Turkcell
2022 Integrated Annual Report
OUR CONDOLENCES TO TURKEY
We are deeply saddened by the loss of 21 Turkcell employees and many employees’ relatives,
along with numerous citizens, in the earthquake that occurred on February 6, 2023, centered in
Kahramanmaraş. We offer our prayers and thoughts to the deceased citizens and employees,
patience and condolences to their loved ones, and quick recovery to the injured citizens currently
receiving treatment. As Turkcell, we will continue to support communication for our users in the
region and work with all our resources hand in hand with the nation to overcome these difficult
times.
Our Employees Who Lost Their Lives
Ahmet UÇAR
Kahramanmaraş Turkcell Store Employee
Asım KAYA
Adıyaman Turkcell Store Employee
Başak BÜYÜKSAKALLI
Kahramanmaraş Home Solution Center Employee
Beyhan YILMAZ
Network Technologies Hatay Regional Solution Partner
Canan AKGÜL
Diyarbakır Turkcell Global Bilgi Employee
Faruk KAPLAN
Kahramanmaraş Kurumsal Solution Center Employee
Faruk TEPEBAŞILI
Kahramanmaraş Turkcell Store Employee
Gamzenur BOZKÜTÜK
Adıyaman Corporate Solution Center Employee
Gözde BAYANCUK
Diyarbakır Turkcell Global Bilgi Employee
Hamdiye Nupelda ENSARİOĞLU
Diyarbakır Turkcell Global Bilgi Employee
İbrahim POLAT
Adıyaman Corporate Solution Center Employee
İpek Ayşe ILGIN
Kahramanmaraş Home Solution Center Employee
Mehmet Akif ŞEKKELİ
Network Technologies Regional Operations Southwest Region Employee
Mehmet IRMAK
Hatay Dijital Point of Sales Employee
Mehmet ŞAHİN
Kahramanmaraş Dijital Point of Sales Employee
Meryem GAZPAK
Hatay Turkcell Store Employee
Nimet ARSLANOĞLU
Hatay Turkcell Store Employee
Özcan KILIÇLAR
Paycell Employee
Sevgi YILDIRIMHAN
Hatay Dijital Point of Sales Employee
Simge Deniz FIRAT
Hatay Turkcell Contact Center Employee
Ülkü SARIKAYA
Kahramanmaraş Turkcell Store Employee
We implemented our network actions in the fastest
and most efficient way to ensure communication
We are strong together
We worked nonstop with
our teams for uninterrupted
communication.
We have shipped
approximately 250 mobile
base stations and caravans
to replace our damaged
and unusable sites.
We provided transmission
redundancy for data
centers (Gaziantep, Hatay,
Diyarbakır, Malatya)
by intervening in fiber
interruptions.
We have sent more than
1,200 field response
personnel to the region.
In the light of all these
efforts, we activated 87%
of our base stations in the
region on the 3rd day and
94% on the 5th day.
We installed 1,400
generators and nearly 3,400
batteries to our provinces in
the earthquake zone.
We provided mobile
coverage to all tent cities
and container cities. In
addition, we brought Wi-
Fi service to 79 locations.
After the earthquake, we
became the operator that
offered the highest value
in data download speed
in all provinces throughout
the disaster area.
We provided communication
support to our 6.5 million
customers and all search and
rescue teams in the region.
We have defined the
Emergency Communication
Package and the Hero
Package, which includes
more than 90 million free calls,
SMS and internet in total.
By transforming our 277 Turkcell dealers in Istanbul into an
Emergency Aid Collection Center, we became an intermediary
for the collection of aid with the coordination of AFAD.
Since the first day of the
earthquake, we have
provided a large number
of in-kind and cash
assistance from multiple
charging units to clothing
aid, from tent support to
mobile chargers.
In order to support our
business partners operating
in the region, we tried to
meet their needs by dealing
with each one individually.
Turkcell and other
operators provided free
calls for a period of one
month from the moment of
the earthquake.
We pledged to donate up
to 3.5 billion TL to the
Turkey One Heart
Campaign, with which we
are united as a nation.
We set out two aid trucks for
our employees in the region.
We provided 10 thousand TL
support to Turkcell Group and
ecosystem employees who
live in the region and
personally support the region.
We met the needs of 1,600
people in the earthquake
area for three meals a day
for a month.
We mobilized to help the
earthquake area with
thousands of Turkcell
volunteers.
We distributed free SIM cards
to all teams in order to meet
the communication needs of
rescue teams from abroad.
2 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 3
Table of Contents
06
08
10
16
22
28
29
36
Message from Chairman
of the Board
42
Value Creating Turkcell
106
Inclusive Positive Imprint
194
Appendices
Message from CEO
Board of Directors
Executive Officers
Top Management of
Subsidiaries
About the Report
Turkcell at a Glance
Turkcell Group:
Developments in 2022
44
Value Creating Turkcell
112
Human Capital
45
Turkcell Sustainability Management and
Involvement of Senior Management
46
48
Turkcell Sustainability Priorities
Turkcell Sustainability Strategy: Positive Imprint
in Sustainability
50
Supported Sustainable Development Goals
59
60
52
56
58
61
63
64
66
Interactions with Our Stakeholders
Turkcell Value Creation Process
Measuring the Value Created
Our Core Competencies
Our Strategic Focuses, Initiatives and
Opportunities
Our Telecom Business
Digital Services
Digital Business Services
Techfin Services
113
114
119
121
Decent Workplace
Diversity, Inclusion, and Equal Opportunity
Safe and Healthy Work Environment
Our Productive Turkcell Family
123
Training and Development Programs
129
Making a Difference in Employment
132
Manufactured Capital
133
Strong Infrastructure
137
Strong Fiber Infrastructure
137
Strong Spectrum
139
Data Centers
140
Intellectual Capital
141
Ever-growing Intellectual Capital
144
Digital Service Portfolio
149
Digital Security and Wellbeing
151
Digital Business Services
68
Positive Imprint to Our Business
154
Social Capital
196
197
198
APPENDIX-1: Awards Received by Turkcell in 2022
APPENDIX-2: Turkcell ISO Certificates
APPENDIX-3: Cooperated National, International and Non-
Governmental Organizations
199
APPENDIX-4: GRI Content Index
203
APPENDIX-5: UNGC Progress Chart
204
APPENDIX-6: Sustainability Principles Compliance
Framework Table
208
APPENDIX-7: Greenhouse Gas Verification Statement
210
Group Companies and Other
Information on Corporate
Governance
212
Our Subsidiaries
218
Subsequent Events After the Reporting Period
220
Statement of Compliance with Corporate Governance
Principles
221
Corporate Governance Principles Compliance Report
225
Corporate Governance Information Form
231
Roles of Turkcell Board Members at Other Companies
231
Conclusion of the Subsidiary Report
72
78
84
Strong Corporate Governance
Human Rights, Business Ethics and Common Values
Competition Management
Effective Risk and Crisis Management
Corporate Risk and Business Continuity Management
Internal Control and Continuous Improvement
Internal Audit
Financial Capital
Strong Financial Performance
Revenues From Operations
Business Model Hedging Practices
Efficient Capital Allocation
Financing Diversity
Strong and Transparent Financial Management
Transparent Investor Communication – Investor
Relations
Digital Finance Transformation
Techfin’s Shining Stars: Paycell and Financell
74
77
78
81
83
85
86
88
90
91
91
92
96
96
98
Trends
155
Brand and Responsibility
156
Strong Sales Channels and Our Services
165
Our Customer Relations
168
Value-Driven, Responsible Supply Chain Management
172
Equality of Digital and Social Opportunity
174
Social Investment and Sponsorship Projects
232
Sectoral and Financial
Information
234
Turkcell Group: 2022 Financial & Operational Review
239
Forward Looking Statements
240
Our Companies and Sector Developments
178
Positive Imprint to the
Environment
245
Financial Statements
182
Natural Capital
183
Environmental Management
185
Climate Change
186
Greenhouse Gas Emissions
187
Energy Management
190
Water Management
192
Waste Management
246
Financial Statements
360
Our Offices
361
Glossary
363
Other Considerations
363
Contact
4 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 5
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Message from Chairman of the Board
Dear Stakeholders,
The recent earthquake that affected 11 provinces has
given rise to a particularly challenging time. As the
Turkcell family we continue to work with all our ability
to heal the wounds inflicted by the disaster. We believe
that we will overcome these difficult days in the spirit of
solidarity and mutual assistance demonstrated by our
nation, which sets an example to the world.
While 2022 is a year of challenging conditions globally,
the Russia-Ukraine war in particular continues to have
an international impact. Inflationary effects escalating
with the conflict and resulting international tension, dif-
ficulty in accessing energy and food, and disrupted chip
supplies that closely concern our industry, have led to an
environment of perpetual crisis worldwide.
With digitalization and transformation coming to the
fore in almost every sector, business processes support-
ed by sustainable management models have become
an important issue for all ecosystem-sensitive compa-
nies. The need to adapt to the transformation in custom-
er demand that accelerated during the pandemic was
of paramount importance. Indeed, that demand today is
now permanent, bringing major opportunities, especial-
ly for our industry.
As the Turkcell family, we have concluded another
year of activities geared at creating sustainable value,
aware of the economic and strategic importance of the
telecom sector in which we operate and the responsi-
bility to our ecosystem. Within the scope of our objec-
tives and responsibilities, and with a focused approach
maintained throughout the year we strengthened our
infrastructure and invested in new technology towards
achieving Turkey’s digitalization. We develop innovative
solutions that meet changing needs and demands in a
world where the share of digitalization in our daily activ-
ities is increasing. In delivering these solutions to our cus-
tomers we diligently maintain our lead role in the digital
transformation journeys of diverse sectors. As a result of
our operational and financial activities towards achiev-
ing these goals, we have ended yet another year with
sustainable growth.
planning our investments sustainably, we conduct a ho-
listic evaluation of the views and needs of the network,
finance, sales and marketing functions.
In step with our mission, we continue to support our cus-
tomers’ digitalization journeys with our constantly de-
veloping competencies, facilitating and enriching their
lives with the opportunities technology brings. Within
the scope of our digital services we play a pioneering
role in Turkey’s digitalization process by providing instant
messaging, TV and music platforms, personal cloud
services, search engine and e-mail services. Moreover,
we resumed our international partnerships with a new
partnership established with Jazz in Pakistan at the end
of 2022 to increase our global impact and reach of our
services.
As Turkcell, we play a leading role in the essential dig-
ital transformation of the healthcare sector. The digital
infrastructure of city hospitals, among our country’s larg-
est healthcare investment areas, is managed with the
“Hospital Information Management System” developed
by Turkcell engineers. We also aim to serve private hos-
pitals with the distinguishing quality of Turkcell as we are
doing in city hospitals.
With the rapid rise of digital transformation in the busi-
ness world and the increasing use of technology, cyber
security risks for organizations are also becoming more
prevalent, as well as the advantages provided. We offer
our cyber security and information security experience
as a service to both our corporate and individual cus-
tomers by integrating our digital operator competence.
We also support cybersecurity initiatives through our
investments in the Turkcell New Technologies Venture
Capital Fund. With the power of this investment fund, we
aim to create long-term strategic and financial value
for our group by investing in technology-focused start-
ups of high growth potential across diverse sectors and
creating synergies with them. Sectors such as artificial
intelligence, virtual reality, the internet of things, mobility,
and financial technologies, where we will support com-
panies in meeting their growth targets.
We started planning our investment expenditures more
effectively with the smart investment approach imple-
mented in 2021. We maintained, with a value focus, the
goal of raising our company’s cash generating abili-
ty to higher levels in the long term. In this context, while
We observe that the role of digitalization is gradually
increasing to provide solutions for the rapidly chang-
ing payment habits in our country and the wider world.
Through our Paycell brand, we reliably deliver our cus-
tomers innovative and easy-to-use solutions in this field.
With Financell, another focus area of ours in techfin, we
have applied for the incorporation permit to establish a
digital bank. This move will allow us to expand product
and service richness by combining the solutions portfolio
offered our customers through Financell with the servic-
es offered by a traditional bank. Additionally, in 2022, we
established our digital insurance company to support our
insurance activities in the digital environment with big da-
ta-based solutions and digital processes, to benefit our
customers and play a part in the sector’s transformation.
As part of digital transformation, in addition to provid-
ing products and services to meet customer needs, we
are also digitizing our internal processes. Since the con-
tribution of our digital channels is important, we will
continue our efforts to increase the channel’s share of
the business. We aim to provide an uninterrupted ser-
vice and create additional value for our stakeholders by
benefiting from cost savings. Meanwhile, by creating the
“Digital Transformation” function we aim to implement
good practices in the digitalization of our processes, lead
our company’s digitalization journey and effectively re-
alize its vision. And with the establishment of Strategy
and Digitalization Committee in February we aim to im-
plement the best practices by closely monitoring digital
transformation, optimization and efficiency projects.
Our country has taken a bold step towards creating its
own brand in the automobile industry. As Turkcell we par-
ticipated in Turkey’s Automobile Enterprise Group with
a 23% stake to proudly play our part in this undertaking
with our know-how in autonomous systems and mobili-
ty. We are pleased that Togg, which aims to have robust
competitive power on the global stage, had begun mass
production at the Gemlik Togg Technology Campus as of
October 29, 2022. Togg continues to complete necessary
collaborations to build the mobility ecosystem around the
electric car, which it defines as a “smart vehicle”. In this
context, as Turkcell, we are in strategic cooperation with
Togg to integrate digital finance and service solutions
into the mobility ecosystem.
As the only Turkish company traded on Borsa İstanbul
(BİST) and the New York Stock Exchange (NYSE) since
2000, we comply with both Turkish and American capi-
tal markets’ requirements and regularly improve our cor-
porate governance processes. I trust that Turkcell, which
adopts best practices in corporate governance as its
guide, and through the annual self-evaluations that our
Board of Directors undertake to enhance corporate relat-
ed initiatives will further improve its standing in this area.
As Turkcell, we make a positive contribution to socie-
ty and the environment we live in with the principle of
sustainability rooted in all of our processes. We strive to
ensure that the environmental, social and governance di-
mensions of our business are universally valuable in every
sense and at all times.
In addition to supplying the energy we use from renewa-
ble sources within the scope of fighting climate change,
we also make investments to contribute to renewable en-
ergy production, and maintain our goal of being carbon
net zero by 2050. And by continuing investments focused
on environmental sustainability and efficiency in the up-
coming periods as well we aim to reach 300 MW of in-
stalled power by the end of 2025. As Turkcell, we intend
to meet 100% of the energy needs of group companies
from renewable energy sources by 2030, in line with na-
tional and international sustainability targets through the
investments we have made and management systems
developed.
We work towards zeroing the negative outcomes of
which we are directly or indirectly a factor, creating pos-
itive value and inculcating this approach among all of
our stakeholders. In so doing we are not limiting the con-
cept of sustainability to environmental factors alone. Our
overarching objective is to make sure that thanks to the
equalizing power of technology for social and digital in-
clusion no one is left behind.
We have set targets to increase the number of our female
employees at all levels, including the Board of Directors,
to champion the equal presence of women in the tech-
nology arena. Accordingly, we support women’s en-
trepreneurship and employment with projects such as
“Women Writing the Future” and “Equal Chances and
Equal Conditions”.
I extend my sincere thanks to our customers for their in-
terest in our products and services in the 2022 operating
period, to our shareholders for the trust they have shown,
and to our business partners and all our stakeholders, es-
pecially our employees, who have enabled us to success-
fully realize our operations.
Sincerely,
Bülent Aksu
Chairman of the Board
6 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 7
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Message from CEO
Dear Stakeholders,
I would like to wish recovery to the injured and offer my condo-
lences to those who lost their relatives due to the earthquake
disaster of February 6th with its epicenter in Kahramanmaraş
that left us all in mourning. As the Turkcell family, we have used
every means available from the first day to support our citizens
affected by the earthquake in a spirit of unity and solidarity.
We will continue to contribute with all our efforts to overcome
these difficult days as soon as possible.
We continued to offer inclusive solutions to our customers’ digi-
tal needs this year with brands such as BiP, TV+, fizy and lifebox,
which are the key brands of the Turkcell ecosystem, and whol-
ly developed by Turkish engineers. The number of standalone
paid users of our digital services, which aim for prominence
among global competition, rose by 28% to 5.1 million with our
focus on increasing the spread of these services. Meanwhile,
our standalone digital service revenues grew by 30% this year.
Both globally and within our country, 2022 was a year in whi-
ch the impact of challenging economic conditions brought
about by high inflation was felt. During the summer months,
the momentum of the tourism sector, which even exceeded
pre-pandemic levels, was a prominent positive factor. While
digitalization, which accelerated with the pandemic, continu-
es to maintain its importance, it has become clear that the shift
in consumer behavior has become permanent.
As the Turkcell family, we continued our operations effectively
through our diversified business strategy and proactive risk ma-
nagement. This is in line with our goal of creating value for all our
stakeholders in the 2022 operating period, despite being one
where the markets were particularly challenged and subject
to uncertainties. While we continued to offer solutions to meet
customer needs with our innovative product and service port-
folio, we also continued our offerings in our strategic focus areas
of digital services, digital business services and techfin to meet
changing customer behavior and increasing digital demand.
We achieved strong financial and operational results in 2022
thanks to the performances of all our services and solutions,
offered with a focus on changing customer needs. Particularly
in the second half of the year, strengthening tourism activity
has increased the demand for our mobile business. With the in-
vestment made in our infrastructure, and our customer-orien-
ted approach, we achieved 2.3 million net subscriber additions
in 2022. As the pioneer of technology in our country, we further
accelerated our investments to pave the way for Turkey’s digi-
tal transformation and deliver our customers real fiber quality.
Accordingly, we added 887 thousand new fiber homepasses
in 2022. Turkcell’s consolidated revenues increased by 50%
year-on-year to TRY 53.9 billion. Consolidated EBITDA incre-
ased by 46.5% to TRY 22 billion. Our net income was up 119.7%
year-on-year to TRY 11.1 billion. Operational capital expenditu-
res (excluding license fees) at the Group level were at 20.2% of
total revenues.
Over the past year, the continued need for transformation ari-
sing from digitalization has once again underlined the impor-
tance of the telecom sector. We remain a brand focused on
customer satisfaction directly shaping the sector with digital
services and solutions developed for every aspect of life. In do-
ing so, we remain aware of our comprehensive, environmental
and social impact, embracing sustainability criteria.
With our digital business services that guide Turkey’s digital
transformation, we help our corporate customers stand apart
from the competition by accompanying their end-to-end digi-
tal transformation. The revenues of our digital business servi-
ces increased by 88% to TRY 4.3 billion in 2022. And we respond
to rising customer demands with our comprehensive services
in areas such as data center, cloud solutions, cyber security,
system integration, business applications and new techno-
logies, in addition to our traditional telecom services.
In 2022, in our techfin business, one of our strategic focuses, we
diversified our portfolio with new initiatives. In this area, whe-
re we provide services under the Financell and Paycell bran-
ds, we established the Turkcell digital insurance company to
enable our customers to secure themselves against risk. We
also applied for an incorporation permit to establish a digital
banking company to complement our existing products and
services. As the digital channel share of insurance companies
is lower than that of other financial sectors, it provides an im-
portant transformation opportunity in terms of directing cus-
tomer demand to the digital consumer experience. Therefore,
we established our digital insurance company so as to play
a part in this transformation with innovative solutions and di-
gital processes based on big data. While the revenues of our
Financell business grew by 59.4% this year, at a time when
payment habits are changing and digital payment services
are gaining prominence, Paycell grew its revenues by 87.2%
year-on-year to TRY 876.9 million, standing out with its broad
service portfolio, Turkcell’s technological infrastructure and the
advantage of access to its subscriber base in a market whe-
re various players focus on different solutions. With Paycell
Europe, which we launched in Germany in October, we aim to
engage in international money transfer and payment services,
primarily in European Union countries.
As Turkcell, we established Turkcell New Technologies Venture
Capital Investment Fund in 2022 to provide strategic and finan-
cial support to technology-oriented startups of high growth
potential in diverse sectors. In addition to providing strategic
and financial benefits to our company with the synergies to
arise from startups, we also financially support our nation’s
startup ecosystem and aim to create long term value.
On October 29th, Republic Day, Togg, Turkey’s globally scaled
mobility technology brand opened its Technology Campus in
Gemlik. We share Togg’s excitement on its path to becoming a
global automotive brand, and as Turkcell, one of its main sha-
reholders since day one, we are honored to support it with
our experience, knowledge and vision. As well as being inves-
tors, we also work to create integrated value with our digital
services in the domestic automobile project, which will beco-
me a new living arena focused on the user within the mobility
ecosystem. In this context, we are integrating Paycell’s payment
systems solutions into Togg’s mobility systems.
As we pursue our renewable energy investments aimed at re-
ducing the impact of climate change while lowering energy
supply costs and ensuring supply security, we have made sig-
nificant progress in our strategy of becoming an auto-genera-
ting digital operator. We aim to continue this focus by installing
renewable energy power plants that generate 300 MW of ins-
talled capacity by the end of 2025, and maintaining this focus
over the coming periods.
Leveraging our high-tech solutions we continue efforts to take
advantage of Turkey’s geographical location, which renders the
country an important transit point for internet traffic, to trans-
form our country into a data base, and to keep our country’s
data within its borders. While maintaining our leader position in
data center operation, we continue to strengthen this position
with new modules at our Gebze and Temelli data centers, the
construction of which began this year. In this direction, as the
pioneer of Turkey’s digital transformation we provide cost ad-
vantage and help increase operational efficiency by providing
data storage and cloud services to over three thousand corpo-
rate customers. We achieve this on approximately 40 thousand
square meters of white space at our eight data centers.
With 5G, set to be among the key technological developments
within our country over the coming years, developments rela-
ted to the Internet of Things, autonomous vehicles and produc-
tion technologies have begun to gain momentum. Thanks to the
test studies carried out over our pilot networks to efficiently de-
liver these technologies to our customers, we are the pioneers
of 5G studies in our country. A status ensured by the lead roles
we undertake in both national and international consortiums.
Accordingly, we began to offer 5G technology to our customers
at Istanbul Airport in 2022.
With our vision of superior digital services for a better future, we
work to eliminate our negative impact and increase our posi-
tive one in every field through the equalizing and restorative
power of technology. We realize this transformation by enga-
ging our entire ecosystem, thereby transforming for the bet-
ter together. This is why we have adopted the motto “Positive
Imprint on Sustainability”.
We pay attention to using clean and efficient energy while de-
veloping our products and services, and strive to be a solution
to the climate crisis with our products and services. And with
our belief in circular functioning, we extend the life cycle of our
products and ensure that once products become unusable
their life cycle concludes through “recycling”.
In this context, we have focused our strategy on environmen-
tal sustainability in three areas: Efficient and renewable ener-
gy use, emission reduction in our business and our customers’
lives, and circular operation. We are the only operator in Turkey
to have achieved an A- score in the Carbon Disclosure Project
(CDP), one of the world’s largest initiatives to fight climate chan-
ge. With the purchase of a 1,000,000 kWh YEK-G license in
2022, we zeroed our indirect Category 2 emissions from impor-
ted energy.
On the educational front, we establish technology classrooms
with our Whiz Kids project so that children become generations
that produce rather than consume technology. Meanwhile, our
Digital Spring project establishes technology rooms in nursing
homes whereby our elderly people can also benefit from broad
advantages of the online world. We also provide digital litera-
cy training over Turkcell TV+. In addition, we contribute to equal
participation through technology of the disabled in daily in life
with projects such as “My Dream Companion”.
To champion women’s equal presence in the technological are-
na, we have set targets to increase the number of women in our
company at the employee, executive and board levels. We sup-
port women’s entrepreneurship and employment in technology
with projects such as “Women Writing the Future” and “Equal
Chances Equal Conditions”.
In past years, we have completed our sustainability-oriented
transformation with the policies and roadmaps created throu-
gh an internal review of all our processes. In 2022 as part of this
transformation, we continued efforts to involve our stakehol-
ders across our entire ecosystem. First of all, we shared Turkcell’s
roadmap to becoming a “carbon net zero company” by 2050
with all our employees. In order to increase employee motiva-
tion on this topic, we supported the process with sustainability
goals, competitions and awards that reflect their performance.
In 2022, as the pace of digitalization increased and the impor-
tance of telecom services came to the forefront in every aspect
of our lives, we maintained our customer orientation, delivering
innovative solutions and achieving successful results. I would
like to thank all my colleagues who contributed to this success,
our Board of Directors and all our stakeholders for their trust
and support.
Sincerely,
Murat Erkan
Chief Executive Officer
8 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 9
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Board of Directors
Bülent Aksu
Figen Kılıç
Nail Olpak
Chairman of the Board
Board Member
Board Member
Bülent Aksu has 26 years of managerial experience in
finance, accounting, tax and management fields in var-
ious sectors including telecommunications, energy, pet-
rochemicals, textiles and audit. He began his career at
Inspection Board of Kuveyt Türk A.Ş. as an Auditor, and
then undertook Finance Manager and Group Finance
Director roles, respectively at Çalık Holding in 2003.
Between 2008 and 2012, he served as CFO at Akfel
Group.
Mr. Aksu undertook CFO role at Azerbaijani National
Oil and Gas Company’s (SOCAR) subsidiaries Petkim
Petrokimya Holding A.Ş. and STAR Rafineri A.Ş., respec-
tively from 2012 to 2016.
Bülent Aksu carried out numerous mergers and acqui-
sitions transactions in various industries, and actively
managed financial transactions including project fi-
nancing and bond issuance in international and domes-
tic markets.
He led the completion of the financing agreement of
USD3.3 billion with 18 years maturity signed between 23
local and international financial institutions and STAR
Rafineri, one of the most prominent industrial investments
of our country. This agreement had been the top project
financing transaction made in Turkey to that date in
terms of amount and maturity.
Bülent Aksu served as CFO of Turkcell from July 20, 2016
to July 17, 2018. Mr. Aksu made valuable contributions
to Turkcell having implemented international practices
enabling Turkcell to become an exemplary company of
our country in terms of balance sheet and FX risk man-
agement along with his innovative solutions to funding
investments. In 2016 and 2018, Mr. Aksu was voted among
the top 50 most influential CFOs in Turkey by the Fortune
Turkey magazine. Mr. Aksu served as Deputy Minister for
the Ministry of Treasury and Finance between August 3,
2018 and January 29, 2021. He served as a Board Member
of Türk Telekomünikasyon A.Ş. from November 2018 to
March 2019. Bülent Aksu served as a member of Turkcell
Board of Directors between March 2019 and March 2020.
Between May 2019 and February 2021, he served as the
Chairman of Board of Directors of Turk Eximbank. Mr.
Aksu was appointed as the Chairman of Turkcell’s Board
of Directors effective as of March 12, 2020.
Mr. Aksu represented our country as Sherpa at the G20
summit in 2018, and as Turkey Governor at the Asian
Development Bank (ADB) and the African Development
Bank (AfDB); Turkey Deputy Governor at the World
Bank (WB), European Bank for Reconstruction and
Development (EBRD) and Asian Infrastructure Investment
Bank (AIIB); as Turkey Executive Director at Islamic
Development Bank (IsDB) between August 2018 and
January 2021.
Bülent Aksu graduated from Istanbul University Faculty
of Business Administration (English) in 1996.
Figen Kılıç, born in 1970 in Gaziantep, graduated from
Selçuk University, Electrical Electronics Engineering
department and received her Master’s Degree
from Gebze High Technology Institute, Electrical
Engineering Department. Trained in project man-
agement, process management, and test engineer-
ing, Kılıç also graduated from the Anadolu University
Faculty of Open Education, Department of Law, and is
studying in the Department of Business Administration
of the same university. Figen Kılıç, started her career
as technical translator in İhlas Group, before mov-
ing to İstanbul Municipality BELBİM A.Ş. in 1995 for a
lengthy period, working on payment projects as R&D
engineer, Project Coordinator and R&D Manager. In
2010, she transferred to E-Kent Ödeme Sistemleri A.Ş.
where she served as IT and Operational team man-
ager for electronic ticket and payment systems inte-
gration and management projects in various cities of
Turkey. In 2014, Figen Kılıç worked in Mobile Payment
and M2M & IoT teams at Turkcell İletişim Hizmetleri
A.Ş. and in 2015 was appointed to the Information
and Communication Technologies Authority (ICTA) of
Turkey as its first women board member. Kılıç became
the vice president of the board in 2018. After her term
in office ended in 2019, she acted as Service Delivery
General Manager of the Republic of Turkey Ministry
of Family, Labor and Social Services.
As of January 29, 2021, she was appointed to the
Turkcell Board of Directors. At the Ordinary General
Assembly Meeting for 2020, held on April 15, 2021,
Figen Kılıç was re-elected as the Member of the
Turkcell Board of Directors.
Nail Olpak, was born in 1961 in İbecik, Burdur. He graduated
from Aydın High School. Having graduated from Istanbul
Technical University Faculty of Mechanical Engineering, Mr.
Olpak completed his master’s degree in the field of Energy.
Mr. Olpak serves as the Chairman of the Board of NORA
Elektrik AS and PAK Yatirim AS and as the board member of
companies in which these companies have shareholdings.
As part of his activities in NGOs and for public welfare; Mr.
Olpak serves as the Chairman of the Board of Directors of
DEİK, Board Member of Export Credit Bank of Turkey (TURK
EXIMBANK), Board Member of Turkcell, Board Member of
İstanbul Development Agency (İSTKA), Member of High
Advisory Board of MÜSİAD, Member of the Founding
Committee of International Technological, Economic and
Social Research Foundation (UTESAV), Member of the
Board of Trustees of Tourism Development and Education
Foundation of İstanbul Chamber of Commerce (TUGEV),
Member of Founders Board of İlim Yayma Foundation,
Member of the Board of Trustees of Huzur Hospital
Foundation, Member of the Board of Trustees of Human
Development and Societal Education Foundation (İGETEV),
Member of the Board of Trustees of the Foundation
for the Support of İstanbul Medeniyet University. Nail
Olpak also served as the 5th Period Chairman of MÜSİAD
(Independent Industrialists and Businessmen’s Association)
and the Chairman of MÜSİAD High Advisory Board, Council
Member of B20 Steering Committee of Turkey, Council
Member of İTO (Istanbul Chamber of Commerce), Board
Member of İDTM (Istanbul World Trade Center), Board
Member of the Huzur Hospital Foundation, Board Member
of ENVERDER (Energy Efficiency Association), Member
of High Advisory Board and Board Member of MMG
(Architects and Engineers Group), Founding Committee
Member of Turkish-Japanese University, Member of the
Board of Trustees of Commercialize Center Istanbul (CCI),
Board Member of Turkey Silicon Valley.
Mr. Olpak was appointed as a member to the Turkcell
Board of Directors, effective as of March 6, 2020. At the
Ordinary General Assembly Meeting for 2021, held on June
16, 2022, Nail Olpak was re-elected as a member of the
Turkcell Board of Directors. Nail Olpak was granted the title
of Honorary PhD in the branch of International Relations
by Ahi Evran University and Mehmet Akif Ersoy University.
Olpak is married and is the father of two sons who are
Architect and Mechatronic Engineer. He speaks English
very well.
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POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Tahsin Yazar
Şenol Kazancı
Sir Julian Horn-Smith
Afif Demirkıran
Board Member
Board Member
Board Member
Independent Board Member
He was born in 1975, in İstanbul. He graduated from
Istanbul University, Faculty of Law. Şenol Kazancı
worked as TVNET General Manager between 2007
and 2011, as the Chief Advisor of the Prime Minister
between 2011 and 2014, and as Chief Advisor to the
President in 2014. He lastly served as the Chairman
and General Manager of the Anadolu Agency
between 2014 and 2021. At the Ordinary General
Assembly Meeting for 2020, held on April 15, 2021,
Şenol Kazancı was elected as the Member of the
Turkcell Board of Directors.
Tahsin Yazar was born in İspir, Erzurum in 1975. He
graduated from Ankara University Faculty of Law in
1996. After starting his career as a freelance lawyer,
he continued at Devres Law Office and Zorlu Holding
A.S., respectively. Mr. Yazar joined Calik Holding Inc.
in 2010 as Director of Energy Group Legal Affairs
and also acted as a board member of Yesilirmak
Electricity Distribution Inc. and Aras Electricity Retail
Sales Inc. Mr. Yazar was appointed as Advisor to the
Minister of Energy and Natural Resources on January
12, 2016. As of August 1, 2018, he was appointed as
Advisor to the Minister of Treasury and Finance.
Tahsin Yazar, who started acting as a self-employed
lawyer in 2021 after the replacement of the Minister,
was appointed as an independent member of the
Board of Directors of Turkcell by the Capital Markets
Board of Turkey on March 6, 2020. At the Ordinary
General Assembly Meeting for 2020, held on April 15,
2021, Tahsin Yazar was elected as the Member of the
Turkcell Board of Directors. He is married and is the
father of two children.
Sir Julian Horn-Smith was born in London in 1948 and
graduated from London University with a B.Sc. Hons
in Economics. He completed his master’s degree in
Business Administration (M.Sc.) at Bath University and
in 2010 was also awarded a DLL Hon. He served as
Pro-Vice-Chancellor at Bath University for 8 years. He
has held various senior positions at Vodafone Group
since its foundation in 1984. He served as the CEO of
Vodafone International between 1988 and 2006. Sir
Julian also served as Vodafone Group’s COO for six
years where he was a main Board Director. He also
served as a member of the Board of Directors and
Risk Committee of Lloyds Banking Group, and Advisor
to the Chairman of Etisalat. He was appointed to the
Turkcell Board of Directors on April 15, 2021. Sir Julian
was honoured with a Knighthood by HM The Queen
for services to International Telecommunications in
2004. In addition to his position at Turkcell, Sir Julian
is also The Chairman of eBuilder AB (Sweden) and
a Senior Advisor at Viasat (U.S.). He is also a Non-
Executive Director of Digicel Group. He works as
a Senior Advisor at AlixPartners (U.S. Consultancy)
and until December 2021 as a Senior Advisor at UBS
Investment Bank. Sir Julian has served on a number
of public company boards including Smiths Group
Engineering, Lloyds Banking Group, Sage Group
(Software), China Mobile and Verizon Wireless (U.S.).
He is married and has four children.
Afif Demirkıran was born in Siirt in 1952. Having com-
pleted his primary and secondary education in Siirt,
Afif Demirkıran graduated from Mining Faculty of
Istanbul Technical University in 1973. Later he studied
engineering 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 Directorate
at the Undersecretariat of Treasury, as a Board
Member of Eregli Iron and Steel Inc. and Sümerbank
A.Ş., as various executive positions in private sec-
tor companies, as General Manager and Chairman
of Turkish Electricity Generation and Transmission
Company (TEAŞ), and as General Manager of Vakıf
Enerji ve Madencilik A.Ş.. Being active in politics since
2002, Afif Demirkıran served as Batman Deputy in
the 22nd, and Siirt Deputy in the 23rd and 24th periods
of the Grand National Assembly Turkey. In the 22nd
period, he also served as a member of the State
Economic Commission for Enterprises, member of
Turkish Group OSCE PA and member of the Turkey-EU
Joint Parliamentary 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 pe-
riod, he also was the Deputy Chairman of Turkey-
Pakistan Inter-Parliamentary Friendship Group. Since
2016, he has been the Deputy Chairman of Foreign
Affairs Directorate of Justice and Development Party.
Mr. Demirkıran was appointed as an independent
member to the Turkcell Board of Directors by Capital
Markets Board Decision effective as of March 6, 2020.
At the Ordinary General Assembly Meeting for 2020,
held on April 15, 2021, Afif Demirkıran was re-elected
as the independent member of the Turkcell Board of
Directors. He is married and has four children.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Hüseyin Arslan
Serdar Çetin
Independent Board Member
Independent Board Member
Prof. Dr. Hüseyin Arslan, who was born in 1968, re-
ceived his bachelor’s degree from Middle East
Technical University, Department of Electrical and
Electronics Engineering in 1992. He completed his
master’s degree in 1995 and his doctorate in 1998
at the Southern Methodist University Electrical
Engineering Department. Hüseyin Arslan worked as
research engineer at Ericsson, consultant at Anritsu
Company, and held Membership of TÜBİTAK Science
Board and ULAK A.Ş and he has also won numerous
national and international scientific awards. Hüseyin
Arslan, who joined the Department of Electrical
Engineering at the University of South Florida in
August 2002, started working as the founding dean
to establish the Faculty of Engineering at Istanbul
Medipol University in 2013. Hüseyin Arslan served as a
consultant to many domestic and international com-
panies and organizations such as Anritsu, Türksat,
Savronik and TÜBİTAK. Having over 100 United States
Patent and Trademark Office’s (US) patents and ap-
plications, more than 10 patents of Prof. Dr. Arslan
have been licensed.
Working as the Dean of the Faculty of Engineering
and Natural Sciences of Istanbul Medipol University
and the manager of the “5G and Beyond Research
Laboratory”, Prof. Dr. Hüseyin Arslan is married and
has three children. At the Ordinary General Assembly
Meeting for 2020, held on April 15, 2021, Hüseyin Arslan
was elected as the Independent Member of the
Turkcell Board of Directors.
Serdar Cetin graduated from Middle East Technical
University, Civil Engineering department and holds
an MSc in Management (Grande Ecole) from HEC
School of Management in Paris with a major in stra-
tegic management. Serdar Cetin has served at the
board of Play Group from July 2007 till November
2020. He was a management board member of Play
(P4 Sp.zo.o.) from its inception (July 2005) till October
2006 and was a supervisory board member be-
tween July 2007 and June 2017. Following the IPO
of Play Group, he was appointed as a member of
the Audit Committee, Remuneration and Nomination
Committee and Operational and
Investment
Committee of Play Communications S.A. until its sale
to Iliad in November 2020. Serdar Cetin was a board
member of Turknet Iletisim Hizmetleri A.S. and its then
parent company NetOne Holdings S.a.r.l., between
2007 until April 2013. He served as a board member
or board observer in several telco or technology
companies including Machinezone, which is now
acquired by Applovin (USA), Netia (Poland), Forthnet
(Greece) and Be* Unlimited (UK). In addition, he served
as a board member of AASA Polska from August 2015
to December 2019. Serdar Cetin is a board member
of WOM S.A. Chile since July 2015. Additionally, he is
a partner of Novator Partners LLP, a London based
investment advisory firm. Prior to joining Novator,
Mr. Cetin worked at Merrill Lynch investment bank-
ing and BNP Paribas Asset Management in London.
At the Ordinary General Assembly Meeting for 2021,
held on June 16, 2022, Serdar Cetin was elected to
the Independent Member of the Turkcell Board of
Directors. He is fluent in English and French.
FOTOĞRAF EKLENECEK
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Executive Officers
Murat Erkan
Serhat Demir
Turkcell Chief Executive Officer
Executive Vice President - Legal and Regulation
Murat Erkan was appointed as Turkcell Chief
Executive Officer on March 15, 2019. Mr. Erkan,
who started his career at Toshiba, worked as an
Application Engineer at Biltam Mühendislik and
then served as the first “System Engineer” of Turkey
at Cisco Turkey. He served as Chief Officer at Cisco
Systems in charge of Technology, Sales, Business
development and Channel Management. Mr. Erkan
served as the Business Unit Manager at Aneltech
working on solutions related to telecommunications,
mobile, ICT, the defense industry and industrial
products sectors starting from 2006. Murat Erkan
joined Turkcell Group in June 2008 as the General
Manager of Turkcell Superonline, and he assumed
the role of Executive Vice President of Sales from
December 2015 to March 2019. Murat Erkan grad-
uated from Yıldız Technical University Electronics
and Telecommunication Engineering Department.
He completed the Strategic Marketing Program at
Harvard Business School in 2010.
Serhat Demir joined Turkcell as the Executive Vice
President of Legal and Regulation Function on May 18,
2015. In addition to his current role, he served as acting
Executive Vice President of Human Resources between
March 16, 2020 - August 30, 2021, and continues to serve
as the chairman of Ethics Committee, Compliance
Committee and Personal Data Steering Committee. Mr.
Demir started his professional career in 1997 at Dun &
Bradstreet Turkey office. From 2003 to 2007 he worked
at Yıldız Holding Legal Consultancy Department and in
2007 he served as the Legal Counsel at Çalık Holding
A.Ş. Between 2009 and 2015, Mr. Demir undertook Çalık
Holding Legal Affairs Director role and in the meantime,
he also served as member of Board of Directors at
holding level and at group companies that operated in
telecom and finance fields in Turkey and abroad. Serhat
Demir graduated from the Faculty of Law at Istanbul
University. He received his MBA degree from Fatih
University and completed Executive Education Program
at Harvard Law School.
Osman Yılmaz*
Kadri Özdal
Executive Vice President - Finance (CFO)
Executive Vice President - Consumer Sales
Osman Yılmaz was appointed as Turkcell Chief
Financial Officer on August 1, 2018. Mr. Yılmaz started
his professional career at Türkiye İş Bankası Treasury
Department in 2006. In 2007, he worked at BNP/TEB
Treasury Department. From 2008 to 2016, he served
as Senior Fund Manager in Structured Products and
Group Head of Fixed Income and Multi Asset Funds
at HSBC Global Asset Management. In August 2016,
he joined Turkcell family as Director of Treasury,
Risk and Collection Management. Mr. Yılmaz holds
a dual BSc degree in Economics and Management
from London School of Economics and Istanbul
Bilgi University, MSc in Financial Engineering from
Boğaziçi University and a PhD in Finance from
Özyeğin University.
Kadri Özdal was appointed as the Executive Vice
President of Consumer Sales on September 26, 2019. He
started his professional career at Vodafone in 1999 and
worked in sales, marketing and commercial operations
departments. He then joined Turk Telekom and held po-
sitions in sales development, channel optimization and
management functions. He served as sales development
director and then as CSO from 2011 to 2012. Between
2012 and 2016, Kadri Özdal took part in foundation and
management of n11.com which is one of the largest
e-commerce platforms in Turkey and held CSO role. In
February 2016, he joined Turkcell as Alternative Sales
Channels Director and managed non-exclusive and dig-
ital sales channels. He lastly served as Retail Channels
Sales Director. Kadri Özdal graduated from Dokuz Eylül
University, Faculty of Economics and Administrative
Sciences, Department of Public Administration.
*Osman Yılmaz has decided to resign from his position effective as of February 28, 2023. Mr. Kamil Kalyon, Financial Planning and Analysis Director at our Company, will also serve as the
acting Executive Vice President of Finance in addition to his current role effective as of March 1, 2023.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Ceyhun Özata
Ataç Tansuğ
Executive Vice President - Corporate and Residential Sales
Executive Vice President - Digital Services and Solutions
Ceyhun Özata was appointed as the Executive Vice
President of Corporate and Residential Sales on
September 26, 2019. He started his professional career
at Reuters and worked as a Customer Advisor from
1995 to 1996. He held Assistant Manager of Customer
Operations role at Superonline from 1996 to 1999. He
served as a CRM and Product Management Manager
at IXIR AŞ from 1999 to 2001. Starting from 2002, Özata
held Project Manager, Online Sales Manager, CRM &
Direct Sales Director, and Marketing Director positions
at Turkcell Superonline. From 2008 to 2015, he served as
the Vice President of Retail Sales at Turkcell Superonline
which accelerated fiber infrastructure investments.
Lastly, starting from 2015, he served as the Sales Director
of Turkcell Residential and Small Medium Enterprises.
Ceyhun Özata graduated from Boğaziçi University,
Department of Electronics.
Ataç Tansuğ was appointed as the Executive Vice
President of Digital Services and Solutions on September
26, 2019. Mr. Tansuğ started his professional career as
System Support Engineer at Datapro in 1999. Between
2002 and 2009, he served as International NGN/IMS
Service Support Engineer, Team Leader and Team
Manager in Alcatel-Lucent. From 2009 to 2011, he held
Product Service Director role responsible for Turkey
and Azerbaijan and Global Customer Service Director
role in his last two years in the company. He joined
Turkcell Group as the Chief Technology Officer of
Turkcell Superonline in 2013. Later he was appointed
as Transmission & Core Network Planning Director
at Turkcell in 2016. Lastly, he held Digital Services &
Solutions Technology Director position at Turkcell in 2017.
He graduated from the Department of Civil Engineering
at Boğaziçi University.
Fatih Alper Ergenekon
Serkan Öztürk
Executive Vice President – Marketing
Executive Vice President - Information and Communication
Technologies & Executive Vice President - Digital Transformation
Fatih Alper Ergenekon was appointed as the Executive
Vice President of Marketing on April 29, 2020. He
started his professional career as a project manag-
er at OTA NGO in Berlin, Germany in 1996. He worked
as a consultant at I-BIMSA between 1997-2000. After
receiving his Master’s degree in Business Administration
from the University of Rochester, New York in 2002, he
worked as a Senior Marketing Specialist at FedEx USA
headquarters in Memphis, Tennessee between 2002-
2005. He joined the Marketing Department of Turkcell
in 2005 and was appointed as Marketing Manager in
2006 and Marketing Director in 2010. Lastly, he served
as Strategy Director starting from September 2018.
Fatih Alper Ergenekon received his Bachelor’s degree
in Industrial Engineering from the Middle East Technical
University in 1996.
Serkan Öztürk joined Turkcell in 2000 as Project
Supervisor. In September 2015, he was appointed
as the Executive Vice President of Information and
Communication Technologies. Between 2017-2019, he
also served as the Executive Vice President of Customer
Experience in addition to his existing role. Previously, he
worked as project supervisor and manager at Turkcell
Project Management office between 2000-2009. He
served as Chief Information Technologies Officer in life –
Ukraine between 2009-2010 and in Turkcell Superonline
between 2010-2011. Prior his to his last appointment,
he served as Customer Relations Management and
Business Intelligence Solutions (CRM & BIS) Director.
Serkan Öztürk graduated from Middle East Technical
University Electrical and Electronics Engineering de-
partment. He received his MBA degree from Istanbul
University. In addition to his existing role, he assumed
Executive Vice President role responsible for Digital
Transformation as of August 2022.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Gediz Sezgin
Hüseyin Çakmak
Executive Vice President - Network Technologies
Executive Vice President - Human Resources (Acting)
Gediz Sezgin joined Turkcell as a Network Engineer
in 1995. In October 2015, he was appointed as the
Executive Vice President of Network Technologies.
Previously, he served as Senior Vice President of
Information and Communication Technologies, Chief
Information and Communication Technologies Officer,
Director of Application Operations, Director of Service
Network under the ICT Function and held various
executive positions in the Technology Function such
as Superonline Chief Technology Officer. Mr. Sezgin
started his career at Alcatel Teletaş in 1991. He grad-
uated from Istanbul Technical University Electronics
and Communication Engineering Department and
received his Master’s Degree and PhD from the same
university.
Hüseyin Çakmak, graduated from Anadolu University,
Department of Political Science and Public Administration
in 2003, and completed his master’s degree in
Management Science at Kocaeli University, Department
of Political Science and Public Administration in 2006.
He started his career in the family company as Sales
Operations Executive in 2003 and performed until 2006.
In 2007, he attended Yıldız Holding Human Resources
Organization and respectively acted as; Human
Resources Manager of the Packaging, IT and Real Estate
Group Presidency between 2007-2011; Human Resources
Manager of the Food and Beverage Group Presidency
between 2011-2015; Human Resources Group Manager of
the Retail Group Presidency between 2015-2019. After act-
ing as the Human Resources Group Director and Member
of Executive Board at Aydem Holding between 2019-
2020, he joined Turkcell in August 2020 as the Employee
Experience and Talent Recruitment Director. Effective
as of November 24, 2022, Mr. Hüseyin Çakmak has been
the acting Executive Vice President of Human Resources,
which become vacant after Mr. Ali Rıza Esmen who has
been serving as Executive Vice President of Human
Resources of our Company since September 1, 2021.
Ali Türk
M. Akif Konar
Executive Vice President - Supply Chain Management
Executive Vice President - Strategy
Ali Türk joined Turkcell as the Senior Vice President
of Supply Chain Management in May 2016. He was
appointed as the Executive Vice President of Supply
Chain Management in March 2017. Mr. Türk started his
career at Başak Hayat Sigorta in 1999. From 2002 to
2007, he held various managerial positions respon-
sible for logistics planning, warehouse, and supply
chain management processes at Ülker Group com-
panies. From 2007 to 2011, he worked at Ceva Lojistik
as Warehouse and Value-Added Operations Group
Manager. Mr. Türk joined Turkish Airlines in 2011 as
Cargo Operations Vice President. He was appointed
as Turkish Airlines Cargo Operations President in 2012.
Ali Türk graduated from Istanbul Technical University
Industrial Engineering Department and completed
Executive MBA program of Istanbul Technical University.
M. Akif Konar was appointed as the Executive Vice
President of Strategy on September 1, 2021. Starting
his career in 1995, Konar worked as a Specialist at
Belbim A.Ş., as Application Specialist at Vestel Group
of Companies, and System Development Manager at
Opet Petrolcülük A.Ş, respectively. Between 2004 and
2013, Konar served as Production Planning Manager,
Investment Planning and Projects Manager, America
and Far East Regional Manager, Production Planning
Head, Marketing and Sales Head at Turkish Airlines,
respectively. He assumed the role of Chief Commercial
Officer in the company between 2013 and 2021. Mr.
Konar also served as an Audit Comitee Member and as
a Board Member at SunExpress and as a Board Member
at TCI Turkish Cabin Interior Inc.. He completed his
undergraduate and graduate studies in Management
Engineering at Istanbul Technical University.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Top Management of Subsidiaries
Murat Erkan
Erdal Yayla
Chief Executive Officer
See page 16 for the resume.
General Manager of BeST
BeST General Manager Erdal Yayla joined Turkcell
İletişim Hizmetleri A.Ş. as a Financial Controller &
Reporting Specialist in 2003. He served as the Manager
of Financial Accounting, Controlling and Reporting
Department (2004-2010), Deputy General Manager
of Finance (2010-2016) and Acting General Manager
(2014-2015), respectively at lifecell, Turkcell’s subsidiary
in Ukraine. He served as the Deputy General Manager
of Finance at BeST, Turkcell’s subsidiary in Belarus,
starting from March 2016, and he assumed the Acting
General Manager role starting from November 2018 un-
til March 2020 in addition to his existing responsibility.
Mr. Yayla serves as BeST General Manager since March
2020. Mr. Yayla started his career as a Senior Auditor at
PricewaterhouseCoopers in 1999, and then worked as
a Financial Controller at LafargeHolcim in 2002. Erdal
Yayla graduated from Marmara University Faculty of
Economics and Administrative Sciences in 1999 and
completed the Executive Development Program at
Wharton School in 2016.
İsmet Yazıcı
Çağatay Aynur
General Manager of lifecell Ukraine
General Manager of Turkcell Global Bilgi
İsmet Yazıcı joined Turkcell in 2009. Mr. Yazıcı has been
serving as the General Manager of lifecell, Turkcell’s sub-
sidiary in Ukraine, since May 2017. Prior to this position,
Yazıcı worked as the Deputy General Manager of Sales
and Business Development at Global Tower between
2009 and 2010. He served as the General Manager of
Global Tower between 2010 and 2011. From 2011 to 2015,
he served as the General Manager at BeST, Turkcell’s
subsidiary in Belarus, and as General Manager at
Kuzey Kıbrıs Turkcell between 2015 and 2017. Beginning
his professional career in 1993, Yazıcı served as the
Research & Development Engineer, International Sales
Engineer, Romania Country Manager, Product Marketing
Manager, EMEA Region CDMA Business Development
Director, and Enterprise Leader, respectively, at the
Turkey and USA offices of Nortel until 2009. İsmet Yazıcı
received his bachelor’s degree in Electrical-Electronics
Engineering from Hacettepe University in 1992, and his
postgraduate degree in Political Science from Marmara
University in 1998 and in International Marketing and
Management from the University of Texas in 2001. In 2011,
he received his second undergraduate degree from
Istanbul University, Faculty of Law.
Çağatay Aynur joined Turkcell Group in 2000. On July
1, 2015, he was appointed as the General Manager of
Turkcell Global Bilgi. Prior to this role, he served as the
Regional Manager in charge of Strategic Customers and
Public Affairs, Sales Manager in charge of Large Scale
Businesses, Corporate Sales Director in charge of Large
Scale Businesses and Corporate Sales Director in charge
of Mid-Scale Businesses at Turkcell. Mr. Aynur graduated
from Department of Metallurgical Engineering at Middle
East Technical University in 1993.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Z. Korhan Bilek
Erkin Kılınç
General Manager of Turkcell Finansman / Financell
General Manager of Turkcell Energy Solutions
Korhan Bilek joined Turkcell team as Investor Relations
and Mergers & Acquisitions Director in November 2016,
and was appointed as Treasury and Capital Markets
Management Director in December 2018. Since July
2020, he serves as Turkcell Finansman AŞ General
Manager and Board Member. Korhan Bilek is also a
member of the Board of Directors at Dijital Sigorta A.Ş..
He began his professional life as Research Analyst at the
Federal Reserve Bank in 2000. He served as an analyst
at AkInvest between 2002 and 2004 and Finance
Director at Sabancı Holding between 2004 and 2013.
Prior to Turkcell, he worked as CFO at Teknosa for 3
years and was a member of the Board of Directors at
CarrefourSA Turkey between 2011 and 2016.
Korhan Bilek has a M.S. degree from Boğaziçi University
Electrical and Electronics Engineering department, and
received his MBA from University of Rochester.
Erkin Kılınç joined Turkcell Energy Solutions as
the General Manager in 2017. Kılınç began his ca-
reer at Ode Insulation as Sales Specialist in 1998.
Subsequently, he served as Sales Specialist at Doğan
Foreign Trade&Agency Operations (2001-2003), as
Energy Trade Group Manager at Akenerji (2003-
2009), as Energy Projects Coordinator at Akfel Group
(2009-2011), as Turkey Sales Director at RWE (2011-2015)
and as Assistant General Manager at Limak Energy
(2015-2017). Erkin Kılınç received his bachelor’s degree
in Mechanical Engineering from Istanbul Technical
University in 1998, and Executive MBA degree from Işık
University in 2003.
Murat Küçüközdemir
Gürkan Arpacı
General Manager of Kuzey Kıbrıs Turkcell
General Manager of Turkcell Digital Business Services
Murat Küçüközdemir graduated from İstanbul
Technical University, Department of Electronics and
Communication Engineering in 1992. He started his pro-
fessional life in 1993 and assumed technical and man-
agerial roles at Telemesaj A.Ş., İntelnet A.Ş. and Elkotek
A.Ş. companies until 2005. He continued his career as
the General Manager of Gisad Telekom A.Ş. between
2005 and 2007. Between 2007 and 2011, he worked as
Assistant General Manager and General Manager at
Global İletişim A.Ş. Murat Küçüközdemir, who joined
the Turkcell family in 2011 after the acquisition of Global
İletişim by Turkcell Group, worked as Data Center and
Cloud Information Technologies Consultant, Corporate
Fixed Products Marketing Director and Public Sales
Director at Turkcell. In April 1, 2019 he was appointed as
the Sales & Marketing Director of Kuzey Kıbrıs Turkcell. In
May 1, 2021, he was appointed as the General Manager
of Kuzey Kıbrıs Turkcell, where he served as Acting
General Manager since February 1, 2021. He completed
Insead Business School Leadership Development and
IMD Business School Global Leadership programs.
Gürkan Arpacı completed his bachelor’s degree in
Electronics and Communications Engineering from
Istanbul Technical University in 1993, and Strategic
Management Programme at Cornell University in 2010.
Arpacı, who began his career at Schneider Electric,
worked in the Technology Department during the
establishment phase of Turkcell, and served as the
Founding Partner and Managing Director of EreNet &
EreSis companies between 1995-1998. Subsequently, he
worked as a Senior Business Consultant at Global One
(Ex-Equant), and later served as the Communications
Industry Business Unit Manager at HP between
2000-2008. Arpacı joined Turk Telekom in 2008 to es-
tablish corporate customer segmentation and acted as
Turk Telekom Group Corporate Segment Management
Director. Up until the end of 2015, he managed all of the
corporate segments (SME, Medium & Large Scale and
Strategic) of Türk Telekom, TTNet and Avea companies,
including group synergy with Innova. Gürkan Arpacı
joined Turkcell team as Strategic Corporate Segment
Management Director in 2015 and was appointed as
General Manager of Turkcell Digital Business Services as
of 1 April 2022.
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INCLUSIVE POSITIVE IMPRINT
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APPENDICES
Atilla Yıldız
Emre Erdem
General Manager of Atmosware Teknoloji A.Ş.
General Manager of Turkcell Superonline
Atilla Yıldız joined Turkcell family in 2000. After serving
at departments of Network Operations, Service Control
Center and Business Intelligence Systems, he man-
aged the units of Integration Management, Platforms
& Services, and Value Added Services. Between 2014-
2018, he served as Application Operations Director
and between 2018-2021 he served as Industrial and
Financial Technology Solutions Director. In September
2021, Mr. Yıldız was appointed as Atmosware Teknoloji
General Manager. Mr. Yıldız, graduated from İstanbul
Technical University, Department of Electronics and
Communication Engineering in 1999.
Emre Erdem graduated from Istanbul Technical
University, Department of Management Engineering.
Starting his professional career as Financial Auditor at
Arthur Andersen in 2000, Mr. Erdem worked as Senior
Auditor at Ernst & Young until 2004 and transferred
to the telecommunications sector, which was being
liberalized at that time, as Billing & Customer Accounts
Manager at Borusan Telekom.
In 2007, he started working at Turkcell Superonline,
the fixed telecommunication services company of the
Turkcell Group, and served as Finance Manager and
Customer Operations Manager, and in 2009 he worked
as a manager in the newly created Operator Relations
and Wholesale Department. Emre Erdem, who became a
director in 2013, has been serving as Turkcell International
and Wholesale Management Director since 2019. In addi-
tion to this role, Emre Erdem has been working as Turkcell
Superonline General Manager since April 2021.
Serhat Dolaz
Uğur Çağlar
General Manager of Paycell
General Manager of Turkcell Dijital Sigorta A.Ş.
Serhat Dolaz, who joined the Turkcell family in 2009,
is the General Manager of Paycell, a new genera-
tion payment and financial services platform. Dolaz,
graduated from Yıldız Technical University with a
degree in Electronics and Communication Engineering
and completed the Bahçeşehir University MBA pro-
gram. After taking several technological management
positions in Turkcell Teknoloji A.Ş. and Paycell, he took
on responsibilities as CTO and Deputy CEO of Paycell
most recently. He is also an Executive Board Member
of Sofra A.Ş. (Paye) and Vice Chairman of the Board of
TÖDEB (Association of Payment and Electronic Money
Institutions of Türkiye).
Uğur Çağlar graduated from Middle East Technical
University Industrial Engineering Department and
received his Executive MBA degree from Koç University.
Starting his professional career as a Management
Consultant at PricewaterhouseCoopers, Uğur Çağlar
later worked for Booz Allen Hamilton in Turkey and the
Middle East. He joined the financial services sector in
2007 with TEB (a BNP Paribas Company) as Strategic
Planning Manager. He later moved on to the insurance
domain with BNP Paribas Cardif as Chief Marketing
Officer. He worked for Azərbaycan Sənaye Siğorta
Company in Baku, Azerbaijan as an expatriate General
Manager, and later as the Chairman of the Board
between 2015-2019. In early 2019, he worked for MetLife
as AVP of Business Development and Corporate Sales.
He recently joined Turkcell as the General Manager
of Turkcell Dijital Sigorta A.Ş., the insurtech initiative, in
August 2022.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
About the Report
Turkcell at a Glance
We are proud to present
Turkcell’s third integrated
annual report, published
in line with Turkcell’s trans-
parent and accountable
governance principle, for
the attention of our stake-
holders. With the reports
we publish annually, in
addition to Turkcell’s finan-
cial performance, we aim
to reflect a holistic view of
our strategies, approach-
es, activities and perfor-
mance in social, economic,
environmental and corpo-
rate governance aspects,
in line with our integrated
value creation model.
This report, issued in compliance with
the Turkish Commercial Code (TCC)
the Capital Markets Board’s
and
(CMB) Communiqué Serial
II.14.1 on
“Principles on Financial Reporting
in the Capital Markets” and con-
Integrated Report (IR)
sidering the
Framework Principles published by
the International Integrated Reporting
Council (IIRC), aims to provide all stake-
holders with a comprehensive review
of Turkcell’s integrated and sustainable
value creation approach, managerial
capabilities and the outcomes of the
efforts carried out in this regard.
in accordance with
İletişim Hizmetleri A.Ş. has
Turkcell
reported
the
GRI Standards, for the period from 1
January 2022 - 31 December 2022. In
addition to financial and operational
data presented in the report due to le-
gal compliance, material sustainability
issues which refer to social, econom-
ic and environmental performance
for the integrated value model have
been identified in accordance with the
principles listed in the GRI Standards.
The content of the report also re-
sponds to the indicators of COP on
United Nations Global Compact that
Turkcell joined among the signatories
in 2007, CMB Sustainability Principles
Compliance Framework, and SASB
Telecommunication Services.
The report content has been deter-
mined taking into account the social,
economic, environmental and gover-
nance factors included in the integrat-
ed value creation model in accordance
with the Company’s sustainability per-
spective. During the determination of
these factors, we aimed at covering the
information requirements of Turkcell’s
long-term investors (our shareholders,
bondholders and potential investors)
as well as a wide-range of corporate
stakeholders portfolio including pri-
marily Turkcell employees, customers,
public institutions and organizations,
and non-governmental organizations.
The terms “Turkcell”, “Company” and
“Organization” used in the report refer
to Turkcell Hizmetleri A.Ş. The financial
data provided in the report are con-
solidated so as to demostrate the or-
ganizational integrity of Turkcell in ac-
cordance with legal requirements and
international standards. Data regard-
ing social and environmental perfor-
mance cover the operations in Turkey
which constitute the most significant
portion of the Company’s activities, un-
less otherwise stated.
Turkcell’s journey of creating integrat-
ed value is being sustained and ex-
panded gradually in every period in
line with the principle of “for our stake-
holders, with our stakeholders”. You
may submit all your questions, opinions
and feedback about our efforts, stra-
tegic objectives and reporting activi-
ties at dahaiyibirdunya@turkcell.com.tr
Please refer to the Glossary section of
the report for the explanation of ab-
breviations and technical definitions
used in the report.
Turkcell has been op-
erating in the commu-
nications and technol-
ogy services field as
a pioneer of the tele-
communications sector
in Turkey since 1994.
Please visit www.turkcell.com.tr for
further information about Turkcell.
Turkcell, which started its operations
as a mobile communications company
29 years ago, has taken its place as a
key player in the development of the
telecommunications sector
in Turkey
by transferring its experience gained
over the years into integrated commu-
nications operatorship and then digital
operatorship.
Today, together with group companies
operating in various service catego-
ries, Turkcell serves its customers with
high-quality voice, messaging, data,
and IPTV services on mobile and fixed
networks, and offers value added and
innovative services in accordance with
its strategic focus areas, namely; digi-
tal services, digital business services
and techfin services. Having expanded
its operations abroad throughout the
years, Turkcell operates in 4 countries:
Turkey, Ukraine, Belarus and the Turkish
Republic of Northern Cyprus.
Turkcell launched LTE services on April 1,
2016. The company currently serves in 81
cities of Turkey with LTE-Advanced and
5 carrier aggregation technologies in
mobile communications, reaching spe-
eds up to 1.6 Gbps. The 234.4 Mhz total
spectrum bandwidth owned by Turkcell,
corresponds to 43% of the total spectrum
in Turkey available for mobile operators’
use. Besides providing fiber data access
at speeds reaching 10 Gbps in fixed te-
chnology, Turkcell pioneers 5G studies in
Turkey through the test runs it has been
conducting through its pilot network,
and the leading roles it has underta-
ken in national and international con-
sortiums. Upon the authorization of the
Ministry of Transport and Infrastructure,
Turkcell started offering the 5G techno-
logy in Istanbul Airport as of July 29, 2022.
Turkcell strives to offer equal and more
opportunities to all its stakeholders with
its vision of creating value for the society,
as well as offering high-quality service
and solution alternatives for the com-
munication and digital service needs
of its customers in its wide operational
geography.
Turkcell shares have been listed at both
New York Stock Exchange (NYSE) and
Borsa Istanbul (BIST) since July 2000.
Therefore, Turkcell is the only Turkish
company to be listed on both stock ex-
changes. Moreover, Turkcell’s debt ins-
truments are traded on the Irish Stock
Exchange. Turkcell is also a constituent of
the MSCI ESG Index and Borsa Istanbul
Sustainability
repor-
ted TRY 53.9 billion of revenues in 2022
with total assets of TRY 101.3 billion as of
December 31, 2022.
Index. Turkcell
53.9
TRY Billion
2022 Revenue
101.3
TRY Billion
Total Assets
Turkcell’s Shareholder Structure
Shareholders
Nominal (TRY thousand) Share (%)
TVF Bilgi Teknolojileri İletişim
Hizmetleri Yat. San. ve Tic. A.Ş.
IMTIS Holdings S.A.R.L.
Publicly traded*
Total
576,400
435,600
1,188,000
2,200,000
* Publicly traded shares also include ADS trading at NYSE.
26.2
19.8
54.0
100.0
28 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK B2; SPK C2.3;
GRI 2.1; GRI 2.2; GRI 2.3
GRI 2.1
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Group Companies
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
Global Bilgi
Pazarlama
Danışmanlık ve
Çağrı Servisi
Hizmetleri A.Ş.
100%
Lifecell
Ventures
Coöperatief U.A.
100%
Beltel
Telekomünikasyon
Hizmetleri A.Ş.
100%
Kıbrıs Mobile
Telekomünikasyon
Limited
100%
Eastasian
Consortium B.V.
100%
Turkcell Ödeme
ve Elektronik Para
Hizmetleri A.Ş.
9%
CJSC
20%
Turktell
Bilişim Servisleri
A.Ş.
100%
Limited Liability
Company
100%
Rehberlik
Hizmetleri
Servisi A.Ş.
100%
CJSC
80%
Lifecell
Digital Limited
100%
Turkcell
Gayrimenkul
Hizmetleri A.Ş
100%
Turkcell Satış ve
Dijital İş Servisleri
A.Ş.
100%
Kule Hizmet ve
İşletmecilik A.Ş.
100%
Atmosware
Teknoloji Eğitim ve
Danışmanlık A.Ş.
100%
Turkcell
Finansman A.Ş.
100%
Lifecell DiJital
Servisler ve
Çözümler A.Ş.
100%
Turkcell Teknoloji
Araştırma ve
Geliştirme A.Ş.
100%
Turkcell Dijital İş
Servisleri A.Ş.
100%
Superonline
İletişim
Hizmetleri A.Ş.
100%
Lifetech LLC
100%
Turkcell Dijital
Teknolojileri
Limited
100%
Türkiye’nin
Otomobili Girişim
Grubu Sanayi ve
Ticaret A.Ş.
23%
Lifecell Bulut
Çözümleri A.Ş.
100%
Dijital Eğitim
Teknolojileri A.Ş.
51%
Turkcell Enerji
Çözümleri ve
Elektrik Satış
Ticaret A.Ş.
100%
Boyut Grup
Enerji Elektrik
Üretim İnş. San. ve
Tic. A.Ş.
100%
BİP Digital
Communication
Technologies B.V.
100%
BİP İletişim
Teknolojileri
ve Dijital Servisler
A.Ş.
100%
Yaani Digital B.V.
100%
Lifecell LLC
100%
Paycell LLC
100%
Lifecell TV
Yayın ve İçerik
Hizmetleri A.Ş.
100%
Beltower LLC
100%
Turkcell
Sigorta Aracılık
Hizmetleri A.Ş.
100%
Turkcell
Ödeme ve
Elektronik Para
Hizmetleri A.Ş.
90.91%
Turkcell Dijital
Sigorta A.Ş.
100%
Lifecell Müzik
Yayın ve İletim A.Ş.
100%
Ukrtower LLC
100%
Paycell Europe
GmbH
100%
Sofra Kurumsal
ve Ödüllendirme
Hizmetleri A.Ş.
33.33%
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VALUE CREATING TURKCELL
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDIX
Our Vision
Superior digital
services for a better
future
Our mission
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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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDIX
Turkcell 2022 Awards
PSM Awards
Social Responsibility Category Silver
PSM Award – Paycell Forest Project
Customer Interaction and Experience
Category Silver PSM Award – Financell
Loan Process Project
Media Excellence
Awards
Auxiliary or Productivity Practices
Category First Prize – Turkcell Pasaj Gift
Assistant Page
Stevie Awards for
Women in Business Awards
Female-oriented CSR Projects Category
Stevie Award
Women Writing the Future
Climate Ideathon
Ipra Golden World
Awards
Art Communication, Event and
Sponsorship Category Awards
Turkcell Vadi
Turkey CXA’22 Customer Experience Awards
EBest Customer Feedback and Insight Category Gold Award
Project to Redesign the Invoice Process with Customer Feedbacks
Best Innovation in Customer Experience (Corporations) Category Silver Award
Let the Robot Do RPA Project
Best Customer Services (Up to 10.000 Employees) Category Silver Award
Outbound Excellence Project
Best Technology Use Category Bronze Award
End to End Mobile Network Experience Development Projects
ACE Awards
Communication (GSM) Category Diamond Award
Turkcell
Digital Platform Category Gold Award
TV+
Internet Service Providers Category Silver Award
Superonline
Electronic Money Applications Category Silver Award
Paycell
Customer Centricity
World Series
Third Price in Customer-Centric
Culture Category
Second Price in Complaint
Management Category
Brandon Hall Group
Excellence Awards
Best Technologic Development in Testing
and Learning Category Bronze Award
CaseLab
Stevie Awards for
Sales & Customer Service
Business Development Success of the Year
Technology Sectors Category Bronze
Stevie Award - Retail Channel
Delivery Point Project
SMARTIES MMA
Awards
Experimental-Innovative Technology
Category Bronze Award
Fizy
IDC Türkiye Future
Enterprise Awards
Best in Future of Work
Category First Prize
Let the Robot Do RPA Project
34 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
34 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
All awards received by Turkcell in 2022 can be accessed in
Appendix-1 Turkcell 2022 Awards page of the Report.
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VALUE CREATING TURKCELL
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDIX
Turkcell Group:
Developments in 2022
Turkcell Group companies operate in 4
countries - Türkiye, Ukraine, Belarus, and
the Turkish Republic of Northern Cyprus
(TRNC) with 23,795 employees.
BELARUS
BeST
1.5
Million Mobile Customers
TRY•936
Million Revenue
TÜRKİYE
Turkcell Türkiye
TRY40.9
Billion Revenue
37.5
Million Mobile Customers
2.9
Million Fixed Customers
1.3
Million IPTV Customers
UKRAINE
lifecell
10.2
Million Mobile Customers
TRY 4.8
Billion Revenue
TRNC
Kuzey Kıbrıs Turkcell
0.6
Million Mobile Customers
TRY 473
Million Revenue
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VALUE CREATING TURKCELL
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
2022 Strategic Goals and
Management Discussion
Robust revenue, EBITDA and net
income performance supported by
our business model diversified with
strategic focus areas, sequential
price adjustments and our human-
oriented inclusive strategy
to Our Business
s.68
TRY 53.9 billion revenue on 50.0% growth
TRY 22.0 billion EBITDA on 46.5% rise
TRY 11.1 billion net income on 119.7%
increase
to Our Business
s.68
Leverage level below the industry
average thanks to effective
balance sheet management;
healthy FX position on disciplined
financial risk management
0.9x net leverage level1
USD 25 million net short FX position2
to Our Business
s.68
Cash flow generation
with successful operational
performance despite challenging
macroeconomic conditions
TRY 1.7 billion free cash flow generation3
to Our Business
s.68
Double-digit ARPU
growth supported by price
adjustments, increased
usage and upsell efforts
Mobile ARPU at TRY 77.0 on 40.3% increase4
Residential fiber ARPU at TRY 99.2 on 26.5%
growth
1Starting from Q421, we have revised the definition of our net debt calculation to include
“financial assets” reported under current and non-current assets. Required reserves held
in CBRT balances are also considered in net debt calculation. We believe that these assets
are highly liquid and can be easily converted to cash without significant change in value.
3 Free cash flow calculation includes EBITDA and the following items as per Turkish
Financial Reporting Standartds (TFRS) cash flow statement; acquisition of property, plant
and equipment, acquisition of intangible assets, change in operating assets/liabilities,
payment of lease liabilities and income tax paid.
2Advance payments are included
4 Excluding M2M.
Inclusive
s.106
Successful subscriber net
addition performance on the
back of strong infrastructure,
high quality customer services
and rich value proposition
1.9 million net mobile subscriber additions
68.1% share of postpaid subscribers
234 thousand net fiber subscriber additions
2.3 million total net subscriber additions
Inclusive
s.106
Continued growth in data
usage with digitalization,
increasing smart phone
penetration and rising 4.5G users
14.7 GB monthly average
mobile data usage per subscriber
Inclusive
Increasing share of our digital
sales channels in total sales with
evolving consumer habits
s.106
24.9% increasing share of digital sales channels
(Q422)
Strong momentum prevailing in
our strategic focus areas
Inclusive
s.106
An increase of 30% in total revenues of digital
services, 61% increase in digital OTT service revenues
88% revenue growth in digital business services
72% rise in techfin revenues
87% rise in Paycell revenues
Strong performance in
sustainability indices
to Our Business
s.68
Listing in the BIST Sustainability Index
since the first day
Listing in the BIST Sustainability 25 Index
Carbon Disclosure Project Note increased
from B to A-
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VALUE CREATING TURKCELL
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Increasing
momentum towards
net zero goals
Strengthening
Turkey’s Sector
Leadership in
Intellectual Property
Developing Equal
Opportunities
and Diversity
to the Environment
s.178
227,592 GJ energy saving,
414,911 ton CO2e emission reduction
1.5 MW renwable energy installed
capacity with TRY 11.3 million of investment
Increasing refurbishing practices
in e-waste management
Inclusive
s.106
Inclusive
s.106
965 R&D employees
325 national patent applications;
966 registered patents
8 TÜBİTAK, 10 HORIZON
supported R&D projects
Women Developers of the Future Climate
Ideathon enabled 200 women to develop
product ideas using technology to address climate
change
34.6% female employee ratio
30% female employee ratio in engineering positions
35% female employee ratio in IT positions
80 Whiz Kids classes throughout Turkey
Turkcell achieved successful results de-
spite the challenging competitive envi-
ronment in its operating markets due to
the political and challenging macroe-
conomic conditions globally in 2022. In
line with its aim to create value for all
stakeholders, Turkcell sustained its op-
erations effectively with a diversified
business strategy and proactive risk
management during a period of mar-
ket volatility and uncertainty.
We achieved solid financial results in
2022 with strong performances in all of
our services and solutions, which were
tailored to meet our customers’ chang-
ing needs. Turkcell’s consolidated reve-
nues reached TRY 53.9 billion, represent-
ing a 50.0% increase compared to the
previous year. Consolidated EBITDA in-
creased by 46.5% to TRY 22.0 billion. Net
income increased by 119.7% compared
to the previous year, reaching TRY 11.1
billion. Operational CAPEX (excluding li-
censes) amounted to 20.2% of revenues.
Thanks to our strong balance sheet,
prudent risk management approach,
and profitable operations that are
aware of our social and environmental
impact, we distributed a gross amount
of TRY 1,257,774,594 in dividends to our
shareholders in 2022.
In recent years, the rising trend of dig-
italization has increased not only the
needs of individuals for digital prod-
ucts and services but also the demands
of companies. Following our principle
of providing technology that leaves
no one behind, Turkcell has taken an-
other step towards financial inclusivi-
ty by offering digital business services
that provide the most accurate solu-
tions for professional needs, in addition
to individuals’ digital service needs.
Along with digital services, our Paycell,
Financell, and Güvencell brands offer
innovative payment, financing, and
insurance services to both individuals
and commercial enterprises. With the
increasing customer potential, our fi-
nancial solutions have not only con-
tributed positively to our own revenue,
but also had a multiplier effect on the
user and revenue growth of all our
products and services.
The reporting period was a year in
which we carried out successful ac-
tivities in many areas of sustainability
management, in addition to our finan-
cial and operational performance.
Firstly, we published the Positive Imprint
in Sustainability Strategy in line with the
new company priorities we identified
within the framework of our integrat-
ed value creation model. Within our
sustainability strategy, which we have
gathered under environmental, social
and governance aspects as “Positive
Imprint to the Environment”, “Inclusive
Positive Imprint” and “Positive Imprint
to Our Business”, we aim to eliminate
our negative impact while increasing
our positive impact.
As part of the “Positive Imprint to the
Environment”, we have accelerated
our investments in renewable energy
production throughout the year. This
has enabled us to reduce both our GHG
emissions and energy costs. Through
these investments, we are progressing
towards becoming a preferred digi-
tal service partner for customers who
adopt environmentally friendly busi-
ness models. We met 100% of our elec-
tricity needs from renewable sources
in 2022. With a solar energy investment
of TRY 11.3 million, we increased our in-
stalled capacity to 1.5 MW. Our goal is
to produce 30% of our own electricity
needs by 2025 and achieve a net zero
operations level by 2050.
As part of Inclusive Positive Imprint,
we are implementing several projects
to ensure equal, accurate, and secure
access to information for everyone and
to enable everyone to use the unlimited
opportunities offered by the internet.
To create a generation that produces
technology rather than consuming it,
we are creating technology classes
through our Whiz Kids project for chil-
dren. To help seniors benefit from the
opportunities of the online world, we
are establishing technology rooms in
nursing homes and providing digital
literacy training through Turkcell TV+.
We are also implementing projects like
My Dream Companion to ensure equal
participation of people with disabili-
ties in life through technology.
We take actions to increase the pres-
ence of women in technology both
in our company and at the manage-
ment and board levels. In this context,
we have managed to increase our
female employee rate to 34.6% and
our female executive rate to 24.9% in
2022. Throughout the year, our female
employees held 30% of engineering
positions and 35% of IT positions. We
continue to support women’s entrepre-
neurship and employment in the tech-
nology field through our projects such
as Women Developers of the Future and
Equal Opportunities, Equal Conditions.
This year, we turned the competition
part of our Women Developers of the
into an Ideathon for
Future project
Climate Change. In this way, while sup-
porting the equal presence of women in
the technology field, we aim to create
awareness for their equal participation
in climate change solution processes
and seek solutions to the climate crisis
with technology product ideas.
As part of our commitment to Positive
Imprint to our Business, we are devel-
oping systems for transparent, ac-
countable, and ethical operations as
we establish our responsible value
chain.
40 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 41
Value Creating
Turkcell
As Turkcell, we continue our 29-year journey, which
we started with the aim of introducing mobile
communication to Turkey, by successfully breaking
new grounds in our sector.
Value Creating Turkcell
Our Core Competencies
Our Strategic Focuses, Initiatives and Opportunities
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Value Creating Turkcell
Turkcell Sustainability Management and
Involvement of Senior Management
As Turkcell, we
continue our 29-year
journey, which we
started with the aim
of introducing mobile
communication to
Turkey, by successfully
breaking new grounds
in our sector.
We have created value for all our
stakeholders by gaining an integrated
digital operator identity with the great
development we have made over the
past years. Believing in the restorative
power of our strong and sustainable
business model and innovative digital
technology and communication tools,
we will contribute to the digital trans-
formation of the geographies where
we operate, support the equal access
of people to life and social develop-
ment, create value for our stakehold-
ers, particularly for our customers,
shareholders and employees, and con-
tinue to increase our positive impact
while reducing our negative impact to
zero in the forthcoming periods.
In the previous periods, we have
re-considered our business model
with an integrated point of view and
implemented a multi-capital-focused
value creation perspective. During this
reporting period, we aim to increase
the value we produce by associating
the inputs of our value creation model
with the strategic focus areas that we
have identified through the materiality
studies we have carried out accord-
ing to the feedback of our managers,
employees and external stakeholders.
We regularly monitor the performance
we have achieved with concrete and
measurable indicators, and ensure an
effective management of the value we
produce for all our stakeholders.
Integrated Corporate Value Creation
Management Structure of Turkcell
Turkcell Board of Directors, whose duties
and powers have been determined ac-
cording to the provisions of the Turkish
Commercial Code, is the highest-level
management body that directs Turkcell’s
strategic sustainability initiatives. In this
context, the Board of Directors has the
responsibility for the strategic manage-
ment of our Integrated Value Creation
Model, evaluating the related efforts
and monitoring the progress.
The connection between the strate-
gic level and the action level of the
is
Integrated Value Creation Model
Integrated
realized through Turkcell
Value Creation Committee, which is es-
tablished at the Senior Management
level, and chaired by the Chairman
of the Turkcell Board of Directors. The
committee monitors the activities of
the Company regularly and
informs
the Board of Directors and the relevant
Board Committees when necessary. The
activities conducted within the scope
of integrated value creation model and
the integrated reporting process which
includes the outcomes of this model
are under the responsibility of Turkcell
Senior Management, and Turkcell Board
of Directors provides senior level super-
vision. Accordingly, through the inte-
grated annual report published every
year, the
Integrated Value Creation
Committee reports the activities carried
out within the scope of environmen-
tal, social and governance policies in a
format suitable for public disclosure to
the Board of Directors and receives its
approval.
The responsibilities of the Integrated
Value Creation Committee include;
Guiding report plans within
the scope of integrated value
inte-
creation process and
grated report,
Reviewing
integrated
the
value creation process in line
with Turkcell’s strategy,
Guiding the content of the in-
tegrated report and giving an
opinion on the draft.
Represented by directors of vari-
ous functions, Turkcell Sustainability
Committee plans the activities regard-
ing the identification and realization
of short and long-term action plans in
accordance with environmental, social
and governance policies, identification
of material sustainability issues, risks
and opportunities, and production of
performance on these issue matters.
Integrated Corporate Value Creation Management Structure of Turkcell
Board of Directors
Integrated Value
Creation Committee
The committee reports the obtained
outcomes to the Board of Directors
through the Integrated Value Creation
Committee. Studies to improve perfor-
mance in identified areas are imple-
mented by Project Teams formed with
the participation of Company execu-
tives who are determined according to
their expertise.
Keeping the principles of transparen-
cy and accountability at the core of its
corporate philosophy, Turkcell develops
corporate policies in the areas it prior-
itizes and carries out its activities in line
with the rules determined in these poli-
cies. Turkcell’s policies within the scope
of Environment, Social and Governance
the Sustainability
are discussed at
and the
Integrated Value Creation
Committees, reviewed and approved
by our Board of Directors. Following
the Board of Directors approval, they
are published on the Turkcell corporate
website, under the title of sustainability
for the opinions and information of our
stakeholders.
ISO
ISO
In accordance with the quality man-
agement philosophy followed through-
out Turkcell, many sustainability issues
are managed with systems created by
following ISO Standards. In this scope,
ISO 9001 Quality Management System,
ISO 14001 Environmental Management
System,
14064 Greenhouse
Gases Calculation and Verification
Management
27001
System,
Security Management
Information
System, ISO 22301 Business Continuity
45001
Management
ISO
Systems,
Occupational Health and
Safety
Management System and ISO 50001
Energy Management System are among
the system standards followed for the
management of sustainability
issues.
The up-to-dateness of these system
standards and their application level
are controlled and certified with period-
ic independent external audits. You may
check our certificates in Appendix 2, ISO
Certificates section.
44 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
44 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A1.1; SPK A2.1; SPK A2.2
GRI 2.12; GRI 2.13; GRI 2.14; GRI 2.15; GRI 2.16; GRI 2.17; GRI 2.18; GRI 2.24
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 45
Sustainability
Committee
Project
Teams
You may check our
certificates in Appendix 2 ISO
Certificates section.
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Sustainability Priorities
Turkcell Sustainability Priorities Matrix
The basis of the Turkcell
Sustainability Strategy and
Integrated Value Model is
the Turkcell Sustainability
Priorities, which we
determined by systematic
methods in line with the
principles set forth in
international standards
such as GRI.
We re-evaluated our materiality port-
folio with a comprehensive survey and
analysis study we carried out during
the reporting period. In this evaluation,
we followed the Double Materiality
approach, which creates an even
stronger reference to the integrated
value model logic as suggested by the
standards organizations such as GRI,
IIRC and SASB and regulations such as
EUCSRD.
In conventional materiality studies, 2
key approaches, namely “financial pri-
ority” and “sustainability priority” were
used. The studies carried out with the
financial priority approach have con-
sidered the factors that can affect the
Company’s value from outside to in-
side; while those with the sustainability
priority approach have considered the
influence of the Company on the en-
vironment and society, from the inside
out. The Double Materiality approach,
on the other hand, combines these two
consistent approaches and focuses on
both the factors that may affect the
financial, environmental and social
performance of the Company, and the
impacts that the Company may have
on society and the environment.
In this direction, we started the ma-
teriality study initially by creating a
research universe consisting of 40
social, economic, environmental and
technology topics and 17 Sustainable
Development Goals, which we ob-
tained by screening past practices,
sectoral initiatives such as GSMA, re-
porting standards such as GRI and
SASB, research studies such as WEF
Global Risk Report, and various index
contents. Then, we evaluated this sub-
ject universe with a screening study
with 13 Turkcell executives, 921 Turkcell
employees, 105 individual customers, 91
corporate customers, 22 suppliers and
business partners, and 23 stakehold-
ers representing other groups such as
media, NGOs, public institutions and
regulatory agencies. As a result of
this study, which was designed with a
focus on risk, opportunity and expec-
tation, with parameters customized
according to stakeholder category,
we have reached both a general ma-
teriality portfolio and a comprehensive
portrait of expectations on the basis of
stakeholder groups. Finally, we held
a workshop with the participation of
more than thirty Turkcell executives
who represent various specialization
units to discuss the current sustaina-
bility trends and managerial practic-
es as well as the materiality portfolio
we obtained. We finalized Turkcell
Sustainability Priorities by presenting
the workshop outputs for the opinion
and approval of the Turkcell Integrated
Value Creation Committee, which was
convened with the participation of our
Chairman of the Board of Directors
and Senior Executives.
Due to the fact that stakeholder expectations and the company’s impact
and potential to be impacted are evaluated at the highest level, the top
priority issues in the first group in the materiality matrix are the issues that
form the basis of the Turkcell Sustainability Strategy and are managed
with systematic targets within the scope of the value generation model.
The subjects that are considered as a priority at the secondary level, on
the other hand, refer to the subjects that the company aims to achieve
performance through active studies. Finally, the issues that are prioritized
at the third level refer to the areas that are on the agenda and follow-up
of the Company’s executives, and for which practices are developed
with the perspective of legal compliance and sectoral competition.
High
s
n
o
i
t
a
t
c
e
p
x
E
r
e
d
l
o
h
e
k
a
t
S
Low
Economic
7
8
9
10
13
14
15
24
25
26
4
5
6
19
20
29
1
2
3
11
16
17
18
27
28
Pioneering Digital Technologies and Innovation
To be an Integrated Telecommunications Operator Active in a Value
Chain Ranging from Fiber Infrastructure to Digital Business Services
Enhancing Digital Customer Experience and Satisfaction
Managing Climate Impacts
Cyber Security and Data Privacy Protection
Decent Workplace
Business Ethics and Legal Compliance
Pioneering Use of Innovative Digital Technologies in Fundemental Sectors
Such as Education, Health, Agriculture, Transportation and Finance
Supporting Local Technology Development
21
22
23
12
30
Company Impact
High
1
2
3
4
5
6
7
8
9
Pioneering Digital Technologies and Innovation
To be an Integrated Telecommunications Operator Active in a Value
Chain Ranging from Fiber Infrastructure to Digital Business Services
Enhancing Digital Customer Experience and Satisfaction
Transparent Corporate Tax Practices and Policies
Priority Given to Local Procurement Activities
Protection of Intellectual Property Rights
Development of the Geographical Scope of Reliable, Quality
and Fast Digital Service Infrastructure
Emergency Preparedness and Ensuring Infrastructure Security
To Increase Access to Digital Technologies and Digital Literacy
for Disadvantaged or Low-Income Groups Among the Broad
Social Masses
10
Supporting Local Economy
Environmental
Managing Climate Impacts
Managing Sustainability Impacts in the Supply Chain
Supporting Circular Economy and Responsible Waste Management
Efficient Use of Water
Developing Environmentally and Climate-Friendly Digital
Products and Services
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Social
Cyber Security and Data Privacy Protection
Decent Workplace
Business Ethics and Legal Compliance
Transparency in Product Information and Responsible Marketing Practices
Supporting Social and Cultural Development of the Community
Supporting the Social and Cultural Development of the Community
Talent Management, Employee Development, and Training Activities
The Dissemination of New Working Models such as Remote Work
and Flexible Working Hours
Protecting Children, Youth, and Seniors Against Cyber Risks
Managing the Health Effects of Mobile Devices and Base Stations
Supporting Digital Rights, Ethics, and Expression Diversity
Technology
Pioneering Use of Innovative Digital Technologies in Fundemental Sectors
Such as Education, Health, Agriculture, Transportation and Finance
Supporting Local Technology Development
Support for Business Model Ideas that Aim to Solve Sustainability
Issues with Digital Technologies
Supporting Vocational Training Activities That Will İncrease the Capacity
of Young People in the Field of Information and Communication
Technologies (Ict) and Enhance Their Chances of Employment
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 47
46 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK D1
GRI 2.26; GRI 3.1; GRI 3.2
SPK D1
GRI 2.26; GRI 3.1; GRI 3.2
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Inclusive
TURKCELL
SUSTAINABILITY
STRATEGY
to Our Business
to the Environment
Equal Digital and Social Opportunities
Transparency and Accountability
Fighting Climate Crisis
Digital Security and Wellbeing
Ethical Conduct
Circular Conduct
Human Oriented Turkcell Culture
Responsible Value Chain
Efficient Technology Solutions
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability
Innovation and technology
are the core catalysts of
sustainable development,
the key objective of the
current world.
Technological solutions make it possible
to give an effective response to social,
economic, environmental and mana-
gerial problems. Thanks to the technol-
ogy, we can reduce our environmental
impact by efficient use of resources, in-
crease social and economic coverage,
and develop transparent, accounta-
ble and responsible practices that our
stakeholders expect. In this scope, mo-
bile communication and digital tech-
nology applications play a major role in
creating the infrastructure of studies for
sustainable development.
Since we operate on a broad value
chain that expands from mobile com-
munication to digital applications, we
aim to play a leading role in our opera-
tion geography also with our sustaina-
ble integrated value model, as we do in
every field. Accordingly, we listen to our
stakeholders at every opportunity and
learn about their expectations, support
sustainable development with the solu-
tions we develop by following interna-
tional trends and good practices, and
strengthen our leading position in the
sector with our effective and profitable
business model that creates long-term
value for our stakeholders.
We follow a sustainability strategy that
will produce a positive impact in the
short, medium and long term by com-
bining the potential of our sector, the
agility of our organization and our su-
perior digital service experience with
sectoral risk and opportunity param-
eters and Sustainable Development
Goals. We periodically measure the
up-to-dateness and outputs of this
strategy and update our position when
necessary.
We reviewed our sustainability strategy
with the control studies we carried out
during the reporting period. As a result
of this, in the light of the developments
and changing stakeholder expecta-
tions, we have made updates in our
definitions for our strategy, for which
we have determined our main slogan
as “Positive Imprint in Sustainability”.
THE POSITIVE IMPRINT IN SUSTAINABILITY STRATEGY CONSISTS OF 3 MAIN AXES
Inclusive
With the Inclusive Positive Imprint
axis, we aim to provide equal
opportunities in our workplace,
products and services, and in
our social sphere of influence,
to include all segments of the
society, support the state of be-
ing good in the digital world and
to “not leave anyone behind” in
social, economic and cultural
development.
to Our Business
to the Environment
With the axis of Positive Imprint
to our Business, we aim to de-
velop a strong business model
that is shaped by the principles
of transparency, accountability
and business ethics throughout
our value chain, and where sus-
tainability risks and opportuni-
ties are effectively managed.
With the axis of Positive Imprint
to the Environment, we aim to
manage our environmental im-
pacts, protect natural life and
play a leading role in tackling
environmental problems, espe-
cially climate change.
48 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A2.2; SPK A3.1; SPK B5
GRI 2.22
SPK A2.2; SPK A3.1; SPK B5
GRI 2.22
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 49
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Supported Sustainable Development Goals
SDG
Supported
Targets
Description
SDG
Supported
Targets
Description
Target 7.2: Increase the share of
renewable energy globally
Target 7.3: Double the energy
efficiency
Target 7.A: Support access to clean
energy, technology and investment
Target 8.1: Sustainable economic
growth
Target 8.2: Achieve higher levels
of economic productivity through
diversification, technological upgrading
and innovation
Target 8.3: Promote development-
oriented policies that support
productive activities entrepreneurship
and new job opportunities
Target 8.4: Improve resource efficiency
in production and consumption
Target 8.5: Achieve full employment,
decent work and equal pay for work of
equal value
Target 8.6: Support education and
employment of youth
Target 8.7: End modern slavery,
humman trafficking and worst forms of
child labour.
Target 8.8: Protect labour rights and
promote safe work environments
Target 8.10: Expand access to banking,
insurance and financial services for all
Target 8.B: Develop a global strategy
for youth employment
Target 9.1: Develop sustainable, resilient
and inclusive infrastructure
Target 9.2: Promote inclusive and
sustainable industrialization
Target 9.3: Increase the access to
financial services and markets
Target 9.4: Upgrade industry and
infrastructures to make them
sustainable
Target 9.5: Enhance scientific research
and technology in industrial sectors
Target 9.A: Facilitate sustainable
infrastructure development in
developing countries
Target 9.C: Increase access to
information and communications
technology for all
At Turkcell, energy consumption, which is one of the root
causes of climate change and a fundamental operation-
al efficiency parameter, is seriously managed with interna-
tional system standards such as ISO 50001. The energy con-
sumption points are continuously monitored and efforts are
made to increase energy efficiency with the measures taken.
As of 2021, Turkcell has started supplying all its electricity from
certified renewable sources, and investing in renewable energy
in line with the goal of achieving net zero operations by 2050.
Turkcell, the pioneer of communication and digital service tech-
nologies, supports sustainable economic growth in the markets
it operates in through its investments and R&D efforts in innova-
tive infrastructure and application development. Thousands of
Turkcell customers from various sectors have the opportunity to
achieve digital transformation in their ventures through the pro-
vided communication infrastructure and innovative applica-
tions, leading to more efficient and productive business models.
Additionally, under the umbrella of innovative techfin services
such as Financell and Paycell, solutions are developed to sup-
port wider societal access to insurance and financial products
with more ease and advantage.
As a signatory of the UN Global Compact, Turkcell aims to pro-
vide a work environment that is secure, inclusive, and equal,
where the rights of its employees are guaranteed. Turkcell also
strives to eliminate any negative practices, such as forced la-
bor and child employment, across its value chain. Adhering to
the principle of equal pay for equal work, Turkcell works to not
only improve access to employment but also to provide equal
opportunities and rights throughout the employment process in
terms of gender equality.
Turkcell believes that Turkey’s young population is the main
driving force behind its development. In this context, Turkcell de-
velops programs aimed at enhancing the entrepreneurial spirit
of the young, preparing them for their careers with a quality ed-
ucation and experience in information technologies and other
professional skills, thereby supporting youth employment.
Turkcell aims to provide its customers with a seamless and re-
liable service infrastructure through its strong network struc-
ture, geographical coverage, and emergency preparedness
capacity, and continually works to improve this quality. At the
same time, Turkcell aims to make high technology accessible
to everyone, including groups that face economic or social
disadvantages, by providing access to a wide range of dig-
ital services such as techfin infrastructures such as Financell,
Paycell and Güvencell, as well as financial, communication,
and information technology products and services. Turkcell
strives to be a trusted business partner for all economic ac-
tors, from small businesses to large industrial ventures, on
their digital transformation journey.
Target 12.2: Achieve the sustainable
management and efficient use of
natural resources
Target 12.4: Achieve the responsible
management of chemicals and all
wastes
Target 12.5: Substantially reduce waste
generation
Target 13.2: Integrate climate change
measures into national policies,
strategies and planning
Target 13.3: Improve education and
institutional capacity on climate
change mitigation
Target 16.5: Substantially reduce
corruption and bribery in all their forms
Target 16.6: Develop effective,
accountable and transparent
institutions at all levels
Target 16.10: Ensure public access to
information and protect fundamental
freedoms
Under the responsible management approach, Turkcell
manages environmental risks arising from its operations in
accordance with international standards. In this context, the
company aims to improve resource efficiency, environmen-
tal protection, and the development of natural resources by
taking measures, particularly with regards to mitigating the
effects of climate change. Through these implementations,
Turkcell reduces its environmental impact while enhancing
the business value of the resulting resource efficiency. Efforts
are underway in areas such as energy and water resource
efficiency, waste management, circular economy practices,
and preservation of biodiversity.
Turkcell recognizes climate change as a phenomenon that
affects not only the nature but also the global economy, hu-
man wellbeing and, as a result, Turkcell's business success. It
is clear that if effective measures to combat climate change
are developed, there will be opportunities to positively im-
pact business success. In line with this, Turkcell includes the
risks and opportunities arising from climate change in its
corporate policies and strategies, as well as its planning
processes related to operational and service development.
Turkcell manages seriously the elements that may affect
climate change, including energy consumption and green-
house gas emissions, among its operations. Additionally,
Turkcell will increase the knowledge and awareness of its
stakeholders, particularly employees, on climate sensitivity
and will carry out efforts to expand the scope of the fight
against climate change. To enhance the effect produced,
Turkcell engages in joint ventures with various stakeholders,
including civil society organizations.
Turkcell, as the only Turkish company simultaneously listed
on the NYSE and Borsa Istanbul, adheres to internationally
recognized principles of corporate governance as an inte-
gral part of its management approach, in compliance with
the legal regulations it is subject to. In this direction, Turkcell
aims to establish a transparent, accountable, and effective
corporate governance structure across the Company and
its Group companies. Maintaining a superior business eth-
ics mindset among all Company employees and through-
out the value chain, compliance with the legal regulations,
and prevention of any form of bribery and corruption are
non-negotiable and uncompromisable corporate principles.
To achieve this, the Group has developed management and
control systems, with performance being regularly moni-
tored and improvement measures taken as necessary.
50 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A3.2
SPK A3.2
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 51
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Interactions with Our Stakeholders
The motto “For our stakeholders, together with our stakeholders” expresses the management approach
we have adopted in order to create value for our stakeholders, which is our most fundamental goal.
We determine our activities and decisions by listening to the expectations and opinions of our stakeholders, and we
improve our business processes, products and services with the feedback we receive. We pay attention to being
consistent, inclusive and accessible in our interactions with our stakeholders; we respond to their information and
communication requests in a transparent, open and timely manner.
Stakeholder group
Communication tools and frequency
Employees
Integrated Annual Report (annual), Meetings &
Interviews (periodic), C-level Open Door meet-
ings (periodic), Performance Evaluations (quar-
terly), Announcements (continuous), Reports,
Awayday, Events (periodic), Information Reports
(periodic), Publications and Bulletins (periodic),
Corporate Web Site (continuous)
Suppliers
Customers
Shareholders
and Investors
(continuous),
Integrated Annual Report (annual), Supplier
(continuous), Supplier
Management System
Portal
Internal and External
Meetings (periodic), Supplier Days (annual),
Cooperation Meetings with SME and Local
Manufacturers (continuous), Technopark Visits
(continuous), Turkcell Partner Network (continu-
ous), Corporate Website (continuous)
Integrated Annual Report (annual), Media (con-
tinuous), Advertising and Promotion Activities
(con-
(continuous), Social Media Accounts
(continuous),
tinuous), Corporate Website
Dealers (continuous), Call Center (continuous),
IVR (continuous), SMS and Email (continuous),
Satisfaction Questionnaires (periodic), Turkcell
App (continuous), KEP, CIMER, BTK, TSS channels
(continuous)
Integrated Annual Report (annual), Board of
Directors Meetings
(periodic), Conferences,
Meetings and Roadshow activities (periodic),
Investor and Analyst Day Meetings (on demand),
Quarterly Financial and Operational Results
Announcements and Operating Reports (quar-
terly), Investor Relations Website (continuous),
Teleconferences (periodic), Material Disclosures
over Public Disclosure Platform (instantaneous),
Explanations for Frequently Asked Questions
(continuous), Email (continuous), Telephone Calls
(continuous), Corporate Website (continuous)
Frequently asked questions and
demands in 2022
The application conditions of working models
that seem to take their place in business life,
such as adapting to the changing working
conditions with the pandemic period, remote
working and flexible working, stand out among
the questions and demands conveyed by the
employees during the period. Meanwhile,
the needs for health and psychological sup-
port have also increased during the period.
Employee demands were met by creating
various applications and programs for these
demands.
In line with macroeconomic developments, re-
quests for wages and fringe benefits were re-
sponded to in line with the remuneration policy.
The program was introduced at meetings with
the Suppliers on the Supplier-Centric Innovation
Day, panels with the subject digitalization and
sustainability were held and successful projects
were awarded. Opinion application channels
were shared and new innovative ideas were gath-
ered. Moreover, throughout the year, coordination
meetings were held with the suppliers to minimize
the effects of global risks associated with the pro-
duction and logistics processes of critical product
groups, and mutual actions were defined.
During the period, solving the basic ques-
tions and demands of customers, service plan
conditions, promotions, purchasing a service
package and solving technical problems were
focused on. These demands and questions are
quickly resolved by the relevant units. As a result
of the digitizalization efforts carried out during
the period, the speed of developing solutions to
customer demands significantly increased.
Financial and operational information, which is
the most basic expectation conveyed by share-
holders and investors during the period, was
met through transparent and timely disclosure
through various channels. Meanwhile, the in-
creasing interest and expectations of sharehold-
ers and investors in cyber security, corporate gov-
ernance and legal compliance practices were
met with the implementation and information
activities developed during the period.
The process of identifying sustainabil-
ity priorities is one of the key studies
realized with stakeholders’ feedback.
Also in the prioritization efforts carried
out during the reporting period, many
Turkcell stakeholders who represent
the stakeholder groups have contrib-
uted to this process with their feed-
backs. In the stakeholder group-based
analysis studies we have carried out,
the top priority expectations of our
individual and corporate customers
concentrated on “emergency prepar-
edness and
infrastructure security”,
“development of the geographical
coverage of reliable, high quality and
fast digital service infrastructure”, “cy-
ber security and data privacy”, “re-
newable energy use”, “leading the
use of innovative digital technologies
in key sectors” and “supporting voca-
tional training activities that would in-
crease the employment opportunities
of young people by increasing their
capabilities in the field of information
and communication
technologies”.
The expectations of shareholders, in-
vestors and brokerage
institutions
were concentrated on “leading digital
technologies and innovation”, “cyber
security and data privacy”, and “de-
veloping environment and climate
friendly digital products and services”,
“to increase the access to digital tech-
nologies and digital literacy of large
social masses, disadvantaged or low
purchasing power groups”. The expec-
tations of our other stakeholder groups
have also brought the same issues to
the fore. Turkcell Board of Directors is
informed annually about stakeholder
expectations and priorities obtained
through the Integrated Value Creation
Committee as part of the prioritization
process.
Stakeholder group
Communication tools and frequency
Public
Institutions and
Regulatory
Bodies
Integrated Annual Report (annual) Official
(continuous), Meetings &
Correspondence
Events (periodic), Public Opinion Documents
(on demand), Information Reports (periodic),
Presentations and Position Documents (on de-
mand), Periodic Publications and Bulletins (pe-
riodic), Corporate Website (continuous)
NGO’s
Media
Universities,
Academicians,
Students
Report
Annual
Integrated
(annual),
Memberships (continuous), Board of Directors
Working Group and Council Meetings (pe-
riodic), Workshops (on demand), Seminars,
Conferences and Events (annual), Forums and
Meetings (on demand), Joint Projects (on de-
mand), Corporate Website (continuous), Social
Media
(continuous), E-mail communication
(instantaneous)
Integrated Annual Report
(annual), Press
Releases (instant), Press Meetings (instant),
Meetings and Interviews (on demand), Turkcell
and Turkcell General Manager Social Media
Accounts
(continuous), Corporate Website
(continuous)
Turkcell Academy Curriculum Courses (period-
ic), Certificate Programs (periodic), Technical
Trips (on demand), Project Contests (annual),
(on demand), Joint
Academic Publications
Projects
Information Sharing
(on demand),
Meetings (on demand), PhD Fellowships (on
demand), Project Sponsorships (on demand),
Corporate Website (continuous), Social Media
(continuous)
Frequently asked questions and
demands in 2022
Various
information and opinion demand
of public
institutions and regulatory bod-
ies regarding the industry and the business
life were responded throughout the period.
Collaboration and project development de-
mands were responded as long as the subject
of the related application was compliant with
the Company’s activities and the corporate re-
sources allowed for it.
The main expectations conveyed by NGOs dur-
ing the period focused on information needs,
membership requests, joint project and spon-
sorship requests. While information requests
were answered in line with corporate informa-
tion sharing policies, membership, sponsorship
and joint project requests were responded to
as long as the relevant organization adopt-
ed the values of cooperation with Turkcell,
and the related work was compatible with
Turkcell's corporate policies, field of activity
and expectations.
During the period, information requests regard-
ing financials and company projects and prac-
tices conveyed by members of the media to-
wards Turkcell and the sector were responded
to in a transparent and timely manner.
Requests made by universities and academics
during the term, such as course content sup-
port, field visits, and support for academic re-
search, were answered positively as long as
it was possible. Within the scope of student
fellowship demands, the demands of students
working at the doctoral level in the field of ar-
tificial intelligence were met.
52 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK C2.2; SPK D1
GRI 2.26; GRI 2.29
SPK C2.2; SPK D1
GRI 2.26; GRI 2.29
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 53
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell’s Sustainability Initiative Memberships
We believe that by
meeting with our
stakeholders on common
values, we will create a
greater value together.
In this context, we provide support by
participating
international
in many
initiatives organized on a sectoral or
subject basis. Some of these efforts are
international initiatives created around
sustainability issues. The main organi-
zations we actively support in this field
are UN Global Compact, WEPs, GSMA,
Sustainable Development Association
Telecommunication
and Mobile
Operators Association. Apart from
them, Turkcell operates as a member
of many non-governmental organiza-
tions operating in different fields and is
represented in their management and
working groups.
You can find the full
list of the organizations we are
a member of and their level of
engagement in the Table of Appendix
3- Non-Governmental Organizations
Memberships.
GSMA
United Nations Global
Compact
WEPs
Business Council for Sustainable
Development
Since 1998 globally, we have been
among the 800 GSMA member organ-
izations that guide the global mobile
communication sector. In addition to
sharing Turkcell’s national and inter-
national experiences on this platform,
we also find the opportunity benefit
from the experiences of other member
organizations. Meanwhile we contrib-
ute to the use of mobile technologies
for social benefit and support the dig-
ital economy via mobile platforms and
the development of new generation
communication technologies on the
GSMA’s focus with initiatives and stud-
ies such as Mobile Net Zero. Among
these efforts, Mobile Net Zero is impor-
tant in terms of enabling mobile oper-
ators to carry out their operations with
the Net Zero target within the scope of
efforts to combat climate change.
Turkcell also contributes to the GSMA
Sustainability Network, a platform
international sectoral
that provides
experience sharing for the develop-
ment of applications in line with the
Sustainable Development Goals as a
sub-association of GSMA. In this con-
text, Turkcell was among the first 8
companies in the world and the first
company in Turkey to sign the GSMA
Accessibility Principles. As a signatory
of these principles, we have commit-
ted to design and develop all our com-
pany’s platforms in accordance with
globally accepted accessibility stand-
ards for our disabled customers and
employees. Turkcell is also among the
pilot companies that play a leading
role in determining GSMA’s ESG metrics
for the mobile sector.
Turkcell became one of the signatories
in 2007 and supports the “10 Principles”
of the United Nations Global Compact,
the world’s largest corporate sustain-
ability initiative, and its sub-initiatives
in line with sustainable development.
In this context, Turkcell is among the
founding members of the CFO Task
Force, which brings together compa-
ny CFOs around the world within the
framework of sustainability.
The CFO Task Force aims to make the
concept of sustainable finance an im-
portant factor in the policy-making
processes of the leading institutions of
the global business world, and to cre-
ate a large, liquid and effective market
for investments that serve sustainable
development goals. After CFO Task
Force reaches 1,000 members in 2023,
it aims to invest approximately USD 500
billion with the sustainability theme in
2025. Within the framework of the joint
efforts that Turkcell continues with the
UN Global Compact Turkey Network,
the company works for the participa-
tion of institutions and organizations
from Turkey in the CFO Task Force.
We integrate the 10 principles that
UNGC “Statement for Private Sector”,
to which we became a signatory in
2020, identified under the topics of
human rights, working standards, en-
vironment and combating corruption
into our business processes. We publish
our state of adherence to the 10 princi-
ples in our UNGC Communication on
Progress Report (CoP) annually. As of
next year, we will continue to disclose
our data within the UNGC database, in
line with the updated UNGC reporting
system.
Believing in equal opportunities at the
workplace, Turkcell has been a sig-
natory to the United Nations Women
Empowerment Principles to promote
Gender Equality, which is one of the
Sustainable Development Goals, in or-
der to improve the status of women in
the business life and in the social life
in 2012. Within the scope of UN WEPs,
we continue our activities to support
Turkcell’s goal of being the compa-
ny that women most want to work for,
thanks to its gender equality approach,
by supporting practices aimed at em-
powering women in the business envi-
ronment, such as equal pay practices
and zero tolerance for discrimination.
Mobile Telecommunications
Operators Association (m-TOD)
Mobile
The
Telecommunication
Operators Association was established
in June 2016 by the three authorized
operators of the sector to create ac-
tivity 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 tele-
communication services sector. Murat
Erkan CEO of Turkcell, Executive Vice
Presidents Serhat Demir and Gediz
Sezgin are members of the m-TOD
Board of Directors.
The Business Council for Sustainable
(BCSD Turkey),
Development Turkey
the regional partner and part of the
World Business Council for Sustainable
Development
(WBCSD), exchanges
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, sustaina-
ble finance, the future of business with
technology, net-zero carbon and wom-
en employment. In this context, our ac-
tivity memberships are carried out by
Financell General Manager Korhan
Bilek and Turkcell Energy General
Manager Erkin Kılınç on the finance
side. Turkcell is also a member of BCSD
Turkey Materials Marketplace and a
signatory to Business World Plastic
Initiative. In this context, our commit-
ment to plastic reduction continues.
Our Relations with Public Institutions
There are many different regulations
that Turkcell and its Group Companies
are subject to, and these regulations
constitute the basic structure of our
relations with public institutions and
organizations. These regulations di-
rectly affect the technical and com-
mercial operations, terms of service
provision, and the framework of rela-
tions with stakeholders of Turkcell and
Group companies. For this reason, we
closely follow the legislation studies
related to our activities and respond
to the requests of regulatory instituti-
ons during the consultation, matura-
tion and implementation processes of
the regulations. We provide our opini-
on by analyzing the possible impacts
of the relevant draft regulations on
the sector in terms of legal, technical,
commercial, operational and econo-
mic aspects. On the other hand, we
participate in the legislative work that
is open to public opinion within the
NGOs of which we are members, and
we support the process of shaping the
regulations by preparing joint position
and opinion documents.
On the other hand, Turkcell and its
Group companies generate added
value by leading the technological
transformation in the countries whe-
re they operate, with their mobile
network, fiber infrastructure and wor-
ld-class data centers, digital products
and services. As a result of this value
added, Turkcell provides tax and le-
gal liability contribution to the public.
Turkcell Group has realized around
TRY 19.2 billion tax and legal liability
payment
it
operates.
in the countries where
Relations with Shareholders and
Investors
Turkcell has applied the principles of
being transparent, equitable, consis-
tent and accessible to its investors and
shareholders. We consider it a funda-
mental responsibility to respond open-
ly, accurately and in a timely manner
to the information requests of our in-
vestors and shareholders. With our
information activities, we aim to intro-
duce Turkcell correctly and convey our
business model, risk and opportunity
analyses and strategies to investors,
enabling them to make investment de-
cisions based on the right information.
You may find more
detailed information about the
management of our relations with
our shareholders and investors in the
Transparent Investor Relations section
of our report.
54 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.28
GRI 2.28
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 55
TURKCELL AT A GLANCE
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Value Creation Process
INPUTS
STRATEGIC FOCUSES
CREATED VALUE
OUTPUTS
SDGS
RELEVANT STAKEHOLDERS
• Financing diversity
• Efficient capital allocation
• Strong revenue model
• Business model hedging
• Transparent financial management
Financil
Capital
• Our competent employees and agile teams
• Safe and healthy work environment
• Employment practices that make a difference
• Adoption of company culture and values
• Flexible working model
• Increasing women employment in the
technology sector
Human
Capital
Core
Competencies
Strong Customer
Relations
Strategic
Business
Focuses
Our
Telecom
Business
Digital
Business
Services
Digital
Services
Financial
Services
Platform
Strong
Infrastructure
• Robust network
• Strong spectrum
• Broad fiber infrastructure
• Data centers
Advanced
Analytical
and Technological
Competencies
Manufactured
Capital
• Our patents and R&D capabilities
• Entrepreneurship rcosystem, start-up and
university collaborations
• Our developed services and applications
• Artificial intelligence and blockchain
applications
• Strong brand awareness
• Robust cybersecurity practices and services
• Digital infrastructure
Intellectual
Capital
Strong and Agile
Team
• Transparent and trust oriented stakeholder relations
• Civil society, academy, public and corporate
partnerships, international representation of our
country and sector
• Social investment projects and sponsorships
• Turkcell volunteers
• Voluntary memberships
• Higher employment in call center
operations
• Efficient management of natural
resources
• Investments and projects in renewable
energy
• Environmental impact management
through digitalization
• Efficient use of energy
• Turkcell waste management
Social
Capital
Natural
Capital
to the Environment
Fighting Climate Crisis
Circular Operations
Efficient Technology Solutions
Inclusive
Digital and Social Equality of
Opportunities
Digital Security and Well-being
Human-Centric Turkcell Culture
to Our Business
Transparency and Accountability
Ethical Conduct
Responsible Value Chain
Value created through sustainable growth
Robust balance sheet structure
Market capitalization of the company
Dividend paid and dividend yield
Value generated for the economies of countries where we operate
TRY 53.9 Billion
Revenue
TRY 22.0 Billion
EBITDA
TRY 12.5 Billion
EBIT
TRY 11.1 Billion
Net Income
TRY 1.7 Billion
Free Cash Flow
3.2%
Dividend Yield
Contribution to Employment
Having a competent human capital ready for the future digital world
Establishing a strong and agile employee culture
Developing the competencies of women and young people to increase their
employment in technology
Being a good employer
Employee loyalty and motivation
Diversity, inclusivity, and equal opportunity
Providing career development opportunities
Providing fast, high-quality, and comprehensive services to customers
Contributing to keeping Turkey’s data in Turkey
Leadership in technology and digital transformation
Access to information and the internet for everyone
Development of indigenous and national technological infrastructure
Portfolio of 10,910 towers
Developing the innovation and entrepreneurship ecosystem through Turkcell
experience.
Becoming a global operator with a digital operator vision.
Making life easier by developing inclusive and value-creating products and
services.
Better understanding the customer with data analysis skills.
Reducing cyber security risks and meeting the cyber security needs of customers
Ensuring ethical and equal business processes.
Creating value with the use of open source code.
Providing employment opportunities for Turkish/local engineers.
Strong corporate governance
Value creation through social investment projects
Contribution to exchanging knowledge and experience among stakeholders
Adopting a responsible and ethical business approach within the Turkcell ecosystem
Collaborating with NGOs to contribute to the socio-economic and cultural
development of the community
Being a leading and guiding company in the industry and the country through
representation
Increasing brand trust and reputation
Customer satisfaction
Responsible use of resources
Improving carbon emissions performance
Contributing to the reduction of customers’ environmental impact
Financial value created through sustainability activities
Environmental awareness
Reducing paper consumption
Protecting sustainable agriculture and water resources
Circular operations
Turkcell’s Large Family
of 23,795 Members
34.6%
Woman Employee Rate
24.9%
Woman Manager Rate
1.18 Accident
Frequency Rate
706
New Recruits
1.5 Million Hours
Total Trainings
4.5G Speeds up
to 1.6 Gbps
Fiber Internet Speeds
up to 10 Gbps
65% Network
Virtualization Rate
27% Network
Traffic (internet)
Increase Rate
11,341
Base Station Sites
with Risk Assessment
99.832%
Rate of Data
Accessibility
965
R&D Employees
61% Growth in Digital OTT
Services Revenues and
30% Growth in Digital
Services Total Revenues
7 Hospitals Which
We Provide
Infrastructure To
325
Patent
Applications
8 Number of
Applications to TÜBİTAK-
Supported Projects
7
Incubator Firm
Collaborations
54.0 Million
Group
Subscriber Count
37.5 Million
Mobile Subscriber
Count (Turkey)
2.3 Million
Net New Customers
Acquired (Turkey)
17 Points The
Difference in Net
Promoter Score with
the Closest Competitor
7
Number of
Volunteer Projects
56%
Local
Procurement Rate
414,910.89 Tons
CO2e Energy
Reduction
227,592 GJ
Energy Saving
267,355.3 GJ
Renewable Energy
Generation
3,867,355.3 GJ
Renewable Energy
Consumption
83.5 Tons
Recovered e-Waste
100%
Recycled Waste
Rate
Shareholders, employees,
suppliers, international
organizations.
Shareholders, employees,
suppliers, government agencies,
civil society organizations,
autonomous organizations,
international organizations.
Employees, individual customers,
corporate customers, suppliers,
government, autonomous
organizations, international
organizations.
Employees, individual customers,
corporate customers, suppliers,
government, civil society
organizations, autonomous
organizations, international
organizations, media,
beneficiaries of corporate social
responsibility projects.
Shareholders, employees,
individual customers, corporate
customers, suppliers, government,
civil society organizations,
autonomous organizations,
international organizations,
media, beneficiaries of corporate
social responsibility projects.
Shareholders, suppliers,
government, civil society
organizations, international
organizations, beneficiaries of
corporate social responsibility
projects.
56 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A3.1
GRI 2.25
SPK A3.1
GRI 2.25
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 57
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Measuring the Value Created
Our Core Competencies
We aim to deliver
more up-to-date and
comparable results
while measuring the
resulting performance
of the value creation
process by considering
recommendations
from international
organizations such as the
GSMA, the WEF, the GRI
and the SASB, opinions
of our key stakeholders
as well as global and
sectoral trends.
As of 2021, the Sustainability Goals,
which include the internalization of
sustainability and ESG policies in so-
cial, economic, environmental and
governance areas, have been among
the strategic goals of the Company
and have been assigned as Key
Performance Indicators descending
from the Turkcell General Manager to
all employees. The internalization of
the policies by training the company
employees at all levels in this direction
was reinforced with competitions and
awards that support sustainable life.
Along with the sustainability priorities
renewed in 2022, we have also revised
the Key Performance Indicators used
in performance evaluation.
In this
context, the Sustainability Committee
continues to work on creating a sys-
tem for the detailed follow-up of the
sub-parameters related to perfor-
mance evaluation.
An important part of the analysis of
our sustainability performance with
internationally accepted methodol-
ogies is the evaluations made within
the scope of sustainability indices and
evaluation systems. In this scope, we
provide information to the MSCI ESG
Index, Borsa
İstanbul Sustainability
Index, and CDP Climate Research
studies every year. As Turkey’s pio-
telecommu-
leading
neering and
nications company, we started the
Science-Based Targets (SBTi) study in
2021 and submitted our commitment
letter in order to bring our commit-
ment to combating climate change to
a systematic and rational framework.
At the end of the approval process, we
aim the approval of the Turkcell SBTi
targets in 2023.
Producing continuous
and high added
value for its
stakeholders since
its establishment in
1994, Turkcell’s success
lies in its corporate
competencies that
have developed over
the past 29 years.
Advanced
Analytical
Capabilities &
Technology
Greater focus on and need for
analytical capability with increased
digitalization
Recognizing the customer and
early detection of their needs
by using big data and analytical
modeling
Capacity to develop local
alternatives in digital services
Strong Bond
with Customers
The operator meeting the customers’
continuously increasing quality
service and communication needs
Superior digital customer experience
via growing digital services
Seamless service thanks to Turkcell’s
strong infrastructure and wide range
of IT solution services
Capacity to produce quick solutions
to customer demands
End-to-end financial services to
customers
Strong &
Agile Team
Strong
Infrastructure
Increasing importance of agile
and flexible teams in accordance
with the need “to master swiftly in
difficult tasks”, which stems from
digitalization
Providing efficiency through the
transformation of company culture
with a flexible and agile approach
Strategic workforce management
Comprehensive and equitable
corporate culture
Unique employee experience
focused on people and talent
Sustaining the leading and differentiating
network quality in the sector and
reinforcing the leading operator position
in technology with the launch of 5G when
suitable conditions arise
Increasing efficiency by using the
technology neutral spectrum
Delivering the latest and innovative
solutions via fixed and mobile
technologies to the consumer, corporate
and residential segments
Cyber security products and services
that require digital operator competence
Contribution to digital transformation
with common infrastructure efforts
A reliable network structure ready for
contingencies
Protection of local data within the
country with a broad data center network
58 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 59
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Our Strategic Focuses, Initiatives and Opportunities
Our Telecom Business
We concentrate our
operations in four key
strategic areas with
our digital services,
digital business services
and financial services
platform that we have
rapidly developed in
recent years with the
telecommunication
services, that is our main
branch of business, and
the strong technical
infrastructure and
experience we have
acquired.
We continue diversifying our digital
services in accordance with the devel-
oping technologies and customer re-
quests. Meanwhile, we are working for
making the services we offer accessible
for more costumers every period, and
increasing the access of the disadvan-
taged groups, young people and wom-
en to information technologies.
Within the scope of our digital business
services that we have created for cor-
porate customers, we support digital
transformation with end-to-end solu-
tions that we have developed, mainly
including data center, cloud solutions,
cyber security, health, and IoT. With ac-
cessible service solutions, we support
companies of every scale to adopt the
digitalization trends.
By implementing techfin business mod-
els successfully, we offer different dig-
ital payment options to our customers
with our financial service portfolio, and
provide them with financing options
which facilitate their access to prod-
ucts and services, and insurance solu-
tions which enable them to get cover-
age against risks.
fields, we
In our strategic
evaluate the global trends and the
focus
development potentials in the coun-
tries where we operate, and continue
to quickly improve the value we pro-
duce. Every year, with practices which
involve our all employees, we evaluate
the current trends together and focus
our efforts to the areas of opportunity
that we identify. We follow the business
operations we realize in this scope with
short, medium and long-term objec-
tives.6 In this framework, we worked on
our new 3-years strategic plan in 2022.
Our growth areas that we constructed
on our strong infrastructure will still re-
main as our growth areas for the next
3 years. The growth will stem from our
focus and expansion in the areas of
TV+, education, data center and cloud,
cyber security, health etc. Meanwhile,
another area that we will focus on
in the next 3 years will be how we do
that. As we provide all these services
and digital solutions according to the
needs of our customers, we will focus
on maximizing company value through
higher efficiency-orientation. As one
of our strategies, we will continue to
provide superior digital services for a
better future by maximizing the care
for the environment and the communi-
ty through Sustainability, as well as for
our colleagues and customers through
Human Orientation.
Thanks to higher data usage in the re-
porting period, upsell efforts to car-
ry our customers to packages which
provide higher benefits, and our price
updates based on the economic condi-
tions, we have maintained our momen-
tum and registered 40.3% ARPU7 growth
in the mobile. We have also continued
our focus for increasing the value pro-
posal that we present to our customers,
and gained 1.9 million net mobile sub-
scribers. On the fixed broadband side,
we had 220 thousand net additions,
and the residential ARPU growth rose
to 26.7%. As a result, we have attained
both ARPU and subscriber-based
growth, and registered a healthy and
balanced
in our revenues.
While doing that, we continued focus-
ing on solutions and campaigns that
would respond to the telecommunica-
tion needs of our customers in the dig-
italizing consumption world.
increase
As Turkcell, we focus on further increas-
ing our already high corporate segment
market share and meeting the needs of
our customers stemming from digitaliza-
tion. In this context, we prepare various
campaigns for merchants, SMEs and
big companies. We stand by business-
es with options that will enable them to
meet their mobile and fixed communi-
cation needs end-to-end. With our dig-
ital business services, we offer a wide
range of end-to-end solutions for our
corporate customers’ digital transfor-
mation processes, such as data center,
cloud solutions, cyber security, internet
of things and managed services.
We continue to develop our analytical
competencies in order to offer our cus-
tomers the best offers at the most af-
fordable prices in line with their needs.
Thanks to our analytical and artificial
intelligence supported models that
work specifically for each Turkcell sub-
scriber, we classify all our customers
into groups based on their life cycles,
usage habits and behaviors; we in-
stantly identify their needs and estab-
lish systems where they can use the
appropriate offers for them. We bring
our customers together with rich-con-
tent offers through integrated channel
communications, proactive actions
and cross-communication setups.
In
this way, while increasing our revenue
generation metrics and customer sat-
isfaction scores positively, we managed
to keep our mobile subscriber churn
rate at 2.0% in 2022, and we continue to
keep it below 2.0%, which we see as a
healthy level for us.
In 2022, we continued to enhance
our digital competencies. With our
Omnichannel Experience approach,
we offer an
integrated experience
where the channels are managed in
harmony during our customers’ interac-
tions on Turkcell channels and their cus-
tomer journeys. Moreover, we started
to offer our customers an end-to-end
digital activation experience by com-
missioning our paperless process.
Meanwhile, we have brought digitaliza-
tion to the forefront of all our processes
by offering additional benefits in digital
channels and increasing the intensity
of our communications. We aim to in-
crease our competencies at every step
in the new period in the name of digital
transformation.
learning models, we
Using machine
classify our customers
into classes
based on the applications and URLs
they use. We contribute to increase the
subscriber base by more accurately
determining the target audience of the
products in the Turkcell ecosystem for
each class created. We aim to use these
classes in order to give more accurate
targets in digital channels.
We are starting to present the right of-
fers by using machine learning models
for our customers using fixed internet
and Superbox. We design upgrades to
higher packages in fiber and ADSL, and
we are building the “Proactive-Churn”
model in in Superbox. In this way, we
aim to keep customer loss at a minimum
while increasing our revenue metrics
by using the experience that we have
gained in mobile customers also for
fixed customers.
26.7%
residential ARPU
growth
40.3%
Mobile ARPU
(excluding M2M)
growth
6 Turkcell’s short, medium and long-term goal periods are 0-1 years for the short-term, 1-3 years for the medium-term, and 3 or more years for the long-term. No guarantee can be given
that the forward-looking expectations in the report would come true. For a discussion of the various factors that may affect the outcome of such forward-looking statements, see our
annual report to the SEC (U.S. Securities and Exchange Commission) in form 20-F for 2021 and the risk factors section within this report.
7 Excluding M2M
60 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.6
GRI 2.6
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 61
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Digital Services
The strong tendency
in consumer behavior
in recent years to meet
numerous needs through
digital services has
become increasingly
permanent with the
pandemic.
Initiatives and
Opportunities
• We are
increasing our digital
service revenues through a wide
range of options towards both
individual and corporate needs,
as well as increasing our trans-
action volume, advertisements,
subscription and business part-
nerships as a result of increasing
number of active customers.
• As remote and flexible work prac-
tices have become permanent
with a great momentum during
the pandemic, the importance of
mobile applications, communi-
cation infrastructures, softwares
used, and the cyber security of
these systems
for companies
have increased. In this context, we
provide services with our digital
services such as BiP, Yaani Mail,
lifebox, digital security, mobile
signature and BiP Meet, and with
our superior security standards.
• With our Game+, next-generation
gaming platform, we offer our us-
ers the opportunity to experience
the highest quality games from
anywhere they want, without the
need for significant hardware
investments.
• With our belief in dual transfor-
invite everyone to
mation, we
save energy with digitalization
and smart applications.
In this direction, as Turkcell, we respond
to these expectations of our customers
with digital solutions we offer in various
fields such as instant communication
and online meeting platforms, e-mail,
search engine, personal cloud storage,
digital advertising, TV, digital music
platform and game technologies.
In the previous periods, we had trans-
formed our digital services such as
BiP, fizy, TV+ and lifebox into separate
companies, focusing on their individ-
ual performances as profit centers
that are different from each other, into
structures that can compete on a glob-
al scale. Our services, which increased
their performance also in the reporting
period, continued to write new pages
in their success stories by offering dig-
ital experience to their customers on
an international scale. In addition to
the revenue generated by our digital
services, their positive contribution to
ARPU of our customers who receive
telecommunication services, and in-
creasing the loyalty of these customers
to Turkcell have increased their impor-
tance for the Turkcell ecosystem. In this
scope, our efforts continue to expand
the diversity of our digital services as
well as increasing number of users and
international footprint.
By positioning our digital services and
solutions as independent brands un-
der the Turkcell roof, which plays a key
role within the scope of our strategy
to transform Turkcell from a telecom
operator to a digital integrated eco-
system brand, we reinforce their values
in terms of intellectual property and
assets.
Initiatives and
Opportunities
• We achieved 40.3% ARPU growth in
the mobile segment with our plans
that meet customer expectations
and offer high benefits, our process
improvement projects that increase
customer satisfaction and work pro-
ductivity, and our consistent price
adjustments throughout the year in
line with economic developments.
• As a result, we achieved mobile sub-
scriber net additions of 1.9 million
and maintained our healthy and sta-
ble growth trend in terms of both the
number of subscribers and ARPU.
• We are designing various cam-
paigns and plans in order to sup-
port the digitalization needs of our
corporate customers, particularly
merchants and SMEs, and thus to
further increase our high corporate
customer share. The win & win set-
up of our corporate customer plans
focuses on helping our customers to
increase their revenues by digitizing
their business processes as well as
reducing their expenses. The added
value we create for our corporate
customers also enables us to in-
crease our business value.
• We continue to listen to the expec-
tations of our customers more effi-
ciently, provide them with the most
appropriate price and scope, and
improve our analytical competen-
cies to make our service processes
more productive in a configuration
increase satisfaction.
that would
The sales channel
improvements
and payment option diversifications,
IVR process and content improve-
ments, and the Chatbot application
we realized during the period have
both made our business processes
more efficient and increased cus-
tomer satisfaction and loyalty. While
increasing our revenue metrics pos-
itively in parallel with the increasing
customer satisfaction, we managed
to remain our mobile subscriber
churn rate of 2.0% in 2021 unchanged
in 2022 and reduced the fixed sub-
scriber churn rate from 1.5% to 1.4%.
mobile subscriber
churn rate 2.0%
1.4%
fixed subscriber
churn rate
62 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.6
GRI 2.6
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 63
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Digital Business Services
Digital business services
play an important role
in combining Turkcell’s
traditional telecom
service provider
identity with its “Digital
Transformation Business
Partner” strategy for
corporate customers.
We aim to be the most reliable busi-
ness partner in digitalization processes
by providing end-to-end, value-add-
ed services to the business world with
numerous new generation technolo-
gies covering cloud services, cyber se-
curity, internet of things, big data ana-
lytics, business applications, managed
services and artificial
intelligence
solutions.
Turkcell, the world’s first digital opera-
tor, contributes to the transformation of
business models with digital technolo-
gies by putting its 29 years of commu-
nication and information technology
experience into the service of private
enterprises of all sizes and public insti-
tutions. Our value-added services help
our customers to stay ahead of the
competition and increase their pro-
ductivity and business value. On the
other hand, the consultancy services
we offer enable us to provide end-to-
end services in digitalization processes
by improving the knowledge and skills
of our customers.
In addition to end-to-end fiber infra-
structure of 59 thousand kilometres,
we have a total of 8 data centers, 4
of them are new generation, hold-
ing Tier-3 Design and Operation
Sustainability certificates from the in-
ternational certification body Uptime
Institute. There is a total of approxi-
mately 40 thousand m2 of white space
in our data centers. With Turkcell
Cloud services, we position the entire
information
infrastruc-
technology
ture of corporations in Turkcell data
centers, thus reducing costs and pro-
viding a more flexible infrastructure.
The cloud service we provide from
fully redundant infrastructures in our
8 different data centers has the ISO
27017 Cloud
Information Security
Certificate, which certifies our infor-
mation security, and we are the first
and only service provider in Turkey to
have this certificate. We launched our
Public Cloud service in order to serve
our public institutions in accordance
with the Presidential Information and
Communication Security Measures
Circular, which came into force re-
garding the security of public data
and its transfer to digital environments,
and the guide published accordingly.
Within the scope of our Cyber Security
product portfolio, our vision of virtual-
izing our network protection services
for the network infrastructures of in-
stitutions continues at full speed. We
will continue our virtualization jour-
ney, which we started with FW, DDoS+,
Load Balancer and IPS, through all our
data centers by increasing our manu-
facturer diversity in the coming period.
In addition to these services, we pro-
vide proactive protection by ensur-
ing early detection of cyber threats
and taking quick action with our SOC,
SOAR, BOZOK and Consulting ser-
vices, thus becoming the end-to-end
Cyber Security Service provider of our
institutions.
With the IoT Platform solutions, we pro-
vide our corporate customers with the
service of managing their devices and
machines via cloud systems without
bearing any cost of infrastructure. With
energy efficiency scenarios, one of the
IoT scenarios, companies can instant-
ly measure their energy consumption.
Through the solutions we offer, the
data collected from the field is trans-
formed into information that will facil-
itate decision-making for users, and at
the same time, management functions
can provide significant savings in the
costs of companies with our energy
solutions. In addition to these solu-
tions, we offer Digital Transformation
to institutions with IoT-based solutions
specific to a wide range of fields we
have developed. We enable our cus-
tomers to increase their profitability
and productivity by facilitating their
strategic decision-making processes,
together with our big data services
for many sectors, particularly retail,
e-commerce, shopping malls, trans-
portation, tourism, fuel and finance.
Within the scope of our digital business
services, together with our internal re-
sources, products, processes and tech-
nologies, as well as our partner ecosys-
tem consisting of experienced experts
in the field, we have implemented over
2,800 custom-made service and sys-
tem integration projects designed ac-
cording to the needs of our customers.
We develop vertical solutions for our
customers in our focus sectors such
as health, education, production, re-
tail, finance, logistics, energy, tourism,
SMEs, central and local governments,
with our consultants who are experts in
the sector, that will address their own
needs. With the analyses we carry out
with a 360-degree perspective, we
determine the current situation of our
customers and create solution sets that
cover their needs.
In the health sector, which is one of the
sectors where we ensure vertical ex-
pansion, we implement projects with
high value proposition. Digital Business
Services is positioned as the market
leader in terms of the number of hos-
pitals in city hospital projects, which
have become the locomotive of the
success of our country, which is among
the world’s leading healthcare service
providers, especially in the countries in
the region.
We are the leader of the public-pri-
vate partnership (PPP) market as an
integrator that provides and operates
all technologically needed solutions in
city hospitals in the field of health. We
continue to play an important role in the
digital transformation of hospitals with
our Hospital Information Management
System (HIMS) software, which we de-
veloped with Turkcell Digital Business
Services resources. Currently, we have
active operations in a total of 7 city
hospitals
including Yozgat, Adana,
Eskişehir, Elazığ, Bursa, Başakşehir and
Tekirdağ hospitals. The entire technol-
ogy infrastructure of these hospitals,
from hardware to software, and from
system to business operations is man-
aged by Digital Business Services. On
the other hand, the infrastructure of 2
field hospitals, which were established
in a short time during the pandemic
period, was also established by Digital
Business Services. Digital Business
Services also develops the technolo-
gy of strategic public projects such as
the Specialization Training Tracking
System (UETS), Electronic Case System
(EVS) and Vaccine Tracking System,
which are among the most important
technology projects of the Ministry of
Health. In addition to all these opera-
tions, we continue our efforts to make
the solution we developed for city hos-
pitals applicable in the operational
processes of private hospitals.
In our business partnership ecosys-
tem, there are three main categories
that we manage end-to-end: our sub-
contractors, those we develop prod-
ucts/solutions together, and our sales
partners. We launched the “Business
Partnership Program”
for business
partners with different competencies
in our ecosystem. We appreciate the
success of our business partners with
the earning models that emphasize
success. With the Partner 360 model;
we continue improvements to manage
all business associates of our Digital
Business Services company on a single
system. With our business partnerships
with global suppliers, we are expand-
ing the solution sets we offer to our
customers in terms of technical compe-
tence and project diversity day by day.
Initiatives and
Opportunities
• As Turkey’s largest data center oper-
ator, we work with the aim of keep-
ing Turkey’s data in Turkey in order to
ensure data security and confidenti-
ality of personal data. In this context,
the regulations to keep the data pro-
duced in Turkey here, increase the
demand for our data centers and
contribute to the development of our
business and our revenues.
• We use our experience and compe-
tencies in big data, internet of things
(IoT) and artificial intelligence (AI) in a
wide array of areas such as the de-
velopment of products and services.
The absence of major players in AI
solutions in the developing IoT and
artificial intelligence solution market
creates an advantage for Turkcell.
We also consider the vision of the
Republic of Turkey, which encourag-
es the development of domestic and
national technologies, as an oppor-
tunity for Turkcell in this field.
• The increasing need for remote solu-
tions during the pandemic period,
an increase was observed in the de-
mand for products and services that
we focus on and continue our work
in the field of remote health, educa-
tion and work solutions. Our Lifecare
product, which we developed for the
remote health segment, has passed
the Registration and Subscription
System control of the Ministry of
Health and has become available to
respond to opportunities in this field.
Negotiations with
leading health
groups in Turkey were initiated, pav-
ing the way for new business model
opportunities.
• Digitalization for private companies
and public sector
institutions of-
fers many productivity and service
improvement opportunities.
quality
As Turkcell, we offer customized, re-
liable and sustainable solutions for
the needs of companies and public
institutions in Turkey with our end-to-
end digital transformation services,
and we make digitalization process-
es more accessible with affordable
costs. We are guiding our country’s
digital transformation journey by col-
laborating with our local business
partners.
64 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.6
GRI 2.6
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 65
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Techfin Services
Finance and information
technologies are
two different sectors
that fuel each other’s
development, while
we observe that many
financial services and
transactions have
rapidly digitalized with
the transformation we
have experienced in
recent years.
As a digital operator that closely mon-
itors these developments, we believe
in the high potential of techfin appli-
cations, and we continue our efforts
to develop services in this direction.
We facilitate the financial transactions
and lives of our customers with the in-
novative solutions that we have devel-
oped with this perspective and offered
under Paycell, Financell and Güvencell
brands.
The main purpose of Paycell is to pro-
vide consumers with easy access to
financial services by providing fast,
practical and secure payment solu-
tions by combining digital technolo-
gies and financial service categories.
In addition, Paycell aims to make life
easier and make Paycell Turkey’s larg-
est payment platform by providing
access to financial services for every-
one, regardless of whether they have a
bank account or not, with its vision of
financial inclusion.
A significant portion of Turkey’s young
and dynamic population that is prone
to using technology does not yet have
access to banking services. The pres-
ence of a population of more than 30
million and a high cash usage rate, as
well as the growing e-commerce mar-
ket and positive regulatory develop-
ments significantly increase Paycell’s
opportunity potential.
We maintain our strong growth per-
formance with the services and solu-
tions we offer in different verticals
such as billing, e-wallet, bill payment,
money transfer, financial marketplace
solutions and payment intermediation,
and our application that we have po-
sitioned as a Super App. Paycell differ-
entiates itself from its competitors with
its broad service portfolio, Turkcell’s
technology, customer base and the
advantage of access to sales chan-
nels in the dispersed market structure
where various players concentrate on
different solutions. As part of its strat-
egy to expand in the market, Paycell
has focused on increasing the num-
ber of contracted merchants with
Paycell Android POS, QR, Virtual POS,
Vitrin, and payment with link payment
products that would support each
other. Through our Paycell Mobile ap-
plication and together with many of
our partners, we offer our customers a
broad range of services, mainly games.
Providing digital finance solutions to
our customers’ technological product
and service needs, backed by the agili-
ty of the mobile industry, Financell is the
leader of the non-bank finance indus-
try in Turkey with the highest number
of customers. Financell, one of the ma-
jor business partners of Turkcell digital
services and digital business services,
performs faster credit evaluation and
manages credit risk effectively thanks
to its credit risk infrastructure and dig-
ital transformation capabilities.
Serving under Güvencell brand, Turkcell
Sigorta Aracılık Hizmetleri A.Ş., as an
insurance agency, offers
innovative
solutions for the risk management of
customers with fast and easy-to-ac-
cess products.
Initiatives and Opportunities
• Techfin and mobile com-
munication services provide
convenient means for many
people to access financial servi-
ces, thanks to their practicality and
ease of access. With the oppor-
tunity to access financial services,
which are important for individuals
both for economic independence
and social equality, we have the
potential to reach approximately 30
million unbanked users in Turkey.
• The pandemic process, which intro-
duced many people to digital and
contactless payment systems, and
the subsequent increase in the use
of these systems creates an impor-
tant opportunity for Turkcell. The
continuation of people’s tenden-
cy towards contactless and digital
payment methods in Turkey and in
the world after the pandemic shows
that the potential is growing.
• E-commerce, which has grown ra-
pidly after the pandemic, has inc-
reased the demand for practical
and advantageous payment soluti-
ons for all parties. With the Paycell
Virtual POS product, card payments
are provided from a single platform
without the need to make separate
agreements with different banks,
creating an advantage for both the
workplace and Paycell.
• With vehicle loan, digital holiday
loan and shopping loan applicati-
ons, it has proven its success not only
in digital payment but also in facili-
tating access to finance.
• Users who want to utilize investment
opportunities can convert their as-
sets into different investments by
trading gold, silver and platinum at
Paycell.
• As Turkcell, we know our customers
closely with the customer data we
have obtained through telecom bu-
siness. In this way, we are able to of-
fer our customers the most suitable
loan options in financing business by
using Credit Reference Bureau (KKB)
and telecom data.
one
that
individual
• With
Financell,
of our Techfin services,
we offer our
and corporate customers fi-
nancing opportunities
meet their needs. With “Digital
Transformation Financing” loans,
we facilitate our customers to ac-
cess funding in convenient conditi-
ons. Companies using our ecosystem
can acquire hardware and devices
such as software, servers, smartp-
hones and tablets that they need in
their digital transformation journey
with special prices, interest advan-
tages and flexible payment plans.
As a result, we can also support fi-
nancing digital transformation of
companies.
• Thanks to the Digital Bank which we
applied for its establishment in 2022
and foresee to start the activities in
2023, we aim to expand Financell so-
lution portfolio to cover all services
offered by a conventional bank. We
believe that this transformation will
create a multiplier in terms of attra-
cting new customers to the Turkcell
ecosystem. By focusing primarily on
retail customers and SMEs, we aim
to serve techfin and digital chan-
nels that need bank products and
infrastructure, expand the Turkcell
ecosystem and offer the unique te-
chfin experience that everyone can
access, and become the most wi-
despread and inclusive digital bank
as the pioneer and leader in the
transition to a cashless society.
• Due to the lower share of digital
channels in the insurance industry
compared to other financial sectors,
there is an important transformati-
on opportunity in terms of directing
customer demands to the digital
consumer experience. We aim to be
a part of this transformation with
our Turkcell Dijital Sigorta company,
which we established in 2022 which
will provide end-to-end services by
expanding the scope of our insuran-
ce business with innovative solutions
and digital processes based on big
data.
66 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK C1.9
GRI 2.6
SPK C1.9
GRI 2.6
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 67
to Our Business
With Positive Imprint to our Business strategy, we aim to achieve four key
corporate goals: To increase our business success with a responsible
value chain, where superior corporate governance and business ethics
principles are prevailed, growth in intellectual capital, sound financial
performance and effective asset management are ensured.
Strong Corporate Governance
Financial Capital
Trends
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Capitals
Goals
Actions
Impacts
Values
to Our Business
Value Proposal
e
c
r
u
o
s
e
R
d
n
a
l
a
t
i
p
a
C
n
o
i
t
a
c
o
l
l
A
Corporate
Governance
Principles
Risk
Management
Business
Ethics and
Human
Rights
Following
Superior
Corporate
Governance and
Business Ethics
Principles
Reducing risks with transparent accountable,
responsible management
Reducing the negative effect
Increase in reputation and brand value
Reduction in risk costs
Increase in management quality
Financial
Performance
and Effective
Management
of Assets
Proactive
Adaptation
to Global
Trends
Effective
Financial
Management,
Strong
Performance
and Revenue
Model
Digital Finance
Transformation
Transparent
Investor
Relations
Strong financial performance
Developing the market outlook
Potential to attract investors and capital
Integrated digital operator
High profitability
Capital efficiency
High dividend yield
Increase in share value
Increase in reputation and brand value
Integrated Value Creation
(Financial Capital, Natural Capital, Manufactured Capital, Social Capital, Human Capital, Intellectual Capital)
In line with the integrated value creation model of Positive Imprint to our Business strategy, we contribute directly to financial,
manufactured and intellectual capital, and indirectly to human, social and natural capital.
70 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 71
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Strong Corporate Governance
Maintaining a strong corporate govern-
ance structure enables us to manage our
business operations with high efficien-
cy, and to demonstrate an exemplary
corporate citizenship through ensuring
compliance with legal obligations which
we are subject to. Moreover, we differ-
entiate as a company, trusted by our
stakeholders, thanks to compliance with
domestic and international business reg-
ulations ensured by our Company’s com-
pliance programs and our understand-
ing of superior business ethics.
As the only Turkish company both listed
on the Borsa Istanbul (BIST) and the New
York Stock Exchange (NYSE), through
effective corporate processes and the
internalization of internationally accept-
ed corporate governance principles
throughout the organizational structure
that arise from our leading position in the
capital markets, supports our cause to
create long-term and sustainable value
for our stakeholders.
Shareholder Structure
Since 2000, Turkcell İletişim Hizmetleri
A.Ş. has been the only company,
shares of which are traded both on
Borsa
Istanbul and the New York
Stock Exchange as “ADS (American
Depository Share)” Level III. With a
high free float rate of 54%, we aim to
provide long-term benefits not only
to our customers, but also to all our
Company’s stakeholders by
imple-
menting the highest standards of cor-
porate governance practices. Our sus-
tainability strategy and value creation
model that we have developed in this
context, as well as our goal to priori-
tise to act in accordance with interna-
tional standards in the fields of human
rights, business ethics, anti-bribery and
corruption, competition management,
risk and crisis management allow us
to be a good role-model for corporate
citizenship.
You can access further
details on our shareholder structure
in Footnote 1 of the CMB report.
Board of Directors Structure
into
account
Taking
preferred
stock rules defined in the Articles of
Association,
the Turkcell Board of
Directors, consists of a total of 9 mem-
bers, one of whom is a woman, who are
elected by the General Assembly with
simple majority vote. Three of the Board
members meet the independence cri-
terias specified in the CMB regulations.
The Turkcell Board of Directors, whose
duties and authorities are determined
within the framework of the Turkish
Commercial Code, has committees es-
tablished at the Board of Directors level
in accordance with the relevant legal
provisions to ensure operational effi-
ciency. These committees are the Early
Detection of Risk Committee, Corporate
Audit
Governance
Committee, Nomination Committee,
Remuneration Committee and Strategy
and Digitalization Committee which
was established on February 17, 2022.
While the duties of the Chairman of
the Board of Directors and the CEO are
carried out by different individuals, the
CEO is not a member of the Board of
Directors but is in charge of execution.
The Chairman of the Board of Directors
does not have an executive duty.
Committee,
You can find further infor-
mation about the Board of Directors
Committees, their duties and mem-
bers on our Corporate Governance
Principles Compliance Report or on
our on our website.
Members of the Board of Directors con-
sist of experts in their fields who have
significant work experience
in many
sectors such as energy, economy, tele-
com, law, engineering, and sustainabil-
ity. 5 out of 9 members are elected by
Group A preferred stock owner, TVF Bilgi
Teknolojileri
İletişim Hizmetleri Yatırım
Sanayi ve Ticaret A.Ş. (TVF) by using pre-
ferred stock rights as per the Articles of
Association. Four of those 5 members
are also nominated by TVF. There are
no privileges foreseen for the election
of the remaining 4 members, including
3
independent board members. The
term of membership for the Board of
Directors is a maximum of 3 years and
the Chairman of the Board of Directors
is elected by TVF with a privilege among
the 5 members, in accordance with
the privileges set forth in the Articles of
Association. The election of the Board
of Directors in the articles of association
and the term of office of the members are
carried out within the framework of the
Turkish Commercial Code. Accordingly,
the members of the Board of Directors
are elected by the General Assembly to
serve for a maximum of three years. In
the event that the membership of any
Director of the Board becomes vacant
for any reason, another member who
meets the legal requirements for the
vacant chair may be elected temporar-
ily in accordance with Article 363 of the
Turkish Commercial Code, and the elect-
ed member is submitted to the approv-
al of the first General Assembly to be
held following his election. The member
whom elected in this way serves until the
General Assembly meeting, when it is
submitted for approval, and if approved,
completes the term of the predecessor.
No classified or staggered Board struc-
ture has been adopted in the Board of
Directors.
Since 2019, Turkcell has adopted spe-
cific internal rules regarding possible
conflicts of interest at the Board of
Directors level. In this context, the code
of conduct prepared for the members
of the Board of Directors, who can be
considered public officials, has been
adopted and put into practice by our
Board of Directors, considering the
regulations binding for our company.
In the management of the company, the
principle of “1 share, 1 vote applies”, and
there is no minimum share requirement or
voting limit, except for preferred shares.
Further to Turkish Commercial Code, all
shareholders are entitled to suggest an
agenda, obtaining information and ex-
amination. In decision making, while the
presence of the shareholders represent-
ing at least 51% of the total capital and
the majority of the votes is considered
sufficient in general, there are cases
where aggravated quorums are sought
as per the articles of association and the
relevant regulations.
The annual performance evaluation
by the Board of Directors based on
certain criteria was implemented in-
itially in 2021 as part of the improve-
ment of corporate governance across
our Company, and it was aimed to take
the improvement areas identified as a
result of the evaluation process as a
basis for advanced corporate govern-
ance practices.
As a first step towards this goal, the
improvement areas identified on the
basis of the analyzes and evaluations
made regarding the answers of the
2021 performance evaluation question
sets were conveyed to the Board of
Directors and evaluations were made
regarding the actions that could be
taken at the corporate level.
In this scope;
• A new platform was put into prac-
tice in order to digitalize access to
the Board of Directors meeting doc-
umentation, to transfer the docu-
mentation to a secure platform and
to enable a constant access to the
relevant documentation. As a result,
information sharing with the mem-
bers of the Board of Directors was
increased both quantitatively and
qualitatively.
• Studies were carried out to
in-
crease the communication between
the committees and the Board of
Directors.
• The external consultant support
for the Board of Directors has been
increased.
• The Strategy and Digitalization
Committee was established
in
February 2022 to contribute posi-
tively for the increase of efficiency in
the monitoring and improvement of
Company performance, taking into
account the evaluations, suggestions
and recommendations from share-
holders and investors. In this com-
mittee, company’s strategies, invest-
ments and digitalization processes
are monitored effectively, all projects
and actions that increase the value
of the company relating to the posi-
tion in the market, digitalization ef-
forts, governance practices etc. are
followed up by the Committee and
are regularly brought to the agenda
of the Board of Directors.
The performance evaluation process
of the Board of Directors was complet-
ed also in 2022 in line with the method-
ology below that Corporate Govern-
ance & Capital Markets Compliance
Directorate designed and submitted to
the Corporate Governance Committee
and the committee later proposed this
performance evaluation process to the
Board of Directors.
Performance Evaluation
Form and other
evaluation process were
designed in line with
legislation and best
practices.
Each Board Member
answered the set of
questions composed
of four sections in the
Performance Evaluation
Form.
Answers of Board
Members in the
Peformance
Evaluation Form
were analyzed and
improvement areas
were identified.
Analysis on feedbacks
and identified
improvement areas were
presented to the Board
and an action map was
prepared.
1
2
3
4
Evaluation
process was
designed taking
into account
best practices.
Performance
Evaluation Form
was filled by the
Board Members.
Feedbacks were
reviewed.
Action map
determined.
72 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.9; GRI 2.10; GRI 2.11; GRI 2.15; GRI 2.18; GRI 2.19
GRI 2.9; GRI 2.10; GRI 2.11; GRI 2.15; GRI 2.18; GRI 2.19
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 73
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Board of Directors Performance Evaluation Method
The set of questions as part of the Board of Directors Performance Evaluation methodology was determined under the fol-
lowing four sections:
The set of questions contained in this
section addresses whether there
was timely, clear and comprehensive
information regarding the meeting
agenda items, whether financial
information highlights important
issues and trends, and the
effectiveness and impartiality of the
meetings.
The set of questions contained in this
section addresses the main issues such
as the effectiveness of the oversight,
adequacy of annual business plan
reviews and whether the company’s
value, mission, strategy, business plans
are reflected on important issues,
and whether financial indicators are
followed up properly.
Information
Provided to the
Board
Board
Composition
and Function
The set of questions contained in
this section addresses issues such
as whether the members have the
necessary qualifications, experience
and skills, whether a sufficient
number of meetings are held, and
the functioning of the committees.
Board
Dynamics
Standards of
Conduct
Human Rights, Business Ethics and
Common Values
Turkcell believes in the vital importance
of having a responsible business mod-
el that complies with ethical standards
in the international ecosystem created
with the Group companies and business
associates in the overall value chain, for
producing long-term sustainable val-
ues, ensuring stakeholders’ confidence
and enabling social license-to-operate.
Accordingly, it implements the Human
Rights Policy both to create a work en-
vironment worthy of human dignity and
to place human-oriented function in the
ecosystem. 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 viable world
by contributing to UN Global Compact
Principles and Sustainable Development
Goals, respecting human dignity, funda-
mental rights and freedoms in the tech-
nologies it develops, especially artificial
intelligence technology.
In line with our Human Rights Policy, the
provisions of the Universal Declaration
of Human Rights, the
International
Convention on Civil and Political
Rights, the
International Convention
on Economic, Social and Cultural
Rights, the UN Convention on the Rights
of Persons with Disabilities and the
Convention on the Rights of the Child,
the United Nations Business World
and Human Rights Principles,
the
United Nations The Global Principles
and OECD Principles for Multinational
Companies, the provisions of the ILO
Convention to which Turkey is a party,
the “Rights and Freedoms of Assembly”
for our employees and expressed in
the Constitution of the Republic of
Turkey, and the “Rights to Form Unions
and Engage in Union Activities” are
respected; in addition, our employees
are supported to become members
of professional groups in their field or
NGOs that provide social benefits.
You can access our Human
Rights Policy on our website.
In 2021, it was aimed to expand the com-
pliance with the Turkcell Human Rights
Policy to Turkcell subsidiaries, and the
respective process started and pro-
gressed with Superonline. Human Rights
Policy preparations are also underway
for our other subsidiaries in Turkey.
With the Turkcell Common
Values and Code of Business Ethics
(TODİEK), which was developed in line
with global best practices and adopted
by the Board of Directors, we protect
74 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
The set of questions contained in
this section addresses issues such as
conflict of interest and adequacy of
contribution.
our employees and adopt exemplary
ethical behavior across our ecosystem.
In 2022, 28 cases were reported to our
Company through Ethics Channels. The
reviewed cases were handled under
the 3 main categories of unethical and
immoral behavior, information security
and financial issues. In 1 out of 23 cases
reviewed, it was decided to apply the
“Termination of Employment” sanction.
It was further decided that the cases re-
viewed did not involve any actions that
violate the Turkcell Group Anti-Bribery
and Corruption Policy.
Our employees, customers and
suppliers can convey their reason-
able doubts and information re-
garding 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 reg-
ulations or ethically inappropriate
situations directly or indirectly by
using internal forms, telephone and
email to the Ethics Committee at
etikbildirim@turkcell.com.tr
or Audit Committee at
auditcommittee@turkcell.com.tr.
SPK C1.5; SPK C1.8
GRI 2.23 ; GRI 2.30
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 75
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 75
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Anti-Bribery and Corruption,
Compliance with International
Capital Markets and Economic &
Trade Sanctions and Export Controls
Anti-Bribery and Anti-Corruption
In line with our aim of being a trusted
company for all our stakeholders and
being an exemplary corporate citi-
zen, we oversee compliance with na-
tional and international Anti-Bribery
and Anti-Corruption (ABC) standards
covering all our activities. The Board
of Directors approved the AntiBribery
and Corruption Policy (ABC) in 2016 to
establish the basis of our fight against
bribery and corruption. This document
is a major indication of how the Board
of Directors is committed to the “zero
tolerance” principle on bribery and
corruption. Our ABC Policy is publicly
available, and we expect 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) as of April 2018, which
takes necessary preventive meas-
ures to ensure compliance with these
rules and provides risk-based train-
internal communications.
ings and
As of January 1, 2021, the Corporate
Governance & ABC Program Office
continues its activities under the name
of Corporate Governance & Capital
Markets Compliance Directorate with
its autonomous structure, reporting di-
rectly to the Board of Directors.
Executing the anti-bribery and cor-
ruption compliance program in 2022,
our Corporate Governance & Capital
Markets Compliance Directorate con-
tinued the end-to-end designed ABC
training program, organized specif-
ic trainings with a risk-oriented ap-
proach, involved in the merger and
acquisition processes, and contin-
ued cooperation with domestic and
abroad group companies, and con-
ducted studies to disseminate this pol-
icy across the Turkcell ecosystem.
Within this context;
• The Second Generation ABC Training,
which comparatively measures the
knowledge
level of the participant
before and after the training, and ad-
dresses many ethical dilemmas from
actual daily professional life regarding
bribery and corruption in a fictional
flow, was assigned to all Turkcell group
company employees in 2021 in Turkey.
Also, in 2022, the aforementioned train-
ing continues to be assigned to all new
employees who join the company.
• Coordination and awareness activities
were held with domestic and inter-
national group company compliance
contacts within the scope of the fight
against bribery and corruption.
• Training and awareness activi-
ties were carried out under the ti-
tle of “Developments in the Field of
Compliance in the Technology Sector”,
with focused training groups for ana-
lyzing the decision taken by the U.S.
Securities and Exchange Commission
(SEC) regarding FCPA violations that
took place in Turkey in 2022 and the re-
sults thereof.
• Within the framework of a risk-oriented
approach, a total of 12 hours 45 minutes
of anti-bribery and anti-corruption
training was provided to various teams.
• The Corporate Governance & Capital
Markets Compliance Directorate car-
ried out studies to disseminate the
zero-tolerance principle adopted by
Turkcell within the framework of the
ABC Policy, to the ecosystem by provid-
ing compliance consultancy in various
contracts, tenders and business setups.
• “Anti-Corruption Week” activities were
carried out for all Turkcell group com-
pany employees between December
5th and 9th, 2022. In this context, the mes-
sage of our CEO regarding the fight
against corruption was sent both in
Turkish and in English to our group com-
pany employees. In every single day of
this week, which is programmed as an
awareness week, various information
notes were sent to all employees and
award-winning questions were asked.
Compliance with International Capital
Markets
Due to its specific position in the cap-
ital markets, Turkcell implements dual
rule sets and good practices within
the framework of both Turkish and U.S.
capital markets, particularly on corpo-
rate governance structures, financial
reporting and internal control process-
es. Among Turkcell’s prominent corpo-
rate processes implemented as part of
those requirements, the following can
be named: Turkcell Board of Directors
and its committees’ structure, oper-
ating rules and independence of its
members; the effective internal control
environment regarding the financial
reporting processes based on report-
ing and disclosure obligations 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 exec-
utives in accordance with SEC; and the
blackout period and the quiet period
for the trading of shares.
the Public
Practices based on
Companies Accounting Reform and
Investor Protection Act, also known
as Sarbanes-Oxley (SOX) Act and U.S.
Foreign Corrupt Practices Act (FCPA),
which aim to improve the control mech-
anisms of companies’ financial report-
ing while supporting effective corpo-
rate management, particularly stand
out as part of Turkcell’s short- and long-
term and sustainable corporate DNA.
Due to our dual listing in the capi-
tal markets, SOX Coordination and
Compliance Unit has been established
within the ABAC Office as of January
2019 in order to carry out our obliga-
tions to comply with capital markets
regulations and corporate govern-
ance practices that we are subject
to under an autonomous structure
that has direct access to the Board of
Directors. The SOX Coordination and
Compliance Unit has been continu-
ing its operations under the name of
SOX Compliance and Governance
Unit since January 1, 2021. The SOX
Compliance and Governance Unit,
along with monitoring the regula-
tions of SEC and Public Company
Accounting Oversight Board, supports
corporate transparency and contrib-
utes to reliable information disclosure
to the public by incorporating good
practices within our Company.
Training and awareness activities are
carried out by the SOX Compliance
and Governance Department under
the title of SOX 404 practices that con-
stitute an integral part of our employ-
ees’ way of doing business. Regarding
SOX 404-connected developments, a
total of 11 hours training was given to 28
employees in 2022.
Economic and Commercial Sanctions
and Export Controls
the coordination of
The Turkcell Sanctions Compliance
Program Procedure, which is con-
stantly monitored and
revised
the
under
Corporate Governance & Capital
Markets Compliance Directorate
(“Directorate”), was adopted by
the Board of Directors in 2020. The
Sanctions Compliance
Program
Procedure plays an important role by
following our company’s compliance
program, which aims to observe eco-
nomic and trade sanctions and ex-
port control rules, both at the share-
holders’ level and in our ecosystem
for taking necessary actions.
Within the scope of the Sanctions
Compliance Program Procedure, a
periodical review covering all busi-
ness activities of the Turkcell group is
carried out by the Directorate in line
with the data received from the busi-
ness owners. Business owners in the
company are obliged to screen their
counterparts using the consolidated
sanctions list databases of the United
Nations, European Union, USA and UK
before initiating any business relation-
ship. Where required, additional due
diligence activities are being made by
the Directorate, and additional meas-
ures are being taken. Turkcell is also
aware of the intensifying of sanctions
imposed on Russia and Belarus by es-
pecially the European Union, United
Kingdom, United States, and closely
monitors the impacts of sanctions on
group companies with the coordina-
tion of group companies’ compliance
units. Updates and risk assessments
regarding
imposed
the sanctions
on Russia and Belarus are also con-
veyed to the Early Detection of Risk
Committee and, if necessary, to the
Board of Directors. At the end of 2022,
economic and trade sanction-related
screenings began to be supplement-
ed by an additional outsource service.
In 2022, the Directorate continuously
monitored the legislation and devel-
opments regarding economic and
trade sanctions and export controls
and provided trainings and awaness
activies in this regard. In this scope;
various teams received a total of 9
hours and 45 minutes of training.
Competition Management
Turkcell believes that maintaining fair
and strong competition conditions is
critical for a health market structure. A
competitive market also has positive ef-
fects on the development and strength-
ening of the parties. For this reason, it is
of great importance for Turkcell and its
Group Companies to effectively ensure
and protect competition in all markets in
which they operate.
Turkcell strives to comply with compe-
tition law legislation and regulations in
all its business and transactions. One
of the main objectives of competition
law is to prevent dominant players in
the market to abuse their power by es-
tablishing agreements, decisions and
practices, which avoids, distorts or re-
stricts fair competition. Moreover, the
competition law controls merger and
acquisition transactions to preserve
competition in the markets, and makes
necessary regulations and conducts
supervision to protect competition. In
this context, certain processes are fol-
lowed within Turkcell, including but not
limited to the following:
• It is ensured that the guides, informa-
tion and trainings prepared within
the scope of the competition com-
pliance process are reviewed 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.
• Sensitive information is not shared
among competitors.
• 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
resell Turkcell products and servic-
es are not interfered in by Turkcell.
Recommended sales price notifica-
tion rules are precisely followed.
Turkcell and Turkcell Group companies
act in all their markets of operation in
accordance with competition rules un-
der the Turkish Commercial Code, the
Law on the Protection of Competition,
the Electronic Communications Law
and secondary legislations.
investigation process
We disclose information on critical cas-
es that Turkcell is a party to, as part of
our disclosures to the BIST, SEC and oth-
er related authorities in compliance with
CMB and IFRS standards. In this context,
critical cases arising from competition
law are also included in those reports.
initiated
The
with the decision of the Competition
Board to determine whether Article 4
of the Law No. 4054 on the Protection of
Competition has been violated through
a gentleman’s agreement in the labor
market, which was based on the al-
legation that our company violated
the competition regulations within the
scope of the Law on the Protection of
Competition, is still ongoing.
76 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A3.3
GRI 2.27
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 77
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Effective Risk and Crisis Management
Turkcell manages the
risks that may negatively
impact realization of
company strategies
within the scope of
the Corporate Risk
Management System. In
this process, an effective
risk management study
is implemented with a
broad scope to cover
the key risk indicators,
technology-based
opportunities, global
trends and sectorial
developments.
Corporate Risk and Business
Continuity Management
Since the end of the financial year of 2012,
the Early Detection of Risks Committee
has been in operation to perform ac-
tivities in a manner affiliated with the
Board of Directors within the scope of
article 378 of the Turkish Commercial
Code and
the Communiqué on
Corporate Governance of the Capital
Markets Board, and the committee re-
ports to the Board of Directors every 2
months. These reports are also shared
with the independent audit company.
The Enterprise Risk Management team
is responsible for assessing risks and re-
porting risk prevention activities to the
Early Detection of Risks Committee, as
well as coordinating the risk prevention
activities within Turkcell and its group
companies through the Corporate Risk
Management methodology.
The Turkcell Enterprise Risk Management
team, designed
in compliance with
Enterprise Risk Management frame-
work and ISO 31000 standards, is real-
ized with an approach where the risk
management process is integrated with
fundamental management processes.
Within the model framework, risks are
classified on the basis of Turkcell Group
Companies, they are registered and
managed in the “Risk Universe”. This al-
lows for each company to have their
own risk library and manage their risks
in a more efficient and focused manner.
Turkcell Group Business Continuity
Management System has been struc-
tured to ensure the continuity of the rel-
evant critical products and services of
our DSS companies BiP İletişim, Lifecell
Bulut and Turktell Bilişim as well as
voice, messaging, internet, server ser-
vices, data centers, public security, tow-
er installation, acceptance, testing and
operation support services in accord-
ance with the international ISO 22301,
Security, Resilience Business Continuity
Management System standard, and it
was certified as a result of independent
external audit. The external audit carried
out on the revised version of ISO 22301
2019 was successfully completed in full
compliance with the updated standard.
Regular drills are conducted to test our
in
business continuity plans, drafted
consideration of customer expectations,
corporate policies and legal obligations,
so as to guarantee their sustained oper-
ation in case of emergencies or disasters.
Our geographically dispersed technical
infrastructure, extensive coverage, solu-
tion partner network, mobile network,
mobile base stations, additional capacity,
emergency center and past experiences
enable us to minimize risks as much as
possible. Moreover, the experience of our
Group companies in customer services,
infrastruc-
our high-speed fiber-optic
ture, data storage services and our ex-
perienced software development teams
allow us to effectively manage any dis-
asters from another center, thereby en-
suring the continuity of our activities.
In order to increase the effectiveness
of the Turkcell Crisis Management Plan
which covers operational disruptions,
natural disasters (earthquakes, floods,
etc.), cyber-attacks, terrorism, fire, pan-
demic and epidemic and toxic events,
regular drills are conducted, and trainings
and awareness activities are held with
the participation of Crisis Management
Teams and related groups.
Information Security Risks
Data security risk: This includes the risks
of theft, loss, leakage, deliberate or acci-
dental disclosure, misregistration, altera-
tion, deletion, destruction and inacces-
sibility of any information stored both in
physical and/or in electronic media via
authorized/unauthorized access from
within or outside of the organization. In
response to risks associated with data
security, Turkcell takes the necessary
technical and administrative measures.
Cyber security risk: This involves the risk
of destruction of information systems
and of damage to systems due to the
malicious use of Turkcell’s internal and
external computer and network sys-
tems. In this context, Turkcell manages
vulnerabilities by implementing end-
to-end security controls and tests. The
Security Operations Center monitors
threats 24/7 and performs cyber-at-
tack monitoring and defense.
Financial Risks
Macroeconomic risks: This includes the
risk of worsening expectations and/or
the current situation due to economic
and political uncertainties. Turkcell al-
ready diversifies its financing sources
and keeps different resources and nec-
essary agreements ready, for events of
possible sanctions and regional inabil-
ity to access certain resources.
Currency, interest and inflation risk:
This includes the risk of increasing costs
and decreasing revenue 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 and interest rate risks.
Liquidity, financing risks: This involves
the risk of disruptions to cash flow and
inability to fulfill the obligations due to
inaccessibility of financing resources
utilized or intended to be utilized, or
inability to pay-back loans. Turkcell’s
forward-looking cash projection is sys-
tematically monitored with the princi-
ples 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 periods
when collection risk increases for cer-
tain reasons (economic crisis, pandem-
ic, war, etc.), collection balances and
trends, as well as cash flow are moni-
tored and reported to senior manage-
ment on a daily basis.
Strategic Risks
Risks of adaptation to investment and
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, medi-
um, or long term, which can be induced
from lack of investment in innovation,
new businesses within the sector and
other areas and/or missing opportunities
due to not being able to get the expect-
ed return on investment. In this context,
sectoral, local and global trends and
competitor activities in new business
lines are closely monitored and neces-
sary actions are taken. Technological
developments are followed through col-
laborations with important international
sectoral organizations such as GSMA, as
well as through competent R&D studies
and projects at national and interna-
tional levels.
Legal Risks
Risks regarding compliance: This involves
the risk of encountering administrative
sanctions as a result of failure to comply
with the applicable regulations. Turkcell
Legal and Regulatory Function aims to
monitor and prevent any possibility of
non-compliance by closely following de-
veloping and changing regulations with
a pro-active management approach.
Within this scope, business teams are pro-
vided with briefings and information with
respect to changes in legislations as well
as new regulations which are monitored
by senior management through Personal
Data Steering Committee, Compliance
Committee, Sub-compliance Committee
and
Information Systems Compliance
Committee; and relevant compliance ac-
tivities are carried out in this respect, var-
ious measures are taken via digitalized
tools such as internal audit and automat-
ed control systems, working continuously,
to prevent the occurrence of any breach
imposition of any administrative
and
sanctions.
Lawsuits and legal conflict risks: This
includes the risk of encountering sanc-
tions against Turkcell due to the filing
of a lawsuit related to the area of re-
sponsibility. Legal activities are carried
out regarding those conflicts that may
arise against Turkcell regarding its op-
erations, contracts and projects.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Business Continuity Risks
These are the risks which the Company
may encounter as a result of events in-
cluding operational interruptions, natural
disasters, terrorism, etc. Crisis, business
and service continuity plans within the
Company have been prepared in detail. In
order to evaluate their effectiveness and
identify potential areas for improvement,
plans are reviewed periodically, and regu-
lar drills are carried out annually. The risks
that could be related to business continu-
ity and connected to earthquake and cli-
mate change are defined, evaluated and
necessary actions are taken in coordina-
tion with the Corporate Risk Management
in a manner that encompasses all func-
tions of our Company. Corporate Risk and
Business Continuity management enables
increasing awareness around risk-based
management and adopting a manner
of risk management based on scenarios
through a lens of effective and dynamic
risk management.
Operational Risks
renewable energy
Environmental, sustainability and eco-
logical risks: Issues that may arise from
climate change (such as temperature
changes, increase in energy consump-
tion, increase in energy prices, insufficient
waste management, lack of protection
of water resources, etc.) and risks relat-
ed to environmental factors that may
affect human health and biological di-
versity are included in this risk category.
In this context, as Turkey’s first ISO 50001
certified mobile operator, Turkcell tracks
its energy consumption and makes
invest-
extensive
ments through its subsidiaries. As an ISO
14064 (International Greenhouse Gas
Calculation and Verification Standard)
certified mobile operator, Turkcell calcu-
lates and verifies its greenhouse gas emis-
sions through an independent organi-
zation. Through its CDP Climate Change
reporting, Turkcell regularly shares in-
formation with stakeholders on its ap-
proach to climate change performance
and its risks and opportunities posed by
climate change. As a company that con-
sumes and produces 100% renewable
energy, Turkcell continues to work and
invest around its goal to become carbon
neutral by 2050. Additionally, Turkcell is
a zero-waste certificated company with
zero-waste recycling.
Climate Crisis
The risks induced by climate change
business
directly
Turkcell’s
affect
operations. Measures are taken against
extreme weather events and natural
disaster risks caused by climate change
and studies are made after foreseeing
increases in average temperatures in the
long term. The effects and results of risks
created by climate change are moni-
tored within the framework of Corporate
Risk Management.
As Turkcell, we conduct field risk anal-
yses during the installation of base sta-
tions, 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 temperatures in the long
term. Turkcell’s mobile base stations can
be seen as examples of our agile and
creative solutions which are mandatory
in such circumstances of climate change.
Mobile base stations that have solar
panels on top of the vehicles are located
to serve in places where there is a loss of
service or a need for additional capacity;
in addition, portable solar fields are parts
of our agile energy solutions in the face
of climate change. Furthermore, some
base stations of Turkcell are integrated
with solar panels so that they switch to
solar energy in case of a network outage.
This allows Turkcell’s control mechanisms
to predict all risks in order to prevent in-
terruptions
in communication making
Turkcell one of the exemplary companies
around the globe.
Global Energy Crisis
The increase in energy demand and
limitations of energy resources in 2021
have caused the energy commodity
prices to reach record levels in the in-
ternational market. The energy pric-
es that directly impact Turkcell Group
fluctuate depending on the prices of
thermal resources such as natural gas
and coal, and the capacity for renew-
able production. Parallel to the simul-
taneous USD-based price increases in
energy commodities, and the domestic
drought-induced decline in production
of our hydroelectric power plants which
is our country’s largest source of elec-
tricity production, the electricity prices
in Turkey are also increasing similar to
the European markets. Another fac-
tor that increases the prices in TRY just
like commodity prices is the increase in
exchange rate. During the past 1 year,
natural gas prices for power genera-
tion increased by approximately 171%,
and spot market power prices, which
constitute the biggest portion of our
electric cost increased by 216%.
Turkcell Group continues to take two main
actions in response to rising energy pric-
es. The first action is based on the target
to meet the Group’s energy consumption
needs mostly from its own power plants
until 2030 as an investor in large-scale
projects on renewable energy resourc-
es. Acquisition of Karadağ Wind Energy
Power Plant with an installed power of
18 MW has been completed in 2021 as a
first step of this strategy. Turkcell Group
will make a 300 MW Solar Power Plant
investment in order to meet its own con-
sumption in suitable lands across Turkey
within the framework of the 3-year stra-
tegic plan. In the Karadağ Wind Energy
Power Plant, which was acquired in 2021,
capacity will be increased by installing
new turbines. The second action is to
protect ourselves from temporary fluctu-
ations in the market by signing long-term,
fixed-price energy purchasing contracts
whenever possible. Since 2018, when we
starting sourcing energy supply servic-
es through our company Turkcell Energy
Solutions, we have made fixed priced
purchases from producer companies for
a certain percentage of our consumption
every year.
Risks related to managing relationships
with third parties: This includes risks that
arise from inefficient management of
third parties, which may occur due to
failure of third parties in fulfilling their
responsibilities completely and accu-
rately, their activities violating compa-
ny 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 which
have obtained legal opinion.
Within the scope of the supply chain dis-
ruption risk, the related developments
causing the scarcity of current supply
are being closely monitored. Estimations
for the future periods are being made
and actions are being taken evaluating
the order planning for impacted prod-
ucts’ supply duration.
To avoid employee mistakes and man-
age processes and projects more effec-
tively, Turkcell Academy analyzes train-
ing needs, completes assignments and
designs content, and then provide tech-
nical, personal development and com-
petency training in areas of employee
development.
Market Risks
Macroeconomic and political uncer-
tainty risks: This includes the risks of
worsening expectations and/or the cur-
rent situation due to economic effects
such as the impact of exchange rate
fluctuations and inflation on custom-
ers’ consumption habits and of political
and geopolitical uncertainties. Global
trends, economic indicators, competi-
tion, revenue and subscriber data are
regularly monitored by Turkcell.
Competition risks: This includes the risk
of being put at a disadvantage in com-
peting activities or technological and/
or sectoral developments. In this context,
market and competitor activities are
closely monitored and efforts are made
to respond to such competing activities
with timely actions.
Customer risks: These risks include the
risks of not being able to meet the cus-
tomers’ demands/ expectations due to
demographic changes (age, training, in-
come, etc.) in the customer groups or not
being able to understand the customers’
needs.
Internal Control and Continuous
Improvement
Internal Control and
Turkcell Group
Continuous
Improvement Directorate
identifies internal risks and carries out
2nd level control activities and process
improvement studies for the effective
management of business processes
in Turkcell İletişim Hizmetleri A.Ş. and
Turkcell Group Companies within the
scope of
laws, regulations, commu-
niqués and regulations within the frame-
work of professional standards, further
to the authority given by the CEO.
The Internal Control and Continuous
Improvement Directorate analyzes the
risks and priorities of the processes of
the functions that we are responsible
for, plans a risk-based internal control
study, and conducts routine controls
during the period by means of manual
or automation tools according to the
control intervals determined with the
approval of the CEO.
The Continuous
Improvement Center
carries out studies by making use of
the technology at the maximum level to
design our business processes in a way
that will provide lean, agile, efficient,
usable, minimum risk and error criteria,
construct mechanisms to ensure a per-
manent transformation.
During the internal control activities, in
addition to evaluating the effectiveness
of controls at the first level, business
units are guided to improve processes
by taking into account Turkcell’s sustain-
able values. If there are any malfunc-
tions detected as a result of the controls,
they are shared with the relevant teams
to take action and the relevant action
plans are followed. During the control,
if it is determined that the related de-
fect is caused by a process deficiency,
the related process is handled end-to-
end and works in coordination with the
Continuous Improvement Center within
the directorate to redesign it.
After the control study, the results are
reported at managerial level. During
the meetings held periodically between
the Internal Control Department and
the management, the internal control
activities planned and realized during
the year are evaluated, the findings are
shared and the action plans and fol-
low-up results that are decided to be
obtained for the relevant findings are
evaluated and the plans for the future
are reviewed.
In addition to evaluating the effective-
ness of the controls of the processes of
the business units, carrying out internal
investigations on the obligations of the
ISO certificates
company regarding
within the scope of the legal regula-
tions and the follow-up of Turkcell in-
ternal audit/external audit results are
among the other areas of responsibility.
ISO27001 and ISO27017 certificates pro-
vide an international framework which
helps companies to protect their finan-
cial data, intellectual property and sen-
sitive customer information. Information
Technology Security Techniques stand-
ards for ISO27001 Information security
management system are the internation-
al certificates possessed by our compa-
nies Turkcell, Lifecell Bulut, Superonline,
Turktell, BİP, Turkcell Teknoloji, and KULE
A.Ş. ISO27017 Information Technology
for Cloud Services Safety Techniques
international cer-
standards are the
tificates possessed by our companies
Turkcell and Superonline.
These certificates provide a robust and
systematic approach to
information
in protect-
management, and assist
ing information and mitigating risks at
our companies. Thanks to ISO 27001,
ISO27017 certificates, we define, man-
age and mitigate our risks accord-
ing to the standards for the security
of our information. On the continuous
improvement side,
ISO9001 Quality
Management System audits have been
successfully completed and audit out-
puts have been evaluated to create
inputs for the continuous improvement
cycle.
Document Management System and
governance improvement activities are
implemented through an
integrated
quality management system approach
as well as a continuous improvement
fostered
awareness and culture
through process improvement sugges-
tion platform and training activities.
is
Cutting-edge technologies that serve
continuous improvement are being im-
plemented and managed in our pro-
cesses. We undertake process mining
initiatives through data-driven process
management and in-house deployment
efforts for robotic process automation.
All processes of Turkcell and its group
companies are designed and modeled
from end to end. Tracking and manage-
ment structure is established by identi-
fying process performance indicators
based on KPIs and metrics. Efforts are
being made to establish common pro-
cess design principles and ensure their
integration into the process develop-
ment cycle, while creating, renewing,
and maintaining corporate process and
document architecture.
Studies are conducted to create the
risk and internal control inventory of all
processes in the name of reinforcing
our Internal Control and Continuous
Improvement activities. Within the scope
of detective and preventive Internal
Control Activities, automated controls
are designed using advanced data an-
alytics and robotic automations. Thanks
to these activities, more reliable control
results cleared from human error are
obtained. It has a positive contribution
on the development of internal control
activities.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Program
objective is to;
1
In March 2022, RPA Marathon program with the
motto “Dream and produce, discover digital
experience with Robotic Process Automation
Marathon!” has been launched.
As a result of the
program:
3
Increase the number of employees
with RPA qualification
Create a digital transformation
culture with RPA in all Turkcell
technical and non-technical functions
A total of 1,001 automated processes
(currently 330 processes)
952 new RPA scenarios have been commissioned in 2022, while
total number of RPA scenarios in Turkcell has reached 1,300.
According to the statements in the scenarios put into live
in 2022, a total of 11.5 million minutes per year has been
transferred to the robots.
More than 300 RPA developers have been
redounded to Turkcell.
Automation awareness has been
created with RPA.
During the
program period
2
more than 2,300 Turkcell employees were con-
tacted with the following activities.
One Ideathon (idea contest) – 95 people
Two Hackathons - 329 people 78 teams
Two RPA experience sharing workshops - 877 people
50 function-specific workshops
Online RPA training with 1000+ people
In 26 classes, 420 hours in class training for 350+ people.
Internal Audit
In selecting an independent audit com-
pany; the Audit Committee considers
the competencies and impartiality of
independent audit firms and submits
its suggestion to the Board of Directors.
During our Company’s Ordinary
General Assembly Meeting held on
June 16, 2022, PwC Bağımsız Denetim
ve Serbest Muhasebeci Mali Müşavirlik
A.Ş.
(PricewaterhouseCoopers) was
appointed as the Company auditor for
the auditing of our Company’s financial
statements of 2022, as per the Turkish
Commercial Code (TCC).
The
Internal Audit function within
the Company directly reports to the
Board of Directors and is responsi-
ble for the auditing of Turkcell İletişim
A.Ş. and all group companies, which
are subsidiaries, and reporting the re-
sults of audit activities carried out in
step with International Standards for
the Professional Practice of Internal
Auditing to the Audit Committee. The
auditing activities of the Internal Audit
mainly comprise operational audits
conducted pursuant to annual risk-
based audit plans and audits in ac-
cordance with compliance to Article
404 of the Sarbanes Oxley Act.
Operational audit activities are carried
out according to annual audit plans
prepared in line with a risk-based au-
dit approach. Through conducting
operational audits, the Internal Audit
department evaluates the effective-
ness of risk management, control, and
governance processes, providing as-
surance to the Board of Directors and
Audit Committee in this respect, and
thereby assisting Turkcell in meeting its
goals.
As we are listed on the New York Stock
Exchange in the United States, and as
per the provisions of Article 404 of the
Sarbanes Oxley Act, which all public-
ly traded companies are required to
comply with, audit activities are con-
ducted within the framework of the an-
nual plan to provide assurance in terms
of the existence, adequacy and effec-
tiveness 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 activi-
ties, identifying internal control insuffi-
ciencies, and following up and closing
related actions within the scope of
compliance with the aforementioned
article are regularly reported to the
Audit Committee, CEO and CFO.
The
Internal Audit Directorate also
provides consultancy services with
respect to matters at hand, as well as
matters raised by the management.
The Internal Audit Directorate reports
on compliance practices as per Article
404 of the Sarbanes Oxley Act to the
Audit Committee, CEO and CFO. The
Internal Audit mechanism operates
with a risk-based audit approach. In
line with this approach. We constant-
ly evaluate the probable risks from a
functional and corporate based per-
spective. The main input of audit prac-
tices is the risk analysis formed as a
result of these practices.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Financial Capital
Outputs
TRY
1.7
Billion
Free Cash
Flow
Strong Financial Performance
Our financial capital is the key eco-
nomic input for all activities we carry
out on our journey towards
creating stakeholder value. Providing
our customers
innovative services
through a widespread and strong tel-
ecom infrastructure, developing do-
mestic technologies, creating a service
network that will create satisfaction,
supporting the society through social
projects, catering suitable employ-
ment conditions for our employees and
creating value for our shareholders re-
quire a strong financial performance.
In this respect, strong and sustainable
financial performance is among our
top priorities.
While targeting generation of strong
operational profit through revenues
from our operations, we focus on effi-
cient management of working capital
requirement and realizing our capital
expenditures based on demand, thus
supporting long-term value creation.
Risk management is one of our main
agenda items as we operate in an
emerging market. We follow a prudent
risk management approach to protect
our business model against macroeco-
nomic and financial fluctuations with
hedging practices. Accordingly, in or-
der to realize real revenue growth and
eventually minimize inflationary pres-
sure over our operational profitability,
we give importance to adjusting the
prices of our products and services in
line with the general level of prices in
our country. We also promote growth
through subscriber net additions as
well as our focus areas such as con-
sumer and corporate digital service
revenues and techfin. Meanwhile, we
ensure that our balance sheet is resil-
ient to the currency movements by ac-
tively utilizing hedging instruments.
We aim to be prepared against finan-
cial crisis and shocks by focusing on
keeping our liquidity sources strong. On
the other hand, we contribute to effi-
cient use of capital through a well-bal-
anced management of our leverage
level. We focus on implementing an ef-
fective financing approach by closely
monitoring the credit and capital mar-
kets and using a variety of financing
instruments in right currency, cost and
maturity terms. We contribute to work-
ing capital management by effectively
managing our collections.
The efficient capital allocation is an-
other important matter in terms of our
financial
capital. In this framework, while main-
taining our efforts to direct our capital
resources to more profitable areas that
generate higher growth, we remain fo-
cused on our objective of revealing the
real value of our assets in our balance
sheet.
As part of our solid corporate govern-
ance efforts, we disclose our finan-
cial management approach to our
stakeholders through our integrated
annual reports, quarterly and annual
results announcements, our website,
and the physical/virtual investor meet-
ings we attend and events we hold.
Accordingly, we pursue our efforts to
increase the market capitalization and
trading volume of our Company, to di-
versify and deepen the investor profile
and increase the share and number of
long-term investors on our institutional
investor base.
You may review the details
of our audited annual financial perfor-
mance in the consolidated financial
statements section.
TRY
TRY
TRY
TRY
53.9 22.0 12.5 11.1
Billion
Revenue
Billion
EBITDA
Billion EBIT
Billion Net
Income
Operational CAPEX
/ Sales Ratio
20.2%
USD 25
Million Net Short
FX Position
Consolidated
Leverage Ratio
0.9x
317
Meetings with
Investors
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Revenues From Operations
The revenue from our operations stands
out as one of the essential input of all
our activities that we conduct in terms
of value creation. Consequently, we
bring our innovative services to our cus-
tomers, improve the conditions of our
employees, contribute to the national
economy and our people through the
investments we make, distribute divi-
dends to our investors, in summary cre-
ate value for all our stakeholders.
2022 has been a year in which the in-
flationary pressures have globally in-
creased with the post-pandemic nor-
malization, and the macro-economic
and politic challenges were experi-
enced throughout the world as a result
of the Russian-Ukrainian War. In the
light of these developments, Turkey has
maintained its growth performance in
2022, however, the depreciation of the
TRY led to an upward trend in inflation
throughout the year.
As Turkcell, we continued our strong op-
erational and financial performance in
2022 in an environment where challeng-
ing macroeconomic conditions were
prevailing, thanks to our diversified
business model with our strategic focus
areas and our customer-oriented ap-
proach. In 2022, our consolidated reve-
nues increased by 50.0% year-on-year
to TRY 53.9 billion. Our expanding sub-
scriber base, our ARPU growth which
has accelerated under the light of our
sequential price adjustments, the pos-
itive contribution of our international
operations and strategic focus areas to
the growth stood out as the main drivers
behind this performance.
With the positive impact of our strong
revenue growth and disciplinary cost
management implementations, we re-
corded TRY 22.0 billion EBITDA with an
increase of 46.5% in 2022. Increased en-
ergy and employee expenses as result
of the macroeconomic conditions, were
offsetted by managing our marketing
and sales expenses more efficiently.
We bring our innovative
services to our
customers, improve
the conditions of our
employees, contribute
to the national
economy and our
people through the
investments we make,
distribute dividends to
our investors, in summary
create value for all our
stakeholders.
In 2022, the Turkish Lira depreciated by
31% and 26% against the US Dollar and
Euro, respectively. With our prudent fi-
nancial risk management approach,
we have kept the impact of currency
movements on our financials at a lim-
ited level in a period of quite challeng-
ing macroeconomic developments.
We have achieved TRY 11.1 billion net
income in 2022. The deferred tax in-
come impact resulting from the asset
revaluation in accordance with Article
11 of the Law No. 7326 also positively im-
pacted our net income performance in
2022. Please refer to our consolidated
financial statements and footnotes for
details.
Please refer to our consol-
idated financial statements and foot-
notes for details.
Turkcell Group
Revenue
(TRY million)
Turkcell Group
EBITDA
(TRY million)
50.0%
2022
growth
46.5%
2022
growth
8
7
8
3
5
,
1
2
9
5
3
,
4
0
1
,
9
2
2020
2021
2022
4
9
9
,
1
2
4
1
0
5
1
.
0
7
2
2
1
.
2020
2021
2022
Turkcell Group
Net Income
(TRY Million)
Operational Capital
Expenditures
(excluding licenses)/
Sales Ratio (Ratio)
119.7%
2022
growth
-1.0 pp
2022
change
3
5
0
,
1
1
1
3
0
5
,
7
3
2
4
,
2020
2021
2022
%
2
.
1
2
%
2
0
2
.
%
5
8
1
.
2020
2021
2022
Free Cash Flow
(TRY Billion)
-0.0
-0.7
3.4
2.4
1.7
1.1
-2.2
2016
2017
2018
2019
2020
2021
2022
Accordingly, while we created TRY
1.1 billion free cash flow in 2021, we
achieved a free cash flow of TRY 1.7
billion in 2022
TRY
1.7
Billion
With the awareness of the responsi-
bility of having a strong infrastructure
and with the aim of bringing our cus-
tomers together with the latest tech-
nologies, we continued our
invest-
ments in 2022 by following a controlled
approach. In line with the increase in
demand for quality fixed broadband
connections, which also continued
after the pandemic, we continued our
fiber infrastructure investments with-
out slowing down and added 887
thousand new homepasses. While the
investment expenditures of our subsid-
iary in Ukraine slowed down due to the
war, the depreciation of TRY against
foreign currencies caused our capital
expenditures to increase. Accordingly,
our operational capital expenditures
(excluding license fee) amounted to
20.2% of our total revenues in 2022.
You may access the details
of our domestic network investments
and 5G activities in the manufactured
capital section of our report.
We put emphasis on our free cash flow
performance in order to sustain our
strong financial performance and cre-
ate value for our investors. While our
free cash flow was at negative levels
in 2014-2018 due to 4.5G investments,
it turned positive as these investments
were completed in the following pe-
riod. Accordingly, while we created
TRY 1.1 billion free cash flow in 2021,
we achieved a free cash flow of TRY
1.7 billion in 2022. The expanding loan
portfolio of our finance company con-
tinued to pressure our cash flow gener-
ation. On the other hand, our free cash
flow was stronger than last year, as our
front-loaded mobile investments and
demand-driven capital expenditures
on the fixed side, of which positive con-
tribution we will continue to see in the
upcoming periods, were less affected
by the currency movements.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell ARPU vs. CPI Trend
Q120=100
Company and TÜİK announcements
100
100
0
2
1
Q
103
100
0
2
2
Q
112
105
0
2
3
Q
111
110
0
2
4
Q
116
107
1
2
1
Q
120
113
1
2
2
Q
126
124
1
2
3
Q
247
228
200
184
209
150
179
139
128
129
1
2
4
Q
2
2
1
Q
2
2
2
Q
2
2
3
Q
2
2
4
Q
CPI
Turkcell Mobil ARPU - Blended (excluding M2M)
Business Model Hedging Practices
In 2022, we continued to minimize the
impact of challenging macroeconomic
developments on our financials, thanks
to our business model hedging prac-
tices. Sequentially pricing our products
and services according to the current
price developments in the market, using
hedging instruments against our foreign
currency-denominated
borrowings,
keeping strong liquidity resources and
collection performance management
were the areas we focused on again this
year.
We continued adjusting the prices of our
products and services with a sequential
approach in line with the current eco-
nomic conditions in 2022. Besides accu-
rate pricing, we focused on increasing
the postpaid subscriber base share and
upselling to higher packages with rich-
er value propositions to continue ARPU
growth. Accordingly, Mobile ARPU (ex-
cluding M2M) growth was 40.3% while
fixed residential ARPU growth was 26.7%
year-on-year. In 2022, where inflation
was in an upward trend throughout the
year, we followed a balanced growth
strategy supported by subscriber addi-
tions at the same time. Accordingly, we
expanded our subscriber base with 2.3
million annual net additions. Additionally,
our digital services and techfin solutions,
which provide higher revenue growth
compared to our telecom services, also
supported our consolidated revenue
growth. Our
international businesses
also continued to contribute to the total
revenues. In this context, we minimized
inflationary pressures on operational
profitability in a year dominated by diffi-
cult macroeconomic conditions.
We continued our prudent risk mana-
gement approach throughout 2022
with regard to our foreign currency
debt in our balance sheet. We continu-
ed to actively use the hedging instru-
ments within the scope of our prudent
risk management approach. After the
rapid depreciation of TRY against fo-
reign currencies in the last quarter of
2021, we supported the effectiveness
of our portfolio in this period of volatile
currency movements by using short-
term hedging instruments. While 80%
of our total debt before hedging tran-
sactions was in foreign currency as of
the end of 2022, the ratio declines to
50% when the effects of hedging inst-
ruments are included. In order to redu-
ce our risk by diversifying our foreign
exchange transactions and position,
we prioritized local currency-based
trade with our suppliers. We signed
Turkish Lira denominated payment ag-
reements with our largest suppliers to
protect our foreign exchange position.
Accordingly, as of the end of 2022, we
had a net FX short position of USD 25
million in line with our ambition of ke-
eping an FX neutral position, which we
define as a level between minus USD
200 million to plus USD 200 million.
In this respect, we
held TRY 26.0 billion in
cash, mostly in foreign
currency on our balance
sheet as of the end of
2022. This amount is
enough to cover our
entire debt service until
the end of 2024.
Net FX Position
(USD Million)
132
-191
-25
2020
2021
2022
these hedging
Meanwhile,
instru-
ments also protect us against the in-
terest risk in the market. Accordingly,
approximately 33% of our total debt
has a floating interest rate as of the
end of 2022, while our fixed rate bor-
rowing share is at around 67% inc-
luding the impact of hedging instru-
ments. Another important aspect of
our risk management approach
is
the fact that the effectiveness of our
entire derivative instrument portfolio
is being closely monitored, and the
principal and interest payments of
the long-term foreign currency debts
are being guaranteed. Additionally,
while conducting these agreements,
we work with reliable and reputable
financial institutions recognized by in-
ternational markets.
As a telecom company that operates
in emerging markets, we need to be
prepared against volatility in financial
markets, and sustain a strong liquidity
position to ensure operational conti-
nuity. Liquidity management is there-
fore a crucial part for our financial ca-
pital. In this respect, we held TRY 26.0
billion in cash, mostly in foreign cur-
rency on our balance sheet as of the
end of 2022. This amount is enough to
cover our entire debt service until the
end of 2024.
Debt Service (Principal
& Interest)*
(USD Million)
Local Currency
FX
*Data of Turkcell Group companies excluding TFC.
9
5
7
4
2
3
1
6
4
8
9
2
9
2
5
9
2
3
1
9
3
1
9
0
3
2
3
9
7
3
9
7
0
3
2
2023
2024
2025
2026
2027+
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
In addition to our strong cash position,
our committed credit lines of USD 311
million, as well as our strong free cash
flow generation performance support
our liquidity position. Another important
focus area concerning liquidity is debt
management. Despite the depreciation
of the Turkish Lira against the USD and
EUR in 2022, we managed to reduce
our leverage level (net debt/EBITDA) to
0.9x thanks to cash generation. Until the
next technology investment, our goal is
to maintain our leverage level with cash
flow generation and to prepare for fu-
ture investments.
Due to the timely actions we took and
as our customers were also sensitive
to their payments given that telecom
services are an integral part of their
lives, we managed to maintain our
strong collection performance in 2022.
We also sustained a robust collection
performance in our financing business
in 2022 when the challenging macro-
economic conditions were influential,
continuing to keep our cost of risk be-
low sector averages. We followed a
prudent approach in granting loans to
customers, taking into account several
metrics including the payment perfor-
mance of our customers for their tele-
com invoices, as well as credit bureau
scores into consideration as part of our
evaluation process.
Consolidated
Leverage Ratio
x
1
.
1
x
9
0
.
x
7
0
.
2020
2021
2022
We also sustained a robust collection performance
in our financing business in 2022 when the
challenging macroeconomic conditions were
influential, continuing to keep our cost of risk below
sector averages.
Financell Cost of Risk
(Rate)
%
3
2
.
%
0
.
1
%
4
0
.
Q420
Q421
Q422
Efficient Capital Allocation
Financing Diversity
As Turkcell, we invest in areas with high
demand and value creation potential,
such as digital services, digital business
services, techfin offers and fiber con-
nection solutions within the framework
of efficient capital management. In this
context, we aim at creating value for
our stakeholders by strengthening our
financial and operational performance.
We have adopted the approach of fi-
nancing our investments in these areas
through active portfolio management
actions in addition to borrowing and
cash flow.
In the last quarter of 2021, we have man-
dated J.P.Morgan Securities plc in order
to evaluate options of partial stake sale
at our subsidiary Turkcell Ödeme ve
Elektronik Para Hizmetleri A.Ş., which of-
fers innovative payment solutions under
the Paycell brand as a part of the strat-
egy to expand its business volume by
accelerating growth in existing and new
markets to provide resources to the com-
pany. At the end of 2022, it was decided
to initiate the preparation process of the
initial public offering of a certain amount
of shares of our Tower company which
is included in our balance sheet with its
portfolio consisting of 10,910 towers in
4 countries, in Turkey and international
markets when required, depending on
the market conditions, and within the
framework of the provisions of Capital
Markets’ legislation and other related
legislations. Meanwhile, Superonline
stands out as one of the important as-
sets in our balance sheet with its size,
profitable operations and
revenue
growth profile. We may assess potential
public offering, infrastructure sharing, or
sale to strategic/minority shareholders
regarding this asset. Our Digital Business
Services business line, which offers many
services that would provide competitive
advantageto our corporate customers,
also stands out as a valuable business
partner for international players oper-
ating in the Turkish market. We may also
consider strategic actions related to this
line of business in the coming period.
Within this scope, we regularly monitor
market conditions and investor interest,
and we aim to unlock the real values of
the assets in our balance sheet by per-
forming various capital markets and
strategictransactions,
if appropriate
conditions arise.
We aim to create alternative funding
methods and resources, and devel-
op strong market relations in order
to provide financing diversity to our
strong equity position. Accordingly,
we continue to utilize loans obtained
from national and international banks,
issue Eurobonds in international mar-
kets, bonds, bills, lease certificates and
Asset Backed Securities in local mar-
kets and obtain ECA loans for financ-
ing procurements from foreign suppli-
ers. We also use sustainable financing
(sustainability
loan, green
indexed
loan) as part of our diversified funding
resources.
issue debt
In 2022, Turkcell Board of Directors
instru-
has decided to
ment at a nominal value of up to TRY
1,000,000,000, with various maturities
up to one-year, in Turkish Lira terms,
in the domestic market, in one or more
tranches, without public offering, as
private placement and/or to be sold
to institutional investors.In this context,
our application to the Capital Markets
Board has been approved. Within the
scope of this issue limit, our Company
has issued a financial bond with a
maturity date of 17.05.2023, an annual
simple interest of 25.50%, and a nom-
inal amount of TRY 500,000,000 in
November 2022. Moreover, in 2022, a
total of TRY 700,000,000 of financial
bonds was issued through our subsid-
iary Financell, and TRY 450,000,000
in
of this
2022. In the same period, a total of
TRY 1,250,000,000 sukuk issuance was
completed through our subsidiaries
Superonline and Paycell.
issuance was redeemed
While diversifying our sources of fi-
nance, we aim to benefit from sus-
tainability-themed loans. Accordingly,
we had used a 3-year term EUR 50
million loan from BNP Paribas in May
2019. Based on the agreement we
have made with the same bank, we
had increased this loan to EUR 70 mil-
lion in 2021 and extended its term to
December 2026. The new sustainability
objectives of the agreement were the
share of renewable energy in electric-
ity consumption, the share of renewa-
ble energy produced within the group
and the annual amount of electronic
waste collected.
In line with the company’s objectives, we pursue our
efforts on sustainable/green financing transactions
in 2022 without any slow-down, which would also
include potential green issuances that can be made
in the capital markets as well as domestic and
international banks.
Loans Utilized Under Sustainable/
Green Financing Loans
(Million Euro)
0
5
0
5
0
2
2020
2021
2022
Strong and Transparent Financial
Management
Turkcell New Technologies Venture
Capital Investment Fund
Transparency and accountability of
our financial management is as im-
portant as our strong financials to our
corporate structure. We plan, manage
and analyze our budget effectively in
line with this transparent and strong
financial management approach. In
the countries in which we operate, we
manage our tax practices transparent-
ly and accountably, directly and indi-
rectly, and disclose them through 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 corpo-
rate citizen, we carry out anti-bribery
and anticorruption activities with ze-
ro-tolerance, and act in accordance
with legislation to maintain an effec-
tive competitive market environment.
We conduct all our financial transac-
tions in accordance with CMB and SEC
regulations.
In March 2022, Turkcell established the
Re-Pie Portföy Yönetimi A.Ş. Turkcell
New Technologies Venture Capital
Investment Fund to provide strategic
and financial support to technolo-
gy-focused startups with high growth
potential in different sectors. Currently,
the upper investment limit of Turkcell
New Technologies VCIF is determined
as TRY 500 million. Turkcell VCIF has
in companies and venture
invested
capital
including
investment funds,
EasyCep, a provider of renewed tele-
phone and electronic devices, Barikat
Cyber Security operating in the field
of information security, and Procenne,
which develops products in the field
of digital security & encryption tech-
nologies. Turkcell VCIF aims to invest in
minority shares of startups operating in
high technology sectors such as cyber
security, fintech, artificial intelligence,
etc. in the future. With the synergies to
be created with the startups, it is aimed
to create long-term value, as well as
strategic and financial benefits for our
company.
You may access the details of our principles and reporting on anti-bri-
bery and corruption, competition management and related issues in the strong
corporate governance section, and the data on taxes in the consolidated finan-
cial statements section.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
As the Investor Relations Department,
throughout2022:
We held a total of 317 meetings
with institutional investment
funds.
We attended 11 investor
conferences, 5 of which were virtual.
We organized 5 group investor
meetings.
We shared our financial results
four times during the year via
teleconferences. Approximately 100
analysts and investors attended
each of these meetings, and the
recordings of these meetings were
made available on our website.
We held regular one-on-one
meetings with approximately 20
analysts to manage expectations.
Over a thousand information
requests were received
throughout the year via phone
and e-mail, to all of which we
responded.
We aim to proactively inform our in-
vestors about the impact of current
events on our processes. In March,
we held an informative meeting with
our investors to explain the impacts of
Russia’s invasion and war on Ukraine
on our subsidiaries. 85 analysts and in-
vestors attended this teleconference.
We strive to provide the maximum
benefit and create value to Turkcell
and our stakeholders
The primary goal of Turkcell Investor
Relations is to increase the market
capitalization of our
Company. Within this scope, our target
is to diversify and deepen Turkcell’s in-
vestor profile and increase the weight
and number of long-term investors in
the institutional investor base. Turkcell’s
institutional investors account for 68%
of the publicly traded shareholder
base. 47% of these investors are lo-
cated in North America, 26% in the
United Kingdom and Ireland, and 21% in
Europe (including Turkey). (Source: S&P
Global, February 2023)
Sustainability Indices and Performance
Indicators
Our successful activities
in the sus-
tainability area are confirmed by our
achievements in local and global indi-
ces. By revealing companies’ approach
to sustainability issues such as global
warming, depletion of natural resourc-
es including water, health and safety,
and employment, this index provides
an independent assessment and regis-
tration of companies by Borsa Istanbul.
We have been included in the BIST
Sustainability Index (BIST SI) since its
launch in 2014. As of 2023, we started
to be listed in the BIST Sustainability 25
Index, which was started to be calculat-
ed for the first time by Borsa Istanbul in
2022.
Our company’s ESG rating was eval-
uated as BBB by Morgan Stanley
Capital International (MSCI)
in June
2022. Furthermore, Turkcell is the only
Turkish telecommunications company
to be listed in the FTSE4Good Emerging
Markets Index which measures the ESG
performance, calculated by FTSE, an in-
dependent organization in partnership
with the London Stock Exchange and
Financial Times.
Transparent Investor
Communication – Investor Relations
We manage our investor relations ac-
tivities in parallel with the Corporate
Governance
Principles, and in accordance with the
principles of accessibility, rapid re-
sponse to stakeholders, transparency,
consistency, and disclosure in line with
the applicable legislation and regula-
tory rules to which we are subject to.
As part of our transparent and active
communication, we provide access to
documents such as audit reports, press
releases, and investor presentations,
which include quarterly financial and
operational performance on our web-
site in Turkish and English in order to
address all stakeholders. Since 2020,
we have been publishing an integrated
annual report with an increasing focus
on sustainability.
We explain our approach to
communication with our investors and
other stakeholders in the interactions with
our stakeholders section, and our com-
munication channels in the stakeholder
communication channels table.
Capital Market Instruments
Performance
Turkcell shares are
traded on the Borsa
Istanbul and the New
York Stock Exchange.
trad-
Turkcell shares commenced
the Borsa
ing simultaneously on
Istanbul (BIST) and the New York Stock
Exchange (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.8
Turkcell’s paid-in capital has a nomi-
nal value of TRY 2.2 billion.9 Turkcell, the
only Turkish company listed both on
Borsa Istanbul and the New York Stock
Exchange, is the 21st most valuable com-
pany among those traded on the BIST
with a market value of TRY 83.3 billion as
of December 31, 2022. As of the end of
2022, the number of Turkcell’s American
Depositary Shares were 78.7 million.
Turkcell, which has a free float ratio
of 54%, has a foreign ownership ra-
tio10 of 74% as of December 31, 2022. In
the same period, the share of foreign
investors in Borsa Istanbul was 29%.
The average daily trading volume of
Turkcell shares in 2022 was 36.9 million.
Turkcell has a bond with a nominal val-
ue of USD 500 million, a maturity of 10
years and a coupon rate of 5.75% is-
sued on October 15, 2015, and a bond
with a nominal value of USD 500 million
issued on April 11, 2018 with a 10-year
maturity and a coupon rate of 5.80%.
Share and Bond Buybacks
In the previous years, the Turkcell Board
of Directors authorized the Company
management to buy back Company
shares and bonds in an attempt to pro-
tect our investors against any percep-
tion of instability that may arise in the
short and medium term; subsequent
to the events on, and after July 15, 2016,
and/or due to the potentially negative
reflection of global macroeconomic vol-
atility on Turkey in accordance with the
announcements of the Capital Markets
Board dated July 21, 2016 and July 25,
2016. On February 8, 2023, the Board of
Directors determined the maximum fund
amount as TRY 1,250,000,000. In this con-
text, since 2016, 16.9 million shares (equiv-
alent to TRY 180.2 million) and bonds to-
taling a net of USD 37.2 million nominal
amount (equivalent to TRY 521.8 million)
have been purchased. In 2022, no share
buyback was performed, and bonds
with a nominal amount of USD 37.2 mil-
lion (equivalent to TRY 521.8 million) were
purchased.
Our corporate governance principles
are based on strong foundation
We adopt Corporate
Governance Principles.
The key business principles adopt-
ed by the Turkcell Investor Relations
Department include accessibility, swift
feedback to stakeholders, and inform-
ing them transparently, consistently
and on a timely manner. The Turkcell
Investor Relations team consists of
members with a
deep understanding of both company
itself and sector dynamics, and who
can convey
the strategy and focus areas of the
Company comprehensively. Turkcell
Investor Relations works to establish
long lasting relationships with inves-
tors. Information flow is provided to
all stakeholders primarily through the
Public Disclosure Platform, as well as
Turkcell Investor Relations website both
in Turkish and English.
Turkcell is the 21st
most valuable company among
those traded on the BIST with a market value of TRY
83.3 billion
8 Two ADRs represent five shares.
9 Includes 2,200 million shares, each with a nominal value of 1 TL.
10 Source: Matriks
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Share Information and Dividend Yield
Dividend Yield
As the Investor Relations, we aim to
increase
the market capitalizati-
on of Turkcell and achieve fair value.
Accordingly, we evaluate the possibi-
lities of creating strategic value and
distribution of dividends to our sha-
reholders in accordance with our di-
vidend policy within the framework of
financial discipline.
%
2
7
.
%
5
7
.
%
6
3
.
%
3
2
.
%
2
3
.
2018
2019
2020*
2021
2022**
* In 2020, dividend pay-out ratio to our shareholders was 25%, the highest rate permitted by the
regulation.
** Our Board of Directors has decided to distribute dividends at a rate of 25% based on a comprehensive
evaluation of macroeconomic and financial conditions, our investment plans, and our cash projections
within the framework of our Company’s articles of association and Dividend Distribution Policy.
TCELL (TRY)*
Lowest
Highest
Closing
TKC (USD)*
Lowest
Highest
Closing
2018
8.24
13.21
10.28
2018
3.21
8.73
4.75
2019
9.46
12.76
12.08
2019
3.92
5.94
5.08
2020
10.56
15.09
14.44
2020
3.85
5.50
4.83
2021
12.80
22.55
17.87
2021
3.26
5.38
3.47
2022
15.68
38.62
37.88
2022
2.32
4.79
4.79
*Stock prices were adjusted for dividend distributions. Source: Bloomberg
Stock Exchange Tickers
Share
ADR
Bond
Bond
Stock Exchange
Borsa İstanbul
NYSE
Ticker
TCELL
TKC
Euronext Dublin
ISIN: XS1298711729
Euronext Dublin
ISIN: XS1803215869
Share Performance
(Relative) (2022)
January 22
April 22
July 22
October 22
BIST - 100
Turkcell
Analyst
Recommendations
BUY
HOLD
SELL
55% 45% 0%
Credit Rating
Turkcell receives credit ratings
from S&P, Fitch and JCR
Eurasia Ratings. In addition,
our company’s subsidiaries are
rated by JCR Eurasia Ratings
within the scope of relevant
regulations. Precautions to
avoid conflicts of interests
with credit rating agencies,
from which the services are
procured, are laid down in
both service agreements
and code of conduct of the
company.
20 brokerage houses actively monitor and analyze Turkcell shares. As of the end of
2022, there are 11 analysts giving “buy” advice, 9 analysts giving “hold” advice and
no analysts giving “sell” advice.
Long-term
credit rating
Outlook
Rating date
Review date
S&P (FC&LC)
Fitch (FC)
B+
B
Stable
October 2022 October 2022
Negative
July 2022
November 2022
Fitch National
AAA (tur)
JCR-ER (FC)
BB
JCR-ER National AAA (Trk)
Stable
Stable
Stable
March 2021
November 2022
May 2022
May 2022
-
-
Investor Relations Contact Information
: +90 (212) 313 18 88
: +90 (216) 504 40 58
Phone
Fax
E-mail
Web
Address : Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi
No: 20 B Blok Küçükyalı Ofispark, 34854 - Maltepe / İSTANBUL
: https://www.turkcell.com.tr/tr/hakkimizda/yatirimci-iliskileri
: investor.relations@turkcell.com.tr
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Digital Finance Transformation
Increasing the digital maturity of our
strong finance function is among our top
priority targets. Turkcell finance function
has digitized its operation model in order
to provide an environment where busi-
ness processes are structured through
systems, manual
is mini-
mized, operational excellence and pro-
ductivity increase is achieved, internal
control points are automatically sup-
ported, and the working environment is
brought to the level of best practices.
intervention
The efforts that started after the eval-
uation of our current financial maturi-
ty level with an aim to restructure the
end-to-end finance operation model
from process to technology, and from
organization to data continue. In this
framework, while continuing the inte-
gration of new technological products
into our existing systems in 2022, Master
Data Management work was carried
out for the first time in Turkcell’s history,
and our data were harmonized in all
source systems.
Techfin’s shining stars: Paycell and
Financell
In 2022, we continued to improve the
products and services we offer to our
customers under Paycell. As Paycell,
which offers a wide range of products
and services to more than 51 thousand
merchants, we continue to develop our
competencies and include the Android
POS and Paycell Virtual POS prod-
uct for the virtual e-commerce world,
in addition to the products we offer
for commercial enterprises. Paycell
Android POS, the first Android POS
device to comply with applicable leg-
islation, and approved by the Turkish
Revenue Administration (GIB) in com-
pliance with the Tax Law (TL) 507, pro-
vides cost and efficiency advantages
to member merchants, while offering
standardized
inventory
tracking and e-invoice processes on
a single platform. Android POS, which
was developed based on the needs
of Paycell customers, works with dif-
ferent banks’ payment infrastructures,
offering installment advantages and
advantageous commissions under a
collection,
single device. This product also offers
standardized collection management
to enterprises which operates its own
invoice processes. With our Virtual
POS product, besides the cost sav-
ings in card transactions in Turkcell
e-commerce channels, a new reve-
nue-generating product was created
for Paycell.
As key account management, we con-
tinue to create an ever-expanding
ecosystem by managing strategic re-
lationships with institutions in line with
our vision of making Paycell a cus-
tomer and payment systems solution
center for the leading retail brands of
our country and the world. In this con-
text, we are among the top payment
providers in the market in which we
operate, ensuring deepening with an
average of 1.5 products per brand in
more than 50 brands. With our existing
and new business partnerships, we will
continue to increase our penetration in
both physical and online channels and
contribute to the growth of Paycell,
through our innovative products that
differ from classical financial products
in the market, such as E-money wal-
let, payment by reflecting to Turkcell
invoice, Paycell shopping limit, which
would create added value by facilitat-
ing the final payment experiences at
retail points that touch the daily lives
of individuals, and where our corpo-
rate customers can expand their sales
activities.
Paycell enables customers to make
purchases at member merchants with-
out the need of a bank card or payment
at the door, offering the opportunity to
reflect the fee to their Turkcell bills with
Pay Later feature. Paycell also provides
bill payment both through the appli-
cation and at Turkcell stores. With the
rising number of contracted merchants
each year, Paycell customers can shop
quickly and securely using QR codes.
Meanwhile, Paycell Card offers the
opportunity of using a card to those
under the age of 18, and therefore una-
ble to be a bank customer. At the same
time, Paycell Card users can manage
their balance and mobile payment lim-
its through a single account.
Paycell set a first by adding a brand-
new easy payment alternative. With
“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.
Paycell, Turkey’s most inclusive dig-
ital payment and financial services
platform, continues to increase finan-
cial inclusion and expand innovative
payment services while leading the
digital transformation of our country.
Combining technology and financial
services in line with the changing cus-
tomer needs, Paycell offers fast and
secure payment solutions, and aims to
enable its users to benefit from finan-
cial services easily with its vision of be-
coming a financial marketplace. With
the Paycell Shopping Limit, which was
launched in 2022 in line with this pur-
pose, Paycell offers its customers the
opportunity to pay in installments up
to 36 months with the shopping loan
provided by Financell, for the products
and services offered to its customers
at the contracted workplaces, and to
easily pay the loan installments with
a Turkcell invoice for Turkcell postpaid
line owners. Paycell, has cooperated
with banks for the cash needs of its
users, also offers the opportunity to
use bank loans from the application.
Paycell users can apply for the loan
offered by contracted banks within
the application, spend the loan they
use with their Paycell Cards wherever
they want, or withdraw them in cash.
Paycell enriches the application with
new services and solutions every day
in order to offer its users all the finan-
cial products they need on a single
platform, with the goal of a superior
customer experience. In this respect,
Paycell users can
instantly monitor
the current prices of the commodities
such as gold, silver and platinum while
trading them through the collabo-
rating company from the “Investment
Transactions” menu in the application.
The users can use the balance in their
Paycell Cards for the commodity trans-
actions, and they can invest even when
they have zero balance in their cards,
by reflecting the transaction on their
Paycell increased its revenues by 87.2% this year, while its EBITDA margin was
44.2%. Paycell’s non-group revenues rose by 84.4% during the same period. The
number of Paycell 3 month-active users has become 7.7 million.
Turkcell invoices. In the last quarter of
2022, stock trading was also added
to the Investment Transactions menu
in addition to the commodity trans-
actions. Paycell users can invest in
American stock exchanges in Turkish
Lira at any amount with a minimum
of TRY 10 through a simple and un-
interface. This service
derstandable
is also offered by a business partner
authorized for this transaction, similar
to that for other loan and commodity
transactions. Apart from the lending
brokerage and investment products,
Paycell also offers its customers var-
ious
insurance products, that meet
different needs varying from Travel
Health Insurance to Personal Accident
Insurance through the group company
Turkcell Sigorta Aracılık Hizmetleri A.Ş..
Besides, in order to carry out interna-
tional money transfer and payment
services activities in European Union
countries, the shares of Turkcell Europe
GmbH, a subsidiary of our Company
based in Germany, was transferred
to Turkcell Ödeme ve Elektronik Para
Hizmetleri A.Ş., which operates un-
der the Paycell brand, and the title of
the company was changed to Paycell
Europe GmbH.
In 2022, with Financell, one of the key
players in Turkey’s financing sector,
we continued to offer financing solu-
tions to retail and corporate custom-
ers for their technological product
and service purchases. We continue
increasing our effectiveness in corpo-
rate segment with the digital transfor-
mation loan that was initiated in 2020.
To date, 96 digital transformation fi-
nancing loans have been extended.
Meanwhile, credit risk infrastructure
and digital transformation projects
implemented in 2021 enabled us to
conduct credit assessments at a faster
pace and manage credit risk effec-
tively. Our cost of risk remained below
1%. With the completion of projects
in 2020, we had also started to pro-
vide financing offers to our corporate
segment and Superonline customers.
Accordingly, as Turkcell, we contin-
ue to provide financing solutions for
all products and services we sell by
growing. Additionally, we completed
the system infrastructure transforma-
tion, which is one of the most critical
investments in terms of digital trans-
formation, in 2021. With our reinforced
infrastructure, we began to operate in
non-Turkcell channels with new prod-
ucts such as digital travel loan and
car loan. We were already offerimg
innovative solutions for customers’ risk
management with fast and easy ac-
cess products through Turkcell Sigorta
Aracılık Hizmetleri A.Ş. In 2022, we ex-
panded the scope of our current insur-
ance business with innovative solutions
based on big data and digital pro-
cesses, and established Turkcell Dijital
Sigorta A.Ş., which will provide end-
to-end services. As of 2022 year-end
the process of the license application
we made to the Insurance and Private
Pension Regulation and Supervision
in October 2022
Agency
continues.
(SEDDK)
Paycell
2020
2021
2022
Number of Paycell 3 month-active users (million) 4.7
Total transaction volume (TRY billion)
Revenue (TRY million)
EBITDA (TRY million)
EBITDA margin (%)
9.1
285
147
52%
6.6
13.7
468
222
47%
7.7
37.1
877
388
44%
Financell
2020
2021
2022
Number of customer acquisitions of
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)
129
2.5
2.0
1.4
1.9
567
367
65%
241
116
2.7
1.8
1.3
2.1
615
420
68%
334
123
4.2
1.9
1.3
3.4
980
523
53%
319
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APPENDICES
share as well as our pricing adjust-
ments to reflect inflationary pressures,
thanks to our brand perception, su-
perior infrastructure, unique customer
experience and analytical capabili-
ties. In addition, our competitors fol-
lowed the price adjustments we made
as the leader, therefore we contin-
ued to rationalize the market. On the
fixed segment; with our ongoing fib-
er focus, we continued to grow with
the increase in the rate of upsell to
high speeds and the number of IPTV
customers.
increasing de-
While meeting the
mands of our customers with inno-
vative offers and options such as
Esneyen (Flexible) and Yapboz (Puzzle)
Packages, we continued to offer the
right solutions to our customers by
using our analytical competencies.
We strengthened the usage habits of
our customers, who head towards our
digital channels, with smart offers and
win & win setups.
In addition to our strategy of always
being there for our customers, our inno-
vative and comprehensive tariffs and
additional benefits; as a result of our
brand perception, superior infrastruc-
ture and unique customer experience,
we achieved 2.3 million total net sub-
scriber additions, 1.9 million of which
were mobile. Our mobile ARPU11 grew
by 40.3% year-on-year and continued
to accelerate every quarter, driven by
price increases, increased data usage,
our upsell efforts, and the increase in
the postpaid customer base.
In 2021, we had accelerated our fiber
infrastructure investments. By main-
taining this focus in 2022, we have
added 887 thousand homepasses
and continued to contribute to our
country’s digital transformation jour-
ney. With the contribution of our ex-
panding fiber infrastructure, we had
234 thousand net fiber subscriber ad-
ditions in 2022. Due to the fact that the
price adjustments in the fixed market
were more limited compared to the
mobile market and the contract struc-
ture; our fixed residential fiber ARPU
rose by 26.7% in 2022, driven by our
renewed value propositions, upsell ef-
forts higher IPTV subscriber rate and
price adjsutments. Thus, we continued
to grow in a balanced way in both
customer addition and ARPU growth.
Big Data
In today’s telecommunications world,
a large amount of data production
takes place 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 telecom-
munications industry in terms of tech-
nical infrastructure requirements, big
data also offers to turn this challenge
into an opportunity with big data an-
alytics applications. This opportunity
needs to be used by the entire com-
pany, not just the technical staff. It
also becomes more important for all
organizations to enhance their deci-
sion mechanisms through data-driven
analysis. Since this situation requires
people even without software experi-
ence to work with data, it also drives
us towards a structure where any-
body can perform data analysis and
analytics with low-code platforms.
As Turkcell, we provide
our corporate customers
with big data analytics
services; thus we enable
them to differentiate in
their own services.
We are aware of the need to inter-
pret the right customer data in order
to reach the right target audience
and make the right investment, and
we continue growing our business by
reaching the right customerwith big
data. In an era of transparent com-
petition, it is critical to track custom-
er satisfaction instantly and act on it.
Accordingly, we track experiences of
our customers closely and try to drive
maximum satisfaction.
Digital Transformation and Inclusion
By simplifying and
accelerating access
to information, mobile
communication
technologies provide
a basis for digital
transformation process
for both individuals and
organizations.
The number of people with access to
internet through mobile applications
has reached 4 billion, proving that the
telecom sector is one of the most ef-
fective channels for digital services
to reach people. Facilitating people’s
access to information and growing in
importance globally, the telecommu-
nication industry stands out as one of
the most critical industries to eliminate
inequalities and enable equal access
to information, services and financial
services. In this context, the telecom-
munication industry can bring social
equality through digital solutions that
cover a broad range of social groups
and accelerate global development
with smart applications.
As Turkcell, since our establishment,
we have placed technology’s power
to provide equal opportunities at the
center of all our activities, having im-
plemented projects that aim to ensure
equal opportunities in information ac-
cess for all. Using our strong analytical
competencies, we develop high quality
innovative products, services and pro-
jects, 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 19.9 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 every-
one via our Superbox product offering
fiber speed internet without the need
of a cable connection. With the Whiz
Kids project, we bring special, talented
students together with technology and
science.
Trends
Our Telecom Business
2022 was a year with crisis and chal-
lenges that have affected the whole
world. Particularly, the Russia-Ukraine
War, which started in February, had
a negative impact on factors such as
inflation and supply chain disruptions
globally. Prices increased throughout
the year, particularly in areas such as
energy, commodities and food. Those
challenges particularly reflected on
local price levels. Moreover, with the
increased mobility after the pandem-
ic, the number of foreign tourists visit-
ing our country has reached the levels
before the pandemic.
Nevertheless, the digitalization trend
increasing globally, has contributed
to the increase of innovations such as
5G, industry 5.0, artificial intelligence,
Internet of things and eSIM, in line with
the different conditions brought by
the changing life conditions after the
COVID-19 pandemic. Regarding 5G,
which is an important factor supporting
digitalization, it has been announced
that the 5G tender in our country will be
held in 2023. In this direction, we contin-
ued our preparations for the transition
to 5G in 2022 as well.
line with
In
these developments,
Turkcell maintained its strong oper-
ational structure by taking the nec-
essary actions in an agile and rapid
manner in our business. In our mobile
business; we realized strong growth
driven by our strong subscriber net
additions, increased data usage, up-
sell efforts, higher postpaid subscriber
11Excluding M2M
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required for the mobility ecosystem
to be created around the electric car
which it defines as a “smart device”.
In this context, in order to integrate
innovative payment systems and di-
gital financial solutions in the mobility
ecosystem, a strategic cooperation
agreement was signed with Paycell in
2022. On the other hand, the studies to
include our Fizy platform in the Togg
ecosystem continue to be planned.
We keep the technological infrastru-
cture available both as software and
hardware for organizations which will
require it in the future in connection
with mobility solutions, with our local
production approach and data cen-
ters. We aim to create synergies that
will add value to Turkcell by contribu-
ting to the development of this ecosys-
tem, which we will be involved in with
new services in the future.
Developed by “Turkey’s
Automobile Joint
Venture Group”,
where Turkcell has
23% shareholding,
production process
of Togg has started
flowing the completion
of construction process
of its factory in Bursa.
It is planned to include
Paycell and fizy platform
in Togg ecosystem as a
first step.
In addition to a number of natural
disasters taking place, changes in cli-
mate policies, technology, consumer
preferences and financial market ex-
pectations have recently been cre-
ating huge fluctuations in commod-
ity prices and causing a rise in costs.
Accordingly, spending on research
and development in new and alterna-
tive technologies are also increasing.
In order for the business world and
companies to manage these risks ef-
fectively, they need to focus on imple-
menting circular economy, renewable
energy and pro-recycling strategies
which will achieve net zero emissions
rapidly. As per the goals of the Paris
Agreement, 73 countries, including the
EU members, committed to become
carbon-neutral by 2050, and the
number of committing countries is in-
creasing. Turkey also signed the Paris
Agreement in 2021, revealed its 2053
goal and joined other countries that
declared a commitment.
The risks induced by climate change
have a direct effect on Turkcell’s busi-
ness operations. As Turkcell, by con-
ducting field risk analyses during the
installation of base stations, 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 lo-
cations with cold climates, foreseeing
a rise in average temperatures in the
long term.
In our energy-focused activities,
to environmen-
we are directed
tally friendly, green energy sourc-
es within the scope of Sustainable
Development Goals and we invest into
them. in accordance with the Turkcell
Sustainability Strategy we announced
in 2020, we work to achieve our goal
of going carbon-neutral by 2050, by
becoming a company that consumes
and generates
renewable
energy.
100%
Accordingly, we
acquired Izmir Karadağ
Wind Power Plant in
2021, which reinforces
our vision of being
a company not only
consuming renewable
energy but also
generating it.
My Dream Companion
With our My Dream Companion pro-
ject, we work to provide the visually
impaired with equal access to informa-
tion and independent participation in
the social life.
My Dream Companion Service has
been providing visually impaired peo-
ple with access to up-to-date news,
columns, audiobooks, and education
since 2012; as well as indoor navigation
technology at areas such as Turkcell
stores, shopping malls, universities, and
instant audio description technolo-
gy for movies broadcasted in movie
theaters and digital platforms. It is a
free service for subscribers of all oper-
ators via iOS and Android mobile ap-
plication and the 8020 IVR line.
In the project, with which 103 Turkcell
stores, at least 1 in each city of Turkey
and more than 1 in greater cities, were
made accessible in May 2022, the vis-
ually impaired people can easily find
what they are searching for in the store
with My Dream Companion
indoor
navigation technology.
By expanding the scope of our au-
dio description technology, where we
have delivered the audio descriptions
of 65 movies to the visually impaired
throughout 2022, we have developed
our live description technology to of-
fer descriptions for performances such
as theaters and musicals. With this
technology, in 2022 we supported the
equal access of the visually impaired
to art by describing The Miser, which
was staged at Turkcell Vadi, and When
Nobody Was in the City and Peter Pan
and the Neverland musicals at the Zorlu
PSM Turkcell Platinum Stage.
Climate Change
5 out of 10 risks that are most poten-
tially damaging in the next 10 years
according to the World Economic
Forum (WEF) 2022 Global Risk Report
include environmental and climate
change-related risks. These are de-
fined as failure of climate change ac-
tions, extreme weather, biodiversity
loss, environmental damage caused
by human, and natural resource crises.
Mobility
The concept of mobility is developing
on a daily basis with key trends such
as autonomous driving technologies,
connectivity, electrification and carpo-
oling. The idea has gained momentum
and become widespread that the
developments in e-mobility field will
affect different aspects ranging from
the cities we live to the roads we use
as well as the companies operating in
this area. It is foreseen that the concept
of mobility will trigger a disruption not
only in automotive and transportation
industry but also in technology.
With the rapid development of mobi-
lity and technology trends, our country
has come to the edge of a new era.
In this context, the transportation in-
dustry works to devise the flexible and
innovative solutions needed by focu-
sing on the production of next gene-
ration technologies. The Togg project,
Turkey’s first domestic car designed as
an electric vehicle, marks an important
and powerful initiative in the mobility
sector. Turkey’s ability to leverage its
own resources in electric car compe-
tition as part of its mobility efforts will
provide a great advantage, contribu-
ting to the development of the country
on the electric car market.
Our mobility solutions, offered as
part of digital business services wit-
hin Turkcell, provide the most advan-
ced vehicle and fleet technologies for
the safety of vehicles and employees.
Developed by “Turkey’s Automobile
Joint Venture Group”, where Turkcell
has 23% shareholding, the mass pro-
duction of Togg’s first innately ele-
ctric, connected smart device, the
C-segment SUV has started in Togg’s
Gemlik Technology Campus as of
October 29, 2022. Togg continues to
finalize cooperation with entities as
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INCLUSIVE POSITIVE IMPRINT
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APPENDICES
In order to unlock the potential of elec-
tronic communication
technologies
and develop innovative services meet-
ing customer needs, it is fundamental
that sectoral regulations support the
development of the digital economy,
and ensure fair competition and invest-
ment environment.
We position our comprehensive legal
services requiring national and inter-
national compliance at the center of
our operations and assess the compli-
ance of all activities carried out across
Turkcell. As Turkcell, we create a perma-
nent footprint in the global market and
continue our expansion by managing
disputes effectively and taking preven-
tive legal actions, while building busi-
ness strategies on a solid legal founda-
tion. The digitalization of our processes
helps us add value to our leadership
journey and the reputation of Turkcell
and our Group companies.
We take public institutions and regula-
tory authorities as an essential part of
our ecosystem, and, with a focus on the
continuity of the sustainable ecosystem
and consumer welfare, contribute to all
legislative efforts relating to our industry
in a direct or indirect way as an active
stakeholder of each and every stage.
We are aware that regulatory develop-
ments have the potential to directly im-
pact our business model and strategies.
We conduct our activities in accord-
ance with our goal of creating value for
our country and our industry by working
in cooperation with regulatory authori-
ties and relevant stakeholders.
Furthermore, we work in both national
and international arenas in connection
with the legal dimension of evolving
technologies such as AI, blockchain,
space
technologies, cybersecurity,
smart cities, metaverse, creating value
in this area for both our company and
country.
Regulatory Developments and
Sector Regulations
As a factor of freedom of communica-
tion, which is defined as a constitution-
al right, and as one of the most critical
sectors in our country, the electronic
communications industry activities are
closely monitored and controlled by
laws and regulations. Ensuring effective
and competitive market dynamics and
helping to configure the digital experi-
ence environment that the customers
desire requires the active participation
of sector players, NGOs and regulatory
authorities.
Furthermore, we work
in both national and
international arenas
in connection with
the legal dimension of
evolving technologies
such as AI, blockchain,
space technologies,
cybersecurity, smart
cities, metaverse,
creating value in this
area for both our
company and country.
The Development of Fintech
Applications
Expansion of digitalization, crypto-
currency and blockchain use, as well
as globally increasing penetration of
smartphones provide a suitable envi-
ronment for the development of finan-
cila technologies (fintech). In 2022, fin-
tech investments reached USD 79 billion.
Smartphones, which have become the
primary means to internet access for
people, play a facilitating role for many
technologies and services, including
fintech. Fintech and mobile services
have the potential to provide access to
financial resources and services for the
unbanked population.
In the Turkcell ecosystem, fintech is re-
ferred to as techfin in terms of our fo-
cus on technology. Techfin activities
are carried out through four subsidi-
aries; Paycell, Financell, Turkcell Dijital
Sigorta and Turkcell Sigorta Aracılık
Hizmetleri. Leveraging our experience
of over a quarter century, our superior
digital services and advanced ana-
lytical capabilities, we closely follow
in the techfin field
the
and develop pioneering products and
solutions.
innovations
Paycell, being Turkcell’s new gener-
ation payment platform, is full of op-
individual and
portunities for both
corporate customers
in the mobile
payment field. Paycell application has
been downloaded over 19.9 million
times, while services such as money
transfers, cash and shopping loan bro-
kerage, transportation card payment,
commodity trading on financial mar-
ketplace and payments can be readily
realized through the Paycell applica-
tion. We provide payment facilitation
services to over 51 thousand contract-
ed merchants with solutions including
Paycell Android POS, QR, Virtual POS,
Vitrin (Shopwindow) and Pay by Link.
In 2022, we added a new service to our
solutions with Paycell Vitrin and Pay by
Link. Paycell Vitrin and Pay by Link, were
created as an e-commerce and pay-
ment solution where anyone who sells
products, regardless of being an indi-
vidual or institution, can register for free
on the same day, create a special link for
their products and share them with their
customers, and receive payments with
debit and credit cards. Thus, we offer
our member merchants the experience
of opening websites, making agree-
ments with banks, starting e-commerce
and receiving payments via a remote
link without the need for a technical in-
tegration and additional cost.
Financell, our financing service that fa-
cilitates individual and corporate cus-
tomers’ access to technological prod-
ucts, has extended loans in the amount
of TRY 28,5 billion with a number of ap-
proximately 15 million since its founda-
tion. Turkcell Sigorta Aracılık Hizmetleri
A.Ş., our approach in the insurance
arena, provides customers convenient,
simple and fast insurance services.
Sustainable Financing Activities
Unlike conventional financing, sustaina-
ble financing refers to financing facilities
where sources of funds are used based
on various environmental, social or gov-
ernance criteria. The current stage of
climate crisis pushed investors to put
more emphasis on non-financial risk
factors, resulting in increased amount of
reporting on these factors. Accordingly,
companies have shifted to adapt their
business strategies and corporate fi-
nancing and
investment activities to
the Sustainable Development Goals
promoted by the United Nations Global
Compact.
With increasing risks related to climate
crisis, it is inevitable that sustainable
debt instruments become widespread
and unavoidable for banks to incorpo-
rate more compelling criteria for the sus-
tainability of the projects they finance.
The ESG investments are expected to
increase on a global scale in the future.
Sustainable financing resources are
critical for the investments in the scope
of long-term plans with the “European
Green Deal” which promotes these in-
vestments, and for the financing of pro-
jects to be realized.
Focusing on sustainable financing op-
tions, we diversify our financing instru-
ments, promote our sustainability efforts,
and keep looking for access to financing
on more advantageous conditions. In
this context, we are working towards our
target of increasing our “Sustainability-
Indexed Loan” and “Green Loan” trans-
actions that we used in 2019 and 2020,
respectively. We increased the amount
of 3-year term Sustainability-Indexed
loan from EUR 50 million to EUR 70 million
which Turkcell İletişim borrowed from
BNP Paribas in 2019, and extended its
term to December 2026. Apart from bank
loans, capital markets continue to be our
focus as a point to access and diversify
financing. We continue to monitor the
market in order to meet our increased
investments in the new period, espe-
cially with green issuances in domestic
markets. At the same time, we continue
our efforts as one of the founding mem-
bers of the UNGC CFO Task Force, which
aims to create a market for investments
in SDGs.
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Cybersecurity
In line with the increase in data pro-
duced in the digital age and the in-
creasing demand for data centers, we
are working with the vision of keeping
Turkey’s data in Turkey, in order to ensure
the security of data and the confidenti-
ality of personal, critical and sensitive
data as Turkey’s largest data center
operator. The national efforts and reg-
ulatory factors carried out to make our
country a center for data hosting and
transfer, undoubtedly contribute to the
development of our cyber security ca-
pabilities by increasing the demand
and investments in data centers and
cloud services in our country.
Turkcell Legal and Regulatory Function
aims to monitor and prevent any pos-
sibility of non-compliance by closely
following developing and changing
regulations with a pro-active man-
agement approach. Within this scope,
internal briefings are provided with
respect to changes in legislation and
new regulations, the related process-
es are monitored by senior manage-
ment through Personal Data Steering
Committee, Compliance Committee,
Sub-compliance Committee
and
Information
Systems Compliance
Committee and relevant compliance
activities are carried out in this respect,
various measures are taken via digi-
talized tools such as internal audit and
Acting meticulously
within the framework
of the Personal Data
Protection Law, Turkcell
continues to work in
artificial intelligence
services without
deviating from the
principles it has declared.
automated control systems that are
working continuously, to prevent the
occurrence of any breach and impo-
sition of any administrative sanctions.
Rapid spread of digital transformation
in business world and increase in tech-
nology use by individuals and enter-
prises bring along some cybersecurity
risks for organizations. Rise in cyberse-
curity threats is a call to remember the
importance of information security for
companies and organizations.
We identify threats which emerge in
the cyber environment, develop meas-
ures to mitigate and eliminate the ef-
fects of possible attacks and incidents,
and collaborate at the national and
international scale to share those
measures with identified bodies. We
design secure system infrastructures
by improving our processes with new
experiences, raising awareness of in-
formation security, cultivating compe-
tent human resources, establishing lay-
ered security controls and using next
generation technologies. Through our
Turkcell Security Operation Center, we
monitor current threats and cyberat-
tacks 24/7 and take necessary actions
after conducting end-to-end security
controls and tests. We offer our digital
operator competence and integrated
cybersecurity and information secu-
rity experience to our corporate and
individual customers.
In this scope,
we continue to meet the needs of our
customers including companies, insti-
tutions, organizations and individuals
in the fields of cybersecurity, data pro-
tection, and integrated infrastructure.
Artificial Intelligence
One of the top items on the agenda
of decision-making mechanisms of
institutions and organizations, the AI
technology
is reshaping company
strategies as a technology tackling
complex tasks and covering applica-
tions and software. Many companies
make significant investments in data
science teams to benefit from the op-
portunities and values offered by AI.
The fact that institutions which incor-
porate machine learning and cogni-
tive interactions into their traditional
business processes and application
software can improve their user expe-
rience substantially and increase their
productivity demonstrates the value
of AI.
As Turkcell, we work in compliance
with our company’s policies, proce-
dures and internal controls created on
the basis of international standards
and the regulations which we are sub-
ject to. Additionally, we comply with
our AI principles consisting of “focus
on people and environment, transpar-
ency, professional responsibility, data
privacy, security, justice, and sharing
and cooperation for a better future”
in January
clause we announced
2020. We give priority to compliance
with these seven principles in AI ef-
forts, which is expected to be the fo-
cus of technological developments.
With this pioneering step, we joined
other global players who work to de-
vise solutions to ethical problems that
could arise from the use of AI. In our
country, we played a leading role at a
turning point for artificial intelligence,
which will be the most popular tech-
nological concept over the next dec-
ade and impact the global leadership
claim of countries. Our AI principles
guarantee that AI is for people and
people-oriented and this technology
will be used responsibly without dam-
age to human value.
In our offers and services provided
through our AI technology, we inter-
pret the big data and create offers
through our analytic capabilities.
Using machine learning techniques in
areas of traffic density, capacity man-
agement and anomaly detection in
our network, we contribute to the ef-
ficiency of our infrastructure. We offer
our artificial intelligence solutions to
institutions and organizations through
our Digital Business Services company.
Our strategic goals are frequently
revised within the knowledge of the
top management and in accordance
with the business plans as AI activities
are directly connected to the technol-
ogy function as we work in a rapidly
changing technological ecosystem,
and regulations regarding AI could
emerge very quickly with every pass-
ing day in every industry from health-
care to security, finance to education.
Our Legal and Regulatory Team has
long been collaborating with global
organizations to eliminate concerns
over artificial intelligence, and also
to
impact. As
its positive
Turkcell, we play an active role at in-
ternational platforms where respon-
sible and ethical use and future of AI
are discussed.
increase
In this context, we contribute to the
following activities:
Fiber Infrastructure
Children’s
activities,
rights
and AI
Activities regarding responsible
use of face recognition systems,
Standardization activities car-
ried out across the IEEE and
aiming to eliminate potential
ethical problems and concerns
to arise from AI,
Activities as part of the “Planet
Positive 2030” initiative across
the IEEE,
Activities carried out across the
ITU regarding responsible and
ethical use of AI technology in
smart sustainable cities and AI
and Healthcare activities.
Acting responsibly as per the Law
on the Protection of Personal Data,
Turkcell carries out activities without
violating the principles it announced
and by making AI available for peo-
ple to unleash and develop human
potential.
The COVID-19 pandemic and the af-
termath underlined the importance of
high-quality and high-speed broad-
band connection. Demand for a strong
Internet service has greatly increased
due to various factors including online
education and remote working be-
coming widespread and permanent
which led to a change in user behav-
ior, and an increase in the number of
devices concurrently connected to the
internet at homes. In our country, limited
access to fiber-to-the-home (FTTH) or
fiber-to-the building (FTTB), which may
best meet these needs, results in unmet
requirements of users and hinders the
digital transformation of our country.
The growing need for broadband con-
nection and low penetration of fiber in-
frastructure in our country increase the
importance of investments in this area.
As Turkcell, we continue to accelerate
our fiber infrastructure investments in
2022. While we had 653 thousand new
homepasses in 2021, we brought the
fiber quality of Turkcell to 887 thousand
more homes in 2022. With the contri-
bution of these investments, we had a
record net of 234 thousand fiber sub-
scribers in 2022. We believe that our fib-
er investments will greatly contribute to
the process of transition to 5G.
In 2022, we
have enabled
887 thousand
households to
reach Turkcell
fiber quality.
887
thousand
104 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 105
Inclusive
With the Inclusive Positive Imprint strategy, we aim to achieve three
main corporate objectives with a wide area of impact: Providing our
employees a safe, inclusive, fair and development-oriented work
environment, supporting digital and social inclusiveness for large
masses, ensuring digital security and wellbeing. Thus, in our workplace,
our products and services, and our social impact area, we aim for equal
opportunities, the inclusion of disadvantaged segments of society, and
“leaving no one behind” in social, economic and cultural development.
Human Capital
Manufactured Capital
Intellectual Capital
Social Capital
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Capitals
Goals
Actions
Impacts
Values
Inclusive
Value Proposal
e
c
r
u
o
s
e
R
d
n
a
l
a
t
i
p
a
C
n
o
i
t
a
c
o
l
l
A
Decent
Workplace
Equality
of Digital
and Social
Opportunity
Digital
Security and
Wellbeing
Inclusive
Workplace
Occupational
Health and
Safety
Development
Oriented
Human
Resources
Inclusivity
in Access
to Digital
Technologies
Facilitating
Access of Youth
and Women
to Information
Technologies and
Business Life
Cybersecurity
Services
Management
of Cyber
Security and
Information
Privacy Risks
Improving employer brand and employee
satisfaction
Maintaining work peace and increasing work
performance
Strengthening the reliability and continuity of
business processes
Increase in cost efficiency
Maintaining legal compliance
Reducing business continuity risks
Increasing talent diversity
Increase in reputation and brand value
Ensuring performance-oriented development
Increase in ınvestment attracting potential and
equity value performance
Expanding customer base by increasing
access to digital technology for various
industries and social groups
Contribution to economic development by
expanding potential human talent pool
Supporting to manage cybersecurity risks of
customers
Ensuring the security and continuity of turkcell’s
digital ecosystem
Ensuring the security of customer data
Maintaining legal compliance
Increase in customer satisfaction
Deeper engagement with customers through
service diversity
Expanding the customer base
Increase in reputation and brand value
Revenue increase
Increase in reputation and brand value
Reducing business continuity risks
Increase in customer satisfaction
Revenue increase
Increase in ınvestment attracting potential and
equity value performance
Integrated Value Creation
(Financial Capital, Natural Capital, Manufactured Capital, Social Capital, Human Capital, Intellectual Capital)
The Inclusive Positive Imprint strategy contributes directly to human, social and financial capitals and indirectly to manu-
factured and intellectual capitals in accordance with the integrated value creation model.
108 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 109
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Capitals
Goals
Actions
Impacts
Values
Inclusive
Value Proposal
e
c
r
u
o
s
e
R
d
n
a
l
a
t
i
p
a
C
n
o
i
t
a
c
o
l
l
A
Continuous
Improvement
of Intellectual
Capital
R&D and
Innovation
Brand Value
Digital
Service
Portfolio
Integrated digital operator
Import service substitution with domestic
technologies
Revenue increase
Variety of value-added services
Increase in reputation and brand value
Increase in intellectual property assets
Increase in investment attracting potential and
equity value performance
Strong brand value
Internalizing
Responsible
Value Chain
Management
Principles
Responsible
Procurement
Reducing procurement risks
Efficiency in purchasing
Reduction in risk costs
Integrated Value Creation
(Financial Capital, Natural Capital, Manufactured Capital, Social Capital, Human Capital, Intellectual Capital)
The Inclusive Positive Imprint strategy contributes directly to human, social and financial capitals and indirectly to manu-
factured and intellectual capitals in accordance with the integrated value creation model.
110 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 111
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
benefits policies, and integrate execu-
tion of performance and career man-
agement by mobilizing the power of
digitalization and our data-driven ap-
proach. Hence, we break new grounds
in the business world by putting all our
processes at the center of our analyti-
cal solutions.
We listen to our employees and ensure
that employee experience is managed
in the best possible way in line with
expectations, needs and international
developments. We carry out HR plan-
ning, define roles and responsibilities,
and determine the company goals and
risks with the cooperation of Turkcell
teams.
Turkcell has been experiencing flexible
working since 2016. Over the years, the
journey of shifting from being employ-
ee-oriented to human-oriented, made
it necessary to put the employee on
the agenda of human resources with
the well-being it created in the entire
life of employees. This has allowed
employees to balance their work and
personal life through the flexibility cre-
ated in their working hours and place.
With the flexibility of time and place in
work life, the welfare of employees has
increased. Turkcell has increased the
welfare of Turkcell employees through
three programs launched in 2016. The
first is the “mobile working” program,
which allows employees to work 4
days a week in the office and 1 day
from home. The second is the “ofista-
syon” program, which allows employ-
ees to work from different Turkcell lo-
cations. The third is the “Plan Your Day”
program, which allows employees to
extend their workday start until 10:00
AM and the end until 07:00 PM.
According to the Flexible Working
Manifesto defining principles of flex-
ible working, Turkcell employees can
work from anywhere, are always ac-
cessible, can use T.Life-Digital Office
app if they wish to use company loca-
tions that offer uninterrupted services,
maintain a work and life balance, sup-
port and enhance their work environ-
ment with “Flexible Working Support”,
and benefit from face-to-face com-
munication by getting together during
healthy days. Within the scope of this
working manifesto, Turkcell employees
whose job requirements are suitable
for location-independent working can
work either remotely or in the Turkcell
office of their choice.
Human Capital
Outputs
Ratio of female
managers
24.9%
Ratio of female
employees
34.6%
Occupational
accident
frequency rate
1.18
Rate of female
employees returning
to work after their
maternity leave
96%
Performance Indicator
Increasing the ratio of female
employees
Increasing the number of female
members on the Board of Directors
(including independent members)
Increasing the ratio of female
managers
Increasing the rate of female emp-
loyees returning to work after their
maternity leave
Increasing the female employee’s
retention rates following maternity
leave
Reducing the occupational accident
frequency rates (Female)
Reducing the occupational accident
frequency rates (Male)
Reducing the occupational accident
frequency rates (Total)
Short-term
goal
Mid-term
goal
-
-
Long-term goal
40%
(by 2030)
Performance
in 2021
Performance
in 2022
Current State
by Goal
34%
34.6%
34%
34.6%
2
-
-
28%
(by 2030)
98%
98%
98%
88%
90%
90%
2
2
2
1
1
1
0
0
0
1
23%
97%
97%
0.48
0.47
0.48
1
24.9%
96%
96%
0.87
0.85
1.18
Positive development
Negative development
Ongoing
Decent Workplace
Our employees lay the
foundation of the success
we have achieved in
Turkcell’s activities carried
out with a focus on value
creation.
We consider it an invariable part of
our human-oriented employee experi-
ence approach to ensure that our em-
ployees, whom we see as the brand
ambassadors of our Company, feel
valued, happy and safe, and benefit
from equal development opportuni-
ties, by providing them an exemplary
work life in all employment processes
starting from their recruitment.
Human Capital Management
We implement our human resources
processes, which we have implement-
ed in line with our human resources
policies and strategies, in accordance
with the legal requirements. We com-
municate all operational changes
that may arise in these processes and
practices and that could significantly
impact our employees within the le-
gal notice period through our internal
communication channels.
In accordance with Turkcell Human
Rights Policy, Turkcell oppose discrim-
ination based on gender, age, belief,
ethnicity, nationality, marital status,
health status, and physical ability in all
of our business activities. We continu-
ously improve ourselves by implement-
ing our human resources practices
based on inclusion and diversity, and
extending equal opportunities to all
individuals in a manner that respects
human rights. We adapt to the require-
ments of the rapidly evolving digital
age with an agile manner in order to
better respond to customer needs, and
we improve our skills with rich training
programs.
From the moment of entry to exit, we
design all our human resources pro-
cesses end-to-end with a focus on
the employee experience. We design
and manage our compensation and
112 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A1.2; SPK A2.2; SPK A2.3; SPK A3.1; SPK C1.5
SPK A2.2; SPK A3.1; SPK C1.5
GRI 2.20
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 113
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Flexible Working Model
The expectations of employees to-
wards working models that enable a
work-life balance, have recently been
increasing. Following the first Covid-19
case in Turkey, Turkcell prioritized the
human experience by implementing a
rigorous health sensitivity, transition-
ing to fully remote work. With our pre-
vious experience and robust techno-
logical infrastructure, we were able to
easily adapt without sacrificing work
efficiency.
As the pioneer of mobile work
in
Turkey, we have designed a new
working model in collaboration with
our employees, taking into consider-
ation the changing needs brought by
the new normal and the future of work.
With the launch of our “Flexible Work
Model” under the motto “ Wherever
You Are, Turkcell is There,” we have
eliminated boundaries. Since March
2021, our model enables all employees
to work independently from their loca-
tion, whether at the office or remotely,
based on their work requirements.
In the remote work process, we pri-
oritize accessibility. Our employees
are able to fulfill their internet needs
at home with employee campaigns
provided by Turkcell and benefit from
additional opportunities through ad-
ditional campaigns.
Turkcell engineers developed
the
T.Life - Digital Office application as a
digital hub for all business solutions
that are required by our employees
within the scope of the flexible work
model. Thanks to the Digital Office
module, Turkcell employees can re-
serve working spaces, meeting rooms
and parking spaces for their vehi-
cles at any Turkcell office of their
choice. Moreover, they can also make
appointments
for company’s hair
dresser, fitness center, doctor, peda-
gogue, dietitian or psychologist.
With the Flexible Working Model, the
employees can flex the start of the
workday by 10:00 AM and the end of
the work day by 07:00 PM. Thanks to
the “Hours without Meetings” prac-
tice, our employees can focus on their
works which require individual atten-
tion. Additionally, in order to remind
the necessity of being offline, we
make improvements such as sending
an automatic warning message in or-
der not to hold a meeting, not to send
an e-mail outside the working hours
and to increase meeting productivity.
Within the scope of “Flexible Working
Support”, employees are also offered
a financial aid that is renewed each
year so that they can improve their re-
mote working environments.
Diversity, Inclusion, and Equal
Opportunity
By positioning the protection of human
rights and respect for human rights as
one of our most fundamental duties,
we implement our human resources
practices that ensure equal opportuni-
ties for all individuals, support inclusion
and diversity, and improve ourselves
each day in this sense. In line with the
Human Rights Policy that we have is-
sued, we carry out our activities to
prevent discrimination, inequality, hu-
man rights violations, forced labor and
child labor, and continue our efforts for
adoption of these values across the
supply chain. Furthermore, we imple-
ment practices and measures aimed
at supporting gender equality in busi-
ness life in line with the UN Women’s
Empowerment Principles - WEPs, of
which we are a signatory, and aiming
to be the most admired employer for
women, thanks to Turkcell’s gender
equality approach.
In line with the inclusive Positive Imprint strategy, efforts
to increase the number of female managers and
employees and the outcomes achieved are evaluated
in terms of financial, operational, legal compliance and
environmental dimensions, as well as being reviewed
within the scope of internal audit activities.
In 2022, no discriminaton case has
been filed by our employees or any
third parties against Turkcell İletişim
Hizmetleri A.Ş. in all our business op-
erations. There are no lawsuits filed
against Turkcell about discrimination
based on language, religion, race, be-
lief, ethnic origin, political or ideolog-
ical point of view, marital status, age,
sexual orientation or gender.
In accordance with our Human Rights
Policy, which was published at the
beginning of 2021, we are committed
to maintaining an attitude based on
fundamental rights and freedoms in
our relationships with our employees,
customers, business partners, and
all stakeholders; following the Policy
rules strictly in order to comply with
applicable national and international
regulations regarding work life; and
Employee Demographics in 2022
Employee Distribution
by Gender
Employee Distribution by
Education Level
ensuring total commitment of entire
organization to these principles.
We respect the fundamental rights of
our employees defined in our policy;
and protect mutual rights regarding
employee-employer relations through
our human resources practices. In or-
der to prevent the incidence of child
labor and forced labor, we adopt the
ILO (International Labor Organization)
standards across our entire value
chain, particularly for our suppliers.
Turkcell aims to increase the rate of
female employees to 40% by 2030. All
Turkcell and Turkcell Group company
employees, primarily senior execu-
tives and managers, are responsible
for achieving the goals for ensuring
gender equality and female-male em-
ployee balance. The ratio of female
employees and female managers is
reported to the senior management
on a monthly basis. Starting from the
level of Executive Vice President, the
performance cards of the employees
responsible for the process include
the target of female employee ratio
and female manager ratio within the
scope of gender equality.
We manage our remuneration poli-
cy regarding all levels of employment
based on knowledge, skills, and crit-
ical experience
in the most reliable
manner. We keep remuneration pol-
icies regarding Board Members and
Senior Executives transparent to all
Male Employees
Female Employees
3,516 - 65.4%
1,864 - 34.6%
Undergraduate Degree
Graduate Degree
69.1%
27%
Associate Degree 2%
High School 1.9%
Employee Distribution
by Age Group
Manager Distribution
by Age Group
Between 30-50 Years
30-Years and Under
50-Years and Over
74%
22%
4%
Between 30-50 Years
30-Years and Under
50-Years and Over
93%
1%
6%
Turkcell aims to increase the
rate of female employees to
40% by 2030.
40%
114 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK C1.1; SPK C1.2; SPK C1.3; SPK C1.4
SPK C1.1; SPK C1.2; SPK C1.3; SPK C1.4
GRI 2.7
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 115
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Within the scope of
Turkcell’s remuneration
policy, we adopt the
principle of “equal pay
for equal work” and do
not apply any difference
in basic salary of female
and male employees.
stakeholders. In determining and up-
dating our Remuneration Policy, we take
into consideration the roles where there
is a talent loss and positions where tal-
ent acquisition is desired, as well as peer
companies in the market, and reference
the wage market accordingly. Our sala-
ry scales are updated based on needs,
recruitment, talent loss data, as well as
various market or industry-based job
market studies conducted by consult-
ing and research firms. To avoid any
discriminatory remuneration between
female and male employees perform-
ing the same role and at equivalent
job levels, we apply our remuneration
policy throughout our entire operations
within the relevant standards in an un-
biased manner, covering all our opera-
tions. While determining our remunera-
tion polices, we pay attention to create
competitive and motivating conditions
in order to retain executives, employ-
ees and talents performing critical roles
within the company.
Turkcell provides
its employees with
various fringe benefits in addition to
their salary. Employees can flexibly cus-
tomize their benefits through the Flex
Menu. Turkcell sets a budget for its em-
ployees from the start of the year to the
end, enabling them to plan and select
their fringe benefits. This gives employ-
ees the ability to shape their menus to
fit their lifestyle and unique needs, in-
cluding options for various insurance
plans, meal allowances, and gift cards.
Furthermore, Turkcell employees also
benefit from Turkcell Private Pension
Plan.
We are constantly expanding our fam-
ily with all Turkcell employees and new
joining us from all over
teammates
Turkey, and contributing to the increase
of the effective workforce. We truly
believe that gender discrimination in
occupation and fields of expertise is a
practice that should be left behind and
as a leading digital operator company,
we highlight the work of women es-
pecially in STEM (Science, Technology,
In
Engineering, Mathematics) areas.
order to empower women in business
and their endeavors, we carry out var-
ious activities and take crucial steps in
increasing the employment of “female
engineers” in Turkey. We aim to provide
job opportunities for female engineers,
who are at the beginning of their career
or female professionals whose careers
were interrupted for various reasons.
As of 2022, female employees account
for 30% of engineering positions and
35% of IT positions.
*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
BiP İletişim Teknolojileri ve Dijital Servisler A.Ş.
Demographics of employees does not change
significantly during the year.
Disabled Employee Approach
Employee Loyalty and Happiness
Turkcell is an equal opportunity em-
ployer and considers all qualified ap-
plicants for employment regardless of
disability, race, color, religion, gender,
national origin, ethnicity, age, physical
appearance or status, marital status,
and military service status.
Turkcell, does not discriminate against
disability in the recruitment processes,
does not receive the disability infor-
mation of the candidates during the
application and makes the evaluations
with the same equality approach. The
entire process for the applications and
beyond is based on an unhindered pro-
cess for our disabled candidates. Other
practices within the scope of barri-
er-free process of recruiting disabled
people
inter-
include remote/digital
views, supplying all documents through
digital channels, and ensuring suitable
physical conditions after the start of
employment. In 2022, 135 disabled em-
ployees have worked in our Company.
meetings and feedback surveys. The
outputs of the research and one-
on-one meetings are brought to
the agenda at the senior executive
meetings.
improve
We conduct practices to
overall satisfaction of our employees
and their families. In this scope, we
offer health insurance policies to our
employees to which they can include
their spouse and children as well. As
fringe benefit, we provide all employ-
ees with a “life insurance with death
and life support (critical illness)” policy
for establishing an insurance support
We are working to improve our em-
ployees’ work
life experience at
Turkcell and to strengthen our exem-
plary corporate identity with our em-
ployer brand in Turkey. We monitor this
development periodically through re-
search conducted with a broad par-
ticipation throughout Turkey.
With the Turkcell Pulse Survey, , the
tendencies of Turkcell employees,
who can work from anywhere with
the flexible working model, are mon-
itored regularly through one-to-one
Employee Turnover
2019
2020
2021
2022
Female Employee Turnover
Male Employee Turnover
3%
8%
Voluntary Employee Turnover 5.9%
2%
6%
6%
Total Employee Turnover
11.4%
8.2%
6%
12%
12.1%
17.7%
13%
13%
15.1%
19.0%
116 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK C1.1; SPK C1.2; SPK C1.3; SPK C1.4
SPK C1.5
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
in case of invalidity for work after an
accident or disease. Thanks to Turkcell
Pension Plan, we contribute to our em-
ployees’ savings and investments in or-
der to allow them to sustain their living
standards after retirement. Although
the legal provision for paternity leave
in Turkey is 5 days, we provide 10 days
of leave to new fathers, so that our
male employees can contribute to the
childcare and spend more time with
their children. In order to support work-
ing mothers, we provide day nursery
aids for female employees who have
preschooler children. We give mothers
and fathers paid leaves on the school
opening and report card days of their
kids so that they share the excitement
of their children by being with them
on those days. In order to facilitate
the lives of our female employees who
have just returned to business life after
giving birth, we have lactation rooms
equipped with breast pumps, refrig-
erators to store milk, wash basins and
sinks for hygiene, and rocking chairs
at our working locations. As of 2022,
there are lactation rooms in 8 different
Turkcell premises.
Activities for Strengthening our
Employer Brand and Employee
Motivation
In 2022, we established an inclusive
strategy centered on the employer
brand at Turkcell, focusing on being
youthful, dynamic and without age
discrimination. The employer brand
strategy,
launched under the T.Life
brand, was defined based on research
results as: “T. Generation is a technolo-
gy-savvy, hands-on, assertive global
citizen who stands out positively with
their demeanor wherever they go.”
In line with this strategy, we have im-
plemented T.club, T.studio, T.labs, and
T.stage events.
T.club: Under the categories of art
enthusiasts, adventure seekers, travel-
ers and gourmets, we have organized
a wide range of entertaining events,
from outdoor cinemas to weekend
camps, from cultural tours to gourmet
events, catering to all tastes. We es-
tablished the T.club volunteer network
and organized events that encompass
all Turkcell locations, reaching all our
employees.
T.stage: To cater to the music lovers,
we organized acoustic concerts.
T.labs: With T.labs, we opened access
to personal development and healthy
living videos in the T.Life app, which can
be enjoyed during 1-2 minute breaks.
T.studio: Through our own live broad-
casts and podcasts, we effectively
and attractively announced all promi-
nent content.
As Turkcell, we invest in the wellbeing of
our employees and their families, and
continue to adopt activities which could
contribute to our corporate culture.
Our most fundamental goal is to create
strong company results both operation-
ally and financially with highly efficient
employees who are much more commit-
ted to the values and culture of our or-
ganization and who are physically and
psychologically healthier. We offer many
practices that could serve the psycho-
logical and physical vitality of Turkcell
employees and their relatives.
We organized ‘Take Care of Yourself’
healthy
living activities which could
create positive impact on the souls,
bodies and minds of our employees.
Accordingly, we brought our employees
together in online and offline courses
such as fit brain, live exercises, healthy
breathing, standing tall academy, pleas-
ant information and yoga.
We offer childcare
support to our female
employees who
have pre-school age
children.
In 2022,
335 of our
employees benefited
from childcare
support.
We appreciate our
employees: With “CXO
awards”, our Executive
Vice Presidents reward
employees, who make a
difference, throughout
the year. Thanks to our
Instant Awarding platform,
all of our managers can
financially reward the team
members who have made
a distinct contribution
to the business through
T.Life mobile application.
Moreover, employees
who complete their 5th,
10th, 15th, and 20th years of
service, are awarded with
a financial seniority reward
and a seniority plaque.
Starting in the pandemic, in order to
increase employee motivation and
communication, we organized ‘Online
Workshops’ delivered by expert guid-
ers on culture, arts, history and person-
al development. Thanks to our ‘Digital
Traveler’ events, we also visited different
destinations in Turkey through live tour
sessions conducted in the digital envi-
ronment by our expert tour guides. We
organized trivia quizzes, named “Lucky
Knowers”, with various prizes every
Friday throughout the year. With the
objective of keeping our location-inde-
pendent connections strong, we cele-
brated special days such as Ramadan
and Sacrifice Feast among our employ-
ees through the “Turkcell Employees
Holiday Greetings” campaign and
with our elderly people living in nursing
homes through the “Turkcell Employees
Holiday Greetings with the Elderly”
campaign. We conducted digital live
tours to allow the kids of our employees
to spend enjoyable moments at home
and get to know different cultures on
“Child Traveler”. With the project “Dream
School” created completely in the digital
environment, our employees and their
kids were offered a two-week vacation
school program. We have founded the
largest corporate sport club in Turkey
with 17 teams in 13 branches.
We conducted ‘Coffee Breaks’ with
surprise CXO visits in order to increase
the synergy among our employees
while working flexible and to bring
them together with the senior man-
agement just to have conversations
outside meetings and business-re-
lated agendas. During the previous
period, we also continued bringing
our employees together with our CEO
Murat Erkan at “Breakfast at 8” events.
Safe and Healthy Work
Environment
Turkcell considers protecting the em-
ployees’ health and wellbeing as a high-
est-priority responsibility.
The Occupational Health
and Safety Policy, which we creat-
ed in compliance with Occupational
Health and Safety Law No. 6331 and the
ILO-OSH (ILO Occupational Safety and
Health) 2001 standard regulates the
principles and practices we follow in the
management of occupational health
and safety. We ensure the physical secu-
rity standards of our buildings and facil-
ities in accordance with Private Security
Services Law No. 5188 and its respective
regulations. In addition to their occupa-
tional training, all of our security employ-
ees are informed of Turkcell dynamics
by their own companies before starting
their work at Turkcell.
Turkcell Group shows high sensitivi-
ty to occupational health and safety.
In 2022, 66 OHS board meetings were
carried out throughout the company,
and 4,071 OHS audits were performed
in network operations field studies.
At the base station site, equipment
and facility revisions were carried out
in terms of OHS. During the year, we
held 64 different health seminars. In
addition, we also focused on the psy-
chological health of employees, and
provided psychology and pedagogue
services that employees can benefit for
themselves and their children. In addi-
tion, we offer services that enable our
employees to receive consultancy ser-
vices from experts for the care of their
pets and the plants they grow.
Accident Frequency Rate
1.38
0.68
2020
0.48
0.47
2021
Female
Male
0.87
0.85
2022
Number of Occupational Accidents
2020
2021
2022
Female 5
Male 5
10
2
4
6
8
7
15
Total
Number of Occupational Diseases
2020
2021
2022
Female 0
Male 0
0
Total
OHS training hours (person*hour)
2020
Female 3,520
Male 4,992
0
0
0
2021
5,760
7,600
0
0
0
2022
12,804
13,296
Total
8,512
13,360
26,100
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Workdays Lost Due
to Occupational
Accidents
4
2020
2
2021
9
2022
Lost Day Ratio
0.39
0.26
2020
0.52
0
2021
Female
Male
Turkcell Group indicators are transpa-
rently shared with our employees, such
as accident frequency rate, details of
the accidents and total lost days. With
this system, the occupational health
and safety performance of all registe-
red businesses within the Turkcell Group
is monitored and managed by the ma-
nagement team on an annual basis, ba-
sed on a score determined in accordan-
ce with the criteria outlined in the legal
regulations’ penalty score table.
We communicate with all our emp-
loyees about OHS-specific issues th-
rough Turkcell OHS Portal. We expect
the businesses we collaborate with to
comply with our OHS Policy and ensu-
re that they take measures within this
framework through our business cont-
racts. Thanks to our OHS experts, we
analyze all occupational accidents
and OHS data, present the statistical
analysis based on accident reports to
Senior Management on a monthly ba-
sis, and determine occupational he-
alth and safety goals and action plans
for the future.
1.46
0
2022
Number of third-party OHS data
2020
2021
2022
Female
Male
Female
Male
Female
Male
Number of third-party occupational accidents 2
Third-party accident frequency rate
Number of third-party occupational
diseases
Lost working hours due to third party
occupational accidents (hours)
4.4
0
0
0
0
0
0
3
5.4
0
10
3
2.9
0
1
0
0
0
0
1
12.5
0
3
Number of recruitment health examinations
Number of periodic health examinations
2020
2021
2022
2020
2021
2022
Female
127
Male 262
502
574
Total
389
1,076
402
452
854
Female
114
Male
194
635
714
480
600
Total
308
1,349
1,080
Our Productive Turkcell Family
We are positioning our organization
on a flexible and agile basis with our
strong team that prepares the future by
adopting the approach of “providing
equal opportunity for all” in education,
and we develop projects in many diffe-
rent areas in order to grow our Turkcell
family and always move it one step
further. We provide all our employees
with the opportunity of self-improve-
ment, regardless of their duties and
responsibilities within the Company.
Flex Performance Management
System helps employees follow
their goals to reach the best bu-
siness results and provides them
with the opportunity to constant-
ly improve their performance th-
rough the regular feedbacks they
receive. All Turkcell employees
are included in the annual perfor-
mance evaluation process. The
performance process at Turkcell
consists of five steps:
1
2
3
4
5
SMART Goal Setting
Quarterly Interim
Evaluation
Continuous Feedback:
ReFlex
Behavior and
Competency
Assessment: ReFlex360
Year-end Performance
Evaluation
As a part of the Goal Setting
process at Turkcell, each emp-
loyee is expected to set their
goals together with their ma-
nager and keep those goals
updated with the changing
priorities throughout the year.
With quarterly interim evalu-
ations, Turkcell managers get
together with their teams and
clarify their goals and actions
plans, give regular and frequ-
ent feedback to enable emp-
loyees to continuously improve
their performance.
Behavior and Competency Assessment: Reflex360
ReFlex360 aims to increase the employees’ awareness around their stren-
gths and improvement areas through the evaluation of their managers
and colleagues on expected competencies. ReFlex360 process provides
extensive and objective feedback for Turkcell employees on their perso-
nal development throughout their career journey.
Continuous Feedback Mechanism: ReFlex
We believe in the importance of feedback in the successful management
of our business processes in flexible working. ReFlex, our mobile feedback
mechanism, allow us to provide feedback instantly. Thanks to our ReFlex
system that allows us to appreciate our employees and provide const-
ructive feedback, we increase the self-awareness and work efficiency
among them.
Super Job
With “Super Job”, we aim to increase our employees’ motivation by ma-
king them feel appreciated. The employees who have carried out an in-
novative, exemplary project or a job that creates value are appreciated
by our directors through T.Life mobile app and the information that the
employee has received “Super Job” is shared with the related directorate
and function.
4,071 OHS audits
were performed in
network operations
field studies.
4,071
Voice of Managers/ Directors/ Employees
We rely on the power of communication and develop practices by including all
our employees to the strategy-creation process through ensuring their commu-
nication with each other. Accordingly, the Voice of Managers program provides
our managers the opportunity to give direction to Turkcell strategies under the
leadership of our Strategy Department. We bring our directors together at the
Voice of Directors meetings we organize and provide them convenient settings
where they can exchange ideas. The Voice of Employees survey enables our
employees to express their opinions and suggestions transparently in the survey
processes and during voluntary employee meetings.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Backup
Management
that
At Turkcell Group, our objective
is to implement inclusive talent
management
is aligned
with the nature of the business
and work. In line with this, the
approach adopted is to view
all employees as talents, rather
than selecting and developing
talents through segregation, and
to provide equal opportunities to
everyone. A talent management
process is run through Turkcell
Academy to support the devel-
opment of all employees, which
is designed to meet functional
needs.
In order to contribute to the com-
pany’s continuity and sustainable
performance, and to bring the
company’s strategies to life, we
back up the employees serving
in management positions with in-
ternal and/or external resources
to mitigate unexpected losses of
managers and employees.
Our Agile Teams
At Turkcell, we consider our business
units’ agility, strength and flexibility as
the greatest source of our success and
continue our activities in this field ac-
cordingly. We work for our technical,
commercial and support functions to
have flexible and agile structures so
that they can more effectively contrib-
ute to the implementation of Turkcell’s
strategic initiatives.
In this scope, we offer training and
coaching programs for our employees
so that they can increase their person-
al agility. With organizational agility
practices, we aim to improve employ-
ee loyalty, operational performance,
and customer satisfaction rates.
The organizational structures of new
business areas are updated in a man-
ner that can rapidly adapt to evolving
market needs and dynamics. We ana-
lyze the status quo by monitoring the
performance of agile working prac-
tices and we observe improvement
areas and conduct pilot projects.
The pilot applications which we find
successful are
implemented
across Turkcell and we define ac-
tion plans for the areas that need
improvement.
then
Metaverse Employee
Gathering
As the world’s first digital operator,
we continue to expand our portfolio
of innovative applications that dif-
ferentiate our business processes. We
develop projects for young talents to
experience technology trends and
enhance their skills, and organized the
largest Metaverse event with the aim
of contributing to young people’s ex-
perience of future work environments.
We have designed the meeting and
event areas as a blend of real and sur-
real spaces suitable for the Metaverse
world, resulting in the creation of the
T.Verse Metaverse area for Turkcell
employees. Young talents who joined
Turkcell this year through GNÇYTNK
program were also present in T.Verse.
“Flex” Human Resources in
the Digital Age
At Turkcell, we take our human re-
sources practices through a digi-
tal evolution and handle them on
a flexible platform we call “Flex”. In
our journey to become a “Digital HR”,
we enable our employees to shape
im-
and personalize almost every
plementation we offer with the Flex
HR system we have developed, ac-
cording to their own needs. With
FLEXSourcing, another Flex applica-
tion, our productive Turkcell family
can voluntarily spend 20% of their
working time on innovative projects
that require a variety of perspec-
tives, expertise and competencies.
Turkcell employees participated in 21
active FlexSourcing projects in 2022.
According to the principles of val-
ue creation and flexibility, with our
FLEXSourcing application, which of-
fers options in many different fields
such as from artificial intelligence to
gamification, from data analytics to
crowdfunding, 512 Turkcell employ-
ees took part in more than 90 volun-
teer projects, aiming to add value to
Turkcell in 2019-2022.
Apprenticeship
Program
communication,
With the objective of creat-
ing opportunities to
increase
the
internal
Apprenticeship Program offers
all Turkcell employees the oppor-
tunity to improve their competen-
cies by gaining new experiences
in line with their career-related
and self-improvement needs. The
Apprenticeship Program is de-
signed to provide opportuni-
ties for all employees with more
than 1 year of work experience
at Turkcell to gain experience at
a directorate of their choice for
five days.
My FlexCareer
In order to build our new ca-
reer architecture
focused on
technical know-how and com-
petencies that provide the em-
ployees with the opportunity to
proactively manage both their
personal development
jour-
ney and their career, to support
Turkcell’s strategy and vision, and
ensure rapid improvement; we try
to enrich our organization with
competencies of today and the
future. Thanks to ‘My FlexCareer’
we have a pool of flexible, agile
and specialized competencies
in line with the requirements of
VUCA
(Volatility-Uncertainty-
Complexity-Ambiguity) as well as
the capacity to find and retain the
talents that possess these com-
petencies. This practice gives our
managers a chance to offer con-
crete and transparent feedback
to employees and guide them on
their career development. It also
allows our employees to clearly
see which business results they
have contributed to and by using
which competency. Instead of the
methodology based on seniority
and performance criteria which
were used in traditional systems,
we focus on occupational com-
petencies which we believe are
more relevant to today’s world
and demographic structure.
Training and Development
Programs
Turkcell Academy
Trainings
With Turkcell Academy, we continue
standing by our employees on their
journey of development. In order to
create a sustainable learning culture
for a better future, by providing the de-
velopment of individuals whose lives
we touch with the focus of “Human”
and “Future”; we aim to offer innova-
tive solutions that create value in or-
der to train qualified labor force for
the Turkcell Ecosystem, society and the
industry.
We have supported our ecosystem
of 70 thousand people with training
and development solutions that make
difference. To develop and prepare
Turkcell and the ecosystem for the fu-
ture, we have implemented training
programs equipped with rich content
also in 2022; including our new gradu-
ate employment program, the “Young
Talent Program”, the leadership pro-
grams we have prepared at 6 differ-
ent levels, employment programs that
will benefit the functions, society and
Turkey, and education-development
journeys prepared for university stu-
dents and the field. The total budget of
the trainings we carried out in 2022 is
at the level of TRY 22 million.
Total cost
of training
activities
(TRY million)
13.7
2020
16.3
2021
22.0
2022
Turkcell Academy Total Training
Hours (million people*hour)
Turkcell Academy Total Training
Participation Number (million people)
3
3
.
1.4
3
3
.
1.8
8
2
.
1.5
2020
2021
2022
Turkcell Academy Participants by Gender (%)
Female
59%
Male
41%
Female
59%
Male
41%
2021
2022
Turkcell Academy Participants by Age Group (%)
50-Years
and Over
1%
30-Years
and Under
57%
Between 30-50
Years
42%
50-Years
and Over
1%
30-Years
and Under
59%
Between 30-50
Years
40%
2021
2022
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Development Program for
Academy Trainers
We attach great importance to the
development of our Academy trainers,
who contribute to the training process-
es of our colleagues with their exper-
tise. In addition to their current respon-
sibilities within the company, we offer
a long-term development program for
employees who are volunteer-trainers
in order to improve their trainer skills.
A total of 515 participants attended in
the trainings (Copywriting for Digital
Content, Digital Content Production
101, Digital Content Production 201 and
Active Learning Techniques) organ-
ized within the scope of the Academy
Trainer Development Program, which
was prepared to improve the teach-
ing skills of our Academy Trainers in the
Turkcell Group.
Number of Turkcell
Academy Trainers
676 687 764
2020
2021
2022
The total budget of the
trainings we conducted
in 2022 amounted to
TRY 22
million.
Legally Required Trainings
Turkcell Ecosystem Leadership
In addition, the Educator’s Education
Certificate Program was implemented
with the Department of Educational
Sciences of Middle East Technical
University, one of the best universities
in Turkey, in order for the current train-
ers to learn the educational formations
closely and gain deep expertise in
their fields. During the 60-hour, 6-mod-
ule online program; participants who
successfully completed assignments,
project presentations and oral exams
were entitled to receive a certificate.
In Turkcell ecosystem, our
legal-
ly required trainings consist of Basic
Occupational Health and Safety and
Information Security Trainings. In ad-
dition, within the scope of raising
awareness and consciousness, train-
ings are carried out on “Sustainability”,
“Business Continuity”, “Bribery and
Corruption”, “Competition Law” and
“Turkcell Common Values and Business
Ethics Rules” with the participation of
all our employees in parallel to compa-
ny strategies and regulations.
Turkcell Basic
Mandatory
Training Hours
(hours)
21,792 26,532 40,917
2021
2020
2022
Ratio of internet-
based trainings
to all training
91%
2020
93%
2021
95%
2022
“future”
The approach of Turkcell’s Ecosystem
Leadership is composed of eight fun-
damental competencies that bring
our employees and our strong ecosys-
tem together in a way that is based on
“human” (Aware, Flexible, Trustworthy,
(Visionary,
Sharing) and
Innovative, Aware of Sustainability,
Inclusive to Diversity). The aim is to cre-
ate common behaviors and expand
the corporate culture through these
competencies. Turkcell Academy puts
this strong approach into the heart of
its learning and development activities.
Parallel to Turkcell’s vision and initia-
tives based on offering superior digital
services for a better future, we aim to
create global employees and leaders
who make a difference with our “hu-
man” and “future” focus.
Distributor Development Program
leveraging
Turkcell Academy,
its 16
years of experience, contributes to the
development of distributor company
employees and guides the industry by
converting the potential of qualified
employees into performance. Training
programs have been implemented with
participation from KVK and Genpa
employees from sales, HR, finance,
marketing, technology, legal, and cus-
tomer service teams covering 36 dif-
ferent topics focusing on Leadership,
Functional Expertise, and Technology
& People. 2,169 employees participated
in the training programs, leading to im-
provements in the recruitment process,
an increase in the financial analysis
skills of employees, and positive out-
comes in customer satisfaction.
In partnership with Koç University,
“Preparing for Future Leadership” pro-
gram was carried out for 43 managers
in leadership positions. The programs
have been observed to have resulted
in effective team management by the
executives, enabling the potential of
employees to be fulfilled, and the em-
ployees performing their duties as con-
fident and dedicated to the company.
Developers of the Future -
Investment for Youth, Software for
the Future
The Ministry of National Education in
collaboration with the “Investment
for Youth, Software for the Future”
program was launched to increase
Turkey’s
technological capabilities
and the quality of software developer
workforce. This program aims to pre-
pare young people for the software
world, to acquire high proficiency in
coding, and to capture career oppor-
tunities in this field. The program in-
cluded a total of 700 hours of training,
3,000 hours of one-on-one mentorship
support, and 15 different experience
sharing sessions. 70 participants who
successfully completed the 6-month
program, out of 27,000 applications, in
6 different technological focus points
(Java, .Net, Swift, Kotlin, Data Science,
Application Operations) were em-
ployed in Turkcell Group Companies,
while 90 participants were given em-
ployment opportunities
in different
companies in the software ecosystem.
Super Women of Cyber Security
The “Super Women of Cyber Security”
program was launched to increase
employment in the field of cyber secu-
rity, ensure the presence of more wom-
en in the industry, and raise awareness
in this area.
from various
Candidates
locations
of Turkey, regardless of age, who are
interested in cyber security, applied
and participated in the program by
completing the 22-hour asynchronous
training found on the Writers of Future
platform and passing a general apti-
tude and technical test. A 48-hour ex-
perience-focused bootcamp program
was launched with 100 selected female
participants. The Cyber Security Pocket
Book, with each participant positioned
as an author, was prepared under the
guidance of 13 female mentors from the
Cyber Security team. The Pocket Book
includes topics that touch individuals’
lives such as Wireless Network Security,
Social Media Security, Safe Internet,
Password Attacks, Device Security, Mail
Security, and Hardware Security.
Cloud Technologies Program
In June, Cloud Technologies Bootcamp
Program was launched to develop hu-
man resources in the field of cloud tech-
nologies and meet both our company’s
and the ecosystem’s employment needs in
this area. From thousands of applications,
selected participants completed a 96-
hour intensive, practice-oriented training
program. The program was held with a
focus on CCNA, Linux, and VmWare and
resulted in the successful employment of
12 participants in Turkcell Cloud teams.
Hackathon Programs Regarding
University Students
In an effort to support the software in-
novation in the legal world, a cross-dis-
ciplinary “Lexathon” initiative was exe-
cuted by bringing together law and
technology with the participation of
university students. Participants of our
Lexathon project took part in a 2-week
development program covering topics
such as visualization in law, innovation,
digital transformation, and new-gen-
eration technologies. With an appli-
cation of 2,270 university students,
the Lexathon program consisted of 36
hours of hackathon, 13 hours of train-
ing, and 170 hours of mentorship.
As the damages caused by cyber-at-
tacks continue to increase, targeting
businesses of all scales and individuals,
these attacks result in both financial
and data losses. With the participation
of university students, a “Unibounty”
project was organized by Turkcell to
hold a cyber security vulnerability dis-
covery program in Turkcell applica-
tions. The program was participated
by students from 11 different universities
and resulted in over 1,000 interactions.
Turkcell Functional Trainings
At Turkcell Group, we offer Functional
Development Programs that are syn-
chronized with Turkcell’s main strat-
egies and initiatives and support the
end-to-end development of relevant
teams throughout the year. The aim
of these programs is to prepare our
teams for the future of Turkcell, while
also giving them new perspectives
that add value to their current work,
supporting collaboration, creating a
future vision, and achieving common
goals. Working with ecosystem part-
ners, Academy trainers, and develop-
ment partners with expert personnel,
we use experiential learning methods
to implement development programs
and utilize different learning methods
and tools such as online live virtual
classes, face-to-face, and lab environ-
ments. These programs are designed
as a flexible model that can adapt to
the changing needs and priorities of
relevant functions throughout the year
and be reshaped by instant requests.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Leadership Programs
Turkcell Academy designs Leadership
Development Programs taking
into
consideration the specific needs and
impact area of each level of leader
with a focus on human and the future.
It supports Turkcell Leaders in every
area they need as they fulfil their very
important responsibilities: to make de-
cisions that carry Turkcell into the fu-
ture, realize new opportunities, create
the right strategies with a holistic per-
spective, convey these in a way that
will establish the strategy and business
context, inspire employees at all levels
to identify relevance and be excited,
lead change, lead the team, and keep
the team spirit and awareness of ‘be-
ing us’ alive. Leadership Development
Programs, created at six different lev-
els, are constantly updated with in-
novative development solutions that
offer flexibility along with a holistic ap-
proach, considering individual needs.
Future of Leadership Masters
The Future of Leadership Masters
Program, designed by combining the
philosophy that all our employees are
the leaders of their jobs, and different
focuses in their vision, is a develop-
ment journey prepared to improve the
leadership competencies of all Turkcell
employees by focusing on Turkcell
Ecosystem Leadership values.
This program prepares all Turkcell em-
ployees who apply for the future as
leaders of themselves and their busi-
ness. The development journey that
will last for 1 year consists of 3 phases
and brings different disciplines togeth-
er with the collaborations of Yeditepe
University, Bilgi University, Boğaziçi
University and Istanbul University. The
program was designed by systemat-
ically constructing different learning
methods such as online education, live
virtual classroom, case study, experi-
ence workshop and exam practice.
1,600 people of Turkcell started the first
phase of the program by completing
the case study step. In the first phase
of the program, which was designed in
cooperation with Yeditepe University
and aims to provide 12 different basic
leadership competencies, 1,055 partic-
ipants received certificates of achieve-
ment and were entitled to move on to
the second phase.
1,600 people of Turkcell
started the first phase of
the program by completing
the case study step. In the
first phase of the program,
which was designed in
cooperation with Yeditepe
University and aims to
provide 12 different basic
leadership competencies,
1,055 participants received
certificates of achievement
and were entitled to move
on to the second phase.
Küp (Turkcell
Academy Digital
Library)
In line with the learning orga-
nization and self-learning ap-
proaches, the Turkcell Academy
Digital Library (KÜP) was ope-
ned to the use of all Turkcell
employees in March 2022 with
over 2,500 contents. With the-
se prepared contents, Turkcell
employees personalize and de-
sign their own learning journeys
according to their preferred
learning method in KÜP, with
e-learning, reading material,
video, podcast and interactive
video options.
In the second phase of the program
which was realized
in cooperation
with Bilgi University, the participants
expanded their specialization under
the headlines they chose, and met the
specialists who worked in those fields
in the industry. At the end of the second
phase, 497 participants received certif-
icates of success and were entitled to
move on to the third phase.
In the 3rd phase of the program which
will be carried out in cooperation with
Boğaziçi University, the participants
will be given the opportunity to realize
and experience the competencies they
acquired. Phase experience work-
shops, simulation and online trainings
have been designed for this purpose.
At the end of the program, participants
who complete all phases successfully
will be entitled to have a master’s de-
gree in Istanbul University in 2023.
RPA Marathon
Our colleagues were included in our
long-term training program within the
scope of RPA Marathon, which was
implemented in line with our digitali-
zation strategy and aims to save time
and increase efficiency in business
processes by automating routine op-
erational processes across Turkcell.
After our online training that lasted
for 4 hours with more than 700 par-
ticipants, our in-class trainings that
lasted 2 days with more than 400
participants were completed. At the
end of the trainings, our participants,
who attended the RPA Marathon and
wrote their own RPA scenarios, con-
tributed to our operational excellence
and digitalization strategy by digitiz-
ing their processes.
Future Talks
KEY – Personal
Training Journey
is
Personal Training Journey
a program that supports the
development of Turkcell emp-
loyees on technical and soft
skills. Within the scope of the
KEY Program, a development
journey was presented to 3,801
people with a total of 16 topics
in the first half of 2022. Training
topics were determined in line
with future competencies and
Turkcell strategies. The training
programs include topics such
as data science, python, project
management, agile approach,
time management, human-o-
riented design, commercial
perspective, durability, and
stress tolerance. In the second
half of 2022, 820 people recei-
ved training on communication,
cooperation, presentation te-
chniques and conflict manage-
ment. The participants had the
opportunity to choose the trai-
nings they needed, and develop
their competencies that would
contribute to them in their busi-
ness and private lives.
is
the
relevant
Future Talks, a seminar series where
Turkcell employees gather with re-
searchers and practitioners who
exemplify
strategy
focused on Turkcell’s
globally,
initiatives. This se-
strategies and
ries was conducted in areas such as
Artificial
Intelligence Technologies,
5G, Cybersecurity, Fintech, Metaverse,
Digital Broadcasting and OTT, Digital
Transformation, and RPA. The goal
of these seminars is to improve the
understanding of strategies and ini-
tiatives among all employees and to
synchronize the efforts of different
teams. The Future Talks series, aimed
at creating a growing and continu-
ously evolving ecosystem, will contin-
ue to take place in the future, focus-
ing on areas such as Blockchain, NFT,
Digital Art, Digital Banking, Big Data,
and Change Management.
Turkcell Pasaj Vendors
Development Program
Pasaj
Turkcell
The
Vendor
Development Program aims to provide
basic e-commerce training, finan-
cial transactions, legal dimensions of
e-commerce, customer service man-
agement, and other related topics
to our Pasaj vendors, in order to cre-
ate satisfied customers and increase
sales. This program has two separate
Digital
Transformation
Consultant
Program
The development program we
started in order to become the
preferred operator in the digital
transformation projects of our
corporate customers has aimed
to maintain the sales compe-
tencies of our sales teams and
provide them with the compe-
tencies of acting as consultants.
During the design phase of
the program, the focus was on
8 competencies, which were
determined as the main con-
sultancy competency by the
world’s leading consulting firms.
By using different learning met-
hods within the program, active
participation of the participants
in the educational journey was
ensured at every stage of the
training program. In this context,
traditional experience-oriented
learning sessions, sectoral artic-
le reviews, vision seminars, and
practice workshops for peer le-
arning were held.
At the end of the first phase
of the “Digital Transformation
Consultancy Program”, an im-
pact analysis was made on the
business results of the corpora-
te sales teams of the program.
In the analysis, it was measured
that our sales managers who
participated
in the program
increased their sales by 2 times
compared to the previous year.
training packages, consisting of 8
modules and 55 videos for Pasaj ven-
dors. Turkcell Academy has also pro-
vided an open training on 11 related
topics on its Youtube channel for the
development of all entrepreneurs in
Turkey. The training covers topics such
as basic e-commerce training, finan-
cial transactions, legal dimensions of
e-commerce, operations, and custom-
er service management.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Bosses’ Club Training Program
The “Bosses’ Club” program has been
launched by Turkcell Academy on be-
half of our corporate and individual
business partners who have made
significant efforts in Turkcell’s technol-
ogy retail leadership. The program,
which began with the contributions
of Istanbul Bilgi University and valu-
able academic staff, has organized
trainings on topics including changing
consumer behaviors in the technolo-
gy retail sector, digital transformation,
leadership, economy, and government
incentives.
Advanced Certificate Program
Advanced certificate program is a de-
velopment program which was organ-
ized to train our dealer employees as
prospective dealer managers if they
succeed
in the Technology Retailer
Certificate Program renewal process.
The program is carried out as the sec-
ond phase after the Basic Certificate
Program organized for Turkcell Retail
and Corporate Sales field employees.
Our 400 employees who achieved
the best results
in the Advanced
Certificate Exam after obtaining the
Basic Certificate were included in the
program. In the 42-hour program at
Istanbul University; the topics of con-
sumer behavior, technology, marketing,
communication, finance and sustaina-
bility were delivered.
University Collaborations
Turkcell Academy works on projects
which will bring value to Turkey and
we place great importance on cooper-
ating with universities in order to bring
qualified workforce to the industry. We
brought together our students who
have studied in our universities to shape
the technologies of the future, with
our experts in Turkcell’s mobile access
technologies, software development,
In these
security technologies and cloud tech-
nologies.
industry-university
collaborations, we conveyed our ex-
perience
in current technology and
business fields and our future vision to
university students. While contributing
to the brand value of our company, we
tried to help our university students in
their future career choices, , where our
employees who have experience and
knowledge in the field come togeth-
er for students who want to steer their
careers.
In order
to support Turkcell em-
ployees in their career journeys and
academic development, graduate
and doctorate programs were held
with 6 different universities. In addi-
tion to 11 different master’s programs
in Business Administration, Cyber
Security, Management
Information
Systems, Engineering Management,
Managerial Economics and Electronic
Communication Engineering, 163 em-
ployees participated
in 2 doctoral
programs. This program has aimed to
develop our company and our country
by enriching the academic theoretical
knowledge in universities with up-to-
date practical knowledge in the world
of technology.
Making a Difference in
Employment
As one of the largest employers in
Turkey, despite all challenges, we were
able to create additional employment
in 2022, as well, continued our activ-
ities in line with our strategic human
resources planning. As the
leading
digital operator of Turkey, we continue
to contribute to employment through
our programs specifically prepared
for hiring different talents ranging from
especially
information
technology,
and communication technologies to
finance and from marketing & sales to
human resources.
New Hires
New Hires
2020
Full-time 723
Part-time 0
2020
Female 262
Male 461
2021
885
0
2021
329
556
2022
706
0
2022
277
429
Turkcell Group Orientation Program
Young Talent Program
In line with the needs of the changing
business world, the orientation pro-
gram was redesigned by focusing on
our flexible working model and learn-
ing styles. The learning design was
carried out with an orientation pro-
gram that meets the needs of the new
period, and a perspective that covers
the diversity in which we bring differ-
ent disciplines and different perspec-
tives together.
In our new design; a structure was es-
tablished where employees are greet-
ed on the day they start work and their
training is followed through the system.
Accordingly, trainings are automati-
cally assigned to each newly recruited
employee, and the employee is provid-
ed with access to different trainings
through frequent contact points. As a
result, the orientation program has be-
come a program that we experience
together and accompany the employ-
ees on their journey to adapt to their
job and the company.
In our program, in which synchronous
and asynchronous training methods
are used together, we guide our newly
recruited employees through experi-
ence and learning sessions from each
other, while enabling them to establish
networks with each other.
Talent
Young
The
Program
“GNÇYTNK”, which has been imple-
mented to recruit talented young
people, has been successfully going
on since 2016. The need to “quickly
master difficult jobs” that comes with
digitalization, increases the impor-
tance of flexible and agile teams. We
are implementing our policy of incor-
porating high-tech proficient individ-
uals who are able to quickly adapt to
new conditions and have the deter-
mination to reach their goals without
giving up, into the Turkcell organiza-
tion. This includes not only seasoned
professionals in the field, but also
young people starting their careers in
the business world.
The program that was implemented
in 2016 has been continuously im-
proved by taking into account current
conditions and trends. As a result, the
online application and evaluation
processes have been updated to pro-
vide 100% equal opportunity for dis-
abled candidates, creating a signif-
icant improvement opportunity. The
Young Talent Program is seen as not
only promoting youth employment,
but also investing in the new human
resources necessary for digital trans-
formation that will drive the country’s
future.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
In 2022, 71 young talents who success-
fully completed the talent program,
which received more than 50,000
applications, started their careers at
Turkcell. The video interview stage
of the program used an artificial in-
telligence algorithm to evaluate ap-
proximately 2,000 candidates. The
successful candidates received job
offers through the AI, which made
the first selection based solely on the
suitability of their abilities without
any discrimination based on factors
such as appearance or gender. In ac-
cordance with Turkcell’s equal oppor-
tunity policy, 38% of the young people
hired are women. Additionally, 47
out of the 71 participants in the pro-
gram are graduates of engineering
departments.
Young Talent Orientation Program
Young people recruited
through the GNÇYTNK
program were welcomed
with a dynamic orientation
program prepared by
Turkcell Academy for rapid
adaptation to Turkcell
corporate culture and
technology.
By
listening to Turkcell’s vision and
strategies from the senior manage-
ment, they had the opportunity to
get to know each other better, build
networks, adopt team spirit, and act
together in different workshops.
In accordance with Turkcell’s equal
opportunity policy, 38% of the young people
hired are women. Additionally, 47 out of the
71 participants in the program are graduates
of engineering departments
Number of
candidates applying
to the Young Talent
Program
63,000 66,000 50,725
2021
2020
2022
Employment
provided with
the Young Talent
Program
150
2020
132
2021
71
2022
the
training workshops,
Through
GNÇYTNKs
learned about Turkcell’s
Digital Services and products, Turkcell’s
Sustainability Strategies, corporate
culture and values. Having successfully
completed the first step of the orienta-
tion program, the GNÇYTNK Program is
planned to continue for 1 year with the
Turkcell Academy’s motto of lifelong
learning.
Within the program, in order to deve-
lop the technology visions of Young
Talents, trainings were realized on ar-
tificial intelligence, cyber security, data
center, data analysis and blockchain
by Turkcell Technology teams primarily
and through continuing the strategic
cooperation with business partners
such as Huawei, Cisco, Ericsson, Nokia,
HPE, and Mavenir.
In the last module of the orientation
program, our Young Talents will receive
training on customer focus, innovati-
on, digital trends, leadership, strategic
thinking and experience leadership th-
rough simulations.
StajcellPlus
With Stajcell Plus program, we enable part-time employment of young talents who have successfully completed the
Stajcell Program. Within the scope of the Stajcell Plus Orientation program, 60 of our interns had the opportunity to get
to know themselves and Turkcell’s technologies by completing their personal development and technical competency
training. With the development program focusing on Turkcell Ecosystem Leadership values, our colleagues were able to
internalize the corporate culture and values by combining them with personal awareness.
“Tell your Candidate,
Create Benefit”
In order to bring different talents
to Turkcell family, our employees
can recommend talented exter-
nal candidates for vacant posi-
tions. If the candidate proposed
by our employees successfully
completes all processes and jo-
ins us, we offer our employee a
thank you gift through Paycell.
Within the scope of this practi-
ce, 62 candidates were hired.
Mentorship
Our aim in the internal mento-
ring program is to ensure the
development of the managerial
skills of the volunteer mentees
and to support the creation of
a common management culture
so that the volunteer mentors in
Turkcell group companies can
share their experiences in an en-
vironment of trust and indepen-
dence from hierarchy. In 2022, 150
of our employees were mentors
and 150 of them were mente-
es, taking part in the process as
companions to each other.
In addition, Turkcell employe-
es provide mentorship support
in projects that will support not
only Turkcell Group employe-
es, but also young people in the
entire ecosystem, especially uni-
versity students, those who want
to work in the STEM field or who
are relatively disadvantaged,
and this number is increasing
day by day.
Stajcell
Within the scope of the 2022 Stajcell Programme, a total of 112 interns from va-
rious universities and departments of Turkey joined Turkcell. Working in accor-
dance with our flexible working model, our interns completed a comprehensive
orientation program where they had the opportunity to get to know the world
of Turkcell, the difference of being a Turkcell member and life at Turkcell. During
their internships, their development journey was completed with online trai-
nings in order to be ready for the competencies of the future and to internalize
company strategies.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Manufactured Capital
Outputs
Up to
1.6 Gbps
4.5G speed
99.832%
Data accessibility
rate
10,910
Tower portfolio
65%
Network
virtualization
rate
Up to
10 Gbps
fiber internet
speed
27%
Network traffic
(Internet)
increase rate
11,341
Base station
sites with risk
assessment
Performance Indicator
Increasing the number of base
station sites with risk assessment
Increasing the number of processes
improved as a result of risk
assessments at base station sites
Increasing the network virtualization
rate (%)
Short Term
Target
Middle
Term Target
Long Term Target
2021
Performance
2022
Performance
Current Status
Towards Target
10,800
14,800
28,000
10,920
11,341
14,000
16,000
23,200
13,083
13,208
67%
70%
75%
60%
65%
Strong infrastructure and superior service quality
With 29 years of experience in the telecom sector, we ensure the delivery of
reliable and high speed services to our customers leveraging superior digi-
tal competencies, strong financial management.
We closely follow technological trends and develop world-class applica-
tions to maintain a strong infrastructure and provide superior service quali-
ty, which are among the material topics for Turkcell and our stakeholders. In
this respect, in addition to our contribution to domestic technological devel-
opments, we take our brand beyond the country borders by taking part in
international projects.
As Turkey’s largest data center operator, we are proud to offer our data
centers with world-class modern technology, which we manage with a fo-
cus on supporting domestic technology development, to the neighboring
countries as well as Turkey.
We operate our base stations, the endpoint of our network infrastructure
in terms of customer service, based on complying with values which go be-
yond local and global standards, in line with our emphasis on environmental
and public health.
We know that a reliable and fast net-
work with a large coverage is of great
importance in delivering a successful
customer experience. In this regard, we
continuously improve our infrastructure
through
investments, R&D activities
and with our technological solutions.
Today’s rapid technological develop-
ments require organizations to actively
follow the latest technological inno-
vations. As Turkcell, we also support
our country’s digital development by
implementing the latest infrastructure
solutions and developing domestic
technologies. In addition, we increase
our revenues with our ever-improving
service quality.
With the evolving user needs during
and after the pandemic, the demand
for quality and fast internet access has
increased. We have accelerated our
infrastructure investments in order to
meet this demand with Turkcell quali-
ty and to bring fiber internet access to
everywhere in our country. In 2022, we
made a significant contribution to the
infrastructure of our country by adding
887 thousand homepasses. With our
expanding fiber infrastructure, we are
increasing the number of fiber-con-
nected base stations and strengthen-
ing our mobile network.
Network traffic
(Internet)
increase (Rate in
bandwidth)12
38%
2019
76%
2020
8% 27%
2021
2022
Positive development
Negative development
Ongoing
12Total data volume: mobile and fixed
Strong Infrastructure
As part of our manufactured
capital, we continue to invest in
our infrastructure to add value
to the digital journey of our cus-
tomers and maintain offering
one of the fastest 4.5G services
in the world by building a strong
access network over our rich
frequency resources.
As the largest data center oper-
ator in Turkey, we operate with
vision of “Turkey’s data should
remain in Turkey,” and support
creation of added value for the
national economy by prioritiz-
ing domestic products primar-
in procuring our network
ily
equipment.
We have increased focus on our
fiber infrastructure investments
to deliver fast internet and high
service quality to more house-
holds. Meanwhile, we comply
with regulations and ensure high
service quality as an exemplary
corporate citizen.
In order to better manage the traffic on
our network, which grew significantly
due to increasing digital needs of our
customers, we take measures to in-
crease the efficiency of our network by
implementing new technologies and
making additional investments. Hence,
we ensure the high efficiency without
compromising on service quality even
during busy periods by maintaining ef-
ficient use of network resources.
Mobile Network Infrastructure
Our mobile network infrastructure con-
sists of technological hardware, of which
the coverage and capacity manage-
ment is designed with a smart and flex-
ible architecture, comprising our base
stations. Thanks to the coverage and
capacity solutions we provide with our
base stations, which form the basis of
our telecom business, we make contin-
uous improvements to increase the ac-
cessibility and durability of our services.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Base Stations
We conduct risk
assessment tests to ensure
the safety of our base
stations and our teams
working in the field. We
aim to minimize risk factors
by making improvement
actions for areas identified
as a result of these
assessments.
Having adopted an approach that
prioritizes public health, we operate
our base stations utilizing the latest
technologies and with a focus on com-
plying with national regulations and
international standards, and we also
prioritize preventing visual pollution
in the environment where they are
installed.
The base stations in our network are
well equipped to demonstrate all ca-
pabilities of the technology that we
provide to our customers. Meanwhile,
we manage environmental impacts of
our base stations, which can offer mul-
tiple technology support (singleRAN),
thanks to their more compact size and
lower energy consumption.
During our activities carried out at
base station sites for installations, it is
possible to encounter occupational
health and safety risks in relation to is-
sues including working at height, elec-
trical works, excavation works, and ve-
hicle use. We have working principles
and action plans prepared to prevent
these risks. In this context, until the end
of 2022, 4,839 sites were inspected,
risk analysis forms were prepared for
377 sites, and 93 sites were repaired
and renewed for a safer working
environment.
“Network
Moreover, by preparing
Technologies Geographical
Risk
Analysis Reports” on a regular basis,
we aim to ensure that our base sta-
tions operate efficiently, in an envi-
ronmentally friendly manner and in
accordance with health and safety
regulations considering the interac-
tion between human, environment and
telecommunications.
Towers
Global Tower, the leading tower company in Turkey and
one of our subsidiaries, operates in four countries. Global
Tower provides tower rental, tower build & sell, tower
maintenance and contract management services to tel-
ecom operators, radio and TV broadcasters, internet ser-
vice providers, energy companies and public institutions.
Global Tower has also started to provide solutions in the
field of satellite services to its customers in accordance
with its end-to-end services approach. The company cur-
rently offers closed circuit satellite services over two thou-
sand points from its own infrastructure with geographic
redundancy. The company aims to enrich its product and
service diversity by following industry trends.
Global Tower has a portfolio of 10,910 towers as of end of
2022, distributed as follows;
1
2
3
4
Turkey: 8,975
(owned: 4,560, right of use: 2,220,
contract management: 2,195)
Ukraine: 985 (owned)
Belarus: 835 (right of use)
TRNC: 115 (right of use)
Base Stations and Public Health
In order to prevent negative impact on public health, we operate our base stations below the electromagnetic field inten-
sity threshold levels as determined by the Information and Communication Technologies Authority (ICTA), the regulatory
body. These thresholds were determined by the ICTA with a prudent approach at lower and safer levels compared to the
exposure limits determined by the International Non-Ionizing Radiation Protection 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 20% per device. The maximum limits that a base station can be operated at in our country are much lower
(approximately 20%) compared to limits set for European Union countries.
As we are subject to ICTA and its regulations in terms of installation and inspection of base stations, information regarding
the power specifications, antenna type, location of the station and its surrounding is reported in detail to the ICTA, and
base stations can be installed in approved locations. Once a base station is activated, EMR (Electromagnetic Field) meas-
urement 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 Distance” deter-
mined based on the power output of the base station, while its electromagnetic field intensity, having been configured
accordingly, should be within the legal limits. Should any failure to comply with the relevant ICTA criteria be detected, the
base stations are dismantled, with significant sanctions or penalties imposed.
As Turkcell, we care about the impact of our network management operations on public health and implement much
stricter limits than the limits set by the relevant legal authorities. In 2022, there were no cases that resulted in legal penalties
against our Company with regards to the impact on health of our products and services.
Telco Cloud
We have grown 65% of our mobile
and fixed core network functions with
our Telco Cloud infrastructure through
the activities we have carried out to
date. On the back of transition to vir-
tualization, we achieve CAPEX and
OPEX efficiency with a shared cloud
infrastructure for network applica-
tions . Thus, we can better implement
the opportunities provided by devel-
oping cloud technologies to our net-
work. In 2022, we have also taken the
first step for the Container Platform
infrastructure in addition to our VM
(Virtual Machine) based Telco Cloud
infrastructure. With this infrastructure,
we have been able to integrate new
generation network functions into our
network easier and more flexibly, and
we have started 5G technology-com-
patible Telco Cloud transition.
Network virtualization rate
(%)
75%
Long Term
Target
%
1
4
%
8
1
%
0
6
%
1
5
%
5
6
2018
2019
2020
2021
2022
Multi Device Services
One Number and Multi-Device tech-
nologies, completed and put
into
practice by Turkcell for the first time
in Turkey, enable integration between
mobile devices other than mobile
phones. Thanks
technolo-
to
gy, which has started to be used by
Turkcell customers, One Number and
this
Multiple Device services make daily
life even easier. Having only one num-
ber, our customers can now leave their
phones at home and continue to make
voice and data communications with
other smart devices. As the first appli-
cation of this infrastructure, we started
to provide our customers with the use
of Apple-branded smart watches with
a Single Number.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
International
Roaming with 4G
Abroad
We started to provide the in-
ternational voice (VoLTE roa-
ming) experience over the 4.5G
network, which allows making
in
high-quality calls abroad,
cooperation with the US mobile
operator AT&T. Turkcell beca-
me the first operator in Turkey
to make this service available
to its customers in a short time.
Ipv6 Transformation
The number of devices requiring internet
connection is increasing continuously in
today’s world, and such devices are get-
ting highly diverse. Accordingly, the quan-
tity of IPv4 addresses required by such
devices to communicate on the internet
is also rising. In this case, it is foreseen that
the existing IPv4 address repository will
fail to meet newly emerging needs.
In order to solve this global issue, we have
completed IPv6 transformation efforts in
Turkcell network as part of our powerful
and sustainable network initiative and
started to move some of our traffic as
IPv6. With the IPv6 service, we aim to fur-
ther increase customer experience with
enhanced security and service quality
features.
Service Operations Center (SOC)
Turkcell’s Service Operations Center ac-
tively conducts analysis and carries out
operational activities 24/7 to keep in-
frastructure and service continuity at
the highest level. In order to maintain the
highest level of service quality for the cus-
tomer, we consider it critically important
to detect potential failures in the network
and services before they occur, take pro-
active steps, and provide permanent
solutions by taking preventive actions.
While the significance of instant responses
and fail-safe operations increases on a dai-
ly basis to ensure service continuity, the need
for human resources also intensifies across
our rapidly growing and complex network,
which accommodates an increasing num-
ber of managed equipment and services.
Zero Touch transformation, which will ena-
ble the full and end-to-end automation of
the network and service management, has
turned into a critical requirement to provide
services rapidly and ensure the economic
sustainability of diverse services delivered
by digital services providers.
As a result of the digitalization efforts, we
initiated in the past years, we substantially
automated service monitoring and failure
notification activities carried out for the
access network. In 2022, we continued our
activities as part of Zero Touch transforma-
tion with an increasing momentum, which
is among the focus areas of Network
Technologies. We organized hackathon
events to spread the use of automation
technologies in network operation, and
we contributed to the development of the
specialization of network engineers in the
field of digitalization through the internal
trainings we conducted. We aimed to in-
crease service continuity and efficiency by
adding mobile application solutions to our
network that will enable many operation-
al activities to be carried out much faster
and error-free. In addition to the benefits
they provide, these solutions also play an
important role in the spread of digitaliza-
tion culture.
Additionally, we are progressing con-
fidently in our aim to contribute to the
process of establishing the standards by
taking part in international platforms and
be one of the first operators achieving
the “Zero Touch” transformation across
the network. With this aim, we came to-
gether with many technology companies
around the world, which are in the posi-
tion of solution providers in this field, and
exchanged ideas in order to determine
the path to be followed and the methods
to be applied. We continued our activities
in ETSI (European Telecommunications
Standards
Institute) ZSM (Zero Touch
Network and Service Management)
study group also in 2022. After these stud-
ies, which allowed us to see our needs
more clearly, our process of evaluating
the returns to the proposal request we
published on a global scale in order to re-
ceive the most appropriate transforma-
tion consultancy service continues.
Investing In Domestic Equipment
In line with our mission to create value for
our country, we support the technological
development and digitalization process
of Turkey with our efforts on developing
domestic technology and equipment. By
implementing innovative and latest tech-
nologies in our infrastructure, which pro-
vide efficiency and which have not been
implemented in Turkey before, we make a
difference in the market.
With our approach of localization, we
carry out development projects in coop-
eration for the development of domestic
products that can provide uninterrupted
and high-quality service throughout the
country at the level reached by today’s
4.5G technology and continue our sup-
port. On the other hand, the fact that
the domestic product ecosystem has not
been fully developed in our country to
respond to the current 4.5G technology
qualifications and operational require-
ments yet, results in operators failing to
fulfill the obligations set in concession
agreements and therefore may result in
certain penalties from time to time.
For the development of the domestic
product ecosystem; we have started
using domestic 4.5G base stations and
domestic 4.5G antenna products engi-
neered by Aselsan and ULAK in our net-
work on a broad geographical area, for
which we provided specialized support
from the design phase to site tests. Thus,
we aim to spread the domestic prod-
uct experience to the overall country.
Moreover, as Turkcell, we took part in
the End-to-End Domestic and National
Communications Network (UUYM 5G)
Project, which was completed within the
scope of the development of domestic
and national 5G technologies, with a
large and well-equipped project team.
As part of the project, we provided sup-
port to HTK (Communication Technology
Cluster) companies that develop 5G New
Radio, Core Network, OSS, NFV, Radiolink
products, and ULAK Haberleşme A.Ş.,
with our knowhow and expertise on 5G,
as well as our laboratory and test equip-
ment facilities. We are currently running
5G Domestic Data, 5G Domestic Voice,
MANO and EMS Projects within the
scope of the 5G Core Domestic Products
Program, and in this context, we provide
knowhow and laboratory/test support
to domestic manufacturers in their de-
velopment processes. With these pro-
jects, we are the operator that provides
the most support to domestic and na-
tional studies in this field in Turkey.
the number of our customers who are
subscribed to 100 Mbps and over fiber
packages has increased 2 folds com-
pared to the previous year.
As the first operator to launch the SD-
WAN service, we offered it to our cor-
porate customers. We provided securi-
ty and access services simultaneously
as a single service. We created solu-
tions to reduce costs, while increasing
production capacities.
We
leverage our services such as
Enterprise Wi-Fi as part of managed
services to address the changing
needs of corporate and wholesale
customers. We continue to offer new-
est technologies such as our Wi-Fi
service, SMS integration, logging, and
Wi-Fi 6.
While we continue to expand our fiber
infrastructure, we also offer high quali-
ty internet service over our mobile net-
work with our Superbox solution which
was developed to bring fiber speed in-
ternet access with the Turkcell quality
to locations without fiber access. We
serve more than 650 thousand users
with our Superbox product, which pro-
vides same day installation service to
our customers.
In 2022, the number
of our customers who
are subscribed to
100 Mbps and over
fiber packages has
increased 2 folds
compared to the
previous year.
Strong Fiber Infrastructure
In 2022, the number of
our customers who are
subscribed to 100 Mbps
and over fiber packages
has increased 2 folds
compared to the previous
year.
By delivering rapid, high quality and
comprehensive services to our cus-
tomers, we maintain efforts to facili-
tate access to the internet, which has
become one of basic needs. Turkcell’s
fiber backbone is now available in all
81 cities of Turkey, however, it is our aim
to take real fiber internet to the homes
of our customers having initiated a fib-
er initiative. Accordingly, we expanded
our fiber infrastructure by adding 887
thousand homepasses with our invest-
ments in 2022.
We managed to deliver fiber internet
service to the homes in 28 cities with our
investments and carry on with efforts
to expand our coverage. We are aware
of the substantially increasing need for
internet and access to information due
to the pandemic and our responsibility
in this area and we continue our invest-
ments at a great pace. We develop our
fiber internet infrastructure, high speed
internet offerings and new technolog-
ical solutions. As Turkcell, we provide
fiber to the home access to households
at speeds of up to 10 Gbps via globally
accepted G-PON/XGS-PON technolo-
gy. This value is an upper limit and may
vary depending on variables such as
tariff type, fiber Internet usage den-
sity, and the maximum speed the mo-
dem can support. The average fixed
internet speed in Turkey is around 31.70
Mbps according to Speedtest Median
Country Speeds December 2022 data.
We provide faster internet connec-
tion to our customers with our strong
and expanding infrastructure. In 2022,
13 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.
Strong Spectrum
With the frequency usage that has the
largest spectrum, Turkcell has the larg-
est license allocation that can be used
in mobile communications services in
Turkey. With this spectrum of frequen-
cies, which is 34% and 68% broader than
that of other operators, our customers
take the advantage of the highest qual-
ity of services. Transformation of tech-
nologies used in the telecom industry as
a result of rapid technological growth,
high cost of infrastructure investments,
and the need to make maximum use of
long economic lives require us to build
a technology agnostic spectrum infra-
structure which could be adapted to de-
velopments in the technology.
Leveraging our broad spectrum, we aim
to maintain the high service quality, as
proven by our maximum 1.6 Gbps13 speed
that we offer with 4.5G technology, with
5G technology which is expected to be
introduced in the upcoming periods.
With the authorization of the Ministry of
Transport and Infrastructure, we started
commercial 5G transmission at Istanbul
Airport as part of our 5G efforts. We led
the establishment of the network that
the 3 operators provide service over the
common 5G infrastructure. In order to
experience high-speed internet using
the 5G service at Istanbul Airport, it is
necessary to have a 5G-enabled mo-
bile phone with 5G support and a 4.5G
compatible SIM card, and to initiate a
5G subscription by requesting 5G use
via SMS. Turkcell customers do not pay
any additional charge to experience
the 5G service. Our guests from abroad
can also use the 5G service at Istanbul
Airport. For this, all they need is to have
an operator with a 5G Roaming agree-
ment with Turkcell.
Apart from Istanbul Airport, Turkcell sub-
scribers have the privilege to experience
5G technology in more than 40 countries.
In order to experience 5G abroad, it is
necessary to be a 5G subscriber. Turkcell
customers do not pay an additional
charge to experience the 5G service,
they continue to be charged according
to their roaming packages and tariffs.
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POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Data Centers
As Turkey’s largest data center opera-
tor, we sustain our leading position in
accordance with our vision that Turkey’s
data should remain in Turkey. In 2022,
we started the construction of new
modules in both our Gebze and Temelli
data centers. We aim to strengthen our
leadership by
launching both mod-
ules in 2023. We have approximately
40 thousand square meters of white
space in our 8 data centers, 4 of which
are new generation. As the pioneer of
digital transformation in Turkey, we pro-
vide data storage and cloud services to
more than 3.000 corporate customers,
providing cost advantages and helping
them increase their operational effi-
ciency. By providing 24/7 uninterrupted
service we enable business continuity
and expert Turkcell engineers provide
remote assistance and solve problems
swiftly in extraordinary circumstances.
Our data center in Ankara, the largest
in Turkey with 12 thousand m2 of white
space, and our data centers in Izmir,
Gebze, and Çorlu, which became op-
erational in 2021, have been built with
resistance to earthquakes up to mag-
nitude of 9 and have systems rooms
that can withstand fire for 120 minutes.
In our data centers, we carry out var-
ious activities to establish and spread
environment friendly practices. Roof
type solar panels are installed at the
Ankara and Çorlu Data Center to pro-
duce approximately 700 thousand
kWh of electricity annually and to meet
our data centers energy consumption.
We prioritize cybersecurity in our data
centers and offer solutions through locally
developed technologies.
Our Ankara and Gebze data centers were awarded
the Operational Sustainability Gold certificate, valid
for 3 years, by the Uptime Institute, which inspects
data centers at the international level.
With our LEED (Leadership in Energy
and Environmental Design) Gold cer-
tified data centers, we aim to set a pi-
oneering example not only in terms of
the technology itself, but also of our
impact on the environment.
Furthermore, we attach utmost impor-
tance to the use of domestically man-
ufactured products in the construction
process of our data centers and in-
crease our domestic product rate with
data centers we have built.
Data Center
Data center domestic product usage rate
Gebze Data Center 35%
Izmir Data Center 50%
Ankara Data Center 65%
Europe Data Center 75%
Refarming
With the increasing 4.5G data
traffic, the need to increase the
spectrum resource to be used
in 4.5G technology has arisen.
In this direction, inter-technol-
ogy refarming studies are be-
ing planned and implemented.
With the city-based applica-
tions we have realized by pri-
oritizing the metropolises, we
have significantly
increased
the resources allocated to 4.5G
technology. In this way, besides
improving the customer expe-
rience, we provided additional
network capacity to meet the
increasing data usage needs.
High speed, high quality,
inclusive services and
access to information and
Internet for everyone
We continue to make invest-
ments and improvements on
our network and infrastructure
in line with the aim of providing
faster, more inclusive and qual-
ity services to our customers.
We maintain our high network
availability with our data ac-
cessibilityrate of 99.832%, which
we calculated based on traffic
loss in our mobile network, and
our low interruption rate of
0.285% in mobile voice calls.
In 2022, we reduced our carbon
emissions by installing 507 solar
panels on 15 portable solar
stations that we established under
our Portable Solar Field project in
2019, 2020, and 2021. These panels
generated 125 MWh of electricity.
We have increased the number of pro-
jects that received grants from Horizon
2020 and Horizon Europe R&D pro-
grams, funded by the European Union,
to 9, by signing different projects in the
international arena within the scope
of R&D studies, and we continued to
pursue these projects in 2022. With
these projects, we aim to implement
new generation network technologies
and innovative applications for verti-
cal sectors. Thus, we contribute to the
awareness of Turkcell and Turkey in the
field of 5G and pave the way for differ-
ent cooperation opportunities.
In addition to our R&D projects, our ac-
tivities on the creation and testing of 5G
standards on international platforms
continue. As Turkcell, our 5G studies
continue at NGMN (Next Generation
Mobile Networks), the members of
which consist of operators serving
more than 60% of mobile phone users
all over the world with more than 200
networks. The white paper that we
issued in collaboration with NGMN-
GTI in this context has been published
with the title “5G NETWORK SLICING
MAJOR CONCLUSIONS”. In this study,
we focused on the requirements and
related test results for end-to-end 5G
Network Slicing, especially for phone
operating systems (such as Android,
IOS…), as well as how the network can
prioritize them. As Turkcell, we are one
of the 3 operators that can provide test
results on 5G Network Slicing, together
with China Mobile and SK Telecom.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Intellectual Capital
Outputs
61%
Digital OTT services
revenue growth and
30%
digital services
total revenue
growth
7Incubated
company
partnerships
325
Patent
applications
965
R&D
employees
117 Billion
messages sent
through BiP
7Hospitals
provided with
technological
infrastructure
12.5 Million
customers
using the
chatbot
Performance Indicator
ISO 27001 Certification
Short Term
Target
Middle Term
Target
Long Term
Target
Annual
Target
Certification
Renewal
Certification
Renewal
2021
Performance
ISO 27001
Certification
Renewed
2022
Performance
ISO 27001
Certification
Renewed
Current Status
Towards Target
Positive development
Negative development
Ongoing
Ever-growing Intellectual Capital
Innovation and Entrepreneurship
We transform our corporate
culture with value
creating and innovative
solutions developed by
our R&D workforce of 965
employees and aim for
adoption of these solutions
by our stakeholders.
We believe that an innovative business
culture based on strong performance in
systems, processes and technology is
essential for our strategic initiatives and
business model to achieve the most ef-
ficient and effective results.
Our intellectual capital is based on
various fields such as innovation, en-
trepreneurship, brand power, respon-
sibility, products and services, which
reflect Turkcell’s unique expertise and
knowledge. It also is one of the driv-
ing forces of sustainable growth that
differentiates Turkcell. Combining our
superior digital competencies and
analytical capabilities with new tech-
nological developments such as IoT,
artificial intelligence and blockchain,
we 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 customers. We of-
fer our products to the right customer
at the right time and at the right price,
leveraging both our strong bond with
them and our advanced analytical
skills, which are among our core com-
petencies. On the back of our big data
analytics applications, we are able to
provide customized offers to around 42
million customers.
As Turkcell, while maintaining our
commitment to the principles of sus-
tainability, creativity and efficien-
cy in our research and development
activities, we aim to develop sus-
tainable production technologies by
moving forward in order to develop
products and production processes
that take into account the econom-
ic, environmental and social impacts
we cause as a result of these studies.
Accordingly, we are engaged in ac-
tivities aimed at reducing our carbon
footprint.
We continue to move forward by in-
creasing our competitive power with
all our human-oriented activities and
by taking a more active role in na-
tional and international markets with
our high value-added products and
services. While maintaining our image
of being the leading company in the
telecommunications industry, we also
contribute to society and the econo-
my. We continue our activities based
on the principle of creativity with our
965 R&D employees who aim to inte-
grate the innovative approach into
our corporate culture. We attach im-
portance to the opinions and sugges-
tions of all our stakeholders, support
their initiatives and show an encour-
aging approach so that they can im-
plement the ideas they create.
Our intellectual capital is based on
innovation,
various fields such as
entrepreneurship, brand power, re-
sponsibility, and our products and ser-
vices mainly, which reflect Turkcell’s
unique expertise and knowledge.
Owing to the value created by our
technological breakthroughs, we pro-
duce qualified solutions in both na-
tional and global markets. With the
strength of being Turkey’s Turkcell,
we are making expansions for many
sectors in line with our vision of “ser-
vice-oriented experience provider”.
In this context, we carry out joint R&D
programs and academic publications
with universities, incubation collabo-
rations with technopark companies,
national and international supported
projects and technical publications,
training and conference activities that
provide knowledge transfer.
It is of utmost importance to share the
know how about innovative technol-
ogy products and their usage areas
and know how gained in order to sup-
port research and technological de-
velopments in our country developed
with the
innovation culture within
Turkcell Teknoloji with the ecosystem.
In this respect, intensive mentoring
and training support is provided within
the scope of the production and use of
new technologies, the methodologies
and methods used in the production
process, R&D Center Management,
Intellectual and
Industrial Property
Rights, University, Incubation collabo-
rations and R&D studies with National
and International partnerships.
Number of R&D employees
2019
956
2020
1,153
2021
1,216
2022
965
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TURKCELL AT A GLANCE
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POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
In various R&D projects carried out
within Turkcell Teknoloji, we coop-
erate with universities and research
institutions. Project ideas and needs
are evaluated, and a common project
development target is set for those
that are compatible with the strate-
gic focus areas. For example, in 2022
studies on the energy efficiency of
Data Centers were conducted with
Özyeğin University. Currently, Turkcell
has multiple data centers and these
data centers have large-scale cooling
systems. Cooling systems are the most
critical component for continuity and
cause a significant amount of electric-
ity consumption. In this direction, we
have carried out studies to operate the
cooling systems more efficiently with
the support of our academicians. Tests
were carried out on data such as air
conditioning usage and temperature
decisions. As a result of this study, we
predict a 7% to 10% saving.
As Turkcell, in line with our strategy of
expanding the presence and scope of
our products and services in interna-
tional markets, we aim to develop our
new digital and ICT services on a glob-
al scale based on the latest technolo-
gies, market needs, and expand foot-
print to different regions.
The information and communication
sector has a dynamic and competitive
structure that requires widespread
infrastructure and technology invest-
ments. In Turkey, this sector has had to
finance the R&D investments of foreign
companies with the purchases made
from abroad over the years.
its
establishment,
Turkcell
Since
Teknoloji has provided import substi-
tution for a license fee of nearly TRY 2
billion. With strategic collaborations
and joint projects with our business
partners, foreign currency, much higher
than our own technology production
volume, remained in Turkey and Turkish
engineers were able to produce with
high added value.
As we prepare our patent applica-
tions to determine the areas where
we will make a difference in the prod-
ucts and services we have developed,
we examine the patent applications
and registered patents by technology
companies in the field we work, and
get information about competition and
trends. We continue to share our expe-
riences with universities, incubators,
SMEs, business partners and the entire
ecosystem in our patent application
processes.
Number of Cumulative National
Patent registrations
2019
2020
2021
2022
521
699
813
966
Number of National Patent
applications
2019
2020
2021
2022
511
557
565
325
Turkcell Teknoloji has a leading posi-
tion in its sector in Turkey with 3,564
national patent applications, 216 inter-
national patent applications and 966
registered patents completed since
2007. As Turkcell, we applied for 325
national patents in 2022.
Within the scope of our technologi-
cal transformation goal, we take an
active role in the TÜSİAD Technology
Standards
Standard-Based
Patents Task Force group to support
the
initiative to produce Standard-
Based Patents.
and
ITEA-
In order to enable the firms and
in our ecosystem to partici-
SMEs
pate
international platforms, we
in
take part in the Steering Committees
(Technology for European
of
Advancement) ve CELTIC-
(EUREKA
Cluster for next-generation communica-
tions) communities within EUREKA (The
European Audiovisual Observatory).
In projects that we participate under
the EUREKA umbrella, funding support
is assessed by authorities of TÜBİTAK-
TEYDEB (the Scientific and Technological
Research Council of Turkey – Directorate
of Technology and Innovation Support
Programs). In recent years, we have suc-
cessfully increased the number of pro-
ject applications as part of the Horizon
EUROPE main program and subprogram
that derive direct and large grant sup-
port from the European Commission, on
platforms offering a more competitive
and selective environment for proposing
project ideas. For example in I2PANEMA:
Smart
Equipment
Communication, Management and
Maintenance project that we have been
IoT-Based Port
Number of applications
to projects sponsored by
TÜBİTAK
17
2019
13
2020
10
2021
8
2022
Number of applications
to HORIZON projects
10
2019
15
2020
9
2021
10
2022
a stakeholder between 2018-2022, sus-
tainability and efficiency issues were
discussed to overcome the regional
and technical constraints of port areas.
Studies to supporting and ensure effi-
ciency of ports with the Internet of things
have been covered in terms of energy,
human resources and environmental
sustainability, technologies.
With the guidance of the Ministry of
Industry and Technology, we follow uni-
versity and startup company collabo-
ration opportunities to expand Turkey’s
R&D ecosystem, support startups and
eventually increase the weight of do-
mestic products and services. We pro-
vide technological support to startup
companies and increase their commu-
nication and recognition by including
them in the European Union projects
that we are involved in.
As an example of our collaboration with
startup companies, in 2022, we have
continued to work with a technopark
company to transfer real-time water
analysis over NB-IoT based commu-
nication modules which we started
in 2020. This project enables remote
analysis of drinking water resources in
the event of a disaster or refugee influx.
By integrating our 5G competencies to
the hardware production capabilities
of the startup company, we started to
obtain prototypes of the work for this
innovative and national product. We
carry on our efforts around measuring
the rate of sulphate in soil, a key param-
eter for soil fertility in particular.
Number of TÜBİTAK-
sponsored university
collaborations
4
2019
5
2020
5
2021
7
2022
Number of startup
company collaborations
9
2019
10
2020
11
2021
7
2022
Furthermore, we carried out energy
saving and predictive maintenance
studies. We are developing our own au-
toml platform, which is the most impor-
tant development point we have deter-
mined for our IOT analytics product.
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,
improve the technical
designed to
knowledge of our employees in accord-
ance with the qualifications required
by our sector, have been 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 ex-
pansion of technology studies by issuing
24 academic and 110 technical publica-
tions on national and international plat-
forms and 110 National/International
Presentations, Product Demonstrations,
and Lecturer Participations in 2022.
Value Created Through the Use of Open-Source Code
One of the most important issues we pay attention at Turkcell, both as users and developers, is open-source code
software. Open-source software is used to solve many different problems in terms of software architecture. We pre-
fer open-source code software as the building stone of high-volume infrastructural applications such as ONEDESK,
ULTIA, ONENT, YAP, and PARS, developed under the guidance of Turkcell GENS. In this way, besides creating value in
terms of license management and cost advantage, we contribute to the future of the software world by supporting
the development of high-quality secure software without provider restrictions. In addition, thanks to the “Open-
Source Code Guild” we established within Turkcell, the transfer of open-source software used in Turkcell between
teams, the sharing of “know-how” transfer is enabled. Moreover, with the “Jedi-Contributors” page we have estab-
lished on “Github”, some value-added codes developed inside Turkcell can also be opened to developers of the
outside world. This allows us to improve the motivation and market recognition of developers in Turkcell and help
Turkcell become one of the leading companies in the realm of technology. Also, in order to support and disseminate
open-source code sharing, we have created our Turkcell publication account, especially in the field of technology
and software, under the article publishing platform medium, and under this account, we share articles and support
in terms of code, text, and pictures of open-source code developments made under Turkcell.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Digital Service Portfolio
Digital services and solutions
While offering a richer value prop-
osition to the lives of our users with
our digital services and solutions, we
keep on developing our portfolio by
consistently and dynamically updat-
ing our products to address changing
user needs. All services we create call
infrastructures,
for diverse technical
capabilities and specializations. We
are in the life not only with our com-
munication services, but also with the
digital services we produce and de-
velop. Based on this strategy, we have
developed a wide range of digital ser-
vices domestically thanks to the more
than 1,000 engineers working for our
Company, and by establishing sep-
arate companies for some of these
services, we have taken an important
step towards our global competitive
positioning. BiP, lifebox, TV + and fizy
brands, which aim to stand out in the
global competitive arena, are posi-
tioned as separate companies, and as
part of this structure, these brands con-
duct their activities faster, stronger, and
with a greater focus within their own
organizational structures.
We continue to lead the digital trans-
formation need of society thanks to
dozens of services
including video
conferencing, email services, instant
messaging, TV, digital broadcasting,
cloud storage, ID solution, digital ad-
vertisement, game services, and music
platform, which have been completely
developed by Turkish engineers and
software developers. To make this
digital transformation accessible, we
use our advanced analytical capabil-
ities, and position the right service for
the right customer, thereby enhanc-
ing customer experience. Furthermore,
we aim to contribute to localization in
In 2022, we increased
total revenues of
Digital Services by
OTT service revenues
30%, and digital
by 61%.
Secure and Uninterrupted
Communication: BiP
BiP has approximately been down-
loaded over 100 million times and used
in 192 countries in the world since its
launch. Due to the personal data secu-
rity concerns in 2021, many users start-
ed to use more than one communica-
tion application.
In this context, BiP has become the
choice of millions of users with its fast
and secure messaging, quality voice
and video calls. With a satisfaction
score of 4.5 in the AppStore and 4.4
in the Google Play, it has ranked far
ahead of its competitors and received
almost full points from the users.
has
company
successfully
Our
reached millions of users in the interna-
tional market, particularly in countries
such as Iran, Indonesia, Bangladesh,
India, Pakistan, Malaysia, Jamaica,
Haiti, Caribbean, Central America, and
Asia Pacific. Our collaboration with
global operators such as Digicel has
expanded in Pakistan with Jazz and
continues to grow. In Turkey, BiP, our
communication platform that enables
Turkcell, Turk Telekom, and Vodafone
Pass users to communicate seamless-
ly without incurring charges on their
internet, is delivering superior technol-
ogy to allow its users to communicate
uninterruptedly globally.
BiP differentiates itself from the global
competition with features such as un-
saved messaging, voice and video call
up to 15 people, status, group and chat
transfer, emergency button, fast and
secure money transfer as fast as send-
ing a message, and instant translation.
In addition to its basic communication
capabilities, it also offers access to
many services that facilitate users’ lives
under the Discover tab.
technology by developing these solu-
tions. We design global brands and
technologies, which we digitally ex-
port to the world while contributing to
our country’s economy with self-suf-
ficient technology solutions. Making
these services, which create consider-
able employment for Turkish engineers,
world-class brands and thus generat-
ing globally beneficial outputs through
this achievement are among our major
priorities. We consider it our primary
goal to make a positive contribution to
the national economy and reputation
of our country by creating economic
value through national security, data
ownership, and by making use of our
own data.
Secure and Uninterrupted Video
Conference Experience: BiP Meet
With its powerful infrastructure and
easy-to-use video conferencing ser-
vice operating through our data-
centers in Turkey, BiP Meet allows users
to communicate with anywhere in the
world at any time. With BiP Meet, meet-
ings can be organized through web
browsers or easily with the desktop
and BiP Meet mobile application.
In addition to its easy-to-use and plain
design, BiP Meet offers a suitable solu-
tion for institutions with its features
such as operating in data centers in
Turkey and registering domain names
specific to corporations. Developed
especially according to the needs of
the sectors such as education, public
and health, BiP Meet can meet remote
call needs of enterprises of all sizes.
Open Room for Life with lifebox!
lifebox, which allows users to securely
store and share photos, videos, music
and documents, offers a secure and
easy platform to store memories, while
also offering a social experience.
lifebox appeals to users not only in
Turkey but all around the world.
Having functions beyond storage, life-
box stands out with its face and object
recognition, as well as the ability to
create automatic stories from the pho-
tos it chooses, and also ensures that
contact information is not lost in any
adverse situation by making a secure
backup of contacts. It is possible to
securely access documents archived
in various categories using fingerprint,
face recognition or password, and at
the same time, photos in lifebox can be
classified separately according to per-
son, object, date and location. Offering
experiences that make the lives of our
users easier, lifebox has reached more
than 1.8 million paid subscribers, and
more than 7.8 million total users with its
successful performance in 2022.
The enterprise storage solution lifebox
Business covers the required storage
needs for businesses of all sizes in a
secure and stable manner. Affordable
and all-purpose package structure
puts lifebox Business ahead of its local
and global competitors. Internal and
external file sharing, access from all
mobile and desktop devices, real-time
collaboration with the online office
feature, file versioning, person and file-
based reporting, and personal disk
and corporate common space usage
are just a few of the features that dif-
ferentiate lifebox Business as a cloud
storage solution for the business world.
lifebox
With
Transfer, operating
through data centers located in Turkey,
aims to provide an easy experience to
cover the fast file sharing needs with-
out requiring any subscription or fee.
You may check lifebox products, ser-
vices and more detailed information at
www.mylifebox.com, www.lifebox.biz
and www.lifeboxtransfer.com.
TV joy is everywhere: TV+
TV+, a first and unique service in terms
of TV watching experience in Turkey, is
a groundbreaking 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 any con-
tent, whenever and wherever they like.
In addition to TV+’s rich premium tech-
nical features providing ease of use,
has reinforced its archive with sports,
series, movies, documentaries, sports,
children’s programs and other content,
thus reinforcing loyalty of its users. La
Liga, Formula 1 and EuroLeague, that
are followed with a high interest of
sports fans, have also met with TV+
fans in 2022.
You may check TV+ prod-
ucts, services and more detailed infor-
mation at www.tvplus.com.tr
Number of Number of Paid
Subscribers of lifebox (thousands)
Number of New Users who backed up
their contacts with lifebox (million)
2020
910
2021
1,331
2022
1,836
2020
3.3
2021
4.3
2022
4.2
Number of IPTV
users (thousand)
720 871 1,082 1,282
2019
2022
2020
2021
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Number of fizy
contents (million)
32.6 33.5 35.4 43.0
2019
2022
2020
2021
In addition to our 4 brands, for which separate companies were
established, Yaani, YaaniMail and Dergilik have also been among
our users’ favorite applications.
Made available for corporate use at
the beginning of 2021, YaaniMail today
caters to over 1,500 organizations, and
as to individual users, it serves for 1.5
million users.
GAME+
Dijital Servisler A.Ş.’s new gaming
brand, GAME+, started in 2021 to offer
a brand-new experience via servers
located in Turkey through its partner-
ship with NVIDIA GEFORCE NOW, the
world’s most popular and technolog-
ically advanced cloud gaming plat-
form. The cloud gaming technology,
which allows for playing advanced
computer games without download-
ing, eliminates the need for powerful
hardware required for gaming. With
GAME+, playing the latest games is
now as easy and accessible as watch-
ing movies online. The requirements
such as expensive hardware and ad-
equate storage space are now avoid-
ed. GeForce NOW powered by GAME,
which has been widely appreciated
in Turkey, has the second highest user
base after the United States. GAME+ is
expanding its gaming library and rap-
idly increasing its subscriber base and
continues its growth.
Turkey’s digital music platform: fizy
fizy, one of the most popular and preferred
music platforms in Turkey, now delivers
a more customized music experience to
its customers with recommendation lists
along with a richer content archive. In
addition to enjoying an ad-free and un-
interrupted music experience as well as
listening to the songs with a high-quality
sound, fizy Premium users can also view
song lyrics and access their content of-
fline even without the Internet.
Apart from Premium, our customers
can enjoy music free of charge with our
model with advertising. As a differen-
tiation from competitor applications,
users can benefit from advantageous
discount offers thanks to brand col-
laborations and customer campaigns
exclusive to fizy. In 2022, couples and
families continued to enjoy fizy with
Duo and Family subscriptions launched
specifically for them in 2021.
Local E-Mail Service: YaaniMail
Launched for individual use in 2020 and
developed by Turkcell R&D engineers,
the local e-mail service YaaniMail has
been providing the most secure mail
service for organizations as well as in-
dividuals since early 2021. Offering free
service for individual subscribers with
the extension “@yaani.com”, the plat-
form provides a powerful alternative to
global competitors. YaaniMail Business
delivers setup services via cloud or
onsite as demanded by organizations.
Corporate customers of the platform,
which serves users with advanced se-
curity measures, can use their own do-
main names.
Thanks to this service available through
iOS, Android, Web and Corporate
Management Panel applications and
individual
suitable for corporate or
needs, features
including calendar,
contacts, and tasks can be easily used.
Standing out with its user-friendly ac-
cess offering and lean design, YaaniMail
delivers tools most needed by corpo-
rate customers such as filtering, legal
text, waiver, signature in a reliable, sim-
ple way and free of charge. As it oper-
ates compatibly with many e-mail plat-
forms, users can easily shift to YaaniMail
service.
İşte Suit
Chatbot
İşte Suit, a solution developed by
Turkcell engineers that provides users
with e-mail, file management, office
applications, and video conferencing
solutions that corporate firms need
from a single point of service.
By merging our existing YaaniMail
Corporate,
Lifebox Business, and
BiPMeet services, we have launched
the İşte Suit product for sale with a sin-
gle invoice to be issued to our custom-
ers in July 2022.
Environment-friendly
and practical solutions
through digitalization
Digital signature at home
This innovative solution devel-
oped by Turkcell engineers ena-
bles customers to accelerate the
work of installation teams by 30%
through the use of digital signa-
ture in their subscription process-
es of fiber, DSL, Superbox and
TV+. This has also led to 1,400 tons
of documents being digitalized
annually, thereby protecting the
environment. With the application
with a Turkey-wide coverage, 70
million digital signature is expect-
ed to be appended.
Smart Legal Documentation
Automation
In addition to the solutions we offer
to customers, we also employ a smart
documentation solution for our own
legal function which has an intensive
paper usage. With this project, we
have reduced manual transactions by
digitizing (automatic assignment of
170,000 documents) the responses to
legal document requests from the au-
thorities and saved on paper usage.
Thus, labor efficiency was achieved
through prevention of errors while
conducting tasks, and the automation
of manually implemented assignments
(25% speed/time saving) and que-
ry functions via robotic processes (IP
queries 15% speed/time).
Better customer
experience through
artificial intelligence
We are enhancing and deve-
loping our products and servi-
ces with our AI applications. By
utilizing AI, which facilitates the
personalization of user expe-
riences and makes them more
effective, we provide services
both in our applications and
customer services.
In 2020, we committed to using
AI, as a powerful tool,
in a
responsible and ethical man-
ner, and established seven key
principles that we will adhere
to. As such, we became the first
company in Turkey to publish
AI Principles. Furthermore, our
Human Rights Policy published
at the beginning of 2021 aims to
contribute to the SDGs by ac-
ting based on human dignity,
fundamental rights and free-
doms in the technologies, inclu-
ding AI technology, that we de-
velop. You can find information
about our AI Principles on our
“digital responsibility” page on
our website.
Our Analytics Solutions team
performs post-analyses and
provides internal insights for
Turkcell products, services,
tariffs, and campaigns, and
conducts predictive modeling
and segmentation studies to
generate target audiences
for action by business units. By
supporting our business units
with analytical trend models
to match the tariffs, products,
and services we offer to the
right customers, we contribute
to the growth of our company’s
revenue and play a role in
increasing customer satisfaction
by connecting customers with
the right offers.
Celly (chatbot) is an artificial intelligence
engined self-service help bot embed-
ded in the “Turkcell Application”, the
gateway to digital of our company and
developed 100% by Turkcell engineers.
Celly is a
valuable
“Mobile Asset”
for Turkcell.
The Turkcell Celly name was registered
within the scope of brand studies and
was offered to our customers by being
carried to advertising communications
in written and visual channels. Turkcell
Celly, the AI assistant, continues to
support our customers in the Turkcell
Application to provide services on more
than 180 different topics, from billing
transactions to international settings,
from package information to gifts.
Using our analytical competencies,
we provide proactive information on
issues that our customers may need.
For example, we provide information
when their package is about to expire
or when the contract expiry, and we
provide guidance on the chatbot to
complete the transactions.
In 2022, 12.5 million of our customers car-
ried out 60.1 million chats with Celly, with
an average of 97% of these transac-
tions being completed on the first con-
tact. Utilizing our analytics capabilities,
we facilitated 701,000 package sales
through proactive communications, re-
sulting from Turkcell Celly’s direction. As
Turkcell, we will continue to bring speed
and ease to our customers’ lives by
transforming the capabilities of Turkcell
Celly through the power of technology,
both now and in the future.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
In the last period, we integrated our chatbot solution into our applications such as TV+ and Platinum
in addition to the previous integrations with our other digital applications such as Turkcell, Bip, Game+,
lifebox, Dergilik, and fizy. In addition, we started to support our Superonline customers with scenarios
specific to the fixed world through the Turkcell application. In 2022, we turned our chatbot solution, whi-
ch we developed internally, into an end-to-end platform and a product that will also provide external
services. We also realized our first sale and integration outside of Turkcell on Arnavutköy Municipality
website. We aim to expand our solution in different industries with our sectoral bot studies.
Trained through “UNDP Gender-Responsive Communication Guide”, our chatbot avoids using gen-
der-biased language.
Voice analytics -
Turkcell AI voice
We continue to integrate our
artificial intelligence voice, de-
veloped internally by Turkcell
engineers, into Turkcell’s digital
products. In the Dergilik produ-
ct, we voice the daily articles
and online trainings prepared
by our Academy team using our
artificial intelligence voice. We
also use our artificial intelligen-
ce voice effectively to establish
personalized
communication
with our employees, such as
celebrating Mother’s Day and
birthday greetings.
In our call center, our artificial
intelligence voice serves our
customers at many points as
the voice of the digital assistant.
We contribute to the action of
bringing our customers toget-
her with the right package at
the right time, by automatically
vocalizing the package readin-
gs with our artificial intelligence
voice in the sections where we
offer packages to the custo-
mers through the call center.
We improve the experience of
our customers by responding
to a daily average of 120 thou-
sand call center voice requests.
Image Processing Services & Solutions
The FOYA Digital Verification application, another excellent example deve-
loped by Turkcell engineers as part of their artificial intelligence research,
provides services such as fraud detection in identity documents and digital
verification through image processing, audio processing, and machine le-
arning methods.
In the digital world, many organizations now require remote video commu-
nication with their customers, making digital platform customer identity ve-
rification an inevitable control. In FOYA digital verification processes, Turkcell
engineers use SIMA face recognition services, STT (speech to text) services
that allow for voice approval from the customer, and OPTIC OCR (Optical
Character Recognition) services that accurately read identity card infor-
mation. The FOYA Digital Verification application, with its different services
and capabilities, can be quickly integrated into IOS and Android platforms
through SDK software.
The OPTIC OCR solution, actively used in Turkcell’s digital verification proces-
ses, has been integrated into the Lifebox application, allowing our customers
to easily copy all text in their photos stored in their Lifebox storage area.
In addition to cloud-based services, there are also pilot projects utilizing our
image processing solutions on edge devices. At the Elazığ Fethi Sekin City
Hospital, the SIMA face verification solution was integrated to operate on
edge devices in order to prevent different individuals from giving blood in pla-
ce of others in the process of obtaining consent forms. This enables face verifi-
cation controls to be carried out without opening hospital data to the internet.
AI based recommendation engine
In order to understand and meet our customers’ needs, we make use of the
recommendation engine infrastructure developed by Turkcell engineers whi-
ch targets to increase customized user experience in our applications and
communication channels. We provide our customers with content such as su-
ggestions, product similarities and personalized product lists in fizy, TV+ and
Dergilik applications customized with the support of artificial intelligence.
Standard. We retain our certification by
constantly improving our information
security maturity and by being audited
annually by independent auditors.
While designing and
implementing
cyber security processes and applica-
tions, reference is made to compliance
with relevant legal regulations, govern-
ance principles such as ITIL and COBIT,
and good practice practices such as
NIST, CIS, OWASP and MITER. Legal reg-
ulations such as the Presidency’s Digital
Transformation Office Information and
Communication Security Guide (BIGR),
KVKK Personal Data Protection Law,
Global Data Protection Regulation
(GDPR), ICTA and CMB regulations are
included in the legal compliance port-
folio followed in the cybersecurity pro-
cesses. While the implemented works
are subject to internal audit processes
for service and process control, they
are also subject to ISO 9001, ISO 20000,
ISO 22301, ISO 27001 system standards,
PCI-DSS Payment Card Industry Data
Security Standard and SOX New York
Stock Exchange Sarbanes – Oxley ex-
ternal audits.
Digital Security and Wellbeing
RESK Committees according to their
priorities.
including:
Cyber security processes through-
out the operations are managed
in accordance with the principles
regulated by 10 different corporate
policies,
in particular the
Information Security Policy, which
came into force with the approval of
our Board of Directors, Information
Security Management Systems Policy,
Information Security Organization
Policy, Information Security Incident
and Vulnerability Management Policy,
Information Security Cryptology Policy,
Information Security Access Policy,
Information Security Operation Policy,
Information Security Communication
Information Security System
Policy,
Security
Policy and
Business Management Policy. In order
to ensure the reliability of these pro-
cesses, Turkcell received the ISO 27001
Information Security System Standard
certificate in 2008, becoming the first
telecom operator in Turkey to hold this
certificate. Turkcell also holds ISO 27017
Information Security System
Cloud
Information
We aim to create a unique
experience for our customers
with the technologies
and products that we
continuously increase the
diversity of in parallel with
the developing technologies
and stakeholder
expectations.
Digital security and wellbeing are the
two important components of this ex-
perience, which are manifested in two
main areas of work in our operations.
The first is the management of cyber
security and information privacy risks
in our infrastructure, technology, prod-
ucts and services, and the second is
the cyber security and digital wellbe-
ing services we offer to our customers.
With the expansion of
information
technologies and digital services, cy-
ber security risks have started to take
an important place in our lives. With
the pandemic process, remote work
and distance education became
widespread in our country similar to all
over the world, IoT services and devic-
es have started to be widely used, ran-
somware attacks, cloud services and
customers have increased, hence the
importance of cybersecurity efforts
has increased even more.
Cybersecurity has taken its place as
an important component in Turkcell’s
business strategies. Cybersecurity and
data privacy risks, which are evaluated
in 11 different profiles within the scope of
corporate risk management, are mon-
itored during the activities and oper-
ations regarding all strategic business
focuses. Each developed service also
considers cybersecurity as a compo-
nent among its outputs. Cybersecurity-
related risks are managed by RISK or
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Digital Business Services
The Digital Business
Services combines Turkcell’s
telecom service provider
strategy with the “Digital
Transformation Business
Partner” strategy for
corporate customers.
With the digital business services,
we develop our business model to
address the needs of all industries,
including health, education, produc-
tion, retail, transportation, logistics,
finance, energy and other similar fields
to implement value adding projects
through horizontal and vertical
solutions. We contribute to Turkey’s
digital economy by providing one-
stop end-to-end digital solutions to
organizations. As a result, we realize
projects with high value proposition
that provide cost savings and revenue
increase.
In line with our vision, we have imple-
mented over 2,800 tailor-made man-
aged services and system integration
projects, and we continue to manage
them. In these projects, we analyze
the needs of our customers from every
sector and provide the right solution,
and with our project management
team, we implement many solutions
and services in accordance with our
customers’ business processes, in-
cluding new generation technologies
such as fixed access, network, cyber
security, data center and cloud servic-
es, system integration and managed
services, IoT, big data, business appli-
cations, artificial intelligence etc. In
implementing our projects, we benefit
from both our internal resources, prod-
ucts, processes and technologies, and
the power of our business partners in
the ecosystem, who we have identified
as experts in their fields, and we man-
age projects with high value proposi-
tion end-to-end from one source.
In addition to a strong mobile network,
and end-to-end fiber infrastructure
of up to 59 thousand kilometers that
enables us to provide high-quality
service, we have a total of 8 data
centers, 4 of which are new genera-
tion, with Tier-3 Design and Operation
Sustainability certificates obtained
from the international certification
body Uptime Institute. With Turkcell
During the reporting period, no data
breach or personal data (PII) privacy
breach occurred due to cyber security
vulnerability, and accordingly, no legal
sanctions or fines were imposed on the
company.
Privacy and
Security
line with
identity as the
its
In
responsible
operator,
digital
Turkcell pays utmost attention to
the protection of customer infor-
infor-
mation privacy. Customer
mation privacy studies, which are
carried out in compliance with the
relevant regulations in addition to
laws such as KVKK and GDPR, are
managed within this scope when
they include physical business pro-
cesses where personal information
is processed beyond cyber secu-
rity. Our third-party business part-
ners are also requested to manage
personal data in line with the same
principles as Turkcell.
Our customers are informed about
our privacy and security policies
of their personal information, and
they reach us through our compla-
int channels when they have dou-
bts or problems.
Turkcell data privacy
and security policies are availab-
le on our corporate website.
Cybersecurity Directorate
is respon-
sible for cybersecurity management
throughout the company. The directo-
rate is one of the largest cybersecurity
teams of Turkey with more than 150 spe-
cialized team members. The conducted
studies and obtained results are pre-
sented to the senior management and
relevant units during periodical meet-
ings held by various committees and
teams. The monthly CXO security man-
agers meeting, the annual ISO 27001 re-
vision meeting, the cybersecurity meet-
ing which brings together Technology
Executive Vice Presidents and Directors
every two months and quarterly, and
the
Information Security Committee
meetings which bring together NT CXO
and cybersecurity Directors and execu-
tives, are among the meetings to share
information in this field.
The Security Operations Center, which
operates 24/7 within the Cyber Security
Directorate, monitors the attacks 24/7
together with the IoT and forensic labo-
ratories, and takes precautions against
possible threats. Our Bozok Threat
Intelligence platform, which is integrat-
ed with the Security Operations Center,
provides our customers with information
about threats and risks as a cyber secu-
rity protection layer. We provide pene-
tration testing and vulnerability analysis
services to our customers with new tools
and methods so that organizations can
identify their cyber security needs, while
we conduct security vulnerability scans
and penetration tests of important insti-
tutions. We also enrich Turkcell’s Cyber
Security product and service portfolio
Three key strategic focuses are followed in cybersecurity activities:
1
2
3
Developing cyber resilience through innovative new technology
investments, existing technology improvements, processes,
standards, digitalization, communication, awareness, training,
competence development activities within the scope of services
provided by Turkcell and Group companies
Developing domestic ecosystem and integration with the
localization of existing and new products
Increasing revenues of cybersecurity products and services in
individual, corporate and wholesale customer portfolios
with cloud-based security solutions run-
ning in Turkcell Data Centers. As Turkcell,
we contribute to the provision of security
with the investments we make in the field
of cyber security and data privacy, and
the services we provide for mobile ser-
vice providers and institutions and indi-
viduals benefiting from mobility services.
With our digital security service, to pro-
tect thousands of our active customers
from phishing, malware, etc., we prevent
their access to any malicious addresses
so that they can be protected against
threats, as well as inform the users of
past password leaks and warn them
about new phishing attempts by SMS
and e-mail. All our corporate and in-
dividual mobile customers can benefit
from this service, which we offer to pre-
vent fraud or to protect the device and
personal data used.
Digital Wellbeing
The pre-condition for protecting
oneself from the security risks
and actions of malicious indivi-
duals when using the internet is
to possess a certain level of digital
literacy, privacy perception, and
confidentiality. However, some
users who do not possess digi-
tal literacy or those in vulnerable
situations (such as children and
elderly users) may be more sus-
ceptible in this regard. In this re-
gard, we first create various secu-
rity and content filters under the
control of parents to ensure that
children and young people stay
away from
inappropriate con-
tent on our services. In addition,
we aim to increase safe internet
experiences by conducting infor-
mative campaigns to increase the
knowledge and awareness of our
stakeholders. In this context, we
created a game content aimed
at increasing children’s aware-
ness during the reporting period.
We aim for our educational game
content to be a guide for children
on the risks of the digital world
and awareness of digital footp-
rints, which will be launched in the
first months of 2023.
As a member of the Turkish Cybersecurity
Cluster community, we continue bringing
together the public, private sector and
the academy, and working for contribut-
ing to the development of the domestic
and national cyber security ecosystem,
by increasing cyber security awareness
and cooperation.
Several practices have been realized to
improve cyber security awareness, ex-
perience and knowledge of employees.
For example, cyber security trainings are
provided to all Group employees in tech-
nical and non-technical areas, custom-
ized for different employee groups every
year. The cybersecurity performance in-
centive practices include TLife Cyber Star
Application, Security Reflex feedbacks,
Security Champion scorecard scoring of
technology teams that make a positive
contribution in the field of security, and
the Security Scorecard based on cy-
ber security performance of employees.
Meanwhile, award-winning cyber secu-
rity studies such as Unibounty, Bugbounty,
Openbounty and CTF have been carried
out with the participation of various com-
munities
including Turkcell employees,
security experts and university students.
Turkcell security experts take part as lec-
turers and trainers in many national and
international conferences and events in
accordance with their specializations.
Unibounty
While the damage caused by cyber at-
tacks is increasing day by day, the attacks
targeting businesses and individuals of all
sizes cause both financial and data losses.
In the “Unibounty” project, with the partic-
ipation of university students, we organ-
ized a vulnerability detection program in
the field of cyber security in Turkcell appli-
cations. Over 1,000 interactions were car-
ried out in the program with the participa-
tion of students from 11 different universities.
On the other hand, our company
has actively participated in stan-
dardization (IEEE SA P2089) deve-
loped within the IEEE SA regarding
age-appropriate digital services
and has also started to work on
the suitability of its products and
services in this regard.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Cloud services, we position the entire
information technology infrastructure
of institutions in Turkcell data centers,
thus reducing costs and providing a
more flexible infrastructure.
In the field of cyber security, thanks to
the 3 key components of cyber security
against constantly changing, develop-
ing and increasing cyber threats, we
become an end-to-end Cyber Security
Service provider of institutions: our
expert staff, up-to-date technology
creations, and the diplomacy and pro-
cesses we have established with the
defense groups we are members of at
home and abroad.
Through meaningful analyzes on the
dynamic and real data we have ob-
tained with our big data services; we
support our customers’ strategic deci-
sion-making processes and increase
their profitability and productivity. In
the digital transformation journey of
organizations, we deliver all needs
for the digitalization of the business
processes of corporations with Turkcell
digital business applications.
As an integrator that provides and
operates all technologically need-
ed solutions in city hospitals in the
field of health, we are the leader in
the public-private partnership (PPP)
market in terms of the number of
hospitals we undertake. We actively
operate at 7 city hospitals including
Yozgat, Adana, Eskişehir, Elâzığ, Bursa,
Başakşehir and Tekirdağ hospitals.
The entire technology infrastructure
of these hospitals from hardware
to software, systems to operations
are managed by Turkcell. Moreover,
Turkcell set up the infrastructure of 2
field hospitals which were established
in a short period during the pandem-
ic. Our Lifecare product, which we
developed in the remote health field,
has passed the KTS accreditation of
the Ministry of Health and has become
able to respond to opportunities in
this field. Negotiations with leading
health groups in Turkey were initiated,
paving the way for new opportunities.
In addition to all these operations, we
are continuing our preparations to
put forward the Turkcell difference in
the private hospital market as well as
in the City Hospitals, by accelerating
our work on a Hospital Information
Management System (HIMS) soft-
ware that can serve Private hospital
processes.
Moreover, in our business partnership
ecosystem, we continue to grow our
ecosystem qualitatively by working
with our subcontractors, business/
product development partners and
sales partners with a win & win focus.
We are also expanding the solution
sets we offer to our customers in terms
of technical competence and project
diversity day by day through our busi-
ness partnerships with global suppliers.
We developed the Turkcell ML (Machine
Learning) platform in order to adapt
to technological developments and to
make scenario models of high-volume
data and machine learning compe-
tencies with high performance and
high accuracy. Thanks to this platform,
we have saved over TRY 20 million.
Moreover, we can share the list of
customers with overdue debts over a
certain amount by activating the block-
chain-based “Inter-Operator Blacklist”
system. With this system, which is used
jointly by the operators, we help the op-
erators reduce their customer-related
risks through information sharing.
Within the scope of RPA (Robotic
Process Automation) technology,
installation and infrastructure works
were carried out within Turkcell, and 145
processes were carried out using RPA in
order to automate manual processes.
Turkey’s New Generation Payment
Platform: Paycell
Paycell continues to increase its pene-
tration on the back of its easy-to-use
and secure payment solutions, and
stands out as a technology-oriented
techfin that manages all its processes
with end-to-end automatized struc-
tures thanks to its up-to-date and ro-
bust technological infrastructure. Having
adopted an agile working model to dif-
ferentiate itself within the rapidly chang-
ing dynamics of the techfin ecosystem,
Paycell manages its business processes
more efficiently, while increasing the val-
ue of the products and services offered.
This approach also allows fast and easy
adoption of advanced technologies.
Paycell provides value-added data an-
alytics models not only with respect to
its infrastructure, but also with respect to
analytical solutions in order to provide
better and more sustainable services
both to the consumer segment and the
business partners.
Turkcell and Mobility
As of 29 October 2022, Togg started the mass production of the C-segment
SUV, the first innately electric, connected smart device at the Gemlik Togg
Technology Campus. Togg defines the products it will offer to the market as
“smart devices” rather than automobiles. In line with this approach, Togg is cre-
ating an ecosystem shaped around electric vehicles, which will provide the mo-
bility experience of the future with cooperation agreements made in different
fields, particularly in technology, e-commerce and software. The services deve-
loped by Turkcell are also aimed to enrich the user experience in this ecosystem.
For this purpose, a strategic cooperation agreement was signed with Paycell
in 2022 in order to integrate innovative payment systems and digital financial
solutions in the mobility ecosystem. With our Turkcell Artificial Intelligence team,
we are conducting the development of In-Vehicle Face Detection, Recognition
and Analysis System of the TOGG domestic automobile initiative. In this context,
the integration of the artificial intelligence solutions we have developed on the
devices that will work in the vehicle, and the development of car-specific arti-
ficial intelligence models are ongoing.
Through Turkcell ML (Machine Learning), we saved TRY
20 million.
We make sense of big
data with our artificial
intelligence-based
analytical capabilities
and strengthen the
products and services
we offer.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Social Capital
Outputs
37.5
Million Mobile
Customers
2.9
Million Fixed
Customers
12 min.
Response Time
Performance Indicator
Increasing the number of students
reached through the Turkcell Whiz
Kids Project
Increasing the number of start-ups
worked with through a collaborative
business model
Short Term
Target
Middle
Term Target
Long Term Target
2021
Performance
2022
Performance
Current Status
Towards Target
150,000
250,000
500,000
100,000
110,000
30
40
-
35
36
Positive development
Negative development
Ongoing
Brand and Responsibility
We increase the capacity and strength
of our superior digital services by con-
stantly researching the latest hard-
ware and software technology trends
and equivalents at the global level.
This allows us to advance the Turkcell
brand through new features that fa-
cilitate our customers’ lives. In every
field we work in, we strive towards re-
moving digital barriers and increasing
access at every point where we touch
society, and we continue to support
the development of technology and
communication. We are glad to note
that our products and services across
diverse fields have grown the Turkcell
brand without losing technology focus.
The basis of this understanding that
Turkcell acts on is the responsibility
towards all our stakeholders includ-
ing customers, employees, suppliers,
shareholders, public, dealers, non-
governmental organizations, universi-
ties, and the media. In this context, our
policies that we share publicly are as
follows:
HUMAN RIGHTS POLICY
ENVIRONMENTAL POLICY
We are committed to fulfill our du-
ties by adopting an attitude emb-
racing fundamental rights and fre-
edoms, contributing to the creation
of a decent work environment ho-
noring human dignity, and ensuring
compliance with national and in-
ternational legislation on work life.
Turkcell aims to contribute to the
long-term
economy and ensure
environmental sustainability, with
an awareness of environmental
impact throughout the value chain,
by improving awareness of circular
economy.
QUALITY POLICY
CUSTOMER SATISFACTION
POLICY
We continuously improve our pro-
cesses and implement an effective
quality management system.
We solve customer requests with
an open, transparent, swift, and
customer-oriented approach.
INFORMATION SECURITY
POLICY
ANTI-BRIBERY AND
CORRUPTİON POLICY
You may access the policies
that we implement to set the highest
standards as Turkey’s leading telecom-
munication company on turkcell.com.tr.
At Turkcell, we ensure the security
of information in accordance with
business needs, laws, and legal
regulations.
We consider that carrying out our
activities fairly, honestly and in ac-
cordance with legal and ethical co-
des a necessity.
DONATIONS POLICY
Through our Company and its subsidiaries, by authorization from the Board
of Directors and within the annual donation limit determined in the General
Assembly meeting; donations are made to organizations, associations and
foundations which undertake projects related to education, sports, culture
and arts, environment, health, restoration of historical buildings and arti-
facts, humanitarian aid, involving the disabled in society, entrepreneurship,
technology and similar studies for public benefit.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Our brand
Turkcell in Communication
Turkcell continues to
empower its presence
by transforming into an
ecosystem brand as part
of its digital operator
journey on which Turkcell
embarked as one of
the strongest brands of
Turkey, by always putting
the customers at the
center and investing in
technology.
its
Befitting
leadership of the new
world, Turkcell aims to touch every
part of its customers’ lives by bringing
together its superior technological in-
frastructure and quality with the prod-
ucts and services it offers that make a
difference. While offering an easier,
more entertaining, more secure and
more privileged lifestyle focused on
human and environment to our cus-
tomers, Turkcell also allows them to
enjoy the difference of “excellent ser-
vice” through customized, consistent
and simple experiences delivered by
Turkcell’s technological superiority.
Acting with the responsibility of being
a leading brand, we set an example
to all other companies working to-
wards helping our country achieve its
economic goals. We also offer various
solutions to companies and small en-
terprises with our corporate business.
Turkcell transformed into an ecosys-
tem brand with steps taken long ago
in the changing and digitalizing world,
and on this digital journey we lead, we
place both our individual and corpo-
rate customers in our focus and con-
tinue to serve with our products and
services to provide an easy and com-
fortable experience.
As an ecosystem brand, our campaign
motto “Make the World Yours” con-
tinues to emphasize the fact that we
can touch different aspects of our cus-
tomers’ lives and offer solutions with a
wide range of digital brands. With our
ecosystem platform videos, we contin-
ue to describe our services such as the
electronic shopping platform “Pasaj”
and the world of privileges “Platinum”,
“Paycell” and work with our technology
to facilitate the lives of our customers.
Turkcell is a brand that always places
its customer at the center and under-
stands their insight, develops innovative
setups, and implements them without
compromising on quality, through a
well-thought and detailed customer
experience. In this period of rapid soci-
etal change and changing needs, we
continue to connect our customers to
life with our strong reception.
As one of the most loved brands of
Turkey, we celebrated special days
with successful advert films to join the
enthusiasm of our country.
Finally, we launched our new commu-
nication platform which we call “Digital
Stories of Turkey” where we will tell our
customers’ stories with our wide cover-
age and high internet speed.
We will continue to tell these stories
with dear Doğu Demirkol, our brand
ambassador, the new generation co-
median of Turkey who is candid, real
and “one of us”.
Strong Sales Channels and
Our Services
Our Sales Channel Structure
As Turkey’s
leading communication
and technology company, we continue
to offer all tariffs, campaigns, devic-
es, and services to our customers. We
continue to provide customer-focused
services and develop solutions through
Turkcell stores, alternative sales chan-
nels, online channel, Turkcell mobile
application, Pasaj application, Fiber
and DSL solution centers, and corpo-
rate sales channels.
We make our
integrated Turkcell
solutions available to our customers
through all our sales channels, and
work to deliver premium quality servic-
es at all points consistently.
Our Retail Channel
With 1,108 Turkcell Stores, which we have
transformed into a chain of digital expe-
rience, and 4,144 digital sales points, we
make our products and services availa-
ble wherever needed by the customers
with superior Turkcell service quality. In
order to increase our market share and
customer loyalty with our smart offer
management model targeting existing
customers and new customer acquisi-
tion, we make offers that are rich in con-
tent. These offers address the needs of
our customers at different price levels.
We consistently ensure that our custom-
ers can access the same offers across all
channels.
We continue organizing our customer
campaigns such as “Yellow Days, Flexing
Limits, and Product of the Month” an-
nually. This way, we aim to maintain our
customer traffic at the highest level by
making advantageous offers to our cus-
tomers on a large number of product
groups at different times.
In line with our retail channel
deepening strategy, we focus
on communication, traffic,
sales, procurement, loyalty,
digital and delivery concepts
and keep shaping our
investments accordingly.
Continuing
technology
the
and experience transforma-
tion in our stores, as of May
2022 we have transformed
at least 1 store in every city
of Turkey, and more than 1 in
large cities, 103 stores in total,
to the Disabled-Friendly Store
concept. We provided all our
hearing, visual, and bodily
handicapped customers with
equal and accessible service
with our in-store applications.
“Refurbished Device Sales”, which we had started as of July 2021 to
bring devices with unexpired useful life back to the economy as per our
sustainable environment approach, is continuing at full speed.
We have been helping to decrease unregistered device sales and device im-
ports by making refurbished devices available to our customers through cash
and contracted offers via all Turkcell stores and the online channel, as well as
mitigating the environmental impacts of device trade. In the year 2022, through
Turkcell Stores and cash collection over Pasaj, 23.7 thousand old devices were
collected from customers, and 5.7 thousand through EGYG replacement pro-
gram, for a total of 29.4 thousand. 2.2 thousand refurbished devices were sold.
We expect this business, which we have currently only started in the catego-
ry of smart phones, to grow in different categories with support from related
organizations and regulations and therefore contribute to sustainability in
the technology world in all categories. Trainings with the support of Turkcell
Academy were designed to be held in Turkcell Stores in the fields of energy ef-
ficiency, savings and sustainability, and shared with all ambassadors. Actions
to reduce energy consumption were taken at the stores: Backlights of LCD dis-
plays in stores were dimmed by 30% to achieve ~25% energy savings. Besides,
air conditioning methods were revised to determine actions such as correct
placement, suitable temperature setting etc. Our efforts to reduce the ecolog-
ical footprint and implement alternative energy solutions will continue in 2023.
As an ecosystem brand, we continue to launch new categories to address
all electronic needs of our customers by transforming our Turkcell Stores
into technology store.
Providing advantageous offers with installments up to 36 months at Turkcell
stores, we make small appliances, personal care products, accessory products,
food preparation appliances and gaming products available to our customers
with Turkcell guarantee. Also, we can now provide our advantageous cash pay-
ment offers, which only post-paid Turkcell customers could use before, and also to
our prepaid Turkcell customers and non-Turkcell customers. In 2021, we launched
our new “catalog sales model” with air conditioning and TV products, through
which we can make sale of large products without keeping inventory. Products
can be picked from digital catalogs of Turkcell stores by our customers, and se-
lected products are delivered directly to the customer and installed. This model
continues to grow without losing pace by the addition of new product categories
such as PC category in November 2022 and white appliances and small home ap-
pliances as of January 2023.
“Digital B2B Supply
Through our
Platform”, which can supply multiple
channels with its wider product and
category portfolio and multiple buyer
and seller structure, we are improv-
ing the procurement processes of all
Turkcell channels. With our content
management team, we are increas-
ing the speed of our processes and
improving the experience, continuing
to provide our dealers with directions
customized according to their orders
and sales. At present, we are provid-
ing 85,389 products in 1,409 brands
with 188 suppliers to Turkcell dealers
through Turkcell Portal.
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POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Extending the scope of the “Bi tıkla
Mağazada (In-Store Delivery with a
Click)” application launched in 2019 al-
lowing delivery of devices purchased
over turkcell.com.tr
in the physical
channel, we enabled this service for
new acquisition and port-in activa-
tion transactions. This application en-
ables our customers to conveniently
pick up the products that they reserve
on turkcell.com.tr or through telesales
channels from the Turkcell stores. For a
unique and uninterrupted Turkcell ex-
perience, we leave the choice of chan-
nel to our customers.
We put in place our “Delivery Point”
process enabling our customers, who
have placed their orders through our
Turkcell Pasaj and turkcell.com.tr on-
line channel, to pick their ordered
goods from Turkcell Stores in all of our
qualifying stores across Turkey as of
September 2021. The “Delivery Point”
service is now available for customers
at over 1,108 stores across Turkey. Our
customers don’t need to wait for their
packages at home thanks to our One-
Click In-Store Delivery Point” service.
Having faster access to their packages
at our stores, our customers can also
meet their other related product or ser-
vice needs at our stores.
Our Alternative Sales Channel
As part of our alternative sales chan-
nel that has reached a sales volume
of 26 million products, we have trans-
formed each channel that contacts the
customer into a sales channel, while
continuing to serve through telesales,
market chains, bank channels, and
hypermarkets. Our alternative sales
channels have also become the major
sales channels for our digital services
with 3.5 million sales of TV+, lifebox and
fizy products, making use of our ana-
lytical models, artificial intelligence and
big data. Through TV+, lifebox, and fizy
collaborations in alternative channels,
we ensured the brand recognition of
our DSS products and increased our
sales by directing customers to our dig-
ital channels. We continued to increase
our product awareness and sales by
offering our customers DSS products as
Scratch cards through market chains.
With bundle campaign setups, we real-
ized mass DSS product sales.
We work to deliver
superior quality
services to our
customers consistently
across all our channels
and continue to make a
difference throughout
our service and sales
processes with our
integrated channel
experience solutions.
started
the
In
2021, we
“Customer contact
journey”
platform, which allows store
and call center employees to
view the transaction history of
customers in all channels and
offer an integrated experience
in service. As all of our channel
employees can see this jour-
ney before serving the cus-
tomers, they get familiar with
customers’ past experiences,
which improves the customer
satisfaction.
At present, we are
providing
85,389 products in
1,409 brands
with 188 suppliers to
Turkcell dealers through
Turkcell Portal.
Our Digital Sales Channels and
Services
As part of our digitalization focus, our
online sales channel took steps which
gave direction to Turkey’s e-commerce
sector in 2022 as well. The number of
visitors to our website was 23 million in
average per month in 2022, the 3-month
active users of Turkcell mobile app was
24 million users. Today, the share of
digital channel in total consumer de-
vice sales income has increased to 1.4
times compared to the previous year,
while total TRY/package top-ups have
grown by 25%. Accordingly, the share
of digital sales channels
in Turkcell
Turkey consumer revenues (excluding
our fixed business) reached 23%* in
the third quarter of 2022. Total top-ups
from our digital channels increased by
80% over an annual growth of 150% last
year. The rate of post-paid subscribers
who changed their tariff through digi-
tal channels has exceeded last year by
3 points to reach 23%, the rate of TRY/
Package top-up pre-paid subscribers
has increased by 8 points to 40% in the
last year. At the same time, changes in
payment type over digital channels has
increased by 2 points to 12%. Together
with these, new customer acquisition
has increased by more than 11%.
In line with our channel growth strategy,
we keep shaping our investments with
a focus in communication, traffic, sales,
delivery and loyalty. We implement-
ed various technical improvements to
improve the processes in this scope by
working with Turkcell’s professional
ICT team. Under the leadership of our
AI and Data Analytics teams, we im-
plemented numerous sales concepts
where we emphasized the importance
of personalization. Adopting a creative,
everyday, genuine, benefit-based and
familiar approach, we sustained our fo-
cus on hourly and nighttime campaigns
to encourage our customers to spend
more time on turkcell.com.tr. To better
cater for the needs of our customers, we
began to design campaigns involving
both postpaid and prepaid segments
for providing services with more data
and more advantageous prices as well
as new customer acquisition and cus-
tomer number portability categories.
*Share of all sales from digital channels (including
voice, data, services & smart devices) in Turkcell
Turkey consumer sales (excluding fixed business) and
equipment related revenues in other segment.
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POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Setting out with the target of “se-
cure online shopping”, Turkcell
launched Turkcell Pasaj, the first
online marketplace of Turkey, in
December 2020 by collabora-
ting with the largest and most
reliable suppliers of the country.
Featuring thousands of produ-
cts from phones to vacuum cle-
aners, TV sets to computers, whi-
te goods to maternity & baby
care products, Turkcell Pasaj
offers users swift delivery and
flexible payment options with
easy cancellation and return
rights. Turkcell Pasaj uses 100%
environmentally friendly and re-
newable boxes in delivery. At the
same time by offering a combi-
nation of real online and offline
shopping experience, Turkcell
Pasaj enables customers to pick
up the products they have pur-
chased through this platform
from a Turkcell store. Discount
options and different payment
alternatives that fit everyone
are offered on ‘Turkcell Pasaj”
and the customers of all opera-
tors can also benefit from tho-
se. We continue to take steps
to lift our services to the next
level with Pasaj Blog and Pasaj
Gaming which were launched in
December 2021.
In order to increase the network of Turkcell Pasaj in global markets, we
have launched Pasaj, the marketplace of Turkey, in Azerbaijan. To become
the prioritized address in electronic shopping in Azerbaijan as well, we are
making local cooperations and elaborate investments which will cover
our customers’ needs.
In Pasaj, we have started to support the From Women’s Hand social initiati-
ve, the largest platform of producing women in Turkey which takes inspira-
tion from Anatolian women’s life struggle. As Turkcell Pasaj, by incorpora-
ting this initiative, we are becoming a platform between the producer and
the consumer. With the space we provide, we bring numerous delicious
products manufactured by women from all around Anatolia to our cus-
tomers without aiming for profits, and bring them to your homes in boxes
carefully packaged by women with Turkcell’s assurance. At the same time,
to support sick animals in need of care, we hold donation campaigns to
Ankara Patili Köy Animal Protection Association for Pet Shop purchases on
Pasaj. Also, with our project which allows used devices to be revalued on
online platform and turned to cash within 3 business days, carried out with
our business partners which contribute to our sustainability target, 2,000
secondhand devices have been revalued on Pasaj. In addition to receiving
secondhand devices from our customers by package delivery and cou-
rier, we have provided “appraisal at the door” services in certain regions
to further facilitate the process for our customers.
In the upcoming periods of competi-
tion in the e-trade world, a rich prod-
uct portfolio,
logistics services, dif-
ferent payment alternatives, brand
guarantees and innovative approach-
es are expected to be valuable, and
we will continue to bring Paycell and
Financell solutions exclusive to our sales
channels to our customers to provide a
perfect experience.
Our Turkcell mobile application, devel-
oped to provide the fastest and most
appropriate response to our custom-
ers’ needs, which transformed into the
Approximately
2.5 million
transactions
performed per month
through the Turkcell
mobile application
Total top-ups
from our digital
channels
increased by
80%
service and sales channel most pre-
ferred by our customers, was down-
loaded 29 million times in 2022 in the
last year our customers logged in the
Turkcell mobile application 190 million
times per month on average to per-
form their transactions through the
app. We have updated the design of
our application in 2021 to be more user
friendly. We separated the applica-
tion world in two parts, as Pasaj and
operator transactions, enabling cus-
tomers to reach the transactions they
are aiming to make much faster and
easier. We have formed a much more
sales-focused experience in the Pasaj
part with a category structure and new
areas such as recommendations for
you and the sale of the day. On the op-
erator transactions part, our customers
can inspect and pay their bills, access
packages, services and campaigns
suitable for their usage and instantly
transfer between tariffs in addition to
viewing their remaining usages through
the application.
Our customers can manage their fixed
internet and all other Turkcell
lines
through a single application by adding
them through the “Add Account” step.
Apart from this, close to 272 thousand
Superonline customers per month per-
form approximately 2.5 million trans-
actions per month through the Turkcell
mobile application.
Our Tariffs and Packages
Our Postpaid Packages
Our AI-based, smart offer manage-
ment model enables us to present
offers at different price and content
levels which suit our customers’ needs,
and which are rich in content. We also
ensure that our customers see the
same offers in all our channels and
easily benefit from these offers. Digital
channels provide advantages in both
cost and customer experience since
customers can perform many opera-
tions such as renewing contracts, up-
grading, and purchasing additional
packages without any intermediar-
ies. This is why we also maintain our
target of making digital channels the
primary channel, as cost optimization
becomes more important for compa-
nies day by day.
With the support of our analytic
models, we take actions to increase
our digital channel share by offering
personalized campaigns, discounts
and gifts exclusive to digital chan-
nel. While bringing these actions to
life, we contact our customers at the
right time and continue to develop us-
er-friendly designs that allow them to
perform their operations via the digi-
tal channel much faster and easier.
Aligning with rapidly changing mar-
ket conditions and customer usage
habits, we renewed all of our offers
in 2022. During the year, we simplified
our offers so that our customers can
easily find the packages suitable for
their needs.
For new customer
acquisitions, we launched
our new term Yapboz
tariffs, which are shaped
on user basis. We also
enriched the contents of
our existing offers and
worked on providing
added value through
YouTube Premium
collaboration.
In this period, we launched the brand
new GNÇ Platinum package in both
GNÇ and Platinum segments, and re-
alized an increase in total Platinum
new subscriber acquisitions.
Our Prepaid Packages
We constantly monitor our prepaid
users’ usage habits and needs with
big data and market analyses; ex-
pand and regularly update our pre-
paid package alternatives accord-
ingly. In addition to monthly packages,
we address the short and long term
needs of our customers with our dai-
ly, weekly and 3-6-12-month solutions.
Meanwhile, using our AI-powered
analytical models, we introduce our
packages tailored to address the
changing needs of our customers
through the right channel and at the
right time.
Our other focus area was provid-
ing solutions and campaigns that
would solve our customers’ telecom-
munication needs in the digitalizing
consumption world. We ensured the
channel loyalty of our customers who
use the Turkcell app by offering pack-
ages exclusive to digital channel, the
ability to compare all packages, a
world of gifts and continuous renewal.
Our segmentation structure that we
established based on our digital users’
habits, enables us to conduct custom-
er-specific campaigns, thereby assist-
ing us in increasing both the number
of customers who have recently start-
ed using the channel and the number
of customers who regularly use the
channel. With digital footprint track-
ing and customized campaigns, we
also increase the top-up amounts of
our customers.
Our Corporate Packages
With our innovative offers, we gener-
ated solutions tailored to the increas-
ing internet needs of our corporate
customers. We multiplied advantages
of being a Turkcell customer, through
campaign designs ranging from so-
cial media package give-aways to
car wash gifts, from fuel gifts to free
intra-company voice call minutes. For
new customers, we provided diverse
offers focusing on merchants and
SMEs. We launched exclusive cam-
paigns to specific cities identified with
a regional focus. Furthermore, with our
enriched additional package world,
we have enabled our customers to
fully experience the difference of lim-
itless internet usage. Through our im-
plementations with the focus on our
existing customers’ contract experi-
ence, we targeted a higher customer
satisfaction rate. Focusing on their life-
cycle in Turkcell, we offered the most
suitable packages to our customers
at the time of their needs by tapping
on the power of analytical modelling.
Thus, we further strengthened the val-
ue-for-price perception among both
new and existing customers.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Innovation
Flex Package
With Flex Package, we adapt to our
customers’ usage habits. Our customers’
internet usage needs can change over
time. In this regard, for our customers
whose package becomes insufficient
but who do not prefer to change their
packages or purchase additional pack-
ages, we introduced our Flex Package.
With Flex Package, if the package runs
out, our customers are automatically
upgraded to the higher level and con-
tinue their usage at an affordable price.
Moreover, thanks to its contract-free
structure, our customers can change
packages as they wish.
Thinking Out of the Box with Turkcell
Yapboz
As a first in the telecommunication
world, we introduced Turkcell Yapboz,
the flexible tariff system which allows
our customers to shape their package
as they wish, across entire Turkey and
the digital channel. Thinking out of the
box, we introduced a setup where our
customers can increase or reduce GB/
SMS/MIN content within the month with
a unit price invoicing system. In our digi-
tal-based project, through a simulation
where customers can experience both
on mobile and on PC, we helped their
adaptation to the digital world.
We Brought the Newest
Technologies to Our Customers
with Superbox GO
While maintaining our leadership
at mobile broadband, we posi-
tioned the Turkcell brand also in our
devices and launched the Superbox
Go for both prepaid and post-
paid customers in June. We made
Superbox Go special with features
not found in its peers such as high
quality, up to 32 device connection
capacity and automatic power on.
Two New Features for Prepaid
Customers: Doubling and Extending
İhtiyaç Anı (In Time of Need)
Campaign
Taking customer insight into our focus,
we introduced two new features to-
wards preventing lavish spending and
providing ease of use to our customers.
Prepaid customers may purchase the
feature of doubling the internet quo-
ta in their package, or extending their
package duration by one week, upon
their wish. This way, we offer a GB
solution to the customers whose GBs
are not enough, and additional time
to customers who think their package
contents will be wasted, by providing
a more flexible world to our customers.
We launched our “İhtiyaç Anı” cam-
paign to enable our prepaid custom-
ers to meet their communication needs
with the ease of “first use - then pay”
when they have used up their pack-
age content and they don’t have the
sufficient amount in their balances re-
quired to buy a new package. “İhtiyaç
Anı” package that we offer with an
AI-powered analytical model, enables
our customers to continue uninterrupt-
ed communication by using first and
paying for their usage later.
International Sale and
Wholesale
We lead the transformation
of the telecommunications
sector in Turkey and support
its development through the
business partnerships we
establish with international
and national operators
in international roaming,
interconnection, wholesale
voice, wholesale data, tower
and digital services.
The main internet route of Turkey
We have been working to position
Turkey as the main internet route and
Istanbul as the regional center of the
internet with our vision to make the Silk
Road a fiber path since 2008. As a result
of these efforts, we have become the
most important capacity and internet
provider for many neighboring countries.
Through collaborations with leading
global operators, we have served as
a bridge to provide our wholesale
customers with uninterrupted internet
access from East to West, at the speed
of light.
Istanbul: the traffic exchange hub of
the region
As part of our wholesale data servic-
es, our international carrying capacity
exceeded 15 Tbps. We have cooper-
ated with the world’s largest global
traffic exchange platforms and played
a major role in their decision to enter
the Turkish market. Thus, we have tak-
en another crucial 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
Through our global business partner-
ships and the opportunities we fol-
lowed up closely in 2022, we aimed to
increase the international spread of
our digital services and technologies.
In 2023, we will continue to expand the
spread of our solutions by increasing
our footprint in new markets where we
will offer our international services.
Our Fixed Services
We continue meeting our customers’
needs with our broad range of “Turkcell
Home Internet” offers including high-
speed internet options, setup service
at home and suitable contracts. In
2022, we increased our new homepass
investments in Turkcell Fiber to bring
internet at the speed of light to more
houses.
We continue to improve our analytic
competencies in order to provide of-
fers in line with our customers’ usage
habits and our marketing strategies.
Integrating customer retention and
into
higher speed upselling models
the Turkcell app, we present our offers
to customers via digital channels. We
use our analytic competencies also in
acquiring new fiber customers through
location-based analyses and convert-
ing our existing customers to fiber.
We Focused on Valuable Customer
Acquisition with Turkcell Fiber and
VDSL Speed Festival
In light of the increased need for a fast
internet connection after the pandem-
ic, we highlighted our At the Speed of
Light with Turkcell Fiber campaigns to
bring the speed and quality of Turkcell
Fiber to more homes. Leading the mar-
ket also in high-speed campaigns, we
brought 500 Mbps and 1000 Mbps
speeds to our customers. We doubled
the number of customers using the
internet at 100 Mbps or higher com-
pared to last year, through the support
of our most up-to-date 1000 Mbps
campaigns.
Turkcell WiFi 6 Technology
We bring the most advanced technol-
ogies to our customers also in residen-
tial internet. Wi-Fi 6 technology, which
increases the coverage in the house,
was brought to Turkcell Superonline
customers for the first time in Turkey.
We aim to provide this technology to
all fiber homes in the upcoming period.
We are already performing the tests of
the newest technologies such as Wi-Fi
6E, the more advanced version of Wi-
Fi 6 which we call the technology that
breaks the walls. By this way, we are
striving to make Turkey one of the lead-
ing countries in digital transformation
and access to information.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Our Segments
The Place for Youngsters to Have Fun
and Win: GNÇ
Shake and Win Continued to Put a
Smile on the Faces of Our Customers
Turkcell’s World of Privileges:
Platinum
We started 2022 with the launch of the
Platinum application, renewed both in
design and infrastructure. The contents
and the UI of the application were re-
newed to suit the new trends and our
audience which
increasingly grows
younger. We added new features
such as advanced voice search and
contacting customer service through
the app with a chatbot. Also, with the
“Surprise of the Week” we increased
our online benefits valid on the leading
electronic trade platforms of Turkey,
and started offering thousands of
gifts from multiple brands every week.
We continued to gift our customers
the newest devices and accessories
through our regular “Dream Gifts” raf-
fles. Free YouTube Premium member-
ship, was added to our privileges for
the first time this year, has been one of
our most frequently chosen campaigns.
The Platinum Privilege Program, contin-
uing with many privileges such as cof-
fee gifts, car rentals, discounts in premi-
um brands and Havaş, has been visited
approximately 21 million times this year.
Our brand has continued to enrich the
lives of our customers this year with
sponsorships such as Turkcell Platinum
Park, Zorlu PSM, Turkcell Valley and the
You can
privileges offered.
check the “Turkcell Platinum applica-
tion” to discover the Turkcell Platinum
privileged world of opportunities.
On GNÇ, the favorite application of
young people, we pleased youngsters
with the abundant offers we have pro-
vided in 2022, and provided them an
enjoyable time with our new entertain-
ment platforms. The GNÇ application
became one of the top 5 applications
in Turkey in the entertainment catego-
ry again, by surpassing 16 million active
downloads. In 2022, we reached an
activity of 4.3 million in GNÇ and in-
creased our application revenues.
On “Çatlat”, the favorite internet cam-
paign of young people, we had more
than 100 million participations this
year, and with our new campaign
GNÇ Galaxy, youngsters won gift cer-
tificates from their favorite brands
with the stars they collected in the
application.
We improved our game contents in
2022, as 15 new free games were of-
fered to youngsters. In the upcoming
year, we will continue to bring novel-
ties to the youth with our AI-supported
game platform; and continue to be
their favorite application with the us-
er-friendly experience, abundance of
offers and fun content with our wholly
new application.
We kept delighting our customers
with a wide range of gifts from Shake
and Win, one of the most popular
and most-participated campaigns of
Turkcell. In the year of 2022 we deliv-
ered millions of gifts every week. In ac-
cordance with the changing needs of
our customers over time, we will con-
tinue to make additions to our Shake
and Win campaign and the gifts we
offer here.
We have continued our Shake and Win
setups for special days. In the upcom-
ing years, we will continue to provide
our customers with the abundance of
Turkcell with new additions to Shake
and Win, and contribute to our com-
pany KPI’s.
Turkcell BiZ
Turkcell Biz has been in our lives since
September 2020 and has created a
difference with offering features like
free of charge GB transfers, which our
customers had been expecting. It has
been successful in terms of originali-
ty and has met a large audience as a
value in line with Turkcell’s innovative
image.
The Platinum Privilege
Program was visited
approximately
21
million times this year.
GNÇ has once again succeeded in being one of
Turkey’s top 5 entertainment applications, surpassing
16 million downloads this year.
The platform where women support
each other “Turkcell Bizce”
We continued to offer totally new fea-
tures and content with Turkcell Bizce,
which we aim to become the favorite
application of women. The raffles and
Collect Coupons campaign we held
through the year continued to receive
attention, and millions of our users par-
ticipated in our campaigns. We added
new games to the existing ones. With
games such as “Words that Win” and
“4 Operations, Lots of GB” which earn
new GB for users, the games were
played 10.7 million times in total. Brand
new “Our Forum” feature enabled
them to share their comments and ex-
periences under experts’ videos. We
facilitated their lives with our users’ vid-
eos in the “Do It Yourself” category and
“Share Discount”. We started offering
important and practical information
and recipes in the digital calendar
“Today at Bizce”, where we digitalize
nostalgic habits with innovation. We
launched the “Ask Yourself” platform
to create little breaks for women. We
collaborated with different brands to
offer various discounts and benefits.
Turkcell Kid
With the rich in content and advan-
tageous offers specific to children
aged 7-15, Turkcell Kid packages are
innovative plans for the children’s
segment providing umbrella solutions
to address security concerns of par-
ents with features allowing them to
manage their children’s mobile usage.
These packages have been offered
to parents first by Turkcell, after ana-
lyzing their needs and bringing to-
gether the solutions suitable for them.
Turkcell has owned the children’s seg-
ment with its children’s packages and
supported its innovative image. The
children’s segment continues to grow
with communications from our side
where we reach parents in all kinds
of media.
Our Customer Relations
Customer-Oriented Cultural
Transformation
Customer satisfaction and loyalty
in
As the Turkcell family,
line with
“Our Brand and Connection with the
Customer” initiative, we strive to make
our customers feel “Safe, Valuable and
Happy” in every step we take and with
every product or service we design,
and we aim to provide our customers
with an “easy, personalized and con-
sistent” experience.
We expect all Turkcell employees to
make decisions keeping the motto “I’m
Here for My Customer” in mind and
consider Turkcell Experience Principles
when making such decisions. As part
of our people-oriented communica-
tion approach, we listen to the ideas,
needs, recommendations and requests
of our customers. We aim to help elim-
inate social inequalities by making all
products and services, which we de-
sign to add value to people primarily,
accessible by everyone. We consider
our high customer satisfaction result-
ing from these efforts as one of the
most important criteria of our success.
In order to manage Turkcell’s rich chan-
nel diversity offered to our customers
with a “One Turkcell” approach, we
keep “Omnichannel Experience” in our
customer relations management pri-
orities. With our Omnichannel project,
we aim to provide an integrated expe-
rience in Turkcell customers’ interaction
with our channels, where our custom-
ers do not need to provide the same in-
formation repeatedly, are surprised by
our technology, and all channels are
managed harmoniously during their
customer journey.
the
With
“Customer Movement
Initiative” which we started to prop-
agate the customer-oriented corpo-
rate culture, we have ensured that all
Turkcell employees have embraced
the idea that the design and mainte-
nance of customer experience is the
responsibility of Turkcell employees
regardless of their job definition and
that all employees are the pioneers of
such cultural transformation.
It is among our primary objectives to
make our customers feel safe, valua-
ble and happy with our robust tech-
nological infrastructure, which is our
core experience strategy. Looking at
the point we have reached, we ob-
serve the successful results of this
movement, which we crowned with
positive feedback from our custom-
ers and awards in the international
arena. More than 1,000 of our employ-
ees from different business units and
levels volunteered to become part of
various customer experience projects
which target customer-oriented cul-
tural transformation. We included our
customers in this cultural transforma-
tion through the hackathons we or-
ganized under the name “Hacxathon”
with a focus on customer experience
and developed various projects
with university students. Through the
Hacxathons, we reached over 1.6 mil-
lion university students in Turkey and
Northern Cyprus. We worked with
over 500 university students to im-
prove Turkcell products and process-
es. Driven by our customer-oriented
approach, in 2022, we received the
third prize of the “Customer-Centric
Culture” category of the Customer
Centricity World Series, among the
most prestigious organizations relat-
ed to customer experience.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Knowing that a better solution is al-
ways possible for our customers, as
Turkcell, we will continue to listen to
our customers and stand by them with
the solutions designed to address their
needs.
customers. Accordingly, in order to
improve our customer services, we in-
stantly recognize customers by voice
thanks to our artificial
intelligence
integrated text and audio analytics
capabilities.
Customer Satisfaction Management
As part of our people oriented ap-
proach, we commit to addressing our
customers’ requests clearly, transpar-
ently, rapidly and reliably with our
“Customer Satisfaction
Policy”. We consistently carry out ac-
tivities to track customer emotions
closely and provide the products and
services that best meet customer
needs by consolidating the connec-
tion established with our customers
across our channels. We aspire to en-
sure that the unique experience we
deliver to our customers through our
video call center service for our hear-
ing-impaired customers and our dig-
ital and face-to-face service chan-
nels will be owned by all functions
of Turkcell and improve our service
quality continuously by monitoring
them throughout the year. In line with
the strategies we defined to improve
customer experience, we annually es-
tablish, target and track our customer
experience performance metrics.
identified
We
listening to, under-
standing and empathizing with our
customers as our basic principles for
delivering a better experience to our
701 thousand packages were sold
under the guidance of Turkcell Celly.
We will continue to add speed and
convenience to our customers’ lives
also in the future, and to transform
Turkcell Celly’s competencies by using
the strength of our technology.
We respond 24/7 to our customers
on Facebook, Twitter,
Instagram,
YouTube, and LinkedIn with a total
of 65 accounts. We address an aver-
age of 890 thousand of social media
content monthly. We provide support
to our users regarding our digital ap-
plications by initiating dialogue re-
flecting the nature of the respective
platforms and our brand positioning.
Meanwhile, we index 10.7 million so-
cial data annually by using our anal-
ysis models empowered with arti-
ficial intelligence systems and take
various actions to improve both rep-
utation management and customer
experience.
intelligence
(chatbot) with arti-
Turkcell Celly
ficial
is a self-service
help bot located within the “Turkcell
Application”, the gateway of our
company to digital, and developed
100% by Turkcell engineers. Turkcell
Celly provides services to our custom-
ers 24 hours a day, 7 days a week, in
more than 180 different subjects, from
invoice transactions to international
settings, from package information to
gifts. In 2022, 12.5 million of our custom-
ers have conducted 60.1 million con-
versations with Celly, and an average
of 97% of these inquries were com-
pleted at the first contact. Thanks to
the proactive information we provid-
ed using our analytical competencies,
Average response time of
all platforms and accounts
(minutes)
20
2019
18
2020
17
2021
12
2022
Improvement rate of average
response time of all platforms
and accounts, compared to
the previous reporting year
42% 10% 5.5% 29%
2019
2022
2020
2021
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Value-Driven, Responsible Supply
Chain Management
We sign a framework agree-
ment with every firm we work
with in our supply chain and
ensure the seamless delivery
of our ethical, fair, and honest
business practices through
our policies and contracts.
In this agreement, we are committed to
compliance with our principles, including
avoiding child labor and employment
for collection of employee debts. Within
the scope of the child labor clause in
our framework agreement, there is a
rule stating that “The company should
not use child labor”. To this end, we par-
ticipated in Action Pledges to eliminate
child labor as per Alliance 8.7. Unless a
higher age limit is specified in local laws,
we ensure that our suppliers implement
the rule “No one under the age of 15 who
has not completed compulsory educa-
tion (within the scope of International
Labor Organization (ILO) convention No.
138) ought to be employed. Employees
below the age of 18 should not be em-
ployed in jobs that pose danger, or in
night shift jobs in order to meet their ed-
ucational needs”. Apart from this, to pre-
vent employment by force, we include
the article “The company should not
employ any kind of forced labor. 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 requirement
includes the forced prison labor, labor in
exchange of debt with high interest, or
other forms of forced labor” clause to
prevent forced labor. Should any supplier
violate the framework agreement and
fail to comply with the requirements of
the clauses, we act according to the rel-
evant legal clause.
We expect our supplier ecosystem to
maintain all their employer-employee
relations by respecting employee rights
with a management approach sensi-
tive to environment and people as part
of our Code of Ethics and our Policy
of Combating Bribery and Corruption
As sustainable supply chain increases competitiveness of corporations
and enables effective management of business models, the number of or-
ganizations adopting this way of working is rapidly increasing. Within the
framework of our value creation principle, as Turkcell, we 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 cha-
in. In our operations in Turkey and abroad, to make our supply network as
agile, flexible, and sustainable as our direct operations, we restructure our
main business processes, logistics and technologies with a holistic appro-
ach, supported by our suppliers.
as published on the Turkcell Supplier
Portal. In addition, we have all of the
suppliers we cooperate approve the
Human
Environmental and
Rights policies when registering to our
Supplier Management System.
As Turkcell, we offer services touching
every moment of human life directly.
Partnering with suppliers that will avoid
potential service disruptions likely to af-
fect the vital needs of the society such
as communication, healthcare and se-
curity is paramount in delivering our
products and services to our custom-
ers. We determine all the suppliers we
work with on the basis of mutual trust,
along with distinctive features such
as quality-price balance, past perfor-
mance, market conditions, and refer-
ences. While we carry out our evalua-
tion, we prioritize supplier candidates
with quality management and informa-
tion security management certification,
who are sensitive to the ecological bal-
ance, and who work within the scope of
social responsibility principles, together
with other basic criteria.
As of 2022, we have started the supplier
sustainability evaluation process. Within
this scope, with the survey we have held
through our Supplier Management
System, we are evaluating the process
maturities of our suppliers in the topics
of management systems, human rights,
Sarbanes-Oxley Act (SOX)
Security Exchange Commission
(SEC) Regulations
Foreign Corrupt Practices Act
(FCPA)
Capital Markets Board (CMB)
Regulations
Information and
Communication Technologies
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 pro-
cesses, we embrace cost analysis
and dynamic working principles and
prioritize practices that will deliver
savings through the integrating pow-
er of technology in evaluating the
processes.
By creating material
requirement
plans of our network for the entire
year, we ship the right amount of ma-
terial at the right time to our regions
based on the needs of the site lever-
aging our regional store organization
and the “push” principle. This allows us
to avoid redundant and surplus de-
mand, minimizing purchasing, logistic
and stocking costs. Additionally, by
defining product width, length and
height measurements for our e-com-
merce products at the time of the ac-
ceptance of goods, we ensure that
the system picks the box that best fits
the product dimensions at the time
of packaging. While our smallest box
used to be SIZE 3 beforehand, we now
have smaller SIZE 1 boxes to be used
to ship our mobile phones, wired and
wireless headsets, etc. This allows us
to use smaller-volume boxes for our
shipments, cutting down the amount
of paper used and increasing the vol-
ume of products that can be shipped
in one go, consequently reducing
logistic efforts. Our boxes are pro-
duced from 100% recyclable material.
environment, sustainable supply chain,
legal compliance and occupational
health and safety. At the first phase,
we have made this study for suppliers
which account for 65% of our purchas-
ing volume. After the evaluation, we
shared their points, areas of develop-
ment and our supplier sustainability
roadmap, which we expect all of our
suppliers to follow, with our suppliers.
And with our suppliers who scored be-
low 70 points, we assigned a training
prepared by Turkcell Academy on gen-
eral sustainability and the sustainability
journey in the supply chain.
We classify our purchase categories
based on the Kraljic Matrix. Based on this
classification, we evaluate our suppliers,
who have a purchase volume above a
certain threshold, with respect to com-
mercial issues, service quality, deliveries,
process management and communi-
cation, innovation and business conti-
nuity. In line with our value-driven and
responsible supply chain practices, we
execute complaint processes and en-
sure remedial actions are immediately
taken according to the framework of the
agreement and considering feedback
from general customer communication
channels or business functions and re-
sults from surveys of business owners
and purchasing departments. Through
regular assessments and audits we car-
ry out, we evaluate the compliance of
our suppliers and report them to our sen-
ior management. We proudly announce
that in 2022 there were no cases indicat-
ing that our supply chain and suppliers
had caused a negative environmental or
social impact, or else could have a po-
tentially negative one.
As Turkcell Group, we keep in mind eth-
ical principles, fight against corruption
and social contribution, and do busi-
ness with a transparent attitude to-
wards our stakeholders, in all processes
of our purchasing management struc-
ture, evaluated under four categories
of strategy, people, process and imple-
mentation. 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:
168 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK B7; SPK C1.2; SPK C1.4
GRI 2.6
SPK B7; SPK C1.2; SPK C1.4
GRI 2.6
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
launch. As a result of our collaboration
with BOREAS, we enable local produc-
tion of data center cooling systems with
precision control, which we imported,
with lower cost. We continuously work
to increase the percentage of domesti-
cally-produced goods, which reached
75%
in the European Data Center
project.
Our
localization framework ensures
that purchased products are produced
in Turkey and purchased services are
delivered by a local workforce. The lo-
calization rate of our main suppliers,
which corresponds to approximately
90% of our total purchase volume, has
been realized at 56% in 2022.
technoparks
We continue supporting the
promotion of startups by vis-
iting
following
our new procurement model
developed in 2020 for assist-
ing startups. With My Principal
Partner Program developed
with this purpose in mind, we
made 47 business agreements
in total with 36 companies af-
filiated with 20 technoparks in
12 cities and generated a trade
volume of TRY 26.3 million by
the end of 2022.
Supplier-Oriented Innovation Projects
With contribution from relevant business
functions and procurement managers,
we turn innovative ideas submitted by
our suppliers into projects as part of the
Supplier-Oriented Innovation Program
we launched in 2020 to encourage inno-
vations across the supplier ecosystem.
Projects are submitted to the “Supplier-
Oriented Innovation and Localization”
jury of
committee consisting of the
Turkcell executive vice presidents, with a
presentation including potential contri-
butions of the project like extra savings,
process and quality improvement, rev-
enue potential and sustainability, and
successful projects are
implemented.
By partnering with suppliers that sub-
mit innovative ideas in this program, we
create advantages for the industry as
well as suppliers and Turkcell. Examples
to projects approved by the committee
are as follows: use of solar panels for
the energy requirement of field equip-
ment, production of lower-cost com-
posite manholes with a reduced oc-
cupational safety risk for optical fiber
boxes, development of nano-trenchers
increasing operational efficiency with
shorter excavation sections and causing
less inconvenience, use of mobile cara-
vans instead of mobile vehicles for sup-
porting regions for uninterrupted com-
munication, and installation of mobile
visit systems in hospitals to facilitate the
communication of patients and patient
relatives. These projects allow for labor
safety and efficiency, additional reve-
nue stream opportunities, and the devel-
opment of processes sensitive to the en-
vironment and people. Within the scope
of the program, as of the end of 2022, 100
ideas were evaluated, 14 were escalated
to the committee, and 11 were approved
and implemented. With the savings and
additional income from these projects,
TRY 55 Million in total has been gained
so far. Projects are expected to to make
a potential contribution of TRY 164 million
in a 5 years perspective.
As part of
the Supplier-Oriented
Innovation Project, we developed nano
trenchers which can carry out short-
er-section excavations to be able to
serve at high-cost locations such as villa
complexes, industrial zones and internal
areas of housing estates. Using these ve-
hicles, we aim to carry out excavations
with higher operational efficiency with
67% lower cost and cause the least harm
possible to the environment through the
system collecting excavated soil in the
vehicle storage area.
After organizations and events, our con-
tracted stand construction company
stores the stands they have produces,
and we utilize them on many other activ-
ities later. This way, we prevent produc-
tion from scratch for every event.
As of the end of 2022, 100 ideas
were evaluated, 14 were escalated
to the committee, and 11 were
approved and implemented.
Supplier Ecosystem Management
Localization Efforts
We support domestic and national
technological transformation to pro-
mote entrepreneurship activities
in
Turkey so that they will contribute to
sustainability. Accordingly, we carry out
category localization activities, supplier
relations, technopark relations and en-
trepreneurship support programs (My
Principal Partner Program), activities
to attract global investment to Turkey,
Commercial Attaché affairs, and co-
ordination of all internal stakeholders.
We believe localization efforts are crit-
ical for Turkcell as it is directly related to
our relations with the local ecosystem
and the ICTA. As part of the “Turkcell
Localization
identified
the main categories with a localization
potential to be tracked in short, medium
and long term, and started designing
localization methodologies for these
categories together with teams con-
sisting of request owners and purchas-
ing experts.
Initiative”, we
We are engaged in project develop-
ment activities with manufacturers to
support our producers in our localiza-
tion efforts. As an example, we have
provided technical support in the works
to locally produce the lithium batteries
by Aspilsan, which we used to import.
With the readiness for production in
2022, we have signed a supply agree-
ment. As Türk Telekom also made a pur-
chase agreement, we organized a joint
We position the value-driven process-
es we operate with our suppliers under
a single team for rapid
implementa-
tion. With our Innovation and Ecosystem
Relations Process Management team po-
sitioned under the Supply Chain Process
Development team, we carry out localiza-
tion efforts, SME and startup support pro-
grams, collaborations through internation-
al and local sector-specific organizations,
supplier-driven innovation efforts, supplier
diversity and development, and risk and
sustainability analysis efforts.
In June 2022 we brought our supplier eco-
system together in two different events.
First, we organized the “Local Production
with Innovation and the Power of SME’s”
event with the partnership of TOBB and
participation from the Ministry, where we
addressed local producers and informed
them about our efforts for their develop-
ment. Afterwards, we held the “Supplier-
Oriented Innovation Day”. We physically
met 100 principal suppliers from catego-
ries where we expect innovation. We also
provided online connections for our other
suppliers. We informed them about the
program where we turn innovative ideas
from our Suppliers into projects. We intro-
duced the projects that have so far been
realized. We presented their awards to
the Turkcell employees and suppliers who
participated in the project. We informed
the companies about application chan-
nels for new ideas. We held panels for
digital transformation and sustainability
and energy efficiency. We communicat-
ed our expectations for ideas from the
companies. We created an open innova-
tion environment.
With these events, we have described
our Supplier-Oriented Innovation,
Local Production and
Startup Support
programs to the
companies in the
ecosystem.
The localization rate of our main
suppliers, which corresponds
to approximately 90% of our
total purchase volume, has been
realized at
56% in 2022.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Women Developers of the Future
The purpose of Women Developers of
the Future project, brought to life by
Turkcell in collaboration with TOBB and
TOBB Female Entrepreneurs Assembly,
increase female entrepreneur-
is to
ship and employment in the field of
technology.
The target audience in our project is
women over the age of 18 that are high
school graduates, university students or
university graduates who wish to work
in the mobile technology industry or
realize their business idea using mobile
technologies.
To date, around 3,200 women have
been involved in the Women Developers
of the Future project, which consists of
various trainings, seminars and contests
in order to develop their capacities in
the field of technology and entrepre-
neurship. Close to 200 women have
been employed in the field of technol-
ogy in the first two years of the project.
Since 2021, the project has progressed
with a new version where women can
utilize their capacities in technological
entrepreneurship to search for solutions
to climate change as well. Research
shows that women are affected the
most by climate disasters, however,
they are underrepresented in the pro-
cess of developing solutions. For this
reason, while Women Developers of the
Future supports the equal existence of
women in the field of technology, it has
transformed into “Women Developers
of the Future Climate Ideathon”, to also
support the equal existence of women
in the climate change solution process.
The women have received technology,
entrepreneurship, assessment, business
model establishment training and men-
torship support, have competed with
their technology-based solution ideas in
the themes of “Efficient and Renewable
Use of Energy”, “Waste Management”,
“Carbon Footprint Management and
Sustainable Agriculture”. At the event
held, the prizes were presented to the
women by Mrs. Emine Erdoğan, the wife
of President Recep Tayyip Erdoğan.
Whiz Kids-ZEKATHON
Zekathon is an event organized as part
of the Turkcell Intelligence Power pro-
ject in collaboration with the Ministry
of Education, with the purpose of the
students in more than 150 Centers of
Science and Arts (BİLSEM) in Turkey
finding solutions to problems in environ-
ment and sustainability, and developing
project ideas.
The Zekathon process was designed
to allow all teams to work online.
Throughout the tournament, teams re-
ceived online training in topics such
as 3D design and coding, met weekly
with their mentors, and developed their
projects. Turkcell Zekathon received
163 team applications in total. The jury,
comprised of executives from the busi-
ness world, the Ministry of National
Education, and Turkcell, evaluated the
projects and awarded eight of them.
Digital Literacy Program
training
We work to disseminate our “Digital
through various
Literacy”
channels in order to address the grow-
ing need for digitalization after the
pandemic period, as well as the grow-
ing needs of women and those over
the age of middle age who have yet
to experience these applications. With
our Digital Spring project, we provide
these trainings to our elders in nursing
homes and allow them to meet the on-
line world in a safe way.
Equality of Digital and Social
Opportunity
Utilizing the healing and equalizing
power of technology, we provide equal
opportunity to access information for
children, women, refugees, people with
disabilities, the elderly, and low-income
people leaving no one behind. We are
inspired to allow their potential to shine
and we try to provide inspiration our-
selves. With the projects, sponsorships
and events that we work in many are-
as, we transform the propelling power
of technology to benefit for every-
one with an inclusive and sustainable
approach.
Accessibility in Service Processes
We have created sign language and voiceover versions of information
packages such as payment service agreements, resolving of certain dis-
agreements, use of products and others which directly affect customers
but are hard to access for our vision and hearing-impaired customers, and
made them
available on our corporate website.
Our customers can now reach Face-to-Face Customer Service from
Turkcell Digital Operator, Sign Language and BiP applications, Turkcell and
Superonline stores, and receive visual service in sign language from 10:00 to
01:45. every day of the week. This service model, free of charge for our hear-
ing-impaired customers, includes external calls and callbacks. Customers
can contact the call center by clicking the link in the message that is sent
when an SMS is sent. We serve approximately 3,000 hearing-impaired cus-
tomers through our video-enabled call center per month.
Whiz Kids Robotic
Hand Training
Program
After two people invented a robotic
hand (mechanical hand) for a child
born without fingers and shared
their invention with those in need,
robotic hand movement evolved
gradually with contributions from
many people around the world. It
is a platform where affordable and
usable robotic hand applications
are shared after being created
with 3D printers in dimensions and
properties suitable for people who
require a prosthetic hand.
Our students aimed to create pros-
thetic hands using the 3D printers
in Turkcell Whiz Kids classrooms to
assist their friends who were born
without hands.
As part of the project, a Robotic
Hand training program for Whiz
Kids students is carried out in col-
laboration with the Robotic Hand
Association and is overseen by the
Ministry of National Education. At
the end of the training, our students
from all over Turkey give the hands
they have made to other students
without hands. In 2022, through
the Robotic Hand cooperation, we
provided this support to 120 chil-
dren waiting for hands.
Whiz Kids Project
As part of Whiz Kids Project con-
ducted by Turkcell in partnership
with the Ministry of National
Education, we intend to intro-
duce gifted children in Turkey
to technology and discover and
develop their talents at an early
age. In our Whiz Kids Technology
Labs, we make facilities avail-
able to students including lap-
tops, 3D printers, electronic and
robotic coding kits and toolsets,
provide training in artificial intel-
ligence, coding, space sciences,
robotics, smart home and cloud
technologies for children, and
support
in developing
projects in these areas. As part
of the Whiz Kids Project, we
reached 80 laboratories in total
in 45 cities by establishing 5 new
classes in 2022.
them
To date, over 7 million pieces of
educational content have been
viewed on the Whiz Kids training
portal, carrying our Whiz Kids
Project to the digital environ-
ment, and our public mobile ap-
plication. 80 thousand students
across Turkey took the advan-
tage of free educational content
on topics including Arduino, mBot
Robot Programming, Robotics,
Space Sciences, Mobile Game
Development, AI, Smart Home,
Deep Learning, etc. through the
digital portal and mobile appli-
cation of the Whiz Kids Project.
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Foundation
brand
With the power and reliability of
Turkcell
Turkcell
Foundation works to execute projects
intended to serve both our country and
the entire humankind.
behind,
Turkcell Volunteers
Turkcell Volunteers, consisting of
Turkcell employees who have come
together to deliver social benefits and
raise social awareness, kept on cre-
ating value in 2022. Through Turkcell
Volunteers, fully relying on grants from
Turkcell Group employees, we conduct
voluntary social benefit projects with
participants who are eager to devel-
op social and environmental projects,
have strong communication skills and
are able to use technology. As part of
this initiative, we reached 250 volun-
teers with the activities and events we
organized in 2022.
The Digital Spring Project
We remembered our elderly people
living in nursing homes, and to con-
nect them to life stronger with our
technology, we created the “Digital
Spring” technology rooms where they
will experience technology. Thanks
to Turkcell’s digital services, elderly
people can watch TV, listen to music,
video-call their relatives, and access
Social Investment and
Sponsorship Projects
Believing in the power
of technology to bring
equality in opportunities
since the day of our
foundation, we have
been targeting equal
participation in life by
everybody without
leaving anybody behind
in accessing information
and carrying out social
inclusion projects in this
respect.
Allocating up to 1% of our annual rev-
enues to social investment projects,
we have been creating a positive dif-
ference in society with our ambition to
help create a more livable world, and
striving for social development and
environmental sustainability in all our
activities.
We work to make sports, cultural and
art events equally accessible to every-
body. We undertake sponsorships to
provide access to all sports, cultural
and art activities for everyone includ-
ing men, women, children, and disa-
bled people. We have been continuing
our pioneering efforts for the devel-
opment of culture, the arts and sports
in Turkey so that our artists and sports
people can be acclaimed in nation-
al and international arenas for many
years.
Beside sports and culture, arts, we
support congresses, conferences and
events in many fields such as technol-
ogy, health, environment, energy, econ-
omy, marketing and information tech-
nology to continue our contribution to
our country in every field.
to e-state service, play digital games
and experience different beauties
of our country with VR sets in these
rooms. As part of the project, which we
launched in 2021 with a press meeting
with the participation of the Minister of
Family and Social Services, we put our
Digital Spring Halls in into operation in
Osmaniye, Adana, Aydın, Samsun and
Erzincan in 2022. This way, we reached
5 nursing homes in 2022, and let our el-
ders connect with technology.
Close to Life Project
To support children with autism and
their families across Turkey, we brought
the Close to Life Project with Tohum
Autism Foundation to cover the guid-
ance and psychological needs of chil-
dren with autism and their families.
With BiP, the communication and life
platform which transcends barriers
with technology, we created a profes-
sional communications channel where
families of children with autism can find
answers to their question on autism
and special education from specialist
doctors and teachers. With the “Close
to Life” project, which commenced on
April 2, World Autism Awareness Day
in 2022, we aim to provide company
to families in this situation and provide
them with a comprehensive, fast and
reliable channel in case of need.
Turkish Sports Federation for the
Physically Disabled
We have deepened our collabora-
tion with the Sports Federation for the
Physically Disabled, which started with
football back in 2016, by expanding to 18
disabled sports branches (amputee foot-
ball, basketball, shooting, arm wrestling,
archery, swimming, sailing, tennis, bad-
minton, athletics, sitting volleyball, table
tennis, weightlifting, boccia, skiing, danc-
ing, curling, and fencing). With this spon-
sorship, we supported more than 10,000
registered men and women athletes
in all branches. Our Amputee Football
National Team, which had two consec-
utive European Championships, be-
came the World Champion in the World
Championships organized in our country.
Turkish Federation of Traditional
Sport Branches
As the main sponsor of the Turkish
Federation of Traditional Sport Branches,
we aspire to promote, nationally and in-
ternationally, and make a success in our
ancestral sports consisting of 247 clubs
in 64 provinces, and over 20 thousand
athletes, 351 trainers, 1,700 referees in 9
sports branches including jereed, am-
bling gait, horseback archery, aba wres-
tling, salwar wrestling, belt wrestling,
traditional sleigh, sleigh and kokboru.
We aim to raise healthier, more active
and more successful young people in
our society by creating opportunities to
disseminate these sports branches spe-
cific to our culture so that the reputation
of our ancestral sports will be fortified,
and their future success will be secured.
Sports Sponsorships
e-National Teams Sponsorship
By expanding the coverage of our agree-
ment with the Turkish Football Federation
in 2021, we became the title sponsor of
the player selection process of the new-
ly-established e-National Teams in the
FIFA and PES games. We also became
the main sponsor of e-National Teams
whose players were selected under the
title Turkcell e-National Team Draft. We
believe our National Teams competing in
these newly-created branches will make
us proud in the years to come.
National Athletics Team Sponsorship
As Turkcell, we take all branches of
sports seriously and do our best to im-
prove them. We continue the Athletics
and Swimming Performance Projects
we kicked off in 2013 at full steam in
collaboration with the Turkish Athletics
Federation and provide the greatest
and longest support for amateur sports
ever in Turkey. We work together with
the federations in many areas such as
applying innovative and modern man-
agement models, expanding the young
athlete pool, sustainability of the devel-
opment of elite athletes, and corporate
and technological development.
With the main sponsorship of Turkcell,
Turkish athletics continued registering
successes in the 2022 season. Our na-
tional athletes brought home 262 medals
in total in 38 different tournaments in the
international arena. Additionally, while
the number of active athletes reached 36
thousand in 2022, the number of licensed
athletes added up to 187 thousand.
National Football A Team Sponsorship
Turkcell has been the main sponsor
of the Men’s and Women’s A National
Football Teams since 2005 and the
“Official Communication Sponsor”
since 2002. Proudly supported by
Turkcell for 20 years, our Men’s National
Football A Team is competing in the
Football Championship
European
Germany 2024 qualifiers and Women’s
National Football A Team
the
Women’s World Cup Australia & New
Zealand 2023 qualifiers. We contin-
ue to support our Men’s and Women’s
National Teams, which will represent
our country in international tourna-
ments, for the development of Turkish
football and expect them to make our
country proud again with fresh suc-
cesses in these tournaments.
in
Turkcell Women’s Football Super
League
We kicked off a new era in women’s
football by becoming the title sponsor
of the Turkish Women’s Football Super
League, which didn’t have any spon-
sors in previous years. We take steps to
promote women’s football in Turkey as
this branch rapidly develops and grows
around the world. We are continuing
our efforts and events in order to ex-
tend Turkcell Women’s Football League
to larger masses and increase aware-
ness of women’s football. In the last two
seasons, we carried the league’s play-
off and final matches to TV channels
and digital media for the first time. With
our communication efforts, we have
won the Gold Prize from International
Public Relations Association.
Turkcell Super Cup
We included Turkcell Super Cup, which
brings the champions of Super League
and the Turkish Cup together, and
which we had already supported in
past years, in our agreement with the
Turkish Football Federation. We con-
tinue to meet football enthusiasts in
our communication efforts and events
in this scope. “The Cup of Cups” Super
Cup was won by Beşiktaş in 2021 and
Trabzonspor in 2022.
174 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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SPK C1.9; SPK D2
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkey Athletic Talent Screening
and Orientation to Sports Project
Since 2018, we have been the official
sponsor of the Turkey Athletic Talent
Screening and Orientation to Sports
Project, carried out in collaboration with
the Ministry of Youth and Sports and the
Ministry of National Education. We aim
for the participation of 1 million primary
school students at 3rd grade in our project
each year. While we ensure the access
of 4 thousand students to 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.
Turkcell Granfondo Cycling Race
Turkcell Granfondo road bicycle race
series was started to raise awareness
of cycling for a sustainable environ-
ment and to support cycling in Turkey.
The races took place in Istanbul in
June, in Ankara in August and in İzmir
in September, 2022. More than 4,000
amateur and professional cyclists from
38 different countries participated in
the races. Cyclists brought electronic
waste to the racing area to be recy-
cled for contribution to the Recycle into
Education project. They attached stick-
ers with SDG symbols on their jerseys
to raise awareness for the Sustainable
Development Goals. We took part in the
event area with our Paycell, TV+, Pasaj,
fizy, BiP and Lifebox brands.
Turkish University Sports
Federation
In 2022, we have become the main
sponsor of Turkish University Sports
Federation, which provides 30 thou-
sand university students from 210 uni-
versities the chance to do sports in 70
different branches. With this coopera-
tion, we are supporting TÜSF to create
sports awareness among the univer-
sity youth and allow more university
students to be able to participate in
the activities. In Turkcell Winter Sports
Games, held in Erzurum, hundreds of
young athletes from 80 universities
competed in races organized in 11 dis-
ciplines. But the biggest organization
of 2022 was GNÇ SporFest organized
in May. With the title sponsorship of
GNÇ, thousands of young athletes
Received with the sponsorship of
Turkcell in 2022; athletics medals
Gold
99
Silver
89
Bronze
74
Received with the sponsorship of
Turkcell in 2022; number of medals
for physical disability sports
Gold
119
Silver
105
Bronze
81
Received with the sponsorship of
Turkcell in 2022; university sports
medals
Gold
62
Silver
57
Bronze
76
from more than 100 universities com-
peted. Another important event from
Turkish University Sports Federation,
ÜniLig, was organized again this year
with Turkcell’s communication spon-
sorship. Inter-University World Cup 3x3
Basketball Championship, organized
by TUSF and FISU with Turkcell as the
main sponsor, hosted the matches of
12 men’s and 12 women’s teams. Our na-
tional athletes brought home 195 med-
als in total in the international arena.
Culture – Arts Sponsorships
Turkcell Vadi
Designed to promote the culture an-
dart industry, one of the industries
most
impacted by the pandemic,
Turkey’s new open-air stage Turkcell
Vadi was opened to art enthusiasts on
April 16. In our open-air stage Turkcell
Vadi, which won 3 gold prizes at once
in the IPRA Golden World Awards this
year, many
international
local and
artists took to the stage, and more
than 150,000 attendees visited the
location which hosted 45 events, from
concerts to theater plays.
As a sustainable and accessible fa-
cility, Turkcell Vadi stood out with a
number of activities such as recycling,
sapling donation, recycling of collect-
ed techno waste for education, prior-
itizing visitors with disabilities on en-
trance to the facility and creation of a
special viewing area for them. With the
live audio description technology in
the My Dream Partner application, our
visually-impaired guests experienced
Turkcell Vadi Theater Days. Turkcell
customers enjoyed the privileges of
Platinum Black entry gate, VIP lounge
and discounted tickets at the events.
Turkcell Starry Nights
Music
lovers enjoyed a series of
magnificent summer concerts with
the Turkcell Starry Nights event. The
Turkcell Starry Nights event, consisting
of 10 concerts at Turkcell Vadi, attract-
ed 30 thousand people this year. As
in last year, a concert was translated
to sign language on stage during the
Turkcell Starry Nights event, enabling
hearing-impaired audience to enjoy
the concert as well.
Zorlu Performance Arts Center
As part of our venue sponsorship un-
der the name of “Turkcell Stage” since
2018, the main theater stage at Zorlu
PSM hosts world-famous performanc-
es and shows. In addition, the theater
stage at the center still welcomes art
lovers as the “Turkcell Platinum Stage”.
All cultural and arts events such as
musicals, concerts and theater plays
are performed on stages hosted by
Turkcell.
Our Other Sponsorship Projects
Summer and Winter Locations
Turkcell Platinum Park
As part of the project realized in line
with our goal of creating happy cus-
tomers, we have been providing an
opportunity for escaping the monoto-
ny of city life to our customers and so-
ciety with Turkcell Platinum Park since
2018, on 200 acres of land. Turkcell
Platinum Park brings off-road enthu-
siasts together in nature in the center
of Istanbul. It also offers multiple ex-
periences with special advantages
to customers. Platinum customers can
experience many outdoor activities
such as off-road, archery, jungle run,
and summer outdoors cinema here.
Outdoor activities in Turkcell Platinum
Park, where families can come with
their children and spend fun time to-
gether, teach kids about life in nature
at a young age, in a fun way.
Turkcell Dialogue Museum
With our sponsorship of Turkcell
Dialogue Museum, as part of our pro-
ject to take visitors to another world
with visual and hearing-impaired
guides, we have employed more than
70 visual and hearing-impaired people
in Istanbul and hosted more than 500
thousand visitors up to now.
At Kartalkaya, one of our country’s
most important skiing centers visited by
more than 500,000 people in the sea-
son, as Turkcell, we have been offering
our customers Platinum benefits since
2014. Also, at distinguished beaches in
Çeşme and Bodrum, we integrate our
different brands in summer to provide
exclusive privileges and advantages to
our subscribers.
Sectoral Supports
As Turkcell, we aim to carry our lead-
ing position in telecommunications also
to other sectors, follow innovative ap-
proaches and contribute to the develop-
ment of the related sector. Accordingly,
we are sponsoring congresses and con-
ferences in many fields, from HR appli-
cations to digital marketing, from supply
chain management to aerospace, from
cyber security to techfin solutions. With
our sponsorships, we come together
with various target audiences, such as
startups, students, investors, NGO and
public representatives, academicians,
white collar employees and middle and
high-level managers of corporations. We
had the opportunity to meet hundreds of
thousands of people and communicate
our messages in more than 50 congress-
es and conferences throughout the year.
More than
4,000 amateur and
professional cycling enthusiasts
from 38 different countries
participated in the
Granfondo Cycling
Races.
At Zorlu PSM, which we renewed our
collaboration contract for 5 years in
October, we have hosted over 1.5 mil-
lion visitors at over 1,500 events since
2018. In line with our sustainability-ori-
ented approach, we hosted visual-
ly-impaired guests with My Dream
Partner live description technology in
theater, musical and similar events at
Zorlu PSM Platinum Stage.
Smiling Fairy Tales from Turkcell
On May, as part of Disabled Persons’
Week, we brought the “Smiling Fairy
Tales” project to life, in collaboration
with Content for Children (ÇİÇEK)
Association. As part of the project,
physical and mental diversities, which
are not encountered in the magical
world of fairy tales, found their place
in Smiling Fairy tales. Characters in
6 different tales, which met the chil-
dren and parents, are played as they
should be in life, not specifically men-
tioning their diversities and without
discrimination. We believe every indi-
vidual has a special role in society. The
fairy tales are on Turkcell’s My Dream
Partner application, Dergilik and fizy.
Circular Electronics Digital
Children’s Book
In the week of April 23, as part of
our activities to extend environmen-
tal awareness to all of society, and
with support from Turkish Informatics
Industry Association (TÜBİSAD) and
the Education Volunteers Foundation
of Turkey (TEGV) in a digital collabo-
ration, we brought the “Ant Leg and
the Giant Leaf” circular electronics
digital children’s book to life. The book,
formed with the intent to create envi-
ronmentally friendliness in children,
was voiced by Turkcell’s brand face,
famous artist Melis Sezen. The digi-
tal children’s book is on Turkcell’s My
Dream Partner application, Dergilik
and fizy. As part of the project, when
children who have read the book
bring their technological waste to
Turkcell Stores, they receive a “Circular
Electronics Certificate”.
176 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK C1.9; SPK D2
SPK C1.9; SPK D2
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 177
to the Environment
With the Positive Imprint to the Environment strategy, we aim three main
corporate objectives: Reducing the impacts arising from Turkcell operations,
supporting the reduction of customers’ environmental effects through
digital technology applications and services, and becoming the pioneer
in addressing environmental issues, the leading digital operator with its
environmental performance. For Turkcell, reaching these objectives is
not only required for being a responsible corporate citizen, but also the
prerequisite for creating sustainable business value tomorrow same as today.
Natural Capital
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Capitals
Goals
Actions
Impacts
Values
to the Environment
Value Proposal
e
c
r
u
o
s
e
R
d
n
a
l
a
t
i
p
a
C
n
o
i
t
a
c
o
l
l
A
Reducing environ-
mental impacts of
the operations
Supporting the re-
duction of custom-
ers’ environmental
effects through
digital technology
applications and
services
Becoming the
pioneer in add-
ressing environ-
mental issues, the
leading digital
operator with its
environmental
performance.
Renewable
energy
investments
Resource
efficiency
Environmental
Impact
Management
Infrastructure
with low
emission
intensity
Processes
and services
with low en-
vironmental
impact
Success in
international
climate and
environmental
evaluation
initiatives
Engaging with
NGOs and inter-
nationa initiati-
ves; Supporting
environmentally
freindly policies
and practices
Cost reduction through resource efficiency
Reducing negative impacts
Capital efficiency
Becoming a preferred business partner for
customers
Reducing negative impacts
Increasing customer satisfaction
Deeper engagement with customers through
service diversity
Revenue increase
Receiving high performance from evaluations
made through interntional methodologies
Leading corporate citizen identity in environ-
mental advocacy through corporate commit-
ments, joint projects and ngo partnerships
Generating positive impact
Increase in reputation and brand value
Increase in investment attracting potential and
equity value performance
Integrated Value Creation
(Financial Capital, Natural Capital, Manufactured Capital, Social Capital, Human Capital, Intellectual Capital)
With the activities conducted in line with Positive Imprint to the Environment strategy, direct and indirect contributions are
made to performance production in fields identified in the scope of integrated value generation model. Outputs of these
efforts contribute directly to the development of natural, financial and manufactured capital, and indirectly to social, human
and intellectual capital.
180 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK B5; SPK B7; SPK B13
SPK B5; SPK B7; SPK B13
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 181
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Natural Capital
Outputs
414,911
Ton CO2e
Emission
Reduction
12.6 Tons
e-Wastes
Recovered
Through Recycle
into Education
Project
145,832 m3
Total Water
Consumption
125 MWh
Renwable
Energy
Production
227,592 Gj
Energy Saving
100%
Rate of Renwables
in Electricity
Consumption
Main Targets
Short Term
Target
Mid-Term Target
Meeting electricity need from
renewable sources
-
-
Renewable energy investments
Reaching Net Zero operating level
Reducing GHG emissions
Recycling all wastes
0.8 MW
Installed
Power
Investment
(2022)
300 MW SPP,
9.6 MW WPP
Installed Power
Investment
(2023-2025)
-
-
100%
(2022)
-
-
-
Long Term
Target
100%
(by 2030)
300 MW SPP,
27.6 MW WPP
Installed Power
Investment
(2026)
100%
(by 2050)
55% (by 2030)
2021
Performance
2022
Performance
Current Status
Towards Target
100%
100%
18.7 MW
Installed
Power
19.5 MW
Installed
Power
-
-
-
414,911
ton CO2e
emission
reduction
-
Completed
Completed
Positive development
Negative development
Ongoing
Environmental Management
Due to the responsibility on the overall
sustainability strategy, Turkcell Board
of Directors is the highest body also
responsible for the Company’s envi-
ronmental management processes.
Similarly, the Integrated Value Creation
Committee and
the Sustainability
Committee are also responsible for the
strategic and planning level manage-
ment of environmental sustainability
processes. The committees are respon-
sible for evaluating the gathered per-
formance results and reporting both
to the Board of Directors and all our
stakeholders via the Integrated Annual
Reports. Corporate Communication
and Sustainability Directorate is re-
sponsible for the coordination and
planning activities in the management
of our environmental impacts, primar-
ily the climate change. Besides, all our
units responsible for the management
of business processes and assets
where the impact occurs, are also re-
sponsible for carrying out activities
for increasing the performance and
reducing the environmental
impact.
All senior executives have individual
objectives in the fields of environment
and climate, and these objectives are
monitored on the basis of KPIs.
Environmental management across the
company is carried out according to
the principles stated in the
Turkcell Environmental Policy. The ne-
cessity to comply with all legal regu-
lations binding Turkcell is the minimum
norms of operation. In this scope, in
2022, no events violating environmen-
tal regulations have occurred due to
Company activities and decisions, no
complaints have been directed at the
Company management in this regard,
and no monetary or non-monetary fines
have been issued for non-compliance.
Various
international system stand-
ards are being followed for the effec-
tive management of environmental
management processes. In this scope,
ISO 14001 Environmental Management
System Standard, ISO 50001 Energy
Management System Standard and
ISO 14064 Greenhouse Gas Calculation,
Reporting and Verification System
Standards are the internationally ac-
cepted management systems that we
adhere to. The validity of the system
standards is certified with independent
audits performed periodically to ensure
system reliability and continuity. You can
access the
certificates for
the standards we follow from the cor-
porate web site.
Board of Directors
Final decision making body for climate
change related issues
Periodic
information
provisions
INTEGRATED VALUE CREATION COMMITTEE
EARLY DETECTION OF RISK COMMITTEE
Periodically reports ESG activities
to the Board of Directors; and
inform relevant Baord Committees
Executive
Officers
Identifies environmental and climate
risks that could impact the existence,
development and continuation of the
company; conducts risk mitigation
studies
SUSTAINABILITY COMMITTEE
CORPORATE RISK MANAGEMENT
Defines and implements policies,
short, medium and long term actions
inline with ESG priorities, risks and
opportunities
Assesses risks and reports mitigation
measures to the Early Detection of
Risk Committee
Preparation
of bimonthly
risk reports
CORPORATE COMMUNICATIONS
AND SUSTAINABILITY DIRECTORATE
RISK DIRECTORATE
Conducts environmental and
climate related corporate
engagements
Conducts environmental and
climate risks and opportunities
182 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A1.2; SPK A2.2; SPK A2.4; SPK A2.3; SPK A3.1; SPK B5; SPK B7; SPK B11; SPK B12
SPK A2.2; SPK A2.4; SPK A3.1; SPK B1; SPK B4; SPK B5; SPK B7; SPK B10
GRI 2.24
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 183
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Environmental management processes
are carried out with a risk and oppor-
tunity-based approach. Environmental
risks identified through corporate risk
management activities include the risk
components, primarily climate change,
which may be caused by our operations
or may negatively affect our business
performance. Identified risks and op-
portunities are managed by convert-
ing them into specific performance and
time-based SMART targets within scope
of the integrated value creation mod-
el and the sustainability strategy. In this
regard, during the last reporting period,
KPIs were set and assigned to all compa-
ny employees including our CEO, and are
periodically monitored at least on an-
nual basis depending on their subjects.
The studies carried out and the outputs
gathered in scope of the environmental
strategy are evaluated on their financial,
operational, legal compliance and en-
vironmental aspects and also reviewed
during internal auditing activities.
You can find the list of
environmental performance indicators
and performance values from the
APPENDIX4- Performance Indicators
list.
In the Turkcell value chain, which has a
wide operational structure, many assets
and business processes with environ-
mental impact are present. Across these
processes and assets, the management
of environmental impacts and carrying
improvements and
out performance
control activities require a significant fi-
nancial resource allocation. In this con-
text, the amount of our renewable ener-
gy investments is 97.8 million TL in 2022.
Various training activities are held for
improving the knowledge, experience
and awareness of company employ-
ees in environmental effect manage-
ment. In this scope, all Turkcell employ-
ees participated in environmental and
sustainability training in 2022.
In prize contests we hold, we encour-
age our employees to adopt environ-
mental sustainability as a business val-
ue, and provide their participation and
support. We recognize our employees’
activities that support performance in-
creases in line with our environmental
objectives with incentives and rewards.
In this scope, the first 3 employees who
completed their sustainability training
in 2022 were gifted electric scooters,
the employee who brought in the most
electronic waste was gifted an electric
bicycle, the second employee was gift-
ed a smart watch and the third a blue-
tooth headset.
Environmental
Investment Spendings
(TRY million)
.
5
0
6
2
Investment Costs
.
8
7
9
2021
2022
Climate Change
Climate change is currently consid-
ered as one of the most material issues
which creates many acute and chronic
risks on the physical, social and eco-
nomic environment worldwide and on
global business life. Since it accounts
for the most significant part of impacts
emerging from Turkcell’s activities, it
is the most fundamental element of
the Positive Imprint to the Environment
strategy. Almost all of our environmen-
tal management activities are direct-
ly or indirectly related to the climate
change.
Participation in international initiatives
forms an important part of the efforts
against climate change. In this scope,
Turkcell was among the first 8 opera-
tors worldwide and the first GSM op-
erator in Turkey that joined the GSMA
Mobile Net Zero initiative formed to
reach the net zero objective in the tel-
ecommunications sector. On the oth-
er hand, another effort that supports
our net zero objective is our study to
convert our emission targets into sci-
ence-based target systematics. We
have made our application with our net
zero objective plan formed in scope of
the SBTi initiative. In the upcoming peri-
od, we expect our objective plan to be
approved by SBTi after the necessary
evaluation processes. On the other
hand, we participate every year in the
international investor initiative Carbon
Disclosure Project, where our efforts
against climate change are evaluat-
ed in a wide scope from governance
structure to the risk-opportunity sys-
tematic, from the improvement activi-
ties we perform to the performance we
achieve. According to study results de-
clared in 2022, Turkcell’s CDP Score was
assessed as A- and Turkcell was the
industry leader in Turkey. Apart from
these, our environmental and climate
performance is evaluated with various
aspects within the scope of the Borsa
Istanbul Sustainability Index and the
MSCI ESG Index.
Management of
Climate Risks and
Opportunities
Climate change risks directly in-
fluence Turkcell’s business opera-
tions. Measures are taken against
extreme weather events and natu-
ral disaster risks caused by climate
change and studies are carried
out by foreseeing the increase in
average temperatures in the long
term. In our company, the impacts
and results of opportunities and
risks caused by climate change
are evaluated and tracked in the
Corporate
Risk Management
framework. Our energy-focused
activities are focused on environ-
mentally friendly, green energy
sources inline with the Sustainable
Development Goals. In order to
manage our energy dependence,
we aim to cover 100% of our en-
ergy requirement with renewable
sources by 2030.
184 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A2.2; SPK A2.4; SPK A3.1; SPK B4; SPK B5; SPK B7; SPK C1.10
GRI 2.24
SPK A2.2; SPK A2.4; SPK B8; SPK B13
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 185
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Greenhouse Gas Emissions
Greenhouse gas emissions caused by
our operations are comprehensive-
ly mapped and calculated inline with
ISO 14064 standard. Calculations per-
formed in Scope 1 and Scope 2 levels in
the previous periods were expanded in
2021 with the addition of indirect emis-
sions at Scope 3 levels. In the reporting
period, mapping studies were repeat-
ed by adopting the updated ISO 14064
standard, and all 6 emission categories
were included in the calculation stud-
ies. The calculations performed are in-
dependently audited.
In the reporting period, total green-
house gas emissions were 1,349,268
Tons CO2e. 16,178 Tons CO2e of this
amount were fuel-related direct emis-
sions (Category 1), 0 Tons CO2e were
electricity consumption-related indi-
rect emissions (Category 2), 1.333.090
Tons CO2e were other indirect emis-
sions (Categories 3-6).
On the other hand, according to rel-
ative emission amount evaluation
including Category 1
performed by
and Category 2 emissions, emission
per data usage in 2022 were 3.6 tons
CO2e/Petabytes and emissions per
net income were 0.025 tons CO2e/
Thousand TRY.
In the reporting period, 414,911 tons
CO2e of carbon emissions caused by
our activities were offset by carbon
certificates formed in YEK-G Standard.
Greenhouse
Gas Emissions
(Tons CO2e)
5
2
0
8
0
1
,
8
8
9
3
8
3
,
7
2
6
0
8
,
,
9
3
9
0
4
4
0
0
7
3
6
,
9
0
4
9
1
,
6
9
9
4
,
1
4
9
2
1
,
5
2
2
2
2
1
,
8
7
1
,
6
1
0
9
0
3
3
3
0 1
,
.
Category 1
Category 2
Category 3-6
2019
2020
2021
2022
Relative Greenhouse
Gas Emission
239.8
143.6
0.018
0.011
2020
110.6
0.004
0.003
2021
3.6
0.025
0.025
2022
0.023
0.016
2019
Greenhouse emissions
per net income (tons
CO2e/TRY Million)
Greenhouse emissions
per data usage (tons
CO2e/Petabytes)
Greenhouse emissions
per subscriber (tons
CO2e/subscriber)
414,911
tons CO2e
GHG emissions
offset
Energy Management
We are carefully managing our energy
consumption, which forms the most sig-
nificant part of our environmental im-
pact portfolio, especially greenhouse
gas emissions, according to ISO 50001
Energy Management System Standard.
The two main focuses of our energy
management studies are efficiency
studies to reduce total and relative
consumption and electricity produc-
tion activities from renewable sources.
In the reporting period, total energy
consumption was 3,556,334 GJ. 202,865
GJ of this amount was from fuel con-
sumption, 3,086,114 GJ was from pur-
chased electrical energy consumption,
and 267,355 GJ was from produced
renewable energy. Since 2021, all pur-
chased electrical energy was procured
from iREC/YEK-G certified renewable
energy producers. The share of renew-
able energy in energy consumption has
risen from 2.67% in 2021 to 7.52% in 2022.
On the other hand, according to rela-
tive energy consumption amount eval-
uation, energy consumption per data
usage was 791.9 GJ/Petabytes, ener-
gy consumption per net income was
0.066GJ/Thousand TRY in 2022.
Relative Energy
Consumption
225.2
0.017
0.012
2020
165.9
0.018
0.011
2021
964.0
0.104
0.072
2021
791.9
0.066
0.066
2022
Energy usage per
net income (tons
CO2e/ TRY Million
Energy usage
per data usage (tons
CO2e/Petabytes)
Greenhouse emissions
per subscriber (tons
CO2e/subscriber)
Total Energy Consumption by Source (GJ)
Fuel Consumption
2019
425,078
Natural Gas 231,481
Gasoline 895
Diesel
192,702
Renewable Energy Produced
3,924
Solar Power 3,924
Wind Power 0
Renewable Energy Purchased
- Electricity
0
2020
379,049
204,163
985
173,901
5,760
5,760
0
2021
281,811
66,365
1,053
214,393
99,265
2,351
96,914
2022
202,865
27,780
47,958
127,127
267,355
3,014
264,341
144,000
3,342,897
3,086,114
Total
429,002
528,809
3,723,973
3,556,334
186 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK A2.2; SPK A2.4; SPK A4.1; SPK B9; SPK B11; SPK B16; SPK B17; SPK B23
SPK A2.2; SPK A2.4; SPK B9; SPK B11; SPK B16; SPK B17
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 187
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Energy Solutions
We established our subsidiary Turkcell
Energy Solutions in 2017 to reduce en-
ergy procurement costs, ensure pro-
curement security and reduce climate
impacts. Since the day it was estab-
lished, our subsidiary has increased its
renewable energy investments to in-
crease its installed power every year,
and reached an installed power of 1.5
MW with a solar energy investment
of TRY 11.3 million in 2022. With these
investments, we have reached an im-
portant development in our transfor-
mation strategy from a 100% renewa-
ble electricity user to a digital operator
which produces its own electrical en-
ergy during the reporting period. The
renewable energy we produced
in
2022 reached an amount equivalent
to annual electricity consumption of 41
thousand houses. With this production,
we covered the energy requirement of
2,750 base stations.
Our Group’s first solar power plant
located
in the Turkish Republic of
Northern Cyprus (Vadili region) gener-
ates 1.7 million kWh of electricity annu-
ally. It also reduces the demand load
on the Turkish Electricity Authority in
Cyprus (KIB-TEK) network and contrib-
utes to the electricity grid’s digital infra-
structure. Apart from this, thanks to this
power plant, we prevent the release
of 943.5 tons of CO2e emissions to the
atmosphere.
Our Ankara Data Center is the first
data center in Turkey to produce its
own electricity with solar panels. With
the new generation solar energy pan-
els
lot
installed above the parking
area of our data center building, we
can cover some part of the electricity
we consume with renewable sourc-
es. Our data center building produces
408 thousand kWh electricity annual-
ly, which also prevents 226 tons CO2e
of greenhouse gas emissions per year.
Our Gebze Data Center received the
Uptime OS Operational Sustainability
Gold certificate for the first time in
Turkey in 2018, which was followed by
our Ankara Data Center, making us the
only operator in Turkey with two data
centers fulfilling these standards. The
solar power plant, which became op-
erational in January 2023 in Ankara
Data Center uses sun-tracking and
double-faced panel technologies. This
enables the solar panels to position
themselves to receive the sun rays at
the steepest angle throughout the day,
as well as utilize the light reflected from
the surface for power generation. This
system operating under the self-con-
sumption model, is a rare example in
Turkey in terms of the technology used.
We generate electricity from renewa-
ble energy with the solar energy pro-
ject installed on the roof of Turkcell
Adana Plaza building. This self-con-
sumption model enables us to use
the energy produced for covering the
electricity requirement of Adana Plaza
building. We save approximately 31.7
tons of CO2e greenhouse gas emis-
sions per year with 86.3 thousand kWh
electricity produced annually.
In 2022, we installed solar panels on 507
base stations to cover their energy re-
quirement. With these applications, in
December 2022, we have generated 125
MWh of energy. 15 Portable Solar Field
solutions, which are a result of our in-
novative studies, enable us to cover the
demand occurring in regions where the
population increases periodically and
the access to energy sources is limited.
We contribute to our sustainability ob-
jectives with the environment-friendly
features of these communication sta-
tions installed in various locations.
By continuing our investments in the up-
coming periods, we aim to reach 300
MW of additional installed power by
2025. When these investments are com-
pleted, we aim to provide 65% of the total
electricity consumption of Turkcell Group
through self-generation. In this way, on
the one hand, the energy need will be met
mostly from renewable resources, and on
the other hand, protection against cost
and supply risks that arise from the ener-
gy market will be ensured.
Energy Efficiency
We strive to reduce our environmental
impact and our energy costs by reduc-
ing our energy consumption to the low-
est level possible. The efficiency studies
we perform for this purpose include the
use of energy efficient equipment and
behavioral efficiency implementations
regarding consumption patterns.
Personal consumption habits changed
by the nature of the pandemic period
underwent another profound change
with the new working models emerged
after the pandemic. During the reporting
period, we resarched the consumption
habits of this new normal and tried to
determine the efficiency potentials.
On the other hand, we continued replac-
ing equipment with energy efficient ones
and making efficiency improvements in
network equipment, which forms a sig-
nificant portion of our efficiency efforts,
in the reporting period as well.
Through the analysis and implementa-
tion of energy efficiency and savings ini-
tiatives within our network, we achieved
63.22 GWh of savings. As part of our
energy focus, the value of our savings
efforts, which were carried out under
6 main focuses and 93 subtitles, such
as Field Active Equipment - 31.37 GWh,
Unson & Feature & Vendor - 11.42 GWh,
CNX - 8.06 GWh, Energy Climate Control
- 7.6 GWh, Transport Network - 3.18 GWh,
and Ran Modernization - 1.59 GWh, ex-
ceeded over TRY 200 million.
Even though it is not a requirement in
Turkey yet, we already stipulate the Eco-
Design criteria in the air conditioning
equipment we use and the current reg-
ulations specific to the device. This way,
by providing the use of A energy class
products, we aim to increase energy
efficiency. With energy efficient network
equipment, climate control devices in
data center system rooms and our latest
technology products, we are working
on creating a more efficient energy in-
frastructure, therefore using our existing
energy resources with more awareness
and providing energy savings. We de-
sign our buildings for maximum benefit
from the sunlight, and we use less ener-
gy for heating and cooling our buildings
with heat insulation details such as insu-
lated wall materials and outdoor facade
coatings.
Energy Savings (GJ)
151,143
110,304
193,414
227,592
2019
2020
2021
2022
By prefering hybrid vehicles in our company fleet, we lower our emissions per kilo-
meter. In 2021, we replaced 677 vehicles with hybrid engine vehicles. This way, we
reduced the emissions level of 12.7 gr/km to 9.1 gr/km. Therefore, we achieved 25%
CO2e emission savings in our total fuel consumption in 2022.
With our Turkcell Kopilot app, which adds a new dimension to the au-
tomobile driving experience with its superior features, we perform fuel
usage, travel and user analyses to indirectly provide reductions in fuel
consumption. With this app, we contribute towards transformingcom-
panies’ fleet management to a model with fewer emissions.
Thanks to our solar
power plant, we avoid
676 tons CO2e
of GHG emissions
By producing
86.3
thousand kWh
electricity
annually
We save
approximately
31.7 tons
CO2e greenhouse gas
emissions per year
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VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
We are working on
performing a second
reverse osmosis on
the wastewater of
the reverse osmosis
system in our Ankara
Data Center and re-
using this water in
the building. With this
implementation, we
aim to reduce in the
building’s wastewater
rate from 40% to 16%.
Efficiency in Data Centers
We prioritize energy and water efficiency in the design of Turkcell Data
Centers. In this scope, we work for reducing the PUE value, which reflects
energy efficiency, and the WUE value, which reflects the efficiency of water
usage. With design PUE values of 1.3, Turkcell data centers are noticeably
lower than the world average of 1.55. The current WUE value is 1.81, and it is
targeted to be reduced below 1.8 in the upcoming periods.
As we meet electricity consumption, which is the most prominent impact
component of data centers, with either self-generated renewable energy
or with purchased renewable energy with iREC certificate, the emission
values of our data center operations are quite lower than their peers.
In our data centers, we utilize rainwater as gray water after various filtering
processes for household consumption and continue our efforts for recycling
wastewater and its utilization in different areas.
All these environmental impact management implementations in our data
centers generate two different positive values. Firstly, with these efforts, the
environmental impacts caused by Turkcell operations are significantly re-
duced, and we also receive a cost advantage with the savings we achieve.
On the other hand, we allow the customers we serve to significantly reduce
their indirect environmental impacts, especially the greenhouse emissions.
Therefore, we provide a local and environmentally friendly alternative to
our customers who have high awareness on environmental impact man-
agement and who adopt sustainable business models.
Water Management
The efficient use of water, a vital natural
resource, is among the impact areas we
track as part of our environmental strat-
egy. We do not use water resources di-
rectly in developing
our products and services. Nevertheless,
since we are a responsible company
in the use of resources, we announce
our water consumption in our annual
reports.
Our fundamental water consumption is
comprised of the consumptions caused
by the daily needs of our employees and
covered by utility water. During the peri-
od, a total of 145,832 m3 water was con-
sumed, and our water consumption per
employee was 4.5 m3. With efficient fix-
ture and consumption implementations,
we are working on reducing this amount
as well.
Through the modifications in cooling
equipments within the scope of the
GEM4 Project that we conducted in the
past period, we had achieved savings
of 40% in water consumption per mod-
ule. We used to purify utility water with
reverse osmosis process and use this
purified water in the devices. However,
after this process, 40% of drawn utility
water was discharged as waste. With
the modifications made on the device
during the reporting period, the reverse
osmosis process is no longer necessary
and wastewater formation is prevent-
ed. The same system was utilized in the
GEM5 project that we developed, and
the forming of wastewater was avoided.
Total Water
Consumption (m3)
236,357
154,057
134,634
145,832
2019
2020
2021
2022
Water Consumption per
Employee (m3/employee)
4.3
2020
2.5
2021
4.5
3.5
2021
2022
While striving to reduce water consumption and increase recy-
cling as part of our activities, we also provide support for our
customers to improve their water consumption with the servic-
es we provide. With our Smart Water Meter application, lever-
aging IoT technologies, the meters can be read and valves can
be opened/closed remotely, consumptions can be monitored in-
stantly, enabling the water consumption to be controlled and the
natural resources to be preserved.
We offer our “Filiz” application to farmers in order to protect scarce water re-
sources and support sustainable agricultural activities which is a field where
water consumption is high. Turkcell Filiz communicates critical information
such as requirements for plant development, water need and disease risk to
farmers, enabling them to take necessary measures. Turkcell Filiz collects this
data by monitoring various soil and air parameters through sensors and in-
corporating them into algorithms created with artificial intelligence. Most of
the farmers in Turkey lack access to technical support and “Filiz” is also note-
worthy for its ability to reach agricultural engineers through digital channels.
In this regard, we enable access to technical information for those who need
it, through digital channels. Integrating these capabilities with technology,
we support sustainable agriculture.
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Waste Management
We adopt the approach of generat-
ing minimum waste and maximum re-
cycling in the management of waste
caused by our operations. We per-
form waste management activities
with the methods and implementa-
tions specified in legal regulations.
In this regard, we first provide the
efficient use of materials such as pa-
per, toner and plastic to reduce the
production of waste, and we sepa-
rate the produced waste and recycle
them through
licensed companies.
We collect used batteries separate-
ly, and depending on the location,
we recycle them via municipalities
or Portable Battery Manufacturers
and Importers Association. Through
the works we carried in the previous
period, we have received the Basic
Level Zero Waste Certificate, as the
first non-manufacturing company. In
2022 we continued our efforts in this
area. With the Waste Management
Center we set up, we provide in-site
transformation of solid food wastes
collected in the mess hall and office
floors to produce soil-improving or-
ganic fertilizer.
We dispose of dangerous waste
caused by our activities such as bat-
teries, toners, electronics, cables and
consumables resulting from our op-
erations through
licensed recycling
companies which have the required
competency within the respective reg-
ulatory framework. Thus, we prevent
hazardous waste from interacting with
the environment. On the other hand, in
order to prevent waste oil generated in
our offices from mixing with domestic
wastewater, we use oil trap systems.
By selling second hand and other dis-
carded items to companies utilizing
older technologies, we achieve reuse
of products. We aim to utilize 100% of
network infrastructure devices with-
in these sales. Hence, we contribute to
the circular economic system where
resources are not needlessly discard-
ed or wasted but recycled. As part of
the Modem Renewal Project launched
in 2019, we refurbish or repair our mo-
dems no longer used by our customers
and offer them to customers in need
of these products. Within the scope of
this project, we replaced 90 thousand
set-top boxes, 150 thousand Superbox
products, 83 thousand ONTs (optical
network terminals) and 222 thousand
modems. 25% of fiber modems used in
2022 (approximately 162 thousand), and
28% of ADSL modems (approximately
60 thousand) were covered with mo-
dems refurbished in 2022. Additionally,
28% of refurbished STBs, 41% of ONTs
and 68% of Superboxes were used in
the same year and put to service of our
customers.
We are well aware of the negative ef-
fect of electronic products, that have
completed their lifespan due to improp-
er management, as electronic waste on
the environment, and we are conduct-
ing our activities in this field with utmost
care. In order to turn this situation into
an opportunity, we utilize products in
electronic waste class which are rich in
recyclable material content as part of
the circular economy and provide both
financial savings and also the efficient
use of limited resources. In this context,
83.5 tons of e-waste generated in 2022
was recycled at a rate of 98.2%. With
these efforts, 63.4 raw materials were
saved and 5.7 tons of CO2e greenhouse
gas emissions were prevented.
Total Waste Amount (tons)
Dangerous Wastes
Non-Dangerous Wastes
Total
2019
Disposal 0
Recycled 3,567
Disposal 0
Recycled 1,518
5,085
2020
0
2,745
0
953
3,698
2021
0
2,158
0
1,342
3,500
2022
0
1,609
0
1,042
2,651
Recycle into Education
As part of the Recycle into Education project, technological wastes brought
to recycling boxes in Turkcell stores (unusable mobile phones, computers,
tablets and accessories etc.) are sent to recycling in partnership with
the authorized organization Informatics Industry Association (TÜBİSAD).
All proceeds from recycling are donated to TEGV (Education Volunteers
Foundation of Turkey) to be used for children’s qualified education.
Turkcell provided 29.4 tons of electronic waste for recycling in scope of
this project since its inception in November 2019, 12.7 tons of this amount
was in 2022. All income generated was donated to TEGV for children’s
qualified education and contributed to the education of 382 children. In its
prize-awarding techno-waste collecting campaign among its employees
on 27 December, at the end of 2022, Turkcell collected approximately half
a ton of wastes and contributed to the recycling of wastes, while raising
awareness among its employees on the efficient use of resources and re-
cycling, and contributed to education at the same time. Turkcell’s General
Manager and the President of the Board of Directors also took part in the
contest, and by putting techno-wastes from their households into the re-
cycling box, showed their sensitivity in this topic.
Since November
2019 a total of
29.4
tons of electronic
waste has been
recycled through
this project.
10,000
saplings
On behalf of our customers
who prefer environmentally
friendly invoices, we have
planted 10,000 saplings in
the Turkcell Invoice Forest.
2019
2020
2021
2022
5,599.89
4,220.18
3,691.52
3,088.27
Secondhand sales
and discarded units
sale amount* (tons)
* We are aiming to utilize 100% of network related wastes as discards or with secondhand sales.
As part of the environmentally
friendly
invoice campaign, we
send invoices to customers by
SMS or e-mail instead of a prin-
ted invoice. This way we achieve
both efficiency in paper use and
reduce our posting expenses. In
2022, through the environmental-
ly friendly invoice we saved 2,216
tons of paper and 2,037 tons of
CO2e emissions, apart from dis-
patch effects. On the other hand,
we continued planting saplings
on behalf of customers who pre-
fer the environmentally friendly
invoice. With this practice, we
planted 10,000 saplings at the
Turkcell invoices forest.
We carry out all transactions
from new subscription to tariff
changes, and from buying a new
SIM card to settling invoices at
Turkcell stores with a digital sig-
nature on a tablet in just secon-
ds. Digital signature also makes it
possible to subscribe to services
that require at-home installation
for our customers such as DSL,
Superbox and TV+. We expect to
reduce paper consumption by
30% while digitizing approxima-
tely 11 million pages of documents
annually with digital signature.
Meanwhile, we enable compa-
nies from all industries to use the
digital signature service.
The smart legal document auto-
mation solution, which we deve-
loped for our legal department
that traditionally sees high paper
consumption, helps reduce paper
use and manual processes throu-
gh robotic process automation.
Accordingly, we reduce error risk,
while becoming more environ-
mentally friendly and operating a
more effective system.
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Appendices
APPENDIX-1: Awards Received by Turkcell in 2022
APPENDIX-2: Turkcell ISO Certificates
APPENDIX-3: Cooperated National, International and Non-Governmental Organizations
APPENDIX-4: GRI Content Index
APPENDIX-5: UNGC Progress Chart
APPENDIX-6: Sustainability Principles Compliance Framework Table
APPENDIX-7: Greenhouse Gas Verification Statement
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
APPENDIX-1: Awards Received by Turkcell in 2022
Our works in 2022 have also received the
appreciation of our stakeholders. The
projects and applications we have ac-
complished within the year were deemed
worthy of reward by many organizations.
PSM Awards
In PSM Awards, organized by Payment
Systems Magazine, Paycell Forest Project
was awarded the Silver PSM prize in
Social Responsibility category, and
Financell Credit Process project won
the Silver PSM Prize in the Innovative
Customer
Interaction and Experience
category.
Media Excellence Awards
With Gift Assistant Page, which facilitates
customers’ shopping
journey, Turkcell
Pasaj was awarded first place in Utility
/ Productivity Apps category, which
awards
in the technology
ecosystem and applications that add
value to life.
innovation
Customer Centricity World Series
With the Customer Movement Program,
started in September 2019 to integrate
customer-centric view in all disciplines
of the company, Turkcell won third place
award in its category at the Customer
Centricity World Series. At the same com-
petition, with its Network Experience pro-
ject, Turkcell also won the second place
prize in the “Complaint Management”
category.
Turkey CXA’22 Customer Experience
Awards
As part of the Turkey CXA’22 Customer
Experience Awards, organized in 2022 by
Awards International based in England;
Turkcell has been awarded;
Golden Prize for Best Customer Feedback
and Insight category, with the Billing
Process
Redesign with Customer
Feedback Project, where we redesigned
the billing experience from beginning to
end according to customer feedback, ex-
pectations and needs
Silver Prize for Best Innovation in Customer
Experience (Large Companies) category,
with the RPA project “Let the Robot Do It”
commenced to improve digitalization at
the corporate mobile call center
to
Silver Price for the Best Customer Service
(Up
10,000 Employees) category,
with the “Outbound Excellence” pro-
ject actualized with a focus to improve
the channel experience with analytic
qualifications
Bronze Prize for Best Use of Technology
category, with the sum of 8 different pro-
jects realized to improve the mobile net-
work experience from end to end
Dubai Gitex Global event “Next
Generation Data Centers” prize
Turkcell’s SDN and Automation focused
next generation Turkcell Data Centers,
which provide geographically backed-
flexible and easy service with
up,
up-to-date technology to its ICT, DSS
and Corporate customers, have been
deemed worthy of price in Dubai Gitex
Global event.
have
Brandon Hall Group Excellence
Awards
We
Best
Technological Advancement Category
bronze award with Turkcell CaseLab
project, in Brandon Hall Group Excellence
Awards Testing and Learning Evaluation.
awarded
been
Crystal Apple Awards
In 2022, Turkcell was awarded 5 sepa-
rate awards in the Crystal Apple Awards,
named the most prestigious award of the
advertising world.
Turkcell won the - Crystal Prize in TV &
Cinema / Telecommunication Brands
and Services category with #ÇokÇekici
Come to Çaykara communication; 2
Bronze prizes in Digital, Social Media
and Activation / Real Time Action and
Influencer & Celebrity Communication
with Turkcell Pasaj - Melis Sezen / In
My Hand This Moment communication;
Bronze prize in Press - Sectoral Categories
/ Service category with TV+ - Better
Stories - Joker communication; Bronze
prize in Radio and Audio / Best Radio and
Audio Campaign category with Fizy -
Listen to Your Music communication.
Achievement in Customer Excellence
Awards
With its efforts and studies to keep its
customers always feeling safe, valua-
ble and happy, Turkcell was awarded
4 separate awards in Achievement in
Customer Excellence Awards organized
in 2022 by şikayetvar.com.
Turkcell was awarded Diamond Award
in Communication
(GSM) category,
while TV+ won Digital Platform Category
Golden Price, and Superonline in Internet
Service Suppliers Category and Paycell
in Electronic Cash Applications Category
won Silver Awards.
Stevie Awards for Sales & Customer
Service
With its Retail Channel Delivery Project,
Turkcell was awarded the Bronze Stevie
Prize in the Technology Sectors Business
Development Success of
the Year
Category in the Stevie Awards for Sales &
Customer Service organized in 2022.
Stevie Awards for Women in Business
Awards
Turkcell’s Women Developers of the
Future Climate Ideathon project, where
women develop solutions for the cli-
mate crisis using technology, won the
prize in “Achievement in Women-related
Corporate Social Responsibility” in the
Stevie Awards for Women in Business
contest.
Ipra Golden World Awards
Turkcell Vadi won 3 golden prizes at once
from IPRA Golden World Awards, the
world’s most respected public relations
award. Many projects from across the
world competed in the prize program, or-
ganized by International Public Relations
Association, and Turkcell Vadi project
won the prizes in Art Communication,
Event and Sponsorship categories.
APPENDIX-2:
Turkcell ISO
Certificates
ISO 9001
Quality Management System
ISO 14001
Environmental Management
System
ISO 14064
Greenhouse Gas Calculation
and Verification Management
System
ISO 22301
Business Continuity
Management System
ISO 27001
Information Security
Management System
ISO 45001
Occupational Health and
Safety Management System
ISO 50001
Energy Management System
and encompassing the most important
brands of the digital world.
Felis Awards
In scope of the Felis Awards, one of the
most prestigious awards of the adver-
tising world, Turkcell was awarded 10
awards in total, five of them being Felis
Awards and four of them Success Awards.
Digital Transformation of the Year in
Telecommunications Sector Award
In the SAP Transformation Awards of the
Year Ceremony, where the world’s lead-
ing technology supplier
in corporate
applications and software SAP evaluat-
ed the most successful innovation and
digital transformation projects, Turkcell
Finans+ won the Digital Transformation
of the Year Award in Telecommunications
the Central
Sector Award with
Finance project, actualized
in scope
of its Next Generation Finance Digital
Transformation works. Central Finance
Project was also awarded the Finance
Digital Transformation of the Year Award.
International Customer Experience
Awards (ICXA)
Turkcell Global Bilgi was awarded first
prize in the world in the Best B2B Customer
Experience category at the International
Customer Experience Awards with its
Telsell Project actualized with Coca-Cola
Beverages.
Europe’s Best Workplaces 2022
Turkcell Global Bilgi was chosen “Best
Employer of Europe” among companies
with 500+ employees in the Europe’s Best
Workplaces 2022 Awards by Great Place
to Work Institute.
Deloitte Technology Fast 50
Paycell was awarded
“Deloitte
the
Technology Big Star” award organized
by Deloitte the 5th time in a row, which
determines the 50 fastest growing tech-
nology companies of Turkey and allows
them to expand to the global market.
Digital Impact Awards
Turkcell, with Digital Construction
Management software that allows for
end-to-end tracking and archiving of
documentation in construction projects
in digital form, won the Bronze award in
the Digital Impact Award organized in
2022 in London.
SMARTIES MMA Awards
Fizy won the Experimental-Innovative
Technology Category Bronze award in
SMARTIES 2022 MMA Awards.
IDC Turkey Future Enterprise Awards
Turkcell’s Let the Robot Do It RPA Project
was awarded first place in IDC Turkey
Future Enterprise Awards Best in Future of
Work Category.
Supply Chain Excellence Awards
Turkcell My Main Partner Program, ac-
tualized to support Startups in purchas-
ing processes and to create a Startup
ecosystem, was awarded a prize at the
Supply Chain Excellence contest, organ-
ized for the 26th time in 2022 in London.
Study
to Determine
Special Achievement in GIS Award
Fixed
GEDI,
Infrastructure Areas of Investment and
Sales Potential, was awarded Special
Achievement in GIS Award by the world’s
largest geographical software company
ESRI in the contest organized to award in-
novative studies in the field of geograph-
ical information systems and applied by
more than 100,000 projects.
Youth Award
Turkcell was among the Most Desired
Technology Companies to Work In de-
termined in Youthall’s survey among 85
thousand university students.
Insider Lift Awards 2022
Successful personalization and A/B
Testing scenarios applied in the Turkcell
Application was awarded an award in
the Most Successful In-App Use Category
Insider
in Lift Awards, organized by
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
APPENDIX-3: Cooperated National, International and
Non-Governmental Organizations
APPENDIX-4: GRI Content Index
Organization Name
Level of Engagement
3GPP
AUSDER
BCTR
BGD
The 3rd Generation Partnership Project
Intelligent Transportation Systems Association of Turkey
Blockchain Turkey Platform
Membership
Membership
Membership
Information Security Association (ISA)
Board of Directors Membership (Tümay Ünal)
BUSİAD
Bursa Industry and Businessmen Association
DEİK
ECTA
Foreign Economic Relations Board of Turkey
European Competitive Telecommunications Association
EDİDER
Digitalization in Energy Association
ENDEAVOR
Association for Supporting Active Entrepreneurs
Membership
Membership
Membership
Membership
Membership
ESB
ETİD
ETSI
FKB
GSMA
GTI
IAPP
IIC
Access Providers Association
Electronic Commerce Operators Association
European Telecommunications Standards Institute
Financial Institutions Union
Global System for Mobile Communications Association
Global TD-LTE Initiative
International Association of Privacy Professionals
International Institute of Communication
Board of Directors Membership (Mutlu Korkmazer,
Yılmaz Küçük)
Membership
Membership
Membership
Membership
Membership
Membership
Membership
IPTV
ASSOCIATION
Internet Based Television Technologies Association
Membership
ITU
International Telecommunication Union
Membership
M-TOD
Mobile Telecommunication Operators Association
MMA Turkey Mobile Marketing Association
MOBİSAD
Mobile Communication Tools and Information Technologies
Businessmen Association
Independent Industrialists and Businessmen Association
Next Generation Mobile Networks
Payment and Electronic Money Association
Turkey People Management Association
Board of Directors Membership (Murat Erkan, Serhat
Demir, Gediz Sezgin)
Membership
Membership
Membership
Membership
Membership
Membership
GRI 2: General
Disclosures
2021
MÜSİAD
NGMN
ÖDED
PERYÖN
SKD
TÜSİAD
TÜYİD
UN Global
Compact
WTECH
YASED
Business World and Sustainable Development Association
Membership
TELKODER
Turkish Competitive Telco Operators’ Association
Membership
TOBB
TUYAD
The Union of Chambers and Commodity Exchanges of Turkey
Membership
Telecommunications Satellite and Broadcasting Business People
Association
Board of Directors Membership (Gülçin Alıcı Gökçe)
TÜBİSAD
Informatics Industry Association
Turkish Industry and Business Association
Membership
Membership
Turkish Investor Relations Society
Board of Directors Membership (Ali Serdar Yağcı)
United Nations Global Compact
Women’s Association in Technology
International Investors Association
Membership
Membership
Membership
Statement of use
Standards for the period 01 January 2022-31 December 2022.
: Turkcell İletişim Hizmetleri A.Ş. has reported in accordance with the
GRI 1 used
: GRI 1: Foundation 2021
Applicable GRI
Sector Standard(s)
:N/A
GRI STANDARD DISCLOSURE
LOCATION
General Disclosures
OMISSION
REQUIREMENT(S)
OMITTED
REASON EXPLANATION
2-1 Organizational details
About the Report (p.28)
Our Offices (p.360) ; Turkcell at a Glance (p.29)
2-2 Entities included in the organization's
sustainability reporting
2-3 Reporting period, frequency and contact
point
About the Report (p.28)
About the Report (p.28)
2-4 Restatements of information
No such restatement has been made
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2-5 External assurance
GHG Independent Assurance Report (p.208-209) -
2-6 Activities, value chain and other business
relationships
2-7 Employees
2-8 Workers who are not employees
Our Strategic Focuses, Initiatives and
Opportunities (p.60-67)
Value-Driven, Responsible Supply Chain
Management (p.168-169)
Employee Demographics in 2022 (p.115)
Turkcell may obtain external service support
as needed for auxiliary tasks related to the
nature of the job, technical reasons, or for
roles requiring expertise such as cleaning,
security, call center, and field support
personnel.
2-9 Governance structure and composition
Board of Directors Structure (p.72-73)
2-10 Nomination and selection of the highest
governance body
Board of Directors Structure (p.72-73)
2-11 Chair of the highest governance body
Board of Directors Structure (p.72-73)
2-12 Role of the highest governance body
in overseeing the management of impacts
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
2-13 Delegation of responsibility for
managing impacts
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
2-14 Role of the highest governance body
in sustainability reporting
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
2-15 Conflicts of interest
2-16 Communication of critical concerns
"2-17 Collective knowledge of the highest
governance body"
2-18 Evaluation of the performance of the
highest governance body
Board of Directors Structure (p.72-73)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Board of Directors (p.10-14)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Board of Directors Structure (p.72-74)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
2-19 Remuneration policies
Board of Directors Structure (p.72-73)
2-20 Process to determine remuneration
Human Capital (p.113)
2-21 Annual total compensation ratio
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Data
regarding
remunera-
tion is con-
sidered as
confidential.
198 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
SPK C2.4
GRI 2.28
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 199
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
GRI STANDARD DISCLOSURE
LOCATION
OMISSION
REQUIREMENT(S)
OMITTED
REASON EXPLANATION
GRI 2: General
Disclosures
2021
2-22 Statement on sustainable development
strategy
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.48-49)
2-23 Policy commitments
2-24 Embedding policy commitments
2-25 Processes to remediate negative
impacts
Human Rights, Business Ethics and Common
Values (p.74)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Environmental Management (p.183-184)
Turkcell Value Creation Process (p.56-57)
2-26 Mechanisms for seeking advice and
raising concerns
Turkcell Sustainability Priorities (p.46-47);
Interactions with Our Stakeholders (p.52-53)
2-27 Compliance with laws and regulations
Competition Management (p.77)
2-28 Membership associations
Turkcell’s Sustainability Initiative Memberships
(p.54-55); Cooperated National, International
and Non-Governmental Organizations (p.198)
2-29 Approach to stakeholder engagement
Interactions with Our Stakeholders (p.52-53)
2-30 Collective bargaining agreements
Human Rights, Business Ethics and Common
Values (p.74)
Material Topics
GRI 3: Material
Topics 2021
3-1 Process to determine material topics
Turkcell Sustainability Priorities (p.46-47)
3-2 List of material topics
Turkcell Sustainability Priorities (p.46-47)
Managing Climate Impacts
GRI 3: Material
Topics 2021
3-3 Management of material topics
GRI 201: Economic
Performance 2016
201-2 Financial implications and other risks
and opportunities due to climate change
302-1 Energy consumption within the
organization
Climate Crisis (p.80); Climate Change (p.100);
Positive Imprint to the Environment (p.180-193)
Climate Crisis (p.80); Climate Change (p.100);
Positive Imprint to the Environment (p.180-193)
CDP Report 2022
Positive Imprint to the Environment (p.187)
302-3 Energy intensity
Positive Imprint to the Environment (p.187)
302-4 Reduction of energy consumption
Positive Imprint to the Environment (p.189)
303-3 Water withdrawal
Positive Imprint to the Environment (p.190)
GRI 302: Energy
2016
GRI 303: Water
and Effluents
2018
305-1 Direct (Scope 1) GHG emissions
Positive Imprint to the Environment (p.186)
GRI 305:
Emissions 2016
305-2 Energy indirect (Scope 2) GHG
emissions
305-3 Other indirect (Scope 3) GHG
emissions
Positive Imprint to the Environment (p.186)
Positive Imprint to the Environment (p.186)
305-4 GHG emissions intensity
Positive Imprint to the Environment (p.186)
305-5 Reduction of GHG emissions
Positive Imprint to the Environment (p.186)
306-1 Waste generation and significant
waste-related impacts
Positive Imprint to the Environment (p.180-183;
192-193)
306-2 Management of significant
wasterelated impacts
Positive Imprint to the Environment (p.180-183;
192-193)
306-3 Waste generated
Positive Imprint to the Environment (p.180-183; 192)
306-4 Waste diverted from disposal
Positive Imprint to the Environment (p.180-183; 192)
306-5 Waste directed to disposal
Positive Imprint to the Environment (p.180-183; 192)
GRI 306: Waste
2020
Pioneering Digital Technologies and Innovation
GRI 3: Material
Topics 2021
GRI 203: Indirect
Economic
Impacts 2016
3-3 Management of material topics
Intellectual Capital (p.140-153)
Social Capital (p.172-177)
203-2 Significant indirect economic impacts
Intellectual Capital (p.140-153)
GRI 413: Local
Communities
2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
Social Capital (p.172-177)
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To be an Integrated Telecommunications Operator Active in a Value Chain Ranging from Fiber Infrastructure to Digital Business Services
GRI 3: Material
Topics 2021
GRI 203: Indirect
Economic
Impacts 2016
3-3 Management of material topics
Manufactured Capital (p.132-139)
203-1 Infrastructure investments and services
supported
Manufactured Capital (p. 132-139)
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GRI STANDARD DISCLOSURE
LOCATION
Enhancing Digital Customer Experience and Satisfaction
GRI 3: Material
Topics 2021
GRI 416:
Customer
Health and
Safety 2016
3-3 Management of material topics
Manufactured Capital (p.132-134)
416-1 Assessment of the health and safety
impacts of product and service categories
416-2 Incidents of non-compliance
concerning the health and safety impacts of
products and services
Manufactured Capital (p.132-134)
Manufactured Capital (p.132-134)
Cyber Security and Data Privacy Protection
GRI 3: Material
Topics 2021
GRI 203: Indirect
Economic
Impacts 2016
3-3 Management of material topics
Manufactured Capital (p.134);
Digital Security and Wellbeing (p.149-151)
203-2 Significant indirect economic impacts
Digital Security and Wellbeing (p.149-151)
GRI 413: Local
Communities
2016
413-2 Operations with significant actual and
potential negative impacts on local
communities
Manufactured Capital (p.134)
Decent Workplace
GRI 3: Material
Topics 2021
GRI 401:
Employment
2016
GRI 402: Labor/
Management
Relations 2016
GRI 403:
Occupational
Health and
Safety 2018
GRI 404:
Training and
Education 2016
GRI 405: Diversity
and Equal
Opportunity 2016
GRI 406: Non-
discrimination
2016
GRI 407: Freedom
of Association
and Collective
Bargaining 2016
3-3 Management of material topics
Human Rights, Business Ethics and Common
Values (p.74); Human Capital (p.112-137);
Equality of Digital and Social Opportunity
(p.172-173)
401-1 New employee hires and employee
turnover
Human Capital (p.117, 129)
401-3 Parental Leave
Human Capital (p.112)
402-1 Minimum notice periods regarding
operational changes
Human Capital (p.113)
403-1 Occupational health and safety
management system
403-2 Hazard identification, risk
assessment, and incident investigation
Human Capital (p.119-120)
Human Capital (p.119-120)
403-3 Occupational health services
Human Capital (p.119-120)
403-4 Worker participation, consultation, and
communication on occupational health and safety
Human Capital (p.119-120)
403-5 Worker training on occupational
health and safety
Human Capital (p.119-120)
403-6 Promotion of worker health
Human Capital (p.119-120)
403-8 Workers covered by an occupational
health and safety management system
403-9 Work-related injuries
403-10 Work-related ill health
404-1 Average hours of training per year
per employee
404-2 Programs for upgrading employee
skills and transition assistance programs
Human Capital (p.119-120)
Human Capital (p.119-120)
Human Capital (p.119-120)
Human Capital (p.123)
Human Capital (p.123-131)
404-3 Percentage of employees receiving regular
performance and career development reviews
Human Capital (p.121)
405-1 Diversity of governance bodies and
employees
Human Capital (p.115)
405-2 Ratio of basic salary and remuneration
of women to men
Human Capital (p.114-116)
406-1 Incidents of discrimination and
corrective actions taken
Human Capital (p.114-116)
407-1 Operations and suppliers in which the
right to freedom of association and collective
bargaining may be at risk
Human Rights, Business Ethics and Common
Values (p.74)
GRI 408: Child
Labor 2016
408-1 Operations and suppliers at significant
risk for incidents of child labor
Human Rights, Business Ethics and Common
Values (p.74); Value-Driven, Responsible
Supply Chain Management (p.168)
GRI 409: Forced
or Compulsory
Labor 2016
409-1 Operations and suppliers at significant
risk for incidents of forced or compulsory
labor
Human Rights, Business Ethics and Common
Values (p.74); Value-Driven, Responsible
Supply Chain Management (p.168)
OMISSION
REQUIREMENT(S)
OMITTED
REASON EXPLANATION
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200 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 201
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
GRI STANDARD DISCLOSURE
LOCATION
Business Ethics and Legal Compliance
OMISSION
REQUIREMENT(S)
OMITTED
REASON EXPLANATION
APPENDIX-5: UNGC Progress Chart
GRI 3: Material
Topics 2021
3-3 Management of material topics
Turkcell Sustainability Management and
Involvement of Senior Management (p.45);
Human Rights, Business Ethics and Common
Values (p.74-75);
Anti-Bribery and Corruption, Compliance with
International Capital Markets and Economic &
Trade Sanctions and Export Controls (p.76-77);
Competition Management (p.77);
Artificial Intelligence (p.104);
Value-Driven, Responsible Supply Chain
Management (p.168)
Anti-Bribery and Corruption, Compliance with
International Capital Markets and Economic &
Trade Sanctions and Export Controls (p.76-77)
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GRI 205: Anti-
corruption 2016
GRI 206 Anti-
competitive
Behavior 2016
205-2 Communication and training about
anti-corruption policies and procedures
205-3 Confirmed incidents of corruption and
actions taken
Human Rights, Business Ethics and Common
Values (p.74)
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
Competition Management (p.77)
Pioneering Use of Innovative Digital Technologies in Fundemental Sectors Such as Education, Health, Agriculture, Transportation and Finance
GRI 3: Material
Topics 2021
3-3 Management of material topics
203-1 Infrastructure investments and services
supported
GRI 203:
Indirect
Economic
Impacts 2016
203-2 Significant indirect economic impacts
Our Strategic Focuses, Initiatives and
Opportunities (p.60-67);
The Development of Fintech Applications (p.103);
Image Processing Services & Solutions (p.148);
Digital Business Services (p.151-152);
Equality of Digital and Social Opportunity
(p.172-173);
Water Management (p.190)
Our Strategic Focuses, Initiatives and
Opportunities (p.60-67);
The Development of Fintech Applications (p.103);
Image Processing Services & Solutions (p.148);
Digital Business Services (p.151-152);
Equality of Digital and Social Opportunity
(p.172-173);
Water Management (p.190)
Our Strategic Focuses, Initiatives and
Opportunities (p.60-67);
The Development of Fintech Applications (p.103);
Image Processing Services & Solutions (p.148);
Digital Business Services (p.151-152);
Equality of Digital and Social Opportunity
(p.172-173);
Water Management (p.190)
Supporting Local Technology Development
GRI 3: Material
Topics 2021
GRI 203:
Indirect
Economic
Impacts 2016
GRI 204:
Procurement
Practices 2016
3-3 Management of material topics
203-2 Significant indirect economic impacts
Intellectual Capital (p.140-153);
Localization Efforts (p.170-171)
Intellectual Capital (p.140-153);
Localization Efforts (p.170-171)
204-1 Proportion of spending on local
suppliers
Localization Efforts (p.170-171)
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Subject
UNGC Principles
Report Section
Human
Rights
Labour
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
Strong Corporate Governance
Our Human Capital
Value-Driven, Responsible Supply Chain
Management
Strong Corporate Governance
Our Human Capital
Value-Driven, Responsible Supply Chain
Management
Principle 3: Businesses should uphold the freedom of association
and the effective recognition of the right to collective bargaining
Strong Corporate Governance
Principle 4: the elimination of all forms of forced and compulsory
labour
Principle 5: the effective abolition of child labour
Our Human Capital
Value-Driven, Responsible Supply Chain
Management
Our Human Capital
Value-Driven, Responsible Supply Chain
Management
Principle 6: the elimination of discrimination in respect of emp-
loyment and occupation
Our Human Capital
Principle 7: Businesses should support a precautionary approa-
ch to environmental challenges
Our Natural Capital
Environment
Principle 8: undertake initiatives to promote greater environmen-
tal responsibility
Our Natural Capital
Principle 9: encourage the development and diffusion of envi-
ronmentally friendly technologies
Our Natural Capital
Anti-
Corruption
Principle 10: Businesses should work against corruption in all its
forms, including extortion and bribery
Strong Corporate Governance
202 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 203
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
APPENDIX-6: Sustainability Principles
Compliance Framework Table
COMPLIANCE STATUS
YES
NO
PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
COMPLIANCE STATUS
YES
NO
PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
A. General Principles
A1. Strategies, Policies and Goals
The Board of Directors determines environ-
mental, social and governance (ESG) material
issues, risks and opportunities.
A1.1
The Board of Directors determines and pub-
licly disclose ESG Policies (Ex: Environmental
Policy, Energy Policy, Human Rights Policy and
HR Policy).
A1.2
It determines and publicly discloses its Short
and long-term goals regarding ESG policies
were determined and publicly disclosed.
A2. Implementation/Monitoring
The Partnership determines and publicly disc-
loses the committees/units responsible for the
implementation of ESG policies, Partnership’s
the most senior responsibles regarding ESG
issues and their duties.
Responsible committees and/or units report
activities conducted in line with policies to the
Board of Directors at least once during the year.
A2.1
A2.2
The Partnership develops and publicly disc-
loses implementation and action plans in line
with the short- and long-term ESG goals.
A2.3
Partnership publicly discloses ESG Key
Performance Indicators (KPI) and their degree
of achievement on a yearly basis.
A2.4
The partnership publicly discloses sustaina-
bility performance improvement activities
regarding business processes or products and
services.
A3. Reporting
A3.1
A3.2
A3.3
The Partnership discloses information on
sustainability performance, goals and actions
within the annual report in a clear, accurate
and complete manner.
Partnership publicly discloses information on
which of the United Nations (UN) 2030 Sustainable
Development Goals its activities are related to.
Partnership publicly discloses lawsuits filed
and/or concluded against and which are
significant in terms of ESG policies and/or can
significantly impact company’s activities.
A4. Verification
A4.1
Partnership’s ESG Key Performance measu-
rements are verified by an independent third
party and publicly disclosed.
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Operational Risks (p.80)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
www.turkcell.com.tr/en/aboutus/
corporate-social-responsibility/
sustainability
Inclusive Positive Imprint (p.108, 132, 140, 154)
Positive Imprint to the Environment (p.182)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Turkcell Sustainability Management and
Involvement of Senior Management (p.45)
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.48-49)
Human Capital (p.112-113)
Intellectual Capital (p.140)
Social Capital (p.154)
Natural Capital (p.182-193)
Inclusive Positive Imprint (p.108, 132, 140, 154)
Manufactured Capital (p.132)
Intellectual Capital (p.140)
Social Capital (p.154)
Positive Imprint to the Environment (p.182)
Manufactured Capital (p.133-139)
Intellectual Capital (p.141-153)
Social Capital (p.155-166)
Natural Capital (p.182-193)
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.48-49)
Turkcell Value Creation Process (p.56-57)
Human Capital (p.112-113)
Manufactured Capital (p.132)
Intellectual Capital (p.140)
Social Capital (p.154)
Positive Imprint to the Environment (p.182-184)
Supported Sustainable Development
Goals (p.50-51)
Competition Management (p.77)
Consolidated Financial Statement
Footnotes (p.313-325)
GHG emissions data
disclosed in the report
have been verified
by an independent
audit firm.
Greenhouse Gas Emissions (p.186)
B1
B2
B3
B4
B5
B6
B7
B8
B9
B10
B11
B12
B13
B14
B. Environmental Principles
The partnership publicly discloses policies and
practices, action plans regarding environmen-
tal management and environmental manage-
ment systems (known as ISO 14001 standard)
and programs.
The Partnership publicly discloses limitations
for reporting scope, reporting term, reporting
date and conditions regarding environmental
reports prepared for sharing information on
environmental management.
Disclosed in A2.1.
The environmental targets that are included in the
performance incentive systems on a stakeholder
basis (such as board members, executives, and
employees) have been publicly disclosed.
The partnership publicly discloses how the prio-
ritized environmental issues have been integra-
ted into business objectives and strategies.
Disclosed in A2.4.
The Partnership publicly discloses how
environmental issues are managed and integ-
rated into business objectives and strategies
throughout the partnership value chain,
including suppliers and customers as well as
the operational process.
The Partnership publicly discloses its involve-
ment in policy-making
processes of environmental organizations and
NGOs and cooperation established with these
institutions.
The Partnership publicly discloses periodically
comparable data on environmental impacts in
the light of environmental indicators (GHG emis-
sions (Scope-1 (Direct), Scope-2 (Energy indirect),
Scope-3 (Other indirect) ), air quality, energy ma-
nagement, water and wastewater management,
waste management, biodiversity impacts).
The Partnership publicly discloses standard,
protocol, methodology, and base year details
used to collect and calculate its data.
The Partnership publicly discloses increase or
decrease in environmental indicators for the re-
porting year in comparison with previous years.
The Partnership sets short and long-term goals
for reducing its environmental impacts and
publicly discloses progress in these goals in com-
parison with goals set for the previous years.
The partnership set a strategy for fighting with cli-
mate crisis and publicly discloses actions planned.
The Partnership establishes and publicly disc-
loses programs or procedures in order to avoid
or to minimize potential negative impacts of
products and/or services.
The Partnership takes and publicly discloses
actions to enable third parties (ex: suppliers, cont-
ractors, dealers, etc) decrease their GHG emissions.
Environmental Management (p.183)
About the Report (p.28)
Environmental Management (p.183-184)
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.48-49)
Natural Capital (p.180-184)
Value-Driven, Responsible Supply Chain
Management (p.168-169)
Natural Capital (p.180-184, 191)
Climate Change (p.185)
Natural Capital (p.186, 187, 190, 192, 193)
Natural Capital (p.183)
Natural Capital (p.182, 186, 187, 190, 192, 193)
Positive Imprint to the Environment (p.182)
Climate Change (p.180-181, 185)
Turkcell Energy Solutions (p.188)
Turkcell Energy Solutions (p.188)
204 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 205
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
B15
B16
B17
B18
B19
B20
B21
B22
B23
B24
B25
C1.1
C1.2
C1.3
The Partnership publicly discloses environmental
benefits/profits or cost savings achieved through
initiatives and projects carried out to reduce its
environmental impacts.
The Partnership publicly discloses Scope-1 and
Scope-2 energy consumption data (natural
gas, diesel, gasoline, LPG, coal, electricity,
heating, cooling, etc.).
The Partnership publicly discloses information
on electricity, heat, steam and cooling genera-
ted in the reporting year.
The partnership carries out and publicly
discloses studies on increasing the use of
renewable energy, transition to zero or low
carbon electricity.
The Partnership publicly discloses renewable
energy production and usage data.
The Partnership conducts energy efficien-
cy projects and publicly discloses energy
consumption and emission reductions due to
energy efficiency projects.
The Partnership publicly discloses water
consumption, amount of underground or
surface water withdrawn if any, recycled or
discharged, its sources and procedures.
The Partnership publicly discloses whether
operations or activities are included in any
carbon pricing system (Emission Trading
System, Cap & Trade, or Carbon Tax).
The Partnership publicly discloses the carbon
credit information accumulated or purchased
during the reporting period.
The Partnership publicly discloses details
on carbon pricing if applied within the
partnership.
The Partnership publicly discloses the platfor-
ms where environmental information of the
Partnership published.
C. Social Principles
C1. Human Rights and Labour Rights
The Partnership develops a Corporate Human
Rights and Employee Rights Policy in compliance
with the Universal Declaration of Human Rights,
the ILO Conventions which Turkiye has appro-
ved, and other relevant legal regulations; deter-
mines individuals responsible for applica-tion
of the policy, and publicly discloses policy and
people responsible for its practice.
The Partnership includes subjects such as fair
workforce, improvement of working standar-
ds, female employment and inclusivity (such
as no dis-crimination based on gender, race,
religion, language, marital status, ethnic iden-
tity, sexual orientation, gender identity, family
responsibilities, trade union activities, political
views, disabilities, social and cultural differen-
ces, etc.) in its Labour Rights Policy considering
also supply and value chain impacts.
The Partnership publicly discloses measu-
res taken to respect the rights of specific
economically, environmentally, and socially
vulnerable groups (such as low-income
groups, women, etc.) or minority rights/equal
op-portunities along the value chain.
COMPLIANCE STATUS
YES
NO
PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
COMPLIANCE STATUS
YES
NO
PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
Energy Efficiency (p.189)
Energy Management (p.187)
Energy Management (p.187)
Turkcell Energy Solutions (p.188)
Turkcell Energy Solutions (p.188)
Energy Efficiency (p.189)
Water Management (p.170)
2022 CDP Report
Greenhouse Gas Emissions (p.186)
2022 CDP Report
2022 CDP Report
Human Rights, Business Ethics and
Common Values (p.74-75)
Human Rights, Business Ethics and
Common Values (p.74-75)
Value-Driven, Responsible Supply Chain
Management (p.168)
Diversity, Inclusion, and Equal Opportunity
(p.114-116)
C1.4
The Partnership publicly discloses develop-
ments on preventive and corrective practices
regarding discrimination, inequality, human
rights violations, forced labor, and child labour.
The Labour Rights Policy includes subjects
such as investments in employees (such as
training, development policies), compensation,
fringe benefits, the right to unionize, work/life
balance solutions, and talent management.
C1.5
The Partnership establishes mechanisms for
resolving employee com-plaints and disputes
have been established, and processes for
resolving disputes.
The Partnership publicly discloses activities
conducted during the report-ing year in order
to ensure employee satisfaction.
The Partnership establishes and publicly disc-
loses its OHS Policy.
The Partnership publicly discloses precautions
taken to prevent occupa-tional accidents and
to protect health and accident statistics.
The Partnership establishes and publicly disc-
loses its policies on protec-tion of personal
data and data security.
C1.6
C1.7
C1.8
The Partnership establishes and publicly disc-
loses its Code of Ethics.
C1.9
C1.10
C2.1
C2.2
The Partnership discloses its activities on
community investments, social responsibility,
financial inclusion and access to financing.
The Partnership organizes briefings and trai-
nings programs on ESG policies and practices
for employees.
C2. Stakeholders, International Standards and Initiatives
The Partnership establishes and publicly discloses
a customer satisfaction policy regarding manage-
ment and resolution of customer complaints.
The Partnership publicly discloses information
regarding communication with stakeholders
(including who the stakeholders are, the topics
and the frequency of communication)
C2.3
The international reporting standards adop-
ted in reporting have been disclosed.
C2.4
C2.5
D1
D2
The Partnership publicly discloses sustai-
nability principles adopted, as well as the
international organizations, committees, and
principles signed or joined.
The Partnership makes improvement efforts to
be included in Borsa Istanbul’s and/or interna-
tional index providers’ sustainability indices.
D. Corporate Governance Principles
The Partnership received stakeholder opinions
in determining measures and strategies in the
field of sustainability.
The Partnership works on increasing aware-
ness about the subject of sustainability and
its importance through social responsibility
projects, awareness events, and trainings.
Diversity, Inclusion, and Equal Opportunity
(p.114-116)
Value-Driven, Responsible Supply Chain
Management (p.168-169)
Human Rights, Business Ethics and Common
Values (p.74)
Human Capital (p.112-113)
Training and Development Programs (p.123)
Human Rights, Business Ethics and
Common Values (p.74)
Employee Loyalty and Happiness (p.117)
Safe and Healthy Work Environment
(p.119-120)
Safe and Healthy Work Environment
(p.119-120)
Digital Security and Wellbeing (p.149-150)
www.turkcell.com.tr/tr/gizlilik-ve-gu-
venlik?page=kisisel-verilerin-korunmasi
Human Rights, Business Ethics and
Common Values (p.74)
www.turkcell.com.tr/todiek
Techfin Services (p.66-67)
Social Investment and Sponsorship
Projects (p.174-177)
Environmental Management (p.184)
Customer Satisfaction Management
(p.166)
Interactions with Our Stakeholders
(p.52-53)
About the Report (p.28)
Turkcell’s Sustainability Initiative
Memberships (p.54-55)
Sustainability Indices and Performance
Indicators (p.93)
Turkcell Sustainability Priorities (p.46-47)
Interactions with Our Stakeholders (p.52-53)
Equality of Digital and Social
Opportunity (p.172-173)
Social Investment and Sponsorship
Projects (p.174-177)
206 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 207
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
APPENDIX-7: Greenhouse Gas Verification Statement
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
Aydınevler Mah. İnönü Cad.
No:20 Maltepe/İstanbul
To whom it may concern,
This letter is presented to TURKCELL İLETİŞİM HİZMETLERİ A.Ş. to present opinion of the Bureau Veritas
Certification Turkey on the Greenhouse Gases Verification for the period 1 January 2022 to 31 December 2022.
Bureau Veritas Turkey consent to release of this letter by you to the Carbon Disclosure Project in order
to satisfy the terms of CDP disclosure requirements. Bureau Veritas Turkey not accepts or assumes any
responsibility or liability on our part to CDP or to any other party who may Access to this letter or
assurance report.
TURKCELL İLETİŞİM HİZMETLERİ A.Ş. commissioned Bureau Veritas to perform a verification of
its 2022 GHG Inventory. The verification was performed on March 2023.
The GHG assertions verified were the following:
1. That the 2022 GHG Inventory for TURKCELL İLETİŞİM HİZMETLERİ A.Ş. has been
developed in accordance with common industry practice, including ISO 14064-1:2018
Standard.
2. That the calculated total GHG emissions for the 2022 are 1,349,268 tons of CO2e (Direct
Emissions: 16,178 tCO2e, Indirect emissions from imported energy: 0 tCO2e (emission is
414,911 tCO2e but 1.000.000 kwh YEK-G certificate retired), Indirect emissions from
transportation: 19,092 tCO2e, Indirect emissions from products used by organization: 443,235
tCO2e, Indirect GHG emissions associated with the use of products from the organization:
870,763 tCO2e, Emissions Due to Biomass combustion:
Nill) (the emission sources included for each source has been given in verification report)
The verification task was to form an opinion at a reasonable level of assurance about the above GHG
assertions, regarding:
1. Conformance with the general requirements of ISO 14064-1:2018.
2. Reasonableness of the calculated emissions for the 01.01.2022-31.12.2022.
The verification performed by Bureau Veritas applied ISO 14064-3 International Standard for GHG
verifications. The following verification activities were conducted:
1. Review of documentation, controls and methodologies, including other verification reports,
2. Assessment of risks and verification planning,
3. Assessment of documentation, controls and methodologies, including the facility quality
management systems,
4. Documentation of verification findings and outstanding issues in verification report,
5. Assessment and documentation of resolutions to outstanding issues in verification report,
6. Issuance of verification statement and completion of verification.
GHG Assertion #1: The GHG inventory conforms to the general requirements of ISO 14064-1 Standard.
GHG Assertion #2: That the calculated total GHG emissions for the 2022 are 1,349,268 tons of
CO2e (Direct Emissions: 16,178 tCO2e, Indirect emissions from imported energy: 0 tCO2e
(emission is 414,911 tCO2e but 1.000.000 kwh YEK-G certificate retired), Indirect emissions from
transportation: 19,092 tCO2e, Indirect emissions from products used by organization: 443,235
tCO2e, Indirect GHG emissions associated with the use of products from the organization:
870,763 tCO2e, Emissions Due to Biomass combustion:
Nill) (the emission sources included for each source has been given in verification report)
View Declaration
The greenhouse gas emission data for 2022 has been verified as a result of verification audit held
on the basis of international standards has been verified with reasonable assurance.
Verifier Opinion and Qualifications
Based on the process and procedures conducted, the GHG assertion is prepared in accordance with
the requirements of ISO 14064-1:2018.
Based on the process and procedures conducted, the GHG assertion is materially correct and is a fair
representation of the GHG data and information.
Date: 10 March 2023
Egemen Belet
Lead Verifier
İbrahim TAGAY
Certification Manager
208 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
MERKEZ :
Esas Maltepe Ofispark
Altayçeşme Mah. Çamlı Sok. No: 21 Kat: 8 Karşıyaka
34843 Maltepe– İstanbul
Tel:+90 (216) 518 40 50
Fax:+90 (216) 518 39 00
İzmir
Tel:+90 (232) 330 60 40
Fax:+90 (232) 330 60 18
İZMİR:
6471 Sok. No:27 Kat:4 Daire:8
ANKARA :
BURSA :
Umi Plaza Yeni Karaman Mah. Mustafa Kemal Mah. 2127 Sok.
Sanayi Cad. No: 150/23
Osmangazi - Bursa
Tel:+90 (0224) 453 25 70
Fax:+90 (0224) 453 25 76
Tel:+90 (0 312) 219 65 69
Fax:+90 (0312) 219 64 49
No: 26/2 Çankaya – Ankara
ANTALYA :
Etiler Mah. Adnan Menderes Bulvarı
Sami Kaya İş Merkezi
No: 47 K: 2 D: 12 Antalya
Tel:+90 (0 242) 243 30 82
Fax:+90 (0 242) 243 30
GRI 2.5
GRI 2.5
MERKEZ :
Esas Maltepe Ofispark
Altayçeşme Mah. Çamlı Sok. No: 21 Kat: 8 Karşıyaka
34843 Maltepe– İstanbul
Tel:+90 (216) 518 40 50
Fax:+90 (216) 518 39 00
İzmir
Tel:+90 (232) 330 60 40
Fax:+90 (232) 330 60 18
İZMİR:
6471 Sok. No:27 Kat:4 Daire:8
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 209
ANKARA :
BURSA :
Umi Plaza Yeni Karaman Mah. Mustafa Kemal Mah. 2127 Sok.
Sanayi Cad. No: 150/23
Osmangazi - Bursa
Tel:+90 (0224) 453 25 70
Fax:+90 (0224) 453 25 76
Tel:+90 (0 312) 219 65 69
Fax:+90 (0312) 219 64 49
No: 26/2 Çankaya – Ankara
ANTALYA :
Etiler Mah. Adnan Menderes Bulvarı
Sami Kaya İş Merkezi
No: 47 K: 2 D: 12 Antalya
Tel:+90 (0 242) 243 30 82
Fax:+90 (0 242) 243 30
Group Companies
and Other Information
on Corporate
Governance
Our Subsidiaries
Subsequent Events After the Reporting Period
Statement of Compliance with Corporate Governance Principles
Corporate Governance Principles Compliance Report
Corporate Governance Information Form
Roles of Turkcell Board Members at Other Companies
Conclusion of the Subsidiary Report
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Our Subsidiaries14
lifecell
started
its operations
lifecell
in
Ukraine in February 2005. In 2022, life-
cell’s 3-month active subscriber base
decreased by 0.7 million to 8.5 million.
lifecell sustained its leadership in the
Ukrainian market in smartphone pen-
etration, which had reached 84.3% by
2022 year-end.
the first operator
lifecell was
in
Ukraine to launch 4.5G services for its
customers in the 2,600 MHz frequency
band in 2018, followed by a success-
ful launch in the 1,800 MHz frequency
band within the same year. As of the
end of 2022, lifecell 4G coverage is
available in 16,592 settlements with
30.7 million of Ukrainians. lifecell’s 3G
and 4.5G networks have a geographi-
cal coverage of 60.4% and population
coverage of 77.7% in Ukraine.
In 2022, the number of three-month
active subscribers using 3G and 4.5G
remained unchanged at 5.8 million,
while mobile data usage per user
grew by 15%. The company achieved
in
strong operational performance
2022, with revenue and EBITDA growth
of 11.0% and 14.6%, respectively (in UAH
terms). lifecell registered positive net
income in 2022, which was a result of
this strong performance. lifecell’s rev-
enues in TRY terms rose 70.1% to TRY
4,774 million.
Since Russia attacked Ukraine on
February 24 the main task of lifecell
team was to ensure continuous mo-
bile network operation and to keep
Ukrainian people connected. During
the full-scale war, lifecell supported
its subscribers in Ukraine and abroad
providing many basic services at no
extra charge so that subscribers can
stay in touch with their families and
friends. Starting from May 2022, life-
cell subscribers can use tariff plans’
gigabytes
in the service
package, not only in Ukraine but also
abroad in more than 30 countries at
no extra charge.
included
Since the beginning of hostilities in
Ukraine, lifecell engineers have been
doing their best to ensure the conti-
nuity of the mobile network opera-
tion. The team promptly optimized the
network operation in different regions
to maximize the capacity of both 2G
connection and 3/4G high-speed
mobile Internet access services in the
regions where Ukrainians from com-
bat zones were evacuated. To enable
the mobile network to meet the grow-
ing demand for data services and
avoid congestion, lifecell turned on
LTE coverage in the 2100 MHz band.
Also, more than 670 new base stations
mostly in the Central and Western re-
gions were built.
In March lifecell together with other
mobile operators launched national
roaming in Ukraine. It gave Ukrainians
an opportunity to switch to the net-
work of other operators if the network
of their operator is unavailable at the
moment. In April lifecell began to use
the Starlink satellite system for quick
restoration of the mobile network in
the unoccupied territories.
In June lifecell launched the regis-
tration of subscribers’ numbers via
My lifecell application using digital
documents in DIIA. It helps the sub-
scribers easily and quickly go through
the procedure of registration without
visiting the operator’s store. Also, the
service of transferring phone numbers
from SIM to eSIM in the monobank ap-
plication was launched.
lifecell was the first Ukrainian mobile
operator who launched VoLTE and
VoWiFi technologies for calls VoLTE і
VoWiFi in 2022. In September lifecell
launched RCS messages for the first
time on the Ukrainian telecom market.
In October lifecell started testing a pi-
lot project of powering base stations
with solar panels. It is expected to be
a good solution in areas where access
to electricity grids may be difficult or
damaged due to military actions.
lifecell has made it possible for sub-
scribers who want to change their mo-
bile operator using MNP to do it online
without visiting an operator’s store. The
procedure for transferring a number to
lifecell can be carried out with the help
of eSIM or using a new operator’s start-
er package. During 2022 lifecell has
been holding its leading position on the
Ukrainian telecom market by the num-
ber of ported subscribers.
Several times during the year 2022
lifecell provided doctors, military
personnel and critical infrastructure
workers with packages of 10,000
minutes for calls, 10,000 GB of Internet
and 10,000 SMS.
In December 2022, lifecell launched
an NFT marketplace, a platform for
the exchange of non-fungible tokens,
where it publishes its charity collec-
tion. The NFT Talkers project aims to
raise funds to support Ukraine and the
artists during the war.
Despite the losses and damages af-
fected by the war to lifecell’s infra-
structure and operations, the com-
pany signed Memorandum with the
Ministry of Digitalization about trans-
ferring UAH 40 million to United24 - the
national platform for collecting do-
nations in support of Ukraine, creat-
ed at the initiative of the President of
Ukraine Volodymyr Zelensky.
BeST
BeST (Belarusian Telecommunications
Network), which joined the Turkcell
Group in July 2008, became the first
mobile operator to offer 3G servic-
es in Belarus in November 2009. As of
December 31, 2022, BeST operated
2G and 3G services in all cities with a
population of more than 10,000, and
provided 2G services on all princi-
pal intercity highways and roads of
the Republic of Belarus, which cor-
responds to a coverage of approxi-
mately 99.8% of the entire population
of Belarus, or 93.1% geographical
coverage.
BeST, in which our Company has 80%
shareholding, remaining 20% shares
of BeST, owned by the Republic of
Belarus were purchased in December,
2022. The share transfer has been
completed on December 9, 2022.
BeST became one of the first two op-
erators to offer 4G services in August
2016 through LTE
infrastructure es-
tablished by beCloud. BeST provides
4G LTE services across all regions and
major cities of Belarus with 89.2% 4G
geographical coverage. The share
of 4G subscribers reached 78% of the
3-month active subscriber base
in
2022. Increasing 4G services pene-
tration has led to an average monthly
data consumption per user to 16.2 GB.
The 4G network serves 81% of the total
data traffic as of 2022.
While converting subscribers to 4G
users, BeST continues to transform
itself from a communication ser-
vices provider to a digital operator.
Accelerating digital
subscriptions
and increasing its share in subscriber
acquisition, enhancing self-service
capabilities via mobile application
and web channels, extending digi-
tal services portfolio and penetra-
tion are the main initiatives in 2022 to
drive the digitalization journey. BeST
enriches customers’ digital experienc-
es by bringing together connectivity
and content, enables the growth of
ARPU driven by data services and
diversified digital services portfolio
in accordance with Turkcell’s strat-
egy. Accordingly, BeST has included
BiP, fizy, lifebox, Magazines, TV+, and
Games and Digital Book Platforms to
its digital services portfolio. As of 2022
year-end, 38% of the 3-month active
subscribers use at least one digital
service and solution.
BeST has launched a payment service
in 2022 through its self-service mobile
application, which enables customers
to make payments and money trans-
fers by using their mobile balances.
The payment service enhances the
seamless digital experience of the
customers, and increases customer
engagement and loyalty.
BeST is the first mobile operator in
Belarus to launch a digital SIM card
activation service via a mobile appli-
cation using facial recognition tech-
nology based on a machine-learning
algorithm in 2020. This service is de-
veloped successfully by lifetech.
lifetech,
in which BeST has 100%
in
shareholding, provides services
the fields of telecommunication and
information
infrastructure solutions,
and communication
technologies,
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% subsidiary of Turkcell
and commenced operations.
Kuzey Kıbrıs Turkcell continues its ac-
tivities as the leading operator of the
TRNC with its infrastructure cover-
ing almost the entire population, and
an active subscriber market share of
65%15 excluding telemetry accord-
ing to Information Technologies and
Communications Authority data for
third quarter of 2022.
Getting in the fixed broadband mar-
ket in TRNC with Lifecell Digital Ltd. in
2018, it continues to serve in this field,
reaching second place with the mo-
mentum it has gained in a short period
of time.
Kuzey Kıbrıs Turkcell participated
in the 4G/5G authorization tender
held in the Turkish Republic of North
Cyprus, and with a tender value of
19,096,824 USD including V.A.T. for the
247 MHz frequency band, holds the
4G/5G authorization document as
of November 8th, 2022. Thanks to the
4.5G infrastructure, which will com-
mence operation within 10 months,
mobile broadband speed will have
increased by 10 times on average.
In 2022, Kuzey Kıbrıs Turkcell regis-
tered revenue of TRY 473 million on
54.3% annual growth.
14 Not all our subsidiaries are included in our Subsidiaries section. You can find the list of all subsidiaries in the integrated
annual report appendix Capital Markets Board Report, under footnote 1.
15 Active subscriber market share excluding telemetry
212 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 213
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Global Bilgi
Turkcell Global Bilgi offers new gen-
eration services closely following the
digitalization trends and leveraging 23
years of experience in customer expe-
rience. Turkcell Global Bilgi acts as the
strategic business partner of brands,
and aims to enhance customer sat-
isfaction and consequently its reve-
nues creating customized solutions for
more than 100 companies including
Turkcell itself.
Operating
in Turkey and Ukraine,
Turkcell Global Bilgi is the first and still
the only Turkish customer experience
center which provides service abroad
with its Ukraine investment. Employing
15,000 people, Turkcell Global Bilgi
leads the sector and creates value
with 10,878 women employees, which
make up 69% of the total workforce.
Turkcell Global Bilgi is among Turkey’s
top 500 IT companies and provides
call center services and also research
management, customer experience
design, social media management
and technological support services.
Turkcell Global Bilgi, which has imple-
mented its own digital platforms in its
R&D center, also provides robotic pro-
cess automation (RPA), cloud-based
switchboard
infrastructure, digital
assistant and self-service information
technologies technical services to
companies.
Global Tower
Global Tower, Turkey’s leading tower
company, today operates in four coun-
tries. Global Tower provides tower
leasing, tower build & sell, tower main-
tenance and contract management
services to mobile operators, radio and
TV broadcasters, internet service pro-
viders, energy companies and public
institutions. Global Tower also pro-
vides satellite services and solutions
to its customers in accordance with its
end-to-end services approach. The
company currently offers closed circuit
satellite services over two thousand
points from its own infrastructure with
geographic redundancy. The compa-
ny aims to enrich product and service
diversity by following industry trends.
Global Tower has a portfolio of 10,910
towers as of end of 2022, distributed as
follows;
• Turkey: 8,975 (owned: 4,560, right of
use: 2,220, contract management:
2,195)
• Ukraine: 985 (owned)
• Belarus: 835 (right of use)
• TRNC: 115 (right of use)
Superonline İletişim Hizmetleri A.Ş.
Turkcell Superonline was established
in 2009 with the merger of our subsid-
iary Tellcom (established in 2004 as
Bilişim Telekomunikasyon and became
Tellcom in 2006) and Superonline pur-
chased from Çukurova Group. The
company provides telecommunication
services to individual, corporate and
operator customers with the brand
Turkcell Superonline. It has been au-
thorized by ICTA to provide Internet
Providing Service, Fixed Telephone
Infrastructure Management
Service,
Satellite Communication
Service,
Service, Cable Broadcast Service and
Virtual Mobile Network Service. Turkcell
Superonline has invested a total of TRY
6.1 billion as of 2022 within the scope of
these authorizations. Superonline re-
corded revenues of TRY 10.0 billion and
EBITDA of TRY 4.5 billion in 2022.
As of
the end of 2022, Turkcell
Superonline has 2.9 million broadband
internet customers, 2.1 million of which
is over its own fiber infrastructure, and
1.3 million IPTV customers under the TV+
brand. As of the same date, Turkcell
Superonline provides fiber access on
5.4 million households in 28 cities with
59 thousand km roll-out at speeds up
to 10 Gbps over its own infrastructure.
Moreover, while Turkcell Superonline
provides fixed broadband service to
more households through agreements
signed with other network owner oper-
ator within the sector, it enables related
operators to offer broadband internet
services to their customers through the
Turkcell Superonline infrastructure, as
well. Turkcell Superonline offers voice
transmission and termination, internet,
point-to-point data connections, net-
work security solutions, server hosting in
8 data centers, 4 of which are new gen-
eration, and cloud services to its corpo-
rate and operator customers. In accord-
ance with its visions of transforming the
Silk Road into a Fiber Road and making
Turkey an internet hub, which it has
been following since 2008, it has carried
more than 15 TB capacity with 13 border
connection points in 2022.
Turkcell Finansman - Financell
Turkcell Finansman A.Ş., one of the key
players in the Turkish financing sector,
provides financing solutions to cor-
porate and individual customers for
their purchases of technology-based
services and products under the
“Financell” brand.
Providing services
in around 1,100
Turkcell stores, 2,318 DSN+ (Digital sales
point) stores and digital sales channels
all over Turkey, Financell has main-
tained its leading position in the non-
bank financial sector with the highest
number of customers for years.
As of
the end of 2022, Turkcell
Finansman A.Ş., with an asset size of
TRY 4.2 billion, has extended approx-
imately 15 million
loans amounting
TRY 28.5 billion to date; in 2021, it be-
came active in corporate loans with
its digital transformation loan. On the
other hand, thanks to the credit risk
infrastructure and digital transforma-
tion projects carried out in 2021, the
Company continues to manage
its
credit risk successfully, making effec-
tive credit evaluation. Financell, which
started to provide financing services
to Corporate and Superonline cus-
tomers with the projects completed
in 2021, continues to provide financ-
ing solutions in all products and ser-
vices sold by the Turkcell Group. With
its improving infrastructure, Financell
started to operate in channels other
than Turkcell in 2022 with new prod-
ucts such as digital holiday loans and
vehicle loans.
Turkcell Sigorta Aracılık Hizmetleri A.Ş.
techfin
Another
initiative, Turkcell
Sigorta Aracılık Hizmetleri A.Ş., aims
to offer innovative solutions in the risk
management of customers with fast
and easy-to-access products under
the Güvencell brand.
Turkcell Sigorta Aracılık Hizmetleri A.Ş.
meets its customers’ insurance needs by
offering device insurance, bill protection,
supplemental health and personal ac-
cident insurance as its main products. In
addition to these, in 2022, it started to sell
TCIP compulsory earthquake and travel
health insurance.
Turkcell Dijital Sigorta A.Ş.
Turkcell Digital Dijital Sigorta A.Ş.
which will carry out innovative end-
to-end insurance activities focused
on digital experience was estab-
lished on 21.06.2022. On 17.10.2022, an
application for an insurance license
was made before the Insurance
and Private Pension Regulation and
Supervision Agency (SEDDK). As of
the end of 2022, the licensing process
continues.
Turkcell Ödeme Hizmetleri ve
Elektronik Para Hizmetleri - Paycell
Turkcell Ödeme ve Elektronik Para
Hizmetleri A.Ş. (TÖHAŞ), added the
E-Money license in 2017 to the pay-
ment services license it obtained from
the BRSA in 2016. While a rapid techfin
transformation has taken place in the
world in the past 10 years, the Turkish
market also shows a high potential
for the expansion of techfin services
with its attractive internal dynamics.
In particular, the high share of young
population, high rate of smart device
penetration, approximately 30 million
potential unbanked users, current
high rate of cash usage in shopping
and rising e-commerce volume stand
out as the factors that will support the
rapid rise in the penetration of techfin
solutions. The COVID-19 pandemic
that has impacted the world since the
start of 2020 has also accelerated this
transformation. Particularly, chang-
ing living conditions and needs led to
increased customer focus on digital
platforms. As such, e-commerce was
one of the sectors most positively
impacted. In accordance with these
needs and changing customer habits,
our vision with Paycell is to enable
more users to benefit from financial
services through fast and secure
payment solutions that we created by
combining technology with financial
services.
We continue to lead the techfin
industry by achieving record transac-
tion volumes in many products. While
the number of Paycell customers
reached 7.7 million in 2022, the num-
ber of Paycell application downloads
exceeded 19.9 million with the new
features included. The total transac-
tion volume through Paycell reached
TL 37.1 billion by the end of 2022.
Sofra Kurumsal ve Ödüllendirme
Hizmetleri A.Ş.*
Sofra Kurumsal ve Ödüllendirme
Hizmetleri A.S. is a meal card com-
pany established in 2018 in partner-
ship with Turkcell, Belbim and PTT. It
serves under the Paye Kart brand. It
has reached more than 16 thousand
merchants across Turkey.
* We have 33% shareholding.
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, in addition
to its meal card feature.
Paye offers an easy payment service
that allows users to save time while
paying for their meals through its
contactless payment feature.Paye
Kart offers fast and easy payment
with the QR method at contracted
stores and market chains with Paycell
QR payment infrastructure. At the
same time, the Paye Card Online
payment option provides conveni-
ence and time saving through online
shopping from contracted stores with
home delivery.
Turkcell Teknoloji
Turkcell Teknoloji has been contribut-
ing to the development of the techno-
logical infrastructure of Turkcell, the
leading company in Turkey’s telecom-
munication sector since 2006, with
the strategy of expanding its products
and services in international markets,
and offers its unique solutions to the
use of operators abroad. In this direc-
tion, Turkcell Teknoloji aims to develop
new digital and ICT services around
the world according to the latest tech-
nology and market requirements, and
to expand the regions that Turkcell
Group operates. Products and servic-
es developed by Turkcell Teknoloji to-
day serve more than 100 million users
in 15 countries.
Turkcell continues to rapidly increase
its position in technological studies.
With the motivation of breaking new
ground
in Turkey and worldwide,
Turkcell Teknoloji continues to devel-
op by having the largest and most
competitive R&D structure in Turkey,
employing 965 research engineers
as of 2022. Turkcell Teknoloji aims to
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
“innovative
develop
technologies
in communications and in the areas
where it has an impact”. The company
also targets to be a “leader, pioneer,
and role model in Turkey by employ-
ing the most talented human capital in
the R&D industry”. It expands its scope
from being a technology-oriented
network provider to a service-orient-
ed experience provider, and becomes
an R&D center in national and inter-
national markets with the innovative
solutions it develops.
966 registered patents since 2007.
Pioneering the generation of new
technologies, Turkcell Teknoloji has
played an important role in the dis-
semination of technology by pub-
lishing 24 academic and 110 technical
publications on national and interna-
tional platforms in 2022. Additionally,
the technology experience of the
ecosystem was increased by inten-
sively continuing product promotion,
conference participation and training
activities in various channels.
information
Turkcell Teknoloji’s focus areas are
roaming solutions, big data process-
ing, business intelligence applications,
smart cloud platform and solutions
developed on the platform,
loca-
tion-based services and platforms,
systems,
geographic
customer relationship management
and solutions, network management
solutions, new generation value add-
ed services, mobile financial systems,
music and entertainment services,
IPTV services, mobile marketing solu-
tions, Internet of Things (IoT), AR/VR,
5G
infrastructure projects, mobile
communication solutions, campaign
management systems, smart SIM card
solutions, digital
identity technolo-
gies; image and video processing, text
and natural language analysis (NLP),
recommendation engines, voice an-
alytics, robot assistants, robotic pro-
cess automation, mobile analytical
platforms within the scope of artificial
intelligence developments; artificial
intelligence in health, business appli-
cation solutions, learning and edu-
cation application solutions, e-mail
and search engine solutions, digital
broadcasting solutions, CDN (Content
Delivery Network) Solutions, Over-
the-Top
(OTT), AIOPS/devops and
blockchain solutions.
Turkcell Teknoloji has reached the
leading position in its sector in Turkey
with 3,564 national and 216
inter-
national patent applications and
Lifecell Ventures
Established as a 100% Turkcell sub-
sidiary in the Netherlands, Lifecell
Ventures’ mission is to offer digital
communication, content-based
entertainment, music, TV applica-
tions and technology solutions such
as performance and network follow
up/viewing tools, customer value
management platform developed
by Turkcell Group companies and
technology partners to the global
market. The company realized its first
overseas digital solution partnership
in 2017 with the revenue sharing model
at the Eastern European operator
Moldcell, with the “BiP” and “lifebox”
products. With the agreement signed
with Lifecell Ventures in January 2019,
Digicel, headquartered in Jamaica,
launched BiP, Billo (lifebox) and
PlayGo (TV+) products in 32 countries
in the Caribbean, Central America,
and Asia Pacific regions last year,
adding them to its digital services
portfolio. Digicel is also able to follow
trends instantly with RTM (Real Time
Monitoring Solution) and RTA (Real
Time Action Solution) technology solu-
tions, and has gained the competence
to make the best offer to its customers.
Lifecell Ventures makes a significant
contribution to digital export targets
by increasing the penetration of digital
services and technology solutions,
and by providing strong business part-
nerships all over the world.
Turkcell Enerji Çözümleri ve Elektrik
Satış Ticaret A.S. (Turkcell Energy
Solutions).
In addition to the telecommuni-
cation sector, with Turkcell Enerji
Cözümleri ve Elektrik Satıs Ticaret
A.S. which started its services in
2018 with the “Enerjicell” brand,
Turkcell has become one of the
significant free market electrici-
ty suppliers in Turkey in terms of
the number of registered meters.
Turkcell Enerji Çözümleri expands its
portfolio in the energy sector with
its investments and projects in the
field of renewable generation and
aims to increase its share in the sec-
tor both in production and supply.
The company pioneered renewable
energy investments in Turkcell’s
buildings with self-generated
electricity consumption model and
completed rooftop solar panel pro-
jects, including the one in the newly
established Ankara Data Center.
Turkcell Enerji Çözümleri, which
recently included an 18 MW wind
power plant in its portfolio in 2021,
aims to continue its investments in
renewable energy in the upcom-
ing periods and to turn Turkcell
into a company that produces and
supplies electricity from environ-
mentally friendly sources with zero
carbon emissions. In addition, it has
increased the practices and incen-
tives of its business partners in this
field by realizing the I-REC certified
sale of the renewable energy it has
provided since 2021.
Digital Business Services A.S.
As one of the companies invested
the most in Turkey’s human resourc-
es and technologies, our main goal
is to be a reliable technology part-
ner that provides end-to-end, key
solutions to our customers. Turkcell
Dijital İş Servisleri A.Ş., which was
established to be a part of our
customers’ digital transformation
journey and lead them as a strate-
gic technology partner in this field,
provides our customers with servic-
es in many different areas such as
business applications, next gener-
ation technologies and providing
required hardware. This allows our
customers to advance with the most
appropriate financial model in their
new technology investment plans,
enabling them to focus more on
their own business.
Turkey’s Automobile Joint Venture
Group Inc. – Togg
Our e-mobility solutions, offered
in scope of digital business servic-
es within Turkcell, provide the most
advanced vehicle and fleet technol-
ogies for the safety or vehicles and
employees. As of October 29, 2022,
Togg which is developed by “Turkey’s
Automobile Joint Venture Group”,
where Turkcell has 23% sharehold-
ing, has started mass production of
the C-class SUV, the first connected,
smart and fully electric powered at
Gemlik Togg Technology Campus.
As part of the ecosystem which will
be created on the smart and con-
nected vehicle, new services, new
user experiences and new business
models in mobility are being devel-
oped. As part of this effort, a strate-
gic cooperation agreement signed
with Paycell in order to integrate in-
novative payment systems and dig-
ital financial solution in the mobility
ecosystem, in 2022.
The C-SUV model, which will be pro-
duced as Turkey’s first fully electric
powered, zero emission and smart
automobile, will be ahead of its com-
petitors with the largest wheelbase,
largest interior volume and best ac-
celeration of its class and a low to-
tal price. The first smart device of
Togg, starting its journey to answer
transportation
tomorrow’s
smart
demands from today and provide
mobility solutions beyond standard,
is planned to be on the road in the
first quarter of 2023 in Turkey, and
approximately 18 months
in
Europe.
later
We provide municipalities and
airline companies with meaning-
ful insight aimed at transportation
planning. Through
transportation
matrices we provide to municipali-
ties, we contribute to accurate plan-
ning, enabling people to use public
transportation more conveniently. In
addition, we help cut carbon emis-
sions by reducing traffic density. The
data we make available to airway
companies help them analyze mass-
es travelling between cities and see
seasonal impacts. We help achieve
energy savings through efficient
transportation planning.
Atmosware Teknoloji Eğitim ve
Danışmanlık A.Ş.
Atmosware was incorporated last
year to carry out activities to devel-
op software products and services,
to train software developers for this
purpose, to provide services to our
Company, its subsidiaries and other
parties both in Turkey and in other
countries and/or to operate in other
areas allowed within the framework
of the legislation.
Since its incorporation, it has been
one of the most important process
stakeholders of the “Investment in
Youth, Software for Future” pro-
ject, organized in cooperation with
Turkcell Academy and the Ministry
of National Education. With this pro-
ject, it has integrated nearly 100 soft-
ware developers among the par-
ticipants who undertook 6 months
of vocational training and field ex-
perience. Closely monitoring
the
master and apprentice relationship
and balance, it has also employed
experienced software developers
and increased its total information
technologies staff to more than 150.
The employed information technol-
ogy staff provide software products
development both for our Company
and for other companies in the eco-
system. In Atmosware, which follows
a remote work principle, the employ-
ees reside in 32 different cities. With
the motto “81 Employees in 81 Cities”,
the employment is planned to be
spread across the country.
Dijital Eğitim Teknolojileri A.Ş.
Turkcell, which generates business
with the vision of contributing to the
future of Turkey and presenting qual-
ity value propositions; has found-
ed Dijital Eğitim Teknolojileri A.Ş.
(DETEK) in 2022, with the joint ven-
ture of Turkcell with 51% sharehold-
ing and Şahinkaya Private Education
Institutions with 49% shareholding,
in order to create value and ensure
equality of opportunity through new
generation digital technologies for
a better future, in 2022, to operate in
the field of educational technologies.
DETEK, which will make a difference
technologies, will
in educational
bring new digital education products
to our customers. We aim to provide
a personalized learning experience
with the support of artificial intelli-
gence by accompanying the learn-
ing journeys of our stakeholders in
Turkey and around the world. With
our continuously developed compe-
tencies and strong ecosystem, we will
lead the digital transformation of the
education market, contribute to the
sustainability vision by changing the
habits of the large user base with the
high number of users, and seize the
opportunities in the foreign market in
this field.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Subsequent Events After the Reporting Period
January 31, 2023
Announcement Regarding the Capital
Increase in Kıbrıs Telekom
The capital of our Company’s subsid-
iary Kıbrıs Mobile Telekomünikasyon
Limited (“Kıbrıs Telekom”) is increased
by TRY 30,000,000 to TRY 92,071,775
from TRY 62,071,775. Our Company’s
pre-emption rights with respect to the
capital increase is fully paid.
January 31, 2023
Announcement Regarding the
Dispute in Relation to the Act on the
Protection of Competition
In our material event disclosure dat-
ed June 23, 2022, we have announced
that Doğan Dağıtım Satış Pazarlama
Matbaacılık Ödeme Aracılık
ve
Tahsilat Sistemleri A.Ş. (title of which
subsequently changed to Demirören
Dağıtım Satış Pazarlama Matbaacılık
ve Tahsilat Sistemleri A.Ş.) filed a law-
suit against our Company; the court
partially accepted the case and, ruled
reimbursement of TRY 215.6 million
(three times of the actual damage of
TRY 71.9 million pursuant to the Act on
Protection of Competition) together
with the discount interest applicable
from the date of the case to the plaintiff
and partially rejected the case for the
remaining part and our Company shall
apply necessary legal remedies with
respect to the decision.
On the request of appeal made by our
Company, the Istanbul Regional Court
decided to revoke the decision of the
first instance court, following the ac-
ceptance of our appeal application; on
the grounds of clear contradictions to
law. The Court decided to remand the
files to the first instance court to be re-
decided following a trial in accordance
with the revocation decision.
February 2, 2023
Announcement Regarding the
Incorporation of Turkcell Dijital
Teknolojileri Ltd.
Turkcell Dijital Teknolojileri Ltd., in which
our Company’s subsidiaries Lifecell
Digital Ltd. has 99.9998% and Kıbrıs
Mobile Telekomünikasyon Limited has
0.0002% shareholding,
respectively,
has been
incorporated. Registration
and announcement of the respective
company have been completed. The
company, which will operate in elec-
tronic payment services in the Turkish
Republic of Northern Cyprus, has a
paid-in capital of TRY500,000.
The announcement regarding the in-
corporation process was postponed
by the Board of Directors’ decision as
per the Article-6 of the Capital Market
Board’s Communiqué on Material
Events Disclosure, as it could have an
impact on the investment decision of
investors, as well as the stock price.
February 8, 2023
Announcement Regarding the Board
of Directors Resolution on Buy-Back
of Securities
Our Company’s Board of Directors,
pursuant to their meeting on August
18, 2022, resolved to determine the
maximum fund amount to buy-back
our shares trading at Borsa İstanbul
A.Ş., our American Depository Receipts
(ADR) trading at New York Stock
Exchange (NYSE) and bonds of our
Company as TRY1,000,000,000 within
the scope of the announcements of the
Capital Markets Board dated July 21,
2016, July 25, 2016, and March 23, 2020.
Our Company’s Board of Directors has
resolved now to increase the maximum
fund amount as TRY1,250,000,000.
February 8, 2023
Announcement Regarding the
Change in Management (Finance)
Osman Yılmaz, who has been serv-
ing as the Executive Vice President of
Finance of our Company, has decided
to resign from his position, effective as
of February 28, 2023.
Murat Erkan, CEO of Turkcell, said:
“In addition to his groundbreaking
achievements and leadership role in fi-
nance, Osman Yılmaz has made invalu-
able contributions to the transformation
of both our country and Turkcell in the
field of financial technologies with the
vision he set out in our TechFin compa-
nies. I thank Mr. Yılmaz for his valuable
contributions to our Company, and wish
him every success in his future career.”
February 16, 2023
Announcement Regarding the
Establishment of a Cyber Security
Company
Our Company’s Board of Directors
has taken the decision to establish a
company in order to develop cyber
security products and services for our
Company and its subsidiaries and third
parties both in Türkiye and abroad, by
our Company or its subsidiaries.
February 16, 2023
Announcement Regarding the
Donation for the Earthquake Relief
In accordance with the option pro-
vided by the Capital Markets Board’s
decision dated February 9, 2023,
due to the earthquake disaster on
February 6, 2023, epicenter of which
was Kahramanmaraş, that caused a
devastation and loss of lives, Board of
Directors of Turkcell has resolved to
make in-kind and/or cash donation
and provide all the appropriate ben-
efits and aid up to TRY3,500,000,000
to the earthquake victims directly
and/or through the Ministry of Interior
Disaster and Emergency Management
Presidency (“AFAD”), the Turkish Red
Crescent (“Kızılay”) and/or other institu-
tions and organizations announced by
mentioned agencies.
The donation and contributions will be
presented to shareholders for approval
at the first General Assembly meeting to
be held where shareholders will be com-
prehensively informed about the details.
We sincerely share the pain of our
country and express our deepest con-
dolences to the individuals who lost
their lives in the earthquakes and we
wish a quick recovery to those who
were affected and
injured by the
earthquake.
February 17, 2023
Announcement Regarding the
Transfer of Ultia
It has been resolved to transfer all
kinds of
intellectual property rights,
including but not limited to, all soft-
ware, domain names, brands and pat-
ents of Ultia Platform (“Ultia”), which
is held by Turkcell Teknoloji Araştırma
ve Geliştirme A.Ş., a 100% subsidiary of
our Company, to Ultia Teknoloji Yazılım
ve Uygulama Geliştirme Ticaret A.Ş.,
a technology-oriented company es-
tablished by Re-Pie Portföy Yönetimi
A.Ş. Turkcell New Technologies Venture
Capital Investment Fund, which was
established to invest in ventures that
can create synergies with our Group’s
strategic focus areas, as a result of
the valuation to be made by a valua-
tion company licensed by the Capital
Markets Board, at a value not less than
the value to be determined in the val-
uation report. With this transfer, it is
aimed for Ultia to become an effective
player in the market by being support-
ed through a more focused structure,
and to provide strategic and financial
benefits to our Company and create
long-term value with the synergy to be
created. Developments regarding this
subject will be announced to the public
fully and in a timely manner.
*Ultia: It is an application develop-
ment platform that offers ready mod-
ules to digitalize business processes
of companies such as HR, CRM, etc., or
an infrastructure that can be used for
design.
February 17, 2023
Announcement Regarding the Share
Buy-back Transactions
Within the scope of our Board of
Directors’ share buy-back decisions on
July 27, 2016 and the following dates,
our Company purchased a total of
1,000,000 shares at a price range of
TRY 33.46 - 34.00 with an average of
TRY 33.88 totaling TRY 33,884,140 on
February 17, 2023.
Within the scope of the relevant de-
cisions, Company repurchased a to-
tal of
17,893,807 shares amounting
to TRY214,096,922 from August 24,
2016 until the date of this announce-
ment. With these transactions, the
ratio of our shares in Company’s cap-
ital has reached 0.81%. In addition, our
Company’s Eurobonds with maturities
of 2025 and 2028 were purchased at
a nominal value of USD37,239,000 for
USD35,293,480 (TRY521,752,184) at vari-
ous time periods.
February 21, 2023
Announcement Regarding the
Change in Management (Finance)
Mr. Kamil Kalyon, Financial Planning
and Analysis Director at our Company,
will also serve as the acting Executive
Vice President of Finance in addition to
his current role effective as of March 1,
2023.
Kamil Kalyon began his profession-
al career at the Ernst & Young Turkey
(EY) Tax department in 1996. During his
twelve-year career at EY, he took part
in many strategic projects, ultimately
holding the position of Senior Manager.
Between 2008 and 2012, he worked
as the Finance Director in Kont Bilişim
Group operating
information
technologies sector. He entered OMV
Petrol Ofisi A.Ş. as Tax Director in 2012
where he remained for four years. Kamil
Kalyon joined Turkcell İletişim Hizmetleri
A.Ş. as Tax and Group Reporting
Director in December 2016 and has
been working as the Financial Planning
and Analysis Director at our Company
since February 2021.
in the
from
Kamil Kalyon graduated
the
Marmara University Department of
Business Administration, and holds the
titles of Sworn-in Certified Financial
Advisor and Independent Auditor.
March 7, 2023
Announcement Regarding the
Renewal of Directors & Officers
Liability Insurance
Pursuant to Article 4.2.8 of the annex of
the Capital Markets Board’s Corporate
Governance Communiqué; the existing
“Directors & Officers Liability Insurance”
for the members of our Company’s
Board of Directors, senior executives
and senior executives of group compa-
nies has been renewed to be valid until
October 1, 2023, and the total liability
limit of the insurance has been updat-
ed to exceed 25% of the Company’s
capital.
March 9, 2023
Announcement Regarding the
Decisions to Issue Lease Certificates
Our Company’s Board of Directors re-
solved that our wholly owned subsid-
iary Superonline İletişim Hizmetleri A.Ş.
shall
issue management agreement
based lease certificates (sukuk) in ac-
cordance with capital markets legisla-
tion through an asset leasing company
based in Turkey at an amount of up to
TRY3 billion, in Turkish Lira terms, with
maturities up to 12 months, in the do-
mestic market, in one or more tranch-
es, without public offering, as private
placement and/or to be sold to institu-
tional investors.
Our Company’s Board of Directors also
resolved that our wholly owned sub-
sidiary Turkcell Ödeme ve Elektronik
Para Hizmetleri A.Ş. shall issue man-
agement agreement based lease cer-
tificates (sukuk) in accordance with
capital markets legislation through an
asset leasing company based in Turkey
at an amount of up to TRY1 billion, 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 issuances are subject to
approval of Capital Markets Board.
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INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Statement of Compliance with Corporate
Governance Principles
Corporate Governance Principles
Compliance Report
Turkcell İletişim Hizmetleri A.Ş. (“Turkcell” or
the “Company”) is aware of its responsi-
bilities towards its stakeholders, with the
belief that high standards of corporate
governance are key to maintain succes-
sful business practices and to provide
long-term economic value to the compan-
y’s shareholders. Within this framework,
having adopted the principles of “equa-
lity,” “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
regulations and resolutions of the Capital
Markets Board (“CMB”).
In parallel with corporate governance ef-
forts 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 corpo-
rate governance principles.
Turkcell İletişim Hizmetleri A.Ş. places a
great importance on the full compliance
with Corporate Governance Principles.
Although full compliance with non-man-
datory corporate governance principles
provided in the relevant legislation is ai-
med, it has yet to be achieved due to the
challenges in the implementation of certa-
in principles, the incompatibilities between
some principles and the current structure
of the Company and the market. Besides,
an utmost care is given to compliance
with mandatory corporate governance
principles.
In the activity period that ended as of 31
December 2022, in the annual report’s fol-
lowing sections, compliance to the corpo-
rate governance principles annexed to the
Communiqué on Corporate Governance
is disclosed along with the necessary
explanations given for the principles that
are yet to complied with: (i) the Corporate
Governance Compliance Report (“CGCR”)
and (ii) the Corporate Governance Fact
Sheet (“CGFS”) and (iii) other relevant sec-
tions. Within this framework:
Considering the regulation and global best
practices, board of directors’ performance
evaluation forms were created as a result
of the below process and implementation
designed by the Corporate Governance
and Capital Markets Compliance
in December 2021, which
Directorate
directly reports to the Turkcell’s Board with
an autonomous structure, and within
the recommendation of the Corporate
Governance Committee and guidance
of Board of Directors. Accordingly, each
Board member had completed “the Board
of Directors Performance Evaluation”.
1- The scope of the evaluation process
consists of the below set of questions in
which the answers are measured within
a certain scale.
a. Information provided to the Board
before and during the meetings: The
set of question contained in this section
addresses issues such as whether there
was timely, clear and comprehensive in-
formation regarding the meeting agen-
da items, whether financial information
highlights important issues and trends,
and the effectiveness and impartiality
of the meetings.
b. Board Composition and Function: The
set of question contained in this section
addresses issues such as whether the
members have the necessary qualifi-
cations, experience and skills, whether a
sufficient number of meetings are held,
and the functioning of the committees.
c. Board Dynamics: The set of question
contained in this section addresses the
main issues such as the effectiveness
of the oversight, adequacy of annual
business plan reviews and whether the
Company’s value, mission, strategy, bu-
siness plans are reflected on important
issues, and whether financial indicators
are followed up properly.
d. Board Members’ standards of con-
duct: The set of question contained in
this section addresses issues such as
conflict of interest and adequacy of
contribution.
2- Within the above methodology, each
Board Member have made separate
evaluations.
3- Feedbacks of the Board Members
have been reviewed.
4- Actions to improve the processes have
been identified as a result of the reviewed
and analyzed feedback.
Within the scope of the feedbacks of the
Board Members identified in the 2021 per-
formance evaluation, the following impro-
vement actions are taken:
• A new platform was put into practice in
order to digitalize access to the Board
of Directors meeting documentation, to
transfer the documentation to a secure
platform and to enable a permanent ac-
cess to the relevant documentation. As a
result, information sharing with the mem-
bers of the Board of Directors was increa-
sed both quantitatively and qualitatively.
• Studies were carried out to increase com-
munication between the committees and
the Board of Directors.
• The external consultant support for the
Board of Directors has been increased.
• Considering the evaluations, suggesti-
ons and recommendations from sha-
reholders and investors, the Strategy and
Digitalization Committee was established
in February 2022 to contribute positively
on the increase of efficiency in the mo-
nitoring and improvement of Company
performance. In this committee, compan-
y’s strategies, investments and digitalizati-
on processes are monitored effectively, all
projects and actions that increase the va-
lue of the company relating to the position
in the market, digitalization efforts, gover-
nance practices etc. are followed up by
the Committee and are regularly brought
to the agenda of the Board of Directors.
The performance evaluation process of
the Board of Directors was completed
also in 2022 within the scope of the above
methodology.
Mr. Nail Olpak, have resigned from
Independent Board Membership as of
9 June 2022 and on the same date, our
Company’s Board of Directors elected
Mr. Nail Olpak for the position of Board
Member, which was vacant due to the
resignation of Mr. Hüseyin Aydın and such
appointment was later approved in the
ordinary general assembly dated 16 June
2022.
Considering the developments and best
practices, studies will be carried out to im-
prove our corporate governance practices
and ensure better operation of the mec-
hanisms designed for the implementation
of corporate governance principles.
Should the CGCR or CGFS be amended
within the activity period, a material event
disclosure will be made, and such amend-
ments will be included in the interim activity
reports.
COMPLIANCE STATUS
Yes
Partial
No
Exempted
Not
Applicable
Explanation
Corporate Governance Compliance Report
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. GENEL KURUL
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.
1.3.10 The agenda of the General Shareholders'
Meeting included a separate item detailing the
amounts and beneficiaries of all donations and
contributions.
1.3.11 The General Shareholders' Meeting was held
open to the public, including the stakeholders, wit-
hout having the right to speak.
1.4. VOTING RIGHTS
1.4.1 There is no restriction preventing shareholders
from exercising their shareholder rights.
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 twent-
hieth 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 allo-
cations, 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.
No information regarding this kind of activities were
received from such person following the routine infor-
mation requests made before the general assembly
meetings.
Donations and charities are included seperately on
the general assembly agenda; but information regar-
ding the amount and beneficiaries of these donations
and charities are given seperately 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.
Please see AoA: Article 7.2. and 7.3.
https://s.turkcell.com.tr/SiteAssets/Hakkimizda/yatirimci-i-
liskileri/documents/pdf/Anasozlesme21102020_ENG.pdf
Tresholds determined by the respective legislation
are in effect.
Turkcell distributed dividend in 2022.
220 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 221
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
COMPLIANCE STATUS
Yes
Partial
No
Exempted
Not
Applicable
Explanation
COMPLIANCE STATUS
Yes
Partial
No
Exempted
Not
Applicable
Explanation
1.7. TRANSFER OF SHARES
1.7.1 There are no restrictions preventing shares from
being transferred.
2.1. CORPORATE WEBSITE
2.1.1. The company website includes all elements listed
in Corporate Governance Principle 2.1.1.
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 selec-
ted 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 pur-
suant 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 repor-
ting 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 regu-
lations (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.
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 emplo-
yees on the financial status of the company, remunera-
tion, 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.
Without prejudice to 137/3, due to Article 7.5 of the
AoA we ticked the "Partial" box.
As per the 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 faci-
litated through internal regulations of the company
and various company practices.
We do not have a syndicate.
3.3.7 Measures (procedures, trainings, raising aware-
ness, goals, monitoring, complaint mechanisms) have
been taken to prevent discrimination, and to protect
employees against any physical, mental, and emotio-
nal 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 standar-
ds 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.
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 ap-
proved 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.
This year's policy limit for Directors and Officers lia-
bilty did not exceed 25% of the company capital.
222 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
COMPLIANCE STATUS
Yes
Partial
No
Exempted
Not
Applicable
Explanation
1. SHAREHOLDERS
1.1. Facilitating the Exercise of Shareholders Rights
Corporate Governance Information Form
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 attend the majority of the
board meetings in person or via an electronic board
meeting system
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 writ-
ten 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.
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.
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 bo-
ard 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 provi-
ded guarantees such as surety in favour of them.
4.6.5 The individual remuneration of board members
and executives is disclosed in the annual report.
Board of Directors Diversity Policy is adopted. Within
this scope, it is anticipated to have at least 2 women
board members until the year 2030.
There is no rule which restricts board member to serve
outside the company.
Due to the number of the board of members, they are
serving as a committee member in more than one
comittee.
No service has been received from an outside counsel
in 2022.
Information regarding Board of Directors' performance
evaluation can be found in the annual report.
In the Ordinary General Assembly Dated 16 June 2022,
it was decided that the Chairman and each member
of the Board of Directors have a monthly compensati-
on of TRY 56.0 thousand. In parallel with the common
practice, aggregate amount of the executive remune-
ration is disclosed in the annual report.
The number of investor meetings (conference, seminar/etc.) organised by the com-
pany during the year
In 2022, Investor Relations Department attended 11 investor confe-
rences, 5 of which was held virtually and the remaining 6 was held
physically held held 5 group investor meetings and eventualized 373
discussions in total, with analysts and corporate investment funds.
1.2. Right to Obtain and Examine Information
The number of special audit request(s)
0
The number of special audit requests that were accepted at the General Shareholders' Meeting 0
1.3. General Assembly
Link to the PDP announcement that demonstrates the information requested by Principle 1.3.1. (a-d) https://www.kap.org.tr/en/Bildirim/1026055
Whether the company provides materials for the General Shareholders' Meeting in
English and Turkish at the same time
Provided in English as well.
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
No transaction has been executed 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)
No related party transactions has been executed above the
tresholds.
The links to the PDP announcements associated with common and continuous transac-
tions in the context of Article 10 of the Communique on Corporate Governance (II-17.1)
No related party transactions has been executed above the treshold.
The name of the section on the corporate website that demonstrates the donation
policy of the company
https://www.turkcell.com.tr/en/aboutus/investor-relations/
corporate-governance/donation-policy
The relevant link to the PDP with minute of the General Shareholders' Meeting where
the donation policy has been approved
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
Not available.
Identified stakeholder groups that participated in the General Shareholders' Meeting, if any Not available.
1.4. Voting Rights
Whether the shares of the company have differential voting rights
There are voting privileges
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://ffo3gv1cf3ir.merlincdn.
net/SiteAssets/Hakkimizda/yatirimci-iliskileri/documents/pdf/
AnaSozlesme16062022ENG.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 distri-
bution policy
https://www.turkcell.com.tr/en/aboutus/investor-relations/
corporate-governance/dividend-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 infor-
mation as to use of the dividend
Dividends are distributed in 2022.
PDP link to the related general shareholder meeting minutes in case the board of direc-
tors proposed to the general assembly not to distribute dividends
Dividends are distributed in 2022.
General Assembly Meetings
General Meeting Date
16.06.2022
The number of information requests received by the company regarding the clarificati-
on of the agenda of the General Shareholders' Meeting
0
Shareholder participation rate to the General Shareholders' Meeting
Percentage of shares directly present at the GSM
Percentage of shares represented by proxy
76.54%
0.53%
76.01%
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
https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/yatirimci-i-
liskileri/documents/pdf/2021-GK-minutes.pdf
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
https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/yatirimci-i-
liskileri/documents/pdf/2021-GK-minutes.pdf
The number of the relevant item or paragraph of General Shareholders' Meeting minu-
tes in relation to related party transactions
As the capital markets legislation imposes liability to report the related party
transactions depending on the specified thresholds, this obligation is observed.
The number of declarations by insiders received by the board of directors
0
The link to the related PDP general shareholder meeting notification
https://www.kap.org.tr/en/Bildirim/1037823
224 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 225
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
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.
https://www.turkcell.com.tr/en/aboutus/investor-relations
If applicable, specify the name of the sections of the website providing the list of sharehol-
ders (ultimate beneficiaries) who directly or indirectly own more than 5% of the shares.
https://www.turkcell.com.tr/en/aboutus/investor-relations/
corporate-governance/shareholder-structure
List of languages for which the website is available
Turkish, English, Arabic (Partial) and Russian (Partial)
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 demons-
trate 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
Information provided in the Annual Report under Roles of Turkcell
Board Members at Other Companies section. With respect to the
independency declarations, relevent PDP notifications were made
and it was not separately addressed in the annual report.
b) The page numbers and/or name of the sections in the Annual Report that demons-
trate the information on committees formed within the board structure
c) The page numbers and/or name of the sections in the Annual Report that demons-
trate 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 demons-
trate 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 demons-
trate 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 demons-
trate the information on the conflicts of interest of the corporation among the institu-
tions 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
f) The page numbers and/or name of the sections in the Annual Report that demons-
trate the information on the cross ownership subsidiaries that the direct contribution
to the capital exceeds 5%
g) The page numbers and/or name of the sections in the Annual Report that demons-
trate 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
3. STAKEHOLDERS
3.1. Corporation’s Policy on Stakeholders
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 Our Companies and
Sector Developments.
Information provided under note 20 of CMB report which is attached
to our Annual Report.
Invesment consultancy services are not received. Measures taken for
conflicts of interest in rating services are included in Financial Capital
section.
Information provided under note 1 of CMB report which is attached to
our Annual Report.
Information provided in the Annual Report under section Social
Capital.
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
19
The position of the person responsible for the alert mechanism (i.e. whistleblowing
mechanism)
Ethics Committee
The contact detail of the company alert mechanism.
E-mail : ethicscommittee@turkcell.com.tr
Address : Turkcell İletişim Hizmetleri A.Ş. Etik Kurulu Aydınevler Mah.
İnönü Cad. No.20, Küçükyalı / İstanbul
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 regula-
tion 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 sum-
mary of relevant parts of the human resource policy.
Board of Directors, when necessary, get involved in the proce-
es through Nomination Committee within the framework of the
Committee's roles&responsibilities.
Turkcell is an equal opportunity employer and considers all qualified
applicants for employment regardless of disability, race, color, reli-
gion, gender, national origin, ethnicity, age, physical appearance or
status, marital status, military service status. Hiring process is carried
out by taking Equal Opportunities Policy into consideration under the
responsibility of the HR Department.
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 sentenced 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, uncle, maternal aunt, paternal aunt) of people working in
Turkcell Group companies may not be employed in Turkcell Group
Companies.
Employees with no past experience are assessed within the special
hiring programs such as GnçYtnk.
External candidate applications are made through
My Career www.turkcell.com.tr
Whether the company provides an employee stock ownership programme
There isn't any 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.
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.
3.5. Ethical Rules and Social Responsibility
The name of the section on the corporate website that demonstrates the code of
ethics
https://www.turkcell.com.tr/todiek/english.html
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.
You can access our reports from the link below.
https://www.turkcell.com.tr/en/aboutus/
corporate-social-responsibility/sustainability
Any measures combating any kind of corruption including embezzlement and bribery
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 internati-
onal 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-relati-
ons/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.
226 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
4. BOARD OF DIRECTORS-I
4.2. Activity of the Board of Directors
Date of the last board evaluation conducted
The performance evaluation made with the coordination of
Corporate Governance & Capital Markets Compliance unit is
concluded in December 2022 upon Board Members' fulfillment of the
evaluation forms.
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.
Number of reports presented by internal auditors to the audit committee or any relevant
committee to the board
18
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.
Name of the Chairman
Name of the CEO
Bülent Aksu
Murat Erkan
4. BOARD OF DIRECTORS-II
4.4. Meeting Procedures of the Board of Directors
Number of physical or electronic board meetings in the reporting period
Director average attendance rate at board meetings
Whether the board uses an electronic portal to support its work or not
9
100.00%
Yes
Number of minimum days ahead of the board meeting to provide information to direc-
tors, 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 cove-
ring 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.
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
If the CEO and Chair functions are combined: provide the link to the relevant PDP
announcement providing the rationale for such combined roles
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
The name of the section on the corporate website that demonstrates current diversity
policy targeting women directors
CEO and Chair functions are not combined.
Link(s) to the PDP announcement(s) with the board committee charters
No disclosures have been made since the policy limit for Directors and
Officers liability did not exceed 25% of company capital.
Board of Directors Diversity Policy is adopted. Within this scope, it is
anticipated to have at least 2 women board members until the year
2030.
Composition of Board Committees-I
Names Of The Board Committees
Name-Surname of Committee Members Whether Committee Chair Or Not
Whether Board Member Or Not
The number and ratio of female directors within the Board of Directors
1 - 11%
Composition of Board of Directors
Name, Surname
of Board Member
Whether
Executive
Director Or
Not
Whether
Independent
Director Or Not
The First
Election
Date To
Board
Link to PDP
Notification That
Includes The
Independency
Declaration
Whether the
Independent
Director Considered
By The Nomination
Committee
Whether She/He is
the Director Who
Ceased to Satisfy
The Independence
or Not
Whether The
Director Has At
Least 5 Years’
Experience On
Audit, Accounting
And/Or Finance
Or Not
Bülent Aksu
Serdar Çetin
Tahsin Yazar
Non-Executive
Board Member
Not An Independent
Board Member
7.03.2019
Not considered
Non-Executive
Board Member
Independent Board
Member
16.06.2022
https://www.kap.org.
tr/en/Bildirim/1037312 Considered
Non-Executive
Board Member
Not An Independent
Board Member
6.03.2020
Not considered
Afif Demirkıran
Non-Executive
Board Member
Independent Board
Member
6.03.2020
https://www.kap.org.
tr/en/Bildirim/928569 Considered
Non-Executive
Board Member
Independent Board
Member
6.03.2020
https://www.kap.org.
tr/en/Bildirim/928569 Considered
Non-Executive
Board Member
Independent Board
Member
15.04.2021
https://www.kap.org.
tr/en/Bildirim/928569 Considered
Non-Executive
Board Member
Not An Independent
Board Member
15.04.2021
Non-Executive
Board Member
Not An Independent
Board Member
29.01.2021
Julian Horn-Smith
Non-Executive
Board Member
Not An Independent
Board Member
15.04.2021
Not considered
Not considered
Not considered
Nail Olpak
Hüseyin Arslan
Şenol Kazancı
Figen Kılıç
No
No
No
No
Yes
No
No
No
No
Yes
Yes
No
No
Yes
Yes
No
No
Yes
Audit Committee
Audit Committee
Audit Committee
Serdar Çetin
Afif Demirkıran
Hüseyin Arslan
Corporate Governance Committee
Serdar Çetin
Corporate Governance Committee
Şenol Kazancı
Corporate Governance Committee
Ali Serdar Yağcı
Corporate Governance Committee
Emre Alpman
Nomination Committee
Nomination Committee
Nomination Committee
Hüseyin Arslan
Bülent Aksu
Figen Kılıç
Early Detection of Risk Committee
Afif Demirkıran
Early Detection of Risk Committee
Figen Kılıç
Early Detection of Risk Committee
Tahsin Yazar
Remuneration Committee
Hüseyin Arslan
Remuneration Committee
Remuneration Committee
Bülent Aksu
Nail Olpak
Strategy and Digitalization Committee Afif Demirkıran
Strategy and Digitalization Committee Bülent Aksu
Strategy and Digitalization Committee Serdar Çetin
Strategy and Digitalization Committee Mehmet Akif Konar
Strategy and Digitalization Committee Serkan Öztürk
No
No
Yes
Yes
No
No
No
Yes
No
No
Yes
No
No
Yes
No
No
Yes
No
No
No
No
Board Member
Board Member
Board Member
Board Member
Board Member
Not Board Member
Not Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Board Member
Not Board Member
Not Board Member
228 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 229
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
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)
Not available in the annual report. Please see: https://www.turkcell.
com.tr/en/aboutus/investor-relations/corporate-governance/
board-committees
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)
Not available in the annual report. Please see: https://www.turkcell.
com.tr/en/aboutus/investor-relations/corporate-governance/
board-committees
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)
Not available in the annual report. Please see: https://www.turkcell.
com.tr/en/aboutus/investor-relations/corporate-governance/
board-committees
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)
Not available in the annual report. Please see: https://www.turkcell.
com.tr/en/aboutus/investor-relations/corporate-governance/
board-committees
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
4.6. Financial Rights
Specify where the operational and financial targets and their achievement are presen-
ted in your annual report (Page number or section name in the annual report)
Information provided in the Annual Report under Turkcell Group: 2022
Operational and Financial Review section
Specify the section of website where remuneration policy for executive and non-exe-
cutive 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 37 of CMB report which is attached
to our Annual Report.
Composition of Board Committees-II
Names Of The Board
Committees
The Percentage Of Non-
executive Directors
The Percentage Of
Independent Directors In
The Committee
The Number Of Meetings
Held In Person
The Number of Reports on its
Activities Submitted to the
Board
Serdar Çetin
Audit Committee
Corporate Governance
Committee
Nomination Committee
Early Detection of Risk
Committee
Remuneration Committee
Strategy and Digitization
Committee
100%
50%
100%
100%
100%
60%
100%
25%
33%
33%
33%
40%
9
3
1
6
5
4
8
3
1
6
3
-
Roles of Turkcell Board Members at
Other Companies
Board Member
Name-Surname
Duties Outside The Group: Company Name
Bülent Aksu
-
Duties Outside The Group: Title/
Position
Still Working in the
Related Company?
-
-
PAK YATIRIM İnşaat Sanayi ve Ticaret A.Ş.
Chairman of the Board of Directors Yes
NORA Elektrik Malzemeleri Sanayi ve Ticaret A.Ş.
Chairman of the Board of Directors Yes
PAK YATIRIM Ventures Teknoloji Yatırımları San ve Tic A.Ş.
PAK YATIRIM Enerji San ve Tic A.Ş.
PAK YATIRIM Tarım Hayvancılık San ve Tic A.Ş.
HMN İnşaat Enerji Sanayi ve Ticaret A.Ş.
AVRUPA OTOYOLU Yatirim ve İşletme A.Ş.
Nail Olpak
KMO Anadolu Otoyol İşletmesi A.Ş.
MARMARA OTOYOLU Yatirim ve İşletme A.Ş.
No
No
No
No
Member of the Board of Directors
Member of the Board of Directors
Member of the Board of Directors
MARMARA OTOYOL INSAATI Adi Ortakliği Ticari İşletmesi
Member of the Board of Directors
KRP Otoyol Inşaati Adi Ortakliği Ticari İşletmesi
Member of the Board of Directors
ANDEVA Özel Eğitim Inşaat ve Özel Sağlik Hizmetleri A.Ş.
No
TURK EXIMBANK A.Ş.
Member of the Board of Directors
NARKARA Elektrik Üretim Sanayi ve Ticaret Anonim Şirketi
Member of the Board of Directors
GIRISIM KITLE FONLAMA Platformu A.Ş.
Tahsin Yazar
Afif Demirkıran
-
-
Figen Kılıç
TÜBİTAK TEYDEB
Hüseyin Arslan
Istanbul Medipol University
Şenol Kazancı
-
Novator Partners LLP
WOM S.A.
Purple Crest Investments LLP
Partners Telecom Colombia S.A.S.
AlixPartners, London
Digicel Group
No
-
-
Member of the Advisory Board
(BİLTEG)
Professor / Dean
-
Partner
Board Member
Partner
Legal Representative
Senior Advisor
Independent Director
Sir Julian Horn-Smith
eBuilder (Swedish Tech/Software Company based in Stockholm,
Sweden)
Chairman
Viasat
Advisory Board Membership
No
No
No
No
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
No
-
-
Yes
Yes
-
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Conclusion of the Subsidiary Report
01.01.2022 - 31.12.2022 Fiscal Year Conclusion of the Report on the relationship among the Parent Company and the subsi-
diaries as per Article 199 of the Turkish Commercial Code: Details of the legal transactions of our Company with TVF Bilgi
Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. and its subsidiaries during the fiscal year 2022 are given in the above tables.
There is neither any legal transaction made in favor of TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş or one of its
subsidiaries nor any action taken or avoided in favor of TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. or one of
its subsidiaries upon directive by TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş.
Details of services provided and/or fixed asset purchases/sales performed under operational activities carried out between
our Company and TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. and/or its subsidiaries that are fully in confor-
mity with the market during the fiscal year 2022 are included in this Report.
230 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 231
Sectoral and
Financial
Information
Turkcell Group: 2022 Financial & Operational Review
Forward Looking Statements
Our Companies and Sector Developments
Independent Auditor’s Report and Financial Statements
Our Offices
Glossary
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Turkcell Group: 2022 Financial &
Operational Review
Our audited annual consolidated financial statements including our consolidated statements of financial position as of
December 31, 2022 and 2021 and our consolidated statements of profit and loss, comprehensive income, changes in equity
and cash flows for the two years in the period ended December 31, 2022 and the related notes included in this annual report
have been prepared in accordance with Turkish Accounting Standards/Turkish Financial Reporting Standards (“TAS”/“TFRS”)
only. These standards are issued by the Public Oversight Accounting and Auditing Standards Authority (“POA”) and are in full
compliance with IAS/IFRS Standards. In an announcement published by the POA on January 20, 2022, it is stated that TAS 29
“Financial Reporting in Hyperinflationary Economies” does not apply to TFRS financial statements as of December 31, 2021. 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 2022 refer to the same item for the
year end of 2021 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 losses on financial and contract assets
EBITDA2
EBITDA Margin
Depreciation and amortization
EBIT3
EBIT Margin
Net finance income / (expense)
Finance income
Finance expense
Other income / (expense)
Investment activity income / (expense)
Non-controlling interests
Share of profit of equity accounted investees
Income tax expense
Net Income
(1) Excluding depreciation and amortization expenses.
(2) EBITDA is a non-GAAP financial measure.
FY21
35,920.5
(17,938.1)
50.1%
(919.0)
(1,778.5)
(271.2)
15,013.8
41.8%
(7,291.9)
7,721.9
21.5%
(10,144.6)
3,051.1
(13,195.7)
6,409.6
464.1
(0.2)
90.1
490.2
5,031.1
Year
FY22
53,878.5
(27,310.6)
49.3%
(1,519.0)
(2,700.1)
(354.9)
21,993.8
40.8%
(9,478.0)
12,515.8
23.2%
(13,489.0)
210.8
(13,699.8)
6,800.9
1,779.9
1.0
(71.4)
3,516.1
11,053.2
y/y%
50.0%
52.2%
(0.8pp)
65.3%
51.8%
30.9%
46.5%
(1.0pp)
30.0%
62.1%
1.7pp
33.0%
(93.1%)
3.8%
6.1%
283.5%
n.m
(179.3%)
617.3%
119.7%
Consolidated Balance Sheet Data (Year End) (million TRY)
2021
Cash and cash equivalents
Total assets
Long term debt
Total debt
Total liabilities
Total equity
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 Margin
EBITDA Margin
EBIT Margin
Net Profit Margin
Total Liability / Equity Ratio
Net Debt / EBITDA Multiple
EXPLANATIONS:
Revenue
18,628.7
70,682.6
27,929.7
36,778.1
48,120.4
22,562.3
2021
21,171.1
(10,361.5)
(3,942.2)
(108.0)
18,619.9
2021
50.1%
41.8%
21.5%
14.0%
213.3%
1.1x
2022
25,960.7
101,264.8
37,133.1
53,854.4
70,369.8
30,891.1
2022
25,151.9
(19,647.8)
1,760.0
56.1
25,940.1
2022
49.3%
40.8%
23.2%
20.5%
227.8%
0.9x
Change%
39.4%
43.3%
33.0%
46.4%
46.2%
36.9%
Change%
18.8%
89.6%
n.m
n.m
39.3%
Change%
(0.8pp)
(1.0pp)
1.7pp
6.5pp
14.5pp
(0.2pp)
Turkcell Group revenues rose 50.0%.
Turkcell Turkey revenues grew 50.1% to TRY40,851 million (TRY27,224 million).
• Consumer business rose 47.9% driven mainly by strong subscriber net additions both in mobile and fixed segments,
price adjustments and upsell efforts.
• Corporate revenues rose 58.3% mainly supported by digital business services revenue growth of 88.3%.
• Standalone digital services revenues from consumer and corporate segments grew 30.3% driven mainly by expanding
standalone paid user base.
• Wholesale revenues grew 72.7% to TRY3,285 million (TRY1,903 million).
(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.
Turkcell International revenues rose 69.4% to TRY6,354 million (TRY3,750 million).
Techfin segment revenues rose 71.9% to TRY1,849 million (TRY1,076 million).
Other subsidiaries’ revenues were at TRY4,825 million (TRY3,871 million), indicating a 24.6% growth.
234 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 235
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Cost of revenue (excluding the depreciation and amortization)
Income tax expense
Cost of revenue (excluding depreciation and amortization) rose to 50.7% (49.9%) as a percentage of revenues. This was due
mainly to the rise in radio expenses (2.0pp) and other cost items (1.7pp), despite the decline in cost of goods sold (1.7pp) and
interconnection expenses (1.2pp) as a percentage of revenues.
Administrative expenses
Administrative expenses were at 2.6% (2.6%) as a percentage of revenues.
Deferred tax income of TRY4,047 million and current tax expense of TRY531 million were reported, leading to an income
tax gain of TRY3,516 million in FY22.
Please note that in Q422, we made use of the right introduced by Law No. 7338, which allows the revaluation of pro-
perties and depreciable economic assets under certain conditions. This resulted in an impact on the deferred tax asset
reported in Q422. For the full year, net impact was at TRY4.6 billion. Please refer to our consolidated financial statements
and notes as at December 31, 2022 for details.
Selling and marketing expenses
Net income
Selling and marketing expenses were at 5.0% (5.0%) as a percentage of revenues.
Net impairment loses on financial and contract assets
Net impairment losses on financial and contract assets was at 0.7% (0.8%) as a percentage of revenues.
EBITDA1
EBITDA grew 46.5% resulting in an EBITDA margin of 40.8% (41.8%).
• Turkcell Turkey’s EBITDA rose 41.3% to TRY17,197 million (TRY12,168 million) leading to an EBITDA margin of 42.1% (44.7%).
• Turkcell International EBITDA increased 76.8% to TRY3,233 million (TRY1,828 million) driving an EBITDA margin of 50.9%
(48.8%) on 2.1pp improvement.
• Techfin segment EBITDA rose 41.1% to TRY902 million (TRY639 million) with an EBITDA margin of 48.8% (59.4%).
• The EBITDA of other subsidiaries rose 74.9% to TRY662 million (TRY379 million).
Depreciation and amortization expenses
Depreciation and amortization expenses increased 30.0% in FY22.
Net finance expense
group net income rose 119.7% to TRY11,053 million (TRY5,031 million) on the back of strong operational performance and
the deferred tax income impact despite lower finance income. Without the deferred tax income impact, group net inco-
me is TRY6,445 million in FY22.
Please note that in FY22 an impairment charge of TRY214 million has been recognized on the assets of Ukraine in terri-
tories under the control of Ukraine but not operating for more than 92 days and those in territories invaded by Russia.
Total cash & debt
Consolidated cash as of December 31, 2022 increased to TRY25,961 million from TRY24,344 million as of September 30,
2022. This was driven mainly by the positive impact of currency movements. Excluding FX swap transactions, 51% of our
cash is in US$, 15% in EUR, and 32% in TRY.
Consolidated debt as of December 31, 2022 increased to TRY53,854 million from TRY51,922 million as of September 30,
2022 due mainly to the impact of currency movements. Please note that TRY3,055 million of our consolidated debt is
comprised of lease obligations. Please note that 46% of our consolidated debt is in US$, 26% in EUR, 3% in CNY, 5% in UAH,
and 19% in TRY.
Net debt1 as of December 31, 2022 was at TRY20,838 million with a net debt to EBITDA ratio of 0.9 times. Excluding finance
company consumer loans, our telco only net debt was at TRY17,473 million with a leverage of 0.8 times.
Turkcell Group had a short FX position of US$25 million as at the end of the year (Please note that this figure takes hed-
ging portfolio and advance payments into account). The short FX position of US$25 million is in line with our FX neutral
definition, which is between -US$200 million and +US$200 million.
Net finance expense increased to TRY13,489 million (TRY10,145 million) mainly due to lower fair value gain on derivate
instruments compared to FY21.
Capital expeditures
Net other operating income
Net other operating income increased to TRY6,801 million (TRY6,410 million) mainly due to interest income from time de-
posits in FY22.
Net investment activity income
Net investment activity income increased to TRY1,780 million (TRY464 million) in FY22. This was driven mainly by the fair
value difference recognized on currency-protected time deposits.
Capital expenditures including non-operational items were at TRY16,361 million in FY22.
In 2022, operational capital expenditures (excluding license fees) at the Group level were at 20.2% of total revenues.
Capital expenditures (million TRY)
Operational Capex
License and Related Costs
Non-operational Capex (Including IFRS15 & IFRS16)
Total Capex
FY21
7,629.8
-
3,849.6
11,479.4
Year
FY22
10,859.4
317.5
5,183.6
16,360.6
(1) Starting from Q421, we have revised the definition of our net debt calculation to include “financial assets” reported under current and non-current assets.
Required reserves held in CBRT balances are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted
to cash without significant change in value.
236 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 237
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL GROUP: FINANCIAL SUMMARY
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 (%)
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)
FY21
39.4
23.7
3.3
12.0
1,887.8
754.9
603.6
54.6
1,082.2
2.0%
1.5%
50.5
54.9
62.8
71.7
26.9
77.9
78.4
13.3
FY22
41.7
25.6
4.0
12.0
2,121.8
751.4
670.7
43.9
1,281.7
2.0%
1.4%
70.0
77.0
84.7
98.4
40.5
98.7
99.2
14.7
Mobile MoU (Avg. Monthly Minutes of usage per subs) blended
551.2
546.4
(1) Superbox subscribers are included in mobile subscribers.
(2) Churn figures represent average monthly churn figures for the respective quarters.
Year
y/y %
5.8%
8.0%
21.2%
-
12.4%
(0.5%)
11.1%
(19.6%)
18.4%
-
(0.1pp)
38.6%
40.3%
34.9%
37.2%
50.6%
26.7%
26.5%
10.5%
(0.9%)
In FY22, we had 234 thousand fiber net additions, making the best net add performance ever. This resulted mainly by focus on
fiber network investments, and the strong demand for high-speed and quality broadband connections. In FY22, we had a net
14 thousand decline in our ADSL and cable subscribers. Total fixed subscribers reached 2.9 million on 220 thousand annual net
additions. Meanwhile, IPTV customers reached 1.3 million on 200 thousand annual net additions.
The average monthly mobile churn rate was at 2.0% in FY22. Meanwhile, the average monthly fixed churn rate was at 1.4% in
FY22 on the back of our superior customer experience resulting from the speed and quality we offer on our fiber infrastructure
which plays an important role in maintaining a healthy churn level.
Mobile ARPU (excluding M2M) grew 40.3% for the full year mainly by price adjustments to reflect inflationary impacts and
upsell to higher tariffs, as well as larger postpaid subscriber base.
For the full year, fiber residential ARPU rose 26.5%.
Average monthly mobile data usage per user rose 10.5% in FY22 to 14.7 GB with the increasing number and data consumption
of 4.5G users. Accordingly, the average mobile data usage of 4.5G users reached 16.0 GB in FY22.
Total smartphone penetration on our network reached 87% in FY22. 93% of those smartphones were 4.5G compatible.
FORWARD LOOKING
STATEMENTS
2023
GUIDANCE
2023 guidance; revenue target of between 55-57%, EBITDA
target of around TRY34 billion, and operational capex
over sales ratio target of around*22%.
Turkcell Turkey subscriber base grew by 2.3 million net additions in FY22 to 41.7 million, thanks to our customer-centric strategy
and differentiated value proposition offered to customers. In addition, we achieved and doubled our 1 million net subscriber
additions target for the year on the back of our diversified solutions that meet customer needs and our innovative campaigns
that facilitate their lives.
(1) Excluding license fee
On the mobile front, our subscriber base expanded to 37.5 million on 1.9 million net annual additions in FY22. This was driven
by net additions from the postpaid subscriber base, which reached 68.1% (66.4%) of total mobile subscribers. In FY22, we had
a net 10 thousand decline in our prepaid subscribers, due mainly to the disconnection of 430 thousand inactive prepaid sub-
scribers during the quarter in line with our churn policy.
Please note that this paragraph contains forward looking statements based on our current estimates and expectations re-
garding market conditions for each of our different businesses. No assurance can be given that actual results will be consis-
tent with such estimates and expectations. For a discussion of factors that may affect our results, see our Annual Report on
Form 20-F for 2021 filed with the U.S. Securities and Exchange Commission, and in particular, the risk factor section therein.
238 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 239
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Our Companies and Sector Developments
Electronic Communications
Sector in Turkey
According to the Q3 2022 Q3 Market
Data report published by the regulato-
ry authority of our industry, Information
and Communication
Technologies
Authority (ICTA), the number of oper-
ators in the electronic communication
sector in Turkey is 464 and the number
of authorizations granted to these op-
erators is 840.
(Vodafone), TT Mobil
In the first thre quarters of 2022, the
total revenues of mobile operators, in-
cludingTurkcell İletişim Hizmetleri A.Ş.
(Turkcell), Vodafone Telekomünikasyon
A.Ş.
İletişim
Hizmetleri A.Ş. (TT Mobile), and Türk
Telekomünikasyon A.Ş. (Türk Telekom)
were approximately TRY 65.8 billion,
while the revenue of other operators
was TRY 24.2 billion. During the same
period, the total investments made by
Turkcell, Türk Telekom, TT Mobil, and
Vodafone was realized as TRY 12.5
billion.
Mobile Market
As of the 3rd quarter of 2022, there were
90.8 million mobile subscribers in Turkey,
corresponding to approximately 107.2%
penetration rate (Mobile penetration
rate excluding
M2M devices and 0-9 age population is
114.6%). In the 3rd quarter of 2022, the num-
ber of 4.5G subscribers was 83.4 million,
while the number of 3G subscribers was
4.3 million. The number of mobile broad-
band subscribers who use 3G and 4.5G
broadband services via computers and
mobile phones rose to 72.6 million.
As of the 3rd quarter of 2022, 68.2% of mo-
bile subscribers were in postpaid tariffs,
while 31.8% were in prepaid tariffs. The
number of prepaid mobile broadband
subscribers was 21.3 million and the
number of postpaid mobile broadband
subscribers was 50.3 million, while the
number of M2M subscribers reached 8.1
million.
In the first three quarters of 2022, the
number of mobile numbers ported de-
clined to 6.7 million. As of September 30,
2022, total mobile number portability
transactions has reached 164 million.
Based on number of subscribers, Turkcell
has 41.3%, Vodafone has 30.8%, and TT
Mobil has 27.9% market share. Based
on revenue generated from subscrib-
ers, Turkcell’s market share was 46.1%,
Vodafone’s was 29.1%, and TT Mobil’s was
24.8%. Approximately 85% of mobile sub-
scribers were individual subscribers and
15% were corporate subscribers.
The average monthly data usage in mo-
bile broadband was 14.8 GB, while the
average monthly data usage of sub-
scribers who have a 4.5G-compatible
device and SIM card was 16 GB. The total
mobile voice traffic volume in the third
quarter of 2022 decreased by 0.7% com-
pared to the same period of last year
and was 80.6 billion minutes.
Broadband Internet Market
The number of broadband internet
subscribers, which was around six mil-
lion in 2008, reached 91.4 million (18.8
million fixed broadband, 72.6 million
mobile broadband subscribers) as
of the end of the 3rd quarter of 2022.
Total number of internet subscribers
has increased by 4.5% compared to
the same period of the previous year.
While the number of xDSL subscribers
was 11.3 million, the number of fiber
subscribers reached 5.5 million. The
total length of fiber infrastructureof
operators was 498,397 km.
In the first three quarters of 2022, the
total revenues related to internet ser-
vice providers reached TRY 15 billion.
The average monthly data usage of
fixed broadband internet subscribers
reached 243 GB. Approximately 72%
of fixed broadband subscribers pre-
fer packages that offer a 10-35 Mbit/s
connection speed.
TV Market
As of the 3rd quarter of 2022, there are
16 operators, which have the Cable
Broadcasting Service (KYH) authori-
zation. While the number of subscrib-
ers of Türksat’s Cable TV s is 1.4 million,
the operators providing IPTV services,
Superonline (TV+) and
TTNet (Tivibu) have 1,231 thousand and
974 thousand subscribers, respectively.
satellite platform
Of the operators authorized to pro-
vide
services,
Digital Platform Teknoloji Hizmetleri
A.Ş. (Digitürk), Andromeda TV Dijital
Platform İşletmeciliği A.Ş. (DSmart), and
TTNET A.Ş. (Tivibu) continue broadcast-
ing actively.
Fixed Voice Market
As of the end of 3rd quarter of 2022,
there are 11.5 million fixed telephone-
subscribers, while the service penetra-
tion rate is approximately 13.8%.
Legal and Regulatory
Developments Concerning Our
Industry and Our Companies
Removal of Asymmetry in Mobile
Interconnection Rates
The Information and Communication
Technologies Authority decided, un-
der Board Decision dated 25 June
2021, to update the Mobile Termination
Rates and to completely remove the
asymmetry in the rates as of January
1, 2024. In scope of the Board Decision,
for Turkcell, Mobile Termination Rates
will be applied as 2.39 kr/min start-
ing from January 1, 2022 and 2.25 kr/
min starting from January 1, 2023 and
gradually reduced every year. Mobile
Termination Rates will be made equal
at the level of 2.1 kr/min for all operators
as of January 1, 2024, and the ongoing
asymmetry in fees that has been unfa-
vorable for Turkcell since 2006 will thus
come to an end.
Removal of Tariff Control Obligation
for SMS/MMS Termination Services
The Information and Communication
Technologies Authority, within
the
scope of the Market Analysis in accord-
ance with its Council Decision No. 2020/
İK-SRD/258 published on 08.09.2020,
has decided to repeal the obligation
to be subject to tariff control (cost-
based tariff determination) regarding
the SMS/MMS call termination services
as of 01.10.2021. After the conciliation
process conducted, the mobile oper-
ators’ SMS/MMS call termination fees
were determined as 0.80 Kr/unit as of
01.04.2022, 1.00 Kr/unit as of 01.01.2023
and 1.20 Kr/unit as of 01.01.2024 through
Council Decision No. 2021/UK-ETD/390
dated 14.12.2021.
Update on Fixed Interconnection Rates
With
the Board Decision dated
December 14th 2021, the Information
and Communication
Technologies
Authority decided that with the tran-
sition to IP interconnection technology,
a single-stage fee structure shall be
adapted in Fixed Call Termination Rates
as of January 1st 2022. For Superonline,
the related rates will be applied as 2.8
kr/min as of January 1st 2022 and 2.2 kr/
min as of January 1st 2023. It has been
decided that as of January 1st 2024, the
termination rates for all operators will
be equalized at the level of 1.47 kr/min
to totally remove the asymmetry in the
sector.
Maximum Tariff Regulation on Mobile
Electronic Communication Services
Maximum tariffs of the services (domes-
tic/international voice and SMS, name/ti-
tle change, line transfer, number change,
SIM card change, on/off, detailed invoice,
unknown numbers service etc.) includ-
ed in the Maximum Tariff Regulation
of Mobile Electronic Communication
Services are updated every six months
by ICTA. Tariffs were increased by ap-
proximately 40.5% on 01.04.2022 and by
approximately 26.1% on 01.10.2022.
Establishment of Electronic
Communication Subscription
Contracts in the Electronic
Environment
The regulations regarding the verifi-
cation process of the applicant’s iden-
tity in the electronic communication
sector for subscription agreement,
number porting application, opera-
tor switching applications, qualified
electronic certificate application,
registered electronic mail applica-
tions and SIM change applications, in
the event that the related documents
are prepared electronically, have
come into effect as of 01.03.2022, as
per the “Regulation on the Verification
Process of the Applicant’s Identity in
the Electronic Communication Sector”
published in the Official Gazette on
26.06.2021.
The Amendment to the Regulation
on Consumer Rights in the Electronic
Communications Sector
the
The Regulation on Consumer Rights
the Electronic Communications
in
Sector, regulating consumer rights
and operator obligations in the elec-
tronic communications sector, was
amended with a Regulation that was
published
in the Official Gazette
dated 18.01.2022. The provisions of
the amendment governing the har-
monization with
“Regulation
on the Authentication Process of
the Applicant
the Electronic
in
Communications Sector” came into
effect on 01.03.2022, and various
matters regarding subscriber agree-
ments, contracts and subscriber no-
tifications, and obligations such as
cancellation, without an early ter-
mination fee, of services failing to
meet the criteria of “Address-based
Internet Speed Test Criteria” that
would be determined subsequent-
ly by the ICTA came into effect on
31.12.2022.
240 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 241
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Limiting the Number of Prepaid and
Postpaid Subscriptions
Refurbished Device Sales Installment
Regulations
With the Board Decision numbered
2022/DK-THD/384 and dated 07.12.2022,
the provisions of the Board Decision
numbered 2009/DK-10/552 and dat-
ed 27.10.2009, which limits the number
of prepaid subscriptions that can be
activated in order to resolve the “fraud-
ulent subscriptions” issue, have been
updated. Accordingly, the number of
prepaid consumer mobile subscriptions
for Turkish citizens is limited to 15, and
for foreign nationals, it is limited to 3.
The number of postpaid consumer mo-
bile subscriptions for Turkish citizens is
limited to 15, and for foreign nationals, it
is limited to 3. Moreover, the number of
“Prepaid and Postpaid Consumer Mobile
Subscriptions” that can be activated on
behalf of each person in the same month
by an authorized retailer was limited to 4.
Repeal of Pandemic Measures
With the Board Decision numbered
2022/DK-THD/402 and dated 20.12.2022,
ICTA has announced that the terms of
the Board Decision dated 31.03.2020 and
numbered 2020/DK-THD/100 - which
regulated certain issues with the aim of
ensuring continuation of electronic com-
munication services and keeping the ser-
vice quality at a safe and qualified level
to respond to societal demands in order
to reduce the effects of the pandemic
have been repealed as of 31.12.2022.
Authorizing Provision of Over-the-Top
Services
With the “Law on Amendments to the
Press Law and Other Laws” that was
into effect on
published and came
18.09.2022, amendments were made
on Articles 3, 9 and 60 of the “Electronic
Communications Law” numbered 5809
(ECL) and it was regulated that over-
the-top service providers that offer in-
terpersonal electronic communication
services in the scope of voice, text and
visual communication need to perform
their services through a fully authorized
representative, i.e. a joint stock or limited
company established in Türkiye, within
the framework of the authorization by
the Authority (ICTA). With the amend-
ment, over-the-top service providers will
gain operator status and will become
subject to rights and obligations deter-
mined by ICTA according to the nature of
the over-the-top service provision.
According to the “Banking Regulation
and Supervision Board Decision
No. 10479” published on the web-
site of the Banking Regulation and
Supervision Authority on 05.01.2023;
•
•
For purchases of cell phones with
the status of “refurbished prod-
uct” under the Regulation on the
Sale of Refurbished Products, the
installment period for purchases
made with a credit card with-
out any amount limit is set to 12
months, provided that they are
sold by a “refurbishing center” or
an “authorized seller”.
(including
The maturity limit for consumer
loans used for cell phone pur-
chases
refurbished
products) is set to 12 months for
cell phones with a price of up to
12,000 Turkish Liras, and 3 months
for cell phones with a price over
12,000 Turkish Liras.
to
the
According
Regulation
Amending the Regulation on the
Principles and Rules to be Applied
in Retail Trade, excluding sales of
cell phones with the status of “refur-
bished product” carried out by refur-
bishing centers or authorized sellers
under the Regulation on the Sale of
Refurbished Products, the maturi-
ty limit is set to 3 months for sales of
pledged cell phones with a price over
12,000 TL, and 12 months for sales of
pledged cell phones,
regardless
of the price being below or above
12,000 TL, for refurbished product
purchases.
Litigation Procedures Regarding
Rejection of Domestic Goods
Liability Exemption Requests and
ICTA’s R&D SME Audit
regarding
Our company’s exemption appli-
cation for the period of 27.10.2015-
the domes-
26.10.2019
investment obligation
tic product
specified
in the IMT Authorization
Document, has been rejected by
the
its decision dated
01.09.2020 and numbered 2020/İK-
YED/245. Furthermore, our company’s
exemption application regarding the
average of the first four-year period
covering the years 2015-2019 has also
ICTA with
been rejected, and an administra-
tive sanction has been imposed on
our company as a result of the audit
carried out by ICTA for the period
2013-2017.
Additionally, the decisions regard-
ing the rejection of our company’s
exemption request for the 2019-2020
and 2020-2021
investment periods
regarding the obligation to use do-
mestic products have been deemed
implicitly rejected by the application
made in 2022 for the revocation of
these decisions, and legal proceed-
ings are being conducted on this
matter.
Amendment to the Procedures and
Principles on the Investigation and
Supervision of R&D Investments
With the decision of the Information
and Communication Technologies
Board dated 16.11.2021 and numbered
the Procedures
2021/DK-YED/361,
and Principles on the Investigation
and Supervision of Hardware and
Software
Investments to be Used
in the 4.5G Network have been up-
dated. The new regulation includes
issues such as ensuring that the
amount of purchase per supplier
does not exceed 50% of the total in-
vestments made during an invest-
ment period, informing ICTA before
the investments for critical network
elements and complying with a pos-
sible notification, ensuring a defi-
nition for national product, and im-
posing obligations on R&D projects
carried out in R&D centers. Our com-
pany’s application regarding revo-
cation of related Board decision has
been rejected and legal proceedings
conducted regarding this matter.
Lawsuit issued by TT Mobil and our
Company intervened regarding the
“Multiplying Campaign” administra-
tive fine applied to our Company
The administrative
fine of TRY
25,245,565.18 applied by the arti-
cles 1, 2, 3 and 4 of ICTA’s decision
dated 16.03.2021 and number 2021/
İK-THD/76 for our Company’s oper-
ation under “Multiplying Campaign”
has been paid with discount (TRY
18,934,173.9) by our company and le-
gal methods have not been pursued
against the decision. Within the pe-
riod, there was an application by
TT Mobil for the amendment of the
ICTA decision taken regarding our
increase the applied
company to
administrative fine and modifying
the aforementioned decision to in-
clude a money return to subscribers,
and after the implicit rejection of this
request a lawsuit against ICTA has
been filed with the request of cancel-
lation of the aforementioned implicit
rejection. Our company is intervening
in this lawsuit on the side of ICTA. The
lawsuit process continues.
Establishment of Re-Pie Portföy
Yönetimi A.Ş. Turkcell New
Technologies Venture Capital
Investment Fund
An agreement has been concluded
between our Company and Re-Pie
Portföy Yönetimi A.Ş. (“Re-Pie”) for
establishing a venture capital
in-
vestment fund to invest into startups
that are in line with our Company’s
business model and where common
ground can be found with our group’s
strategic focus areas. Consequently,
Re-Pie applied
the Capital
Markets Board as the founder of
Re-Pie Portföy Yönetimi A.Ş. Turkcell
New Technologies Venture Capital
Investment Fund on 07.03.2022 and
with the permission obtained on
28.03.2022, the fund was established.
to
With the establishment of the fund
and by investing in technology-fo-
cused startups with high growth po-
tential in different sectors, it is aimed
to enable these companies to meet
their growth targets and to add stra-
tegic and financial benefit to our
Company as well as create long-
term value thanks to the synergy to
be created through such startups. In
this context, investments were made
in companies and venture capital
investment funds, including Easycep
Holdings Limited, Barikat
İnternet
Güvenliği Ticaret Bilişim A.Ş. and
Procenne Teknoloji A.Ş. through the
Re-Pie Portföy Yönetimi A.Ş. Turkcell
New Technologies Venture Capital
Investment Fund, in 2022.
Share Transfer and Investment
Agreement with the Republic of
Belarus
Meetings have been held be-
tween Turkcell and CJSC Belarusian
Telecommunications Network (“CJSC
BeST”) and the Republic of Belarus
with respect to the restructuring of
invest-
Turkcell’s and CJSC BeST’s
ments in Belarus, potential improve-
ments on competitive conditions and
various tax advantages. In this re-
gard, an Investment Agreement has
been signed between the Republic
of Belarus, Turkcell and CJSC BeST
on 30.11.2022 and the agreement
has come into effect on 06.12.2022.
Pursuant to this agreement;
•
•
•
•
The Share Sale and Purchase
Agreement signed between Beltel
Telekomünikasyon Hizmetleri A.Ş.
(“Beltel”), the Republic of Belarus
and Turkcell on 29.07.2008 has
been terminated with all its rights
and duties by signing a separate
agreement for termination.
Turkcell signed a share transfer
agreement with the Republic
of Belarus on 30.11.2022 to pur-
chase of 20% shares held by the
Republic of Belarus in CJSC Best,
80% shares of which is owned
by Beltel, a 100% subsidiary of
Turkcell. 20% shares of CJSC BeST
has been purchased by Turkcell
from the State Committee on
Property of
the Republic of
Belarus for a cash payment of
USD 1,165.66.
It has been decided that an in-
vestment of no less than USD
100,000,000 shall be made to
develop the telecommunications
infrastructure between 2022-
2032. Additionally, it was decided
that an additional amount of USD
100,000,000 shall be paid over 10
years which to be funded by the
payment of at least 50% of the
annual net profit of CJSC BeST,
and in case the aforementioned
amount is not reached at the end
of 10 years, the remainder shall
be paid in lump sum by Turkcell
to the Republic of Belarus.
Communications
Belarus
Presidency has rearranged the
mobile communication intercon-
nection fees by taking into ac-
count the Investment Agreement,
and determined a mobile call
termination fee of 0,001 BYR for
CJSC BeST for 5 years.
The Newly Established Companies of
Turkcell Dijital Sigorta A.S. and Dijital
Egitim Teknolojileri A.S.
The
incorporation procedures of
Turkcell Dijital Sigorta A.Ş., which is fully
owned by Turkcell Finansman A.Ş. and
whose initial capital is TRY 1,000,000
have been completed and the compa-
ny was registered with the trade regis-
try on 21.06.2022 to provide innovative
insurance solutions that are focused
on digital experience and data, and
to carry out business in other areas al-
lowed by the legislation. On 12.10.2022,
the capital of the company was in-
creased to TRY 175,000,000.
The incorporation procedures of Dijital
Eğitim Teknolojileri A.Ş., whose
ini-
tial capital is TRY 100,000, 51% shares
of which is owned by our subsidiary
Turkcell Dijital İş Servisleri A.Ş. and 49%
shares of which is owned by Şahinkaya
Özel Eğitim Kurumları A.Ş. have been
completed and the company was
registered with the trade registry on
11.03.2022 to produce all kinds of train-
ing and communication solutions suit-
able for computers, internet and next
generation technologies for education
and training purposes, and to design
mobile applications, electronic and hy-
brid mailing systems. On 18.10.2022, the
capital of the company was increased
to TRY 10,100,000.
Transfer of Turkcell Europe GmbH
Shares and Change of Title
All shares of Turkcell Europe GmbH,
of which headquarters is located in
Germany, and which was fully owned
by our subsidiary Lifecell Ventures
the
Coöperatief U.A.
Netherlands, have been transferred
to another subsidiary, Turkcell Ödeme
ve Elektronik Para Hizmetleri A.Ş., on
10.10.2022.
located
in
In addition, an application for change
of title and address of Turkcell Europe
GmbH has been submitted, and the ti-
tle of the company has been changed
to Paycell Europe GmbH following the
approval dated 03.01.2023.
242 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 243
Consolidated
Financial Statement
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION AS AT 31 DECEMBER 2022
This report is 122 pages.
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
CONTENT
PAGE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........................................................... 1-3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS ....................................................................... 4
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME ..................................... 5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY................................................................ 6
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................... 7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.. ............................................... 8-122
NOTE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
ORGANIZATION AND OPERATIONS OF THE COMPANY .............................................................. 8
BASIS OF PRESANTATION OF FINANCIAL STATEMENTS .......................................................... 16
BUSINESS COMBINATIONS ............................................................................................................... 51
SEGMENTAL REPORTING .................................................................................................................. 52
CASH AND CASH EQUIVALENTS ..................................................................................................... 56
TRADE RECEIVABLES AND PAYABLES ......................................................................................... 56
RECEIVABLES FROM FINANCE SECTOR OPERATIONS .............................................................. 58
OTHER RECEIVABLES AND PAYABLES ......................................................................................... 59
ASSETS ARISING FROM CUSTOMER CONTRACTS ...................................................................... 60
INVENTORIES ....................................................................................................................................... 60
PREPAID EXPENSES AND DEFERRED REVENUE ......................................................................... 60
INVESTMENTS VALUED BY EQUITY METHOD ............................................................................ 61
INVESTMENT PROPERTIES ............................................................................................................... 61
PROPERTY, PLANT AND EQUIPMENT ............................................................................................. 64
INTANGIBLE ASSETS .......................................................................................................................... 66
RIGHT-OF-USE ASSETS ...................................................................................................................... 69
GOODWILL ............................................................................................................................................ 70
IMPAIRMENT OF ASSETS ................................................................................................................... 70
BORROWING COSTS ........................................................................................................................... 70
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES .............................................................. 71
COMMITMENTS ................................................................................................................................... 78
EMPLOYEE BENEFITS ........................................................................................................................ 79
LIABILITIES ARISING FROM CUSTOMER CONTRACTS .............................................................. 81
EXPENSES BY NATURE ...................................................................................................................... 81
OTHER ASSETS AND LIABILITIES ................................................................................................... 82
PAID-IN CAPITAL, LEGAL RESERVES VE OTHER EQUITY ITEMS ............................................ 83
REVENUE AND COST OF REVENUE ................................................................................................ 85
GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES ......................................... 87
OTHER OPERATING INCOME / EXPENSES ..................................................................................... 88
INVESTMENT INCOME ....................................................................................................................... 89
FINANCIAL INCOME AND EXPENSES ............................................................................................. 89
INCOME TAXES .................................................................................................................................... 90
EARNINGS PER SHARE ....................................................................................................................... 95
FINANCIAL INVESTMENTS ............................................................................................................... 95
DERIVATIVE INSTRUMENTS ............................................................................................................ 98
BORROWINGS .................................................................................................................................... 106
RELATED PARTY DISCLOSURES ................................................................................................... 109
NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS ..................... 113
SUPPLEMANTARY CASH FLOW INFORMATION ........................................................................ 121
FEES FOR SERVICES RECEIVED FROM INDEPENDENT AUDIT FIRM .................................... 122
OTHER MATTERS MATERIALITY AFFECTING THE CONSOLIDATED FINANCIAL
STATEMENTS ..................................................................................................................................... 122
SUBSEQUENT EVENTS ..................................................................................................................... 122
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
ASSETS
Current Assets
Cash and cash equivalents
Balances with the Central Bank of the Republic Turkey
Financial investments
-Time deposits
-Fair value through profit or loss financial assets
-Fair value through other comprehensive income financial assets
Trade receivables
-Trade receivables from related parties
-Trade receivables from non-related parties
Receivables from finance sector operations
-Non-related party receivables from finance sector operations
Other receivables
-Other receivables from non-related parties
Assets arising from customer contracts
-Assets arising from goods and service sales contracts
Derivative instruments
Inventories
Prepaid expenses
-Prepaid expenses to related parties
-Prepaid expenses to non-related parties
Assets related to current tax
Other current assets
-Other current assets from non-related parties
TOTAL CURRENT ASSETS
Non-Current Assets
Financial investments
-Fair value through profit or loss financial assets
-Fair value through other comprehensive income financial assets
Investments valued by equity method
Trade receivables
-Trade receivables from non-related parties
Receivables from finance sector operations
-Non-related party receivables from finance sector operations
Other receivables
-Other receivables from non-related parties
Assets arising from customer contracts
-Assets arising from goods and service sales contracts
Investment properties
Property, plant and equipment
-Plant, machinery and devices
-Other tangible assets
Intangible assets
-Licenses
-Computer softwares
-Other intangible assets
-Goodwill
Right-of-use assets
Prepaid expenses
-Prepaid expenses to related parties
-Prepaid expenses to non-related parties
Deferred tax assets
Other non-current assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
Notes
31 December 2022
31 December 2021
Audited
5
34
34
6
7
8
9
35
10
11
25
34
34
12
6
7
8
9
13
14
15
17
16
11
32
25,960,674
162,593
4,783,562
748,665
4,034,897
-
6,741,511
76,449
6,665,062
3,276,788
3,276,788
145,589
145,589
1,888,942
1,888,942
2,032,416
277,670
478,781
10,475
468,306
446,892
611,232
611,232
46,806,650
2,109,457
258,627
1,850,830
1,122,943
298,759
298,759
285,138
285,138
375,694
375,694
67,054
67,054
11,599
21,904,044
18,289,041
3,615,003
17,742,007
4,624,517
8,038,431
5,030,638
48,421
3,062,298
2,423,822
178
2,423,644
4,991,224
64,116
54,458,155
101,264,805
18,628,665
-
55,330
4,164
-
51,166
4,332,024
175,170
4,156,854
2,014,626
2,014,626
331,333
331,333
1,180,236
1,180,236
2,131,070
260,535
271,595
6,965
264,630
196,019
110,173
110,173
29,511,606
1,376,645
-
1,376,645
678,584
256,442
256,442
137,559
137,559
162,980
162,980
67,505
67,505
16,588
18,002,779
15,510,759
2,492,020
14,661,779
5,289,996
5,429,486
3,893,876
48,421
2,983,648
1,009,586
347
1,009,239
1,799,612
17,330
41,171,037
70,682,643
246 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
The accompanying notes form an integral part of these consolidated financial statements.
Translated into English from the report originally issued in Turkish
1
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 247
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
EQUITY
Equity attributable to owners of the parent
Paid in capital
Treasury shares (-)
Share premiums
Additional capital contributions of shareholders
Accumulated other comprehensive loss
that will not be reclassified in profit or loss (-)
-Defined benefit plans remeasurement loss (-)
Accumulated other comprehensive loss
that will be reclassified in profit or loss (-)
-Currency translation reserve
-Hedging reserve
-Gain (loss) from cash flow hedges
-Loss from net investment hedge on the company
operating abroad (-)
-Changes in the time value of options
-Loss from fair value through other comprehensive income
financial assets (-)
Legal reserves
Prior years’ profit
Net profit for the period
Non-controlling Interests
TOTAL EQUITY
TOTAL LIABILITIES
Audited
Notes
31 December 2022
26
26
26
35
26
26
30,891,061
2,200,000
(118,399)
269
-
(985,578)
(985,578)
(1,882,081)
1,876,409
(2,383,736)
270,905
(2,654,641)
(1,292,251)
(82,503)
3,948,937
16,674,720
11,053,193
3,990
30,895,051
101,264,805
31 December 2021
22,562,025
2,200,000
(128,057)
269
35,026
(225,892)
(225,892)
(1,165,727)
2,036,379
(1,595,923)
(9,746)
(1,586,177)
(1,555,773)
(50,410)
3,612,388
13,202,920
5,031,098
247
22,562,272
70,682,643
LIABILITIES
Short-term Liabilities
Short-term borrowings
Short-term borrowings from related parties
-Bank loans
-Lease obligations
-Issued debt instruments
Short-term borrowings from non-related parties
-Bank loans
-Lease obligations
-Issued debt instruments
Short-term portion of long-term borrowings from non-
related parties
-Bank loans
-Issued debt instruments
Trade payables
-Trade payables to related parties
-Trade payables to non-related parties
Payables related to employee benefits
Other payables
-Other payables to related parties
-Other payables to non-related parties
Liabilities arising from customer contracts
-Liabilities arising from goods and service sales contracts
Derivative instruments
Deferred revenue
-Deferred revenue from related parties
-Deferred revenue from non-related parties
Current tax liability
Short-term provisions
-Short-term provisions related to employee benefits
-Other short-term provisions
Other short-term liabilities
TOTAL SHORT-TERM LIABILITIES
Long-term Liabilities
Long-term borrowings
Long-term borrowings from related parties
-Bank loans
-Lease obligations
-Issued debt instruments
Long-term borrowings from non-related parties
-Bank loans
-Lease obligations
-Issued debt instruments
Trade payables
-Trade payables to related parties
-Trade payables to non-related parties
Liabilities arising from customer contracts
-Liabilities arising from goods and service sales contracts
Deferred revenue
-Deferred revenue from related parties
-Deferred revenue from non-related parties
Long-term provisions
-Long-term provisions related to employee benefits
-Other long-term provisions
Deferred tax liabilities
Other long-term liabilities
TOTAL LONG-TERM LIABILITIES
TOTAL LIABILITIES
Notes
31 December 2022
31 December 2021
Audited
36
37
36
6
22
8
23
35
11
32
20
20
36
37
23
22
20
32
25
10,758,843
3,190,039
2,791,256
41,286
357,497
7,568,804
5,969,598
831,991
767,215
5,962,404
4,955,284
1,007,120
7,821,670
240,385
7,581,285
354,375
2,392,209
925
2,391,284
706,046
706,046
150,923
113,402
13,628
99,774
243,485
753,933
722,063
31,870
1,474
29,258,764
4,762,578
907,138
762,613
42,587
101,938
3,855,440
3,004,972
850,468
-
4,085,835
3,340,237
745,598
5,037,635
61,110
4,976,525
140,630
1,606,940
4,046
1,602,894
459,289
459,289
71,325
111,136
18,102
93,034
241,686
573,662
506,641
67,021
630
17,091,346
37,133,103
84,095
-
84,095
-
37,049,008
17,945,061
2,097,859
17,006,088
35,258
938
34,320
261,328
261,328
6,095
-
6,095
2,758,758
1,790,031
968,727
249,835
666,613
41,110,990
70,369,754
27,929,720
54,749
-
54,749
-
27,874,971
13,356,013
1,958,061
12,560,897
-
-
-
170,445
170,445
5,838
1,139
4,699
1,230,410
614,613
615,797
928,554
764,058
31,029,025
48,120,371
The accompanying notes form an integral part of these consolidated financial statements.
Translated into English from the report originally issued in Turkish
2
248 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
The accompanying notes form an integral part of these consolidated financial statements.
Translated into English from the report originally issued in Turkish
3
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 249
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
Notes
31 December 2022
31 December 2021
Audited
PROFIT OR LOSS SECTION
Revenue
Revenue from finance sector operations
TOTAL REVENUE
Cost of revenue (-)
Cost of revenue from finance sector operations (-)
TOTAL COST OF REVENUE
Gross profit from business operations
Gross profit from finance sector operations
GROSS PROFIT
General administrative expenses (-)
Marketing expenses (-)
Other operating income
Other operating expenses (-)
OPERATING PROFIT
Investment income
Impairment losses determined in accordance
with TFRS 9 (-)
Share on (loss)/profit of investments valued
by equity method
PROFIT BEFORE FINANCIAL INCOME (EXPENSES)
Financial income
Financial expenses (-)
PROFIT FROM CONTINUING OPERATIONS
BEFORE TAXATION
Tax income from continuing operations
Tax expense for the period (-)
Deferred tax income for the period
PROFIT FOR THE PERIOD FROM CONTINUING
OPERATIONS
Distribution of profit for the period
Non-controlling interests
Owners of the parent
Earnings per share (TL)
Earnings per share from continuing operations
27
27
27
27
28
28
29
29
30
31
31
32
32
33
52,169,979
1,708,508
53,878,487
(36,148,784)
(639,858)
34,906,646
1,013,896
35,920,542
(24,940,126)
(289,848)
(25,229,974)
(36,788,642)
16,021,195
1,068,650
17,089,845
(1,519,021)
(2,700,077)
7,561,993
(761,126)
19,671,614
1,779,890
(354,918)
9,966,520
724,048
10,690,568
(919,023)
(1,778,483)
7,077,695
(668,076)
14,402,681
464,116
(271,162)
(71,416)
21,025,170
210,775
(13,699,811)
90,090
14,685,725
3,051,082
(13,195,713)
7,536,134
4,541,094
3,516,100
(530,581)
4,046,681
490,184
(681,513)
1,171,697
11,052,234
5,031,278
(959)
11,053,193
180
5,031,098
5.06
5.06
2.30
2.30
PROFIT FOR THE PERIOD
Other comprehensive income/(loss)
Items that will not be reclassified to profit or loss
Defined benefit plans remeasurement loss (-)
Tax effect of defined benefit plans remeasurement loss
Items that will be reclassified to profit or loss
Currency translation differences related to
translation of companies operating abroad
-Gain from currency translation differences related to
translation of companies operating abroad
Loss from fair value through other
comprehensive income financial assets (-)
Gain from cash flow hedges
Reclassification adjustments for cash flow hedge
Gain/(loss) from changes in the
time value of options
Reclassification adjustments for changes
in the time value of options
Loss from net investment hedge
on the company operating abroad (-)
Taxes based on other comprehensive income that
will be reclassified to profit or loss
-Tax effect of currency translation differences related to
translation of companies operating abroad
-Tax effect of loss from fair value through other
comprehensive income financial assets
-Tax effect of gain/(loss) from
cash flow hedges
-Tax effect of gain/(loss) from changes
in the time value of options
-Tax effect of loss from net investment
hedge on the company operating abroad
Notes
31 December 2022
31 December 2021
Audited
11,052,234
5,031,278
22
32
34
35
35
32
34
35
(759,582)
(950,686)
191,104
(131,312)
(163,588)
32,276
(716,354)
(556,702)
378,459
378,459
(40,116)
439,706
(74,818)
2,410,295
2,410,295
(65,494)
1,909,730
(1,712,519)
316,048
(1,266,102)
13,355
81,028
(1,335,580)
(1,558,374)
(413,408)
(355,266)
(538,429)
(861,143)
8,023
(84,237)
(65,881)
267,116
13,099
(55,912)
237,015
311,675
OTHER COMPREHENSIVE LOSS (-)
(1,475,936)
(688,014)
TOTAL COMPREHENSIVE INCOME
Distribution of total comprehensive income for the period
Non-controlling interests
Owners of the parent
9,576,298
9,576,298
(959)
9,577,257
4,343,264
4,343,264
76
4,343,188
250 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
The accompanying notes form an integral part of these consolidated financial statements.
Translated into English from the report originally issued in Turkish
4
The accompanying notes form an integral part of these consolidated financial statements.
Translated into English from the report originally issued in Turkish
5
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 251
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
Accumulated
other
comprehensive
loss that will
not be
reclassified in
profit or loss
Paid in
capital
Treasury
shares
(-)
Share
premiums
Additional
capital
contributions
of
shareholders
Defined benefit
plans
remeasurement
(loss)
Accumulated other comprehensive loss that will be reclassified in profit or loss
Gains/(losses)
from fair
value through
other
comprehensive
income
financial
assets
Loss from
net
investment
hedge on
the
company
operating
abroad
Gains/
(losses)
from
cash flow
hedges
Changes
in the
time
value of
options
Currency
translation
reserve
Retained
Earnings
Legal
reserves
Prior
years’
profit
Net profit
for the
period
Equity
attributable
to owners of
the parent
Non-
controlling
interests
Equity
2,200,000
-
(147,914)
-
269
-
35,026
-
(94,684)
-
1,985
-
(339,478)
-
(151,045)
-
(607,714)
-
487,227
-
3,009,025
603,363
12,154,984
3,633,723
4,237,086
(4,237,086)
20,784,767
-
171
-
20,784,938
-
-
-
-
-
-
-
-
19,857
-
-
-
-
-
-
-
-
2,200,000
(128,057)
269
35,026
2,200,000
(128,057)
269
35,026
(131,208)
(52,395)
(1,246,699)
141,299
(948,059)
1,549,152
-
-
-
-
-
-
(131,208)
(52,395)
(1,246,699)
141,299
(948,059)
1,549,152
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,585,787)
5,031,098
4,343,188
76
4,343,264
5,031,098
5,031,098
180
5,031,278
-
-
(687,910)
(104)
(688,014)
(2,565,930)
-
(2,565,930)
(225,892)
(50,410)
(1,586,177)
(9,746)
(225,892)
(50,410)
(1,586,177)
(9,746)
(1,555,773)
2,036,379 3,612,388
13,202,920
5,031,098
22,562,025
247
22,562,272
(1,555,773)
2,036,379 3,612,388
13,202,920
5,031,098
22,562,025
247
22,562,272
-
-
-
-
-
-
-
-
2,200,000
-
-
-
-
-
-
-
9,658
-
-
-
-
-
-
-
-
(35,026)
(118,399)
269
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(759,582)
(32,093)
(1,068,464)
280,651
263,522
(159,970)
-
-
-
-
-
-
(759,582)
(32,093)
(1,068,464)
280,651
263,522
(159,970)
-
-
-
-
(104)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(985,578)
(82,503)
(2,654,641)
270,905
(1,292,251)
1,876,409
-
-
-
-
-
-
-
3,948,937
336,549
4,694,549
(5,031,098)
-
-
-
11,053,193
9,577,257
(959)
9,576,298
11,053,193
11,053,193
(959)
11,052,234
-
-
-
35,026
-
-
(1,257,775)
-
-
-
(1,475,936)
-
-
-
-
(1,475,936)
-
4,949
4,949
-
-
(1,248,117)
(104)
(247)
(351)
-
(1,248,117)
16,674,720
11,053,193
30,891,061
3,990
30,895,051
Audited
Balance at 1 January
2021
Transfers
Total comprehensive
income
Net profit for the
period
Other comprehensive
income/(loss)
Dividends (Note 26)
Balance at 31
December 2021
Balance at 1 January
2022
Transfers
Total comprehensive
income
Net profit for the
period
Other comprehensive
income/(loss)
A change in the
ownership interest of a
subsidiary without a
loss of control
Acquisition of
subsidiary (Note 1)
Other changes
Dividends (Note 26)
Balance at 31
December 2022
The accompanying notes form an integral part of these consolidated financial statements.
Translated into English from the report originally issued in Turkish
6
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
Notes
31 December 2022
31 December 2021
Audited
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the Period
Profit for the period from continuing operations
Adjustments Related to Reconciliation of Net Profit for the Period
Adjustments for depreciation and amortization
Adjustments for impairment
Adjustments for provisions
Adjustments for interest expenses
Other adjustments related to (profit)/loss reconciliation
Adjustments for fair value loss/(gain) from derivative instruments
Adjustments for tax income
Adjustments for (gain) arising from the disposal of fixed assets
Adjustments for fair value (gain) from financial assets
Adjustments for retained loss/(gain) of investments valued by equity method
Adjustments for unrealized foreign currency translation differences
Changes in Working Capital:
Adjustments for (increase) in trade receivables
Adjustments for (increase) in inventories
(Increase) in Central Bank of the Republic of Turkey account
(Increase) in receivables from finance sector operations
(Increase) in other assets related to operations
Adjustments for decrease in other receivables
Adjustments for (increase) in assets arising from customer contracts
Adjustments for (decrease) in trade payables
(Increase) in prepaid expenses
Adjustments for increase in liabilities arising from customer contracts
Deferred revenue increase/(decrease)
Adjustments for increase in other payables
(Decrease) in other liabilities related to operations
Cash Generated by Operating Activities
Interest paid
Tax paid
Interest received
B. CASH FLOWS FROM INVESTING ACTIVITIES
Cash outflows due to acquisition of property, plant and equipment
Cash outflows due to acquisition of intangible assets
Cash inflows from disposal of property, plant and equipments and intangible
assets
Cash outflows due to acquisitions to obtain control of subsidiaries
Cash outflows due to additional share acquisition or capital increase of associates
and/or joint ventures
Cash inflows from sale of shares in other entities or shares in funds or borrowing
instruments
Cash outflows due to acquisition of shares in other entities or shares in funds or
borrowing instruments
Other cash (outflows)/inflows
Change in other cash advances given
C. CASH FLOWS FROM FINANCING ACTIVITIES
Cash inflows from loans
Cash inflows from issued debt instruments
Cash outflows due to loan repayments
Dividends paid
Cash outflows due to issued debt instruments repayments
Cash outflows due to payments of lease obligations
Cash inflows from derivative instruments
Cash outflows due to derivative instruments
CHANGE IN CASH AND CASH EQUIVALENTS BEFORE
CURRENCY TRANSLATION RESERVE EFFECT (A+B+C)
D. CURRENCY TRANSLATION RESERVE EFFECT ON
CASH AND CASH EQUIVALENTS
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
(A+B+C+D+E)
13-14-15-16
14-15
35
32
6
10
7
25
8
6
11
11
8
25
14
15
3
39
39
39
5
5
25,151,859
11,052,234
11,052,234
19,031,897
9,289,357
188,655
1,506,510
1,662,617
83,866
418,528
(3,516,100)
(114,247)
(863,852)
71,416
10,305,147
(3,193,029)
(2,576,956)
(17,135)
(162,593)
(1,439,282)
(564,104)
10,700
(709,360)
2,095,537
(268,247)
337,640
2,523
999,014
(900,766)
26,891,102
(3,087,234)
(779,655)
2,127,646
(19,647,765)
(7,216,300)
(6,869,302)
244,487
21,171,108
5,031,278
5,031,278
19,446,607
7,252,075
39,838
1,247,427
739,943
(23,281)
(2,401,053)
(490,184)
(109,489)
-
(90,090)
13,281,421
(1,944,725)
(998,377)
(56,820)
-
(200,765)
(32,024)
16,703
(148,573)
11,333
(71,359)
149,900
(22,127)
438,011
(1,030,627)
22,533,160
(1,822,815)
(763,103)
1,223,866
(10,361,547)
(5,568,300)
(4,014,234)
190,153
-
(86,703)
(515,775)
1,023,116
(1,023,124)
(3,937,538)
(1,353,329)
1,760,024
27,656,215
2,327,594
(23,239,784)
(1,248,117)
(1,855,088)
(2,243,432)
3,102,658
(2,740,022)
7,264,118
56,067
7,320,185
18,619,881
25,940,066
(484,568)
693,322
(1,035,421)
238,395
(294,191)
(3,942,240)
13,033,337
192,157
(12,496,149)
(2,565,930)
(142,157)
(1,649,046)
1,403,609
(1,718,061)
6,867,321
(107,995)
6,759,326
11,860,555
18,619,881
252 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
7
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 253
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
1
ORGANIZATION AND OPERATIONS OF THE COMPANY
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
Turkcell İletişim Hizmetleri Anonim Şirketi (“Turkcell - Parent Company”) was established on 5 October 1993
in İstanbul and started its activities in 1994. Turkcell's commercial address is registered as Aydınevler
Mahallesi İnönü Caddesi No:20 Küçükyalı Ofispark Maltepe/İstanbul. The fields of activity of Turkcell
(“Company”) are the works and services envisaged in the GSM (“Global System for Mobile
Communications”) Pan European Mobile Telephone System tender signed with Republic of Turkey Ministry
of Transport and Infrastructure (“the Ministry”), and all kinds of telephones, telecommunication and similar
services are activities within the scope of authorization regarding IMT services and infrastructures provided
that it is not contrary to the law of Posta ve Telgraf Teşkilatı A.Ş. (“PTT”). As of 31 December 2022, Turkcell's
shares are quoted in Borsa İstanbul A.Ş. (“BIST”) and the New York Stock Exchange (“New York Stock
Exchange” - “NYSE”).
The company signed a revenue sharing agreement in 1993 with Türk Telekomünikasyon A.Ş. (“Türk
Telekom”) and has been made responsible for realizing a mobile phone system in GSM standards by covering
the investment cost within the framework of this agreement. Turkcell signed a license agreement with the
Ministry on 27 April 27, and in accordance with this agreement, it was entitled to obtain a 25-year GSM
operating license (“2G License”) for a license fee of 500,000 USD.
In the 3rd Generation tender made by the Information Technologies and Communication Authority (“BTK”)
for the issuance of four licenses for the authorization of 2000/UMTS services and infrastructures, the company
was entitled to receive the A type license, which includes the widest frequency band, in return for 358,000
Euros (excluding VAT). After the approvals regarding the 3rd Generation License (“3G License”) were
completed, the license fee was paid and the concession agreement was signed between Turkcell and BTK on
30 April 2009. The contract is valid for 20 years from the date of signing. Turkcell started to provide services
under the contract on 30 July 2009.
The Company was entitled to receive a total of 172.4 MHz frequency for a fee of 1,623,460 EUR (excluding
VAT), with the "Authorization Tender for IMT Services and Infrastructures", popularly known as ("4.5G
License"), held by BTK on 26 August 2015. The IMT Authorization period is until 30 April 2029, and
operators have started the provision of IMT services from 1 April 2016. 2x1.4 MHz wide packages in the
900MHz frequency band and 2 2x5 MHz wide packages in the 2100 MHz frequency band started to be used
as of 1 December 2015, and the remaining packages were started to be used as of 1 April 2016.
The Company pays 90% of 15% of monthly gross sales as treasury share and 10% of 15% of monthly gross
sales as universal service contribution to BTK every month. In addition, the Company pays annual
contributions in an amount equal to 0.35% of net revenue to the BTK’s expenses and 5% of net revenue to
BTK as a frequency fee (TRx).
As of 31 December 2022, TVF Bilgi Teknolojileri İletişim Hizmetleri Yatırım Sanayi ve Ticaret Anonim
Şirketi (“TVF BTIH”) and IMTIS Holdings S.a r l. (“IMTIS Holdings”)'s shares in the Company's capital and
voting rights are 26.2% and 19.8% respectively. 53.95% of the Company's shares are still publicly traded in
domestic and foreign capital markets (Note 26.1).
As of 31 December 2022, the main and ultimate shareholders of the Company are TVF BTIH and Türkiye
Varlık Fonu (“TVF”), respectively. TVF was established by the Law No. 6741, published in the Official
Gazette dated 26 August 2016.
15% of the total issued shares of Turkcell, owned by TVF BTIH, have been re-classified as a separate class of
Group A Shares (the “Group A Shares”);
(i) On Group A shares, to the shareholders;
(a) Election of five members of the Company's Board of Directors,
(b) In the election of the chairman of the General Assembly meeting, a voting privilege has been
created to give six votes for each Group A Share,
again, the privilege of nomination is envisaged on Group A Shares, allowing the shareholders to
nominate four candidates to be used in the election of five members of the Company's Board of
Directors,
(ii) 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 the Company’s shareholders, including the
appointment of the residual four members of the board of directors of the Company (including
independent ones);
(iii) 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;
(iv)
In order for the quorum for the meeting of the Board of Directors to be formed, the participation of at
least five members constituting the majority of the total number of members is required and a
decision can be taken with the affirmative votes of at least five members present at the meeting;
(v) As long as the privileges mentioned above are in effect, as regulated in Article 370 of the Turkish
Commercial Code (“TCC”), the unlimited power to represent and bind the Company shall be
exercised by two members of the Board of Directors, at least one of whom was elected by the holders
of Group A Shares through the use of the privileges mentioned above.
The Company’s board of directors consists of a total of nine non-executive members including three
independent members as of 31 December 2022.
254 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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8
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9
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 255
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
The shareholding structure of the Company as of 31 December 2022 is disclosed in Note 26.1.
As of 31 December 2022, the Company's investments to its subsidiaries, associates and joint ventures are as
follows:
Subsidiary Title
Turktell Bilişim Servisleri A.Ş.
(“Turktell”)
Superonline İletişim Hizmetleri A.Ş.
(“Turkcell Superonline”)
Turkcell Satış ve Dijital İş Servisleri Hizmetleri A.Ş.
(“Turkcell Satış”)
Turkcell Teknoloji Araştırma ve Geliştirme A.Ş.
(“Turkcell Teknoloji”)
Turkcell Gayrimenkul Hizmetleri A.S.
(“Turkcell Gayrimenkul”)
Turkcell Dijital İş Servisleri A.Ş
(“Turkcell Dijital”)
Turkcell Dijital Eğitim Teknolojileri A.Ş
(“Dijital Eğitim”) (1)
Atmosware Teknoloji Eğitim ve Danışmanlık A.Ş.
(“Atmosware Teknoloji”)
Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret
A.Ş.
(“Turkcell Enerji”)
Boyut Grup Enerji Elektrik Üretim ve İnşaat Sanayi ve
Ticaret A.Ş. (“Boyut Enerji”)
Turkcell Finansman A.Ş. (“Turkcell Finansman”)
Turkcell Sigorta Aracılık Hizmetleri A.Ş. (“Turkcell
Sigorta”)
Turkcell Dijital Sigorta A.Ş. (“Turkcell Dijital
Sigorta”) (2)
Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş.
(“Turkcell Ödeme”)
Lifecell Dijital Servisler ve Çözümler A.Ş
(“Lifecell Dijital Servisler”)
Lifecell Bulut Çözümleri A.Ş.
(“Lifecell Bulut”)
Lifecell TV Yayın ve İçerik Hizmetleri A.Ş.
(“Lifecell TV”)
Lifecell Müzik Yayın ve İletim A.Ş.
(“Lifecell Müzik”)
Kule Hizmet ve İşletmecilik A.Ş.
(“Global Tower”)
LLC UkrTower (“UkrTower”)
Beltower LLC (“Beltower”)
East Asian Consortium B.V.
(“Eastasia”)
Kıbrıs Mobile Telekomünikasyon Limited Şirketi
(“Kıbrıs Telekom”)
Lifecell Digital Limited Şirketi (“Lifecell Dijital”)
Country
Turkey
Business
Information technology, value added GSM
services and entertainment investments
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Telecommunications
Sales, delivery and digital sales services
Research and development
Property investments
Providing advanced product and solutions for
digitalization needs of institutions
Education technologies
Develop software products and services, training
software developers
Electricity energy trade and wholesale and retail
electricity sales
Renewable energy production
Consumer financing services
Insurance agency activities
Digital agency activities
Payment services and e-money
Development and providing of digital services
and products
Cloud solutions services and other services
Online radio, television and on-demand
streaming services
Radio, television and on-demand streaming
services
Telecommunications infrastructure business
Ukraine
Republic of Belarus
Telecommunications infrastructure business
Telecommunications infrastructure business
Netherlands
Telecommunications investments
Turkish Republic of
Northern Cyprus
Turkish Republic of
Northern Cyprus
Telecommunications
Telecommunications
Global Bilgi Pazarlama Danışmanlık ve Çağrı Servisi
Hizmetleri A.Ş. (“Turkcell Global Bilgi”)
Turkey
Customer relations and human resources
management
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
Country
Subsidiary Title (cont'd)
LLC Global Bilgi (“Global Ukrayna”)
Ukraine
Rehberlik Hizmetleri A.Ş. (“Rehberlik Hizmetleri”) Turkey
Lifecell Ventures Coöperatief U.A. (“Lifecell
Ventures”)
LLC lifecell (“lifecell”)
Ukraine
Netherlands
Paycell Limited Liability Company (“Paycell LLC”) Ukraine
Paycell Europe GmbH ("Paycell Europe") (3)
Yaani Digital BV (“Yaani”)
BiP Digital Communication Technologies B.V
(“BiP B.V.”)
BiP İletişim Teknolojileri ve Dijital Servisler A.Ş.
(“BiP A.Ş.”)
Beltel Telekomünikasyon Hizmetleri A.Ş. (“Beltel”) Turkey
CJSC Belarusian Telecommunications Network
(“BeST”) (4)
Turkey
Germany
Netherlands
Netherlands
Business
Customer relations management
Directory assistance
Telecommunications investments
Telecommunications
Consumer financing services, payment services and
e-money
Payment services and e-money
Internet search engine and browser services
Dijital services, sales of services and products
Dijital services, sales of services and products
Telecommunications investments
Republic of Belarus Telecommunications
Lifetech LLC (“Lifetech”)
Republic of Belarus
Information technology, programming and technical
support
Turkcell Yeni Teknolojiler Girişim Sermayesi
Yatırım Fonu (“Turkcell GSYF”) (5)
W3 Labs Yeni Teknolojiler A.Ş. ("W3")
Turkey
Turkey
Venture capital investment fund
Bilişim teknolojileri
Associate Title
Country
Business
Türkiye’nin Otomobili Girişim Grubu Sanayi ve
Ticaret A.Ş. (“TOGG”)
Turkey
Electric passenger car development, production and
trading activities
Joint Venture Title
Sofra Kurumsal ve Ödüllendirme Hizmetleri A. Ş.
(“Sofra”)
Country
Business
Turkey
Meal coupons and cards
(1) Dijital Eğitim has been incorparated respectivelty with the shareholding percentage 51% and 49% by Turkcell Dijital which is fully owned by the
Group and Şahinkaya Özel Eğitim Kurumları A.Ş. to offer education and communication solutions compatible with new generation technologies. Initial
capital is TL 100 and registration and announcement of the respective company was completed on 11 March 2022.
(2) Turkcell Dijital Sigorta, in which fully owned by Turkcell Finansman was established to offer insurance activitites based on digital and innovative
technologies and registration and announcement of the respective Company was completed on 21 June 2022.
(3) The title of Turkcell Europe GmbH which is fully owned by the Group has been changed to Paycell Europe GmbH.
(4) Share Transfer transactions regarding the purchase of 20% of BeST’s shares owned by the Republic of Belarus were completed on 9 December
2022.
(5) In accordance with business model of the Group, Turkcell GSYF has been established by on 28 March 2022 by RE-PIE Portföy Yönetimi A.Ş.(“RE-
PIE) to invest in initiatives that create synergies with the Group's strategic focus areas and also Turkcell contributes. Turkcell GSYF has been included
to the consolidated financial statements as of 30 September 2022 in accordance with the “TFRS 10 Consolidated Financial Statements”.
Turktell
Turktell was established to participate in companies that provide services such as information technology,
entertainment and value-added GSM services and to develop, sell and market these services.
256 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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10
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11
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 257
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
Turkcell Superonline
Turkcell Superonline was established to make and operate the necessary investments for telecommunication
services and to undertake the representation of domestic and foreign enterprises providing these services. In
addition, Turkcell Superonline provides international and national public voice transport, private international
leased data lines for corporations, internationally connected internet access services, and develops consumer
and corporate Internet service.
Turkcell Satış
Turkcell Satış operates in the fields of telecommunication and information technology products sales,
distribution, marketing and information technology services, system integration and digital business services.
Turkcell Teknoloji
Turkcell Teknoloji's field of activity is to develop, produce, mount, install, maintain and repair, operate, buy,
sell, rent, lease, and provide consultancy on all kinds of software and hardware systems in telecommunication,
communication, and informatics or for general purposes.
Turkcell Gayrimenkul
Turkcell Gayrimenkul buys, sells and rents any real estate on its behalf or on behalf of its customers; was
established to make all kinds of constructions on the real estate belonging to itself or others.
Turkcell Dijital
Turkcell Digital Business Services operates in the fields of selling, installing, operating, mounting, and after-
sales support, necessary training and operability of all kinds of digital products, services, services, and devices
to institutions.
Dijital Egitim
The establishment of Dijital Egitim, whose business subject is the provision of all kinds of education and
communication solutions suitable for computer, internet, and new-generation technologies for educational
purposes, was registered and announced on 11 March 2022.
Atmosware Teknoloji
Atmosware Teknoloji was established in 2021 to develop software products and services and to train software
developers.
Turkcell Enerji
Turkcell Enerji’s field of activity is electrical energy trade, wholesale and retail sales, and established on
February 20, 2017. Turkcell Enerji, wholly owned by Turktell, was granted an electricity supply license by
EMRA on 11 May 2017.
Boyut Enerji
Boyut Enerji’s main field of activity is the establishment, commissioning, and leasing of an electrical power
generation facility, electricity generation, and sales of the generated electrical energy and/or capacity to
customers (Note 3).
Turkcell Finansman
Turkcell Finansman was established to provide financing to its customers by providing loans for the purchase
of all kinds of goods and services, within the framework of the Financial Leasing, Factoring and Financing
Companies Law No. 6361, and other relevant legislation provisions and (“BRSA”) regulations. Turkcell
Finansman carries out its activities in Turkey through sales points with which it has signed a General Seller
Agreement, as well as internet and telesales channels.
Turkcell Sigorta
Turkcell Sigorta was established on 19 June 2018 operate insurance agency activities.
Turkcell Dijital Sigorta
Turkcell Dijital Sigorta was established to offer insurance activities based on digital and innovative
technologies.
Turkcell Ödeme
Turkcell Odeme was established on 13 June 2000 in Istanbul. Turkcell Payment is authorized to operate as a
"payment institution" and "electronic money institution", to provide services to mobile users with mobile
payment systems, to act as an intermediary for bill payments, an intermediary for money transfers, and
intermediation for card payments.
Lifecell Dijital Servisler
To buy, sell, import and export content to be presented in electronic environments and to act as an intermediary;
to sell the advertising spaces of digital services, to manage the advertising platform and to mediate the sales of
all advertising spaces in the Turkish advertising ecosystem; Providing services in the cloud playground; was
established in 2020 to operate in the field of development of all kinds of digital services and products.
Lifecell Bulut
Operating under the Lifebox brand, Lifecell Bulut was established in 2020 to provide services to operator-
independent users in the field of cloud computing, where photos, videos, documents, phone books and music
files can be safely stored, and to establish and operate the necessary technological infrastructure and systems
for this purpose. The lifebox transfer product, which offers free and membership-free file transfer within the
company, and the lifebox business product, which offers file storage, transfer and office features over the
cloud, are among the products offered to the field.
Lifecell TV
Operating under the TV+ brand, Lifecell TV was established in 2020 to transmit all kinds of audio and visual
content to operators-independent users in encrypted, unencrypted digital and/or analogue media. With different
subscription packages, the TV+ platform serves its subscribers on smart phones and tablets with iOS and
Android operating systems, web, smart TV, Apple TV, Android TV and many other devices. It is among its
activities to buy, sell, import, and export the content to be created for the purpose of providing all kinds of
audio and video services in the electronic environment and to mediate these transactions.
Lifecell Müzik
Serving under the Fizy brand, Lifecell Music was established in 2020 to provide on-demand audio and visual
broadcasting and transmission over the internet to operator-independent users.
258 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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12
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13
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 259
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
1 ORGANIZATION AND OPERATIONS OF THE COMPANY (cont’d)
Global Tower, Kule Ukrayna ve Beltower
Yaani
All of Yaani's shares were taken over on 14 May 2019, and the transfer of all assets of the company was
completed on 1 June 2020, with the contract signed with Ntent Inc. Yaani; has indefinite license and usage
rights for the Yaani search engine and joined the group to sell and disseminate the search engine to international
markets.
BiP B.V.
BiP B.V. was established on 7 September 2020 to market the BiP application developed by Turkcell to other
operators around the world as a product and service.
BiP A.Ş.
BiP A.S. offers instant, fast and secure messaging, audio and/or video calls and video conference services to
operator-independent users via applications on their smart phones or tablet terminals with internet connection.
Developing and collecting new services, services and products for consumers for situations where mobile
communication, internet or these two platforms are intertwined are among its activities.
Beltel
Beltel was established to make and operate telecommunications and advanced technology investments and to
participate in investments that provide these services.
BeST
BeST was established in Belarus to invest in and operate telecommunications and advanced technology.
Lifetech
Lifetech was established in Belarus to operate in the fields of programming and consulting.
.
Global Tower, Kule Ukrayna, and Beltower were established to operate the infrastructure by renting space in
the towers to the telecommunication and media sector, private and public institutions, and organizations.
Global Tower, Kule Ukrayna, and Beltower provide bundle services to its customers with all the necessary
permissions, renting the place and field, making the tower investment, providing medium and low voltage
energy and container infrastructure, and performing periodical maintenance (tower, fence, power line, access
road). In addition, Global Tower started to provide end-to-end closed-circuit satellite services to its customers
by purchasing a satellite communication service license from BTK in January 2018. In this context, satellite
communication service solutions are offered to mobile operators, corporate customers and public institutions.
Eastasia
Eastasia was established in the Netherlands to invest in and operate telecommunications and advanced
technology.
Kıbrıs Telekom
Kibris Telekom was established in TRNC to make and operate telecommunication and advanced technology
investments.
Lifecell digital
Lifecell digital was established in TRNC to provide Internet Service Provider service within Kibris Telecom.
Turkcell Global Bilgi ve Global Ukrayna
Turkcell Global Bilgi and Global Ukrayna serve as customer experience and human resources management
centers.
Rehberlik Hizmetleri
Rehberlik Hizmetleri was established to provide guidance and value-added services, and to establish and
operate infrastructure for these services.
Lifecell Ventures
Lifecell Ventures was established to offer applications developed by Turkcell to other operators around the
world as products and services, and it carries out marketing activities.
lifecell
lifecell was established in Ukraine to make and operate telecommunications and advanced technology
investments.
Paycell LLC
The company named "Paycell LLC", which was established in Ukraine by lifecell, whose capital is wholly
owned achieved the status of "financial company" on 21 September 2017. Paycell LLC has loan lending,
leasing licenses, and local money transfer licenses to provide its customers with credit device sales and digital
payment services via e-money.
Paycell Europe
Paycell Europe was established to continue the activities of Turkcell Odeme, which operates in the field of
digital payment and electronic money in Europe.
260 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 261
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.1 Basis of Presentation
(a)
Statement of Compliance
2.1 Basis of Presentation (cont’d)
(i)
Subsidiaries
The accompanying consolidated financial statements of the Company have been prepared in accordance with
Turkish Financial Reporting Standards (“TFRS”) promulgated by the Public Oversight Accounting and
Auditing Standards Authority (“POA”) that are set out in the 5th article of the communiqué numbered II-14.1
“Communiqué on the Principles of Financial Reporting In Capital Markets” (“the Communiqué”) announced
by the Capital Markets Board (“CMB”) on 13 June 2013 and published in Official Gazette numbered 28676.
The accompanying consolidated financial statements of the Company have been prepared in accordance with
the CMB's “Announcement on Financial Statement and Footnote Formats” dated 7 June 2013. The Company
has made the necessary adjustments and reclassifications in accordance with the formats specified in the “2022
TFRS Taxonomy” and “Financial Statement Examples and User Guide” published by the POA on 10 October
2022.
Among the equity items, paid-in capital, share premiums and legal reserves are presented over their amounts
in the accounting records.
The Company and its subsidiaries registered in Turkey prepare their accounting records and statutory financial
statements in Turkish Lira (“TL”) in accordance with the principles and conditions issued by the CMB, the
TCC, tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. Financial
statements are presented rounded to thousands of TL.
Subsidiaries operating in foreign countries prepare their statutory financial statements in accordance with the
laws and regulations in force in the countries in which they operate and in the currency valid in the main
economic environment (functional currency) in those countries.
The General Assembly is authorized to amend and approve the consolidated financial statements of the
Company. The consolidated financial statements of the Company are approved for publication by the Board
of Directors.
The consolidated financial statements of the Company for the period ending on 31 December 2022 were
approved for publication by the Company's Board of Directors on 9 March 2023.
(b) Preparation of financial statements
While preparing the consolidated financial statements, necessary adjustments and classifications have been
made to the amounts determined on the historical cost basis of assets and liabilities and derivative instruments,
which reported with their fair values, in order to make the correct presentation in accordance with TFRS. The
consolidated financial statements of the Company for the year ended 31 December 2022 consist of the
Company and its subsidiaries the Group's associates and joint venture (collectively referred to as the "Group").
(c) Offsetting
When the Group has a legal right to set off financial assets and liabilities and intends to settle those financial
assets and liabilities by netting, or to have the asset recognized and settle the liability at the same time, the
Group presents these financial assets and liabilities with their netted amounts in the statement of financial
position.
Consolidated financial statements include the financial statements of the companies controlled by the
Company and its subsidiaries. Control is provided by the Company and its subsidiaries by meeting the
following conditions:
•
•
•
power over the investee, i.e. the investor has existing rights that give it the ability to direct the relevant activities
(the activities that significantly affect the investee's returns),
exposure, or rights, to variable returns from its involvement with the investee,
the ability to use its power over the investee to affect the amount of the investor's returns.
In the event that a situation or event arises that may cause any change in at least one of the criteria listed above,
the company re-evaluates whether it has control over its investment.
The table below shows the total effective control ratios of all subsidiaries under the direct or indirect control
of the Company as of 31 December 2022 and 2021:
31 December 2022 31 December 2021
Turktell
Turkcell Superonline
Turkcell Satış
Turkcell Teknoloji
Turkcell Gayrimenkul
Turkcell Dijital
Dijital Eğitim
Atmosware Teknoloji
Turkcell Enerji
Boyut Enerji
Turkcell Finansman
Turkcell Sigorta
Dijital Sigorta
Turkcell Ödeme
Lifecell Dijital Servisler
Lifecell Bulut
Lifecell TV
Lifecell Müzik
Global Tower
UkrTower
Beltower
Eastasia
Kıbrıs Telekom
Lifecell Digital
(%)
100
100
100
100
100
100
51
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
100
100
100
100
100
100
100
100
100
262 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 263
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.1 Basis of Presentation (cont’d)
(d) Consolidation principles (cont’d)
(i)
Subsidiaries (cont’d)
2.1 Basis of Presentation (cont’d)
(d) Consolidation principles (cont’d)
(ii) Associates (cont’d)
Turkcell Global Bilgi
Global Ukrayna
Rehberlik Hizmetleri
Lifecell Ventures
lifecell
Paycell LLC
Turkcell Europe
Paycell Europe
Yaani
BiP B.V.
BiP A.Ş.
Beltel
BeST
Lifetech
Turkcell GSYF
31 December 2022 31 December 2021
(%)
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
-
Changes in ownership
Changes in the Company's shareholding in its subsidiaries that do not result in a loss of control are accounted
for as equity transactions. The book values of the Company's shares and non-controlling interests are adjusted
to reflect changes in subsidiary shares. The difference between the adjustment for non-controlling interests and
the fair value of the consideration received or paid is accounted for directly in equity as the Group's share. If
the Company loses control of a subsidiary, the profit/loss after sale is is calculated as the difference between
i) the sum of the sales price received and the fair value of the remaining interest and ii) the previous book
values of the subsidiary's assets (including goodwill) and liabilities and non-controlling interests. Amounts
previously recognized in equity through other comprehensive income related to the subsidiary are recorded
according to the accounting method to be used on the assumption that the Group has sold the related assets.
The fair value at the date of loss of control of the investment remaining after the sale of the subsidiary is
determined as the fair value in the initial recognition under TFRS 9 “Financial Instruments: Recognition and
Measurement” (“TFRS 9”) or, where applicable, the initial recognition cost of an investment in an entity
controlled as an associate or joint operations.
(ii) Associates
An associate is an entity over which the Group has significant influence. Significant effectiveness is the power
to participate in the decisions of an entity's financial and operational policies, without having sole or joint
control.
With the acquisition of shares of the associate, the portion of the purchase price above the fair value of the
identifiable assets, liabilities and contingent liabilities of the associate at the date of acquisition is considered
as goodwill.
Goodwill is included in the carrying amount of the investment and is reviewed for impairment as part of the
investment. The excess of the fair value of the identifiable assets, liabilities and contingent liabilities of the
associate at the date of acquisition is recognized directly in the profit or loss statement after reassessment.
Under the equity method, an investment in associate is initially recognized in the consolidated statement of
financial position at cost and adjusted thereafter to recognize the Company’s share of the change in the
subsidiary's net assets less any impairment. When the Group's share of losses of an associate exceeds the
Group's interest in that associate (which includes any long-term interests that, in substance, form part of the
Group's net investment in the associate), the Group discontinues recognizing its share of further losses. Any
additional losses are recognized if the Group is exposed to any legal or constructive obligation or the Group
has made payments on behalf of the associate.
Profits and losses resulting from the transactions between the Company and its subsidiaries and the Group's
associate are eliminated in proportion to the Group's share in the relevant associate.
TOGG, in which the Group currently has a share of 23%, was established on 28 June 2018 to develop, produce
and trade electric motor vehicles (31 December 2021: 23%). As of 31 December 2022 and 2021, TOGG
classified as investments valued by equity method in the consolidated financial statements.
(iii) Shares in joint ventures
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. Investments in joint ventures are accounted for using the equity
method from the moment the investee becomes a joint venture.
Sofra, in which the Group currently has a share of 33.3%, is a joint venture between Turkcell Ödeme, BELBİM
Elektronik Para ve Dağıtım Hizmetleri A.Ş. and PTT, in which all parties have equal share, was established
on 30 July 2018, in order to carry out operations such as service coupons, meal checks, meal cards, electronic
coupons and/or smart cards, transportation machines, smart keys. As of 31 December 2022 and 2021, Sofra
classified as investments valued by equity method in the consolidated financial statements.
(iv) Consolidation adjustments
The statements of financial position and profit or loss of the companies included in the consolidation are
consolidated using the full consolidation method, and the book values in the Company's assets and their shares
in the equity are mutually offset. The parts of the net assets of the subsidiaries corresponding to the shares
outside the direct and/or indirect control of the parent company are classified under the “Non-controlling
interests” item in the consolidated statement of financial position. Similarly, the parts of the net profits or
losses of the subsidiaries corresponding to the shares outside the direct and/or indirect control of the parent
company are classified under the “Non-controlling interests” item in the consolidated statement of profit or
loss. Intra-group transactions and balances between companies included in the consolidation are eliminated
during consolidation. Profits and losses resulting from transactions between associates and joint ventures and
the parent company and its subsidiaries subject to consolidation are netted off in proportion to the share of the
parent in the associate. However, the losses incurred as a result of these transactions have not been clarified if
they show that there has been an impairment in the value of the asset subject to the transaction.
264 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 265
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.1 Basis of Presentation (cont’d)
(d) Consolidation principles (cont’d)
(v) Business combinations under common control
Business combinations under common control are outside the scope of TFRS 3 “Business Combinations”
(“TFRS 3”). In accordance with the decision of the POA published in the Official Gazette on 17 October 2018,
assets and liabilities subject to a business combination under common control are included in the consolidated
financial statements with their carrying values. Statements of profit or loss are consolidated from the first
period in which comparative financial statements are presented and prior period financial statements are
restated. Goodwill or negative goodwill resulting from these transactions is not recognized in the consolidated
financial statements. The difference resulting from the offsetting of the amount of the participation amount
and the share in the capital of the acquired company is directly accounted for under the equity as an equity
transaction in the “Effect of Business Combinations Under Common Control” account.
e)
Adjustment of Financial Statements During High Inflation Periods
POA made an announcement on 20 January 2022 whether companies that apply TFRS will apply TAS 29
Financial Reporting in Hyperinflationary Economies in the 2021 financial reporting period. According to this
announcement, it is stated that companies that apply TFRS do not need to make any adjustments within the
scope of TAS 29 in their financial statements for the year 2021. As of the report date, no new statement has
been made by the POA regarding the scope and application of TAS 29. In this context, while preparing the
consolidated financial statements as of 31 December 2022, no inflation adjustments were made in accordance
with TAS 29.
2.2 Changes in Accounting Policies and Errors
Significant changes in accounting policies and significant accounting errors detected are applied
retrospectively and the prior period financial statements are restated. In order to comply with the presentation
of the current period consolidated financial statements, comparative information is reclassified when deemed
necessary and important differences are disclosed.
2.3 Changes in Accounting Estimates
If changes in accounting estimates are for only one period, changes are applied in the current year but if the
estimated changes affect the following periods, changes are applied both on the current and following periods
prospectively. In the current year, there are not any material changes in accounting estimate methods of the
Group.
2.4 Summary of Significant Accounting Policies
(a)
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs, including some of the fixed and
variable overheads, are valued according to the method appropriate to the class of inventories, and mostly
according to the weighted average cost method. Net realizable value represents the estimated selling price in
the ordinary course of business less all estimated costs of completion and costs necessary to make a sale.
When the net realizable value of inventories falls below its cost, the inventories are reduced to their net
realizable value and charged as an expense to the statement of profit or loss in the year in which the impairment
occurred.
In cases where it is proven that the conditions that previously caused inventories to be reduced to net realizable
value no longer apply or an increase in net realizable value due to changing economic conditions, the reserve
for impairment is reversed.
The reversed amount is limited to the previously allocated impairment amount. As of 31 December 2022 and
2021, inventories mainly consist of mobile phones, tablets, sim cards, mobile phone accessories, tower
construction materials and other electronic products.
(b) Property, Plant and Equipment
Property, plant and equipments are carried at cost less accumulated depreciation and any accumulated
impairment losses. Property, plant and equipments of the Company and its subsidiaries operating in Turkey
and subsidiaries operating in Belarus have been adjusted for the effects of inflation as of 31 December 2005
and 31 December 2014, respectively.
The cost of property, plant and equipments consists of purchase price, import taxes and non-refundable
purchase taxes, expenses incurred to tangible asset for use, and the interest exchange rate difference expenses
incurred on the loans used lto acquire the tangible asset, while the property is in the investment phase.
Changes in the obligation to dismantle the property, plant and equipment and to restore the site are added to
the cost of the property, plant and equipment in the period in which they occur. If the amount to be deducted
from the cost of the property, plant and equipment is greater than the book value of the property, plant and
equipment as of the date of the change, the difference is recorded in the statement of profit or loss in the
relevant period.
(i) Subsequent expenses
Expenses arising from replacing any part of property, plant and equipments, together with maintenance and
repair costs, can be capitalized if they increase the future economic benefit of the asset. All other expenses are
recognized in the statement of profit or loss on an accrual basis.
266 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 267
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(b) Property, Plant and Equipment (cont’d)
(ii) Depreciation
Depreciation of property, plant and equipment is calculated using the straight-line depreciation method on the
basis of the assets' ready-to-use dates over their useful lives. Leasehold improvements are depreciated over the
shorter of the lease term or useful life, using the straight-line method. The depreciation expenses calculated in
this way are recognized in the cost of revenue item in the consolidated statement of profit or loss. Lands are
not depreciated as their useful life is considered indefinite.
The useful lives used by the Group are as follows:
Mobile network infrastructure
Fixed network infrastructure
Call center equipment
Buildings
Equipment, fixtures and fittings
Motor vehicles
Electricity power plant
Leasehold improvements
4 - 20 years
3 - 25 years
4 - 8 years
21 - 25 years
2 - 10 years
4 - 6 years
20 years
3 - 5 years
Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of
each reporting period.
(iii) Disposal
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are
included in profit or loss and their costs and accumulated depreciation are written off from the relevant
accounts.
(c)
Intangible Assets
Intangible assets consist of GSM and other telecommunication business licenses, brand values, computer
software, transmission line software, electricity generation license, subscriber acquisition costs, indefeasible
rights and customer lists. Intangible assets are carried at cost less accumulated depreciation and any
accumulated impairment losses. Intangible assets of the Company and its subsidiaries operating in Turkey and
subsidiaries operating in Belarus have been adjusted for the effects of inflation as of 31 December 2005 and
31 December 2014, respectively.
2.4 Summary of Significant Accounting Policies (cont’d)
(c)
Intangible Assets (cont’d)
Purchased computer software and transmission line software are capitalized over the costs incurred during the
purchase and during the period from purchase until they are ready for use. Costs associated with maintaining
computer software are recognized in the statement of profit or loss in the period in which they are incurred.
Expenditures that are directly attributable to identifiable and unique software products controlled by the Group
and that will generate economic benefits in excess of costs for more than one year are recognized as intangible
assets. Costs include the costs of the employees developing the software and some of the manufacturing
overheads.
Internally generated intangible assets - research and development expenses
Internally generated intangible assets consist of computer software and are reported under computer softwares.
Research costs are recorded in the statement of profit or loss as the cost of sales in the period in which they are
incurred.
Internally generated intangible assets resulting from development activities (or the development phase of an
intra-Group project) are capitalized only when all of the following conditions are met:
it is technically possible to complete the intangible asset so that it is ready for use or ready for sale,
the intention to complete, use or sell the intangible asset,
•
•
• whether the intangible asset can be used or sold,
•
•
it is clear how the asset will generate potential future economic benefits,
there are appropriate technical, financial and other resources to complete the development of the
intangible asset to use or sell it; and
the development cost of the asset can be measured reliably during the development process.
•
The amount of intangible assets generated internally is the total amount of expenses incurred since the
intangible asset meets the above-mentioned recognition conditions. When internally generated intangible
assets do not meet the capitalization conditions, development expenses are recognized as expense in the period
in which they are incurred.
After initial recognition, internally generated intangible assets are carried at cost less accumulated depreciation
and any accumulated impairment losses, just like intangible assets purchased separately.
Indefeasible rights
Indefeasible rights are acquired rights to use part of an asset's capacity for a specified period of time. If the
Group has a predetermined capacity usage right on a certain asset for a period close to the useful life of that
asset; these indefeasible rights are reported under intangible assets. Indefeasible rights are amortized over the
shorter of the useful life of the asset or the contract period.
268 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 269
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(c)
(i)
Intangible Assets (cont’d)
Amortization
(d)
Investment Properties (cont’d)
Depreciation
Amortization of intangible assets is calculated using the straight-line amortization method on the basis of the
assets' ready-to-use dates over their useful lives. The amortization expenses calculated in this way are
recognized in the cost of revenue item in the consolidated statement of profit or loss.
Depreciation of investment properties is calculated using the straight-line depreciation method. The useful life
of investment properties is 25 - 45 years.
(e)
Impairment of Assets
The useful lives used by the Group are as follows:
GSM and other telecommunications licenses
Indefeasible rights
Transmission line softwares
Computer softwares
Brand name
Customer base
Subscriber acquisition costs
Electricity production license
3 - 25 years
15 years
5 - 10 years
3 - 8 years
9 - 10 years
2 - 15 years
2 - 6 years
20 years
Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of
each reporting period.
The Company obtained the 2G, 3G and 4.5G Licenses with the Concession Agreements signed on 27 April
1998, 30 July 2009 and 26 August 2015, respectively. The terms of use of the relevant licenses are 25, 20 and
13 years.
(ii) Disposal
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are
included in profit or loss and their costs and accumulated depreciation are written off from the relevant
accounts.
(d)
Investment Properties
Investment properties are properties held for the purpose of earning rent and/or capital appreciation and are
carried at cost less accumulated depreciation and any accumulated impairment losses. If it meets the accepted
criteria, the cost of replacing any part of the existing investment property is included in the amount in the
statement of financial position. This amount does not include daily maintenance to investment properties.
Investment properties are derecognised if they are sold or become unusable or it is determined that no future
economic benefit will be obtained from the sale. Profit/loss arising from the expiry of the investment property
or its sale is recognized in the statement of profit or loss in the period in which they occur.
Transfers are made when there is a change in the use of investment property. For a transfer from investment
property to owner-occupied property, the estimated cost of post-transfer recognition is the carrying amount of
the property at the date of the change in use. If an owner-occupied property converts to an investment property,
the entity applies the accounting policy applied to property, plant and equipment until the change in use occurs.
The Group assesses whether there is any indication that an asset is impaired at the relevant reporting date. If
such an indication exists, the recoverable amount of that asset is estimated and tested for impairment. Goodwill
and intangible assets that have an indefinite useful life or are not yet in use are tested for impairment annually,
regardless of whether there is any indication of impairment. The recoverable amount is determined by choosing
the higher of the asset's value in use and its fair value less costs to sell. 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 expected future cash flows from an asset or
cash-generating unit.
If the carrying value of the asset or any cash generating unit of that asset is higher than the amount to be
recovered through use or sale, an impairment has occurred. For impairment testing, assets are divided into the
smallest units that generate cash inflows from continued use (“cash generating unit”) independently of other
assets and asset groups.
Goodwill arising in a business combination is allocated to cash-generating units that are expected to benefit
from the synergies of the combination for impairment testing. The impairment resulting from the cash-
generating units is first deducted from the carrying amounts of the goodwill allocated to the units, and then
from the carrying amounts of the other assets in the units. Impairment losses are recognized in the consolidated
statement of profit or loss.
It is not always necessary to determine both the asset's fair value less costs to sell and its value in use. If any
of these amounts exceeds the carrying amount of the asset, the asset is not impaired and it is not necessary to
estimate the other amount.
An impairment loss on a receivable is reversed if the subsequent increase in the recoverable amount of that
asset can be attributed to an event that occurs in the periods following the recognition of the impairment. The
impairment loss in assets other than goodwill is reversed if there is a change in the estimates used in
determining the recoverable amount.
The increase in the carrying value of the asset due to the reversal of the impairment loss should not exceed the
carrying amount (net amount after depreciation) that would have been determined if no impairment loss had
been recognized in the financial statements in previous years.
270 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 271
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(f)
Financial Instruments
Financial assets - classification and subsequent measurement - measurement categories:
According to TFRS 9 Financial Instruments, the classification and measurement of financial assets is
determined according to the business model in which the financial asset is managed and whether it depends on
the contractual cash flows that include only the principal and interest payments on the principal balance.
TFRS 9 includes three main categories of classification for financial assets: amortized cost (“AC”), fair value
through other comprehensive income (“FVTOCI”) and fair value through profit or loss (“FVTPL”). The Group
classifies its financial assets on the date of acquisition.
Financial assets - Reclassification:
Financial instruments are reclassified only when the business model for portfolio management is completely
changed. The reclassification has a prospective effect and takes place from the beginning of the first reporting
period following the business model change. The Group did not change its business model and did not make
any reclassification in the current period and the comparison period.
Impairment of financial assets - Credit loss provision for expected credit losses:
TFRS 9 replaces the "incurred loss" model in TAS 39 with the prospective "expected credit loss" (“ECL”)
model. In this context, an important evaluation was needed on how the economic factors, which will be
determined by weighting according to their realization probabilities, affect the ECLs.
The new impairment model is applied to financial assets measured at amortized cost or FVTOCI (excluding
investments in equity instruments) and contract assets.
In accordance with TFRS 9, loss provisions are measured on the following basis;
-
12 month ECLs: these are ECLs that result from possible default events within the 12 months after the
reporting date and
2.4 Summary of Significant Accounting Policies (cont’d)
(f)
Financial Instruments (cont’d)
Financial assets and liabilities – derecognition:
The Group derecognises the financial asset when its contractual rights to cash flows from the financial asset
expire or transfer the related financial asset and all the risks and rewards of ownership of that asset to another
party. In cases where all the risks and rewards of ownership of the asset are not transferred to another party
and control of the asset is retained by the Group, the Group continues to recognize its remaining interest in the
asset and the liabilities arising from that asset. In the event that the Group retains all the risks and rewards of
ownership of a transferred asset, the financial asset continues to be recognized and a collateralized liability
amount is also recognized for the income earned against the transferred financial asset. The Group
derecognises financial liabilities only if the contractual obligation ceases, cancels or expires.
Fair valuation principles
Financial assets and liabilities are carried at fair values without taking into consideration the periods following
their retention, the operating costs in the event of a sale or similar disposal. However, if there is no quoted
market price in an active market, it is found using fair value pricing models or discounted cash flow
consumption.
When discounted cash flow techniques are used, estimated cash flows are based on Group Management's best
estimates and the discount rate used is based on the market rate applicable to an instrument with similar
maturities and conditions at the reporting date. In pricing models, market data valid at the reporting date is
used as a measure.
Cash and Cash Equivalents
Cash and cash equivalents are cash on hand, demand deposits and other highly liquid short-term investments
with maturities of 3 months or less, easily convertible into cash, and do not carry a significant risk of
impairment. The Group reviews cash and cash equivalents for impairment using the expected credit loss model.
- Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a
Sale and Repurchase Agreements
financial instrument.
The lifetime ECL measurement is applied if, at the reporting date, the credit risk associated with a financial
asset increases significantly after initial recognition. In all other cases where the relevant increase was not
experienced, the 12-month ECL calculation was applied.
The Group may determine that if the credit risk of the financial asset has a low credit risk at the reporting date,
the credit risk of the financial asset has not increased significantly. However, lifetime ECL measurement
(simplified approach) always applies to trade receivables and contract assets without a significant financing
element. The Group has applied the lifetime ECL measurement for all group companies except Turkcell
Finansman. Since Turkcell Finansman is a financing company, it has applied both 12-month and lifetime ECL
measurement (general approach).
Securities sold under repurchase agreements (“Repo) are classified in the Company portfolio as “fair value
differences that recorded as “profit or loss”, “fair value differences that recorded other comprehensive income”
or “amortized cost” portfolios and valued according to relevent portfolio basis. Securities purchased under
aggrements to resell (“Reverse Repo”) are recorded as cash and cas equivalents in the balance sheet.
Reserve Deposits with Central Bank of the Republic of Turkey
In accordance with the “Communique Regarding the Reserve Requirements (No: 2013/15)” published in the
Official Gazette dated 23 April 2022 and numbered 31818, the current reserve deposits ratio for assets subject to
reserve deposits is determined as 20% as of 31 December 2022. For liabilities subject to required reserves, the
rates applicable for Turkish lira reserve deposits are between 3% and 8% according to the maturity structure; The
applicable rates for FX reserve deposits are between 5% and 21% according to the maturity structure.
272 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 273
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(f)
Financial Instruments (cont’d)
Trade Receivables
Trade receivables are recognized at their costs by less provision for permanent impairment. Trade receivables,
net of deferred finance income, are calculated by discounting the amounts to be obtained in the following
periods of the receivables recorded from the original invoice value using the effective interest method. Short-
term receivables with no specified interest rate are recognized at their original invoice values, unless the effect
of accruing interest is significant.
The Group monitors the collectability of its trade receivables periodically and allocates provision for doubtful
receivables for possible losses and overdue trade receivables within the scope of TFRS 9, based on the
collection rates of previous years. Following the provision for doubtful receivables, if all or part of the doubtful
receivable amount is collected, the collected amount is deducted from the doubtful receivable provision and
recognized in the consolidated statement of profit or loss
Trade and Other Financial Payables
Trade and other financial payables are stated at cost less maturity differences. Trade payables net of deferred
finance costs are recognized by discounting the amounts to be obtained in the following periods from the
original invoice value using the effective interest method.
Related Parties
Related parties are persons or companies that are related to the reporting Group.
(a) A person or a close member of that person’s family is related to the Group if that person:
(i)
(ii)
(iii)
has control or joint control of the Group
has significant influence over the Group; or
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).
(iii) Both entities are joint ventures of the same third party.
(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).
(viii) The entity, or any member of a group of which it is a part, provides key management personnel
services to the reporting entity or to the parent of the reporting entity.
(f)
Financial Instruments (cont’d)
Financial Liabilities
A financial liability is recognized initially at fair value.
Financial liabilities at fair value through profit or loss are financial liabilities that are classified as held for
trading or, at initial recognition, at fair value through profit or loss by the company. Gain or loss on a financial
liability classified as fair value through profit or loss is recognized in the statement of profit or loss.
Financial liabilities, whose fair value difference is not recognized in profit or loss, are carried at their fair
values, net of transaction costs, on the date they are received. Subsequently, financial liabilities are stated at
amortized cost using the effective interest method. The difference between the amount remaining after
deducting the transaction costs and the amortized cost is recognized in the statement of profit or loss as
financing expense during the loan period. Financing expenses arising from financial liabilities can be included
in the cost of qualifying assets if they are associated with the acquisition and construction of qualifying assets
When accounting for the financial instrument or its components for the first time, the Group makes a
classification in accordance with the substance of the arrangements in the contract and in line with the
definitions of financial debt and equity instruments.
Derivative Instruments and Hedge Accounting
Derivative instruments are initially recognized at their acquisition cost, which reflects their fair value at the
contract date, and are carried at their fair value in the following periods. The derivative instruments of the
Company mainly consist of structured cross currency swap contracts, cross currency/interest swap contracts,
foreign currency swap contracts and forward foreign currency transactions. Although these derivative
instruments provide an effective protection against risks for the Group, when they do not meet the requirements
for hedge accounting, they are accounted for as derivatives held for trading in the consolidated financial
statements and the fair value changes related to them are recognized in the statement of profit or loss.
The fair values of forward, option, interest and currency swap transactions are determined by using market
interest rates and Central Bank of the Republic of Turkey (“CBRT”) exchange rates data on the valuation date,
valuation methods and pricing instruments in line with market standards. Fair value if quoted market values
are not available; It is determined by discounting the difference (profit/loss) between the forward price subject
to a forward foreign currency purchase and sale contract and the price of the current exchange rate as of the
reporting date, with the risk-free investment interest rate at the reporting date. The fair value of interest rate
and currency swaps is calculated as the difference between the risk-free investment rate of the parties in the
swap cash flow and the CBRT exchange rates and their discounted values. The fair value of option transactions
is determined by using option pricing models.
.
274 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 275
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(f)
Financial Instruments (cont’d)
Derivative Instruments and Hedge Accounting (cont’d)
The recognition of subsequent changes in the fair value of derivative instruments depends on whether the
derivative is designated as a hedging instrument and, if so, on the nature of the hedged item. The Group
designates certain derivatives as hedging instruments based on cash flows and high probability forecast
transactions (cash flow hedges) of recognized assets and liabilities. At the inception of the hedging 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 the hedged items. The Group documents its risk management objective and strategy for carrying out hedging
transactions. Hedging transactions that fulfill the Group's hedge accounting requirements are recognized as
explained below:
(i)
Fair value hedges
The fair value changes of derivative instruments designated as fair value hedges are recognized in the statement
of profit or loss together with the changes in the fair value of the hedged asset or liability. The change in the
fair value of the hedged asset or liability is stated together with the related asset or liability during the hedge
accounting period. In cases where the hedge no longer fulfills the hedge accounting requirements, the
adjustments made to the carrying value of the hedged item are discounted using the effective interest rate
method within the time to maturity and recognized in the statement of profit or loss
(ii) Cash flow hedges
In accordance with TFRS 9 hedge accounting requirements, the Group determines the transactions that provide
hedging against changes in the cash flows of a registered asset or liability or transactions that can be associated
with a certain risk and that are likely to occur at the date of the derivative contract, which may affect profit or
loss due to a certain risk, as cash flow hedges.
The Group recognizes gains and losses on effective cash flow hedges as “gains/(losses) on cash flow hedges
and changes in the time value of options” in equity. In the event that the hedged commitment or possible future
transaction becomes an asset or liability, the gains or losses related to these transactions, which are recognized
as equity items, are taken from these items and included in the acquisition cost or book value of the said asset
or liability. Otherwise, the amounts recognized under equity are transferred to the consolidated statement of
profit or loss in the period in which the hedged possible future transaction affects the consolidated statement
of profit or loss and recognized as profit or loss. Gains or losses related to the effective portion of the change
in the intrinsic value of the options are recognized in the cash flow hedge in equity. Changes in the time value
of options related to the hedged item (“congruent time value”) are recognized in other comprehensive income
and under changes in the time value of options in equity.
2.4 Summary of Significant Accounting Policies (cont’d)
(f)
Financial Instruments (cont’d)
Derivative Instruments and Hedge Accounting (cont’d)
(ii) Cash flow hedges (cont’d)
Amounts accumulated in equity in the period in which the hedged item affects the statement of profit or loss
are classified as follows:
- If the hedged item subsequently results in the recognition of a non-financial asset, both the deferred hedge
gains and losses and the deferred time value of option contracts or deferred forward contracts, if any, are
included in the initial cost of the asset. Deferred amounts are ultimately recognized in profit or loss as the
hedged item affects profit or loss.
- The gain or loss on the effective portion of hedging interest rate swaps on floating rate borrowings is
recognized in profit or loss at the cost of financing at the same time as the interest expense on hedged loans.
The effectiveness test model may be qualitative, depending on the hedging relationship, only if it is applied
prospectively. The 80-125% efficiency range in TAS 39 has been replaced by a target-based test that focuses
on the economic relationship between the hedged item and the hedging instrument and the impact of credit
risk on this economic relationship.
In accordance with TFRS 9 hedge accounting, the purpose of the hedge accounting model is to ensure that
financial reporting more accurately reflects how the Group manages and mitigates its risks. In particular, it is
intended to provide a better link between the risk management strategy, hedging logic and the impact of
hedging transactions. When a hedging instrument expires, is sold or expires, or no longer meets hedge
accounting criteria; the cumulative deferred gain or loss in equity at the relevant time and the deferred costs of
hedging and the amounts remaining in equity until the estimated transaction takes place result in the
recognition of a non-financial asset. When the forecast transaction is no longer expected to occur, the
cumulative gain or loss reported in equity and deferred costs of hedging are reclassified to profit or loss.
Under TFRS 9, the hedging relationship ends when the required criteria are no longer met after rebalancing
has been taken into account. Hedge accounting ends when the hedge objective changes, the hedging instrument
expires or is sold, terminated or used, when the economic relationship between the hedging instrument and the
hedged item ceases, or when credit risk affects fair value changes arising from the economic relationship.
If the Group discontinues hedge accounting for the cash flow hedge, the accumulated amount of losses or gains
on the cash flow hedge is recognized as follows:
- If the future cash flows that are hedged are still expected to occur, this amount remains in the cash flow hedge
losses or gains until the future cash flows are realized.
276 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 277
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
Derivative Instruments and Hedge Accounting (cont’d)
(ii) Cash flow hedges (cont’d)
- If a hedging instrument is due, sold, or expires, or does not meet the accounting requirements of a hedge, any
deferred gain or loss accumulated until the forecast transaction is realized and any deferred costs currently
accumulated in equity, until the recognition of a non-financial asset remains in equity. When such a forecast
transaction is no longer expected to occur, the cumulative gain or loss in equity and deferred costs for hedging
are immediately reclassified to profit or loss.
(iii) Hedge of net investments in foreign operations
The Group has hedged its net investment in a foreign operation with a foreign currency loan. The effective
part of the gain or loss arising from the hedging instrument related to the net investments in the subsidiaries
operating in foreign countries is recognized directly in equity and the ineffective part is recognized in the
statement of profit or loss. Tax effects related to translation differences followed under other comprehensive
income are also classified under other comprehensive income (Note 35).
The gain or loss on the hedging instrument that relates to the effective portion of the hedge and is recognized
directly in equity is recognized in profit or loss on the disposal of the foreign operation.
(g) Revenue Recognition
The Group generally provides telecommunications services. Products and services are sold to customers as
individual or multiple products and/or services under a separate contract. When (or as) a performance
obligation is satisfied, the Group recognizes the transaction price corresponding to that performance obligation
as revenue. The transaction price is the amount the entity expects to be entitled in exchange for transferring
the promised goods or services to the customer. An asset is transferred when (or as) control of an asset is
transferred to the customer. Income recorded by the Group as revenue cosists of telecommunications revenues
are revenues from postpaid and prepaid lines, revenues from value-added GSM services including voice, data
and short message services, device revenues, call center revenues, financial operation revenues and other sales
revenues (Note 27). If the Group transfers control of a service over time and thus fulfills telecommunication
revenues over time, it recognizes the revenue over time.
Telecommunication services are also offered by pricing together with devices, value-added services and/or
other services and products. A good or service promised to a customer is distinct if both of the following
criteria are met:
(a) The good or service is capable of being distinct,
(b) The promise to transfer the good or service is distinct within the context of the contract.
Device revenues recognized as revenue where the Group is the prime contractor when significant control and
returns on the ownership of the device have been transferred to the buyer, the amount of revenue and the costs
incurred or to be incurred in relation to the sale have been measured reliably, collection of sales is probable,
and the Group has no effective control over the goods sold or when ownership does not maintain a management
activity as generally required.
2.4 Summary of Significant Accounting Policies (cont’d)
(g) Revenue Recognition (cont’d)
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. Based on this undertaking, the dealer
assigns the installment receivable arising from the sale of the device to the distributor, and the distributor 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. 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 (Note 2.5).
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 (Note 2.5). Revenue from
financial operations comprise of interest income generated from consumer financing activities. Interest income
is recognized as it accrues, using the effective interest method.
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.
Call center revenues are revenues from call center services provided by Turkcell Global Bilgi and Global
Ukraine. Call center revenues are recognized at the time services are rendered during the contractual period.
Volume-related refunds and discounts in international roaming and other services, and other contractual price
changes, are taken into account by the payer and the collector, when they are likely to be earned and effective.
For this reason, contractual returns and discounts are taken into account, but refunds and discounts at the
request of the other party are not taken into account as they do not meet the definitions of assets and liabilities.
“Contract Regarding the Addition of Mobile Broadband Internet Service to the Existing Infrastructure
Providing GSM Service and Operation with the Existing Network within the scope of the Universal Service
Law” regarding the continuation until 31 December 2021 of the "Contract for the Establishment and Operation
of Mobile Communication Infrastructure in Settlements Without Mobile Coverage Area" signed with the
Ministry. Mobile broadband internet service will be added to the existing infrastructure in the settlements
where mobile communication service is provided through the mobile network infrastructure installed under
the first contract, and service will be provided for the operation of the infrastructure together with the existing
network. During the year ending on 31 December 2022, the company earned a revenue of 198,313 TL (31
December 2021: 252,049 TL). This amount is classified under telecommunications revenues.
278 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 279
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(g) Revenue Recognition (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(h) Business Combinations
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. The Group management decides whether the Group is considered to
be acting as principal or agent in the transaction based on the following indicators:
a) The company is primarily responsible for fulfilling the promise to provide the specified good or service,
b) The company has inventory risk before the specified good or service has been transferred to a customer
;or after transfer of control to the customer,
c) The company has discretion in establishing the price for the specified good or service.
Such judgments impact the amount of reported revenue and operating costs but do not impact reported assets,
liabilities or cash flows. Since the Company acts as principal, revenue and operating costs related to “Contract
Regarding the Addition of Mobile Broadband Internet Service to the Existing Infrastructure Providing GSM
Service and Operation with the Existing Network within the scope of the Universal Service Law” are reported
on a gross basis.
Within the scope of TFRS 15, in the consolidated financial statements, certain contractual costs in
customer/subscriber acquisition are deferred and amortized over the life of the contract and as the revenue is
realized.
When either party fulfills the contract, the Group presents the contract as a contract asset or contractual liability
in the statement of financial position, depending on the relationship between the Group's performance and the
customer's payment. The Group presents its unconditional rights regarding the price separately as a receivable.
Before the Group transfers a good or service to the customer, if the customer pays the consideration or the
Group has the right to receive the consideration (ie a receivable) unconditionally, the contract is presented as
a contractual obligation on the date the payment is made or the payment is due (whichever is earlier). The
contractual obligation is the Group's obligation to transfer the goods or services to the customer in return for
the amount it collects (or is entitled to collect) from the customer. In cases where the Group performs its
performance by transferring goods or services to the customer before the customer pays the price or before the
payment is due, the Group presents the contract as a contract asset (excluding the amounts presented as
receivables). A contract asset is the Group's right to receive consideration for goods or services transferred to
the customer. The group assesses the contract asset for impairment in accordance with TFRS 9. The
impairment of a contract asset is measured, presented and disclosed on the same basis as a financial asset
within the scope of TFRS 9
Business combinations are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair
values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the
acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-
related costs are recognized in profit or loss as incurred. Identifiable assets acquired and liabilities assumed
are accounted for at their fair values at the date of purchase, with certain exceptions.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree (if any), and the fair value of the acquirer's previously held equity interest
in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree
is remeasured to fair value at the acquisition date (i.e., the date when the Group obtains control) and the
resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree
prior to the acquisition date that have previously been recognized in other comprehensive income are
reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.
The measurement period is the period after the acquisition date during which the acquirer can adjust the
temporary amounts recognized in the business combination. The measurement period provides the acquirer
with a reasonable time frame to allow it to collect the information necessary to determine and measure the
following as of the acquisition date in accordance with the requirements of TFRS, which cannot exceed one
year from the acquisition date:
(i) identifiable assets acquired, liabilities assumed and, if any, non-controlling interests (minority
interests) in the acquiree;
(ii) consideration transferred to the acquiree (or other amount used to measure goodwill);
(iii) equity interests in the acquiree previously held by the acquirer in a business combination accomplished
in stages; and
(iv) Consequential goodwill or gain on bargain purchase.
Goodwill
Goodwill arising from an acquisition of a business is carried at cost as established at the date of acquisition of
the business less accumulated impairment losses, if any.
For impairment testing, goodwill is allocated to the Group's cash-generating units (or groups of cash-
generating units) that expect to benefit from the synergies brought about by the acquisition.
The cash-generating unit to which the goodwill is allocated is tested for impairment annually. Where there are
indications that the unit is impaired, impairment testing is performed more frequently. If the cash-generating
unit's recoverable amount is less than its carrying amount, the impairment allowance is first set aside from the
goodwill allocated to the unit, then the carrying amount of the assets in the unit is reduced. Impairment
provision for goodwill is recognized directly in the consolidated statement of profit or loss. Provision for
impairment of goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
280 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 281
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(i)
The Effects of Changes in Foreign Exchange Rates
2.4 Summary of Significant Accounting Policies (cont’d)
(l)
Provisions, Contingent Assets and Liabilities
When converting foreign currency transactions to TL, the Group takes the relevant exchange rates valid at the
date of the transaction as a basis. Monetary assets and liabilities in foreign currencies in the statement of
financial position are translated into TL using the exchange rates at the reporting date. Non-monetary assets
and liabilities in foreign currency denominated at their fair values are translated into TL at the exchange rate
of the day their fair value is determined.
Exchange differences are recognized in profit or loss in the period in which they occur, except as follows:
• Exchange differences related to assets under construction for future use and included in the cost of
such assets, treated as an adjustment to interest costs on foreign currency denominated liabilities,
• Exchange differences arising from monetary debts and receivables from foreign operations that form
part of the net investment in foreign operations, recognized in translation reserves and attributed to
profit or loss on the sale of the net investment.
Subsidiaries whose functional currency is not the currency of a hyperinflationary country are translated into
TL at the closing rates as of the reporting date, excluding those resulting from the assets, liabilities and
recognized income and expense of the period. Equity items are translated into TL based on the exchange rates
on the transaction date. Income and expenses recognized in the financial statements during the period are also
converted into TL based on the monthly average exchange rates. All differences resulting from this transaction
are shown in “Currency Translation Reserve” in equity.
Foreign currency exchange differences are recognized in equity if they relate to qualifying cash flow hedging
instruments and net investment hedging instruments in a foreign subsidiary or are attributable to a portion of
the net investment in a foreign business. Foreign exchange gains and losses are statement in the statement of
profit or loss by netting off under financial income and financing costs.
(j) Earnings Per Share
Earnings per share stated in the consolidated statement of profit or loss is calculated by dividing the net profit
of the parent company shares by the weighted average number of shares outstanding during the relevant period,
excluding the repurchased shares.
Companies in Turkey can increase their capital by distributing shares (bonus shares) to their existing
shareholders from their retained earnings and equity inflation adjustment differences in proportion to their
share in the capital. Such bonus share distributions are treated as issued shares in earnings per share
calculations. Accordingly, the weighted average number of shares used in these calculations is calculated by
taking into account the retrospective effects of the aforementioned share distributions.
(k) Events After the Reporting Period
Events after the reporting period covers all events between the reporting date and the date the consolidated
financial statements are authorized for issue, even if they arise after any announcement regarding profit or
other selected financial information has been made public.
The Group adjusts the amounts included in the consolidated financial statements in accordance with this new
situation, in case of occurrence of events requiring adjustment after the reporting date. Non-adjusting events
after the reporting date, if material, are disclosed in the notes to the consolidated financial statements.
The Group Management makes a provision in the accompanying consolidated financial statements in cases
where there is a present legal or constructive obligation arising from past events, it is probable that an outflow
of resources embodying economic benefits will be required to settle this obligation and the amount of the said
obligation can be reliably estimated. Contingent liabilities are evaluated on an ongoing basis to determine
whether it is probable that resources with economic benefits will exit the COmpany. It is disclosed in the notes
to the financial statements, except when the probability of outflow of resources embodying economic benefits
is remote. If it becomes probable that economic benefits will flow into the business, it is disclosed in the notes
to the financial statements regarding the contingent asset.
If it is almost certain that the economic benefit will flow into the Company, the asset and related income are
recognized on the date of the change.
Propert, plant and equipment dismantling, transportation and restoration obligations
The Group has obligations for dismantling, transportation and restoration of property, plant and equipments.
Dismantling costs are calculated by discounting the fair future cash flows determined by reliable estimates to
the reporting date with a pre-tax discount rate determined by taking into account the time value of money and
the effects of risks related to the liability in current market conditions.
(m) Government Grants and Aids
Government grants and aids are recognized at their fair values when there is a reasonable assurance that these
grants and aids will be received and that the Group meets the conditions that it is obliged to comply with.
Government grants for costs are recognized as revenue on a consistent basis over the relevant periods when
they match the costs they will cover.
Government grants and aids related to property, plant and equipments are classified under non-current
liabilities as deferred grants and aids and are credited to the statement of profit or loss by applying straight-
line depreciation method over their useful lives. Government grants to cover previously incurred expenses or
losses are recognized in profit or loss when they become collectible.
(n) Taxes on Corporate Income
Income tax liability on profit for the period includes current period tax and deferred tax.
Current period liability includes tax liability calculated over the taxable portion of the profit for the period with
tax rates enacted at the reporting date.
Deferred tax assets or liabilities are determined by calculating the tax effects of temporary differences between
the values of assets and liabilities stated in the financial statements and the amounts taken into account in the
legal tax base calculation, according to the statement of financial position method. The main temporary
differences arise from the recognition of income and expenses in the financial statements and in different
reporting periods according to tax laws, and capitalization, depreciation and amortization differences related
to property, plant and equipment and intangible assets.
282 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
36
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37
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 283
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(n) Taxes on Corporate Income (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(p) Retirement Plans
Deferred tax assets or liabilities are recognized in the accompanying consolidated financial statements at the
rate of increase and decrease in the tax amounts to be paid in the future periods when the temporary differences
will disappear (Note 32). A deferred tax asset is recognized when it is probable that tax benefits will be
available in future periods. It is deleted from the relevant asset to the extent that it is understood that this
receivable can no longer be utilized.
Interest and penalties related to current tax are classified according to their nature in the statement of profit or
loss.
Deferred tax assets and liabilities are offset when there is a legal right to offset current tax assets and liabilities
and deferred tax balances are subject to the same tax authority. Current tax assets and tax liabilities are offset
when the entity has a legal right to offset and is settled net, or when it simultaneously accrues assets and intends
to settle liabilities.
Current and deferred tax are recognized in the statement of profit or loss, except when related to an item
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 Group may be entitled to claim special tax deductions for its investments in qualifying assets or on
qualifying expenditures. The Group recognizes such appropriations as tax receivables, which means that
appropriations reduce income tax payable and current tax expense. A deferred tax asset is carried as an
unclaimed tax receivable.
(o) Employee Benefits/Termination Indemnity
According to the laws in force, the Group is obliged to make a certain lump sum payment to the employees
whose employment is terminated due to retirement or for reasons other than resignation and behaviors specified
in the labor law. The said payment amounts are calculated based on the termination indemnity ceiling valid at
the relevant date. Provision for termination indemnity, future liabilities due to retirement of all employees are
calculated according to their net present value and recognized in the accompanying consolidated financial
statements. The provision for termination indemnity has been calculated by an independent actuarial
consultancy company using the projected unit credit method.
Payments made for employees leaving the senior management level are accounted for in other operating
expenses.
Assets related to retirement plans are kept separately from the Group's consolidated financial statements. The
Group's obligation for retirement plans is to pay certain fixed contributions. Payments made are recognized as
expense in the relevant period.
(r)
Share Based Payments
The Group has cash-based (cash-paid) share-based benefit plans for service received from its employees. In
the case of share-based payment transactions to be settled in cash, the relevant liability amount is measured at
the fair value of the debt assumed. Until the liability is settled, the fair value of the liability is remeasured at
the end of each reporting period and also at the date of redemption, and any changes in fair value are recognized
in profit or loss. Share-based payment transactions to be settled in cash are subject to the fulfillment of certain
vesting conditions.
(s) Employee Bonus Provisions
Employee bonus provisions are calculated when the Group has an obligation arising from its legal or
constructive acceptance or because the practice has been in existence for a while, and the Group makes a
reliable estimate of this obligation.
(t) Capital
Ordinary shares are classified in equity. Costs associated with the issuance of new shares are recognized in
equity, less the tax effect, less the amount collected.
(u) Dividend Income
Dividend income from equity investments is recognized in the consolidated financial statements when the
shareholders' right to receive dividends arises.
(v) Dividend Payables
Dividend payables are recognized as a liability in the consolidated financial statements in the period they are
declared as part of the profit distribution.
(y)
Interest Income
Interest income is accrued in the relevant period based on the effective interest method, which brings the
remaining principal balance and estimated cash inflows to the net book value of the related financial asset
during its expected life.
(z) Borrowing Costs
In the case of assets that take significant time to get ready for use or sale, borrowing costs directly attributable
to their acquisition, construction or production are included in the cost of the asset until it is ready for use or
sale.
All other borrowing costs are recognized in the statement of profit or loss in the period in which they are
incurred.
284 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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38
Translated into English from the report originally issued in Turkish
39
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 285
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(aa) Non-Current Assets Held for Sale and Discontinued Operations
2.4 Summary of Significant Accounting Policies (cont’d)
(ab) Leases (cont’d)
Non-current assets (or disposal groups) are classified as held for sale when their carrying amount will be
recovered through a sale transaction rather than through continuing use and when the probability of sale is
considered high.
An impairment loss is recognized initially or later when the value of an asset (or disposal group) is reduced to
its fair value less costs to sell. Any subsequent increases in the fair value of an asset (or a disposal group) are
recognized as a gain, provided they do not exceed any accumulated impairment losses previously recognized.
Gains or losses of an asset (or a disposal group) that were not previously recognized until the day of sale are
recognized as of the day the related asset is derecognised.
A non-current asset classified as held for sale and assets in a disposal group classified as held for sale are stated
separately from other assets in the statement of financial position.
Discontinued operation is a component of an entity that either has been disposed of or is classified as held for
sale and represents a separate major line of business or geographical area of operations, or is part of a single
co-ordinated plan to dispose of a separate major line of business or geographical area of operations or is a
subsidiary acquired exclusively with a view to resale. Results of discontinued operations are presented
separately in the statement of profit or loss.
(ab) 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:
(a) The contract contains an identified asset; an asset is usually identified by being explicitly or implicitly
specified in the contract.
(b) A functional portion of the asset is physically distinct or represents nearly all of the asset's capacity.
(c) The asset is not defined if the supplier has a substantive right to substitute the asset and derive economic
benefits from it.
(d) Having the right to derive substantially all of the economic benefits from the use of the identified asset.
(e) Having the right to manage the use of the identified asset. If these decisions 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.
The Group has the right to manage the use of the asset in the following cases:
i) The Group has the right to operate the asset (or direct others to operate the asset as it determines)
throughout the period of use and the supplier does not have the right to change these operating
instructions; or
ii) The Group has designed the asset (or certain features of the asset) to predetermine how and for what
purpose the asset will be used throughout its useful life.
The Group as a Lessee
Right-of-use asset
The Group recognizes a right-of-use asset and a lease liability in its financial statements at the commencement
date of the lease.
The right-of-use asset is initially recognized using the cost method and includes:
(a) Amount of the initial measurement of the lease liability,
(b) Any lease payments made at or before the commencement date, less any lease incentives received,
(c) Any initial direct costs incurred by the Group and
(d) 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.
When applying the cost method, the Group measures the right-of-use asset:
(a) less accumulated depreciation and accumulated impairment losses; and
(b) at cost adjusted for the remeasurement of the lease liability.
While depreciating the right-of-use asset, the Group applies the depreciation provisions of TAS 16 Property,
Plant and Equipments. If the supplier transfers ownership of the underlying asset to the Group at the end of
the lease term, or if the cost of the right-of-use asset indicates that the Group will exercise a call option, the
Group depreciates the right-of-use asset from the date the lease actually began to the end of the useful life of
the underlying asset. In other cases, the Group depreciates the right-of-use asset over the shorter of the asset's
useful life or the lease term, starting from the actual commencement date of the lease.
The Group applies TAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and
to recognize any identified impairment losses.
286 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
40
Translated into English from the report originally issued in Turkish
41
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 287
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(ab) Leases (cont’d)
Lease obligation
(ab) Leases (cont’d)
Lease obligation (cont’d)
At the commencement date of the lease, the Group measures the lease liability at the present value of the lease
payments not paid at that date. Lease payments are discounted using the implied interest rate on the lease, if
that rate can be easily determined. If this rate cannot be easily determined, the Group uses its own alternative
borrowing rate.
At the commencement date of the lease, the lease payments included in the measurement of the lease liability
consist of the following payments for the right to use the underlying asset during the lease term, which were
not paid at the commencement date of the lease:
(a) the amount obtained by deducting any lease incentive receivables from the fixed payments;
The Group remeasures the lease liability by discounting the revised lease payments if one of the following
situations occurs:
(a) a change in the amounts expected to be paid under a residual value commitment. The Group determines
the revised lease payments to reflect the change in the amounts expected to be paid under the residual value
commitment.
(b) a change in those payments as a result of a change in an index or rate used to determine future lease
payments. The Group remeasures the lease liability to reflect those revised lease payments only when there
is a change in cash flows.
(b) variable lease payments based on an index or rate, initially measured using an index or rate at the
commencement date of the lease;
The Group determines the revised lease payments for the remaining lease term based on the revised contractual
payments. The Group then uses an unmodified discount rate.
(c) the exercise price of the call option if the Group is reasonably confident that it will exercise; and
(d) penalties for termination of the lease if the lease term indicates that the Group will exercise an option
to terminate the lease.
After the actual commencement date of the lease, the Group measures the lease liability as follows:
(a) Increase the carrying amount to reflect the interest on the lease liability;
(b) Reduce its carrying amount to reflect lease payments made; and
(c) Remeasure book value to reflect reassessments and restructurings or to reflect revised lease payments
that are fixed in substance.
The interest on the lease liability for each period in the lease term is the amount found by applying a fixed
periodic interest rate to the remaining balance of the lease liability. The periodic rate of interest is the implied
rate of interest in a lease, if it can be easily determined. If this rate cannot be easily determined, the Group uses
its own alternative borrowing rate.
After the lease actually commenced, the Group remeasures the lease liability to reflect changes in lease
payments. The Group recognizes the remeasurement amount of the lease liability as an adjustment to the right-
of-use asset in its financial statements.
The Group remeasures the lease liability by discounting the revised lease payments at a revised discount rate
if one of the following situations occurs:
(a) There is a change in the lease term. The Group determines the revised lease payments based on the
revised lease term.
(b) There is a change in the assessment of the option to purchase the underlying asset. The Group determines
the revised lease payments to reflect the change in the amounts payable under the option to buy.
The Group uses the revised discount rate for the remainder of the lease term as this rate if the implied interest
rate in the lease can be easily determined; If it cannot be determined easily, it is determined as the alternative
borrowing interest rate of the Group at the date of reassessment.
The Group recognizes for the restructuring of the lease as a separate lease if both of the following conditions
are met:
(a) the restructuring expands the scope of the lease by adding the right to use one or more of the underlying
assets; and
(b) the rental price increases by the amount of appropriate adjustments to that stand-alone price to reflect
the stand-alone price of the increase in coverage and the terms of the relevant contract.
The Group as a lessor
The Group classifies each of the leases as operating leases or finance leases.
A lease is classified as a finance lease if substantially all the risks and rewards of ownership of the underlying
asset are transferred, otherwise as an operating lease.
For a contract that includes a lease component and one or more additional lease or non-leasing components,
the Group allocates the contract price by applying TFRS 15, “Revenue from contracts with customers”.
(ac) Financial Investments
If the Group has investments in associates, some of which are held indirectly through venture capital firms or
similar businesses that include funds, investment trusts and investment insurance funds, the Group can choose
to measure this part of the investment in associates as at fair value through profit or loss in accordance with
TFRS 9. In this case, it is not taken into account whether the venture capital institution or similar enterprises
covering the fund, investment trust and investment insurance funds have a significant effect on this part of the
investment. The entity makes this choice separately for each associate or joint venture when recognizing the
associate or joint venture for the first time. If the Group makes such a choice, the equity method is applied to
the remainder of the investment in associates that are not held through a venture capital institution or similar
businesses including funds, investment trusts and investment insurance funds (Note 34).
288 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
42
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43
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 289
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.4 Summary of Significant Accounting Policies (cont’d)
(ad) Financial Risk Management
The Group practice envisages meeting the needs of the centrally managed Group through capital increase
and/or lending in line with predetermined debt/equity ratios. The Group borrows long and short term according
to its financing needs and market forecasts. Different money market products are also evaluated from time to
time, such as debt products, basic commercial bank loans, and bond issuance in order to maintain resource
diversity. The Group determines the fair values of financial and non-financial assets and liabilities in
accordance with its accounting policies and disclosures in the footnotes (Note 2.6).
In all borrowing transactions, it is taken into consideration the Group's credit ratings and basic financial
borrowing ratios are not adversely affected.
The Group is exposed to the following risks from the use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk
Note 38 provides information about the Group's objectives, policies and processes regarding the assessment
and management of each of the above risks, and the Group's capital management.
The Group's risk management policies have been established to identify and analyze the risks faced by the
Group, to determine appropriate risk limits and controls, and to monitor adherence to these limits. Risk
management policies and systems are constantly reviewed to reflect the Group's activities and changes in
market conditions.
Credit Risk
Arises from the failure of a customer or counterparty to fulfill the terms of the agreement regarding financial
instruments, and financial losses that may arise from the Group's receivables and financial investments
constitute credit risk.
Group management has an existing credit risk policy to monitor credit risk. The Group can obtain collateral
for its financial assets. In addition, the Group requests letters of guarantee from unrelated parties for certain
projects and contracts, and may request mortgages for the loans it has given to provide financing.
In order to observe the credit risk arising from the receivables from the subscribers, the Group divides the
subscribers into groups according to the prospective credit loss model, taking into account the payment terms,
the financial difficulties that the Group has experienced before in collection and their aging profiles. Most of
the trade receivables are related to the receivables from the subscribers. The credit risk of the Group's trade
receivables mainly arises from the personal payment characteristics of its postpaid customers.
Investments are evaluated in liquid financial instruments. Bank limits are determined by credit ratings given
by reliable rating institutions and their paid-in capital. Credit ratings and paid-in capital amounts are reviewed
on a monthly basis.
Transactions related to derivatives and similar instruments are carried out with national and international banks
with which the Group has signed international contracts and whose credit ratings are sufficient.
2.4 Summary of Significant Accounting Policies (cont’d)
(ad) Financial Risk Management (cont’d)
Credit Risk (cont’d)
As of the reporting date, the Group has no significant credit risk concentrated in a particular party. The Group's
maximum exposure to credit risk is reflected by presenting all financial assets, including derivative
instruments, with their carrying values in Note 38 in the consolidated statement of financial position.
The Group makes provision for doubtful receivables for the balance of trade receivables and contract assets
arising from sales of goods and services to show the estimated loss. This provision has been calculated
considering possible collection problems and past experience arising from trade and contract assets
receivables.
As per its policy, the Group only provides financial guarantees to its subsidiaries and distributors (Note 21).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its future financial obligations. The Group's
liquidity risk is managed by obtaining sufficient financing opportunities from various financial institutions in
a way that will not harm the Group or damage its reputation, in order to meet its current and potential debt
requirements under normal conditions or in crisis situations. Liquidity risk is managed using sufficient cash
and cash equivalents to cover expected operational expenses, including financial liabilities.
Market risk
It is the risk that changes in the money market, such as exchange rates, interest rates or the prices of instruments
traded in the securities markets, will change the Group's income or the value of its financial assets. Market risk
management aims to optimize risk return while controlling exposure to market risk within acceptable limits.
The Group uses derivative financial instruments to manage market risk. All trading transactions are carried out
in accordance with the Group's treasury and risk management policy.
(i)
Exchange rate risk
The Group is exposed to foreign currency risk due to various income and expense items in foreign currencies
such as wholesale income and expenses, some operational expenses, network costs and foreign currency debts,
receivables, financial liabilities arising from them, financial liabilities arising from investment agreement
related to BeST acquisition. The majority of other currencies that the Group carries out transactions consist of
the US Dollar, Euro and Chinese Yuan.
Keeping a large portion of the cash portfolio in foreign currency is one of the methods used in managing
currency risk. In addition, the Group has been a party to various forward contracts, swap (barter contract) and
option contracts in order to control the risk arising from fluctuations in foreign exchange rates, and hedging
accounting has been applied since 1 July 2018 (Note 35). Additional information on the Group's foreign
exchange sensitivity is provided in Note 38.
290 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
44
Translated into English from the report originally issued in Turkish
45
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 291
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.5 Critical Accounting Judgements, Estimates and Assumptions (cont’d)
2.5 Critical Accounting Judgements, Estimates and Assumptions (cont’d)
(ad) Financial Risk Management (cont’d)
(ii)
Interest rate risk
Interest rate risk arises from financial assets and liabilities. The Group manages its financial liabilities by
making an appropriate distribution between fixed and variable-rate debts. Variable-rate debts can be converted
into fixed-rate debts, taking into account the market forecasts, the Group's maturity needs, and short and long-
term interest rate expectations. The use of derivative financial instruments is managed in line with the Group's
treasury and risk policy, in which the written principles regarding the use of derivative financial instruments
are approved by the Audit Committee in accordance with the Group's risk management strategy.
2.5 Critical Accounting Judgements, Estimates and Assumptions
The preparation of the consolidated financial statements in accordance with TFRS requires the Group
Management to make certain assessments, estimates and assumptions that will affect the application of
accounting policies and reported items such as assets, liabilities, income and expenses. However, actual results
may differ from the estimates made.
Estimates and assumptions are reviewed periodically. The effects arising from changes in accounting estimates
are taken into account in the current period and in future periods that may be affected by this estimate.
Estimates and assumptions that may cause significant adjustments in the carrying values of assets and liabilities
in the Company's consolidated financial statements in the next reporting period are set out below.
Provision for doubtful trade receivables
The Group allocates provision for doubtful receivables for the estimated losses caused by the inability of its
customers and subscribers to make the necessary payments. The Group calculates provision for doubtful
receivables according to the prospective credit loss model. In this context, the loss is weighed according to the
probabilities of realization and it evaluates how economic factors affect the expected credit loss. The provision
is revised periodically. The provision expense calculated for trade and other receivables is calculated over the
percentages determined for the aging group in which the receivable is included and increasing as the
receivables age.
Capitalization and useful lives of assets
The Group evaluates the nature of the capitalized asset for its property, plant and equipment and intangible
assets within the scope of TAS 16 and TAS 38 standards, and accordingly, the related assets are capitalized
when they are ready for use.
The residual values and useful economic lives of the Group's assets are determined by the Group Management
at the acquisition date of the asset and are regularly reviewed for appropriateness. The group determines the
useful life of an asset by considering the estimated benefits of that asset. This assessment is based on the
Group's experience with similar assets. When determining the useful life of an asset, the Group also considers
the situation when the assets become technically and/or commercially unavailable as a result of changes or
developments in the market. The useful lives of GSM and other telecommunication business licenses depend
on the validity period of the license agreements.
Gross and net presentation of revenue
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. The Group Management decides whether the Group sells goods or
services as a principal or as an agent by analyzing both the legal form and content of the agreements between
the Group and its business partners. Such decisions affect reported revenue and operational expenses; however,
it has no impact on reported assets, liabilities and cash flow.
Contracted handset sales
Company, distributors and dealers; organizes joint campaigns for subscribers, where the distributor and/or
dealer sells devices, and the Company provides communication services.
The management does not recognize revenue related to the device by evaluating the following issues:
• The Company is not the main contractor in device sales,
• The Company has no control over device sales prices,
• The Company does not have stock risk.
Multi-element contracts
In multi-element contracts where the Group is the main contractor, each element in the package is considered
as separate parts that can be separated from each other if their fair value can be measured reliably and has a
distinct value to the customer, and is recognized separately, provided that the revenue elements of each have
been realized. The total price obtained from the package is distributed to the products and services in proportion
to the fair values of the elements in the package and revenue is recognized.
Tax expense
In case of any disputes with tax institutions, tax expense calculation, estimation and evaluations are required
for the items whose tax calculation method cannot be determined exactly until a decision is taken from the
relevant authorities or until the end of the legal process.
As part of the preparation of the consolidated financial statements, the Group is responsible for estimating
taxes for each country in which operations are conducted. This process includes estimating the deferred tax
asset or liability by evaluating temporary timing differences calculated from adjustments made for reporting
purposes such as current tax expenses, deferred income and accruals. Group Management records deferred tax
assets when they can be deducted from future taxable income.
A deferred tax asset is recognized when it is probable that tax benefits will be available in future periods.
Therefore, the separation of the deferred tax receivable depends on the estimation of the financial performance
in the future periods.
292 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 293
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.5 Critical Accounting Judgements, Estimates and Assumptions (cont’d)
2.6 Fair Value Measurement (cont’d)
Provisions, contingent assets and liabilities
(iii) Trade and other receivables and receivables from finance sector operations
As detailed in Note 20, the Group has become a party to multiple investigations, examinations and lawsuits,
both as defendant and plaintiff, within the scope of its ordinary activities during the period. All these
investigations, examinations and lawsuits are reflected in the consolidated financial statements or related notes
by the Group Management by evaluating the paragraph 91 of TAS 37 “Provisions, Contingent Liabilities and
Contingent Assets” standard. Future results of these investigations, examinations and lawsuits may differ from
the Group's assessments. As a result of the evaluations made under the current conditions as of the reporting
date, the Group Management is of the opinion that the necessary information is presented in the accompanying
consolidated financial statements in order to ensure that appropriate accounting criteria and measurement
principles are applied to provisions, contingent liabilities and contingent assets and that financial statement
users understand their nature, timing and amount.
Annual impairment assessment
The group annually evaluates whether there is any indication that an asset is impaired. If such an indication
exists, the recoverable amount of that asset is determined by its fair value less costs to sell.
Fair value determination process
Some of the Group's assets and liabilities are measured at fair value for financial reporting purposes.
Observable market information is used whenever possible to measure fair value. The valuation method and the
inputs used in determining the fair value are explained in Note 2.6.
2.6 Fair Value Measurement
The Group determines the fair values of financial and non-financial assets and liabilities in accordance with
some accounting policies and explanations in the notes. Fair values have been determined by using the methods
stated below for finding the values of financial and non-financial assets and liabilities in the financial
statements and/or explanations in the notes. If necessary, the assumptions used in determining fair values are
explained in the related notes.
(i)
Investment properties
The fair values of investment properties are calculated by an independent valuation company authorized by
the CMB, with various methods (income approach and market comparison or evaluation of any or all of these
methods together), taking into account the applicability of these methods in the relevant real estates. The value
of investment properties generally differs according to the valuation method.
For this reason, the valuation company makes an evaluation with a reasonable method by comparing the
valuation results calculated with different methods and the differences. The independent valuation company
estimates the fair value of the investment property reflecting the market conditions at the reporting date,
according to the valuation method used.
(ii) Financial investments
The fair values of financial investments are determined based on the selling prices quoted on the stock
exchange or on the basis of their market value, which is not quoted in the over-the-counter exchange.
The fair values of receivables from trade, other and financial sector operations are determined by discounting
the present values of future cash flows to the reporting date with market interest rate.
(iv) Derivative instruments
The fair values of forward, option, interest and currency swap transactions are determined by using market
interest rates and CBRT exchange rates data on the valuation date, valuation methods and pricing instruments
in line with market standards. If quoted market values are not available, the fair value is determined by
discounting the difference (profit/loss) between the forward price of the forward foreign currency contract and
the current exchange rate at the contract maturity, using the risk-free investment interest rate at the reporting
date.
The fair value of interest rate and currency swaps is calculated as the difference between the risk-free
investment rate of the legs in the swap cash flow and the CBRT rates and their discounted values. The fair
value of option transactions is determined by using option pricing models.
(v) Non-derivative financial liabilities
Fair values stated in the notes are determined by discounting future cash flows related to principal and interest
to the reporting date with market interest rate. Fair values of lease liabilities are discounted using the implied
interest rate on the lease, if it can be easily determined. If this rate cannot be easily determined, the Group uses
its own alternative borrowing rate.
2.7 New and Amended Standards and Interpretations
a)
Standards, amendments and interpretations applicable as at 31 December 2022:
Amendment to TFRS 16, ‘Leases’ – COVID 19 related rent concessions extension of the practical
expedient (effective as of 1 April 2021); Due to the COVID 19 pandemic, some privileges have been provided
to lessees in rent payments. In May 2020, with the amendment published in the TFRS 16 Leases standard,
IASB introduced an optional expedient practice for the lessees not to evaluate the concessions granted due to
COVID 19 in the lease payments, whether there is a change in the lease. On 31 March 2021, IASB published
an additional amendment to extend the date of expedient implementation from 30 June 2021 to 30 June 2022.
Lessees may choose to account for such lease concessions in accordance with the terms that would apply in
the absence of a lease modification. This ease of application often causes the lease concession to be recognized
as a variable lease payment during periods when the event or condition that triggers the reduction in lease
payments occurs.
A number of narrow-scope amendments to TFRS 3, TAS 16, TAS 37 and some annual improvements
on TFRS 1, TFRS 9, TAS 41 and TFRS 16; effective from Annual periods beginning on or after 1
January 2022.
o Amendments to TFRS 3 ‘Business combinations’; this amendment updates a reference in
TFRS 3 to the Conceptual Framework for Financial Reporting without changing the
accounting requirements for business combinations.
294 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 295
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.7 New and Amended Standards and Interpretations (cont’d)
2.8 Comparative Information and Revision of Prior Period Financial Statements (cont’d)
a)
Standards, amendments and interpretations applicable as at 31 December 2022 (cont’d):
o Amendments to TAS 16 ‘Property, plant and equipment’; this amendment prohibits 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 recognise such sales proceeds and related cost in profit or loss.
o Amendments to TAS 37 ‘Provisions, contingent liabilities and contingent assets’; this
amendment specifies which costs a company includes when assessing whether a contract will
be loss-making.
b)
Standards, amendments and interpretations that are issued but not effective as at 31 December 2022:
TAS 1, Application Statement 2, and narrow changes to TAS 8; Effective for annual reporting periods
beginning on or after 1 January 2023. These amendments are intended to improve accounting policy
disclosures and help financial statement users distinguish between changes in accounting estimates and
changes in accounting policies.
TAS 12, Amendment to deferred tax on assets and liabilities arising from a single transaction; Effective
for annual reporting periods beginning on or after 1 January 2023. These amendments require deferred tax
recognition on transactions that cause equal amounts of taxable and deductible temporary differences when
first recognized by companies.
TFRS 16, Sale and leaseback transactions; Effective for annual reporting periods beginning on or after 1
January 2024. These amendments include the sale and leaseback requirements in TFRS 16 that describe how
an entity accounts for a sale and leaseback transaction after the transaction date. Sales and leaseback
transactions where some or all of the lease payments consist of variable lease payments that are not tied to an
index or rate are likely to be affected.
TAS 1, Amendment to the long-term obligations, which are the terms of the contract; Effective for annual
reporting periods beginning on or after 1 January 2024. These amendments clarify how conditions that an
entity must comply with within twelve months of the reporting period affect the classification of a liability.
TFRS 17, 'Insurance Contracts', as amended in December 2021; Effective for annual reporting periods
beginning on or after 1 January 2023. This standard replaces TFRS 4, which currently allows for a wide variety
of applications. TFRS 17 will fundamentally change the accounting of all entities that issue insurance contracts
and investment contracts with discretionary participation features.
2.8 Comparative Information and Revision of Prior Period Financial Statements
The consolidated financial statements of the Group are prepared comparatively with the previous period in
order to enable the monitor the financial position and performance trends. In order to comply with the
presentation of the current period consolidated financial statements, comparative information is reclassified
when deemed necessary and significant differences are disclosed.
Significant changes in accounting policies and significant accounting errors are applied retrospectively and
prior period financial statements are restated.
In order to comply with the presentation of the current period consolidated financial statements, comparative
information is reclassified when necessary and significant differences are disclosed.
In its consolidated financial statements as of 31 December 2021, the Company has classified the short-term
trade receivables from non-related parties amounting to 30,075 TL as short-term trade receivables from related
parties.
The reclassification has no effect on the consolidated statement of profit or loss and cash flow statement.
2.9 Developments in the Current Period
Developments regarding the operations in Ukraine
The company's subsidiaries Lifecell, UkrTower, Global LLC and Paycell LLC provide telecommunications
services, telecommunications infrastructure management, customer relationship management and mobile
payment services in Ukraine, respectively. The Group's Ukraine operations constitute approximately 8.9% of
the consolidated net sales and 14% of the consolidated non-current assets for the period ended 31 December
2022.
With the start of the Russia-Ukraine war on 24 February 2022, uncertainties have emerged regarding the
Group's activities in Ukraine. The impact of this situation on the Group's operations is closely monitored, and
corporate action plans regarding the continuation of operations and the safety and health of Group employees
are updated instantly according to developments. As of the end of December 2022, 92% of the daily average
stores across the country are open. The ratio of telecommunications equipment and revenue generated in the
territory currently occupied by Russia to the total Group's telecommunications equipment and total revenue in
Ukraine is at a low level. Banking systems continue to operate in the country. Liquidity is mostly held in
creditor banks, and the cash position is suitable for the continuation of operations. The occupation is not
expected to have any impact on the going concern of the Group. As of 31 December 2022, the network and
other equipment in the regions under Russian control and active military operations and in Ukraine-controlled
regions that have not operated for more than 92 days have been impaired. As of 31 December 2022, the amount
of impairment recognized in the consolidated financial statements is 214,210 TL. A general impairment
assessment has been made and it has been concluded that there is no need for an impairment test (Note 18).
3
BUSINESS COMBINATIONS
The Company's subsidiary Turkcell Enerji has signed a Share Transfer Agreement to acquire the entire shares
of Boyut Grroup Enerji Elektrik Uretim ve Insaat Sanayi ve Ticaret A.S. ("Boyut Enerji") on 6 July 2021. The
respective transaction is based on an enterprise value of 29,600 USD. After adjusting for the net debt of Boyut
Enerji, the Group made a payment of 10,972 USD. 500 USD of this amount shall be paid after two-years as
from the agreement date. The control power of Boyut Enerji has transferred to the Group as of 18 August 2021.
At the time the financial statements were authorized for issue, goodwill, identifiable assets and liabilities has
been accounted in accordance with TFRS 3, “Business Combinations.
The details of the goodwill calculation, total consideration amount and the net assets acquired are as follows:
Total consideration amount
-Cash consideration amount
-Contingent and deferred consideration amount (Note 25)
Net asset acquired
Goodwill (Note 15-17)
95,534
92,259
3,275
(87,123)
8,411
296 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 297
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
3
BUSINESS COMBINATIONS (cont’d)
4
SEGMENTAL REPORTING (cont’d)
The fair values of identifiable net assests in accordance with TFRS 3 arising from the acquisition are as follows:
Cash and cash equivalents
Other current assets
Property, plant and equipment (Note 14)
Intangible assets (Note 15)
Other non-current assets
Borrowings (Note 36)
Trade and other payables
Deferred tax liabilities (Note 32)
Other liabilities
Fair value of total identifiable net assets (100%)
The details of cash outflow due to acquisition are as follows:
Total consideration - cash
Cash and cash equivalents - acquired
Cash outflow due to acquisition (net)
4
SEGMENTAL REPORTING
5,556
5,737
103,933
182,881
166
(151,892)
(9,233)
(48,755)
(1,270)
87,123
92,259
(5,556)
86,703
In accordance with its integrated communication and technology services strategy and economic integrity,
Group divides its main business segments into three groups as “Turkcell Turkey”, “Turkcell International” and
“Techfin”. While some of these strategic segments offer the same types of services, they are regularly review
by the chief operating decision maker function according to their resource allocation and performances
because they operate in different geographical locations and are affected by different economic conditions.
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 General Manager and other
directors.
Turkcell Turkey reportable segment includes the operations of Turkcell, Turkcell Superonline, Turkcell Satış’s
digital business services, Turkcell Dijital, Dijital Eğitim, Turkcell Global Bilgi intra-group operations,
Turktell,Atmosware Teknoloji, Turkcell Teknoloji, Global Tower, Rehberlik Hizmetleri, Turkcell
Gayrimenkul, Lifecell Dijital Servisler, Lifecell Bulut, Lifecell TV, Lifecell Müzik ve BiP A.Ş.
Turkcell International reportable segment includes the operations of Lifecell, BeST, Kıbrıs Telekom, Eastasia,
Lifecell Ventures, Beltel, UkrTower, Global Ukrayna, Paycell Europe, Lifetech, Beltower, Lifecell Digital,
Yaani ve BiP B.V.
Techfin reportable segment includes the operations of Turkcell Finansman, Turkcell Ödeme, Turkcell Sigorta,
Turkcell Dijital Sigorta, Paycell Europe ve Paycell LLC.
Other reportable segment mainly comprises non-Group call center operations of Turkcell Global, Turkcell
Satış’s other operations, Turkcell Enerji, Boyut Enerji and Turkcell GSYF’s operations.
Information about segments is presented at below. The Board primarily uses EBITDA (earnings before interest,
tax, depreciation and amortization) to assess the performance of the operating segments. EBITDA is calculated
by the Group by adding depreciation and amortization to the net amount of sales revenue, cost of sales, marketing
and general administrative expenses. Reconciliation of EBITDA to the consolidated profit for the period is
included in the accompanying notes.
EBITDA is not a financial measure defined by TFRS as a measurement of financial performance and may not
be comparable to other similarly-titled indicators used by other companies.
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
4 SEGMENTAL REPORTING (cont’d)
Turkcell Turkey
2022
2021
Turkcell International
2021
2022
Techfin
Other
2022
2021
2022
2021
Inter-segment
Eliminations
2022
2021
Consolidated
2022
2021
Total segment revenue 40,851,070
Inter-segment revenue
(216,232)
Revenues from
external customers
EBITDA
TFRS 9 impairment
loss provision
40,634,838
17,196,783
(290,933)
27,223,543
(175,173)
6,353,603
(140,722)
3,750,081
(99,353)
1,849,132
(140,624)
1,075,742
(61,846)
7,042,489
(1,720,229)
4,930,019
(722,471)
(2,217,807)
2,217,807
(1,058,843)
1,058,843
53,878,487
-
35,920,542
-
27,048,370
12,167,845
6,212,881
3,233,015
3,650,728
1,828,333
1,708,508
901,571
1,013,896
638,946
5,322,260
693,953
4,207,548
401,086
-
(31,481)
-
(22,397)
53,878,487
21,993,841
35,920,542
15,013,813
(251,870)
(33,577)
(7,785)
(29,538)
(10,436)
(870)
(1,071)
-
-
(354,918)
(271,162)
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54
298 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 299
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
4
SEGMENTAL REPORTING (cont’d)
5
CASH AND CASH EQUIVALENTS
Reconcilations regarding to revenue, EBITDA, assets and liabilities and other significant items
As of 31 December 2022 and 2021 the details of cash and cash equivalents are as follows:
Profit for the year
Add/(Less):
Income tax expenses
Other operating income
Other operating expense
Investment income
Finance income
Finance expense
Depreciation, amortization and impairment losses
Share of (profit)/loss of equity accounted
investees
Consolidated EBITDA
Geographical Information
Revenue
Turkey
Ukraine
Belarus
Turkish Republic of Northern Cyprus
The Netherlands
Non-Current Asset
Turkey
Ukraine
Belarus
Turkish Republic of Northern Cyprus
Unallocated non-current assets
31 December
2022
31 December
2021
11,052,234
5,031,278
(3,516,100)
(7,561,993)
761,126
(1,779,890)
(210,775)
13,699,811
9,478,012
(490,184)
(7,077,695)
668,076
(464,116)
(3,051,082)
13,195,713
7,291,913
71,416
21,993,841
(90,090)
15,013,813
31 December
2022
31 December
2021
47,665,602
4,807,505
934,675
447,039
23,666
53,878,487
32,269,797
2,832,145
508,289
290,498
19,813
35,920,542
31 December
2022
45,323,207
7,678,128
746,265
640,837
69,718
54,458,155
31 December
2021
32,577,485
7,759,046
493,213
268,760
72,533
41,171,037
Cash in hand
Banks
- Demand deposits
- Time deposits
- Receivables from reverse repo
Allowance for impairment
Cash and cash equivalents
31 December 2022 31 December 2021
184
359
2,184,052
20,100,956
3,704,160
(28,853)
25,960,674
3,045,179
15,595,648
-
(12,346)
18,628,665
As of 31 December 2022, the average effective interest rates of TL, USD, EUR and RMB time deposits are
22.8%, 2.4%, 2.6% and 0.3% (31 December 2021: 27.7%, 1.3%, 0.5% and 0.3%) respectively. As of 31
December 2022, average maturity of time deposits is 22 days (31 December 2021: 29 days).
As of 31 December 2022, the effective interest rates of USD and EUR receivables from reverse repo are 3.0%
and 2.8% respectively. As of 31 December 2022, average maturity of receivables from reverse repo is 23 days.
As of 31 December 2022, the net amout of cash and cash equivalents is 25,940,066 TL excluding the interest
income accrual amounting to 20,608 TL.
6
TRADE RECEIVABLES AND PAYABLES
Current trade receivables
As of 31 December 2022 and 2021 the details of current trade receivables from non-related parties are as
follows:
Receivables from subscribers
Trade receivables and cheques received
Undue assigned contracted receivables
Provisions for doubtful receivables
31 December 2022 31 December 2021
3,175,200
1,137,499
467,693
(623,538)
4,156,854
4,463,294
2,303,696
518,184
(620,111)
6,665,062
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
installments.
When the monthly installment is billed to the subscriber, that portion is transferred to “Receivables from
subscribers”. The Group measures the undue assigned contracted receivables at amortized cost.
The significant part of trade receivables and notes receivables represent receivables from distributors and
receivables from customers and roaming receivables.
300 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
55
Translated into English from the report originally issued in Turkish
56
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 301
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
6
TRADE RECEIVABLES AND PAYABLES (cont’d)
Non-current trade receivables
As of 31 December 2022, the undue assigned contracted receivables related to handset campaigns, which will
be billed after one year amounted to 198,628 TL (31 December 2021: 169,570 TL) is recognized under non-
current trade receivable amounted to 298,759 TL (31 December 2021: 256,442 TL). Provision for long-term
doubtful trade receivables is 514 TL (31 December 2021: 725 TL).
As of 31 December 2022 and 2021, movements of allowance for doubtful trade receivables from non-related
parties and other assets are are as follows:
Trade Receivables
Other Assets
Opening balance
Period charge
Translation differences
Receivables written off
Amounts collected
Closing balance
Opening balance
Period charge
Translation differences
Receivables written off
Amounts collected
Closing balance
624,263
495,911
40,311
(340,514)
(199,346)
620,625
618,708
455,461
50,661
(300,377)
(200,190)
624,263
13,387
27,714
362
(49)
(5)
41,409
31 December 2022
637,650
523,625
40,673
(340,563)
(199,351)
662,034
8,672
4,250
528
(28)
(35)
13,387
31 December 2021
627,380
459,711
51,189
(300,405)
(200,225)
637,650
Trade Receivables
Other Assets
Short-term trade payables
As of 31 December 2022 and 2021, the detail of short-term trade payables to non-related parties are as follows:
Trade payables
Accrued selling and marketing expenses
Other
31 December 2022
6,898,412
192,500
490,373
7,581,285
31 December 2021
4,615,606
74,214
286,705
4,976,525
7
RECEIVABLES FROM FINANCE SECTOR OPERATIONS
Current receivables from finance sector operations
31 December 2022 31 December 2021
2,014,626
3,276,788
Non-current receivables from finance sector operations
31 December 2022 31 December 2021
137,559
285,138
Receivables from finance sector operations consist of contractual assignment receivables from subscribers
regarding Turkcell Finansman's consumer financing activities, receivables of Turkcell Ödeme and Paycell
LLC regarding payment services and electronic money services and Turkcell Sigorta's receivables related to
insurance agency services. These receivables are recognized at amortized cost using the effective interest rate
method.
Provision for credit loss:
General provisions
31 December 2022 31 December 2021
92,094
89,917
Movements of provision for doubtful receivables from finance sector operations are as follows at 31 December
2022 and 2021:
Opening balance
Period charge
Disposal
Receivables transferred by
receivable transfer contract (*)
Closing balance
31 December 2022 31 December 2021
154,548
66,678
(56,000)
92,094
88,410
(58,869)
(31,718)
(73,132)
89,917
92,094
(*) Turkcell Finansman signed a transfer of claim agreement in 2022 with a debt management company to
transfer some of its doubtful receivables stemming from the years 2016 and 2021. Transferred doubtful
receivables comprise of balances that Turkcell Finansman started legal proceedings for as well as procedings
without legal cases.
Trade payables arises from the ordinary course of business.
Accrued selling and marketing expenses mainly result from services received from non-related parties related
to the selling and marketing activities of the Group, but not yet invoiced.
302 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
57
Translated into English from the report originally issued in Turkish
58
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 303
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
8
OTHER RECEIVABLES AND PAYABLES
Current other receivables
As of 31 December 2022 and 2021, the detail of current other receivables from non-related parties are as
follows:
Receivables from Evrensel project
Deposits and guarantees given
Receivables from tax office
Other
Non-current other receivables
31 December 2022
137,734
3,198
1,904
2,753
145,589
31 December 2021
306,806
3,666
12,276
8,585
331,333
As of 31 December 2022 and 2021, the detail of non-current other receivables from non-related parties are as
follows:
Deposits and guarantees given
Other
Short-term other payables
31 December 2022
374,454
1,240
375,694
31 December 2021
162,921
59
162,980
As of 31 December 2022 and 2021, the detail of short-term other payables from non-related parties are as
follows:
Other taxes and other deductions payable
Accrued treasury share, Universal Service Fund and
contributions to the BTK’s expenses
Other
31 December 2022
1,381,243
31 December 2021
930,879
986,508
23,533
2,391,284
652,028
19,987
1,602,894
9
ASSETS ARISING FROM CUSTOMER CONTRACTS
Current assets arising from customer contracts
Contract assets from sale of goods and services contracts
Non-current assets arising from customer contracts
31 December 2022 31 December 2021
1,180,236
1,888,942
Contract assets from sale of goods and services contracts
31 December 2022 31 December 2021
67,505
67,054
The contract assets represent contract assets from subscribers. Billing periods differ because of high number
of subscribers. Revenue is accrued for services rendered but not billed at the end of each reporting period.
Contract assets also include contracted receivables related to handset campaigns, and the portion which will
be billed after one year is recognized under non-current contract assets.
Movements of allowance for doubtful assets arising from goods and service sales contracts are as follows at
31 December 2022 and 2021:
Opening balance
Charge for the period
Closing balance
31 December 2022 31 December 2021
5,243
998
6,241
6,241
1,105
7,346
10
INVENTORIES
As of 31 December 2022, inventories amounting to 277,670 TL which consist of mainly mobile phone and its
accessories, tablet, sim-cards and tower construction materials (31 December 2021: 260,535 TL).
11 PREPAID EXPENSES AND DEFERRED REVENUE
Short-term Prepaid Expenses
Short-term prepaid expenses to non-related parties amounting to 468,306 TL (31 December: 264,630 TL)
mainly consist of other prepaid expenses amounting to 367,458 TL (31 December: 167,678 TL) and the
advances given amounting to 100,848 TL (31 December 2021:96,952 TL) as of reporting date. A significant
portion of other prepaid expenses mainly consists of short-term sponsorship and insurance expenses.
Long-term Prepaid Expenses
Long-term prepaid expenses to non-related parties amounting to 2,423,644 TL (31 December 2021:1,009,239
TL) mainly consist of advances given for fixed asset acquisition amounting to 2,208,819 TL (31 December
2021: 855,490 TL), other prepaid expenses amounting to 194,894 TL (31 December 2021: 153,749 TL) and
business advanced given amounting to 19,931 TL as of reporting date. Other significant parts of long-term
prepaid expenses consist of long-term sponsorship and insurance expenses.
Short-term Deferred Revenue
Short-term deferred revenue from non-related parties amounting to 99,774 TL (31 December 2021: 93,034
TL) mainly consists of other deferred revenue amounting to 73,571 TL (31 December 2021: 61,348 TL) and
advances taken amounting to 26,203 TL (31 December 2021: 31,686 TL) as of reporting date. Other significant
parts of long- term prepaid expenses consist of employee salary promotions and rent income.
304 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
59
Translated into English from the report originally issued in Turkish
60
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 305
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
12
INVESTMENTS VALUED BY EQUITY METHOD
13
INVESTMENT PROPERTIES (cont’d)
Joint Ventures and Associates
The net asset amounts corresponding on Group’s shares of the investments valued by equity method in the
financial statements are as follows:
a) Joint Ventures
Sofra
b) Associates
TOGG
31 December 2022 31 December 2021
13,202
6,421
31 December 2022 31 December 2021
665,382
1,116,522
The movement investments valued by equity method is as follows:
Opening balance
Shares of profit /(loss) from investments
valued by equity method
Contribution to share capital
Closing balance
13
INVESTMENT PROPERTIES
31 December 2022 31 December 2021
103,926
678,584
(71,416)
515,775
1,122,943
90,090
484,568
678,584
Depreciation expenses amounting 2,417 TL for the year ended 31 December 2022 (31 December 2021 : 1,109
TL) are recognized under cost of revenue.
Fair value measurement of the Group’s investment properties
As of 31 December 2022, the fair values of the Group's investment properties are measured by independent
valuation companies authorized by the Capital Markets Board, which perform the valuation of investment
properties in accordance with the capital market legislation and have sufficient experience and qualifications
in the fair value measurement of investment in the related regions. This valuation companies use different
methods to measure the fair values of investment properties (discounted cash flow, market comparison) and
these methods are calculated by considering applicability to real estates.
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 2022 is 11,489 TL (31 December
2021: 6,872 TL). There is no direct operating expense for investment properties during the year ended 31
December 2022 (31 December 2021:None).
As of 31 December 2022 and 2021, the group’s investment properties and their fair value hierarchy are as
follows:
31 December 2022
Level 1
Level 2
Level 3
Investment properties in Gebze free zone
-
-
98,860
As of 31 December 2022 and 2021, the movements of investment properties are as follows:
31 December 2022
31 December 2021
Investment properties in Ankara
-
58,500
-
Cost
Opening balance
Transfer
Disposals
Closing balance
Accumulated depreciation
Opening balance
Transfer
Additions
Disposals
Closing balance
Net book value
51,100
51,321
(38,593)
63,828
34,512
40,990
2,417
(25,690)
52,229
11,599
37,079
14,021
-
51,100
23,404
9,999
1,109
-
34,512
16,588
Investment properties in Adana
-
13,000
-
Investment properties in İstanbul
-
6,500
-
Investment properties in Aydın
Total
-
-
8,650
86,650
-
98,860
Valuation
Method
Discounted cash
flow
Market
approach
Market
approach
Market
approach
Market
approach
306 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
61
Translated into English from the report originally issued in Turkish
62
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 307
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
13
INVESTMENT PROPERTIES (cont’d)
31 December 2021
Level 1
Level 2
Level 3
Investment properties in Gebze free zone
-
-
52,725
Investment properties in Ankara
-
32,315
-
Investment properties in Adana
-
6,705
-
Investment properties in İstanbul
-
3,765
-
Investment properties in Aydın
Total
-
-
3,600
46,385
-
52,725
Valuation
Method
Discounted cash
flow
Market
approach
Market
approach
Market
approach
Market
approach
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
14 PROPERTY, PLANT AND EQUIPMENT
The movements of property, plant and equipment for the year ended 31 December 2022, are as follows:
Cost
Network infrastructure (All operational)
Land and buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant
Construction in progress
Accumulated depreciation and impairment
Network infrastructure (All operational)
Buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant
1 January
2022
34,307,250
1,720,401
1,102,084
51,138
329,758
103,750
810,568
38,424,949
18,796,491
443,425
821,201
47,105
312,026
1,922
20,422,170
Addition
2,480,060
117,046
306,608
-
23,147
-
4,647,482
7,574,343
Disposals
(734,492)
(1,810)
(62,905)
(209)
(4,317)
-
(6,468)
(810,201)
Transfer
3,759,821
2,118
30,321
569
646
-
(3,806,920)
(13,445)
Impairment
/reversal
-
-
-
-
-
-
7,053
7,053
3,375,844
83,534
91,751
2,837
6,923
5,241
3,566,130
(615,784)
-
(52,436)
(174)
(3,996)
-
(672,390)
-
-
-
-
-
-
-
166,203
211
7,978
-
25
-
174,417
Transfer to
investment
property
Foreign
currency
translations
(51,321)
-
1,166,570
5,023
23,214
3,841
1,207
-
19,890
1,219,745
-
-
-
-
-
(51,321)
-
(40,990)
967,414
5,440
20,419
3,849
620
-
997,742
-
-
-
-
(40,990)
31 December
2022
40,979,209
1,791,457
1,399,322
55,339
350,441
103,750
1,671,605
46,351,123
22,690,168
491,620
888,913
53,617
315,598
7,163
24,447,079
Property, plant and equipment, net
18,002,779
4,008,213
(137,811)
(13,445)
(167,364)
(10,331)
222,003
21,904,044
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
Translated into English from the report originally issued in Turkish
64
14 PROPERTY, PLANT AND EQUIPMENT (cont’d)
Significant unobservable inputs and sensitivity of fair values of respective investment properties are as follows:
The movements of property, plant and equipment for the year ended 31 December 2021, are as follows:
In the “discounted cash flow” 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.
Cost
Network infrastructure (All operational)
Land and buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant (Note 3)
Construction in progress
Accumulated depreciation and
impairment
Network infrastructure (All operational)
Buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant (Note 3)
1 January
2021
24,923,118
1,485,249
955,894
44,999
342,093
-
681,299
28,432,652
Addition
1,415,616
40,466
87,930
2,162
8,849
-
4,217,377
5,772,400
Disposals
(435,571)
(10,191)
(25,762)
(2,399)
(32,476)
-
(4,817)
(511,216)
Transfer
4,084,711
185,428
16,858
-
546
-
(4,298,421)
(10,878)
Acquisition
through
business
combination
-
-
27
156
-
103,750
-
103,933
13,090,823
354,312
717,871
40,027
326,889
-
14,529,922
2,762,649
82,528
66,229
3,373
7,698
1,922
2,924,399
(372,950)
(3,804)
(21,141)
(2,399)
(31,026)
-
(431,320)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Impairment
/reversal
-
-
-
-
-
-
(20,000)
(20,000)
4,493
-
-
-
-
-
4,493
Transfer to
investment
property
-
(14,021)
-
-
-
-
-
(14,021)
Foreign
currency
translations
4,319,376
33,470
67,137
6,220
10,746
-
235,130
4,672,079
31 December
2021
34,307,250
1,720,401
1,102,084
51,138
329,758
103,750
810,568
38,424,949
-
(9,999)
-
-
-
-
(9,999)
3,311,476
20,388
58,242
6,104
8,465
-
3,404,675
18,796,491
443,425
821,201
47,105
312,026
1,922
20,422,170
Property, plant and equipment, net
13,902,730
2,848,001
(79,896)
(10,878)
103,933
(24,493)
(4,022)
1,267,404
18,002,779
Depreciation expenses for the years ended 31 December 2022 and 2021 amounting to 3,733,494 TL, 2,948,892 TL respectively including impairment losses are recognized in cost of
revenue.
Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. Impairment losses on property, plant and
equipment for the year ended 31 December 2022 are 167,364 TL and are recognized under depreciation expenses (31 December 2021: 24,493 TL)
Translated into English from the report originally issued in Turkish
65
308 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
63
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 309
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
15
INTANGIBLE ASSETS
The movements of intangible assets for the year ended 31 December 2022, are as follows:
Cost
GSM and telecommunication licenses
Computer softwares
Transmission line softwares
Indefeasible right of usage
Brand name
Customer base
Goodwill
Subscriber acquisition cost
Electricity production power plant (Note 3)
Other
Construction in progress
Accumulated amortization
GSM and telecommunication licenses
Computer softwares
Transmission line softwares
Indefeasible right of usage
Brand name
Customer base
Subscriber acquisition cost
Electricity production power plant (Note 3)
Other
1 January 2022
10,742,945
14,437,848
89,263
166,122
12,211
15,512
48,421
6,645,600
182,881
256,282
15,743
32,612,828
5,452,949
9,008,362
79,919
68,506
7,345
13,522
3,165,629
3,382
151,435
17,951,049
Additions
244
4,058,103
544
3,345
371
-
-
2,531,415
-
108,673
166,607
6,869,302
767,281
1,657,392
4,460
11,847
71
437
1,421,246
-
92,828
3,955,562
Disposals
(1,919)
(167,559)
-
-
(331)
-
-
(67,744)
-
(445)
(226)
(238,224)
(1,919)
(164,839)
-
-
(239)
-
(67,744)
-
(445)
(235,186)
Transfer
913
180,427
-
-
75
-
-
-
-
2
(167,972)
13,445
Foreign
currency
translations
177,644
178,120
Impairment
-
-
-
-
-
-
-
-
-
4,125
-
631
-
403,399
-
31 December 2022
10,919,827
18,686,939
89,807
169,467
13,893
15,512
48,421
9,150,583
-
182,881
368,637
14,783
39,660,750
-
-
1,567
-
-
41,312
-
-
-
-
-
-
-
-
-
-
307
30,730
(10,077)
-
-
-
-
-
331
21,291
76,692
116,863
-
-
13
31,805
-
654
226,027
6,295,310
10,648,508
74,302
80,353
7,190
13,959
4,550,936
3,382
244,803
21,918,743
-
Intangible assets, net
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
(21,291)
(3,038)
14,661,779
2,913,740
177,372
13,445
17,742,007
15
INTANGIBLE ASSETS (cont’d)
The movements of intangible assets for the year ended 31 December 2021, are as follows:
Translated into English from the report originally issued in Turkish
66
Cost
GSM and telecommunication licenses
Computer softwares
Transmission line softwares
Indefeasible right of usage
Brand name
Customer base
Goodwill
Subscriber acquisition cost
Electricity production power plant (Note 3)
Other
Construction in progress
Accumulated amortization
GSM and telecommunication licenses
Computer softwares
Transmission line softwares
Indefeasible right of usage
Brand name
Customer base
Subscriber acquisition cost
Electricity production power plant (Note 3)
Other
Intangible assets, net
1 January
2021
9,188,733
11,835,827
88,499
159,995
9,483
15,512
40,010
4,787,853
-
186,743
1,142
26,313,797
4,253,203
7,304,194
79,073
56,974
7,040
13,085
2,133,755
98,689
13,946,013
12,367,784
Additions
279
2,003,373
764
6,127
534
-
-
1,804,368
-
63,722
135,067
4,014,234
662,888
1,324,586
846
11,532
32
437
995,510
3,382
52,106
3,051,319
962,915
Disposals
(830)
(73,673)
-
-
(48)
-
-
(56,666)
-
-
(551)
(131,768)
(830)
(73,471)
-
-
(33)
(56,666)
(131,000)
(768)
-
-
-
-
Acquisition
through
business
combinations
-
-
-
-
-
-
8,411
-
182,881
-
-
191,292
-
-
-
-
-
-
-
-
-
-
Transfer
18
131,439
-
-
592
-
-
-
-
(457)
(120,714)
10,878
-
-
-
-
-
-
-
-
-
-
Foreign
currency
translations
1,554,745
540,882
Impairment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,650
-
-
6,274
799
2,214,395
110,045
31 December
2021
10,742,945
14,437,848
89,263
166,122
12,211
15,512
48,421
6,645,600
182,881
256,282
15,743
32,612,828
-
26
15,319
-
-
-
-
-
-
-
15,345
537,662
437,734
-
-
306
-
93,030
-
640
1,069,372
1,145,023
5,452,949
9,008,362
79,919
68,506
7,345
13,522
3,165,629
3,382
151,435
17,951,049
14,661,779
10,878
191,292
(15,345)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
15
INTANGIBLE ASSETS (cont’d)
Turkcell
As of 31 December 2022, net book value of licenses 2G, 3G and 4.5G are 11,496 TL, 237,391 TL, 2,469,941
TL respectively (31 December 2021: 57,478 TL; 276,957 TL; 2,882,117 TL).
lifecell
Lifecell has 9 operation licenses which are one 3G operation license, one long distance and international call
and seven PSTN operation license in different regions. As o f 31 December 2022, it has 23 licenses of radio
frequency usage rights which are related to IMT (LTE-2600, LTE-1800, LTE-900), IMT-2000 (UMTS), GSM-
900, GSM-1800, microwave radio relay, and broad band radio access. Also, it has 3 NCD code for mobile
network, 29 permits for short numbers, 10 permits for SS-7 code (6 regional and 4 international), 1 permit
for MNC, 8 permits for PSTN licenses in local regions. In addition, it has two service code authorizations for
alternative call forward about international and long distance calls and also has authorization for “800” which
is global telecommunication service . The net book value of lifecell’s licenses is 1,903,187 TL (31 December
2021: 2,054,249 TL).
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
16 RIGHT-OF-USE ASSETS
Closing balances and depreciation and amortization expenses of right of use assets for the years ended 31 December 2022 and 2021 are as below:
Balance at 1 January 2022
Depreciation and amortization
charge
for the year
Balance at 31 December 2022
Balance at 1 January 2021
Depreciation and amortization
charge
for the year
Balance at 31 December 2021
Site Rent
Building
Network
equipment
Vehicle Right of way
1,521,783
283,175
262,267
135,530
45,307
License
631,630
Other
Total
103,956
2,983,648
(969,241)
(87,025)
(380,927)
(58,973)
(31,105)
(112,764)
(125,213)
(1,765,248)
1,698,248
316,179
51,291
88,141
159,984
628,890
119,565
3,062,298
Site Rent
Building
Network
equipment
Vehicle Right of way
1,182,847
306,343
218,104
159,769
24,956
License
376,693
Other
Total
111,462
2,380,174
(688,321)
(67,500)
(297,333)
(50,291)
(19,575)
(58,087)
(94,141)
(1,275,248)
1,521,783
283,175
262,267
135,530
45,307
631,630
103,956
2,983,648
As of 31 December 2022, right of use assets are amounting to 1,918,438 TL (31 December 2021: 1,692,693 TL) are capitalized by the Group. Interest expense on lease
liabilities for the year ended 31 December 2022 is 508,721 TL (31 December 2021: 359,240 TL); depreciation and amortization expenses are 1,765,248 TL (31 December
2021: 1,275,248 TL) and are recognized in cost of revenue.
Amortisation including impairment losses is respectively 3,976,853 TL and 3,066,664 TL srecognized under cost of revenue.
As of 31 December 2022, impairment of intangible assets amounting to 21,291 TL (31 December 2021: 15,345 TL). That amount is recognized among depreciation expense under cost of revenue. Computer
softwares include, intra-group software development costs that meet the criteria of intangible assets. As of 31 December 2022, computer software that created intra-group amounting to 546,260 TL (31
December 2021:345,369 TL).
Research and development expenses amounting to 66,326 TL recognized under cost of revenue (31 December 2021:44,347 TL).
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67
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69
310 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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68
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 311
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
17 GOODWILL
As of 31 December 2022, the Group has a total of 48,421 TL in goodwill related to Turkcell Superonline
amounting to 32,834 TL, Boyut Enerji amounting to 8,411 TL (Note 3), and Yaani amounting to 7,176 TL (31
December 2021: 48,421 TL) recognized in its financial statements. Since the impairment test for these goodwill
amounts is not material in terms of financial statements, it has not been performed.
18
IMPAIRMENT OF ASSETS
Impairment of assets:
The Group evaluates whether there is any indication of impairment for an asset on the relevant reporting date.
If such an indication exists, the asset's recoverable amount is estimated. If the recoverable amount of the asset
or any cash-generated unit to which the asset belongs exceeds its carrying amount, no impairment loss is
recognized.
As of 31 December 2022, due to ongoing war in Ukraine, impairment test of lifecell’s tangible and intangible
assets was performed using the assumption that lifecell was the CGU. As of 31 December 2022, the recoverable
amount of lifecell is determined based on fair value less cost of disposal calculations. As the recoverable
amount of CGU was higher than its carrying amount, no impairment charge was recognized. (31 December
2021: No indication of impairment was found in any cash-generated unit of the Group and no impairment test
was performed).
Sensitivity analysis was performed on the change in weighted average cost of capital (WACC) by +0.5%/-
0.5%. Besides, considering of the potential effect of Ukraine-Russia war on lifecell’s business plans, sensitivity
analysis was performed on the change in subscribers, average revenue per user (ARPU) and EBITDA margin
by 1.0%-5.0%. No material sensitivity has been noted.
As of 31 December 2022, the assumptions used in recoverable amount calculations of lifecell were:
Impairment test was performed based on lifecell’s business plans covering a six-year period. A post-tax
WACC rate of 37.7% - 39.0% for the period from 2023 to 2028, and a terminal growth rate of 5.0% were used.
19 BORROWING COSTS
When assets require a substantial amount of time to be prepared for use or sale (qualified assets), borrowing
costs that are directly related to the acquisition, construction, or production of the relevant asset are considered
part of the asset's cost until it is ready to be used or sold. All other borrowing costs are recognized in the
statement of profit or loss in the period in which they are incurred.
Total borrowing cost included in the cost of the qualified assets is 216,668 TL for the year ended 31 December
2022 (31 December 2021: 183,951 TL). The capitalization rate for borrowings is 18.3% (31 December 2021:
7.6%).
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
20.1 Short-term Provisions
As of 31 December 2022 and 2021, the movements of other short-term provisions are as follows:
Balance at 1 January 2022
Provisions recognized
Payments
Transfers from long-term provisions
Effect of changes in exchange rates
Balance at 31 December 2022
Balance at 1 January 2021
Provisions recognized
Payments
Transfers from long-term provisions
Effect of changes in exchange rates
Balance at 31 December 2021
Legal (**)
67,021
(90)
(52,923)
17,862
-
31,870
Legal (**)
253,633
221,453
(420,663)
10,198
2,400
67,021
Bonus (*)
506,641
919,750
(706,407)
-
2,079
722,063
Bonus (*)
376,655
659,066
(567,025)
-
37,945
506,641
(*) Includes share-based payment. Refer to Note 22 for details.
(**) Refer to Note 20.3 for details.
20.2 Long-Term Provisions
As of 31 December 2022 and 2021, the movements of other long-term provisions are as follows:
Balance at 1 January 2022
Provisions recognized
Payments
Transfers to short-term provisions
Effect of changes in exchange rates
Remeasurement
Discounting effect
Balance at 31 December 2022
Balance at 1 January 2021
Provisions recognized
Payments
Transfers to short-term provisions
Effect of changes in exchange rates
Remeasurement
Discounting effect
Balance at 31 December 2021
Obligations for
dismantling,
removing and
site restoration
596,135
10,271
(6,106)
-
42,432
208,930
69,373
921,035
Obligations for
dismantling,
removing and
site restoration
395,037
21,477
(3,068)
-
145,337
(375)
37,727
596,135
Legal
19,662
45,892
-
(17,862)
-
-
-
47,692
Legal
16,894
12,966
-
(10,198)
-
-
-
19,662
Total
573,662
919,660
(759,330)
17,862
2,079
753,933
Total
630,288
880,519
(987,688)
10,198
40,345
573,662
Total
615,797
56,163
(6,106)
(17,862)
42,432
208,930
69,373
968,727
Total
411,931
34,443
(3,068)
(10,198)
145,337
(375)
37,727
615,797
Obligations for dismantling, removing and site restoration are discounted using a discount rate of 14.4% at 31
December 2022 (31 December 2021: 17.3%).
312 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 313
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
20.2 Long-Term Provisions (cont’d)
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 the 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.
20.3 Turkcell’s Contingent Assets and Liabilities
The following disclosures comprise of material legal lawsuits, investigations and in-depth investigations
against the Company.
Disputes on Special Communication Tax and Value Added Tax
SCT Investigation of 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 80,355 TL 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. As a result of the appeal process, The Council of State Plenary
Session of the Tax Law Chambers, approved the first instance court decision in favor of the Company with its
definitive judgment. Thus, the case was finalized in favor of the Company, the assessment of the SCT for the
year 2011 was structured within the scope of Law No. 6736 and 47,534 TL overpaid amount was returned to
the Company in 2021 by deduction from the debts of the Company to the State. On the other hand, upon the
favorable decision taken in this case, a lawsuit was filed for the cancellation of the tacit rejection of the
restructure request of the SCT assessment with tax penalty for the period 2011 within the scope of Law No.
6736 and request of collection of 47,405 TL principal receivable and 36,000 TL damage accrued with a
deferment interest until the collection date.
The Court partially accepted the case; and decided to cancel the tacit rejection act for the 47,269 TL part, and
to return this amount to the Company together with the interest to be calculated at the deferred interest rate
determined in accordance with the Law No. 6183 as of the collection date. The parties appealed the decision
before Regional Administrative Court regarding the parts against them.
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.
20.3 Turkcell’s Contingent Assets and Liabilities (cont’d)
Disputes on Special Communication Tax and Value Added Tax (cont’d)
SCT Investigation of 2011 (cont’d)
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. In 2021, The Court
decided there is no need to make ruling regarding the essence of the cases, due to the fact that the amount of
the SCT assessment for the year 2011, which are the subject of the lawsuit, was structured within the scope of
the Law No. 6736.
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 91,942 TL, 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. The Court rejected the case. The Company appealed the
decision. The appeal process is pending. 47,780 TL part of the administrative fine amounting to 91,942 TL has
been deducted from the receivables that the Company has earned in the case of cancellation of the application
for restructuring the 2011 SCT assessment within the scope of Law No. 6736 in 2021. The remaining 44,162
TL part of the administrative fine was paid in April 2022 upon the request of the administration.
Three private companies filed a lawsuits against the Company in relation with this case claiming in total of
112,084 TL 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 110,484 TL 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 Court of
Justice. The Regional Court of Justice decided to revoke the decision of the first instance court, stating that a
new decision should be made after the procedural actions within the scope of the file were re-executed and the
expert report was received. The expert report has been submitted to its file, and the Company has submitted
its statements and objections regarding the report in due time.
In accordance with our objections, The Court decided to obtain an expert report from a new expert committee,
mentioning that there was a clear contradiction between the expert reports in the case. The expert report within
this scope has been submitted to its file, and the Company has submitted its statements and objections regarding
the report in due time.
314 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
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TURKCELL 2022 INTEGRATED ANNUAL REPORT | 315
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
20.3 Turkcell’s Contingent Assets and Liabilities (cont’d)
20.3 Turkcell’s Contingent Assets and Liabilities (cont’d)
Disputes regarding the Law on the Protection of Competition (cont’d)
BTK – Investigation Regarding the R&D Obligations (Period of 2013-2016)
During the hearing of the case dated 22 June 2022, the court partially accepted the case and ruled
reimbursement of 215,555 TL (three times of the actual damage of 71,851 TL loss pursuant to the Act on
Protection of Competition, including 40,600 TL previous year loss, 14,335 TL fixed asset loss, 14,163 TL
leasing, exchange difference and financing loss, and 2,751 TL profit loss) together with the discount interest
TL applicable from the date of the case to Demirören Dağıtım Satış Pazarlama Matbaacılık ve Tahsilat
Sistemleri A.Ş, June 2012, and partially rejected the case for the remaining part.
The reasoned decision notified to the Company. Demirören made the decision the subject of enforcement
proceedings. Turkcell appealed the decision before Regional Court of Justice and has suspended the execution
proceedings until the appeal proceedings are concluded by submitting a letter of guarantee to the file. Also
Demirören appealed the decision before Regional Court of Justice and the Company replied this appeal in due
time. An application for complaint has been filed by company with the request for cancellation of the
enforcement order and the enforcement proceedings initiated by Demirören.
The court decided to accept company's complaint and cancelled the interest charge of 34,142 TL requested in
the enforcement order. As a result of the appeal examination made by the Regional Court of Appeal, Turkcell's
appeal request was accepted and the decision of the first instance court was revoked.
The file was returned to the first instance court for a re-decision within the scope of the removal decision, and
the appeal request of Demirören were not examined at this stage.
Among these cases, in the case filed for the compensation of total 500 TL material damages together with
compensation amounting to three times of the damage and interest, the expert report has been submitted to its
file, and the Company has submitted its statements and objections regarding the report in due time. In
accordance with our objections, The Court decided to obtain an expert report from a new expert committee.
The other case is 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 the Company 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 91,942 TL 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 61,294 TL with its decision.
The aforementioned fine that amount of 61,294 TL was paid with twenty five percent discount on 9 April
2020, in the amount of 45,971 TL. 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. The Court rejected
the case. The Company appealed the case before Regional Administrative Court. The Regional Administrative
Court rejected the appeal request. The Company appealed the decision in due time. The appeal process is
pending.
BTK 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 BTK has decided to imposed an administrative fine of 18,031 TL to Turkcell.
The administrative fine notified to the Company on 29 January 2021 and was paid on 26 February 2021 as
13,523 TL 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. The Court rejected the 8 of these cases. The Company
appealed the decisions before Regional Administrative Court in due time. Other cases are pending.
BTK – Investigation Regarding the R&D Obligations (Period of 2016-2017)
For the period of 27 October 2016-27 October 2017; the BTKcarried out an investigation in order to examine
whether Our Company fulfills its obligations arising from relevant legislation about R&D Center and SME,
and using of Domestic Goods Certified products. As a result of the investigation BTK has decided to imposed
an administrative fine of 31,139 TL to the Company. The administrative fine notified to Turkcell on 29 January
2021 and was paid on 26 February 2021 as 23,354 TL 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. The
Court rejected the four of these cases. The Company appealed the decisions before Regional Administrative
Court in due time. Other cases are pending.
BTK – Investigation on 3G and 4.5G Service Quality Obligations
BTK initiated an investigation to examine whether the 2018 Q4 – 2019 Q3 term notifications meet the criteria
and target values defined in the service quality legislation and whether or not our obligations about the service
quality criteria which is set in the IMT Certificate of Authority have been fulfilled.
As a result of the investigation BTK has decided to impose an administrative fine of 3,622 TL to Turkcell. The
administrative fine notified to the Company on 20 January 2022 and was paid on 17 March 2022 as 2,716 TL
with taking on the account the early payment discount (1/4).
After notification of the Board Decision to the Company, the Company applied to BTK with the demand of
withdraw of the Board Decision. The application of the Company was tacitly rejected by BTK. The Company
filed five separate lawsuits in total for the cancellation of the related transactions and administrative fines. The
cases are pending.
BTK – Inspection on Service Quality (2020 H2)
BTK initiated an investigation due to exceeding the target value determined for “Call Failure Rate” and “Call
Blocking Rate” criteria. As a result of the investigation BTK has decided to impose an administrative fine of
568 TL to the Company. The administrative fine notified to the Company on 20 January 2022 and was paid
on 17 March 2022 as TL 426 with taking on the account the early payment discount (1/4). After notification
of the Board Decision to the Company, the Company applied to BTK with the demand of withdraw of the
Board Decision. The application of the Company was tacitly rejected by BTK. The Company filed a lawsuit
for the cancellation of the related transaction and administrative fine. The case is pending.
316 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
74
Translated into English from the report originally issued in Turkish
75
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 317
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
20 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
20.3 Turkcell’s Contingent Assets and Liabilities (cont’d)
BTK – Investigation of 3G and 4,5G Coverage Obligations (cont’d)
As a result of the investigation initiated to audit our 3N coverage area obligations determined in accordance
with Article 6 of the Concession Agreement titled "Coverage liability" and the relevant legislation, ii) audit
our 4.5N coverage obligations for highways, high-speed train lines and tunnels over 1 (one) kilometer long,
which we are obliged to cover within the framework of the 4.5N Authorization Certificate and the relevant
legislation; BTK has decided to impose an administrative fine of 1,459 TL. The fine, which was notified to
the Company on 2 September 2022, was paid as 1,094 TL (1/4 discounted) on 27 October 2022. An application
has been made to the BTK for the revocation of the decision. The application was tacitly rejected by the BTK
by not responding within 30 days.
BTK – Directory Assistance Service Investigation
As a result of the investigation initiated in order to inspect the compliance of our Company’s directory
assistance services with the relevant legislation, BTK has decided to impose an administrative fine of 1,250
TL on the Company. The fine, which was notified to the Company on 28 July 2022, was paid as 938 TL (1/4
discounted) on 23 September 2022 by taking advantage of the early payment discount. An application was
made to the BTK for the revocation of the decision and tacitly rejected by BTK. The Company filed a lawsuit
for the cancellation of the related transaction and administrative fine.
BTK – Refunds Investigation
As a result of the investigation initiated to examine the compliance of the activities carried out within the scope
of the Board Decisions dated 01.03.2018 and numbered 2018/DK-THD/58(Board Decision on Refunds to
Subscribers), dated 12.04.2018 and numbered 2018/DK-THD/116(Refund/Use of Remaining Amount on
Prepaid Lines) and dated 16.04.2018 and numbered 2018/DK-THD/123(Transferring Non-refundable
Amounts on Prepaid Lines as Universal Service Contribution),
(i) The BTK has decided that the unpaid 412 TL will be transferred to the Ministry, along with the late
fee from 14 April 2020 and inform the BTK about this transfer.
(ii) The BTK has decided to transfer the 161 TL that could not be refunded to subscribers regarding the
period between 27.04.2017-31.05.2018, which were not fully paid to the Ministry. The BTK has also
decided to transfer the refund amounts related to the period between 01.04.2010-27.04.2017 -along
with the late fee from 28 July 2020- and to inform the BTK about this matter.
(iii) The BTK has decided to impose an administrative fine of 5,680 TL in total.
The fine, which was notified to the Company l on 2 January 2023, was paid as 4,260 TL (1/4 discounted) on
31 January 2023 by taking advantage of the early payment discount. Additionally, an application (İYUK 11)
will be made to the BTK with request for re-evalutaion and revocation of the decison.
318 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
76
20.3 Turkcell’s Contingent Assets and Liabilities (cont’d)
BTK – Sub-Agency/Dealership Investigation
As a result of examinations carried out by the BTK due to large number of complaints from consumers who
were victimized by being called illegally, the BTK started an investigation to determine whether sub-dealers
were used. As a result of the investigation, the BTK decided to impose a 894 TL administrative fine on Our
Company. The fine, which was notified to the Company on 26 January 2023, is planned to be paid as 625 TL
(1/4 discounted) on 24 February 2023 by taking advantage of the early payment discount. Additionally, an
application (İYUK 11) will be made to the BTK with request for re-evalutaion and revocation of the decison.
BTK – Fizy Service Investigation
The BTK initiated an investigation to examine the «Fizy» Service, in the scope of service delivery, the
information given to the consumers, the purchasing methods and the complaints selected as examples. As a
result of the investigation; (i) the BTK has decided to impose an administrative fine of 1,682 TL on Our
Company, (ii) the BTK has decided to give a warning to Our Company due to the implementation of the double
opt-out method in the cancellation process of consumers, (iii) the BTK has also decided that the additional
amounts reflected to subscribers due to the aforementioned violations will be refunded to consumers within
the framework of the relevant legislation. The fine, which was notified to the Company on 26 January 2023,
is planned to be paid as 1,262 TL (1/4 discounted) on 24 February 2023 by taking advantage of the early
payment discount. Additionally, an application (İYUK 11) will be made to the BTK with request for re-
evalutaion and revocation of the decison.
Other ongoing lawsuits and tax investigations
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, 128,429 TL 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 13,465 TL 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.
On the other hand, mobile payment services provided by the Company 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 the Company Odeme in the amount of 18,763 TL. the
Company 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. The defendant appealed the decision before the Regional
Administrative Court. The Company replied this appeal request in due time. The appeal process is pending.
While this case was ongoing, the Tax Office sent a payment order for collection of the aforementioned
administrative fine. the Company 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. The defendant appealed the
decision before the Council of State. The Company replied this request in due time. The appeal process is
pending.
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 4,629 TL provision is recognized in
the consolidated financial statements as at and for the period ended 31 December 2022 (31 December 2021:
53,603 TL)
Translated into English from the report originally issued in Turkish
77
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 319
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
21 COMMITMENTS
(a) Bank loans and guarantees given:
Collaterals, pledges and mortgages (“CPM”) given by the Group as of 31 December 2022 and 31 December 2021 are as follows:
A. CPM’s given in the behalf of own Company
Collateral
Pledge
Mortgages
B. CPM’s given on behalf of the fully consolidated
subsidiaries
Collateral
Pledge
Mortgages
C. CPM’s given on behalf of third parties or ordinary
course of business
Collateral
Pledge
Mortgages
D. Total amount of other CPM’s given
i. Total amount of CPM’s given on behalf of the parent
Collateral
Pledge
Mortgages
ii.Total amount of CPM’s given on behalf of the Group
companies which are not in scope of B and C
Collateral
Pledge
Mortgages
iii.Total amount of CPM’s given on behalf of third parties
which are not in scope of C
Collateral
Pledge
Mortgages
Total CPM
TL
Equivalents
5,871,529
5,871,529
-
-
3,204,246
3,204,246
-
-
31 December 2022
TL
3,102,872
3,102,872
-
-
USD
14,628
14,628
-
-
EUR
UAH
125,159
125,159
-
-
208
208
-
-
42,025
-
32,028
3,481,128
-
-
-
42,025
-
-
32,028
-
-
3,481,128
-
-
31 December 2021
TL
Equivalents
3,021,743
3,021,743
-
-
2,946,257
2,946,257
-
-
TL
912,672
912,672
-
-
-
-
-
-
USD
17,022
17,022
-
-
48,109
48,109
-
-
EUR
UAH
124,751
124,751
-
-
213
213
-
-
40,020
3,481,643
40,020
-
-
3,481,643
-
-
748,536
748,536
748,536
-
-
-
748,536
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
968,046
968,046
-
-
-
-
968,046
-
-
-
968,046
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,824,311
-
-
-
3,851,408
-
-
-
56,653
-
-
-
157,187
-
-
-
3,481,336
-
-
-
6,936,046
-
-
-
1,880,718
-
-
-
65,131
-
-
-
164,771
-
-
-
3,481,856
Since there are not any CPM’s mentioned in D item, the ratio to the total equity is not stated.
Translated into English from the report originally issued in Turkish
78
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
21 COMMITMENTS (cont’d)
(b) Purchase commitments
As of 31 December 2022, outstanding purchase commitments with respect to property, plant and equipment,
inventory, advertising and sponsorship amount to 3,927,476 TL (31 December 2021: 1,311,359 TL).
Payments for these commitments will be made within 4 years.
BeST has an investment commitment covers the years 2022-2032 with a total investment amount of not less
than 100,000 USD equivalent to 1,869,830 TL in accordance with the aggreement which signed between the
Republic of Belarus, BeST and the Company on 30 November 2022.
(c) Resale commitments
The Company has resale commitment regarding to reverse repo receivables amounting 3,704,160 TL as of 31
December 2022 (31 December 2021:None).
22 EMPLOYEE BENEFITS
Payables related to employee benefits
As of 31 December 2022 ve 2021, payables related
to employee benefits are as follows:
Payables related to social security contributions
Accrual personnel salaries
Other
31 December 2022 31 December 2021
68,892
67,010
4,728
140,630
226,880
119,347
8,148
354,375
Long-term provisions related to employee benefits
The Group’s accounting policies require actuarial valuation methods to estimate employee termination
benefits. Provision for employee termination benefits is calculated annually by independent actuaries using the
projected unit credit method and by estimating the present value of future probable obligation of the Group
and its subsidiaries in Turkey arising from retirement of employees and recognized in financial statements.
Discount rate used for calculating employee termination benefit as of 31 December 2022 is 0.6% (31 December
2021: 2.9%).
The main assumption is that the ceiling obligation set for each annual service will increase in proportion to
inflation. Thus, the discount rate applied reflects the real rate after adjusting for the expected effects of
inflation. As of 31 December 2022, the Group's employee termination benefit liability is calculated at 15.4 TL
due to the expectation that the ceiling price increases in the coming years will exceed inflation (31 December
2021: 8.2 TL). As of 31 December 2022 and 2021, the long-term provision for employee benefits includes
provisions for employee termination benefit and unused vacation. The provision for unused vacation as of 31
December 2022 and 2021 is 199,275 TL and 100,495 TL, respectively.
320 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
79
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 321
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
22 EMPLOYEE BENEFITS (cont’d)
Long-term provisions related to employee benefits (cont’d)
Movements in provision for employee termination benefits are as follows:
Opening balance
Additions
Actuarial loss/(gain)
Payments
Discount expense
Acquisiton through business combinations
Closing balance
31 December 2022 31 December 2021
301,459
62,749
163,588
(51,138)
37,383
77
514,118
514,118
87,258
950,686
(57,909)
96,603
-
1,590,756
As of 31 December 2022 and 2021, the sensitivity analysis regarding to actuarial assumptions made during the
calculation of employee termination benefit provision is as follows:
23 LIABILITIES ARISING FROM CUSTOMER CONTRACTS
Short-term Liabilities Arising from Goods and Service Sales Contracts
Contract liabilities from sale of goods and services contracts
31 December 2022
706,046
31 December 2021
459,289
Long-term Liabilities Arising from Goods and Service Sales Contracts
Contract liabilities from sale of goods and services contracts
31 December 2022
261,328
31 December 2021
170,445
Contract liabilities primarily consist 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 459,289
TL (2021: 315,070 TL).
As of 31 December 2022, the details of unsatisfied contract liabilities are as follows:
31 December 2022
Sensivity Level
Change in assumption
Impact on provision for employee termination benefits
31 December 2021
Sensivity Level
Change in assumption
Impact on provision for employee termination benefits
Discount Rate
Inflation Rate
1% increase 1% decrease 1% increase 1% decrease
(15.6%)
(248,158)
(15.4%)
(244,976)
18.9%
300,653
19.0%
302,244
Discount Rate
Inflation Rate
Telecommunication income
Device income
Total
1% increase 1% decrease 1% increase 1% decrease
(13.8%)
(70,948)
(13.4%)
(68,892)
16.5%
84,829
16.3%
83,801
31 December 2022
31 December 2021
1,485,719
1,061,141
2,546,860
1,844,463
849,574
2,694,037
Management expects that 48% of the transaction price allocated to the unsatisfied contracts as of 31 December
2022 will be recognized as revenue during 2023 and the remaining 52% will be recognized in next years.
24 EXPENSES BY NATURE
Depreciation and amortization (*)
Personnel expenses
Cost of goods sold
Treasury share
Interconnection and termination expenses
Radio expenses
Frequency expenses
Marketing expenses
Transmission expenses
Internet expenses
Roaming expenses
Universal service fund
Cost of revenue from financial services (**)
Selling expense
Other
31 December
2022
(9,478,012)
(5,572,800)
(5,651,973)
(4,084,897)
(3,265,242)
(2,965,792)
(1,497,117)
(1,031,669)
(809,970)
(643,275)
(610,932)
(568,470)
(565,229)
(229,204)
(4,033,158)
(41,007,740)
31 December
2021
(7,291,913)
(3,482,663)
(4,377,966)
(2,816,508)
(2,608,009)
(1,258,037)
(1,032,410)
(733,381)
(565,820)
(353,386)
(340,282)
(388,817)
(223,050)
(163,974)
(2,291,264)
(27,927,480)
(*) As at 31 December 2022, depreciation and amortization expenses include depreciation and amortization expenses related to the
financial services amounting to 74,630 TL (31 December 2021: 66,798 TL).
(**) As at 31 December 2021, cost of revenue from financial services includes employee benefit expenses related to the financial
services amounting to 71,133 TL (31 December 2021: 31,722 TL).
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 is obliged to contribute a certain percentage of personnel
wages to pension plans. The Group incurred 31,399 TL and 20,004 TL in relation to the defined contribution
retirement plan for the years ended 31 December 2022 and 2021 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 2022 and 2021, the Group
has not recognized any expenses regarding this plan.
322 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
80
Translated into English from the report originally issued in Turkish
81
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 323
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
25 OTHER ASSETS AND LIABILITIES
Other current assets
As of 31 December 2022 and 2021, the details of other current assets are as follows:
VAT receivable
Due from personnel
Other
Other long-term liabilities
31 December 2022 31 December 2021
90,645
18,589
939
110,173
585,060
24,790
1,382
611,232
As of 31 December 2022 and 2021, the details of other long-term liabilities are as follows:
Liabilities to BeST investment agreement (*)
Consideration payable in relation to acquisition of BeST (**)
Consideration payable in relation to
the acquisition of Boyut Enerji (Note 3)
Other
31 December 2022 31 December 2021
663,338
-
-
758,261
3,275
-
666,613
3,275
2,522
764,058
(*) The transfer of ownership of BeST's 20% share in the Republic of Belarus was completed on 9 December 2022. On 30 November
2022, an agreement was signed between the Republic of Belarus, BeST and the Company for the development of telecommunications
infrastructure, which covers the years 2022-2032 and involves a 100.000 USD obligation to be paid over a period of 10 years based on
a minimum of 50% of the net profit earned by BeST, with the entire amount being paid by the Company to the Republic of Belarus if
the specified amount is not reached at the end of the 10-year period.
The liability recorded in the consolidated financial statements for the BeST investment agreement reflects the amortized cost value of
future payments at the balance sheet date. The total future payments to be made is 100,000 USD (equivalent to 1,869,830 TL as of 31
December 2022) and will be paid depending on the financial performance of BeST. A discount rate of 14.99% was used in the amortized
cost calculation. BeST expects the payment to be made in installments between 2027- 2031.
(**) Consideration payable (conditional consideration) in relation to acquisition of BeST in 2008 was recognized at fair value within
the scope of TFRS 3. The assumptions used in the fair value calculation are explained in Note 38. On 30 November 2022, the relevant
contract was canceled by mutual agreement. and an investment agreement was signed instead of the relevant contract.
324 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
82
26 PAID-IN CAPITAL, LEGAL RESERVES VE OTHER EQUITY ITEMS
26.1 Paid-in capital
As at 31 December 2022, paid-in capital represents 2,200,000,000 authorized, issued and fully paid shares
with a par value of 1 TL each (31 December 2021: 2,200,000,000 and 1 TL).
The Company’s issued capital is 2,200,000 TL which is authorized share capital.
Shareholders’ structure is as follows:
31 December 2022
31 December 2021
Public Share
TVF BTIH
IMTIS Holdings
Other
Total
Inflation adjustment to
share capital
Inflation adjusted capital
Share ratio Share amount
Share ratio Share amount
(%)
53.95
26.2
19.8
0.05
TL
1,187,004
576,400
435,600
996
(%)
53.95
26.2
19.8
0.05
TL
1,187,004
576,400
435,600
996
100
2,200,000
100
2,200,000
(52,352)
2,147,648
(52,352)
2,147,648
As at 31 December 2022, total number of shares pledged as security is 995,509 (2021: 995,509).
26.2 Treasury shares
The Company purchased 816,290 TL of its shares on-market with prices ranging from 12.09 to 12.35 TL in
accordance with the share buyback decisions made on 27 July 2016 and 30 January 2017. During 2022, there
are not any shares buyback transactions executed. (2021: None). Treasury shares are recognized by deducting
from equity.
26.3 Share premiums
Share premiums represent the cash inflows obtained as a result of selling the shares at market prices. These
premiums are recognized under equity and are not subject to distribution. However it can be used for future
capital increases.
26.4 Reserves
Legal Reserves
The legal reserves consist of initial and secondary reserves in accordance with the TCC. The TCC stipulates
that the initial 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 capital. The secondary legal reserve is appropriated at the rate of
10% per annum of all cash dividends in excess of 5% of the paid-in capital to make dividend distribution in
accordance with the CMB’s announcement, however the legal records it is appropriated at the rate of 11% per
annum of all cash dividends in excess of 5% of the paid-in capital in accordance with the legal records. The
initial and secondary legal reserves can only be used to offset losses and are not available for any other usage
unless they exceed 50% of paid-in capital.
As at 31 December 2022, the Company’s reserves consist of legal reserves. The total amount of the Company’s
legal reserves is 3,948,937 TL(31 December 2021: 3,612,388 TL).
Translated into English from the report originally issued in Turkish
83
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 325
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
26 PAID-IN CAPITAL, LEGAL RESERVES VE OTHER EQUITY ITEMS (cont’d)
27 REVENUE AND COST OF REVENUE (cont’d)
26.5 Dividends
27.1 Revenue (cont’d)
At the General Assembly held on 16 June 2022, it was decided to distribute gross 1,257,775 TL part of the
distributable profit of the Company for the year ended 31 December 2021 to the shareholders on 26 July 2022
in cash, as 0.5717 gross for each share with a nominal value of 1 TL. The amount was paid to the shareholders
on the relevant date (31 December 2021: 2,585,787 TL).
26.6 Non-controlling interests
The portion of subsidiaries' net assets which are not directly or indirectly controlled by the parent company,
are classified under the "Non-controlling interests" in the consolidated statement of financial position.
The portion of subsidiaries' net income or loss that belong to non-controlling interests are classified under the
"Non-controlling interests" in the consolidated statement of profit or loss.
.
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
27 REVENUE AND COST OF REVENUE
27.1 Revenue
Revenue for the year ended 31 December 2022 and 2021 is as follows:
Turkcell Turkey
Turkcell International
Techfin
Other
Intersegment
Eliminations
Consolidated
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Telecommunication services
Equipment related revenue
Revenue from financial
services
Call center revenue
Other sales revenue
Total
38,403,988
2,158,917
-
25,791,341
1,257,639
-
6,007,115
135,994
-
3,479,631
120,113
-
-
- 1,849,132
-
-
1,075,742
-
3,570,404
-
-
2,832,180
-
(90,607)
(20,211)
(66,525)
(49,219)
(140,624)
(61,846)
88,111
200,054
40,851,070
46,268
128,295
27,223,543
46,262
164,232
6,353,603
48,060
102,277
3,750,081
-
-
1,849,132
-
-
1,075,742
762,524
2,709,561
7,042,489
540,553
1,557,286
4,930,019
(99,520)
(1,866,845)
(2,217,807)
(65,313)
(815,940)
(1,058,843)
44,320,496
5,845,104
1,708,508
797,377
1,207,002
53,878,487
29,204,447
4,160,713
1,013,896
569,568
971,918
35,920,542
Translated into English from the report originally issued in Turkish
85
Telecommunication Services
At a point in time
Over time
Equipment Related
At a point in time
Over time
Revenue from financial operations
At a point in time
Over time
Call Center
At a point in time
Over time
Other
At a point in time
Over time
Total
At a point in time
Over time
Telecommunication Services
At a point in time
Over time
Equipment Related
At a point in time
Over time
Revenue from financial operations
At a point in time
Over time
Call Center
At a point in time
Over time
Other
At a point in time
Over time
Total
At a point in time
Over time
Turkcell
Turkey
38,403,988
291,598
38,112,390
2,158,917
1,898,025
260,892
-
-
-
88,111
-
88,111
200,054
3,281
196,773
40,851,070
2,192,904
38,658,166
Turkcell
Turkey
25,791,341
229,120
25,562,221
1,257,639
1,035,373
222,266
-
-
-
46,268
-
46,268
128,295
6,013
122,282
27,223,543
1,270,506
25,953,037
Turkcell
International
6,007,115
47,884
5,959,231
135,994
135,994
-
-
-
-
46,262
-
46,262
164,232
4,077
160,155
6,353,603
187,955
6,165,648
Turkcell
International
3,479,631
26,085
3,453,546
120,113
120,113
-
-
-
-
48,060
-
48,060
102,277
351
101,926
3,750,081
146,549
3,603,532
31 December 2022
Techfin
-
-
-
Other
-
-
-
Intersegment
eliminations
(90,607)
(122)
(90,485)
(20,211)
(20,211)
(140,624)
(140,619)
(5)
(99,520)
-
(99,520)
(1,866,845)
(6,160)
(1,860,685)
(2,217,807)
(167,112)
(2,050,695)
Consolidated
44,320,496
339,360
43,981,136
5,845,104
-
5,584,212
260,892
1,708,508
737,567
970,941
797,377
-
797,377
1,207,002
55,800
1,151,202
53,878,487
6,716,939
47,161,548
3,570,404
3,570,404
-
-
-
-
-
-
-
762,524
-
762,524
2,709,561
54,602
2,654,959
7,042,489
3,625,006
3,417,483
31 December 2021
Other
-
-
-
2,832,180
2,832,180
Intersegment
eliminations
(66,525)
(1)
(66,524)
(49,219)
(49,219)
-
-
-
-
540,553
-
540,553
1,557,286
46,625
1,510,661
4,930,019
2,878,805
2,051,214
(61,846)
(61,846)
(65,313)
-
(65,313)
(815,940)
(2,953)
(812,987)
(1,058,843)
(114,019)
(944,824)
-
-
Consolidated
29,204,447
255,204
28,949,243
4,160,713
3,938,447
222,266
1,013,896
379,558
634,338
569,568
-
569,568
971,918
50,036
921,882
35,920,542
4,623,245
31,297,297
1,849,132
878,186
970,946
-
-
-
-
-
-
1,849,132
878,186
970,946
Techfin
-
-
-
-
-
-
1,075,742
441,404
634,338
-
-
-
-
-
-
1,075,742
441,404
634,338
326 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
84
Translated into English from the report originally issued in Turkish
86
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 327
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
27 REVENUE AND COST OF REVENUE (cont’d)
28 GENERAL ADMINISTRATIVE EXPENSES AND MARKETING EXPENSES (cont’d)
27.2 Cost of revenue
Cost of revenue the year ended for 31 December 2022 and 2021 is as follows:
28.2 Marketing Expenses
Marketing, sales and delivery expenses at the end of the year 31 December 2022 and 2021 as follows:
Depreciation and amortization
Cost of goods sold
Treasury share
Personnel expenses
Interconnection and termination expenses
Radio expenses
Frequency expenses
Transmission expenses
Internet expenses
Roaming expenses
Universal service fund
Cost of revenue from financial services
Other
31 December
2022
(9,478,012)
(5,651,973)
(4,084,897)
(3,293,808)
(3,265,242)
(2,965,792)
(1,497,117)
(809,970)
(643,275)
(610,932)
(568,470)
(565,229)
(3,353,925)
(36,788,642)
31 December
2021
(7,291,913)
(4,377,966)
(2,816,508)
(2,085,343)
(2,608,009)
(1,258,037)
(1,032,410)
(565,820)
(353,386)
(340,282)
(388,817)
(223,050)
(1,888,433)
(25,229,974)
As at 31 December 2022, depreciation and amortization expenses include depreciation and amortization
expenses related to the financial services amounting to 74,630 TL (31 December 2021: 66,798 TL).
Personnel expenses
Marketing expenses
Selling expenses
Other
31 December 2022 31 December 2021
(779,470)
(733,381)
(163,974)
(101,658)
(1,778,483)
(1,255,283)
(1,031,669)
(229,204)
(183,921)
(2,700,077)
29 OTHER OPERATING INCOME / EXPENSES
29.1 Other Operating Income
Other operating income at the end of the year 31 December 2022 and 2021 as follows:
Foreign exchange gain, net
Interest income from time deposits with
maturity of less than 3 months
Interest income from overdue payments
Other
31 December 2022
5,913,287
31 December 2021
6,097,168
1,219,162
233,440
196,104
7,561,993
658,482
186,700
135,345
7,077,695
As at 31 December 2022, cost of revenue from financial services includes employee benefit expenses related
to the financial services amounting to 71,133 TL (31 December 2021: 31,722 TL).
29.2 Other Operating Expenses
28 GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES
28.1 General Administrative Expenses
General administrative expenses at the end of the year 31 December 2022 and 2021 as follows:
Personnel expenses
Consultancy expenses
Service expenses
Maintenance and repair expenses
Collection expenses
Travel and entertainment expenses
Other
31 December 2022 31 December 2021
(617,850)
(88,534)
(44,971)
(27,419)
(38,224)
(17,938)
(84,087)
(919,023)
(1,023,709)
(121,307)
(83,805)
(47,766)
(46,786)
(34,735)
(160,913)
(1,519,021)
Other operating expenses at the end of the year 31 December 2022 and 2021 as follows:
Revaulation tax expense (*)
Donation expenses
Litigation provision and penalty expenses
Revaluation of fixed asset dismantling, moving and restoration
Discount expenses
Restructuring expenses
Supplementary contributions to retailers
Interest expenses related with legal cases
Other
31 December 2022 31 December 2021
(156,577)
(89,481)
(313,049)
(12,083)
(47,697)
(5,993)
(4,492)
(542)
(38,162)
(668,076)
(253,945)
(152,909)
(118,035)
(99,055)
(34,497)
(8,703)
(2,510)
(148)
(91,324)
(761,126)
(*) It consists of 2% tax expense paid over the value increase resulting from the revaluation of the properties and depreciable economic
assets which are registered in statutory books. (Note 32).
328 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
87
Translated into English from the report originally issued in Turkish
88
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 329
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
30
INVESTMENT INCOME
32
INCOME TAXES
Fair value difference of financial investments
Foreign exchange gain, net
Discount income / (expense) on consideration
in relation to acquisition of BeST
Gain on sales of fixed asset, net
Interest income on financial investments
Other
31 December 2022 31 December 2021
863,852
395,383
-
234,756
342,380
114,247
53,053
10,975
1,779,890
70,514
109,489
43,086
6,271
464,116
(*) Fair value difference of financial investments mainly consist of fair value difference of currency protected time deposits.
31 FINANCIAL INCOME AND EXPENSES
31.1 Financial Income
Financial income at the end of the year 31 December 2022 and 2021 as follows:
Fair value gains / (losses) and interest
on derivative instruments, net
Gain on cash flow hedges reclassified to profit or loss
Other interest income
31 December 2022 31 December 2021
-
-
210,775
210,775
1,258,961
1,631,491
160,630
3,051,082
31.2 Financial Expenses
Financial expenses at the end of the year 31 December 2022 and 2021 as follows:
Foreign exchange losses, net (*)
Net interest expenses from financial assets
and liabilities measured at amortized cost
Fair value and interest gain from derivatives instruments, net
Gain on cash flow hedges reclassified to profit or loss
Other
31 December 2022
(10,143,113)
31 December 2021
(11,870,467)
(3,111,003)
(319,212)
61,463
(187,946)
(13,699,811)
(1,198,628)
-
-
(126,618)
(13,195,713)
(*) Net foreign exchange losses within financial expenses mainly consist of foreign exchange loss from bank borrowings and issued
debt instruments as at 31 December 2022.
Tax income included in at the end of the period 31 December 2022 and 2021 as follows:
Current income tax expense
Deferred tax income
Total tax income originated from continuing operations.
a) Corporate tax
31 December 2022 31 December 2021
(681,513)
(530,581)
4,046,681
1,171,697
3,516,100
490,184
The amount of 243,485 TL recognized in current tax liability represents tax liability calculated for the period
ended 31 December 2022 less temporary tax payments made during the year (31 December 2021:241,686 TL).
Turkish tax regulations does not allow the parent company to prepare tax return over the consolidated financial
statements and subsidiaries. Therefore tax provisions reflected int he financial statements calculated seperately
for companies included in full consolidation.
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.
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.
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. However, with the publication
of the Law No. 7394 in the Official Gazette dated 15 April 2022, banks, consumer finance companies, factoring
and financial leasing companies, electronic payment and money institutions, authorized foreign exchange
institutions, asset management companies, capital market institutions, insurance and reinsurance companies
The corporate tax rate for pension companies has been permanently increased to 25%, and this change will be
valid for returns to be submitted after 1 July 2022.
330 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
89
Translated into English from the report originally issued in Turkish
90
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 331
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
32
INCOME TAXES (cont’d)
a) Corporate tax (cont’d)
32
INCOME TAXES (cont’d)
a) Corporate tax (cont’d)
7532 Law on amending the Tax Procedure Law and Corporate Tax Law was enacted on 20 January 2022. It
has been decided that the financial statements will not be subject to inflation adjustment in the 2021 and 2022
accounting periods, including the provisional accounting periods, and in the provisional tax periods of the 2023
accounting period, regardless of whether the conditions for the inflation adjustment within the scope of the
Repeated Article 298 are met. In line with the Law No. 7352, inflation adjustment will be applied to the
financial statements dated 31 December 2023, and the profit/loss difference arising from the inflation
adjustment will not be taxed.
Dividend payments of Turkish resident corporations to Turkish real persons, foreign corporations and foreign
real persons are subject to 10% 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.
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.
The earnings arising from the sale of founding shares, redeemed shares and priority rights, which the
institutions have for at least two full years in their assets are exempted from corporate tax for 75%. The earnings
arising from the sale of immovables, which the institutions have for at least two full years in their assets are
exempted from corporate tax for 50%. The exempted earnings are transferred to another account in any way
other than being added to the capital within five years or withdrawn from the business or taxes not accrued on
time due to the exception applied for the part transferred to the head office by limited taxpayer institutions are
considered to be lost. The sales must be collected until the end of the second calendar year following the sale.
Reconciliation of income tax expense at 31 December 2022 and 2021 are as follows:
Reconciliation of tax expense
Profit from continuing operations before income tax expense
Tax expense calculated over legal tax rate
Difference in overseas tax rates
Effect of amounts which are not deductible and permanent differences
Effect of exemptions (**)
Unrecognized deferred tax assets (***)
Revaluation effect of tangible and intangible assets (*)
Adjustments for current tax of prior years
Effect of legal tax rate change on deferred tax
Deferred tax on investment in subsidiaries
Other
Total tax expense
31 December
2022
7,536,134
(1,733,311)
102,512
(242,700)
752,225
(333,765)
4,775,742
6,101
181,878
10,712
(3,294)
3,516,100
31 December
2021
4,541,094
(1,135,274)
16,711
(467,266)
231,817
(17,970)
1,641,145
(5,115)
237,709
(13,514)
1,941
490,184
(*) With the article 52 of the Law No. 7338 published in the Official Gazette on 26 October 2021 Within the scope of the regulation
added as the Temporary Article 32 of the Tax Procedure Law No. 213, axpayers who can make revaluation within the scope of the
paragraph (Ç) added to the Repeated Article 298 of the same Law can revalue their immovables and other depreciable economic assets
(excluding real estate and economic assets subject to the sale-lease-repurchase transaction or the issuance of lease certificates as long
as they maintain these qualities) stated in their balance sheets as of the end of the accounting period before the accounting period in
which they will revalue for the first time, under the conditions specified in the article. The covered assets will be valued with the D-
PPI rate and tax will be paid in 3 installments (at two-month intervals) at the rate of 2% over the value increase amount. For revalued
assets, the valuation difference can be depreciated and written off as an expense. Within the scope of the said amendment, deferred tax
asset has been recognized in the statement of financial position based on the revaluation records for fixed assets in the legal book, and
the deferred tax income related to this asset has been recognized in the consolidated statement of profit or loss (31 December 2021:
Revaluation was carried out within the scope of Law No. 7326).
Income or corporate taxpayers, who are subject to full liability and keep books on the balance sheet basis (Except for those who make
inflation adjustments within the scope of subparagraph (9) of subparagraph (A), regardless of the conditions in subparagraph (1) of the
aforementioned paragraph, and those who are allowed to keep their records in a currency other than Turkish currency including
Unlimited liability, limited partnerships and ordinary partnerships), can revalue their depreciable economic assets (except for those that
are subject to a sell-lease-repurchase transaction or issuance of lease certificates, as long as they maintain these qualifications)
recognized in their balance sheets and the depreciation recognized in the liabilities of their balance sheets, in accordance with the
conditions specified in the article, at the end of the accounting periods in which the conditions for making inflation adjustments are not
met. In revaluation, the values of economic assets and their depreciation, which are determined in accordance with the valuation
provisions of this Law and included in the statutory books as of the end of the accounting period in which the valuation will be made,
are taken into account. The values after revaluation of economic assets are calculated by multiplying the values determined in this way
and their depreciation with the revaluation rate of the year in which the revaluation will be made. Taxpayers who subject their economic
assets to revaluation within the scope of this article continue to depreciate these assets over the values reached after the
revaluation.Within the scope of the said amendment, deferred tax asset has been recognized in the statement of financial position based
on the revaluation records for fixed assets in the statutoy book, and the deferred tax income related to this asset has been recognized in
the consolidated statement of profit or loss.
(**) Discounts and exceptions for the period of 31 December 2022, mainly consist of R&D discounts.
(***) Mainly comprises of unused tax losses for which no deferred tax asset has been recognized.
Income tax relating to each component of other comprehensive income:
31 December 2022
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
31 December 2021
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
Other comprehensive
income before tax
378,459
364,888
329,403
(40,116)
(1,335,580)
(950,686)
(1,253,632)
Other comprehensive
income before tax
2,410,295
197,211
(1,185,074)
(65,494)
(1,558,374)
(163,588)
(365,024)
Tax effect
(538,429)
(84,237)
(65,881)
8,023
267,116
191,104
(222,304)
Other comprehensive
income after tax
(159,970)
280,651
263,522
(32,093)
(1,068,464)
(759,582)
(1,475,936)
Tax effect
(861,143)
(55,912)
237,015
13,099
311,675
32,276
(322,990)
Other comprehensive
income after tax
1,549,152
141,299
(948,059)
(52,395)
(1,246,699)
(131,312)
(688,014)
332 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
91
Translated into English from the report originally issued in Turkish
92
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 333
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
32
INCOME TAXES (cont’d)
b) Deferred tax
32
INCOME TAXES (cont’d)
b) Deferred tax (cont’d)
Deferred tax liability or assets are determined by calculating the tax effects of temporary differences between
the values of assets and liabilities shown in the financial statements and the amounts taken into account in the
calculation of legal tax base, according to the balance sheet method. Deferred tax liability or assets are reflected
in the consolidated financial statements by taking into account the tax rates that are expected to be valid in the
future periods when the temporary differences will disappear.
The Group considers factors such as developments in the sector in which it operates, future taxable profit
estimations, macroeconomics and political situation in Turkey and the countries in which its subsidiaries are
located, and/or international macroeconomics and political situation that may affect the Group, while reflecting
deferred tax assets in the financial statements.
Deferred tax assets and liabilities at 31 December 2022 and 2021 are attributable to the following:
Depreciation and capitalization
difference related with
property, plant and equipment and
intangible assets
Subsidiaries
Derivative instruments
Reserve for employee
termination benefits and
provisions
Tax losses carried forward
Tax exemptions
Other assets and liabilities (*)
Deferred tax assets/
(liabilities)
Offsetting
Net deferred tax assets/
(liabilities)
Deferred Tax Assets
Deferred Tax Liabilities
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Net Deferred Tax Assets/Lia.
31 December
2021
31 December
2022
2,324,218
412,728
(800,510)
(953,814)
1,523,708
(541,086)
-
29,967
-
5,922
(98,257)
(547,459)
-
(520,298)
(98,257)
(517,492)
-
(514,376)
455,263
235,581
(7,765)
(19,295)
447,498
216,286
2,313,498
97,466
1,075,658
6,296,070
1,155,781
62,692
596,974
2,469,678
(1,304,846)
4,991,224
(670,066)
1,799,612
-
-
(100,420)
-
-
(105,213)
(1,554,681)
1,304,846
(1,598,620)
670,066
(249,835)
(928,554)
2,313,498
97,466
975,238
4,741,389
-
4,741,389
1,155,781
62,692
491,761
871,058
-
871,058
(*) Mainly comprises deferred taxs effects of loans, bonds, prepaid expenses and lease liabilities.
Movement in deferred tax assets/(liabilities) for the years ended 31 December 2022 and 2021 were as follows:
Opening balance, net
Recognized in statement of profit or loss
Recognized in statement of other comprehensive
income
Acquisition through business combinations
Exchange differences
31 December 2022
871,058
4,046,681
(222,304)
-
45,954
4,741,389
31 December 2021
(501,223)
1,171,697
(322,990)
(48,755)
572,329
871,058
As of 31 December 2022, the Group did not recognize deferred tax assets of 7,270,241 TL (31 December
2021: 5,518,647 TL) in respect of tax losses amounting to 1,398,834 TL (31 December 2021: 1,043,849 TL)
that can be carried forward against future taxable income. The unused tax losses were incurred mainly by
Belarusian Telecom.
Unused tax losses will expire at the following dates
Expiration
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Indefinite
Amount
483,247
826,727
2,903,840
227,219
1,849,040
411,144
-
182,827
227,175
-
159,022
7,270,241
334 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
93
Translated into English from the report originally issued in Turkish
94
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 335
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
33 EARNINGS PER SHARE
34 FINANCIAL INVESTMENTS (cont’d)
Profit attributable to owners of the Company
Weighted average number of shares:
Weighted average number of ordinary shares (*)
Earnings per share with a nominal value of 0.001 TL
(unshortened full TL)
(*) For details of Treasury Shares see Note 26.2.
31 December 2022
31 December 2021
11,053,193
5,031,098
2,183,106,193
2,183,106,193
5.06
2.30
34 FINANCIAL INVESTMENTS
The details of financial investments as of 31 December 2022 and 2021 are as follows:
31 December 2022
31 December 2021
Financial investments measured at amortized cost
- Time deposits with maturity more than three months
Financial assets measured at fair value through profit or loss
- Currency protected time deposit (**)
- Investment funds (***)
Financial assets measured at fair value through other
comprehensive income
- Debt securities issued (*)
Short Term
748,665
748,665
4,034,897
4,034,897
Long Term
-
-
258,627
Short Term
4,164
4,164
-
Long Term
-
-
-
-
-
258,627
-
-
-
-
-
-
1,850,830
1,850,830
4,783,562
2,109,457
51,166
51,166
55,330
1,376,645
1,376,645
1,376,645
(*) Debt securities issued are classified as financial assets at fair value through other comprensive income.
(**) Currency-protected time deposit accounts are classified as financial assets at fair value through profit or loss. The Group has
converted its foreign currency deposit account amounting to 123,300 USD and 73,300 EUR into “Currency Protected TL Time Deposit
Accounts”. Maturity of currency protected time deposit accounts is 1 year.
(***) Investment funds mainly include Turkcell GSYF, established by Re-Pie., and its associate and financial assets which is carried
at fair value and valuation differences are recognized in profit or loss.
The table of fair value of financial investments as of 31 December 2022 and 2021 is as follows:
31 December
2022
31 December
2021
Fair value
hierarchy
Fair Value
Financial assets at fair value
through other comprehensive income
1,850,830
1,427,811
Level 1
Financial assets at fair value
through other comprehensive income
19,982
Level 1
-
Financial assets at fair value
through profit or loss
Financial assets at fair value
through profit or loss
4,034,897
238,645
-
-
Level 2
Level 3
Total
6,144,354
1,427,811
Valuation
technique
Pricing models based
on quoted market
prices at the end of
the reporting period,
Pricing models based
on quoted market
prices at the end of
the reporting period,
Forward exchange
rates at the balance
sheet date
Pricing models based
on discounted cash
flow
As of 31 December 2022, the nominal and fair value amounts of financial assets measured at fair value through
other comprehensive income are as follows:
Currency
EUR
EUR
EUR
USD
USD
USD
USD
USD
USD
USD
Total financial invesments
Nominal amount
24,000
15,000
5,000
3,700
21,000
18,000
5,000
3,000
1,000
50,000
Fair Value
472,022
279,082
99,975
73,314
391,211
308,358
97,785
55,835
18,540
54,708
1,850,830
Maturity
16 February 2026
8 July 2027
11 April 2023
31 March 2025
14 July 2023
25 March 2027
13 November 2025
25 January 2023
10 August 2024
Indefinite
336 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
95
Translated into English from the report originally issued in Turkish
96
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 337
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
34 FINANCIAL INVESTMENTS (cont’d)
35 DERIVATIVE INSTRUMENTS
As of 31 December 2022, the nominal and fair value amounts of financial assets measured at fair value through
profit or loss are as follows:
The fair value of derivative instruments at 31 December 2022 and 31 December 2021 are as follows:
Currency
Nominal amount
Fair Value
TL
TL
TL
TL
TL
TL
Total financial investments
949,475
704,109
701,033
436,793
230,364
185,454
1,236,256
950,130
820,390
511,377
299,793
216,951
4,034,897
Maturity
10 May 2023
27 February 2023
15 August 2023
16 August 2023
11 May 2023
2 October 2023
As of 31 December 2021, the nominal and fair value amounts of financial assets at fair value through other
comprehensive income are as follows:
Currency
EUR
EUR
TL
TL
USD
USD
USD
USD
USD
USD
Total financial invesments
Nominal amount
1,995
15,189
24,312
24,108
21,000
996
19,824
2,168
25,000
18,470
Fair Value
31,347
216,874
25,583
25,583
286,017
13,479
250,956
27,595
319,874
230,503
1,427,811
Maturity
16 February 2026
8 July 2027
2 March 2022
2 March 2022
14 July 2023
10 August 2024
14 October 2025
26 January 2026
22 June 2026
25 March 2027
Following gains and losses were recognized under other comprehensive income during current year:
Gains / (Losses) recognized in other comprehensive income
Gain/ (loss) related to Financial investment
Gain/ (loss) related to Financial investment, tax effect
31 December
2022
31 December
2021
(40,116)
8,023
(32,093)
(65,494)
13,099
(52,395)
Held for trading
Derivatives used for hedge accounting
Total
31 December 2022
31 December 2021
Asset
794,399
1,199,843
1,994,242
Liability
131,074
21,432
152,506
Asset
1,181,740
999,577
2,181,317
Liability
-
60,518
60,518
At 31 December 2022, short-term derivative assets of 2,032,416 TL also includes a net accrued interest income
of 38,174 TL and the short-term derivative liabilities of 150,923 TL also includes a net accrued interest expense
of 1,583 TL.
At 31 December 2021, the short-term derivative assets of 2,131,070 TL also includes a net accrued interest
expense of 50,247 TL and the short-term derivative liabilities of 71,325 TL also includes a net accrued interest
income of 10,807 TL.
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
35 DERIVATIVE INSTRUMENTS (cont’d)
Derivatives used for hedge accounting
The notional amount and the fair value of derivatives used for hedging contracts at 31 December 2022 are as follows:
Currency
in original currency
Fair value
in original currency
Fair value
Maturity date
Hedge ratio
31 December 2022
31 December 2021
Notional value
Notional value
Participating cross currency swap contracts
EUR Contracts
EUR Contracts
USD Contracts
Cross currency swap contracts
RMB Contracts
Interest rate swap contracts
USD Contracts
233,600
50,711
165,478
108,148
120,105
203,017
53,612
560,982
300,200
63,365
206,770
174,747
48,443
523,571
256,943
135,134
235,617
103,857
150,075
(43,319)
939,059
October 2025
April 2026
April 2026
April 2026
April 2026
01:01
01:01
01:01
01:01
01:01
Derivatives used for hedge accounting
1,178,411
Participating cross currency swap contracts amount of 269,624 EUR (2021: 340,220 EUR) includes 1,194,300 TL (2021: 1,170,728 TL) guarantees after the CSA
agreement.
Translated into English from the report originally issued in Turkish
99
338 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
97
Translated into English from the report originally issued in Turkish
98
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 339
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
35 DERIVATIVE INSTRUMENTS (cont’d)
Held for trading
The notional amount and the fair value of derivative contracts held for trading at 31 December 2022 are as follows:
Currency
in original currency
Fair value
Maturity date
in original currency
Fair value
Maturity date
31 December 2022
31 December 2021
Notional value
Notional value
Cross currency swap contracts
USD Contracts
RMB Contracts
EUR Contracts
Currency swap contracts
USD Contracts
EUR Contracts
FX swap contracts
USD Contracts
RMB Contracts
Participating cross currency swap contracts
USD Contracts
EUR Contracts
Interest rate swap contracts
USD Contracts
EUR Contracts
Derivatives held for trading
18,858
25,883
-
377,435
26,900
357,451
148,422
27,000
53,380
53,380
-
243,287 March 2023 - November 2025
57,482
-
April 2026
-
7,673
28,699
January 2023 - June 2023
February 2023 - April 2023
(3,980)
1,864
75,051
254,040
(791)
-
663,325
January 2023
January 2023
November 2025
April 2026
April 2026
-
36,572
32,342
24,000
175,000
-
200,000
-
36,000
66,700
-
35,000
284,868 March 2023 - November 2025
50,842
168,900
April 2026
December 2022
169,478
-
January 2022 - March 2022
-
193,504
-
58,890
243,478
-
11,780
1,181,740
January 2022
-
November 2025
April 2026
-
September 2028
Translated into English from the report originally issued in Turkish
100
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
35 DERIVATIVE INSTRUMENTS (cont’d)
Held for trading (cont’d)
Fair value of derivative instruments and risk management
Fair value:
Hierarchy on the presentation of financial assets and liabilities at their fair values:
The fair values of financial assets and financial liabilities are determined and grouped as Level 1, Level 2,
Level 3:
• 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 determine fair value of asset or liability.
The table below provides information on fair value measurement of financial assets and liabilities:
a) Participating cross currency swap
contracts
b) Fx swap, currency, interest swap and
option contracts
c) Currency forward contracts
Fair value level
Level 3
Level 2
Level 2
Valuation tecnique
Pricing models based on discounted
cash flows calculated in-line with
yield curves
Pricing models based on discounted
cash flows calculated in-line with
observable yield curves
Pricing models based on forward
exchange rates at the reporting date
There were no transfers between fair value hierarchy levels during the year.
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 15,892 TL lower as at 31 December 2022 (31 December 2021: 253,788 TL).
As of 31 December 2022, the Company has no financial assets and liabilities carried at fair value on a non-
recurring basis.
340 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
101
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 341
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
35 DERIVATIVE INSTRUMENTS (cont’d)
35 DERIVATIVE INSTRUMENTS (cont’d)
Fair value of derivative instruments and risk management (cont’d)
Fair value of derivative instruments and risk management (cont’d)
Fair value (cont’d):
The details of the movement between the opening and closing balances of derivative instruments with level 3
hierarchy are shown in the table below:
Participating cross currency swap contracts
Opening balance
Cash flow effect
Total gain/loss
Recognized in profit or loss
Closing balance
Net off/Offset
31 December 2022
31 December 2021
1,049,129
(1,124,027)
-
1,221,600
1,146,702
797,060
45,951
-
206,118
1,049,129
The Company signed a Credit Support Annex (CSA) against the default risk of parties in respect of a 233,600
EUR 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
32,028 EUR 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 1,000 EUR. Following the execution of CSA, the bank transferred to the
Company 330,138 EUR as collateral (31 December 2022: 6,581,268 TL) which was the amount exceeding the
threshold (10,000 EUR) and the Company transferred 270,228 EUR as collateral to the bank (31 December
2022: 5,386,968 TL) which was the amount exceeding the threshold (10,000 EUR). The Company clarified
this with the derivative assets included in the statement of financial postion because it has the legal right to
offset the collateral amount 1,194,300 TL (31 December 2021: 1,170,728 TL) 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 2022, if this transaction
was not conducted, derivative financial instruments assets, liabilities and borrowings would have been
3,072,349 TL (31 December 2021: 3,167,736 TL), (3,444) TL (31 December 2021: (62,737) TL) and
17,915,547 TL (31 December 2021: 10,019,141 TL) respectively.
Financial risk management
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.
Currency risk
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, currency swaps, interest swap contracts, currency forward 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 Company started to apply hedge accounting as of 1 July 2018 for existing participating cross currency
swap and cross currency swap transactions in accordance with TFRS 9 hedge accounting requirement. TFRS
9, also includes new hedge accounting policies that aiming to be convenient with risk management
implementation.
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.
342 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
102
Translated into English from the report originally issued in Turkish
103
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 343
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
35 DERIVATIVE INSTRUMENTS (cont’d)
35 DERIVATIVE INSTRUMENTS (cont’d)
Fair value of derivative instruments and risk management (cont’d)
Fair value of derivative instruments and risk management (cont’d)
Financial risk management (cont’d)
Currency risk (cont’d)
The Company’s future contracts are designated as hedging instruments against the spot foreign exchange rate
risk (USD/TL) associated with highly probable device purchases. In this context, the Group started to apply
cash flow hedge accounting effective from 10 September 2021. The amount of forward currency contracts
associated within this scope is amounted to 13,763 USD as of 31 December 2022. Profit or loss from cash flow
hedges recognized under “gain/(loss) from cash flow hedges” in the consolidated statement of other
comprehensive income of 2022.
The Company’s lease liabilities are designated as hedging instruments against the spot foreign exchange rate
risk (EUR/TL) associated with highly probable EUR telecommunication revenues. In this context, the Group
started to apply cash flow hedge accounting effective from 1 October 2021. The amount of lease liabilities
associated within this scope amounted to 12,474 EUR as of 31 December 2022. Profit or loss from cash flow
hedges recognized under “gain/(loss) from cash flow hedges” in the consolidated statement of other
comprehensive income of 2022.
The Company designated 290,008 EUR 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. The after tax foreign exchange loss
recognised under “cash flow hedges” in the consolidated statement of other comprehensive income of 2022 in
the scope of cash flow hedge amounted to (1,068,464) TL (2021: (1,246,699) TL).
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.
Financial risk management (cont’d)
Interest rate risk (cont’d)
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.
31 December 2022
Participating cross currency swap
contracts
Cross currency swap contracts
Cash Flow sensitivity (net)
31 December 2021
Participating cross currency swap
contracts
Cross currency swap contracts
Cash Flow sensitivity (net)
Profit or Loss
100 bp
increase
100 bp
decrease
Equity, net of tax
100 bp
increase
100 bp
decrease
(37,531)
64,781
27,250
(25,064)
236,336
211,272
755,812
236,439
992,251
787,206
206,121
993,327
Profit or Loss
100 bp
increase
100 bp
decrease
Equity, net of tax
100 bp
increase
100 bp
decrease
1,199,942
159,719
1,359,661
2,230,500
(33,859)
2,196,641
(620,462)
(220,694)
(841,156)
(1,445,257)
(186,611)
(1,631,868)
344 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
104
Translated into English from the report originally issued in Turkish
105
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 345
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
36 BORROWINGS
Group’s foreing currency risk of borrowings is explained in Note 38.
Bank loans
Short-term unsecured bank loans
Short-term secured bank loans
Issued debt instruments
Lease liabilities
Current portion of long term borrowings
Current portion of unsecured long-term bank loans
Current portion of secured long-term bank loans
31 December 2022
8,760,854
8,395,861
364,993
1,124,712
873,277
4,955,284
4,474,648
480,636
31 December 2021
3,767,585
3,767,585
-
101,938
893,055
3,340,237
3,098,826
241,411
Current portion of long-term issued debt instruments
1,007,120
745,598
Long-term bank loans
Long-term unsecured bank loans
Long-term secured bank loans
17,945,061
15,653,822
2,291,239
13,356,013
13,084,545
271,468
Long-term issued debt instruments
17,006,088
12,560,897
Long-term lease liabilities
2,181,954
2,012,810
53,854,350
36,778,133
The Company has used loans in accordance with the loan agreement previously signed with ING Bank
N.V. and AB Svensk Exportkredit under the Swedish Export Credit Organization (“EKN”) insurance on 18
December 2020. As of 31 December 2022, the Company has used USD 23,750 and USD 25,180 loan on 1
April 2022 and 3 June 2022, respectively, with a fixed interest rate of 1.53%.
The Company has used loans in accordance with the loan agreement previously signed with China
Development Bank on 7 August 2020. As of 31 December 2022, the Company has used 100,000 EUR and
52,876 EUR loan on 26 April 2022 and 24 June 2022, respectively, with interest rate of 6M Euribor+2.29%
for the EUR and 40,000 CNY on 29 September 2022 and 29 November 2022 with interest rate of 5.15%.
Within the scope of buy-back decisions on 27 July 2016, 30 January 2017 and 24 March 2020, the Company
purchased its debt securities issued with a total nominal value of 37,239 USD as at 31 December 2022.
Under CMB approval taken by The Company on 3 November 2022 for issuance of debt securities to 1,000,000
TL, the Company has issued debt securities on 23 November 2022 amounting 500,000 TL with the maturity
of 17 May 2023. The remained limit is 500,000 TL from 1,000,000 TL specified total limit.
36 BORROWINGS (cont’d)
On 29 September 2022, CMB approval has been taken by Turkcell Ödeme 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 of up to 1,000,000 TL 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 26 October 2022,
after CMB approval lease certificates amount of up to 1,000,000 TL. The Company has issued lease certificates
amounting 150,000 TL with the maturity of 1 February 2023.
On 25 August 2022, CMB approval has been taken by Superonline on issuance of management aggrement-
based lease certificates up to 1,000,000 TL, the Company has issued lease certificates on 13 September 2022
amounting 200,000 TL with the maturity of 12 December 2022 after this issuance on 13 December 2022 The
Company has issued a new lease certificates amounting 200,000 TL with the maturity of 15 March 2023.
Additionally, on 5 January 2023, the Company has issued management agreement based lease certificates
amounting 150,000 TL with the maturity of 5 July 2023 after on 3 February 2023 the Company has issued
management agreement baseda new lease certificates amounting 150,000 TL and the remained limit is 700,000
TL specified total limit 1,000,000 TL.
On 30 December 2021 CMB approval has been taken by Turkcell Finansman for issuance of debt securities
up to 500,000 TL, the Company has issued debt securities on 10 June 2022 A.S amounting 200,000 TL with
the maturity of 9 September 2022. On 9 September 2022 the Company has issued another debt securities
amounting 250,000 TL with the maturity of 5 December 2022. On 29 September 2022, CMB approval has
been taken by Turkcell Finansman with the same conditions at an amount of up to 1,000,000 TL. The new
application was made to the CMB on 2 December 2022 accordingly. Within the scope of this issuance ceiling,
on 6 December 2022, a nominal amount of 250,000 TL coupon debt securities with the maturity of 7 March
2023. The remained limit is 750,000 TL from specified total limit 1,000,000 TL.
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
36 BORROWINGS (cont’d)
The details of loans as at 31 December 2022 and 2021 are as follows:
31 December 2022
31 December 2021
Currency
Interest rate
type
Payment
period
Nominal interest rate
TL
Payment
period
Unsecured bank borrowings
Unsecured bank borrowings
Unsecured bank borrowings
Unsecured bank borrowings
Unsecured bank borrowings
Unsecured bank borrowings
Unsecured bank borrowings
Secured bank borrowings
Secured bank borrowings
Secured bank borrowings
Issued debt instruments
Issued debt instruments
Lease obligations
Lease obligations
Lease obligations
Lease obligations
Lease obligations
EUR
TL
USD
RMB
UAH
EUR
USD
USD
USD
UAH
USD
TL
TL
UAH
EUR
BYN
USD
Floating
2023-2028
Euribor+2.0%-Euribor+2.3%
13,673,783
2022-2028
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
2023
2023-2026
2023-2028
2023-2024
-
2023-2026
2023-2032
2023-2028
2023
2023-2028
2023
2023-2048
2023-2071
2023-2034
2023-2037
2023-2052
12.4%-38.0%
Libor+1.7%-Libor 2.2%
3.7%-5.5%
10.0%-21.0%
-
2.6%
1.5%-3.8%
Libor+0.6% - Libor+1.6%
16.4%-19.5%
5.8%
20.3%-25.5%
9.8%-45.0%
7.6%-47.7%
1.0%-10.3%
11.5%-20.0%
3.9%-11.5%
7,782,214
3,982,309
1,485,067
1,429,174
-
171,784
2,119,044
652,831
364,993
18,013,208
1,124,712
1,207,596
1,148,563
309,670
309,259
80,143
53,854,350
2022
2022-2028
2022-2028
2022-2024
2022
2022-2030
2022-2026
2022-2026
-
2022-2028
2022
2022-2048
2022-2069
2022-2034
2022-2028
2022-2028
Nominal interest rate
Euribor+1.9%-
Euribor+2.3%
14.8%-29.0%
Libor+2.1%-Libor+2.2%
4.9%-5.2%
8.0%-10.9%
1.7%
3.8%
2.6%
Libor+1.6% - Libor+1.9%
-
5.8%
16.3%
9.8%-45.0%
7.6%-25.7%
1.0%-10.0%
11.5%-15.8%
3.9%-10.9%
TL
9,188,487
3,044,848
3,639,052
930,395
1,712,723
362,593
1,072,858
152,667
360,212
-
13,306,495
101,938
1,262,449
1,074,000
303,265
185,618
80,533
36,778,133
346 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
106
Translated into English from the report originally issued in Turkish
108
Translated into English from the report originally issued in Turkish
107
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 347
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
37 RELATED PARTY DISCLOSURES
Transactions with related parties
Transactions with key management personnel
Key management personnel comprise the Group's members of the Board of Directors and chief officers. There
are no loans to key management personnel as of 31 December 2022 and 2021. The Group provides additional
benefits to key management personnel and contributions to retirement plans based on a pre-determined ratio
of compensation.
The benefits paid and provided to key management personnel as of 31 December 2022 and 2021 are as follows:
Short-term benefits
Long-term benefits
Employee termination benefits
31 December 2022 31 December 2021
89,692
1,091
182
90,965
159,278
1,610
798
161,686
Transactions with other related parties
Material transactions with related parties as of 31 December 2022 and 2021 are as follows:
Revenues:
31 December 2022 31 December 2021
Türk Telekom Mobil İletişim Hizmetleri A.Ş
(“TT Mobil”) (*)
Enerji Piyasaları İşletme A.Ş. (“EPİAŞ”)(*)
Türk Hava Yolları A.Ş. (“THY”) (*)
Ziraat Bankası A.Ş. (“Ziraat Bankası”) (*)
Güneş Express Havacılık A.Ş. (“Sun Express”) (*)
Türk Telekomünikasyon A.Ş (“TT”)(*)
Türksat Uydu Haberleşme Kablo TV ve İşletme
A.Ş.(“Türksat”)(*)
TOGG
TVF İFM Gayrimenkul İnşaat ve Yönetim A.Ş. (*)
Türkiye Vakıflar Bankası TAO (“Vakıfbank”)(*)
Türkiye Halk Bankası AŞ (“Halkbank”) (*)
Türkiye Hayat ve Emeklilik A.Ş.(*)
Ziraat Katılım Bankası A.Ş. (“Ziraat Katılım”)(*)
BIST (*)
Sofra
Other
607,952
138,393
152,282
61,379
57,457
50,896
45,760
46,759
43,072
26,826
14,773
13,080
8,091
4,221
1,479
19,275
1,291,695
-
201,611
73,767
47,944
16,607
-
39,732
5,407
1,454
14,633
8,225
10,479
3,238
11,724
1,006
16,145
451,972
37 RELATED PARTIES (cont’d)
Transactions with other related parties (cont’d)
Expenses:
EPİAŞ (*)
Türk Telekomünikasyon A.Ş (*)
TT Mobil (*)
İstanbul Takas ve Saklama Bankası A.Ş. ("Takasbank") (*)
Türksat (*)
Sofra
Boru Hatları İle Petrol Taşıma A.Ş. (“BOTAŞ”) (*)
PTT (*)
Other
31 December 2022 31 December 2021
864,464
1,515,182
666,547
568,676
79.862
73,204
41,399
34,278
21,391
54,173
3,054,712
-
-
50
57,521
28,918
19,290
14,340
15,603
1,000,186
(*) Related parties which TVF and the entities over which TVF has control directly or joint control or significant influence.
TVF becomes the largest shareholder of Türk Telekom with 61.68% of the shares as of 31 March 2022.
Therefore, companies of Türk Telekom has been reported as related party as of 31 March 2022. Transactions
between the Group and Türk Telekom are related with telecommunication services.
Financial instruments
Financial instruments with related parties as of 31 December 2022 and 31 December 2021 are as follows:
Time deposits
Demand deposits
Currency protected time deposit (*)
Receivables from reverse repo
Bank loans
Debt securities issued
Lease liabilities
Impairment loss provision
31 December 2022
14,178,529
234,117
1,359,651
3,704,160
(2,791,256)
(357,497)
(125,381)
(20,974)
16,181,349
31 December 2021
7,720,468
154,291
-
-
(762,613)
(101,938)
(97,336)
(5,001)
6,907,871
(*) The Group has converted its currency deposit account in Vakıfbank amounting to 15,000 USD and 50,000 EUR into currency
protected TL time deposit accounts.
As of 31 December 2022, the amount of letters of guarantee given to the related parties is 133,277 TL
(31 December 2021: 97,135 TL).
348 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
109
Translated into English from the report originally issued in Turkish
110
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 349
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
37 RELATED PARTIES (cont’d)
Financial instruments (cont’d)
37 RELATED PARTIES (cont’d)
Financial instruments (cont’d)
Details of the time deposits at related parties as of 31 December 2022 and 31 December 2021 are as follows:
Details of the debt securities at related parties as of 31 December 2022 are as follows:
Ziraat Bankası
Vakıfbank
Halkbank
Ziraat Katılım Bankası A.Ş. ("Ziraat Katılım")
Other
Details of time deposits as of 31 December 2022 are as follows:
31 December 2022
2,003,561
5,748,392
5,140,582
1,285,994
-
14,178,529
31 December 2021
2,681,804
2,205,630
2,432,802
400,168
64
7,720,468
Principal
Amount
187,624
395,430
2,774,821
55
Currency
USD
EUR
TL
GBP
Effective
Interest Rate
3.0%
2.7%
23.9%
0.1%
Maturity
January 2023
January 2023
January 2023
January 2023
31 December 2022
3,510,080
7,888,259
2,778,946
1,244
14,178,529
Details of the receivables from reverse repo at related parties as of 31 December 2022 are as follows:
Principal
Amount
Currency
120,025
70,000
EUR
USD
Effective
Interest Rate
2.8%
3.0%
Maturity
January 2023
January 2023
31 December 2022
2,394,311
1,309,849
3,704,160
Details of the bank borrowings at related parties as of 31 December 2022 are as follows:
Principal
Amount
1,802,550
536,714
89,997
35,000
39,900
Currency
TL
TL
RMB
TL
TL
Effective
Interest Rate
13.5% - 19.0%
13.4% - 24.0%
3.7%
14.8%
16.4%
Maturity
January 2023 –
October 2023
February 2023 –
December 2023
February 2023
August 2023
May 2023
31 December 2022
1,934,918
537,478
241,247
36,818
40,795
2,791,256
Principal
Amount
200,000
150,000
Currency
TL
TL
Effective
Interest Rate
20.8%
20.3%
Maturity
March 2023
February 2023
Details of the lease liabilities at related parties as of 31 December 2022 are as follows:
Currency
EUR
TL
Effective
Interest Rate
0.2% - 5.1%
11.7% - 44.5%
Maturity
2022 - 2024
2022 - 2036
31 December 2022
202,005
155,492
357,497
31 December
2022
74,012
51,369
125,381
Interest income from related parties:
Vakıfbank
Ziraat Bankası
Halkbank
Ziraat Katılım
Other
Interest expense from related parties:
Vakıfbank
Ziraat Bankası
Halk Varlık Kiralama A.Ş.
("Halk Varlık Kiralama")
Halk Bankası
Ziraat Katılım
Other
31 December 2022 31 December 2021
97,296
88,334
150,389
321
1,934
338,274
434,446
192,964
174,477
33,850
46
835,783
31 December 2022 31 December 2021
17,889
4,831
284,524
60,612
54,188
2,288
528
551
402,691
3,644
-
31
97
26,492
Revenue from related parties are generally related to telecommunication, call center and other miscellaneous
services. Transactions between the Group and EPİAŞ are related to the energy services; transactions between
the Group and Sofra are related to meal coupon services; transactions between the Group and BOTAŞ are
related to infrastructure services; transactions between the Group and Halkbank, Halk Varlık Kiralama A.Ş.,
Ziraat Bankası, Ziraat Yatırım and Vakıfbank are related to banking services; transactions between the Group
and Türksat are related to telecommunication services and transactions between the Group and Borsa İstanbul
(BIST) are related to stock market services. Receivables from related parties are not collateralized.
350 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
111
Translated into English from the report originally issued in Turkish
112
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 351
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS
Credit Risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is:
31 December 2022
As of reporting date amount of maximum credit risk
( A+B+C+D+E)
-Amount of maximum risk which is secured by
guarantee etc.
A. Carrying amount of financial assets which is undue or
not impaired
B. Carrying amount of financial assets whose conditions
have been renegotiated otherwise would be deemed to be
overdue or impaired
C. Carrying amount of assets which is overdue but not
impaired
-Amount which is secured by guarantee etc.
D. Carrying amounts of assets which is impaired
-Overdue (gross book value)
-Impairment (-)
-Undue (gross book value)
- Impairment (-)
E. Items containing off-statement of financial position
loans
Trade Receivables
Other Receivables
Related party
Non-related party
Related party
Non-related party (*)
Receivables
Other
assets
(**)
Deposits
at banks
Derivative
instruments
Receivables
from financial
services
Financial
investments
Assets arising
from customer
contracts
76,449
6,963,821
-
442,520
58,229
5,378,907
-
-
-
18,220
18,257
(37)
-
-
-
-
-
-
1,584,914
2,114,490
(529,576)
91,012
(91,012)
-
-
-
-
-
-
-
-
-
-
-
-
-
381,645 39,622 25,960,315
2,032,416
3,561,926
6,893,019
1,955,996
-
-
-
-
71,868
-
-
331,217 13,635 25,960,315
2,032,416
3,304,886
6,893,019
1,955,996
-
207
-
-
-
-
-
50,428 25,780
50,548 26,137
(357)
701
(701)
(120)
-
-
-
-
-
-
-
28,853
(28,853)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
257,040
326,924
(69,884)
20,033
(20,033)
-
-
-
-
-
11,378
(11,378)
-
-
-
-
-
7,346
(7,346)
-
-
-
(*) Receivables from Evrensel Projects, VAT receivable and receivables from public administration are not included in other receivables.
(**) Current and non-current deferred VAT are not included in other assets.
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
Credit Risk (cont’d)
As 31 December 2022 and 2021 expected credit loss from finance sector receivables is as follows:
31 December 2022
Not due
Overdue 0-1
months
Overdue 1-3
months
Overdue more
than 3 months
Total
Balance at year end
Expected credit loss
3,324,918
20,033
180,530
1,802
31,964
366
114,431
67,716
3,651,843
89,917
31 December 2021
Not due
Overdue 0-1
months
Overdue 1-3
months
Overdue more
than 3 months
Total
Trade Receivables
Translated into English from the report originally issued in Turkish
Other Receivables
113
Related party
Non-related party (*)
Non-related party
Deposits
at banks
Related party
Other
assets
(**)
Receivables
Derivative
instruments
Receivables
from financial
services
Financial
investments
Assets arising
from customer
contracts
Balance at year end
Expected credit loss
1,878,048
12,294
232,589
2,163
20,374
296
113,268
77,341
2,244,279
92,094
Credit Risk (cont’d)
31 December 2021
As of reporting date amount of maximum credit risk
( A+B+C+D+E)
-Amount of maximum risk which is secured by
guarantee etc.
A. Carrying amount of financial assets which is undue or
not impaired
B. Carrying amount of financial assets whose conditions
have been renegotiated otherwise would be deemed to be
overdue or impaired
C. Carrying amount of assets which is overdue but not
impaired
-Amount which is secured by guarantee etc.
D. Carrying amounts of assets which is impaired
-Overdue (gross book value)
-Impairment (-)
-Undue (gross book value)
- Impairment (-)
E. Items containing off-statement of financial position
loans
175,170
4,413,296
-
240,592
171,725
3,188,320
-
-
-
3,445
3,493
(48)
-
-
-
2-
-
-
1,224,976
1,785,005
(560,029)
64,186
(64,186)
-
-
-
-
-
-
-
-
-
-
-
-
-
175,231 19,828 18,628,481
2,131,070
2,152,185
1,431,975
1,247,741
-
-
-
-
-
-
-
139,638 14,142 18,628,481
2,131,070
1,865,754
1,431,975
1,247,741
-
-
-
-
-
35,593
35,664
(71)
-
-
-
-
5,686
6,004
(318)
636
(636)
-
-
-
-
-
12,346
(12,346)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
286,431
366,231
(79,800)
12,294
(12,294)
-
-
-
-
-
-
-
16
(16)
-
-
-
-
-
-
-
6,241
(6,241)
-
(*) Receivables from Evrensel Projects, VAT receivable and receivables from public administration are not included in other receivables.
(**) Current and non-current deferred VAT are not included in other assets.
Translated into English from the report originally issued in Turkish
114
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
Liquidity Risk
The table below shows the maturity of the Group’s financial liabilities. Tables are prepared without discounting the financial liabilities and on the basis of the earliest due
dates. Tables include principal and interest payments. When interest rates are variable, the undiscounted amount is calculated using interest curves at the end of the
reporting period. The maturity is determined on the basis of the earliest date the Group has to pay.
Contractual maturities
Non-derivative financial liabilities
Bank loans
Issued debt instruments
Lease obligations
Payables to related parties
Consideration payable in relation to acquisition of BeST & Boyut
Trade payables (*)
Derivative instruments
Participating Cross Currency Swap and FX swap contracts
Contractual maturities
Non-derivative financial liabilities
Bank loans
Issued debt instruments
Lease obligations
Payables to related parties
Consideration payable in relation to acquisition of BeST & Boyut
Trade payables (*)
Derivative instruments
Participating Cross Currency Swap and FX swap contracts
(*) Accruals are not included in trade payables.
31 December 2022
Carrying amount
Total contractual cash
flows (=I+II+III+IV)
Less than 3
Months (I)
3 months-12
months (II)
1-5 year (III)
More than 5 year
(IV)
31,661,199
19,137,920
3,055,231
241,310
666,613
6,932,732
-
150,923
(34,847,008)
(23,654,946)
(5,186,425)
(334,850)
(1,879,158)
(7,233,483)
-
349,200
(4,331,420)
(633,264)
(457,869)
(334,850)
-
(6,336,361)
-
(598)
(10,301,938)
(1,600,863)
(897,980)
-
-
(752,927)
-
131,178
(17,548,078)
(11,915,987)
(2,376,995)
-
(118,086)
-
-
218,966
(2,665,572)
(9,504,832)
(1,453,581)
-
(1,761,072)
(144,195)
-
(346)
31 December 2021
Carrying amount
Total contractual cash
flows (=I+II+III+IV)
Less than 3
Months (I)
3 months-12
months (II)
1-5 year (III)
More than 5 year
(IV)
20,463,835
13,408,433
2,905,865
65,156
761,536
4,615,606
-
71,325
(22,166,206)
(17,479,087)
(4,593,322)
(87,294)
(1,339,566)
(4,812,238)
-
159,206
(4,029,860)
(104,734)
(371,643)
(87,294)
-
(4,678,734)
-
-
(3,234,724)
(769,750)
(890,649)
-
-
(133,504)
-
40,113
(13,401,987)
(9,360,291)
(1,998,722)
-
(79,975)
-
-
119,093
(1,499,635)
(7,244,312)
(1,332,308)
-
(1,259,591)
-
-
-
Translated into English from the report originally issued in Turkish
116
352 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
115
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 353
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
Foreign currency risk
Foreign currency risk is the risk arising from the change in the value of any financial instrument depending on the change in the exchange rate. The main foreign currencies are USD, EUR
and RMB that consist of the main risk for the Company. As of 31 December 2022, the Group’s exposure to foreign exchange risk, based on notional amounts, is presented at below table.
1. Trade receivables
2a. Monetary financial assets (Cash and banks accounts included)
2b. Non-monetary financial assets
3. Other
4. Current assets (1+2+3)
5. Trade receivables
6a. Monetary financial assets
6b. Non-monetary financial assets
7. Other
8. Non-current assets (5+6+7)
9. Total assets (4+8)
10. Trade payables
11. Financial liabilities
12a. Other monetary liabilities
12a. Other non-monetary liabilities
13. Short-term liabilities (10+11+12)
14. Trade payables
15. Financial liabilities
16a. Other monetary liabilities
16b. Other non-monetary liabilities
17. Long-term liabilities (14+15+16)
18. Total liabilities (13+17)
19. Net asset/(liability) position of off balance sheet derivative (19a-19b)
19a. Derivative assets
19b. Derivative liabilities
20. Loans defined as hedging instruments (*)
21. Net foreign currency asset/(liability) position (9-18+19+20)
22. Net asset/(liability) position of foreign currency monetary items
31 December 2022
31 December 2021
TL Equivalent
USD
EUR
RMB
TL Equivalent
USD
EUR
RMB
929,167
24,436,263
-
425,579
25,791,009
-
-
-
1,509
1,509
25,792,518
3,385,575
6,887,925
119,351
-
10,392,851
-
34,794,204
663,341
-
35,457,545
45,850,396
10,796,866
18,412,995
7,616,129
6,287,293
2,973,719
2,973,719
25,196
561,089
-
14,580
600,865
-
-
-
69
69
600,934
109,401
151,703
886
-
261,990
-
1,186,324
35,476
-
1,221,800
1,483,790
915,570
915,570
-
13,763
46,477
46,477
22,977
673,375
-
6,455
702,807
-
-
-
11
11
702,818
17,514
183,151
5,156
-
205,821
-
578,239
-
-
578,239
784,060
355,150
26,900
382,050
302,482
133,910
133,910
-
194,430
-
9,057
203,487
-
-
-
-
-
203,487
369,627
149,310
-
-
518,937
-
404,695
-
-
404,695
923,632
282,453
282,453
-
-
437,692
437,692
500,290
14,521,460
-
256,069
15,277,819
-
-
-
2,672
2,672
15,280,491
2,301,844
5,337,362
144,741
-
7,783,947
-
25,230,031
758,260
-
25,988,291
33,772,238
10,986,492
10,986,492
-
4,174,307
3,330,948
3,330,948
14,729
899,928
-
10,297
924,954
-
-
-
188
188
925,142
96,236
147,906
953
-
245,095
-
1,248,441
56,888
-
1,305,329
1,550,424
761,825
761,825
-
16,987
153,530
153,530
20,148
157,563
-
5,931
183,642
-
-
-
11
11
183,653
17,315
208,961
8,752
-
235,028
-
521,821
-
-
521,821
756,849
32,022
32,022
-
261,680
279,494
279,494
-
71,600
-
14,079
85,679
-
-
-
-
-
85,679
363,670
102,395
-
-
466,065
-
344,052
-
-
344,052
810,117
167,476
167,476
-
-
556,962
556,962
(*) Turkcell, the parent company of the Group, utilized a loan amounting to 290,008 EUR as a hedging instrument in order to hedge its net investment in subsidiary operating abroad from the foreign exchange
risk arising from the translation into Turkish Lira. Foreign exchange gain/loss of this loan is reccognized amoung “net investment hedge gains/losses on a foreign operation” under equity to be deducted from
the foreing exchange differences arising from the translation of the net investments in subsidiary operating abroad.
Translated into English from the report originally issued in Turkish
117
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
Sensitivity analysis
10% strengthening/weakening of TL, UAH, BYN and EUR against the following currencies at 31 December
2022 and 2021 would have increased/(decreased) profit or loss before taxation by the amounts shown below.
This analysis assumes that all other variables, in particular interest rates, remain constant.
Exchange Rate Sensitivity Analysis Table
31 December 2022
Profit/(Loss)
Equity
Appreciation of
foreign currency
Depreciation of
foreign currency
Appreciation of
foreign currency
Depreciation of
foreign currency
1- USD net asset/liability
2- Hedged portion of USD risk (-)
3- USD net effect (1+2)
86,904 (86,904)
-
86,904 (86,904)
-
-
(25,335)
(25,335)
-
25,335
25,335
4- EUR net asset/liability
5- Hedged portion of EUR risk (-)
6- EUR net effect (4+5)
(266,948)
-
(266,948)
266,948
-
266,948
-
(25,720)
(25,720)
-
25,720
25,720
7- RMB net asset/liability
8- Hedged portion of RMB risk (-)
9- RMB net effect (4+5)
TOTAL (3+6+9)
(117,328)
-
(117,328)
(297,372)
117,328
-
117,328
297,372
-
1,600
1,600
(49,455)
-
(1,600)
(1,600)
49,455
Exchange Rate Sensitivity Analysis Table
31 December 2021
Profit/(Loss)
Equity
Appreciation of
foreign currency
Depreciation of
foreign currency
Appreciation of
foreign currency
Depreciation of
foreign currency
1- USD net asset/liability
2- Hedged portion of USD risk (-)
3- USD net effect (1+2)
191,136 (191,136)
-
191,136 (191,136)
-
-
(17,218)
(17,218)
-
20,995
20,995
4- EUR net asset/liability
5- Hedged portion of EUR risk (-)
6- EUR net effect (4+5)
(421,664)
-
(421,664)
421,664
-
421,664
-
(24,020)
(24,020)
-
24,020
24,020
7- RMB net asset/liability
8- Hedged portion of RMB risk (-)
9-RMB net effect (4+5)
TOTAL (3+6+9)
(116,071)
-
(116,071)
(346,599)
116,071
-
116,071
346,599
-
1,960
1,960
(39,278)
-
(1,960)
(1,960)
43,055
354 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
118
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 355
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
Sensitivity analysis (cont’d)
Fair value estimation:
Cash flow sensitivity analysis for variable interest instruments:
Level classification of financial assets and liabilities carried at fair value:
As of 31 December 2022 and 2021, if the interest rates increase or decrease by 1 point, the equity and statement
of profit or loss will be affected as follows. When analyzing, it is assumed that all other variables, in particular
exchange rates, remain constant.
If the interest rate in Turkish Lira currency had been 1 basis point higher/lower on 31 December 2022, and all
other variables had remained constant, the profit before tax and non-controlling interests would have been
315,213 TL lower/higher (31 December 2021: 103,782 TL). The change in interest rate would not have a direct
impact on equity, without affecting the profit/loss.
The table below analyses financial instruments carried at fair value, by valuation method. The different levels
have been defined Level 1, Level 2 and Level 3 as follows:
• The information at Level 1 consists of unadjusted market prices obtained by an entity on the
measurement date for identical assets or liabilities traded in active markets.
• Level 2 information is observable information for an asset or liability, other than the exchange price
specified in the first level, either directly or indirectly.
• Level 3 information is information that does not rely on observable market data for determining the
fair value of an asset or liability.
31 December 2022
31 December 2021
Methods and assumptions used to determine the fair value of derivative transactions are disclosed in Note 35.
Interest Position
Financial Assets
Financial Liabilities
Financial Assets
Financial Liabilities
1 point increase in interest rates
-
(315,213)
1 point decrease in interest rates
-
315,213
-
(103,782)
-
103,782
After the financial crisis, the reform and replacement of benchmark interest rates such as USD LIBOR and
other Interbank Offer Rates (IBORs) offered by other banks have become a priority for global regulators.
Workings are ongoing for these changes. The Group's direct exposure to interest rate reform is its variable rate
debt of 236,361 USD. After Phase 2 was published in August 2020, the Group has structured cross-currency
and interest rate swap transactions to mitigate the variability of cash flows in the debt due to changes in the 6-
month USD LIBOR, which is the current benchmark interest rate and has hedged this debt. The total nominal
amount of these instruments in derivative products is 294,075 USD and the portion for hedging purposes is
194,837 USD.
The management has formed a committee to oversee the Group's USD LIBOR transition plan. This transition
project will include changes in relevant tax and accounting practices as well as in systems, processes, risk, and
valuation models. The Group anticipates that the biggest changes will be on the terms of contracts used to
update variable rate debt, intercompany swap contracts, and hedging transactions that reference to USD
LIBOR.
In calculating the fair value changes attributable to the Group's hedging reserve for its variable rate debt, the
Group has made the following assumptions that reflect its current expectations:
• Given the Group's 'Probable' requirements, it has assumed that the IBOR reform will not result in any
•
changes to the USD LIBOR interest rate on which its financial hedging debt is based.
In assessing whether the risk management transaction will be effective going forward, the Group has
assumed that there will be no changes resulting from the IBOR reform to the USD LIBOR interest
rate on which the cash flows of the financial hedging debt are based and the swap interest rate on
which the financial risk management transactions are based.
• The Group has not retrospectively changed the risk management fund for the period expected to be
affected by the reform.
•
356 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
119
Effects of valuation inputs to fair value
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
2022
31 December
2021
-
758,261
Contingent
consideration
Unobservable
Inputs
Risk-adjusted
discount rate
Expected
settlement
date
Inputs
31 December
2022
-
-
31 December
2021
6.8%-8.0%
in
instalments
between
2026-2031
Relationship of unobservable inputs to
fair value
2022
-
-
2021
An increase/decrease in
the discount rate
by 1 p would change FV
by (51,092) TL and
55,485 TL, respectively.
If expected settlement
date extended/shortened
by 1-year, FV would
change by (53,167) TL
and 57,145 TL,
respectively.
Changes in the consideration payable in relation to acquisition of BeST:
Opening balance
Total gain and loss:
Statement of profit or loss
Closing balance
(*) Note 25 for details.
31 December 2022 31 December 2021
475,879
758,261
(758,261)
-
282,382
758,261
Translated into English from the report originally issued in Turkish
120
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 357
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts are expressed in thousand of Turkish Lira unless otherwise stated. Currencies other than Turkish Lira are
expressed in thousands unless otherwise stated.)
38 NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)
40 FEES FOR SERVICES RECEIVED FROM INDEPENDENT AUDIT FIRM
Valuation inputs and relationships to fair value (cont’d)
It is assumed that the carrying values and fair values of financial assets and liabilities held to maturity converge
to each other.
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.
Financial assets:
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 34.
Financial liabilities:
As of 31 December 2022 and 2021; for the majority of the borrowings, the fair values are not materially
different from 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.
The carrying amounts and fair values of non-current borrowings and current portion of non-current borrowings
are as follows:
Bank loans
Debt securities
31 December 2022
Fair
Value
21,453,658
16,573,025
Carrying
amount
22,900,345
18,013,208
31 December 2021
Fair
Value
16,622,479
13,233,743
Carrying
amount
16,696,250
13,306,495
39 SUPPLEMANTARY CASH FLOW INFORMATION
Reconciliation of financial liabilities:
Balance at 1 January 2022
Cash inflows
Cash outflows
Other non-cash movements
Balance at 31 December 2022
Balance at 1 January 2021
Cash inflows
Cash outflows
Acquisition through business
combination
Other non-cash movements
Balance at 31 December 2021
Debt
securities
issued
(13,408,433)
(2,327,594)
2,856,875
(6,258,768)
(19,137,920)
Loans
(20,463,835)
(27,656,215)
24,529,166
(8,070,315)
(31,661,199)
Debt
securities
issued
(7,362,554)
(192,157)
645,926
Loans
(12,124,982)
(13,033,337)
12,984,771
Lease
liabilities
(2,905,865)
-
2,243,432
(2,392,798)
(3,055,231)
Total
(36,778,133)
(29,983,809)
29,629,473
(16,721,881)
(53,854,350)
Derivative
Assets, net
2,059,745
3,102,658
(2,740,022)
(540,888)
1,881,493
Total
(34,718,388)
(26,881,151)
26,889,451
(17,262,769)
(51,972,857)
Lease
liabilities
(2,098,886)
-
1,649,046
Total
(21,586,422)
(13,225,494)
15,279,743
Derivative
Assets, net
798,326
1,403,609
(1,718,061)
Total
(20,788,096)
(11,821,885)
13,561,682
-
(6,499,648)
(13,408,433)
(151,892)
(8,138,395)
(20,463,835)
-
(2,456,025)
(2,905,865)
(151,892)
(17,094,068)
(36,778,133)
-
1,575,871
2,059,745
(151,892)
(15,518,197)
(34,718,388)
The Group's explanation regarding the fees for the services received from the independent audit firms, which
is based on the letter of POA dated 19 August 2021, the preparation principles of which are based on the Board
Decision published in the Official Gazette on 30 March 2021, are as follows:
Audit fee for the reporting period (*)
Fee for other assurance services
31 December 2022
18,989
21
19,010
31 December 2021
10,009
77
10,086
(*) Compensations of foreign currency-denominated subsidiaries abroad have been converted to TL using the annual average exchange
rates of the relevant years.
41 OTHER MATTERS MATERIALITY AFFECTING THE CONSOLIDATED FINANCIAL
STATEMENTS
None.
42 SUBSEQUENT EVENTS
The 7.7 and 7.6 magnitude earthquakes centered in Kahramanmaraş, which occurred in our country on 6
February 2023, effected eleven provinces and caused significant loss of life and property. The process of
evaluating the effects of earthquakes on the Group's activities and consolidated financial statements is in
progress.
In accordance with the option provided by the Capital Markets Board's decision dated 9 February 2023, due to
the earthquake disaster on 6 February 2023, epicenter of which was Kahramanmaraş, that caused a devastation
and loss of lives, Board of Directors of Turkcell has resolved to make in-kind and/or cash donation and provide
all the appropriate benefits and aid up to 3,5 billion TL to the earthquake victims directly and/or through the
Ministry of Interior Disaster and Emergency Management Presidency ("AFAD"), the Turkish Red Crescent
("Kızılay") and/or other institutions and organizations announced by mentioned agencies.
Turkcell Dijital Teknolojileri Ltd. was established which Lifecell Digital owns 99.9998% that the Group owns
100% directly, and Kıbrıs Telekom owns 0.0002%. The company, established to operate electronic payment
services in KKTC, has a capital of 500 TL. The registration and announcement of the establishment were
completed on 26 January 2023.
Within the scope of our Board of Directors' share buy-back decisions on 27 July 2016 and the following dates,
the Company purchased a total of 1,000,000 shares at a price range of 33.46 – 34.00 TL with an average of
33.88 TL totaling 33,884 TL on 17 February 2023.
On 1 February 2023, Turkcell Ödeme has issued a new lease certificate amounting up to 150,000 TL with the
maturity of 3 May 2023 within the scope of 1,000,000 TL issuance ceiling approved by the CMB to be sold to
institutional investors in domestic market without public offering.
On 6 March 2023, Turkcell Finansman has issued a new coupon bond amounting up to 250,000 TL with the
maturity of 5 September 2023 within the scope of 1,000,000 TL issuance ceiling approved by the CMB to be
sold to institutional investors in domestic market without public offering.
358 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
Translated into English from the report originally issued in Turkish
121
Translated into English from the report originally issued in Turkish
122
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 359
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Our Offices
Glossary
Location
Address
Abbreviation
Description
ADANA PLAZA
SAKARYA NDC
ANKARA PLAZA
BAŞKENT NDC
Turhan Cemal Berikel Bulvarı No: 212 Seyhan - Adana
Bahçelievler Mah.Cumhuriyet Cad. Kamelya Sok. No:14 Sakarya - Adapazarı
Eskişehir Yolu 9. Km No:264 Pk.06510 Söğütözü - Ankara
Başkent İvedik Mah. 1323. Cadde No:37 Yenimahalle - Ankara
ANKARA DATA CENTER
Veri Merkezi Anadolu Osb. 12 Cd. No:15 Malıköy Sincan- Ankara
ANTALYA PLAZA
BURSA PLAZA
Kızıltoprak Mah. 915 Sok.No:3 Muratpaşa-Antalya
Organize Sanayi Bölge Müd. Kırmızı Cad. No:4 Nilüfer - Bursa
DİYARBAKIR PLAZA
Bağcılar Mahallesi Urfa Bulvarı Turkcell Plaza Apt. No:151 Bağlar- Diyarbakır
EDİRNE NDC
ERZURUM PLAZA
GAZİANTEP PLAZA
HATAY NDC
KÜÇÜKYALI PLAZA / HEAD
QUARTER
Şükrü Paşa Mah. Kıyık Cad. Hilly Otel Yanı No:254 Edirne
Ilıca yolu Organize Sanayi Bölgesi 4.Sok Erzurum
Kocaoğlan Mah. Demokrasi Bulvarı No:185 / 1 Şahinbey - Gaziantep
Güzelbirlik Mah. Yunus Emre Cad. No:11-B Güzelburç Hatay
Aydınevler Mahallesi İnönü Caddesi No:20 B Blok 34854 Maltepe - İstanbul
KARTAL DATA CENTER
Topselvi Mahallesi Dipçik Sokak No:31 Kartal - İstanbul
TEPEBAŞI PLAZA
Meşrutiyet Cad.No:71 Tepebaşı 34430 İstanbul
MAHMUTBEY NDC
Mahmutbey Mah İnönü Caddesi No:89 Bağcılar - İstanbul
DUDULLU DATA CENTER
Dudullu OSB Nato Yolu 4. Cadde No:1 Ümraniye - İstanbul
İZMİR PLAZA
Kazım Dirik Mah. 367/7 Sokak No:12 Bornova - İzmir
İZMİR DATA CENTER
1 0005. Sk. No:37 İTOB OSB Tekeli Menderes -İzmir
İZMİT PLAZA
KAYSERİ PLAZA
Yahya Kaptan Mah. Bahçeşehir Sok. No: 30 İzmit-Kocaeli
Kayseri Organize Sanayi Bölgesi 13. Cadde No:16 Melikgazi- Kayseri
GEBZE DATA CENTER
Gebze OSB, Tembelova Mevkii Mah. 3300 Sok. No: 3314 Gebze-Kocaeli
KONYA OFFICE
KONYA NDC
MALATYA NDC
MERSİN PLAZA
MUĞLA PLAZA
Parsana Mh. Zümrütova Sok.Selçuker Merkez Kat:8 No:1 Selçuklu/Konya
1.Org.San. Sıhhiye Sok.Selçuklu/ Konya
Hoca Ahmet Yesevi Mah. Mahfuz Sok. No: 35/A Yeşilyurt - Malatya
Portakal Mah. 80050 Sok. No:3 Toroslar – Mersin
Musluhittin Mahallesi Atatürk Bulvarı No:61 Muğla
SAMSUN PLAZA
Mimar Sinan Mah. 160.sok.No:18 PK:55200 Atakum - Samsun
EUROPEAN DATA CENTER
Karaağaç OSB Mh.48.Sok.No: 1/1 Kale Kilit fab. yanı Kapaklı-Tekirdağ
TRABZON PLAZA
Mısırlı Mah. Hasan Turfanda yolu No:3 Çukurçayır – Trabzon
VAN PLAZA
İpek yolu 8 km Yeni Mah. Sahil Sok. No: 27 Edremit - Van
3G
4.5G
5G
ADS
OSCE PA
ARPU
Base Station
Beacon
BİST
IT
ICTA
CELTIC
CİMER
Roaming
DSS
EMS
ER
ESG
ETSI
EUREKA
FCPA
Gbps
GRI
GSM
GSMA
HTK
IDC
IIRC
IMS
IoT
ITEA
IVR
KEP
KPI
LTE
LTE-Advanced
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
American Depositary Share
Organization for Security and Co-operation in Europe Parliamentary Assembly
Average monthly revenue generated per mobile subscriber
A fixed transceiver device in each cell of a mobile communications network enabling communicati-
on between mobile phones and radio signals within the cell
A location-based data provider utilized in My Dream Companion project
Borsa İstanbul
Tools for generating, collecting, accumulating, processing, recovering, disseminating, protecting,
and assisting
Information Communication Technologies Authority
EUREKA Cluster focusing on the Information and Communications Technology and
Telecommunications
The Presidential Communication Center
A mobile communication feature that allows subscribers of one network to use their own mobile
phones and numbers within the coverage area of another operator.
Digital Service Provider
Emergency Mobile Services
Integrated Reporting Framework
Environmental, Social, Governance
European Telecommunications Standards Institute
(Exceptional Unconventional Research Enabling Knowledge Acceleration) It is an intergovernmental
R&D organization financed by governments of more than forty countries
Foreign Corrupt Practices Act
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 structu-
re being used in Europe, Japan and various other countries
(The GSM Association - Global System for Mobile Communications) The GSM Association is a com-
munity consisting of mobile operators and telecom-related companies with the aim of standardizing
and developing the Mobile Telecommunications Sector
Communication Technology Cluster
(International Data Corporation) American market research company examine the development of
technology
International Integrated Reporting Council
(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 rece-
ived through sensors
EUREKA Cluster program supporting innovative, industry-driven, pre-competitive R&D projects in the
area of Software-intensive Systems & Services
Interactive Voice Response
Registered E-mail
Key Performance Indicator
Technology that ensures to achieve very high speeds by combining carriers in the same or different
frequency bands
A mobile communications standard comprising advanced features such as carrier coupling, which
enables mobile broadband speed of over 150 MBps in LTE
360 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.1
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 361
TURKCELL AT A GLANCE
VALUE CREATING TURKCELL
POSITIVE IMPRINT TO OUR BUSINESS
INCLUSIVE POSITIVE IMPRINT
POSITIVE IMPRINT TO THE ENVIRONMENT
APPENDICES
Abbreviation
Description
m-TOD
M2M
MHz
MSCI ESG
NB-IoT
NFVI
NGMN
NPS
NYSE
OFAC
OIC-CERT
OSS
RPA
RTM
ABC
Sarbanes-Oxley
(SOX)
SASB
SBTi
Scratch
SD-WAN
SDG
SEC
SingleRAN
SKD
SMS
SOAR
SOC
CMB
NGO
Carrier
Aggregation
Tbps
TÇM
TODİEK
Togg
TTK
IFRS
UN
UN WEPs
UNGC
WBCSD
WEF
Association of Mobile Telecommunication Operators
Machine to Machine is the general name of the technology that allows devices to exchange infor-
mation and conduct transactions without human intervention
(Megahertz) A frequency unit
Morgan Stanley Capital International Environmental, Social, Governance Index
A technology defined by 3GPP for Internet of Things
Network Infrastructure Virtualization Infrastructure
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 tech-
nology 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
New York Stock Exchange
Office of Foreign Assets Control
The Organization of the Islamic Cooperation – Computer Emergency Response Team
Operational Support System
Robotic Process Automation
(Real Time Monitoring) 24/7 monitoring and reporting system on the system
Anti-Bribery and Anti-Corruption
Corporate and Auditing Accountability, Responsibility, and Transparency Act
Sustainability Accounting Oversight Board
Science Based Targets Initiative
Scratch is a programming language developed by MIT (Massachusetts Institute of Technology), whi-
ch has a user-friendly interface, designed for the use of children between the ages 8 and 16
Acronym for software-defined networking in a wide area network (WAN)
Sustainable Development Goals
U.S. Securities and Exchange Commission
Radio network equipment that can support technologies of different generations (2G, 3G, 4G and
5G) at the same time
Sustainable Development Association of Türkiye
A mobile communication system allowing users to receive and send messages that can be constitu-
ted of both alphabetic and numerical characters of up to 160 characters, to and from mobile phones
through a short message service
Security Orchestration Automation and Response
Service Operations Center
Capital Markets Board
Non-Governmental Organisations
A technique allowing more bandwidth and consequently higher speeds to be obtained by joining
frequencies called carriers
(TeraBytes Per Second) One trillion bits or bytes per second
Consumer Solution Center
Turkcell Common Values and Code of Business Ethics
Turkey's Automobile Joint Venture Group Inc.
Turkish Code of Commerce
International Financial Reporting Standards
United Nations
UN Women’s Empowerment Principles
United Nations Global Compact
World Business council for Sustainable Development
World Economic Forum
Other Considerations
Explanations regarding other matters as per the CMB legislation and other relevant regulations to which we are subject are given below:
• Explanations regarding the amendment of Company’s Articles of Association in 2022 are included in the ordinary general assembly mee-
ting minutes, which was held on June 16, 2022:
Minutes
•
Information regarding the changes in the Board of Directors in 2022 are included in the ordinary general assembly meeting minutes, which
was held on June 16, 2022:
Minutes
• No extraordinary general assembly was held in 2022.
• No administrative or judicial sanctions were imposed on our Company’s upper management.
• Turkish Commercial Code Article 376 is not applicable as the Company made profits in 2022.
• There is no cross-ownership subsidiary in which the direct contribution to the capital exceeds 5%.
Contact
Turkcell İletişim Hizmetleri A.Ş.
Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi
No:20 Küçükyalı Ofispark B Blok - Maltepe / İSTANBUL
Registration No: 304844
www.turkcell.com.tr
dahaiyibirdunya@turkcell.com.tr
Reporting Advisor & Design:
www.kiymetiharbiye.com/en/
Legal Disclaimer
The sustainability section of our integrated report has been prepared in accordance with the principles of the Global Reporting Initiative (GRI),
the United Nations Global Compact, and the United Nations Women’s Empowerment Principles. Sustainability data has been provided for
informational purposes only and is not intended to form the basis of any investment decision. The publication of this data does not constitute
an offer or invitation to sell Turkcell shares or any part of an offer or invitation to such a sale process. The information and related documents
provided in this section are accurate, made in good faith, and based on reliable sources as of the date of this report. However, Turkcell does
not make any statements, warranties, or promises regarding this data.
362 | TURKCELL 2022 INTEGRATED ANNUAL REPORT
GRI 2.1
TURKCELL 2022 INTEGRATED ANNUAL REPORT | 363
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