500 
24,000 
24,000 
15,040 
14,400 

45,259 

28,002 
28,002 
37,336 
12,000 

46,670 
18,668 
23,335 
37,336 
30,000 
32,669 

178,968 
148,452 
5,625 
5,044 
10,691 
5,141 

944 

        16 September 2020 
22 December 2020 
20 March 2023 
23 March 2023 
23 September 2021 
23 September 2021 

22 April 2026 

9,904 
        21,355 
               8,705 
1,097 

12,195 
3,930 
             4,674 
7,813 
1,506 
9,936 

22 April 2026 
22 April 2026 
22 April 2026 
16 September 2020 

22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 
15 June 2026 
22 April 2026 

117,860 
117,900 

67 
                51   

27 February 2020 
27 February 2020 

28,038 
275,000 

186 
11 
 436,295 

3 January 2020 
3 January 2020 

78 

79 

373

A
B
O
U
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T
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C
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L
L

V
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A
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N
G
T
U
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C
E
L
L

S
T
R
O
N
G
C
O
R
P
O
R
A
T
E
G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

C
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P

I

T
A
L

H
U
M
A
N

C
A
P

I

T
A
L

M
A
N
U
F
A
C
T
U
R
E
D

C
A
P

I

T
A
L

I

N
T
E
L
L
E
C
T
U
A
L

C
A
P

I

T
A
L

O
U
R

S
O
C
A
L

I

V
A
L
U
E
S

A
N
D

R
E
L
A
T
O
N
S

I

N
A
T
U
R
A
L

C
A
P

I

T
A
L

A
P
P
E
N
D

I

C
E
S

Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
374

 F80

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F81

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Held for trading (continued) 

Currency forward contracts 

The  notional  amount  and  the  fair  value  of  currency  forward  contracts  for  trading  purposes  at  
31 December 2019 are as follows: 

Buy 

Currency 
USD 
USD 
USD 
USD 
USD 
USD 
USD 

Notional 
amount 
 30,000   
 7,500   
 7,500   
 10,000   
 10,000   
 7,500   
 7,500   

Held for trading derivative financial assets 

Fair Value 
 2,081   
 952   
 916   
 1,038   
 1,016   
 797   
 785   
7,585 

Maturity 
28 February 2020 
30 March 2020 
29 June 2020 
30 March 2020 
29 June 2020 
30 March 2020 
29 June 2020 

FX swap, interest swap and participating cross currency swap contracts 

The notional amount and the fair value of FX swap, interest swap and participating cross currency swap 
contracts for hedging purposes at 31 December 2019 are as follows: 

Sell 

Buy 

Currency 

Notional amount 

   Currency 

Notional 
amount  Fair Value 

Maturity 

FX swap contracts 

EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
TL 

Interest swap contracts 

USD 
USD 
USD 
USD 

50,000 
75,000 
175,000 
50,000 
50,000 
85,000 
90,000 
20,000 
175,000 
50,000 
70,000 
90,000 
50,000 
11,211 

93,340 
46,670 
37,336 
32,669 

Participating cross currency swap contracts 

TL 
TL 

105,848 
162,552 

USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 
USD 

USD 
USD 
USD 
USD 

USD 
USD 

Total held for trading derivative financial liabilities 

80 

55,488 
83,232 
194,560 
55,588 
55,588 
94,397 
100,492 
22,332 
195,346 
55,825 
78,154 
100,484 
55,825 
1,860 

93,340 
46,670 
37,336 
32,669 

18,668 
28,002 

(3,005) 
(4,512) 
(8,508) 
(2,432) 
(2,434) 
(4,748) 
(2,301) 
(510) 
(4,875) 
(1,448) 
(2,036) 
(2,612) 
(1,448) 
(3) 

(7,802) 
(3,101) 
(959) 
(849) 

(14,265) 
(4,691) 
      (72,539) 

07 January 2020 
07 January 2020 
08 January 2020 
08 January 2020 
    08 January 2020 
08 January 2020 
21 January 2020 
21 January 2020 
22 January 2020 
28 January 2020 
28 January 2020 
28 January 2020 
28 January 2020 
28 February 2020 

22 April 2026 
22 April 2026 
22 April 2026 
22 April 2026 

22 April 2026 
22 April 2026 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Fair value of derivative instruments and risk management 

This section explains the judgments and estimates made in determining the fair values of the financial 
instruments  that  are  recognized  and  measured  at  fair  value  in  the  financial  statements.  To  provide  an 
indication  of  the  reliability  of  the  inputs  used  in  determining  fair  value,  the  Group  has  classified  its 
financial instruments into the three levels prescribed under the accounting standards. An explanation of 
each level is as follows: 

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the 
entity can access at the measurement date; 

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the 
asset or liability, either directly or indirectly; and 

• Level 3 inputs are unobservable inputs for the asset or liability. 

Fair values 

a) Participating cross 
currency swap 
contracts (*) 

-Held for trading 

-Derivatives used for 
hedging 

b) FX swap, currency, 
interest swap and 
option contracts 

31 December 
 2020 

31 December  
2019 

Fair Value 
hierarchy 

  Valuation Techniques 

797,060 

495,436 

Level 3 

  Pricing models based on 

discounted cash Present value of 
the estimated future cash flows 
based on unobservable yield 
curves and end period FX rates 

251,666 

545,394 

62,159 

433,277 

100,440 

351,768 

Level 2 

  Present value of the estimated 
future cash flows based on 
observable yield curves and end 
period FX rates 

-Held for trading 

70,062 

301,597 

-Derivatives used for 
hedging 

c) Currency forward 
contracts 

30,378 

50,171 

(2,813) 

7,585 

Level 2 

  Forward exchange rates at the 

balance sheet date 

-Held for trading 

(2,813) 

7,585 

(*) Since the bid-ask spread is unobservable input; in the valuation of participating cross currency swap contracts, prices in the 
bid- ask price range that were considered the most appropriate were used instead of mid prices. If mid prices were used in the 
valuation  the  fair  value  of  participating  cross  currency  swap  contracts  would  have  been  TL  168,882  lower  as  at  
31 December 2020 (31 December 2019: TL 116,684). 

There were no transfers between fair value hierarchy levels during the year.

81 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
378

 F84

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F85

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Fair value of derivative instruments and risk management (continued) 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Fair value of derivative instruments and risk management (continued) 

Movements in the participating cross currency swap contracts for the years ended 31 December 2020 and 
31 December 2019 are stated below:  

Currency risk 

Opening balance 
Cash flow effect 
Total gain/loss: 

Gains recognized in profit or loss 

Closing balance 

Net off / Offset 

31 December 
2020 
495,436 
(695,892) 

31 December 
2019 
653,142 
(582,580) 

997,516 
797,060 

424,874 
495,436 

The Company signed a Credit Support Annex (CSA) against the default risk of parties in respect of a 
EUR 366,800 participating cross currency swap transaction executed on 15 July 2016 and restructured 
respectively on 26 May 2017 and 9 August 2018. Additionally, in the 25 June 2019, The Company signed 
a new CSA to EUR 48,012 participating cross currency swap transaction. As per the CSA, the swap’s 
current (mark-to-market) value will be determined on the 10th and 24th calendar day of each calendar 
month,  and  if  the  mark-to-market  value  is  positive  and  exceeds  a  certain  threshold,  the  bank  will  be 
posting cash collateral to the Company which will be equal to an amount exceeding the threshold (i.e. if 
the mark-to-market value is negative, the Company would be required to post collateral to the bank by an 
amount exceeding the threshold). 

With respect to valuations, on a bi-weekly basis, a transfer will take place between the parties only if the 
mark-to-market  value  changes  by  at  least  EUR  1,000.  Following  the  execution  of  CSA,  the  bank 
transferred to the Company EUR 268,563 as collateral (31 December 2020: TL 2,419,189) which was the 
amount  exceeding  the  threshold  and  the  Company  transferred  EUR  144,083  as  collateral  to  the  bank  
(31  December  2020:  TL  1,297,886)  which  was  the  amount  exceeding  the  threshold.  The  Company 
clarified this with the derivative assets included in the statement of financial position because it has the 
legal right to offset the collateral amount TL 1,121,303 that it recognizes under the borrowings and intends 
to pay according to the net fair value. This amount was netted from the borrowings and deducted from 
the  derivative  instruments  in  the  balance  sheet.  As  of  31  December  2020,  were  this  transaction  not 
conducted, derivative financial instruments assets would have been TL 2,038,740 and current borrowings  
TL 6,354,040. 

Market risk 

The Group uses various types of derivatives to manage market risks. All such transactions are carried out 
within the guidelines set by the treasury and risk management department. Generally, the Group seeks to 
apply hedge accounting to manage volatility in profit or loss. 

The Group’s risk management policy is to hedge its estimated foreign currency exposure in respect of 
borrowing  payments  with  various  maturities  at  any  point  in  time.  The  Group  uses  participating  cross 
currency contracts to hedge its currency risk, mostly with a maturity of over one year from the reporting 
date. These contracts are generally designated as cash flow hedges. 

The Group designates the hedge ratio, between the amount of the hedged item and the hedging instrument 
is 1:1 to hedge its currency risk. 

The time value of options in participating cross currency swap contracts are included in the designation 
of the hedging instrument and are separately accounted for as a cost of hedging, which is recognized in 
equity in a cost of hedging reserve. The Group’s policy is for the critical terms of the participating cross 
currency contracts to align with the hedged item. 

The Group determines the existence of an economic relationship between the hedging instruments and 
hedged item based on the currency, amount and timing of their respective cash flows. The Group assesses 
whether the derivative designated in each hedging relationship is expected to be and has been effective in 
offsetting changes in cash flows of the hedged item using the hypothetical derivative method. 

In these hedge relationships, the main sources of ineffectiveness are; 
- The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of 
the hedged risk and associated credit risk considered to be very low at inception in the fair value of the 
hedged cash flows attributable to the change in exchange rates;  

- The entire fair value of the derivative contracts including currency basis was designated as the hedging 
instrument in cash flow hedge. The hypothetical derivative is modelled to exclude the impact of currency 
basis. 

Interest rate risk 

The Group adopts a policy of ensuring that its interest rate risk exposure is at a fixed rate. This is achieved 
partly by entering into fixed-rate instruments and partly by borrowing at a floating rate and using cross 
currency and interest rate swaps as hedges of the variability in cash flows attributable to movements in 
interest rates. The Group applies a hedge ratio of 1:1. 

The Group determines the existence of an economic relationship between the hedging instrument and 
hedged item based on the reference interest rates, tenors, repricing dates and maturities and the notional 
or par amounts. 

The  Group  assesses  whether  the  derivative  designated  in  each  hedging  relationship  is  expected  to  be 
effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. 

In these hedge relationships, the main sources of ineffectiveness are: 

- The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of 
the hedged risk and associated credit risk considered to be very low at inception in the fair value of the 
hedged cash flows attributable to the change in interest rates;  

84 

85 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
380

 F86

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

35.  Derivative financial instruments (continued) 

Fair value of derivative instruments and risk management (continued) 

Cash flow sensitivity analysis for variable-rate instruments 

A reasonable potential change of 100 basis points in interest rates and 10% change in foreign exchange 
currency at the reporting date would have increased (decreased) equity and profit or loss by the amounts 
shown below. This analysis assumes that all other variables remain constant. 

Profit or Loss 

100 bp 
increase 

100 bp 
decrease 

Equity, net of tax 

100 bp 
increase 

100 bp 
decrease 

  1,158,627  
       49,843  
  1,208,470  

849,915  
45,528  
895,443  

Profit or Loss 

100 bp 
increase 

100 bp 
decrease 

(516,772) 
11,132 
(505,640)  

(247,934) 
12,642 
     (235,292)  

Equity, net of tax 

100 bp 
increase 

100 bp 
decrease 

    376,920  
17,631  
    394,551  

   519,967  
         16,516  

536,483     

(102,693)  
(16,644)  
   (119,337)  

  (180,974)  
    (18,114)    
   (199,088)  

31 December 2020 
Participating cross currency swap 
contracts  
Cross currency swap contracts 
Cash Flow sensitivity (net) 

31 December 2019 
Participating cross currency swap 
contracts  
Cross currency swap contracts 
Cash Flow sensitivity (net) 

36.  Financial instruments 

Credit risk  

Exposure to credit risk: 

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure 
to credit risk at the reporting date is: 

Trade receivables  
Contract assets 
Receivables from financial services 
Cash and cash equivalents (*) 
Derivative financial instruments 
Other current & non-current assets (**) 
Financial assets at amortized cost 
Financial assets at fair value through other 
comprehensive income 
Due from related parties 

19 
21 
20 
24 
35 
23 

25 

2020   
3,688,248   
1,100,166   
1,962,098   
11,860,376   
917,437   
124,822   
172,363   

529,610   
16,476   
20,371,596    

2019 
3,282,134 
944,260 
2,442,258 
10,238,584 
845,513 
98,736 
5,368 

345,602 
4,477 
18,206,932 

(*) Cash in hand is excluded from cash and cash equivalents. 

(**) Prepaid expenses, VAT receivable, receivable from the Ministry of Transport and Infrastructure of 
Turkey, other and advances given are excluded from other current assets and other non-current assets. 

86 

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8

TURKCELL ILETISIM HIZMETLERI AS 

F89

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

36.  Financial instruments (continued) 

Impairment losses 

Individual  receivables,  which  are  known  to  be  uncollectible  are  written  off  by  reducing  the  carrying 
amount directly. The other receivables are assessed collectively to determine whether there is objective 
evidence that an impairment has been incurred but not yet identified. The Group considers that there is 
evidence of impairment if any of the following indicators are present: 

  Significant financial difficulties of the customer, 

  Probability that the customer will enter bankruptcy or financial reorganization and 

  Default or delinquency in payments.  

Receivables for which an impairment provision was recognized are written off against the provision when 
there is no expectation of recovering additional cash. 

Impairment losses are recognized in profit or loss within net impairment losses on financial and contract 
assets  (Note  10).  Subsequent  recoveries  of  amounts  previously  written  off  are  credited  against  Net 
impairment losses on financial and contract assets (Note 10). 

Movements in the provision for impairment of trade receivables, contract assets, other assets and due from 
related parties are as follows: 

Opening balance  
Provision for impairment recognized during the year 
Amounts collected 
Receivables written off during the year as uncollectible 
Disposal of subsidiaries 
Exchange differences 
Closing balance 

Opening balance  
Provision for impairment recognized during the year 
Amounts collected 
Transfer 
Receivables written off during the year as uncollectible 
Exchange differences 
Closing balance 

31 December 
2020 
Contract Asset 
             4,690 
553 
- 
- 
- 
- 
5,243 

31 December 
2019 
Contract Asset 
               7,370 

1,105     
- 
(3,785) 
- 
- 
             4,690 

31 December 
2020 
Other Asset 
627,578 
452,506 
(153,674) 
(300,119) 
(49) 
1,138 
627,380 

31 December 
2019  
Other Asset 

730,811   
376,107   

(147,858) 
3,785 
(346,049) 

10,782   
627,578 

89 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
384

 F90

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

36.  Financial instruments (continued) 

Impairment losses (continued) 

Movements in the provision for impairment of trade receivables, subscriber receivables, other assets and 
cash and cash equivalents from financial services are as follows: 

Opening balance  
Provision for impairment recognized during the year 
Amounts collected 
Receivables written off during the year as uncollectible 
Exchange differences 
Unused amount reversed (*) 
Closing balance 

31 December 
2020 
163,500 
126,246 
(76,036) 
- 
(96) 
(59,066) 
154,548 

31 December 
2019  
200,273   
245,365   

(135,862) 
(147,067) 

791   
- 
163,500 

(*) Turkcell Finansman signed a transfer of claim agreement with a debt management company to transfer some of its doubtful 
receivables  stemming  from  the  years  2016  and  2019.  Transferred  doubtful  receivables  comprise  of  balances  that  Turkcell 
Finansman started legal proceedings for.

90 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
386

 F92

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F93

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

36.  Financial instruments (continued) 

Foreign exchange risk 

The  Group’s  exposure  to  foreign  exchange  risk  at  the  end  of  the  reporting  period,  based  on  notional 
amounts, was as follows: 

Foreign currency denominated assets 
Other non-current assets 
Financial asset at fair value through other 
comprehensive income 
Due from related parties - current 
Trade receivables and contract assets 
Other current assets  
Cash and cash equivalents 

Foreign currency denominated liabilities 
Loans and borrowings - non-current 
Debt securities issued - non-current 
Lease obligations - non-current 
Other non-current liabilities 
Loans and borrowings - current 
Debt securities issued - current 
Lease obligations - current 
Trade and other payables - current 
Due to related parties 

          31 December 2020 
EUR 

USD 

RMB 

               69  

               11  

                 -  

          8,848  
                -  
        13,234  
        11,769  
   1,061,644  
1,095,564 

    (342,930) 
    (940,137) 
        (6,822) 
(64,829) 
      (85,526) 
      (55,938) 
           (721) 
    (174,039) 
                  -  
(1,670,942) 

        64,956  
                  -  
        15,239  
          3,737  
        85,856  
169,799 

    (543,680) 
                  -  
      (17,000) 
                  -  
    (244,057) 
                  -  
        (3,598) 
      (23,944) 
             (11) 
    (832,290) 

                 -  
                 -  
                 -  
                 -  
         4,801  
4,801 

   (160,398) 
                 -  
                 -  
                 -  
     (92,931) 
                 -  
                 -  
   (487,738) 
                 -  
   (741,067) 

Loans defined as hedging instruments (*) 
Exposure related to derivative instruments 
Participating cross currency swap and FX swap contracts 
Currency forward contracts 
Net exposure 

- 

164,634 

- 

      440,036  
      256,118  
120,776 

      535,939  
                  -  
38,082 

     190,421  
                 -  
(545,845) 

(*) The Company designated EUR 164,634 of bank loan, as hedging instruments in order to hedge the 
foreign currency risk arising from the translation of net assets of the subsidiaries operating in Europe from 
EUR to Turkish Lira. Foreign exchange gains/losses of the related loans are recognized under equity as 
“gains/(losses) on net investment hedges” in order to offset the foreign exchange gains/(losses) arising 
from the translation of the net assets of investments in foreign operations to Turkish Lira. 

36.  Financial instruments (continued) 

Foreign exchange risk (continued) 

Foreign currency denominated assets 
Other non-current assets 
Financial asset at fair value through other 
comprehensive income 
Due from related parties - current 
Trade receivables and contract assets 
Other current assets  
Cash and cash equivalents 

Foreign currency denominated liabilities 
Loans and borrowings - non-current 
Debt securities issued - non-current 
Lease obligations - non-current 
Other non-current liabilities 
Loans and borrowings - current 
Debt securities issued - current 
Lease obligations - current 
Trade and other payables - current 
Due to related parties 

          31 December 2019 
EUR 

USD 

RMB 

71 

5,412 

1,393 
152 
17,383 
10,602 
173,376 
202,977 

(351,444) 
(923,188) 
(2,399) 
(60,529) 
(402,507) 
(55,060) 
(725) 
(156,320) 
(1,022) 
(1,953,194) 

50,721 
581 
38,496 
4,979 
1,203,574 
1,303,763 

(577,675) 
- 
(19,282) 
- 
(385,371) 
- 
(5,178) 
(44,103) 
(51) 
(1,031,660) 

- 

- 
- 
- 
- 
- 
- 

(192,367) 
- 
- 
- 
(44,880) 
- 
- 
(555) 
- 
(237,802) 

Loans defined as hedging instruments 
Exposure related to derivative instruments 
Participating cross currency swap and FX swap contracts 
Net exposure 

- 

145,105 

- 

1,830,226 
80,009 

(430,816) 
(13,608) 

234,367 
(3,435) 

92 

93 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
388

 F94

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F95

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

36.  Financial instruments (continued) 

Exposure to currency risk 

Sensitivity analysis 

The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency 
 composed of all assets and liabilities denominated in 
exposure. The aggregate foreign exchange exposure is 
foreign currencies, the analysis excludes net foreign currency investments. 

A  10%  strengthening/weakening  of  the  TL,  UAH,  BYN,  EUR  against  the  following  currencies  as  at  
31  December  2020  and  31  December  2019  would  have  increased/(decreased)  profit  or  loss  before  by  the 
amounts  shown  below.  This  analysis  assumes  that  all  other  variables,  in  particular  interest  rates,  remain 
constant. 

Sensitivity analysis 
31 December 2020 

Profit/(Loss) 

Equity 

Appreciation of 
foreign currency 

Depreciation of 
foreign currency 

Appreciation of 
foreign currency 

Depreciation of 
foreign currency 

88,656 
- 
                    88,656   

(88,656) 
- 
              (88,656) 

- 
 (14,984) 
           (14,984) 

- 
14,984  
             14,984  

1- USD net asset/liability 
2- Hedged portion of USD risk (-) 

3- USD net effect (1+2) 

4- EUR net asset/liability 
5- Hedged portion of EUR risk (-) 

6- EUR net effect (4+5) 

34,304  
                              -  
34,304  

7- Other foreign currency net asset/liability 

(RMB) 

8- Hedged portion of other foreign currency risk 

(-) (RMB) 

9- Other foreign currency net effect (7+8) 
Total (3+6+9) 

 (61,036) 

                              -  
 (61,036) 
61,924 

 (34,304) 
-  
 (34,304) 

61,036  

-  
61,036  
(61,924) 

-  
 (79,669) 
 (79,669) 

-  

 (192) 
 (192) 
 (94,845) 

-  
79,669  
79,669  

-  

192  
192  
94,845 

Sensitivity analysis 
31 December 2019 

Profit/(Loss) 

Equity 

Appreciation of 
foreign currency 

Depreciation of 
foreign currency 

Appreciation of 
foreign currency 

Depreciation of 
foreign currency 

(47,527) 
- 
(47,527) 

9,050 
- 
9,050 

290 

- 
290 
(38,187) 

- 
(6,135) 
(6,135) 

- 
(39,558) 
(39,558) 

- 

(1,379) 
(1,379) 
(47,072) 

- 
6,135 
6,135 

- 
39,558 
39,558 

- 

1,379 
1,379 
47,072 

1- USD net asset/liability 
2- Hedged portion of USD risk (-) 

3- USD net effect (1+2) 

4- EUR net asset/liability 
5- Hedged portion of EUR risk (-) 

6- EUR net effect (4+5) 

7- Other foreign currency net asset/liability 

(RMB) 

8- Hedged portion of other foreign currency risk 

(-) (RMB) 

9- Other foreign currency net effect (7+8) 
Total (3+6+9) 

47,527 
- 
47,527 

(9,050) 
- 
(9,050) 

(290) 

- 
(290) 
38,187 

94 

36.  Financial instruments (continued) 

Interest rate risk 

As at 31 December 2020 and 2019 the interest rate profile of the Group’s variable rate interest-bearing 
financial instruments was: 

31 December 2020 

31 December 2019 

Effective 
Interest 

  Note   

Rate   

Carrying  
Amount   

  Effective 
interest 

rate   

Carrying  
Amount 

Variable rate 
instruments 
     USD floating rate loans  29 
     EUR floating rate loans  29 

Sensitivity analysis 

3.2%   
2.2%   

(2,644,049) 
(5,660,654) 

4.4%   
2.2%   

(4,478,457) 
(5,638,726) 

Cash flow sensitivity analysis for variable rate instruments: 

An increase/decrease of interest rates by 100 basis points would have (decreased)/increased equity and 
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular 
foreign  exchange  rates,  remain  constant.  The  analysis  is  performed  on  the  same  basis  at 
31 December 2020 and 2019: 

Profit or loss 

Equity 

100 bps 
increase 

100 bps 
decrease 

100 bps 
increase 

100 bps 
decrease 

(23,510) 
(23,510)   

23,510 
23,510   

(225,528) 
(225,528)   

225,528 
225,528   

- 
-   

- 
-   

- 
- 

- 
- 

31 December 2020 
Variable rate instruments (financial 
liability) 
Cash flow sensitivity (net) 
31 December 2019 
Variable rate instruments (financial 
liability) 
Cash flow sensitivity (net) 

Fair values  

Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a 
recurring basis 
This section explains the judgments and estimates made in determining the fair values of the financial 
instruments  that  are  recognized  and  measured  at  fair  value  in  the  financial  statements.  To  provide  an 
indication about the reliability of the inputs used in determining fair value, the Group has classified its 
financial instruments into the three levels prescribed under the accounting standards. An explanation of 
each level is as follows: 

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the 
entity can access at the measurement date; 

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the 
asset or liability, either directly or indirectly; and 

• Level 3 inputs are unobservable inputs for the asset or liability. 

95 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
 
 
 
 
 
 
 
   
   
   
 
 
 
 
 
 
 
390

 F96

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F97

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

36.  Financial instruments (continued) 

Fair values (continued) 

Valuation inputs and relationships to fair value 

36.  Financial instruments (continued) 

Fair values (continued) 

Financial liabilities (continued): 

The following table summarizes the quantitative information about the significant unobservable inputs 
used in level 3 fair value measurement of contingent consideration. 

Fair value at 

31  
December 
2020 

31 
December 
2019 

475,879 

359,554 

Contingent 
consideration  

Unobservable 
Inputs 

  Risk-adjusted 
discount rate 

  Expected 
settlement 
date 

Inputs 
31 
December 
2020 

31 
December 
2019 

  %4.3-%5.6 

5.2%-6.1% 

in 
instalments 
between 
2025-2030 

in 
instalments 
between 
2026-2030 

Relationship of unobservable inputs to 
fair value 

  An increase/decrease in the discount rate 
by 100 bps would change FV by  
TL (35,686) and TL 39,070, respectively.  
If expected settlement date 
increase/decrease by 1-year, FV would 
change by TL (23,724) and TL 24,978, 
respectively. 

As at 31 December 2020, the fair value of debt securities issued by the Company in 2015 and 2018 with 
a  nominal  value  of  USD  500,000  each  and  fixed  interest  rate  (Note  29),  is  TL  3,976,852  
(31 December 2019: TL 3,058,366) and TL 3,972,232 (31 December 2019: TL 2,961,300), respectively. 

Fair value of cash and cash equivalents and debt securities issued are classified as level 1 and fair value 
of other financial assets and liabilities are classified as level 2. 

37.  Guarantees and purchase obligations  

At 31 December 2020, outstanding purchase commitments with respect to property, plant and equipment, 
inventory,  advertising  and  sponsorship  amount  to  TL  840,208  (31 December 2019:  TL  819,508). 
Payments for these commitments will be made within 4 years. 

The Group is contingently liable in respect of letters of guarantee obtained from banks and given to public 
institutions  and  private  entities,  and  financial  guarantees  provided  to  subsidiaries  amounting  to  
TL 4,146,811 at 31 December 2020 (31 December 2019: TL 4,842,015). 

Changes in the consideration payable in relation to acquisition of Belarusian Telecom for the years ended 
31 December 2020 and 31 December 2019 are stated below:  

38.  Commitments and Contingencies 

Opening balance 
Losses recognized in profit or loss 
Closing balance 

Financial assets:  

2020 
359,554 
116,325 
475,879 

2019 
358,304 
1,250 
359,554 

Carrying  values  of  a  significant  portion  of  financial  assets  do  not  differ  significantly  from  their  fair 
values due to their short-term nature. Fair values of financial assets are presented in Note 25. 

Financial liabilities: 

As at 31 December 2020 and 31 December 2019; for the majority of the borrowings, the fair values are 
not materially different to their carrying amounts since the interest payable on those borrowings is either 
close  to  current  market  rates  or  the  borrowings  are  of  a  short  term  nature.  Material  differences  are 
identified only for the following borrowings: 

As at 31 December 2020: 

Bank loans 

As at 31 December 2019: 

Bank loans 

Carrying 
amount 
4,615,559  

Carrying 
amount 
4,149,275 

Fair  
value 
4,646,152 

Fair  
value 
4,192,304   

The following disclosures comprise of material lawsuits and investigations against the Company. 

Disputes on Special Communication Tax and Value Added Tax 

Disputes on SCT for the year 2011  

The Large Taxpayers Office levied Special Communication Tax (SCT) and tax penalty on the Company 
as a result of the Tax Investigation for the year 2011. The Company filed lawsuits for the cancellation of 
the notification regarding the aforementioned SCT assessment. The court partially accepted and partially 
rejected the  cases  and  the  parties  appealed  the  decisions  regarding  the  parts  against  them.  The  Large 
Taxpayers Office has collected TL 80,355 calculated for the parts against the Company for the assessment 
of the SCT for the year 2011 by offsetting the receivables of the Company from Public Administrations. 
While the cases are pending before the court of appeal the Company filed application for the restructuring 
as per Law no. 6736. The tax Office has rejected the application. The Company has also filed a case for 
the cancellation of aforementioned rejection act of the Tax Office. In this case, with the decision that 
notified  to  the  Company  on  14  April  2020,  the  Council  of  State  decided  to  cancel  the  rejection  act 
regarding the application for the restructuring. The Large Taxpayers Office and Ministry of Treasury and 
Finance appealed the decision. The Company replied the appeal request in due time. The appeal process 
is pending. 

In the cases regarding the cancellation of the SCT assessment for the year 2011, Council of State accepted 
the appeal and decided to reverse the first instance court decisions in favor of the Company, on the ground 
that; in the case filed for the cancellation of the rejection act regarding the request to restructure the cases 
filed for the year 2011, the court decided in favor of the Company and since the mentioned case will 
affect these cases, finalization of the respective decision should be waited. The Large Taxpayers Office 
applied for the correction of the decisions. The Company replied to application for the correction of the 
decisions.  The  Council  of  State,  rejected  the  correction  of  decision  requests  of  the  Large  Taxpayers 
Office, in favor of the Company.   

96 

97 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
392

 F98

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F99

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

38.  Commitments and Contingencies (continued) 

Disputes regarding the Law on the Protection of Competition 

The  investigation  initiated  by  the  Competition  Board  with  respect  to  the  practices  of  the  Company 
regarding the distributors and their dealers in the distribution network. As a result of the investigation the 
Competition  Board  rejected  the  claims  that  Turkcell  determined  the  resale  price.  But  with  the  same 
decision, The  Competition  Board decided  to  apply  administrative  fine  on  the  Company  amounting  to  
TL 91,942, on the ground that the Company forced its sub dealers to actual exclusivity. The Company 
filed a lawsuit  on  8 December  2011 for the stay of  execution and  cancellation  of  the  aforementioned 
Board decisions regarding the parts against itself. The Court rejected the case. The Company appealed 
the decision, but the Council of State Plenary Session of the Chambers for Administrative Cases decided 
to  approve  the  first  instance  court’s  decision.  The  Company  made  an  individual  application  to  the 
Constitutional Court, against the respective decision within due time. The Constitutional Court process is 
pending. 

Also, the Large Taxpayers Office issued a payment order regarding the aforementioned administrative 
fine.  The  Company  has  not  made  any  payments  and  filed  a  lawsuit  for  the  stay  of  execution  and 
cancellation of the payment order. The Court accepted the case. The Large Taxpayers Office appealed 
the decision. As a result of the appeal process, due to the reverse decision of the Council of State about 
the first instance court decision, the case file was sent to the first instance court and the trial of the case 
is pending before the same. 

Three private companies filed a lawsuits against the Company in relation with this case claiming in total 
of TL 112,084 together with up to 3 times of the loss amount to be determined by the court for its material 
damages  by  reserving  its  rights  for  surpluses  allegedly.  Among  these  cases,  in  the  case  filed  for  the 
compensation of total TL 110,484 material damages together with compensation amounting to three times 
of the damage and interest, the court decided to reject the case in favor of the Company, at the hearing on 
12 June 2019. The plaintiff appealed the case before Regional Administrative Court. The appeal process, 
before Regional Administrative Court, is pending. The other cases are also pending. 

On  the  other  hand,  a  lawsuit  was  filed  by  a  third  party,  for  the  cancellation  of  the  part  of  the 
aforementioned  Competition  Board  decision,  regarding  the  rejection  of  the  claims  that  Turkcell 
determined the resale price. The Council of State cancelled this part of the aforementioned Competition 
Board  decision.  Thereafter  Competition  Board  launched  a  new  investigation  and  as  a  result  of  it  the 
Competition Board decided to apply administrative fine amounting to TL 91,942 on the Company. The 
Company has taken all legal actions by requesting the cancellation of the aforementioned decision and its 
withdrawal by the Competition Authority. The Competition Authority accepted some of the objections 
of the Company and reduced the administrative fine to TL 61,294 with its decision.  

The  aforementioned  fine  that  amount  of  TL  61,294  was  paid  with  twenty  five  percent  discount  on  
9 April 2020, in the amount of TL 45,971. Then, a lawsuit was filed on 10 April 2020 for cancellation of 
the aforementioned administrative fine. The hearing was held on 19 January 2021 in this case and it is 
expected that the court will grant a decision. 

Ministry of Commerce Administrative Fine 

As a result of the investigation conducted by the Ministry of Commerce for the year 2015, against the 
Company  due  to  the  alleged  violation  on  distance  contracts,  hire  purchase  agreements  and  subscriber 
agreements, Ministry of Commerce imposed an administrative fine in the amount of TL 138,173. The 
Company filed a lawsuit for the cancellation of the related transactions. The Court accepted the case in 
favor of the Company and cancelled the administrative fine. Istanbul Governorship appealed the decision 
before Regional Administrative Court. Regional Administrative Court rejected the appeal request in favor 
of the Company. Istanbul Governorship appealed the decision before the Council of State. The Company 
replied this request in due time. As a result of the appeal process, the Council of State decided to reverse 
the  Regional  Administrative  Court’s  decision  and  decided  to  send  the  case  file  to  the  Regional 
Administrative Court to redecide after having an expert examination. 

98 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

38.  Commitments and Contingencies (continued) 

ICTA Investigation Regarding the R&D Obligations (Period of 2013-2016) 

ICTA initiated an investigation on the obligation of investing to products in electronic communication 
network and communication services, partly from suppliers which have a R&D center in Turkey; partly 
from the products manufactured in Turkey by SME suppliers which are established to develop products 
or  systems  in  Turkey;  and  partly  from  products  that  are  certified  to  be  domestic  goods  within  the 
framework of the relevant legislation. As a result of the investigation ICTA has decided to imposed an 
administrative fine of TL 18,031 to Turkcell. The administrative fine notified to Turkcell on 29 January 
2021  and  was  paid  on 26 February  2021  as TL 13,523  with taking  on  the  account  the  early payment 
discount (1/4). The Company filed totally ten different lawsuits for the cancellation of the administrative 
fines. There has not been any progress in the cases yet. 

Based  on  the  management  opinion,  the  probability  of  an  outflow  of  resources  embodying  economic 
benefits  is  more  than  probable,  thus,  the  amount  of  TL  13,523  that  will  be  paid  in  February  2021  is 
recognized  as  liability  in  the  consolidated  financial  statements  as  at  and  for  the  period  ended  
31 December 2020 (31 December 2019: None). 

ICTA Investigation Regarding the R&D Obligations (Period of 2016-2017) 

ICTA initiated an investigation on the obligation of investing to products in electronic communication 
network and communication services, partly from suppliers which have a R&D center in Turkey; partly 
from the products manufactured in Turkey by SME suppliers which are established to develop products 
or  systems  in  Turkey;  and  partly  from  products  that  are  certified  to  be  domestic  goods  within  the 
framework of the relevant legislation. As a result of the investigation ICTA has decided to imposed an 
administrative  fine  of  TL  31,139  to  Turkcell.  The  administrative  fine  notified  to  Turkcell  on  
29 January 2021 and was paid on 26 February 2021 as TL 23,354 with taking on the account the early 
payment discount (1/4).  The Company filed totally seven different lawsuits for the cancellation of the 
administrative fines.  There has not been any progress in the cases yet.  

Based  on  the  management  opinion,  the  probability  of  an  outflow  of  resources  embodying  economic 
benefits  is  more  than  probable,  thus,  the  amount  of  TL  23,354  that  will  be  paid  in  February  2021  is 
recognized  as  liability  in  the  consolidated  financial  statements  as  at  and  for  the  period  ended  
31 December 2020 (31 December 2019: None). 

Other ongoing lawsuits and tax investigations 

In  2019,  JSC  Kazakhtelecom  initiated  arbitration  proceedings  against  the  Company  related  to  its 
acquisition of JSC Kcell shares, which was subsidiary of the Fintur. The total claim against Turkcell and 
other shareholder Telia Company A.B. amounts to TL 484  million (USD 66 million) plus interest, of 
which Turkcell’s share amounts to TL 137 million (USD 19 million) under the scope of agreements signed 
by parties. The arbitration proceeding continues. 

On the other hand, JSC Kazakhtelecom has initiated another arbitration case against the Company and 
Telia Company A.B with the claim of indemnification due to revocation of a frequency license.  At the 
current stage, the total claim has not been specified by JSC Kazakhtelecom. The arbitration proceeding 
continues. 

Probability of an outflow of resources embodying economic benefits for 2018 and 2019 fiscal years with 
regards to notification of Information and Communication Technologies Authority for radio fee related 
to 2018 fiscal year was considered by the Company management. In this respect, TL 128,429 was paid in 
November 2019 by reserving our right to take legal actions and legal actions were taken for 2018 fiscal 
year. The lawsuits are pending. On the other hand, additional TL 13,465 for 2018/December was paid 
with  reservation  on  29  January  2021  with  regards  to  notification  of  Information  and  Communication 
Technologies Authority for the same reason. Treasury share investigation related with the periods of July, 
August and September of 2020 fiscal year is an ongoing process. 

99 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
394

 F100 TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

38.  Commitments and Contingencies (continued) 

Other ongoing lawsuits and tax investigations (continued) 

In addition, following tax investigations which were started previous periods (i) prepaid card sales and 
other transactions for 2017 fiscal year regarding SCT, (ii) 2018 fiscal year transactions regarding SCT, 
Corporate Income Tax and Value Added Tax closing minutes have been signed and Central Commission 
of Report Consideration meeting has been held. Evaluation of Commission is still going on.  

In  addition,  in  accordance  with  the  "Contract  for  the  Establishment  and  Operation  of  Mobile 
Communication Infrastructure Service in Settlements Without Mobile Coverage" signed with the Ministry 
of  Transport  and  Infrastructure,  since  the  fees  reflected  to  the  Ministry  should  be  subject  to  special 
communication tax and assessment has been made for the 2015 and 2016 periods. Application has been 
made  for  the  assessment  on  11  December  2020  to  benefit  for  the  structuring  provisions  of  the  Law 
No.7256 and the application has been approved. In this context, 51,174 TL was paid in March 2021 in 
advance.  

On the other hand, mobile payment services provided by Turkcell Odeme were investigated within the 
scope  of  the  Law  No.  6493  and  secondary  legislation  issued  pursuant  to this  Law.  As  a  result  of  the 
investigation,  an  administrative  fine  was  imposed  on  Turkcell  Odeme  in  the  amount  of  TL  18,763. 
Turkcell Odeme filed a lawsuit for the cancellation of the aforementioned administrative fine. The hearing 
was held on 30 December 2020 in this case. The Court decided to accept the case in favor of the Company 
and cancelled the administrative fine subject to the case.  

While this case was ongoing, the Tax Office sent a payment order for collection of the aforementioned 
administrative fine. Turkcell Odeme filed a lawsuit for the cancellation of the payment order. The Court 
accepted the case and cancelled the payment order. Tax office appealed the decision before the Regional 
Administrative Court. The Company replied this appeal request in due time. The Regional Administrative 
Court, rejected the appeal request of the Tax Office in favor of the Company. 

Based on the management opinion, an outflow of resources embodying economic benefits is deemed as 
probable  on  some  of  the  aforementioned  lawsuits  and  investigations,  thus,  TL  242,521  provision  is 
recognized  in  the  consolidated  financial  statements  as  at  and  for  the  year  ended  31  December  2020  
(31 December 2019: None). 

39.  Related parties  

Due to the change of the ultimate parent, the Group reevaluated the related party entities and reflected the 
transactions on 31 December 2020 financial statements. 

Transactions with key management personnel  

Key management personnel comprise the Group's members of the Board of Directors, chief officers and 
other directors. 

There are no loans to key management personnel as of 31 December 2020 and 2019. 

The Group provides additional benefits to key management personnel and contributions to retirement 
plans based on a pre-determined ratio of compensation. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

39.  Related parties (continued) 

The following transactions occurred with related parties: 

Revenue from related parties 
Enerji Piyasalari Isletme A.S. (“EPIAS”) (**) 
Turk Hava Yollari A.S. (“THY”) (**) 
Turksat Uydu Haberlesme Kablo TV ve Isletme 
A.S.(“Turksat”) (**) 
Ziraat Bankasi (**) 
Turkiye Vakiflar Bankasi TAO (“Vakifbank”) (**) 
Borsa Istanbul A.S. ("BIST") (**) 
Gunes Express Havacilik A.S. (“Sun Express”) (**) 
Turkiye Halk Bankasi A.S. (“Halkbank”) (**) 
Sofra Kurumsal ve Odullendirme Hizmetleri A.S. (“Sofra”) 
Posta ve Telgraf Teskilati A.S. (“PTT”) (**) 
Kredi Kayit Burosu A.S. (“KKB”) (**) 
Sonera Holding 
Kyivstar GSM JSC (“Kyivstar”) (*) 
Telia Carrier Germany GmbH (“Telia Carrier”) 
Vimpelcom OJSC (“Vimpelcom”) (*) 
Other 

Related party expenses 

2019   
-   
-   

- 
-   
-   
-   
-   
- 
- 
- 
- 
772,436 
27,050 
12,934 
6,191 
7,004 
825,615 

2020 
23,737   
14,374   

10,408   
10,285   
6,234   
3,458   
2,867   
2,296   
1,221   
870   
657 
- 
- 
- 
- 

6,206   
82,613 

2020 
80,689   
25,477   
14,023   
3,654   
1,682   

EPIAS (**) 
Sofra 
Turksat (**) 
Boru Hatlari Ile Petrol Tasima A.S. (“BOTAS”) (**) 
PTT (**) 
Kyivstar (*) 
Telia Carrier 
Vimpelcom (*) 
Wind Telecomunicazioni S.P.A. (“Wind”) (*) 
Turkcell Vakfi 
Other 

- 
- 
- 
- 
- 
2,071 
127,596 
(*) Transactions with Vimpelcom, Kyivstar and Wind include transactions until 18 June 2019. 
(**) Transactions with related parties through TVF BTIH include transactions as of 22 October 2020 and onwards.  

2019 
- 
8,874 
- 
- 
- 
40,210 
7,503 
1,228 
274 
- 
2,000 
60,089 

Details of the financial assets and liabilities with related parties as of 31 December 2020 and 2019 are as follows: 

F101

2018 
- 
- 

- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

52,946   
7,941 
5,418 
8,176   
74,481   

2018 
- 
- 
- 
-   
- 

77,174   
6,047 
2,751 
4,812   
44,247 
9,878   
144,909   

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Short-term benefits 
Termination benefits 
Share based payments 
Long-term benefits 

31 December 

2020   
86,478   
6,548   
5,760   
1,085   
99,871 

100 

31 December 
2019 
78,775      
56,720 
6,247      
653 
142,395 

31 December 
2018 
80,868                

121    

11,473 

755    
93,217    

Banks - Time deposits 
Banks - Demand deposits 
Other cash and cash equivalents 
Bank borrowings 
Debt securities issued 
Lease liabilities 

101 

31 December 

2020   
6,713,484   
106,799   
8,354   
(55,902)   
(50,866)   
(65,577)   

6,656,292 

31 December 
2019 
- 
- 
- 
- 
- 
- 
- 

Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
396

 F102 TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F103

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

39.  Related parties (continued) 

Interest expense to related parties:  

Halkbank 
Ziraat Bankasi 
Ziraat Yatirim Menkul Degerler A.S. 
Other 

2020 
1,968 
1,736 
506 
65 
4,275 

2019 
- 
- 
- 
- 
- 

2018 
- 
- 
- 
- 
- 

Revenue  from  related  parties  are  generally  related  to  telecommunication,  call  center  and  other 
miscellaneous services. Transactions between the Group and EPIAS are related to the energy services; 
transactions between the Group and Sofra are related to meal coupon services; transactions between the 
Group and BOTAS are related to infrastructure services; transactions between the Group and Halkbank, 
Ziraat Bankasi and Vakifbank are related to banking services; transactions between the Group and PTT 
are  related  to  cargo  transportation;  transactions  between  the  Group  and  Turksat  are  related  to 
telecommunication services and transactions between the Group and BIST are related to stock market 
services. Receivables from related parties are not collateralized. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

39.  Related parties (continued) 

As  of  31  December  2020,  the  amount  of  letters  of  guarantee  given  to  the  related  parties  is  TL  67,455  
(31 December 2019: None). 

Details of the time deposits at related parties as of 31 December 2020 are as follows: 

Ziraat Bankasi 
Vakifbank 
Halkbank 
Ziraat Katilim Bankasi A.S. 

31 December 

2020   
2,338,812   
2,307,202   
1,904,505   
162,965   

6,713,484 

Amount 
796,073 
610,140 
28,838 

  Currency 

USD 
TRY 
EUR 

Effective Interest Rate 
2.9% 
17.4% 
1.5% 

Maturity 
January 2021 
January 2021 
January 2021 

Details of the bank borrowings at related parties as of 31 December 2020 are as follows: 

Amount 
49,993 

  Currency 

RMB 

Effective Interest Rate 
5.2% 

Maturity 
June 2021 

Details of the debt securities issued at related parties as of 31 December 2020 are as follows: 

Amount 
50,000 

  Currency 

TRY 

Effective Interest Rate 
15.0% 

Maturity 
  March 2021 

31 December
2019
- 
- 
- 
- 
- 

31 December 
2020 
5,843,574 
610,140 
259,770 
6,713,484 

31 December 
2020 
55,902 
55,902 

31 December 
2020 
50,866 
50,866 

Details of the lease liabilities at related parties as of 31 December 2020 are as follows: 

Currency 
EUR 
TRY 
USD 

Effective Interest Rate 
0.2% - 3.7% 
12.8% - 26.8% 
4.0% 

Payment Period 
2021 – 2024 
2021 
2023 

31 December 2020 
65,202 
341 
34 
65,577 

Interest income from related parties:  

Ziraat Bankasi 
Halkbank 
Vakifbank 
Other 

2020 
33,838 
32,762 
27,509 
1,611 
95,720 

2019 
- 
- 
- 
- 
- 

2018 
- 
- 
- 
- 
- 

102 

103 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
398

 F104

TURKCELL ILETISIM HIZMETLERI AS 

TURKCELL ILETISIM HIZMETLERI AS 

F105

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

40.  Subsidiaries 

40.  Subsidiaries (continued) 

The Group’s ultimate parent company is TVF, while subsidiaries, associates and a joint venture of the 
Company as at 31 December 2020 and 31 December 2019 are as follows: 

Details of non-wholly owned subsidiaries that have material non-controlling interests in the Company are 
disclosed below: 

Subsidiaries 
Name 

Turktell 

Turkcell Superonline  
Turkcell Satis  
Turkcell Teknoloji  
Turkcell Gayrimenkul  

Turkcell Enerji  
Turkcell Finansman 
Turkcell Sigorta 
Turkcell Odeme  

Lifecell Dijital Servisler (1) 
Lifecell Bulut (1) 

Lifecell TV (1) 
Lifecell Muzik (1) 
Global Tower 
UkrTower 
Beltower  
Eastasia 

Kibris Telekom 

Lifecell Digital  
Turkcell Global Bilgi  
Global LLC  
Rehberlik  
Lifecell Ventures  
Lifecell 
Paycell LLC 
Turkcell Europe  
Yaani 
BiP Digital (2) 
BiP Iletisim (2) 
Beltel  
Belarusian Telecom 

Lifetech  
Inteltek (3) 

Associates 
Name 

TOGG 

Joint Venture 
Name 
Sofra 

Country of 
Incorporation 

Turkey  

Turkey  
Turkey  
Turkey 
Turkey  

Turkey 
Turkey 
Turkey 
Turkey  

Turkey 
Turkey 

Turkey 
Turkey 
Turkey 
Ukraine 
Republic of Belarus 
Netherlands  
Turkish Republic of 
Northern Cyprus  
Turkish Republic of 
Northern Cyprus 
Turkey  
Ukraine 
Turkey  
Netherlands  
Ukraine  
Ukraine 
Germany 
Netherlands 
Netherlands 
Turkey 
Turkey  
Republic of Belarus 

Republic of Belarus 
Turkey  

Country of 
Incorporation 

Turkey 

Country of 
Incorporation 
Turkey 

Business 
Information technology, value added GSM services 
and entertainment investments 
Telecommunications, television services and content 
services 
Sales, delivery and digital sales services 
Research and development 
Property investments 
Electricity energy trade and wholesale and retail 
electricity sales 
Consumer financing services 
Insurance agency activities 
Payment services and e-money license 
Development and providing of digital services and 
products  
Cloud solutions services 
Online radio, television and on-demand streaming 
services 
Radio, television and on-demand streaming services 
Telecommunications infrastructure business 
Telecommunications infrastructure business 
Telecommunications infrastructure business 
Telecommunications investments 

Telecommunications 

Telecommunications 
Customer relations and human resources management 
Customer relations management 
Directory assistance 
Telecommunications investments 
Telecommunications 
Consumer financing services 
Telecommunications 
Internet search engine and browser services 
Providing digital services and products 
Providing digital services and products 
Telecommunications investments 
Telecommunications 
Information technology, programming and technical 
support 
Information and entertainment services 

Business 
Electric passenger car development, production and 
trading activities 

Business 
Meal coupons and cards 

Effective Ownership Interest 
31 December 
2020 (%) 

31 December 
2019 (%) 

100 

100 
100 
100 
100 

100 
100 
100 
100 

100 
100 

100 
100 
100 
100 
100 
100 

100 

100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
80 

80 
- 

100 

100 
100 
100 
100 

100 
100 
100 
100 

- 
- 

- 
- 
100 
100 
100 
100 

100 

100 
100 
100 
100 
100 
100 
100 
100 
100 
- 
100 
100 
80 

80 
55 

Effective Ownership Interest 
31 December 
2020 (%) 

31 December 
2019 (%) 

19 

19 

Effective Ownership Interest 
31 December 
2020 (%) 
33 

31 December 
2019 (%) 
33 

Place of 
incorporation 
and principal 
place of business 

Proportion of ownership 
interests and voting rights 
held by non-controlling 
interest 
31  
December  
2020 

31  
December  
2019 

Profit/(loss) allocated to 
non-controlling interests 

31  
December  
2020 

31  
December  
2019 

Accumulated non-
controlling interests 

31  
December  
2020 

31  
December  
2019 

Name of subsidiary 

Individually immaterial 
subsidiaries with non –
controlling interest  

Inteltek 

Turkey 

- 

45.00% 

2,534 

- 
2,534 

21 

30,182 
30,203 

171 

- 
171 

148 

36,307 
36,455 

Summarized financial information in respect of Inteltek is set out below. The summarized financial information 
below represents amounts before intragroup eliminations. 

Inteltek 

Current assets 
Non-current assets 
Current liabilities 
Non-current liabilities 
Equity attributable to owners 

Revenue 
(Expenses) / Income (net) 
Gain on Sale of Investments 
Profit for the year 

Other comprehensive income/(loss) for the year 
Dividend paid to non-controlling interests 

Net cash (outflow)/inflow from operating activities 
Net cash inflow from investing activities 
Net cash outflow from financing activities 
Effects of foreign exchange rate fluctuations on 
 cash and cash equivalents 
Net cash (outflow)/inflow  

31 December
2020

31 December 
2019  

-
-
-
-
-

2020  

-
-
-
-

-
-

-
-
-

-
-

84,896  
6,516  
6,286  
4,444  
80,682  

2019  

141,783  
(74,711)  
-  
67,072  

640  
(125,027)  

(63,238)  
20,001  
(277,837)  

14,979  
(306,095)  

(1) On 28 February 2020, Lifecell Dijital Servisler, which will develop and provide digital services and products, was incorporated by Turktell, a subsidiary of the Group, under the laws of 
Republic of Turkey. On 21 April 2020, Lifecell Bulut, which will provide cloud solutions services, Lifecell TV, which will provide online radio, television and on-demand streaming services 
and Lifecell Muzik, which will provide radio, television and on-demand streaming services, were incorporated by Lifecell Dijital Servisler which is 100% owned by Turktell, a subsidiary of 
the Group. 
(2)  On  21  July  2020,  the  trade  name  of  TOFAS  was  changed  to  Lifecell  Iletisim  and  its  business  activity  is  determined  and  announced  as  providing  telecommunication  services.  On  
7 September 2020, Lifecell Digital Communication Technologies B.V (“Lifecell Communication”), which will provide digital services and products, was incorporated by Lifecell Ventures, a 
subsidiary of the Group. On 30 September 2020, 100% of the shares of Lifecell Iletisim were transferred to Lifecell Communication and the transaction was registered and announced as of 12 
October 2020. The trade names of Lifecell Communication and Lifecell Iletisim were changed to BiP Digital and BiP Iletisim on 4 December and 14 December 2020, respectively.  
(3) The Company has signed a definitive agreement on 29 July 2020 to transfer its total shareholding in Inteltek to other shareholder of  aforementioned, Intralot Iberia Holding SAU. The 
transfer of shares and proceeds were completed on 30 September 2020. The final value of the transaction is realized as TL 6,063. Subsequently, the Company loses its control over Inteltek. 
This transaction has no material effect on the Group’s financial statements. 

Inteltek operated games of chance and assigned mobile sub agencies to operate the fixed odds and paramutual 
betting games basing on the agreements executed with Spor Toto. The term of the agreement executed between 
Spor Toto and Inteltek has been expired on 29 August 2019. In this context, activities  of Inteltek ceased on  
29  August  2019.  The  Company  has  signed  a  definitive  agreement  on  29  July  2020  to  transfer  its  total 
shareholding in Inteltek to other shareholder of aforementioned, Intralot Iberia Holding SAU. The transfer of 
shares and proceeds were completed on 30 September 2020 (Note 40).  

104 

105 

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
  
 
   
  
  
  
  
  
  
  
  
  
  
  
   
 
 
 
  
  
 
  
  
  
  
  
 
  
 
 
 
  
  
  
  
 
  
 
  
 
400

 F106

TURKCELL ILETISIM HIZMETLERI AS 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
As at and for the years ended 31 December 2020 
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest 
thousand currency units and are expressed in Turkish Liras unless otherwise stated.)  

41. Cash flow information

Net financial liabilities reconciliation:

Debt 
securities 
issued 
(5,965,790) 
  (494,987) 
   885,647  
  (1,787,424) 
  (7,362,554) 

Debt 
securities 
issued 
(5,210,562) 
(311,649) 
563,241 
(1,006,820) 
(5,965,790) 

Balance at 1 January 2020 
Cash inflows 
Cash outflows 
Other non-cash movements 
Balance at 31 December 2020 

Balance at 1 January 2019 
Cash inflows 
Cash outflows 
Other non-cash movements 
Balance at 31 December 2019 

42.

Subsequent events

Loans 
(12,806,882) 
(22,983,201) 
  26,817,471  
   (3,152,370) 
 (12,124,982) 

Lease 
liabilities 
(1,533,055) 
 - 
  1,302,335  
  (1,868,166) 
  (2,098,886) 

Total 
(20,305,727) 
 (23,478,188) 
 29,005,453 
 (6,807,960) 
   (21,586,422) 

Derivative 
Assets, net 
758,896 
  2,085,585  
   (866,650) 
(1,179,505) 
   798,326  

Total 
(19,546,831) 
 (21,392,603) 
  28,138,803  
   (7,987,465) 
 (20,788,096) 

Loans 
(13,531,027) 
(29,060,490) 
32,003,647 
(2,219,012) 
(12,806,882) 

Lease 
liabilities 
(1,413,956) 
- 
1,215,320 
(1,334,419) 
(1,533,055) 

Total 
(20,155,545) 
(29,372,139) 
33,782,208 
(4,560,251) 
(20,305,727) 

Derivative 
Assets, net 
1,190,797 
1,924,363 
(1,101,876) 
(1,254,388) 
758,896 

Total 
(18,964,748) 
(27,447,776) 
32,680,332 
(5,814,639) 
(19,546,831) 

On 8 January 2021, the Group announced that its subsidiary, Turkcell Odeme, shall issue management
agreement based lease certificates in accordance with capital markets legislation through an asset leasing
company at an amount of up to TL 200,000, with maturities up to 12 months, in the domestic market, in
one  or  more  tranches,  without  public  offering,  as  private  placement  and/or  to  be  sold  to  institutional
investors.

In  accordance  with  the  resolution  of  TOGG’s  board  of  directors,  the  Group  made  capital  advance
payments to TOGG amounting to TL 103,626 in January, February and March 2021.

On 15 April 2021, the Company’s General Assembly has approved a dividend distribution for the year
ended 31 December 2020 amounting to TL 2,585,787; this represents a gross cash dividend of full TL
1.17536  per  share.  The  dividend  will  be  paid  to  the  shareholders  in  three  instalments  on
30 April, 30 July and 27 October 2021.

On 22 April 2021, a temporary article is added to the Turkey’s Corporate Tax Law No. 5220 which was
published in the Official Gazette. The Law increases the corporate tax rate under Corporate Tax Law from 
the current 20% rate to 25% for the tax year 2021 and to 23% rate for the tax year 2022; the change took
effect on the Law’s date of publication. It is expected to continue with 20% afterwards.

106 

Our Offices

Location

Address

ADANA PLAZA

Turhan Cemal Berikel Bulvarı No: 212 Seyhan Adana 

ANKARA PLAZA

Eskişehir Yolu 9.Km.No:264 Pk:06510 Söğütözü Ankara

ANKARA DC

Turkcell Ankara Veri Merkezi Malıköy Anadolu OSB Mahallesi 12. Cadde Sincan / ANKARA

ANTALYA PLAZA

Kızıltoprak Mah. 915 Sok. No:3 Muratpaşa Antalya

BAŞKENT NDC

Başkent İvedik Mahallesi 1323. Cadde No:37 Yenimahalle Ankara

BEYOĞLU FLAGSHIP

Meşrutiyet Caddesi No 71 Beyoğlu İstanbul

BORNOVA NDC

 Kazım Dirik Mah. 367/7 Sokak No:12 Bornova İzmir

BURSA PLAZA

ÇORLU NDC

Organize sanayi Bölge Müd. Kırmızı Cad. No:4 Nilüfer Bursa

Yulaflı Mah. Hacı Şeremet Mevkii Karin-Balin Gıda Fb. karşısı Çorlu Tekirdağ

DAVUTPAŞA NDC

Maltepe Mah Davutpaşa Cad. Serçekale Sok. No2 Zeytinburnu-İstanbul

DİYARBAKIR PLAZA

Urfa bulvarı Bağcılar Mah No 184 Turkcell plaza bağlar Diyarbakir 

DUDULLU DC

EDİRNE DC

Dudullu OSB Nato Yolu 4. Cadde No:1 Ümraniye-İst

Şükrü Paşa Mah. Kıyık Cad. Hilly Otel Yanı No254 Edirne

ERZURUM NDC

Ilıca yolu Organize sanayi bölgesi 4.Sok Erzurum

GAZİANTEP NDC

Kocaoğlan Mah. Demokrasi Bulvarı no:185 / 1 Şahinbey Gaziantep

GEBZE DC

HATAY NDC

İZMİR PLAZA

İZMİR DC

İZMİT NDC

Gebze OSB, Tembelova Mevkii Mah. 3300 Sok. No: 3314 Gebze-Kocaeli

Güzelbirlik Mah. Yunus Emre Cad. No:11-B Güzelburç Hatay 

 Kazım Dirik Mah. 367/7 Sokak No:12 Bornova İzmir

İTOB 10005 sokak no:37 Torbalı - İzmir

Yahya Kaptan Mah. Bahçeşehir Sok. No :30 İzmit/Kocaeli

KARTAL PLAZA

Topselvi Mahallesi Dipçik Sokak No 31

KAYSERİ NDC

KONYA OFİS

KONYA NDC

Kayseri Organize Sanayi Bölgesi 13. Cadde No:16 Melikgazi- Kayseri

Parsana Mh.Zümrütova Sok.No:1 Selçuklu/Konya

Horozluhan Mah Sıhhıye Sok No:6 1.ORG SAN. Selçuklu Konya

KÜÇÜKYALI PLAZA

Aydınevler Mahallesi İnönü Caddesi No:20 B Blok 34854 Maltepe İstanbul

MAHMUTBEY NDC

Mahmutbey Mah İnönü Caddesi No: 89 Bağcılar İstanbul

MALATYA NDC

Hoca Ahmet Yesevi Mah. 7. Sok. Mahrukatçılar Sitesi No: 34 Merkez Malatya

MALTEPE PLAZA

Yeni Mah. Pamukkale Sok. No: 3 Soğanlık Mevkii - Kartal İstanbul

MERSİN NDC

MUĞLA NDC

SAKARYA OFİS

SAMSUN NDC

Portakal Mah. 80050 Sok. No:3 Toroslar \Mersin

Musluhittin Mahallesi Atatürk Bulvarı No:61 Muğla

Bahçelievler Mah. Cumhuriyet Cd. Kamelya Sk. No:16 Serdivan Sakarya

Mimar Sinan Mah. 160.sok.No:18 PK:55200 Atakum Samsun

TEKNOLOJİ PLAZA

Yenimahalle Pamukkale sok. No:11 Cevizli/Kartal

TEPEBAŞI PLAZA

Meşrutiyet Caddesi No 71 Beyoğlu İstanbul

TRABZON NDC

Mısırlı Mah. Hasan Turfanda yolu No:1 Çukurçayır Trabzon

VAN NDC

İpek yolu 8 km yeni mahalle sahil sokak no. 27 Edremit Van

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Independent auditor’s report and consolidated financial statementsTURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
402

Group companies and other information
on corporate governance

Glossary

Abbreviation

Explanation

3G

4.5G

5G

6G

ARPU

Backhaul

Base Station

Beacon

C#

Carrier 
Aggregation

CELTIC

DSS

ER



ESG

EUREKA

Gbps

GRI

GSM

GSMA

HD

ICTA

IDC

IMS

IoT

A third generation mobile telecommunication system established according to IMT-2000/UMTS 
standards, or standards developed based on these standards

A generation containing technologies of more advanced features than standard 4G technology

A generation containing technologies having more advanced features than standard 4G technology

6th generation advanced communication technologies are expected to enter our lives in the 2030s in 
the wake of 5G

Average monthly revenue generated per mobile subscriber

Wired/wireless communication technologies and tools that provide the connection between base 
stations and the Core Network 

A fixed transceiver device in each cell of a mobile communications network enabling communication 
between mobile phones and radio signals within the cell

A location-based data provider utilized in My Dream Companion project

A Microsoft programming language developed for net technology

A technique allowing more bandwidth and consequently higher speeds to be obtained by joining 
frequencies called carriers

EUREKA Cluster focusing on the Information and Communications Technology and 
Telecommunications

Digital Service Provider

Integrated Reporting

Integrated Reporting Framework

Environmental, Social, Governance

(Exceptional Unconventional Research Enabling Knowledge Acceleration) It is an intergovernmental 
R&D organization financed by governments of more than forty countries

A data transmission speed

Global Reporting Initiative

This is a digital mobile communication system, standardized by the European Communications 
Standards Institute and based on digital transmission with roaming and the cellular network structure 
being used in Europe, Japan and various other countries

(The GSM Association - Global System for Mobile Communications) The GSM Association is 
a community consisting of mobile operators and telecom-related companies with the aim of 
standardizing and developing the Mobile Telecommunications Sector

High Definition Broadcast

Information Communication Technologies Authority

(International Data Corporation) American market research company examine the development of 
technology

(IP multimedia subsystem) Platform to provide a new generation of wired, wireless service providers

(Internet of Things) The mobilization, interpretation and communication/interaction of the data 
received through sensors

Abbreviation

Explanation

IIRC

IT

ITEA

LTE

International Integrated Reporting Council

Tools for generating, collecting, accumulating, processing, recovering, disseminating, protecting, and 
assisting

EUREKA Cluster program supporting innovative, industry-driven, pre-competitive R&D projects in the 
area of Software-intensive Systems & Services

Technology that ensures to achieve very high speeds by combining carriers in the same or different 
frequency bands

LTE-Advanced

A mobile communications standard comprising advanced features such as carrier coupling, which 
enables mobile broadband speed of over 150 MBps in LTE

M2M

MHz

NB-IoT

NGMN

NPS

Roaming

RTM

SASB

Scratch

SDG

SD-WAN

SMS

Tbps

NGO

UN

UNGC

WEF

Machine to Machine is the general name of the technology that allows devices to exchange 
information and conduct transactions without human intervention

(Megahertz) A frequency unit

A technology defined by 3GPP for Internet of Things

An organization (Next Generation Mobile Networks Association), of which Turkcell is a member, 
and which several operators, suppliers and universities in the world are a part of, giving direction to 
technology standards and technology producing companies in relation to operator requirements

(Net Promoter Score) The score that measures whether or not customers recommend the products 
they use to others

A mobile communication feature that allows the subscribers of a network to use their cell phones and 
numbers within the coverage of another operator

(Real Time Monitoring) 24/7 monitoring and reporting system on the system

Sustainability Accounting Oversight Board

Scratch is a programming language developed by MIT (Massachusetts Institute of Technology), which 
has a user-friendly interface, designed for the use of children between the ages 8 and 16

Sustainable Development Goals

Acronym for software-defined networking in a wide area network (WAN)

A mobile communication system allowing users to receive and send messages that can be 
constituted of both alphabetic and numerical characters of up to 160 characters, to and from mobile 
phones through a short message service

(TeraBytes Per Second) One trillion bits or bytes per second

Non-Governmental Organisations

United Nations

United Nations Global Compact

World Economic Forum

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TURKCELL INTEGRATED ANNUAL REPORT 2020TURKCELL INTEGRATED ANNUAL REPORT 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turkcell İletişim Hizmetleri A.Ş.
Turkcell Küçükyalı Plaza, Aydınevler Mahallesi 
İnönü Caddesi No: 20 Küçükyalı Oﬁspark B Blok - Maltepe / İstanbul
Tel: +90 (212) 313 1000 Fax: +90 (216) 504 4058
Customer Services Tel: 532 or +90 (532) 532 0000
www.turkcell.com.tr
Trade Register Number: 304844

Report Consultancy
KPMG Turkey Sustainability Team
www.kpmg.com.tr

Graphic Design
Günce Reklam
info@guncereklam.com

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