Contents
06 Introduction
46 Turkcell Creating Value
6 Message from the
Chairman of the Board
8
Board of Directors
14 Message from CEO
16 Management Team
21 Top Management
of Subsidiaries
28 About the Report
30 Turkcell at a Glance
36 Turkcell 2023 Awards
40 Turkcell Group:
Developments in 2023
42 2023 Strategic Objective
and Managerial
Achievement Assessment
47 Turkcell Sustainability
Management and
Involvement of Senior
Management
48 Turkcell Sustainability
Priorities
50 Turkcell Sustainability
Strategy: Positive Impact
in Sustainability
52 Supported Sustainable
Development Goals
54
Interactions with Our
Stakeholders
56 Turkcell’s Sustainability
Initiatives Memberships
60 Measuring the
Value Created
61 Our Core Competencies
62 Our Strategic Focuses
Initiatives and
Opportunities
63 Leadership in Telecom
65 Digital Services
66 Digital Business
Services (DBS)
68 Digital Financial
Services
70 Strong Corporate
Governance
78 Effective Risk and
Crisis Management
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL
84 Financial Capital
Human Capital 106
Appendices
124 Manufactured Capital
Social Capital 148
190 APPENDIX-1: Awards Received by Turkcell in 2023
191 APPENDIX-2: Turkcell ISO Certificates
192 APPENDIX-3: Cooperated National, International and
Non-Governmental Organizations
193 APPENDIX-4: GRI Content Index
197 APPENDIX-5: UNGC Progress Table
198 APPENDIX-6: Sustainability Principles Compliance
Framework Table
202 Group Companies and Other Information
on Corporate Governance
206 Statement Of Compliance With Corporate
Governance Principles
207 Corporate Governance Principles Compliance Report
211 Corporate Governance Information Form
217 Roles of Turkcell Board Members at Other Companies
217 Conclusion of the Subsidiary Report
218 Turkcell Group: 2023 Financial & Operational Review
223 2024 Guidance
224 Our Companies and Sector Developments
228 Subsequent Events After the Reporting Period
230 Consolidated Financial Statements
336 Our Offices
337 Glossary
338 Contact
132 Intellectual Capital
Natural Capital 178
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Message from Chairman of the Board
By contributing to the "Türkiye Tek Yürek" campaign,
we supported the effort to strengthen the spirit
of social unity and cooperation promoted by this
campaign. Furthermore, through our "Gönül Bağı"
projects, we engaged in the process of social
solidarity and reconstruction in the wake of the
earthquake. This process witnessed exemplary
unity, fueled by our employees and customers'
extraordinary efforts and support.
Şenol Kazancı
Chairman of the Board
Dear Stakeholders,
Early in 2023, Türkiye suffered one of the
greatest disasters of its history, a major
earthquake that impacted many of its
cities. During this challenging period,
as Turkcell, we became part of a wide-
spread solidarity effort to heal society's
wounds and support those affected by
the awful event. By contributing to the
"Türkiye Tek Yürek" campaign, we sup-
ported the effort to strengthen the spir-
it of social unity and cooperation pro-
moted by this campaign. Furthermore,
through our "Gönül Bağı" projects, we
engaged in the process of social soli-
darity and reconstruction in the wake
of the earthquake. This process wit-
nessed exemplary unity, fueled by our
employees and customers' extraordi-
nary efforts and support.
Additionally, this period stood out as
a time marked by tragic outcomes of
conflict and internal turmoil witnessed
increasingly
worldwide and by the
evident challenges brought on by cli-
mate change. In response to the grow-
ing impacts of the latter, we intensified
our sustainability strategies, working to
increase the use of green energy and
eco-friendly technologies. Through-
out the year, despite challenges and
uncertainties, we continued on our
mission of creating shared value main-
taining close communication with all
our stakeholders without compromis-
ing our principles of transparency and
strong governance.
As Turkcell, fully aware of the eco-
nomic and strategic
importance of
the telecommunications sector, we
have continued our operations with a
deep sense of responsibility towards
our ecosystem and to create sustain-
able value. In this process, in line with
our Company's mission, we have me-
ticulously invested in Türkiye's digital
future while further strengthening our
infrastructure. In this era, where digi-
talization increasingly occupies every
aspect of our lives, we have developed
innovative solutions tailored to the
evolving needs of diverse customers
and sectors. With these solutions, we
aim to add value to our customers and
consolidate our leadership as the digi-
tal transformation leader. As a result of
these focused efforts, the past year has
been another one boasting operation-
al and financial successes that confirm
our drive for sustainable growth.
While the rapid spread of digital trans-
formation in the business world and
the increasing use of technology offers
companies many opportunities, they
also invite cyber security threats. In this
context, as Turkcell, we blend our ex-
pertise in digital operatorship with our
extensive experience in cybersecurity
and information security to meet the
needs of all our corporate and individ-
ual customers.
Through the Turkcell New Technolo-
gies Venture Capital Investment Fund,
we invest in high-potential technolo-
gy startups in areas such as financial
technologies, cybersecurity, artificial
intelligence, gaming, and health tech-
nologies, contributing to the growth
of these companies while supporting
the entrepreneurship ecosystem. With
these investments, we aim to help the
startups achieve their goals while
creating collaborations that bring our
Company long-term strategic and fi-
nancial value.
like Togg,
As Turkcell, participating in innovative
and visionary projects
in
which we hold a 23% stake, and con-
tributing to Türkiye's digital future in
every field is important for us. Through
Turkcell, we offer Togg users innova-
tive payment solutions through Paycell,
while an enhanced music experience
is available via our digital music plat-
form, fizy. These projects contribute
significantly to national development
in technology and innovation, as well
as socially and economically. We will
continue to support such collabora-
tions and innovations in the future.
Since 2000, with the pride and re-
sponsibility of being the only Turkish
Company traded on both the Borsa
Istanbul (BIST) and the New York Stock
Exchange (NYSE), we have complied
with the capital market regulations
of both countries, conducted effec-
tive internal control and internal audit
activities and continuously improved
our corporate governance process-
es. By adopting the best practices in
corporate governance, we focus on
transparency, accountability, and fair
management. Following these princi-
ples, we enhance market confidence
and investor interest and strengthen
our vision for sustainable growth and
long-term value creation. We are tak-
ing firm steps to further solidify our po-
sition in international capital markets
and advance our leading position in
corporate governance. On this path,
the support and trust of you, our val-
uable stakeholders, are our greatest
motivators.
At Turkcell, beyond offering our cus-
tomers high-quality services, we prior-
itize touching and improving lives using
the power of technology and commu-
nication. Our efforts to achieve societal
benefit and reduce inequality are real-
ized through our social responsibility
projects. Through these projects, we
continued to stand by our community
and support our people in 2023.
As Turkcell, our commitment to sustain-
ability goes beyond aiming to protect
our planet, and we view it as a funda-
mental component of the social and
economic responsibilities that fall on us
as a sector leader. In this context, with
our operational wind power plant and
the solar energy plant project that will
have a capacity of 300 MW, we are
taking decisive steps to source 65% of
our energy from our own renewable
resources. Step by step, these strategic
investments bring us closer to our goal
of net-zero carbon emissions by 2050.
At Turkcell, we approach sustainability
by managing our social, economic, and
environmental impacts in a balanced
way across all our activities. With this
comprehensive perspective, we work
to ensure that everyone can equally
benefit from the opportunities technol-
ogy offers. Our efforts towards empow-
ering women in the technology sector
have materialized through our goal of
increasing the ratio of female employ-
ees within the Company. Our projects
"Women Writing the Future" and "Equal
Opportunities, Equal Conditions" sup-
port women's entrepreneurship and
employment in technology. Together
with all our stakeholders, we at Turkcell
will continue contributing to building a
more equitable and sustainable future.
This year, we are proud and thrilled to
celebrate the 100th anniversary of our
Republic. At this historic milestone, we
commemorate the spirit of the inde-
pendence struggle led by Mustafa Ke-
mal Atatürk and the glorious day when
the foundations of our Republic were
laid. With the motto "This love never
ends," we express our commitment to
this honorable heritage and our end-
less love for our country as we advance
into the future through Türkiye's Digital
Century with hope and courage.
I extend my deepest gratitude to our
valued customers, who empower
us with their support for the Turkcell
brand; to our shareholders and inves-
tors, who have enabled our Compa-
ny to rise on solid foundations; to our
employees, who, with their superior
effort and passion for work never shy
away from any difficulty, and to all our
stakeholders. With the support of our
stakeholders, we are fully committed to
continuing our work centered on ethi-
cal values and social benefit, to carry
on our mission of adding value to the
lives of our customers and the business
processes of institutions, and to remain
on our path as "Türkiye's Turkcell" with
determination.
Sincerely,
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He was born in 1975, in İstanbul. He graduated from the Istanbul
University, Faculty of Law. Şenol Kazancı worked as TVNET General
Manager between 2007 and 2011, as the Advisor of the Prime Minis-
ter 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 held on April 15, 2021, Şenol Kazancı was elected
to the Member of the Turkcell Board of Directors and he is Chairman
of the Board of Directors since September 14, 2023.
Figen Kılıç, born in 1970 in Gaziantep, graduated from Selçuk Univer-
sity, Electrical Electronics Engineering department and received her
Master’s Degree from Gebze High Technology Institute, Electrical
Engineering Department. Trained in project management, process
management, and test engineering, 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 moving to İstanbul Municipality BELBİM A.Ş. in
1995 for a lengthy period, working on payment projects as R&D engi-
neer, Project Coordinator and R&D Manager. In 2010, she transferred
to E-Kent Ödeme Sistemleri A.Ş. where she served as IT and Oper-
ational team manager for electronic ticket and payment systems
integration and management projects in various cities of Türkiye. 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 Infor-
mation and Communication Technologies Authority (ICTA) of Türkiye
as its first women board member. Kılıç became the vice president of
ICTA in 2018. After her term in office ended in 2019, she acted as Ser-
vice Delivery General Manager of the Republic of Türkiye Ministry of
Family 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.
Şenol Kazancı
Chairman of the Board
Figen Kılıç
Board Member
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL 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 PAK
Yatirim A.Ş. and NORA Elektrik A.Ş. and as the board member of compa-
nies 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 Türkiye (TURK EXIMBANK), Board Member of Turk-
cell, Board Member of İstanbul Development Agency (İSTKA), Member
of Coordination Council for the Improvement of Investment Environ-
ment (YOİKK), Member of High Advisory Board of MÜSİAD, Chairman of
the Board of Trustees of OLPAK FOUNDATION, Member of the Founding
Committee of International Technological, Economic and Social Re-
search Foundation (UTESAV), Member of the Board of Trustees of Tourism
Development and Education Foundation of İstanbul Chamber of Com-
merce (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 (Independ-
ent Industrialists and Businessmen’s Association) and the Chairman of
MÜSİAD High Advisory Board, Council Member of B20 Steering Commit-
tee of Türkiye, 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 Effi-
ciency 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 Com-
mercialize Center Istanbul (CCI), Board Member of Türkiye 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 by Istanbul Technical
University, Ahi Evran University and Mehmet Akif Ersoy University. Olpak
is married and is the father of two children. He speaks English very well.
Nail Olpak
Board Member
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 mas-
ter'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 Direc-
tor. He also served as a member of the Board of Directors and Risk Com-
mittee 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 servic-
es to International Telecommunications in 2004. In addition to his posi-
tion at Turkcell, Sir Julian is also The Chairman of eBuilder AB (Sweden)
and a Senior Advisor at Viasat (U.S.). He is also a Director of Cybereason
(U.S.). He works as a Senior Advisor at AlixPartners (U.S. Consultancy) and
worked 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 (Soft-
ware), China Mobile and Verizon Wireless (U.S.).
Afif Demirkıran was born in Siirt in 1952. Having completed his primary and
secondary education in Siirt, Afif Demirkıran graduated from Mining Fac-
ulty 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 var-
ious executive positions in private sector companies, as General Man-
ager 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 Türkiye. 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 Türkiye-EU Joint Parliamen-
tary Commission. In the 23nd and 24th periods, he was the President in the
Türkiye-EU Joint Parliamentary Commission. In the 22nd, 23rd and 24th pe-
riods, he served as the Chairman of Türkiye-Spain Inter-Parliamentary
Friendship Group. In the 24th period, he also was the Deputy Chairman
of Türkiye-Pakistan Inter-Parliamentary Friendship Group. Mr. Demirkıran
was appointed as an independent member to the Turkcell Board of Di-
rectors 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.
Sir Julian Horn-Smith
Board Member
Afif Demirkıran
Independent Board Member
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Prof. Dr. Hüseyin Arslan, who was born in 1968, received his bachelor's de-
gree 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 na-
tional 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 Fac-
ulty of Engineering at Istanbul Medipol University in 2013. Hüseyin Arslan
served as a consultant to many domestic and international companies
and organizations such as Anritsu, Türksat, Savronik and TÜBİTAK. Having
over 100 United States Patent and Trademark Office's (US) patents and
applications, 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 Engi-
neering department and holds an MSc in Management (Grande Ecole)
from HEC School of Management in Paris with a major in strategic man-
agement. 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 between July 2007 and June 2017. Follow-
ing 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 Il-
iad in November 2020. Serdar Cetin was a board member of Turknet Ileti-
sim Hizmetleri A.S. and its then parent company NetOne Holdings S.a.r.l.,
between 2007 - 2013. He served as a board member or board observer
in several telco or technology companies including Machinezone, which
is 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 was a board member
of WOM S.A. Chile from July 2015 till December 2023. Additionally, he was
a partner of Novator Partners LLP, a London based investment advisory
firm until April 2023 and is currently a Partner of PurpleCrest Investments
Llp. Prior to joining Novator, Mr. Cetin worked at Merrill Lynch investment
banking 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 Direc-
tors. He is fluent in English and French.
Hüseyin Arslan
Independent Board Member
Serdar Çetin
Independent Board Member
Melikşah Yasin, born in Istanbul in 1975, graduated from Istanbul Uni-
versity Faculty of Law in 1996. In the same year, he began his master's
degree at Istanbul University's Institute of Social Sciences and com-
pleted it in 1998 with his thesis titled “Control of the Administration by
the Parliament.” In 1997, he started working as a research assistant
in the Department of Administrative Law at the Marmara Universi-
ty Faculty of Law. He initiated his doctoral studies at Marmara Uni-
versity's Institute of Social Sciences in 1998 and completed them in
2002 with his doctoral thesis titled “The Capital Markets Board and
Its Transactions.” Mr. Yasin conducted academic research at King's
College in 2007 and 2008. In 2010, he was appointed as an associ-
ate professor at the Istanbul University Faculty of Law. Since 2016, he
has served as a professor of Administrative Law at Istanbul Universi-
ty. He has also held various administrative positions at the university.
Mr. Yasin, who has authored books and numerous articles in the field
of administrative law, is currently a visiting academic at Oxford Uni-
versity Faculty of Law. Mr. Yasin is married and a father of one child.
On September 14, 2023, he was elected as a member of the Turkcell
Board of Directors.
Ayşe Nur Bahçekapılı was born in Istanbul in 1954 and is from Trabzon
originally. Ms. Bahçekapılı completed high school education in Istanbul
Kız Lisesi and later graduated from Istanbul University Faculty of Law.
Starting her career as a private attorney, Ms. Bahçekapılı served as a
member of the Istanbul Bar Association Board of Directors and General
Secretary from 1988 to 1992. She was also a member of the Board of Di-
rectors of the Union of Turkish Bar Associations from 1997 to 2005. In 2007,
she was elected as a member of parliament from the second district of
Istanbul. From 2007 to 2009, Ms. Bahçekapılı served as the Speaker of
the Constitutional Committee of the Turkish Grand National Assembly,
and chaired the Türkiye-Cuba Inter-parliamentary Friendship Group.
Ms. Bahçekapılı served as the Deputy Group Chairman of the Justice
and Development Party from 2009 to 2013. Between 2013 and 2015, she
held the position of Deputy Speaker of the Turkish Grand National As-
sembly, and resumed the role between 2015 and 2018. From 2020 to 2023,
Ms. Bahçekapılı served as the Chief Advisor to the President and contin-
ues to hold the position of a member of the Legal Policies Council of the
Presidency. On September 14, 2023, she was elected as a member of the
Turkcell Board of Directors.
Melikşah Yasin
Board Member
Ayşe Nur Bahçekapılı
Board Member
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Message from CEO
Our primary goal is to strengthen our digital
sovereignty and make Türkiye a leader in the 'Digital
Century.’ The 100th anniversary of our Republic is
not only a celebration for us but a starting point to
renew our hopes and commitments for the future.
With faith in our country and future generations, we
will continue to work towards a brighter future.
Ali Taha Koç, PhD
Chief Executive Officer
Dear Turkcell Family and Stakeholders,
As Turkcell, we are proud to lead our
country's digital transformation journey
on the 100th anniversary of the founding
of our Republic, a significant milestone.
Inspired by our past, we continue to add
value to the future of Türkiye by main-
taining our pioneering role in innova-
tion and technology. Our primary goal
is to strengthen our digital sovereignty
and make Türkiye a leader in the 'Digital
Century.’ The 100th anniversary of our Re-
public is not only a celebration for us but
a starting point to renew our hopes and
commitments for the future. With faith in
our country and future generations, we
will continue to work towards a brighter
future.
Despite worldwide economic and social
challenges, for Turkcell, 2023 has been a
year of sustained growth and strength-
ened leadership in the industry. As the
Turkcell family, we continue our efforts
with unparalleled solidarity to heal and
rebuild in the aftermath of the earth-
quake, the disaster of the century that
affected 11 of our provinces. Together, on
this journey of solidarity, we look forward
to the future with hope and pledge to
remain beside our society. Our priority is
to accelerate our digital transformation
journey and continue making technolo-
gy accessible to everyone. With our pro-
jects supporting digital transformation
in education, health, the business world,
and every aspect of social life, we are fo-
cused on adding value to every segment
of society and investing in the future of
Türkiye.
While maintaining our leadership in mo-
bile, technology integration, and data
center fields, we have continuously im-
proved our innovative product and ser-
vice portfolio, successfully meeting our
customers' needs. To advance these
achievements further, we will continue to
focus on offering the most suitable solu-
tions that meet their changing expecta-
tions, placing customer satisfaction at
the center. Additionally, we will continue
taking pioneering steps to manage our
operations sustainably. And by increas-
ing our investments in renewable energy
sources, we aim to leave a livable and
greener world for future generations.
As Turkcell, we continue to create value
for our stakeholders with our diversified
business strategy. With our mobile mar-
ket leadership continuing with a wide
margin, we registered 799 thousand net
subscriber additions in 2023. In line with
our vision of strengthening Türkiye's digi-
tal infrastructure, we continued our fiber
investments, reaching 5.8 million home
passes, which brings us the contentment
of knowing we’re on the right track. And
so, with our innovative product and ser-
vice portfolio, we will continue to meet
our customers' increasing and changing
needs.
In 2023, we further advanced our fi-
nancial and operational achievements,
strengthening our leading position in the
industry. Thanks to our expanding sub-
scriber base and stable price increases,
our revenues and operational profitabil-
ity increased, leading to strong financial
and operational results in 2023. By the
end of 2023, our consolidated revenues
had risen 14.6% year-over-year to TRY
107.1 billion. Our consolidated EBITDA rose
19.9% to TRY 43.9 billion. Our net profit in-
creased by 82.5% compared to the previ-
ous year, to TRY 12.6 billion.
This year, we continued to offer compre-
hensive solutions to meet our customers'
digital needs through our applications
developed entirely by Turkish engineers.
Those applications include BiP, TV+, fizy,
and lifebox, which are brands within the
Turkcell ecosystem. In 2023, our digital
services' number of stand-alone paid us-
ers increased by 9% year-on-year to 5.6
million.
As a leading technology integrator, we
pioneer Türkiye's digital transformation
with our digital business services. In ad-
dition to our traditional telecom services,
with our extensive services in managed
transformation projects, data
digital
center and cloud solutions, cybersecuri-
ty, and new technologies, we enable our
customers to stand out among the com-
petition and meet their increasing needs.
As Türkiye's largest and highest-quality
data center operator, we combine Türki-
ye's strategic geographical position with
our high-tech solutions. We continue our
efforts to transform our country into a
major data center hub and ensure that
data remains within our borders. With our
four new generation data centers, we
host 31.6 thousand square meters of white
space. Through Turkcell Cloud services,
we host the information technology infra-
structures of institutions at these centers,
offering cost advantages and flexibility.
In our techfin services, Paycell and Finan-
cell, we continued to expand our portfo-
lio and diversify our activities with inno-
vative initiatives. The pre-sale payments
for Togg, Türkiye's leading initiative in the
mobility sector and the first domestical-
ly-produced electric car, were success-
fully realized through the Paycell wallet.
This transaction once again proved the
strength of Paycell's technological infra-
structure and its active role in the mobile
payment sector. Alongside providing fi-
nancing for technological products and
services to individual and corporate cus-
tomers through Financell, we have also
successfully launched new loan solutions
such as solar energy system (SES) loans,
furniture, and home appliance financing.
Furthermore, by offering more in-depth
options in shopping and pre-owned car
loans, we have diversified our financing
solutions and focused on responding to
customer needs across a broader spec-
trum. Within the framework of Turkcell's
financial services vision, Turkcell Dijital
Sigorta A.Ş., operating under the "Wiyo"
brand since June 2023, began offering
our customers a customer-focused and
technology-based insurance experience.
4.5G technology was the last major inno-
vation focused on people. Now, with 5G,
we will focus on the Internet of Things and
smart industrialization. We will turn to-
wards the new possibilities and applica-
tions of 5G technology's enhanced con-
nectivity options for smart applications.
With the introduction of 5G technology
in Türkiye, we aim to be the company that
offers the highest quality 5G experience.
This reflects our promise to provide our
customers with an uninterrupted and fast
connection.
On Turkcell’s sustainability journey, we
see our commitment to renewable en-
ergy not just as an effort to protect our
planet but as a fundamental component
of the social and economic responsi-
bilities we bear as a leader in the tech-
nology and telecommunications field.
With our existing wind power plant and
our ongoing 300 MW solar power plant
project, we are taking decisive steps to-
wards sourcing 65% of our energy from
our own renewable resources. These stra-
tegic moves bring us closer to our goal of
net-zero carbon emissions by 2050 every
day and strengthen our environmental
sustainability while making our business
model more competitive and resilient.
In addition to our sustainability efforts, we
emphasize social responsibility projects
aimed at spreading digital literacy and
technology awareness across all seg-
ments of society. Within our vision of "dig-
ital literacy for everyone from 7 to 70," we
aim to create awareness of artificial intel-
ligence and technology and disseminate
knowledge. This two-pronged approach
facilitates our goal of zero carbon emis-
sions and strengthens the societal inte-
gration and inclusiveness of technology.
We believe that with the steps Turkcell
will take in the coming periods for envi-
ronmental and social sustainability, we
will shape Türkiye's Digital Century under
the leadership of Turkcell.
At Turkcell, while effectively using artificial
intelligence solutions in every area of our
operations, we ensure the ethical use of
AI. The chatbot we developed, serving
200 thousand customers daily, provides
a concrete example of how these tech-
nologies can be applied in practice. Our
Turkcell AI team has undertaken a signif-
icant task in developing the "In-Car Face
Detection, Recognition, and Analysis Sys-
tem" for Togg, Türkiye's domestic and na-
tional automobile.
Dear stakeholders, as we continue to-
wards Turkcell’s 30th anniversary with the
mission of building a sustainable future,
merging technological innovations with
societal benefit, and leading Türkiye's dig-
ital transformation journey, we continue
working determinedly for a greener, fair-
er, and technologically advanced world
with your support and contributions.
2023 stood out as a year where we
celebrated our achievements and ex-
perienced unity and solidarity. I have
full confidence that we will continue to
build a better future for our society by
leveraging the power of technology. I
express my gratitude to our colleagues,
our Board of Directors, and all our stake-
holders who have continuously support-
ed this journey.
Sincerely,
14 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Management Team*
Ali Taha Koç, PhD was born in Ankara in 1980. He completed his un-
dergraduate degree in 2001 at Bilkent University, Department of
Electrical and Electronics Engineering with full scholarship. After-
wards, he received his master's and doctorate degrees in the De-
partment of Electrical Engineering at University of Texas at Dallas,
both with full scholarships. Ali Taha Koç, PhD joined Intel in 2006 as
a research and development (R&D) engineer in the USA. During his
tenure at Intel, he developed 61 patents, published 23 scientific ar-
ticles, and developed and managed several international projects.
In 2013, he became one of the 10 awarded engineers who devel-
oped the most patents at Intel. After returning to Türkiye in 2014, he
started to work as the Chief Counsellor of the Prime Ministry and in
the same year he was appointed as the Head of Information Tech-
nologies of the Presidency. During his tenure at the Presidency, he
also managed the formation of the State Information Coordination
Center (SICC) in the Presidency Security Policies Department, and
started the information flow from all ministries and security units to
the Presidency. Koç was appointed as the Head of Digital Transfor-
mation Office on September 12 , 2018. Besides his duties at the Pres-
idency, he also served as a board member of Türksat Uydu Haber-
leşme Kablo TV ve İşletme A.Ş. (Türksat Satellite Communications
Cable TV and Business Inc.). Koç teaches graduate and doctorate
courses at the Department of Electrical and Electronics Engineering
at Bilkent University. He is also a licensed pilot, fluent in English and
married with one child.
Graduated from the Marmara University Department of Business
Administration, Kamil Kalyon began his professional career at the
Ernst Young Türkiye (E&Y) Tax department in 1996. During his twelve-
year career at E&Y, he took part in many strategic projects, ulti-
mately holding the position of Senior Manager. Between 2008 and
2012, he worked as the Finance Director in Kont Bilişim Group oper-
ating in the information technologies sector. He entered OMV Petrol
Ofisi A.Ş., a subsidiary of the Austria-based OMV Group, as Tax Di-
rector 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 worked as the Financial Planning and Anal-
ysis Director as of February 2021. He has been appointed as Turkcell
Chief Financial Officer as of September 2023. Kalyon holds the titles
of Sworn-in Certified Financial Advisor and Independent Auditor.
Ali Taha Koç, PhD
Chief Executive Officer
The information regarding the changes in Executive Officers that took place within our Company in 2023 is included in our
announcements dated February 8, 2023, February 21, 2023, September 11, 2023, September 14, 2023, September 19, 2023, September 25, 2023,
October 13, 2023, November 9, 2023, November 9, 2023, and December 20, 2023.
Kamil Kalyon
Chief Financial Officer
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Kadri Özdal graduated from Dokuz Eylül University, Faculty of
Economics and Administrative Sciences, Department of Public
Administration. He started his professional career at Vodafone in
1999 and worked in sales, marketing and commercial operations
departments, and later joined Turk Telekom in sales development,
channel optimization and management. He worked as sales de-
velopment director and then acting as CSO between 2011-2012.
Kadri Özdal took part in foundation and management of n11.com
which is one of the largest e-commerce platforms in Türkiye and
worked in the CSO role. In February 2016, he started as Alternative
Sales Channels Director at Turkcell and subsequently served as
non-exclusive and digital sales channels, later as Retail Channels
Sales Director and finally as Executive Vice President of Consum-
er Sales. Özdal was appointed as Turkcell Chief Sales Officer as
of November 2023.
Mustafa Demirhan completed his undergraduate studies in the
Electrical and Electronics Engineering department of Bilkent Uni-
versity with a full scholarship in 2001, and received his master's
degree in the Electrical and Electronics Engineering department
of Rutgers University in 2003.
Mustafa Demirhan, who started his professional career as a re-
search and development engineer at Intel in 2003, developed
14 patents until 2007. In 2007, he started working on smartphone
software at Microsoft. Later, he took on the manager role in pro-
jects such as Microsoft 365, Microsoft's first successful cloud com-
puting product, and subsequently, Microsoft Azure. He served as
a manager in open-source cloud computing projects at Google
in 2018, and returned to Microsoft in 2021 to manage critical pro-
jects in the field of cyber security.
Kadri Özdal
Chief Sales Officer
As of December 2023, Mustafa Demirhan started his role as Chief
Information and Communication Technologies Officer at Turkcell.
Mustafa Demirhan is married and has four children.
Mustafa Demirhan
Chief Information and Communication
Technologies Officer
Mr. Erkan Durdu completed his undergraduate studies in the Radio
and Television department of Istanbul University and received his
master's degree in the Communication Sciences department at
Marmara University. He began his career as a program producer at
TRT Istanbul Radio, and worked as a reporter and editor at Kanal
7, Radikal, and Akşam newspapers. From 2003 to 2011, he served as
a Minister Advisor at the Prime Ministry. Between 2011 and 2014, he
held the position of Deputy Director General of Press, Publishing,
and Information at the Prime Ministry. From 2014 to 2021, he served
as Vice Chairman of the Board and Deputy General Manager at
TRT. Between 2022-2023, he held the position of General Secretary
at TÜBİTAK. In addition to these roles, he served in various impor-
tant positions such as a member of the Audit Committee at the De-
velopment Bank, a member of the Board of Directors at Euronews,
and a member of the Board of Directors at the Press Advertise-
ment Agency. He provided leadership in areas such as Human Re-
sources, Budget and Financial Operations, Broadcast Strategies,
Change Management, Content Management, and Digital Business
Services in the institutions where he worked. As of November 2023,
Durdu has been appointed as Turkcell Chief People and Business
Support Officer.
Ali Uysal, a graduate of Istanbul University Faculty of Law, com-
pleted his master's degree in European Union Law at Stockholm
University Faculty of Law. Ali Uysal started his professional career
as a lawyer in 2003 and worked as a senior lawyer in the corpo-
rate consultancy department of law firms serving national and
international clients until 2009. In 2009, he started working at Sun-
Express Airlines, a joint venture company of Turkish Airlines and
Lufthansa, as Legal Counsel responsible for the establishment
of the Company's internal legal department and continued until
2014. Ali Uysal, who served as the General Legal Counsel of Turk-
ish Airlines between 2014 and 2019, has been working as the Cor-
porate Legal Affairs Director within the Deputy General Manager
of Legal Regulation at Turkcell İletişim Hizmetleri A.Ş. since 2020.
As of November 2023, Uysal was appointed as Turkcell Chief Le-
gal and Regulation Officer.
Erkan Durdu
Chief People and Business
Support Officer
Ali Uysal
Chief Legal and
Regulation Officer
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Top Management of Subsidiaries
Murat Akgüç completed his undergraduate degree at Boğaziçi
University, Department of Industrial Engineering, and the Execu-
tive MBA program at Rotterdam School of Management. He has
over 20 years of experience in business development, technolo-
gy, telecommunications, strategy, digital innovation and venture
capital. Akgüç, who started his career at the Osmanlı Bank, lat-
er worked in treasury projects in the banking sector. In 2004, he
served as Vice President of Business Development and Strategy
at Credit Europe Bank in the Netherlands. Akgüç, who returned to
Türkiye in 2015, held senior management positions in the fields of
technology, digital product development, strategy and market-
ing in the media and gaming industry on an international scale.
He started working as Deputy General Manager responsible
for Venture Capital and Technology Investments at the Türkiye
Wealth Fund, which he joined in 2021. He led the establishment of
the Türkiye Technology Fund - TTF, which invests in Türkiye Ven-
ture Capital funds, and other important projects, especially the
acquisition of Türk Telekom, which is Türkiye's largest acquisition
in 2022. In addition to these duties, he served as a Member of the
Board of Directors of Türkiye Sigorta and Member of the Board of
Directors of TVF Technologies Investments. As of November 2023,
Akgüç was appointed as Turkcell Chief Marketing and Digital
Services Officer.
Prof. Dr. Vehbi Çağrı Güngör was born in Ankara in 1979. He re-
ceived his B.Sc. and M.Sc. degrees from Middle East Technical
University, Department of Electrical and Electronics Engineer-
ing in 2001 and 2003. He obtained his Ph.D. degree from the
Department of Electrical and Computer Engineering at Geor-
gia Institute of Technology (Atlanta, GA, USA) in 2007. Receiv-
ing the Full-Professor title in 2018, Prof. Dr. Güngör's research
areas are in the fields of next-generation wireless communi-
cations, 5G and 6G mobile networks, Internet of Things and
Artificial Intelligence.
Prof. Dr. Güngör served as a project manager at Eaton Cor-
poration, a researcher at Siemens Corporate Research, and
an Executive Board Member in the TÜBİTAK TEYDEB BILTEG.
Prof. Dr. Güngör has received many international and nation-
al scientific awards. Prof. Dr. Güngör's research projects have
been funded by several institutions, such as the European
Union, the Ministry of Science, Industry and Technology, and
TÜBİTAK. Prof. Dr. Güngör has more than 100 research articles
published in international peer-reviewed journals and con-
ferences and several patents.
Prof. Dr. Güngör, who joined Turkcell as Chief Network Tech-
nologies Officer as of November 2023, is married and the fa-
ther of three children.
See page 17 for the resume.
Murat Akgüç
Chief Marketing and Digital
Services Officer
Ali Taha Koç, PhD
Turkcell Chief
Executive Officer
İsmet Yazıcı received his bachelor’s degree in Electrical-Electronics
Engineering from Hacettepe University in 1992, and his postgradu-
ate 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.
Beginning his professional career in 1993, Yazıcı served as the Re-
search & Development Engineer, International Sales Engineer, Ro-
mania Country Manager, Product Marketing Manager, EMEA Re-
gion CDMA Business Development Director, and Enterprise Leader,
respectively, at the Türkiye and USA offices of Nortel until 2009.
İsmet Yazıcı joined Turkcell in 2009. Mr. Yazıcı has been serving as the
General Manager of lifecell, Turkcell’s subsidiary in Ukraine, since
May 2017. Prior to this position, Yazıcı worked as the Deputy Gen-
eral Manager of Sales and Business Development at Global Tow-
er 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.
İsmet Yazıcı
General Manager of
lifecell Ukraine
Prof. Dr. Vehbi Çağrı Güngör
Chief Network
Technologies Officer
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Erdal Yayla graduated from Marmara University Faculty of Econom-
ics and Administrative Sciences in 1999 and completed the Executive
Development Program at Wharton School in 2016. Mr. Yayla started
his career as a Senior Auditor at PricewaterhouseCoopers in 1999,
and then worked as a Financial Controller at LafargeHolcim in 2002.
BeST General Manager Erdal Yayla joined Turkcell İletişim Hiz-
metleri 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), re-
spectively 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 Gen-
eral Manager role starting from November 2018 until March 2020 in
addition to his existing responsibility. Mr. Yayla serves as BeST Gen-
eral Manager since March 2020.
Mr. Aynur graduated from Department of Metallurgical Engineering
at Middle East Technical University in 1993. After working in differ-
ent companies in the private sector, 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 Af-
fairs, Sales Manager in charge of Large Scale Businesses, Corpo-
rate Sales Director in charge of Large Scale Businesses and Corpo-
rate Sales Director in charge of Mid-Scale Businesses at Turkcell.
1 Çağatay Aynur's term of office ended as of January 2024.
Metin Tuğtağ has been appointed as the General Manager of
Turkcell Global Bilgi as of February 2024.
Çağatay Aynur1
General Manager of
Turkcell Global Bilgi
Korhan Bilek has a M.S. degree from Boğaziçi University Electrical
and Electronics Engineering department, and received his MBA
from University of Rochester. He began his professional life as Re-
search Analyst at the Federal Reserve Bank. He served as an an-
alyst at AkInvest between 2002 and 2004 and Finance Director at
Sabancı Holding between 2004 and 2013. He worked as the CFO at
Teknosa for 3 years and was a Board member at Carrefoursa Türki-
ye between 2011 and 2016.
Korhan Bilek joined Turkcell team as Investor Relations and Merg-
ers & Acquisitions Director in November 2016, and was appointed as
Treasury and Capital Markets Management Director in December
2018. In July 2020, he was appointed as CEO and Board member of
Turkcell Finansman AŞ. He also serves as the Coordinator of Turkcell
Financial Services, and he is Board member at Turkcell Ödeme Hiz-
metleri AŞ, Paycell Europe GMBH, Turkcell Sigorta Aracılık Hizmetleri
AŞ and Sofra Kurumsal ve Ödüllendirme Hizmetleri AŞ.
Erdal Yayla
General Manager of BeST
Z. Korhan Bilek
Turkcell Financial Services Coordinator
and General Manager of Financell
Murat Küçüközdemir graduated from İstanbul Technical Universi-
ty, Department of Electronics and Communication Engineering in
1992. Subsequently, he completed Insead Business School Lead-
ership Development and IMD Business School Global Leadership
programs. He started his professional life in 1993 and assumed
technical and managerial 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 Glob-
al 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 Gen-
eral Manager since February 1, 2021.
Murat Küçüközdemir
General Manager of
Kuzey Kıbrıs Turkcell
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Erkin Kılınç received his bachelor’s degree in Mechanical Engineer-
ing from Istanbul Technical University in 1998, and Executive MBA
degree from Işık University in 2003. Kılınç began his career 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 Türkiye
Sales Director at RWE (2011-2015) and as Assistant General Manager
at Limak Energy (2015-2017). Erkin Kılınç joined Turkcell Energy Solu-
tions as the General Manager in 2017.
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 establish 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 Man-
agement Director in 2015 and was appointed as General Manager
of Turkcell Digital Business Services as of 1 April 2022.
Atilla Yıldız, graduated from İstanbul Technical University, Depart-
ment of Electronics and Communication Engineering in 1999. Atilla
Yıldız joined Turkcell family in 2000. After serving at departments of
Network Operations, Service Control Center and Business Intelli-
gence Systems, he managed 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 Solu-
tions Director. As of September 2021, Mr. Yıldız was appointed as At-
mosware Teknoloji General Manager.
Erkin Kılınç
General Manager of Turkcell
Energy Solutions
Atilla Yıldız
General Manager of
Atmosware Teknoloji A.Ş.
Serhat Dolaz graduated from Yıldız Technical University with a de-
gree in Electronics and Communication Engineering and complet-
ed the Bahçeşehir University MBA program. Serhat Dolaz joined the
Turkcell family in 2009. After taking several technological manage-
ment positions in Turkcell Teknoloji A.Ş. and Paycell, he took on re-
sponsibilities as CTO and Deputy CEO of Paycell. As of May 1, 2022,
Serhat Dolaz is the General Manager of Paycell, a new generation
payment and financial services platform. 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 Institu-
tions of Türkiye).
Gürkan Arpacı
General Manager of
Turkcell Digital Business Services
Serhat Dolaz
Paycell General Manager
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Emre Erdem graduated from Istanbul Technical University, Depart-
ment of Management Engineering. Emre Erdem, who started his
professional career as Financial Auditor at Arthur Andersen in 2000,
worked as Senior Auditor at Ernst & Young until 2004 and moved to
the liberalized telecommunications sector as Billing & Customer Ac-
counts Manager at Borusan Telekom.
In 2007, he started working at Turkcell Superonline, the fixed tel-
ecommunication 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 Opera-
tor Relations and Wholesale Department.
In addition to leading the International and Wholesale Team, Emre
Erdem has been serving as Turkcell Superonline General Manager
since April 2021.
Uğur Çağlar graduated from Middle East Technical University In-
dustrial 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 Türkiye and the Middle East.
He joined the financial services sector in 2007 with TEB (a BNP Par-
ibas Company) as Strategic Planning Manager. He later moved on
to the insurance domain with BNP Paribas Cardif as Chief Market-
ing 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
started working for MetLife as AVP of Business Development and
Corporate Sales. He joined Turkcell as the General Manager of
Turkcell Dijital Sigorta A.Ş. in August 2022.
Emre Erdem
General Manager of
Turkcell Superonline
Uğur Çağlar
General Manager of
Turkcell Dijital Sigorta A.Ş.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL About the Report
We are pleased to present
to our stakeholders our
performance and future
approach in the areas
of social, economic,
environmental and
corporate governance, in
addition to our financial
achievements, through the
Integrated Annual Report,
which we have published
for the fourth time this year.
This report, which we have published
to provide Turkcell's stakeholders with
an objective and holistic assessment
of our integrated and sustainable val-
ue creation approach and the results
we have achieved in this direction,
in accordance
has been prepared
with the Turkish Commercial Code
(TCC) and the Capital Markets Board's
(CMB) Communiqué Serial II.14.1 "Com-
muniqué on Principles Regarding Fi-
nancial Reporting in Capital Markets"
and the
(IR)
Framework Principles published by
the International Integrated Reporting
Council (IIRC).
Integrated Reporting
This report has been prepared by
Turkcell Iletisim Hizmetleri A.S. in ac-
cordance with the GRI Standards for
the period between 1 January 2023
and 31 December 2023. In addition to
the financial and operational data in-
cluded in the report as required by law,
the main content of the report is Turk-
cell's sustainability priorities, which
are the key performance areas of
the integrated value model. Turkcell's
sustainability priorities have been
identified among social, economic,
environmental and sectoral issues in
accordance with the principles set out
in the GRI Standards through methods
that ensure multi-stakeholder par-
ticipation. The content of the report
also responds to the United Nations
Global Compact Communication on
Progress, the CMB Sustainability Prin-
ciples Compliance Framework and
the SASB Telecommunication Services
Indicators, to which Turkcell became
a signatory in 2007. The scope of the
content is designed to meet the infor-
mation needs of Turkcell's long-term
investors (shareholders, bondholders
and potential investors) as well as a
general portfolio of corporate stake-
holders, including Turkcell employees,
customers, public institutions and or-
ganisations and non-governmental
organisations.
The terms "Turkcell", "Company" and
"Organisation" in this report refer to
Turkcell İletişim Hizmetleri A.Ş. The fi-
nancial information presented in this
report is presented on a consolidat-
ed basis in accordance with legal
requirements and international stand-
ards, and covers the organisational
integrity of Turkcell. Unless otherwise
stated, the social and environmental
performance data refer to the Turk-
ish operations, which represent the
most significant part of the company's
operations.
You can send your questions, com-
regarding
ments and suggestions
Turkcell's Integrated Value Creation
Model and details of our activities, fi-
nancial performance and future goals
to dahaiyibirdunya@turkcell.com.tr.
For explanations of
abbreviations and technical
definitions used in the report, please
refer to the Glossary section.
28 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 29
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Turkcell at a Glance
Established in 1994
as the pioneer of the
telecommunications
sector in Türkiye, Turkcell
has continued its steady
progress over the past
30 years. Today, Turkcell
continues to operate as
Türkiye's leading provider
of communications and
technology services.
Please visit
www.turkcell.com.tr for further
information about Turkcell.
Turkcell has played a key role in the de-
velopment of the telecommunications
sector in Türkiye with the innovations it
has brought to the sector over the past
30 years. Founded in 1994 as a mobile
communications company, Turkcell has
transformed itself over the years, first as
an integrated communications opera-
tor and then as a digital operator. To-
day, together with its group companies
operating in different service catego-
ries, Turkcell offers its customers a wide
range of value-added and innovative
digital services, including voice, mes-
saging, data and IPTV services over
its mobile and fixed networks, as well
as digital services for individuals and
businesses, digital financial solutions
such as insurance and loans, and dig-
ital mobility solutions through Togg, in
which Turkcell is a shareholder. Turkcell,
which has expanded its operations
abroad over the years, currently op-
erates in four countries in addition to
Türkiye, namely Belarus, the Turkish Re-
public of Northern Cyprus and Ukraine1
(discontinued operations).
Turkcell launched its first LTE mobile
communication services on 1 April 2016
and today provides services in 81 prov-
inces of Türkiye with LTE-Advanced and
5-carrier aggregation technologies at
speeds of up to 1.6 Gbps. Turkcell's total
spectrum bandwidth of 234.4 MHz cor-
responds to 43% of the total spectrum
available to mobile operators in Türkiye.
Providing fibre data access at speeds
of up to 10 Gbps in fixed technology,
Turkcell is at the forefront of 5G efforts
in Türkiye with the test studies carried
out over its pilot network and the lead-
ing roles it has assumed in national and
international consortia. As of 29 July
2022, Turkcell started to offer 5G tech-
nology at Istanbul Airport with the au-
thorization of the Ministry of Transport
and Infrastructure. During the reporting
period, Turkcell continued its prepara-
tions for the 5G services planned to be
launched in Türkiye in the coming peri-
od with its pilot applications.
Turkcell shares have been traded on
both NYSE and BIST since July 2000.
Thus, Turkcell is the only Turkish compa-
ny whose shares are traded simultane-
ously on two different stock exchanges.
Turkcell debt instruments are listed on
the Irish Stock Exchange. Turkcell is also
listed on the MSCI ESG Index and BIST
Sustainability Index. As of 31 December
2023, Turkcell had revenues of TRY107.1
billion and assets of TRY247.1 billion.
Turkcell’s Shareholder Structure
Shareholders
Nominal (TRY thou-
sand)
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
26.2
19.8
54.0
100.0
* Publicly traded shares also include ADS trading at NYSE.
1 As per our Company's Board of Directors’ decision dated December 20, 2023; a share
transfer agreement was signed on December 29, 2023 for the transfer of all shares, along
with all rights and debts, of lifecell LLC, LLC Global Bilgi, and LLC Ukrtower, which are
Turkcell's subsidiaries operating in Ukraine, to NJJ Capital. The sale of the Ukrainian assets
remains subject to the completion of closing conditions. As of December 31, 2023, lifecell
LLC, LLC Global Bilgi and LLC UkrTower have been classified as a disposal group held for
sale and as discontinued operations.
30 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 31
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
Global Bilgi Pazarlama
Danışmanlık ve Çağrı
Servisi Hizmetleri A.Ş.
100%
Kıbrıs Mobile
Telekomünikasyon
Limited
100%
CJSC
100%
Eastasian
Consortium B.V.
100%
Turkcell Ödeme
ve Elektronik Para
Hizmetleri A.Ş.
9%
Turktell
Bilişim Servisleri A.Ş.
100%
Limited Liability
Company
100%
Rehberlik
Hizmetleri
Servisi A.Ş.
100%
Lifecell
Digital Limited
100%
Lifetech LLC
100%
Turkcell
Gayrimenkul
Hizmetleri A.Ş
100%
Turkcell
Satış A.Ş.
100%
Kule Hizmet
ve İşletmecilik
A.Ş.
100%
Atmosware
Teknoloji Eğitim
ve Danışmanlık
A.Ş.
100%
Turkcell
Finansman
A.Ş.
100%
Turkcell Dijital
Teknolojileri Limited
100%
Lifecell Ventures B.V.
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 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%
Turkcell Enerji
Çözümleri ve
Elektrik Satış
Ticaret A.Ş.
100%
Lifecell Bulut
Çözümleri A.Ş.
100%
Lifecell Müzik
Yayın ve İletim
A.Ş.
100%
Dijital Eğitim
Teknolojileri
A.Ş.
51%
Turkcell
Sigorta Aracılık
Hizmetleri A.Ş.
100%
Lifecell TV
Yayın ve İçerik
Hizmetleri A.Ş.
100%
Turkcell Dijital
Sigorta A.Ş.
100%
Turkcell
Ödeme ve
Elektronik Para
Hizmetleri A.Ş.
90.91%
Türkiye’nin
Otomobili
Girişim Grubu
Sanayi ve
Ticaret A.Ş.
23%
Beltower LLC
100%
Ukrtower LLC
100%
Paycell Europe
GmbH
100%
Sofra
Kurumsal ve
Ödüllendirme
Hizmetleri A.Ş.
66.6%
Boyut Grup
Enerji Elektrik
Üretim İnş. San.
ve Tic. A.Ş.
100%
32 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 33
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Our Vision
Superior digital services
for a better future
Our Mission
To add value to the digitalization journey of our
customers, both in Türkiye and across the globe,
and enrich their lives with our continuously
improving competencies and robust ecosystem
34 | TURKCELL 2022 ENTEGRE FAALİYET RAPORU
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 35
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Turkcell 2023 Awards
Achievement in Customer
Excellence Awards
Employer Brand Stars
Turkcell - Diamond Award in
Communication (GSM) Category
TV+ - Gold Award in the Digital
Platform Category
Turkcell Superonline -
Silver Award in the Internet
Service Providers Category
Paycell - Silver Award
in Electronic Money Applications
Category
GNÇYTNK - Graduate
Recruitment Programme -
Gold Award
T.Life - Use of Digital
Programme - Gold Award
T.Life - Employer Brand
Strategy - Silver Award
T.Life - Internal Communication
Programme - Bronze Award
Brandon Hall
Excellence Awards
Brandverse Awards
GNÇYTNK - Best Unique or
Innovative Talent Acqusition
Programme - Gold Award
Future of Leadership Masters -
Best Advance in Competencies
and Skill Development - Gold
Award
Inclusive and Effective Benefits
Supporting Flexible Working
Model - Best Advance
in Benefits Strategy and
Administration - Bronze Award
Superwomen of Cyber Security
- Best Unique or Innovative
Learning and Development
Programme - Bronze Award
Tekno Waste Project
- Silver Award in the
Social Responsibility and
Sustainability Category
Pasaj Aylardan Cuma
Project - Media/Sectoral:
Silver Award in E-commerce
Category
Paycell Feed Integrations
Project - Bronze Award in
Media / Sectoral Finance
Category
Turkcell Store Geforce Now
Mall IQ Project - Bronze
Award in Media / Outdoor
Category
MarTech Awards
Escaping Eyes Project - First
Prize in the category of
Wonders Created with Low
Budgets
Paycell Feed Integrations
Project - First Prize in the
Best Marketing Automation
Technology Category
TV+ Dynamic Streaming Ads
Project - First Prize in the Best
Media Technology Category
Fizy Decibelmetre Project
- First Prize in the Best Use
of Technology in Content
Marketing Category
Fizy Moodmeter Project -
First Prize in the Best Use
of Technology in Mobile
Applications Category
Happy Place
to Work
selected
We were
from
among 303 companies in the
"Türkiye's Happiest Workplac-
es" survey organised by Happy
Place to Work, a platform es-
tablished by academics and
consultants to help compa-
nies on their way to creating a
happy workplace culture. We
were also named the happi-
est workplace in the telecom-
munications industry and re-
ceived the Excellent Employee
Experience Certificate.
36 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL TURKCELL HAKKINDA
Turkcell 2023 Awards
21st Golden Compass Awards
T.Life - Best Internal Communication Project
GNÇ SporFest - Sponsorship
Communication - Other
Women Writing the Future Climate Idea
Marathon - TÜHİD
KAGİDER 1e1 Gender
Equality Award
IDC DX Summit 2023
RPA Marathon Programme
First Prize in the Future Enterprise of
the Year Category
Best Mobile App Awards
İşTurkcell Online Mobile Application
Silver Award
13th GLOBEE® International
Business Awards
Emergency Robot Project
2 Awards in Best Use of Technology in
Customer Services Category
Stevie 2023 The International
Business Awards
Contact Risk-Scoring System
Bronze Stevie Award in the Legal
Solution Category
Association for Talent
Development
RPA Training and Development
Programme
Talent Development Innovation
Award
MIXX (Marketing and
Interactive Excellence) Awards
TV+ Sahibinden F1 Viral Project
Special Award
Best Innovative Service
Provider of the Year
Turkcell Transport Network
Best Innovative Service Provider
of the Year Award
International Loyalty Awards
Barrier-Free Stores
First Prize in the Best Customer
Experience Category
Data Center ICT Management
Innovation of the Year
DCMAN Application in Data Centre
White Space Operation Processes
2nd Prize in Data Centre ICT
Management (DCIM) Innovation of
the Year Category
RDCNOF 2023
Showcase Project
The Best Agile Project Paper in all
Industries Third Prize
Web Excellence Awards
Corporate Compass
Platform
Award in Corporate & B2B
Category
Green All-optical
Network Forum 2023
Super Wi-Fi project
Great Advencement of
Smart Home Service Award
Felis Awards
Google Hack Project
5 Felis Award
Burnout Syndrome Film
Curious Felis Award
T.Life 1 Year Old
Achievement Award
IDC CIO Awards
Turkcell Omnichannel Project
3rd Prize in Change Management
Category
Stevie Awards
Turkcell Market Instant Store Stock
Display Project - Gold Stevie Award in the
Award for Innovation in Sales
Technology Industries Category
Atmosphere Application - Gold Stevie
Award in the "Sales & Marketing
Mobile Application" Category
LegalTech Breakthrough Awards
Contract Risk Scoring Application
Overall Legal Analytics Innovation of
the Year Award
Secret CV HR Stars
T.Life
2023 Best Employer Brand of the
Year
YTU Business World Awards
Step into the Future Project
Best Social Responsibility Project
Award selected by students
Boğaziçi University Business
World Awards
Technology Company of the
Year Award
Bosphorus
Environment Awards
Turkcell Transform to
Education Project
Recycling Project of the Year
Award
Future of Cloud & AI
Robotic Device Requirement and
Order Management, Robotic Process
Automation Project
Future of Cloud & AI Award
Turkcell Data Centre Energy Saving with
Reinforcement Learning Pro
Future of Cloud & AI Award
All awards received by Turkcell in 2023
can be found in Annex 1 - Awards Received by
Turkcell in 2023 of the Report.
38 | TURKCELL 2023 ENTEGRE FAALİYET RAPORU
TURKCELL 2023 ENTEGRE FAALİYET RAPORU | 39
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCE Turkcell Group: Developments in 2023
Turkcell Group companies, with 24,352 employees, operate in
4 countries, namely Türkiye, Belarus, the Turkish Republic of
Northern Cyprus (TRNC) and Ukraine2 (discontinued operations).
TÜRKİYE
Turkcell Türkiye
92.0
Billion TRY Revenue
38.0
Million Mobile
Customers
3.1
Million Fixed
Customers
1.4
Million IPTV
Customers
BELARUS
BeST
1.5
Million Mobile Customers
1.4
Billion TRY Revenue
2 As per our Company's Board of Directors’ decision dated December 20, 2023; a share transfer agreement was signed on December 29, 2023 for the
transfer of all shares, along with all rights and debts, of lifecell LLC, LLC Global Bilgi, and LLC Ukrtower, which are Turkcell's subsidiaries operating in
Ukraine, to NJJ Capital. The sale of the Ukrainian assets remains subject to the completion of closing conditions. As of December 31, 2023, lifecell LLC,
LLC Global Bilgi and LLC UkrTower have been classified as a disposal group held for sale and as discontinued operations.
TRNC Kuzey Kıbrıs Turkcell
0.6
Million Mobile Customers
1.1
Billion TRY Revenue
UKRAINE
(DISCONTINUED OPERATIONS)
lifecell
11.7
Million Mobile Customers
7.6Billion TRY Revenue
40 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 41
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL 2023 Strategic Objective and Managerial
Achievement Assessment
Revenue increased by
14.6%
to 107.1
billion TRY
EBITDA of TRY
billion with
43.9
19.9%
growth
Net income realised at
billion with an increase
TRY 12.6
of 82.5%
Strong revenue,
EBITDA and
net income
performance thanks
to our diversified
business model
with strategic focus
areas, consistent
price increases
and our inclusive
people-centred
strategy
Double-
digit mobile
ARPU growth
supported by
increased usage
and upgrades
Debt ratio below
the sector average
thanks to effective
balance sheet
management;
healthy foreign
currency
position thanks
to disciplined
financial risk
management
Strong cash
flow generation
through successful
operational
performance
despite
challenging
macroeconomic
conditions
Net leverage ratio at
0.5x
level3
USD 22 million
net long FX position4
TRY 7.3
billion free cash
flow generation5
18.4%
mobile ARPU6
increase
0.7%residential fiber ARPU
growth
Successful
subscriber
acquisition
performance with
strong infrastructure,
quality customer
service and rich
value proposition
493
thousand net
mobile subscriber
additions
71.5%
postpaid subscriber
base, which
reached
169
thousand net fiber
subscriber additions
799
thousand total net
additions7
Continued
strong
momentum in
our strategic
focus areas
3 As of 4Q21, we revised the definition of our net debt calculation to include "financial assets" reported under current and non-current assets. Required reserves held at CBRT are also
included in the net debt calculation. We believe that these assets are highly liquid and easily convertible into cash without any significant change in value.
4 Advance payments included.
5 Free cash flow calculation includes EBITDA and the following items as per IFRS 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.
6 Excluding M2M.
7 Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers
Continued
growth in data
usage through
digitalisation,
increased
smartphone
penetration and
4.5G user growth
Average monthly
mobile data usage
per user increased
to 17.0 GB with
15.6%
increase
19.4%
increase in total digital
services revenues
23.0%
revenue growth
in digital business
services
28.9%
growth in
Techfin revenues,
28.6%
growth in
Paycell revenues
27.7%
growth in
Financell revenues
42 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Strong
performance in
sustainability
indices
Strengthening
Türkiye's sector
leadership in
intellectual
property
CDP Climate Change
Rating upgraded
from A- to
A
Being included in the
BIST Sustainability
Index since the first
day
Listing in the BIST
Sustainability 25
Index
992
Number of R&D
employees1
550
national patent
applications;
1,019
registered patents2
6
ongoing international
projects on Eureka
platforms (supported
by TÜBİTAK),
8
ongoing HORIZON
2020/Europe
projects,
8
ongoing national
projects supported
by TÜBİTAK
Increasing
momentum
towards net zero
targets
76,258
GJ energy savings,
40,267.93
tonnes CO2e emission
reduction
750
green field
commissioning
Increasing reuse
practices in
e-waste
management
Promoting equal
opportunities
and diversity
35.2%
female employees
31%
female employees
graduated from
engineering
departments
35%
female employees in
IT positions
76
Whiz Kids classes
in BİLSEMs across
Türkiye
1 The number of R&D employees working at Turkcell Teknoloji is 992. Turkcell Group has 1,497 R&D employees in total.
2Turkcell Group has 4,144 national and 261 international patent applications and 1,039 registered patents in total.
44 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Turkcell Creating Value
Turkcell Sustainability Management and
Involvement of Senior Management
Integrated Corporate Value Creation Management Structure of Turkcell
Board of Directors
Integrated Value Creation Committe
Integrated Value Creation Committe
Sustainability
Committe
Project Teams
Turkcell's Board of Directors, which is
elected by the General Assembly in
accordance with the provisions of our
Articles of Association, is the highest
governing body of the company and its
duties and competencies are defined
in accordance with the provisions of
the Turkish Commercial Code. Turkcell's
Board of Directors has direct responsi-
bilities such as evaluating the strategic
management of our Integrated Value
Creation Model and monitoring the
progress of these matters.
The main task of the Integrated Value
Creation Committee, which operates
at the senior management level under
the leadership of the Chairman of the
Board of Directors, is to ensure the link
between the strategic level and the op-
erational level of Turkcell's Integrated
Value Creation Model. The Committee
regularly monitors the Company's activ-
ities and informs the Board of Directors
and relevant committees.
While it is the responsibility of Turkcell's
senior management to implement the
activities carried out within the Inte-
grated Value Creation Model and the
integrated reporting process, it is the re-
sponsibility of Turkcell's Board of Direc-
tors to review these activities. Our Com-
mittee reports to the Board of Directors
on the activities carried out within the
framework of the Environmental, Social
and Governance (ESG) policy and ob-
tains its approval for disclosure to the
public through the Integrated Annual
Report published annually.
The responsibilities of the Integrated
Value Creation Committee include;
Providing guidance for report plans
within the scope of integrated
value creation process and
integrated report,
Reviewing the integrated value
creation process in line with Turkcell
's strategy,
Providing direction to the content
of the integrated report and giving
opinion on the draft.
The Turkcell Sustainability Committee,
which operates with the participation of
the company's business unit directors, is
responsible for identifying sustainability
priorities and the risks and opportunities
arising from these issues in line with the
ESG policy, determining and implement-
ing short and long-term action plans for
these issues, and reporting the results ob-
tained to the Board of Directors through
the Integrated Value Creation Commit-
tee. Efforts to improve performance in the
identified target areas are carried out by
project teams, which are formed with the
participation of the Company's senior
management and are determined ac-
cording to their areas of expertise.
Turkcell's environmental, social and gov-
ernance policies become effective after
being discussed by the Sustainability
Committee and the Integrated Value
Creation Committee and approved by
the Board of Directors. The prepared
policies are published in the
Sustainability section of Turkcell's cor-
porate website in order to provide them
to our stakeholders for their views and
information.
In line with Turkcell's quality manage-
ment philosophy, many sustainability
issues are managed through systems
created by following ISO standards. In
this context, ISO 9001 Quality Manage-
ment System, ISO 14001 Environmental
Management System, ISO 14064 Green-
house Gas Calculation and Verification
Management System, ISO 27001 Infor-
mation Security Management System,
ISO 27017 Cloud Information Security
System Standard, ISO 22301 Business
Continuity Management System,
ISO
45001 Occupational Health and Safe-
ty Management System and ISO 50001
Energy Management System are the
system standards followed in managing
sustainability issues. The currency and
level of implementation of these system
standards are verified and certified
through periodic independent external
audits. The greenhouse gas verification
process for the period between 1 Janu-
ary 2023 and 31 December 2023 is ongo-
ing, and when the process is complete,
the verification statement will be pub-
lished in the certificates section of the
company's website.
You can access our
certificates in the ISO Certificates
section in Appendix 2.
As Turkcell, we have
completed 30 successful
years by achieving many
industry firsts in the journey
we started with the aim
of introducing mobile
communications to Türkiye.
We continue to create value for all our stakeholders with the
integrated digital operator identity we have gained over
time by continuously evolving in line with our stakeholders'
expectations. In the coming years, as in the past, we will con-
tinue to transform innovative digital technologies into ser-
vices that improve people's quality of life, support the digital
transformation of organisations, contribute to sustainable
development in our areas of operation and create value
with strategies that translate these elements into a profita-
ble and responsible integrated business model.
During the reporting period, we reviewed our strategic focus areas in
line with changing requirements through the materiality study, which
we repeated in line with the opinions of our managers, employees and
external stakeholders. Through our integrated management model, we
regularly monitor our performance against concrete and measurable in-
dicators and ensure effective management of the value we create for all
our stakeholders.
46 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell Sustainability Priorities
Turkcell's Sustainability
Priorities form
the basis of our
Sustainability Strategy
and Integrated Value
Model.
Last year, we renewed our sustaina-
bility priorities by following the "double
materiality" approach. This approach,
which combines the "financial materi-
ality" approach, which addresses the
factors that can affect the compa-
ny's value from the outside in, and the
"sustainability materiality" approach,
which assesses the company's impact
on the environment and society from
the inside out, is also recommended
by standard organisations such as GRI,
IIRC and SASB and regulations such as
EUCSRD.
As part of this study, we assessed the
universe of 46 different social, eco-
nomic, environmental and technologi-
cal issues and 17 Sustainable Develop-
ment Goals (SDGs), which we obtained
by reviewing past practices, industry
initiatives such as GSMA, reporting
standards such as GRI and SASB, re-
search such as the WEF Global Risk
Report and various index contents in
consultation with our internal and ex-
ternal stakeholders. 969 Turkcell em-
ployees and 369 stakeholders repre-
senting groups such as our customers,
suppliers and business partners in our
ecosystem, media, NGOs, public insti-
tutions and regulatory bodies partic-
ipated in this screening exercise. As a
result of this study, which was designed
with a focus on risks, opportunities and
expectations, with parameters tai-
lored to each stakeholder category,
we arrived at both an overall portfolio
of priorities and a comprehensive por-
trait of expectations on a stakeholder
group basis. We finalised the Turkcell
Sustainability Priorities by presenting
the results to the Turkcell Integrated
Value Creation Committee, which was
convened with the participation of our
Chairman and Senior Executives, for
their opinion and approval.
High
s
n
o
i
t
a
t
c
e
p
x
E
r
e
d
l
o
h
e
k
a
t
S
⓭
Earthquake
and Emergency
Preparedness
Supporting the Development
of Domestic Technologies
㊵
❹
❶
Emergency Preparedness and
Ensuring Infrastructure
Güvenilir, Kaliteli ve Hızlı Dijital Hizmet
Altyapısının Coğrafi Kapsamının Geliştirilmesi
❸
Increasing the Use of
Renewable Energy
㉖
Becoming an Active Integrated Telecom
Operator in the Value Chain Extending from
Fiber Infrastructure to Digital Business Services
Efficient Use of Energy
Pioneering Digital
Technologies and Innovation
㉗ ❷
㉘
Increasing Solar Energy
Investments
Improving Digital Customer Experi-
ence and Satisfaction
❺
⓲
㉑
㉚
㊶
㊴
Pioneering the use of innovative digital
technologies in key sectors such as
education, health, agriculture, transport
and finance
㉙
㊷
⓱㊺
㉛
㊸㉜
㊹
㉝❼㉒
❻
㉔
❾
㉞ ㉟㉓
❽㊱
㉕
⓳⓴❿
⓫
㊲
㊻
㊳
⓯ ⓮
⓬
⓰
Low
Company Impact
High
❶ Emergency Preparedness and Ensuring
Infrastructure
❷ Pioneering Digital Technologies and
Innovation
❸ Becoming an Active Integrated Telecom
Operator in the Value Chain Extending
from Fiber Infrastructure to Digital Business
Services
❹ Improving the Geographical Coverage
of Reliable, Quality and Fast Digital
Service Infrastructure
❺ Improving Digital Customer Experience and
Satisfaction
❻ Managing the Financial Impacts of
Climate and Sustainability Risks
❼ Contribution to Local Economy
❽ Favouring Local Procurement Activities
❾ Prevention of Anti-Competitive Behaviour
❿ Transparent Corporate Tax Practices and
Policies
⓫ Protection of Intellectual Property Rights
⓬ Increasing Employee Satisfaction and
Loyalty
⓭ Earthquake and Emergency Preparedness
⓮ Protection of Employee Rights
⓯ Dissemination of New Working Models
such as Remote Working, Flexible Working
⓰ Talent Management, Employee
Development and Training Activities
⓱ Cyber Security and Data Privacy
Protection
⓲ Protecting Children, Youth and Seniors
Against Cyber Risks
⓳ Ensuring Gender and Equal Opportunities
in the Workplace
⓴ Supporting the Social and Cultural
Development of the Society
㉑ Improvement of Employee Health and
Safety
㉒ Managing the Health Impacts of Mobile
Devices and Base Stations
㉓ Transparency in Product Information and
Responsible Marketing Practices
㉔ Legal Compliance, Business Ethics and
Anti-Corruption Practices
㉕ Promoting Digital Rights, Ethics and
Diversity of Expression
㉖ Increasing the Use of Renewable Energy
㉗ Efficient Use of Energy
㉘ Increasing Solar Energy Investments
㉙ Developing Environment and Climate
Friendly* Digital Products and Services
㉚ Efficient Use of Water
㉛ Promoting Circular Economy and
Responsible Waste Management
㉜ Management of Climate Change Risks
㉝ Preferring Environmentally Friendly
Material Consumption in Activities and
Reducing Consumption
㉞ Green Building Applications
㉟ Development of Green IT Application and
Infrastructure
㊱ Applications for the Protection of
Biological Diversity and Natural Life
㊲ Reducing GHG Emissions in Operations
㊳ European Union Border Carbon Tax
Practices
㊴ Pioneering the use of innovative digital
technologies in key sectors such as
education, health, agriculture, transport
and finance
㊵ Supporting the Development of Domestic
Technologies
㊶ Supporting Vocational Training Activities
that will increase the employment
chances of young people by increasing
their capacity in the field of Information
and Communication Technologies
㊷ Increasing Access to Digital Technologies
and Digital Literacy of Large Social
Masses, Disadvantaged Groups or
Groups with Low Purchasing Power
㊸ Supporting Business Model Ideas Aiming
to Solve Sustainability Problems with
Digital Technologies
㊹ Supporting Smart Mobility and City
Applications
㊺ Supporting Ethical Rules in Artificial
Intelligence Applications
㊻ Managing Sustainability Impacts in the
Supply Chain
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TURKCELL 2023 INTEGRATED ANNUAL REPORT | 49
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL
SUSTAINABILITY
STRATEGY
Inclusive
Equal Digital and Social
Opportunities
Digital Security and Wellbeing
to Our Business
Transparency and
Accountability
Ethical Conduct
Human Oriented Turkcell Culture
Responsible Value Chain
to the Environment
Decarbonization and
Renewable Energy
Circular Conduct
Efficient Technology Solutions
Turkcell Sustainability Strategy:
in Sustainability
By listening to our stakeholders and
understanding their expectations, we
support sustainable development through
the solutions we develop, following
international trends and best practices.
On the other hand, we strengthen our
leading position in the sector with our
efficient and profitable business model
that creates long-term value for our
stakeholders.
We pursue a sustainability strategy that gen-
erates positive impacts in the short, medium
and long term by combining the potential
of our sector, the agility of our organisation
and our superior digital service experience
with sectoral risk and opportunity parame-
ters and sustainable development goals. We
regularly measure the timeliness and results
of this strategy and update our position as
necessary.
We have reviewed our sustainability strat-
egy through the monitoring studies carried
out during the period. As a result, we have
updated the definitions of our strategy,
which we have adopted as our main slogan
'We are Positive in Sustainability', in the light
of emerging developments and changing
stakeholder expectations.
The Positive Imprint in Sustainability Strategy consists of 3 main axes:
Inclusive
to Our Business
to the Environment
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 being
good in the digital world and
to “not leave anyone behind”
in social, economic and
cultural development.
With the axis of Positive
Imprint to our Business,
we aim to develop a
strong business model
that is shaped by the
principles of transparency,
accountability and
business ethics throughout
our value chain, and
where sustainability risks
and opportunities are
effectively managed.
With the axis of Positive
Imprint to the Environment,
we aim to manage our
environmental impacts,
protect natural life and
play a leading role in
tackling environmental
problems, especially
climate change.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Sustainable Development Objectives Supported
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 developmentoriented
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 caus-
es of climate change and a fundamental operational efficien-
cy parameter, is seriously managed with international system
standards such as ISO 50001. The energy consumption 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 Türkiye’s young population is the main
driving force behind its development. In this context, Turkcell
develops programs aimed at enhancing the entrepreneurial
spirit of the young, preparing them for their careers with a qual-
ity education 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 disad-
vantages, by providing access to a wide range of digital ser-
vices such as techfin infrastructures such as Financell, Paycell
and Güvencell, as well as financial, communication, and infor-
mation technology products and services. Turkcell strives to be
a trusted business partner for all economic actors, from small
businesses to large industrial ventures, on their digital transfor-
mation 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 man-
ages environmental risks arising from its operations in accord-
ance with international standards. In this context, the company
aims to improve resource efficiency, environmental 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 are-
as such as energy and water resource efficiency, waste man-
agement, circular economy practices, and preservation of
biodiversity. Turkcell offers solutions online and in its stores to
support the use of second-product technology, and develops
projects to recycle unusable information technology products.
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 pro-
cesses related to operational and service development. Turk-
cell manages seriously the elements that may affect climate
change, including energy consumption and greenhouse gas
emissions, among its operations. Additionally, Turkcell will in-
crease 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 socie-
ty organizations.
Turkcell, as the only Turkish company simultaneously listed on
the NYSE and Borsa Istanbul, adheres to internationally rec-
ognized principles of corporate governance as an integral
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 corpo-
rate governance structure across the Company and its Group
companies. Maintaining a superior business ethics mindset
among all Company employees and throughout 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 monitored and improvement
measures taken as necessary
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Interactions with Our Stakeholders
We determine our activities and savings 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 take care to be consistent, inclusive and ac-
cessible in our interactions with our stakeholders
and respond to their information and communi-
cation requests in a transparent, open and timely
manner.
Stakeholder
Group
Communication Tools and Frequency
Frequently Asked Questions and Demands in 2023
Employees
Integrated Annual Report (annual),
Meetings and Interviews (periodic),
Assistant General Managers Open
Door Meetings (periodic), Performance
Evaluations (quarterly), Announcements
(continuous), Reports, Awayday, Events
(periodic), Information Reports (periodic),
Publications and Bulletins (periodic),
Corporate Website (continuous)
Adaptation to changing working conditions, implementation
conditions of working models such as teleworking and
flexible working, which seem to take their place permanently
in business life, stand out among the questions and
demands submitted by employees during the period. On
the other hand, health and psychological support needs
also increased during the period. Various practices and
programmes were developed to meet these demands.
In line with macro-economic developments, the Company
responded to requests for wages and fringe benefits in line
with the remuneration policy.
Integrated Annual Report (annual),
Supplier Management System (continuous),
Supplier Portal (continuous), Internal and
External Meetings (periodic), Supplier
Days (annual), Cooperation Meetings with
SMEs and Local Producers (continuous),
Technopark Visits (continuous), Turkcell
Partner Network (continuous), Corporate
Website (continuous)
We came together with suppliers at Turkcell Supplier
Summit 2023 to promote innovation, localisation and startup
development programmes, and successful projects were
rewarded. Idea application channels were shared and new
innovative ideas were collected. In order to contribute to the
development of Türkiye's startup ecosystem, collaborations
are made with technoparks and efforts are made to include
start-up companies in our supplier ecosystem.
Suppliers
Integrated Annual Report (annual), Media
(continuous), Advertising and Promotion
Activities (continuous), Social Media
Accounts (continuous), Corporate Website
(continuous), Dealers (continuous), Call
Centre (continuous), IVR (continuous),
SMS and E-mail (continuous), Satisfaction
Surveys (periodic), Turkcell App (continuous),
KEP, CIMER, BTK, TCM channels (continuous)
During the period, the main questions and demands from
customers were concentrated on service plan conditions,
promotions, service package purchases and the solution
of technical problems. These requests and problems are
quickly resolved by the relevant units. As a result of the
digitalisation efforts implemented during the period, the
speed of developing solutions to customer requests was
significantly increased.
Customers
Integrated Annual Report (annual), Press
Releases (planned or instant), Press
Meetings (planned or instant), Meetings
and Interviews (upon request), Turkcell and
Turkcell General Manager Social Media
Accounts (continuous), Corporate Website
(continuous)
Media
During the period, the Company responded transparently
and in a timely manner to media members' requests for
information on Turkcell and the sector, including financial
and company projects and practices.
Stakeholder
Group
Communication Tools and Frequency
Frequently Asked Questions and Demands in 2023
Shareholders
and Investors
Integrated Annual Report (annual),
Board of Directors Meetings (periodic),
Conferences, Meetings and Roadshow
Activities (periodic), Investor and Analyst
Day Meetings (upon request), Financial
and Operational Results Announcements
and Annual Reports (quarterly),
Investor Relations Website (continuous),
Teleconferences (periodic), Material
Disclosures (instant), Frequently Asked
Questions (continuous), E-mail (continuous),
Telephone Calls (continuous), Corporate
Website (continuous)
During the period, financial and operational information,
which is the most basic expectation of shareholders and
investors, was met by transparent and timely disclosure
through various channels. On the other hand, the
increasing interest and expectations of shareholders
and investors regarding the increasing practices in cyber
security, corporate governance and legal compliance
were met with the practices and information activities
developed during the period.
Integrated Annual Report (annual), Official
Correspondence (continuous), Meetings
and Events (periodic), Public Opinion
Documents (upon request), Information
Reports (periodic), Presentations
and Position Papers (upon request),
Publications and Bulletins (periodic),
Corporate Website (continuous)
During the period, the Company responded to various
information and opinion requests from public institutions
and regulatory bodies. Requests for cooperation and
project development were responded positively to the
extent that the subject of the relevant application is
compatible with the Company's activities and corporate
resources allow.
Public
Institutions and
Regulatory
Organisations
NGOs
Integrated Annual Report (annual),
Memberships (continuous), Board of
Directors Council and Working Group
Meetings (periodic), Workshops (upon
request), Seminars, Conferences and
Events (periodic), Meetings and Interviews
(upon request), Joint Projects (upon
request), Corporate Website (continuous),
Social Media (continuous), E-mail
communication (instant)
The main expectations communicated by NGOs during
the period were concentrated in information needs,
membership requests, joint project and sponsorship
requests. While information requests were responded
to in line with corporate information sharing policies,
membership, sponsorship and joint project requests were
responded to to the extent that the relevant organisation
adopts the values of working together with Turkcell and
that the relevant work is in line with Turkcell corporate
policies, field of activity and expectations. On the other
hand, the relevant department employees periodically
participated in the working groups of NGOs.
Turkcell Academy Curriculum Courses
(periodic), Certificate Programmes
(periodic), Technical Trips (upon request),
Project Competitions (annual), Academic
Publications (upon request), Joint Projects
(upon request), Information Sharing
Meetings (upon request), PhD Scholarships
(upon request), Project Sponsorships (upon
request), Corporate Website (continuous),
Social Media (continuous)
Universities,
Academics,
Students
Requests such as course content support, field visits and
support for academic research submitted by universities
and academics during the period were responded
positively as much as possible. Within the scope of
student scholarship requests, the demands of students
working at the doctoral level in the field of artificial
intelligence were met.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell’s Sustainability Initiatives Memberships
We believe that we can
produce a greater impact
by working together
with non-governmental
organisations (NGOs) with
which we share common
goals and values.
In this context, the main organisa-
tions we actively support are UN
Global Compact, WEPs, GSMA,
Sustainable Development Associa-
tion and Mobile Telecommunication
Operators Association. In addition
to these, Turkcell operates as a
member of many non-governmen-
tal organisations operating in differ-
ent fields and is represented in their
management and working groups.
You can find the full list
of the organizations we are a mem-
ber of and their level of engage-
ment in the Table of Appendix-3:
Non-Governmental Organizations
Memberships.
GSMA
We have been a member of the
GSMA since 1998, which brings
together more than 800 indus-
try players and shapes the mo-
bile communications
industry
worldwide. As Turkcell, we have
the opportunity to share our
local and international experi-
ence on this platform and ben-
efit from the experiences of oth-
er member organisations. On
the other hand, we contribute
to initiatives and activities or-
ganised within GSMA, such as
the development of new gen-
eration communication tech-
nologies, supporting the digital
economy with mobile platforms
and the use of mobile communi-
cation for social benefit, Mobile
Net Zero. Among these activi-
ties, Mobile Net Zero is impor-
tant in terms of enabling mobile
operators to carry out their op-
erations with the Net Zero tar-
get within the scope of efforts
to combat climate change.
As a sub-association of GSMA,
Turkcell also contributes to the
GSMA Sustainability Network,
a platform that provides inter-
national sectoral experience
sharing for the development of
applications in line with the Sus-
tainable Development Goals.
In this context, Turkcell was
among the first 8 companies
in the world to sign the GSMA
Accessibility Principles and the
first company from Türkiye. As
a signatory of these principles,
we have committed to design
and develop all of our Com-
pany's platforms according to
globally accepted accessibili-
ty standards for our customers
and employees with disabilities.
Turkcell is also among the pilot
companies that play a leading
role in determining ESG metrics
for the mobile industry.
United Nations
(UN) Global
Compact
Turkcell supports the 10 principles of the
United Nations Global Compact, the
world's largest corporate sustainability
initiative, which it signed in 2007, and its
sub-initiatives in line with sustainable
development.
In this context, Turkcell is one of the
founding members of the UN Global
Compact CFO Coalition for the SDGs,
which brings together CFOs of leading
companies around the world in the field
of sustainability.
The CFO Coalition for the Sustainable
Development Goals aims to make the
concept of sustainable finance an im-
portant factor in the policy-making pro-
cesses of the leading institutions of the
global business community and to cre-
ate a large, liquid and effective market
for investments that serve sustainable
development goals. As Turkcell, we take
an active role in the work of the CFO
Coalition for Sustainable Development
Goals. In 2023, we participated in the
"SDG
(Sustainable
Development Goals Investment Forum)
held at the New York Stock Exchange
as part of the 78th United Nations Gen-
eral Assembly and Global Goals Week.
Speaking at the 'CFO Principles as a
Holistic Approach
for Fundamental
Business Transformation' panel organ-
ised within the SDG Investment Forum,
Turkcell's Executive Vice President of Fi-
nance, Kamil Kalyon, informed investors
about Turkcell's sustainability efforts, its
firsts, investments and goals in this area.
Investment Forum"
In addition, Turkcell's sustainability ef-
forts were included as an example in the
Corporate Investments to Achieve Cli-
mate Goals report, which was present-
ed for the first time by the CFO Coalition
for Sustainable Development Goals
within the scope of COP28.
As part of the UNGC Statement for the
Private Sector, which we signed in 2020,
we are integrating the 10 principles in
the areas of human rights, labour, the
environment and anti-corruption
into
our policies and business processes. As
part of the Integrated Annual Report, we
publicly report on our compliance with
these 10 principles as part of the UNGC
Communication on Progress.
Our Relations
with Public
Institutions
Turkcell and its Group Compa-
nies are subject to many different
regulations, and these regula-
tions form the basic structure of
our relations with public institu-
tions and organisations. These
regulations have a direct impact
on the technical and commer-
cial operations of Turkcell and its
Group Companies, the conditions
for the provision of services and
the framework for their relations
with stakeholders. For this rea-
son, we closely follow the leg-
islative activities related to our
activities and respond to the reg-
ulatory authorities' requests for
opinions during the consultation,
maturation and
implementa-
tion processes of the regulations
by analysing the possible legal,
technical, commercial, opera-
tional and economic impacts on
the sector. On the other hand,
we participate in the legislative
studies opened to public opinion
within the NGOs of which we are
members and support the pro-
cess of shaping the regulations
by preparing joint position and
opinion documents.
At the same time, Turkcell and the
Group companies create added
value by pioneering technolog-
ical transformation in the coun-
tries where they operate with
their mobile network, fibre infra-
structure, world-class data cen-
tres, digital products and servic-
es. As a result of this added value,
Turkcell contributes to the public
sector in terms of taxes and legal
obligations.
Sustainable Development
Association
The Association for Sustainable
Development (SKD) Türkiye, the
Turkish regional network and
business partner of the World
Business Council for Sustainable
Development (WBCSD), ensures
the dissemination of
interna-
tional and local knowledge and
experience among its members
through the working groups it
has established.
We have identified circular econ-
omy, sustainable finance, the fu-
ture of business with technology,
carbon net zero and women's
employment as the main focus of
our cooperation with the BCSD.
We actively participate in the
association's working groups.
WEPs
Believing
in equal opportunities
in the workplace, Turkcell joined
the signatories of the Women's
Empowerment Principles estab-
lished by UNGC and UN Women
in 2012 to improve the position of
women in business and social life
with the aim of supporting Gender
Equality, one of the Sustainable
Development Goals. Within the
scope of UN WEPs, we continue
our activities to support Turkcell's
goal of becoming the company
that women most want to work
for thanks to its gender equality
approach by supporting practic-
es that aim to empower women in
the business environment, such as
equal pay practices and zero tol-
erance against discrimination.
Mobile
Telecommunications
Operators Association
(m-TOD)
The Mobile Telecommunications
Operators Association was es-
tablished in 2016 by three opera-
tors operating in the sector and
holding authorisations in order to
create areas of activity to solve
the common problems of the sec-
tor and to take initiatives before
all stakeholders to implement the
solution proposals. Turkcell is one
of the founding members of this
platform, which aims to contrib-
ute directly to an ethical, efficient
and competitive approach in the
mobile telecommunications ser-
vices sector in Türkiye. Our chief
executive officer Dr. Ali Taha Koç,
executive vice presidents Ali Uysal
and Prof. Dr. Vehbi Çağrı Güngör
are members of the m-TOD Board
of Directors.
Relations with
Shareholders
and Investors
Turkcell
is committed to being
transparent, equitable, consistent
and accessible to its investors and
shareholders. We consider it a fun-
damental responsibility to respond
to the information requests of our
investors and shareholders
in a
clear, accurate and timely manner.
Through our disclosure activities,
we aim to introduce Turkcell in the
right way, to convey our business
model, risk and opportunity analy-
ses and strategies to investors and
to enable them to make well-in-
formed investment decisions.
You can find detailed
information on the management
of our relations with our share-
holders and investors in the Trans-
parent Investor Relations section
of our report.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell Value Creaiton Process
Inputs
Created Value
Outputs
SDGS
Relevant Stakeholders
Strategic Focuses
Core
Competencies
Strong Customer
Relations
Strategic
Business
Focuses
Advanced
Analytical
and Technological
Competencies
Our
Telecom
Business
Financial
Services
Platform
Sustainability
Digital Business
Services
Digital
Services
Strong and Agile
Team
Strong
Infrastructure
䷬ Financing diversity
䷬ Efficient capital allocation
䷬ Strong revenue model
䷬ Business model hedging
䷬ Transparent financial management
Financial
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
䷬ Robust network
䷬ Strong spectrum
䷬ Broad fiber infrastructure
䷬ Data centers
Manufactured
Capital
Intellectual
Capital
Social
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
䷬ 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
Natural
Capital
䷬ Environmental impact management
through digitalization
䷬ Efficient use of energy
䷬ Turkcell waste management
䷬ 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 107.1 Billion
Revenue
TRY 43.9 Billion
EBITDA
TRY 12.6 Billion
EBIT
TRY 12.6 Billion
Net Income
TRY 7.3 Billion
Free Cash Flow
1.9%
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 Türkiye’s data in Türkiye
䷬ Leadership in technology and digital transformation
䷬ Access to information and the internet for everyone
䷬ Development of indigenous and national technological infrastructure
䷬ 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
24,352 Members of
Turkcell’s Large Family
35.2%
Woman Employee Rate
24.2%
Woman Manager Rate
1.43 Accident
Frequency Rate
592
New Recruits
1.2 Million hours*person
Total Trainings
Up to 1.6 Gbps
4.5G Speeds
Up to 10 Gbps
Fiber Internet Speeds
73%
Network Virtualization Rate
12%
Network Traffic (internet)
Increase Rate
12,037
Base Station Sites
with Risk Assessment
99.910%
Rate of Data Accessibility
992
R&D Employees
550
Patent
Applications
25% Growth in Digital
OTT Services Revenues
and 19% Growth in Digital
Services Total Revenues
6 Number of
Applications to TÜBİTAK
Supported Projects
8
Hospitals Which
We Provide
Infrastructure To
10
Incubator Firm
Collaborations
56.3 Million
Group Subscriber
Count
38.0 Million
Mobile Subscriber
Count (Türkiye)
799 Thousand
Net New Customers
Acquired (Türkiye)
4 Number of
Volunteer Projects
64% Local
Procurement Rate
40,267.93 tonnes
CO2e Energy Reduction
76,258 GJ
Energy Saving
3.644.596 GJ
Renewable Energy
Consumption
7.8 Tons
Recovered e-Waste
62,388 MWh
Renewable Energy
Generation
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.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Measuring the Value Created
Our Core Competencies
We aim to achieve more
timely and comparable
results by taking into
account the indicator
recommendations of
international organisations
such as the GSMA, WEF,
GRI and SASB, as well
as suggestions from our
stakeholders and industry
practices in measuring
performance resulting
from the value chain.
As of 2021, sustainability targets, which
include the internalisation of sustain-
ability and ESG policies in social, eco-
nomic, environmental and governance
(ESG) areas, have been included in the
company's strategic goals and as-
signed as key performance indicators
by Turkcell's Chief Executive Officer to
all employees. The internalisation of
the policies by employees at all lev-
els of the company through training in
this direction has been reinforced with
competitions and awards that support
sustainable living.
In 2022, we revised the Key Perfor-
mance Indicators used in performance
evaluation in line with the renewed sus-
tainability priorities. In this context, the
Sustainability Committee continues to
work on creating a system for detailed
monitoring of sub-parameters related
to performance evaluation.
An important pillar of our efforts to an-
alyse our sustainability performance
using internationally recognised meth-
odologies is the assessment of sustain-
ability indices and rating systems. In this
context, we provide annual informa-
tion to the MSCI ESG Index, the Borsa
Istanbul Sustainability Index and the
CDP Climate Change Reporting. As the
leading telecommunications company
in Türkiye, we have set our greenhouse
gas emission reduction targets, ap-
proved by the Science Based Targets
Initiative (SBTi), to systematise and ra-
tionalise our commitment to tackling
climate change.
Since its foundation in
1994, Turkcell has been
continuously generating
high added value for its
stakeholders. Turkcell's
success is attributable
to its corporate
competencies, which have
been developed with the
experience gained over
the past 30 years.
Strong Bond
with Customers
Strong
Infrastructure
The operator that meets
customers' ever-increasing
need for quality service and
communication
Superior digital customer
experience with growing digital
services
Uninterrupted 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
offered to customers
Activities carried out within the
scope of the importance given to
customer data security
Maintaining the pioneering and
distinctive network quality in the
sector, reinforcing its position as
the leading operator by being
ready to offer services for next
generation technologies such as
5.5G and beyond
Increasing efficiency through
technology independent
spectrum utilisation
Providing the latest and innovative
technologies in fixed and mobile
technologies in the individual,
corporate and home segments
Cyber security products and
services that require digital
operator competence
Contribution to digital
transformation through joint
infrastructure works
Reliable grid structure ready for
emergencies
In-country protection of local
data with an extensive network of
data centres
Strong &
Agile Team
Advanced Analytical
Capabilities &
Technology
The importance of agile and
flexible teams that increase with
the need to 'master difficult tasks
quickly' with digitalisation
Ensuring efficiency through
transformation of company
culture with flexibility and agility
approach
Strategic workforce management
Inclusive and egalitarian
corporate culture
Unique people and talent
orientated employee experience
Increased focus and need
for analytical capability with
increasing digitalisation
Providing appropriate solution
proposals in line with better
customer recognition and early
detection of their needs through big
data and analytical modelling
Capacity to develop domestic
alternatives in digital services
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Our Strategic Focuses, Initiatives
and Opportunities
Leadership in Telecom
In addition to our core
telecommunications
business, we focus on
digital personal, business
and financial services,
which we have developed
rapidly in recent years
by leveraging our strong
technical infrastructure
and experience from our
core business.
In addition, we prioritise efficiency in
our operations with a focus on value
maximisation, more effectively allocat-
ing resources to our revenue-generat-
ing areas, becoming unique in terms of
employee and customer experience,
and conducting our activities within the
framework of sustainability principles.
We continue to diversify our digital ser-
vices in line with evolving technologies
and customer needs. At the same time,
we are working to improve access to
information technology for disadvan-
taged groups, young people and wom-
en, and to bring the power of technolo-
gy to more and more users.
As part of our Digital Business Services
for corporate customers, we support
digital transformation with end-to-end
solutions we have developed, particu-
larly in the areas of data centres, cloud
solutions, cyber security and the Inter-
net of Things. We help companies of all
99 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 2022 and the risk factors section within this report.
sizes to embrace digital trends with ac-
cessible service solutions.
With our financial services portfolio,
which we offer through the success-
ful implementation of Techfin business
models, we develop various digital pay-
ment options for our customers; we of-
fer financing options that facilitate their
access to products and services, and
insurance solutions that enable them to
protect themselves against risks.
We continue to rapidly improve the val-
ue we create with our technology and
innovation capabilities by evaluating
global trends in our strategic focus are-
as and the development potential in the
countries where we operate. Each year,
we assess current trends and focus our
efforts on the areas of opportunity we
have identified through practices in-
volving all our employees. In this context,
we monitor our business with short, me-
dium and long-term targets. In 2023, we
started to implement our new 3-year
strategic plan within this framework.
We want the growth we have built on
our strong infrastructure to come from
our focus and deepening in areas such
as IPTV, data centre, cloud and techfin
solutions. But another area we will focus
on is how we do this. While delivering
all these services and providing digital
solutions to our customers' needs, we
want to be more efficient and maxim-
ise shareholder value. With our focus on
technology, we will continue our efforts
to deepen, develop and expand tech-
nology by developing new products
and supporting R&D activities in areas
such as artificial intelligence, cyberse-
curity and quantum technologies. Sus-
tainability, which is one of our strategic
focus areas, reflects the importance we
attach to the environment and society
in our business in a tangible way, while
maximising the experience of our col-
leagues and customers through Human
Orientation. We are also prioritising
the development and dissemination of
object technologies that add value to
people's lives with our new focus 'Ob-
jects for People'. In short, we continue
to deliver superior digital services for a
better future with the complementary
and balancing power of technology.
tomer satisfaction scores, while main-
taining our mobile churn rate at 2%,
which we see as the optimal level for
us in 2023.
In 2023, we will continue to strengthen
our digital capabilities. With our om-
nichannel approach, we provide an
integrated experience where chan-
nels are managed in harmony in our
customers'
interactions on Turkcell
channels and customer journeys. At
the same time, we continue to empha-
sise the digitalisation of all our pro-
cesses by offering additional benefits
on digital channels and increasing the
intensity of our communications. In the
new period, we aim to increase our
capabilities at every step in the name
of digital transformation.
Using machine learning (ML) models,
we provide analyses based on the
applications and Internet links (URLs)
used by our customers. For each class,
we help increase the subscriber base
by more accurately determining the
target audience of products in the
Turkcell ecosystem. We use the results
of these analyses to provide more ac-
curate targeting in digital channels.
We continue to use this in our digital
advertising activities.
For our fixed internet and Superbox
customers, we use machine learning
models to provide the most appropri-
ate offers for the customer. We have
implemented upgrades
to higher
packages in Fibre and ADSL and the
proactive churn model in Superbox.
With these models we aim to minimise
churn while increasing our revenue
metrics by applying the experience we
have gained with mobile customers to
fixed customers.
In line with the analytical marketing
approach, we continue to implement
best offer & upsell and churn preven-
tion models that affect all our post-
paid, prepaid, fibre, ADSL and/or su-
per-box customers.
During the period, we delivered mo-
bile ARPU growth of 18.4%10, through
increased data usage, our strategy
of migrating customers to higher val-
ue bundles and our price adjustments
according to economic conditions.
We also continued to focus on the val-
ue proposition we offer our custom-
ers, adding 493 thousand net mobile
subscribers. As a result, we achieved
growth in both ARPU and the subscrib-
er base and a healthy and balanced
increase in revenues. At the same time,
we continue to focus on solutions and
campaigns that meet our customers'
telecommunication needs in the digi-
talised world of consumption.
As Turkcell continues to be a pio-
neer in digital transformation and a
leader for our
individual/corporate
customers, we also continue our stra-
tegic initiatives to further strengthen
our already high corporate market
share. By anticipating the changing
and evolving needs of the market, we
provide integrated mobile and fixed
communications solutions wherev-
er businesses need them through our
tariffs and campaigns designed spe-
cifically for professionals, SMEs and
large enterprises. Through our Digital
Business Services, we deeply support
the digital transformation processes
of our corporate customers by offer-
ing a wide range of services from data
centre to cloud computing, from cyber
security to the Internet of Things. Turk-
cell's digitalisation journey not only
creates value for businesses, but also
strengthens our innovation leadership
in our sector.
We continue to improve our analytics
capabilities to provide our custom-
ers with the best offers at the most
affordable prices according to their
needs. Thanks to our analytical and
artificial
intelligence-based models
that are specific to each Turkcell cus-
tomer, we analyse all our customers
according to their life cycles, usage
habits and behaviour, and immediate-
ly identify their needs and set up sys-
tems where they can take advantage
of the appropriate offers. Through
integrated channel communication,
proactive actions and cross-commu-
nication constructions, we bring our
customers together with rich content
offers. In this way, we positively in-
crease our revenue metrics and cus-
10Excluding M2M
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Initiatives and Opportunities
that
䷲Thanks to our plans that are in line
with customer expectations and
offer high benefits, our process
in-
improvement projects
crease customer satisfaction and
business efficiency, and our stable
price adjustments that continued
throughout the year
in parallel
with economic developments, we
achieved 18.4% ARPU growth in the
mobile segment. As a result, we
gained net 493 thousand mobile
subscribers and maintained our
healthy and stable growth trend
both in terms of subscribers and
ARPU.
䷲One of our main objectives is to ac-
celerate the digital transformation
of our corporate customers, espe-
cially tradesmen and SMEs, and
thus further consolidate our strong
presence in the market. To this end,
we develop innovative campaign
and solution plans for the unique
needs of each corporate customer
segment. The corporate packages
we design minimise our customers'
operational expenses by ensuring
cost efficiency through digitalisa-
tion, while helping our customers
to maximise their revenue potential.
The value proposition we offer to
our customers is directly reflected
in the value creation of Turkcell.
This strategic approach not only
increases customer satisfaction,
but also consolidates our leading
position in the sector.
䷲We continue to improve our ability
to listen to our customers' expec-
tations and offer them the most
level of
appropriate price and
service, as well as improving our
analytical capabilities to make our
service processes more efficient
and increase satisfaction. Through
channel improvements and pay-
ment diversification, IVR process
and content
improvements, and
chatbot application, we are both
making our business processes
more efficient and increasing loy-
alty through customer satisfac-
tion. In parallel with the increase
in customer satisfaction, we have
positively increased our revenue
metrics, while we have managed
to keep our mobile churn rate at
the same level in 2023 as in 2022,
which was 2.0%, despite the price
updates. Our fixed churn rate was
1.5%.
Digital Services
In recent years, the
strong trend in consumer
behaviour to meet many
needs through digital
services has increased
and become permanent
with the pandemic.
In this direction, as Turkcell, we respond
to these expectations of our customers
with digital solutions that we offer in
various areas such as instant commu-
nication and online meeting platforms,
email, personal cloud storage, digital
advertising, digital TV and digital music
platform, and gaming technologies.
In previous periods, we have trans-
formed our digital services such as BiP,
fizy, TV+ and lifebox into globally com-
petitive structures by focusing on their
individual performance as separate
profit centres. During the period under
review, our services continued to im-
prove their performance and to build
on their success stories by delivering
digital experiences to their customers
on an international scale. In addition to
the revenues generated by our digital
services, their positive contribution to
the ARPU levels of our telecom custom-
ers and their increased loyalty to Turk-
cell increase the importance of these
services to the Turkcell ecosystem. In
this context, we continue our efforts to
increase the diversity of our digital ser-
vices as well as their number of users
and international penetration.
By positioning our digital services and
solutions, which play a key role in our
strategy to transform Turkcell from a
telecom operator to an integrated dig-
ital ecosystem brand, as independent
brands under the Turkcell umbrella, we
are also strengthening their value as in-
tellectual property and assets.
Initiatives and
Opportunities
䷲We
are
increasing
our
transaction volume with a wide
range of products for both indi-
vidual and corporate needs and
an increasing number of active
customers, and our digital ser-
vice revenues with our adver-
tising, subscription and business
partnerships.
䷲ The importance of mobile appli-
cations, communication infrastruc-
tures, software used and cyber
security of these systems has in-
creased for companies as remote
and flexible working practices,
which developed with great mo-
mentum during the pandemic pe-
riod, have become permanent. In
this context, we offer benefits with
our digital services such as BiP,
Yaani Mail, lifebox, Digital Security
Service and Mobile Signature and
our superior security standards.
䷲With our GAME+ next-generation
gaming platform, we offer our
users the opportunity to experi-
ence the highest quality games
from wherever they are, without
the need to make large hardware
investments.
䷲With our belief in the twin (or even
triple) transformation, we
invite
everyone to digitise, save energy
through smart applications and
thus build a better future.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Digital Business Services (DBS)
Digital Business Services
plays an important role
in combining Turkcell's
traditional identity as
a telecommunications
service provider with its
"Digital Transformation
Business Partner" strategy
for corporate customers.
We aim to be the most trusted business
partner in the digitalisation process by
providing end-to-end value-added
services to the business world with many
new-generation technologies, including
cloud services, cybersecurity, Internet of
Things, big data analytics, business ap-
plications, managed services and artifi-
cial intelligence solutions.
Turkcell, the world's first digital opera-
tor, contributes to the transformation of
business models with digital technol-
ogies by offering its 30 years of experi-
ence in communication and information
technologies to private and public or-
ganisations of all sizes. Our value-add-
ed services help our customers stay
ahead of the competition and increase
their productivity and business value. On
the other hand, our business consulting
services in the field of digitalisation ena-
ble us to provide an end-to-end service
in business processes by improving the
knowledge and skills of our customers.
In addition to our 61.8 thousand km of
end-to-end fibre optic
infrastructure,
Turkcell has a total of 8 data centres, 4
of which are new generation, with Tier-3
Facility, Design and Operation Sustain-
ability certificates from Uptime Institute,
an international certification body. Our
data centres have a total of 36.5 thou-
sand m2 of white space.
With Turkcell Cloud Services, we position
the entire information technology infra-
structure of companies in Turkcell data
centres, providing a more flexible infra-
structure while reducing costs. The cloud
service we provide from fully redundant
infrastructures in 8 different data cen-
tres has the ISO 27017 Cloud Information
Security Certificate, which registers our
information security, and we are the first
service provider in Türkiye to hold this
certificate. In order to provide services to
our public institutions in accordance with
the Presidential Circular on Information
and Communication Security Measures,
which came into effect regarding the
security of public data and its transfer
to digital environments, and the guide-
lines published accordingly, we have
made our public cloud service available
to institutions. In addition, we have been
accredited by the CBRT by creating iso-
lated cloud environments in accordance
with the Community Cloud Guide pub-
lished by the CBRT. In this way, financial
institutions or credit institutions that are
regulated and supervised by an author-
ised authority can receive the Finance
Cloud service from an environment that
complies with their regulations. On the
multi-cloud side, we are also addressing
our customers' large-scale cloud (hy-
perscaling) needs through our strategic
business partnerships with global cloud
providers, together with our strategy of
offering end-to-end cloud needs under
a single roof.
Within our Cyber Security product port-
folio, our vision to virtualise the network
protection services we provide for the
network
institutions
infrastructures of
continues at full speed. In this context,
we continued our virtualisation journey,
which we started with FW, DDoS+, Load
Balancer and IPS, across all our data
centres by increasing our vendor diver-
sity in 2023. In addition to our existing
services, we expanded our portfolio to
include endpoint security services within
our SOC, SOAR, BOZOK and consultan-
cy offerings, enabling us to provide pro-
active protection. In this way, we contin-
ue to be the end-to-end cyber security
service provider for our institutions, en-
suring early detection of cyber threats
and rapid response.
Through IoT solutions, we provide our
corporate customers with device, ma-
chine and process management servic-
es via cloud systems or in-house servers.
One of our IoT projects, Energy Efficien-
cy Scenarios, enables companies to
measure their energy consumption im-
mediately. The data collected from the
field by our solutions is transformed into
information that helps users make better
decisions, while management functions
can save companies significant costs
with our energy solutions. In addition,
our solutions for digital transformation
consulting, digital production monitor-
ing, efficiency tracking and zero carbon
emissions in the production sector also
support our customers' effective pro-
duction activities. With Turkcell's digital
business applications, we meet all the
needs of organisations in their digital
transformation journey and in digitising
their business processes.
As part of our Digital Business Servic-
es, in addition to our internal resources,
products, processes and technologies,
we have implemented more than 3,400
managed service and system integra-
tion projects tailored to our customers'
needs with our business partner eco-
system of experienced experts in their
fields. With our consultants, who are
experts in their fields, we develop verti-
cal solutions that meet the needs of our
customers in our focus sectors, such as
Healthcare, Education, Manufacturing,
Retail, Finance, Logistics, Energy, SMEs,
and Central and Local Government. We
use 360-degree analysis to identify our
customers' current situation and create
solution sets that meet their needs.
We deliver high value projects in the
healthcare sector, one of the areas
where we have achieved vertical in-
is
tegration. Digital Business Services
the market leader in terms of both the
number of hospitals it serves and the to-
tal number of beds in the City Hospitals
projects, which have become the loco-
motive of our country's success and are
among the leading healthcare provid-
ers in the world, especially in the coun-
tries of the region.
We are the leader in the public-private
partnership (PPP) market as an integra-
tor that provides and operates all the
technological solutions required in the
city hospitals in the field of healthcare.
We continue to play an important role
in the digital transformation of hospitals
with our Hospital Information Manage-
ment System (HIMS) software, devel-
oped with the equity of Turkcell Digital
Business Services. We are currently ac-
tive in a total of 8 city hospitals, including
Yozgat, Adana, Eskişehir, Elazığ, Bursa,
İstanbul-Başakşehir, Gaziantep and
Tekirdağ hospitals. The entire technolo-
gy infrastructure of these hospitals, from
hardware to software, from system to
operation, is managed by Digital Busi-
ness Services.
In addition, Turkcell Digital Business Ser-
vices develops and manages the tech-
nology of strategic public projects such
as the Speciality Education Tracking Sys-
tem (UETS), Electronic Case System (EVS)
and Vaccine Tracking System, which are
among the most important technology
projects of the Ministry of Health.
Our business partnership ecosystem
comprises three main categories that we
manage end-to-end: our subcontrac-
tors, our product/solution development
partners and our channel partners. We
have established the Business Partner-
ship Programme for business partners
with different competencies in our eco-
system. We reward the success of our
business partners with success-based
compensation models. We continue to
develop our Partner 360 model to man-
age all of our Digital Business Services
business partners in a single system. Our
business partnerships with global sup-
pliers broaden the range of solutions we
offer our customers every day in terms of
technical expertise and project diversity.
Initiatives and Opportunities
䷲As Türkiye's
largest data centre
operator, we work with the aim of
"keeping Türkiye's data in Türkiye" to
ensure data security and privacy of
personal data. In this context, reg-
ulatory arrangements for keeping
the data generated in our country
in Türkiye contribute to the develop-
ment of our business area and our
revenues by increasing the demand
for our data centres.
䷲We utilise our experience and com-
petencies in big data, Internet of
Things (IoT) and artificial intelligence
(AI) in many areas such as product
and service development. In the still
developing IoT and AI solution mar-
ket, the absence of major players
recognised in AI solutions creates an
advantage for Turkcell. We consider
the National Technology Move vi-
sion of the Republic of Türkiye, which
encourages the development of do-
mestic and national technologies,
as an opportunity for Turkcell in this
field.
䷲As the need for remote solutions
accelerated significantly with the
pandemic period, an increase was
observed in the demand for prod-
ucts and services that we focus on
and continue to work on in the field
of remote health, education and
work solutions. Our Lifecare product,
which we developed in the field of
remote health, has passed the Minis-
try of Health KTS audit and has been
able to respond to the opportuni-
ties in this field. New business model
opportunities are being evaluat-
ed through meetings with leading
healthcare groups in Türkiye.
䷲For private companies and public
sector institutions, digitalisation of-
fers many opportunities to increase
efficiency and service quality. As
Turkcell, we offer customised, reli-
able and sustainable solutions tai-
lored to the needs of companies and
public institutions in Türkiye with our
end-to-end digital transformation
services, while making digitalisation
processes more accessible thanks to
our affordable costs. We also coop-
erate with our local business part-
ners to steer the digital transforma-
tion journey of our country.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Techfin Services
While finance and
information technology
operate as two distinct
sectors that drive each
other's development,
we observe that many
financial services and
transactions have been
rapidly digitised with the
transformation we have
seen in recent years.
As a digital operator closely following
these developments, we believe in the
high potential of "techfin" applications
and continue to develop our services in
this direction. We continue to facilitate
our customers' financial transactions
and lives with the innovative solutions
we offer under our Paycell, Financell
and Wiyo brands, developed with this
perspective.
The main objective of Paycell is to pro-
vide consumers with easy access to
financial services by offering fast, con-
venient and secure payment solutions
through the combination of digital tech-
nologies and financial services catego-
ries. In addition, with Paycell's vision of
financial inclusion, we aim to make life
easier by providing access to financial
services to everyone - with or without a
bank account - and to make Paycell the
largest payment platform in Türkiye.
A significant portion of Türkiye's young,
dynamic and tech-savvy population
does not yet have access to banking
services. The growing e-commerce
market and favourable regulatory de-
velopments, as well as the presence of
a population of over 30 million with a
high cash usage rate, significantly in-
crease the potential opportunities for
Paycell.
In this context, we continue our strong
growth performance with the servic-
es and solutions we offer in different
verticals such as direct carrier billing,
e-wallet, bill payment, prepaid card,
money transfer, financial marketplace
solutions and payment facilitation,
with our application we position as a
Super App. Paycell differentiates itself
from its competitors with its broad ser-
vice portfolio and Turkcell's technology,
customer base and distribution chan-
nel advantage in a fragmented market
structure where different players focus
on different solutions.
As part of its market expansion strat-
egy, Paycell is focusing on increasing
the number of merchants signed up
with Paycell Android POS, Paycell QR
and QR, Virtual POS, Vitrin and Linkle
payment products in a mutually sup-
portive manner, while continuing its
efforts to rapidly increase the number
of users with its Super App vision. To-
gether with many partners, we offer
a wide range of services, especially
games, to our customers through our
Paycell Mobile application.
Financell, which provides digital fi-
nancing solutions to meet the product
and service needs of its customers
in various sectors by harnessing the
agile power of the mobile industry, is
the leader of the non-bank finance
sector in Türkiye with its large number
of customers. As one of the most im-
portant business partners of Turkcell's
digital consumer services and digital
business services, Financell effective-
ly manages credit risk while making
faster credit assessments thanks to
its credit risk infrastructure and digital
transformation capabilities.
In 2022, our insurance company Turk-
cell Dijital Sigorta A.Ş., which has the
capacity to provide end-to-end insur-
ance services, was established with
our decision to expand the insurance
services we have been providing to
our customers through our insurance
agency Turkcell Sigorta Aracılık Hiz-
metleri A.Ş. since 2018. The
licence
application we submitted on behalf
of Turkcell Dijital Sigorta A.Ş. to the
Insurance and Private Pensions Regu-
latory and Supervisory Board (SEDDK)
was approved in February 2023, and
Turkcell Dijital Sigorta A.Ş. started its
operations under the Wiyo brand in
June 2023.
Initiatives and Opportunities
䩉 Techfin and mobile communica-
tion services provide a suitable
environment for many people to
access financial services thanks
to their practicality and ease
of access. Access to financial
services is crucial for both eco-
nomic independence and social
equality for individuals. With this
in mind, we have the potential to
reach approximately 30 million
unbanked users in Türkiye.
䩉 The increase in the use of these
systems along with the pan-
demic process, which
intro-
duced many people to digital
and contactless payment sys-
tems, creates an important op-
portunity for Turkcell. The fact
that people in Türkiye and the
world continue to be inclined
towards contactless and digi-
tal payment methods after the
pandemic shows that the po-
tential continues to grow.
䩉 The e-commerce sector, which
grew rapidly after the pan-
demic, also increased the de-
mand for practical and ad-
vantageous payment solutions
for all parties. With the Paycell
Virtual POS product, service is
provided from a single platform
without the need to make sep-
arate agreements with different
banks for card payments, cre-
ating advantages for both the
workplace and Paycell.
䩉 With the Paycell Shopping Limit
product, it proves its success not
only in the field of digital pay-
ments but also in facilitating ac-
cess to finance in areas ranging
from holidays to e-commerce
marketplaces.
䩉 Users who want to take ad-
vantage of investment oppor-
tunities can buy and sell gold,
silver and platinum on Paycell. In
addition, by bringing the young
audience
the
stock exchange world, it offers
the opportunity to become an
investor in Borsa Istanbul and
international stock exchanges
through Colendi Menkul.
together with
䩉 As Turkcell, we know our cus-
tomers closely thanks to the
corporate know-how built up
through our telecom activities. In
this way, we are able to offer the
most suitable credit options to
our customers in financing busi-
nesses in line with the Credit Bu-
reau (KKB) and telecoms data.
䩉 Financell, one of our Techfin
services, offers financing loan
solutions suitable for the needs
individual and corporate
of
customers. Companies
that
use "Digital Transformation Fi-
nancing"
loans can own the
hardware and devices such as
software, servers, smartphones,
tablets, etc. that they need in
their digital transformation jour-
ney with specially determined
prices, interest rates and flexible
payment plans.
䩉 As the newest of our Techfin
companies, Turkcell Dijital Sig-
orta A.Ş., our insurance com-
pany, which started operations
in 2023 under the Wiyo brand,
aims to provide fast, easy and
personalised insurance servic-
es with innovative solutions to
be produced for the insurance
sector.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Strong Corporate Governance
Maintaining a strong
corporate governance
structure enables us to
manage our business
operations with high
efficiency, and to
demonstrate an exemplary
corporate citizenship
through ensuring compliance
with legal obligations which
we are subject to.
Moreover, we differentiate as a com-
pany, trusted by our stakeholders,
thanks to compliance with domestic
and international business regulations
ensured by our Company’s compliance
programs and our understanding of su-
perior business ethics.
As the only Turkish company both list-
ed on the Borsa Istanbul (BIST) and
the New York Stock Exchange (NYSE),
through effective corporate processes
and the internalization of internation-
ally accepted corporate governance
principles throughout the organiza-
tional 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 Depos-
itory Share)” Level III. With a high free
float rate of 54%, we aim to provide
long-term benefits not only to our cus-
implementing
tomers, but also to all our Company’s
the
stakeholders by
highest standards of corporate gov-
ernance practices. Our sustainability
strategy and value creation model
that we have developed in this con-
text, as well as our goal to prioritise to
act in accordance with international
standards in the fields of human rights,
business ethics, anti-bribery and cor-
ruption, competition management,
risk and crisis management allow us
to be a good role-model for corpo-
rate citizenship.
Our shareholder structure
can be found in Note 1 of the CMB
report.
Board of Directors Structure
Taking into account privileged share rights
defined in the Articles of Association, the
Turkcell Board of Directors, consists of
a total of 9 members, two of whom are
woman, who are elected by the General
Assembly with simple majority vote. Three
of the Board members meet the inde-
pendence criteria specified in the CMB
and SEC/NYSE regulations.
The Turkcell Board of Directors, whose du-
ties and authorities are determined within
the framework of the Turkish Commercial
Code, has committees established at the
Board of Directors level in accordance
with the relevant legal provisions to ensure
operational efficiency. These committees
are the Early Detection of Risk Committee,
Corporate Governance Committee, Audit
Committee, Nomination Committee, Re-
muneration Committee and Strategy and
Digitalization Committee.
While the duties of the Chairman of the
Board of Directors and the CEO are car-
ried 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.
According to the Internal Directive on the
Operation of Turkcell Board of Directors,
as Turkcell and its Group Companies op-
erate in many fields, especially in tele-
communications, finance, technology, dig-
ital services, energy, infrastructure, digital
education, etc., in order to ensure the nec-
essary diversity and professional expe-
rience, it is endeavored that, at least two
of the members of the Board of Directors
have sectoral experience in the electronic
communications, information and commu-
nication technologies sectors and all the
members of the Board of Directors have at
least seven years of sectoral experience
in their respective fields of expertise and
had the necessary education in the areas
including engineering, finance, law, busi-
ness administration, economics, public
administration and international relations.
In addition, in the election of members, the
Nomination Committee and the Board of
Directors shall pay attention to the fact
that the candidate will be able to devote
sufficient time for the Board membership
taking into account the external commit-
ments of the candidate.
5 out of 9 members are elected by Group
A preferred stock owner, TVF Bilgi Te-
knolojileri İletişim Hizmetleri Yatırım Sanayi
ve Ticaret A.Ş. (TVF) by using privileged
share rights as per the Articles of Associ-
ation. Four of those 5 members are also
nominated by TVF. There are no privileges
foreseen for the election of the remain-
ing 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 car-
ried out within the framework of the Turk-
ish Commercial Code. In the event that the
membership of any Director of the Board
becomes vacant for any reason, anoth-
er member who meets the legal require-
ments for the vacant chair may be elected
temporarily in accordance with Article 363
of the Turkish Commercial Code, and the
elected member is submitted to the ap-
proval of the first General Assembly to be
held following his election.
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.
Evaluation process
was designed taking
into account best
practices.
Performance
Evaluation Form was
filled by the Board
Members.
Feedbacks were
reviewed.
Action map
determined.
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You can find further information about the Board of Directors
Committees, their duties and members on our Corporate Governance
Principles Compliance Report or on our on our website.
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES The member whom elected in this way
serves until the General Assembly meet-
ing, when it is submitted for approval, and
if approved, completes the term of the
predecessor. No classified or staggered
Board structure has been adopted in the
Board of Directors.
Since 2019, Turkcell has adopted specific
internal rules regarding possible conflicts
of interest at the Board level. In this con-
text, 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 suf-
ficient in general, there are cases where
aggravated quorums are sought as per
the articles of association and the rele-
vant regulations.
The annual performance evaluation by
the Board of Directors based on certain
criteria was implemented initially in 2021
as part of the improvement of corporate
governance across our Company. and
in line with the aim of using the improve-
ment areas identified after the perfor-
mance evaluation process as the basis
for advanced corporate governance
practices, a number of actions were tak-
en at corporate level in 2022, including
but not limited to the implementation of
a new platform that ensures the digitali-
zation of access to the Board of Directors
meeting documentation, the transfer of
documentation to a secure platform and
the continuous access to the relevant
documentation and Strategy and Digi-
talization Committee was established.
In 2023, improvement areas were iden-
tified from the outputs of performance
evaluation process carried out by the
Board of Directors for the year 2022 and
focus areas relating to corporate gov-
ernance practices were determined with
relevant departments within the Compa-
ny by conducting a gap analysis for the is-
sues communicated to our Company both
from our shareholders and from all other
corporate governance stakeholders.
In this context, the structure of the Ethics
Committee was reorganized with the
amendments adopted by Board of Di-
rectors to ensure senior management’s
oversight of ethical policies, and an in-
ternal audit was conducted regarding
awareness of Turkcell Common Values
and Code of Business Ethics for 2023.
Within the scope of NYSE’s listing rules
regarding clawback policy that are ap-
plicable to our company, which entered
into force on October 2, 2023, it was ob-
ligated for public companies to recoup/
recover erroneously awarded perfor-
mance based compensations from de-
fined executive persons (if any) under
certain criteria if the Company is required
to prepare a restatement of incomplete,
inaccurate or misleading financial tables.
In this context, our Company’s Board of
Directors adopted Clawback Policy with
a resolution dated 7 November 2023. Au-
dit Committee, consisting of independ-
ent members, is designated for the ad-
ministration of the Clawback Policy. The
performance evaluation process of the
Board of Directors was completed for
the year 2023 in line with the methodolo-
gy below that Corporate Governance &
Capital Markets Compliance Directorate
designed and submitted to the Corpo-
rate Governance Committee and the
committee later proposed this perfor-
mance evaluation process to the Board
of Directors.
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 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.
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
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
Information
Provided to the
Board
Board
Composition
and Function
Standards of
Conduct
The set of questions
contained in this section
addresses issues such as
conflict of interest and
adequacy of contribution.
Within the scope of the above methodology, an action map was determined as per the outputs of the
performance evaluation carried out by the Board of Directors.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES ance with Turkcell Human Rights Policy
to Turkcell subsidiaries. Currently, human
rights policies are being prepared for
other group companies in Türkiye.
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
our employees and adopt exemplary
ethical behavior across our ecosys-
tem. With this understanding, with the
changes made in the structure and
duties of the Ethics Committee in 2023,
above policies and other ethical policies
that may be established, if deemed ap-
propriate by the Ethics Committee, have
been included to the scope of the Ethics
Committee’s oversight responsibility.
In 2023, 31 cases were reported to our
Company through Ethical Reporting
Channels. The reviewed cases exam-
ined were handled under two main
categories: unethical and immoral be-
haviors and financial issues. In 7 out of
31 cases reviewed, it was decided to
apply the “Termination of Employment”
sanction. It was further decided that
the cases reviewed did not involve any
actions that violate the Turkcell Group
Anti-Bribery and Corruption Policy.
Our employees, customers and
suppliers have the opportuni-
ty to anonymously communi-
cate their reasonable suspicions
and sensations about situations
that violate or potentially vio-
late business ethics to the Turk-
cell Ethics Committee via the
Ethics Line (0532 210 4444). Our
employees can communicate
situations that are contrary to
the legislation and ethically in-
appropriate situations related
to the Company to the Audit
Committee via the Company in-
tranet, internal forms, telephone,
etikbildirim@turkcell.com.tr
e-mail address or indirectly or
directly to the Audit Commit-
tee via the Ethics Committee via
auditcommittee@turkcell.com.tr
e-mail address.
You can accvess the text
of our Human Rights Policy on our
website.
Human Rights, Business Ethics
and Common Values
Turkcell believes that in order to create
long-term sustainable value and ensure
stakeholder trust and social accept-
ance, it is vital to ensure that its opera-
tions, including its Group companies and
business partners in the value chain, are
conducted in accordance with interna-
tionally recognised ethical principles. In
this context, Turkcell implements its Hu-
man Rights Policy in order to create a
working environment worthy of human
dignity and to establish a people-ori-
ented operation in its ecosystem. On the
other hand, Turkcell pays due attention
to the ethical and responsible devel-
opment and use of the technologies it
uses and will develop in its business pro-
cesses. In the technologies developed
by Turkcell, such as artificial intelligence
technologies, Turkcell aims to act on the
basis of human dignity, fundamental
rights and freedoms by contributing to
the UN Global Compact Principles and
Sustainable Development Goals and
creating a more livable world.
In accordance with our Human Rights
Policy, we comply with the Universal
Declaration of Human Rights, the Inter-
national Covenant on Civil and Political
Rights, the International Covenant on
Economic, Social and Cultural Rights, the
UN Convention on the Rights of Persons
with Disabilities, the UN Convention on
the Rights of the Child and the UN Princi-
ples on Business and Human Rights, We
respect the UN Global Principles and the
OECD Principles for Multinational Enter-
prises, the provisions of the ILO Con-
ventions to which Türkiye is a party, the
"Right and Freedom of Assembly" and
the "Right to Form Trade Unions and to
Engage in Trade Union Activities" of our
employees as set out in the Constitution
of the Republic of Türkiye; In addition,
our employees are encouraged to be-
come members of professional associa-
tions in their field or NGOs that provide
social benefits.
In 2021, Superonline, Financell and Kuzey
Kıbrıs Turkcell were included in the pro-
cess with the aim of extending compli-
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 citizen,
we oversee compliance with national
and international Anti-Bribery and An-
ti-Corruption (ABC) standards covering
all our activities. The Board of Directors
approved the Anti-Bribery and Corrup-
tion Policy in 2016 to establish the basis
of our fight against bribery and corrup-
tion. This document is a major indication
of how the Board of Directors is commit-
ted 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 frame-
work drawn up by the ABC Policy, the
ABC Program has been carried out with
the establishment of the Corporate
Governance & ABC Program Office
as of April 2018, which takes necessary
preventive measures to ensure com-
pliance with these rules and provides
risk-based trainings and internal com-
munications. The Corporate Govern-
ance & ABC Program Office continues
its activities under the name of Corpo-
rate Governance & Capital Markets
Compliance Directorate (“Compliance
Directorate”) with its autonomous struc-
ture, reporting directly to the Board of
Directors.
The Compliance Directorate, respon-
sible for implementing the anti-bribery
and corruption compliance program
in 2023, continued the end-to-end de-
signed ABC training program, identi-
fied focus groups with a risk-based
approach, produced differentiated
content specific to the focus groups
that includes all employees and exec-
utives of the Turkcell Group, as well as
the supplier and business partner eco-
system, and measured the awareness
of the participants after the training.
In addition, Compliance Directorate
was involved in contract and tender
processes, especially in key activities
such as mergers and acquisitions, le-
gal approach to the relationships with
financial institutions and technology
business partners, maintained coor-
dination with domestic and foreign
Group companies to ensure compli-
ance with the ABC policy and con-
ducted further workshops to improve
the dissemination of the ABC policy to
the whole Turkcell ecosystem.
In 2023, trainings were given to two dif-
ferent focus group (sub-focus groups
were established as per the risk as-
sessments), one is the Company/Group
company employees and managers
and the other is the suppliers and busi-
ness partners. Within this framework,
Anti-Bribery and Corruption trainings
were provided to more than 2450
participants in a total of 22 one-hour
sessions.
In 2023:
䩉The second generation ABC train-
ing, which comparatively measures
the level of knowledge of the par-
ticipants before and after the train-
ing and addresses ethical dilemmas
from actual daily professional life
regarding bribery and corruption
in a fictional flow, was assigned to
all new employees who joined the
Company.
䩉Coordination and awareness ac-
tivities were held with domestic and
international group company com-
pliance contacts within the scope
of the fight against bribery and
corruption.
䩉On December 9, 2023, World An-
ti-Corruption Day, an awareness ac-
tivity was carried out via the internal
communication channel for all Turk-
cell employees.
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.
Practices based on the Public Com-
panies Accounting Reform and Inves-
tor Protection Act, also known as Sar-
banes-Oxley (SOX) Act and U.S. Foreign
Corrupt Practices Act (FCPA), which
aim to improve the control mechanisms
of companies’ financial reporting while
supporting effective corporate man-
agement, particularly stand out as part
of Turkcell’s short- and longterm and
sustainable corporate DNA.
Due to our dual listing in the capital
markets, SOX Coordination and Com-
pliance Unit has been established with-
in the ABAC Office as of January 2019
in order to carry out our obligations to
comply with capital markets regula-
tions and corporate governance prac-
tices that we are subject to under an
autonomous structure that has direct
access to the Board of Directors.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES The SOX Coordination and Compli-
ance Unit has been continuing its op-
erations under the name of SOX Com-
pliance and Governance Unit since
January 1, 2021. The SOX Compliance
and Governance Unit, along with moni-
toring the regulations of SEC and Public
Company Accounting Oversight Board,
supports corporate transparency and
contributes to reliable information dis-
closure 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 6 hours training were given to
1,287 employees in 2023.
Economic and Trade Sanctions
and Export Controls
Turkcell Sanctions Compliance Program
Procedure, which is constantly mon-
itored and revised under the coordi-
nation of the Compliance Directorate,
was adopted by the Board of Directors
in 2020. The Sanctions Compliance Pro-
gram Procedure plays an important role
by following our company’s compliance
program, which aims to observe eco-
nomic and trade sanctions and export
control rules, both at the shareholders’
level and in our ecosystem for taking
necessary actions Within the scope of
the Sanctions Compliance Program Pro-
cedure, a periodical review covering all
business activities of the Turkcell group
is carried out by the Compliance Di-
rectorate using the data received from
the business owners. Business owners
in Turkcell are obliged to screen their
counterparts/business partners before
initiating any business relationship using
the consolidated sanctions list data-
bases of the United Nations, European
Union, USA and UK. If required, addition-
al due diligences are performed by the
Compliance Directorate, and addition-
al measures are taken. Turkcell is also
aware of the
intensifying sanctions
especially on Russia and Belarus and
comprehensive sanctions against other
jurisdictions imposed particularly by the
European Union, United Kingdom, United
States, and closely monitors the impacts
of these sanctions on group companies
with the coordination of group compa-
nies’ compliance units. Updates and risk
assessments regarding the sanctions
imposed on Russia and Belarus are also
reported to Turkcell's Early Detection of
Risk Committee and, if necessary, to the
Board of Directors. Economic and trade
sanctions related screening is also sup-
plemented with an outsourced service
provider.
In 2023, the Compliance Directorate
continuously monitored
legislation
and developments regarding eco-
nomic and trade sanctions and export
controls, and provided trainings and
awareness activities in this regard. In
2023, economic and trade sanctions
trainings were provided to employees
and managers of the Company/Group
companies, suppliers and business
partners (more than 2,450 participants)
in a total of 21 one-hour sessions.
In 2023, coordination and awareness
activities on economic and trade sanc-
tions and export controls were carried
out with the compliance contacts with-
in our Group companies located both
in Türkiye and abroad.
Competition Management
Turkcell believes that a market charac-
terised by fair competition has a pos-
itive impact on the development and
strengthening of the parties and that
fair and strong competitive conditions
are necessary for a healthy market
structure. Turkcell and its Group Com-
importance to
panies attach great
ensuring and maintaining an effective
competitive environment in all markets
in which they operate.
Turkcell endeavours to act in compli-
ance with competition laws and reg-
ulations in all its business activities and
transactions. The main objectives of
competition law include the prevention
of agreements, decisions and practic-
es of associations of undertakings that
prevent, distort or restrict competition
and the abuse of such dominance by
undertakings that dominate the mar-
ket, the control of mergers or acquisi-
tions in order to establish competition
in the markets and the protection of
competition by adopting the neces-
sary regulations and reviews. In this
context, the following procedures, in-
cluding but not limited to those listed
below, are followed within Turkcell:
䩉It is ensured that all employees review
the guidelines, information and train-
ings prepared within the scope of the
competition compliance process.
䩉In line with our general principles, we
avoid written or verbal agreements
between competitors on price fixing,
customer/region sharing, sharing of
trade channels, limitation of supply
or boycott, collusion in tenders, and
communication on these issues.
䩉There is no sharing of competitive-
information between
ly sensitive
competitors.
䩉Making the activities of rival under-
takings difficult, preventing under-
takings wishing to enter the market,
high sales prices, below-cost sales
prices are avoided.
䩉We do not intervene in the resale
prices of third parties that resell Turk-
cell products and services. The rec-
ommended resale price notification
rules are strictly adhered to.
Turkcell and Turkcell Group companies
continue their operations in compliance
with competition rules in all markets in
which they operate within the scope of
the Turkish Commercial Code, the Law
on the Protection of Competition, the
Electronic Communications Law and
related secondary legislation.
Information regarding critical lawsuits
to which Turkcell is a party is published
in accordance with CMB and
IFRS
standards and in reports submitted to
authorities such as BIST and SEC. In this
context, critical lawsuits arising from
competition law are also included in
these reports. The investigation process
initiated against our Company with the
decision of the Competition Board to
determine whether there has been a vi-
olation of Article 4 of the Law No. 4054
on the Protection of Competition by
concluding gentleman's agreements in
the labour market with the allegation
of violation of competition regulations
within the scope of the Law on the Pro-
tection of Competition continues.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Effective Risk and Crisis Management
Turkcell manages the
risks that may negatively
affect the realisation
of the Company's
strategies within the
scope of the Enterprise
Risk Management
System. In this process,
a comprehensive and
effective risk management
process is implemented to
cover key risk indicators,
technology-based
opportunities, global
trends and industry
developments.
Corporate Risk Management
Pursuant to Article 378 of the Turkish
Commercial Code and the CMB Corpo-
rate Governance Communiqué, the Ear-
ly Detection of Risk Committee, which
was established under the Board of Di-
rectors at the end of the 2012 financial
year, reports to the Board of Directors
every two months for the purpose of
early detection of risks that may jeop-
ardise the existence, development and
continuity of the Company, the imple-
mentation of necessary measures to
mitigate such risks and the management
of such risks. The reports prepared are
also shared with the independent au-
ditors. The Enterprise Risk Management
Team is responsible for assessing risks
within the framework of Enterprise Risk
Management methodology, coordinat-
ing risk prevention activities at Turkcell
and Group companies and reporting to
the Early Detection of Risk Committee.
Turkcell's Enterprise Risk Management is
designed in accordance with the COSO
Enterprise Risk Management Frame-
work and ISO 31000 standards. Our ap-
proach integrates the risk management
process with key management pro-
cesses. Within the model, risks are cat-
egorised on the basis of Turkcell Group
companies and managed by recording
them in the "risk universe". Each company
has a risk library and risks are managed
in a more effective and focused manner.
Information Security Risks
Data security risk: It includes the risks
of theft, loss, leakage, intentional or
accidental disclosure, misrecording,
alteration, deletion, destruction and
inaccessibility of all types of informa-
tion, whether internal or external to the
organisation, stored in physical and/or
electronic media, due to authorised/
unauthorised access. Turkcell takes the
necessary technical and administrative
measures against the risks related to
data security.
and external computer and network
systems. In this context, Turkcell imple-
ments all end-to-end security controls
and tests and manages vulnerabilities.
The Security Operations Centre mon-
itors and defends against cyber-at-
tacks by tracking current threats 24/7.
Financial Risks
Macroeconomic risks: This includes the
risk of deterioration of expectations
and/or the current situation due to eco-
nomic and political uncertainties. Turk-
cell is currently diversifying its funding
sources and has various sources and
necessary agreements in place in case
of regional inability to access certain
sources due to possible sanctions.
Credit limit, inflation and exchange
rate risk: This includes the risk of in-
creased costs and reduced revenues
due to fluctuations in interest rates,
inflation and exchange rates. In this
context, market conditions are close-
ly monitored and liquidity measures
are taken against the risk of access
to funding and high borrowing costs,
strong cash generation and limit in-
creases. Appropriate financial instru-
ments are selected and implemented
to minimise the impact of the high infla-
tion environment on our balance sheet
and medium to long term plans.
Liquidity, cash generation and collec-
tion risks: In the event that cash inflows
and outflows cannot be financed and
new loans cannot be obtained due to
possible imbalances in the markets and
cash flows, we increase the financing
in the portfolio, emphasise
diversity
fixed-rate
loans and systematically
monitor our future cash projections
using liquidity management principles.
The effects of investments and collec-
tion risks arising from the February 6
earthquakes on cash flows are being
monitored.
Strategic risks
Cyber Security Risk: It
includes the
risks of destruction of information and
systems and damage to systems due
to malicious use of Turkcell's internal
Risks of adapting to investment and
technological developments: These
are risks that may affect the company's
position, reputation and image in the
in
market and in the sector in the short,
medium or long term, as a result of
missed opportunities due to insufficient
innovation, new busi-
investment
nesses in the sector and other areas,
and/or failure to achieve the expect-
ed return on investment. In this context,
sectoral, local and global trends and
competitor activities in new businesses
are closely monitored and appropri-
ate actions are taken. Technological
developments are monitored through
cooperation with major
internation-
al industry organisations such as the
GSMA, relevant R&D activities, national
and international projects.
Legal risks
Compliance risks: This includes the risk
of administrative sanctions as a result
of non-compliance with applicable
regulations. Turkcell's Legal and Regu-
latory function closely monitors regula-
tions and aims to monitor and prevent
any possibility of non-compliance with
a proactive management approach.
In this context, the relevant business
teams are informed about legislative
changes and new regulations, the Per-
sonal Data Steering Committee, Com-
pliance Committee, Sub-Compliance
Committee and Information Systems
Compliance Committee are monitored
by senior management and relevant
compliance activities are carried out in
this respect to comply with them, and
various measures are taken to prevent
any violations and administrative sanc-
tions through digitalised tools such as
internal audits and a continuously op-
erating automated control system.
nation of Corporate Risk Management.
Corporate Risk Management ensures
the adoption of a scenario-based risk
management approach with an effec-
tive and dynamic risk management per-
spective and raises awareness of risk-
based management.
litigation risks: Legal
Litigation and
endeavors are being undertaken to
ensure the resolution of litigation and
disputes arising within the purview of
Turkcell's operations, contracts, and pro-
jects. These endeavors aim to conclude
these matters in a manner that aligns
with Turkcell's interests, particularly in
the event of unfavorable outcomes.
Business Continuity Risks
Risks that may arise as a result of events
that the Company may face as a re-
sult of operational disruptions, natural
disasters, terrorism, etc. The company
has detailed contingency, business and
service continuity plans. These plans are
periodically reviewed to determine their
effectiveness and to identify potential
areas for improvement, and regular drills
are conducted each year. Risks related
to earthquakes and climate change
that may be associated with business
continuity are identified, assessed and
actions monitored to cover all func-
tions of our business under the coordi-
Operational Risks
Environmental, sustainability and eco-
logical risks: Problems that may arise
due to global climate change (tem-
perature changes, increase in energy
consumption, increase in energy prices,
lack of waste management, failure to
protect water resources, etc.); environ-
mental factors that may affect human
health and biodiversity. In this context,
Turkcell, Türkiye's first ISO 50001 certi-
fied mobile operator, is monitoring its
energy consumption and making sig-
nificant investments in renewable en-
ergy through its subsidiaries. Under ISO
14064 (International Standard for GHG
Calculation and Verification), Turkcell
calculates and verifies its GHG emis-
sions through an independent organi-
sation. The greenhouse gas verification
process for the period between Jan-
uary 1, 2023 and December 31, 2023 is
ongoing and when the process is com-
pleted, the verification statement will
be published in the certificates section
of the company's website.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell Group maintains two main
measures in response to a possible
increase in energy prices: The first ac-
tion is to invest in renewable energy
sources through large-scale projects
with the aim of providing a large por-
tion of the Group's energy consumption
from its own power plants by 2030. The
Karadağ Wind Power Plant (WPP) in Iz-
mir-Çeşme, with an installed capacity
of 18 MW, the acquisition of which was
completed in 2021, was the first step in
this strategy. As part of the three-year
strategic plan, the Turkcell Group will
invest in 300 MW of solar power plants
(SPP) in suitable locations across Tür-
kiye to meet its own consumption. The
Karadağ Wind Power Plant, which will
be acquired in 2021, will be expanded
by adding new turbines. The second
measure is to hedge against tempo-
rary effects in the market by entering
into long-term and fixed-price power
purchase agreements, where appli-
cable. Since 2018, when we started re-
ceiving energy supply services through
Turkcell Enerji Çözümleri A.Ş., we have
continued to supply electricity at the
most favourable prices.
Risks associated with the manage-
ment of third party relationships: This
includes the risk of fraudulent activities
resulting from ineffective management
of third parties, or from third parties not
fully and accurately fulfilling their re-
sponsibilities, or from third parties out-
side the organisation violating compa-
ny procedures and laws, or engaging
in fraudulent behaviour. The risk of dis-
ruption to operations and objectives is
minimised by obtaining legal opinions
in accordance with agreements with
business partners.
With regard to the risk of disruption to
global supply chains, developments
leading to current supply shortages
are closely monitored. The future pe-
riod predictions are being made, and
actions are being taken by reviewing
the order plans regarding the supply
times of the affected products..
Market Risks
Macroeconomic and political uncer-
tainties: Due to economic and polit-
ical uncertainties, a deterioration in
expectations or the current situation
may result in unrealised revenues and
deviations from forecasts.
Global
trends and economic indicators, reve-
nue and subscriber data are regularly
monitored with a focus on pricing and
competitive strategy.
Competition risks: These include the
risks of rapid market changes, unex-
pected project/revenue
losses due
to aggressive moves by competitors,
and being at a disadvantage in tech-
nological or industry developments.
In this context, market and compet-
itor activities are closely monitored
and efforts are made to respond to
such competitor activities with timely
actions.
Customer risks: Customer dissatisfac-
tion and experience problems arising
from a failure to understand the needs
of the customer base due to demo-
graphic changes (age, education, in-
come, etc.), a failure to meet their re-
quirements and expectations, a failure
to identify the right target group. Mar-
ket research and detailed analysis of
customer complaints and requests are
carried out.
Business Continuity
Management
Turkcell Group's Business Continuity
Management System has been struc-
tured in accordance with the interna-
tional ISO 22301 and Social Security
Business Continuity Management Sys-
tem standards to ensure the continuity
of our voice, messaging, Internet, serv-
er services, data centres, call centres,
tower installation and acceptance ser-
vices, testing and operational support
services in our mobile and fixed net-
works of our companies Turkcell, Turk-
cell Superonline, Global Bilgi and Glob-
al Tower as well as the relevant critical
products and services of our DSS com-
panies BiP İletişim, Lifecell Bulut and
Turktell Bilişim and has been certified
as a result of an independent external
audit. The external audit, which was
conducted on the revised version of
ISO 22301 2019, was successfully com-
pleted with full compliance with the
updated standard. Regular drills are
conducted to ensure that our business
continuity plans, which have been de-
veloped taking into account customer
expectations, corporate policies and
legal obligations, work in emergency
and disaster situations.
Our strong network infrastructure, wide
coverage, network of solution partners,
mobile switching centres, mobile base
stations, additional capacity, emergen-
cy centre and past experience allow us
to mitigate risks to the greatest extent
possible, while the customer service
expertise of our Group companies,
high speed fibre optic infrastructure,
data storage service, experienced
software development teams allow us
to manage the disaster from another
centre and ensure the continuity of our
operations.
To increase the effectiveness of the
Crisis Management Plan, which covers
events such as business interruption,
natural disasters (earthquakes, floods,
etc.), cyber-attacks,
fire,
pandemic and epidemic diseases and
poisoning, internal exercises, training
and awareness activities are regular-
ly carried out with the participation of
crisis management teams and relevant
groups.
terrorism,
Turkcell Disaster and Crisis
Management Programme
As the Turkcell Group Business Con-
tinuity Unit, we continue our efforts to
increase the resilience of all functions
under our responsibility to possible dis-
asters and crises within the framework
of the Turkcell Disaster and Crisis Man-
agement Programme.
Turkcell regularly shares
its climate
change performance and approach
to climate change risks and opportu-
nities with its stakeholders through the
CDP Climate Change Reporting. As a
company that consumes and gener-
ates 100% renewable energy, Turkcell
continues its efforts and investments in
line with its goal to become net zero by
2050. Turkcell is also a Zero Waste cer-
tified company that recycles 100% of its
waste.
Climate crisis: Turkcell holds the inter-
nationally recognised ISO 14001 Envi-
ronmental Management System, ISO
ISO 50001 Energy Management System
and 31000 Enterprise Risk Management
System certificates. These certificates
are subject to annual external audits
by independent accredited organisa-
tions. Climate change risks also have
a direct impact on Turkcell's opera-
tions. Measures are taken against the
risks of extreme weather events and
natural disasters caused by climate
change, and studies are carried out in
anticipation of a long-term increase in
average air temperatures. The impact
and consequences of climate change
risks are addressed and monitored
through the corporate risk manage-
ment framework.
Turkcell is taking precautions against
the risks of extreme weather events
and natural disasters caused by cli-
mate change by conducting site risk
analyses during the installation phase
of base stations and planning the relo-
cation of data centres to cold climate
locations, anticipating the increase in
average air temperatures in the long
term. One example of the agile and
creative solutions required by climate
change is Turkcell's base stations. Mo-
bile base stations with solar panels
on the top of the vehicle, powered by
these panels, provide service by be-
ing dispatched and positioned where
there is a loss of service or a need for
additional capacity. In addition, port-
able solar fields can also be shown as
an example of agile energy solutions
for climate change. In addition, Turkcell
is integrating solar panels into some of
its base stations and switching to solar
power in the event of a power outage.
In this way, Turkcell has set an example
abroad with control mechanisms that
take all risks into account to prevent
communication interruptions.
Global energy crisis: In 2021, increasing
energy demand and supply constraints
of energy resources drove energy
commodity prices to record highs in
international markets. Electricity pric-
es, which primarily affect the Turkcell
Group, vary depending on the prices of
thermal resources such as natural gas,
coal and renewable generation ca-
pacity. In parallel with the USD-based
price increases of energy commodi-
ties in the same period, the increase in
the exchange rate in Türkiye and the
drought-related production decline in
hydroelectric power plants, where we
have the highest installed capacity,
pushed up electricity prices in Türkiye,
similar to the European markets.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Internal Audit
The selection process of the independ-
ent audit firm is carried out by the Audit
Committee, which takes into account
the competence and independence
requirements of the independent audit
firms and recommends the audit firm
it deems appropriate to the Board of
Directors.
Güney Bağımsız Denetim ve SMMM A.Ş.
was elected as the independent au-
ditor for the audit of the accounts and
transactions for 2023 in accordance
with the Turkish Commercial Code and
Capital Market Law at the Ordinary
General Meeting of our Company held
on September 13, 2023.
The Internal Audit Department, which
reports directly to the Board of Direc-
tors, is responsible for conducting audit
activities throughout Turkcell İletişim
Hizmetleri A.Ş. and its subsidiaries in ac-
cordance with International Standards
for the Professional Practice of Internal
Auditing and reporting the results to
the Audit Committee. Audit activities
mainly consist of operational audits
performed within the framework of an-
nual risk-based audit plans and com-
pliance audits performed in accord-
ance with Section 404 of the Sarbanes
Oxley Act (SOX).
Operational audit activities are per-
formed in accordance with the annu-
al audit plan, which is based on the
risk-based audit approach. Through
these audits, Internal Audit assesses
the effectiveness of the Company's
risk management, control and govern-
ance processes, provides assurance
to the Board of Directors and the Audit
Committee on these processes, and
assists the Company in achieving its
objectives.
At the same time, due to our listing on
the New York Stock Exchange in the
United States of America, in order to
comply with Article 404 of the Sar-
banes Oxley Act, which public com-
panies are required to comply with,
audit activities are performed within
the framework of an annual plan to
provide assurance on the existence,
adequacy and effective operation of
the internal control structure estab-
lished at Turkcell and Turkcell Group
Companies whose financial state-
ments are consolidated. All stages
of the audit activities performed in
compliance with the aforementioned
article, from the planning stage to the
follow-up and completion of the iden-
tified internal control deficiencies and
actions, are regularly reported to the
Audit Committee, the Chief Executive
Officer and the Executive Vice Presi-
dent in charge of Finance.
Internal Audit Department also per-
forms an advisory function on current
issues and matters as requested by
management. Internal Audit Depart-
ment reports to the Audit Committee,
the Chief Executive Officer and the
Executive Vice President of Finance on
its activities in relation to the Sarbanes
Oxley Act, section 404. The Internal
Audit function uses a risk-based audit
approach. Within this framework, po-
tential functional and organisational
risks are constantly reviewed. The main
input to the audit activities are the risk
analyses resulting from these studies.
The Turkcell Disaster and Crisis Man-
agement Programme coordinates our
pre-disaster preparations, actions
during disasters and post-disaster re-
covery plans and projects to strength-
en our preparedness for disasters and
emergencies. In order to minimise the
risks that may occur during emergen-
cies and to be able to intervene, we
conduct natural disaster and man-
made crisis drills in all our work areas
and fields.
Internal Control and
Continuous Improvement
Turkcell Group's Internal Control and
Continuous
Improvement Directorate
performs level 2 control activities by
identifying internal risks and process
improvement activities by monitoring
the effective management of business
processes within the framework of ap-
plicable laws and professional stand-
ards within the authority granted by the
General Manager, including Turkcell İl-
etişim Hizmetleri A.Ş. and Turkcell Group
Companies.
As the Internal Control Unit, risk-based
internal control activities are planned
by determining the objectives, priorities
and risks of the functions under our re-
sponsibility, and preventive and detec-
tive control activities are carried out in
accordance with the control frequen-
cies determined during the period, uti-
lizing Early Warning System, automat-
ed tools or manual methods.
The Continuous Improvement Centre
designs the company's business pro-
cesses to ensure that they are lean, ag-
ile, efficient, sustainable, with minimum
risk and error criteria, creates the con-
structs that will make the transforma-
tion continuous and carries out process
development studies to make maxi-
mum use of the possibilities offered by
technology.
In addition to evaluating the effective-
ness of the controls performed at the
first level of internal control activities,
the business units are guided to im-
prove processes taking into account
Turkcell's sustainable values. Any de-
ficiencies identified as a result of the
controls are communicated to the
relevant teams to ensure that action
is taken and the relevant action plans
are followed up. If the failure is due
to a process deficiency, the process
is reviewed and redesigned end-to-
end in coordination with the Continu-
ous Improvement Centre.
In addition to assessing the effec-
tiveness of the controls of the busi-
ness units' processes, other areas of
include conducting
responsibility
internal audits regarding the obliga-
tions of the ISO certificates held by
the company within the framework
of legal regulations and following up
on the results of Turkcell's internal au-
dit/external audit. ISO 27001 and ISO
27017 certifications are international
frameworks that help organisations
protect their financial data, intellec-
tual property and sensitive customer
information.
Information
ISO 27001
Technology Security Techniques for
Information Security Management
System standards are international
certifications held by Turkcell, Lifecell
Bulut, Turkcell Superonline, Turktell,
BiP, Turkcell Teknoloji, Kule A.Ş. and
Turkcell Ödeme Hizmetleri A.Ş. ISO
27017 Information Technology Secu-
rity Techniques for Cloud Services
standards are
international certifi-
cations held by Turkcell and Turkcell
Superonline.
These certifications help protect the
information in our companies and re-
duce risks by implementing a robust
and systematic approach to infor-
mation management. Thanks to the
ISO 27001 and ISO 27017 certificates,
we identify, manage and mitigate our
information security risks in accord-
ance with the standards. On the con-
tinuous improvement side, ISO 9001
Quality Management System audits
are successfully completed and audit
results are used as input to the contin-
uous improvement cycle.
With the integrated quality manage-
ment system approach, continuous
improvement awareness, culture and
training activities are carried out to-
gether with the document manage-
ment system, governance develop-
ment activities and the internal process
improvement suggestion platform.
New generation continuous improve-
ment technologies are used and man-
aged in our processes. A data-driven
approach to process management,
process mining studies and
internal
deployment of Robotic Process Auto-
mation (RPA) are being undertaken.
End-to-end process design and model-
ling of all processes of Turkcell and Turk-
cell Group companies are carried out.
A monitoring and management struc-
ture is established by defining KPI and
metric-based process performance
indicators. The corporate process and
document architecture is created, up-
dated and maintained by establishing
common process design principles and
ensuring their integration into the pro-
cess development cycle.
To strengthen our internal control and
continuous
improvement activities,
studies are carried out to create a flow,
risk and internal control inventory of all
processes. Reasonable assurance in
detection and preventive internal con-
trol activities is provided by automated
controls using advanced data analyt-
ics and robotic automation.
The Internal Control Unit reports to the
Executive Committee. At regular meet-
ings, internal control activities planned
and performed during the year, find-
ings, action plans and future plans are
evaluated.
As part of the initiative to increase the
awareness and competence of Robotic
Process Automation (RPA) in the com-
mercial functions, an RPA marathon was
held with five commercial functions. As
a result of these marathons, with 448
participants, 284 manual jobs requir-
ing 59.7 thousand hours of effort were
transferred to robotic automation.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Financial Capital
Strong Financial Performance
Our financial capital is the
main economic input that
enables all our activities
to create value for our
stakeholders.
Providing innovative services to our
customers through a widespread and
strong telecoms infrastructure, devel-
oping indigenous technologies, build-
ing a service network that creates
satisfaction, benefiting society through
social projects, creating favourable
employment conditions for our employ-
ees and creating value for our share-
holders can only be achieved through
strong financial performance. Strong
and sustainable financial performance
is therefore one of our top priorities.
We aim to generate a strong operat-
ing profit from the revenue generated
by our operations, while focusing on
efficient management of our working
capital requirements and on making
our capital expenditures on a de-
mand-driven basis to support long-
term value creation.
As we operate in an emerging market,
risk management is an important item
on our agenda. With a prudent risk
management approach, we protect
our business model against macro-
economic and financial fluctuations
through our hedging practices. In this
context, we attach importance to ad-
justing the prices of our products and
services according to the general level
of prices in our country in order to en-
sure real income growth and minimize
the impact of inflationary pressures on
our operational profitability.We also
support growth through focus areas
such as customer acquisition, consum-
er and business digital services reve-
nue and techfin. We also ensure that
our balance sheet is resilient to curren-
cy movements through the active use
of hedging instruments.
We focus on keeping our liquidity re-
sources strong to be prepared for fi-
nancial crises and shocks. We ensure
the efficient and controlled use of cap-
ital through balanced debt manage-
ment. We closely monitor the debt and
capital markets and focus on the use
of different structured funding instru-
ments with appropriate currency, cost
and maturity conditions to demon-
strate an effective funding approach.
We contribute to working capital man-
agement by effectively managing our
receivables.
For efficient capital management, we
continue our efforts to allocate our
capital resources to more profitable,
higher growth areas, while maintaining
our objective to reflect the true value of
our assets on our balance sheet.
As part of our strong corporate govern-
ance approach, we communicate our
financial management transparently to
our stakeholders through our integrat-
ed annual reports, quarterly and annu-
al results releases, our website, physi-
cal/virtual investor meetings we attend
and events we organise. Accordingly,
we continue our efforts to increase the
Company's market capitalisation and
share trading volume, to diversify and
deepen the investor profile and to in-
crease the weight and number of long-
term institutional investors.
You can review the details
of our audited annual financial
performance in the Consolidated
Financial Statements section.
Outputs
107.1
Billion TRY Revenue
20.0%
Operational CAPEX /
Sales Ratio
0.5x
Consolidated
Leverage Ratio
22
Million USD Net Long
FX Position
258
Meetings with
Investors
43.9
Billion TRY EBITDA
12.6
Billion TRY EBIT
12.6
Billion TRY Net Income
7.3
Billion TRY Free
Cash Flow
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Revenues from Operations
Turkcell Group Revenue (TRY million)
With a focus on value creation, one of
the key inputs of all our activities is the
revenue we generate from our opera-
tions. This is how we deliver our innova-
tive services to our customers, improve
the conditions of our employees, ben-
efit the economy and society through
our investments, pay dividends to our
investors; in short, we create value for
all our stakeholders.
2023 was a year in which inflationary
pressures continued to be effective
and macroeconomic and political diffi-
culties continued to be felt around the
world due to the impact of global wars.
In light of these developments, Türkiye
maintained its growth performance in
2023, and inflation followed a down-
ward trend in the first half of the year,
but has been on an upward trend since
July.
As Turkcell, while the challenging mac-
roeconomic conditions remained on
the agenda. we maintained our strong
operational and financial performance
in 2023, thanks to our business model
diversified with strategic focus areas
In
and customer-centric approach.
2023, our consolidated revenues
in-
creased by 14.6% year-on-year to TRY
107.1 billion. The key drivers of this per-
formance were our growing subscriber
base, accelerating ARPU growth with
price adjustments and the positive con-
tribution to growth from our strategic
focus areas.
For further details, please
refer to our consolidated financial
statements and footnotes.
93,487
2022
107,116
2023
14.6%
2023
growth
With the positive impact of our strong
revenue growth and disciplined cost
management, we achieved an EBIT-
DA of TRY 43.9 billion in FY2023, with
an increase of 19.9%. The reduction in
energy prices in the second and third
quarters of the year offset the impact
of higher employee costs due to mac-
roeconomic conditions.
Turkcell Group EBITDA (TRY million)
36,608
2022
43,877
2023
19.9%
2023
growth
In 2023, Turkish lira depreciated by 57%
against US dollar and 63% against Euro.
In a period of challenging macroe-
conomic conditions, our prudent ap-
proach to financial risk management
enabled us to limit the impact of curren-
cy movements on our financial results.
As a result of our strong operational
performance and effective risk man-
agement, we achieved a net income of
TRY 12.6 billion.
Turkcell Group Net Income (TRY million)
6,880
2022
12,554
2023
82.5%
2023
growth
Business Model Hedging
Practices
In 2003, we continued to minimise the
negative impact of challenging mac-
roeconomic developments on our fi-
nancial results by hedging our business
model. The stable pricing of our prod-
ucts and services in line with current
market price developments, the use of
hedging instruments for our foreign cur-
rency borrowings, the maintenance of
strong liquidity resources and the man-
agement of collection performance
were the areas on which we focused
this year.
We continued to adjust the prices of our
products and services with a consistent
approach in line with the current eco-
nomic conditions. In addition to accu-
rate pricing to maintain ARPU growth,
we continued our strategy of increasing
the postpaid subscriber base and mi-
Aware of our responsibility to have a
strong network infrastructure and with
the aim of connecting our customers
with the latest technologies, we con-
tinued our investments in 2023 with a
controlled approach. In line with the
continued post-pandemic increase in
demand for high quality fixed broad-
band, we accelerated our investment in
fibre infrastructure, bringing fibre access
to a total of 1.5 million new homespass-
es in 2021 and 2022. In 2023, we focused
more on increasing our fibre customer
take-up rate and provided access to
386 thousand new homepasses. On
the other hand, we accelerated our in-
vestments in the region due to the dev-
astating earthquake we experienced
as a country on February 6, 2023. The
depreciation of the TRY against foreign
currencies also led to an increase in our
capital expenditures. In this context, our
operating capital expenditures (exclud-
ing licences) amounted to 20.0% of our
total revenues in 2023.
We attach importance to our free cash
flow performance in order to maintain
our strong financial performance and
create value for our investors. In this
context, we generated TRY 7.3 billion of
free cash flow in 2023.
You can find the details
of our domestic network investments
and 5G studies in the Manufactured
Capital section of our report.
grating our customers to higher value
packages with a richer value proposi-
tion. In this context, mobile ARPU (exclud-
ing M2M) grew by 18.4% year-on-year,
while residential fiber ARPU remained
almost flat year-on-year. We pursued a
balanced growth strategy by support-
ing our revenue growth with subscriber
additions. In this context, we increased
our subscriber base12 by 799 thousand
net additions on an annual basis. At the
same time, our digital services and tech-
fin solutions, which provide faster reve-
nue growth than our telecom services,
also supported our consolidated reve-
nue growth. In this context, we minimised
inflationary pressures on operating
profitability in a year where macroeco-
nomic conditions remained challenging.
12 Including mobile, fixed
broadband, IPTV, and wholesale
(MVNO&FVNO) subscribers.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Net Foreign Currency Position (Million USD)
By the end of 2023, we have
TRY 50.0 billion
in cash on our balance sheet.
22
-25
2022*
2023
*Balance
Sheet items for 2022
include discontinued
operations in Ukraine.
Debt Service (Principal and Interest) Million USD*
Local Currency
Foreign Currency
*Turkcell Group
excluding TFC. Principal and
interest payments are included.
5
0
8
7
5
4
8
4
3
3
9
9
6
1
3
3
2
2
3
9
9
6
1
3
3
2
2
0
6
7
0
6
7
2024
2025
2026
2027
2028+
In addition to our strong cash position,
our liquidity position is also supported
by our committed availability facility of
around USD 120 million and our free cash
flow generation.
Consolidated Leverage Ratio
2022*
2023
0.9x
0.5x
Balance Sheet items for 2022
include discontinued operations in Ukraine.
Another important aspect of our liquid-
ity focus is debt management. In 2023,
despite the depreciation of the Turkish
Lira against the US Dollar and the Euro,
we were able to reduce the net debt/
EBITDA multiple to 0.5x, thanks to cash
generation where we are monitoring
the performance of our debt level.
The timely actions we've taken and the
sensitivity our customers have shown
in their bill payments, given that tele-
com services are an integral part of
their lives, have enabled us to maintain
strong collection performance in 2023.
While maintaining strong collection
performance in consumer finance, we
ensured strict management to keep
risk costs below the industry average.
When providing consumer loans, we
continued to evaluate numerous and
diverse data from systems such as the
Credit Registration Bureau (KKB), identi-
ty and address sharing systems, taking
into account various criteria, including
especially the customers' payment
performance of their telecom bills.
Efficient Capital Allocation
As part of Turkcell's focus on efficient
capital management, we are making
targeted investments in areas with high
demand and value creation potential,
such as digital services, digital business
services, techfin offerings and fibre
connectivity solutions. In doing so, we
aim to create value for our stakeholders
by strengthening our financial and op-
erational performance. Our approach
is to fund our investments in these areas
through active portfolio management,
in addition to borrowing and cash flow
generation.
In this context, we regularly monitor mar-
ket conditions and investor interest and
aim to unlock the true value of the assets
on our balance sheet through various
capital market and strategic transac-
tions when the conditions are right.
We maintained our prudent risk man-
agement approach to our foreign cur-
rency denominated
liabilities on our
balance sheet throughout 2023. As part
of our prudent risk management ap-
proach, we continued to actively use
hedging instruments. We supported the
effectiveness of our portfolio with short-
instruments, which we
term hedging
started using in the last quarter of 2021.
In order to reduce our risk by diversifying
our foreign currency transactions and
position, we emphasised local currency
trade in payments to our suppliers this
year as well. By establishing Turkish lira
payment arrangements with our largest
suppliers, we have taken a step towards
protecting our foreign currency position.
We define a neutral currency position as
minus USD 200 million and plus USD 200
million and aim to maintain our position
within this range. In this context, we have
a long foreign exchange position of USD
22 million at the end of 2023.
On the other hand, these financial in-
struments also protect us against in-
terest rate risks in the market. At the
end of 2023, approximately 60% of our
total debt has fixed interest rates, while
the proportion of our debt with fixed
interest rates was approximately 75%
thanks to hedging instruments.
Another important aspect of our risk
management approach
is closely
monitoring the effectiveness of our en-
tire derivative instrument portfolio and
ensuring the principal and interest pay-
ments of long-term foreign currency
debt are secured. Additionally, we work
with internationally recognized, relia-
ble, and reputable financial institutions
when executing these agreements.
As a telecommunications company op-
erating in emerging markets, it is imper-
ative for us to always be prepared for
financial ups and downs and to main-
tain a strong liquidity position to ensure
the continuity of our operations. In this
context, liquidity management stands
out as an important component of our
financial assets. In this context, we have
TRY 50.0 billion in cash on our balance
sheet by the end of 2023, most of which
is denominated in foreign currencies.
This amount is sufficient to cover all our
debt service until the end of 2025.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
Financing Diversity
We aim to create alternative funding
methods and sources and develop our
strong market relationships to provide
funding diversity to our strong equity
position. In this direction, we continue
to use various financing methods such
as bank loans from domestic and in-
ternational banks, Eurobond issuance
in international markets, bonds, bills,
lease certificates and asset-backed
securities
local markets,
loans to finance purchases
country
from foreign suppliers and sustainable
financing (sustainability indexed loan,
green loan).
issuance
in
In 2023, Turkcell's Board of Directors
decided to issue bonds in Turkish lira,
domestically, in one or more tranch-
es, in different maturities with a maxi-
mum maturity of 2 years, to be sold to
investors and/or allocated
qualified
to qualified investors and/or without a
public offering, up to a nominal amount
of TRY 8,000,000,000, and our applica-
tion to the Capital Markets Board was
approved. Under this issuance limit, our
company issued a bond in 2023 with a
nominal amount of TRY 2,060,000,000.
In addition, a total of TRY 925,000,000
of bonds were issued in 2023 through
our subsidiary Financell. In the same
period, Sukuk issuances totalling TRY
3,580,000,000 were completed through
our subsidiaries Turkcell Superonline
and Paycell.
During the period under review, we
continued to diversify our funding
sources through the use of sustainabil-
ity-related loans. In this regard, in May
2019, we used a sustainability loan of
EUR 50 million with a maturity of 3 years
from BNP Paribas. In 2021, through an
agreement with the same bank, we
will increase the amount of this loan to
EUR 70 million and extend its maturity to
December 2026. The new sustainability
targets covered by the agreement in-
clude the share of renewable energy
in electricity consumption, the share of
renewable energy generated within
the Group and the annual amount of
electronic waste collected.
In parallel with the company's targets,
we have continued our efforts in 2023
without slowing down, including po-
tential green issues that can be made
in the capital markets, as well as with
domestic and foreign banks regard-
ing these sustainable/green financing
transactions. As part of our goal to
meet 100% of our electricity needs with
our own renewable energy resources
by 2030, we signed a new loan agree-
ment with Bank of China for EUR 30 mil-
lion with a maturity of one year. In ad-
dition to sustainability-related loans,
we signed a new EUR 50 million 4-year
loan agreement with Societe Generale
in 2023 to finance the ongoing infra-
structure investments of our subsidiary
Turkcell Superonline.
Loans Received under
Sustainable/Green Financing
(EUR Million)
Strong and Transparent
Financial Management
It is important to our corporate struc-
ture that our financial management is
as transparent and accountable as it is
strong. As part of our transparent and
rigorous financial management ap-
proach, we plan, manage and analyse
our budget effectively. In the countries
where we operate, we manage our
direct and indirect tax practices in a
transparent and accountable manner
and publish them in our annual reports,
material event disclosures, quarterly
and annual results. Internally, we share
information in a variety of contexts,
such as share performance reports,
senior management reports and peer
company analysis.
In line with our approach to being an
exemplary corporate citizen, we have
a zero-tolerance approach to bribery
and corruption and act in accordance
with the law to protect effective com-
petition in the markets. We conduct all
our financial transactions in accord-
ance with the CMB and SEC regula-
tions to which we are subject to.
0
5
0
2
0
3
2021
2022
2023
You can find the details of
our principles and reporting on anti-
bribery and corruption, competition
management and related issues in the
Strong Corporate Governance section,
and data on taxes in the Consolidated
Financial Statements section.
Turkcell New Technologies
Venture Capital Investment
Fund (VCIF)
Turkcell New Technologies Venture
Capital Investment Fund (VCIF), which
was established in March 2022 in coop-
eration with Turkcell and Re-Pie Portföy
Yönetimi A.Ş., makes investments to pro-
vide strategic and financial support to
technology-oriented start-ups with
high growth potential in various sec-
tors. Turkcell New Technologies VCIF's
investment ceiling is currently set at TRY
500 million.
Turkcell New Technologies VCIF has in-
vested in companies and venture cap-
ital funds such as EasyCep and Mobil-
fon, a provider of refurbished phones
and electronic devices; Barikat Siber
Güvenlik, an IT security company; Pro-
cenne, a developer of products in the
field of digital security and encryption
technologies; Passion Punch, a local
mobile gaming venture; and Kuartis, a
developer of machine learning, com-
puter vision and autonomous driving
technologies.
Turkcell New Technologies VCIF also
established Ultia, our application de-
velopment platform.
investment
This technology-focused
fund aims to invest in minority stakes
in start-ups operating
in high-tech
sectors such as cybersecurity, finan-
cial technologies, artificial intelligence,
etc. in the coming period. The aim is to
create long-term value and strategic
and financial benefits for our company
through synergies with the start-ups.
Transparent Investor
Communication - Investor
Relations
We manage our Investor Relations ac-
tivities in parallel with the Corporate
Governance Principles in accordance
with the principles of accessibility,
rapid response to stakeholders, trans-
parency, consistency and disclosure in
accordance with the relevant laws and
regulations to which we are subject to.
As part of transparent and active com-
munication, we publish results such as
audit reports, press releases and in-
vestor presentations, which include our
financial and operational performance
every quarter during the operating
period, on our website in Turkish and
English to address all our stakeholders.
Since 2020, we have been publishing
an integrated annual report with an in-
creasing focus on sustainability.
We explain our approach
to communicating with our investors
and other stakeholders in the
Interaction with stakeholders section
and our communication channels
in the Stakeholder communication
channels table.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Capital market instruments
performance
Turkcell shares are traded on the
Borsa Istanbul (BIST) and the New
York Stock Exchange (NYSE).
Turkcell's shares began trading simulta-
neously on the Borsa Istanbul (BIST) and
the New York Stock Exchange (NYSE) on
July 11, 2000. The shares are traded on
BIST under the ticker symbol "TCELL" and
on NYSE under the ticker symbol "TKC" as
American Depositary Receipts (ADR).11
Turkcell's paid-up capital has a nominal
value of TRY 2.2 billion.12 Turkcell, the only
Turkish company listed on Borsa Istanbul
and the NYSE, is the 17th most valuable
company on BIST with a market capitali-
sation of TRY 123.4 billion as of 31 Decem-
ber 2023. Turkcell's American Depositary
Receipts amounted to 74.1 million at the
end of 2023.
Turkcell has a free float ratio of 54% and
lot based foreign ownership13 was 69%
as of 31 December 2023. In the same pe-
riod, foreign investor share in Borsa Is-
tanbul is 38%. The average daily trading
volume of Turkcell shares in 2023 is 39.9
million shares.
Turkcell has bonds issued on October
15, 2015 with a nominal value of USD 500
million, a maturity of 10 years and a cou-
pon rate of 5.75% and bonds issued on
April 11, 2018 with a nominal value of USD
500 million, a maturity of 10 years and a
coupon rate of 5.80%.
Share and Bond Buybacks
In order to protect our investors from
the perception of instability that may
be caused by the developments on and
after July 15, 2016 in the short and medi-
um term and/or the possible negative
effects of the fluctuations that may
occur in the global economy on Türki-
ye, Turkcell's Board of Directors has au-
thorised the Company's management
to repurchase the Company's shares
and bonds within the framework of the
announcements made by the Capital
Markets Board on July 21, 2016 and July
25, 2016. On February 8, 2023, the Board
of Directors set the maximum amount
of the fund at TRY 1,250,000,000. In this
context, 17.9 million shares (equivalent to
TRY 214.1 million) and bonds with a nom-
inal value of USD 37.2 million (equivalent
to TRY 521.8 million) have been pur-
chased since 2016. No bond purchas-
es were made in 2023 and 1.0 million
shares were repurchased in February
for TRY 33.9 million.
Our working principles are
based on strong foundations
We adopt Corporate
Governance Principles.
The key working principles of Turkcell's
Investor Relations Department include
accessibility, providing quick response
to stakeholders and informing stake-
in a transparent, consistent
holders
and timely manner. Turkcell's Investor
Relations team, which consists of peo-
ple who have a good understanding of
the dynamics of the company and the
sector and who can comprehensively
communicate the company's strategy
and focus areas, makes a difference
in the sector with its dynamic structure
and effective communication. Long-
term relationships with all stakeholders
are sought. The flow of information to
all stakeholders is provided in Turkish
and English through the Turkcell Inves-
tor Relations website and in particular
through the Public Disclosure Platform.
Investor Relations Department through-
out 2023:
䩉We held a total of 258 meetings with
institutional investment funds.
䩉We participated in 8 investor confer-
ences, 1 of which was held virtually.
䩉We organised 1 group investor meet-
ing and 2 roadshows.
䩉We shared our financial results via
teleconference four times during the
year. Approximately 80 analysts and
investors attended these meetings
each quarter and the recordings of
these meetings are available on the
website.
䩉One-to-one and regular meetings
were held with 18 analysts to man-
age expectations.
䩉Throughout the year, we received
over a thousand requests for infor-
mation by phone and e-mail, and we
responded to all of these requests.
We strive to maximise the
benefits for Turkcell and our
stakeholders
As Turkcell Investor Relations, our prima-
ry objective is to increase the company's
market capitalisation. In this context, our
goal is to diversify and deepen Turkcell's
investor profile and increase the weight
and number of long-term institutional
investors. Turkcell's institutional investors
represent 64% of the listed shareholder
base. Of these investors, 50% are locat-
ed in North America, 32% in Europe (in-
cluding Türkiye) and 12% in the UK and
Ireland. (Source: S&P Global, January
2024)
Sustainability Indices and
Performance Indicators
BIST
Our sustainability efforts are reflected
in our performance on local and glob-
al indices. Since its launch in 2014, we
have been included in the BIST Sustain-
ability Index (BIST SI), which provides an
SÜRDÜRÜLEBİLİRLİK
independent assessment of compa-
ENDEKSİ
nies' activities and is registered by Bor-
sa Istanbul, by revealing companies'
approaches to sustainability-related
issues such as global warming, de-
pletion of natural resources, depletion
of water resources, health, safety and
employment. Additionally, as of 2023,
SÜRDÜRÜLEBİLİRLİK
we continue to be included in the BIST
ENDEKSİ ŞİRKETİ
Sustainability 25 Index, which was first
calculated by Borsa İstanbul in 2022.
BIST
BIST
SUSTAINABILITY
INDEX
BIST
SUSTAINABILITY INDEX
CONSTITUENT COMPANY
Our sustainability rating was evaluated
as BBB by Morgan Stanley Capital In-
ternational (MSCI) in August 2023. Turk-
cell is the only Turkish telecommunica-
tions company to be included in the
FTSE4Good Emerging Markets Index,
which measures the ESG performance
of FTSE, an independent organisation
jointly owned by the London Stock Ex-
change and the Financial Times.
11 Two ADRs represent five
shares.
12 It contains 2.200 million shares with a
nominal value of TRY 1 each.
13 Source: Matriks
Share Information and
Dividend Yield
As Investor Relations, we aim to in-
crease Turkcell's market capitalisation
and achieve fair value. Accordingly, we
evaluate the possibilities of creating
strategic value and distribution of div-
idends to our shareholders in accord-
ance with our dividend policy within
the framework of financial discipline.
Dividend Yield
%
6
3
.
%
3
2
.
%
5
7
.
%
2
3
.
%
9
.
1
2019
2020*
2021
2022**
2023**
*In 2020, dividends were distributed
to our shareholders at the rate of 25.0% of
distributable net income, the highest rate
permitted by the legislation.
** The Board of Directors of our Company has
decided to pay 25.0% and 20.4% of distributable
net income as dividend for the years 2022 and
2023 respectively, within the framework of our
Company's Articles of Association and Dividend
Distribution Policy, as a result of a comprehensive
evaluation of macroeconomic and financial
conditions, our investment plans and our cash
projection accordingly.
Analyst Recommendations
BUY
100%
HOLD
0%
SELL
0%
18 brokerage houses actively follow
and analyse Turkcell shares. As of the
end of 2023, all 18 analysts give a "buy"
recommendation.
TCELL (TRY)*
2019
2020
2021
2022
2023
Lowest
Highest
Closing
9.28
12.52
11.86
10.36
14.80
14.16
12.55
22.13
17.53
15.38
37.89
37.17
29.98
59.41
56.10
TKC (USD)*
2019
2020
2021
2022
2023
Lowest
Highest
Closing
3.85
5.83
4.99
3.77
5.40
4.74
3.20
5.28
3.41
2.28
4.70
4.70
3.49
5.43
4.81
*Share prices are adjusted according to dividend distributions. Source: Bloomberg
Stock Exchange Symbols
Stock Exchange
Symbol
Share Certificates
Borsa Istanbul
Warehouse Certificate
NYSE
TCELL
TKC
Bonds
Bonds
Euronext Dublin
ISIN. XS1298711729
Euronext Dublin
ISIN. XS1803215869
Share performance (Relative) (2023)
January 2023
April 2023
July 2023
October 2023
December 2023
BIST - 100
Turkcell
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Credit Rating
Turkcell receives credit ratings from S&P, Fitch and JCR Eurasia Ratings. In
addition, our subsidiaries are also evaluated by JCR Eurasia Ratings within
the scope of the relevant regulations. Measures to avoid conflicts of inter-
est with organisations from which credit rating services are purchased are
included both in the service agreements and in the code of ethics of the
company from which the services are purchased.
Long-term
credit rating
Outlook
Rating Date
Review Date
S&P (FC&LC)
Fitch (FC)
B+
B+
Fitch National
AAA (tur)
Positive
Positive
Stable
December 2023 December 2023
March 2024
March 2024
March 2021
November 2022
JCR-ER (FC)
BB
Negative May 2022
JCR-ER National
AAA (Trk)
Stable
May 2021
May 2023
May 2023
Investor Relations Contact
: +90 (212) 313 18 88
Tel
: +90 (216) 504 40 58
Fax
: investor.relations@turkcell.com.tr
E-Mail
: https://www.turkcell.com.tr/en/aboutus/investor-relations
Web
Address : Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İsmet İnönü
Caddesi No: 20 B Blok Küçükyalı Ofispark, 34854 -
Maltepe / İSTANBUL
Digital Finance Transformation
Increasing the digital maturity of our
strong finance function is one of our top
priorities. Turkcell is digitising its finance
function operating model to create an
environment where business processes
are system-based, manual intervention
is minimised, operational excellence
inter-
and efficiency are achieved,
nal control points are automatically
supported and the working environ-
ment is brought up to the level of best
practices.
The studies initiated following the as-
sessment of our current finance ma-
turity level, which will restructure the
end-to-end finance operating model
from process to technology, from or-
ganisation to data, are ongoing. Within
this framework, our financial reporting
and budgeting processes, prepared
in accordance with TFRS and IFRS,
have started to be carried out with in-
creased digital maturity as part of our
work in 2023.
Techfin's shining stars. Paycell,
Financell and Wiyo
In 2023, we continued to develop and
expand the products and services we
offer to our customers under the Pay-
cell umbrella. As Paycell, offering a
wide range of products and services to
22,420 member businesses, we contin-
ue to enhance our capabilities. Along-
side our commercial Android POS and
Virtual POS products, we also provide
Paycell Vitrin, a marketplace solution
enabling businesses to instantly en-
gage in e-commerce, and Paycell Lin-
kle, our remote credit card payment
solution, ensuring secure transactions.
Paycell Android POS, which is the first
Android POS device registered by the
Revenue Administration in accordance
with TPL 507 legislation, offers collec-
tion, inventory tracking and e-invoicing
processes on a single platform, while
providing cost and efficiency benefits
to merchants. With this product, which
Paycell has developed in response to
the needs of its customers, Paycell is
serving a new POS world in compliance
with the TPL 507 communiqué, where
e-invoicing requirements are met, while
at the same time bringing together mul-
tiple banks in Paycell POS, which offers
standard bank collection management
to workplaces that transmit their own
invoice flow, and has started to offer
favourable commission pricing, where
points and instalment benefits are po-
sitioned on a single device. On the oth-
er hand, the feature allowing Android
POS users to automatically generate
the total payment amount by simply
selecting products without entering
the amounts also contributes to the
widespread adoption of the product
at events. With the ongoing develop-
ments and collaborations with integra-
tors providing services in the e-com-
merce sector, our Virtual POS product
ensures a seamless end-to-end expe-
rience. This not only provides cost sav-
ings for our users in card transactions
both in the market and through Turkcell
e-commerce channels but also serves
as a value-added and revenue-gener-
ating product for Paycell.
In 13 different brands, we provide QR
payment service with Paycell wallet in
12,420 points and Paycell payment ser-
vice with our integrations in the online
sales channels of 9 different brands. In
2023, we continue our direct integra-
tions with third-party wallet applica-
tions to deploy Paycell payment ser-
vices. This enables our users to make
payments at
leading marketplaces
and retail points and reflect them on
their invoices via direct carrier billing.
Additionally, we are enhancing our
merchant ecosystem by collaborating
directly with various brands serving in
e-commerce and physical channels,
either directly or through integrators.
Paycell provides a service that allows
shopping at affiliated merchants with-
out the need for a bank card or cash
on delivery, with the option to charge
the fee to the invoice. Paycell also en-
ables the payment of corporate bills
both through the application and at
Turkcell stores. With an
increasing
number of registered users each year,
Paycell customers can make quick and
secure purchases using QR codes. Pay-
cell Kart, on the other hand, offers the
opportunity for individuals under the
age of 18 who are not bank customers
to use a card. Additionally, Paycell Kart
customers can manage balances and
mobile payment limits from a single
account.
Paycell has created a world first by
adding a new option to its simple pay-
ment alternatives. Thanks to the "Ready
to use limit" feature, users can spend
whenever they want by transferring
their limits to their Paycell cards and
pay them back at the end of the month
with their Turkcell bill.
Paycell, Türkiye's most inclusive digital
payment and financial services plat-
form, continues to increase financial
inclusion and expand innovative pay-
ment services while leading the digital
transformation of our country. Com-
bining technology and financial ser-
vices in line with changing customer
needs, Paycell offers fast and secure
payment solutions and aims to enable
its users to easily benefit from financial
services with its vision of becoming a
financial marketplace. In line with this
objective, Paycell Shopping Limit of-
fers all Paycell customers the oppor-
tunity to pay for products and services
offered by contracted merchants in in-
stalments for up to 36 months with the
shopping credit provided by Financell,
as well as the opportunity for Turkcell
postpaid subscribers to easily pay the
credit instalments together with their
Turkcell bill. Paycell, which cooperates
with banks for its users' cash needs,
also offers the possibility of using bank
loans from within the application. Pay-
cell users can apply for loans offered
by contracted banks from within the
application, spend the loan with their
Paycell card wherever they want or
withdraw it in cash. Paycell enriches
the application every day with new
services and solutions to offer Payce-
ll users all the financial products they
need on a single platform and with the
aim of providing a superior custom-
er experience. In this regard, Paycell
users can trade commodities such as
gold, silver, platinum, etc. through the
"Investment Transactions" menu in the
application, and follow the current
prices of these products instantly. Us-
ers can use the balance on their Pay-
cell cards for commodity transactions,
and even if there is no balance on their
cards, they can also save by having
it reflected on their Turkcell bills. In
the last quarter of 2022, stock trading
transactions were added to commod-
ity trading transactions in the Invest-
ment Transactions menu. Paycell users
can invest any amount, with a mini-
mum of TRY 10 in Turkish Lira, in Amer-
ican stock exchanges from this menu,
which has a simple and understanda-
ble interface. As with other credit and
commodity transactions, this service is
provided by the authorised business
partner. In addition to credit intermedi-
ation and investment products, Paycell
also offers its customers personal in-
surance packages through the Group
company Wiyo.
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Paycell
2022
2023
Paycell 3-month active users (million)
Total transaction volume (TRY billion)
Revenue (million TRY)
EBITDA (TRY million)
EBITDA margin (%)
7.7
37.1
1,693
762
45.0%
8.0
65.6
2,177
926
42.5%
ations with the vision of becoming
the "insurer of mobile life", with an ap-
proach that aims to expand the rela-
tionship it has established with its cus-
tomers through their mobile devices
to all areas of life where mobility and
technology are present, to be a com-
panion that protects its customers' as-
sets on this journey, and to create an
easy, understandable, simple and cus-
tomer-oriented experience where they
can complete their insurance process-
es easily and with tailored proposals.
The first result of these efforts was the
Kredim Güvende product, a credit
protection insurance offered to cus-
tomers together with Financell loans.
Kredim Güvende (My Loan is Safe), the
credit protection
insurance product
launched in June 2023, was followed
by Cyber Security Insurance, which se-
cures Turkcell Group companies, and in
November we launched Wiyo Healthy
Life and Wiyo Life at Home personal
accident insurance packages.
Aiming to provide its customers with in-
surance products that meet the needs
of mobile life, as well as value-added
services and solutions that make their
lives easier, Wiyo aims to accompany
its customers in their daily lives and at
every stage of their active lives, and to
create solutions that meet their chang-
ing habits and expectations.
In 2022, the scope of business offered
through our existing insurance agen-
cy Turkcell Sigorta Aracılık Hizmetleri
A.Ş. was expanded and Turkcell Dijital
Sigorta A.Ş. was established. The li-
cence application submitted on behalf
of Turkcell Dijital Sigorta A.Ş. to the In-
surance and Pension Regulation and
Supervision Board (SEDDK) in October
2022 was approved and the insurance
licences of Turkcell Dijital Sigorta A.Ş.
were registered in February 2023.
Turkcell Dijital Sigorta A.Ş., Turkcell's
new insurance company with the ca-
pacity to provide end-to-end services,
which is positioned as a continuation
of Turkcell's financial services strategy,
started its operations in June 2023 fol-
lowing the registration of its licences
with the SEDDK.
Turkcell Dijital Sigorta A.Ş., under the
brand name Wiyo, started its oper-
Financell
2022
2023
Number of customers brought to Turkcell through
Financell (thousand)
Number of loans utilised annually (million)
Number of customers utilising annual loans (million
people)
Total loan portfolio (TRY billion)
Revenue (million TRY)
EBITDA (TRY million)
EBITDA margin (%)
123
1.9
1.3
5.5
1,848
1,011
54.7%
138
1.7
1.2
6.2
2,361
808
34.2%
its
increased
Paycell
revenues by
28.6% this year, while the EBITDA mar-
gin was realized at 42.5%. The num-
ber of 3-month active users of Paycell
reached 8.0 million.
While Financell continued to provide
financial loan solutions for the tech-
nological product and service needs
of individual and corporate customers,
from 2023, it launched various financial
loan solutions in areas such as SPP loan
(solar energy system financing loan),
furniture and white goods, and deep-
ened in shopping loan and used car
loan products. Since 2020, the Bank has
continued to be active in corporate
loans with the digital transformation
loan. To date, nearly 100 digital trans-
formation financing loans have been
disbursed. Meanwhile, thanks to the
credit risk
infrastructure and digital
transformation projects implemented in
2021, credit assessments were conduct-
ed more quickly and credit risk man-
agement continued to be effective. The
cost of risk ratio hovered around 1%.
With the projects completed in 2020,
financing services were also provided
to corporate customers and Superon-
line customers. Thus, financing solutions
continued to be offered for all products
and services sold by Turkcell. In addi-
tion, the transformation of our system
infrastructure, one of the most impor-
tant investments in our digital transfor-
mation, was completed in 2021. With
the strengthened infrastructure, in 2022
we started to operate in non-Turkcell
channels with new products such as
digital holiday loans and vehicle loans.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Trends
Leadership in Telecom
2023 was a year of major events that
affected the whole world. The Rus-
sian-Ukrainian war that began in 2022
is still ongoing, while the Israeli-Pales-
tinian conflict has intensified, especially
since October 2023. In 2022, the prob-
lems in the supply chain decreased to
a large extent, while inflation generally
decreased after the central banks of
most countries raised interest rates. In
our country, after peaking in October
2022, inflation declined slightly in 2023
due to the CBRT's rate hikes and the
base effect, closing the year at an av-
erage of 54%. The number of tourists, on
the other hand, continued its upward
trend after the pandemic in 2023.
As Turkcell, we maintained our strong
operational structure by taking the
necessary actions
in an agile and
fast manner in line with these devel-
opments. In our mobile business, we
achieved strong growth thanks to
subscriber acquisition, which is mainly
due to our brand recognition, superior
infrastructure, unrivalled customer ex-
perience and analytical capabilities,
increased data usage, our strategy
of switching to higher value packag-
es, the impact of the increase in the
postpaid customer base and price up-
dates to reflect inflationary pressures.
Increasing competition, which started
in the second quarter of the year and
continued throughout the rest of the
year, continued to impact the mobile
number portability (MNP) market. While
the general price level in the market
continued to rise, we observed ag-
gressive campaigns by competitors.
As Turkcell, although we responded
to these campaigns from time to time,
we maintained our subscriber acqui-
sition without abandoning our pricing
focus. In 2023, although the number of
tourists
increased compared to the
previous year, the impact of service
providers offering alternative data
solutions curbed subscriber growth.
On the fixed line side, we continued to
drive growth with our continued focus
on fibre, 12-month contract structure,
focus on migration to higher speeds
and increased IPTV customer numbers
and prices.
Digital Transformation and
Inclusion
Mobile communication
technologies
are at the heart of the digital transfor-
mation process for both individuals and
organisations, facilitating and acceler-
ating access to information.
The number of people accessing the
Internet through mobile applications
has reached 4 billion, proving that the
telecoms sector is one of the most ef-
fective channels for digital services to
reach people. By facilitating people's
access to information and its increas-
ing importance globally, the telecoms
sector stands out as one of the most
important sectors for eliminating ine-
qualities and ensuring equal access
to information, services and financial
services. In this context, the telecom-
munications sector can ensure social
equality with digital solutions that cov-
er many different social groups and
accelerate global development with
smart applications.
As Turkcell, we have been focusing on
the equalising power of technology in
all our activities since the day we were
implementing projects that
founded,
aim to ensure that everyone has equal
opportunities to access information. By
utilising our high analytical capabili-
ties, we develop high quality innovative
products, services and projects and
provide services in many areas from ed-
ucation to finance.
We are developing rapidly in the field
of mobile payments with our Payce-
ll application, which is positioned as a
new generation super-app with more
than 24 million downloads. Our digital
services offer solutions to our custom-
ers' needs with products such as TV+,
fizy, BiP, lifebox and Suit Conference.
We support the digitalisation of busi-
nesses with our Digital Business Servic-
es. With our Superbox product, which
provides fibre speed internet in areas
where there is insufficient infrastructure
for fibre, we can offer fast and reliable
internet access to everyone without the
need for a cable connection. Our Whiz
Kids project connects gifted students
with technology and science.
My Dream Companion
With My Dream Companion, we are
committed to supporting equal access
to information and independent par-
ticipation in social life for the visually
impaired.
The My Dream Companion service is a
free service available to all subscribers
of the operator via iOS and Android
mobile applications and 8020 IVR line,
where the visually impaired can bene-
fit from navigation technology in indoor
areas such as Turkcell stores, shopping
malls and universities, and instant au-
dio description technology for movies
shown in cinemas and on digital plat-
forms, in addition to accessing content
such as current news, columns, audio
books and education since 2012.
In the Disabled-Friendly Stores Pro-
ject, which made 100 Turkcell stores in
78 provinces of Türkiye accessible, the
Dream Companion indoor navigation
technology enabled visually impaired
people to easily find what they were
looking for in the store.
Throughout 2023, we expanded the
scope of our audio description technol-
ogy, through which we provided audio
description of 54 films to the visually im-
paired, and developed our live descrip-
tion technology to provide description
of performances such as theatre and
musicals. Thanks to these technologies,
we supported equal access to the arts
for the visually impaired by participat-
ing in FilmEkimi and the Films Without
Barriers Festival, as well as live descrip-
tion of the Flawless World Musical per-
formed at the Zorlu PSM Turkcell Platin-
ium Stage.
While meeting the increasing demands
of our customers with innovative offers
and options such as Esneyen Paket (Flex
Package) and Yapboz Paketi (Puzzle
Package), we continued to offer the
right solutions to our customers by uti-
lising our analytical competencies. We
broke new ground in the industry with
Gold Membership, which we offer ex-
clusively to prepaid customers. With
smart offers and win-win fictions, we
reinforced the usage habits of our cus-
tomers who turn to our digital channels.
As a result of our strategy of always
being there for our customers, our in-
novative and comprehensive tariffs
and value-added services, our brand
recognition, our superior
infrastruc-
ture and our unrivalled customer ex-
perience, we achieved a total net
subscriber17 growth of 799 thousand,
of which 493 thousand were mobile
subscribers. Our mobile ARPU18 grew
by 18.4% year-on-year, driven by price
increases, increased data usage, our
strategy of switching to high benefit
packages and the increase in postpaid
customer base. Thus, we continued to
achieve healthy growth in both cus-
tomer acquisition and ARPU growth in
a balanced manner.
Especially starting from 2021, we had
accelerated our fiber infrastructure in-
vestments. In 2023, we expanded our
infrastructure to 386 thousand new
households and continued to con-
tribute to our country's digital trans-
formation. With the contribution of
our expanding fibre infrastructure, we
achieved 169 thousand net fibre sub-
scriber additions in 2023. Due to the de-
layed price adjustments by the leading
operator in the fixed market and the
24-month contract structure, there was
a 0.7% growth in fixed residential fiber
ARPU in 2023. Accordingly we convert-
ed the majority of our offers to 12-month
contract packages in order to pass on
price adjustments to our subscribers in
a more timely manner.
Big Data
In today's communications world, mas-
sive amounts of data are generated by
social media networks, connected de-
vices, customer behaviour, government
service portals, call logs, billing informa-
tion and similar sources. As a result, mo-
bile operators are finding it increasingly
difficult to cope with rapid fluctuations
in data volumes. While Big Data chal-
lenges the telecommunications industry
with its technical infrastructure require-
ments, it also offers the opportunity to
turn this challenge into an opportuni-
ty with Big Data analytics techniques.
This is an opportunity that needs to be
embraced by the entire organisation,
not just the technical staff. It is also im-
portant for all organisations to develop
decision-making mechanisms through
data-driven analysis. While this scope
requires everyone without software ex-
perience to work with data, it pushes
us towards a structure where everyone
can perform data analysis and analyt-
ics with low-code platforms.
As Turkcell, we offer
big data analytics
services to our corporate
customers, giving them
the opportunity to
differentiate their services
in this context.
We analyse big data and make our in-
vestments taking into account the de-
mands and needs of our customers. In
an era of transparent competition, it is
crucial to monitor and act on customer
satisfaction immediately. In this context,
we strive to ensure maximum satisfac-
tion by closely monitoring our custom-
ers' experiences.
17 Including mobile, fixed
broadband, IPTV and wholesale (MVNO &
FVNO) subscribers.
18 Excluding M2M
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Regulatory Developments and
Sector Regulations
As the electronic
communications
sector is an element
of the constitutional
right to freedom of
communication and one
of the most critical sectors
in Türkiye, sector activities
are closely monitored
and supervised through
regulations and legal
arrangements.
In this critical sector, ensuring the for-
mation of effective and competitive
market conditions and helping to
shape the digital experience environ-
ment desired by consumers requires
the active participation of sector
players, relevant NGOs and regulato-
ry authorities.
It is crucial that sectoral regulations
serve the objectives of unleashing the
potential of electronic communication
technologies, supporting the devel-
opment of the digital economy, fos-
tering fair competition, and creating a
conducive investment environment in
terms of developing innovative servic-
es that meet consumers' needs.
We centralise our comprehensive le-
gal services that require national and
international compliance and assess
the compliance of all activities con-
ducted within Turkcell. As Turkcell, we
effectively manage disputes while
providing preventive
legal services;
we build corporate strategies on sol-
id legal foundations, making our op-
erations and expansion in the global
market more viable. By digitalising our
processes, we add value to the lead-
ership and reputation of Turkcell and
our Group companies.
We consider public institutions and
regulators as an essential part of our
ecosystem, and by focusing on the
continuity of the sustainable ecosys-
tem and consumer welfare, we con-
tribute as an active stakeholder at
every stage of any legislative work
that directly or indirectly affects our
sector. We act with an awareness of
the potential for regulatory develop-
ments to have a direct impact on our
business model and strategies. We
continue our activities in line with our
objective to create value for our coun-
try and our industry by working with
regulatory authorities and relevant
stakeholders.
In addition, we also conduct stud-
ies on the legal aspects of emerging
technologies such as artificial intelli-
gence, blockchain, space technolo-
gies, cybersecurity and smart cities,
both in our country and internationally,
and create value for both our Compa-
ny and our country in this area.
Climate Change
In the World Economic
Forum's (WEF) Global
Risk Report 2023, 6 of
the 10 risks that will have
the most impact if they
materialised in the next
decade are related to
environmental and climate
change risks.
These are defined as failure of climate
change, mitigation and adaption, ex-
treme weather events, loss of biodi-
versity, human-caused environmental
damage and natural resource crises.
In addition to a number of catastrophic
events, changes in climate policy, tech-
nology, consumer preferences and
financial market expectations have
led to large fluctuations in commodity
prices and increased costs in recent
years. As a result, research and devel-
opment spending on new and alterna-
tive technologies is increasing.
To effectively manage these risks, the
business world and companies need to
focus on implementing strategies that
support the circular economy, renew-
able energy, and recycling to rapidly
reduce emissions to zero. In line with
the goals of the Paris Agreement, 73
countries, including EU countries, have
committed to become carbon neutral
by 2050, and the number of countries
making commitments is increasing. The
Republic of Türkiye also joined the list
of committed countries by becoming a
party to the Paris Agreement within the
year 2021 and announced its target for
2053.
Climate change risks also directly af-
fect Turkcell's business operations. As
Turkcell, we are taking precautions
against the risks of extreme weather
events and natural disasters caused by
climate change by conducting field risk
analyses during the installation phase
of base stations, and we are making
plans to relocate data centres to cold
climate locations by forecasting the in-
crease in average air temperatures in
the long term.
In our energy-related activities, we are
focusing on environmentally friendly
green energy sources within the frame-
work of the Sustainable Development
Goals, and we are making investments
for this purpose. With the Turkcell Sus-
tainability Strategy announced in 2020,
we are working towards our goal of
becoming a net-zero company by
2050 as a company that consumes
100% renewable energy and produces
renewable energy. In this context, our
acquisition of the Izmir Karadağ Wind
Power Plant in 2021 and our investments
in solar energy support our vision of
becoming not only a company that
consumes renewable energy, but also
a company that produces renewable
energy.
Turkcell has
identified our climate
change-related risks and opportuni-
ties by considering the recommenda-
tions of the Task Force on Climate-Re-
lated Financial Disclosures (TCFD). This
work enables us to evaluate our invest-
ments in a holistic manner by highlight-
ing our development areas and oppor-
tunities on which we can focus.
The full report is available on
our corporate website.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES We are also continuing our efforts as
one of the founding members of the
UNGC CFO Task Force, which aims to
create a market for SDG investments.
The Progress in Techfin
Applications
The expansion of digitalisation, the
use of cryptocurrencies and block-
chain, and the global
in
smartphone penetration provide a
suitable environment for the develop-
ment of financial technologies.
increase
Smartphones, which have become
the first choice for many people’s ac-
cess to internet, play a facilitative role
for many technologies and services,
including fintech. Techfin and mobile
services have the potential to provide
access to financial resources and ser-
vices to people who have been ex-
cluded from the financial system.
As part of our technology focus in the
Turkcell ecosystem, our financial tech-
nology activities, known as techfin,
are carried out through our three sub-
sidiaries, Paycell, Financell and Wiyo.
With more than a quarter of a century
of experience, superior digital services
and advanced analytical capabilities,
we closely follow developments
in
techfin and develop market-leading
products and solutions.
Paycell, Turkcell's new generation
payment platform, is a platform full of
opportunities for both consumer and
corporate customers in the field of
mobile payments. While services such
as money transfer, shopping limit fa-
cilitation, bill payment, transport card
payment, commodity trading and fi-
nancial marketplace payments can
be easily applied through the Paycell
application, we provide a simplified
payment experience with applica-
Sustainable Financing
Activities
financing differs
Sustainable
from
conventional finance in that the funds
provided are used in accordance with
various environmental, social or gov-
ernance criteria. Today, the magnitude
of the climate crisis has led investors
to pay more attention to non-financial
risk factors and to increase reporting
on these factors. In response, compa-
nies have begun to align their business
strategies, corporate finance and in-
vestment activities with the goals set
out in the Sustainable Development
Goals supported by the United Nations
Global Compact.
With the growing risks associated
with the climate crisis, it is inevitable
that sustainable credit instruments will
become more widespread and that
banks will increasingly impose sanc-
tions on the sustainability of the pro-
jects they finance. In the coming period,
ESG investment is expected to continue
to grow globally. Sustainable sources of
finance are crucial in the context of the
European Green Deal, which encour-
ages these investments and the invest-
ment in long-term planning and financ-
ing of the projects to be implemented.
By focusing on sustainable funding
options, weare increasing our funding
diversity, supporting our sustainability
activities and continuing to access fi-
nance under more favourable condi-
tions. In this context, we aim to further
increase our Sustainability
Indexed
Loan and Green Loan business in 2019
and 2020. In 2019, we increased the
amount of the 3-year Sustainability
Indexed Loan of EUR 50 million with a
maturity of 3 years that Turkcell İletişim
used from BNP Paribas to EUR 70 million
and extended its maturity to December
2026. In 2023, within the scope of our
Self-Consumption Project, we signed a
new green loan agreement with Bank
of China for EUR 30 million to finance
renewable energy investments. In addi-
tion to bank loans, we continue to focus
on the capital markets to access and
diversify funding. In the new period, we
continue to monitor the market to meet
our increasing investments with green
issues, especially in domestic markets.
tions including solutions such as Pay-
cell Android POS, QR, Virtual POS and
Link Payment. In 2023, we achieved
significant volume growth in our Vir-
tual POS and Android POS solutions,
as well as our link payment solution. In
addition, we were the first in the event
sector to launch the Event POS solu-
tion, which allows product-oriented
sales without entering the amount, as
a new generation field sales product.
Financell, our financing service that
provides consumer and corporate
customers with access to financing
solutions in areas such as solar ener-
gy system financing loans, used vehi-
cles, furniture and white goods, and
technology products, has disbursed
approximately 17 million loans totalling
TRY 40 billion since its establishment.
In insurance sector, another highly in-
teresting business line in the fintech
ecosystem, we expanded our ongoing
agency operations and began offer-
ing services through Turkcell Dijital Sig-
orta A.Ş., which became operational
under the Wiyo brand as of 2023.
As part of Turkcell's digital financial
services strategy, we launched Turk-
cell Dijital Sigorta A.Ş., brand name
Wiyo, as a non-life insurance compa-
ny with the aim of extending the digi-
tal-based shopping and payment ex-
perience, the foundations of which we
have laid with our agency Turkcell Sig-
orta Aracılık Hizmetleri A.Ş., to the ar-
eas of pricing, product design, claims
and customer service. By merging
technology and insurance, Wiyo pro-
vides innovative solutions in the insur-
ance sector and offers comprehen-
sive insurance solutions that adapt to
the changing lifestyles of customers.
Financell 17 million
loans totalling TRY
40 billion
since its establishment.
Cyber Security
In line with the increase in data gener-
ated in the digital age and the growing
demand for data centres, as Türkiye's
largest data centre operator, we are
working with the vision of keeping Tür-
kiye's data in Türkiye to ensure data
security and the confidentiality of per-
sonal, critical and sensitive data. The
national studies and regulatory ele-
ments that have been carried out to
make our country a centre for hosting
and transferring data are undoubtedly
contributing to the development of our
cybersecurity capabilities by increas-
ing the demand and investment for
data centres and cloud services in our
country.
The rapid spread of digital transfor-
mation in the business world and the
increasing use of technology by indi-
viduals and institutions brings with its
cyber security risks for organisations,
as well as benefits. The increase in cy-
ber security threats is a reminder of the
importance of information security for
companies and organisations.
We identify emerging threats in the
cyber environment, develop measures
to reduce or eliminate the impact of
potential attacks and incidents, and
collaborate nationally and
interna-
tionally to share them with relevant
stakeholders. We build secure system
infrastructures by developing our pro-
cesses with new experiences, raising
information security awareness, train-
ing competent human resources, creat-
ing layered security controls and using
next-generation technologies. Through
our Turkcell Security Operations Cen-
tre, we monitor current threats and cy-
ber-attacks 24/7 and take necessary
actions by implementing end-to-end
security controls and testing. We of-
fer our cyber and information security
expertise, which is integrated with our
digital operator expertise, as a service
to our corporate and individual cus-
tomers. In this context, we continue to
meet the needs of all companies, insti-
tutions, organisations and individuals
in many areas, such as ensuring cyber
security, protecting data and building
an integrated infrastructure.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Artificial Intelligence
Artificial intelligence technology, which
is high on the agenda of decision-mak-
institutions and
ing mechanisms of
organisations,
is reshaping business
strategies as it has become a term for
applications and software that per-
form complex tasks. Many companies
are making significant investments in
data science teams to take advantage
of the opportunities and value offered
by artificial
Institutions
intelligence.
incorporating machine learning and
cognitive interactions into traditional
business processes and application
software can significantly improve user
experience and productivity, proving
the value of artificial intelligence.
As Turkcell, we work in accordance
with our company's policies and proce-
dures, which are prepared in accord-
ance with international standards, in-
ternal controls and audits, and the laws
we are responsible for, based on the
principles of artificial intelligence that
we announced in January 2020, which
consist of "human and environmental
orientation, transparency, profession-
al responsibility, data privacy, security,
fairness, and sharing and cooperation
for a better future". We are prioritising
compliance with these seven principles
in our work on artificial intelligence,
which is expected to be at the heart of
technological developments. With this
pioneering step, we as an organisation
have joined the ranks of global players
seeking solutions to the ethical issues
that will arise from artificial intelligence.
We have led a turning point in our
country in artificial intelligence, which
will be one of the concepts that will
affect the global leadership claims of
countries. Our AI principles ensure that
AI is for and about people, and that
technology is used responsibly, without
harming human value.
With our artificial intelligence technol-
ogy, we make sense of the big data
obtained from our operations and
offer propositions with our analytical
capabilities. We use machine learning
techniques to traffic density, capacity
management and anomaly detection
in our network, contributing to infra-
structure efficiency. Through our Digital
Business Services company, we offer
artificial intelligence solutions to insti-
tutions and organisations.
As AI activities are directly linked to
the technology function, we operate
in a rapidly changing technology eco-
system, and regulatory developments
around AI are rapidly evolving in every
sector from health to security, finance
to education, our strategic goals are
frequently revised in line with senior
management knowledge and business
plans. Our legal and regulatory team
has been collaborating with global or-
ganizations for a long time to address
concerns related to AI and to enhance
its positive impacts. As Turkcell, we play
an active role in international platforms
discussing the responsible and ethical
use and future of artificial intelligence.
Contributions we have made include:
䩉Studies on children's rights and artifi-
cial intelligence,
䩉 Studies on the responsible use of fa-
cial recognition systems,
䩉 Standardisation studies carried out
within the IEEE to address ethical
issues and concerns that may be
raised by artificial intelligence,
䩉Activities under the Planet Positive
2030 initiative within IEEE,
䩉Studies on the responsible and ethi-
cal use of artificial intelligence tech-
nology in smart, sustainable cities,
and studies on artificial intelligence
and health conducted at the ITU.
Acting meticulously within the frame-
work of the Personal Data Protection
Law, Turkcell continues to work without
deviating from the principles it has an-
nounced by using artificial intelligence
for the realisation and development of
human potential.
Fiber Infrastructure
The increasing popularity of remote
education and work applications,
along with the resulting changes in user
behavior and factors like the rise in the
number of devices connected to the
internet at home simultaneously, has
significantly increased the demand for
strong internet services. The low level of
access to fiber to the home or building,
which is the main solution that can ful-
ly meet these needs, cannot meet the
current needs of users in our country
and hinders the digital transformation
process of our country. The increasing
demand of users for internet and the
fact that our country's infrastructure
cannot fully meet this demand at the
moment increases the importance of
investments to be made in this area.
As Turkcell, we have made 386 thou-
sand homepasses accessible to Turk-
in 2023. With the
cell fiber quality
contribution of these investments, we
achieved 169 thousand net fiber sub-
scriber additions in 2023. We aim to
continue to focus on our fiber infra-
structure investments in the coming pe-
riods, taking into account the favoura-
ble market conditions. In addition, we
believe that our investments in this area
will make a significant contribution to
the transition to 5G.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Human Capital
Decent Workplace
Our employees are at the
heart of the success we
have achieved in Turkcell's
activities with a focus on
creating value.
We consider our employees as brand
ambassadors of our company, an in-
tegral part of our people-centric ap-
proach to employee experience. From
recruitment onwards, we prioritise pro-
viding them with an exemplary work
environment where they feel valued,
satisfied and secure. We ensure equal
access to development opportuni-
ties, enabling them to realise their full
potential.
implement our human
re-
processes, which we
line with our
implemented
We
sources
have
human resources
in
policies and strategies, in
accordance with the
legal require-
ments. We communicate all operation-
al changes that may arise in these pro-
cesses and practices and that could
significantly
impact our employees
within the legal notice period through
our internal communication channels.
Outputs
Performance Indicator
Short
Term
Target
Medium
Term
Target
Long
Term
Target
2022
Performance
2023
Performance
Target
Towards
Current
Status
24.2%
Female Manager Ratio
35.2%
Female Employee Ratio
1.43
Accident Frequency Rate
99%
Rate of return to work of
female employees whose
maternity leave has ended
Increasing the ratio of
female employees
-
Increasing the
number of female
members in the Board
of Directors (including
independent
members)
-
Increasing the ratio of
female managers
-
-
-
-
40%
(until
2030)
34.6%
35.2%
2
1
2
28%
(until
2030)
24.9%
24.2%
Increasing the rate
of return to work of
female employees
whose maternity
leave has ended
Increasing the
retention rate of
female employees
after the end of
maternity leave
98%
98%
98%
98%
99%
88%
90%
90%
86%
94%
Positive development
Negative direction
Contuniues
In accordance with
Turkcell Human Rights
Policy Turkcell oppose discrimination
based on gender, age, belief, ethnic-
ity, nationality, marital status, health
status, and physical ability in all of our
business activities. We continuously im-
prove ourselves by implementing 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 requirements of the
rapidly evolving digital age with an ag-
ile manner in order to better respond to
customer needs, and we improve our
skills with rich training programs
We design all our people processes
to touch the employee experience at
every stage, from recruitment to exit
and beyond, end-to-end. We design
and manage our compensation and
benefits policies, as well as the inte-
grated execution of performance and
career management,
leveraging our
data-driven approach and the power
of digital. In this way, we lead the busi-
ness world with our analytical solutions,
which we place at the heart of all our
processes.
By listening to our employees, we en-
sure that the employee experience is
best managed in line with expecta-
tions, needs and international develop-
ments. We work collaboratively to plan
our people, define roles and responsi-
bilities, and identify business risks and
goals.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Diversity, Inclusion, and Equal
Opportunity
In order to provide a
suitable environment
for our employees to
fulfil their demands and
needs, we implement
our human resources
practices that provide
equal opportunities to
all individuals, advocate
inclusion and diversity with
the vision of a people-
oriented company and the
belief that ensuring that
we operate in accordance
with human rights is one
of our most fundamental
duties, and we improve in
this area every day.
With the Human Rights Policy we have
published as Turkcell, we carry out ac-
tivities to prevent discrimination, ine-
quality, human rights violations, forced
labour and child labour in our business
processes and we continue our efforts
to ensure that these values are adopt-
ed throughout our ecosystem within
the supply chain. In addition, in line
with the UN Women's Empowerment
Principles - WEPs, to which we are a
signatory, we
implement practices
that support gender equality in busi-
ness and Turkcell's goal to become the
company that women most want to
work for thanks to its gender equality
approach.
We are committed to adopting an at-
titude based on fundamental rights
and freedoms in our relations with our
employees, customers, business part-
ners and all our stakeholders, to com-
plying with the principles set out in
our policy to ensure compliance with
national labour legislation and inter-
national regulations to which we are
subject, and to fulfilling our obliga-
tions to ensure our organisation's full
commitment to these principles.
Our human resources practices pro-
tect the mutual rights of employees
and employers. We apply ILO (Inter-
national Labour Organisation) stand-
ards on the prohibition of child labour
and forced labour throughout our val-
ue chain, including our suppliers.
As an equal opportunities of employer,
we offer fair and equitable consider-
ation for employment to all qualified
applicants regardless of disability,
race, colour, religion, gender, national
or ethnic origin, age, physical appear-
ance or condition, marital or military
status.
recruitment
We also design our
processes to ensure that our disa-
bled candidates experience a disa-
bled-friendly and accessible process
throughout. We do not ask for infor-
mation about disability status during
the application process and apply the
same equal opportunities approach
to our assessments. We conduct our
interviews and procurement digitally,
and we make our physical working
environment accessible. As of 2023,
we have 136 disabled employees in
our company.
All employees of Turkcell and Turkcell
Group Companies, especially the sen-
ior management and the manage-
ment level, are responsible for achiev-
ing the gender equality and gender
balance targets. As Turkcell, we aim
to increase the proportion of female
employees to at least 40% by 2030. In
this context, we monitor the ratio of
female employees and female man-
agers on a monthly basis. We monitor
the targets for the ratio of female em-
ployees and female managers within
the scope of gender equality in the
performance cards of the employees
responsible for the process, starting
from the senior management level. We
work to increase the number of fe-
male managers and employees in line
with the inclusive Pozitifİz strategy. We
evaluate the results achieved in terms
of financial, operational, legal compli-
ance and environmental aspects and
review them as part of our internal au-
dit activities.
We believe that gender discrimination
in professions and fields of expertise
should be left behind, and with our
identity as a leading digital operator
company, we continue our activities to
ensure equal participation of women,
especially in STEM (Science, Technol-
ogy, Engineering, Mathematics) fields.
To empower women in business and
support initiatives led by them, we
are implementing many practices and
taking important steps to increase the
employment of "female engineers" in
Türkiye. By 2023, 31% of positions will
be held by female engineering grad-
uates, while 35% of IT positions will be
held by female employees. We are
also providing new job opportunities
for female engineers who are starting
their careers or female profession-
als who have taken a break from the
business world for various reasons.
As part of Turkcell's remuneration pol-
icy, we apply the principle of "equal
pay for equal work" and do not dis-
criminate between our male and fe-
male employees in terms of base sal-
ary. We apply our remuneration policy
in an impartial manner to all our oper-
ations within the framework of rele-
vant standards to ensure that our fe-
male and male employees in the same
role and at the same job level are not
subjected to wage discrimination.
The fact that there are no cases filed
against Turkcell İletişim Hizmetleri A.Ş.
by our employees or third parties on
the grounds of discrimination based
on
language, religion, race, creed,
sect, ethnic origin, political or ideolog-
ical opinion, marital status, age, gen-
der difference is an important indica-
tor of our approach to this issue.
Employee Demographics in 2023
Employee Breakdown
by Gender
Employee Breakdown
by Education Level
Male Employeers
3,484 - 64.8%
Doctorate
Female Employeers
1,895 - 35.2%
Graduate Degree
Undergraduate Degree
Associate Degree
High School
0.5%
29.2%
66.8%
1.8%
1.8%
Employee Age Group
Distribution
Age Group Distribution
of Managers
30 years and under
Between 30-50 years
50 years and over
18%
78%
4%
30 years and under
Between 30-50 years
50 years and over
0.2%
91.7%
8.1%
*Demographic information presented in Our Human Assets section includes data from the
following 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 Dijital Sigorta 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., BiP İletişim Teknolojileri ve Dijital Servisler A.Ş., Boyut Grup Enerji A.Ş., Turkcell Gayrimenkul
Hizmetleri A.Ş. and Turkcell Satış ve Dağıtım A.Ş. Employee demographics do not change significantly during
the year.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
In 2023, the Young Talent
Programme received more
than
40,000
applications
82
number of talents
joining our team
38% female
62%
graduated from
engineering department
Employer Branding and Talent
Acquisition
With T.Life, our young, dynamic, and
inclusive employer brand strategy that
does not discriminate between Turk-
cell's generations, we aim to create a
world that “you want to be in” and “you
are happy to belong to”. We carry out
our employer brand activities so that
Generation T, which we have creat-
ed in line with Turkcell's dynamism and
the dynamism of the new generation
that will have a greater impact on the
business world and which we define
as “technology savvy”, “taking matters
into their own hands” and "global citi-
zens", can realise their potential.
We organise events at Turkcell on Cam-
pus, where we host university students
at Turkcell offices, and Turkcell on Cam-
pus, where we bring Turkcell members
together with university students. In
2023, we organised events with 24 dif-
ferent universities and 75 student clubs
in İIstanbul, Ankara and İIzmir, where
we touched more than 20,000 students.
Making a Difference in
Employment
As Türkiye's leading digital operator,
we contribute to employment with pro-
grammes that we have customised to
reach Generation T, from information
technologies to finance, from market-
ing and sales to human resources.
With the aim of recruiting talented
young people, we offer opportunities
to both university students and grad-
uates through various internship and
graduate programmes every year.
As part of the 2023 Stajcell Programme,
which offers university students the
opportunity to get to know Turkcell's
technological world, a total of 223 in-
terns from various universities and de-
partments in Türkiye gained experience
in professional business life at Turkcell.
After the successful completion of
this programme, 39 high potential in-
terns were hired in the Turkcell Plus
Programme.
Since 2016, we have been success-
fully running our The Young Talent
(GNÇYTNK) Program for recruiting new
graduates. With this program, we aim
to recruit talents who achieve results
every year without giving up, pursue
their dreams, have a high technologi-
cal aptitude and adapt quickly to new
conditions.
In 2023, we received more than 40,000
applications for the Young Talent Pro-
gramme and recruited 82 talents who
successfully completed the process.
38% of the talents who joined us are
female candidates and 62% are engi-
neering graduates.
We recruit graduates and young tal-
ents as well as experienced profession-
als. With the perspective of competent
employees recommending competent
candidates, Turkcell employees can
recommend external candidates for
open positions through the “Tell Your
Candidate, Create Benefit” program.
If the candidates recommended by
our employees successfully complete
all processes and join Turkcell, we offer
a thank you gift to our employees who
recommended the candidate through
Paycell. Within the scope of this pro-
gram, 33 candidates were hired.
New Hires
Full Time
Part Time
2022
2023
706
592
0
0
New Hires
2022
2023
Female
Male
277
429
224
368
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Employee Experience and Talent Management
Life at Turkcell
We want to enhance our
employees' experience
at Turkcell and create
a world they want to
be a part of. To this
end, we offer internal
communication activities
that support corporate
culture and loyalty,
rewards and benefits
that prioritise employee
well-being, career
and skills development
opportunities, and a safe
working environment.
Since 2016, as a pioneering company
that has experienced flexible working,
we have been working under the motto
"If you are there, Turkcell is everywhere"
by eliminating borders with our flexible
working model, which we have expand-
ed in 2021.
Happiness Day brand. We brought Gen-
eration T together at Function Breakfasts
based on Deputy Director Generals. We
organised many special in-house events
to increase employee motivation, from
Winter Festival to Yeşilçam Night, from
Taste Carnival to Baht-ı Büs.
By defining the principles of our innova-
tive working model in the Flexible Work-
ing Manifesto, we ensure that we can
work from anywhere and be accessible
in any situation. When our employees
want to use company locations, we use
the T.Life Digital Office application to
maintain work-life balance and support
and improve our work environment with
"Flexible Working Support". Turkcell em-
ployees whose work requirements lend
themselves
location-independent
working can work remotely or flex their
working hours from Turkcell offices in dif-
ferent cities in Türkiye.
to
With the flexible working model, we in-
crease our motivation and synergy and
implement activities that contribute to
our work culture. We aim to achieve
strong business results, both operation-
ally and financially, with physically and
mentally healthy, highly productive em-
ployees who are committed to the com-
pany's values and culture.
To increase the interaction of the T. Gen-
eration, we have carried out many ac-
tivities with the T. club, T. studio, T. labs
and T. stage concepts. With our T.club
concept, we brought together art lov-
ers, adventurers, travellers and gour-
mets among our employees in activities
such as open-air cinema, weekend
camping and cultural tours. With our
T.club volunteer formation, we covered
all our employees at Turkcell locations.
Our T.stage concept brought togeth-
er music-loving Turkcell employees for
acoustic concerts. With the T.Life mo-
bile application, which brings Human
Resources applications to the pockets
of Turkcell employees, we made per-
sonal development and healthy living
videos available to employees with the
T.labs concept. We brought Generation
T together with many famous names
through live broadcasts and podcasts
on T.studio.
We also held many special events and
instant surprises in our offices under the
With healthy living activities titled "Take
Care of Yourself", we organised many
activities for the mental, physical and
spiritual health of Turkcell employees,
from walking and jogging in the forest to
cycling tours, from outdoor yoga to brisk
exercise. We created Türkiye's largest
corporate sports club with 13 branches
and 17 teams within Turkcell. We organ-
ised summer and winter sports schools
for our employees' children to have a
healthy and fun time.
In 2023, 148 events were organised and
more than 68 thousand Turkcell employ-
ees participated in these events. In addi-
tion, the Avantajlar Dünyası campaigns
published in the T.Life application of-
fered more than 25 thousand benefits to
Turkcell employees and their families by
providing discount codes, and the Step
into the Future social responsibility pro-
ject transformed the digital steps of em-
ployees into Turkcell forests and sports
fields in village schools.
Employee Loyalty and
Happiness
At Turkcell, we design our applications
with a human-centered approach. By
maintaining a constant dialogue with
our effective and competent human re-
sources, we measure the effectiveness
of our processes through the feedback
we receive from our employees. To con-
tinuouslyimprove the employee experi-
ence, identify our strengths and areas for
development, and take the necessary
action, we conduct employee opinion
surveys. We analyse the results of the
surveys and individual interviews and in-
itiate processes to take action.
We conduct regular employee loyalty
surveys with independent consultancies
to measure the overall loyalty and sat-
isfaction of our employees, and use the
feedback from the survey to develop ac-
tion plans. This allows us the opportunity
to continually review the effectiveness of
our practices.
2023 Employee Turnover Rate 9.5%
Female turnover rate
Male turnover rate
9.2%
9.6%
Career and Skill Development
Practices
We support our employees through
programmes such as career manage-
ment, succession management, and
rotation, and we shed light on their
career paths. In this way, we focus on
both the needs of the organisation and
individual success. To achieve the best
business results, we conduct effective
performance management and sup-
port our employees with rewards, sal-
aries and benefits.
Within the scope of Turkcell's career
management, we determine the tech-
nical knowledge and critical experi-
ence of employees in relation to their
roles and responsibilities on a pathway
basis for each job within the frame-
work of our KariyerimFlex career ar-
chitecture. We provide our employees
with career and skill development ap-
plications where they can develop the
technical knowledge and critical ex-
perience they need. Turkcell employees
who feel ready to move to the next lev-
el in their career path proactively ap-
ply to the Career Progression Process
promotion system and start their ca-
reer progression on their own initiative.
In the evaluation committees, which
are composed of various functional
managers to ensure a fair and trans-
parent evaluation process, Turkcell
employees explain themselves, their
work results and their contributions to
the company with the perspective that
"your job and career are in your hands".
In this way, they have the opportunity
to receive concrete and transparent
feedback from both their own manag-
ers and managers from different func-
tions.We offer Turkcell employees the
opportunity to gain new experiences
and develop their competencies in line
with their career and personal devel-
opment needs through our Appren-
ticeship Program, which aims to create
different opportunities by supporting
360-degree thinking and facilitating
increased
internal communication.
Thanks to the Apprenticeship Program,
Turkcell employees have the chance to
gain experience in the departments of
their choice.
With the FLEXSourcing programme,
Turkcell employees can voluntarily
spend a part of their working time on
innovative projects that require a vari-
ety of different perspectives, expertise
and skills. They apply for projects that
are opened up throughout the year,
which both increase synergy within
the company and develop new skills.
Through our FLEXSourcing application,
more than 300 Turkcell employees who
want to add value to Turkcell in 2023
applied for a total of 31 projects.
We diversify our employees' talents
internal transfers, enabling
through
them to develop new skills, increase
their motivation, and enhance their
job satisfaction. Our internal transfer
process, which allows employees to
acquire different technical knowledge
and skills, enabled more than 100 of our
employees to move to different depart-
ments and functions in 2023.
Through succession management, we
back up employees in management
positions (C-level, GM, Director, Man-
ager) and critical expert positions with
internal and/or external resources to
ensure business continuity and sustain-
able performance of our business. In
disaster and crisis situations, we identify
critical roles and positions as part of the
Geographical Redundancy Process to
protect the business continuity and sus-
tainable performance of our business
against unexpected loss of managers
and employees.We back up employees
in these positions with internal and/or
external resources, and develop our em-
ployees in line with this process.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Performance Management and Feedback System
Flex Performance Management
We provide effective, fair and flexible
performance management for our em-
ployees to achieve the best business re-
sults. We use a performance system that
enables all Turkcell employees to mon-
itor and update their goals throughout
the year, aims to continuously improve
their work performance and personal
development through regular and im-
mediate feedback, and supports them
through recognition practices.
As part of the goal-setting process at
Turkcell, we expect each employee to
set specific, measurable and realistic
goals with their manager in line with the
company's goals, and to update these
goals throughout the year in line with
their changing priorities. Through the
mid-year review meetings that are part
of the process, we enable Turkcell man-
agers and their teams to benefit from
the power of communication by com-
ing together to clarify goals and action
plans, evaluate the facilitating effects
of achieving the result, and continu-
ously improve employee performance
through regular and frequent feedback.
At the end of the year, we complete the
process by giving each employee an
objective-based appraisal, with a fair
approach to rewarding success.
Behavioural and Skills
Assessment: ReFlex360
We conduct a competency assessment
process to evaluate the competencies
expected of Turkcell employees in an
impartial and multi-stakeholder man-
ner and to raise awareness by identi-
fying strengths and areas for improve-
ment. Our ReFlex360 process, through
which each competency is assessed
on an employee basis by managers
and peers, provides Turkcell employ-
ees with comprehensive and objective
feedback for their personal develop-
ment throughout their careers, while
also contributing to corporate harmo-
ny, courtesy and effective functioning
among employees.
Continuous Feedback
Mechanism: ReFlex
We believe in the power of construc-
tive feedback to boost motivation in
our business processes. With ReFlex,
our mobile mechanism for providing
instant feedback, we give our em-
ployees the opportunity to appreci-
ate each other and make constructive
suggestions so that we can develop
and improve together.
Remuneration, Reward and
Fringe Benefits
We administer our remuneration policy
at all job levels in the most reliable way,
based on knowledge, skills and critical
experience, and transparently to all
our stakeholders. We update and de-
fine our compensation policies based
on the roles in which business units are
experiencing talent loss or are seeking
to attract talent, peer companies and
the wage market. We also update the
salary scales by taking into account the
needs, recruitment and talent loss data
as well as labour market research con-
ducted by independent consultancies.
Within the framework of Turkcell's remu-
neration policy, we apply the principle
of "equal pay for equal work" and do
not discriminate between the base sal-
aries of our female and male employ-
ees, and we apply our remuneration
policy impartially within the framework
of our standards without differentiating
between the salaries of our female and
male employees in the same role and at
the same job level.
In determining Turkcell's remuneration
policy, we pay attention to creating
competitive and motivating conditions
that ensure the retention of our man-
agers and employees, as well as the
talents that take on critical roles within
the company. We reward performance
with performance-based compensa-
tion practices.
We provide all our employees with a
basic benefits package based on the
nature of their job, and allow them to
choose some of these benefits flexibly
through the Flex Menu, in line with their
annual budgets. In this way, our em-
ployees have the opportunity to choose
health and life insurance, meals and gift
vouchers according to their lifestyle and
different needs.
In our benefits practices, we provide
inclusive opportunities not only for our
employees but also for their families,
and we focus on maintaining employ-
ee satisfaction. In this context, we offer
health insurance packages that allow
employees to include their spouses and
children in addition to themselves. We
offer all our employees "life insurance
with death and critical illness cover" and
support them with disability insurance
in the event of accident or illness. In the
event of an employee's death, we pro-
vide educational support for primary,
secondary, high school and university
age children related to the employee.
With our Turkcell Private Pension Plan,
we contribute to the savings and invest-
ments of our employees so that they can
maintain their standard of living after
retirement. We extend the legal pater-
nity leave from 5 days to 10 days so that
our employees who become fathers
can spend more time with their children
in their first moments and support child-
care. We are also committed to making
life easier for our female employees
returning to work after giving birth. For
example, we have carefully designed
lactation rooms in our workplaces and
provide items such as tools, fridges,
rocking chairs and hygiene kits that
may be needed. To support our working
mothers, we offer childcare assistance
to our employees with pre-school chil-
dren. We enable our parents with chil-
dren in primary school to share their
excitement by being with them on the
first days of school and on report card
days. We also offer birthday leave and
paternity leave to ensure the wellbe-
ing of our employees and support their
work-life balance. For employees with
seven or more years of service, we offer
a renewal leave of up to three months
once every seven years at the employ-
ee's request.
We provide interest-free loans to em-
ployees for financial needs such as
health, marriage and home purchase.
We support our employees'
internet
access with Turkcell Superonline cam-
paigns. We offer our employees the op-
portunity to use Turkcell digital service
memberships (Fizy, TV+, Lifebox, etc.) free
of charge and enable them to benefit
from Turkcell Platinum benefits.
We provide our employees with a com-
pany computer, a company phone and
a GSM line. We also renew their comput-
ers and phones after a certain period of
use. Taking into consideration the rela-
tives of our employees, we offer a cer-
tain number of our employees' relatives
the opportunity to benefit from Turkcell's
mobile services with appropriate pack-
ages and tariffs through the Employee
Relatives Campaign.
We use an application that enables us
to strengthen the appreciation mech-
anism, increase motivation and spread
exemplary work. With this application,
our managers at the director level send
a message to our employees who per-
form an innovative, exemplary project
or value-added work, stating that they
have done a super job, thus support-
ing motivation by ensuring that the
employee is appreciated by all his/her
colleagues. In addition, every year we
financially reward our employees who
make a difference, as identified by our
Assistant General Managers, and pres-
ent them with certificates at a ceremony
organised within the function as part of
the CXO Awards. In addition, as part of
the Turkcell family, we financially reward
our employees who have completed 5
years of service and multiples of 5 years
of service and present them with a sen-
iority plaque.
We respect the "Rights and Freedoms of
Assembly" and "Rights to Establish Trade
Unions and to Engage in Trade Union
Activities" of our employees as stipulat-
ed in the Constitution of the Republic of
Türkiye. In this regard,there has been no
written application made to Turkcell by
any authorised labor union in 2023.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Training and Development Our
Approach
As Turkcell Academy, we stand by our
employees in their development jour-
ney. With the aim of creating a sustain-
able learning culture for a better future,
we aim to provide innovative solutions
that create value for the Turkcell eco-
system, society and the sector to de-
velop a skilled workforce by ensuring
the development of individuals whose
lives we touch with a focus on people
and the future. We support our ecosys-
tem of more than 70,000 people with
distinctive training and development
solutions.
Our Turkcell Ecosystem Leadership ap-
proach consists of 8 core competen-
cies that bring our employess and eco-
system together with a focus on people
(Aware, Flexible, Reliable, Trustworthy,
Sharing) and the future (Visionary, Inno-
vative, Sustainability Conscious, Inclu-
sive of Diversity). With these competen-
cies, we aim to demonstrate common
behaviours and spread our corporate
culture. Our training and development
focus is based on our Turkcell Ecosys-
tem Leadership approach and we aim
to create global employees and lead-
ers who make a difference in Turkcell's
vision of "superior digital services for a
better future".
In 2023, in addition to designing devel-
opment programmes, leadership pro-
grammes and development journeys
specifically for Turkcell's young talents,
we
implemented employment pro-
grammes that benefit society, training
and development journeys for universi-
ty students and in the field.
Turkcell Academy
Trainings
Turkcell Academy
Trainings
3
3
.
3
3
.
8
2
.
1.4
1.8
1.5
0
2
.
1.2
33.1
40.8
36.6
32.0
2020
2021
2022
2023
2020
2021
2022
2023
Turkcell Academy Total Training
Hours (million people*hours)
Turkcell Academy Total Number
of Training Participants (million
people)
Training Hours per Employee
(hours/person)
Turkcell Academy
Participants by Gender (%)
Turkcell Academy Participants
by Age Groups (%)
2022
2023
2022
2023
2022
2023
Male
Female
Male
Female
51%
49%
49%
51%
2022
Between 30-50 years
30 years and under
50 years and over
2023
Between 30-50 years
30 years and under
50 years and over
36%
63%
1%
42%
57%
1%
Orientation Programmes
Turkcell Group Orientation
Programme
Focus on our flexible working model
and learning styles , we have designed
an induction programme where we ac-
company and experience together our
employees' journey of adapting to their
roles and the company, starting from
their first day of work.
Our programme, which utilizes both
synchronous and asynchronous train-
ing methods, not only provides guid-
ance to new employees through expe-
rience and
learning-from-each-other
sessions but also facilitates interaction
among employees.
As part of our orientation programme,
we organise experiential learning ses-
sions for our employees some time after
they start work. Through these sessions,
we give them the opportunity to expe-
rience Turkcell's customer experience
by visiting a call centre and our tech-
nology infrastructure by visiting a data
centre. We organise breakfast meetings
where they can hear the company's vi-
sion and strategy from Turkcell's senior
management.
Young Talent (GNÇYTNK)
Orientation Programme
We
introduce our candidates who
apply for the GNÇYTNK programme
to certified training and development
programmes with Turkcell Academy.
We welcome GNÇYTNKs who are suc-
cessful in the recruitment evaluation
process with a dynamic orientation
programme to ensure their rapid ad-
aptation to Turkcell's corporate cul-
ture and technology. We bring them
together with senior management by
creating an environment where they
can discover what it means to be a
Turkcell employee. We structure the
first 90 days of their working life so that
they learn about training workshops
where they can learn about Turkcell's
digital services and products, sustain-
ability strategies, company culture and
values.
As part of the programme, we also
work with Turkcell's Technology teams
and various global business partners
to enhance their technology visions.We
provide trainings focused on artificial
intelligence, cybersecurity, data cen-
tres, data analytics, and blockchain.
Legal Mandatory Trainings
We aim to keep the knowledge and
awareness level of Turkcell Group em-
ployees high through regular training
within the framework of the laws and
regulations to which Turkcell is subject.
The trainings that Turkcell employees
receive in this context are planned in
two separate categories: legally man-
datory trainings and basic awareness
trainings.
At Turkcell, we provide “Basic Occupa-
tional Health and Safety Training” and
“Information Security Training” within
the scope of legally required training,
and “Business Continuity Training”,
“Sustainability”, “Bribery and Cor-
ruption”, “Economic and Commercial
Sanctions”, “Turkcell Common Values
and Code of Business Ethics” and “Per-
sonal Data Protection Law” training
within the scope of awareness and
awareness-raising with the participa-
tion of all our employees.
Basic Occupational Health and Safety
Training is a mandatory training that
all Turkcell employees must complete
in accordance with the Occupation-
al Health and Safety Law No. 6331. All
employees receive OHS training every
two years. The basic OHS training is
reviewed and updated on a regular
basis. In 2023, our employees increased
their OHS awareness by participating
in more than 30,000 hours of training.
In addition, Turkcell makes donations
to Tohum Autism, TEV and OGEM Foun-
dation for every employee who com-
pletes the basic OHS training. While our
employees receive basic OHS training,
they also add value to society and the
environment.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Information Security Training is another
training received in the same frame-
work. Information security training is
given to all employees every two years.
The basic awareness training varies
according to the needs, but basically
consists of the following trainings:
䩉TODIEK (Turkcell Common Values
and Code of Business Ethics) training
䩉Anti-bribery and corruption training
䩉Economic and Trade Sanctions
Training
䩉KVKK (Personal Data Protection Law)
training
䩉Sustainability Training
䩉Business Continuity Training
䩉Enterprise Risk Management
Training
The duration, content and method of
the relevant training will be planned
and delivered in the most appropriate
manner.
KÜP - Turkcell Academy Digital
Library
Through the Turkcell Academy Digital
Library (KÜP) programme, which is de-
signed in accordance with the learn-
ing organisation and self-learning ap-
proaches, we make over 1,500 content
available to all Turkcell employees. We
offer Turkcell employess the opportuni-
ty to design their learning journey with
e-learning, reading, video, podcast and
interactive video options that they can
access from KÜP according to their pre-
ferred learning method.
Turkcell Function Trainings
Turkcell offers Functional Development
Programs that are synchronized with
Turkcell’s main strategy and initiatives
and support end-to-end develop-
ment throughout the year. These pro-
grammes, we aim to prepare Turkcell
employees for the Turkcell and tech-
nologies of the future, while providing
them with perspectives that add value
to their current jobs, support collabo-
ration and achieve success together
for common goals together.
Different learning methods and tools
such as online, live virtual classroom,
face-to-face and laboratory environ-
ments are used in the development
programmes, which are conducted
using the experiential learning method
together with business partners in the
ecosystem, Turkcell Academy trainers
and development partners with ex-
perts in their fields. These programmes
are designed with a flexible model that
can be differentiated according to the
changing needs and priorities of the
relevant functions throughout the year
and can be redesigned with immedi-
ate needs.
In 2023, all employees will be support-
ed in their development journey from
aspiration to practice through flexible
and personalised programmes. In this
context, the focus in 2023 was on 'expe-
riential training and development pro-
grammes' and 'systemic personalised
development solutions'. By diversifying
personalised and flexible development
solutions into functional development
journeys
programmes, development
in
were successfully
implemented
which the targeted development
is
monitored throughout the year with a
senior manager.
KEY - Personal Education
Journey
We support the development of social
skills and competencies of all Turk-
cell employees through the Personal
Education Journey (PEY) programme
with a focus on experiential learning.
By allowing participants to choose
the training they need, we give them
the opportunity to develop their com-
petencies that will contribute to their
business and personal lives. In 2023, the
Personal Education Journey was com-
pleted with the participation of 1,200
people on 15 topic areasidentified in
parallel with the competencies of the
future and Turkcell's strategies.
Leadership Development
Programmes
We design Leadership Development
Programmes with a focus on people
and the future, taking into account the
specific needs and sphere of influ-
ence of leaders at all levels. With these
programmes, we support our leaders
in every area they need to make de-
cisions that will take Turkcell into the
future, identify new opportunities, cre-
ate the right strategies with a holistic
perspective, communicate them in a
way that establishes the strategy and
business context, inspire employees at
all levels to find meaning and excite-
ment, lead change, keep team spirit
and we-consciousness alive.
We continuously update the Lead-
ership Development Programmes by
creating innovative development solu-
tions with a holistic and flexible ap-
proach, taking into account individual
needs at six different levels. As every
year, the leadership programmes have
been designed in parallel with the 2023
strategies and development needs. On
the way to the 2023 corporate strate-
gies, the main focus was identified as
"Creating Value Together", and the de-
velopment programmes for our leaders
were built around the goal of creating
shared value. At the same time, lead-
ership programmes were designed to
manage uncertainty, push boundaries
in an environment of uncertainty, and
aim for personalised and experiential
learning to serve strategic holism. In
2023, 692 leaders were trained in this
context.
University Collaborations
By signing major value-added pro-
jects for Türkiye, we are working with
universities to train skilled workers for
the sector. We bring our students, who
will shape the technologies of the fu-
ture, together with Turkcell's experts in
the fields of communication networks,
information networks, techfin and ERP
systems. Through these collaborations,
we have the opportunity to share our
experience and vision in current tech-
nology and business areas with uni-
versity students. Through these events,
where our employees with experience
and knowledge in their fields come
together with students who want to
shape their careers, we contribute to
the brand value of our company and
at the same time help our university
students in their career choices.
In order to support Turkcell employ-
ees in their career and academic de-
velopment, we have partnered with 9
different universities to offer master's
and doctoral programmes. A total of
147 employees participated in 9 dif-
ferent master's and 2 doctoral pro-
grammes in the fields of Business Ad-
ministration, Management Information
Systems, Capital Markets and Finance,
Marketing and Brand Management,
International Computer
Information
Internet Security,
Technologies and
Business Management, Engineering
Management, Management Econom-
ics and Management and Organisa-
tion Management. The aim of these
programmes is to contribute to the
development of our company and our
country by enriching the academic
theoretical knowledge of the universi-
ties with current practical knowledge
from the world of technology.
RPA (Robotic Process
Automation) Marathon
increase efficiency
We are involving our colleagues in
a long-term training programme as
part of the RPA Marathon, which was
implemented in line with our digitali-
sation strategy and aims to save time
and
in business
processes by automating routine op-
erational processes across Turkcell. In
this context, we conducted 12-hour on-
line or face-to-face trainings with 958
participants in various cities, including
İIzmir, Ankara and İIstanbul in 2023. At
the end of the trainings, we ensure that
our participants, who participate in the
RPA Marathon and write their own ro-
botic process automation scenarios,
contribute to our operational excel-
lence and digitalisation strategy by
digitising their business processes.
Future Talks
In the Future Talks seminars, we organ-
ise for Turkcell strategies and initiatives,
we bring together all Turkcell employ-
ees with researchers and practition-
ers who set good examples globally.
In 2023, we held seminars on Artificial
Intelligence Technologies, 5G, Cyber
Security, Techfin, Metaverse, Digital
Broadcasting and OTT, Digital Trans-
formation, and RPA. In addition, we or-
ganised seminars on safe structures,
psychological safety and disaster pre-
paredness of our locations for Turkcell
employees during disasters.
In 2023,
692
leaders were trained in this
context.
we conducted
12-hour online or
face-to-face
trainings with
958
participants in various cities,
including Izmir, Ankara and
Istanbul in 2023.
A total of
147
employees participated
in 9 different master's and
2 doctoral programmes
in the fields of Business
Administration
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Mentoring
In the internal mentoring programme, we
aim to ensure the development of the
managerial skills of volunteer mentees
and to create a common management
culture so that volunteer mentors in Turk-
cell Group companies can share their
experiences in an environment of trust,
independent of hierarchy. In 2023, 210
employees took part in the programme
as mentors and 260 employees took
part in the programme as mentees and
became each other's companions.
Furthermore, we provide mentoring sup-
port not only to Turkcell Group employ-
ees, but also to Turkcell employees in the
entire ecosystem, especially in projects
that will support university students, those
who want to work in the field of STEM or
young people in a diverse way, and we
are increasing this number day by day.
In 2023,
the programme as mentors and
210 employees took part in
260 employees took part
in the programme as mentees
and became each other's
companions.
Academy Trainer Development
Programme
We highly value the contribution of
skilled Turkcell employees, who have
deep expertise in various fields, to the
training processes.In this context, we
place great importance to the develop-
ment of our Academy trainers. In addition
to their current responsibilities within the
company, we offer the Academy Trainer
Development Programme to employees
who are volunteer trainers in order to
improve their trainer skills, and we share
development bulletins that we regularly
publish every month in order for them to
gain deep expertise in their fields.
Number of Turkcell Academy Trainers
2022
764
2023
607
Developers of the Future
Since 2013, we have been providing free
software, training, development and
earning opportunities through the Devel-
opers of the Future Programme. In order
to improve lives through technology and
contribute to the realisation of dreams of
all segments of society, we are eliminat-
ing inequality of opportunities, financial
impossibilities, insufficient resources and
lack of role models, and we are striving
for Türkiye to become a leading country
in software development. With the Turk-
cell Developers of the Future Platform,
we are working to strengthen Türkiye in
the field of technological awareness by
offering many integrated training and
development solutions that add value
to society, such as Gameventure, Con-
ditions are Equal, Chances are Equal, In-
vesting in Youth Software for the Future,
Superwomen of Cyber Security, and Em-
ployment Mobilisation.
More than 280,000 people received
certificates through the Developers of
the Future Platform. Our platform has
been visited more than 10 million times
in 10 years. The platform includes more
than 100 asynchronous training con-
tents such as data science, cyber se-
curity, mobile programming, web pro-
gramming, K12, robotic coding, basic
networking, database programming.
These training contents are used for
the benefit of the participants before
our bootcamp programmes. To date,
there have been 500,000 registrations
for the training and more than 280,000
certificates have been awarded to our
participants. Forums and blogs are also
available on our platform. In the forum,
users can find answers to their ques-
tions about the training from expert
trainers, but they can also exchange
information with each other. The blogs
on the platform are written content cre-
ated by people specialised in the field
of software to inform the community
about current software developments
and share their experiences.
More than
280,000
people received certificates
through the Developers of
the Future Platform.
Developers of the Future -
Investment for Youth, Software
for the Future
In order to increase the diversity of Tür-
kiye's technological skills and skilled
software developer workforce, we
launched the Investing in Youth, Soft-
ware for the Future programme in col-
laboration with the Ministry of National
Education. The aim of this programme is
to prepare young people for the world
of software, to ensure that they have
a high level of coding skills and to pro-
vide them with career opportunities in
this field. In this context, the programme
has been held 3 times. We have suc-
cessfully run this programme, which
includes training on various software
languages such as Java, .Net, Swift, Kot-
lin, Front-end, for three terms. A total of
2,400 hours of training and 7,000 hours
of one-on-one mentoring support were
provided. In addition, 45 peer-to-peer
sessions have been held. To date, 150
participants of our programme have
been employed in Turkcell Group com-
panies, while 300 participants have
found job opportunities in various com-
panies within the software ecosystem.
210 students have successfully graduat-
ed from the "Investing in Youth Software
2.0 for the Future" programme. In ad-
dition, applications for our fourth term
have been completed.
Superwomen of Cyber Security
Programme
The Superwomen of Cyber Security
programme was launched to increase
employment in cyber security, ensure a
greater presence of women in the sec-
tor and raise awareness of the issue.
Candidates for the programme, which
was open to all women interested in
cyber security from many parts of our
country, regardless of age, completed
the 22-hour asynchronous training on
the Developers of the Future platform
and were eligible to participate in the
programme after passing the gener-
al skills and technical tests. A 120-hour
experiential bootcamp programme
was conducted with 100 selected par-
ticipants. In addition, at the end of the
programme, a cyber security hand-
book was created with the guidance
of 13 female mentors from our cyber
security team, with each participant
positioned as an author. The book cov-
ered wireless network security, social
media security, safe internet, password
attacks, device security, email securi-
ty and hardware security, topics that
touch the lives of individuals.
Cloud Technologies Bootcamp
Programme
The Cloud Technologies Bootcamp Pro-
gramme was launched to train human
resources in the field of cloud tech-
nologies and to meet the employment
needs of both our company and the
ecosystem in this field. Participants se-
lected among thousands of applicants
completed an intensive 96-hour appli-
cation-oriented training programme. At
the end of the programme, which fo-
cused on CCNA, Linux and VmWare, 12
successful participants were employed
to work in Turkcell Cloud teams.
Earthquake Region
Employment Mobilisation
Following the earthquake disaster in
our country in 2023, Turkcell has been
working to support the development
and employment of young people in
the affected region. In this context, we
have launched various development
programmes in 11 provinces.
As part of the employment mobilisa-
tion, we offered personalised pro-
grammes to people impacted by the
earthquake who applied for employ-
ment in the fields they wanted to learn.
More than 7,000 people benefited from
these training programmes. In addition
to personal development training, we
also provided technical training to our
earthquake victims to prepare them
for the jobs of the future. These digital
trainings include Kotlin, Java, Basic Li-
nux, Python.
In addition, 700 candidates who inter-
ested in technical advancement had
the opportunity to participate in the
mini bootcamp training. The success-
ful candidates among these candi-
dates started the synchronous training
process in three different areas. Java,
Kotlin and Cloud Technologies train-
ing programmes of 120 hours each. As
part of each programme, 490 hours of
one-to-one mentoring support and 15
different experience sharing sessions
were provided. Participants were sup-
ported throughout the programme
with intensive homework and projects.
29 participants from Java, 23 from Kotlin
and 30 from Cloud Technologies suc-
cessfully completed the programme
and received certificates. The success-
ful candidates have been employed by
Turkcell and its Group companies.
More than 7000 people were support-
ed with personal and technical devel-
opment trainings in the earthquake
region.
We
launched our annual software
testing skills training in Gaziantep to
support the professional development
and employment of young women in
the earthquake region. This project,
which we ran in partnership with the
Union of Chambers and Commodity
Exchanges of Türkiye (TOBB), delivered
a total of 66 hours of training, includ-
ing 50 hours face-to-face and 16 hours
online, to 60 participants selected from
317 applications, 140 hours of one-to-
one mentoring support and 8 hours of
experience sharing sessions. Partici-
A total of
participants completed
105
120hours of the
bootcamp programme in Java,
Kotlin and Cloud Technologies.
pants were supported throughout the
programme with intensive assignments
and projects. Candidates who suc-
cessfully complete the programme are
employed on a part-time basis at Turk-
cell and its Group companies.
In Hatay, we implemented the Game
Development Programme in coopera-
tion with TÜBİSAD (Turkish Informatics
Industrialists' Association) to support
the development of middle and high
school students identified by TÜBİSAD
and Hatay Directorate of National Ed-
ucation. A total of 52 students received
112 hours of game development training
in the C++ software language, 2D for
middle school students and 3D for high
school students, and participants were
supported throughout the programme
with intensive homework and projects.
Gönül Bağı Sales and
Marketing Development
Programme
The Sales and Marketing Development
Programme was designed specifically
for our earthquake-affected citizens in
the disaster area to improve their skills
in sales, communications, e-commerce
and office productivity applications,
giving them an edge in starting a busi-
ness or finding a job in the region.
During the five-month development
programme, young participants from
the Nurdağı district of Gaziantep prov-
ince were trained as sales and market-
ing professionals, while women entre-
preneurs at the Women Entrepreneurs
Support Centre (KAGİDEM) had the op-
portunity to gain the sales skills needed
to sell their products to more customers.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES We develop together with our ecosystem
Distributor Development
Programme
For the development of Turkcell's stra-
tegic business partners, we conduct
training and development programmes
focused on leadership, functional ex-
pertise, technology and people, with
the participation of many different
teams such as sales, human resources,
finance, marketing, technology, law, and
customer services. In the development
programmes we conduct with our stra-
tegic business partners, we aim to use
the data produced more effectively, in-
crease the financial analysis skills of em-
ployees and achieve positive outputs in
customer satisfaction. Approximately
1,000 employees from our ecosystem
participated in our development pro-
grammes in 2023.
Approximately
1,000
employees from our
ecosystem participated in our
development programmes in
2023.
Digital Transformation
Consultant Programme
We aim to provide our Corporate Sales
and Digital Business Services teams
with consulting skills as part of the
development programme we have
launched to become the company of
choice for our corporate customers'
digital transformation journey with our
infrastructures and applications.
The programme was designed with a
focus on 8 competencies identified as
core consulting competencies by the
world's leading consulting firms. Ac-
tive participation in the learning jour-
ney was ensured at every stage of the
programme through various learning
methods. These
included visioning
seminars with global technology com-
panies and research firms, applied pro-
ject studies and industry case studies.
The Digital Transformation Consultan-
cy Programme is a living programme
that is updated every year in line with
business strategies and technological
developments. The first phase of the
programme will be completed in 2022
and the second phase in 2023.
Safe and Healthy Work
Environment
As Turkcell, protecting the health and
well-being of our employees is our
primary responsibility. In the field of
health, we organise health seminars
on many topics throughout the year
and raise awareness among our em-
ployees. In 2023, we organised 23 sem-
inars in this field. During Breast Health
and Awareness Month, 30 employees
were screened, 336 eye exams were
performed in September and 33 em-
ployees donated blood to the Red
Crescent. Psychological, nutritional,
educational and laboratory services
are also available to employees and
their families. For nursing mothers, we
have 8 lactation rooms and ready-to-
use equipment in our facilities.
In addition to this, we provide our em-
ployees with the opportunity to receive
consultancy services from experts for
the care of their pets and plants they
grow.
In accordance with the Occupation-
al Health and Safety Act No. 6331 and
the ILO-OSH (ILO Occupational Safety
and Health) 2001 standard, our prin-
ciples and practices are set out in our
Occupational Health and Safety Policy.
We also work in accordance with the
ISO 45001 Occupational Health and
Safety Management System we have
obtained in this area.
In all supplier contracts, legal compli-
ance is expected first and then compli-
ance with the OHS improvement issues
that Turkcell has adopted for its own
workplaces, and the Occupational
Health and Safety Policy is published
on the company's website.
In accordance with Law No. 5188 on
Private Security Services and the Reg-
ulation, we ensure the physical security
standards of our buildings and facili-
ties. In addition to professional training,
all our security personnel are informed
about the dynamics of Turkcell by
their own companies before they start
working at Turkcell.
We are very sensitive to occupational
health and safety at Turkcell. In 2023, 67
OHS Board meetings were held across
the company and 4859 OHS inspec-
tions were carried out in network oper-
ations field works. At base station sites,
equipment and facilities were reviewed
in terms of OHS. In 2023 18 emergency
drills were conducted at our sites and
actions were taken to address negative
findings in light of the reports prepared.
In the contracts we have with our sup-
pliers, the definitions of "contractor"
and "subcontractor" are considered to
be turnkey contracts for the purposes
of the legislation, and an OHS chart
is not followed for these suppliers for
whom we are not jointly liable. How-
ever, figures for "third party" companies
providing cleaning and security ser-
vices that we have used in the same
workplace are included. For 2023, the
accident severity rate of these compa-
nies was also calculated and included
in the report.
In 2023, there were no work-related
occupational diseases and fatal ac-
cidents at Turkcell and Turkcell Group
companies. Although the document
containing their records is ready, a nu-
merical figure cannot be given for this
reason. Deaths due to natural causes
other than work-related accidents are
not recorded as there is no legal obli-
gation to do so.
We communicate with all our employ-
ees on OHS topics through our Turkcell
T.Life mobile application. We expect
the companies we work with to comply
with the Turkcell Occupational Health
and Safety Policy and ensure that
they take action within this framework
through our employment contracts. We
analyse all work-related accidents
and OHS data through our OHS ex-
perts, present the statistical studies we
compile based on the accident reports
we prepare to senior management on
a monthly basis, and set our OHS tar-
gets along with our future action plan.
Accident Frequency Rate
Number of Occupational
Accidents
Lost Day Ratio
1.2
1.68
2022
1.14
1.29
2023
1.18
1.43
8
7
2022
7
10
2023
15
0
2022
1.46
0.67
17
0.48
0.34
0.26
2023
Workdays Lost Due
Occupational Accidents
Number of Health Examinations
for Recruitment
Number of Periodic
Health Examinations
0
2
2022
9
2
2023
9
4
402
260
2022
452
386
2023
854
480
2022
600
1,080
646
201
564
363
2023
Number of third- party work
accidents
2022
2023
Female Male
Female Male
0
1
2
3
Third- party accident frequency rate 0
12.5
16.9
3.18
Number of working days lost as a
result of third- party occupational
accidents
Third-party accident severity rate
0
0
0
3
5
17.4
24.29
5.31
* The Accident Frequency
Rate, which we use in reporting,
expresses the number of occupational
accidents occurring in 1 million working
hours in a certain period of time. It
is calculated as follows: Accident
Frequency Rate = [(Total Number of
Accidents in a Year / Total Working
Hours) * 1,000,000]
Accident Severity Rate refers to the
number of days lost due to work
accidents occurring in 1 million working
hours in a certain period. It is calculated
as follows;
Accident Severity Rate = [(Total Lost
Working Days in a Year / Total Working
Time) * 1,000,000]
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Manufactured Capital
Outputs
12,037
base station sites for
which risk assessment was
performed
12%
network traffic (internet)
increase rate
73%
network virtualisation rate
10
Fiber internet speed up to
10 Gbps
Up to1.6 Gbps
4.5G speeds
99.910%
Data Accessibility Rate
11,152
tower portfolio
Performance Indicator
Short
Term
Target
Medium
Term
Target
Long
Term
Target
2022
Performance
2023
Performance
Current
Status
towards
the
Target
Increasing the number
of base station sites
with risk assessment
Increasing the number
of processes improved
as a result of risk
assessments carried
out at base station
sites
10,800 14,800
28,000 11,341
12,037
14,000 16,000
23,200 13,208
13,306
Positive Development
Negative Development
Continues
We recognise the
importance of a reliable,
fast and ubiquitous
network system for an
efficient and reliable
customer experience. In
this regard, we continue to
improve our infrastructure
on a daily basis through
investments, R&D studies,
and technological
solutions.
Today, the rapid development of tech-
nology requires companies to actively
follow new informatics and technolog-
ical innovations. As Turkcell, we contrib-
ute to the development of our country
in the digital world with our efforts to
implement the most technologically
advanced
in
our sector and to develop local tech-
nologies. We are also increasing our
revenues by improving the quality of our
services.
infrastructure solutions
In 2023, our fiber infrastructure will pro-
vide access to 386,000 homepasses. We
are increasing the number of fiber-con-
nected base stations and strengthening
our mobile network with our expanding
fiber infrastructure, which has made a
significant contribution to our country's
infrastructure.
In line with the exponential growth in
digital demand, we are increasing our
efficiency by developing various tech-
nology applications in line with current
needs.In addition to our investments in
this area, in order to manage our sub-
scribers' network traffic, which is in-
creasing year-on-year. In this way, we
ensure high efficiency without compro-
mising the quality of our service, even
during periods of heavy network usage.
Strong Infrastructure
Thanks to our manufactured capital, we continue to invest in our infrastruc-
ture with the aim of adding value to our customers' digital journeys, and to
offer one of the fastest 4.5G services in the world by establishing a strong ac-
cess network with our rich frequency resources.
As Türkiye's largest data centre operator, we conduct our operations with the
goal of "keeping Türkiye's data in Türkiye" and support the creation of added
value for the national economy by prioritising domestic production equip-
ment in the procurement of our network equipment.
We are focusing more on our fiber infrastructure investments in order to deliv-
er fast internet and high service quality to more households. Simultaneously,
we comply with applicable regulations and ensure our service quality with
the awareness of corporate citizenship.
Strong infrastructure and superior service quality
With 30 years of telecom experience in telecommunications, we ensure the
reliability and speed of the services we provide for our customers with our
superior digital competencies and strong financial management.
Having a strong infrastructure and providing superior service quality are of
critical importance for Turkcell and its stakeholders. To this end, we close-
ly follow the latest technological developments and develop world-class
applications in our country. In this context, in addition to our contribution to
domestic technological developments, we also take part in global projects
and take our brand beyond the borders of our country.
As Türkiye's largest data centre operator, we are proud to offer our world-
class data centres, which are managed with the understanding of contrib-
uting to domestic technology, using the most modern technologies, to the
service of Türkiye as well as the countries in the region.
We manage our base stations, which are the end point of our network in-
frastructure at the stage of providing services to customers, based on com-
pliance values that exceed national and global standards within the frame-
work of the importance we attach to the environment and public health.
Network Traffic (Internet) Increase (Rate in bandwidth) 16
2019
38%
2020
76%
2021
8%
16Total data volume: mobile and fixed
2022
27%
2023
12%
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Mobile Network Infrastructure
Our mobile network infrastructure con-
sists of base stations and technological
equipment designed in an intelligent
and flexible architecture for coverage
and capacity management. Thanks to
the coverage and capacity solutions
we provide with our base stations,
which form the basis of our telecoms
business, we are constantly making im-
provements to increase the accessibili-
ty and durability of our services.
Base Stations
We manage our base stations equipped
with the latest technologies within a
framework compliant with national
international stand-
regulations and
ards, prioritizing the protection of pub-
lic health and the prevention of visual
pollution..
The base stations in our network are
equipped with the most advanced fea-
tures to showcase the capabilities of the
technology we offer. In addition, thanks
to the increasingly compact size of our
base stations, which can offer mul-
ti-technology support (singleRAN), we
manage their environmental impact in
an optimum way by being eco-friendly
manner with lower energy consumption.
We conduct risk assessments to ensure
the safety of our base stations and field
teams. We aim to minimise risk factors by
implementing improvements based on
the results of the risk assessments.
During the field work required for base
station installation, occupational health
and safety risks may arise from activi-
ties such as working at height, electrical
work, excavation and the use of vehi-
cles. We have prepared working prin-
ciples and action plans to prevent these
risks. By the end of 2023, 4,859 sites will
have been inspected, risk analysis forms
will have been prepared for 696 sites,
and 98 sites will have been revised and
repaired for healthier work.
In addition, with the "Network Tech-
nologies Geographical Risk Analysis
Reports" we have prepared, we aim to
ensure that base station sites are effi-
cient, healthy, safe and environmentally
friendly, considering the harmony of the
human-environment-telecommunica-
tions triad throughout our country, and
to facilitate the planning of working
hours.
Towers
Telco Cloud
Base Stations and Public Health
To ensure that our base stations do not adversely affect public health, we
keep them below the electromagnetic field intensity levels set by the reg-
ulatory body, the Information and Communication Technologies Authority
(ICTA). The values set by the ICTA are based on the limits set by the Interna-
tional Committee on Non-Ionising Radiation Protection (ICNIRP) and accept-
ed by the World Health Organisation (WHO), and are considered lower and
safer, taking into account the precautionary principle. In addition, research
on the subject has shown that radio signals below the ICNIRP limits are not
harmful to human health. The values set by the regulation for Türkiye are 70%
of the limits set by ICNIRP and 20% per device. It is known that the maximum
limits at which a base station can operate in Türkiye are much lower (around
20%) than the limits set for reference countries in the European Union, in line
with higher sensitivity.
Since we are subject to the ICTA and the regulations issued by the ICTA re-
garding the installation and inspection of base stations, the power values,
antennas used, installation location and surroundings are reported in de-
tail to the ICTA for the base stations to be installed, and base stations are
installed in the areas if approval is obtained. EMR (electromagnetic field)
measurements are carried out by independent institutions accredited by
ICTA within one week after the site is put into operation and the results are
reported to ICTA. In addition to this process, ICTA also carries out inspections
and measurements at the sites. Two of ICTA's most important public health
criteria are that there are no residential areas within the "safety distance"
calculated according to the output power of the site, and that the sites are
configured so that the specified limits are not exceeded. If non-compliance
with the relevant criteria of the ICTA is detected, the sites will be shut down
and severe sanctions or penalties will be imposed, including dismantling if
necessary.
As Turkcell, we are concerned about the impact of our network manage-
ment operations on public health and work with a sensitivity that exceeds
the criteria set by the relevant legal authorities. In 2023, there were no cas-
es where legal penalties were imposed regarding the health impact of our
products and services.
Global Tower, Türkiye's leading tower
company and one of our subsidiaries,
operates in four countries. Providing
tower leasing, tower build-sell, tower
maintenance and contract manage-
ment services to telecom operators,
broadcasters, internet service provid-
ers, energy companies and public in-
stitutions, Global Tower has started to
offer satellite services solutions to its
customers as part of its end-to-end
service approach. Global Tower pro-
vides closed-circuit satellite services to
over 2,000 points through its own ge-
ographically redundant infrastructure,
and aims to expand its product range
and service diversity by following the
trends in the satellite industry.
As of the end of the 4th quarter of 2023,
Global Tower has a tower portfolio of
11,152 towers portfolio distribution is as
follows;
䩉Türkiye: 9,163 (owned: 4,737, right to
use: 2,189, contract management:
2,237)
䩉Ukraine: 1,038 (owned)
䩉Belarus 836 (right of use)
䩉TRNC: 115 (right of use)
To date, through our efforts, we have
expanded 73% of our mobile and fixed
core network functions to our Telco
Cloud infrastructure. Thanks to the virtu-
alisation transformation, we are achiev-
ing efficiency in our investments and
operations with a common cloud infra-
structure for network applications. This
allows us to more easily take advantage
of the opportunities offered by emerg-
Network Virtualisation Rate (%)
ing cloud technologies for our network.
In addition to our VM (Virtual Machine)
based Telko Cloud infrastructure, we
have taken the first step of the Contain-
er Platform infrastructure and continued
to expand this infrastructure with new
applications in 2023. With this infrastruc-
ture, we have been able to more easily
and flexibly integrate next-generation
network functions i"nto our network and
initiate the Telko Cloud transformation
compatible with 5G technology.
2018
18%
2019
41%
2020
51%
2021
60%
2022
65%
2023
73%
2024 Target
78%
Connected Vehicles and Mobility Solutions
As vehicles such as cars and trucks have become connected in recent
years, we have received requests from our corporate customers to connect
in this direction. Accordingly, we are completing our integrations so that the
SIM profiles of connected vehicles can work integrated with our network
in accordance with the new regulations in Türkiye. As a result, we are well
positioned to provide services such as telemetry data required by vehicle
manufacturers, in-vehicle information, entertainment and HD voice services
desired by end-users, and B-Call and C-Call, which enable special customer
services to be called from vehicles.
In this context, the production and remote download of multiple eUICC pro-
files was successfully implemented for the first time in Türkiye in 2023. Technol-
ogies such as autonomous driving via 5G are also being tested with various
vehicle manufacturers. As part of the Togg launch, the camera data received
from the vehicle was for the first time subjected to image analysis on Turkcell's
servers, and the user's emotions and situation were assessed.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES with the investments we
made in 2023,
we expanded our
fiber infrastructure
to reach
386
thousand more homes.
In 2023, the number of
customers using our 100
Mbps and above fiber plans
increased by
52%
year-on-year.
Strong Fiber Infrastructure
We continue our efforts to facilitate ac-
cess to the Internet, which has become
one of our most basic needs, by provid-
ing our customers with fast, high quali-
ty and comprehensive services. Today,
Turkcell's fiber backbone is available
in 81 provinces of Türkiye. However, our
goal is to launch a fiber mobilisation
and deliver true fiber internet at the
speed of light to homes across Türkiye.
In this context, with the investments we
made in 2023, we expanded our fiber
infrastructure to reach 386 thousand
more homes.
With these investments, we continue
to expand our coverage day by day,
bringing our fiber internet service to
5.8 million homes. Aware of the need
for internet and access to information,
which has increased significantly dur-
ing the pandemic period, we are con-
tinuing to invest at a fast pace, aware
of our responsibilities. We are devel-
oping our fiber internet infrastructure,
higher speed internet tariffs and new
technological solutions. As Turkcell,
we can provide fiber data access to
homes at speeds of up to 10 Gbps using
the globally recognised G-PON/XGS-
PON technology. This value, which is
an upper limit, may vary depending on
variables such as the type of tariff, the
intensity of fiber internet usage or the
maximum speed that the modem used
can support. According to Speedtest
Median Country Speeds November
2023 data, the average fixed internet
speed in Türkiye is 38.54 Mbps. We are
connecting our customers faster to the
internet with our strong and expanding
fiber infrastructure. In 2023, the number
of customers using our 100 Mbps and
above fiber plans increased by 52%
year-on-year.
We were the first operator to launch
an SD-WAN service for our business
customers. We delivered security and
access as a single service. We created
solutions to reduce rising costs and in-
crease production capacity.
To meet the changing needs of our
corporate and wholesale customers,
we are deploying services such as
Enterprise Wi-Fi as part of managed
services. We continue to offer our cus-
tomers the latest technologies such as
Wi-Fi service, SMS integration, logging,
Wi-Fi 6.
While expanding our fiber optic in-
frastructure, we are able to offer high
quality internet over the mobile net-
work thanks to the Superbox product,
which we developed to provide fib-
er optic internet access with Turkcell
quality in places where fiber optic has
not yet reached. We serve more than
700,000 users with our Superbox prod-
uct, which allows our customers to in-
stall it on the same day.
Service Operations Centre
(SOC)
Turkcell's Service Operations Centre
(SOC) operates 24/7 to conduct analysis
and operation activities that will main-
tain infrastructure and service continu-
ity at the highest level.. We believe it is
crucial to identify potential network and
service failures before they occur and
to provide permanent solutions through
preventive measures in order to keep
the quality of service offered to custom-
ers at the highest level.
While the need for immediate interven-
tion and error-free operation to ensure
service continuity increases every day,
our rapidly growing and complex net-
work and the number of devices and
services under management require
more human resources. The Zero touch
transformation, enabling complete and
end-to-end automation of network and
service management, has become a
critical requirement for rapid service de-
livery and ensuring the economic sus-
tainability of the wide range of services
offered by digital service providers.
As a result of the digitisation efforts ini-
tiated in past years, we have ensured
that the service monitoring and fault
reporting activities performed for the
access network have been largely au-
tomated. We continued our zero touch
transformation activities, which we con-
sider to be one of the main focuses of
network technologies, with increasing
momentum in 2023. We held hacka-
thons to expand the use of automation
technologies
in network operations
and contributed to developing the digi-
talisation skills of more than 100 network
engineers through internal training. We
aimed to increase service continuity
and efficiency by introducing mobile
application solutions to our network,
which will enable many operational
activities to be carried out much faster
and more accurately. In addition to the
benefits they provide, these solutions
also play an important role in spreading
the culture of digitalisation.
In addition, by participating in inter-
national platforms, we are taking firm
steps towards our goal of shaping the
global standards to be established and
becoming one of the first operators to
achieve 'zero touch' transformation on a
network basis. In line with our goal, we
are meeting with many global technol-
ogy companies that are solution pro-
viders in this field and exchanging ideas
to determine the path to be taken and
the methods to be applied. As a result,
we have initiated our infrastructure De-
vOPS transformation activities.
Investment in Domestic
Equipment
In line with our mission to create val-
ue for our country, we are supporting
Türkiye's technological development
and digitalisation process with our ef-
forts to develop domestic technology
and equipment. We continue to make
a difference in the market by applying
innovative technologies that have not
been used in Türkiye before and that
bring efficiency to our infrastructure.
With our localisation approach, we
continue to carry out development
projects in cooperation and support
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.
We share the knowledge we have
gained by playing an active role in in-
ternational platforms with domestic
and national product development
companies in our country's technology
ecosystem, combining them with our
experience. Through this approach, we
guide and support our companies in
developing competitive products that
meet expectations at the right time.
We actively participate and lead lo-
calisation efforts in areas such as 5G
base stations, core network, radio link,
management system software, virtu-
alisation platforms, base station an-
tennas, energy products, cyber secu-
rity software, base station antennas,
energy products and cyber security
software through many projects and
collaborations, especially R&D projects
supported by the Ministry of Industry
and Technology, the Ministry of Trans-
port and Infrastructure, the Information
and Communication Technologies Au-
thority (ICTA) and TÜBİTAK. In addition,
we continue to work side-by-side with
our domestic manufacturers by sign-
ing cooperation agreements with the
companies participating in the R&D
Support Programme opened by the
Presidency of Transport, Maritime Af-
fairs and Communications Research
in April 2023 and
Centre (UDHAM)
launched on November 21, 2023 to de-
velop products for 5G infrastructure.
We are currently conducting 5G Do-
mestic Data, 5G Domestic Voice, MANO
and EMS projects under the 5G Core
Domestic Products Programme, pro-
viding know-how and laboratory/test-
ing support to domestic manufacturers
in their development processes. We
continue to increase our investment in
high-capacity domestic servers in our
Telco Cloud infrastructure.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Refarming
With the increasing 4.5G data traffic, there has arisen a need to en-
hance the spectrum resource to be used in 4.5G technology. In line with
our strong spectrum strategy, we plan and implement refarming efforts
between technologies. By the end of 2023, we provided 40% of our 4.5G
capacity installed in the network from the 2100 MHz band, which was pre-
viously used in 3G. In this way, we achieved additional network capacity
to meet the increasing data usage needs as well as improving customer
experience.
High-speed, high-quality, inclusive services and
access to information and the Internet for all
We continue to invest in and improve our network and infrastructure in line
with our aim to provide faster, more inclusive and higher quality services to
our customers.
We maintain our high network
accessibility with our
data availability
rate of 99.910%
calculated on the basis of
traffic loss in our mobile network
and our low interruption
rate of 0.304%
in mobile voice calls.
In 2019, 2020, and 2021, we reduced our carbon emissions by generating
125 MWh of electricity with 507 solar fields with solar panels, which we
added in 2022 to the 15 portable solar fields we established within the
scope of our Portable Solar Field project. By the end of 2023, we increased
the number of solar fields with solar panels to 1,400. With these panels, we
increased our contribution to reducing carbon emissions by generating
2.23 GWh of electricity.
Powerful Spectrum
Turkcell owns the widest spectrum li-
cence for mobile services in Türkiye.
Thanks to this spectrum, which is 34%
and 68% more than competing oper-
ators, our customers enjoy the advan-
tage of high-quality services. The rapid
development and transformation of
the technologies used in the telecom-
munications sector, the high cost of in-
frastructure investments and the need
to maximise the use of long lifetimes
make it imperative that we formulate
our spectrum strategy in a way that
can adapt to technological develop-
ments and is technology agnostic.
Thanks to our broad-spectrum pres-
ence, we aim to maintain the quality of
service we have proven with our maxi-
mum speed of 1.6 Gbps17 for 4.5G tech-
nology, which is currently widely used
in our country, in 5G technology, which
is expected to be implemented in the
coming period.
With the approval of the Ministry of
Transportation and Infrastructure, we
started commercial 5G broadcasting
at Istanbul Airport from July 2022 as
part of our 5G activities. We led the in-
stallation of this network, where three
mobile operators provide services
over a shared 5G infrastructure. In or-
der to experience high-speed internet
with 5G service at Istanbul Airport, it is
necessary to have a 5G-ready mobile
phone with 5G functionality enabled, a
4.5G-compatible SIM card, and to initi-
ate a 5G subscription by requesting to
use 5G via SMS. Turkcell customers will
not pay any additional fee to experi-
ence the 5G service. Our guests com-
ing from abroad can also enjoy the 5G
service at İstanbul Airport. All their op-
erators need to do is sign a 5G roaming
agreement with Turkcell.
17 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.
In addition to İstanbul Airport, Turkcell’s
subscribers have the privilege of expe-
riencing 5G technology in more than
40 countries thanks to our internation-
al roaming agreements. To experience
5G abroad, it is necessary to be a 5G
subscriber. Turkcell customers will not
pay any additional fee to experience
5G services and will continue to be
charged in the same way as part of
their roaming packages and tariffs.
Within the framework of R&D activi-
ties, in addition to the national projects
supported by TÜBİTAK, we have also
carried out various projects in the in-
ternational arena, and we have add-
ed 8 more projects to our R&D projects
in the Horizon Europe and SNS (Smart
Network and Services) programmes
funded by the European Union, bring-
ing the total number of ongoing active
projects to 12. In these projects, we fo-
cused on 6G-oriented projects and
applications during 2023, and we act-
ed with the vision of being the designer
and implementer of these trends that
will transform our own sector as well as
vertical sectors in the near future, and
we carried out our R&D studies in which
we aim to develop innovative solutions
on the national/international platform.
As Turkcell, we continue to develop our
local and foreign cooperation ecosys-
tem, which we have established with
R&D centres, universities, technology
suppliers, as well as various vertical sec-
tor players that play a leading role on a
global scale. In addition, in 2023, when
international publication and intellec-
tual property acquisition goals that will
positively accelerate our country's R&D
capabilities in the field of communica-
tions were pursued in a more focused
manner, Turkcell's 6GEN-LAB project,
which was eligible for funding under
TÜBİTAK 1515 (Pre-Specified R&D Labo-
ratory Support Programme), began to
deliver results in the light of innovative
R&D activities.
Turkcell’s subscribers
have the privilege
of experiencing 5G
technology in more than
40 countries.
Data Centres
With our approach of keeping Türkiye's
data in Türkiye, we maintain our lead-
ing position in data centre operations.
We have 36.5 thousand square metres
of white space in 8 data centres, 4 of
which are new generation. As a pio-
neer of digital transformation in Türki-
ye, we provide data storage and cloud
services to more than 3,000 corporate
customers, offering them cost benefits
and helping them increase their oper-
ational efficiency. We ensure business
continuity by providing 24/7 uninter-
rupted service, and in unusual situa-
tions, we provide remote support from
Turkcell engineers who are experts in
their fields and solve problems within
seconds. In 2023, we launched another
module in both our Kocaeli-Gebze and
Ankara-Temelli data centres. In 2023,
we started the construction of new
in our Ankara-Temelli and
modules
Tekirdağ Europe data centres. In 2024,
we aim to further strengthen our lead-
ership in this field by commissioning
two more modules with our ongoing
data centre investments.
Our next-generation data centres in
Ankara-Temelli, Kocaeli-Gebze,
İzmir
and Tekirdağ-Kapaklı (Europe) were
built to withstand the highest possible
level of earthquake and their system
rooms are constructed to fire-resistant
for up to 120 minutes.. In addition to the
rooftop solar application completed
at our Ankara and Tekirdağ data cen-
tres, we commissioned our solar power
plant (SPP) with a generation capacity
of approximately 770 kWp on an area
We attach great
importance to cyber
security, which is one of
our top priorities in our
data centres, and offer
solutions with domestic
technologies.
of 7,000 m2 at our Ankara data centre
in 2023. With this investment, we aim
to generate approximately 1.6 GWh of
electricity annually for use in our data
centre.
With our LEED (Leadership in Energy
and Environmental Design) Gold-cer-
tified data centres, we aim to lead the
way not only in terms of technology,
but also in terms of our impact on the
environment.
Taking into account the importance
we attach to domestic production and
localisation in technology in the con-
struction of our data centres, we are
increasing our localisation rate in the
data centres we build.
We offer services at global stand-
in our data centres with
ards
many
international certificates:
ISO 27001, ISO 9001, ISO 20000,
ISO 50001, ISO 10002, ISO 22301,
PCI-DSS
We have Uptime
Institute Tier III
Operational
Sustainability Gold
certification in our
Gebze and Temelli data
centres.
Localisation Rate of Data Centers (%)
Gebze Data Centre
Izmir Data Centre
Ankara Data Centre
European Data
Centre
50%
50%
65%
75%
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Intellectual Capital
Outputs
25%
Digital OTT service revenue
and
19%
digital services total revenue
growth
992
R&D employees
550number of
patent applications
10incubator
company co-operation
8 number of city
hospitals for which we
provided technological
infrastructure
12.5
million customers using
chatbot
Performance
Indicator
Short
Term
Target
Medium Term
Target
Long Term
Target
2022
Performance
2023
Performance
Existing
Status
Towards the
Target
ISO 27001
Certification
Annual
target
Certification
renewal
Certification
renewal
ISO 27001
Certification
Renewed
ISO 27001
Certification
Renewed
Positive development
Negative direction
Continues
With a total of 992 R&D
employees, we transform
our corporate culture with
innovative solutions that
create value, and we adopt
the principle of integrating
these solutions by our
stakeholders.
Continuously Developing
Intellectual Capital
We believe that an innovative business
culture based on strong performance
in systems, processes and technology
is necessary for our strategic initiatives
and business model to achieve the
most efficient and effective results.
Our intellectual assets are based on
innovation, entrepreneurship, brand
strength,
products
responsibility,
and services that represent Turkcell's
unique expertise and knowledge. They
differentiate Turkcell and are one of
the key drivers of sustainable growth.
We combine new technological devel-
opments such as artificial intelligence,
Internet of Things (IoT) and blockchain
with our superior digital capabilities
and analytical skills to improve our
products and services. Thanks to our
services, which are developed and im-
proved by Turkcell's engineers, we cre-
ate solutions tailored to our customers'
needs and demands. With a strong
bond with customers, which is among
our core competences, and our ad-
vanced analytical capabilities, we de-
liver our products to the right customer
base with the right timing and pricing.
Thanks to our big data analytics appli-
cations, we are able to provide tailored
offers to 42.5 million customers.
Innovation and Entrepreneurship
As Turkcell, while maintaining our com-
mitment to the principles of sustaina-
bility, creativity and efficiency in our
research and development (R&D) activ-
ities, we continue on our path to devel-
op products and production processes
that take into account the economic,
environmental and social impacts that
may result from these activities, and we
aim to develop sustainable production
technologies. To this end, we are under-
taking activities to reduce our carbon
footprint in all our product and service
developments.
We continue to move forward by in-
creasing our competitiveness in all our
people-related activities and by play-
ing a more effective role in national/
international markets with our high val-
ue-added products and services. While
maintaining our image as a leading
company
in the telecommunications
sector, we also contribute to society and
the economy. We continue to operate
on the principle of creativity with our 992
R&D employees, who aim to integrate
an innovative approach into our corpo-
rate culture. We value the opinions and
suggestions of all our stakeholders, sup-
porting their initiatives and encouraging
them to put their ideas into practice.
Thanks to the value created by our
technological expansions, we produce
qualified solutions for both national
and global markets. With the added
strength of being the Turkcell of Türki-
ye, we are making expansions in many
sectors in line with our vision of being a
"service-oriented experience provider".
In this context, we carry out joint R&D
programmes and academic publi-
cations with universities,
incubation
collaborations with technopolis com-
panies, national and international spon-
sored projects, and technical publica-
tions, training and conference activities
that enable knowledge transfer.
We attach great importance to sharing
with the ecosystem the accumulation of
knowledge on innovative technology
products and their areas of applica-
tion that has been developed with the
culture of innovation within Turkcell Te-
knoloji A.Ş., our R&D company, in order
to support research and technological
development in our country. In this di-
rection, intensive mentoring and training
support is provided within the frame-
work of production and use of new
technologies, methodology and meth-
ods used in the production process, R&D
intellectual and
centre management,
industrial rights, university,
incubation
cooperation and R&D studies with na-
tional/international partners.
Number of R&D Employees
2019
956
2020
1,153
2021
1,216
2022
965
2023
992
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Number of Applications to TUBITAK
Supported Projects
Number of HORIZON Projects
Applications
2019
2020 2021
2022
2023
10
10
9
15
10
9
8
10
6
13
2019
2020 2021
2022
2023
Number of TUBITAK Supported University
Collaborations
Number of Collaborations with
Incubation Companies
4
9
5
10
5
11
7
7
8
10
TuTurkcell Technology collaborates
with universities and research institutes
on many of its R&D projects. Project
ideas and needs are evaluated and
joint project development goals are set
for those that are in line with strategic
focus areas. For example, in 2023, noise
cancellation studies were conducted
with Özyeğin University. In Turkcell's Suit
Conference product, a structure has
been designed that detects sounds
coming from behind and provides iso-
lation from the environment. As a result,
we expect the efficiency and custom-
er satisfaction of the Suit Conference
product to increase.
In parallel with our strategy to expand
our products and services in interna-
tional markets, we aim to develop our
new digital and ICT services on a glob-
al scale in line with the latest technol-
ogies and market requirements, and to
expand the regions in which we pro-
vide services.
The
information and communication
sector have a dynamic and competi-
tive structure that requires large invest-
ments in infrastructure and technology.
In Türkiye, this sector has had to finance
the R&D investments of foreign compa-
nies through foreign acquisitions over
the years.
Since its establishment, Turkcell Tech-
nology has provided import substitu-
tion for royalties of over TRY 2 billion.
Through strategic collaborations and
joint projects with our business part-
ners, we have ensured that much more
foreign currency than our own technol-
ogy production volume stays in Türkiye
and that Turkcell engineers produce
high value-added products.
In order to identify the areas where
we will make a difference in our new-
ly developed products and services,
we study the patents filed and regis-
tered by technology companies in the
field in which we work, and we gath-
er information about the competition
and trends while preparing our patent
applications, which we have become
champions in recent years. We contin-
ue to share our experience with univer-
sities, incubators, SMEs, business part-
ners and the entire ecosystem in our
patent application processes.
2019
2020 2021
2022
2023
Cumulative Number of National Patent
Registrations
521
699
813
966
1,019
Number of National Patent
Applications
511
557
565
325
550
Turkcell Technology, our R&D compa-
ny, is the leader in its sector in Türkiye
with 4,114 national and 247 internation-
al patent applications and 1,019 regis-
tered patents since its establishment in
2007. As Turkcell Technology, we have
filed 550 new national patent applica-
tions in 2023.
As part of our technological transfor-
mation goal, we are taking an active
role in the TÜSİAD Task Force on Tech-
nology Standards and Patents Based
on Standards to support the initiative
to create standard patents.
In order to enable our company and the
companies in our ecosystem to partic-
ipate in international projects, we are
on the board of ITEA4, which deals with
software technologies under the EU-
REKA umbrella, and Celtic Next, which
deals with new generation communi-
cation-telecom infrastructures. In the
projects we are involved in under the
EUREKA umbrella, the financial support
is evaluated by TÜBİTAK-TEYDEB (The
Scientific and Technological Research
Council of Türkiye's Technology and
Innovation Support Programmes Direc-
torate). For example, Turkcell is carrying
out international coordination and na-
tional project management activities in
the Integrated Health and Care Solu-
tions for Next Generations (iCare4N-
extG) project, which will start in 2021
and be completed in the first quarter of
2024 in the Eureka-Celtic Next cluster. In
addition to Türkiye, the project involves
17 stakeholders from Canada, Portugal,
Hungary, South Korea and Ukraine. As
part of the project, which aims to de-
velop a platform in the field of smart
health technologies, Turkcell Technol-
ogy is conducting artificial intelligence
studies for cardiological rehabilitation.
In recent years, we have increased the
number of our project applications
on platforms with more competitive
and selective project ideas, especial-
ly within the framework of the Hori-
zon Europe main programme and its
sub-programmes, which are directly
funded by the European Commission.
Within this programme, to which we
have submitted 13 applications in 2023,
we have the opportunity to work and
collaborate with very valuable com-
panies in the international arena.
Under the guidance of the Ministry
of Industry and Technology, we are
pursuing cooperation opportunities
between universities and incubation
companies in order to support incuba-
tion companies, expand the R&D eco-
system in Türkiye and improve domes-
tic products and services. We provide
technological support to incubation
companies and increase their visibility
and recognition by including the prod-
ucts developed within this framework
in the European Union projects in which
we are involved.
As an example of our work with incu-
bation companies, we conducted a
study on data mining in sales process-
es with a technopolis company that we
started in 2023. The aim of the study is
to increase customer satisfaction and
revenue by identifying customer and
sales trends in sales processes.
Our human capital is at the heart of
our R&D and innovation strategies. In
this context, we provide academic
development opportunities to Turkcell
in
Technology researchers
the processes. Since 2014, our efforts
to improve the technical infrastructure
of our employees in line with the qual-
ifications required in our sector have
continued unabated, with our PhD and
Masters support programmes increas-
ing in content.
involved
At the same time, in line with our vision
to be a leader in the production of
new technologies, we are contribut-
ing to the dissemination of technology
through the realisation of 40 academic
publications, 297 technical publications
and 205 national/international pres-
entations, product introductions, and
participation as speakers in national
and international platforms in 2023.
In our academic publication efforts, we
conduct studies for national and inter-
national peer-reviewed journals and
conferences, as well as activities for
technology accessibility and dissemi-
nation. As an example of our academic
publications, our paper presenting an
innovative approach was published in
the 'Journal of Software: Evolution and
Process'.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Paycell R&D Centre, a
Turkcell Group company,
is Türkiye's next-
generation technological
finance platform that
conducts innovation-
focused research and
development activities
on payment systems
and mobile payment
technologies.
In 2023,
we achieved a
19%
increase in total
Digital Services
revenues and a
25%
increase in digital
OTT service revenues.
Value Creating by Use of
Open Source Code
One of the most subject we pri-
oritize most as both users and
is
developers within Turkcell
open-source software.. In ad-
dition to creating value in terms
of
licence management and
cost advantage through the use
of open source code, we are
contributing to the future of the
software world by supporting
the development of high quality,
secure software without vendor
restrictions. As Turkcell, we have
carried out many open source
code transformation projects in
the last 5 years. We have shared
the experience gained from
these projects with the com-
munity, government agencies
and private companies through
presentations
articles
published on platforms such
as Open Source Code Confer-
ences, Open Source Software
Sector Workshops, Medium and
Future Writers.
and
In addition to using open source
software, we started contribut-
ing to open source code pro-
jects published on github, we
supported some
libraries as
developers.
Paycell R&D Centre
Paycell R&D Centre, a Turkcell Group
is Türkiye's next-genera-
company,
tion technological finance platform
that conducts innovation-focused re-
search and development activities on
payment systems and mobile payment
technologies.
As part of its vision to lead the sector in
the transition to a digital society with
distinctive customer experiences and
innovative payment solutions, Paycell
continues to create continuous value
for its customers and all stakehold-
ers with its payment solutions creat-
ed with a quality service approach.
Paycell, which has experienced rapid
growth in the Techfin world, crowned
its success by obtaining the R&D Cen-
tre certificate from the Ministry of In-
dustry and Technology in November
2022, in parallel with its investments in
technology and innovation.
Since November 2022, the Paycell R&D
Center has been continuing its work
with a total of 8 R&D center projects,
one of which is supported by the Euro-
pean Union (CELTIC-NEXT).. As part of
the R&D activities, a total of 5 national
patent applications, 2 of which will be
filed in 2023, and a total of 21 national
and international academic publica-
tions, 15 of which will be filed in 2023.
In addition, 2 employees with doctoral
degrees in computer engineering and
related disciplines teach undergradu-
ate and postgraduate courses at var-
ious universities. Since its inception,
Paycell has been a company that val-
ues R&D and technology, continuously
growing and investing. With more than
130 research engineers in its R&D cen-
tre, Paycell is working with the vision of
having a say in research, development
and innovation in the field of technol-
ogy in Türkiye and setting an example
for other companies in our country.
Innovative products and services de-
veloped through engineering studies
carried out by Paycell's technology
teams are categorised in the follow-
ing groups:
䩉Smart payment solutions
䩉Value-added services
䩉Artificial Intelligence and Big Data
analytics and solutions
In order to sustain Paycell's R&D and
innovation culture sustainable, we en-
gage in a number of activities. These
include studies such as the project
life cycle of the technological finance
area and the development of new
ideas, university-industry cooperation,
personnel training, support for post-
graduate studies, applications for na-
tional and international funds, nation-
al/international patent applications.
Digital Service Portfolio
Digital Services and Solutions
While our digital services and solutions
add value to the lives of our users, we
continue to develop our portfolio by
dynamically updating our products
according to user needs. All the servic-
es we produce require different tech-
nical infrastructure, skills and expertise.
All the services we produce require
diverse technical infrastructure, skills,
and expertise. We are part of every-
day life not only with the communica-
tion services we offer but also with the
digital services we create and devel-
op.. Based on this strategy, we have
developed many domestic digital ser-
vices to date with over 1,000 engineers.
we have taken important steps for our
competitive position in the world by
transforming these digital services into
new major companies.
Each of our brands, BiP, lifebox, TV+
and fizy, which aim to stand out in the
global competition, is positioned as a
separate company and thanks to this
structuring, the brands continue their
activities faster, stronger and more
focused in their own organisational
structures.
We continue to be at the forefront of the
digital transformation required by soci-
ety with numerous digital services such
as video conferencing, email services,
instant messaging, TV, cloud storage,
identity solutions, digital advertising,
gaming services and a music platform,
all developed by Turkish engineers and
software developers. We are using our
advanced analytics capabilities
to
make this digital transformation acces-
sible and increase customer satisfac-
tion by accurately positioning the most
appropriate products for our custom-
ers. With these solutions, we also aim to
make a significant contribution to the lo-
calisation rate in technology. While con-
tributing to the national economy with
self-sustaining
technology solutions,
we are also creating global brands and
technologies that will spread from our
country to the world through digital ex-
ports. Our top priority is to turn these ser-
vices, which create jobs in our country
in the field of technological innovation,
into global brands and to use this suc-
cess to create useful results worldwide.
Our primary goal is to make a positive
contribution to Türkiye's economy and
reputation by creating economic value
through the data security of individuals
and institutions in our country and our
own data.
Secure Communication Platform: BiP
BiP has approximately been download-
ed over 116 million times and used in 192
countries in the world. BiP aims to be
more than just a communication appli-
cation that provides solutions to all of
its users' communication needs with its
messaging, calling, and video calling
options. It offers experiences and con-
veniences to its users in all areas of life
through its services such as information,
entertainment, bill payment, shopping,
prize winning options offered under Dis-
cover, fun games, Digital Asset where
crypto can be exchanged, Emergency
Button that can be used in case of dis-
asters and many more. BiP offers servic-
es not only to Turkcell users, but also to
users of all operators in Türkiye. From the
beginning of 2021, Turkcell, Turk Telekom
and Vodafone İletişim Pass users will be
able to use BiP without using their data
packages.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES BiP continues to work with various pub-
lic institutions in Türkiye to increase the
number of users. In this context, BiP pro-
vides services to Anadolu University,
Istanbul Kültür University, the Open Ed-
ucation Faculty of Anadolu University
and Istanbul Galata University, where
students, staff and academics can re-
information and notifications
ceive
about their schools, and students can
access exam and grade information
and other personal content. There are
plans to expand the scope of the ser-
vice by establishing similar collabora-
tions with other universities.
Developed entirely by Turkcell engi-
neers, BiP is now the communication
choice of millions of users abroad. It
aims to offer its users a richer experi-
ence with superior service quality and
local content through cooperation with
operators in foreign markets. With its
advanced technological infrastructure,
it is also capable of integrating coun-
try-specific services and offering solu-
tions that allow communication data to
remain in-country.
Launched in December 2022 with Pa-
kistan's
leading operator Jazz, BiP
reached 1 million active users in the
country in a short period of 6 months.
The aim is to further increase the num-
ber of users and make a much greater
contribution to Pakistan's digitisation. In
this context, the Bangladesh coopera-
tion, launched in August 2023, aims to
achieve similar success in the Bangla-
deshi market. BiP aims to increase the
number of users with its vision of a com-
munication application that offers local
experiences in global markets with new
collaborations in foreign markets.
Used in
192
countries around
the world, BiP has
reached more than
116
million downloads.
Open Room for Life with lifebox!
Lifebox, which offers the ability to se-
curely store and share photos, videos
and documents in a digital environ-
ment, provides a personalised expe-
rience while offering a safe and easy
way to store happy memories. Lifebox
appeals to users not only in Türkiye but
also around the world.
Offering more than just storage, Life-
box features face and object recog-
nition, automatic creation of stories,
albums and collages from selected
photos, memories of the past and pres-
ent, and contact backup to ensure
contact information is not lost in the
event of an emergency. Documents
archived in different categories can
be securely accessed via fingerprint,
facial recognition or password, and
Office documents can also be opened
and edited online via Lifebox. In 2023,
Lifebox revamped its web and mobile
applications from start to finish, taking
the user experience to an even high-
er level. At the same time, it offered its
users the opportunity to experience
affordable storage with the annual
packages launched in 2023.
By offering experiences that make life
easier for our users, lifebox reached
more than 2.1 million paid subscribers
and more than 8.1 million total users
with its successful performance in 2023.
The corporate storage solution lifebox
Business was brought under the um-
brella of İşte Suit in 2023 and renamed
Suit Drive. Suit Drive provides the nec-
essary storage needs for businesses
of all sizes in a secure and stable way.
Its affordable package structure for
every need puts Suit Drive ahead of
its local and global competitors. Inter-
nal and external file sharing, access
from all mobile and desktop devices,
real-time collaboration with online of-
fice feature, file versioning, person and
file based reporting, personalised disc
and corporate shared space usage
are just some of the features that make
Suit Drive different as a cloud storage
solution for the business world.
Lifebox Transfer, on the other hand,
aims to meet the need for fast file shar-
ing with a simple experience that re-
quires no membership and is free, while
providing the service from Turkcell's
data centres.
You can access the
products, services and detailed infor-
mation we offer within the scope of
lifebox via www.mylifebox.com, and
www.lifeboxtransfer.com.
lifebox Paid Subscribers (thousand)
2020
910
2021
1,319
2022
1,838
2023
2,133
TV joy is everywhere
TV+, the first and only digital platform
in Türkiye in terms of television viewing
experience, is breaking the rules of the
television world. TV+, which has be-
come the "platform of platforms" in IPTV
broadcasting with its collaborations
with different digital broadcasting
platforms, continues to play an impor-
tant role in the process of digitalising
the user experience by enabling its
users to access the content they want
whenever and wherever they want.
In addition to its superior technical
features that provide ease of use, TV+
strengthens its archive in sports, se-
ries, films, children, documentaries and
many other titles, while increasing the
loyalty of its users. The UEFA Champi-
ons League, UEFA European Cup, La
Liga, Formula 1 and EuroLeauge excite-
ment, which sports fans follow with in-
terest, also met with TV+ users in 2023.
Number of TV+ Users (thousand)
2019
2020 2021
2022
2023
720
871
1,082
1,282
1,409
You can access the prod-
ucts, services and detailed information
we offer within the scope of TV+ on
www.tvplus.com.tr.
Türkiye's digital music platform: fizy
Digital gaming platform: GAME+
As of December 2023,
more than
6,000
companies are using
İşte Suit with more than
8,000
licences.
In 2023, fizy, one of Türkiye's most pop-
ular and most preferred domestic dig-
ital music platforms, continues to offer
a more personalised music experience
to its users with its investments in artifi-
cial intelligence and continues to meet
its users with its enriched content ar-
chive. In addition to having an ad-free
and uninterrupted music experience,
fizy Premium users can listen to their
songs in high sound quality and see
the lyrics, and access their content of-
fline without internet. In 2023, fizy also
started to bring podcast content to its
users. Bringing together the content of
leading podcast content distributors
such as podfresh, podcastbpt, podbee
with its users, fizy has rapidly increased
its unity among podcast listeners with
special episodes of the most popular
podcast series available only on fizy.
Number of fizy content (million)
2019
2020 2021
2022
2023
32.6
33.5
35.4
43.0
56.3
GAME+, the gaming brand of Lifecell Di-
jital Servisler A.Ş., started to offer cloud
in our country
gaming technology
through Türkiye servers in 2021 within the
scope of its cooperation with NVIDIA
GEFORCE NOW, the world's most pop-
ular and advanced technology cloud
gaming platform. The world's most ad-
vanced technology cloud gaming in-
frastructure, which enables advanced
computer games to be played without
downloading; eliminates the need for
powerful hardware required to play
games. Thanks to GAME+, playing the
latest games becomes as easy and
accessible as watching a film over the
internet. The necessities such as hav-
ing expensive hardware and enough
disc space to play games are eliminat-
ed. GeForce NOW powered by GAME,
which has been met with great interest
in our country, has the highest num-
ber of users in Türkiye after the United
States of America. GAME+ continues
to expand its library of games, rapidly
increasing the number of subscribers
and growing.
İşte Suit
Developed by Turkcell engineers, İşte
Suit is a solution that provides one-
stop service to users with e-mail, file
management, office applications and
video conferencing solutions that cor-
porate companies will need. In March
2023, we launched İşte Suit to provide
our Suit Mail, Suit Drive, Suit Confer-
ence and Suit Office services, which
currently serve our corporate custom-
ers separately, with a single portal and
management panel on istesuit.com. As
of December 2023, more than 6,000
companies are using İşte Suit with
more than 8,000 licences.
Secure and Uninterrupted Video
Conferencing Experience: Suit
Conference
The video conferencing service (for-
merly known as "BiP Meet"), which pro-
vides service from our data centres in
Türkiye with
infrastructure
its strong
and easy-to-use service, was renamed
as Suit Conference in 2023 under the
roof of İşte Suit.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES In the future, we aim to add value to our
customers' lives and save them time by
increasing the capabilities of Turkcell
Assistant with the opportunities offered
by our technology.
our Selfbot solution has started to pro-
vide 24/7 online support to the users of
a brand operating in the textile indus-
try with the integration to the official
website.
through
is continuous-
Our chatbot solution
ly developed
integrations
with our digital platforms such as BiP,
GAME+, lifebox, fizy, TV+ and Platinum,
and serves Turkcell Superonline users
through special scenarios.
In the near future, we plan to integrate
our chatbot system with
lan-
guage models and launch our produc-
tive artificial intelligence-based studies
for both Turkcell's internal dynamics and
general user needs.
large
Selfbot, another advanced self-service
implemented with
chatbot platform
Turkcell's engineering expertise, is not
limited to the municipality and educa-
tion sectors, but has also stepped into
the e-commerce sector. In this context,
Our chatbot is also supported by the
"UNDP Gender Responsive Communi-
cation Guidelines" and adopts a gen-
der-sensitive and inclusive language.
This is an indicator of our brand's com-
mitment to social values.
With Suit Conference video conferenc-
ing service, users can communicate
with anywhere in the world at any time.
With Suit Conference, meetings can
be held via web browsers as well as
desktop and Suit Conference mobile
applications.
In addition to its easy-to-use and sim-
ple design, Suit Conference offers a
solution suitable for the use of institu-
tions with its features such as provid-
ing service in data centres in Türkiye
and allowing institutions to purchase a
special domain name. Suit Conference,
which has been developed especially
for the needs of sectors such as ed-
ucation, public and health, can meet
the remote communication needs of all
small and large organisations.
Local E-Mail Service: YaaniMail
Launched in 2020 for individual use and
developed by Turkcell's R&D engineers,
the local email service YaaniMail will
offer the most reliable email service
to individuals and institutions from the
beginning of 2021. The platform, which
provides a free service to individual
subscribers with the @yaani.com ex-
tension, offers a strong domestic alter-
native to global competitors. YaaniMail
Corporate offers services via the cloud
or on-site installation, depending on
the preferences of the organisation.
Corporate customers of the platform,
which provides its users with advanced
security measures, can use their own
domain names. In 2023, the name of
the YaaniMail Corporate service was
changed to Suit Mail by merging under
the umbrella of İşte Suit.
The service, which can be used through
IOS, Android, Web and Corporate
Management Panel applications suit-
able for corporate or individual needs,
makes it easy to use features such as
Calendar, Contacts and Tasks. Suit
Mail, with its easy access and simple
design, offers the tools that business
users need most, such as filtering, legal
text, disclaimers and signatures, in a re-
liable, simple and free way. Compatible
with many email platforms, users can
easily switch to the Suit Mail service.
Our Suit Mail service, which we
launched for business use in early 2021,
will continue to benefit more than 3,000
businesses by the end of 2023.
Eco-friendly and practical
solutions through digitalisation:
Digital Signature at Home
subscription
Thanks to the new solution de-
veloped by Turkcell engineers,
customers who want to use fib-
er, DSL, Superbox and TV+ ser-
vices can use digital signatures
in
transactions,
enabling installation teams to
do their work 30% faster. In this
way, 1,400 tonnes of documents
will be digitised annually, con-
tributing to the protection of the
environment.
will continue to
benefit more than
3,000
businesses by the
end of 2023.
Smart Legal Documentation
Automation
In addition to the customer-facing
solutions we offer, we have also devel-
oped the Smart Legal Document solu-
tion for the legal department, where
paper usage is high. With this project,
we have digitised the flow of the legal
department's response to legal docu-
ment requests from official institutions
(automatic assignment of 172,000 doc-
uments), we reduced manual process-
es and at the same time saved paper.
Thus, we prevented errors in the work
performed and achieved labour force
gains through the automation of man-
ual work assignment (25% speed/time
gain) and query functions with robot-
ic processes (15% speed/time for IP
queries).
A better customer experience
with artificial intelligence
improve our
We enrich and
products and services with ar-
tificial intelligence applications
developed by Turkcell engi-
neers. We provide services both
in our applications and custom-
er services with artificial intel-
ligence, which facilitates the
personalisation of user experi-
ences and helps to make them
effective.
In 2020, we committed to use a
powerful tool such as artificial
in a responsible
intelligence
and ethical manner and set out
7 principles that we will adhere
to. In this context, we became
the first company in Türkiye to
publish the Principles for the Use
of Artificial Intelligence. In addi-
tion, in our Human Rights Policy
published at the beginning of
2021, we aim to act based on
human dignity,
fundamental
rights and freedoms in the tech-
nologies we develop, especially
artificial intelligence technolo-
gy, by contributing to the SDGs.
You can find infor-
mation about the Artificial Intel-
ligence Usage Principles on our
"Digital Responsibility" page on
our website.
Our analytical solutions team
conducts post analyses and
insightful studies for Turkcell
products, services, tariffs, and
campaigns; at the same time,
we carry out predictive model-
ling and segmentation studies
to generate target audiences
for business units to take action.
By supporting our business units
with analytical trend models to
ensure that the tariffs, products
and services offered by our
company to its customers meet
the right customers, we contrib-
ute to our company's revenue
growth and play a role in in-
creasing customer satisfaction
by ensuring that customers are
offered the right offers.
Chatbot - Turkcell Assistant
Turkcell Asistan is a strategic milestone
in our company's digital transforma-
tion journey and is an artificial intelli-
gence-powered self-service solution
implemented entirely with Turkcell en-
gineering vision.
This innovative platform has been in-
tegrated into the Turkcell app platform
and plays a critical role in the mobile
infrastructure of our company's digital
asset, the Turkcell app.
Powered by artificial intelligence, Turk-
cell Asistan makes life easier for our cus-
tomers by assisting them in hundreds
of areas, from invoice management to
overseas service settings, from pack-
age information to special offers. With
its structure that can anticipate custom-
er needs, it offers proactive information
and suggestions to our users by syner-
gistically utilising our analytical skills.
For example, when a customer ap-
proaches the package limit or the cur-
rent contract expires, Turkcell Assistant
information
automatically provides
and digital guidance to complete the
necessary transactions smoothly.
As of 2023, our 15 million standalone us-
ers had approximately 89 million inter-
actions through Turkcell Assistant each
month and 98% of the transactions
were successfully concluded at the first
contact.
As of 2023, our
15 million
standalone users
had approximately
89 million interactions
through Turkcell Assistant
each month and
98% of the
transactions were successfully
concluded at the first contact.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Voice analytics - Turkcell
Artificial Intelligence Voice
Image Processing Services and
Solutions
TWe continue to use our arti-
ficial intelligence voice devel-
oped in-house by Turkcell engi-
neers in different products and
processes of Turkcell. Thanks to
this competence, we can inform
our customers by sending voice
SMS when necessary, voice on-
line trainings prepared by our
Turkcell Academy team, and
convey personalised messag-
es to our employees through
different
taking
channels,
communication to a different
dimension by using artificial
intelligence.
In our call centre, our artificial
intelligence voice serves our
customers at many points as
the voice of the digital assis-
tant. We contribute to the ac-
tion of meeting our customers
with the right package at the
right
time by automatically
voicing the package readings
in the flows in which we offer
package suggestions to cus-
tomers through the call centre
with our artificial intelligence
voice. We improve the expe-
rience of our customers by re-
sponding to an average of 113
thousand call centre voice re-
quests on a daily basis.
In addition to our existing arti-
ficial intelligence voice tech-
nology, thanks to our intensive
R&D studies on this subject, we
have gained the competence
to clone professional voices
with only 30 minutes of voice
recording. In this way, we aim
to gain the flexibility to serve
our customers through different
channels with different voices
in the coming period.
Turkcell Digital Verification ap-
plication, another good prac-
tice example developed by
Turkcell engineers within the
scope of artificial intelligence
studies, enables the control of
identity documents with image
processing, voice processing,
machine learning methods and
remote customer acquisition
process with face verification.
In the digital world, since many
organisations now need to
make transactions with their
customers remotely via vid-
eo calls, authentication of the
customer on the digital plat-
form has become an inevitable
control. In Digital Verification
processes,
recognition
face
services developed by Turk-
cell engineers, STT (speech to
text) services that enable voice
confirmation from the custom-
er and OCR (Optical Charac-
ter Recognition) services that
enable high accuracy reading
of ID card information are used.
The Turkcell Digital Verification
application, which brings to-
gether different services and
competences, can be quick-
ly
IOS and
Android platforms with SDK
software.
integrated
into
2023,
Turkcell
In March
achieved a high score in the
NIST FRVT 1:1 (Face Recogni-
tion Vendor Test) test, the only
globally recognised test in the
field of face verification, with
its in-house developed one-to-
one face verification algorithm,
thus proving that it meets the
accuracy rates defined in tel-
ecommunications and banking
legislation.
Artificial intelligence- based
recommendation engine
At the point of understanding
and meeting the needs of our
customers, we benefit from the
recommendation engines infra-
structure developed by Turkcell
engineers to increase the per-
sonalised user experience
in
our applications and commu-
nication channels we provide
to our customers. In fizy and TV+
applications, which are person-
alised with artificial intelligence
support, we bring
together
content such as recommenda-
tions, product similarities and
personalised product lists with
our customers.müşterilerimizle
buluşturuyoruz.
Digital Security and Wellbeing
We aim to create an unprecedented
experience for our customers with the
technologies and products that we
continuously increase our diversity in
parallel with developing technologies
and stakeholder expectations. Two
important components of this experi-
ence are digital security and well-be-
ing, which are manifested in two main
areas of our operations: The first is the
management of cyber security and
information privacy risks in our infra-
structure, technology, products and
services, and the other is the cyber se-
curity and digital well-being services
we offer to our customers.
During the reporting
period, there was no data
breach or personal data
(PII) privacy violation
due to cyber security
vulnerability, and no legal
sanctions or fines were
imposed on the company
in this regard.
With the spread of information tech-
nologies and digital services, cyber
security risks have started to take an
important place in our lives. With the
pandemic process, the importance of
cyber security activities has increased
even more due to the widespread use
of remote working and education in
Türkiye as in the whole world, the use of
IoT services and devices, ransomware
attacks, and the increase in cloud ser-
vices and customers.
Cybersecurity is an important com-
ponent of Turkcell's business strategy.
Cyber security and data privacy risks,
which are assessed in 11 different pro-
files within the scope of corporate risk
management, are monitored in the re-
alisation of activities and operations
for all strategic business focuses. Every
service that is implemented recognises
cyber security as a component among
its outputs. Cyber security related risks
are managed in RISK and RESK com-
mittees according to their priority.
Cyber security processes across op-
erations are managed in accordance
with the principles regulated by 10
different corporate policies,
includ-
ing Information Security Management
Systems Policy,
Information Security
Organisation Policy, Information Se-
curity Incident and Vulnerability Man-
agement Policy, Information Security
Cryptology Policy, Information Securi-
ty Access Policy, Information Security
Operating Policy, Information Security
Communication Policy, Information Se-
curity System Policy and Information
Security Business Management Poli-
cy. In order to ensure the reliability of
these processes, Turkcell obtained the
ISO 27001 Information Security System
Standard certificate in 2008, becoming
the first telecom operator in Türkiye to
hold this certificate. Turkcell also has
ISO 27017 Cloud Information Security
System Standard. We maintain our cer-
tification by improving our information
security maturity every year and being
audited by independent auditors.
implementing
While designing and
cyber security processes and practic-
es, in addition to compliance with the
relevant legal regulations, reference is
taken from governance principles such
as ITIL and COBIT, and good practices
such as NIST, CIS, OWASP, CSA, ENISA
and MITRE. Legal regulations such as
the Presidential Digital Transformation
Office Information and Communica-
tion Security Guide (BİGR), Personal
Data Protection Law (KVKK), Global
Data Protection Regulation (GDPR) and
ICTA and CMB regulations are includ-
ed in the legal compliance portfolio
followed in cyber security processes.
In addition to being subject to internal
audit processes for service and pro-
cess control, the activities implemented
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 audit processes.
During the reporting period, there was
no data breach or personal data (PII)
privacy violation due to cyber security
vulnerability, and no legal sanctions or
fines were imposed on the company in
this regard.
Privacy and Security
In line with its responsible digital
operator identity, Turkcell pays
utmost attention to the protec-
information
tion of customer
privacy. Customer
information
privacy activities, which are
carried out in compliance with
relevant regulations as well as
laws such as KVKK and GDPR,
are managed within this scope
when they cover physical busi-
ness processes where personal
information is processed beyond
cyber security. Our third- party
business partners are also re-
quested to manage personal
data in line with the same princi-
ples as Turkcell.
Our customers are
informed
about our policies on the privacy
and security of their personal in-
formation, and they can contact
us through our complaint chan-
nels if they have any doubts or
problems.
Turkcell’s privacy
and security policies are
available on our corporate
website.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Three main strategic focuses are
followed in our Cyber Security
activities:
Improving cyber
resilience
through innovative new tech-
investments, existing
nology
improvements,
technology
standards, dig-
processes,
italisation,
communication,
awareness, training, compe-
tence development activities
carried out within the scope of
the services provided by Turk-
cell and Group companies
Developing thef local ecosys-
tem and integration through
localisation
in existing and
new products
Increasing the revenues of
cyber security products and
services in individual, corpo-
rate and wholesale customer
portfolios
The Cyber Security Directorate is re-
sponsible for cyber security manage-
ment throughout the company. The
Directorate is one of the largest cyber
security teams in Türkiye with over 160
expert personnel. The work carried out
and the results obtained are present-
ed to senior management and relevant
units at periodic meetings held by vari-
ous committees and teams. The month-
ly CXO security managers meeting,
the annual ISO 27001 review meeting,
and the Cyber Security Meeting, which
brings together technology Assistant
General Managers and Directors every
two months and quarterly, are the meet-
ings where information is shared in this
area.
The Security Operations Centre, which
operates 24/7 within the Cyber Security
Directorate, monitors attacks 24/7 with
IoT and forensic laboratories and takes
threats.
measures against potential
Our Bozok Threat Intelligence platform,
which is integrated with the Security
Operations Centre, provides informa-
tion on threats and risks to our custom-
ers as a cyber security protection layer.
While offering penetration testing and
vulnerability analysis services to our
customers with new tools and methods
in order to identify the cyber security
needs of institutions, we carry out secu-
rity vulnerability scans and penetration
testing studies of critical institutions.
We enrich Turkcell's Cyber Securi-
ty product and service portfolio with
cloud-based security solutions running
in Turkcell data centres. As Turkcell, we
contribute to ensuring security for mo-
bile service providers and the organisa-
tions and individuals who benefit from
mobility services with our investments
in cyber security and data privacy and
the services we offer.
With our digital security service, we pre-
vent thousands of our active customers
from accessing these malicious ad-
dresses in order to protect them against
threats such as phishing, malware, etc.,
while informing users about past pass-
word leaks and warning them via SMS
and e-mail against new password
hacking attempts. All our corporate and
individual mobile customers can benefit
from this service, which we offer to pre-
vent fraud or to protect the device used
and personal data.
As a member of the Turkish Cyber Se-
curity Cluster community, we continue
to collaborate by bringing together the
public, private sector, and academia by
contributing to the development of the
domestic and national cyber security
increasing cyber security
ecosystem,
awareness and collaboration.
Numerous practices are implemented
to improve the level of cybersecurity
awareness, experience and knowl-
edge of employees. For example, every
year all Group employees receive cy-
ber security training in technical and
non-technical areas, tailored to differ-
ent employee groups. The T.Life Cyber
Star application, Security Reflex feed-
back, Security Champion scorecard
points awarded to technology teams
that make a positive contribution in the
area of security, and Security Scorecard
points based on cyber security per-
formance are performance incentive
practices for employees.
On the other hand, award-winning cy-
ber security activities such as Unibounty,
Bugbounty and CTF are also conduct-
ed with the participation of different
groups such as Turkcell employees, se-
curity experts and university students.
Turkcell's cyber security experts partic-
ipate as speakers and trainers in many
national and international conferenc-
es and events within their areas of
expertise.
Digital Wellbeing
A certain level of digital literacy
and understanding of privacy
and confidentiality is a prerequi-
site for protection against security
risks and the actions of malicious
people when using the Internet.
However, some users who
lack
digital literacy or are in vulnerable
situations (such as children, elder-
ly users) may be more vulnerable
in this context. To address this, we
are first creating various security
and content filters under paren-
tal control to keep children and
young people away from inap-
propriate content on our services.
In addition, we aim to enhance
the safe internet experience of our
stakeholders through education-
al activities aimed at increasing
their knowledge and awareness.
In this context, during the reporting
period we created game content
to increase children's information
awareness.
We aim for our Galakcell educa-
tional game content, which we
launched in August 2023, to serve
as a guide for children on the risks
of the digital world and digital
footprint awareness. On the other
hand, our company has actively
participated in the standardisation
studies (IEEE SA P2089) developed
within IEEE SA on age-appropriate
digital services, and has also initi-
ated studies on the suitability of its
products and services in this sense.
Digital Business Services (DBS)
Digital Business Services combines Turk-
cell's telecom service provider strategy
with its "Digital Transformation Business
Partner" strategy for corporate custom-
ers. With Digital Business Services, we
are addressing the needs of all sectors
and developing our business model
to deliver value-added projects with
many horizontal and vertical solutions in
health, education, manufacturing, retail,
transportation, logistics, finance, ener-
gy and similar sectors. We contribute to
Türkiye's digital economy by providing
organisations with end-to-end digital
solutions from a single source. In this
way, we deliver projects with high val-
ue propositions that deliver cost savings
and revenue growth.
In line with our vision, we have imple-
mented and continue to manage more
than 3,400 managed services and sys-
tems integration projects tailored to
the needs of our corporate customers.
In these projects, we analyse the needs
of our customers from all sectors, ad-
dress the right solution and implement
many solutions and services such as
fixed access, network, cyber security,
data centre and cloud services, sys-
tems integration and managed servic-
es, IoT, big data, business applications,
new generation technologies such as
artificial intelligence and many similar
solutions and services in accordance
with our customers' business process-
es with our project management team.
In delivering our projects, we leverage
our internal resources, products, pro-
cesses and technologies, as well as
the strength of our ecosystem business
partners, who we have identified as
experts in their fields, to deliver end-to-
end, high value projects from a single
source.
We have a strong mobile network, an
end-to-end fiber infrastructure of 61.8
thousand km, which enables us to pro-
vide high quality services, and a total
of 8 data centres, 4 of which are new
generation data centres with Tier 3 Fa-
cility, Design and Operation Sustaina-
bility certificates from Uptime Institute,
an
international certification body.
With Turkcell Cloud Services, we posi-
tion the entire information technology
infrastructure of companies in our data
centres, providing a more flexible infra-
structure while reducing costs.
In the field of cyber security, we are
the end-to-end cyber security service
provider for institutions thanks to our
expert staff, our current technology
investments and the diplomacy and
processes we have established with
the defence groups we are a member
of at home and abroad, which are the
3 basic components of cyber security
against the ever-changing, developing
and increasing cyber threats.
Our Big Data and Artificial Intelligence
services provide meaningful and pre-
dictive analysis based on dynamic and
real data. We enable our customers
to increase their profitability and effi-
ciency by facilitating their strategic de-
cision-making processes with our big
data services, which we offer to many
sectors, especially manufacturing, re-
tail, e-commerce, shopping malls, fuel,
and finance.
In the health sector, considering the
hospitals we manage as an integrator
that provides and operates all the re-
quired technological solutions in city
hospitals, we are a leader in the pub-
lic-private partnership
(PPP) market
with 8 hospitals and a capacity of over
10,000 beds. We operate in a total of 8
city hospitals in Yozgat, Adana, Eskişe-
hir, Elazığ, Bursa, İstanbul-Başakşehir,
Tekirdağ and Gaziantep.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell and Mobility
At Turkcell, we are closely following developments in mobility and assess-
ing the impact of these trends - autonomous driving, connectivity, electric
vehicles and shared transport - on the way we do business and the life-
styles of our customers. Advances in mobility are expected to have a broad
impact, from the companies in the industry to the structure of cities and the
roads used. In addition, we expect the concept of mobility to lead to sig-
nificant changes in the automotive and transportation sectors, as well as
in the technology sector. As Turkcell, we continue to monitor these devel-
opments and take the necessary steps to provide the best service to our
customers.
With the rapid development of mobility and technology trends, our country
is entering a new era. In this sense, the transport sector is focusing on the
production of new generation technologies and working on flexible and
innovative solutions. The Togg project, in which Turkcell is one of the share-
holders, has taken an important step in the field of mobility by designing
an electric vehicle as Türkiye's first domestic car. Today, seeing Togg on the
roads shows that this project has been successfully implemented. Türkiye's
participation in the electric vehicle competition and its ability to effectively
use its own resources is a great advantage for our country. Togg is an im-
portant milestone in Türkiye's mobility efforts.
Our mobility solutions, which we offer as part of Turkcell's Digital Busi-
ness Services (DBS), help us provide the most advanced vehicle and fleet
technologies for vehicle and employee safety. Mass production of Togg's
C-segment SUV, developed by Türkiye's Automobile Initiative Group, in
which Turkcell holds a 23% stake, will start in 2022. On the other hand, Togg
continues to finalise the necessary collaborations for the mobility eco-
system to be created around the electric car, which it defines as a "smart
device". In this context, following the establishment of a strategic collab-
oration between our techfin company Paycell and Togg to integrate in-
novative payment systems and digital financial solutions into the mobility
ecosystem, we have started to bring Togg users together with music in 2023
through Togg's collaboration with fizy, our digital music platform.
The entire technology
infrastructure
of these hospitals, from hardware to
software, from system to operation, is
managed by Turkcell. For the first time
in Gaziantep City Hospital, which start-
ed operations in October 2023, Turkcell
DBS teams, the leading integrator in the
sector, carried out the installation of
all end-to-end services with their own
resources. In addition, many initiatives
continue to be implemented by Turk-
cell engineers in our hospitals. One of
the most important of these initiatives
is a comprehensive paperless hos-
pital project at Başakşehir Çam and
Sakura City Hospital in Istanbul, which
has made significant progress in com-
pletely eliminating paper and digitising
all systems. As a result of this initiative,
the hospital was awarded the HIMSS 6
certificate by HIMSS, the world's lead-
ing digital certification organisation in
healthcare, following a rigorous audit
and assessment. As a result, Başakşehir
Çam and Sakura City Hospitals have
been awarded the HIMSS EMRAM Lev-
el 6 certificate according to the 2023
criteria and have gained the title of "the
world's largest healthcare facility". In
addition, Eskişehir and Bursa Municipal
Hospitals were also entitled to receive
the HIMSS 6 certificate in the audit car-
ried out by the inspection teams as-
signed by HIMSS in October 2023 and
November 2023, which included rep-
resentatives from different regions of
Europe.
On the other hand, we continue to
expand our ecosystem qualitatively
by working with our subcontractors,
co-developers and distribution part-
ners in our business partnership eco-
system with a win-win focus. In addi-
tion, through our business partnerships
with global suppliers, we are expand-
ing the solution sets we offer our cus-
tomers every day in terms of technical
competence and project diversity.
Within the framework of RPA (Robot-
ic Process Automation) technology,
installation and
infrastructure works
have been carried out within Turkcell
and 402 business processes have been
implemented using RPA to automate
manual processes.
Türkiye's New Generation Payment
Platform: Paycell
techfin
Paycell, which is gaining ground every
day with its easy-to-use and secure
payment solutions, stands out as a
technology-oriented
that
manages all its processes with end-
to-end automated structures, thanks
to its modern and powerful techno-
logical infrastructure. The agile work-
ing model, adopted to make a differ-
ence in the fast-changing dynamics of
the techfin ecosystem, manages both
business processes more efficiently
and adds value to the products and
services offered. This approach al-
lows for quick and easy adaptation
to advanced technologies. Paycell
provides value-added data analytics
models not only on the infrastructure
side, but also in analytical solutions to
provide better and sustainable ser-
vice to both individual consumers and
business partners.
Wiyo: Insurance for Mobile Life
Turkcell Dijital Sigorta A.Ş. established
in line with Turkcell's digital financial
services strategy, started its opera-
tions under the Wiyo brand with the
vision of becoming the "insurer of mo-
bile life". Wiyo aims to understand and
meet all kinds of mobile life needs of its
customers in order to provide innova-
tive solutions to users in the insurance
sector by bringing technology and
insurance together. At the same time,
its deep knowledge of technology
and mobility enables it to offer com-
prehensive
insurance solutions that
adapt to the ever-changing lifestyles
of its customers.
Wiyo, which takes its name from the
combination of the words "with you"
and carries the promise of being with
its customers in its name, combines its
desire to be the first brand that comes
to mind in the field of device protec-
tion insurance with its passion for cre-
ating superior customer satisfaction,
and is moving forward with a focus on
increasing the added value it creates
every day by using big data and dif-
ferent technologies in its processes.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Social Capital
Outputs
38.0
Million Mobile Customers
3.1
Million Fixed Customers
12 min.
Response Time
Performance
Indicator
Short
Term
Target
Medium
Term
Target
Long
Term
Target
2022
Performance
2023
Performance
Current
Status
Towards
Target
Covering the whole
of Türkiye with
social projects and
accessibility studies
Increasing the
number of start-ups
working with the
cooperation model
200,000 250,000 300,000 70,000
190,000
30
40
-
36
36
Positive development
Negative direction
No Change
the public, public dealers, non-govern-
mental organizations, universities and
the media.
In this context, our policies that we
share publicly consist of the headings
and main ideas summarised below:
Our Brand
Turkcell, which started its digital opera-
tor journey as one of Türkiye's strongest
brands, continues to be a brand that
always puts its customers at the center
by implementing an ecosystem-based
brand transformation and enhancing
its strength by investing in technology.
With 30 years of strong experience,
the Turkcell brand aims to touch every
aspect of its customers' lives by com-
bining its superior technological infra-
structure and quality with our distinc-
tive products and services, as befits its
leadership in the new world. We offer
our customers a world that is easier,
more fun, more secure, more privileged,
sensible, people and environment ori-
ented, while at the same time providing
them with the difference of “excellent
service” with personalised, consistent,
and simple experiences by leveraging
our technological superiority.
With the responsibility of a leading
brand, we
lead all companies that
strive to achieve our country's econom-
ic goals, and we stand by companies
and small businesses with corporate
businesses.
By constantly researching
global hardware and software
technology trends and
equivalents, we enhance the
capacity and durability of
our superior digital services
and the Turkcell brand with
new features that make our
customers' lives easier
Brand and Responsibility
We strive to eliminate the digital barri-
ers and increase access in every field
we operate in, at every point we touch
in society, and we continue to support
the development of technology and
communication. We are glad to note
that our products and services across
various fields are growing the Turk-
cell brand without losing the focus on
technology.
Turkcell's approach is based on its re-
sponsibility
its customers,
employees, suppliers, shareholders,
towards
Human Rights Policy: We are
committed to fulfill our duties
by adopting an attitude em-
bracing fundamental rights
and freedoms, contributing to
the creation of a decent work
environment honoring human
dignity, and ensuring compli-
ance with national and inter-
national legislation on work
life.
Environmental Policy: Turk-
cell aims to contribute to the
long-
economy and meet
term environmental sustain-
ability by raising awareness
of circular economy, with an
awareness ofthe environ-
throughout
impact
mental
the value chain.
Customer Satisfaction Pol-
icy: We
resolve customer
requests in an open, trans-
parent, swift and custom-
er-orientated manner.
Quality Policy: We continu-
ously improve our processes
and implement an effective
Quality Management System.
Anti-Bribery and Anti-Cor-
ruption Policy: We consider
it a necessity to carry out our
activities fairly, honestly and
in accordance with legal and
ethical codes.
Information Security Policy: At
Turkcell, we ensure the security
of information in accordance
with business needs, laws and
legal regulations.
Donation Policy: Through our
Company and its subsidiaries,
with the authorization from the
Board of Directors and within
the annual donation limit de-
termined at the General As-
sembly meeting; donations are
made to organizations, asso-
ciations and foundations that
carry out projects related to
education, sports, culture and
arts, environment, health, res-
toration of historical artifacts,
humanitarian aid,
involving
the disabled in society, entre-
preneurship and technology,
and similar publicly beneficial
activities.
As Türkiye's leading telecom
company, you may access the policies we
implement to aim for the highest standards
at turkcell.com.tr.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Our Brand Communication
Activities in 2023
At the beginning of 2023, after the dis-
asters that left our country in deep
mourning and changed all our com-
munication plans, we promised to im-
plement many projects with our love for
our country as Türkiye's Turkcell and our
sensitive brand behaviour model. By
identifying the necessary areas for the
reconstruction of the disaster area, we
have implemented and communicated
our Turkcell Gönül Bağı projects in many
areas, from education to employment,
from starting commercial businesses
after the earthquake to using solar en-
ergy. In Gönül Bağı projects, we com-
municated issues such as the opening
of the Hatay Call Centre, Gönül Bağı
Passage, employment mobilisation,
academy training, open businesses, Fi-
nancell solar energy power plant loan
with commercial films, while we carried
out integrated campaign management
with tent city events and social media
communication. In the same period, we
launched our Fizy, Pasaj, TV+, Paycell
and Lifebox products with the "Türki-
ye's Couples" advertising platform. With
these commercials, we tried to trans-
form the Turkcell brand, which has a
strong recognition as a telecom oper-
ator, into a digital ecosystem brand. In
this advertising platform, Melis Sezen
and Onur Tuna portrayed the couples
with different characters in life.
We explained Turkcell's mobile/fixed
tariffs and offers to its customers by
leveraging our strengths in technolo-
gy and using comedy elements. Doğu
Demirkol was the main character in our
advertisements in this area.
We continued to be among the repu-
table companies with our commercial
film accompanying the enthusiasm of
the 100th anniversary of our Republic
and we were shared millions of times
with our slogan produced for digital
sharing.
As Turkcell prepares for its 30th anniver-
sary, we will continue to produce ad-
vertisements that focus on our custom-
ers, embrace the whole country, touch
emotions and are much talked about.
Our Strong Sales Channels and Services
Our Sales Channel Structure
As Türkiye's leading communications
and technology company, we continue
to bring our customers together with all
the tariffs, campaigns, devices, servic-
es and solutions we offer. We continue
to provide customer-oriented servic-
es and solutions through our Turkcell
stores, alternative sales channels, on-
line channel, Turkcell mobile applica-
tion, Pasaj application, fiber and DSL
solution centres and corporate sales
channels.
We bring our integrated Turkcell solu-
tions to our customers in all our sales
channels and strive to provide the
same high quality service at every
point.
Our Retail Channel
With our 1,104 Turkcell Stores and 3,952
digital points of sale, where we have
completed the transformation of our
retail channel into a digital experience
chain, we are present at every point
our customers need with the superior
Turkcell service quality.
In order to increase our market share
and customer loyalty with our Smart
Offer Management model focusing on
existing and new customer acquisition,
we continue to provide our customers
with content-rich offers tailored to their
needs and at different price levels.
We continue to run our regular monthly
customer campaigns with competitive
device offers under titles such as "Yel-
low Days, Stretching Limits, Star Prod-
uct of the Month". In this way, we ensure
that we keep our customer traffic at
the highest level by presenting our cus-
tomers advantageous offers across
many product groups at different times.
After the earthquakes on February 6, 2023, 20 Turkcell Store Containers
and 38 DSN Store Containers were sent to the disaster area. Our container
stores are still in operation in 5 provinces of the earthquake zone. Neces-
sary plans have been made to provide spare containers in case of another
possible disaster.
Employee Experience in Sales Channels
The Store Employee Certificate Programme, which was implemented with
the aim of positioning employees with the same qualification and knowl-
edge level in Turkcell stores and providing excellent customer experience,
continued in 2023 with a 99% success rate. The additional benefits provided
to our Certified Ambassadors according to the Store Employee Satisfaction
Surveys also continued.
Training was provided to all channels on 91 topics for focus, business and
personal development.
We issued Certificates of Expertise to 740 individuals who successfully
completed the Financell Certificate Programme, which enhances our Am-
bassadors' knowledge of our financial products. This brings the total num-
ber of employees with Advanced Financell Certificates to 12,449.
The award-winning BEST Knowledge Level Assessment exams were
launched for Turkcell Store employees. The winner of each of the 15 regions
with the highest scores was awarded a Paycell prize and cultural trips with
accommodation.
The Super Stars Training Programme, which contributes to retail, digital
transformation, personal competence and management awareness of
employees, is conducted as a one-week, 42-hour in-person training with
a leading university in Türkiye. The programme was voluntarily attended
by 100 employees with 2 years of experience and the best scores in BEST
exams.
䩉Support payments were made to employees in the State of Emergency
provinces.
䩉Additional data packages were provided for all employees in the rele-
vant provinces.
䩉Earthquake-related health expenses were included in the scope of the
health policy, enabling services to be received from all hospitals.
䩉Life insurance procedures were initiated for the deceased personnel.
䩉Aid packages were sent to a total of 1,050 employees and company
owners in 5 provinces during Ramadan and Eid al-Adha.
䩉Psychological First Aid and Psychosocial Support trainings were given to
employees directly and indirectly affected by the earthquake.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES By transforming our Turk-
cell stores into technology
stores and as an ecosys-
tem brand, we continue
to open new categories
where we can meet all
the electronic needs of
our customers.
With the high instalment ad-
vantage of up to 36 months
in our Turkcell stores, we offer
our customers all categories of
products such as small home
care
appliances, personal
products, accessories,
food
preparation sets and e-games
with Turkcell assurance. In ad-
dition, we are now able to of-
fer our prepaid Turkcell and
non-Turkcell customers our ad-
vantageous cash offers, which
were previously only available
to Turkcell postpaid customers.
Starting with air conditioners
and TV products in 2021, our
"Sales from Catalogue" model,
in which large-volume prod-
ucts that our customers se-
lect from digital catalogues in
Turkcell stores are sold without
stock, delivered and installed
directly to the customer, con-
tinues to grow without slowing
down with new product cate-
gories such as the PC category
from November 2022 and white
goods and small home appli-
ances from January 2023.
investments
In
line with our retail
channel deepening strat-
egy, we continue to shape
our
in this
direction by focusing on
traf-
communication,
fic, sales, supply, loyalty,
blending physical and
digital experiences and
delivery.
Continuing the transformation
of technology and experience
in our stores, in May 2022, we
transformed 103 stores, at least
1 in every province of Türkiye
and more than 1 in major cities,
into the Disabled-Friendly Store
concept. We enabled all our
hearing-impaired, visually
im-
paired and physically disabled
customers to receive equal and
accessible service with our in-
store applications.
With
We strive to provide our
customers with the same
high quality service in all
our sales channels, and
we continue to make a
difference in our service
and sales processes with
our
integrated channel
experience solutions.
Since 2021, with the "Customer
Contact Journey Platform", we
have been following the inte-
grated experience in terms of
service by showing the store
and call center employees the
channel in which our customers
have made transactions. Since
all our channel employees see
this journey before serving our
customers, they have informa-
tion about our customers' pre-
vious experiences, which con-
tributes positively to customer
satisfaction.katkı sağlıyor.
Friendly Store in
103 Disabled-
79 provinces of Türkiye,
we enabled all our hearing-
impaired, visually impaired
and physically disabled
customers to receive equal
and accessible service from
our in-store applications.
In line with our sustainable environmental approach, the
"Refurbished Device Sales Campaign", which we started as
of July 2021, continues at full speed in order to bring the de-
vices that continue their life cycle back into the economy.
Thanks to the refurbished devices we offer to our customers with cash and
contracted offers through all Turkcell stores and the online channel, we
support the reduction of unregistered device sales and device imports,
while also reducing the environmental impact of the device trade. In 2023,
we collected a total of 19,500 old devices from our customers, 9,000 through
the cash collection scheme at Turkcell stores and Pasaj and 10,500 through
the "Bring Old, Take New" scheme, and sold 1,800 refurbished devices. We
expect this trade, which we have started only in the smartphone category
at the moment, to grow in different categories in the future, supported by
the regulations to be published by the relevant institutions, thus promot-
ing the understanding of sustainability in all categories of the technology
world.
Training on energy efficiency, energy saving and sustainability in Turkcell
stores has been developed with the support of Turkcell Academy and
shared with all Ambassadors. Projects have been implemented to reduce
energy consumption in the stores. The backlighting of LCD screens in stores
was reduced by 30%, resulting in energy savings of 25%. In addition, air con-
ditioning methods were discussed and measures such as correct place-
ment, appropriate temperature settings, etc. were determined. In 2023,
efforts on reducing the ecological footprint and implementing alternative
energy solutions continued.
We continue to contribute to education by recycling technical waste
through our another sustainability project, the "Recycle to Education"
campaign. As part of the "Recycle to Education" project, e-waste (mobile
phones, computers, tablets and accessories, etc.) brought to the recycling
bins in Turkcell stores are sent for recycling in cooperation with the Infor-
matics Industry Association (TÜBİSAD), an authorised organisation in this
field. All proceeds from the recycling are donated to the Educational Vol-
unteers Foundation of Türkiye (TEGV) to be used for the qualified education
of our children. From November 2019, when the project was launched, until
the end of 2023, Turkcell has recycled approximately 34 tonnes of electron-
ic waste, including 4.2 tonnes last year. All proceeds from this project were
donated to TEGV, contributing to the qualified education of more than 40
children.
We are
improving the procurement
processes of all Turkcell channels
thanks to our "Digital B2B Procurement
Platform", which can supply multiple
channels with a wider range of prod-
ucts and categories and a multi-buy-
er-seller structure. We continue to
provide customised guidance to our
merchants according to their orders
and sales by speeding up our process-
es and improving the experience with
our content management team
Currently, the Turkcell portal
offers
products from
30,000
120
brands to
Turkcell dealers with
20active suppliers.
he delivery of devices pur-
chased through turkcell.com.tr in the
physical channel via "Delivery Point"
and the delivery of SIM card products
such as Postpaid Number Transfer,
Prepaid Number Transfer, Postpaid
New Line, Prepaid New Line, which are
pre-applied
turkcell.com.tr,
via "In Store Delivery with a Click ", have
been carried out in our stores since
2019.
through
Thanks to the “In Store Delivery with a
Click ” service, our customers, who do
not have to wait at home for their par-
cel to be delivered to them, can get
their parcel faster through our stores,
while at the same time they can satisfy
their related or other product and ser-
vice needs, if any, in our stores.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Our Alternative Sales Channel
With a sales volume of 24 million units,
our alternative sales channel continues
to be present in telesales, chains, bank
channels and hypermarkets, and we
have turned every channel that touch-
es the customer into a sales channel.
Our alternative sales channel has be-
come the main sales channel for our
digital services, with 3.2 million units of
sales of TV+, lifebox and fizy products,
using analytical models and artificial
intelligence and big data. With the TV+,
lifebox, fizy collaborations we made
in alternative channels, we ensured
brand awareness of our DSS products
and increased our sales by directing
our customers to digital channels. We
continued to drive awareness and
sales of our DSS products through the
positioning of scratch cards in chain
stores. We also achieved mass DSS
sales through bundle campaigns.
Our Digital Sales Channels and
Services
With our focus on digitalisation, our
online sales channel continued to lead
the Turkish e-commerce sector in 2023.
In Q4 2023, the monthly average num-
ber of visits to our website and Turkcell
mobile app reached 32.6 million and
25 million, respectively. The number
of top-ups made through our digi-
tal channels increased by 130% com-
pared to 89% growth in the previous
year. The ratio of postpaid subscribers
who switched tariffs via digital chan-
nels increased by 11 percentage points
year-on-year to 34%, while the ratio of
prepaid subscribers who top-up their
TRY/packages
increased by 9 per-
centage points year-on-year to 49%.
In addition, new customer acquisition
through digital channels increased by
123%. In line with our channel growth
strategy, we continue to focus on com-
munication, traffic, sales, delivery and
loyalty, and to invest accordingly. We
have implemented all the technical im-
experience. By this way, our subscrib-
ers can easily change their package
and sign new contracts with just a few
clicks. At the point of understanding
the needs of our customers, we con-
tinue to design campaign setups for
Turkcell products in both postpaid and
prepaid new facility and customer
number portability categories in order
to offer more internet and more ad-
vantageous price services.
provements we have made to improve
the processes in this area by working
with Turkcell's expert and dynamic In-
formation and Communication Tech-
nologies (ICT) team. Under the guid-
ance of our Artificial Intelligence and
Data Analytics teams, we have imple-
mented our sales setups that empha-
sise the importance of personalisation.
By adopting a creative, lifelike, sincere,
value-oriented and intimate approach
to communication, we have enabled
our customers to spend more time with
Turkcell. As part of our digital transfor-
mation project, we have redesigned
the screens by making them very con-
cise and focusing on perfecting the
By the end of 2023,
new customer acquisition
through digital channels
increased by
123%
The number of top-ups
made through our
digital channels
increased by
130%
With the goal of "safe online shopping", Turkcell launched Turkcell Pasaj,
Türkiye's electronic marketplace platform, in December 2020 in cooper-
ation with Türkiye's largest and most reliable suppliers. At Turkcell Pasaj,
where thousands of products ranging from phones to vacuum cleaners,
televisions to computers, white goods to mother and baby products are
available, users are offered fast delivery and flexible payment options, as
well as easy cancellation and return rights. Products purchased from Turk-
cell Pasaj are delivered to customers in 100% environmentally friendly and
recyclable boxes. At the same time, by offering a real online/offline shop-
ping experience together, customers are offered the opportunity to receive
the products they purchase on this platform from the Turkcell store.
Adding a new one to our range of discount options and different payment
alternatives suitable for everyone at Turkcell Pasaj, from which all opera-
tors’ customers can benefit, the shopping loan offered by Turkcell Finans-
man A.Ş. was launched in the first quarter of 2023 by making it available to
non-Turkcell customers. We also continue to take steps to take our service
level one step further with Pasaj Blog and Pasaj Gaming.
In Turkcell Pasaj world, we know our customers and recommend the right
products and offers to our customers by predicting their next step with arti-
ficial intelligence technology. With Pasaj Personalised Offer World, we offer
our customers instant personalised campaigns according to their interests.
We continue to implement technology developments that provide an inte-
grated channel experience for our customers to continue their uninterrupt-
ed shopping journey across all channels. Today, our customers can receive
a product purchased on Pasaj in Turkcell stores, reserve stock from a store
of their choice by viewing the products on Turkcell Pasaj, or purchase the
product of their choice on Pasaj screens in stores and have it delivered to
their address.
During the period of the earthquake, we ensured that the products in Turk-
cell Pasaj were purchased by customers and delivered to those in need
without any profit within the framework of the "mobilization" call by the
Ministry of Trade. In addition, with the mobilization we started as Turkcell
Pasaj from the first period of the earthquake, we delivered various prod-
ucts such as heaters, sanitary pads, coats to those in need with trucks co-
ordinated by AFAD. We also did not forget our furry friends in the region
and sent thousands of pieces of cat and dog food to the earthquake zone.
With 'Gönül Bağı Pasajı', one of the Gönül Bağı projects implemented by
Turkcell to improve the disaster area after the Kahramanmaraş earth-
quakes, we reached thousands of households with local products rang-
ing from food, plants and decorations to jewellery and accessories. With
Gönül Bağı Pasajı, we continued to reach out to women in the disaster area.
We continue to support women producers by bringing together earth-
quake-affected women entrepreneurs who want to participate in the
Pasaj via showcasing the products produced by the women by exhibiting
their craftsmanship with consumers through the Women Entrepreneurs As-
sociation of Türkiye (KAGIDER).
In addition, together with our business partners who contribute to our sus-
tainability goal, we continue to make the process easier for our customers
by offering a "door-to-door appraisal" service in certain regions, as well as
receiving used equipment from our customers by freight and courier.
Turkcell Super App
In 2022, we renewed the design of Turk-
cell mobile application, and in 2023, we
transformed it into an ecosystem gate-
way that brings together sub-brands
and award-winning digital services in
the Turkcell ecosystem with users with
the Super App model. In 2023, it was
downloaded 29 million times, and our
customers logged in to Turkcell mobile
application 162 million times a month
on average in the last 1 year and car-
ried out their transactions through the
application. In the new version of the
Turkcell mobile application, a more
sales-oriented experience is offered on
the Pasaj side with areas such as cat-
egory structure, Recommended for You
and Deal of the Day, while on the op-
erator transactions side, our customers
can view their remaining usage, review
and pay their bills, access packages,
services and campaigns suitable for
their usage, and switch between tariffs
instantly. In this way, our users can now
easily discover and subscribe to Turk-
cell, Superonline and Pasaj, as well as
many brands and services in the Turk-
cell ecosystem, without downloading
the application to their phones. On the
redesigned stores screen, they can ac-
cess the nearest store information, as
well as review store campaigns and
personalised device offers. Our users
have the opportunity to discover and
subscribe to TV+'s content with a single
mobile application through the ecosys-
tem entrance gate, apply for Güven-
cell's products, benefit from brand col-
laborations at the Opportunities Gate
and review corporate solutions at
İşTurkcell.
In addition, our customers can add
fixed internet and all other Turkcell lines
from the "Add Account" step and man-
age them through a single application.
Nearly 475 thousand Superonline cus-
tomers perform an average of 8.9 mil-
lion transactions per month via Turkcell
mobile application.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Our Tariffs and
Packages
Our Postpaid Packages
Our intelligent offer management mod-
el, based on artificial intelligence, en-
ables us to provide our customers with
content rich offers that meet their needs
at different price and content levels.
We also ensure that our customers see
the same offers across all our chan-
nels and can easily take advantage of
them. At a time when cost optimisation
is becoming increasingly important for
companies, we have achieved our goal
of making digital channels, which offer
advantages in terms of both cost and
customer experience, the primary chan-
nel through which customers can carry
out many transactions, such as re-con-
tracting, upgrading and buying addi-
tional packages, without intermediaries.
Using our analytical models to increase
the share of the digital channel, we
designed personalised campaigns,
discounts and gifts specifically for this
channel. While implementing these ac-
tions, we communicated with our cus-
tomers at the right time and developed
user-friendly designs that allow our
customers to make their transactions
through the digital channel much faster
and easier.
Throughout 2023, we continued to pro-
vide our customers with offers with dif-
ferent content and price levels, in line
with rapidly changing market condi-
tions and customer usage habits. We
launched main packages and addition-
al packages with high content for high
data usage.
By 2023, we have advanced our digi-
talisation vision, which is at the core of
our corporate strategy, and created a
channel that creates value for our po-
tential customers. Our decisive steps to
digitise our business processes and cus-
tomer interactions were supported by
extensive innovations on our platform.
With these innovations, we increased
our channel share of new postpaid sub-
scriber acquisition from 5.9% in 2022 to
12% in 2023, strengthening our position
in the market. At the same time, with
our campaigns for new postpaid sub-
scribers through our digital channels,
we exceeded our targets by increasing
the number of applications by 82% and
customer acquisition growth by 123% in
2023.
We have used an advanced analytics
model to analyse the behaviour pat-
terns of our customers who want to
convert their prepaid lines to postpaid
in detail, in order to offer them the most
suitable offers for their specific con-
sumption habits and needs. As a re-
sult of these analyses, we have further
personalised the offer management
process for our customers. We also re-
duced the number of transaction steps
by 66% to improve the customer expe-
rience. This new sales process led to a
significant increase in customer satis-
faction and results that clearly demon-
strate the success of our digital market-
ing approach.
Our Prepaid Packages
We constantly monitor the usage hab-
its and needs of our prepaid customers
through big data and market research,
and expand and regularly update our
prepaid package alternatives accord-
ingly. In addition to monthly packages,
we meet the short or long term needs
of our customers with our daily, weekly
and 3-6-12 month solutions. Based on
customer feedback, we are continuing
our practice of adapting our telecom-
munications services to better meet
customer needs and demands by offer-
ing new high data packages and addi-
tional social media-oriented packages
to meet growing data needs. At the
same time, we are using our artificial-in-
telligence-based analytics models to
deliver our packages tailored to our
customers' changing needs through the
right channel at the right time.
We also focus on offering solutions and
campaigns to meet our customers' tel-
ecommunications needs in the digital
world of consumption. We continued to
ensure the loyalty of our customers us-
ing the Turkcell application to the chan-
nel with digital channel-specific pack-
ages, comparability of all packages, a
world full of gifts and continuous renew-
al. The segmentation structure we have
established according to the channel
usage habits of our digital customers
allows us to create customer-specific
campaigns, which helps us to increase
both the number of customers who
are new to the channel and the num-
ber of customers who use the channel
regularly. By tracking digital footprints
and personalising campaigns, we are
also increasing the top-up amounts of
our customers. We contribute to digital
transformation, especially by attracting
our customers who have never used
digital channels to the channel with au-
tomated short-term opportunities.
In parallel with Turkcell's digital transfor-
mation strategy, we started to offer our
prepaid line services through our digital
platforms. With these developments,
we have made significant progress in
our digital transformation process and
provided value-added interactions to
our customers.
Corporate Packages
We continued to develop specializsed
solutions to meet the growing inter-
net and communication needs of our
corporate customers with our innova-
tive offers. Our diversified campaigns
covered a wide range from popular
social media and instant messaging
applications to internal communica-
tion benefits, enhancing the benefits
of being a Turkcell customer. We con-
tinued to make a difference with our
unique offers specially designed for
new customers, merchant and the SME
segment. Considering the dynamics of
the local market, we offered special
campaigns for specific provinces. By
focusing on the lifecycle of our custom-
ers at Turkcell with the power of ana-
lytical modelling, we immediately met
their needs with the most appropriate
offers. As a result, we further strength-
ened our value for money perception
among new and existing customers.
We exceeded our targets
by increasing the number of
applications by
acquisition growth by
82% and customer
123%
in 2023.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES We Focused on Valuable
Customer Acquisition with
Turkcell Fiber and VDSL Speed
Festival
Considering the increasing need for
speed in homes, we prioritised our Light
Speed campaigns in Turkcell Fiber in
order to bring Turkcell Fiber speed and
quality to more homes. As a pioneer in
the market in high speed campaigns,
we continued to offer 1000 Mbps
speeds to our customers. In this way,
we doubled the number of customers
using speeds of 100 Mbps and above,
and more than tripled the number of
customers using 1000 Mbps.
Turkcell Wi-Fi 6 Technology
We bring our customers together with
the most advanced technologies in
internet. Wi-Fi 6 technology,
home
which increases coverage within the
home, was introduced to Turkcell Su-
peronline customers for the first time in
Türkiye in 2022, and we started to offer
this technology to all fiber homes in
2023. We are currently testing the latest
technologies such as Wi-Fi 6E, an ad-
vanced technology of Wi-Fi 6, which
we call "the technology that breaks
down walls". In this way, we are work-
ing to make Türkiye one of the leading
countries in digital transformation and
access to information.
As of the end of 2023, we offer Wi-Fi
6 technology to 41% of our fiber cus-
tomers. As with Wi-Fi 6 technology,
we also maintain our leadership with
Wi-Fi 7 technology. In this context, we
conducted Wi-Fi 7 product trials for the
first time in Türkiye and announced it
with a press launch. In this manner, we
are striving to position Türkiye as one of
the leading countries in digital transfor-
mation and access to information.
Innovation
Flex Package
Turkcell Gold Membership
We were the first in the industry to
launch the Gold Membership World for
prepaid customers. We have created
a world full of privileges based on the
understanding of prepaid customers
who operate on a limited budget and
feel relatively more distant from mem-
bership worlds compared to postpaid
customers. This membership world,
which our customers who top up reg-
ularly can join, is monitored through the
Turkcell application and aims to both
encourage customers to purchase
bundles and contribute to digital trans-
formation. An innovative digital world
has been created where customers
can track their top-ups and gifts and
participate with screens that motivate
them to make more top-ups and be-
come Gold Members. These screens
are designed to make it easy to under-
stand the requirements to become a
Gold Member and to benefit from priv-
ileged gifts once becoming a member.
Summer Package
We have specially developed the
Summer Package concept for our cus-
tomers who have seasonal internet
needs and who express their wish to
"have my internet with me anytime, an-
ywhere". This package promises a free
and uninterrupted connection to our
customers who travel, enjoy holidays
or spend time in summer regions dur-
ing the summer months. Whether you
are by the sea or in the mountains, with
the Summer Package, our internet ser-
vice is always with our customers and
always accessible to them. With this
package, we offered our customers
the pleasure of staying connected to
the digital world even while enjoying
the season.
With the Flex Package, we adapt to the usage of our customers. Our customers'
internet usage needs may change over time. In this direction, we have launched
our Flex Package for our customers whose package is not enough, but who do
not prefer to change packages or buy additional packages. In the Flex Package,
when the package is not enough, our customers automatically switch to the next
level and continue their usage at an affordable price level. 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 launched Turkcell Yapboz,
the flexible tariff system which allows
our customers to shape their package
according to their needs, across entire
Türkiye and on digital channels. With
the billing system based on unit price,
we offered this free world, where our
customers can increase or decrease
content such as GB/SMS/MIN during
the month, not only to new customers,
but also to customers who want to
switch from Prepaid Card to Postpaid.
We opened the door to a world where
they manage the whole process them-
selves by overcoming the fear of bills.
Two New Features for Prepaid
Customers: Doubling and
Extending
Focusing on customer insights, we con-
tinued to offer our customers two new
features that specifically address their
needs for non-wastefulness and con-
venience. Prepaid customers can pur-
chase the ability to double the internet
in their package or extend the duration
of their package by one week. Thus,
we continue to offer a more flexible
world to our customers this year by of-
fering a GB solution to customers who
do not have enough GB and an addi-
tional time solution to customers who
think that the content of their package
is wasted.
Superbox GO
While maintaining our leadership in
the mobile broadband sector, we
launched Superbox Go in June 2022 for
both postpaid and prepaid custom-
ers by positioning the Turkcell brand in
our devices. This year, we continued to
make Superbox Go special with fea-
tures that other devices do not have,
such as high quality, device connection
up to 32 people and automatic switch-
on feature. We explained our product
to our customers with different style
communication videos and closed the
season with ATL communication by
advertising it in Turkcell Vadi for the first
time outside of BTL communication.
Fixed Services
We continue to meet the needs of our
customers with high-speed
internet
options, home installation and a wide
range of Turkcell Home Internet offers
with favourable commitments. We con-
tinued our new homepass investments
in 2023 to deliver lightning-fast internet
to more homes on Turkcell Fiber.
We continue to improve our analyt-
ical capabilities in order to present
offers that are in line with our custom-
ers' usage habits and our marketing
strategies. By integrating models such
as customer promotion and direct-
ing to higher speeds with the Turkcell
application, we present our offers to
customers digitally. We have also initi-
ated an end-to-end digital activation
experience by
launching our online
sales process. Concurrently, we have
further emphasized digitalisation for
all our processes by offering addition-
al benefits to our new customers on
digital channels and
increasing the
intensity of our communications. We
aim to increase our competencies at
every step in the new period for digital
transformation. We also use our ana-
lytical competencies in acquiring new
customers with location-based analy-
ses in fiber and converting our existing
customers to fiber.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES International and Wholesale
Through our business partnerships with national and international operators, we shape the
change and contribute to the development of Türkiye's telecommunications sector through
international roaming, interconnection, wholesale voice, wholesale data, tower and digital
services.
The Main Internet Route of Türkiye
Since 2008, we have been working to position Türkiye as the main internet route and Istanbul as the internet hub of the region
with our vision of transforming the historical Silk Road route into a fiber route. As a result of these efforts, we have become the
most important capacity and internet provider in many neighbouring countries.
Through our partnerships with the world's leading operators, we have acted as a bridge to provide uninterrupted and light-
ning-fast internet from east to west for our wholesale customers.
Istanbul: Traffic Exchange Hub of the Region
Within the scope of our wholesale data services, our international transport capacity exceeded 15 Tbps. We collaborated with
the world's largest global traffic exchange platforms and played a major role in their decision to come to Türkiye. Thus, we have
taken one of the most important steps in making Istanbul the traffic exchange centre of the region. We also played a major role
in content providers' decision to provide their services from Istanbul.
Wholesale Voice Services
Turkcell and Turkcell Superonline provide wholesale voice services through interconnection agreements with fixed or mobile
operators and international carriers. Turkcell Superonline has interconnection agreements with more than 100 national and in-
ternational carriers. Turkcell has interconnection agreements with Türk Telekom, Vodafone, TT Mobil and other fixed telephone
service operators, whereby the parties interconnect their networks to enable the transmission of incoming and outgoing calls
to and from mobile communication systems. Turkcell has interconnection agreements with more than 70 fixed line and mobile
operators and carriers.
International Roaming
Our Roaming strategy has been to provide our customers with uninterrupted communication wherever they travel, thereby
achieving broad international coverage and offering foreign visitors the opportunity to benefit from Turkcell's service quality. In
addition to existing services, we continue to position our service quality at the highest level by launching innovative services such
as VoLTE and 5G. Our international coverage extends to many countries globally through our International Roaming agreements.
With more than 800 business partners in more than 210 destinations worldwide, we are strengthening our position as Türkiye's
leading international roaming services provider.
Digital Export
In 2023, we aimed to increase the international spread of our digital services and technologies through our global collaborations
and closely monitored opportunities.
In 2024, we will continue our efforts to expand the spread of our solutions by deepening in new markets where we will offer our
international services and services.
The Place for Youngsters to Have Fun
and Win: GNÇ
GNÇ, the most popular mobile applica-
tion among young people, underwent
a new design process in 2023. With
the new design, the benefits and paid
content within the application became
much more visible. As a result, it was bet-
ter positioned for young people as the
"shortcut to winning while having fun".
As a result, the application's score in the
Apple Store and Play Store increased
by 0.8 points out of 5. The Apple Store
rose from 2.6 to 3.5 and the Play Store
from 3.0 to 3.9.
With this score increase and in-app
innovations, GNÇ exceeded 19 million
downloads this year, once again be-
coming one of Türkiye's top 5 apps in the
entertainment category. GNÇ, which
surpassed 5 million in 3 month-active-
ness, increased its application revenue
to a record level in 2023.
While Çatlat, the most popular internet
campaign among young people, had
over 91 million participants this year, our
new campaign GNÇ Galaksi allowed
young people to win vouchers from
their favourite brands with the stars
they collected in the application. In GNÇ
Galaxy, 32 million stars were collected,
resulting in 550 thousand prizes in the
Galaxy, where users who completed the
stars won dozens of benefits.
In 2023, when we developed our game
content, 5 new free games and 1 new
paid game met with the young people
in the application. The total number of
games played exceeded 7.5 million. In
2024, we will continue to engage young
people with our innovations with our
AI-powered gaming platform, while
increasing interaction with our game
content with the PvP (player vs. player)
structure that users can play against
each other.
Finally, in 2023, we launched GNÇ UP, a
new video and social media platform,
to add another dimension to the GNÇ
application, which is active in the en-
tertainment category. In 2024, we will
strengthen GNÇ UP, which has reached
over 1 million views in 7 months, to offer a
unique experience by feeding it with an
artificial intelligence approach.
Strengthened by our user-friendly expe-
rience in our completely renewed ap-
plication in 2023, we will continue to be
the most favorite application of young
people with our rich and entertaining
content by moving forward in 2024 with
a more technology-centered and user
experience-oriented approach.
Our Segments
Turkcell's World of Privileges:
Platinum
In 2023, we brought content suitable
for our rejuvenated audience and new
trends to our customers in the Platinum
application. We launched the privilege
of exclusive membership for our cus-
tomers on Türkiye's leading digital plat-
forms. With the "Surprise of the Week",
we increased our online benefits and
brand diversity that are valid on Tür-
kiye's leading e-commerce platforms,
and continued to offer thousands of
gifts from different brands every week.
We continued to give our customers
the latest devices and accessories with
our regular "Dream Gifts" draws. Gift
Coffee became one of our most pop-
ular campaigns. Our popular Platinum
GB Hunt game continued to give cus-
tomers the chance to win mobile inter-
net while having fun. In November, we
held the Platinum Offroad Challenge,
one of the most prestigious events, at
Turkcell Platinum Park. With car rentals,
discounts at exclusive brands, Havaş
and many other privileges, the Plati-
num Privilege Programme was visited
around 23 million times in 2023. Our
brand enriched the lives of our custom-
ers with our sponsorships and privileg-
es such as Turkcell Platinum Park, Zorlu
PSM, Turkcell Vadi, Winter and Summer.
You can review the
Turkcell Platinum application to
discover the privileged opportunity
world of Turkcell Platinum.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Shake and Win Continued to Put a
Smile on the Faces of Our Customers
Thanks to Shake and Win, one of Turk-
cell's most popular and well-attended
campaigns, we continued to make our
customers smile with rich gift options
this year. In 2023, we distributed millions
of gifts every week. We will continue to
innovate the Salla Kazan campaign and
the gifts we offer in line with the chang-
ing needs of our customers over time.
We continued our Shake and Win set-
ups for special periods such as Ram-
adan and the 100th anniversary of the
Republic. In the coming years, we will
continue to let our customers experi-
ence the richness of Turkcell and con-
tribute to our company's KPIs with our
Shake and Win innovations.
Turkcell Biz
Turkcell Biz has been in our lives since
September 2020 and has created a
difference by offering features like free-
of-charge GB transfers, which our cus-
tomers had been expecting. It has been
successful in terms of originality and has
reached a wide audience as a value in
line with Turkcell’s innovative image.
Turkcell Bizce, the Application of
Active Women, Became Women's
Favourite Application
We continued to offer brand new fea-
tures and content to meet the changing
needs of our female customers with the
renewed Turkcell Bizce, which we aim
it to be the most popular application
among women by increasing interac-
tion through innovative approaches and
creating pleasant moments. Inspired by
the "Just For You ToSmile" sweepstakes,
which we held for the first time with ar-
tificial intelligence technology, our users
showed high participation in the "Au-
tumn Sweepstakes", where participants
took part in the sweepstakes with flow-
er and tree photos using our artificial
intelligence-based photo recognition
infrastructure to celebrate autumn, and
the "New Year Sweepstakes", which we
designed to celebrate the New Year. In
total, 500 thousand people took part
in the competitions we ran throughout
the year. Our "Collect Coupons" cam-
paign, which we have been running for
four years, taking into account women's
past habit of collecting coupons, con-
tinued this year with innovations. In our
campaign, where approximately 10.5
million coupons were issued, our users
redeemed their coupons by converting
them into GB or branded gift vouch-
ers. Around 700 thousand gifts were
redeemed in this way. Our brand new
games "Is It Him or Her?", "Which One Is
You?" and "Hint", which we designed for
our users to have fun, were played 4.8
million times. The games "Win GB with
a Pair", "Winning Words" and "4 Trans-
actions with Plenty of GB" were played
175 thousand times. While we hosted
experts on Our Forum platform, where
many different questions on women's
minds, from health to food, were an-
swered by experts with videos. In the
"Get Inspired" and "Do It Yourself" cat-
egories, we shared success stories, re-
pairs, recipes, crafts and personal de-
velopment videos that our users could
be inspired by, with videos narrated by
women. Our customers listed discounts
120 thousand times with 'Share Discount'.
By collaborating with different brands,
we offered various discounts and ben-
efits to Bizce users.
Turkcell Kid
With the rich in content and advanta-
geous offers specific to children aged
7-15, Turkcell Kid packages are inno-
vative plans for the children’s segment
providing umbrella solutions to address
security concerns of parents with fea-
tures allowing them to manage their
children’s mobile usage. These pack-
ages have been offered to parents first
by Turkcell, after analyzing their needs
and bringing together the solutions
suitable for them. Turkcell has owned
the children’s segment 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.
As the Turkcell family, we
aim to make our customers
feel "Safe, Valuable,
Happy" in every step we
take, in all the products
and services we design,
and to provide them with
an "easy, personalized and
consistent" experience in
line with our "Our Brand
and Our Connection with
Customers" initiative.
Our Customer Relations
Customer Satisfaction and
Loyalty
We want all Turkcell employees to
make decisions with the awareness
of "I am here for my customer" and
we take care to consider the Turkcell
Experience Principles when making
these decisions. As part of our peo-
ple-oriented communication, we listen
to the opinions of our customers and
consider their needs, suggestions and
requirements. Above all, we want to
contribute to the elimination of social
inequalities by making our products
and services, which are designed to
create value for people, accessible to
everyone. We consider the high level of
customer satisfaction that is the result
of all these efforts to be one of the most
important measures of our success.
In line with the goal of managing the
wealth of channels Turkcell offers
its customers as "One Turkcell", "Om-
nichannel Experience" is one of our
priorities in customer relationship man-
agement. With our Omnichannel pro-
ject, we aim to provide an integrated
experience where our customers do
not have to repeat the same informa-
tion in their interactions across Turkcell
channels, where we surprise them with
our technology, and where channels
are managed in harmony in the cus-
tomer journey.
Customer Orientated
Company Culture
We aim to create and implement inno-
vative solutions that contribute to the
lives of our customers with the partic-
ipation of our employees in order to
improve the customer experience by
keeping the customer-centric culture
alive throughout Turkcell.
For this purpose, in 2023 we came to-
gether with our locations in different re-
gions of Türkiye and organised "Hacx-
athon" experience competitions with
our representatives. We answered the
questions of our employees in our loca-
tions in the "Voice on Rota" sessions. We
listened to calls in all locations and to-
gether with our teams we took meas-
ures for improvement.
As Turkcell, we will continue to listen
to our customers and stand by them
with the solutions we produce for their
needs, with the awareness that there
is always something better for our
customers.
Customer Satisfaction Management
As part of our people-focused ap-
proach, our Customer Satisfaction Pol-
icy commits us to resolving our custom-
ers' concerns in an open, transparent,
fast and reliable manner. We also want
to design all our processes with our cus-
tomers in mind. To this end, this year we
launched our TX-Cube design space,
which is designed to stimulate innova-
tion, encourage a user-centric mindset
and provide an environment where we
can work with multi-disciplinary teams
to design differentiated products and
customer journeys. In the TX-Cube, we
develop our new strategies, improve
our customer touch points and try to
develop projects that contribute to ef-
ficiency and digitalization.
We continue our efforts to strengthen
the bond with our customers across
channels, to closely monitor customer
sentiment and to create products, ser-
vices and journeys that best meet our
customers' needs. In line with our cus-
tomer experience strategies, we set,
target and monitor our customer expe-
rience performance metrics each year.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Artificial
Experience
Intelligence
in Customer
To provide a better experience for our
customers, we have made listening,
understanding and empathizing with
our customers our core principles. In
this context, we can instantly under-
stand the voice of our customers with
our text and voice analytics capabil-
ities integrated with artificial intelli-
gence technologies and work to pro-
vide better services to our customers.
Turkcell Asistan, Turkcell's artificial in-
telligence-powered digital assistant,
is a strategic milestone in the com-
pany's digital transformation journey.
locally by Turk-
Developed entirely
cell engineers, the chatbot operates
within Turkcell's mobile applications
and provides 24/7 mobile and fixed-
line service on hundreds of
issues
ranging from billing transactions to
international service settings, pack-
age information and special offers. In
2023, Turkcell Asistan conducted 89
million conversations with 15 million
customers, successfully completing
98% of transactions on average on
first contact. This innovative platform
plays a critical role in the mobile infra-
structure of Turkcell's application and
enriches the customer experience. In
the coming years, we will continue to
make significant investments to im-
prove our contribution to the custom-
er experience and enrich it with new
technologies.
The Turkcell Voice Response System is
evolving every day to provide a pro-
active and personalised service by
anticipating the needs of customers.
With the proactive activities we add-
ed in 2023, we continue to support our
customers in 6 million calls per month.
Our voice response system, powered
by artificial intelligence, provides pro-
active information and personalised
suggestions on a wide range of top-
ics, from billing to parcel information.
Average Response Time of All Media and Accounts (minutes)
2019
20
2020
18
2021
17
2022
12
2023
12
For example, if a customer's contract
is coming to an end or their pack-
age is about to expire, special offers
are proactively recommended to our
customer, and the package informa-
tion provided in these recommenda-
tions is read out by an artificial intel-
ligence voice. Or, if our customer has
been called by Turkcell for some rea-
son and could not pick up the phone,
when he calls Turkcell back, he will
receive information about why he was
called before he says anything, and
offers suitable for his needs will be
presented.
In social media, we serve our users
24/7 with a total of 65 accounts on
Facebook, X (Twitter), Instagram, You-
Tube, LinkedIn and Tiktok (6 channels).
We coordinate a total of 1 million piec-
es of social media content per year.
We support our digital applications by
establishing dialogues with users ac-
cording to the nature of the channels
and our brand positioning.
At the same time, we index 10 million
pieces of social data each year us-
ing our artificial intelligence analytics
models and take various actions to
improve both reputation management
and customer experience.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Value-oriented and responsible supply chain management
We evaluate the activities
and practices of every
company in our supply
chain, the products and
services we purchase,
and every process in our
supply chain management
within our value creation
principle. With the aim
of making our supply
network agile, flexible, and
sustainable in our activities
in Türkiye and abroad,
we are restructuring our
main business processes,
logistics, and technologies
with a holistic approach,
with the support of our
suppliers.
We sign a framework contract with
each company we work with in our
supply chain; our policies and contracts
guarantee our ethical, fair and honest
business practices. In this contract, we
ensure compliance with our principles
on issues such as workers' rights, no use
of child labour and no use of forced
or bonded labour. As part of the child
labour clause in our framework agree-
ment, the clause "The company shall
not use child labour" is included. In this
context, We joined the Alliance 8.7 Ac-
tion Pledge to end child labour. Unless
a higher age limit is required by local
law, "No person under the age of 15 (as
defined in International Labour Organ-
ization Convention No. 138) who has
not completed compulsory education
shall be employed. Employees under
18 years of age shall not be employed
in hazardous work and shall not be
employed in night work to meet their
educational needs" by our suppliers.
To prevent forced labour, we also en-
sure that "no employee shall be forced
to work in any situation". This require-
ment includes forced labour in prisons,
forced labour for high-interest loans
or other forms". We ensure the ethical
management of our business process-
es. If a supplier fails to meet the require-
ments of the clause, we will identify the
breach of the framework contract and
activate the relevant penalty clause.
With our Supplier Code of Conduct,
Human Rights, Environment, Anti-Brib-
ery and Anti-Corruption Policies pub-
lished on the Turkcell Supplier Portal,
we expect our supplier ecosystem to
conduct all labour-employer relations
within the framework of respecting
workers' rights with an environmentally
and humanely sensitive management
approach. In addition, we require all
suppliers we work with to approve
their environmental and human rights
policies during the registration process
of our supplier management system.
As Turkcell, we provide services that di-
rectly touch people at every moment.
Working with suppliers that do not
cause possible service disruptions that
could have a direct negative impact on
the vital needs of our society, such as
communication, health and safety, is of
great importance in terms of the prod-
ucts or services offered to our custom-
ers. We select all suppliers with whom
we will work on the basis of mutual trust
as well as characteristics such as value
for money, past performance, market
conditions and references. In our evalu-
ations, we give priority to potential sup-
pliers who have quality management
and information security management
certificates, are sensitive to environ-
mental balance and work within the
framework of social responsibility prin-
ciples, among other basic criteria. In this
context, in our critical hardware and
software categories that impact our
network, we evaluate candidates and
the products and services they offer in
terms of sustainability with a weight of
5-10% in the technical evaluation during
the tender process.
We assess the process maturity of our
critical suppliers, which represent the
majority of our purchasing volume, in
the areas of management systems, hu-
man rights, environment, sustainable
supply chain,
legal compliance and
occupational health and safety. After
the assessment, we share their scores,
areas for improvement and the Supplier
Sustainability Roadmap that we expect
all our suppliers to follow. For suppliers
with less than 70 points, we assign train-
ing that includes general sustainability
training and the Supply Chain Sustain-
ability Journey that we have prepared
through Turkcell Academy.
䩉ISO 9001 Quality Management Sys-
tem and ISO 27001 Information Secu-
rity Management System
䩉Customs Law No. 4458 and Free
Zones Legislation
䩉Liabilities regarding other countries
that we operate in (Ukraine, Belarus,
TRNC)
We received the highest score of A
in the CDP Supplier Relations Rating,
which assesses priority actions and
strategies to reduce greenhouse gas
emissions and climate change risk
throughout the supply chain.
As part of our 2024-2026 strategic
goals, we will address supply chain
sustainability transformation. We aim
to improve the sustainability perfor-
mance of our suppliers through ac-
tions such as improving the ESG per-
formance of our supplier ecosystem,
taking action to measure and reduce
emissions in critical categories, sus-
tainable
logistics management and
increasing supplier diversity.
We are applying cost analysis and dy-
namic working principles to the man-
agement of our procurement process-
es, prioritising practices that will deliver
savings by using the integrative power
of technology to evaluate processes.
Our boxes are
made from
100%
recyclable materials.
By creating year-round material re-
quirement plans for our network, we
deliver the right amount of material to
our regions at the right time to meet the
needs of the field through our region-
al warehouse organisation and “push”
principle. In this way, we minimise pur-
chasing, logistics and inventory costs by
avoiding unnecessary or excessive de-
mand. In addition, for our e-commerce
products, we define the product width,
length and height values at the point
of receipt and ensure that the system
selects the most appropriate box for
the product size at the point of pack-
ing. Whereas our smallest boxes used
to be SIZE 3, we are now producing
smaller SIZE 1 boxes and ensuring that
our products such as mobile phones,
wired and wireless headphones etc.
are shipped in these boxes.
We classify our purchasing categories
according to the Kraljic Matrix. Accord-
ing to this classification, we evaluate
our suppliers whose purchase volume
exceeds a certain amount in the rele-
vant categories under the headings of
commercial, quality, delivery, process
management and communication, in-
novation and business continuity. As
part of our value-based and respon-
sible supply chain practices, we imple-
ment complaint procedures in accord-
ance with the key contractual clauses,
in line with feedback from general cus-
tomer communication channels or
business units, business owner and
buyer evaluations through surveys,
and ensure that corrective actions
are implemented quickly. We measure
supplier compliance through regular
assessments and audits and report to
senior management. In 2023, we are
proud to announce that we have not
identified any cases where our supply
chain and suppliers have caused or
may cause negative environmental or
social impacts.
As Turkcell Group, we keep in mind
ethical elements, anti-corruption and
social contribution in all processes of
our procurement management struc-
ture, which we address under 4 main
headings as strategy, people, process
and implementation, and we realise
our activities with a transparent un-
derstanding towards our stakeholders.
We follow national and international
standards to make our procurement
processes fully transparent. We con-
duct our procurement processes
in
such a way that the following rules and
standards are continuously met:
䩉Sarbanes-Oxley Act (SOX)
䩉Security Exchange Commission (SEC)
Regulations
䩉Foreign Corrupt Practices Act (FCPA)
(CMB)
䩉Capital Markets Board
Regulations
䩉Information
Communica-
and
tion Technologies Authority (ICTA)
Regulations
䩉Liabilities regarding the Turkish Code
of Commerce (TTK)
䩉Liabilities regarding the Turkish Penal
Code (TCK)
䩉Liabilities regarding the Turkish Tax
Legislation
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL presented our Supplier Based Innova-
tion, Localism and My Big Partner pro-
grammes, which we are implementing
to develop the ecosystem. We shared
our communication channels with our
businesses for new idea submissions.
Localisation Efforts
We support domestic and national
technological transformation to con-
tribute to the growth and sustainability
of entrepreneurial activities in Türkiye.
In this context, we carry out category
localisation activities, supplier rela-
tions, technopolis relations and entre-
preneur support programmes (My Prin-
cipal Partner Program), efforts to bring
global investments to Türkiye, Commer-
cial Attaché Office and coordination
of all internal stakeholders. We believe
that localisation efforts are critical as
they have a direct impact on our rela-
tionship with the local ecosystem and
ICTA. As part of Turkcell's localisation
initiative, we are prioritising domestic
suppliers for our network technologies,
software and other value-added tech-
nology needs, and we are continuing
our category-based indigenisation ef-
forts with teams consisting of demand
and procurement experts.
We are undertaking project devel-
opment activities with manufacturing
companies to support our manufactur-
ers in our localisation efforts. Examples
of these efforts include the localisation
of a critical application that generates
alerts for problems in our fixed and mo-
bile networks and performs cross-de-
vice impact analysis, and the devel-
opment of a single package of access
and security services that we previous-
ly imported with our local supplier to
provide local services to our enterprise
customers.
Our definition of localisation is that
for product purchases, the product is
manufactured in Türkiye, and for ser-
vice purchases, local labour is used.
In 2023, our localisation rate with our
main suppliers, which represents ap-
proximately 90% of our total procure-
ment volume, was 64%.
By reducing the volume of our box-
es in our shipments, we both reduce
the amount of paper used and avoid
excessive logistics by increasing the
amount of products transported at one
time. At the same time, our boxes are
made from 100% recyclable materials.
By implementing the digital delivery
and activation process for our SIM card
order deliveries, we have eliminated
the printing of 427 thousand units of
paper per year. By eliminating the use
of nylon in our e-commerce orders, we
have avoided the use of approximately
20 kilometres of plastic. We achieved a
33% fuel saving by carrying out the or-
der preparation process in the provinc-
es where the order is placed.
instead of paper posters
We apply sustainability principles to
our Construction Dealer Management
processes. We favour recycled options
in the LTV materials we use in our stores.
We save paper and ink by using remote
screens
in
stores and by taking signatures on tab-
lets instead of paper contracts with our
customers. We use slim, energy-saving
LED products in lighting fixtures. We have
converted a total of 103 stores, at least
one in every province, into accessible
stores that can be used and accessed
by our customers with disabilities.
Supplier Ecosystem
Management
We position our value-focused efforts
with our suppliers under a single team
to ensure rapid applicability. Our Inno-
vation and Ecosystem Relations Process
Management team under the Supply
Chain Process Development team, car-
ries out localisation studies, SME and
start-up support programmes, cooper-
ation with international and local sec-
toral organisations, supplier-focused
innovation studies, supplier diversity
and development, risk and sustainability
analysis studies.
As every year, we held the Turkcell Sup-
plier Summit event in 2023, where we
physically came together with our sup-
plier ecosystem with the participation
of our suppliers. As part of the event, we
Supplier-Oriented Innovation
Projects
The Supplier-Oriented Innovation Pro-
gramme, which was launched in 2020
to encourage innovation in the supplier
ecosystem, projects innovative ideas
from suppliers with contributions from
the relevant business units and pur-
chasing managers. The projects are
presented to the Supplier-Oriented
Innovation and Localisation Commit-
includes Turkcell’s senior
tee, which
jurors, with a
management teamas
presentation that includes additional
savings, process and quality improve-
ment, revenue potential and sustaina-
bility contributions. Efforts are made to
implement the successful projects.
Examples of some of the projects ap-
proved by the committee include the
development of a low-cost domestic
network inventory management sys-
tem, the development of access and
security services as a single package
with our local company and the pro-
vision of this service to our customers
who normally cannot receive security
services, the rebuilding and author-
isation of our common area and the
development of an active directory
management application and product
partnership, The use of solar panels for
the energy needs of field equipment,
the production of composite manholes
for fiber optic boxes that are less costly
and pose fewer health and safety risks,
the development of nano-trenching
vehicles that increase operational ef-
ficiency with shorter excavation sec-
tions and cause the least disturbance
to the environment, the use of mobile
caravans instead of mobile vehicles to
provide shooting support to regions for
uninterrupted communications.
By the end of 2023, the programme will
have evaluated 100 ideas, submitted 14
to the committee and approved and
implemented 11.
Thanks to the composite manholes de-
veloped and used in our fields within
the framework of Supplier Axis Innova-
tion, we have been able to manage our
operations in a more environmentally
friendly and faster way by avoiding the
use of cranes.
In 2023, our localisation
rate with our main
suppliers, which represents
approximately
procurement volume, was
90%of our total
64%
In 2020, within the framework of
the new procurement model we
developed, we continue to visit
technoparks and support their
promotion in order to support
start-up companies.
With the My Principal
Partner Programme
developed in this
context, as of the
end of 2023, we
concluded 48
business agreements
with 36 companies
affiliated with 20
technoparks in
12 provinces and
created a transaction
volume of TRY 28.8
million.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL environmental issues, have strong com-
munication skills and use technology. In
this context, the activities and events we
carried out in 2023 prioritised projects
with a focus on helping the victims of
the February 6 earthquake.
The Digital Spring Project
We have not forgotten our elderly
people living in nursing homes and
have set up Digital Spring Technol-
ogy Rooms where they can experi-
ence technology to make them more
connected to life with our technology.
Thanks to Turkcell's digital applications,
elderly people living in nursing homes
can watch TV, listen to music, make
video calls with their relatives, make
transactions through e-government,
play digital games and experience dif-
ferent beauties of our country in a vir-
tual environment with VR glasses. With
this project, we opened Digital Spring
technology halls in Osmaniye, Adana,
Aydın, Samsun and Erzincan in 2023. We
continued to bring our elders together
with technology by reaching a total of
10 nursing homes in Ankara, Bursa, Izmir,
Osmaniye, and İstanbul that were pre-
viously included in our project.
Digital Literacy Programme
We are expanding our digital litera-
cy training and supporting it through
various channels to meet the grow-
ing need for digitalisation, which is in-
creasing day by day as the pandemic
progresses, and the growing needs of
women and middle-aged people who
have not yet been exposed to these
applications. With our Digital Spring
project, we are ensuring that our el-
derly can safely encounter the online
world with these trainings in the tech-
nology classes we have set up in nurs-
ing homes.
Equality of Digital and
Social Opportunity
As Turkcell, with the restorative and
equalising power of technology, we
provide equal access to information
for children, women, the disabled, the
elderly and people with low incomes,
"leaving no one behind", and we strive
to inspire and unlock potential. Through
our projects, sponsorships and events
across many sectors, we transform the
power of technology into benefits for
all, with an inclusive and sustainable
approach.
Accessibility in Service
Processes
We have prepared sign lan-
guage and audio narrated ver-
sions of information packages
such as payment service agree-
ments, resolution of various dis-
putes, product usage and sim-
ilar information packages that
directly affect customers but
are not easily accessible to our
visually and hearing-impaired
customers and made
them
available on our corporate
website.
Our customers can now re-
language video
ceive sign
service every day of the week
between 10:00 am and 1:45 am
by accessing our face-to-face
customer service through the
Turkcell mobile application, My
Sign Language and BiP appli-
cations, and at Turkcell and Su-
peronline stores. With this ser-
vice model, which is free for our
customers,
hearing-impaired
outgoing and return calls can
be made to our customers. If our
customers wish, they can reach
our call centre by clicking on the
link in the message that follows
the SMS sent to them. We serve
approximately 3,000 hearing
impaired customers per month
through our video call centre.
Social Investment and
Sponsorship Projects
We have believed in the levelling power
of technology since the day we were
founded, and in all of our social respon-
sibility projects and access to informa-
tion, we aim to ensure that everyone
can participate equally in life, leaving
no one behind, and we carry out our
social inclusion projects in this direction.
By allocating up to 1% of our turnover
each year to social investment projects,
we are making a difference in society,
with the aim of contributing to the cre-
ation of a more livable world, and we
strive to ensure social development and
environmental sustainability in all our
activities.
We strive to make sport, culture and
the arts equally accessible to all. We
provide sponsorship to ensure that all
sports, cultural and artistic activities are
accessible to women and men, chil-
dren and the elderly, and people with
disabilities.
For many years, we have continued our
pioneering efforts for the development
of culture, arts and sports in Türkiye, and
for our artists and athletes to be praised
in the national and international arena.
We continue to contribute to our coun-
try by supporting congresses, confer-
ences and events in many fields such
as technology, health, environment,
energy, economics, marketing and in-
formation technology, as well as sports,
culture and the arts.
Turkcell Foundation
We continue to execute projects that
serve both our country and all humani-
ty with the Turkcell Foundation, which is
backed by the strength and trust of the
Turkcell brand.
Turkcell Volunteers
Turkcell Volunteers, which was estab-
lished by our employees coming to-
gether to create social benefit and
awareness, continued to create value in
2023. Through Turkcell Volunteers, which
is entirely funded by donations from
Turkcell Group employees, we carry out
voluntary social benefit projects with
participants who are interested in de-
veloping projects related to social and
Galakcell
While the
Internet provides equal
access to information for everyone, it
also opens the door to a world with-
out boundaries. One of the most im-
portant ways for parents to protect
their children from the dangers they
may not be aware of is to prepare
them for the Internet. As Türkiye's Turk-
cell, we have taken another step to
prevent the risks that the digital world
can bring, while strengthening equal
opportunities with the services we
offer. We developed the Galakcell
game, which aims to teach children
about information security in the dig-
ital world through an educational
game, and made it available free of
charge from August 2023. Galakcell
addresses many
issues,
from cyberbullying to information se-
curity, from website safety to setting
personal boundaries. The project will
ensure that children learn about these
difficult topics in a fun, playful way.
As well as teaching children how to
use technology properly, the project
also aims to raise awareness among
identify
parents. The
the children's strengths in the area of
digital information security and the
areas in which they need to improve.
In the report section, parents can fol-
low their children's development. In
this way, parents can check whether
their children, who have acquired ba-
sic and safe information about digital
footprint and digital citizenship, are
ready for the online world. In addition,
Turkcell Kids users can play Galakcell
without using their data.
in-game tests
important
Close to Life Project
We are meeting the counselling and
psychological needs of children with
autism and
through
the Close to Life Project, which we
launched in partnership with the To-
hum Autism Foundation to support
children with autism and their families
across Türkiye.
families
their
With BiP, the communication and life
platform that uses technology to over-
come barriers, we have created a
communication channel where fam-
ilies of children with autism can find
answers to their questions about au-
tism and special education from expert
doctors and teachers.
Whiz Kids Project
Turkcell's Whiz Kids project, in cooperation with the Ministry of National
Education, aims to introduce Türkiye's talented students to technology and
help them discover and develop their talents at an early age. At Whiz Kids
Technology Laboratories, which we have established in Science and Art
Centres (BİLSEM) across Türkiye, we provide our students with opportu-
nities such as laptops, 3D printers, electronic and robotic coding kits and
toolkits; we ensure that children receive training in artificial intelligence,
coding, space science, robotics, smart home and cloud technologies, and
support them in developing projects in these areas.
Under the Turkcell Whiz Kids Project, we have reached a total of 76 lab-
oratories in 48 cities. Through the project, we also organise face-to-face
technology workshops for students to understand basic coding logic. As
part of this, we provided basic algorithm and coding training to more than
1,000 students at Teknofest Ankara and Istanbul events this year.
In the Zekathon Tournament organised as part of the project in cooper-
ation with the Ministry of National Education, talented students studying
at Science and Art Centres (BİLSEM) developed project ideas by finding
solutions to problems related to the environment and sustainability. In the
tournament, which was attended by 163 school teams from all over Türkiye,
students developed project proposals on topics ranging from an artificially
intelligent recycling box to a smart manhole cover, from a disaster search
and rescue robot to Turkcell's energy system project for drying fruits and
vegetables in high-humidity areas.
Following the earthquakes on February 6, 2023, we established and
launched the BİLSEM Technology and Education Room container in
Kırıkhan, Hatay, in cooperation with the Ministry of National Education, to
provide psychosocial support to children in the disaster area and contrib-
ute to their social development. In the container, which can be used by chil-
dren between the ages of 6 and 18, experienced teachers from the Ministry
of National Education organise workshops for children on robot coding,
astronomy, educational games, sports, music, painting, and art. The BİLSEM
Technology and Education Room has a library for children's development,
as well as computers, tablets, TVs and projectors for training. For outdoor
activities, there is equipment that facilitates physical conditions such as
awnings and sinks.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Sports Sponsorships
National Football A Team
Sponsorship
Since 2005, we have been the main
sponsor of the men's and women's na-
tional A football teams, which we start-
ed in 2002 as "Official Communications
Sponsor". After more than 20 years of
proud support, our Men's National A
Football Team qualified for the Europe-
an Football Championship in Germa-
ny in June 2024 following their success
in qualifying. Our women's A nation-
al football team, competing in UEFA
Nations C League Group 2, defeated
Georgia in December and finished the
group matches with 18 full points, mak-
ing 6 out of 6. We continue to support
our men's and women's national foot-
ball teams in international tournaments
for the development of national foot-
ball. We believe that they will make our
country proud with new achievements
in these tournaments.
Turkcell Women's Football
Super League
With an understanding of equal ac-
cess to sport, we are taking steps to
develop the rapidly developing and
growing women's football sector in
our country. We continue to work to
bring the Turkcell Women's Football
Super League, of which we are the
main sponsor, to a wider audience
and to raise awareness of women's
football. We ensured that the play-
offs and finals of the Turkcell Wom-
en's Football Super League, which has
seen rapidly growing interest over the
past three seasons, were broadcast
on TV channels and digital channels
for the first time.
Turkcell Super Cup
Within the scope of our agreement
with the Turkish Football Federation,
we continue our sponsorship support
in the field of football with the Turkcell
Super Cup, which brings together the
champion teams of the Super League
and the Turkish Cup, which we have
supported in previous years.
e-National Teams Sponsorship
In 2021, we expanded our cooperation
with the Turkish Football Federation
in the field of digital games and be-
came the name sponsor of the player
selection process for the newly es-
tablished e-National Teams
in FIFA
and PES games. We also became the
main sponsor of the e-National Teams,
where we held a selection period un-
der the name Turkcell e-National Team
Selection. We believe that our national
teams will successfully represent our
in these newly established
country
branches.
Athletics National Team
Sponsorship
As Turkcell, we attach importance to
all sports and do our best to develop
them. We are continuing the Athlet-
ics Project that we launched in 2013 in
cooperation with the Turkish Athletics
Federation. Through this project, we
are providing the largest and long-
est-term support to amateur sport in
Türkiye to date. We support the expan-
sion of sport in our country by working
with federations to implement innova-
tive and modern management models,
expand the pool of young athletes, en-
sure the continuity of athlete develop-
ment in the elite category, and institu-
tional and technological development.
Under the main sponsorship of Turk-
cell, our country continued its success
in athletics in the 2023 season. Our
athletes won a total of 197 medals in
international athletics tournaments. In
addition to these achievements, the
number of active athletes reached 52
thousand and the number of licensed
athletes reached 341 thousand in 2023.
The number of active
athletes reached
52 thousand
and the number
of licensed
athletes reached
341 thousand
in 2023.
Turkish Sports Federation for
the Physically Disabled
We expanded our cooperation, which
started in 2016 with the football branch
of the Turkish Sports Federation for the
Physically Disabled, to 18 different dis-
abled sports branches (amputee foot-
ball, basketball, shooting, arm wres-
tling, archery, swimming, sailing, tennis,
badminton, athletics, sitting volleyball,
table tennis, weightlifting, boccia, ski-
ing, dance, curling, fencing). With this
sponsorship, we have supported more
than 2,800 licensed athletes, both men
and women, in all branches. Our Am-
putee National Football Team, which
is the European Champion and World
Champion twice in a row, will represent
our country at the European World
Championships in France in 2024.
Turkish Federation of
Traditional Sport Branches
By becoming the main sponsor of the
Turkish Federation of Traditional Sports
Branches to support traditional sports
in our country, we aim to promote and
make our ancestral sports successful
at the national and international level
in 9 sports branches, namely Jereed,
Ambling Gait, Horseback Archery, Aba
Wrestling, Salwar Wrestling, Belt Wres-
tling, Traditional Sleigh, Sleigh and Kok-
boru, with 247 clubs, more than 20,000
athletes, 351 coaches and 1,700 referees
in 64 provinces. In order to enhance the
reputation of our traditional sports and
ensure their future success, we are cre-
ating opportunities for these culturally
specific sports to become more wide-
spread and are encouraging young
people to take up these sports as part
of their healthy, active and successful
upbringing.
Türkiye Athletic Talent
Screening and Orientation to
Sports Project
We were the Official Sponsor from 2018
to March 2023 of the Türkiye Athletic
Talent Screening and Orientation to
Sports Project, jointly initiated by the
Ministry of Youth and Sports and the
Ministry of National Education. Our aim
was to involve at least 1 million primary
school pupils in the project each year.
Through the project, we ensured that
4,000 students were recruited into the
professional athlete pool each year,
and we encouraged children who did
not make it into the athlete pool to con-
tinue their sports activities by directing
them to provincial sports centres. With
this project, which was initiated with
the aim of revealing Türkiye's young
talents, we were deemed worthy of an
award in the Sponsorship Communica-
tion - Sports category in 2019.
Turkcell Granfondo Cycling
Race
In 2023, our physically disabled athletes, who participated in World
Championships, European Championships and international tournaments
with Turkcell sponsorship, achieved the following successes.
Sport Division
Gold
Silver
Bronze
Total
Athletics
Arm Wrestling
Badminton
Ts Tennis
Ts Dance
Swimming
General Total
10
18
7
8
3
-
46
3
12
5
3
2
-
25
-
3
16
-
-
2
21
13
33
28
11
5
2
92
Istanbul,
inTürkiye
To increase awareness of bicycle use
for a sustainable environment and to
support bicycle usage in Türkiye, we
initiated the road bike race, Turkcell
GranFondo
Istan-
bul-Beykoz in 2023. Nearly 2,000 am-
ateur and professional cyclists from 38
international countries
national and
took part in the race, which was started
by the Minister of Youth and Sports, Os-
man Aşkın Bak. We participated in the
event with our brands Paycell, Pasaj,
fizy, BiP, GAME+ and Lifebox.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Zorlu PSM (Performing Arts
Centre)
Since 2018, Zorlu Performing Arts
Centre's (PSM) main drama stage,
which is our venue sponsor un-
der the name "Turkcell Stage", has
been hosting world-renowned
shows and performances. In ad-
dition, Zorlu PSM's theatre stage
continues to welcome art lovers
as "Turkcell Platinum Stage". All
cultural and artistic events such
as musicals, concerts and plays
are held on Turkcell stages.
As part of the cooperation with
Zorlu PSM, we have hosted near-
ly 2 million visitors in nearly 2,000
events since 2018. As part of our
accessibility approach, we have
hosted visually impaired art lov-
ers at events such as theatre and
musicals held on the Zorlu PSM
Turkcell Platinum Stage with My
Dream Partner live description
technology.
Our Other Sponsorship
Projects
Turkcell Platinum Park
With Turkcell Platinum Park, which was
opened on 200 acres of land in Maslak,
we offer our customers and society
the opportunity to escape the monot-
ony of city life. Since 2018, the number
of visitors to Turkcell Platinum Park has
exceeded 1 million. In addition, Turkcell
Platinum Park, which brings together
off-road enthusiasts, is located both in
the centre of Istanbul and in the middle
of nature, while offering many experi-
ences with special benefits to its cus-
tomers. Our Turkcell Platinum custom-
ers can enjoy many outdoor activities
such as off-road, archery, jungle run
and open-air cinema at the same time.
The outdoor activities at Turkcell Plat-
inum Park, where families can come
and spend a pleasant time with their
children, teach children at a young age
about life in nature in a fun way. With
the 4th annual Offroad Challenge Race
in 2023, we enhance our messaging to
supports both the venue and the Plati-
num brand image.
Summer and Winter Locations
As Turkcell, we continue to offer Plati-
num advantages to our customers in
Kartalkaya, one of the most important
ski resorts of our country, which has
been visited by more than 500 thou-
sand people in the season since 2014. In
addition, we provide special privileges
and advantages to our subscribers by
integrating our different brands at ex-
clusive beaches in Çeşme and Bodrum
in summer.
TEKNOFEST Aviation, Space
and Technology Festival
A total of 4.6 million people attended
TEKNOFEST, the Aerospace and Tech-
nology Festival held in Istanbul, Ankara,
and İzmir on the occasion of the 100th
anniversary of the Republic. The fes-
tival was watched from many regions
of our country and the world thanks
to broadcasts on television screens
and digital platforms. With its technol-
ogy competitions, entrepreneurship
programme, breathtaking air shows,
award ceremonies, your stage, edu-
cational workshops, exhibitions, stage
games, special flight experiences for
children, TEKNOFEST provided visi-
tors with unforgettable moments full
of science and technology in our three
major cities in 2023. As Turkcell, we also
participated in these festivals with our
products and services. By providing
coding training for children, we helped
them feel safe in the online world.
Sectoral Supports
As Turkcell, we aim to extend our lead-
ing position in the telecommunications
sector to different sectors, adopt in-
novative approaches and contribute
to the development of the respective
sector. In this direction, we sponsor
congresses and conferences on many
topics ranging from HR applications
to digital marketing, from supply chain
management to aerospace technol-
ogies, from cybersecurity to techfin
solutions. Through our sponsorships, we
bring together diverse audiences such
as entrepreneurs, students, investors,
NGO and public sector representa-
tives, academics, employees, middle
and senior managers of companies.
We have reached hundreds of thou-
sands of people and had the oppor-
tunity to convey our messages through
over 50 congresses and conferences
organized throughout the year.
Our Culture and Arts
Sponsorships
Turkcell Vadi
Turkcell Vadi, Türkiye's newest open-air
stage, which we launched to support
the world of culture and art, one of the
most negatively affected sectors dur-
ing the pandemic, opened its doors
to art lovers for the new season on 15
April 2023. Winner of 3 gold awards at
the IPRA Golden World Awards in 2022,
many local and foreign artists took the
stage at our open-air events in Turk-
cell Valley between April and October.
More than 150,000 spectators visit-
ed the venue, which hosted 50 events
from concerts to theatre performances
throughout the season.
Turkcell Vadi, which attracts attention
with its sustainable and accessible na-
ture, stood out with content such as re-
cycling, sapling donation, transforming
collected techno waste into education,
prioritising access for visitors with disa-
bilities and creating a special viewing
area. Over 50,000 Turkcell customers
benefited from our Platinum Black entry
gate, VIP lounge and discounted ticket
privileges at the events.
Turkcell Starry Nights
Turkcell Starry Nights, which has be-
come an entertaining classic, brought
music lovers together in a magnificent
summer concert series. The Turkcell
Starry Nights event, which consisted
of 10 concerts within the Turkcell Vadi
events, was attended by 30 thousand
people this year. Turkcell Starry Nights
continued in 2023 the project we start-
ed in 2021 of translating concerts from
the stage with sign
language and
bringing them together with hear-
ing-impaired audiences.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Support Activities for February 6th Earthquake
On February 6, 2023, a devastating earthquake struck a wide region including 11 provinces, with its epicenter in Kah-
ramanmaraş. At Turkcell, we stood by those affected and our country with all our resources. We worked tirelessly to
ensure uninterrupted communication in the region and to support the urgent needs of our citizens impacted by the
earthquake. In this context, as Turkcell;
䩉In response to the interruptions caused by demolition, energy and transmission, we worked to restore the service
of our network with intensive interventions made by more than 1,200 technical teams and regional employees from
all over Türkiye.
䩉We aimed to ensure the continuity of communication by directing a total of 3,500 batteries, 1,400 generators, and
over 280 mobile base stations, caravans and new base stations from different parts of Türkiye and neighboring
provinces to the disaster-affected provinces. We shared these resources with other operators at the locations we
used.
䩉Despite all these painful conditions, including the inability to provide energy and loss of lives of our colleagues and
their families in the region, we mobilised all our facilities and human resources for the region. We repaired and re-
activated these damaged areas in the fastest way possible. We managed to active 80% of the 1,598 base stations
that experienced service interruptions in the first two days and 98% on the fifth day. We achieved 100% within a
week.
䩉In addition to the repairs, Thanks to more than 280 mobile and new base stations, our number of active sites ex-
ceeded the number of sites that were in service before the earthquake.
䩉From the very first moment on the first day of the earthquake, we opened the closed or restricted lines of our cus-
tomers in the region to meet their urgent communication needs. Customers' requests for line freeze-number change,
sim card change and transfer were met free of charge. Transactions that would be charged to the customer were
made free of charge for the region.
䩉We implemented over 90 million Emergency Communication Packages, Hero Packages and Rescuer Packages,
which include free calls, SMS and internet with new top-ups to the lines of more than 6 million users in the region.
䩉All electronic communication service charges in the 1-month bills of our customers in the earthquake region were
undertaken by our company and deleted from the bills.
䩉We made emergency arrangements to ensure continuity of service in our regional stores. To support communica-
tion in the disaster zone, we have deployed nearly 100 multi-charging units and more than 30,000 mobile chargers
(power banks) to the region.
䩉We opened our Turkcell offices in the earthquake zone for the use of our employees in the region 24/7.
䩉As Turkcell Volunteers, we launched a financial aid campaign with the participation of our employees, and we
delivered more than TRY 2 million in cash aid to the region with the prioritised products.
䩉Within the scope of the Earthquake Relief Mobilisation initiated by the Ministry of Trade, the products purchased
from Turkcell Pasaj were delivered under the coordination of AFAD, and in addition to this, we have transformed
277 dealers in Istanbul into Emergency Collection Centres and we have been instrumental in collecting the aid of
our citizens.
䩉We sent children's coats and boots, sleeping bags and rations to be delivered to the Disaster Coordination Centre,
as well as adult clothes and blankets to support the needs of our personnel and their families who are accommo-
dated in Turkcell Global Bilgi Diyarbakır building.
䩉On February 15th, Turkcell supported the Türkiye One Heart campaign, which was organised with the joint broad-
cast of all TV channels, with a donation commitment of TRY 3.5 billion.
䩉In addition, Aksungur UAV, which was produced by TAI and integrated with a base station in cooperation with
Turkcell, provided nearly 50 hours of service in the Antakya, Adıyaman and Kırıkhan region for the first time in this
disaster.
With Turkcell Gönül Bağı Projects, which we launched in April, we continue to create employment for our people in
the region, support local businesses and organise different sociocultural activities. In this difficult period, we continue
to mobilise all the means at our disposal to support our citizens in the region and to heal the wounds of the earth-
quake in the region.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALNATURAL CAPITALAPPENDICESSTRONG CORPORATE GOVERNANCEABOUT TURKCELL Natural Capital
With the Positive Imprint
to the Environment
strategy, we aim to reduce
the impact of Turkcell
operations, support the
reduction of environmental
impact of customers
with digital technology
applications and services,
and become a pioneer in
combating environmental
challenges and a leading
digital operator with its
environmental performance.
Environmental Management
Turkcell's Board of Directors is the high-
est-level management body responsible
for the business processes carried out
within the scope of the Positive Imprint to
Environment strategy. The Integrated Val-
ue Creation Committee and the Sustain-
ability Committee are also responsible for
the management of environmental sus-
tainability business processes on a strate-
gic and planning scale, and for evaluating
and reporting the performance results to
the Board of Directors and to all our stake-
holders through the Integrated Annual
Report. The Sustainability and Corporate
Social Responsibility Department carries
out coordination and planning activities
in the management of our environmental
impacts, particularly climate change. Per-
formance-enhancing and environmental
impact reduction activities are carried out
by the units responsible for the manage-
ment of business processes and assets
where the impact occurs. All senior exec-
utives have individual targets in the fields
of environment and climate, and these
targets are monitored on the basis of KPIs.
Environmental management through-
out the company is carried out within
the framework of the principles set out
Turkcell's environmental
in
policy Among these principles, the re-
quirement to comply with all legal reg-
ulations binding on Turkcell constitutes
the minimum working norm. In 2023,
there were no incidents of non-compli-
ance with environmental regulations as
a result of the Company's activities and
savings, no complaints were submitted
to the Company's management in this
regard and no financial or non-cash
penalties were incurred as a result of
non-compliance.
Main Objectives
Short Term
Target
Medium Term
Target
Long Term Target
2022
Performance
2023
Performance
Target Current
Situation
Periodic
information
provisions
Meeting the electricity
demand from renewable
sources
Renewable energy
investments
Achieving Net Zero
operation level
Reducing greenhouse gas
emissions
-
-
-
-
Recycling of all waste
100%
-
100% (in 2030)
100%
100%
300 MW SPP,
9.6 MW WPP
Installed Power
Investment
(2023-2025)
300 MW SPP, 27.6
MW WPP
Installed Power
Investment (2026)
19.5 MW Installed
Power
49.5 MW Installed
Power
-
-
-
100% (in 2050)
-
55% (in 2030)
414,911 tons of
CO2e emission
reduction
40,267.93 tons of
CO2e emission
reduction
-
Completed
Positive Development
Negative Direction
Ongoing
Board of Directors
Final decision making body for climate
change related issues
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 envionmental 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
SUSTAINABILITY AND CORPORATE
SOCIAL RESPONSIBILITY DEPARTMENT
RISK DIRECTORATE
Conducts environmental and
climate related corporate
engagements
Conducts environmental and
climate risks and opportunities
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES ISO 14001 Environmental Management
ISO 50001 Energy
System Standard,
Management System Standard and
ISO14064 Greenhouse Gas Calcula-
tion, Reporting and Verification System
Standard are followed in environmental
management processes. Certification
studies are carried out as a result of pe-
riodic independent audits to ensure sys-
tem reliability and continuity.
Turkcell's value chain, which has a wide
operational structure, has a large num-
ber of assets and business processes
where environmental impact occurs.
The management of environmental im-
pacts, performance improvement and
control activities across these process-
es and assets require significant finan-
cial resources.
Various training activities are carried
out to strengthen the knowledge, ex-
perience and awareness of the com-
pany's employees on environmental
impact management. In this context,
all Turkcell employees will receive en-
vironmental and sustainability training
by 2023.
for
the
Certificates
we
follow are available on
standards
the
company website. The
greenhouse gas verification process
for the period from 1 January 2023 to 31
December 2023 is ongoing, and when
the process is complete the verifica-
tion statement will be published on the
certificates section of the corporate
website.
Environmental management processes
are carried out using a risk and oppor-
tunity-based approach. Environmen-
tal risks identified as part of corporate
risk management include risk factors
that may arise from our operations, in
particular climate change, or that may
negatively affect our business perfor-
mance. Identified risks and opportuni-
ties are managed by translating them
into performance and
time-based
SMART objectives within the integrated
value creation model and sustainability
strategy. During the last reporting peri-
od, KPIs were defined and assigned to
all employees in the company, includ-
ing our CEO, and are followed up on
a regular basis, at least once a year,
depending on the issue. The activities
carried out in accordance with the
environmental strategy and the results
achieved are evaluated from a finan-
cial, operational, legal compliance and
environmental point of view, and are
also reviewed as part of the internal
audit activities.
Climate Change
Climate change, considered one of
today’s most pressing issues due to
its numerous acute and chronic risks
to the physical, social, and economic
environment and global business life
worldwide, is also the most funda-
mental element of the Positive Impact
on the Environment strategy, as it rep-
resents the most important part of the
impacts resulting from Turkcell's oper-
ations. Almost all of our environmental
management activities are directly or
indirectly related to climate change.
within the framework of the Borsa Is-
tanbul Sustainability Index and the MSCI
ESG Index. In 2023, Turkcell was included
in the BIST 25 Sustainability Index, rank-
ing among the top 25 companies with
the best sustainability performance
among listed companies in Türkiye.
We participate in efforts to combat
climate change through internation-
al initiatives. In this sense, Turkcell was
among the first 8 operators in the world
to join the GSMA Mobile Net Zero initia-
tive, which was established to achieve
a net zero target in the telecommuni-
cations sector, and was the first GSM
operator to represent Türkiye in this
initiative. Another action that supports
our Net Zero goal is our effort to trans-
form our emissions targets into a Sci-
ence Based Target system. Our net zero
target plan, which we applied for in the
previous period, was approved by the
Science Based Targets Initiative (SBTi)
in 2023. As part of this, we will reduce
our absolute Scope 1 and 2 green-
house gas emissions by 50% by 2030,
compared to our base year emissions
in 2020. We will reduce our absolute
Scope 3 greenhouse gas emissions by
25% compared to the 2020 baseline.
We are also the first and only company
in the telecommunications and tech-
nology sector in Türkiye to have its SBTi
target approved. We also report annu-
ally to the Climate Change Programme
of the Carbon Disclosure Project (CDP),
an
initiative,
which assesses our efforts to combat
climate change across a wide range of
areas, including governance structure,
risk/opportunity system, improvement
efforts and performance. According to
the results of the 2023 reporting, Turk-
cell's CDP Climate Change Programme
Score was rated A and became the
sector leader in Türkiye. In addition,
our environmental and climate perfor-
mance is assessed in various aspects
international
investor
Management of Climate
Risks and Opportunities
The risks of climate change
directly affect Turkcell's op-
erations. Measures are taken
against the risks of extreme
weather events and natural
disasters caused by climate
change, and studies are con-
ducted in anticipation of a long-
term
in average air
temperatures. The impact and
consequences of the opportu-
nities and risks posed by climate
change are addressed and
monitored through the Group's
risk management framework.
increase
Recognising the need to be
resilient to the risks of climate
change and the severe energy
crisis we may face in order to
lead our business into the future,
we have identified our climate
change risks and opportunities
using the recommendations of
the Task Force on Climate Relat-
ed Financial Disclosures (TCFD).
This study enables us to assess
our investments in a holistic way,
highlighting our areas of devel-
opment and the opportunities
we can focus on
Turkcell TCFD
Report is available on our
corporate website.
180 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Greenhouse Gas Emissions
Greenhouse gas emissions from our op-
erations are comprehensively mapped
and calculated in accordance with the
ISO 14064 standard.
Greenhouse Gas Emissions
(Tonnes CO2e)
Category 1
Category 2
Category 3-6
5
2
2
2
2
1
,
8
7
1
,
6
1
1
4
9
2
1
,
6
9
9
4
,
6
9
6
2
1
,
,
0
9
0
3
3
3
,
1
2
1
4
,
1
5
2
,
1
2021
2022
2023
Relative Greenhouse Gas Emissions
4.643
3.602
4.788
0.499 0.0005
0.0004
0.300
0.0006
0.299
2021
2022
2023
Greenhouse gas emissions
per net income
(tonnes CO2e/TRY Million)
Greenhouse gas emissions
per data usage
(tonnes CO2e/Petabyte)
Greenhouse gas
emissions per subscriber
(tonnes CO2e/subscriber)
the
reporting period,
During
total
greenhouse gas emissions amount-
ed to 1,723,910.65 Tonnes CO2e. Of this
amount, 12,696.38 Tonnes CO2e consists
of direct emissions from fuel (Category
1), 0 Tonnes CO2e consists of indirect
emissions from electricity consumption
(Category 2) and 1,251,412 Tonnes CO2e
consists of other
indirect emissions
(Categories 3-6).
On the other hand, according to the
relative emission amount assessment
made by including Category 1 and Cat-
egory 2 class emissions, the amount of
emission per data usage in 2023 is 4,788
tonnes CO2e/Petabyte and the amount
of emission per net revenue is 0,299
tonnes CO2e/TRY thousand.
During the reporting period, a total of
459,801.76 tonnes of CO2e of the car-
bon emissions generated from our op-
erations were offset with carbon certif-
icates created in YEK-G Standard.
During the reporting
period, a total of
459,801.76
tonnes of CO2e of the carbon
emissions generated from
our operations were offset
with carbon certificates
created in YEK-G Standard.
Energy Management
Total Energy Consumption (GJ)
On the other hand, according to the relative
energy consumption amount evaluation, en-
ergy consumption per data usage in 2023 is
realised as 726.81 GJ/Petabyte and energy
consumption per net income is realised as 45.3
GJ/TRY million.
We carefully manage energy consump-
tion, which constitutes a significant part
of our environmental impact portfolio,
particularly greenhouse gas emissions,
in accordance with ISO 50001 Energy
Management System Standard. The
two main focal points of our energy
management efforts are efficiency ef-
forts to reduce total and relative con-
sumption and electricity generation ac-
tivities from renewable resources.
Our energy-focused activities are
orientated towards environmentally
friendly green energy sources within
the framework of the UN's Sustainable
Development Goals. In order to man-
age energy consumption from our own
resources, we aim to meet 100% of our
energy needs from renewable sources
by 2030.
During the reporting period, Turkcell
operations
3,914,342.45
consumed
GJ of energy in total. Of this amount,
269,746 GJ consists of fuel consumption,
3,420,000 GJ consists of purchased
electricity consumption and 224,596.45
GJ consists of renewable energy gen-
erated. Since 2021, all of the purchased
electrical energy (i-REC, YEK-G) has
been supplied from certified renewa-
ble energy producers.
.
7
0
3
7
9
3
2
7
3
,
,
.
0
3
6
7
8
0
0
1
,
4
,
.
5
4
2
4
3
4
1
9
3
,
,
2021
2022
2023
Relative Energy Consumption
964
103.7
0.072
2021
791.9
76.1
0.066
726.8
45.3
0.092
2022
2023
Greenhouse gas emissions
per net income
(tonnes CO2e/TRY million)
Greenhouse gas emissions
per data usage
(tonnes CO2e/Petabyte)
Greenhouse gas emissions
per subscriber
(tonnes CO2e/subscriber)
Total Energy Consumption by Source (GJ)
Fuel Consumption
2021
324,845
Natural Gas
66,365
Gasoline
44,087
Diesel
214,393
Renewable Energy Generated
99,264.71
Solar Energy
2,350.89
Wind Energy
96,913.81
Purchased Renewable Energy - Electricity
Total
3,342,897.36
3,723,973.07
2022
266,378
29,567
33,661
203,150
267,355.30
3,014.55
264,340.80
3,600,000.00
4,100,876.30
2023
269,746
22,395
42,569
204,782
224,596.45
3,038.40
221,558.05
3,420,000.00
3,914,342.45
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
Turkcell Energy Solutions
In 2017, we established Turkcell Enerji
Çözümleri A.Ş. to reduce energy sup-
ply costs and ensure supply security, in
addition to mitigating the effects of cli-
mate change. Since its establishment,
our subsidiary has increased its invest-
ments in renewable energy to increase
its installed capacity every year, reach-
ing an installed capacity of 1.5 MW in
2023. With these investments, we made
significant progress during the period in
line with our strategy to transform from a
100% renewable energy user to a digital
operator that generates its own elec-
tricity. The amount of renewable energy
we produced in 2023 was equivalent to
the electricity consumption of 41 thou-
sand households for one year. We also
produced enough energy to power
2,750 base stations for one year.
With our first solar power plant in the
Turkish Republic of Northern Cyprus
(Vadili region), we generate 1.7 million
kWh of electricity annually, alleviate
the demand load on the Cyprus Turk-
ish Electricity Authority (KIB-TEK) grid
and contribute to the digital infrastruc-
ture of the electricity grid. In addition,
the power plant will prevent the emis-
sion of 822.8 tonnes of CO2e into the
atmosphere.
Our Ankara Data Centre is the first
in Türkiye to generate
data centre
its own electricity using solar panels.
With the new generation of solar pan-
els installed above the car park of our
headquarters building, we are able to
generate a portion of the electricity we
consume from renewable sources. Our
data centre building, which generates
408 thousand kWh of electricity per
year, also avoids 226 tonnes of CO2e
greenhouse gas emissions per year. In
2018, our Gebze Data Centre became
the first in Türkiye to achieve the Uptime
OS Operational Sustainability Gold
certificate. With the addition of our
Ankara Data Centre, we became the
only operator in Türkiye with two data
centres meeting these standardsTürki-
yeTürkiye. The solar power plant (SPP) at
the Ankara data centre site, which will
be commissioned in October 2023, uses
solar tracking and double-sided panel
technologies. This allows the solar pan-
els to position themselves to receive the
sun's rays at the steepest angle during
the day, and also to use the rays reflect-
ed from the surface to generate ener-
gy. This system, which is based on the
self-consumption model, is one of the
rare examples in Türkiye in terms of the
technology used.
With the solar energy project on the
roof of Turkcell Adana Plaza building,
we generate electricity from renew-
able energy and use the energy gen-
erated on the roof with this self-con-
sumption model to meet the electricity
needs of our Adana Plaza building. An-
nually, we generate 63.5 thousand kWh
of electricity, saving approximately
30.73 tonnes of CO2e greenhouse gas
emissions.
By the end of 2023, we have increased
the number of sites with solar pan-
els (green fields) to 1,400. In addition,
with 15 Portable Solar Field solutions,
a product of our innovative efforts, we
meet the needs of regions experienc-
ing seasonal population increases and
2,750
base stations'
annual energy needs
are met from renewable
energy.
By the end of 2023, we
reached
1,400
fields (green fields)
with solar panels.
Our data centre
building generates
408
thousand kWh
of electricity per
year and at the same
time we prevent
226
tonnes of CO2e
GHG emission per year.
With energy-efficient network equip-
ment, air-conditioning units in data cen-
tre system rooms and our state-of-the-
art technology products, we are using
our existing energy resources wisely
and saving energy by creating a more
efficient energy infrastructure. We de-
sign our buildings to maximise the use of
daylight, and we use less energy to heat
and cool our buildings through thermal
insulation details such as insulated wall
materials and exterior cladding.
We reduce our emission values per
kilometre with the preference of using
hybrid vehicles in our company fleet.
With the hybrid vehicle conversion, we
carried out in the past years, we re-
duced the emission level from 12.7 g/km
to 9.1 g/km. We continue to maintain this
level since no new vehicles joined our
fleet in 2023.
Energy Savings (GJ)
2019
2020 2021
2022
2023
151,143 110,304 193,414 227,592 76,258
With our Turkcell Kopilot ap-
plication, which brings a new
dimension to the driving experi-
ence in the car with its superior
features, we provide fuel con-
sumption, travel and user anal-
yses and indirectly reduce fuel
consumption. Thanks to this ap-
plication, we contribute to the
transformation of companies'
fleet management into a model
that emits less emissions.
limited access to energy resources.
The environmentally friendly nature of
these communication stations, which
we have installed in various locations,
contributes to our sustainability goals.
54 MW of our onshore SPP investments,
which we started in 2023, have been
tendered and our field
installations
continue. We aim to add 300 MW of
installed capacity by 2025. Once these
investments are completed, we aim to
meet 65% of Turkcell Group's electricity
consumption from our own generation
by 2026. In this way, our energy needs
will be largely covered by renewable
sources, while at the same time pro-
viding security against cost and supply
risks arising from the energy market.
Energy Efficiency
We aim to reduce our environmental
impact and energy costs by minimising
our energy consumption. The efficien-
cy studies we conduct for this purpose
include the use of energy-efficient
equipment and behavioural efficiency
practices for consumption patterns.
We also continued to renew energy
efficient equipment and network effi-
ciency practices, which are an impor-
tant part of our efficiency efforts.
21.2 GWh of savings were achieved by
analysing and implementing studies to
ensure energy efficiency and savings
in our network. Efforts have been made
to replace equipment with high ener-
gy consumption with new technology
equipment with low energy consump-
tion and to reduce energy consump-
tion by turning off equipment that is no
longer in use.
We already require the provision of
eco-design criteria in the air condition-
ing units we use and the current regu-
lations specific to the unit, although this
is not yet mandatory in Türkiye. In this
way, we aim to increase energy effi-
ciency by ensuring the use of A-rated
products.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Water Management
The efficient use of water, a vital natu-
ral resource, is among the impact areas
we follow in line with our environmental
strategy. While developing our prod-
ucts and services, we do not use water
resources directly. Nevertheless, as a
responsible company in resource utili-
sation, we disclose the amount of wa-
ter we use through our annual reports.
The main characteristic of our water
use is the consumption arising from the
daily needs of our employees and met
with municipal water. During the peri-
od, a total of 196,300 m3 of water was
consumed. We endeavour to reduce
this amount with efficient fixtures and
consumption practices.
As part of the GEM4 project we carried
out in the last period, we had achieved
a 40% saving in water consumption on
a module basis by changing the cool-
ing equipment. We purified the wa-
ter we took from the mains by putting
it through a reverse osmosis process
and using it in the equipment. However,
at the end of this process, 40% of the
mains water was discharged as waste.
The changes we made to the machine
eliminated the need for the reverse os-
mosis process and eliminated waste
water. The same system was used in
the GEM5 project, which we devel-
oped, and waste water production
was eliminated.
The project design of the reverse os-
mosis system in our Ankara Data Cen-
tre has been completed to recycle the
waste water from the reverse osmosis
system back into the building by pass-
ing it through a second reverse osmo-
sis system. With this project, we aim to
reduce the building's waste water rate
from 40% to 16%.
With the installation of a second re-
verse osmosis unit at the Izmir Data
Centre and the completed projects at
the Gebze Data Centre, where the ef-
fluent from the 2nd and 3rd module re-
verse osmosis units is passed through
the 1st module reverse osmosis unit, 60%
of the effluent in these buildings has
been recycled.
Total Water Consumption (m3)
,
7
5
3
6
3
2
7
5
0
4
5
1
,
4
3
6
4
3
1
,
2
3
8
5
4
1
,
0
0
3
6
9
1
,
2019
2020
2021
2022
2023
While striving to reduce and recycle our water
consumption as part of our operations, we also
help our customers improve their water use through
the services we provide. With our Smart Water Me-
ter application, water consumption is controlled
and natural resources are protected by remotely
reading meters using IoT technologies, opening
and closing valves and instantly monitoring usage.
Turkcell data centres have a PUE design
value of 1.3, well below the global
average of 1.55. The WUE value, which
was targeted to be reduced below 1.8 for
2023, was realised as 1.74.
Efficiency in Data Centres
We prioritise energy and water efficiency in the design of Turk-
cell data centres. In this context, we work for reducing the PUE
value reflecting energy efficiency and the WUE value reflecting
water usage efficiency. Turkcell data centres have a PUE design
value of 1.3, well below the global average of 1.55. The WUE val-
ue, which was targeted to be reduced below 1.8 for 2023, was
realised as 1.74.
Since we meet the electricity consumption of out data centers,
which constitutes the most important impact factor i, with re-
newable energy obtained through self-generation as well
as purchased iREC certified (I-REC, YEK-G) renewable energy
sources, the emission values of our data centre operations are
considerably lower compared to their counterparts.
In our data centres, we reuse rainwater in domestic consump-
tion as grey water with various filtration processes, and we
continue our efforts for the recovery and use of our wastewater
in different areas. In this context, we have initiated the neces-
sary work to realise projects such as reprocessing the wastes
of reverse osmosis devices and using the wastewater of these
devices in garden irrigation. In addition to energy and water ef-
ficiencies, we continue to work on thermal recycling.
All these environmental impact management activities in our
data centres generate two different positive values. Firstly,
these efforts, we significantly reduce the environmental im-
pacts resulting from Turkcell’s operations, and secondly, we also
gain cost advantage with the savings we achieve. On the oth-
er hand, we enable our customers to significantly reduce their
indirect environmental impacts, particularly greenhouse gas
emissions. Consequently, we offer a local and environmentally
friendly alternative to our customers who have highly sensitive
to environmental impact management and pursue sustainable
business models in their data centre service needs.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Industrialists (TÜBİSAD), the authorised
organisation in this field. All proceeds
from the recycling are donated to the
Educational Volunteers Foundation
of Türkiye (TEGV) to be used for the
high-quality education of children.
Turkcell has recycled approximately
34 tonnes of electronic waste through
this project since November 2019, when
the project was
launched, and 4.2
tonnes in 2023. It has contributed to the
high-quality education of 404 children
by donating all the generated income
to TEGV for the quality education of
children. From October 25 to Novem-
ber 8, 2023, Turkcell gave TRY 200 gift
vouchers, valid in stores and Pasaj, to
everyone who brought their e-waste
to the recycling bins in its stores to en-
courage consumers in this regard.
Total Waste Amount (tonnes)
2019
2020
2021
2022
2023
Hazardous Waste
Non-Hazardous Waste
Disposed
0
Recycling
3,567
Disposed
0
Recycling
1,518
0
2,745
0
953
Total
5,085
3,698
0
2,158
0
1,342
3,500
0
1,609
0
1,042
2,651
0
6,940
0
6,880
13,820
2019
2020
2021
2022
2023
Secondhand sales and discarded units sale
amount* (tonnes)
5,599.89
4,220.18
3,691.52
3,088.27
3,686.47
* We aim to utilize 100% of network related wastes as discards or with secondhand sales.
In 2023, a total of 3,686
tonnes of e-waste was
successfully recycled,
achieving a
100%
recycling rate.
Waste Management
We adopt a 'minimise waste, maximise
recovery' approach to the manage-
ment of waste from our operations. We
carry out waste management activi-
ties in accordance with the methods
and practices prescribed by law. We
reduce the amount of waste we gen-
erate by ensuring efficient use of ma-
terials, particularly paper, toner and
plastic, and by separating the waste
we generate and recycling it through
licensed facilities. We collect used
batteries separately and recycle them
through local authorities or the Port-
able Battery Manufacturers and Im-
porters Association, depending on the
location. We were the first non-manu-
facturing company to be awarded the
Basic Level Zero Waste Certificate for
our past studies. Thanks to the waste
management centre we have set up,
we ensure that the solid food waste
collected in the cafeteria and offices is
processed on site using a composting
machine, and we obtain soil-improving
organic fertiliser.
We dispose of hazardous waste such
as batteries, toner, electronics, cables
and consumables generated by our
activities through licensed and compe-
tent recycling companies, thus prevent-
ing the interaction of hazardous waste
with the environment. On the other
hand, we prevent oil waste generated
in our offices from mixing with domestic
wastewater by collecting it with oil trap
systems.
contribute to the circular economy sys-
tem, where resources are not unnec-
essarily extracted, wasted and recov-
ered. In 2019, we launched the Modem
Renewal Project, whereby we renew
or repair our modem group products
that are not used by our customers and
make them available to our customers
who request modems. As part of this
project, 58 thousand set-top boxes, 106
thousand superbox products, 58 thou-
sand optical network terminals (ONT)
and 182 thousand modems will be re-
newed in 2023. In 2023, 22% of fiber mo-
dems and 20% of ADSL modems will be
covered by modems renewed in 2023.
In addition, 14% of the renewed STBs,
18% of the ONTs and 44% of the Super-
boxes will be used and offered to our
customers in the same year.
We are well aware of the negative
impact on the ecosystem caused by
electronic products that have com-
pleted the end of their lifecycle due to
improper management, and we car-
ry out our work in this area with great
care. In order to turn this situation into
an opportunity, we are evaluating
electronic waste products, which are
rich in raw materials and content suit-
able for reuse, within the framework of
the circular economy, thus achieving
both financial savings and efficient use
of limited resources. In 2023, a total of
3,686 tonnes of e-waste was success-
fully recycled, achieving a 100% recy-
cling rate.
Recycle into Education
We enable the reuse of products by
selling second-hand and other dis-
carded items to companies use old
technology. We aim to recover 100%
of network
infrastructure equipment
through these sales. In this way, we
The e-waste (mobile phones, com-
puters, tablets and accessories, etc.)
brought to the recycling bins in Turkcell
stores as part of the Recycle into Edu-
cation project is recycled in coopera-
tion with the Association of Informatics
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES APPENDIX-1: Awards received by Turkcell in 2023
Our works in 2023 have also
received the appreciation of
our stakeholders. The projects
and applications, we have
accomplished within the year
were deemed worthy of reward
by many institutions.
Golden Compass : At the 21st Golden
Compass Awards, hosted by the Public
Relations Association of Türkiye, our
company was honored Türkiye with
3 awards. T.Life won the "Best Internal
award,
Communication
"Sponsorship
GNÇ SporFest won
Communication - Other" award and
Women Writing the Future Climate Idea
Marathon won the "TÜHİD - KAGİDER 1e1
Gender Equality Award" award.
Project"
the
IDC DX Summit 2023: Our RPA Marathon
Programme, which has been running
since 2022, was awarded the first prize in
the Future Enterprise of the Year category
at IDC DX Summit 2023.
13. GLOBEE®
International Business
Awards: Achievement in Best Use of Tech-
nology and Best Use of Technology in Cus-
tomer Services categories with the "Emer-
gency Robot" project created by our NT,
CEM and Global Bilgi teams.
Best Mobile App Awards: İşTurkcell Online
won an award at the Best Mobile App
Awards. İşTurkcell Online mobile applica-
tion, where company officials can easily
manage their corporate mobile lines, re-
ceived a Silver award from the Best Mo-
bile App Awards.
Employer Brand Stars: Our Human Re-
sources team returned from the Employer
Brand Stars competition with 4 awards.
GNÇYTNK/Graduate Recruitment Pro-
gramme won Gold, T.Life/Use of Digital
Programme won Gold, T.Life/Employer
Brand Strategy won Silver and T.Life/In-
ternal Communication Programme won
Bronze.
Brandon Hall Excellence Awards: Our Hu-
man Resources team returned from Bran-
don Hall with 4 awards.
GNÇYTNK was awarded Gold for Best
Unique or Innovative Talent Acqusition
Programme, Gold for Future of Leader-
ship Masters/Best Advance in Competen-
cies and Skill Development, Bronze for In-
clusive and Effective Benefits Supporting
Flexible Working Model/Best Advance in
Benefits Strategy and Administration and
Bronze for Superwomen of Cyber Secu-
rity/Best Unique or Innovative Learning
and Development Programme.
Turkcell Global Bilgi was awarded the
first prize by Brandon Hall Group Award
Excellence in 2023 for its "Harmony" and
"Coaching Office" Human Resources
practices.
Association for Talent Development: We
achieved another success with our RPA
Training and Development Programme
and returned with an award from ATD,
one of the most prestigious institutions in
the world of education. We received the
award in the Talent Development Inno-
vation category with our holistic devel-
opment programme that brings togeth-
er our company strategies and future
competencies.
Happy Place to Work: We were select-
ed among 303 companies in the Türkiye's
Happiest Workplaces Survey planned
by Happy Place to Work, a platform es-
tablished by academics and consultants
to support companies in their journey to
create a happy workplace culture.
Stevie 2023 The International Business
Awards: Our Contact Risk-Scoring Sys-
tem, one of the many projects developed
within our company in the field of Legal
Technologies (LegalTech), was award-
ed the Bronze Stevie award in the "New
Product Awards - Legal Solution" cate-
gory at the Stevie 2023 The International
Business Awards competition.
Brandverse Awards: Our company re-
turned with 4 awards from Brandverse
Awards, one of the marketing and com-
munication awards that offers a 360-de-
gree comprehensive view of the world of
brands with marketing, communication
and advertising works.
Silver award in the "Social Responsibility
and Sustainability" category with the "Te-
kno Waste" project,
Pasaj won the Silver award in the "Media/
Sectoral: E-commerce" category,
Paycell won the Bronze award in the "Me-
dia/Sectoral: Finance" category,
Turkcell Store won the Bronze award in
the "Media/Outdoor" category with the
"Geforce Now Mall IQ" project.
MIXX (Marketing and Interactive Excel-
lence) Awards: We received the special
award with the TV+ "Sahibinden F1 Viral"
project at the thirteenth MIXX (Market-
ing and Interactive Excellence) Awards,
which evaluates and rewards digital ad-
vertisements with all layers from strategy
to creative work and implementation,
from media planning to integration, from
efficiency to return on investment.
International Loyalty Awards: With
our 103 stores in 81 provinces, we were
awarded the first prize in the Best Cus-
tomer Experience category at the Inter-
national Loyalty Awards, one of London's
prestigious awards, with our Barrier-Free
stores, which is our social responsibility
project on our way to equal and acces-
sible service for our customers in all disa-
bility groups.
Best Innovative Service Provider of the
Year: Our Company won the "Best In-
novative Service Provider of the Year"
award with our Turkcell Transport Net-
work at the NGON (New Generation
Optical Networking) Awards, one of the
most important events of the telecommu-
nications industry, which brings together
the entire Optical Networking Industry
worldwide.
Data Centre ICT Management Innova-
tion of the Year: At the DCS Awards held
globally in the Data Centre sector, our
"DCMAN" application, which we devel-
oped in-house as Turkcell and used in our
Data Centre White Space operation pro-
cesses, won 2nd place in the "Data Centre
ICT Management (DCIM) Innovation of
the Year" category.
Web Excellence Awards: İşTurkcell On-
line, where the authorities of our corpo-
rate mobile customers can easily man-
age their company lines, was awarded
in the Best in Mobile App and Best in
Website categories for both mobile ap-
plication and website. Our analytical
platform
"Corporate Compass", which
provides a great digital transformation
in the business processes of our Corpo-
rate Sales and DBS Teams, guides them
in operational efficiency and strategic
guidance, makes corporate memory sus-
tainable and provides operational effi-
ciency, was awarded in the Corporate &
B2B category.
IDC CIO Awards: Turkcell Omnichannel
project, in which we make our custom-
ers feel "Safe, Valuable and Happy" by
making them experience the Single Turk-
cell perception in all our channels, won
3rd place in the Change Management
category.
Green All-optical Network Forum 2023:
With our super wi-fi project, our company
added a new power to our light-speed
fiber internet, and within the scope of the
project, we broke new ground in Türkiye
by offering Wi-Fi 6 technology to our fib-
er customers. With this success, we were
awarded the Great Advencement of
Smart Home Service award by IDATE at
the Green All-optical Network Forum 2023.
Stevie Awards: Our Turkcell Market In-
stant Store Stock Display project, which
we implemented on B2B Portal, the prod-
uct supply platform of sales channels,
was awarded the "Award for Innovation
in Sales - Technology Industries" catego-
ry, and our Atmosfer application, which
allows our field employees to easily and
quickly access all the information they
need on a single platform, was award-
ed the "Gold Stevie" award in the "Sales &
Marketing Mobile Application" category.
Achievement
in Customer Excellence
Awards: As a result of our efforts to make
our customers feel safe, valuable and
happy at all times, we returned with 4
awards from the 8th Achievement in Cus-
tomer Excellence Awards organised by
Şikayetvar.com this year.
We received the Diamond Award with
Turkcell
(GSM)
in the Communication
Category, the Gold Award with TV+ in
the Digital Platform Category, the Silver
Award with Turkcell Superonline in the
Internet Service Providers Category and
the Silver Award with Paycell in the Elec-
tronic Money Applications Category.
MarTech Awards: Our company returned
with 5 awards from the MarTech Awards,
which was organised for the sixth time
this year, rewarding the most successful
use of marketing technologies to set an
example for the sector.
The Corporate Social Responsibility team
won the first prize in the "Wonders Creat-
ed with Low Budgets" category with the
" Fleeing Eyes " project, and Paycell won
the first prize in the "Best Marketing Au-
tomation Technology" category with the
"Feed Integrations" project, Tv+ won the
first prize in the "Best Media Technology"
category with the "TV+ Dynamic Stream-
ing Ads" project, Fizy won the first prize
in the "Best Use of Technology in Content
Marketing" category with the "Decibel-
meter" project and Fizy won the first prize
in the "Best Use of Technology in Mobile
Applications" category with the "Mood-
meter" project.
Felis Awards: We won a total of 8 awards
at the 2023 Felis Awards, where creative
communication works are recognised.
Our "Google Hack" project received 5 Fe-
lis and 1 Achievement award, our "Burnout
Syndrome" film received Curious Felis, and
our "T.Life is 1 Year Old" project received
Achievement award.
LegalTech Breakthrough Awards: Our
Contact Risk-Scoring System, one of
the many projects developed within our
company in the field of Legal Technolo-
gies (LegalTech), won an award at the
LegalTech Breakthrough Awards 2023,
where it competed in the Overall Legal
Analytics Innovation of the Year category.
Secret CV HR Stars: Our internal commu-
nication and Employer Branding umbrella
strategy T.Life was selected as the "Best
Employer Brand of 2023" at the Secret CV
HR Stars Awards.
YTU Business World Awards: T.Life, our
internal communication and Employer
Branding roof strategy, received the "Best
Social Responsibility Project selected by
students" award at Yıldız Technical Uni-
versity Business World Awards with our
Step into the Future project.
Boğaziçi University Business World
Awards: T.Life, our internal communica-
tion and Employer Branding framework
strategy, was named "Technology Com-
pany of the Year" at the Boğaziçi Universi-
ty Business World Awards.
Future of Cloud & AI: Our company re-
turned with 2 awards from the "Future of
Cloud & AI" event organised by CXO Me-
dya. Cost Efficiency, "Robotic Device Re-
quirement and Order Management, Ro-
botic Process Automation, "Turkcell Data
Centre Energy Saving with Reinforcement
Learning" projects won the award.
RDCNOF 2023: Paycell won the third
prize for The Best Agile Project paper in
all industries with the Vitrin project at the
International conference on design re-
search and development.
BOSPHORUS ENVIRONMENT AWARDS:
Recycling Project of the Year Award was
given to Turkcell Transform into Education
Project.
Bonds & Loans 2023: Our TRY 200 million
Sukuk transaction, which we issued to
Paycell in August, won the first place in
the "Islamic Capital Markets Deal of the
Year" category at Bonds & Loans.
Next Generation Optical Networks
(NGON) Awards: At the NGON 2023 event,
which is organised worldwide every year,
attended by the entire optical network
industry and is the largest event for op-
tical network technologies, the
"Core
Transport Network" team received the
"Best Innovative Service Provider of the
year" award for their new applications in
the network with a focus on leadership in
technology.
5G Core Summit Awards: At the 5G Core
Summit event attended by global and lo-
cal operators, the "Broadband Network
& Enhanced Voice Services" teams won
the
"Best Network Reliability Solution"
award for their redundancy and robust-
ness practices in the Turkcel Packet and
Voice Network with a focus on technolo-
gy leadership.
SDC Awards 2023: Our RPA Marathon
Programme, which has been running
since 2022, was awarded in 2 categories;
Intelligent Automation Project of the Year
- WINNER and Company Culture Initiative
- RUNNER UP.
(Payment
PSM
System Magazine)
Awards: Paycell Showcase - RPA Robot
project developed within the scope of
the RPA Marathon programme won the
Golden PSM in the "Internal Innovation"
category.
APPENDIX-2:
Turkcell ISO
Certificates
䩉ISO 9001 Quality Management
System
䩉ISO 10002 Customer Satisfaction
Management System
䩉ISO 14001 Environmental
Management System
䩉ISO 20000 Information
Technology Service
Management System
䩉ISO 22301 Business Continuity
Management System
䩉ISO 27001 Information Security
Management System
䩉ISO 27017 Information Security
Management System in Cloud
Services
䩉ISO 45001 Occupational Health
and Safety Management System
䩉ISO 50001 Energy Management
System
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Non-Governmental Organizations
APPENDIX-4: GRI Content Index
Level of Engagement
Membership
Membership
Membership
Board Member (Tümay Ünal)
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Organisation Name
3GPP
AUSDER
BCTR
BGD
The 3rd Generation Partnership Project
Intelligent Transport Systems Association
Blockchain Türkiye Platform
Information Security Association
BUSIAD
Bursa Industry and Businessmen Association
DEIK
ECTA
Foreign Economic Relations Board of Türkiye
European Competitive Telecommunications Association
EDIDER
Digitalisation in Energy Association
ENDAVOUR
Association for Supporting Active Entrepreneurs
ESB
ETID
ETSI
HIB
FKB
GSMA
GTI
IAPP
IIC
IPTV
ASSOCIATION
ITU
Access Providers Association
Electronic Commerce Operators Association
European Telecommunications Standards Institute
Service Exporters Association
Financial Institutions Union
Global System for Mobile Communications Association
Global TD-LTE Initiative
International Association of Privacy Professionals
International Institute of Communication
Internet Based Television Technologies Association
International Telecommunication Union
m-TOD
Mobile Telecommunication Operators Association
MMA Türkiye Mobile Marketing Association
MOBISAD
MUSIAD
NGMN
PERYÖN
SKD
RVD
Mobile Communication Tools and Information Technologies
Businessmen Association
Independent Industrialists and Businessmen Association
Next Generation Mobile Networks
Human Management Association of Türkiye
Business and Sustainable Development Association
Advertisers Association
TELKODER
Turkish Competitive Telco Operators’ Association
The Union of Chambers and Commodity Exchanges of Türkiye Membership
Telecommunication Satellite and Broadcasting Business
Association
Informatics Industry Association
Membership
Membership
TOBB
TUYAD
TÜBİSAD
TUSIAD
TUYID
UN Global
Compact
WTECH
Turkish Industry and Business Association
Turkish Investor Relations Association
United Nations Global Compact
Women’s Association in Technology
YASED
International Investors Association
192 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
Membership
Membership
Membership
Membership
Membership
Membership
Board Membership
(Ali Taha Koç, PhD, Ali Uysal, Prof. Dr
Vehbi Çağrı Güngör)
Membership
GRI 2: General
Disclosures
2021
Membership
Membership
Membership
Membership
Membership
Membership
Membership
Statement of use
Standards for the period 01 January 2023-31 December 2023.
:Turkcell İletişim Hizmetleri A.Ş. has reported in accordance with the GRI
GRI 1 used
: GRI 1: Foundation 2021
Applicable GRI
Sector Standard(s)
: N/A
GRI
Standard
Disclosure
General Disclosures
2-1 Organizational details
2-2 Entities included in the organization's
sustainability reporting
2-3 Reporting period, frequency and contact
point
2-4 Restatements of information
2-5 External assurance
2-6 Activities, value chain and other business
relationships
2-7 Employees
2-8 Workers who are not employees
2-9 Governance structure and composition
2-10 Nomination and selection of the highest
governance body
2-11 Chair of the highest governance body
2-12 Role of the highest governance body
in overseeing the management of impacts
2-13 Delegation of responsibility for
managing impacts
2-14 Role of the highest governance body
in sustainability reporting
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
2-19 Remuneration policies
2-20 Process to determine remuneration
2-21 Annual total compensation ratio
Omission
Requirement(s)
Omitted
Reason
Explanation
Location
Turkcell at a Glance (p.30-32)
About the Report (p.28)
Our Offices (p.336)
About the Report (p.28)
About the Report (p.28)
No such restatement has been made
Independent Assurance Report (p.230-234)
Turkcell Value Creaiton Process (p.58);
Our Strategic Focuses, Initiatives and
Opportunities (p.62); Value-oriented and
Responsible Supply Chain Management
(p.166-169)
Employee Demographics in 2023 (p.109)
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.
Board of Directors Structure (p.71-72)
Board of Directors Structure (p.71-72)
Board of Directors Structure (p.71-72)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Board of Directors Structure (p.71-72)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Board of Directors Structure (p.71-72)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Board of Directors Structure (p.71-72)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Board of Directors Structure (p.71-72)
Our Human Capital (p.109)
Confidentiality
Constraints
Data
regarding re-
muneration is
considered as
confidential.
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Standard
Disclosure
Location
Omission
Requirement(s)
Omitted
Reason
Explanation
GRI 2: General
Disclosures
2021
2-22 Statement on sustainable development
strategy
2-23 Policy commitments
2-24 Embedding policy commitments
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.50)
Human Rights, Business Ethics and Common
Values (p.74)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Environmental Management (p.179-180)
2-25 Processes to remediate negative impacts Turkcell Value Creation Process (p.58-59)
Turkcell Sustainability Priorities (p.48-49);
2-26 Mechanisms for seeking advice and
Interactions with Our Stakeholders (p.54-55)
raising concerns
Competition Management (p.76)
2-27 Compliance with laws and regulations
Turkcell’s Sustainability Initiative Memberships
(p.56-57); Cooperated National, International
and Non-Governmental Organizations (p.192)
2-28 Membership associations
2-29 Approach to stakeholder engagement
Interactions with Our Stakeholders (p.54-55)
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.48-49)
3-2 List of material topics
Turkcell Sustainability Priorities (p.48-49)
GRI 302:
Energy 2016
GRI 303: Water
and Effluents
2018
GRI 305:
Emissions 2016
3-3 Management of material topics
Decarbonisation and Renewable Energy
GRI 3: Material
Topics 2021
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
302-3 Energy intensity
302-4 Reduction of energy consumption
Climate Crisis (p.80); Climate Change (p.181);
Our Natural Capital (p.178-189)
Climate Crisis (p.80); Climate Change (p.98);
Our Natural Capital (p.178-189)
CDP Report 2023
Our Natural Capital (p.183)
Our Natural Capital (p.183)
Our Natural Capital (p.185)
303-3 Water withdrawal
Our Natural Capital (p.186)
305-1 Direct (Scope 1) GHG emissions
305-2 Energy indirect (Scope 2) GHG
emissions
305-3 Other indirect (Scope 3) GHG emissions Our Natural Capital (p.182)
Our Natural Capital (p.182)
305-4 GHG emissions intensity
Our Natural Capital (p.182)
305-5 Reduction of GHG emissions
Our Natural Capital (p.182)
Our Natural Capital (p.182)
Circular Conduct
GRI 3: Material
Topics 2021
3-3 Management of material topics
Our Natural Capital (s.178-189)
GRI 306: Waste
2020
306-1 Waste generation and significant waste-
related impacts
306-2 Management of significant
wasterelated impacts
306-3 Waste generated
Our Natural Capital (p.188)
Our Natural Capital (p.188)
Our Natural Capital (p.189)
306-4 Waste diverted from disposal
Our Natural Capital (p.188)
306-5 Waste directed to disposal
Our Natural Capital (p.189)
Efficient Technology Solutions
GRI 3: Material
Topics 2021
3-3 Management of material topics
Our Manufactured Capital (p.124-131); Our
Intellectual Capital (p.132-147); Our Social
Capital (p.148-176)
GRI
Standard
GRI 203:
Indirect
Economic
Impacts 2016
Disclosure
Location
203-1 Infrastructure investments and services
supported
203-2 Significant indirect economic impacts
Our Manufactured Capital (p.131); Our Social
Capital (p.148-176)
Our Manufactured Capital (p.124-131); Our
Intellectual Capital (p.132-147)
Omission
Requirement(s)
Omitted
Reason
Explanation
GRI 413: Local
Communities
2016
GRI 416:
Customer
Health and
Safety 2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
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
Digital Security and Wellbeing
GRI 3: Material
Topics 2021
GRI 203:
Indirect
Economic
Impacts 2016
GRI 413: Local
Communities
2016
413-2 Operations with significant actual
and potential negative impacts on local
communities
203-2 Significant indirect economic impacts
3-3 Management of material topics
Our Social Capital (p.148-175)
Our Manufactured Capital (p.124-126)
Our Manufactured Capital (p.124-126)
Digital Security and Wellbeing (p.143)
Digital Security and Wellbeing (p.143)
Our Manufactured Capital (p.126)
Human-Oriented Turkcell Culture
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
3-3 Management of material topics
Human Rights, Business Ethics and Common
Values (p.74); Our Human Capital (p.106-123);
Equality of Digital and Social Opportunity
(p.170)
401-1 New employee hires and employee
turnover
401-3 Parental Leave
Our Human Capital (p.110)
Our Human Capital (p.106)
402-1 Minimum notice periods regarding
operational changes
Our Human Capital (p.107)
403-1 Occupational health and safety
management system
403-2 Hazard identification, risk assessment,
and incident investigation
403-3 Occupational health services
403-4 Worker participation, consultation, and
communication on occupational health and
safety
403-5 Worker training on occupational health
and safety
403-6 Promotion of worker health
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
404-3 Percentage of employees receiving
regular performance and career
development reviews
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.122-123)
Our Human Capital (p.116)
Our Human Capital (p.116-121)
Our Human Capital (p.114)
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APPENDIX-5: UNGC Progress Chart
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-Oriented and Responsible
Supply Chain Management
Strong Corporate Governance, Our Human
Capital, Value-Oriented and 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
Our Human Capital, Value-Oriented and
Responsible Supply Chain Management
Principle 5: the effective abolition of child labour
Our Human Capital, Value-Oriented and
Responsible Supply Chain Management
Principle 6: the elimination of discrimination in respect of
employment and occupation
Our Human Capital
Principle 7: Businesses should support a precautionary
approach to environmental challenges
Our Natural Capital
Environment
Principle 8: undertake initiatives to promote greater
environmental responsibility
Our Natural Capital
Principle 9: encourage the development and diffusion of
environmentally 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
GRI
Standard
Disclosure
Location
Omission
Requirement(s)
Omitted
Reason
Explanation
GRI 405:
Diversity
and Equal
Opportunity
2016
GRI 406: Non-
discrimination
2016
GRI 407:
Freedom of
Association
and Collective
Bargaining
2016
405-1 Diversity of governance bodies and
employees
Our Human Capital (p.106)
405-2 Ratio of basic salary and remuneration
of women to men
Our Human Capital (p.109)
406-1 Incidents of discrimination and
corrective actions taken
Our Human Capital (p.108-110)
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-oriented and Responsible
Supply Chain Management (p.166)
GRI 409:
Forced or
Compulsory
Labor 2016
Ethical Conduct
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-oriented and Responsible
Supply Chain Management (p.166)
GRI 3: Material
Topics 2021
3-3 Management of material topics
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
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
Equality of Digital and Social Opportunity
GRI 3: Material
Topics 2021
3-3 Management of material topics
GRI 203:
Indirect
Economic
Impacts 2016
Responsible Value Chain
203-2 Significant indirect economic impacts
Turkcell Sustainability Management and
Involvement of Senior Management (p.47);
Human Rights, Business Ethics and Common
Values (p.74); Anti-Bribery and Corruption,
Compliance with International Capital
Markets and Economic & Trade Sanctions
and Export Controls (p.75); Competition
Management (p.76); Artificial Intelligence
(p.104); Value-oriented and Responsible
Supply Chain Management (p.166)
Anti-Bribery and Corruption, Compliance
with International Capital Markets and
Economic & Trade Sanctions and Export
Controls (p.75)
Human Rights, Business Ethics and Common
Values (p.74)
Competition Management (p.76)
Our Strategic Focuses, Initiatives and
Opportunities (p.62); Data Center (p.131);
Equality of Digital and Social Opportunity
(p.170)
Data Center (p.131); Equality of Digital and
Social Opportunity (p.170)
GRI 3: Material
Topics 2021
3-3 Management of material topics
Our Strategic Focuses, Initiatives and
Opportunities (p.62); Localization Efforts
(p.168)
203-2 Significant indirect economic impacts
GRI 203:
Indirect
Economic
Impacts 2016
GRI 204:
Procurement
Practices 2016
Transparency and Accountability
204-1 Proportion of spending on local
suppliers
Localization Efforts (p.168)
Localization Efforts (p.168)
GRI 3: Material
Topics 2021
3-3 Management of material topics
Interactions with Our Stakeholders (p.54-
55); Our Strategic Focuses, Initiatives and
Opportunities (p.62); Our Financial Capital (p.91)
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Compliance Framework Table
COMPLIANCE STATUS
COMPLIANCE STATUS
YES NO PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
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 environmental,
social and governance (ESG) material issues, risks and
opportunities.
A1.1
The Board of Directors determines and publicly
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
A2.1
The Partnership determines and publicly discloses 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.
X
X
X
X
X
A2.2
The Partnership develops and publicly discloses
implementation and action plans in line with the short-
and long-term ESG goals.
X
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 sustainability
performance improvement activities regarding
business processes or products and services.
A3. Reporting
A3.1
The Partnership discloses information on sustainability
performance, goals and actions within the annual
report in a clear, accurate and complete manner.
A3.2
A3.3
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
X
X
X
X
X
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Priorities (p.49)
Operational Risks (p.79-80)
Climate Change (p.100)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
www.turkcell.com.tr/en/aboutus/
corporate-social-responsibility/
sustainability
Our Human Capital (p.106)
Our Intellectual Capital (p.132)
Our Social Capital (p.148)
Our Natural Capital (p.178)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Management and
Involvement of Senior Management (p.47)
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.50)
Our Human Capital (p.106)
Our Intellectual Capital (p.132)
Our Social Capital (p.148)
Our Natural Capital (p.178)
Our Human Capital (p.106)
Our Intellectual Capital (p.132)
Our Social Capital (p.148)
Our Natural Capital (p.178)
Our Human Capital (p.106-123)
Our Intellectual Capital (p.132-147)
Our Social Capital (p.148-175)
Our Natural Capital (p.178-189)
Turkcell Sustainability Strategy: Positive
Imprint in Sustainability (p.50)
Turkcell Value Creation Process (p.58-59)
Our Human Capital (p.106-107)
Our Manufactured Capital (p.124)
Our Intellectual Capital (p.132)
Our Natural Capital (p.178-180)
Sustainable Development Objectives
Supported (p.52-53)
Competition Management (p.76)
Consolidated Financial Chart Footnotes
(p.230)
A4. Verification
A4.1
Partnership’s ESG Key Performance measurements are
verified by an independent third party and publicly
disclosed.
X
B. Environmental Principals
B1
B2
The partnership publicly discloses policies and
practices, action plans regarding Environmental
Management and Environmental Management
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.
B3
Disclosed in A2.1.
B4
B5
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 prioritized
environmental issues have been integrated into
business objectives and strategies.
B6
Disclosed in A2.4.
B7
B8
B9
B10
B11
B12
The Partnership publicly discloses how environmental
issues are managed and integrated 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 involvement
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 emissions (Scope-1
(Direct), Scope-2 (Energy indirect), Scope-3 (Other
indirect) ), air quality, energy management, 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 reporting
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 comparison with
goals set for the previous years.
X
X
X
X
X
X
X
X
X
X
The GHG
verification
process for the
period between 01
January 2023 and
31 December 2023
is ongoing, and
when the process
is completed, the
statement regarding
the verification will
be shared in the
certificates section
on the corporate
website.
Environmental Management (p.179)
About the Report (p.28)
Environmental Management (p.179-180)
Environmental Value-oriented and
Responsible Supply Chain Management
(p.166-167)
Environmental Value-oriented and
Responsible Supply Chain Management
(p.166-167)
Climate Change (p.181)
Our Natural Capital (p.182-189)
Our Natural Capital (p.178-189)
Our Natural Capital (p.178-189)
Our Natural Capital (p.178)
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
COMPLIANCE STATUS
COMPLIANCE STATUS
YES NO PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
YES NO PARTIAL
NOT
RELEVANT
DESCRIPTION
REPORTING INFORMATION REGARDING
PUBLICLY DISCLOSED DATA /LINK
B13
The partnership set a strategy for fighting with climate
crisis and publicly discloses actions planned.
B14
B15
B16
B17
B18
B19
B20
B21
B22
B23
B24
B25
C1.1
C1.2
The Partnership establishes and publicly discloses
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, contractors, dealers,
etc) decrease their GHG emissions.
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 generated 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 efficiency 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 platforms
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 Türkiye has approved, and other
relevant legal regulations; determines individuals
responsible for application of the policy, and publicly
discloses policy and people responsible for its practice.
The Partnership includes subjects such as fair
workforce, improvement of working standards, female
employment and inclusivity (such as no discrimination
based on gender, race, religion, language, marital
status, ethnic identity, sexual orientation, gender
identity, family responsibilities, trade union activities,
political views, disabilities, social and cultural
differences, etc.) in its Labour Rights Policy considering
also supply and value chain impacts.
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Our Natural Capital (p.181-185)
Turkcell Energy Solutions (p.184-185)
Environmental Value-oriented and
Responsible Supply Chain Management
(p.166-167)
Energy Efficiency (p.185)
2023 CDP Report
GHG Emissions (p.182)
Energy Management (p.183)
Turkcell Energy Solutions (p.184-185)
Turkcell Energy Solutions (p.184-185)
Energy Efficiency (p.185)
Water Management (p.186)
2023 CDP Report
GHG Emissions (p.182)
2023 CDP Report
2023 CDP Report
Diversity, Inclusion, and Equal Opportunity
(p.108-109)
Diversity, Inclusion, and Equal Opportunity
(p. 108-109)
Environmental Value-oriented and
Responsible Supply Chain Management
(p.166-167)
Diversity, Inclusion, and Equal Opportunity
(p.108-109)
C1.3
C1.4
The Partnership publicly discloses measures taken
to respect the rights of specific economically,
environmentally, and socially vulnerable groups (such
as low-income groups, women, etc.) or minority rights/
equal opportunities along the value chain.
The Partnership publicly discloses developments
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 complaints and disputes have been
established, and processes for resolving disputes.
The Partnership publicly discloses activities conducted
during the reporting year in order to ensure employee
satisfaction.
The Partnership establishes and publicly discloses its
OHS Policy.
The Partnership publicly discloses precautions taken to
prevent occupational accidents and to protect health
and accident statistics.
The Partnership establishes and publicly discloses
its policies on protection of personal data and data
security.
C1.6
C1.7
C1.8
The Partnership establishes and publicly discloses its
Code of Ethics.
C1.9
The Partnership discloses its activities on community
investments, social responsibility, financial inclusion and
access to financing.
C1.10
The Partnership organizes briefings and trainings
programs on ESG policies and practices for employees.
X
X
X
X
X
X
X
X
X
X
X
C2. Stakeholders, International Standards and Initiatives
C2.1
C2.2
The Partnership establishes and publicly discloses a
customer satisfaction policy regarding management
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 adopted in
reporting have been disclosed.
C2.4
C2.5
D1
D2
The Partnership publicly discloses sustainability 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 international 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 awareness about
the subject of sustainability and its importance through
social responsibility projects, awareness events, and
trainings.
X
X
X
X
X
X
X
Diversity, Inclusion, and Equal Opportunity
(p.108-109)
Diversity, Inclusion, and Equal Opportunity
(p.108-109)
Environmental Value-oriented and
Responsible Supply Chain Management
(p.166-167)
Human Rights, Business Ethics and
Common Values (p.74)
Our Human Capital (p.109)
Training and Development Our Approach
(p.116)
Human Rights, Business Ethics and
Common Values (p.74)
Employee Loyalty and Happiness (p.112)
Safe and Healthy Work Environment
(p.122-123)
Safe and Healthy Work Environment
(p.122-123)
Digital Security and Wellbeing (p.143)
www.turkcell.com.tr/tr/gizlilik-ve-
guvenlik?page=kisisel-verilerin-korunmasi
Human Rights, Business Ethics and Common
Values (p.74)
www.turkcell.com.tr/todiek
Digital Financial Services (p.68-69)
Social Investment and Sponsorship
Projects (p.170-175)
Environmental Management (p.180)
Customer Satisfaction Management
(p.163)
Interactions with Our Stakeholders
(p.54-55)
About the Report (p.28)
Cooperated National, International and
Non-Governmental Organizations (p.192)
Sustainability Indices and Performance
Indicators (p.92-93)
Turkcell Sustainability Priorities (p.48-49)
Interactions with Our Stakeholders
(p.54-55)
Social Investment and Sponsorship
Projects (p.170-175)
200 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
Group Companies and Other Information
on Corporate Governance
Our Subsidiaries18
lifecell19
lifecell launched operations in Ukraine in
February 2005. The quarterly active sub-
scriber base increased by 1.5 million to 9.9
million in 2023. Lifecell maintains its lead-
ing position in Ukraine in this area, with
smartphone penetration reaching 83.5%
by the end of 2023.
By the end of 2023, lifecell's 4G network
will cover a population of more than 31.5
million and more than 17,000 settlements
in Ukraine. lifecell's 3G and 4.5G networks
cover 78.7% of Ukraine's population and
61.7% of its territory.
lifecell's total number of subscribers in-
creased to 11.7 million in 2023. lifecell’s rev-
enues in local currency terms increased
24.4%, while its EBITDA rose 25.0% resulting
in an EBITDA margin of 58.1% for the full year.
In TRY terms, lifecell’s revenue declined by
2.7% with an EBITDA margin of 58.0% for the
full year.
In March 2023, lifecell won the Operator's
Work Under Fire award in the Best Mo-
bile Innovation Supporting Emergency or
Humanitarian Situations category at the
Glomo Awards, the telecoms
industry's
most prestigious global awards. Lifecell
was recognised for supporting its network
and subscribers with exceptional techno-
logical and digital solutions during the war,
highlighting the heroism and dedication of
the lifecell engineering team.
In May, lifecell enabled its subscribers to
use 5G while roaming in a number of
countries.
18 Not all our subsidiaries are
included in our Subsidiaries section. You can
find the list of subsidiaries under note 39 of
IFRS report which is attached to our Integrated
Annual Report.
19 As per our Company's Board of Directors’
decision dated December 20, 2023; a share
transfer agreement was signed on December
29, 2023 for the transfer of all shares, along
with all rights and debts, of lifecell LLC, LLC
Global Bilgi, and LLC Ukrtower, which are
Turkcell's subsidiaries operating in Ukraine, to
NJJ Capital. The sale of the Ukrainian assets
remains subject to the completion of closing
conditions. As of December 31, 2023, lifecell LLC,
LLC Global Bilgi and LLC UkrTower have been
classified as a disposal group held for sale and
as discontinued operations.
BeST
After joining Turkcell Group in July 2008,
BeST
(Belarusian Telecommunications
Network) became the first mobile op-
erator to offer 3G services in Belarus in
November 2009. As of 31 December 2009,
BeST provided 2G and 3G services in all
cities with more than 10,000 inhabitants
and 2G services on all major intercity mo-
torways and highways in the Republic of
Belarus, achieving a population cover-
age of approximately 99.8% and a geo-
graphical coverage of 93.1% in Belarus.
In August 2016, BeST became one of the
first two operators to offer 4G services
using LTE infrastructure installed by be-
Cloud. BeST offers 4G LTE services in all
regions and major cities of Belarus, with
4G geographical coverage of 89.2% and
population coverage of 98.2%. The share
of 4G subscribers reached 82% of the
3-month active data subscriber base in
2023. Increasing penetration of 4G ser-
vices resulted in average monthly data
consumption per user reaching 19.2 GB.
The 4G network will carry 85% of total
data traffic by 2023.
increasing
BeST continues its transformation from
a communications service provider to a
digital operator, converting its subscrib-
ers into 4G users. Accelerating digital
subscriptions and
its share
of subscriber acquisition, enhancing
self-service capabilities through mo-
bile applications and web channels,
expanding digital service portfolio and
penetration are the key initiatives that
will continue the digitalisation journey in
2023. By bringing together connectivity
and content to enrich customers' digital
experience, BeST is driving ARPU growth
through data services and a diversified
digital services portfolio in line with Turk-
cell's strategy. Accordingly, BeST added
BiP, fizy, lifebox, magazines, TV+, games
and digital book, digital education plat-
forms to its digital services portfolio. By
the end of 2023, 52.3% of 3-month active
subscribers are using at least one digital
service and solution.
BeST continues to develop its self-service
mobile application with new services
and features. The mobile application al-
lows customers to make payments and
transfers using their mobile balance. In
addition, BeST launched an insurance
service on its self-service mobile applica-
tion in 2023, allowing customers to sign up
for various insurance policies. These new
services enhance the seamless digital
experience for customers, and increase
customer engagement and loyalty.
BeST is the first mobile operator in Bela-
rus to launch a digital SIM card activation
service via a mobile application using
facial recognition technology based on
machine learning algorithms in 2020. The
service has been successfully developed
by Lifetech, a wholly owned subsidiary of
BeST. Lifetech was established in 2012 to
provide services in telecommunications
and infrastructure solutions, information
and communication technologies, soft-
ware development and security systems.
Lifetech successfully provides IT-based
solutions to Turkcell Group and other
clients, and carries out software devel-
opment projects both
in Belarus and
abroad.
Kuzey Kıbrıs Turkcell
Established in 1999 as a wholly-owned
subsidiary of Turkcell, Kuzey Kıbrıs Turkcell
continues its operations as the leading
operator in the TRNC with an infrastruc-
ture covering almost the entire popu-
lation and an active subscriber market
share of 62% excluding telemetry ac-
cording to the third quarter data of 2023
released by the Information and Commu-
nication Technologies Authority20.
Lifecell Digital LTD., which entered the
fixed internet market in the TRNC in 2018,
continues its services with the success it
has achieved in this field.
Kuzey Kıbrıs Turkcell became the first
operator to launch 4.5G in the Turkish
Republic of Northern Cyprus on 7 Sep-
tember 2023 by receiving the widest fre-
quency band in the 4G/5G tender. Thus,
with 99.6% population coverage, Turkcell
launched this service in Northern Cy-
prus within 10 months, providing its cus-
tomers with up to 10 times faster internet
infrastructure.
Kuzey Kıbrıs Turkcell's 2023 revenues in-
creased by 20.4% to TRY 1.1 billion.
Turkcell Global Bilgi
Turkcell Global Bilgi offers a new gener-
ation of creative solutions by combining
24 years of experience in customer ex-
perience with digital transformation. As
a strategic business partner to brands,
increase
Turkcell Global Bilgi aims to
customer loyalty and brand revenue by
creating customised solutions to meet
the needs of more than 100 companies,
including Turkcell.
Operating in Türkiye and Ukraine, Turkcell
Global Bilgi is the first Turkish customer
experience centre to operate abroad
with its investment in Ukraine. With 16,657
employees, Turkcell Global Bilgi creates
value by leading the sector with 11,656 fe-
male employees, who make up 70% of the
total workforce.
Ranked among the top 500 IT companies
in Türkiye, Turkcell Global Bilgi provides
research management, customer expe-
rience design, social media management
and technology support services in addi-
tion to call centre services. By implement-
ing its own digital platforms in its R&D
centre, Turkcell Global Bilgi offers digital
services such as robotic process auto-
mation (RPA), cloud-based switchboard
infrastructure, digital assistant, video call-
ing, etc. to businesses.
Global Tower
Global Tower, Türkiye's
leading tow-
er company, currently operates in four
countries. Providing tower leasing, tower
build-sell, tower maintenance and con-
tract management services to telecom
operators, broadcasters, internet service
providers, energy companies and public
institutions, Global Tower has started to
offer satellite services solutions to its cus-
tomers as part of its end-to-end service
approach. Global Tower currently pro-
vides closed-circuit satellite services to
over two thousand points through its own
geographically redundant infrastructure,
and aims to expand its product range
and service diversity by following the
trends in the satellite industry.
The breakdown of Global Tower's tower
portfolio of 11,152 towers as of the end of
Q4 2023 is as follows
䩉Türkiye: 9,163 (owned: 4,737, right of use:
2,189, contract management: 2,237)
䩉Ukraine: 1,038 (owned)
䩉Belarus 836 (right of use)
䩉TRNC: 115 (right of use)
Superonline İletişim Hizmetleri A.Ş.
Turkcell Superonline was established in
2009 through the merger of our subsidi-
ary Tellcom (established in 2004 as Bilişim
Telekomunikasyon and became Tellcom
in 2006) and Superonline acquired from
Çukurova Group. It provides telecommu-
nications services to individual, corporate
and carrier customers under the Turkcell
Superonline brand. It is authorised by the
Information and Communication Tech-
nologies Authority (ICTA) to provide inter-
net service provider, fixed-line telephony
service, infrastructure operation service,
satellite communication service, cable
broadcasting service and mobile virtual
network service. Within the framework
of these authorizations, Turkcell Super-
online's 2023 revenue was TRY 18.5 billion
and EBITDA was TRY 7.0 billion .
As of the end of 2023, Turkcell Superonline
have 3.1 million broadband internet cus-
tomers, of which 2.3 million are on its own
fiber infrastructure, and 1.4 million IPTV
customers under the TV+ brand. As of
the same date, Turkcell Superonline pro-
vides fiber access with speeds of up to 10
Gbps to 5.8 million households in 28 cities
with a fiber length of 62,000 km. In addi-
tion, Turkcell Superonline provides fixed
broadband
internet services to more
households through contracts signed
with other
in
the sector, while some operators ena-
ble broadband internet services to their
customers through Turkcell Superonline's
infrastructure. Turkcell Superonline offers
voice transport and termination, Internet,
infrastructure operators
point-to-point data connections, net-
work security solutions, server hosting in
8 data centres, 4 of which are new gen-
eration, and cloud services to corporate
and operator customers. In line with its
vision of transforming the Silk Road into
the Fiber Road and making Türkiye an In-
ternet hub, which it has been implement-
ing since 2008, the company carried more
than 23TB of capacity with 11 border con-
nection points in 2023.
Turkcell Finansman A.Ş. - Financell
Turkcell Finansman A.Ş., one of the key
players in the Turkish financial sector,
provides financial loan solutions in areas
such as GES loans (solar energy system fi-
nancing loans), used cars, furniture, white
goods, and technology products and
services to corporate and individual cus-
tomers under the "Financell" brand.
Offering its services in around 1,085 Turk-
cell stores, 2,307 DSN+ (Digital Point of Sale)
stores and digital distribution channels
across Türkiye, Financell has maintained
its leading position in the non-banking fi-
nancial sector with the highest number of
customers for years.
Turkcell Finansman A.Ş. has disbursed ap-
proximately 17 million loans worth TRY 40
billion and entered the corporate lending
segment with the digital transformation
loan in 2021. On the other hand, the com-
pany continues to successfully manage
its credit risk thanks to the credit risk in-
frastructure and digital transformation
projects implemented in 2021. Financell
started to provide financing services to
corporate and superonline customers in
2021, and started to operate in non-Turk-
cell channels with new products such as
digital holiday loans and vehicle loans
in 2022. In 2023, Financell focused on
green energy financing, offering favour-
able loans for SPP projects, especially for
the sustainability of rehabilitation in the
earthquake zone. In addition, Financell
deepened the business of used car loans,
corporate
loans,
which it started in 2022. Finally, in 2023,
Financell launched a new model offering
supplier financing to companies.
loans and shopping
20 Active subscriber market
share excluding telemetry
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell Dijital Sigorta A.Ş.
Turkcell Dijital Sigorta A.Ş. was established
with 100% Turkcell Finansman A.Ş. capital
to carry out insurance activities based
on digital and innovative technologies in
non-life insurance branches.
In 2023, Turkcell Dijital Sigorta A.Ş.'s li-
cence applications in Accident, Sickness
/ Health, General Damages, General Li-
ability, Financial Losses, Legal Protection,
Fire and Natural Disasters branches were
registered with the Insurance and Private
Pension Regulatory and Supervisory Au-
thority (SEDDK), Hazir started its opera-
tions with the Financell Kredim Güvende
credit protection insurance product un-
der the "Wiyo" brand in 2023, continued
with the Cyber Security Insurance prod-
uct that secures Turkcell group compa-
nies, and continued its activities with the
Wiyo Healthy Life and Wiyo Home Life
personal accident
insurance package
products launched in November 2023.
Turkcell Sigorta Aracılık Hizmetleri A.Ş.
Turkcell Sigorta Aracılık Hizmetleri A.Ş. aims
to provide solutions in risk management of
customers with individual products.
Turkcell Sigorta Aracılık Hizmetleri A.Ş.
meets the insurance needs of individual
customers as an agency by offering de-
vice insurance, invoice protection and
travel health insurance, and provides cor-
porate insurance services with "Executive
and Manager Liability Insurance" cover-
ing the liabilities of Turkcell Group execu-
tives in connection with the performance
of their duties, and "Elementary Group
Policies" covering the assets of Turkcell
and its group companies against risks
and liabilities such as fire, earthquake,
flood and storm.
Turkcell Ödeme ve Elektronik Para Hiz-
metleri A.Ş. - Paycell
In 2017, Turkcell Ödeme ve Elektronik Para
Hizmetleri A.Ş. (TÖHAŞ) added E-Money
licence to the payment services licence
it obtained from the BRSA in 2016. While
a rapid techfin transformation has been
taking place in the world over the past 10
years, the Turkish market also shows a high
potential for the expansion of techfin ser-
vices with its attractive internal dynamics.
In particular, the high rate of young popu-
lation, high rate of smart device usage, ap-
proximately 30 million potential users with-
out a bank account, still high rate of cash
usage in shopping and rising e-commerce
volume stand out as factors that will sup-
port the rapid increase in the usage rate
of solutions in the techfin field. Since early
2020, this transformation has accelerat-
ed considerably with the impact of the
COVID-19 pandemic that has affected
the world. In particular, changing living
conditions and needs have led customers
to show more interest in digital platforms.
One of the most positively affected sec-
tors was e-commerce. In line with all these
needs and changing habits, our vision
with Paycell was to enable more users to
easily benefit from financial services with
the fast and secure payment solutions we
created by combining technology and fi-
nancial services.
We continue to lead the techfin sector
by reaching record transaction volumes
in many products. In 2023, the number of
Paycell customers reached 8.0 million,
while the number of Paycell application
downloads exceeded 25.3 million with
the new functions added. The total trans-
action volume through Paycell reached
TRY 65.6 billion by the end of 2023.
Sofra Kurumsal ve Ödüllendirme Hiz-
metleri A.Ş.*
Sofra Kurumsal ve Ödüllendirme Hiz-
metleri A.Ş., which provides services in
the field of meal cards, is a meal card
company established in 2018 in partner-
ship with Turkcell, BELBİM A.Ş. and PTT. It
serves under the Paye Kart brand. It has
reached more than 16 thousand member
workplaces across Türkiye.
Paye meal card is the first meal card that
provides the option to be used in trans-
portation. Paye Card, which is a contact-
less card, can be used in transportation in
Istanbul and at all points where Istanbul
Card is valid.
It offers an easy payment service with its
contactless payment feature that saves
time while making meal payments of the
personnel. Paye Card also offers fast and
easy payment via QR method at con-
tracted merchants and market chains
with Paycell QR payment infrastructure.
At the same time, Paye Kart Online pay-
ment option provides convenience and
time saving with home delivery of pur-
chases made over the internet from con-
tracted points.
䩉*We have a shareholding of 66.6%.
Turkcell
Geliştirme A.Ş.
Teknoloji
Araştırma
ve
leading
Since 2007, Turkcell Teknoloji has been
contributing to the development of the
technological infrastructure of Turkcell,
Türkiye's
telecommunications
company, with the strategy of expanding
its products and services to international
markets and providing its unique solutions
to operators abroad. Accordingly, Turk-
cell Teknoloji aims to develop new digital
and ICT services on a global scale in line
with the latest technology and market re-
quirements, and to expand the regions in
which the Turkcell Group provides servic-
es. The products and services developed
by Turkcell Teknoloji today serve more
than 100 million users in 15 countries.
Turkcell continues to rapidly expand its
position in technological studies. With the
motivation to break new ground in Türkiye
and the world, Turkcell Technology con-
tinues to develop as Türkiye's largest and
most competitive R&D organisation with
992 research engineers by 2023. Turkcell
Technology's goal is to "develop innova-
tive technologies in the field of communi-
cation and impact" and to "be a pioneer,
leader and example by making the best
use of the local workforce" in R&D. The
company is broadening its scope from a
technology-oriented network provider
to a service-oriented experience provid-
er and is becoming an R&D centre in do-
mestic and international markets with the
innovative solutions it develops.
Turkcell Teknoloji's focus areas include
big data processing, business
intelli-
gence applications,
intelligent cloud
platform and solutions developed on the
platform, location-based services and
platforms, geographical information sys-
tems, customer relationship management
and solutions, network management
solutions, next generation value-added
services, mobile financial systems, music
and entertainment services, IPTV servic-
es, mobile marketing solutions, projects
for 5G and beyond infrastructure, mo-
bile communication solutions, campaign
management systems, smart SIM card
solutions, digital
identity technologies,
image and video processing, text and
natural language processing (NLP), rec-
ommendation engines, speech analyt-
ics, robotic assistants, robotic process
automation, mobile analytics platforms,
hospital management solutions, artificial
intelligence in healthcare, business ap-
plication solutions, content delivery net-
work (CDN) solutions, over-the-top (OTT),
AIOPS/devops and blockchain solutions.
Since 2007, Turkcell Technology has be-
come the leader in its sector in Türkiye
with 4,114 national and 247 international
patent applications and 1,019 registered
patents. As a pioneer in the production
of new technologies, Turkcell Technol-
ogy has played an important role in the
dissemination of technology by produc-
ing 40 academic and 297 technical pub-
lications on national and international
platforms in 2023. In addition, the com-
pany continued to intensify its product
promotion, conference participation and
training activities in many channels to in-
crease the technology experience of the
ecosystem.
Lifecell Ventures
communications,
The mission of Lifecell Ventures, a whol-
ly-owned subsidiary of Turkcell estab-
lished in the Netherlands, is to offer dig-
content-based
ital
entertainment, music, TV applications
and many technology solutions devel-
oped by Turkcell Group companies and
technology business partners, such as
performance and network monitoring
tools, customer value management plat-
form, to the global market. In 2017, the
company launched its first internation-
al digital solutions partnership with the
revenue sharing model in Moldcell, an
Eastern European operator, with 'BiP' and
'lifebox' products.
Turkcell Enerji Çözümleri ve Elektrik Satış
Ticaret A.Ş. (Turkcell Energy Solutions)
In addition to the telecommunications
sector, Turkcell Enerji Çözümleri ve Elek-
trik Satış Ticaret A.Ş., which started oper-
ations in 2018 under the "Enerjicell" brand,
is responsible for managing energy costs
and coordinating operations to provide
the most advantageous electricity supply
to Turkcell Group companies. Turkcell En-
ergy Solutions is expanding its portfolio in
the energy sector with its investments and
projects in the field of renewable energy
generation and aims to increase its share
in the sector both in terms of generation
and supply. As part of these activities,
the company pioneered the implemen-
tation of renewable energy investments
with a self-consumption model in Turk-
cell-owned buildings and completed
rooftop solar energy projects, particular-
ly in the newly established Ankara Data
Centre. Turkcell Energy Solutions, which
recently added an 18 MW wind power
plant to its portfolio in 2021, aims to con-
tinue its renewable energy investments in
the coming periods and transform Turk-
cell into a company that supplies and
generates electricity from environmen-
tally friendly sources with zero carbon
emissions. In addition, by achieving I-REC
and YEK-G certified sales of the renew-
able energy it provides from 2021, it has
increased the practices and incentives of
its business partners in this field.
Turkcell Dijital İş Servisleri A.Ş. (DBS)
As one of the companies that invests the
most in human resources and technology
in Türkiye, our main goal is to be a reliable
technology partner that provides end-
to-end turnkey solutions to our customers.
Turkcell Dijital İş Servisleri A.Ş. was estab-
lished to be part of our customers' digital
transformation journey and to lead them
as a strategic technology partner in this
area. We enable our customers to move
forward with the most appropriate finan-
cial model in their new technology invest-
ment plans, and focus more on their own
business.
Türkiye'nin Otomobili Girişim Grubu
Sanayi ve Ticaret A.Ş. (Togg)
The relationship between Türkiye's Au-
tomobile Initiative Group Industry and
Trade Inc. (Togg) and Turkcell continues
to strengthen in light of recent develop-
ments. Turkcell is actively enhancing vehi-
cle and fleet safety through the provision
of advanced e-mobility solutions as part
of its digital business services. Holding a
23% stake in Togg, started mass produc-
tion of its C-segment SUV model T10X at
the Gemlik Togg Technology Campus in
2022. So far, there are more than 15,000
T10Xs on Turkish roads and this number
is expected to increase by the end of
the year. Within the ecosystem that will
be created around the smart and con-
nected device, new services, new user
experiences and new business models
in mobility will be developed. To this end,
a strategic cooperation agreement was
signed with Paycell in 2022 to integrate
innovative payment systems and digital
financial solutions into the mobility eco-
system. In 2023, Togg's cooperation with
fizy, our digital music platform, will bring
Togg users together with music. This co-
operation enriches the driving experi-
ence of Togg users and enables them to
spend more enjoyable time in the car.
At Turkcell, we play a pivotal role in pro-
viding essential traffic planning insights to
municipalities and airlines. With the trans-
port data matrices we provide to munici-
palities, we support urban traffic planning
and enable citizens to use public trans-
port systems more efficiently. At the same
time, we help reduce carbon emissions
by reducing traffic density. The data we
provide to airlines enables them to better
analyse passenger flows between cit-
ies and assess seasonal effects. We also
contribute to effective transport planning
in terms of energy efficiency and savings.
Atmosware Technology Training and
Consultancy Inc.
Atmosware was established in 2021 to
develop software products and services,
to train software developers for this pur-
pose, to provide services to our company,
its subsidiaries and other parties inside
and outside the country within this scope
and/or to operate in other areas permit-
ted by law.
Since its establishment, Turkcell Academy
has been a key partner in the "Investing
in Youth, Software for the Future" project
organised in partnership with the Ministry
of National Education. Through this pro-
ject, the company has recruited nearly
150 software developers from the partic-
ipants who completed 6 months of vo-
cational training and field experience. By
closely following the master-apprentice
relationship and balance, the company
has also hired experienced software de-
velopers, bringing the total number of in-
formation technology employees to over
300.
Atmosware’s IT team provide software
product development services both to
our company and to other companies in
the ecosystem. Atmosware, which follows
the principle of remote working, has em-
ployees in 46 different cities. Under the
vision of "81 employees in 81 provinces", At-
mosware aims to spread the employment
in the field of activity all over Türkiye.
204 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Statement Of Compliance With Corporate
Governance Principles
Turkcell İletişim Hizmetleri A.Ş. (“Turkcell” or
the “Company”) is aware of its responsibili-
ties towards its stakeholders, with the belief
that high standards of corporate govern-
ance are key to maintain successful business
practices and to provide long-term eco-
nomic value to the company’s shareholders.
Within this framework, having adopted the
principles of “equality,” “transparency,” “ac-
countability” and “responsibility” that con-
stitute 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 be-
ing implemented in line with the corporate
governance principles.
Turkcell İletişim Hizmetleri A.Ş. places a great
importance on the full compliance with Cor-
porate Governance Principles. Although full
compliance with non-mandatory corporate
governance principles provided in the rel-
evant legislation is aimed, it has yet to be
achieved due to the challenges in the imple-
mentation of certain principles, the incom-
patibilities 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 2023, 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 ex-
planations given for the principles that are
yet to complied with: (i) the Corporate Gov-
ernance Compliance Report (“CGCR”) and
(ii) the Corporate Governance Fact Sheet
(“CGFS”) and (iii) other relevant sections.
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 de-
signed by the Corporate Governance and
Capital Markets Compliance Directorate
within the recommendation of the Corpo-
rate Governance Committee and with the
guidance of Board of Directors., According-
ly, each Board member had completed “the
Board of Directors Performance Evaluation”
for the year 2021 and 2022:
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 ques-
tion contained in this section addresses
issues such as whether there was time-
ly, clear and comprehensive information
regarding the meeting agenda
items,
whether financial information highlights
important issues and trends, and the effec-
tiveness and impartiality of the meetings.
b. Board Composition and Function: The set
of question contained in this section ad-
dresses issues such as whether the mem-
bers have the necessary qualifications,
experience and skills, whether a sufficient
number of meetings are held, and the
functioning of the committees.
c. Board Dynamics: The set of question con-
tained 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.
d. Board Members’ standards of conduct:
The set of question contained in this sec-
tion 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
In line with the aim of using the improvement
identified after the performance
areas
evaluation process as the basis for ad-
vanced corporate governance practices,
a number of actions were taken at corpo-
rate level in 2022, including but not limited to
the implementation of a new platform that
ensures the digitalization of access to the
Board of Directors meeting documentation,
the transfer of documentation to a secure
platform and continuous access to the rele-
vant documentation and, Strategy and Dig-
italization Committee was established.
In 2023, improvement areas were identified
from the outputs of performance evalu-
ation process carried out by the Board of
Directors for the year 2022 and focus areas
relating to corporate governance practic-
es were determined with relevant depart-
ments within the Company by conducting
a gap analysis for the issues communicated
to our Company both from our shareholders
and from all other corporate governance
stakeholder.
In this context, the structure of the Eth-
ics Committee was reorganized with the
amendments adopted by Board of Direc-
tors to ensure senior management’s the
oversight of ethical policies, and an internal
audit was conducted regarding awareness
of Turkcell Common Values and Code of
Business Ethics for 2023.
Within the scope of NYSE’s listing rules re-
garding clawback policy that are appli-
cable to our company, which entered into
force on 2 October 2023, it was obligated
for public companies to recoup/recover
erroneously awarded performance based
compensations from defined executive per-
sons (if any) under certain criteria if the Com-
pany is required to prepare a restatement of
incomplete, inaccurate or misleading finan-
cial tables. In this context, our Company’s
Board of Directors adopted Clawback Poli-
cy with a resolution dated 7 November, 2023.
Audit Committee, consisting of independent
members, is designated for the administra-
tion of the Clawback Policy.
Disclosures regarding other issues, within
the framework of the relevant legislation,
particularly CMB
legislation and Turkish
Commercial Code are given below:
䩉 No extraordinary general assembly was
held in 2023.
䩉 No administrative or judicial sanctions
were imposed on our Company’s upper
management.
䩉 Explanations regarding the amendment
of the Company's Articles of Associa-
tion in 2023, are included in the ordinary
general assembly meeting minutes,
which was held on September 13, 2023
(minutes)
䩉 Turkish Commercial Code Article 376 is
not applicable as the Company made
profits in 2023.
䩉 There are no cross-ownership subsidiary
in which the direct contribution to the
capital exceeds 5%.
䩉 Information regarding the changes in the
Board of Directors in 2023 is included in the
ordinary general assembly meeting min-
utes, which was held on 13 September 2023.
Considering the developments and best
practices, studies will be carried out to im-
prove our corporate governance practices
and ensure better operation of the mech-
anisms 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.
Corporate Governance Principles Compliance Report
Compliance Status
Yes
Partial
No
Ex-
empted
Not Ap-
plicable
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. General Assembly
1.3.2 - The company ensures the clarity of the General
Assembly agenda, and that an item on the agenda
does not cover multiple topics.
1.3.7 - Insiders with privileged information have
informed the board of directors about transactions
conducted on their behalf within the scope of the
company's activities in order for these transactions to
be presented at the General Shareholders' Meeting.
1.3.8 - Members of the board of directors who are
concerned with specific agenda items, auditors, and
other related persons, as well as the officers who are
responsible for the preparation of the financial statements
were present at the General Shareholders' Meeting.
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, without
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
twenthieth of the outstanding shares, and expand the
scope of the minority rights.
1.6. Dividend Right
1.6.1 - The dividend policy approved by the General
Shareholders' Meeting is posted on the company website.
1.6.2 - The dividend distribution policy comprises the
minimum information to ensure that the shareholders
can have an opinion on the procedure and principles of
dividend distributions in the future.
1.6.3 - The reasons for retaining earnings, and their
allocations, are stated in the relevant agenda item.
1.6.4 - The board reviewed whether the dividend policy
balances the benefits of the shareholders and those of
the company.
X
X
X
X
X
X
X
X
X
X
X
X
X
X
No information regarding this kind of activities were
received from such person following the routine
information requests made before the general
assembly meetings.
Donations and charities are included seperately
on the general assembly agenda; but information
regarding the amount and beneficiaries of these
donations and charities are given 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-iliskileri/documents/pdf/Turkcell-Genel-Kurul-
Bilgilendirme-Dokumani.pdf
X
There are no mutual participation.
Tresholds determined by the respective legislation are
in effect.
X
Turkcell distributed dividend in 2023.
206 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 207
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Compliance Status
Yes
Partial
No
Ex-
empted
Not Ap-
plicable
Explanation
Compliance Status
Yes
Partial
No
Ex-
empted
Not Ap-
plicable
Explanation
X
X
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
X
2.1.2-The shareholding structure (names, privileges,
number and ratio of shares, and beneficial owners of
more than 5% of the issued share capital) is updated on
the website at least every 6 months.
2.1.4 - The company website is prepared in other
selected foreign languages, in a way to present exactly
the same information with the Turkish content.
2.2. Annual Report
2.2.1 - The board of directors ensures that the annual
report represents a true and complete view of the
company's activities.
2.2.2 - The annual report includes all elements listed in
Corporate Governance Principle 2.2.2
3.1. Corporation’s Policy on Stakeholders
3.1.1- The rights of the stakeholders are protected
pursuant to the relevant regulations, contracts and
within the framework of bona fides principles.
3.1.3 - Policies or procedures addressing stakeholders'
rights are published on the company's website.
3.1.4 - A whistleblowing programme is in place for
reporting legal and ethical issues.
3.1.5 - The company addresses conflicts of interest
among stakeholders in a balanced manner.
X
X
X
X
X
X
3.2. Supporting The Participation of The Stakeholders in The Corporation’s Management
3.2.1 - The Articles of Association, or the internal
regulations (terms of reference/manuals), regulate the
participation of employees in management.
3.2.2 - Surveys/other research techniques, consultation,
interviews, observation method etc. were conducted
to obtain opinions from stakeholders on decisions that
significantly affect them.
3.3. Human Resources Policy
3.3.1 - The company has adopted an employment policy
ensuring equal opportunities, and a succession plan for
all key managerial positions.
3.3.2 - Recruitment criteria are documented.
3.3.3 - The company has a policy on human resources
development, and organises trainings for employees.
3.3.4 - Meetings have been organised to inform
employees on the financial status of the company,
remuneration, career planning, education and health.
3.3.5 - Employees, or their representatives, were notified
of decisions impacting them. The opinion of the related
trade unions was also taken.
3.3.6 - Job descriptions and performance criteria
have been prepared for all employees, announced to
them and taken into account to determine employee
remuneration.
X
X
X
X
X
X
X
X
Without prejudice to 137/3, due to Article 7.5 of the AoA
we ticked the "Partial" box
X
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 facilitated through internal regulations of the
company and various company practices.
Our employees' rights to 'Assembly, Freedom of
Association, and Unionizing' as expressed in the
Constitution of the Republic of Türkiye are respected.
In addition to this, as of 2023, there has been
no written application made to Turkcell by any
authorized labour union.
3.3.7 - Measures (procedures, trainings, raising
awareness, goals, monitoring, complaint mechanisms)
have been taken to prevent discrimination, and to
protect employees against any physical, mental, and
emotional mistreatment.
3.3.8 - The company ensures freedom of association
and supports the right for collective bargaining.
3.3.9 - A safe working environment for employees is
maintained.
3.4. Relations With Customers and Suppliers
3.4.1-The company measured its customer satisfaction,
and operated to ensure full customer satisfaction.
3.4.2 - Customers are notified of any delays in handling
their requests.
3.4.3 - The company complied with the quality
standards with respect to its products and services.
3.4.4 - The company has in place adequate controls to
protect the confidentiality of sensitive information and
business secrets of its customers and suppliers.
3.5. Ethical Rules and Social Responsibility
3.5.1 - The board of the corporation has adopted a
code of ethics, disclosed on the corporate website.
3.5.2- The company has been mindful of its social
responsibility and has adopted measures to prevent
corruption and bribery.
4.1. Role Of the Board of Directors
4.1.1-The board of directors has ensured strategy and
risks do not threaten the long term interests of the
company, and that effective risk management is in
place.
4.1.2-The agenda and minutes of board meetings
indicate that the board of directors discussed
and approved strategy, ensured resources were
adequately allocated, and monitored company and
management performance.
4.2. Activities Of the Board of Directors
4.2.1-The board of directors documented its meetings
and reported its activities to the shareholders.
4.2.2-Duties and authorities of the members of the
board of directors are disclosed in the annual report.
4.2.3 - The board has ensured the company has an
internal control framework adequate for its activities,
size and complexity.
4.2.4-Information on the functioning and effectiveness
of the internal control system is provided in the annual
report.
4.2.5 - The roles of the Chairman and Chief Executive
Officer are separated and defined.
4.2.7- The board of directors ensures that the Investor
Relations department and the corporate governance
committee work effectively. The board works closely
with them when communicating and settling disputes
with shareholders.
4.2.8 - The company has subscribed to a Directors and
Officers liability insurance covering more than 25% of
the capital.
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Compliance Status
Yes
Partial
No
Ex-
empted
Not Ap-
plicable
Explanation
1. SHAREHOLDERS
1.1. Facilitating the Exercise of Shareholders Rights
Corporate Governance Information Form
X
X
X
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
written format, were presented to other members.
4.4.4 - Each member of the board has one vote.
4.4.5 - The board has a charter/written internal rules
defining the meeting procedures of the board.
4.4.6 -Board minutes document that all items on the
agenda are discussed, and board resolutions include
director's dissenting opinions if any.
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
board directors or executives, nor extended their
lending period or enhanced the amount of those loans,
or improve conditions thereon, and did not extend loans
under a personal credit title by third parties or provided
guarantees such as surety in favour of them.
X
X
X
X
X
X
X
X
X
X
X
4.6.5 - The individual remuneration of board members
and executives is disclosed in the annual report.
X
Within the framework of Board Diversity Policy, the
target of having at least two female board members
was achieved.
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.
X
No service has been received from an outside counsel
in 2023.
Information regarding Board of Directors'
performance evaluation can be found in the annual
report.
In the Ordinary General Assembly Dated 13 September
2023, it was decided that the Chairman and each
member of the Board of Directors have a monthly
compensation of TRY 100 thousand during the term
of office. In parallel with the common practice,
aggregate amount of the executive remuneration is
disclosed in the annual report.
The number of investor meetings (conference, seminar/etc.) organised by the company during the
year
In 2023, Investor Relations Department attended 9 investor
conferences and 2 roadshow meetings, conducted a total
of 258 one-on-one meetings.
1.2. Right to Obtain and Examine Information
The number of special audit request(s)
The number of special audit requests that were accepted at the General Shareholders' Meeting
1.3. General Assembly
0
0
Link to the PDP announcement that demonstrates the information requested by Principle 1.3.1. (a-d)
https://www.kap.org.tr/en/Bildirim/1180053
Whether the company provides materials for the General Shareholders' Meeting in English and Turkish
at the same time
The links to the PDP announcements associated with the transactions that are not approved by the
majority of independent directors or by unanimous votes of present board members in the context
of Principle 1.3.9
The links to the PDP announcements associated with related party transactions in the context of
Article 9 of the Communique on Corporate Governance (II-17.1)
The links to the PDP announcements associated with common and continuous transactions in the
context of Article 10 of the Communique on Corporate Governance (II-17.1)
The name of the section on the corporate website that demonstrates the donation policy of the
company
The relevant link to the PDP with minute of the General Shareholders' Meeting where the donation
policy has been approved
The number of the provisions of the articles of association that discuss the participation of
stakeholders to the General Shareholders' Meeting
Provided in English as well.
No transaction has been executed in the context of
Principle 1.3.9
No related party transactions has been executed above
the tresholds.
No related party transactions has been executed above
the treshold.
https://www.turkcell.com.tr/en/aboutus/investor-relations/
corporate-governance/donation-policy
https://kap.org.tr/en/Bildirim/517918
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://s.turkcell.com.tr/
SiteAssets/Hakkimizda/yatirimci-iliskileri/documents/pdf/
Turkcell-Genel-Kurul-Bilgilendirme-Dokumani.pdf
The percentage of ownership of the largest shareholder
26.2%
1.5. Minority Rights
Whether the scope of minority rights enlarged (in terms of content or the ratio) in the articles of the
association
No
If yes, specify the relevant provision of the articles of association.
Not available.
1.6. Dividend Right
The name of the section on the corporate website that describes the dividend distribution policy
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 information as to use of the dividend.
PDP link to the related general shareholder meeting minutes in case the board of directors
proposed to the general assembly not to distribute dividends
Dividends are distributed in 2023.
Dividends are distributed in 2023.
General Assembly Meetings
General Meeting Date
The number of information requests received by the company regarding the clarification of the
agenda of the General Shareholders' Meeting
Shareholder participation rate to the General Shareholders' Meeting
Percentage of shares directly present at the GSM
Percentage of shares represented by proxy
13.09.2023
0
70.80%
4.91%
65.89%
Specify the name of the page of the corporate website that contains the General Shareholders'
Meeting minutes, and also indicates for each resolution the voting levels for or against
Specify the name of the page of the corporate website that contains all questions asked in the
general assembly meeting and all responses to them
The number of the relevant item or paragraph of General Shareholders' Meeting minutes in relation
to related party transactions
https://www.turkcell.com.tr/en/aboutus/
investor-relations/corporate-governance/
general-assembly-information
https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/
yatirimci-iliskileri/documents/pdf/2022-GK-Minutes.pdf
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/1194650
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES 2. DISCLOSURE AND TRANSPARENCY
2.1. Corporate Website
Specify the name of the sections of the website providing the information requested by the
Principle 2.1.1.
If applicable, specify the name of the sections of the website providing the list of shareholders
(ultimate beneficiaries) who directly or indirectly own more than 5% of the shares.
https://www.turkcell.com.tr/en/aboutus/
investor-relations
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 demonstrate the
information on the duties of the members of the board of directors and executives conducted out
of the company and declarations on independence of board members
b) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on committees formed within the board structure
c) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on the number of board meetings in a year and the attendance of the members to
these meetings
ç) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on amendments in the legislation which may significantly affect the activities of the
corporation
d) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on significant lawsuits filed against the corporation and the possible results thereof
e) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on the conflicts of interest of the corporation among the institutions that it purchases
services on matters such as investment consulting and rating and the measures taken by the
corporation in order to avoid from these conflicts of interest
f) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on the cross ownership subsidiaries that the direct contribution to the capital exceeds
5%
g) The page numbers and/or name of the sections in the Annual Report that demonstrate the
information on social rights and professional training of the employees and activities of corporate
social responsibility in respect of the corporate activities that arises social and environmental
results
3. STAKEHOLDERS
3.1. Corporation’s Policy on Stakeholders
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.
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 37 of IFRS 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 39 of IFRS 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
The number of definitive convictions the company was subject to in relation to breach of
employee rights
It is not disclosed in the website of the Company.
20
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 regulation
addressing the participation of employees on management bodies
Corporate bodies where employees are actually represented
Not available.
Not available.
3.3. Human Resources Policy
The role of the board on developing and ensuring that the company has a
succession plan for the key management positions
The name of the section on the corporate website that demonstrates the
human resource policy covering equal opportunities and hiring principles.
Also provide a summary of relevant parts of the human resource policy.
Board of Directors, when necessary, get involved in the procees through
Nomination Committee within the framework of the Committee's
roles&responsibilities. https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/
yatirimci-iliskileri/documents/pdf/Nomination-Committe-Charter.pdf
Turkcell is an equal opportunity employer and considers all qualified applicants
for employment regardless of disability, race, color, religion, 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 Türkiye
b.Not to be deprived from civil rights
c.Not to have a disease that will prevent him/her from working or
pose a threat to the environment
d.Not to be sentenced for an infamous crime
e.Not under obligation of an involuntary servitude
f.To have a graduate degree
g.To have required skills determined specifically to the title and role
(such as experience, field of graduation, certificate etc.)
h.”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
The link to the relevant section on equal opportunities on the corporate
website is as follows (in Turkish): https://www.turkcell.com.tr/tr/hakkimizda/
insan-kaynaklari/firsat-esitligi-politikamiz
Information for all career opportunities, including positions and recruitment
criteria, are publicly available in the following link (in Turkish): https://kariyerim.
turkcell.com.tr/kariyer-firsatlari
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
With respect to work accident cases, there are no final court decision which are
against our Company.
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.
Any measures combating any kind of corruption including embezzlement
and bribery
https://www.turkcell.com.tr/en/aboutus/corporate-social-responsibility/
sustainability
For our Company it is essential to carry out its activities in a fair, honest, legal
and ethical manner. Turkcell Group Anti-Bribery and Corruption (“ABC”) Policy
demonstrates and reflects our Company’s Board of Director’s commitment to the
highest prevailing national and international anti-corruption and bribery standards.
Turkcell expects the same degree of commitment from group companies as well.
Within the main framework of the ABC Policy; in April 2018 Corporate Governance
& ABC Program Office has been established and an ABC program which provides
necessary risk based trainings and establishes internal communication, and takes
necessary preventive measures to ensure compliance with the rules has been
initiated. With the establishment of the ABC Office, direct and efficient channels
have been designed to access the Board of Directors, its committees and Senior
Management with respect to ABC compliance related matters. ABC Office is the
first contact point so that values and processes set by the ABC Program to be
understood well and set these in motion along with Company’s dynamics.
(Please see https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/anti-bribery-and-corruption-policy to obtain more information on our
ABC Policy). Starting from 1 January 2021, Corporate Governance & ABC Program
Office continues its activities under the title of "Corporate Governance & Capital
Markets Compliance Directorate" with the same direct reporting to board and
autonomous structure.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES https://www.kap.org.tr/en/Bildirim/1121320
Composition of Board Committees-I
4. BOARD OF DIRECTORS -I
4.2. Activity of the Board of Directors
Date of the last board evaluation conducted
Whether the board evaluation was externally facilitated
Whether all board members released from their duties at the GSM
Name(s) of the board member(s) with specific delegated duties and
authorities, and descriptions of such duties
Number of reports presented by internal auditors to the audit committee
or any relevant committee to the board
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
The performance evaluation made with the coordination of Corporate Governance
& Capital Markets Compliance unit is concluded in December 2023 upon Board
Members' fulfillment of the evaluation forms.
No
Yes
There is no executive member within the Board of Directors
20
Information provided in the Annual Report under Effective Risk and Crisis
Management section.
Name of the Chairman
Name of the CEO
Şenol Kazancı
Ali Taha Koç
CEO and Chair functions are not combined.
If the CEO and Chair functions are combined: provide the link to the
relevant PDP annoucement 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
Board of Directors Diversity Policy was adopted.
https://ffo3gv1cf3ir.merlincdn.net/DeviceDocumentLibrary/bireysel/Diger/yonetim-
kurulu-cesitlilik-politikasi.pdf
The number and ratio of female directors within the Board of Directors
There are 2 members. Ratio to the total number of members is 22.22%.
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
Şenol Kazancı
Serdar Çetin
Afif Demirkıran
Nail Olpak
Hüseyin Arslan
Figen Kılıç
Julian Horn Smith
Ayşe Nur Bahçekapılı
Melikşah Yasin
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Non-Executive
Board Member
Not An
Independent
Board Member
Independent
Board Member
Independent
Board Member
Not An
Independent
Board Member
Independent
Board Member
Not An
Independent
Board Member
Not An
Independent
Board Member
Not An
Independent
Board Member
Not An
Independent
Board Member
April 15, 2021
Not Considered. No
June 16, 2022
March 6, 2020
https://www.kap.org.
tr/en/Bildirim/1037312
https://www.kap.org.
tr/en/Bildirim/928569
Considered.
No
Considered.
No
March 6, 2020
Not Considered. No
April 15, 2021
https://www.kap.org.
tr/en/Bildirim/928569
Considered.
No
January 29, 2021
Not Considered. No
April 15, 2021
Not Considered. No
September 14,
2023
September 13,
2023
Not Considered. No
Not Considered. No
No
Yes
No
Yes
Yes
No
Yes
No
No
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
8
Director average attendance rate at board meetings
100.00%
Whether the board uses an electronic portal to support its work or not
Yes
Number of minimum days ahead of the board meeting to provide
information to directors, as per the board charter
The name of the section on the corporate website that demonstrates
information about the board charter
Number of maximum external commitments for board members as per the
policy covering the number of external duties held by directors
4.5. Board Committees
Page numbers or section names of the annual report where information
about the board committees are presented
Link(s) to the PDP announcement(s) with the board committee charters
Within the framework of our actions to enhance Corporate Governance practices
and improve the board of directors' access to information, the previous deadline
of "5 days before the meeting" has been updated as "reasonable time".
We do not disclose the charter in the company's website.
We do not have such policy.
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.kap.org.tr/en/Bildirim/1215095
https://www.kap.org.tr/en/Bildirim/1186832
Names Of The Board Committees
Name-Surname of Committee
Members
Whether Committee Chair Or Not
Whether Board Member Or Not
Audit Committee
Audit Committee
Audit Committee
Serdar Çetin
Afif Demirkıran
Hüseyin Arslan
Corporate Governance Committee Serdar Çetin
Corporate Governance Committee Melikşah Yasin
Corporate Governance Committee Özlem Yardım
Corporate Governance Committee Emre Alpman
Nomination Committee
Nomination Committee
Nomination Committee
Hüseyin Arslan
Şenol Kazancı
Melikşah Yasin
Early Detection of Risk Committee
Afif Demirkıran
Early Detection of Risk Committee
Figen Kılıç
Early Detection of Risk Committee
Ayşe Nur Bahçekapılı
Remuneration Committee
Remuneration Committee
Hüseyin Arslan
Şenol Kazancı
Remuneration Committee
Nail Olpak
Strategy and Digitalization
Commiittee
Strategy and Digitalization
Commiittee
Strategy and Digitalization
Commiittee
Strategy and Digitalization
Commiittee
Strategy and Digitalization
Commiittee
Afif Demirkıran
Şenol Kazancı
Serdar Çetin
Tolga Kılıç
Mustafa Demirhan
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
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES 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 presented in your annual report (Page number or
section name in the annual report)
Information provided in the Annual Report under Turkcell Group: 2023 Financial &
Operational Review section.
Specify the section of website where remuneration policy for executive
and non executive directors are presented.
https://www.turkcell.com.tr/en/aboutus/investor-relations/
corporate-governance/compensation-policy
Specify where the individual remuneration for board members and senior
executives are presented in your annual report (Page number or section
name in the annual report)
Information provided under note 38 of IFRS 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
Audit Committee
Corporate Governance
Committee
Nomination Committee
Early Detection of Risk
Committee
100%
50%
100%
100%
Remuneration Committee
100%
Strategy and Digitalization
Committee
40%
100%
25%
33%
33%
33%
40%
8
3
0
5
5
3
8
3
1
6
5
3
Roles of Turkcell Board Members at Other Companies
Duties Outside the Group: Company Name
Duties Outside the Group: Title/
Position
Still Working in the
Related Company?
Board Member
Name-Surname
Şenol Kazancı
Nail Olpak
-
Pak Yatırım İnşaat Sanayi ve Ticaret A.Ş.
NORA Elektrik Malzemeleri Sanayi ve Ticaret A.Ş.
ANDEVA Özel Eğitim Inşaat ve Özel Sağlık Hizmetleri A.Ş.
Girişim Kitle Fonlama Platformu A.Ş.
Avrupa Otoyolu Yatırım ve İşletme A.Ş.
KMO Anadolu Otoyol İşletmesi A.Ş.
Marmara Otoyolu Yatırım ve İşletme A.Ş.
Marmara Otoyol İnşaatı Adi Ortaklığı Ticari İşletmesi
KRP Otoyol Inşaati Adi Ortaklığı Ticari İşletmesi
NARKARA Elektrik Üretim Sanayi ve Ticaret A.Ş.
HMN İnşaat Enerji Sanayi ve Ticaret A.Ş.
Pak Yatırım Ventures Teknoloji Yatırımları San. ve Tic. A.Ş.
Pak Yatırım Enerji Sanayi ve Ticaret A.Ş.
Pak Yatırım Tarım Hayvancılık Sanayi ve Ticaret A.Ş.
STARTUP A.Ş.
TÜRK EXİMBANK A.Ş.
-
Melikşah Yasin
Ayşe Nur Bahçekapılı Presidential Legal Policies Board
Afif Demirkıran
Figen Kılıç
Hüseyin Arslan
Serdar Çetin
Sir Julian Horn-Smith
-
Istanbul Chamber of Commerce
Teknopark Istanbul
Istanbul Medipol University
Purple Crest Investments LLP
Pambridge LTD
AlixPartners (Global)
Digicel Group (Bermuda)
eBuilder (Swedish Tech/Software Company based in Stock-
holm, Sweden)
Cybereason (USA)
Viasat (USA)
-
Chairman of the Board
Chairman of the Board
No
No
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Member of the Board
No
No
No
No
No
Member of the Board
-
Member
-
Member of the Assembly
Member of the Board
Professor / Dean
Partner
Director
Senior Advisor
Director
Director
Director
Senior Advisor
-
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
-
Yes
-
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Conclusion of the Subsidiary Report
01.01.2023 - 31.12.2023 Fiscal Year Conclusion of the Report on the relationship among the Parent Company and the subsidiaries
as per Article 199 of the Turkish Commercial Code: Details of the legal transactions of our Company with TVF Bilgi Teknolojileri
İletişim Hizmetleri Yat. San. ve Tic. A.Ş. and its subsidiaries during the fiscal year 2023 are given in the above tables. There is nei-
ther 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 conformity
with the market during the fiscal year 2023 are included in this Report.
216 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 217
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell Group: 2023 Financial & Operational Review
Our annual consolidated financial statements including our consolidated statements of financial position as of December 31,
2023 and 2022 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, 2023 and the related notes included in this annual report have been pre-
pared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards
Board (“IFRS Report”). The following financial and operational overview focuses principally on the developments and trends in
our business in the full year 2023 and should be read in conjunction with the IFRS report. This consolidated financial statement
contains the Company’s financial information prepared in accordance with International Accounting Standard 29, Financial
Reporting in Hyperinflationary Economies (“IAS29"). This release includes forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933, Section 21E of the U.S. Securities Exchange Act of 1934 and the Safe Harbor pro-
visions of the U.S. Private Securities Litigation Reform Act of 1995. This includes, in particular, our targets for revenue, EBITDA
margin and operational capex for 2024. 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 2023 refer to the same item for the year end of 2022 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
Administrative expenses/Revenue
Selling and marketing expenses/Revenue
Net impairment losses on financial and contract assets
EBITDA2
EBITDA Margin
Depreciation and amortization
EBIT3
EBIT Margin
Net finance income / (costs)
Finance income
Finance costs
Monetary gain / (loss)
Other income / (expenses)
Non-controlling interests
Share of profit of equity accounted investees
Income tax income/(expense)
Profit /(loss) from discontinued operations
Net Income
FY22
93,486.8
(49,084.9)
47.5%
(2,579.4)
(2.8%)
(4.9%)
(622.0)
36,607.7
39.2%
(32,596.0)
4,011.7
4.3%
(224.4)
3,957.7
(11,949.2)
7,767.1
(1,058.4)
1.6
522.2
2,785.3
842.4
6,880.4
Year
FY23
107,116.2
(53,119.0)
50.4%
(3,429.5)
(3.2%)
(5.3%)
(1,008.2)
43,877.1
41.0%
(31,299.0)
12,578.1
11.7%
(3,451.1)
12,663.7
(19,931.6)
3,816.9
(4,765.6)
21.8
1,525.2
4,675.9
1,969.7
12,554.0
y/y%
14.6%
8.2%
2.9pp
33.0%
(0.4pp)
(0.4pp)
62.1%
19.9%
1.8pp
(4.0%)
213.5%
7.4pp
1,437.9%
220.0%
66.8%
(50.9%)
350.3%
1,262.5%
192.1%
67.9%
133.8%
82.5%
(1) Excluding depreciation and amortization expenses.
(2) EBITDA is a non-GAAP financial measure. See page 16 on our FY2023 Press Release for the explanation of how we calculate Adjusted
EBITDA and its reconciliation to net income.
(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.
Consolidated Balance Sheet Data (at period end) (million TRY)
2022
Cash and cash equivalents
Total assets
Long term debt
Total debt
Total liabilities
Total shareholders’ equity / Net Assets
Summary Consolidated Cash Flow Statement (million TRY)
Net cash inflow from operating activities
Net cash outflow from investing activities
Net cash (outflow)/inflow from financing activities
Effects of exchange rate changes on cash and cash equivalents
Cash and Cash Equivalents
Profitability and Solvency Ratios (%)
Gross Profit Margin1
EBITDA Margin
EBIT Margin
Net Profit Margin
Total Liability / Equity Ratio
Net Debt / EBITDA Multiple2
42,776.2
234,989.2
61,185.3
88,737.4
125,611.2
109,377.9
2022
42,281.1
(31,712.1)
3,388.4
(21,614.0)
42,742.2
2022
47.5%
39.2%
4.3%
7.4%
114.8%
0.9x
2023
49,978.7
247,083.3
57,946.6
84,084.2
124,848.5
122,234.9
2023
41,721.5
(20,905.8)
6,769.3
(16,502.4)
53,824.9
2023
50.4%
41.0%
11.7%
11.7%
102.1%
0.5x
Change%
16.8%
5.1%
(5.3%)
(5.2%)
(0.6%)
11.8%
Change%
(1.3%)
(34.1%)
99.8%
(23.6%)
25.9%
Change%
2.9pp
1.8pp
7.4pp
4.3pp
(12.7pp)
(0.4x)
(1) Excluding depreciation and amortization expenses.
(2) 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.
Explanations:
Revenue: of the Group grew by 14.6% year-on-year in FY23. This growth is attributable to the expanding customer base of
Turkcell Türkiye driven by the postpaid subscriber base, and price adjustments. Additionally, revenue growth was supported
by our techfin business and digital services.
For the full year, Turkcell Türkiye revenues, comprising 86% of Group revenues, grew 18.0% to TRY91,953 million (TRY77,952 million).
䩉Consumer business4 rose 18.7% driven mainly by subscriber net additions both in mobile and fixed segments, price adjust-
ments and upsell efforts.
䩉Corporate revenues4 rose 20.3% mainly supported by digital business services revenue growth of 23.0%.
䩉Standalone digital services revenues from consumer and corporate segments grew 19.4% driven mainly by an expanding
standalone paid user base.
䩉Wholesale revenues grew 3.3% to TRY6,475 million (TRY6,269 million).
(4) Following the change in the organizational structure, the revenues from sole proprietorship subscribers that we define as
Merchant, which were previously managed under the Corporate segment, are being reported under the Consumer segment as of and from
the third quarter of 2023. Within this scope, past data has been revised for comparative purposes.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Turkcell International revenues (excl. Ukraine operations), comprising 2% of Group revenues decreased by 1.8% to TRY2,626
million (TRY2,673 million).
Net income of the Group increased by 82.5% to TRY12.6 billion (TRY6.9 billion) in FY23. This resulted mainly from strong perfor-
mance at the revenue and EBITDA levels and the positive impact of deferred income tax expense.
Techfin segment revenues, comprising 4% of Group revenues, increased by 28.9% to TRY4,569 million (TRY3,545 million). This was
driven by a 28.6% rise in Paycell revenues and 27.7% growth in Financell revenues. Please refer to the Techfin section for details.
Other subsidiaries’ revenues, at 7% of Group revenues, including mainly consumer electronics sales revenues, and non-group
energy business revenues decreased by 14.5% to TRY7,969 million (TRY9,317 million).
Cost of revenue (excluding depreciation and amortization) decreased to 49.6% (52.5%) as a percentage of revenues for the full
year of 2023. This was driven mainly by the decline in interconnection cost (1.9pp), energy cost (1.5pp), and cost of goods sold
(1.5pp), despite the increase in personnel expenses (1.5pp), and other cost items (0.5pp) as a percentage of revenues for the full
year.
Administrative expenses increased to 3.2% (2.8%) as a percentage of revenues for the full year. This was mainly due to in-
creased personnel expenses..
Selling and marketing expenses increased to 5.3% (4.9%) as a percentage of revenues in FY23. This was driven by the increase
in personnel expenses (0.7pp), despite the decline in marketing expenses (0.1pp) and other expenses (0.2pp) as a percentage
of revenues in FY23.
Net impairment losses on financial and contract assets was at 0.9% (0.7%) as a percentage of revenues in FY23.
EBITDA1 rose by 19.9% year-on-year in FY23 leading to an EBITDA margin of 41.0% with a 1.8pp improvement (39.2%).
䩉Turkcell Türkiye’s EBITDA rose 24.1% to TRY40,663 million (TRY32,771 million) leading to an EBITDA margin of 44.2% (42.0%).
䩉Turkcell International (excl. Ukraine operations) EBITDA increased 9.2% to TRY973 million (TRY891 million) driving an EBITDA
margin of 37.1% (33.3%) on 3.8pp improvement.
䩉Techfin segment EBITDA declined by 8.1% to TRY1,608 million (TRY1,750 million) with an EBITDA margin of 35.2% (49.3%). The key
factor behind the year-on-year decline in EBITDA margin was the rise in funding cost for Financell compared to the previous
year.
䩉The EBITDA of other subsidiaries declined by 47% to TRY633 million for the full year (TRY1,196 million).
Depreciation and amortization expenses decreased by 4.0% year-on-year for the full year.
Net finance costs, increased to TRY3,451 million (TRY224 million) in FY23. This was driven mainly by higher FX losses which were
partially offset by derivative gains, and the fair value gains registered on currency-protected time deposits. Additionally, high-
er interest expenses limited the positive impact.
Other expenses, increased to TRY4,766 million (TRY1,058 million) for the full year mainly due to donation and litigation expenses.
Income tax income/(expense), Tax income of TRY4,676 million (TRY2,785 million) was reported, mainly due to an increase in
deferred tax income triggered by the implementation of inflationary accounting in statutory accounts.
Total cash & debt: Consolidated cash as of December 31, 2023, increased to TRY49,979 million compared to TRY42,776 million as
of December 31, 2022. This was driven mainly by the positive impact of currency movements. Excluding FX swap transactions,
53% of our cash is in US$, 20% in EUR, 2% CNY, and 25% in TRY.
Consolidated debt as of December 31, 2023, decreased to TRY84,084 million from TRY88,737 million as of December 31, 2022 due
mainly to the impact of currency movements. Please note that TRY2,428 million of our consolidated debt is comprised of lease
obligations. Please note that 45% of our consolidated debt is in US$, 32% in EUR, 3% in CNY, 1% in BYN, and 20% in TRY.
Net debt1 as of December 31, 2023, was at TRY23,803 million with a net debt to EBITDA ratio of 0.5x times.
Turkcell Group had a long FX position of US$22 million at the end of the year (Please note that this figure takes hedging port-
folio and advance payments into account). The long FX position of US$22 million is in line with our FX neutral definition, which is
between -US$200 million and +US$200 million.
Capital expenditures: Capital expenditures, including non-operational items were at TRY33,950 million in FY23.
For the full year, operational capital expenditures (excluding license fees) at the Group level were at 20.0% of total revenues.
Capital expenditures (million TRY)
Operational Capex
License and Related Costs
Non-operational Capex (Including IFRS15 & IFRS16)
Total Capex
FY222
19,533.1
536.8
9,815.8
29,885.6
Year
FY233
21,430.3
3,632.9
8,886.9
33,950.0
The actual impact of the earthquakes was in line with our initial assessment, which we have communicated in our Q422 results.
(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.
(2) Including Ukraine operations
(3) Excluding Ukraine operations
adjusted EBITDA and its reconciliation to net income.
(1) EBITDA is a non-GAAP financial measure. See page 16 on our FY2023 Press Release for the explanation of how we calculate
220 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Operational Review of Turkcell Türkiye
Summary of Operational Data
Number of subscribers2 (million)
Mobile Postpaid (million)
Mobile M2M (million)
Mobile Prepaid (million)
Fiber (thousand)
ADSL (thousand)
Superbox (thousand)2
Cable (thousand)
IPTV (thousand)
Churn (%)3
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)
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%
133.5
146.9
161.6
187.7
77.0
190.0
190.8
14.7
FY23
42,5
27.2
4.5
10.8
2,291.0
760.7
719.9
38.5
1,409.2
2.0%
1.5%
155.6
174.0
181.7
214.7
96.0
190.0
192.1
17.0
Year
y/y %
2024 GUIDANCE1
Revenue Growth
High-single-digit
EBITDA Margin
~42%
Op.Capex/ Sales(2)
~23%
(1) The guidance for the year 2024 includes the effects of implementing inflation accounting in accordance
with IAS 29. Our 2024 guidance has been established using a certain number of assumptions regarding factors beyond
our control, including in relation to macroeconomic indicators such as expected inflation levels. In particular, our
2024 guidance is based on an assumed annual inflation rate of 37%, applied on a monthly basis. Please note that this
paragraph contains forward-looking statements based on our current estimates and expectations regarding market
conditions for each of our different businesses. No assurance can be given that actual results will be consistent with
such estimates and expectations. For a discussion of factors that may affect our results, see our Annual Report on Form
20-F for 2022 filed with the U.S. Securities and Exchange Commission, and in particular, the risk factor section therein.
(2) Excluding license fee
%1,9
6.3%
12.5%
(10.0%)
8.0%
1.2%
7.3%
(12.3%)
9.9%
-
0.1pp
16.6%
18.4%
12.4%
14.4%
24.7%
-
0.7%
15.6%
(1) Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers
(2) Superbox subscribers are included in mobile subscribers.
(3) Churn figures represent average monthly churn figures for the respective years.
Turkcell Türkiye subscriber base grew by 799 thousand net additions in FY23 to 42.5 million. In addition, we have achieved 5.8 million net sub-
scriber additions in the last 3 years thanks to our wide range of solutions tailored to customer preferences, our pioneering campaigns de-
signed to simplify their lives, our superior infrastructure, a unique customer experience and our analytical capabilities.
On the mobile front, our subscriber base expanded to 38.0 million on 493 thousand net annual additions in FY23. This was driven by 1.6 million
net additions from the postpaid subscriber base, which reached 71.5% (68.1%) of total mobile subscribers. We had 476 thousand quarterly
postpaid subscriber net additions in Q423. We experienced a net decline of 708 thousand in our prepaid subscriber base quarter-on-quarter,
primarily attributed to the disconnection of 297 thousand inactive prepaid accounts over the quarter, as per our customer churn policy.
On the fixed front, we saw a net increase of 169 thousand fiber subscribers in FY23, attributable to our investments in fiber networks, and the
robust demand for high-speed, and quality broadband services. Total fixed subscribers reached 3.1 million on 38 thousand quarterly and
173 thousand annual net additions. Meanwhile, IPTV customers exceeded 1.4 million on 34 thousand quarterly and 127 thousand annual net
additions.
The average yearly mobile churn rate was at 2.0% and the fixed churn rate at 1.5% in FY23, both parallel to the long-term healthy level of 2%.
On an inflation adjusted basis, our mobile ARPU (excluding M2M) rose 18.4% year-on-year in FY23 driven mainly by price adjustments to reflect
inflationary impacts and upsell to higher tariffs, as well as a larger postpaid subscriber base. Meanwhile, our residential fiber ARPU remained
almost the same year-on-year in FY23.
Average monthly mobile data usage per user rose 15.6% year-on-year to 17.0 GB, with the increasing number and data consumption of 4.5G
users in FY23. Accordingly, the average mobile data usage of 4.5G users reached 18.2 GB in FY23.
Total smartphone penetration on our network reached 90% in Q423. 94% of those smartphones were 4.5G compatible.
222 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Our Companies and Sector Developments
Developments in Our Sector
ELECTRONIC COMMUNICATION
SECTOR IN TÜRKIYE
According to the Q3 2023 Market Data
Report published by the Information
and Communication Technologies Au-
thority (ICTA), the regulatory authority
of our sector, the number of opera-
tors operating in the Turkish electronic
communications sector is 471 and the
number of authorisations granted to
these operators is 854.
In the first three quarters of 2023, the
total net sales revenues of mobile op-
erators Turkcell İletişim Hizmetleri A.Ş.
(Turkcell), Vodafone Telekomünikasyon
A.Ş. (Vodafone), TT Mobil İletişim Hiz-
metleri A.Ş. (TT Mobil) and Türk Tel-
(Türk Telekom)
ekomünikasyon A.Ş.
amounted to approximately TRY 117.2
billion, while the net sales revenues of
other operators totalled TRY 37.2 billion.
In the same period, total investments
made by Turkcell, Türk Telekom, TT Mo-
bil and Vodafone amounted to TRY 24.8
billion.
Mobile Market
As of Q3 2023, there were 92.8 million
mobile subscribers
in Türkiye, cor-
responding to a penetration rate of
108.8% (mobile penetration rate ex-
cluding M2M and population aged 0-9
years: 114.8%).
In the third quarter of 2023, the number
of 4.5G subscribers was 85.4 million,
while the number of 3G subscribers
was 5.1 million. With 3G and 4.5G servic-
es, the number of mobile broadband
subscribers receiving internet servic-
es from mobile computers and mobile
phones increased to 74.8 million.
In Q3 2023, 72.1% of mobile subscribers
were on postpaid tariffs, while 27.9%
were on prepaid tariffs. The number of
prepaid and postpaid mobile broad-
band subscribers reached 19 million
and 54.6 million respectively, while the
number of M2M subscribers reached 9
million.
The number of mobile numbers ported
reached 7.2 million in the first 3 quar-
ters of 2023. A total of 174 million mobile
number porting transactions will have
been carried out as of September 30,
2023.
Based on number of subscribers, Turk-
cell, Vodafone and TT Mobil had a
market share of 41.2%, 30.6% and 28.2%
respectively.
In terms of subscriber
revenues, Turkcell's market share was
46.5%, Vodafone's was 29.1% and TT
Mobil's was 24.4%. About 83.8% of mo-
bile subscribers are residential and
16.2% are business subscribers.
Average monthly mobile broadband
data usage was 17.4 GB. Total mobile
voice traffic grew by 2.4% yoy to 82.5
billion minutes in 3Q03.
Broadband Internet Market
The number of broadband
internet
subscribers, which was around 6 million
in 2008, reached 94.3 million as of the
end of Q3 2023 (19.5 million fixed broad-
band and 74.8 million mobile broad-
band subscribers). The total number
of internet subscribers increased by
3.2% year-on-year. xDSL subscribers
reached 10.9 million, while the number
of fiber subscribers reached 6.5 million.
Total fiber length of operators exceed-
ed 549 thousand km.
In the first 3 quarters of 2023, the total
revenues of internet service providers
reached TRY 23.7 billion. The average
monthly data usage of fixed broad-
band
internet subscribers reached
250 GB. About 56% of fixed broadband
subscribers prefer packages with 16-
50 Mbps connection speed.
TV market
There are 16 operators authorised to
provide Ccable Bbroadcasting Sser-
vices (CBS). Türksat has 1.4 million cable
TV subscribers, while Superonline (TV+)
and TTNet (Tivibu) have 1,374 thou-
sand and 971 thousand subscribers
respectively.
Among the operators licensed to pro-
vide satellite platform services, Dig-
ital Platform Teknoloji Hizmetleri A.Ş.
(Digitürk), Andromeda TV Dijital Plat-
form
İşletmeciliği A.Ş. (DSmart) and
TTNET A.Ş. (Tivibu) continue to operate
actively.
Fixed Voice Market
As of the end of the 3rd quarter of 2023,
there were 10.3 million fixed voice sub-
scribers in Türkiye, and the penetration
rate of this service was approximately
12.2%.
Legal and Regulatory Developments
Relevant to Our Sector and
Companies
Extension of the Term of Turkcell's 2G
Concession Agreement
Following the request of our compa-
ny to extend the term of the GSM (2G)
concession agreement signed with the
Information and Communication Tech-
nologies Authority (ICTA), which is valid
until April 27, 2023, our company has
been informed that it has been decid-
ed to extend the term of the GSM con-
cession agreement until April 30, 2029
and to continue to use the frequencies
allocated to Turkcell in the 900 MHz
band within the framework of the "Pro-
cedures and Principles for Determining
the Term Extension Conditions of GSM
Concession Agreements and GSM 1800
Concession Agreement".
Board Decision on Measures to be
Taken Due to the Earthquake Disaster
With the Board Decision of ICTA dat-
ed 14.02.2023 and numbered 2023/DK-
THD/66, "Measures to be taken due to
the Earthquake Disaster" was published.
In this context, it has been notified by
the Board Decision that the following
are required during the periods speci-
fied by the relevant Board Decision:
䩉On 06.02.2023; for subscribers whose
subscription address or fixed service
facility address registered with the op-
erator is in the provinces where a state
of emergency has been declared or
who receive services in these prov-
inces on the said date, without preju-
dice to the provisions of the relevant
legislation, providing free services
and additional benefits, postponing
invoices, SIM card replacement, trans-
fer, line freezing and transfer requests
and on-off switching fees, not charg-
ing TRY or not restricting and stopping
services due to debt, not transmitting
Invoice Upper Limit SMS,
䩉Temporary change of subscription
processes such as SIM card change,
transfer and number porting etc. ac-
cording to the conditions of the SoE.
Presidential Decree on the Electronic
Communication Area under the State
of Emergency
06.04.2023 dated, "Presidential Decree
on Electronic Communication Area
and Water Structures Inspection Ser-
vices under the State of Emergency"
was published in the Official Gazette.
The following measures have been
taken by Decree with an effective date
of 06.02.2023;
䩉During the state of emergency, the
first establishment SCT will not be
charged for one new mobile sub-
scription to be established for in-
dividuals who document
that
they have been affected by the
earthquake,
䩉Within 24 hours prior to 06.02.2023,
the existing subscriptions of sub-
scribers who receive service in the
provinces of the SoE / whose address
is in the provinces of the SoE shall not
be charged for a 3-month periodic
radio licence and usage fee,
䩉The communication
infrastructures
to be established by the operators
in the State of Emergency provinces
during the State of Emergency can
be established without requiring
any other document other than the
site selection certificate to be issued
free of charge by the Ministry of En-
vironment, Urbanisation and Climate
Change and the permit to be issued
by the local administrative authority,
䩉During the State of Emergency, no
Space Usage Fee and Right of Way
Fee shall be charged at the loca-
tions belonging to public institutions
and organisations, and if such infra-
structures continue to be used, the
conditions shall be fulfilled accord-
ing to the relevant legislation within
2 months following the end of the
State of Emergency.
Türk Telekom Reference IP VAE Offer
Published
Updating Fixed Interconnection
Charges
As a result of the Wholesale Fixed Lo-
cal and Central Access Market Analysis
conducted by the ICTA in 2019, Türk Tel-
ekom was obliged to provide access
through its copper and fiber networks.
Türk Telekom's Reference Offer cover-
ing Data Flow Access (VAE) services at
IP level on copper and fiber networks
was published on Türk Telekom's web-
site with the ICTA Board Decision dat-
ed 20.06.2023 and numbered 2023/DK-
ETD/191; Türk Telekom was given until
31.12.2023 to make the necessary system
improvements.
Removal of Asymmetry in Mobile
Interconnection Charges
With the Board Decision dated June
2021, the ICTA decided to update the
Mobile Call Termination Charges and
to completely remove the asymmetry
in the charges as of 1 January 2024.
Pursuant to the Board Decision, Mobile
Call Termination Charges were applied
as 2.39 kr/min for Turkcell as of 1 Janu-
ary 2022 and 2.25 kr/min as of 1 January
2023. As of 1 January 2024, mobile call
termination rates were equalised at 2.1
kr/min for all operators, thus ending the
asymmetric practice in mobile call ter-
mination rates, which has been against
Turkcell since 2006.
Removal of the Obligation to Set Cost-
Based Tariffs for SMS Termination
Services
Within the scope of the Market Anal-
ysis published with the Board Deci-
sion dated 08.09.2020 and numbered
2020/IK-SRD/258, the ICTA decided to
remove the obligation to be subject to
tariff control (cost-based tariff setting)
for SMS call termination services as of
01.10.2021. With the Board Decision dat-
ed 12.12.2021 and numbered 2021/UK-
ETD/390, the SMS call termination fees
of mobile operators were set as 0.80
Kr/per SMS as of 01.04.2022, 1.00 Kr/per
SMS as of 01.01.2023 and 1.20 r/per SMS
as of 01.01.2024.
With the Board Decision dated Decem-
ber 14, 2021, ICTA decided to adopt a
single-tier fee structure for Fixed Call
Termination Charges as of 1 January
2022, in line with the transition to IP in-
terconnection technology. As of 1 Jan-
uary 2022, the relevant rates for Super-
online were 2.8 kr/min and 2.2 kr/min as
of 1 January 2023. As of January 1, 2024,
it was decided to equalise the termina-
tion fees of all operators at 1.47 kr/min
and to completely eliminate the asym-
metry in the sector.
Maximum Fee Tariff for Mobile
Electronic Communication Services
The maximum prices of the services
(domestic/overseas voice and SMS,
name/title change, line transfer, number
change, SIM card change, switching,
detailed invoice, unknown numbers ser-
vice, etc.) included in the Maximum Fee
Tariff for Mobile Electronic Communica-
tion Services published by ICTA are up-
dated every six months. As of 01.04.2023,
the fees in the tariff were increased by
approximately 21.4%. On 10.07.2023, the
increase in Value Added Tax (from 18%
to 20%) was reflected in the fees in the
relevant tariffs. In addition, the fees in the
tariffs were increased by approximately
29% as of 01.10.2023.
Refurbished Device Sales Instalment
Arrangements
With the "Decision of the Banking Reg-
ulation and Supervision Board num-
bered 10479" published on the website
of the Banking Regulation and Supervi-
sion Agency on 05.01.2023;
䩉Pursuant to the Regulation on the Sale
of Refurbished Products, the instal-
ment period has been set as 12 months
for credit card purchases of mobile
phones that are "refurbished prod-
ucts" provided that they are "refurbish-
ment centres" or "authorised dealers".
䩉The maturity limit for consumer loans
extended for the purchase of mobile
phones (including refurbished prod-
ucts) is set as 12 months for mobile
phones with a price of 12,000 Turkish
Liras or less, and 3 months for mobile
phones with a price above 12,000
Turkish Liras.
224 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 225
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Corporate Law Developments Concerning Our Company And Its Subsidiaries
Transfer of Shares of Lifecell LLC,
Ukrtower LLC and Global Bilgi LLC
As per our Company's Board of Di-
rectors' decision dated 20 December
2023; a share transfer agreement was
signed on 29 December 2023 between
Global Bilgi Pazarlama Danışmanlık ve
Çağrı Servisi Hizmetleri A.Ş., Kule Hizmet
ve İşletmecilik A.Ş., Lifecell Ventures B.V.
and NJJ Capital for the transfer of all
shares, along with all rights and debts,
of (i) Lifecell LLC, which is wholly owned
by Lifecell Ventures B.V., (ii) Global Bilgi
LLC, which is wholly owned by Global
Bilgi Pazarlama Danışmanlık ve Çağrı
Servis Hizmetleri A.Ş. and (iii) Ukrtower
LLC, which is wholly owned by Kule Hiz-
met ve İşletmecilik A.Ş., to NJJ Capital, a
company located in France.
Transfer of Data Center Assets
and Lifecell TV Shares of Turkcell
Gayrimenkul to Superonline through
Partial Demerger Procedure
Due to Turkcell Gayrimenkul’s increas-
ing data center investments, business
volume and the continuation of the
data center operations in an integrated
manner with Superonline, the separa-
tion of the business from Turkcell Gay-
rimenkul and its transfer to Superonline
through a partial demerger by way of
transfer of Lifecell TV shares owned by
Lifecell Dijital to Superonline and the
transfer of Turkcell Gayrimenkul's data
center services business
(buildings,
equipment, advances, debts, receiva-
bles, etc.) from Turkcell Gayrimenkul to
Superonline was completed and the
transaction was registered before the
Trade Registry as of 10 July, 2023 and
the title deed transfer processes of the
data centers were completed.
Merger of Turkcell and Beltel
In order to simplify the corporate
structure, Beltel Telekomünikasyon Hiz-
metleri A.Ş., one of our group compa-
nies, has merged with Turkcell İletişim
Hizmetleri A.Ş. through a facilitated
procedure and dissolved without liqui-
dation. The approvals and procedures
of the Capital Markets Board, the Infor-
mation and Communication Technolo-
gies Authority and the Trade Registry
were completed and the merger was
registered on 23 August 2023. Accord-
ingly, the Share Sale and Purchase
Agreement signed between Beltel, the
State of Belarus and Turkcell on July 29,
2008 was terminated with all rights and
obligations by signing a separate ter-
mination agreement.
Turkcell Ödeme ve Elektronik Para
Hizmetleri A.Ş.'s Acquisition of 33.3%
of BELBİM's Shares in Sofra
BELBİM Elektronik Para ve Ödeme Hiz-
metleri A.Ş.'s 33,3% shares in Sofra Ku-
rumsal ve Ödüllendirme Hizmetleri A.Ş.
were acquired by Turkcell Ödeme ve
Elektronik Para Hizmetleri A.Ş. for TRY
762.690 by exercising the pre-emptive
right in accordance with the existing
shareholders agreement.
Within the scope of the Regulation on
the Amendment of the Regulation on
the Principles and Rules to be Applied
in Retail Trade, the maturity limit for the
sales of mobile phones on assignment
with a price above TRY 12,000, except
for the sales of mobile phones in the
form of refurbished products carried
out by refurbishment centres or author-
ised dealers in accordance with the
Regulation on the Sale of Refurbished
Products, has been set as 3 months, and
the maturity limit for the sales of mobile
phones on assignment, regardless of
whether the price is above or below
TRY 12,000, has been set as 12 months
for the purchase of mobile phones in
the form of refurbished products.
Procedures and Principles on
Confirmation Procedures Prior
to Individual New Subscription
Establishment for Internet/TV and
Fixed Telephone Services
With the Board Decision of the ICTA
dated 05.09.2023 and numbered 2023/
DK-THD/263, the procedures and prin-
ciples determining
the procedures
regarding the confirmation to be re-
ceived from the subscriber before the
establishment of a new individual sub-
scription for Internet, TV and Fixed Tele-
phone Services were published and it
was decided that the regulation will
enter into force 6 months after the date
of its publication in the Official Gazette.
With these procedures and principles;
it has been determined that the sub-
scriber must be called to confirm the
accuracy of the subscription request
before the establishment of a new in-
dividual subscription, the information
that must be provided to the subscriber
during this call and the conditions re-
quired for the subscription request to
be processed.
Amendments on the Registration
of Devices with Electronic Identity
Information
The "Regulation Amending the Regula-
tion on the Registration of Devices with
Electronic Identity Information" and the
"Communiqué Amending the Commu-
niqué on the Registration of Devices
with Electronic
Information"
were published in the Official Gazette
Identity
dated 12.10.2023 and numbered 32337.
In this context, the period of 7 years,
which was set as 7 years with the pre-
vious regulation, has been updated as 1
year and it has been decided to delete
the IMEI registration of the phones that
cannot receive uninterrupted signal
for 1 year. The effective date of these
regulations has been determined as
01.01.2024.
Kahramanmaraş Earthquake In-
Depth Investigation
An investigation was initiated by the
ICTA against our Company following
in Kahramanmaraş
the earthquakes
and Pazarcık on February 6, 2023.
Within the scope of the initiated inves-
tigation, the investigation report of the
supervisory board including the viola-
tion determinations was notified and
our written defences regarding the
violation determinations were submit-
ted to the ICTA. The said investigation is
ongoing.
Litigation Procedures Regarding
the Rejection of Domestic Goods
Obligation Exemption Requests and
ICTA's R&D SME Investigation
regarding
The exemption applications made by
our Company for the period 27.10.2015-
26.10.2019 and the exemption appli-
cation for the average of the first
four-year period covering the years
the domestic
2015-2019
goods
includ-
investment obligation
ed in the IMT Authorisation Certificate
were rejected. As a result of the inves-
tigation conducted by ICTA for the pe-
riod 2013-2017, administrative sanctions
were imposed on our Company. Our
Company has filed a lawsuit for the
cancellation of the aforementioned
Board Decisions and related transac-
tions and the legal process is ongoing.
In addition, the application made in
2022 with the request to revoke the de-
cisions regarding the rejection of the
exemption request regarding the ob-
ligation to use domestic goods for the
2019-2020 and 2020-2021 investment
periods was implicitly rejected. Our
Company filed a lawsuit for the can-
cellation of the aforementioned Board
Decision and related transactions and
the legal process is ongoing.
Litigation Process Regarding the
Amendment to the Procedures and
Principles Regarding the Examination
and Audit of R&D Investments
With the Decision of the Information
and Communication Technologies Au-
thority dated 16.11.2021 and numbered
2021/DK-YED/361, the "Procedures and
Principles Regarding the Examination
and Inspection of Hardware and Soft-
ware Investments to be Used in Opera-
tors' Networks" were updated. The new
regulation includes issues such as not
exceeding 50% of the total investments
per supplier in an investment period,
informing the ICTA before the invest-
ments to be made in critical network
elements and complying with a possi-
ble notification, defining the national
product, and introducing obligations
regarding R&D projects carried out in
R&D centres. Our Company's applica-
tion for the revocation of the relevant
Board Decision in 2022 was rejected
and a lawsuit was filed by our Compa-
ny for the cancellation of the relevant
transactions and the legal process is
ongoing.
Lawsuit issued by TT Mobil and our
Company intervened regarding
the “Multiplying Campaign”
administrative fine applied to our
Company
fine of
The administrative
TRY
25,245,56.18 imposed by the 1st, 2nd, 3rd
and 4th articles of the ICTA's decision
dated 16.03.2021 and numbered 2021/
İK-THD/76 due to our Company's appli-
cation under the name of "Multiplying
Campaign" was paid by our Company
with a discount (TRY 18,934,173.9). During
the process, an application was made
by TT Mobil requesting that the amount
of the administrative fine imposed by
the ICTA decision on our Company be
increased and that the said decision
be amended to include a refund to
subscribers, and upon the implicit re-
jection of this request, a lawsuit was
filed against the ICTA for the cancel-
lation of the said implicit rejection. Our
Company is an intervener in this lawsuit
alongside ICTA. The legal process is
ongoing.
226 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 227
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Subsequent Events After the Reporting Period
19.01.2024
Announcement Regarding the Capital
Increase in BeST
The capital of our Company's subsid-
iary CJSC Belarusian Telecommuni-
cations Network ("BeST") is increased
by BYN 47,938,990 to BYN 1,322,959,530
from BYN 1,275,020,540. Our Company's
pre-emption rights with respect to the
capital increase is fully paid.
29.01.2024
Announcement Regarding the Estab-
lishment of the Data Center Company
Our Company's Board of Directors has
decided to establish a data center
company with a focus on efficient
management of company process-
es. This new Company, which will be
wholly owned by our Company, will
operate in the areas of data process-
ing, data analysis, data storage, server
hosting, server leasing, and computer
programming with cloud solutions. The
initial capital will be TRY 250,000. All
data center operations will be trans-
ferred to this newly established data
center company from our Company by
demerger.
29.01.2024
Announcement Regarding the
Amendment of Articles of Association
Our Company's Board of Directors has
decided that necessary actions will
be taken to obtain the approval of the
Capital Markets Board and the Ministry
of Trade, for amendment of the Articles
of Association as attached, in accord-
ance with the principles of Capital Mar-
kets Law, the Turkish Commercial Code,
and related legislation. Amendment of
Articles of Association is subject to ap-
proval of the General Assembly.
30.01.2024
Announcement Regarding the News in
the Media - Sale of Ukrainian Assets
In certain media channels, there have
been some news regarding the sale
process of lifecell LLC, LLC Global Bilgi,
and LLC Ukrtower, which are Turkcell's
subsidiaries operating in Ukraine. The
process is expected to be completed
after obtaining the regulatory approv-
als. The enterprise value to be taken
into account at the closing date for the
respective sale transaction is USD 525
million, and the final sale value will be
determined within the framework of
adjustments to be made including cash
and debts after the closing.
Due to the uncertainty involved in the
sale value as of the decision date, the
disclosure of the respective informa-
tion was postponed by the Board of
Directors' decision dated December 20,
2023, as per the Article-6 of the Capital
Markets Board's Communiqué on Ma-
terial Events Disclosure, as it may im-
pact the investors' investment decision
and share value.
30.01.2024
Board Resolution Regarding the
Renewal of the Registered Capital
Ceiling Validity Period
Our Company's Board of Directors has
decided that necessary actions will
be taken to obtain the approval of the
Capital Markets Board and the Min-
istry of Trade, for amendment of the
Articles of Association as attached,
in accordance with the principles of
Capital Markets Law, the Turkish Com-
mercial Code, and related legislation.
Amendment of Articles of Association
is subject to approval of the General
Assembly.
31.01.2024
Announcement Regarding the Re-
demption of the Bond with ISIN Code
TRFTCEL12410
Within the scope of our Company's an-
nouncement dated August 1, 2023, the
redemption payment of the financing
bond with ISIN code TRFTCEL12410 with
a nominal amount of TRY 500,000,000,
a maturity of 183 days and an annual
simple interest of 29.50% was made on
January 31, 2024 (today).
31.01.2024
Announcement Regarding the Financ-
ing Bond Issuance
Within the scope of the issue limit of
TRY 8,000,000,000 approved by the
Capital Markets Board; the book build-
ing of the financing bond issuance of
our Company with a maturity date of
12.07.2024, an annual simple interest of
47.00%, and a nominal amount of TRY
2,500,000,000 to qualified
investors
within Turkey, without public place-
ment was completed, and the securi-
ties will be transferred to the investor
accounts on 31.01.2024 (today). The is-
suance was advised by Ziraat Yatırım
Menkul Değerler A.Ş..
08.02.2024
Announcement Regarding the Financ-
ing Bond Issuance
Within the scope of the issue limit of
TRY 8,000,000,000 approved by the
Capital Markets Board; the book build-
ing of the financing bond issuance of
our Company with a maturity date of
02.08.2024, an annual simple interest
of 47.00%, and a nominal amount of
TRY 250,000,000 to qualified investors
within Türkiye, without public place-
ment was completed, and the securi-
ties will be transferred to the investor
accounts on 08.02.2024 (today). The
issuance was advised by Ziraat Yatırım
Menkul Değerler A.Ş..
08.02.2024
Announcement Regarding the Re-
demption of the Bond with ISIN Code
TRFTCEL22419
Within the scope of our Company's an-
nouncement dated August 9, 2023, the
redemption payment of the financing
bond with ISIN code TRFTCEL22419 with
a nominal amount of TRY 530,000,000,
a maturity of 183 days and an annual
simple interest of 31.00% was made on
February 8, 2024 (today).
09.02.2024
Announcement Regarding the Financ-
ing Bond Issuance
Within the scope of the issue limit of
TRY 8,000,000,000 approved by the
Capital Markets Board; the book build-
ing of the financing bond issuance of
our Company with a maturity date of
06.08.2024, an annual simple interest
of 47.50%, and a nominal amount of
TRY 800,000,000 to qualified investors
within Türkiye, without public place-
ment was completed, and the securi-
ties will be transferred to the investor
accounts on 09.02.2024 (today). The
issuance was advised by Ziraat Yatırım
Menkul Değerler A.Ş..
09.02.2024
Announcement Regarding the Re-
demption of the Bond with ISIN Code
TRFTCEL22427
Within the scope of our Company's an-
nouncement dated August 11, 2023, the
redemption payment of the financing
bond with ISIN code TRFTCEL22427 with
a nominal amount of TRY 700,000,000,
a maturity of 182 days and an annual
simple interest of 31.50% was made on
February 9, 2024 (today).
23.02.2024
Announcement Regarding the
Amendment of Articles of Association
Approval by the CMB
The application regarding the Amend-
ment of Articles of Association, sub-
mitted to the Capital Markets Board
("CMB") on February 8, 2024, has been
approved by the CMB in the attached
form.
08.03.2024
Announcement Regarding a Ruling
Received from Ukrainian Court
Our Company has been
informed
through its Ukrainian subsidiary that
they have received an official ruling
from a Ukrainian court on March 5,
2024, ordering the seizure of 19.8% of
the corporate rights of lifecell LLC, and
100% of the corporate rights of Ukrtow-
er LLC and Paycell LLC, within the crim-
inal proceedings related to suspicions
involving Mikhail Fridman.
We would like to emphasize that we
believe that the aforementioned per-
son has no control or influence over
our Ukrainian subsidiaries. This ruling
has not had any significant impact on
the daily operations of these Ukrainian
subsidiaries.
An appeal to the related court sub-
mitted on March 7, 2024 with an aim to
cancel the seizures and our subsidiar-
ies vigorously contest this decision.
Completion of conditions precedent,
including this ruling being lifted, for
closing regarding the sale of Ukraini-
an assets to NJJ Capital, announced
on December 29, 2023 and January 30,
2024, are continuing.
18.03.2024
Announcement Regarding the Capital
Increase in Kıbrıs Telekom
The capital of our Company's whol-
ly-owned subsidiary Kıbrıs Mobile Tele-
komünikasyon Limited ("Kıbrıs Telekom")
is increased by TRY 250,000,000 to TRY
322,724,863. Our Company's pre-emp-
tion rights with respect to the capital
increase is fully paid.
18.03.2024
Announcement Regarding Fitch Rat-
ings' Credit Rating
International credit rating agency Fitch
Ratings has raised our Company's cred-
it rating from "B" to "B+", and has revised
the outlook of the rating from "Stable" to
"Positive".
20.03.2024
Announcement Regarding the Deci-
sion to Issue Debt Instruments
Our Company's Board of Directors re-
solved that our wholly-owned sub-
sidiary, Turkcell Ödeme ve Elektronik
Para Hizmetleri A.Ş. shall issue debt
instruments. The issuance shall be at a
nominal value of up to TRY 1 billion, with
debt instruments to be determined ac-
cording to market conditions and vari-
ous maturities up to one-year, in Turkish
Lira terms, in the domestic market, in
one or more tranches, without a public
offering, as a private placement and/or
to be sold to institutional investors. The
respective issuances are subject to ap-
proval of the Capital Markets Board.
02.04.2024
Announcement Regarding the Liqui-
dation of Rehberlik Hizmetleri Servisi
A.Ş.
It has been decided to liquidate Reh-
berlik Hizmetleri Servisi A.Ş. ("Rehberlik"),
a wholly owned subsidiary of our Com-
pany, due to market contraction, new
technologies offering alternative solu-
tions, and the lack of remaining sources
of revenue.
228 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 229
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
31 December
Notes
2023
31 December
2022
Assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Investment properties
Trade receivables
Receivables from financial services
Contract assets
Financial assets at fair value through other comprehensive income
Financial assets at fair value through profit or loss
Deferred tax assets
Investments in equity accounted associate and joint venture
Other non-current assets
Total non-current assets
Inventories
Trade receivables
Due from related parties
Receivables from financial services
Contract assets
Derivative financial instruments
Financial assets at amortized cost
Financial assets at fair value through profit or loss
Cash and cash equivalents
Other current assets
Subtotal
Assets held for sale
Total current assets
12
16
13
15
19
20
21
24
24
18
40
17
22
19
20
21
34
24
24
23
17
41
66,650,246
6,136,092
58,511,397
142,365
325,862
593,550
101,281
106,023
541,490
1,128,749
5,869,618
4,430,424
144,537,097
540,507
10,925,645
171,373
5,842,112
3,191,739
2,044,765
-
8,869,828
49,978,716
3,875,773
85,440,458
17,105,770
102,546,228
71,494,396
8,054,305
61,498,735
179,085
492,274
469,830
110,487
3,049,667
426,147
2,732,413
3,801,087
5,368,170
157,676,596
494,988
10,982,217
125,967
5,399,259
3,112,465
3,348,871
1,233,597
6,648,418
42,776,160
3,190,642
77,312,584
-
77,312,584
Total assets
247,083,325
234,989,180
Notes
31 December
2023
31 December
2022
Equity
Share capital
Share premium
Treasury shares
Reserves
Remeasurements of defined benefit plans
Retained earnings
Total equity attributable to equity holders of Turkcell Iletisim
Hizmetleri A.S. (“the Company”)
Non-controlling interests
Total equity
Liabilities
Borrowings
Trade and other payables
Due to related parties
Employee benefit obligations
Provisions
Deferred tax liabilities
Contract liabilities
Other non-current liabilities
Total non-current liabilities
Borrowings
Current tax liabilities
Trade and other payables
Due to related parties
Deferred revenue
Provisions
Contract liabilities
Derivative financial instruments
Subtotal
Liabilities directly associated with the assets held for sale
Total current liabilities
Total liabilities
Total equity and liabilities
25
25
28
29
32
18
31
27
28
33
30
32
31
34
41
32,334,546
7,683
(741,311)
5,574,979
(2,047,211)
87,119,133
32,334,546
7,683
(710,768)
2,403,426
(2,049,632)
77,386,263
122,247,819
(12,954)
122,234,865
109,371,518
6,421
109,377,939
57,946,648
1,110,700
38,337
2,052,325
1,379,435
2,286,164
1,193,665
1,113,468
67,120,742
26,137,561
213,374
20,606,224
552,448
248,003
1,975,543
1,312,519
354,370
51,400,042
6,327,676
57,727,718
61,185,299
56,550
1,546
2,949,486
1,596,203
8,991,083
1,248,479
1,106,591
77,135,237
27,552,086
401,197
17,018,441
397,610
214,040
1,242,279
1,401,669
248,682
48,476,004
-
48,476,004
124,848,460
125,611,241
247,083,325
234,989,180
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
230 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 231
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
1
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
2
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Notes
31 December
31 December
2023
2022
Represented
(*)
Revenue
Revenue from financial services
Total revenue
Cost of revenue
Cost of revenue from financial services
Total cost of revenue
Gross profit
Gross profit from financial services
Total gross profit
Other income
Selling and marketing expenses
Administrative expenses
Net impairment losses on financial and
contract assets
Other expenses
Operating profit
Finance income
Finance costs
Monetary gain (loss)
Net finance costs / income
Share of profit of an associate and a joint
venture
Profit before income tax from continuing
operations
Income tax income/ (expense)
Profit for the year from continuing
operations
6
6
11
11
7
11
11
11
7
9
9
9
40
10
Represented
(*)
31 December
2021
105,251,583
3,348,061
108,599,644
(85,135,182)
(1,002,885)
(86,138,067)
20,116,401
2,345,176
22,461,577
356,404
(5,201,034)
(2,658,343)
(847,035)
(2,010,123)
12,101,446
102,962,781
4,153,403
107,116,184
90,206,307
3,280,539
93,486,846
(82,240,256)
(2,177,779)
(84,418,035)
(80,360,678)
(1,320,251)
(81,680,929)
20,722,525
1,975,624
22,698,149
9,845,629
1,960,288
11,805,917
882,782
(5,682,346)
(3,429,518)
348,611
(4,592,793)
(2,579,411)
(1,008,164)
(5,648,334)
7,812,569
(621,978)
(1,406,976)
2,953,370
12,663,682
(19,931,617)
3,816,872
(3,451,063)
3,957,684
(11,949,156)
7,767,102
(224,370)
11,527,996
(21,308,035)
4,804,527
(4,975,512)
1,525,175
522,221
191,303
5,886,681
3,251,221
7,317,237
4,675,891
2,785,265
(900,339)
10,562,572
6,036,486
6,416,898
Profit /(loss) from discontinued operations
41
1,969,674
842,370
718,727
Profit for the year
12,532,246
6,878,856
7,135,625
Profit for the year is attributable to:
Owners of the Company
Non-controlling interests
Total
Basic and diluted earnings per share for profit
attributable to owners of the Company (in full
TL)
Basic and diluted earnings per share for profit
from continuing operations attributable to
owners of the Company (in full TL)
26
26
12,553,996
(21,750)
12,532,246
6,880,436
(1,580)
6,878,856
7,135,436
189
7,135,625
5.75
3.15
4.85
2.77
3.27
2.94
*Please refer to Note 2 (b) Restatement of financial statements during the hyperinflationary periods and Note 41 Discontinued
operations
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.
3
232 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Profit for the period
Items that will not be reclassified to profit or
loss:
Remeasurements of defined benefit plans
Income tax relating to remeasurements of defined
benefit plans
Other comprehensive income/(expense):
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign
operations
Gain on financial assets measured at fair value
through other comprehensive income
Cash flow hedges - effective portion of changes in
fair value
Cash flow hedges - reclassified to profit or loss
Cost of hedging reserve - changes in fair value
Cost of hedging reserve - reclassified to profit or
loss
Loss on hedges of net investments in foreign
operations
Income tax relating to these items
- Income tax relating to exchange differences
- Income tax relating to cash flow hedges
- Income tax relating to cost of hedging reserve
- Income tax relating to financial assets measured
at fair value
- Income tax relating to hedges of net investments
Other comprehensive income/(loss) for the
year, net of income tax
31 December
31 December
Notes
2023
2022
31 December
2021
12,532,246
6,878,856
7,135,625
29
(149,757)
(1,824,873)
(541,628)
152,178
2,421
363,876
(1,460,997)
108,418
(433,210)
34
10
34
2,860,231
(748,669)
7,164,377
149,602
(121,999)
(192,475)
5,256,277
(3,683,081)
(784,883)
9,415,938
(7,129,115)
(3,046,104)
7,243,111
(6,255,142)
(4,302,532)
395,519
875,435
423,428
(2,342,679)
984,420
(491,059)
25,502
274,034
(520,930)
(66,764)
(887,185)
(89,836)
434,134
(3,886,535)
(760,237)
(2,330,871)
(86,967)
775,821
(5,514)
1,181,457
35,988
440,135
38,164
843,616
2,835,406
(1,342,208)
(566,005)
2,837,827
(2,803,205)
(999,215)
Total comprehensive income for the year
15,370,073
4,075,651
6,136,410
Total comprehensive income for the year is
attributable to:
Owners of the Company
Non-controlling interests
Total
15,391,823
(21,750)
15,370,073
4,077,231
(1,580)
4,075,651
6,136,221
189
6,136,410
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 233
The above consolidated statement of other comprehensive income should be read in conjunction with the accompanying
notes.
4
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power
of Turkish Lira as of 31 December 2023 unless otherwise stated.)
Share
capital
Treasury
shares
Additional
paid-in
capital
Share
premium
Legal
reserves
(*)
Hedges of
net
investments
in foreign
operations
(*)
Fair
value
reserve
(*)
Hedging
reserve
(*)
Cost of
hedging
reserve (*)
Foreign
currency
translation
reserve (*)
Remeasure
ment of
defined
benefit
plans
Reserve of
disposal
group held
for sale
Retained
earnings
Non-
controlling
interests
Total
Balance at 1 January
2021
Profit/ (loss) for the year
Other comprehensive
income, net of income tax
Total comprehensive
income
Transfers to legal reserves
Dividend paid (Note 25)
Other
Balance at 31 December
2021
Balance at 1 January
2022
Profit/ (loss) for the year
Other comprehensive
income, net of income tax
Total comprehensive
income
Transfers to legal reserves
Dividend paid (Note 25)
Other
Balance at 31 December
2022
32,334,546
-
(798,490)
-
-
-
-
-
-
-
-
-
69,360
-
129,465
-
-
-
-
-
(34,327)
7,683
-
21,733,847
-
6,221
-
(1,250,417)
-
(471,562)
-
(2,457,266)
-
(15,900,121)
-
(155,425)
-
77,387,034
7,135,436
-
-
-
-
-
-
(154,311)
(3,042,919)
901,002
(3,103,283)
4,833,506
(433,210)
-
-
1,941,748
-
-
(154,311)
-
-
-
(3,042,919)
-
-
-
901,002
-
-
-
(3,103,283)
-
-
-
4,833,506
-
-
-
(433,210)
-
-
-
7,135,436
(1,941,748)
(9,032,088)
-
32,334,546
(729,130)
95,138
7,683
23,675,595
(148,090)
(4,293,336)
429,440
(5,560,549)
(11,066,615)
(588,635)
73,548,634
32,334,546
-
(729,130)
-
-
-
-
-
-
-
-
-
18,362
-
95,138
-
-
-
-
-
(95,138)
7,683
-
23,675,595
-
(148,090)
(4,293,336)
429,440
(5,560,549)
(11,066,615)
-
(588,635)
-
73,548,634
6,880,436
-
-
-
-
-
-
(86,011)
(80,795)
2,196,987
(1,736,535)
(1,635,854)
(1,460,997)
-
-
709,189
-
-
(86,011)
-
-
-
(80,795)
-
-
-
2,196,987
-
-
-
(1,736,535)
-
-
-
(1,635,854)
-
-
-
(1,460,997)
-
-
-
6,880,436
(709,189)
(2,391,534)
57,916
32,334,546
(710,768)
-
7,683
24,384,784
(234,101)
(4,374,131)
2,626,427
(7,297,084)
(12,702,469)
(2,049,632)
77,386,263
-
-
-
7,683
-
(710,768)
-
32,334,546
-
Balance at 1 January
2023
Profit/ (loss) for the year
Other comprehensive
income, net of income tax
Total comprehensive
income
Transfers to legal reserves
Dividend paid (Note 25)
Discontinued operations
(Note 41)
Other
Balance at 31 December
2023
(*) Included in Reserves in the consolidated statement of financial position.
-
-
20,212
-
(50,755)
32,334,546
(741,311)
7,683
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24,384,784
-
(234,101)
(4,374,131)
2,626,427
(7,297,084)
(12,702,469)
-
144,088
(1,161,222)
1,598,698
(115,330)
2,369,172
-
336,147
-
144,088
-
-
(1,161,222)
-
-
1,598,698
-
-
(115,330)
-
-
2,369,172
-
-
(2,049,632)
-
77,386,263
12,553,996
2,421
2,421
-
-
-
12,553,996
(336,147)
(2,484,979)
-
-
-
-
-
(6,140,191)
6,140,191
24,720,931
(90,013)
(5,535,353)
4,225,125
(7,412,414)
(16,473,488)
(2,047,211)
87,119,133
6,140,191
122,247,819
(12,954)
122,234,865
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
110,565,515
7,135,436
(999,215)
6,136,221
-
(8,962,728)
(34,327)
114
189
-
189
-
-
(858)
Total equity
110,565,629
7,135,625
(999,215)
6,136,410
-
(8,962,728)
(35,185)
107,704,681
(555)
107,704,126
107,704,681
6,880,436
(2,803,205)
4,077,231
-
(2,373,172)
(37,222)
(555)
(1,580)
107,704,126
6,878,856
-
(2,803,205)
(1,580)
-
-
8,556
4,075,651
-
(2,373,172)
(28,666)
109,371,518
6,421
109,377,939
109,371,518
12,553,996
2,837,827
15,391,823
-
(2,464,767)
-
(50,755)
6,421
(21,750)
109,377,939
12,532,246
-
2,837,827
(21,750)
-
-
2,375
15,370,073
-
(2,464,767)
-
(48,380)
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
5
234 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Cash flows from operating activities:
Profit for the year from continuing operations
Discontinued operations
Profit for the year
Adjustments for:
Depreciation and impairment of property, plant and equipment and investment
properties
Amortization of intangible assets and right-of-use assets
Impairment on property, plant and equipment and intangible asset
Net finance expense
Fair value adjustments to derivatives
Income tax expense
Gain on sale of property, plant and equipment
Effects of exchange rate changes and inflation adjustments
Provisions
Share of (profit)/loss of associates and joint ventures
Fair value adjustments to financial assets through profit or loss
Non-cash other adjustments
Change in operating assets/liabilities
Change in trade receivables
Change in due from related parties
Change in receivables from financial services
Change in inventories
Change in other current assets
Change in other non-current assets
Change in due to related parties
Change in trade and other payables
Change in other non-current liabilities
Change in employee benefit obligations
Change in short term contract asset
Change in long term contract asset
Change in deferred revenue
Change in short term contract liability
Change in long term contract liability
Changes in other working capital
Cash generated from operations
Interest paid
Income tax paid
Net cash inflow from operating activities
Cash flows from investing activities:
Acquisition of property, plant and equipment
Acquisition of intangible assets
Proceeds from sale of property, plant and equipment
Payment for acquisition of subsidiary, net of cash acquired
Payments for advances given for acquisition of property, plant and equipment
Contribution of increase of share capital in joint ventures/associates
Cash inflows from sale of shares or borrowing instruments of other enterprises or funds
Cash outflows from purchase of shares or borrowing instruments of other enterprises or
funds
Cash (outflows)/inflows from financial assets at amortized cost
Cash outflows from financial assets at fair value through profit or loss
Interest received
Net cash outflow from investing activities
Cash flows from financing activities:
Proceeds from derivative instruments
Repayments of derivative instruments
Proceeds from issues of loans and borrowings
Proceeds from issues of bonds
Repayments of borrowings
Repayments of bonds
Dividends paid to shareholders
Dividends paid to non-controlling interest in subsidiaries
Payments of lease liabilities
Net cash outflow from financing activities
Net increase in cash and cash equivalents
Note
31 December
2023
31 December
2022
31 December
2021
10,562,572
1,969,674
12,532,246
6,036,486
842,370
6,878,856
6,416,898
718,727
7,135,625
12-15
13-16
12-13
10
19
38
20
22
17
17
38
33
27
29
21
21
30
31
31
12
13
3
11,971,461
21,495,684
(1,421)
2,705,359
(1,313,993)
(4,383,918)
15,979
10,470,553
4,699,380
(1,525,175)
(4,604,960)
3,712
52,064,907
(139,488)
(39,338)
(572,122)
(98,561)
(1,243,350)
785,975
(387,619)
935,945
42,319
(564,023)
(70,561)
9,206
129,985
(89,150)
405,430
(1,528,600)
49,640,955
(7,356,137)
(563,330)
41,721,488
(14,216,712)
(15,287,059)
338,387
-
-
(543,356)
15,307,389
(16,115,347)
14,043,065
(10,257,554)
5,825,402
(20,905,785)
7,749,663
(4,756,730)
62,689,793
7,824,254
(54,790,770)
(5,289,151)
(2,484,979)
(50,755)
(4,121,990)
6,769,335
15,034,317
20,160,690
391,616
3,424,909
2,427,062
(2,661,572)
35,502
5,783,400
2,757,078
(522,221)
(1,738,728)
198,772
52,169,681
695,393
348,368
(3,562)
260,863
(144,637)
(107,361)
(319,015)
(1,758,710)
43,561
(111,268)
86,892
72,230
(139,688)
(106,319)
44,293
(1,470,725)
49,559,996
(5,943,326)
(1,335,544)
42,281,126
(15,381,134)
(11,152,761)
1,160,686
-
(1,744,603)
(1,014,279)
2,158,111
(3,560,647)
(1,592)
(6,162,440)
3,986,591
(31,712,068)
5,961,522
(5,264,741)
53,139,280
4,472,292
(44,653,449)
(3,564,408)
(2,391,534)
-
(4,310,581)
3,388,381
14,171,912
19,698,077
32,204
2,698,761
(7,509,357)
900,339
(98,440)
(3,096,843)
4,088,441
(191,303)
-
147,960
37,977,376
1,574,713
(410,728)
1,479,545
19,578
104,128
317,001
17,709
(1,361,918)
1,207,414
(169,308)
388,238
289,169
(98,232)
98,261
(7,448)
(3,280,191)
38,145,307
(6,053,353)
(2,276,959)
29,814,995
(18,058,499)
(13,435,350)
683,346
(234,680)
(348,938)
(1,614,614)
2,295,452
(3,428,074)
789,278
-
4,342,451
(29,009,628)
5,987,453
(5,715,348)
43,150,810
636,194
(41,372,286)
(470,654)
(8,962,728)
(858)
(3,129,580)
(9,876,997)
27,585,038
13,957,439
(9,071,630)
Cash and cash equivalents at 1 January
42,742,204
50,398,771
43,662,519
Effects of exchange rate changes and inflation adjustments on cash and cash
equivalents
(16,502,367)
(21,614,006)
15,807,882
Cash and cash equivalents at 31 December
23
53,824,875
42,742,204
50,398,771
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
6
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 235
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Notes to the consolidated financial statements
Page
Financial risk management
Segment information
Intangible assets
Impairment of non-financial assets
Investment properties
1. Reporting entity
2. Basis of preparation and summary of material accounting policies
3. Business combinations
4.
5.
6. Revenue
7. Other income and expense
8. Employee benefit expenses
Finance income and costs
9.
10.
Income tax expense
11. Expenses by nature
12. Property, plant and equipment
13.
14.
15.
16. Right-of-use assets
17. Other assets
18. Deferred tax assets and liabilities
19. Trade receivables
20. Receivables from financial services
21. Contract assets
Inventories
22.
23. Cash and cash equivalents
24. Financial assets
25. Equity
26. Earnings per share
27. Other non-current liabilities
28. Loans and borrowings
29. Employee benefits
30. Deferred revenue
31. Contract liabilities
32. Provisions
33. Trade and other payables
34. Derivative financial instruments
35. Financial instruments
36. Guarantees and purchase obligations
37. Commitments and Contingencies
38. Related parties
39. Subsidiaries
40.
41. Discontinued operations
42. Cash flow information
43. Subsequent events
Investments accounted for using the equity method
8
9
38
38
41
44
46
46
47
48
51
53
55
57
58
60
61
62
63
63
64
64
64
65
67
68
69
69
72
73
73
73
75
75
82
92
92
99
103
104
104
106
106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
1. Reporting entity
Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company” or “Turkcell”) was incorporated in Turkiye on
5 October 1993 and commenced its operations in 1994. The address of the Company’s registered office is
Maltepe Aydinevler Mahallesi Inonu Caddesi No: 20, Kucukyali Ofispark/Istanbul. It is engaged in
establishing and operating a Global System for Mobile Communications (“GSM”) network in Turkiye and
regional states.
In April 1998, the Company signed a license agreement (the “2G License”) with the Ministry of Transport
and Infrastructure of Turkiye (the “Turkish Ministry”), under which it was granted a 25-year GSM license in
exchange for a license fee of USD 500,000. The License permits the Company to operate as a stand-alone
GSM operator and releases it from some of the operating constraints in the Revenue Sharing Agreement,
which was in effect prior to the 2G License. Under 2G license, the Company pays in cash the Undersecretariat
of the Treasury (the “Turkish Treasury”) a monthly tax levy, namely a 'treasury share' equal to 15% of the
Company's gross revenue from Turkish GSM operations. The Company continues to build and operate its
GSM network and is authorized to, among other things, set its own tariffs within certain limits, charge peak
and off-peak rates, offer a variety of service and pricing packages, issue invoices directly to subscribers, collect
payments and deal directly with subscribers. Following the 3G tender held by the Information Technologies
and Communications Authority (“ICTA”) regarding the authorization for providing IMT-2000/UMTS
services and infrastructure, the Company has been granted the A-Type license (the “3G License”) providing
the widest frequency band, at a consideration of EUR 358,000 (excluding Value Added Tax (“VAT”)).
Payment of the 3G license was made in cash, following the necessary approvals, on 30 April 2009.
On 26 August 2015, “Authorization Tender on IMT Services and Infrastructure” publicly known as “4.5G
license” tender, was held by the ICTA and the Company was awarded with a total frequency band of
172.4 MHz for 13 years. The tender price is EUR 1,623,460 (excluding VAT of 18%). IMT authorization
period expires on 30 April 2029 and operators were able to commence service delivery for 4.5G starting from
1 April 2016. 2x1.4 MHz frequency band in 900MHz spectrum and 2 units of 2x5 MHz frequency bands in
2100 MHz spectrum were commenced on 1 December 2015, while remaining packages were commenced on
1 April 2016.
The Company is obliged to pay the ICTA a monthly treasury shares equal to 90% of 15% of gross revenue and
10% is paid for a universal service fund. In addition, the Company pays annual contributions in an amount
equal to 0.35% of net revenue to the ICTA’s expenses and 5% of net revenue to ICTA as a frequency fee
(TRx).
As of 31 December 2023, the capital shares and voting rights of TVF Bilgi Teknolojileri Iletisim Hizmetleri
Yatırım Sanayi ve Ticaret Anonim Sirketi (“TVF BTIH”) and IMTIS Holdings S.a r l. (“IMTIS Holdings”) in
the Company are 26.2% and 19.8%, respectively since 22 October 2020. The proportion of the Company’s
shares that are traded in domestic and foreign stock exchanges are 53.95% (Note 25).
The Group’s immediate and ultimate parents are TVF BTIH, wholly owned by Turkiye Varlik Fonu (“TVF”),
and TVF respectively as of 31 December 2023. TVF has been established with the Law No. 6741 and 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”);
236 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 237
8
7
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
1.
Reporting entity (continued)
(i)
A nomination privilege has been created on the Group A Shares, allowing the holders thereof to
nominate four candidates for appointment of five members of the board of directors of the
Company; a voting privilege has been created on the Group A Shares, allowing the holders thereof
to cast six votes for each Group A Share in respect of the appointment of
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2. Basis of preparation and summary of material accounting policies (continued)
(a) Compliance with IFRS (continued)
The General Assembly has the power to amend and reissue the financial statements. The consolidated financial
statements as at and for the year ended 31 December 2023 were authorized for issue by the Board of Directors
on 20 March 2024.
a. five members of the board of directors of the Company, and
(b)
Restatement of financial statements during the hyperinflationary periods
(ii)
(iii)
(iv)
(v)
b.
the chairman of the presiding committee of the general assembly of shareholders;
All shareholders of the Company (including the holders of Group A Shares) are entitled to cast
one vote per share on all other matters submitted to a vote of Turkcell’s shareholders, including
the appointment of the residual four members of the board of directors of Turkcell (including
independent ones);
The chairman of the board of directors shall be elected among the members of the board of
directors elected through the exercise of the privileges granted to Group A Shares;
The meeting quorum requirement of the board of directors requires five members constituting the
majority of full number of its members, and the decision quorum requires the affirmative vote of
at least five members present in the meeting; and
So long as the above mentioned privileges are in effect, unlimited authority to represent and bind
Turkcell regulated under Article 370 of Turkish Commercial Code shall be exercised by two
members of the board of directors of the Company, including at least one member of the board of
directors of the Company appointed through the exercise of the said privileges by the holders of
Group A Shares.
The Company’s board of directors consists of a total of nine non-executive members including three
independent members as of 31 December 2023.
The consolidated financial statements of the Company as at and for the year ended 31 December 2023 comprise
the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associate
and a joint venture. Subsidiaries of the Company, their locations and their nature of operations are disclosed
in Note 39. The Company’s and each of its subsidiaries’, associate’s and joint venture’s financial statements
are prepared as at and for the year ended 31 December 2023.
2.
Basis of preparation and summary of material accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated
financial statements to the extent they have not already been disclosed in the other notes below. These policies
have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial
statements are for the Group consisting of the Company and its subsidiaries and the Group’s interest in an
associate and a joint venture.
(a) Compliance with IFRS
The consolidated financial statements of the Group have been prepared in accordance with International
Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee
(“IFRICs”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as
issued by the International Accounting Standards Board (“IASB”).
The accounting policies, presentation and methods of computation are consistent with those of the previous
financial year and corresponding reporting period, unless otherwise stated.
238 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
9
The financial statements of the Company and those of the subsidiaries, associates and joint ventures located
in Turkiye and Turkish Republic of Northern Cyprus for the year ended 31 December 2023 were restated for
the changes in the general purchasing power of Turkish Lira, which is their functional currency, based on
International Accounting Standard No. 29 (“IAS 29”) “Financial Reporting in Hyperinflationary Economies”.
IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in
terms of the measuring unit current at the balance sheet date and that corresponding figures for previous
periods be restated in the same terms.
One characteristic that necessitates the application of IAS 29 is a cumulative three-year inflation rate
approaching or exceeding 100%. Cumulative three-year inflation rate in Turkiye reached 268.3% as at 31
December 2023, based on the Turkish nation-wide Consumer Price Index (“CPI”) announced by the Turkish
Statistical Institute (“TSI”). However, IAS 29 does not establish the rate of 100% as an absolute rate at which
hyperinflation is deemed to arise. It is a matter of judgment when restatement of financial statements in
accordance with IAS 29 becomes necessary. Moreover, hyperinflation is also indicated by characteristics of
the economic environment of a country.
The table below shows the evolution of CPI in the last three years and as of 31 December 2023:
Annual Index
Average Index
2023
1,859.38
1,488.91
2022
1,128.45
967.71
2021
686.95
561.61
2020
504.81
469.59
64.8%
268.3%
Yearly Inflation
Cumulative Inflation (last three years)
In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses
purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing
power to the extent the assets and liabilities are not linked to a price level. The gain or loss on the net monetary
position is included in the statement of profit or loss as monetary gain (loss) item.
The Company restated all the non-monetary items in order to reflect the impact of the inflation restatement
reporting in terms of the measuring unit current as of 31 December 2023. Consequently, the main items restated
were Property, Plant and Equipment, Intangible assets, Right-of-Use Assets, Inventories, Investments in
Equity Accounted Associate and Joint Venture and the Equity items.
64.3%
156.2%
36.1%
74.4%
14.6%
54.2%
Monetary items have not been restated because they are stated in terms of the measuring unit current as of 31
December 2023.
Comparative figures must also be presented in the current currency of 31 December 2023 and are restated
using the general price index of the current year. Therefore, all comparative figures for the previous reporting
periods have been restated, including foreign subsidiaries, by applying a general price index, so that the
resulting comparative financial statements are presented in terms of the current unit of measurement as of the
closing date of the reporting period.
In the statement of profit or loss, except for depreciation and amortization which is calculated using inflation
adjusted asset basis, items are restated from the dates when the items of income and expense were initially
recorded. The Group uses monthly general price index for this purpose.
10
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
2.
(b) Restatement of financial statements during the hyperinflationary periods (continued)
Similar to statement of profit or loss, all items in the statement of other comprehensive income are expressed
in terms of the measuring unit current at balance sheet date. Therefore, all amounts are restated by applying
the change in the general price index from the dates when the items of income and expenses were initially
recorded in the financial statements. All items in the statement of cash flows are expressed in a measuring unit
current at the balance sheet date.
The subsidiaries that use functional currencies other than Turkish Lira (foreign companies with economies that
are not considered to be hyperinflationary), do not restate their financial statements for inflation (except for
comparative presentation), in accordance with IAS 29. The initial items of the statement of changes in equity
are reported at the closing rate without modifying its total amount due to the fact that it is translated into the
closing exchange rate, which implies that a translation adjustment is recognized under retained earnings and
other comprehensive results. The accompanying consolidated financial statements are based on the statutory
records, with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS as
issued by the IASB. The financial statements have been prepared on a historical cost basis, except for the
following measured at fair value:
- Derivative financial instruments,
- Financial asset at fair value through profit or loss and other comprehensive income.
(c) Functional and presentation currency
(i) Transactions and balances
Transactions denominated in foreign currencies are translated into the functional currency using the exchange
rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the
reporting date are translated into the functional currency using the exchange rates at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
translated to the functional currency using the exchange rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain
or loss. For example, translation differences on non-monetary assets and liabilities such as assets held at fair
value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation
differences on assets classified as at fair value through other comprehensive income are recognized in other
comprehensive income.
Foreign exchange gains and losses are recognized in profit or loss, except:
• For capitalized foreign exchange differences relating to borrowings to the extent that they are regarded
as an adjustment to interest costs eligible for capitalization.
Foreign exchange differences are deferred in equity if they relate to qualifying cash flow hedges and qualifying
net investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange
gains and losses are presented in the statement of profit or loss on a net basis within finance income or finance
costs.
(ii) Foreign operations
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the
presentation currency as follows:
• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of
that balance sheet,
• Equity for each balance sheet presented is translated at historic cost at the date of transaction,
240 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
11
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(c) Functional and presentation currency (continued)
(ii) Foreign operations (continued)
•
Income and expenses for each statement of profit or loss and statement of comprehensive income are
translated at average monthly exchange rates (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses
are translated at the dates of the transactions) and
• All resulting exchange differences are recognized in other comprehensive income and accumulated in
the foreign currency translation reserve, in equity.
On consolidation, exchange differences arising from the translation of borrowings designated as hedges of any
net investment in foreign entities are recognized in other comprehensive income. When a foreign operation is
sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and
liabilities of the foreign operation and translated at the closing rate.
(d) Use of estimates and judgments
The preparation of the consolidated financial statements requires the use of accounting estimates. Management
also needs to exercise judgment in applying the Group’s accounting policies. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Alterations to accounting estimates
are recognized in the period in which the estimates are revised and in any future periods affected.
Information about significant areas of estimation, uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the consolidated financial
statements are described below:
Allowance for doubtful receivables
For trade receivables, other receivables, other assets and contract assets the Group applies the simplified
approach to providing for expected credit losses (ECL) prescribed in IFRS 9, which requires the use of the
lifetime expected loss provision. The Group performed the calculation of ECL rates separately for individual,
corporate and wholesale customers. The ECLs were calculated based on actual credit loss experience over the
past years. Exposures within each group were segmented based on common credit risk characteristics such as
delinquency status. Future collection performance of receivables is estimated by considering general economic
conditions to incorporate forward looking information to the expected credit loss calculations.
The Group also applies the general approach defined in IFRS 9 for the recognition of impairment losses on
receivables from financial services, carried at amortized cost. Group appropriately classifies its financial
instruments considering common risk factors (such as the type of the instrument, credit risk rating, guarantees,
time to maturity and sector) to determine whether the credit risk on a financial instrument has increased
significantly and to account appropriate amount of credit losses in the consolidated financial statements.
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.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 241
12
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(d) Use of estimates and judgments (continued)
Capitalization and useful lives of assets (continued)
2.
Basis of preparation and summary of material accounting policies (continued)
(d) Use of estimates and judgments (continued)
Income taxes
The useful lives and residual values of the Group’s assets are estimated by management at the time the asset
is acquired and regularly reviewed for appropriateness. The Group defines useful lives of its assets in terms of
the assets’ expected utility to the Group. This judgment is based on the experience of the Group with similar
assets. In determining the useful life of an asset, the Group also follows technical and/or commercial
obsolescence arising on changes or improvements from a change in the market. The useful lives of the
telecommunication licenses are based on the duration of the license agreements.
Gross versus net presentation of revenue
When the Group sells goods or services as a principal, revenue and operating costs are recorded on a gross
basis. When the Group sells goods or services as an agent, revenue and operating costs are recorded on a net
basis, representing the net margin earned. Whether the Group is considered to be acting as principal or agent
in the transaction depends on management’s analysis described below and such judgments impact the amount
of reported revenue and operating costs but do not impact reported assets, liabilities or cash flows:
Indicators that an entity is a principal:
• The entity is primarily responsible for fulfilling the promise to provide the specified good or service,
• The entity has inventory risk before the specified good or service has been transferred to a customer
or after transfer of control to the customer,
• The entity has discretion in establishing the price for the specified good or service.
Contracted handset sales
The Company, the distributors and dealers offer joint campaigns to the subscribers which may include the sale
of device by the dealer and/or distributor and a communication service to be provided by the Company. The
Company recognizes revenue on net basis, representing the net margin earned, for the device in these
transactions by considering the factors below:
- The Company is not the primary obligor for the sale of handset,
- The Company does not have control over the sale prices of handsets,
- The Company has no inventory risk.
In all other cases, where above factors do not exist, the Company recognizes revenue gross.
Multiple performance obligations and price allocation
In arrangements which include multiple elements where the Group acts as principal, the Group considers that
a good or service is distinct if both of the following criteria are met:
• The good or service is capable of being distinct, which is considered present if it is frequently sold
on standalone basis by the Group or other third parties,
• The promise to transfer the good or service is distinct within the context of the contract, which is
considered present if there is no significant integration that combines the goods or services.
Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation.
The transaction price is allocated between the identified obligations according to the relative standalone selling
prices of the obligations. The determination of standalone selling prices for the telecommunications services
that are regularly sold on an individual basis by the Group, are not considered to be a critical accounting
judgement since the Group uses the actual standalone price of similar services sold by itself in similar
circumstances. However, in cases where the identical goods or services are not sold by the Group, stand-alone
selling prices for similar goods and services sold by third parties are observed for the estimation purpose.
The calculation of income taxes involves a degree of estimation and judgment in respect of certain items whose
tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or,
as appropriate, through formal legal process.
As part of the process of preparing the consolidated financial statements, the Group is required to estimate the
income taxes in each of the jurisdictions and countries in which it operates. This process involves estimating
the actual current tax exposure together with assessing temporary differences resulting from differing
treatment of items, such as deferred revenue and reserves for tax and accounting purposes.
The recognition of deferred tax assets is based upon whether it is probable that future taxable profits will be
available against which unrecognized tax losses and temporary differences can be utilized. Recognition,
therefore, involves judgment regarding the future financial performance of the particular legal entity in which
the deferred tax asset has been recognized.
Provisions, contingent liabilities and contingent assets
As detailed and disclosed in Note 38, the Group is involved in a number of investigations and legal proceedings
(both as a plaintiff and as a defendant) arising in the ordinary course of business. All these investigations and
litigations are evaluated by the Group Management and when it is probable that an outflow of resources will
be required to settle the obligation and a reliable estimate can be made of the amount of the obligation, they
are accounted for in the consolidated financial statements. For ongoing investigations, Group Management
considers the following in determining if a provision should be recognized and the amount of provision needed;
i) actual results of investigations in similar nature, ii) information gathered from investigating regulators during
oral defense or other meetings, iii) publicly available information about developments at similar investigations
completed by the investigating authority. Future results or outcome of these investigations and litigations might
differ from these Group Management’s expectations.
All investigations and litigations are disclosed unless possibility of outflow is considered remote (and where
information concerning provisions are very sensitive, and full disclosure could prejudice the outcome of cases).
As at the reporting date, the Group Management believes that appropriate recognition criteria and measurement
basis are applied to provisions, contingent liabilities and contingent assets and that sufficient information is
disclosed in the notes to enable users to understand their nature, timing and amount by considering current
conditions and circumstances.
Asset Retirement Obligation
The Group recognize dismantling cost for towers and base stations and provision for site restoration in the cost
of an item of property, plant and equipment where the company has such a legal or constructive obligation.
The dismantling costs are calculated according to best estimate of future expected payments discounted at a
discount rate that reflects current market assessments of the time value of money and the risks specific to the
liability. Net present value of dismantling cost is recognized as cost of the item of property, plant and
equipment in non-current assets and as a long-term provision in non-current liability. Depreciation is calculated
by using the same useful life relating to that asset and discount interest expense is recognized under finance
cost in the statement of profit or loss. The Group expects that the obligations for dismantling, removing and
site restoration will not be realized before the associated assets’ end of useful life. Obligations for dismantling,
removing and site restoration are discounted using a discount rate of 11.5% –29.6% at 31 December 2023 (31
December 2022: 11.2% –23.9%)
242 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL 2023 INTEGRATED ANNUAL REPORT | 243
14
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(d) Use of estimates and judgments (continued)
Floating rate loans and borrowings
For floating–rate loans and borrowings, The Group calculates the effective interest rate(“EIR”) based on a
market–derived yield curve applicable for the entire life of the instrument. While applying this approach, the
calculated EIR is applied until estimated future cash flows are revised, at which point a new EIR is calculated
based on the revised cash flow expectations and the current carrying amount.
(e) Changes in accounting policies
Other than the adoption of the new and revised standards as explained in Note 2(z), the Group did not make
any significant changes to its accounting policies during the current year.
(f) Changes in accounting estimates
If the application of changes in the accounting estimates affects the financial results of a specific period, the
changes in the accounting estimates are applied in that specific period, if they affect the financial results of
current and following periods; the accounting estimate is applied prospectively in the period in which such
change is made. A change in the measurement basis applied is a change in an accounting policy, and is not a
change in an accounting estimate.
The Company does not have significant changes in accounting estimates during the year.
(g) Comparative information and revision of prior period financial statements
The consolidated financial statements of the Group 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.
The Company has classified current trade payables amounting to 2,190,434 TL as due to related parties as of
31 December 2022. The reclassification has no effect on the consolidated statement of profit or loss.
(h) Principles of consolidation and equity accounting
(i)
Business combinations
Business combinations are accounted for using the acquisition method. The consideration transferred in a
business combination comprises:
• The fair value of the assets transferred,
• Liabilities incurred to the former owners of the acquired business,
• Equity interests issued by the Group,
• The fair value of any asset or liability resulting from a contingent consideration arrangement, and
• The fair value of any pre-existing equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date.
Goodwill is measured as the excess of the aggregate of the consideration transferred, the amount recognized
for non-controlling interests, and acquisition-date fair value of any previously held equity interest in the
acquired entity over the fair value of the net identifiable assets acquired. If those amounts are less than the fair
value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or
loss as a bargain purchase. The Group recognizes any non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of
the acquired entity’s net identifiable assets.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(h) Principles of consolidation and equity accounting (continued)
(i)
Business combinations (continued)
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted
to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing
rate, being the rate at which a similar borrowing could be obtained from an independent financier under
comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss.
Contingent consideration classified as equity is not subject to remeasurement. Instead, any gain or loss at
settlement is recorded as an adjustment to equity through other comprehensive income.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or
losses arising from such remeasurement are recognized in profit or loss.
(ii)
Subsidiaries
Subsidiaries comprise all entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They are deconsolidated from the date that control
ceases.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
Intercompany transactions, balances and unrealized gains on transactions between group companies are
eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of
the transferred asset.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement
of financial position, respectively.
(iii) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions
with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any
difference between the amount of the adjustment to the non-controlling and any consideration paid or received
is recognized in a separate reserve within equity attributable to owners of the Company.
When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint
control or significant influence, any retained interest in the entity is remeasured to its fair value with the change
in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the
purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset.
In addition, any amounts previously recognized in other comprehensive income in respect of that entity are
accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognized in other comprehensive income are reclassified to profit or loss.
244 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
15
16
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 245
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(h) Principles of consolidation and equity accounting (continued)
(iii) Changes in ownership interests (continued)
If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence
is retained, only a proportionate share of the amounts previously recognized in other comprehensive income
are reclassified to profit or loss where appropriate.
(iv) Business combinations under common control
Business combinations between entities or businesses under common control are excluded from the scope of
IFRS 3. In a business combination under common control, assets and liabilities of the acquired entity are stated
at predecessor carrying values. Any difference between the consideration given and the aggregate book value
of the assets and liabilities of the acquired entity at the date of the transaction is recognized in equity. The
acquired entity’s results and financial position are incorporated as if both entities (acquirer and acquiree) had
always been combined, or using the results from the date when either entity joined the Group, where such a
date is later.
(v)
Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence, but not control or joint control. This
is generally the case where the Group holds between 20% and 50% of the voting rights. A joint venture is a
type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing
control. Investments in associates and joint ventures are accounted for using the equity method of accounting
after initially being recognized at cost.
The group holds an interest in a joint venture, Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş.(“Sofra”), and
an interest in an associate, Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş(“TOGG”). The
financial statements of Sofra and TOGG are prepared for the same reporting period as the Group.
The accounting policies of both companies are aligned with those of the Group. Therefore, no adjustments are
made when measuring and recognizing the Group’s share of the profit or loss of the investees after the date of
acquisition.
There is no significant goodwill included the carrying value of associate or joint venture.
Under the equity method of accounting, an investment in an associate is initially recognized at cost and adjusted
thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or
loss, and the Group’s share of movements in other comprehensive income of the investee in other
comprehensive income.
The carrying amount of equity-accounted investments is tested for impairment if impairment indicators exist.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
2.
(i)
Financial Assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash
flow characteristics and the Group’s business model for managing them. the Group initially measures a
financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss,
transaction costs.
In order for a financial asset to be classified and measured at amortized cost or fair value through other
comprehensive income, it needs to give rise to cash flows that are ‘solely payments of principal and interest
(SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair
value through profit or loss, irrespective of the business model.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at
amortized cost are held within a business model with the objective to hold financial assets in order to collect
contractual cash flows while financial assets classified and measured at fair value through other comprehensive
income are held within a business model with the objective of both holding to collect contractual cash flows
and selling.
i)
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
• Financial assets at amortized cost (debt instruments)
• Financial assets at fair value through other comprehensive income with recycling of cumulative gains
and losses (debt instruments)
• Financial assets designated at fair value through other comprehensive income with no recycling of
cumulative gains and losses upon derecognition (equity instruments)
• Financial assets at fair value through profit or loss
(ii)
Financial assets at amortized cost (debt instruments)
Financial assets at amortized cost are subsequently measured using EIR method and are subject to impairment.
Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost includes time deposits with maturity more than three months.
For more information, refer to Note 24.
(iii) Financial assets at fair value through other comprehensive income (debt instruments)
For debt instruments at fair value through other comprehensive income, interest income, foreign exchange
revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed
in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are
recognized in other comprehensive income. Upon derecognition, the cumulative fair value change recognized
in other comprehensive income is recycled to profit or loss.
The Group’s debt instruments at fair value through other comprehensive income includes investments in listed
debt securities. For more information, refer to Note 24.
246 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
17
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 247
18
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2. Basis of preparation and summary of material accounting policies (continued)
(i)
Financial instruments (continued)
Financial Assets (continued)
(iv) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value
with net changes in fair value recognized in the statement of profit or loss.
This category includes investment funds, and currency protected time deposits which the Group were
irrevocably designated at fair value through OCI as the Group considers these investments to be strategic in
nature.
When an investment in an associate or a joint venture is held by, or is held indirectly through, an entity that is
a venture capital organization, or a mutual fund, unit trust and similar entities including investment-linked
insurance funds, the entity may elect to measure that investment at fair value through profit or loss in
accordance with IFRS 9.Thus, the Group elect to measure the investments held by RE-PIE Portfoy Yonetim
A.S Turkcell Yeni Teknolojiler Girisim Sermayesi (“Turkcell GSYF”) at fair value through profit or loss. For
more information, refer to Note 24.
Impairment
(v)
The Group assesses on a forward-looking basis ECL associated with its debt instruments carried at amortized
cost and fair value through other comprehensive income. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
Loss allowances are measured on either of the following bases.
• 12 month expected credit losses (ECLs): these are ECLs that result from possible default events within
the 12 months after the reporting date and
• Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a
financial instrument.
The Group applies simplified lifetime ECL measurement for all group companies except Turkcell Finansman
which applies both 12 month and lifetime ECL (general approach).
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions and other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
(i)
Sale and Repurchase Agreements
Securities sold under repurchase agreements (“Repo”) are classified in the Company portfolio as fair value
through profit or loss, fair value through other comprehensive income or amortized cost portfolios and valued
according to relevant portfolio basis. Securities purchased under agreements to resell (“Reverse Repo”) are
recognized as cash and cash equivalents in the consolidated statement of financial position.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
Financial instruments (continued)
Trade receivables
2.
(i)
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. If collection of the amounts is expected in one year or less, they are classified as current assets. If
not, they are presented as non-current assets.
Current trade receivables that do not contain a significant financing component are measured at the transaction
price, less provision for impairment. However, non-current trade receivables are recognized initially at fair
value and subsequently measured at amortized cost using EIR method, less provision for impairment. See Note
35 for a description of the Group’s impairment policies.
Financial liabilities
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings, and derivative
financial instruments.
(i)
Subsequent measurement
For purposes of subsequent measurement, financial liabilities are classified in two categories:
• Financial liabilities at fair value through profit or loss
• Financial liabilities at amortized cost (loans and borrowings)
(ii) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Group that are not
designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the statement of profit or loss.
(iii) Financial liabilities at amortized cost (loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost
using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized
as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit
or loss. For more information, refer to Note 28.
(iv) Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognized in the statement of profit or loss.
248 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
19
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 249
20
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
Financial instruments (continued)
Offsetting financial assets and financial liabilities
2.
(i)
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
where the Group has a legally enforceable right to offset the recognized amounts, and there is an intention to
settle on a net basis or to realize the asset and settle the liability simultaneously.
(j) Derivative financial instruments and hedge accounting
Derivative instruments are initially recognized at the acquisition cost reflecting the fair value on the date on
which a derivative contract is entered into and are subsequently remeasured at fair value. The derivative
instruments of the Group mainly consist of participating cross currency swap contracts which a cross-currency
swap product featuring both buy and sell option structures, cross currency /interest rate swap contracts, foreign
currency swap contracts and currency forward contracts instruments. These derivative transactions, even
though providing effective economic hedges under the Group risk management position, do not generally
qualify for hedge accounting under the specific rules and are therefore treated as derivatives held for trading
in the consolidated financial statements. The fair value changes for these derivatives are recognized in the
consolidated income statement.
Fair values of foreign exchange forwards, interest rate and foreign exchange swaps (IRS, Cross Currency
Swaps etc.) and options are calculated with market levels of interest rates and Central Bank of Republic of
Turkiye (“CBRT”) exchange rates via valuation methods and pricing instruments correspondent with market
standards. If market levels are not available for valuation date, fair value for forward contracts will be the value
of the discounted future value of the difference between contract price level and forward value of CBRT
exchange rate with risk free rates for the period. Interest rate and currency swaps will be valued with the
difference of the discounted cash flows of each leg of the swaps using risk free rates and CBRT exchange
rates. Option transactions will be valued with option pricing models using risk free rates and CBRT exchange
rates.
At inception of the hedge relationship, the Group documents the economic relationship between hedging
instruments and hedged items including whether changes in the cash flows of the hedging instruments are
expected to offset changes in the cash flows of hedged items. The Group documents its risk management
objective and strategy for undertaking its hedge transactions. The hedging transactions of the Group that
qualify for hedge accounting are accounted for as follows:
(i)
Fair value hedge
Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recorded in
the income statement, together with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk. The change in the fair value of hedged asset or liability attributable to the
hedged risk is recorded as part of the carrying value of the hedged asset or liability during the effective hedging
relationship. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying
amount of a hedged item, for which the effective interest method is used, is amortized using a recalculated
effective interest rate.
250 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
2.
(j) Derivative financial instruments and hedging accounting (continued)
(ii) Cash flow hedge
Hedges of exposures to variability in cash flows that are attributable to a particular risk associated with a
recognized asset or liability or a highly probable forecast transaction and could affect profit and loss are
designated as cash flow hedges by the Group in accordance with IFRS 9 hedge accounting requirement. The
effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
is recognized in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion
is recognized immediately in profit or loss. Gains or losses relating to the effective portion of the change in
intrinsic value of the options are recognized in the cash flow hedge reserve within equity. The changes in the
time value of the options that relate to the hedged item (“aligned time value”) are recognized within other
comprehensive income in the costs of hedging reserve within equity.
Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss, as
follows:
- Where the hedged item subsequently results in the recognition of a non-financial asset, both the deferred
hedging gains and losses and the deferred time value of the option contracts or deferred forward points, if any,
are included within the initial cost of the asset. The deferred amounts are ultimately recognized in profit or
loss as the hedged item affects profit or loss.
- The gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings
is recognized in profit or loss within finance cost at the same time as the interest expense on the hedged
borrowings.
The new effectiveness test model may be qualitative depending on the complexity of hedging relationship
provided that it is prospective only. The 80-125% range in IAS 39 is replaced by an objectives-based test that
focuses on the economic relationship between the hedged item and the hedging instrument, and the effect of
credit risk on that economic relationship.
Under IFRS 9, at inception of the hedge relationship, the Group documents the economic relationship between
hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments
are expected to offset changes in the cash flows of hedged items. The Group documents its risk management
objective and strategy for undertaking its hedge transactions.
Under IFRS 9, a hedging relationship is discontinued in its entirety when as a whole it ceases to meet the
qualifying criteria after considering the rebalancing of the hedging relationship. Voluntary discontinuation
when the qualifying criteria are met is prohibited. Hedge accounting is discontinued when the risk management
objective for the hedging relationship has changed, the hedging instrument expires or is sold, terminated or
exercised, there is no longer an economic relationship between the hedged item and hedging instrument or
when the effect of credit risk starts dominating the value changes that result from the economic relationship.
When the Group discontinues hedge accounting for a cash flow hedge it shall account for the amount that has
been accumulated in the cash flow hedge reserve in accordance as follows;
-If the hedged future cash flows are still expected to occur, that amount shall remain in the cash flow hedge
reserve until the future cash flows occur.
-When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time
remains in equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset.
When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of
hedging that were reported in equity are immediately reclassified to profit or loss.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 251
22
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
2.
Basis of preparation and summary of material accounting policies (continued)
Derivative financial instruments and hedging accounting (continued)
((iii) Foreign currency hedge of net investments in foreign operations
Foreign exchange gains or losses on the hedging instrument relating to the effective portion of the foreign
currency hedge of net investments in foreign operations are recognized in other comprehensive income while
any gains or losses relating to the ineffective portion is recognized in the income statement. Tax effects of
foreign exchange gains or losses on the hedging instrument relating to the effective portion of the foreign
currency hedge of net investments in foreign operations is recognized under other comprehensive income as
well (Note 34).
(k) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are stated at historical cost adjusted for the effects of inflation during
the hyperinflationary period, where applicable, less depreciation and impairment losses. Historical cost
includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes cost of materials and direct labor, any other costs directly attributable to bringing the asset to a
working condition for its intended use and the costs of dismantling and removing the items and restoring the
site on which they are located, if any.
Purchased software that is integral to the functionality of the related equipment is capitalized as part of that
equipment. When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items of property, plant and equipment.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are
included in profit or loss.
Changes in the obligation to dismantle, remove assets on sites and to restore sites on which they are located,
other than changes deriving from the passing of time, are added or deducted from the cost of the assets in the
period in which they occur. The amount deducted from the cost of the asset shall not exceed the balance of the
carrying amount on the date of change, and any excess balance is recognized immediately in profit or loss. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.
(ii) Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.
(iii) Depreciation
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over
their estimated useful lives.
Land is not depreciated.
(k) Property, plant and equipment (continued)
(iii) Depreciation (continued)
The ranges of estimated useful lives 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.
(iv) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period to get ready for their
intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.
(l)
(i)
Intangible assets
Telecommunication licenses
Separately acquired telecommunication licenses are stated at historical cost adjusted for the effects of inflation
during the hyperinflationary period, where applicable, less amortization and impairment losses.
Amortization
Amortization is recognized in the statement of profit or loss on a straight-line basis by reference to the license
period. The range of estimated useful life for telecommunication licenses are as follows:
Telecommunications licenses
3 – 25 years
The Company has been granted the 2G, 3G and 4.5G licenses on 27 April 1998 (The 2G license has been
extended until 30 April 2029 on 7 April 2023) 30 July 2009 and 26 August 2015, respectively. The licenses
are effective for 31, 20 and 13 years, respectively.
(ii) Computer software
Acquired computer software licenses are stated at historical cost adjusted for the effects of inflation during the
hyperinflationary period, where applicable, less amortization and impairment losses. Acquired computer
software licenses are capitalized based on the costs incurred to acquire and bring to use the specific software.
Costs associated with maintaining computer software programs are recognized as an expense as incurred.
Development costs that are directly attributable to the design and testing of identifiable and unique software
products controlled by the Group are recognized as intangible assets when the following criteria are met:
•
It is technically feasible to complete the software such that it will be available for use,
• Management intends to complete the software and use or sell it,
252 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
23
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 253
24
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(I) Intangible assets (continued)
(ii) Computer software (continued)
• There is an ability to use or sell the software,
•
It can be demonstrated how the software will generate probable future economic benefits,
• Adequate technical, financial and other resources to complete the development and to use or sell the
software are available and
• The expenditure attributable to the software during its development can be reliably measured.
Directly attributable costs that are capitalized as part of the software include employee costs and an appropriate
portion of relevant overheads.
Research expenditure and development expenditure that do not meet the criteria above are recognized as an
expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in
a subsequent period.
Capitalized development costs are recorded as intangible assets and amortized from the point at which the
asset is ready for use.
Amortization
Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful
lives. The range of estimated useful life for computer software are as follows:
Computer software
3 – 8 years
Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of
each reporting period.
(iii) Other intangible assets
Other intangible assets that are acquired by the Group which have finite useful lives are stated at historical cost
adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization
and impairment losses. Indefeasible Rights of Use (“IRU”) are rights to use a portion of an asset’s capacity
granted for a fixed period of time. IRUs are recognized as intangible asset when the Group has specific
indefeasible rights to use an identified portion of an underlying asset and the duration of the right is for the
major part of the underlying asset's useful economic life. IRUs are amortized over the shorter of the underlying
asset's useful economic life and the contract term.
Amortiation
Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful
lives. The ranges of the estimated useful lives for computer software are as follows:
Indefeasible right-of-use
Transmission line software
Brand name
Customer base
Subscriber acquisition cost
Electricity production license
15 years
5–10 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.
254 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
Intangible assets (continued)
Goodwill
2.
(I)
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is
tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might
be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
(m) Investment properties
Recognition and measurement
Investment properties are properties held for rental yields and/or for capital appreciation (including property
under construction for such purposes). Investment properties are stated at historical cost adjusted for the effects
of inflation during the hyperinflationary period, where applicable, less depreciation and impairment losses.
An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising
on derecognition of the property (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
Depreciation
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over
their estimated useful lives. The ranges of estimated useful lives are as follows:
Investment Property
25-45 years
Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end
of each reporting period.
(n)
Inventories
Inventories are stated at the lower of cost, which is adjusted for the effects of inflation during the
hyperinflationary period, where applicable, and net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Cost of
inventory is determined using the weighted average method and comprises all costs of purchase and other costs
incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are
determined after deducting rebates and discounts. At 31 December 2023 and 2022, inventories mainly
consisted of mobile phone and its accessories, tablet, sim-cards, tower construction materials and other
electronic products.
(o)
Impairment of non-financial assets
The Group assesses, at each reporting period, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Group estimates the
asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s
(“CGU”) fair value less costs of disposal and its value in use. The recoverable amount is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 255
26
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
2.
Basis of preparation and summary of material accounting policies (continued)
(o) Impairment of non-financial assets (continued)
(q) Provisions
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an
indication that previously recognized impairment losses no longer exist or have decreased. As of 31 December
2023, no indication of impairment was found in any CGU of the Group and no impairment test was performed.
As of 31 December 2022, due to ongoing war in Ukraine, impairment test of Lifecell’s tangible and intangible
assets was performed (Note 14).
(p) Employee benefits
(i)
Short-term obligations
Liabilities for salaries including non-monetary benefits that are expected to be settled wholly within
12 months after the end of the period in which the employees render the related service are recognized in
respect of employees’ services up to the end of the reporting period and are measured at the amounts expected
to be paid when the liabilities are settled. The liabilities are presented as employee benefit obligations in the
statement of financial position.
(ii) Post-employment benefits
In accordance with the labor law in Turkiye, the Company and its subsidiaries in Turkiye are required to make
lump-sum payments to employees who have completed one year of service and whose employment is
terminated without cause or who retire, are called up for military service or die. Such payments are considered
as being part of defined benefit plans in accordance with IAS 19 Employee Benefits (“IAS 19”). Thus, the
Group has recognized the retirement pay liability provision which is calculated by estimating the present value
of future probable obligation of the Company and its subsidiariesin Turkiye arising from retirement of
employees. Provision for retirement pay liability is calculated by independent actuaries using the projected
unit credit method. The calculated actuarial gains and losses are all recognized in other comprehensive income.
For Turkish legal entities, the provision is calculated based on 30 days' pay up to a of maximum full TL 23.5
as at 31 December 2023 (31 December 2022: TL 15.4), per year of employment at the rate of pay applicable
at the date of retirement. Discount rate used for calculating retirement pay liability as of 31 December 2023 is
2.5% (31 December 2022: 0.6%).
(iii) Share-based payments
The Group provides a cash-settled share-based payment plan for selected employees in return for their services.
For cash-settled share-based payment transactions, the Group measures services received and the liability
incurred at the fair value of the liability. Liabilities for cash-settled share-based payment plan are recognized
as employee benefit expense over the relevant service period. The fair value of the liability is re-measured at
each reporting date and at the settlement date. Any changes in fair value are recognized in profit or loss for the
period.
(iv) Personnel bonus
Provision for bonus is provided when the bonus is a legal obligation, or past practice would make the bonus a
constructive obligation and the Group is able to make a reliable estimate of the obligation.
(v) Defined contribution plans
For defined contribution plans, the Group pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations
once the contributions have been paid. The contributions are recognized as employee benefit expense when
they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in
the future payments is available.
A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the
obligation.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognized even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the outflow required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to
the liability. The increase in the provision due to the passage of time is recognized as interest expense.
Onerous contracts
Present obligation arising under an onerous contract is recognized and measured as a provision. An onerous
contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting
the obligations under the contract exceed the economic benefits expected to be received under it.
Dismantling, removal and restoring sites obligation
The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to
restore sites on which the assets were located. The dismantling costs are calculated according to best estimate
of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
(r) Revenue
Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation.
The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for
transferring promised goods or services to a customer. Revenue is recognized when control is transferred to
the customer.
Revenue from telecommunication services includes postpaid and prepaid revenue from voice, data, messaging
and value-added services, fixed internet services, interconnect revenue, and roaming revenue.
The Group generally recognizes telecommunication revenue over time as it performs because the subscriber
simultaneously receives and consumes the benefits provided by the Group, as the Group performs. At some of
the contracts, the Group recognizes revenue for the products and services early within the contract term, where
the collection is made in deferred terms. Collection under these contracts, are considered probable as the Group
has contractual right to collect, it has a firm policy and practice to enforce its contractual rights and has a
historic pattern of collection.
With respect to prepaid revenue, the Group generally collects cash in advance by selling prepaid top up to
distributors. In such cases, the Group does not recognize revenue until subscribers use the telecommunication
services.
Services may be bundled with other products and services and these bundled elements involve consideration
in the form of a fixed fee or a fixed fee coupled with a continuing payment stream. A good or service is distinct
if both of the following criteria are met:
• The good or service is capable of being distinct, which is considered present if it is frequently sold
on standalone basis by the Group or other third parties,
• The promise to transfer the good or service is distinct within the context of the contract, which is
considered present if there is no significant integration that combines the goods or services.
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
2.
Basis of preparation and summary of material accounting policies (continued)
(r) Revenue (continued)
(s)
Income taxes
The arrangement consideration is allocated to each performance obligation identified in the contract on a
relative standalone selling price. If an element of a transaction is not distinct, then it is accounted for as an
integral part of the remaining elements of the transaction.
Revenue from device sales is recognized when control of the device has been transferred, being the time when
delivered to the end customer. For device sales made to intermediaries, revenue is recognized at the time when
control of the device has been transferred, being when the products are delivered to the intermediary. The
Group, its distributors and dealers offer joint campaigns to subscribers (mainly corporate 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 sales to the subscribers with deferred payment terms.
Instalment of these handset sales are collected by the Group through letters of undertaking (a formal document
transferring right to collect) signed by all parties. The Group pays the distributor the net present value of the
instalments to be collected from the subscribers and recognizes “contracted receivables” (those that are
transferred by the dealers/distributors) in its statement of financial position. The undue (not collected) portion
of these contracted receivables which were paid upfront to the distributors/dealers by the Group is classified
as “undue assigned contracted receivables” in trade receivables (Note 19). When monthly installment is
invoiced to the subscriber, related portion is reclassified 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, unless the gross versus net presentation criteria explained at note (d) are met.
The Group and distributors offer subscribers 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. This is classified as revenue
from financial services and it represents interest income generated from consumer financing activities. Interest
income is recognized as it accrues, using the effective interest method. The Group also generate revenue from
mobile payment services, classified as revenue from financial services, provided by Turkcell Odeme. The
revenue mainly consists of commission income from mobile payment activities, and recognized when
customers use the service, make transactions and the service provided.
Monthly fixed fees represent a fixed amount charged to postpaid subscribers on a monthly basis without regard
to the level of usage. Fixed fees are recognized on a monthly basis when billed. Monthly fixed fees are included
in telecommunication services revenues.
Call center revenues are recognized at the time services are rendered during the contractual period.
The revenue recognition policy for other revenues is to recognize revenue as services are provided.
Contract costs eligible for capitalization as incremental costs of obtaining a contract comprise commission on
sale relating to prepaid and postpaid contracts with acquired or retained subscribers. Contract costs are
capitalized in the month of service activation if the Group expects to recover those costs. Contract costs
comprise sales commissions to dealers and to own salesforce which can be directly attributed to an acquired
or retained contract. Contract costs are classified as intangible assets in the consolidated financial statements.
The asset is amortized on a straight-line basis over the customer lifetime, consistent with the pattern of
recognition of the associated revenue.
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
Income tax expense is recognized in the statement of profit or loss, except to the extent that it relates to items
recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other
comprehensive income or directly in equity, respectively. The current income tax charge is calculated based
on the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the
Company and its subsidiaries and associates operate and generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject
to interpretation. It establishes provisions, where appropriate, based on amounts expected to be paid to the tax
authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting nor
taxable profit or loss and at the time of the transaction, does not give rise to equal taxable and deductible
temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related deferred
income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized
only if it is probable that future taxable amounts will be available to utilize those temporary differences and
tax losses.
Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount
and tax bases of investments in foreign operations where the Company is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable
future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on
a net basis, or to realize the asset and settle the liability simultaneously.
Companies within the Group may be entitled to claim special tax deductions for investments in qualifying
assets or in relation to qualifying expenditure (e.g., the Research and Development Tax Incentive regime in
Turkiye or other investment allowances). The Group accounts for such allowances as tax credits, which means
that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognized for
unclaimed tax credits that are carried forward as deferred tax assets.
258 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
2.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
2.
(t) Earnings per share
(w)
Dividends
Liability is recognized for any dividend declared, being appropriately authorized and no longer at the discretion
of the Company, on or before the end of the reporting period but not distributed at the end of the reporting
period.
(x) Leases
At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified
asset, The Group assesses whether:
- The contract involved the use of an identified asset - this may be specified explicitly or implicitly;
- The asset should be physically distinct or represent substantially all of the capacity of a physically
distinct asset. If the supplier has a substantive substitution right, the asset is not identified;
- The Group has the right to obtain substantially all of the economic benefits from the use of an asset
throughout the period of use and
- The Group has the right to direct use of the asset. The Group has the right when it has the
decision-making rights that are most relevant to changing the how and for what purpose the asset is used.
If these 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.
At inception or on reassessment of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone prices.
The Group does not have any potential ordinary shares in issue, therefore basic and diluted earnings per share
(“EPS”) are equal. Since basic and diluted EPS are equal, the Group presents both basic and diluted EPS on
one line described as “Basic and diluted EPS”.
Basic EPS is calculated by dividing the profit attributable to ordinary shareholders of the Company by the
weighted-average number of ordinary shares outstanding during the financial year, excluding treasury shares.
In Türkiye, entities can increase their share capital by distributing “Bonus share” to shareholders from retained
earnings. In computing earnings per share, such “Bonus share” distributions are treated as issued shares.
Accordingly, the retrospective effect for such share distributions is taken into consideration when determining
the weighted-average number of shares outstanding.
(u) Non-current assets held for sale and discontinued operations
On 29 December 2023, the Group publicly announced the decision of its Board of Directors to sell Lifecell,
UkrTower and Global LLC, which as whole represent Ukrainian geography operations. The sale of Ukrainian
operations is expected to be completed within a year from the reporting date.
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather than through continuing use.
Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying
amount and fair value less costs to sell. Assets and liabilities of Ukrainian operations are presented at carrying
amounts, as carrying amount is lower than fair value less costs to sell.
The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the
asset or disposal group is available for immediate sale in its present condition. Actions required to complete
the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision
to sell will be withdrawn. Assets and liabilities classified as held for sale are presented separately as current
items in the statement of financial position.
Ukrainian operations are presented as a discontinued operation because it is classified as held for sale and it
represents a separate major geographical area of operations. Discontinued operations are excluded from the
results of continuing operations and are presented as a single amount as profit or loss after tax from
discontinued operations in the statement of profit or loss.
Additional disclosures are provided in Note 41. All other notes to the financial statements include amounts for
continuing operations, unless indicated otherwise.
(v) Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds.
Where any Group company purchases the Company’s equity instruments, for example as the result of a share
buy-back plan, the consideration paid, including any directly attributable incremental costs (net of income
taxes) is deducted from equity attributable to the owners of the Company as treasury shares until the shares
are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received,
net of any directly attributable incremental transaction costs and the related income tax effects, is included in
equity attributable to the owners of the Company (Note 25).
260 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(y) Leases (continued)
Right-of-use asset
The Group recognizes a right-of use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially recognized at cost which is adjusted for the effects of inflation during the
hyperinflationary period, where applicable, comprising of:
- Amount of the initial measurement of the lease liability,
- Any lease payments made at or before the commencement date, less any lease incentives received,
- Any initial direct costs incurred by the Group and
- An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required by
the terms and conditions of the lease, unless those costs are incurred to produce inventories. The lessee
incurs the obligation for those costs either at the commencement date or as a consequence of having
used the underlying asset during a particular period.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end date of the useful life of the right-of-use asset or the end date of the lease term.
The estimated useful lives of right-of-use assets are determined on the same basis as those property and
equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability (Note 16).
Lease Liability
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. The Group uses its incremental borrowing rate as the
discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
- Fixed payments, including in-substance fixed payments,
- Variable lease payments that depend on an index or a rate, initially measured using the index or rate
at the commencement date,
- Amounts expected to be payable under a residual value guarantee and
- The exercise price under a purchase option that the Group is reasonably certain to exercise, lease
payments in an optional renewable period if the Group is reasonably certain to exercise an extension
option, and penalties for early termination of a lease if the Group is reasonably certain to terminate
early.
After initial recognition, the lease liability is measured (a) increasing the carrying amount to reflect interest
on lease liability; (b) reducing the carrying amount to reflect the lease payments made, and (c) remeasuring
the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed
lease payments.
Where, (a) there is a change in the lease term as a result of reassessment of certainty to exercise an extension
option, or not to exercise a termination option as discussed above; or (b) there is a change in the assessment
of an option to purchase the underlying asset, assessed considering the events and circumstances in the
context of a purchase option, the Group remeasures the lease liabilities to reflect changes to lease payments
by discounting the revised lease payments using a revised discount rate. The Group determines the revised
discount rate as the interest rate implicit in the lease for the remainder of the lease term, or the its incremental
borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily
determined.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2. Basis of preparation and summary of material accounting policies (continued)
(x) Leases (continued)
Where, (a) there is a change in the amounts expected to be payable under a residual value guarantee; or (b)
there is a change in the future lease payments resulting from a change in an index or a rate used to determine
those payments, including change to reflect changes in market rental rates following a market rent review,
the Group remeasures the lease liabilities by discounting the revised lease payments using an unchanged
discount rate, unless the change in lease payments results from a change in floating interest rates. In such
case, the Group uses the revised discount rate that reflects changes in the interest rate.
The Group recognizes the amount of the remeasurement of lease liability as an adjustment to the right-of-
use asset. Where the carrying amount of the right-of-use asset is reduced zero and there is further reduction
in the measurement of the lease liability, the Group recognizes any remaining amount of the remeasurement
in profit or loss.
The Group accounts for a lease modification as a separate lease if both:
- The modification increases the scope of the lease by adding the right to use one or more underlying
assets and
- The consideration for the lease increases by an amount commensurate with the stand-alone price for
the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
circumstances of the particular contract.
The Group as a Lessor
When the Group acts an intermediate lessor, it accounts for its interests in the head lease and the sub-lease
separately. It assesses the lease classification of a sub-lease with reference to the right-of-use-asset arising
from the head lease, not with reference to the underlying asset.
If an arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the
consideration in the contract.
(y) New standards and interpretations
i)
Standards, amendments and interpretations applicable as at 31 December 2023:
IFRS 17 - The new Standard for insurance contracts
IASB issued IFRS 17, a comprehensive new accounting standard for insurance contracts covering
recognition and measurement, presentation and disclosure. IFRS 17 model combines a current balance sheet
measurement of insurance contract liabilities with the recognition of profit over the period that services are
provided. Certain changes in the estimates of future cash flows and the risk adjustment are also recognized
over the period that services are provided. Entities have an option to present the effect of changes in discount
rates either in profit and loss or in other comprehensive income. The standard includes specific guidance on
measurement and presentation for insurance contracts with participation features.
The standard did not have a significant impact on the financial position or performance of the Group.
Amendments to IAS 8 - Definition of Accounting Estimates
In February 2021, the Board issued amendments to IAS 8, in which it introduces a new definition of
“accounting estimates”. The amendments clarify the distinction between changes in accounting estimates
and changes in accounting policies and the correction of errors. Also, the amended standard clarifies that
the effects on an accounting estimate of a change in an input or a change in a measurement technique are
changes in accounting estimates if they do not result from the correction of prior period errors.
262 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2. Basis of preparation and summary of material accounting policies (continued)
(y) New standards and interpretations (continued)
i)
Standards, amendments and interpretations applicable as at 31 December 2023:
Amendments to IAS 8 - Definition of Accounting Estimates (continued)
The previous definition of a change in accounting estimate specified that changes in accounting estimates
may result from new information or new developments. Therefore, such changes are not corrections of
errors. This aspect of the definition was retained by the Board. The amendments apply to changes in
accounting policies and changes in accounting estimates that occur on or after the start of the effective date.
The amendments did not have a significant impact on the financial position or performance of the Group.
Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance
and examples to help entities apply materiality judgements to accounting policy disclosures. The
amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the
requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their
‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making
decisions about accounting policy disclosures. The amendments have had some impact on the Group’s
disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in
the Group’s financial statements.
Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition
exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and
deductible temporary differences. The amendments clarify that where payments that settle a liability are
deductible for tax purposes, it is a matter of judgement (having considered the applicable tax law) whether
such deductions are attributable for tax purposes to the liability recognized in the financial statements (and
interest expense) or to the related asset component (and interest expense). This judgement is important in
determining whether any temporary differences exist on initial recognition of the asset and liability. The
amendments apply to transactions that occur on or after the beginning of the earliest comparative period
presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset
(provided that sufficient taxable profit is available) and a deferred tax liability for all deductible and taxable
temporary differences associated with leases and decommissioning obligations should be recognized.
The standard did not have a significant impact on the financial position or performance of the Group.
Amendments to IAS 12 - International Tax Reform – Pillar Two Model Rules
In May 2023, the Board issued amendments to IAS 12, which introduce a mandatory exception in IAS 12
from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The
amendments clarify that IAS 12 applies to income taxes arising from tax laws enacted or substantively
enacted to implement the Pillar Two Model Rules published by the Organization for Economic
Cooperation and Development (OECD).
The amendments also introduced targeted disclosure requirements for entities affected by the tax laws. The
temporary exception from recognition and disclosure of information about deferred taxes and the requirement
to disclose the application of the exception apply immediately and retrospectively upon issue of the
amendments. However, certain disclosure requirements are not required to be applied for any period ending
on or before 31 December 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
2.
Basis of preparation and summary of material accounting policies (continued)
(z) New standards and interpretations (continued)
i)
Standards, amendments and interpretations applicable as at 31 December 2023 (continued):
Amendments to IAS 12 - International Tax Reform – Pillar Two Model Rules (continued)
Based on management’s preliminary assessments, Group management does not expect significant impact on
it’s consolidated financial statements due to Pillar Two amendmentds. However, the Company will continue
to monitoring upcoming legislation changes on this matter, in Turkey and in other countires that the Group
operates.
ii)
Standards, amendments and interpretations that are issued but not effective as at 31 December 2023:
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the
date of issuance of the consolidated financial statements are as follows. the Group will make the necessary
changes if not indicated otherwise, which will be affecting the consolidated financial statements and
disclosures, when the new standards and interpretations become effective.
Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
In December 2015, IASB postponed the effective date of this amendment indefinitely pending the outcome
of its research project on the equity method of accounting. Early application of the amendments is still
permitted.
The Group will wait until the final amendment to assess the impacts of the changes.
Amendments to IAS 1- Classification of Liabilities as Current and Non-Current Liabilities
In January 2020 and October 2022, IASB issued amendments to IAS 1 to specify the requirements for
classifying liabilities as current or non-current. According to the amendments made in October 2022 if an
entity’s right to defer settlement of a liability is subject to the entity complying with the required covenants
at a date subsequent to the reporting period (“future covenants”), the entity has a right to defer settlement of
the liability even if it does not comply with those covenants at the end of the reporting period. In addition,
October 2022 amendments require an entity to provide disclosure when a liability arising from a loan
agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance
with future covenants within twelve months. This disclosure must include information about the covenants
and the related liabilities. The amendments clarified that the classification of a liability is unaffected by the
likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months
after the reporting period. The amendments are effective for periods beginning on or after 1 January 2024.
The amendments must be applied retrospectively in accordance with IAS 8. Early application is permitted.
However, an entity that applies the 2020 amendments early is also required to apply the 2022 amendments,
and vice versa.
The Group expects no significant impact on its balance sheet and equity.
Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback
In September 2022, the Board issued amendments to IFRS 16. The amendments specify the requirements
that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognize any amount of the gain or loss that relates to the right-of-use it retains.
In applying requirements of IFRS 16 under “Subsequent measurement of the lease liability” heading after
the commencement date in a sale and leaseback transaction, the seller lessee determines ‘lease payments’ or
‘revised lease payments’ in such a way that the seller-lessee would not recognize any amount of the gain or
loss that relates to the right-of-use retained by the seller-lessee.
264 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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36
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Basis of preparation and summary of material accounting policies (continued)
2.
(z) New standards and interpretations (continued)
ii)
Standards, amendments and interpretations that are issued but not effective as at 31 December 2023
(continued):
Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback (continued)
The amendments do not prescribe specific measurement requirements for lease liabilities arising from a
leaseback. The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee
determining ‘lease payments’ that are different from the general definition of lease payments in IFRS 16.
The seller-lessee will need to develop and apply an accounting policy that results in information that is
relevant and reliable in accordance with IAS 8. A seller-lessee applies the amendments to annual reporting
periods beginning on or after 1 January 2024. Earlier application is permitted. A seller-lessee applies the
amendments retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after
the date of initial application of IFRS 16.
The Group does not expect significant impact of the amendments on financial position or performance of the
Group.
Amendments to IAS 7 and IFRS 7 - Disclosures: Supplier Finance Arrangements
The amendments issued in May 2023 specify disclosure requirements to enhance the current requirements,
which are intended to assist users of financial statements in understanding the effects of supplier finance
arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. Supplier finance
arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its
suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same
date as, or a date later than, suppliers are paid. The amendments require an entity to provide information
about terms and conditions of those arrangements, quantitative information on liabilities related to those
arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes
in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required
by IFRS 7, supplier finance arrangements are also included as an example of other factors that might be
relevant to disclose. The amendments will be effective for annual reporting periods beginning on or after 1
January 2024. Early adoption is permitted but will need to be disclosed.
The Group is in the process of assessing the impact of the amendments on financial position or performance
of the Group.
Amendments to IAS 21 - Lack of exchangeability
In August 2023, the Board issued amendments to IAS 21. The amendments specify how an entity should
assess whether a currency is exchangeable and how it should determine a spot exchange rate when
exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not
exchangeable into another currency, it discloses information that enables users of its financial statements to
understand how the currency not being exchangeable into the other currency affects, or is expected to
affect, the entity’s financial performance, financial position and cash flows. The amendments will be
effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted but
will need to be disclosed. When applying the amendments, an entity cannot restate comparative
information.
The Group is in the process of assessing the impact of the amendments on financial position or performance
of the Group.
266 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
3. Business combinations
The Company's 100% owned subsidiary Turkcell Enerji has signed a Share Transfer Agreement to acquire
the entire shares of Boyut Grup 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 USD 29,600. After adjusting for
the net debt of Boyut Enerji, the Group made a payment of USD 10,972. USD 500 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 IFRS 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
Net assets acquired
Goodwill
258,584
249,719
8,865
(230,835)
27,749
The fair values of identifiable assets and liabilities in accordance with IFRS 3 arising from the acquisition
are as follows:
Cash and cash equivalents
Other current assets
Property, plant and equipment
Intangible assets
Other non-current assets
Borrowings
Trade and other payables
Due to related parties
Provisions
Employee benefit obligations
Deferred tax liabilities
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.
Financial risk management
15,039
15,528
342,889
631,093
449
(411,129)
(21,326)
(6,794)
(100)
(208)
(131,966)
(202,640)
230,835
249,719
(15,039)
234,680
This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future
financial performance. Current year profit and loss information has been included where relevant to add
further context.
The Group’s risk management policies are set to determine and analyze the risks faced, to establish the
appropriate risk limits and to observe the commitment to those limits. These policies are constantly reviewed
to make sure they reflect the Group’s operations and the changes in market conditions.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 267
38
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Financial risk management (continued)
Market risk (continued)
4.
(i)
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the USD, EUR and RMB. Foreign exchange risk arises from
recognized assets and liabilities denominated in a currency that is not the functional currency of the relevant
Group entity. The Group holds a significant portion of its cash and cash equivalent in foreign currencies in
order to manage foreign exchange risk. In addition, derivative financial instruments are used to manage
exposure to fluctuations in foreign exchange rates and since 1 July 2018 the Company applies hedge
accounting. Details of the Company’s foreign exchange risk is disclosed in Note 35.
(ii)
Interest rate risk
The Group’s exposure to interest rate risk is related to its financial assets and liabilities. The Group manage
its financial liabilities by providing an appropriate distribution between fixed and floating rate loans. Floating
rate exposures can be changed to fixed rate exposures based on short-term and long-term market expectations
via financial derivatives. The use of financial derivatives is governed by the Group Treasury’s policies
approved by the Audit Committee, which provide written principles on the use of derivatives. The Group’s
borrowings and receivables are carried at amortized cost. The borrowings are periodically contractually
repriced (Note 35) and are also exposed to the risk of future changes in market interest rates.
The Group's transition from USD LIBOR to SOFR was completed as of June 30, 2023.
In calculating the change in fair value attributable to the hedged risk of the floating-rate debt, the Group has
made the following assumptions that reflect its current expectations:
- Considering the Group's 'Possible' requirements, the USD LIBOR interest rate on which its hedging
liabilities are based has not changed as a result of the IBOR reform.
- As a result of the IBOR reform, the USD LIBOR interest rate, on which the cash flows of the debt for
hedging purposes are carried out, and the swap interest rate on which the hedging transactions are based,
have not changed as a result of the IBOR reform.
- The group has not retroactively changed its cash flow hedging reserve for the period expected for the
implementation of the reforms.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Financial risk management (continued)
4.
Credit risk
At the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit
risk is represented by the carrying amount of cash and cash equivalents, financial asset at fair value through
other comprehensive income, financial asset at fair value through profit or loss, financial asset at amortize
cost, derivative financial instruments, contract assets, trade receivables, receivables from financial services,
due from related parties and other current and non-current assets (Note 35).
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
The Group may require collateral in respect of financial assets. Also, the Group may demand letters of
guarantee from third parties related to certain projects or contracts. The Group may also demand certain
pledges from counterparties, if necessary, in return for the credit support it gives related to certain financings
(Note 19).
In monitoring customer credit risk, customers are grouped according to whether they are subscribers,
financial services customers, other corporate customers and aging profile, maturity and existence of previous
financial difficulties. Trade receivables and contract assets are mainly related to the Group’s subscribers. The
Group’s exposure to credit risk on trade receivables and contract assets is influenced mainly by the individual
payment characteristics of postpaid subscribers. The Group establishes a provision for impairment losses
based on its historical events and future expectations in respect of trade receivables and contract assets.
Investments are preferred to be in liquid securities. The counterparty limits are set monthly depending on
their ratings from the most credible rating agencies and the amount of their paid-in capital and/or shareholders
equity. Policies are in place to review the paid-in capital and rating of counterparties periodically to ensure
credit worthiness.
The Group signs local and international derivate agreements in order to be able to execute financial derivative
transactions with financial institutions that are believed to have sufficient credit ratings.
The Group’s policy is to provide financial guarantees only to subsidiaries and distributors. At 31 December
2023, guarantees of TL8,836,805 were outstanding (31 December 2022: TL 6,513,114).
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. At the end of the reporting period the Group held demand deposits of TL 4,215,677
(31 December 2022: TL 3,598,726) that are expected to readily generate cash inflows for managing liquidity
risk. Due to the dynamic nature of the underlying businesses, the Group Treasury maintains flexibility in
funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Group’s liquidity reserve (Note 35) and cash and cash
equivalents (Note 23) on the basis of expected cash flows. In addition, the Group’s liquidity management
policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary
to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements
and maintaining debt financing plans.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices affect the Group’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while
optimizing the return on risk. The Group uses derivatives in order to manage market risks. All such
transactions are carried at within the guidelines set by the Group Treasury.
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40
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
5.
Segment information (continued)
Turkcell Turkiye
2023
91,952,843
(782,421)
2022
77,951,747
(415,145)
Turkcell International
2022
2,673,057
(238,906)
2023
2,625,686
(151,112)
Techfin
Other
2023
4,568,674
(415,271)
2022
3,545,379
(264,840)
2023
10,161,753
(843,968)
2022
13,558,486
(3,322,932)
Intersegment
Eliminations
2023
(2,192,772)
2,192,772
2022
(4,241,823)
4,241,823
Consolidated
2023
107,116,184
-
2022
93,486,846
-
91,170,422
40,663,472
77,536,602
32,770,610
2,474,574
972,856
2,434,151
891,194
4,153,403
1,607,534
3,280,539
1,749,526
9,317,785
887,860
10,235,554
1,298,333
-
(254,608)
-
(101,932)
107,116,184
43,877,114
93,486,846
36,607,731
(920,417)
(557,550)
(6,055)
(5,003)
(81,981)
(57,339)
289
(2,086)
-
-
(1,008,164)
(621,978)
Turkcell Turkiye
2022
77,951,747
(415,145)
2021
90,008,603
(580,385)
Turkcell International
2021
2,667,171
(278,079)
2022
2,673,057
(238,906)
Techfin
Other
2022
3,545,379
(264,840)
2021
3,550,776
(202,695)
2022
13,558,486
(3,322,932)
2021
15,775,237
(2,340,984)
Intersegment
Eliminations
2022
(4,241,823)
4,241,823
2021
(3,402,143)
3,402,143
Consolidated
2022
93,486,846
-
2021
108,599,644
-
77,536,602
89,428,218
2,434,151
2,389,092
3,280,539
3,348,081
10,235,554
13,434,253
-
-
93,486,846
108,599,644
32,770,610
40,815,431
891,194
859,130
1,749,526
2,119,639
1,298,333
1,305,889
(101,932)
(156,908)
36,607,731
44,943,181
(557,550)
(803,560)
(5,003)
(8,632)
(57,339)
(31,771)
(2,086)
(3,072)
-
-
(621,978)
(847,035)
Total segment revenue
Inter-segment revenue
Revenues from
external customers
Adjusted EBITDA
IFRS 9 impairment
loss provision
Total segment revenue
Inter-segment revenue
Revenues from
external customers
Adjusted EBITDA
IFRS 9 impairment
loss provision
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Segment information
5.
In accordance with its integrated communication and technology services strategy, Group has reportable
segments which are Turkcell Turkiye, Turkcell International and Techfin. While some of these strategic
segments offer the same types of services, they are managed separately because they operate in different
geographical locations and are affected by different economic conditions.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker function is carried out by the Board of
Directors, however Board of Directors may transfer the authorities, other than recognized by the law, to the
General Manager and other directors.
Turkcell Turkiye reportable segment includes mobile, fixed telecom, digital services and digital business
services operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri A.S. (“Turkcell Superonline”),
Turkcell Satis ve Dijital Is Servisleri Hizmetleri A.S’s (“Turkcell Satis”) digital business services, Turkcell
Dijital Is Servisleri A.S. (“Turkcell Dijital”), group call center operations of Global Bilgi Pazarlama
Danismanlik ve Cagri Servisi Hizmetleri A.S. (“Turkcell Global Bilgi”), Turktell Bilisim Servisleri A.S.
(“Turktell”), Atmosware Teknoloji Egitim ve Danismanlik A.S (“Atmosware Teknoloji”), Turkcell
Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell Teknoloji”), Ultia Teknoloji Yazilim ve Uygulama
Gelistirme Ticaret A.S. (“Ultia”), Kule Hizmet ve Isletmecilik A.S. (“Global Tower”), Rehberlik Hizmetleri
Servisi A.S. (“Rehberlik”), Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”), Lifecell Dijital
Servisler ve Cozumler A.S. (“Lifecell Dijital Servisler”), Lifecell Bulut Cozumleri A.S. (“Lifecell Bulut”),
Lifecell TV Yayin ve Icerik Hizmetleri A.S. (“Lifecell TV”), Lifecell Muzik Yayin ve Iletim A.S. (“Lifecell
Muzik”) and BiP Iletisim Teknolojileri ve Dijital Servisler A.S. (“BiP A.S.”).
Turkcell International reportable segment includes telecom and digital services related operations of CJSC
Belarusian Telecommunications Network (“BeST”), Kibris Mobile Telekomunikasyon Limited Sirketi
(“Kibris Telekom”), East Asian Consortium B.V. (“Eastasia”), Lifecell Ventures Cooperatief U.A (“Lifecell
Ventures”), Beltel Telekomunikasyon Hizmetleri A.S. (“Beltel”), Lifetech LLC (“Lifetech”), Beltower LLC
(“Beltower”), Lifecell Digital Limited (“Lifecell Digital”), Yaani Digital BV (“Yaani”) and BiP Digital
Communication Technologies B.V (“BiP B.V.”).
Techfin reportable segment includes all financial services operations of Turkcell Finansman, Turkcell
Odeme, Paycell, Paycell Europe, Turkcell Sigorta and Turkcell Dijital Sigorta. The operations of these legal
entities aggregated into one reportable segment as the nature of services are similar and most of them share
similar economic characteristics.
Other reportable segment mainly comprises of non-group call center operations of Turkcell Global Bilgi,
Turkcell Enerji, Boyut Enerji, Turkcell GSYF, Turkcell Dijital Egitim Teknolojileri A.S. (“Dijital Egitim”).
W3 Labs Yeni Teknolojiler A.S. ("W3") and Turkcell Satis’s other operations.
The Board primarily uses adjusted EBITDA to assess the performance of the operating segments. Adjusted
EBITDA definition includes revenue, cost of revenue excluding depreciation and amortization, selling and
marketing expenses and administrative expenses.
Adjusted EBITDA is not a financial measure defined by IFRS as a measurement of financial performance
and may not be comparable to other similarly-titled indicators used by other companies. Reconciliation of
Adjusted EBITDA to the consolidated profit for the year is included in the accompanying notes.
270 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
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41
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
5.
Segment information (continued)
Profit for the period
Add/(Less):
Income tax expense
Finance income
Finance costs
Other income
Other expenses
Monetary (gain) loss
Depreciation and amortization
Share of loss/(gain) of equity accounted investees
Consolidated adjusted EBITDA
Geographical information
31 December
2023
10,562,572
31 December
2022
6,036,486
31 December
2021
6,416,898
(4,675,891)
(12,663,682)
19,931,617
(882,782)
5,648,334
(3,816,872)
31,298,993
(1,525,175)
43,877,114
(2,785,265)
(3,957,684)
11,949,156
(348,611)
1,406,976
(7,767,102)
32,595,996
(522,221)
36,607,731
900,339
(11,527,996)
21,308,035
(356,404)
2,010,123
(4,804,527)
31,188,016
(191,303)
44,943,181
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
6.
Revenue
Telecommunication
services
Equipment revenues
Revenue from
financial services
Other
Total
Telecommunication
services
Equipment revenues
Revenue from
financial services
Other
Total
Turkcell Turkiye
2023
Turkcell International
2022
2023
2022
Techfin
2023
2022
Other
2023
2022
Intersegment
Eliminations
2023
2022
Consolidated
2023
2022
86,033,365
4,981,916
73,395,928
4,119,171
2,285,955
183,095
2,276,114
177,001
-
-
-
-
-
6,315,781
-
6,886,804
(200,732)
(86,055)
(171,130)
(38,758)
88,118,588
11,394,737
75,500,912
11,144,218
-
937,562
91,952,843
-
436,648
77,951,747
-
156,636
2,625,686
-
219,942
2,673,057
4,568,674
-
4,568,674
3,545,379
-
3,545,379
-
3,845,972
10,161,753
-
6,671,682
13,558,486
(415,271)
(1,490,714)
(2,192,772)
(264,840)
(3,767,095)
(4,241,823)
4,153,403
3,449,456
107,116,184
3,280,539
3,561,177
93,486,846
Turkcell Turkiye
2022
Turkcell International
2021
2022
2021
Techfin
2022
2021
Other
2022
2021
Intersegment
Eliminations
2022
2021
Consolidated
2022
2021
73,395,928
4,119,171
85,301,533
4,111,543
2,276,114
177,001
2,101,368
299,230
-
-
-
-
-
6,886,804
-
9,496,810
(171,130)
(38,758)
(210,861)
(164,771)
75,500,912
11,144,218
87,192,040
13,742,812
-
436,648
77,951,747
-
595,527
90,008,603
-
219,942
2,673,057
-
266,573
2,667,171
3,545,379
-
3,545,379
3,550,776
-
3,550,776
-
6,671,682
13,558,486
-
6,278,427
15,775,237
(264,840)
(3,767,095)
(4,241,823)
(202,715)
(2,823,796)
(3,402,143)
3,280,539
3,561,177
93,486,846
3,348,061
4,316,731
108,599,644
Revenue from financial services comprise of interest income generated from consumer financing activities, The Group has interest income amounting to TL
2,023,862, TL 1,546,463 and TL 1,611,840, for the years ended 31 December 2023, 2022 and 2021, respectively.
In presenting the information based on geographical segments, segment revenue is based on the geographical
location of operations and segment assets are based on the geographical location of the assets.
44
Revenues
Turkiye
Belarus
Turkish Republic of Northern Cyprus
Netherlands
Non-current assets
Turkiye
Ukraine
Belarus
Turkish Republic of Northern Cyprus
Unallocated non-current assets
31 December
2023
31 December
2022
31 December
2021
104,641,610
1,384,585
1,058,155
31,834
107,116,184
140,298,871
-
746,265
3,047,815
444,146
144,537,097
91,052,696
1,540,091
855,064
38,995
93,486,846
141,507,693
12,651,476
1,229,643
1,626,546
661,238
157,676,596
106,210,552
1,375,795
959,667
53,630
108,599,644
145,592,071
21,001,550
1,334,989
1,193,525
152,557
169,274,692
272 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 273
43
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Revenue (continued)
6.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
31 December 2023
Techfin
Other
Intersegment
eliminations
Consolidated
7. Other income and expense
Recognized in the statement of profit or loss:
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
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
-
-
-
-
-
937,562
376
937,186
91,952,843
5,925,327
86,027,516
Turkcell
Turkiye
73,395,928
631,113
72,764,815
4,119,171
3,677,042
442,129
-
-
-
-
-
436,648
11,844
424,804
77,951,747
4,319,999
73,631,748
Turkcell
Turkiye
85,301,533
863,151
84,438,382
4,111,543
3,332,725
778,818
-
-
-
-
-
-
595,527
18,547
576,980
90,008,603
4,214,423
85,794,180
Turkcell
Turkiye
86,033,365
1,456,376
84,576,989
4,981,916
4,468,575
513,341
Turkcell
International
2,285,955
66,933
2,219,022
183,095
183,095
-
-
-
-
-
-
-
-
-
-
6,315,781
6,315,781
-
-
-
-
-
-
-
3,845,972
116,102
3,729,870
10,161,753
6,431,883
3,729,870
(200,732)
(105)
(200,627)
(86,055)
(86,055)
-
(415,271)
(376,108)
(39,163)
-
-
-
(1,490,714)
(52)
(1,490,662)
(2,192,772)
(462,320)
(1,730,452)
88,118,588
1,523,204
86,595,384
11,394,737
10,881,396
513,341
4,153,403
1,848,418
2,304,985
-
-
-
3,449,456
147,603
3,301,853
107,116,184
14,400,621
92,715,563
-
-
-
-
-
-
156,636
31,177
125,459
2,625,686
281,205
2,344,481
4,568,674
2,224,526
2,344,148
-
-
-
-
-
-
4,568,674
2,224,526
2,344,148
31 December 2022
Techfin
Other
Intersegment
eliminations
Consolidated
Turkcell
International
2,276,114
78,495
2,197,619
177,001
177,001
-
-
-
-
-
-
219,942
6,718
213,224
2,673,057
262,214
2,410,843
Turkcell
International
2,101,368
70,605
2,030,763
299,230
299,230
-
-
-
-
-
-
-
-
-
-
6,886,804
6,886,804
-
3,545,379
1,621,746
1,923,633
-
-
-
-
-
-
3,545,379
1,621,746
1,923,633
-
-
-
-
-
6,671,682
66,890
6,604,792
13,558,486
6,953,694
6,604,792
31 December 2021
Techfin
Other
-
-
-
-
-
-
-
-
-
9,496,810
9,496,810
-
-
-
-
-
-
266,573
950
265,623
2,667,171
370,785
2,296,386
3,550,776
1,389,624
2,161,152
-
-
-
-
-
-
3,550,776
1,389,624
2,161,152
45
-
-
-
-
-
6,278,427
151,371
6,127,056
15,775,237
9,648,181
6,127,056
(171,130)
(229)
(170,901)
(38,758)
(38,758)
-
(264,840)
(264,832)
(8)
-
-
(3,767,095)
(9,103)
(3,757,992)
(4,241,823)
(312,922)
(3,928,901)
75,500,912
709,379
74,791,533
11,144,218
10,702,089
442,129
3,280,539
1,356,914
1,923,625
-
-
-
3,561,177
76,349
3,484,828
93,486,846
12,844,731
80,642,115
Intersegment
eliminations
Consolidated
(210,861)
(3)
(210,858)
(164,771)
(164,771)
-
(202,715)
(202,715)
-
-
-
(2,823,796)
(9,939)
(2,813,857)
(3,402,143)
(377,428)
(3,024,715)
87,192,040
933,753
86,258,287
13,742,812
12,963,994
778,818
3,348,061
1,186,909
2,161,152
-
-
-
4,316,731
160,929
4,155,802
108,599,644
15,245,585
93,354,059
Depositary reimbursement
Insurance compensation
Income from equipment donations
Rent income
Non-interest income from banks
Other
Other income
Revaluation tax expense (*)
Donation expenses
Litigation expenses
Loss on modification of lease contract
Loss on sale of fixed assets
Restructuring cost
Other
Other expense
31 December
2023
108,861
273,843
205,045
26,507
891
267,633
882,782
-
(3,919,569)
(738,697)
(143,842)
(15,981)
(462,741)
(367,506)
(5,648,334)
31 December
2022
104,532
-
-
38,740
17,194
188,145
348,611
(415,341)
(267,861)
(156,018)
(172,408)
(35,502)
(12,116)
(347,730)
(1,406,976)
31 December
2021
139,732
-
-
37,350
28,062
151,260
356,404
-
(278,463)
(1,124,058)
(147,959)
98,440
-
(558,084)
(2,010,123)
(*) It consists of 2% tax expense paid over the value increase resulting from the revaluation of the properties and depreciable
economic assets in the statutory books.
8. Employee benefit expenses
Wages and salaries (*)
Defined benefit plans (**)
Defined contribution plans
31 December
2023
13,836,698
306,677
75,500
14,218,875
31 December
2022
9,691,385
138,841
105,964
9,936,190
31 December
2021
10,477,300
163,294
109,411
10,750,005
(*) Wages and salaries include compulsory social security contributions, bonuses and share based payments.
(**) Remeasurements of defined benefit plans for the years ended 31 December 2023, 2022 and 2021 amounting to
TL 149,757, TL 1,824,873 and TL 541,628 respectively are reflected in other comprehensive income.
Employee benefit expenses are recognized in cost of revenue, selling and marketing expenses and
administrative expenses.
274 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 275
46
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
Finance income and costs
9.
Recognized in the statement of profit or loss:
Interest income
Income from financial assetes carried at fair
value
Cash flow hedges – reclassified to profit or loss
Net fair value gains on derivative financial
instruments and interest
Other
Finance income
Net foreign exchange losses
Net interest expenses for financial assets and
liabilities measured at amortized cost
Net fair value losses on derivative financial
instruments and interest
Cash flow hedges – reclassified to profit or loss
Other
Finance costs
Monetary gain (loss)
Net finance costs
31 December
31 December
2023
3,118,511
2022
2,126,478
31 December
2021
2,211,740
4,604,960
3,287,562
1,144,406
508,243
12,663,682
1,738,728
-
-
92,478
3,957,684
-
5,831,713
3,361,847
122,696
11,527,996
(14,016,423)
(7,155,055)
(18,399,847)
(5,837,283)
(4,269,930)
(2,817,322)
-
-
(77,911)
(19,931,617)
(6,580,717)
6,253,679
(197,133)
(11,949,156)
-
-
(90,866)
(21,308,035)
3,816,872
7,767,102
4,804,527
(3,451,063)
(224,370)
(4,975,512)
Net foreign exchange losses mainly include foreign exchange losses on borrowings, bonds issued and foreign
exchange gains on cash and cash equivalents.
Interest income and expense on financial assets measured at amortized cost are shown as netted of on
consolidated statement of profit or loss. The Company has gross interest income and expense on financial
assets at amortized cost amounting to TL 773,611, TL (6,610,894), TL 1,224,264, TL (5,494,195), and TL
1,294,283, TL (4,111,605) for the years ended 31 December 2023, 2022 and 2021, respectively.
Foreign exchange gains and losses are shown as netted of on consolidated statement of profit or loss. The
company has gross foreign exchange gains and losses amounting to TL 21,087,243, TL (35,103,667),
TL 15,782,024, TL (22,937,079) and TL 28,279,084, TL (46,678,932) for the years ended 31 December
2023, 2022 and 2021, respectively.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
10.
Income tax expense
Current income tax expense
Deferred income tax income
Total income tax income/ (expense)
31 December
31 December
2023
2022
(683,059)
5,358,950
4,675,891
(864,540)
3,649,805
2,785,265
31 December
2021
(1,931,842)
1,031,503
(900,339)
Income tax relating to each component of other comprehensive income
31 December 2023
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 defined benefit plans
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 defined benefit plans
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 defined benefit plans
Before tax
2,860,231
1,573,196
(389,364)
149,602
(2,342,679)
(149,757)
1,701,229
Before tax
(748,669)
2,286,823
(2,170,669)
(121,999)
(520,930)
(1,824,873)
(3,100,317)
Before tax
7,164,377
987,969
(3,879,104)
(192,475)
(3,886,535)
(541,628)
(347,396)
Tax (expense)
/ benefit
(491,059)
25,502
274,034
(5,514)
1,181,457
152,178
1,136,598
Tax (expense)
/ benefit
(887,185)
(89,836)
434,134
35,988
440,135
363,876
297,112
Tax (expense)
/ benefit
(2,330,871)
(86,967)
775,821
38,164
843,616
108,418
(651,819)
Net of tax
2,369,172
1,598,698
(115,330)
144,088
(1,161,222)
2,421
2,837,827
Net of tax
(1,635,854)
2,196,987
(1,736,535)
(86,011)
(80,795)
(1,460,997)
(2,803,205)
Net of tax
4,833,506
901,002
(3,103,283)
(154,311)
(3,042,919)
(433,210)
(999,215)
276 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
47
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 277
48
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
10.
Income tax expense (continued)
Reconciliation of income tax expense
Profit from continuing operations before income tax
expense
Profit before income tax expense
Tax at the Turkiye’s tax rate
Difference in overseas tax rates
Effect of exemptions (*)
Effect of permanent differences
Change in unrecognized deferred tax assets
Adjustments for current tax of prior years
Effect of increase in corporate tax rate in Turkiye
Tax effect of investment in associate and joint venture
Tax effect of Law No. 7440 (**)
Inflation adjustments
Other
Total income tax expense
31 December
31 December
2023
2022
31 December
2021
5,886,681
5,886,681
(1,471,670)
156,824
1,973,510
(618,073)
308,452
83,383
2,723,722
(324,593)
(282,582)
2,123,280
3,638
4,675,891
3,251,221
3,251,221
(747,781)
146,513
1,242,440
(438,771)
(333,765)
15,957
388,104
(78,213)
-
2,593,980
(3,199)
2,785,265
7,317,237
7,317,237
(1,829,309)
(10,798)
595,597
(1,327,320)
(17,970)
(13,845)
709,471
(28,729)
-
1,016,811
5,753
(900,339)
(*) Effect of exemptions mainly consist of R&D discounts.
(**) In accordance with the Law No. 7440 on the “Restructuring of Certain Receivables and Amending Certain Laws” published in
the Official Gazette on 12 March 2023, it has been decided that an additional tax of 10% should be calculated over the deduction
amounts (included in 2022 tax returns) and tax bases subject to reduced corporate tax.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
10.
Income tax expense (continued)
An amendment to Turkey's Corporate Tax Law (No. 5520) was submitted on July 5, 2023, and published in
the Official Gazette on July 15, 2023. According to this; the corporate tax rate has been increased from 20%
to 25% for companies, 25% to 30% for banks, and companies within the scope of Law No. 6361, electronic
payment and money institutions, authorized foreign exchange institutions, asset management companies,
capital market institutions, insurance and reinsurance companies and pension companies and starting from
the declarations that will be submitted as of 1 October 2023.
With the publication of the Law No. 7394 in the Official Gazette dated 15 April 2022, the corporate tax rate
has been permanently increased to %23, and this change was valid between 1 July 2022 and year end.
In accordance with the "General Communiqué on Tax Procedure Law No: 555" published in the Official
Gazette dated 30 December 2023 and numbered 32415 and the repeated article 298 of the Tax Procedure
Law No: 213, it is declared that the financial statements of the entities operating in Turkey for the 2023
accounting period are subject to inflation adjustment. The inflation adjusted financial statements will
constitute an opening balance sheet base in the tax returns to be prepared as of 1 January 2024 and opening
inflation effects will not be taken into consideration in the calculation of the period tax for 2023.
The tax effects arising from the inflation adjustment calculated as per Tax Procedural Law has been included
in the deferred tax calculation as of 31 December 2023 and a net deferred tax asset at the amount of TL
13,726,600 has been recognized as of 31 December 2023.
In Turkiye, 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.
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. On
the other hand, dividend payments made to Turkish resident companies are not subject to withholding tax.
Dividend income of Turkish taxpayers received from other Turkish taxpayers is exempted from corporate
tax. However, dividends received from participation shares and stocks of fund and investment partnerships
cannot utilize from this exemption.
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.
278 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
49
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 279
50
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
11. Expenses by nature
Breakdown of expenses by nature for the years ended 31 December 2023, 2022 and 2021 is as follows:
Cost of revenue:
Depreciation and amortization (*)
Cost of goods sold
Share of Turkish Treasury
Employee benefit expenses
Interconnection and termination expenses
Energy expenses
Radio expenses
Frequency expenses
Transmission expenses
Roaming expenses
Universal service fund
Cost of revenue from financial services (**)
Internet expenses
Other
31 December
31 December
2023
(31,298,993)
(10,695,191)
(9,290,270)
(8,447,593)
(3,955,527)
(3,676,829)
(1,368,805)
(3,424,766)
(1,465,349)
(1,134,820)
(1,242,404)
(1,850,910)
(1,186,248)
(5,380,330)
(84,418,035)
2022
(32,595,996)
(10,782,150)
(7,790,546)
(6,005,316)
(5,191,849)
(4,654,112)
(924,245)
(2,855,179)
(1,535,063)
(1,097,382)
(1,085,290)
(1,065,549)
(1,252,704)
(4,845,548)
(81,680,929)
31 December
2021
(31,188,016)
(13,965,878)
(9,322,838)
(6,613,847)
(7,236,584)
(3,001,766)
(67,103)
(3,417,467)
(1,659,329)
(1,023,156)
(1,283,039)
(732,206)
(1,140,267)
(5,486,571)
(86,138,067)
(*) As at 31 December 2023, depreciation and amortization expenses include depreciation and amortization expenses related to the
financial services amounting to TL 326,869 (31 December 2022: TL 254,701 and 31 December 2021: TL 270,680).
(**) As at 31 December 2023, cost of revenue from financial services includes employee benefit expenses related to the financial
services amounting to TL 186,363 (31 December 2022: TL 132,286 and 31 December 2021: TL 103,546).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise
stated.)
11. Expense by nature (continued)
Selling and marketing expenses:
Employee benefit expenses
Marketing expenses
Selling expenses
Other
Administrative expenses:
Employee benefit expenses
Consultancy expenses
Service expenses
Maintenance and repair expenses
Collection expenses
Travel and entertainment expenses
Utility expenses
Other
31 December
31 December
2023
(3,139,523)
(1,969,736)
(306,716)
(266,371)
(5,682,346)
2022
(2,109,509)
(1,799,885)
(363,264)
(320,135)
(4,592,793)
31 December
31 December
2023
(2,445,396)
(206,083)
(157,661)
(71,752)
(128,861)
(83,402)
(8,006)
(328,357)
(3,429,518)
2022
(1,689,078)
(227,975)
(137,727)
(87,404)
(90,042)
(62,856)
(39,407)
(244,922)
(2,579,411)
31 December
2021
(2,282,240)
(2,164,820)
(444,519)
(309,455)
(5,201,034)
31 December
2021
(1,750,372)
(286,278)
(127,040)
(88,217)
(123,873)
(50,361)
(23,611)
(208,591)
(2,658,343)
Net impairment losses on financial and contract assets:
Net impairment losses on financial and contract assets
31 December
31 December
2023
(1,008,164)
(1,008,164)
2022
(621,978)
(621,978)
31 December
2021
(847,035)
(847,035)
280 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
51
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 281
52
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
12. Property, plant and equipment
13. Intangible assets
Cost
Network infrastructure (All operational)
Land and buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant
Construction in progress
Total
Accumulated depreciation
Network infrastructure (All operational)
Land and buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant
Total
Balance at 1
January 2023
188,873,033
10,002,000
11,305,347
173,393
3,741,428
339,138
3,820,328
218,254,667
130,110,166
1,981,910
11,097,747
161,429
3,384,838
24,181
146,760,271
Additions
5,407,763
1,505,727
1,173,745
30,696
70,672
-
7,215,635
15,404,238
9,081,063
678,931
2,117,619
31,412
36,514
17,093
11,962,632
Disposals
(2,745,510)
(22,560)
(178,394)
(8,342)
(546)
-
(92,076)
(3,047,428)
Transfers
7,440,574
52,430
322,061
204
(3)
-
(8,338,415)
(523,149)
(2,719,073)
(8,244)
(127,038)
(7,915)
-
-
(2,862,270)
-
-
-
-
-
-
-
Assets held for
sale
(14,934,868)
(99,423)
(172,585)
(2,474)
(25,188)
-
(366,813)
(15,601,351)
(9,582,040)
(70,158)
(126,994)
(2,057)
(22,211)
-
(9,803,460)
Impairmen
t expenses/
(reversals)
-
-
-
-
-
-
874
874
(23,686)
(219)
(14)
-
-
-
(23,919)
Transfer to
investment
property
-
141,411
-
-
-
-
-
141,411
Effects of
movements in
exchange rates
(2,210,749)
(113,337)
(480,268)
(5,021)
(2,133)
-
198,860
(2,612,648)
Balance at 31
December 2023
181,830,243
11,466,248
11,969,906
188,456
3,784,230
339,138
2,438,393
212,016,614
-
113,520
-
-
-
-
113,520
(87,384)
163,255
(825,232)
(4,811)
(1,471)
(24,763)
(780,406)
126,779,046
2,858,995
12,136,088
178,058
3,397,670
16,511
145,366,368
3,441,606
71,494,396
TURKCELL ILETISIM HIZMETLERI AS
Net book value
66,650,246
Depreciation expenses for the years ended 31 December 2023, 2022 amounting to TL 11,937,839, TL 15,305,789 respectively include impairment losses and 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 2023 are TL 24,793 and are recognized under depreciation
expenses (31 December 2022: TL 305,900)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
(5,797,891)
(1,832,242)
(185,158)
(523,149)
24,793
27,891
12. Property, plant and equipment (continued)
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
Total
Accumulated depreciation
Network infrastructure (All operational)
Land and buildings
Equipment, fixtures and fittings
Motor vehicles
Leasehold improvements
Electricity production power plant (Note 3)
Total
Balance at 1
January 2022
188,204,239
10,729,703
10,962,783
182,643
3,749,640
342,283
3,421,878
217,593,169
124,789,832
2,543,152
10,429,522
159,896
3,405,584
6,394
141,334,380
Additions
6,055,634
554,894
1,178,734
-
48,300
-
7,775,969
15,613,531
12,829,570
381,603
1,729,653
11,534
30,302
17,227
14,999,889
53
Disposals
(3,210,322)
(3,045)
(510,040)
(2,150)
(37,712)
-
(60,327)
(3,823,596)
(2,317,913)
-
(372,532)
(2,154)
(36,420)
-
(2,729,019)
Net book value
76,258,789
613,642
(1,094,577)
Transfers
7,011,308
3,490
115,030
938
1,064
-
(7,131,830)
-
-
-
-
-
-
-
-
-
Impairment
expenses/
(reversals)
-
-
-
-
-
-
11,621
11,621
303,986
348
13,146
-
41
-
317,521
Transfer to
investment
property
-
(849,429)
-
-
-
-
-
(849,429)
-
(731,185)
-
-
-
-
(731,185)
Effects of
movements in
exchange rates
(9,187,826)
(433,613)
(441,160)
(8,038)
(19,864)
(3,145)
(196,983)
(10,290,629)
Balance at 31
December 2022
188,873,033
10,002,000
11,305,347
173,393
3,741,428
339,138
3,820,328
218,254,667
(5,495,309)
(212,008)
(702,042)
(7,847)
(14,669)
560
(6,431,315)
130,110,166
1,981,910
11,097,747
161,429
3,384,838
24,181
146,760,271
(305,900)
(118,244)
(3,859,314)
71,494,396
Cost
Telecommunication licenses
Computer software
Transmission line software
Indefeasible right of usage
Brand name
Customer base
Goodwill
Subscriber acquisition cost
Electricity production license
Others
Construction in progress
Total
Accumulated amortization
Telecommunication licenses
Computer software
Transmission line software
Indefeasible right of usage
Brand name
Customer base
Disposals
Transfers
Impairment
expenses/
(reversals)
Effects of
movements in
exchange rates
Balance at 31
December 2023
Balance at 1
January 2023
70,152,194
95,767,623
1,030,729
1,012,694
11,292
48,967
419,754
Additions
3,613,018
7,908,723
972
2,943
53
-
-
(59,797)
(173,279)
(3,688)
-
(49)
-
-
34,103,021
5,031,195
(125,098)
709,869
1,118,057
75,914
-
164,935
371,418
204,450,114
17,093,257
47,255,448
72,926,450
1,015,248
579,827
16,512
35,051
4,275,416
6,425,747
26,303
63,302
65
2,005
-
10,333
(144,140)
(495,718)
(4,766)
(135,165)
(3,688)
-
(21)
-
Asset held
for Sale
(5,149,479)
(1,359,776)
-
-
(614)
-
-
(575,070)
-
(161)
(869)
181,814
453,280
-
-
188
-
-
-
-
(23,060)
(89,073)
523,149
-
-
-
-
-
-
(7,176)
-
-
-
-
(7,085,969)
(7,176)
-
-
-
-
-
-
-
(3,194,034)
(135,290)
9,931
(501)
(7,380)
(9,596)
(387,076)
3
15,716
-
-
-
-
-
(430,834)
1,087,039
25,231
-
(102)
(9,872)
(4,649)
84,049
(41,875)
(11,527)
37,781
735,241
(244,068)
980,719
5,381
(454)
(6,401)
(8,714)
68,306,916
103,683,610
1,053,244
1,015,637
10,768
39,095
407,929
38,518,097
667,994
1,258,577
251,031
215,212,898
48,087,999
80,078,177
1,053,175
642,174
2,775
18,746
(267,239)
25,971,035
Subscriber acquisition cost
20,368,047
6,382,401
(125,098)
9,938
Electricity production license
TURKCELL ILETISIM HIZMETLERI AS
Others
Total
(269,559)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Net book value
(226,159)
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
142,951,379
156,701,501
(3,786,164)
(3,299,805)
61,498,735
58,511,397
17,336,215
(242,958)
(23,372)
(18,128)
(52,694)
847,671
453,434
281,807
744,858
523,149
130,809
(9,524)
12,338
16,196
30,167
(821)
(251)
477
-
-
-
-
-
13. Intangible assets (continued)
Cost
Telecommunication licenses
Computer software
Transmission line software
Indefeasible right of usage
Brand name
Customer base
Goodwill
Subscriber acquisition cost
Electricity production license (Note 3)
Others
Construction in progress
Total
Accumulated amortization
Telecommunication licenses
Computer software
Transmission line software
Indefeasible right of usage
Brand name
Customer base
Subscriber acquisition cost
Electricity production license (Note 3)
Others
Total
Balance at 1
January 2022
73,385,234
89,532,740
988,369
1,012,694
13,996
65,107
427,353
29,629,666
778,332
935,930
127,424
196,896,845
44,068,178
66,868,545
1,001,840
522,256
27,544
49,300
15,840,829
9,154
591,074
128,978,720
Additions
1,664
5,779,710
1,112
-
611
-
-
4,875,036
-
200,535
294,093
11,152,761
4,523,381
5,737,378
31,887
58,315
117
-
5,010,502
-
156,050
15,517,630
55
Disposals
(57,933)
(280,355)
-
-
(545)
-
-
(111,624)
-
(733)
(590)
(451,780)
(3,162)
(272,867)
-
-
(394)
-
(111,624)
-
(733)
(388,780)
Net book value
67,918,125
(4,364,869)
(63,000)
Transfers
1,504
340,680
-
-
124
-
-
-
-
3
(342,311)
-
-
-
-
-
-
-
-
-
-
-
-
Impairment
expenses/
(reversals)
-
-
-
-
-
-
-
-
-
-
-
-
506
101,269
(16,604)
-
-
-
-
-
545
85,716
Effects of movements
in exchange rates
(3,178,275)
394,848
41,248
-
(2,894)
(16,140)
(7,599)
(290,057)
(68,463)
(17,678)
(2,702)
(3,147,712)
(1,333,455)
492,125
(1,875)
(744)
(10,755)
(14,249)
(371,660)
784
(2,078)
(1,241,907)
Balance at 31
December 2022
70,152,194
95,767,623
1,030,729
1,012,694
11,292
48,967
419,754
34,103,021
709,869
1,118,057
75,914
204,450,114
47,255,448
72,926,450
1,015,248
579,827
16,512
35,051
20,368,047
9,938
744,858
142,951,379
(85,716)
(1,905,805)
61,498,735
54
56
282 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 283
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
13.
Intangible assets (continued)
15.
Investment properties
to
Amortization expenses for
TL 17,352,411, TL 15,603,346, respectively include impairment losses and are recognized in cost of
revenue. Impairment losses on intangible assets for the years ended 31 December 2023, 2022 and 2021
are TL 23,372, TL 85,716 and none, respectively and are recognized in amortization expenses.
the years ended 31 December 2023 and 2022 amounting
Computer software includes capitalized software development costs that meet the definition of an
intangible asset. The amount of capitalized development costs is TL 1,316,201 for the year ended
31 December 2023 (31 December 2022: TL 900,089). Research and development expenses for the years
ended 31 December 2023, 2022 amounting to TL 132,635 and TL 129,078, respectively are recognized
in cost of revenue.
Turkcell
The carrying amounts of 2G, 3G and 4.5G licenses are TL 3,221,124, TL 2,268,481 and TL 14,195,189,
respectively (31 December 2022: TL 174,274, TL 2,722,179 and TL 17,038,518, respectively).
14.
Impairment of non-financial 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-generating unit (“CGU”) to which the asset belongs exceeds its carrying amount,
no impairment loss is recognized.
As of 31 December 2023, no indication of impairment was found in any CGU of the Group and no
impairment test was performed. 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.
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.
Cost
Opening balance
Disposal
Transfer from property, plant and equipment
Closing balance
Accumulated depreciation
Opening balance
Transfer from property, plant and equipment
Depreciation and impairment charges during the year
Disposal
Closing balance
31 December
2023
31 December
2022
1,329,958
-
(141,411)
1,188,547
1,150,873
(113,520)
8,829
-
1,046,182
737,031
(256,502)
849,429
1,329,958
555,938
731,185
34,428
(170,678)
1,150,873
Net book value
142,365
179,085
Depreciation expenses amounting 8.829 TL for the year ended 31 December 2023 (31 December 2022:
34,428) TL) are recognized under cost of revenue.
Determination of the fair values of the Group’s investment properties.
The Group engages qualified external experts, authorized by the Capital Markets Board of Turkiye, to
perform the valuation of investment properties. Management works closely with the qualified external
experts to establish the appropriate valuation techniques and inputs to the model. The fair values of these
investment properties were determined using a variety of valuation methods: income capitalization
approach and market approach. In estimating the fair values of the properties, the highest and best use of
the property is its current use.
Rent income from investment properties during the year ended 31 December 2023 is TL 24,066
(31 December 2022: TL 24,205). There are no direct operating expenses for investment properties during
the year ended 31 December 2023 (31 December 2022: None).
284 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 285
57
58
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
15.
Investment properties (continued)
The Group’s investment properties and their fair values at 31 December 2023 and 2022 are as follows:
31 December 2023
Level 1
Level 2
Level 3 Valuation Method
Investment properties in Gebze free zone
-
-
164,000 Discounted cash flow
Investment properties in Ankara
-
96,700
-
Market approach
Investment properties in Adana
-
24,500
-
Market approach
Investment properties in Aydın
-
16,000
-
Market approach
Total
-
137,200
164,000
31 December 2022
Level 1
Level 2
Level 3 Valuation Method
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
16. Right-of-use assets
Closing balances of right-of-use assets as of 31 December 2023 and 31 December 2022 and depreciation and amortization expenses for the years ended
31 December 2023 and 31 December 2022 are as follows:
Balance at 1 January 2023
Depreciation and amortization
charge for the year
Balance at 31 December
2023
Balance at 1 January 2022
Depreciation and amortization
charge for the year
Balance at 31 December
2022
Building
1,141,005
Tangible
Network
equipment
226,757
Vehicles
300,524
Other
336,252
Tangible
Total
6,647,366
Right of
way
360,474
Intangible
License
1,046,465
Intangible
Total
1,406,939
Total
8,054,305
(314,369)
(1,007,606)
(178,464)
(277,450)
(3,910,102)
(79,859)
(169,508)
(249,367)
(4,159,469)
Site Rent
4,642,828
(2,132,213)
3,865,774
1,273,779
205,097
144,619
224,488
5,713,757
421,586
749
422,335
6,136,092
Site Rent
5,545,497
(2,487,303)
Building
1,150,710
Tangible
Network
equipment
907,565
Vehicles
499,852
Other
378,787
Tangible
Total
8,482,411
Right of
way
167,881
Intangible
License
1,709,644
Intangible
Total
1,877,525
Total
10,359,936
(276,268)
(1,081,663)
(187,731)
(327,661)
(4,360,626)
(86,992)
(195,442)
(282,434)
(4,643,060)
4,642,828
1,141,005
226,757
300,524
336,252
6,647,366
360,474
1,046,465
1,406,939
8,054,305
As at 31 December 2023, the Company has additions to right-of-use assets amounting to TL 3,990,614 (31 December 2022: TL 3,814,556) and interest expense on
lease liabilities amounting to TL 831,599 (31 December 2022: TL 911,081). Depreciation and amortization expenses amounting to TL 4,159,469 (31 December
2022: TL 4,643,060) are recognized in cost of revenues. As at 31 December 2023, a right of use assets amounting to 1,327,438 TL has been classified as assets held
for sale. (Note 41)
Investment properties in Gebze free zone
-
-
162,895 Discounted cash flow
60
Investment properties in Ankara
-
96,392
-
Market approach
Investment properties in Adana
-
21,420
-
Market approach
Investment properties in Istanbul
-
10,710
-
Market approach
Investment properties in Aydın
-
14,253
-
Market approach
Total
-
142,775
162,895
Significant unobservable inputs and sensitivity of fair values of respective investment properties are as
follows:
In the “income capitalization” approach, a significant increase/(decrease) in rentals will cause a significant
increase/(decrease) in the fair value. In addition, a slight decrease/(increase) in risk premium and discount
rate which are calculated by considering current market conditions will cause a significant
increase/(decrease) in the fair value.
In the “market approach”, a significant increase/(decrease) in the market value of any properties which
are located in similar areas with similar conditions will cause a significant increase/(decrease) in the fair
value.
286 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 287
59
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
17. Other assets
Other non-current assets
Advances given for property, plant and equipment
Deposits and guarantees given
Prepaid expenses
VAT receivable
Others
Other current assets
VAT receivable
Prepaid expenses
Prepaid taxes
Blocked deposits
Receivables from the Ministry of Transport and Infrastructure of Turkiye
Advances given to suppliers
Receivables from tax office
Others
31 December
2023
3,377,893
599,170
373,192
80,015
154
4,430,424
31 December
2023
1,230,366
1,070,710
393,101
784,789
75,895
100,233
116,912
103,767
3,875,773
31 December
2022
4,166,670
616,999
441,306
83,484
59,711
5,368,170
31 December
2022
964,020
753,825
736,357
267,909
226,948
185,518
3,137
52,928
3,190,642
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
18. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities
Deferred tax assets and liabilities at 31 December 2023 and 2022 are attributable to the following:
Property, plant and equipment and
intangible assets
Derivative instruments
Reserve for defined benefit plans and
provisions
Tax losses carried forward
Tax allowances
Other assets and liabilities (*)
Deferred tax assets/(liabilities)
Offsetting
Net deferred tax assets/(liabilities)
Assets
Liabilities
Net
2023
2022
2023
2022
2023
2022
1,352,654
1,081,120
(7,085,009)
(12,513,875)
(5,732,355)
(11,432,755)
38,805
49,808
(617,192)
(902,064)
(578,387)
(852,256)
1,413,779
1,638,003
750,939
3,812,018
577,944
159,793
(29,350)
(12,763)
-
-
1,384,429
1,638,003
-
(1,089)
577,944
738,176
3,812,018
158,704
1,718,830
1,713,733
(165,879)
(396,290)
1,552,951
1,317,443
6,740,015
7,567,411
(7,897,430)
(13,826,081)
(1,157,415)
(6,258,670)
(5,611,266)
(4,834,998)
5,611,266
4,834,998
-
-
1,128,749
2,732,413
(2,286,164)
(8,991,083)
(1,157,415)
(6,258,670)
(*) Mainly comprises of loans, bonds, prepaid expenses and lease liabilities’ deferred tax effects.
Movement in deferred tax assets/ (liabilities) for the years ended 31 December 2023 and 2022 were as
follows:
Opening balance, net
Income statement charge
Tax charge relating to components of other comprehensive income
Transferred to assets held for sale (Note 41)
Exchange differences
Closing balance, net
2023
(6,258,670)
5,358,950
1,136,598
(1,315,876)
(78,417)
(1,157,415)
2022
(9,005,440)
3.649.805
297,112
-
(1.200.147)
(6,258,670)
The Group did not recognize deferred income tax assets of TL 8,533,187 (31 December 2022: TL
11,979,388) in respect of tax losses amounting to TL 1,815,562 (31 December 2022: TL 2,304,900) that can
be carried forward against future taxable income. The unused tax losses were incurred mainly by BeST.
Unused tax losses will expire at the following dates:
Expiration Date
2024
2025
2026
2027
2028
2030
2031
Indefinite
Total
Amount
1,120,896
3,893,414
153,032
2,181,097
595,424
247,881
308,009
33,434
8,533,187
288 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 289
61
62
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
19. Trade receivables
Receivables from subscribers
Undue assigned contracted receivables
Accounts and notes receivable
31 December 2023
6,950,428
624,799
3,350,418
10,925,645
31 December
2022
6,422,491
856,167
3,703,559
10,982,217
Trade receivables are shown net of provision for impairment amounting to TL 557,641 as at
31 December 2023 (31 December 2022: TL 1,021,775). Movements in provision for impairment of trade
receivables and due from related parties are disclosed in Note 35. The accounts and notes receivable
represent receivables from distributors and roaming receivables. The Group’s exposure to currency risk
and credit risk arising from trade receivables are disclosed in Note 35.
Letters of guarantee received with respect to the accounts and notes receivable amounted to
TL 1,027,834 and TL 729,153 at 31 December 2023 and 2022, respectively.
The undue assigned contracted receivables are the remaining portion of the assigned receivables from the
distributors related to the handset campaigns which will be collected from subscribers by the Company
in instalments. When the monthly instalment is billed to the subscriber, that portion is transferred to
“Receivables from subscribers”. The Company measures the undue assigned contracted receivables at
amortized cost, bears the credit risk and recognizes interest income throughout the contract period.
The undue assigned contracted receivables related to handset campaigns, which will be billed after one
year amounted to TL 233,429 (31 December 2022: TL 327,285) is presented under non-current trade
receivable amounted to TL 325,862 (31 December 2022: TL 492,274).
20. Receivables from financial services
Non-current receivables from financial services
Current receivables from financial services
31 December
2023
593,550
5,842,112
6,435,662
31 December
2022
469,830
5,399,259
5,869,089
Movements in provision for impairment of receivables from financial services are disclosed in Note 35.
The Group and its distributors have offered handset campaigns where subscribers can buy handsets using
loans placed by Turkcell Finansman. The Group assumes credit risk in these transactions. Turkcell
Finansman collects the loan from the subscriber during the contract period and the Group does not
recognize handset revenue unless it is acting as principal in the handset sale.
21. Contract assets
Non-current contract assets
Current contract assets
31 December
2023
101,281
3,191,739
3,293,020
31 December
2022
110,487
3,112,465
3,222,952
The contract assets represent contract assets from subscribers. Contract asset is recorded when revenue is
recognized in advance of the Group’s right to bill and receive consideration. The contract asset will
decrease as services are provided and billed. Contract assets also include contracted receivables related to
handset campaigns, and the portion which will be billed after one year is presented under non-current
contract assets.
22.
Inventories
As of 31 December 2023, inventories amounting to TL 540,507 which consist of mainly mobile phone
and its accessories, tablet, sim-cards, tower construction materials and other electronic products
(31 December 2022: TL 494,988).
23. Cash and cash equivalents
Cash in hand
Banks
- Demand deposits
- Time deposits
- Receivables from reverse repo
Impairment loss provision
31 December
2023
335
50,025,071
4,215,677
45,809,394
-
(46,690)
49,978,716
31 December
2022
591
42,823,111
3,598,726
33,120,932
6,103,453
(47,542)
42,776,160
As of 31 December 2023, the average effective interest rates of TL, USD, EUR and RMB time deposits
are 42,2%, 4,1%, 3,7% and 0,7% (31 December 2022: 22.8%, 2.4%, 2.6% and 0.3%) respectively.
As of 31 December 2023, average maturity of time deposits is 39 days (31 December 2022: 22 days).
As of 31 December 2023, there is no receivables from reverse repo. As of 31 December 2022, the effective
interest rates of USD and EUR receivables from reverse repo are 3.0% and 2.8% respectively and average
maturity of receivables from reverse repo is 23 days.
Reconciliation of cash and cash equivalents in consolidated statement of cash flows:
Cash and cash equivalents
Interest accrual of cash and cash equivalents
Asset held for sale
Total
31 December
2023
49,978,716
(171,284)
4,017,443
53,824,875
31 December
2022
42,776,160
(33,956)
-
42,742,204
290 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 291
63
64
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
24. Financial assets
The details of financial assets as of 31 December 2023 and 2022 are as follows:
Amortized cost
- Time deposits with maturity of more than three
months
Fair value through profit or loss
- Currency protected time deposits (**)
- Investment funds (***)
Fair value through other comprehensive
income
- Listed debt securities (*)
31 December 2023
31 December 2022
Non-
current
-
-
541,490
-
541,490
106,023
106,023
647,513
Current
-
-
8,869,828
8,869,828
-
Non-
current
-
-
426,147
-
426,147
-
-
8,869,828
3,049,667
3,049,667
3,475,814
Current
1,233,597
1,233,597
6,648,418
6,648,418
-
-
-
7,882,015
(*) Listed debt securities are classified as financial assets at fair value through other comprehensive income.
(**) In order to prioritize the TL in deposit preferences of savers and to increase the share of TL in banks’ balance sheets, the
foreign currency protected deposit and participation account (“CPTD”) scheme was introduced in December 2021 by Ministry
of Treasury and Finance of Turkiye (“MoTF”). The CPTD scheme consists of TL accounts to be opened under the support of
the MoTF and conversions from foreign currency (FX) deposits to TL accounts to be supported by the CBRT. Savings of TL
depositors are hedged against the exchange rate risk with the CPTD scheme supported by the MoTF. The CBRT-supported
scheme enables FX deposit account holders to switch to TL deposit accounts. Depositors switching to TL accounts from their
foreign currency accounts under the support of the CBRT will be able to continue to hedge their savings against the exchange
rate risk by using the MoTF supported scheme at the end of the maturity period. 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 USD 190,356 and EUR 85,000 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.
Financial assets at fair value
through other
comprehensive income
Financial assets at fair value
through profit or loss
Financial assets at fair value
through profit or loss
Financial assets at fair value
through profit or loss
Fair Values
31 December
31 December
2023
2022
Fair
value
hierarchy
106,023
3,049,667
Level 1
82,311
32,925
Level 1
8,869,828
6,648,418
Level 2
459,179
9,517,341
393,222
10,124,232
Level 3
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 reporting date
Pricing models based on
discounted cash flow
292 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
24. Financial assets (continued)
As of 31 December 2023, and 2022, the notional and fair value amounts of listed debt securities are as
follows:
Currency
TL
Total listed debt securities
Currency
EUR
EUR
EUR
USD
USD
USD
USD
USD
USD
USD
Total listed debt securities
31 December 2023
Notional amount
(original currency)
73,426
31 December 2022
Notional amount
(original currency)
24,000
15,000
5,000
3,700
21,000
18,000
5,000
3,000
1,000
50,000
Fair value
(in TL)
106,023
106,023
Fair value
(in TL)
777,764
459,852
164,732
120,802
644,610
508,090
161,123
92,001
30,549
90,144
3,049,667
Maturity
Indefinite
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
As of 31 December 2023 and 2022, the notional and fair value amounts of currency protected time
deposits are as follows:
Currency
TL
TL
TL
TL
TL
TL
TL
TL
TL
TL
TL
TL
TL
TL
Total currency protected time
deposits
31 December 2023
Notional amount
(original currency)
1,191,635
1,071,635
955,742
599,368
972,020
207,853
700,000
428,045
269,857
274,462
229,780
140,639
94,501
94,501
Fair value
(in TL)
1,732,409
1,722,282
1,155,750
715,056
499,665
418,545
778,068
474,316
325,875
323,482
253,153
170,242
150,592
150,393
8,869,828
Maturity
22 February 2024
26 February 2024
27 February 2024
26 April 2024
10 May 2024
12 February 2024
28 February 2024
31 July 2024
16 August 2024
28 August 2024
02 October 2024
01 April 2024
15 April 2024
24 October 2024
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 293
66
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
24. Financial assets (continued)
Currency
TL
TL
TL
TL
TL
TL
Total currency protected time deposits
31 December 2022
Notional amount
(original currency)
1,564,478
1,160,181
1,155,113
719,717
379,577
305,578
Fair value
(in TL)
2,037,015
1,565,557
1,351,781
842,611
493,978
357,476
6,648,418
Maturity
10 May 2023
27 February 2023
15 August 2023
16 August 2023
11 May 2023
02 October 2023
During the year, the following gains (losses) were recognized in other comprehensive income.
Gains / (Losses) recognized in other comprehensive
income
Related to financial assets
Related to financial assets, tax effect
31 December
31 December
2023
2022
31 December
2021
149,602
(5,514)
144,088
(121,999)
35,988
(86,011)
(192,475)
38,164
(154,309)
25. Equity
Share capital
As at 31 December 2023, share capital represents 2,200,000,000 (31 December 2022: 2,200,000,000)
authorized, issued and fully paid shares with a par value of TL 1 each. In this respect, share capital
presented in the consolidated financial statements refers to nominal amount of registered share capital.
Each holder of shares is entitled to receive dividends as declared and their vote entitlements are
determined as explained in Note 1.
Companies with their shareholding percentage are as follows:
31 December 2023
31 December 2022
Public Share
TVF BTIH
IMTIS Holdings
Other
Total
Inflation adjustment to share capital
Inflation adjusted capital
(%)
53.95
26.20
19.80
0.05
100
(%)
53.95
26.20
19.80
0.05
100
TL
1,187,004
576,400
435,600
996
2,200,000
30,134,546
32,334,546
TL
1,187,004
576,400
435,600
996
2,200,000
30,134,546
32,334,546
As at 31 December 2023, total number of shares pledged as security is 995,509 (2022: 995,509).
Legal reserves
The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish
Commercial Code (“TCC”).
25. Equity (continued)
Legal reserves (continued)
The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per
annum, until the total reserve reaches 20% of a company’s paid-in share capital. The second legal reserve
is appropriated at the rate of 10% per annum of all cash dividends in excess of 5% of the paid-in share
capital. Under the TCC, the legal reserves can only be used to offset losses and are not available for any
other usage unless they exceed 50% of paid-in share capital.
Treasury shares
During 2023, the Company purchased 1,000,000 of its shares on-market with prices ranging from full TL
33.46 to full TL 34.00. The buyback was approved by the Board of Directors on 27 July 2016 and 30
January 2017. Treasury shares are recognized by deducting from equity.
Dividends
Turkcell:
At the General Assembly held on 13 September 2023, it was decided to distribute gross TL (2,484,979)
part of the distributable profit of the Company for the year ended 31 December 2022 to the shareholders
on 20 December 2023 in cash, as 1.0272 gross for each share with a nominal value of 1 TL. The amount
was paid to the shareholders on the relevant date (31 December 2022: TL (2,391,534)).
26. Earnings per share
Numerator:
Profit attributable to owners of the Company
Denominator:
Weighted average number of shares (*)
Basic and diluted earnings per share for profit
attributable to owners of the Company (in full
TL)
2023
2022
2021
12,553,996
6,880,436
7,135,436
2,183,106,193
2,183,106,193
2,183,106,193
5.75
3.15
3.27
Numerator:
Profit from continuing operations attributable to
owners of the Company
Denominator:
Weighted average number of shares (*)
Basic and diluted earnings per share for profit
from continuing operations attributable to
owners of the Company (in full TL)
Numerator:
Profit attributable to owners of the Company
Denominator:
Weighted average number of shares (*)
Basic and diluted earnings per share for profit
attributable to owners of the Company (in full
TL)
(*) Refer to Note 25 - Treasury shares
10,584,322
6,038,066
6,416,709
2,183,106,193
2,183,106,193
2,183,106,193
4.85
2.77
2.94
2023
2022
2021
1,969,674
842,370
718,727
2,183,106,193
2,183,106,193
2,183,106,193
0.90
0.39
0.33
294 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
67
68
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 295
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
27. Other non-current liabilities
28. Loans and borrowings (continued)
Turkcell Ödeme has issued management agreement based lease certificates, each with a maturity of
between 3 and 4 months, for a total amount of 1,680,000 TL on various dates between February 2023 and
December 2023.
Within the scope of the approval Turkcell Superonline received from the CMB on 25 August 2022, for
the issuance of lease certificates up to TL 1,000,000, in addition to the TL 400,000 issued in 2022, through
Halk Varlık Kiralama on various dates between January 2023 and May 2023. A total of TL 600,000 worth
of lease certificates were issued, each with a maturity of 3 months. All of these issued lease certificates
have been repaid as of 30 September 2023.
In addition, on 21 June 2023, Turkcell Superonline, within the framework of the capital markets
legislation, rented up to 1,000,000 TL, in Turkish Lira, based on a management contract, to be sold to
private and/or qualified investors without public offering, domestically, in different amounts and time
periods. It received CMB approval again for the issuance of certificates, valid for 1 year. Within the scope
of the said approval, a total of 1,000,000 TL worth of lease certificates, each with a maturity of 3/4 months,
were issued through Halk Varlık Kiralama on various dates between July 2023 and December 2023. On
21 December 2023, within the framework of capital markets legislation, 1 year for the issuance of lease
certificates based on management contracts, up to 3,000,000 TL, in Turkish Lira, to be sold domestically,
in different amounts and time periods, to private and/or qualified investors without public offering. It
received CMB approval again, valid for a period of time.
Turkcell Finansman A.S issued a total of TL 925,000 corporate bonds, with maturities between 91 and
182 days on various dates between March and December. As of 31.12.2023, TL 825,000 issuance limit
remained from the TL 1,000,000 limit in December.
Liabilities to BeST investment agreement (*)
Consideration payable in relation to the acquisition of Boyut Enerji
Deferred revenue
31 December
2023
1,027,057
-
86,411
1,113,468
31 December
2022
1,093,001
5,396
8,194
1,106,591
(*) 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 USD 100,000 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 USD 100,000 (equivalent to TL
2,943,820 as of 31 December 2023) 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- 2032.
28. Loans and borrowings
Long-term borrowings
Unsecured bank loans
Secured bank loans
Lease liabilities
Debt securities issued
Short-term borrowings
Unsecured bank loans
Secured bank loans
Lease liabilities
Debt securities issued
31 December
2023
25,494,990
3,950,491
1,655,783
26,845,384
57,946,648
19,569,422
773,762
771,805
5,022,572
26,137,561
31 December
2022
25,793,259
3,775,341
3,595,270
28,021,429
61,185,299
21,207,113
1,393,368
1,438,923
3,512,682
27,552,086
The Company has used loans in accordance with the loan agreement previously signed with ING Bank
N.V. and AB Svensk Export kredit under the Swedish Export Credit Organization (“EKN”) insurance on
18 December 2020. Under this agreement as of 31 December 2023, the Company has used loans of USD
4,819, USD 25,889 and USD 9,110 on 24 February 2023, 22 May 2023, and 7 September 2023,
respectively, at a fixed annual 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, and extended on 7 August 2023. As of 31 December 2023, under
this agreement, the Company has used EUR 28,900, EUR 36,603, EUR 26,854, and EUR 40,675 loans
on 8 February 2023, 29 May 2023, 21 June 2023, 6 September 2023, 25 October 2023, 28 November
2023, and 27 December 2023, respectively, with an interest rate of 6M Euribor+2.29%, and CNY 42,073,
CNY 47,600, and CNY 36,000 loans on 6 September 2023, 25 October 2023, and 28 November 2023,
respectively, with an annual interest rate of 5.15%.
Under CMB approval taken by The Company on 28 April 2023 for issuance of debt securities to TL
8,000,000, the Company has issued debt securities on 8 May 2023, 1 August 2023, 9 August 2023, and
11 August 2023, respectively, amounting 330,000 TL, 500.000 TL, 530.000 TL and 700.000 TL with the
maturity of 9 August 2023, 31 January 2024, 8 February 2024, and 9 February 2024. As of 31 December
2023, the remained limit is 5,939,680 TL from 8,000,000 TL specified total limit.
296 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 297
69
70
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
28. Loans and borrowings (continued)
Terms and conditions of outstanding loans are as follows:
Currency
Interest rate
type
Payment
period
Unsecured Bank Loans
Unsecured Bank Loans
Unsecured Bank Loans
Unsecured Bank Loans
Unsecured Bank Loans
Unsecured Bank Loans
Unsecured Bank Loans
Unsecured Bank Loans
Secured bank loans
Secured bank loans
Secured bank loans
Debt securities issued
Debt securities issued
Lease liabilities
Lease liabilities
Lease liabilities
Lease liabilities
Lease liabilities
EUR
TRY
USD
UAH
CNY
EUR
USD
BYR
USD
USD
UAH
USD
TRY
TRY
UAH
EUR
BYN
USD
Floating
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
2024-2028
2024-2025
2024-2028
-
2024-2028
2024
2024-2026
2024
2024-2033
2024-2028
-
2024-2028
2024
2024-2057
-
2024-2034
2024-2037
2024-2052
Carrying amount
Payment period
Nominal interest rate
Carrying amount
31 December 2022
2023-2028
2023
2023-2026
2023-2024
2023-2028
-
2023-2026
-
2023-2032
2023-2028
2023
2023-2028
2023
2023-2048
2023-2071
2023-2034
2023-2037
2023-2052
25,815,920
11,942,103
4,483,145
-
2,261,585
345,431
200,371
15,857
3,872,474
851,779
-
28,430,710
3,437,246
1,569,795
-
407,907
415,560
34,326
84,084,209
Euribor+2.0%-
Euribor+2.3%
12.4%-38.0%
Libor+1.7%-
Libor+2.2%
10.0%-21.0%
3.7%-5.5%
-
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%
22,530,691
12,822,981
6,561,767
2,354,892
2,446,988
-
283,053
-
3,491,611
1,075,688
601,410
29,680,889
1,853,222
1,989,791
1,892,521
510,252
509,575
132,054
88,737,385
31 December 2023
Nominal interest
rate
Euribor+2.0%-
Euribor+4.0%
11.5%-58.9%
Sofr 2.2%
-
5.2%-5.5%
6.0%
2.6%
14.0%
1.5%-3.8%
Sofr+0.6% &
Libor+1.6%
-
5.8%
29.5%-45.0%
9.8%-45.0%
-
1,0%-11,0%
10,8%-20,0%
3,9%-11,6%
71
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
29. Employee benefits
Defined benefit plans provision
Unused vacation provision
Provision for defined benefit plans
Movements in provision for retirement pay liability are as follows:
Balance at 1 January
Service cost
Past service cost
Remeasurements
Interest expense
Benefit payments
Inflation adjustment
Balance at 31 December
31 December
2023
1,684,487
367,838
2,052,325
31 December
2022
2,621,135
328,351
2,949,486
2023
2,621,135
352.454
3,821
149,757
162,917
(564,023)
(1,041,575)
1,684,487
2022
1,391,572
164.086
3,574
1,824,873
185,615
(111,268)
(837,317)
2,621,135
The sensitivity of provision for retirement pay liability to changes in the significant actuarial assumptions
is:
31 December 2023
Sensitivity Level
Change in assumption
Impact on provision for defined benefit plans
Interest Rate
1% increase
(14.1%)
(237,007)
1% decrease
17.0%
286,194
Inflation Rate
1% increase
17.2%
290,406
1% decrease
(14.4) %
(243,240)
31 December 2022
Sensitivity Level
Change in assumption
Impact on provision for defined benefit plans
Interest Rate
1% increase
(13.4%)
(403,655)
1% decrease
16.3%
498,016
Inflation Rate
1% increase
16.5%
495,395
1% decrease
(13.8%)
408,897
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 TL 75,500 and TL 105,964 in relation to the defined
contribution retirement plan for the years ended 31 December 2023 and 2022 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 2023, the Group recognized expenses of TL 201,136 regarding this plan (31 December
2022: None)
298 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 299
72
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
30. Deferred revenue
32. Provisions (continued)
Deferred revenue primarily consists of rent income that are accounted with the scope of IFRS 16 and it
is classified as current at 31 December 2023 and 2022. The amount of deferred revenue is TL 248,003
and TL 214,040 as at 31 December 2023 and 2022, respectively.
31. Contract liabilities
Long-term contract liabilities
Short-term contract liabilities
31 December
2023
1,193,665
1,312,519
2,506,184
31 December
2022
1,248,479
1,401,669
2,650,148
Contract liabilities primarily consists of right-of-use sold but not used by prepaid subscribers.
Revenue recognized in the current reporting period relating to carried forward contract liabilities is
TL 1,401,669 (2022: TL 1,507,988).
The following table shows unsatisfied performance obligation result as of 31 December 2023;
Telecommunications service
Equipment revenues
31 December
2023
1,844,463
849,574
2,694,037
31 December
2022
2,448,063
1,748,473
4,196,536
Management expects that 52% of the transaction price allocated to the unsatisfied contracts as of
31 December 2023 will be
remaining
48% will be recognized in next years.
revenue during 2024. The
recognized
as
32. Provisions
Non-current provisions:
Balance at 1 January 2023
Provisions recognized
Payments
Unwinding of discount
Transfers to current provisions
Remeasurements
Effect of changes in exchange rates
Transfers to asset held for sale
Inflation adjustment
Balance at 31 December 2023
Obligations for
dismantling,
removing and site
Legal claims
78,585
124,582
-
-
(46,026)
-
-
-
(46,544)
110,597
restoration
1.517.618
72.557
(22.631)
110.868
-
272.955
204.532
(204.056)
(683.005)
1.268.838
Total
1,596,203
197.139
(22.631)
110.868
(46.026)
272.955
204.532
(204.056)
(729.549)
1.379.435
300 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
73
Obligations for
dismantling,
removing and site
Balance at 1 January 2022
Provisions recognized
Payments
Unwinding of discount
Transfers to current provisions
Remeasurements
Effect of changes in exchange rates
Inflation adjustment
Balance at 31 December 2022
Legal claims
53,219
88,180
-
-
(34,320)
-
-
(28,494)
78,585
restoration
Total
1,613,569 1,666,788
107,915
(11,732)
133,295
(34,320)
401,443
42,431
(681,123) (709,617)
1,517,618 1,596,203
19,735
(11,732)
133,295
-
401,443
42,431
Provision for legal claims is recognized for the probable cash outflows related to legal disputes. Refer to
Note 37.
The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to
restore sites on which the assets were located. The dismantling costs are calculated according to best
estimate of future expected payments discounted at a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the liability.
Current provisions:
Balance at 1 January 2023
Provisions recognized
Payments
Transfers from non-current provisions
Transfers to asset held for sale
Effect of changes in exchange rates
Inflation adjustment
Balance at 31 December 2023
Balance at 1 January 2022
Provisions recognized
Payments
Transfers from non-current provisions
Remeasurements
Effect of changes in exchange rates
Inflation adjustment
Balance at 31 December 2022
(*) Includes share-based payment (Note 29).
(**) Refer to Note 37.
Legal claims (**)
52,515
512,039
(23,591)
46,026
(10,015)
91
(127,135)
449,930
Legal claims (**)
181,407
(173)
(101,687)
34,320
-
-
(61,352)
52,515
Bonus (*)
1,189,764
2,657,049
(1,482,378)
-
(175,440)
38,274
(701,656)
1,525,613
Bonus (*)
1,371,334
1,767,229
(1,357,306)
-
-
3,995
(595,488)
1,189,764
Total
1,242,279
3,169,088
(1,505,969)
46,026
(185,455)
38,365
(828,791)
1,975,543
Total
1,552,741
1,767,056
(1,458,993)
34,320
-
3,995
(656,840)
1,242,279
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 301
74
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
33. Trade and other payables
Short-term trade and other payables
Payables to suppliers
Taxes payable
Accrued treasury share, universal service fund contribution and
contributions to the ICTA’s expenses
Accrued selling and marketing expenses
Payables related with donation
Others
31 December
2023
12,675,253
2,730,809
31 December
2022
11,366,718
2,649,751
1,760,603
166,799
1,750,000
1,522,760
20,606,224
1,625,498
317,188
-
1,059,286
17,018,441
Payable to suppliers arises in the ordinary course of business.
Taxes payables include VAT payables, special communications taxes payable, frequency usage fees
payable to the ICTA and personnel income taxes payable.
Accrued selling and marketing expenses mainly result from services received from third parties related
to the marketing activities of the Group, but not yet invoiced.
34. Derivative financial instruments
The fair value of derivative financial instruments at 31 December 2023 and 2022 are attributable to the
following:
31 December 2023
Assets
Liabilities
31 December 2022
Assets
Liabilities
Held for trading
Derivatives used for hedge accounting
Total
607,509
1,305,395
1,912,904
313,805
48,609
362,414
1,308,954
1,977,016
3,285,970
215,974
35,314
251,288
At 31 December 2023, short-term derivative assets of TL 2,044,765 also include a net accrued interest
income of TL 131,860 and the short-term derivative liabilities of TL 354,370 also includes a net accrued
interest expense of TL 8,044.
At 31 December 2022, the short-term derivative assets of TL 3,348,871 also include a net accrued interest
expense of TL 62,901 and the short-term derivative liabilities of TL 253,894 also includes a net accrued
interest income of TL 2,606.
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
34. Derivative financial instruments (continued)
Derivatives used for hedging
The notional amount and the fair value of derivatives used for hedging contracts at 31 December 2023 and 2022 are as follows:
31 December 2023
31 December 2022
Currency
Participating cross currency swap contracts
Notional
value in
original
currency
Notional
value in
original
currency
Fair value
Fair value
Maturity
date
Hedge
ratio
Change in
intrinsic value
of outstanding
hedging
instruments
since 1
January 2023
Change in
intrinsic value
of outstanding
hedging
instruments
since 1 January
2022
EUR Contracts
EUR Contracts
USD Contracts
167,000
38,057
124,186
259,289
24,514
566,902
233,600
50,711
165,478
334,517 October 2025
April 2026
April 2026
88,338
924,346
01:01
01:01
01:01
(4,216)
(192)
(672)
(12,009)
(288)
16,578
Cross currency swap contracts
TURKCELL ILETISIM HIZMETLERI AS
Interest rate swap contracts
RMB Contracts
81,162
309,793
108,148
423,372
April 2026
01:01
132,184
121,601
USD Contracts
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Derivatives used for hedge accounting
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
EUR 191,036 (2022: EUR 269,624) participating cross currency swap contracts includes TL 998,716 (2022: TL 1,967,883) guarantees after the CSA agreement.
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
171,129
1,941,702
96,288
1,256,786
April 2026
120,105
90,135
01:01
-
-
34. Derivative financial instruments (continued)
Held for trading
The notional amount and the fair value of derivatives used held for trading contracts at 31 December 2023 and 2022 are as follows:
Currency
Cross currency swap contracts
31 December 2023
76
31 December 2022
Notional
value in
original
currency
Fair value
Maturity
Notional value in
original
currency
Fair
value
Maturity
USD Contracts
RMB Contracts
8,000
19,425
185,107
71,036
November 2025
April 2026
Currency forward contracts
USD Contracts
EUR Contracts
334,900
10,000
(123,348)
(19,906)
March 2024
January 2024
FX swap contracts
USD Contracts
RMB Contracts
353,972
-
(148,612)
-
February 2024
-
Participating cross currency swap contracts
USD Contracts
EUR Contracts
18,000
40,060
72,504
251,073
November 2025
April 2026
Interest rate swap contracts
USD Contracts
TL Contracts
Derivatives held for trading
64,655
600,000
23,711
(17,861)
293,704
April 2026
October 2026
18,858
25,883
377,435
26,900
357,451
148,422
27,000
53,380
53,380
-
400,871
94,715
March 2023 - November 2025
April 2026
12,643
47,288
January 2022 - March 2022
February 2023 - April 2023
(6,558)
3,071
123,664
418,589
(1,303)
-
1,092,980
January 2023
January 2023
November 2025
April 2026
April 2026
-
77
302 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 303
75
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand
currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless
otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
34. Derivative financial instruments (continued)
Fair value of derivative instruments and risk management
Fair value
This section explains the judgments and estimates made in determining the fair values of the financial
instruments that are recognized and measured at fair value in the financial statements. To provide an indication
of the reliability of the inputs used in determining fair value, the Group has classified its financial instruments
into the three levels prescribed under the accounting standards. An explanation of each level is as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
a) Participating cross currency swap contracts
Fair Value hierarchy
Level 2
b) FX swap, currency, interest swap and
option contracts
c) Currency forward contracts
Level 2
Level 2
Valuation Techniques
Pricing models based on discounted
cash present value of the estimated
future cash flows based on
observable yield curves and end
period FX rates
Present value of the estimated future
cash flows based on observable
yield curves and end period FX rates
Forward exchange rates at the
balance sheet date
Since the bid-ask spread is observable input; in the valuation of participating cross currency swap contracts, bid prices in
the bid- ask price range that were considered the most appropriate were used instead of mid prices. Using bid prices
instead of mid ranges, has no impact on carried values as of 31 December 2023.
304 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
78
34. Derivative financial instruments (continued)
Fair value of derivative instruments and risk management (continued)
Fair value (continued)
Movements in the participating cross currency swap contracts for the years ended 31 December 2023 and
2022 are stated below, and participating cross currency swap contracts are transferred to level 2 as of 31
December 2023.
Opening balance
Cash flow effect
Total gain/loss:
31 December 2023
1,889,454
(2,206,436)
31 December 2022
2,839,699
(2,203,493)
Gains recognized in profit or loss
Inflation adjustments
Transferred to Level 2
Closing balance
2,362,553
(1,109,305)
-
1,889,454
As of 31 December 2023, the Company has no financial assets and liabilities carried at fair value on a
non-recurring basis.
2,275,339
(784,075)
(1,174,282)
-
Net off / Offset
The Company signed a Credit Support Annex (CSA) against the default risk of parties in respect of a
EUR 167,000 participating cross currency swap transaction executed on 15 July 2016 and restructured
respectively on 26 May 2017 and 9 August 2018. Additionally, in the 25 June 2019, The Company signed
a new CSA to EUR 24,036 participating cross currency swap transaction. As per the CSA, the swap’s
current (mark-to-market) value will be determined on the 10th and 24th calendar day of each calendar
month, and if the mark-to-market value is positive and exceeds a certain threshold, the bank will be
posting cash collateral to the Company which will be equal to an amount exceeding the threshold (i.e. if
the mark-to-market value is negative, the Company would be required to post collateral to the bank by an
amount exceeding the threshold).
With respect to valuations, on a bi-weekly basis, a transfer will take place between the parties only if the
mark-to-market value changes by at least EUR 1,000. Following the execution of CSA, the bank
transferred to the Company EUR 340,544 as collateral (31 December 2022: TL 11,092,846) which was
the amount exceeding the threshold (EUR 10,000) and the Company transferred EUR 309,884 as
collateral to the bank (31 December 2022: TL 10,094,130) which was the amount exceeding the threshold
(EUR 10,000). The Company clarified this with the derivative assets included in the statement of financial
position because it has the legal right to offset the collateral amount TL 998,716 (31 December 2022:
1,967,883) 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 2023, if this transaction was not conducted, derivative financial instruments
assets, liabilities and borrowings would have been TL 2,870,371 (31 December 2022: TL 5,062,399), TL
181,260 (31 December 2022: TL (5,674) and TL 30,371,295 (31 December 2022: TL 29,519,970)
respectively.
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.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 305
79
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
34. Derivative financial instruments (continued)
Fair value of derivative instruments and risk management (continued)
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 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 IFRS 9 hedge accounting requirement. The
Group designates the hedge ratio, between the amount of the hedged item and the hedging instrument is
1:1 to hedge its currency risk.
The time value of options in participating cross currency swap contracts are included in the designation
of the hedging instrument and are separately accounted for as a cost of hedging, which is recognized in
equity in a cost of hedging reserve. The Group’s policy is for the critical terms of the participating cross
currency contracts to align with the hedged item.
The Group determines the existence of an economic relationship between the hedging instruments and
hedged item based on the currency, amount and timing of their respective cash flows. The Group assesses
whether the derivative designated in each hedging relationship is expected to be and has been effective in
offsetting changes in cash flows of the hedged item using the hypothetical derivative method.
In these hedge relationships, the main sources of ineffectiveness are;
- The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of
the hedged risk and associated credit risk considered to be very low at inception in the fair value of the
hedged cash flows attributable to the change in exchange rates;
- The entire fair value of the derivative contracts including currency basis was designated as the hedging
instrument in cash flow hedge. The hypothetical derivative is modelled to exclude the impact of currency
basis.
The Company’s bank loans are designated as hedging instruments against the spot foreign exchange rate
risk (USD/TL) associated with highly probable electricity sales. In this context, the Group started to apply
cash flow hedge accounting effective from 10 September 2021. The amount of loans associated within
this scope amounted to USD 10,097 as of 31 December 2023. The after tax foreign exchange gain and
loss recognized under “cash flow hedges” in the 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 EUR 9,882 as of 31 December 2023. The after
tax foreign exchange gain and loss recognized under “cash flow hedges” in the statement of other
comprehensive income of 2022.
34. Derivative financial instruments (continued)
Fair value of derivative instruments and risk management (continued)
Currency risk (continued)
The Company designated EUR 320,008 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 recognized under “hedges of net investments in foreign operation” in the statement
of other comprehensive income of 2022 in the scope of net investment hedge amounted to TL (1,161,222)
(2022: TL (80,795))
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;
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 2023
Participating cross currency swap contracts
Cross currency swap contracts
Cash Flow sensitivity (net)
31 December 2022
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
(51,444)
138,039
86,595
12,874
129,023
141,897
555,829
(7,670)
548,159
572,421
(8,685)
563,736
(61.841)
106.742
44,701
(41.299)
389.418
348,119
1.245.373 1.297.102
339.632
1,639,960 1,636,734
389.587
306 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
80
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 307
81
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
35. Financial instruments
Credit risk
Exposure to credit risk:
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
to credit risk at the reporting date is:
Trade receivables
Contract assets
Receivables from financial services
Cash and cash equivalents (*)
Derivative financial instruments
Other current & non-current assets (**)
Financial assets at amortized cost
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive
income
Due from related parties
Notes
19
21
20
23
34
17
24
24
24
31 December
2023
11,251,507
3,293,020
6,435,662
49,978,381
2,044,765
703,180
-
9,411,318
106,023
171,373
83,395,229
31 December
2022
11,474,491
3,222,952
5,869,089
42,775,569
3,348,871
694,136
1,233,597
7,074,565
3,049,667
125,967
78,868,904
(*) Cash in hand is excluded from cash and cash equivalents.
(**) Prepaid expenses, VAT receivable, receivable from the Ministry of Transport and Infrastructure of Turkiye and advances
given are excluded from other current assets and other non-current assets.
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
35. Financial instruments (continued)
Credit risk (continued)
Credit quality:
The maximum exposure to credit risk for trade and subscriber receivables, other assets and cash and cash equivalent arising from sales transactions, including those
classified as due from related parties at the reporting date by type of customer is:
Other assets at
31 December 2023 (*)
Gross Carrying Amount
Loss Allowance
Less Than
30 Days Past
Due
Less
Than 60
Days Past
Due
834,801 194,114
8,940
14,424
Less
Than 90
Days Past
Due
129,960
6,611
Not Due
71,631,176
79,942
Less Than
120 Days
Past Due
Less Than
150 Days
Past Due
94,004
6,789
74,345
7,294
Less Than
3 years Past
Due
859,148
184,182
Less Than
4 years Past
Due
293,438
208,805
Less Than
5 years Past
Due
160,786
88,238
Total
74,271,772
605,225
(*) Other Assets includes trade receivables, subscriber receivables, derivative financial instruments, financial assets, other assets, cash and cash equivalent and due from related parties,
As of 31 December 2023, the total amount of derivative financial instruments, financial assets, other assets and cash and cash equivalent included in gross carrying amount is TL 58,761,624. TL
58,617,700 of the balance is included within not due total with a total loss allowance of TL 34.610. Total overdue balance associated with these assets amounts to TL 143,924.
Contract assets at
31 December 2023
Gross Carrying Amount
Loss Allowance
Less Than 30
Days Past
Due
Less Than 60
Days Past
Due
-
-
-
-
Not Due
3,296,409
3,389
Other assets from financial
services at 31 December 2023
(**)
Gross Carrying Amount
Loss Allowance
Less Than
30 Days Past
Due
Less Than 60
Days Past
Due
451,234
3,480
83,488
1,290
Not Due
5,869,236
33,483
Less
Than 90
Days
Past Due
-
-
Less
Than 90
Days Past
Due
21,403
1,491
(**) Other Assets includes trade receivables and subscriber receivables from financial services,
Less Than
120 Days
Past Due
Less Than 150
Days Past Due
Less Than
3 years Past
Due
Less Than
4 years Past
Due
Less Than
5 years Past
Due
-
-
-
-
-
-
-
-
-
-
Less Than
120 Days
Past Due
Less Than
150 Days Past
Due
Less Than
3 years Past
Due
Less Than
4 years Past
Due
Less Than
5 years Past
Due
26,123
10,315
9,133
4,721
113,693
83,877
2,070
2,063
6,234
6,232
Total
3,296,409
3,389
Total
6,582,614
146,952
83
308 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 309
82
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
35. Financial instruments (continued)
Credit risk (continued)
Credit quality (continued):
Other assets at
31 December 2022 (*)
Gross Carrying Amount
Loss Allowance
Not Due
67,227,170
217,408
Less Than
30 Days Past
Due
Less
Than 60
Days Past
Due
Less
Than 90
Days Past
Due
620,561
9,277
293,019
9,028
141,299
7,846
Less Than
120 Days
Past Due
119,245
9,679
Less Than
150 Days
Past Due
154,017
12,671
Less Than
3 years Past
Due
1,358,963
320,263
Less Than
4 years Past
Due
572,029
316,400
Less Than
5 years Past
Due
381,413
188,281
Total
70,867,716
1,090,853
(*) Other Assets includes trade receivables, subscriber receivables, derivative financial instruments, financial assets, other assets, cash and cash equivalent and due from related parties,
Contract assets at
31 December 2022
Gross Carrying Amount
Loss Allowance
Not Due
3,235,056
12,104
Less Than 30
Days Past
Due
Less Than
60 Days
Past Due
Less Than
90 Days
Past Due
Less Than
120 Days
Past Due
Less Than
150 Days
Past Due
Less Than
3 years Past
Due
Less Than
4 years Past
Due
Less Than
5 years Past
Due
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,235,056
12,104
Other assets from financial
services at 31 December 2022
(**)
Gross Carrying Amount
Loss Allowance
Less Than
30 Days Past
Due
Less Than
60 Days
Past Due
Less Than
90 Days
Past Due
Not Due
5,478,565
297,465
52,668
20,849
33,009
2,969
603
323
Less Than
120 Days
Past Due
28,344
11,610
Less Than
150 Days
Past Due
11,305
5,938
Less Than
3 years Past
Due
Less Than
4 years Past
Due
Less Than
5 years Past
Due
115,498
81,167
3,627
3,612
8,927
8,928
Total
6,017,248
148,159
(**) Other Assets includes trade receivables and subscriber receivables from financial services.
84
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
35. Financial instruments (continued)
Impairment losses
Movements in the provision for trade receivables, contract assets, other assets and due from related parties
are as follows:
Opening balance
Provision for impairment recognized during the year
Amounts collected
Receivables written off during the year as uncollectible
Assets held for sale
Effect of changes in exchange rates
Inflation adjustment
Closing balance
Opening balance
Provision for impairment recognized during the year
Amounts collected
Receivables written off during the year as uncollectible
Effect of changes in exchange rates
Inflation adjustment
Closing balance
31 December 2023
Contract Assets
12,104
4,942
-
-
(13,657)
3,389
Other Assets
1,090,853
1,194,467
(291,843)
(952,307)
(89,251)
72,226
(418,920)
605,225
31 December 2022
Contract Assets
16,893
2,123
-
-
-
(6,912)
12,104
Other Assets
1,725,936
1,006,101
(383,034)
(654,365)
40,674
(644,459)
1,090,853
Movements in the provision for impairment of trade receivables, subscriber receivables, other assets and
cash and cash equivalents from financial services are as follows:
Opening balance
Provision for impairment recognized during the year
Amounts collected
Receivables transferred with receivables transfer contract (*)
Inflation adjustment
Closing balance
31 December
2023
148,159
161,574
(83,591)
(6,755)
(72,435)
146,952
31 December
2022
249,272
169,873
(113,112)
(60,942)
(96,932)
148,159
(*) Turkcell Finansman signed a transfer of claim agreement with a debt management company to transfer some of its doubtful
receivables stemming from the years 2016 and 2022. Transferred doubtful receivables comprise of balances that Turkcell
Finansman started legal proceedings for.
310 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 311
85
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing
power of Turkish Lira as of 31 December 2023 unless otherwise stated.)
35. Financial instruments (continued)
Liquidity risk
The table below analyses the Group’s financial liabilities by considering relevant maturity groupings based on their contractual maturities for:
-
-
all non-derivative financial liabilities, and
gross settled derivative financial instruments for which contractual maturities are essential for an understanding of the timing of the cash flows,
Carrying
Amount
Contractual
cash flows
6 months
or less
31 December 2023
6-12
Months
1-2
years
2-5
years
More than 5
Years
Carrying
Amount
Contractual
cash flows
6 months
or less
6-12
months
1-2
years
2-5
years
More than 5
Years
31 December 2022
4,724,253
45,064,412
31,867,956
2,427,588
13,785,953
590,785
(6,237,895)
(49,785,432)
(37,314,608)
(4,225,712)
(1,147,106)
(13,743,381)
(4,408,598)
(669,746)
(436,679)
(7,383,064)
(818,467)
(544,316)
(13,840,042)
(852,565)
(12,622,496)
(814,228)
(852,531)
(11,507,099)
(15,436,413)
(693,147)
(990,527)
(38,337)
-
-
-
(2,356,083)
(17,151,888)
(16,651,130)
(1,292,253)
(1,445,496)
-
-
(1,026,250)
5,168,709
47,000,370
31,534,111
5,034,195
(5,974,716)
(51,443,715)
(38,976,944)
(8,545,826)
(1,015,215)
(14,624,311)
(2,824,636)
(1,273,149)
(400,352)
(8,071,932)
(856,600)
(960,925)
(783,620)
(7,441,277)
(1,713,198)
(1,513,561)
(2,171,728)
(18,517,855)
(17,921,121)
(2,403,083)
(1,603,801)
(2,788,340)
(15,661,389)
(2,395,108)
-
-
(227,019)
-
11,423,268
399,156
(11,918,822)
(551,742)
(11,681,227)
(551,742)
-
-
-
-
-
-
-
(237,595)
-
(15,370)
(179,204)
(2,901,769)
1,027,057
(2,958,394)
-
(14,574)
(287,636)
(2,656,184)
1,098,399
(3,096,343)
-
Non-derivative financial
liabilities
Secured bank loans
Unsecured bank loans
Debt securities issued
Lease liabilities
Trade and other payables
(*)
Due to related parties
Consideration payable in
relation to acquisition of
BeST and Boyut Enerji
(Note 27)
Derivative financial
liabilities
Participating Cross Currency
Swap and FX swap contracts
354,370
(180,189)
293,138
(54,216)
(160,366)
(258,745)
Buy
Sell
-
-
(24,379,548)
(22,325,369)
(191,680)
(351,830)
(1,510,669)
24,199,359
22,618,507
137,464
191,464
1,251,924
-
-
-
248,682
575,387
111,291
103,870
157,201
203,595
(570)
-
-
(18,318,639)
(17,168,992)
(1,549,824)
192,527
222,079
(14,429)
18,894,026
17,280,283
1,653,694
(35,326)
(18,484)
13,859
TOTAL
99,842,374
(115,394,837)
(33,112,417)
(9,236,742)
(29,692,994)
(37,997,735)
(5,354,949)
101,906,890
(119,932,721)
(31,858,989)
(10,185,939)
(11,309,825)
(40,989,396)
(25,588,572)
(*) Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables.
86
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
35. Financial instruments (continued)
Foreign exchange risk
The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional
amounts, was as follows:
Foreign currency denominated assets
Other non-current assets
Financial asset at fair value through other
comprehensive income
Due from related parties - current
Trade receivables and contract assets
Other current assets
Cash and cash equivalents
Foreign currency denominated liabilities
Loans and borrowings - non-current
Debt securities issued - non-current
Lease obligations - non-current
Other non-current liabilities
Loans and borrowings - current
Debt securities issued - current
Lease obligations - current
Other current liabilities
Trade and other payables - current
Due to related parties
31 December 2023
EUR
USD
69
11
156,278
1,059
11,566
2,340
534,318
705,630
(234,458)
(911,923)
(1,063)
(34,889)
(85,119)
(53,853)
(103)
(848)
(134,540)
75,622
-
15,857
3,184
639,362
734,036
(631,844)
-
(9,425)
-
(201,955)
-
(3,097)
(2,160)
(87,414)
(5,870)
(1,462,666)
-
(935,895)
RMB
-
-
-
-
56
257,156
257,212
(473,134)
-
-
-
(75,635)
-
-
-
(323,677)
-
(872,446)
Financial liabilities defined as hedging instruments
Exposure related to derivative instruments
Participating cross currency swap and FX swap contracts
Currency forward contracts
Net exposure
10,097
329,890
-
361,971
601,360
216,392
(325,000)
10,000
(186,969)
100,586
-
(514,648)
312 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 313
87
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
35. Financial instruments (continued)
Foreign exchange risk (continued)
Foreign currency denominated assets
Other non-current assets
Financial asset at fair value through other
comprehensive income
Due from related parties - current
Trade receivables and contract assets
Other current assets
Cash and cash equivalents
Foreign currency denominated liabilities
Loans and borrowings - non-current
Debt securities issued - non-current
Lease obligations - non-current
Other non-current liabilities
Loans and borrowings - current
Debt securities issued - current
Lease obligations - current
Other current liabilities
Trade and other payables - current
31 December 2022
USD
69
167,157
71
25,125
14,580
393,932
600,934
(275,615)
(909,499)
(1,210)
(35,476)
(94,765)
(53,862)
(3,076)
(886)
(109,401)
(1.483.790)
EUR
11
115,995
-
22,977
6,455
557,380
702,818
(565,765)
-
(12,474)
-
(180,091)
-
(3,060)
(5,156)
(17,514)
(784.060)
RMB
-
-
-
-
9,057
194,430
203,487
(404,695)
-
-
-
(149,310)
-
-
-
(369,627)
(923.632)
Financial liabilities defined as hedging instruments
Exposure related to derivative instruments
Participating cross currency swap and FX swap
contracts
Currency forward contracts
Net exposure
13,763
302,482
-
376,307
539,263
46,477
(355,000)
(150)
(133,910)
282,453
-
(437,692)
35. Financial instruments (continued)
Exposure to currency risk
Sensitivity analysis
The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level
currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities
denominated in foreign currencies; the analysis excludes net foreign currency investments.
A 10% strengthening/weakening of the TL, UAH, BYN, EUR against the following currencies as at
31 December 2023 and 31 December 2022 would have increased/(decreased) profit or loss before by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain
constant.
Sensitivity analysis
1- USD net asset/liability
2- Hedged portion of USD risk (-)
3- USD net effect (1+2)
4- EUR net asset/liability
5- Hedged portion of EUR risk (-)
6- EUR net effect (4+5)
7- Other foreign currency net asset/liability
(RMB)
8- Hedged portion of other foreign currency
risk (-) (RMB)
9- Other foreign currency net effect (7+8)
Total (3+6+9)
Sensitivity analysis
1- USD net asset/liability
2- Hedged portion of USD risk (-)
3- USD net effect (1+2)
4- EUR net asset/liability
5- Hedged portion of EUR risk (-)
6- EUR net effect (4+5)
7- Other foreign currency net asset/liability
(RMB)
8- Hedged portion of other foreign currency
risk (-) (RMB)
9- Other foreign currency net effect (7+8)
Total (3+6+9)
31 December 2023
Profit/(Loss)
Equity
Appreciation of
foreign
currency
Depreciation
of foreign
currency
Appreciation
of foreign
currency
Depreciation
of foreign
currency
632,650
-
632,650
(611,666)
-
(611,666)
(632,650)
-
(632,650)
611,666
-
611,666
-
(29,724)
(29,724)
-
(32,190)
(32,190)
(212,097)
212,097
-
-
(212,097)
(191,113)
-
212,097
191,113
1,477
1,477
(60,437)
-
29,724
29,724
-
32,190
32,190
-
(1,477)
(1,477)
60,437
31 December 2022
Profit/(Loss)
Equity
Appreciation of
foreign
currency
Depreciation
of foreign
currency
Appreciation
of foreign
currency
Depreciation
of foreign
currency
143,194
-
143,194
(439,858)
-
(439,858)
(143,194)
-
(143,194)
439,858
-
439,858
-
(41,745)
(41,745)
-
(42,380)
(42,380)
(193,324)
193,324
-
-
193,324
489,988
2,636
2,636
(81,488)
-
(193,324)
(489,988)
89
-
41,745
41,745
-
42,380
42,380
-
(2,636)
(2,636)
81,488
314 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 315
88
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
35. Financial instruments (continued)
Interest rate risk
As at 31 December 2023 and 2022 the interest rate profile of the Group’s variable rate interest-bearing
financial instruments are as follows:
31 December 2023
31 December 2022
Effective
Interest
Note
Rate
Effective
interest
Carrying
Amount
rate
3.2%
2.2%
Carrying
Amount
(7,637,455)
(22,530,691)
Variable rate instruments
USD floating rate loans 28
EUR floating rate loans 28
3.9%
2.1%
(5,334,924)
(25,815,920)
Sensitivity analysis
Cash flow sensitivity analysis for variable rate instruments:
An increase/decrease of interest rates by 100 basis points would have (decreased)/increased equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular
foreign exchange rates, remain constant. The analysis is performed on the same basis at 31 December
2023 and 2022:
Profit or (loss)
Equity
100 bps
increase
100 bps
decrease
100 bps
increase
100 bps
decrease
3,785,019
3,785,019
(3,785,019)
(3,785,019)
(519,385)
(519,385)
519,385
519,385
-
-
-
-
-
-
-
-
31 December 2023
Variable rate instruments (financial
liability)
Cash flow sensitivity (net)
31 December 2022
Variable rate instruments (financial
liability)
Cash flow sensitivity (net)
Fair value
Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a
recurring basis. The following table summarizes the quantitative information about the significant
unobservable inputs used in level 3 fair value measurement of contingent consideration.
316 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
90
35. Financial instruments (continued)
Fair values (continued)
Valuation inputs and relationships to fair value
Fair value at
31
December
2023
31
December
2022
Unobservable
Inputs
Contingent
consideration
-
1,249,409
Risk-adjusted
discount rate
Inputs
31
December
2023
31
December
2022
-
6.8%-8.0%
Expected
settlement date
-
in
instalments
between
2026-2032
Relationship of
unobservable inputs to
fair value
An increase/decrease in the
discount rate by 100 bps
would change FV by
TL (51,092) and TL
55,485, respectively.
If expected settlement date
extended/shortened by 1-
year, FV would change by
TL (53,167) and TL
57,145, respectively.
Changes in the consideration payable in relation to acquisition of BeST for the years ended 31 December
2023 and 31 December 2022 are stated below:
Opening balance
Losses recognized in profit or loss
Inflation adjustment
Closing balance
Financial assets:
31 December
2023
-
-
-
-
31 December
2022
2,052,399
(1,249,409)
(802,990)
-
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 24.
Financial liabilities:
As at 31 December 2023 and 31 December 2022; for the majority of the borrowings, the fair values are
not materially different to their carrying amounts since the interest payable on those borrowings is either
close to current market rates or the borrowings are of a short-term nature.
The carrying amounts and fair values of non-current borrowings and current portion of non-current
borrowings are as follows:
As at 31 December 2023:
Bank loans
Debt securities
As at 31 December 2022:
Bank loans
Debt securities
Carrying amount
Fair value
37,558,519
28,430,710
35,724,400
27,828,939
Carrying amount
Fair value
37,733,566
29,680,889
35,349,818
27,307,857
91
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 317
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
35. Financial instruments (continued)
Fair values (continued)
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.
36. Guarantees and purchase obligations
At 31 December 2023, outstanding purchase commitments with respect to property, plant and equipment,
inventory, advertising and sponsorship amount to TL 5,059,847 (31 December 2022: TL 6,471,418).
Payments for these commitments will be made within 4 years.
The Group is contingently liable in respect of letters of guarantee obtained from banks and given to public
institutions and private entities, and financial guarantees provided to subsidiaries amounting to
TL 17,891,113 at 31 December 2023 (31 December 2022: TL 16.187.804).
BeST has an investment commitment covers the years 2022-2032 with a total investment amount of not
less than USD 100,000 equivalent to TL 2,943,820 in accordance with the agreement which signed
between the Republic of Belarus, BeST and the Company on 30 November 2022. As of 31 December
2023, the remaining investment commitment is amounting to USD 93,376 (TL equivalent of 2,748,824).
no
The Company
as of 31 December 2023 (31 December 2022: 6,103,453).
commitment
regarding
reverse
resale
repo
has
to
receivables
37. Commitments and Contingencies
The amounts related to the investigations, lawsuits, and inquiries shared below are disclosed with their
nominal values as of December 31, 2023.
Disputes on Special Communication Tax
Restructuring Act Compensation Lawsuit regarding the SCT for the term 2011
The Large Taxpayers Office levied Special Communication Tax (SCT) and tax penalty on the Company
for the term 2011, the Company filed application for restructuring the tax assessment as per Law no. 6736,
the application has rejected. The Company filed a case for the cancellation of aforementioned rejection
act, this case was finalized in favor of the Company.
Thereupon the Company, filed a lawsuit for the collection of TL 47,405 principal receivable and TL
36,000 damage accrued with a deferment interest. The Court decided to return TL 47,269 principal
receivable together with the deferred interest to be calculated as of the collection date. Regional
Administrative Court rejected the appeal requests. The lawsuit is ongoing in the appeal stage.
Disputes regarding the Law on the Protection of Competition
The Competition Board decided to apply administrative fine on the Company amounting to TL 91,942,
on the ground that the Company violated Article 6 of Law No. 4054, but not violated Article 4, due to its
actions in the distribution network. The Company filed a lawsuit for the cancellation of the Board decision
regarding the parts against itself and the case which was investigated by the first instance court and the
appeal was finalized against it. 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 filed a lawsuit for the cancellation of the payment order but that case also was finalized
against the Company. TL 47,780 part of the administrative fine amounting to 91,942 TL has been
deducted from the receivables that the Company has earned due to application for restructuring the 2011
SCT assessment within the scope of Law No. 6736 in 2021. The remaining TL 44,162 part of the
administrative fine was paid in April 2022.
318 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
92
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
37. Commitments and Contingencies (continued)
Disputes regarding the Law on the Protection of Competition (continued)
On the other hand, three private companies filed a lawsuit against the Company in relation with this case
claiming in total of TL 112,084 together with up to three times of the loss amount to be determined by
the court for its material damages by reserving its rights for surpluses allegedly.
Among these cases, in the case filed for the compensation of total TL 110,484 material damages together
with compensation amounting to three times of the damage and interest, the first instance court decided
to reject the case in favor of the Company. 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. After the annulment decision,
the court partially accepted the case and ruled reimbursement of TL 215,555 (three times of the actual
damage of TL 71,851).
As a result of the appeal, which made by the both parties, examination made by the Regional Court of
Appeal, the Company'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. In line with the objections of the parties, the court decided to obtain an additional expert report
from the same expert committee in the file. The expert additional report has been submitted to the file.
The company objected to the both reports in due time. Case is pending.
Among these cases, in the case filed for the compensation of total TL 500 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 court decided to obtain an expert report from a new expert committee in accordance
with both parties objections, The expert review is still ongoing. The other case is also pending.
On the other hand, a lawsuit was filed by a third party, for the cancellation of the part of the
aforementioned Competition Board decision, regarding the rejection of the claims that the Company did
not violated Article 4 of the Law. 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 additional administrative fine amounting to TL 91,942 on
the Company for 2019. Afterwards, The Competition Authority accepted some of the objections of the
Company and reduced the administrative fine to TL 61,294 with its decision. The aforementioned fine
that amount of TL 61,294 was paid discount, in the amount of TL 45,971. Then, a lawsuit was filed on
for cancellation of the aforementioned administrative fine. A decision was made against the Company at
the first instance and appeal stages. The appeal process is pending.
Disputes regarding the Law on the Protection of Competition – Investigation on gentleman's
agreements for the labour market
On 7 May 2023, the Company received the Investigation Report concerning an inquiry by the Competition
Authority to determine if there has been a breach of Article 4 of Law No. 4054 on the Protection of
Competition, regarding any gentlemen's agreements for the labor market. The report, which includes the
viewpoints and findings of the Investigation Panel is non-binding and doesn't predetermine the
Competition Board's final decision. The Company has already submitted its second written pleas
addressing the findings noted in the Investigation Report to the Authority. Subsequently, a verbal defense
meeting was held on 13 February 2024. The short decision was notified and the Competition Board
decided to impose an administrative fine of TRY 57,301 Our payment obligation will arise after the
reasoned decision of the Competition Board is written and notified to our Company.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 319
93
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
37. Commitments and Contingencies (continued)
ICTA Investigation Regarding the R&D Obligations
37. Commitments and Contingencies (continued)
ICTA – Inspection on Service Quality (2020 Q2)
The ICTA has initiated various investigations and may initiate new investigations to examine whether the
obligations arising from the relevant legislation regarding the procurement of a certain portion of the
investments related to the electronic communication network and communication services from suppliers
with R&D centers in Turkey, a certain portion from products manufactured in Turkey by SMEs
established to develop products/systems in Turkey, and a certain portion from products determined to be
domestic goods certified are fulfilled. As a result of the first investigations on the subject, ICTA decided
to impose a total administrative fine of 49,170 TL for the 2013-2016/2016-2017 reporting periods. The
aforementioned administrative fines were paid in 2021 with a discount of TL 36,877 (1/4) by taking
advantage of the early payment discount, but several lawsuits were filed for the cancellation of the fines.
All of the lawsuits were finalized against the Company at the first instance court, but the Company
appealed within the time limit.
For the following period between 27 October 2017-26 October 2018, the ICTA initiated an investigation
to examine whether our obligations regarding R&D, SME and/or domestic goods investments, R&D
Center, R&D Projects and SMEs were fulfilled and as a result of this investigation, the ICTA decided to
impose a total administrative fine of TL 46,317 on the Company. The decision was notified to the
Company and the administrative fine was paid in due time (31 January 2024) as TL 34,738 (with 1/4
discount) by taking advantage of the early payment discount. In addition, an application has been made
to the ICTA for the revocation of the decision.
In addition, ICTA initiated an investigation on Our Company for the periods 27 October 2019-26 October
2020 (5th Period) and 27 October 2020-26 October 2021 (6th Period) in order to examine whether our
obligations regarding R&D, SME and/or domestic goods investment obligations and criteria for SMEs in
the 3G Concession Agreement and 4.5G Authorisation Certificate have been fulfilled. The ICTA also
decided to conduct the said inspection by merging it with the inspection previously initiated for 27
October 2018-26 October 2019 (4th Period). The information and documents requested within the scope
of the investigation were submitted to the ICTA. Subsequently, penalty evaluations were made in the
Investigation Report prepared by the Supervisory Board. Our written defenses regarding the Investigation
Report were submitted to the ICTA on 19 January 2023. Within the scope of the investigation, a verbal
defense meeting was held on 13 June 2023.
ICTA – Investigation on 3G and 4.5G Service Quality Obligations
ICTA 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 ICTA has decided to impose an administrative fine of TL 3,622 to the Company. The
administrative fine notified to the Company on 20 January 2022 and was paid on 17 March 2022 as TL
2,716 with taking on the account the early payment discount (1/4).
After notification of the Board Decision to the Company, the Company applied to ICTA with the demand
of withdraw of the Board Decision. The application of the Company was tacitly rejected by ICTA. The
Company filed five separate lawsuits in total for the cancellation of the related transactions and
administrative fines. The cases are pending. The investigation process of a similar issue regarding
Turkcell is currently ongoing.
320 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
94
ICTA 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 ICTA has decided to impose an
administrative fine of TL 568 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 ICTA
with the demand of withdraw of the Board Decision. The application of the Company was tacitly rejected
by ICTA. The Company filed a lawsuit for the cancellation of the related transaction and administrative
fine. The Court rejected the case. The Company appealed the decision before Regional Administrative
Court in due time. The Regional Administrative Court rejected the appeal request. The Company appealed
the decision in due time. The appeal process is pending. The investigation processes of Turkcell 3N
Mobile Service Quality (3rd and 4th Term of 2020) and 3N Mobile Service Quality (1st and 3rd Term of
2021) which are similar to this investigation is currently ongoing.
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 March 2018 and numbered 2018/DK-THD/58(Board Decision on
Refunds to Subscribers), dated 12 April 2018 and numbered 2018/DK-THD/116(Refund/Use of
Remaining Amount on Prepaid Lines) and dated 16 April 2018 and numbered 2018/DK-
THD/123(Transferring Non-refundable Amounts on Prepaid Lines as Universal Service Contribution),
(i) The ICTA has decided that the unpaid TL 412 will be transferred to the Ministry, along with the
late fee from April 14, 2020 and inform the ICTA about this transfer.
(ii) The ICTA has decided to transfer the TL 161 that could not be refunded to subscribers regarding
the period between 27 April 2017-31 May 2018, which were not fully paid to the Ministry. The
ICTA has also decided to transfer the refund amounts related to the period between 1 April 2010-
27 April 2017 -along with the late fee from July 28, 2020- and to inform the ICTA about this
matter.
(iii) The ICTA has decided to impose an administrative fine of TL 5,680 in total.
The fine, which was notified to the Company on 2 January 2023, was paid as TL 4,260 (1/4 discounted)
on 31 January 2023 by taking advantage of the early payment discount. Additionally, an application
(İYUK 11) was made to the ICTA with request for re-evalutaion and revocation of the decison and tacitly
rejected by not responding in due time by ICTA. The Company filed two separate lawsuits for the
cancellation of the related transaction and administrative fine. The cases are pending. On the other hand,
the amount stated to have been underpaid in the Board Decision was deposited to the Ministry's account
with reservation on 18 May 2023 with a total amount of 98,333 TL together with default interest and the
ICTA was informed about the payment. The investigation processes of the Turkcell and Superonline
Refunds Investigations and Turkcell Refund Investigation Regarding Prepaid Lines which are similar to
this investigation is currently ongoing.
Sub-Agency/Dealership Investigation
As a result of examinations carried out by the ICTA due to large number of complaints from consumers
who were victimized by being called illegally, the ICTA started an investigation to determine whether
sub-dealers were used. As a result of the investigation, the ICTA decided to impose a TL 834
administrative fine on the Company.
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 321
95
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
37. Commitments and Contingencies (continued)
Sub-Agency/Dealership Investigation (continued)
37. Commitments and Contingencies (continued)
Investigation on Value Added Services (continued)
Additionally, an application (IYUK 11) was made to the ICTA with request for re-evaluation and
revocation of the decision and tacitly rejected by not responding in due time by ICTA. The Company
filed a lawsuit for the cancellation of the related transaction and administrative fine. The Court rejected
the case. The Company appealed the decision before Regional Administrative Court in due time. The
Regional Administrative Court rejected the appeal request. The Company will appeal the decision in due
time.
Fizy Service Investigation
The ICTA 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 ICTA has decided to impose an administrative fine of TL 1,682 on the
Company, (ii) the ICTA has decided to give a warning to the Company due to the implementation of the
double opt-out method in the cancellation process of consumers, (iii) the ICTA 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 TL 1,262 (1/4 discounted) on 24 February 2023 by taking
advantage of the early payment discount. Additionally, an application (IYUK 11) has been made to the
ICTA with request for re-evaluation and revocation of the decision. In addition, the amount to be refunded
under the aforementioned Board Decision is calculated as TL 3,036 and refund transactions were
completed.
Investigation Regarding the Subscription Agreements (Anonymous Lines)
The ICTA initiated an investigation to examine whether the obligations regarding the establishment and
implementation of subscription agreements and open lines were fulfilled and as a result of this
investigation, the ICTA decided to impose an administrative fine of TL 99,132 on the Company. The
decision was notified to the Company and the administrative fine was paid in due time (31 January 2024)
as TL 74,349 (with 1/4 discount) by taking advantage of the early payment discount. In addition, an
application has been made to the ICTA for the revocation of the decision. In regard to Turkcell; although
the legislative provisions of the same nature regarding subscription agreements are not examined, the
examination process of open lines, subscription agreements and number portability investigation, in
which the establishment of the subscription agreement is also examined, is currently ongoing. The
examination process of a similar investigation about Superonline subscription agreements is also ongoing.
Investigation on Value Added Services
The ICTA initiated an investigation to examine whether the obligations imposed by the Board Decision
No. 2016/DK-THD/496 and the "Procedures and Principles Regarding the Protection of Consumer Rights
in the Execution of Value Added Electronic Communication Services" have been fulfilled. As a result of
this investigation, the Company was imposed an administrative fine amounting to TL 9,476 and it was
decided to refund the overcharges collected from the subscribers after 30 June 2017, the effective date of
the Procedures and Principles Regarding Value Added Service, to the subscribers within the framework
of the relevant legislation and the Procedures and Principles to be Applied in within the framework of the
relevant legislation and the Procedures and Principles to be Applied in Refunds to Subscribers approved
by the Board Decision No. 2018/DK-THD/57. The decision was notified to the Company and the
administrative fine was paid in due time (31 January 2024) as TL 7,107 (with 1/4 discount) by taking
advantage of the early payment discount.
In addition, an application was made to the ICTA for the revocation of the decision and the correction of
the mistake in the refund paragraph. As a result of the application, the ICTA has corrected the mistake in
the decision and notified that the said refunds must be made to the subscribers within the framework of
the Procedures and Principles to be Applied in Refunds to Subscribers approved by the Board Decision
No. 2018/DK-THD/57. The relevant teams are calculating the amount to be refunded within the scope of
the Board Decision.
Investigation on Number Portability
The ICTA initiated an investigation to examine whether our obligations under the Number Portability
Regulation were fulfilled after February 2018 and as a result of this audit the ICTA decided to impose an
administrative fine of TL 894 on the Company. The decision was notified to the Company and the
administrative fine was paid in due time (31 January 2024) as TL 670 (with 1/4 discount) by taking
advantage of the early payment discount.
Inspection on SimCard Change
The ICTA initiated an investigation to examine whether our obligations imposed by the Board Decision
No. 445 were fulfilled or not, as it was also the subject of a file of Gaziosmanpaşa Chief Public
Prosecutor's Office, and as a result of this investigation, the ICTA decided to impose a total administrative
fine of TL 375 on the Company. The decision was notified to the Company and the administrative fine
was paid in due time (31 January 2024) as TL 281 (with 1/4 discount) by taking advantage of the early
payment discount.
ICTA – Facility Sharing Investigation
Within the scope of the investigation initiated by the ICTA on Superonline in order to examine the
compliance of the works and transactions carried out in the processes from the submission to the
finalisation of the facility sharing request starting from the January 2020 period with the relevant
legislation, some penalty assessments were included in the Investigation Report prepared by the
Supervisory Board. Our written defenses regarding the Investigation Report were submitted to the ICTA
on 2 June 2023.
ICTA – Investigation of Committed Subscriptions
Within the scope of the investigation initiated by the ICTA on Our Company in order to examine whether
the obligations stipulated in the Regulation on Consumer Rights in the Electronic Communications Sector
and other relevant legislation regarding committed subscriptions have been fulfilled or not, the
Investigation Report prepared by the Supervisory Board has been notified. It is assessed that
administrative fines may be imposed for 9 different violations and for 6 of these determinations, all
amounts unfairly collected from the subscribers should be refunded to the subscribers within the scope of
the relevant legislation. Our written defenses regarding the Investigation Report were submitted to the
ICTA on 22 January 2024.
ICTA – Investigation on Idendity Verification Regulation
Within the scope of the investigations initiated by the ICTA separately for Turkcell and Superonline due
to the fact that the subscription process applied by Our Companies for the purpose of verifying the identity
of the applicant for the types of transactions in the electronic communications sector within the scope of
the Identity Verification Regulation (IVR) is not in compliance with the procedures in the IVR
322 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
96
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 323
97
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
37. Commitments and Contingencies (continued)
ICTA – Investigation on Idendity Verification Regulation (continued)
It was assessed that an administrative fine of 12% could be imposed on Turkcell and Superonline within
the scope of four separate violations within the scope of the relevant legislation due to the violation of the
face-to-face identification verification provisions and the recording of some biometric data such during
the tablet signature process in violation of the Identity Verification Regulation.
On the other hand, the ICTA has also stated that may be take necessary measures for the scope of
provision "...national security, public order or the proper execution of public service and the
implementation of the provisions introduced by laws, to take over the facilities in return for compensation
when necessary, to cancel the authorisation granted in case of non-payment of the authorisation fee within
the specified period or in case of gross negligence.". Our written defenses were submitted to the ICTA on
11 March 2024.
Based on the management opinion, an outflow of resources embodying economic benefits is deemed as
probable on some of the aforementioned lawsuits and investigations, thus, TL 379,519 provision is
recognized in the consolidated financial statements as at and for the period ended 31 December 2023,
under the account of other real operating expense (31 December 2022: TL 4,629). The results of ongoing
investigations, inquiries, lawsuits, and audits may differ from the Group's assessments.
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, TL 128,429 was paid in
November 2019 by reserving our right to take legal actions and legal actions were taken for 2018 fiscal
year. The Court rejected the cases. The Company appealed the decisions before the Regional
Administrative Court. The Regional Administrative Court rejected the appeal request. The Company
appealed the decision in due time. The appeal process is pending. On the other hand, additional TL 13,465
for December 2018 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 Turkcell Ödeme were investigated within the
scope of the Law No. 6493 and secondary legislation issued pursuant to this Law. As a result of the
investigation, an administrative fine was imposed on Turkcell Ödeme in the amount of TL 18,763.
Turkcell Ödeme 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. As a result of the
appeal examination made by the Regional Court of Appeal, the defendant’s appeal request was accepted
and the decision of the first instance court was revoked. Within the scope of the Law No. 7440 on the
Restructuring Some Receivables and Amending Some Laws, a restructuring application has been filed
for the administrative fine which is the subject of the lawsuit. The administrative fine restructured by
paying TL 1,443 on 31 July 2023. The court decided there is no need to make a decision regarding the
essence of the case, due to waiving the case according to the Law No. 7440.
324 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
98
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
37. Commitments and Contingencies (continued)
Other ongoing lawsuits and tax investigations (continued)
While this case was ongoing, the Tax Office sent a payment order for collection of the aforementioned
administrative fine. Turkcell Ödeme 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 Council of State
rejected the appeal request of the Tax Office.
38. 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 2023 and 2022.
The Group provides additional benefits to key management personnel and contributions to retirement
plans based on a pre-determined ratio of compensation.
Short-term benefits
Long-term benefits
Termination benefits
Share based payments
31 December
31 December
2023
393,758
2,672
729
43,010
440,169
2022
337,928
3,326
1,847
-
343,101
31 December
2021
297,725
3,587
618
1,380
303,310
The following transactions occurred with related parties:
Revenue from related parties
Türk Telekom Mobil Iletisim Hizmetleri A.S. (“TT Mobil”) (*)
Enerji Piyasaları İşletme A.S. (“EPIAS”)(*)
Türk Hava Yolları A.S. (“THY”) (*)
Ziraat Bankası A.S. (“Ziraat Bankası”) (*)
"Türkiye Sigorta A.Ş. (""Türkiye Sigorta"")(*)"
Gunes Express Havacilik A.S. (“Sun Express”) (*)
Turk Telekomunikasyon A.S. (“TT”)(*)
Turksat Uydu Haberlesme Kablo TV ve Isletme
A.S.(“Turksat”)(*)
TOGG
TVF IFM Gayrimenkul Insaat ve Yonetim A.S. (*)
Turkiye Vakiflar Bankası TAO (“Vakifbank”)(*)
Turkiye Halk Bankası A.S. (“Halkbank”) (*)
Turkiye Hayat ve Emeklilik A.S.(*)
Ziraat Katilim Bankasi A.S. (“Ziraat Katilim”)(*)
BIST (*)
Sofra
Other
31
December
31
December
2023
1,176,788
300,134
335,102
755,729
354,587
172,160
131,734
89,455
18,485
87,817
80,656
28,259
34,319
75,047
18,075
4,035
32,632
3,695,014
2022
1,110,129
353,776
315,803
134,451
2,199
115,657
93,051
95,996
108,534
72,200
55,127
30,311
27,104
15,316
11,269
3,385
39,517
2,583,825
31
December
2021
-
671,196
241,830
159,661
-
54,698
-
130,338
17,744
4,323
48,814
27,164
35,538
10,678
39,120
3,362
54,370
1,498,836
99
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 325
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
38. Related parties (continued)
Related party expenses
EPIAS (*)
Turk Telekomunikasyon A.S (*)
TT Mobil (*)
Istanbul Takas ve Saklama Bankasi A.S.
("Takasbank") (*)
Turksat (*)
Sofra
Boru Hatlari ile Petrol Tasima A.S. (“BOTAS”) (*)
PTT (*)
Others
31 December
31 December
2023
902,554
1,593,359
1,271,666
449,463
76,415
147,485
63,880
84,608
289,880
4,879,310
2022
3,232,571
1,227,920
1,039,068
152,631
156,930
88,059
75,528
46,221
97,926
6,116,854
31 December
2021
2,736,860
-
-
149
190,541
96,300
63,241
46,921
60,054
3,194,066
(*) Related parties, which TVF directly and / or indirectly has control or joint control or significant influence.
TVF becomes the largest shareholder of Turk Telekom with 61.68% of the shares as of 31 March 2022.
Therefore, companies of Turk Telekom have been reported as related party as of 31 March 2022.
Transactions between the Group and Turk Telekom are related with telecommunication services.
Details of the financial assets and liabilities with related parties as of 31 December 2023 and 2022 are as
follows:
Banks - Time deposits (*)
Banks - Demand deposits (*)
Currency protected time deposit (**)
Receivables from reverse repo (*)
Bank borrowings
Debt securities issued
Lease liabilities
Impairment loss provision
31 December
2023
31,369,567
720,613
6,173,875
-
(7,064,169)
(956,914)
(146,028)
(31,883)
30,065,061
31 December
2022
23,362,376
385,761
2,240,337
6,103,453
(6,789,667)
(589,058)
(206,594)
(34,559)
24,472,049
(*) Related balances are included in cash and cash equivalents.
(**) The Group has converted its currency deposit account in Vakifbank amounting to USD 102,941 and EUR 85,000 into
currency protected TL time deposit accounts (Note 24).
As of 31 December 2023, the amounts of letters of guarantee given to the related parties is TL 333,604
(31 December 2022:TL 226,195).
Details of the time deposits at related parties as of 31 December 2023 and 2022 are as follows:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
38. Related parties (continued)
Details of the time deposits at related parties
Effective
Interest
Rate
4.4%
3.7%
40.7%
Maturity
January - February 2024
January - February 2024
January 2024
31
December
2023
10,090,875
14,879,110
6,399,582
31,369,567
Amount in Original Currency
342,372
455,757
6,376,563
Currency
USD
EUR
TL
Details of the bank borrowings at related parties
Principle Amount
Currency
4,673,500
1,349,880
553,450
104,860
72,206
TL
TL
TL
TL
TL
Effective
Interest Rate
12.2% - 54.4%
41.7% - 42.3%
18.8% - 55.2%
34.8%
28.8% - 49.8%
Maturity
February -
October 2024
January 2024
January –
September
2024
February 2024
August 2024-
April 2025
Details of the debt securities issued at related parties
Principle Amount
Currency
Effective
Interest Rate
900,000
TL
39.0% - 44.5%
Maturity
January –
March 2024
Details of the lease liabilities at related parties
Currency
EUR
TL
Effective Interest
Rate
0.3% - 3.7%
12.5% - 55.25%
Payment
Period
2023 - 2025
2023 - 2036
Interest income from related parties:
31 December
2023
4,964,669
1,356,571
555,411
110,239
77,279
7,064,169
31 December
2023
956,914
956,914
31 December
2023
61,252
84,776
146,028
31 December
2021
329,828
304,760
521,864
1,112
6,909
1,164,473
Ziraat Bankasi
Halkbank
Vakifbank
Ziraat Katilim Bankasi A.S.
326 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
100
31 December
2023
11,341,528
8,674,948
8,080,071
3,273,020
31,369,567
31 December
2022
8,470,287
9,471,793
3,301,326
2,118,970
23,362,376
Vakifbank
Ziraat Bankasi
Halkbank
Ziraat Katilim
Other
31 December
31 December
2023
2,521,142
401,599
575,333
175,320
386
3,673,780
2022
879,363
360,592
320,371
64,685
81
1,625,092
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 327
101
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
38. Related parties (continued)
Interest expense to related parties:
Vakifbank
Ziraat Bankasi
Halk Varlık Kiralama A.S. ("Halk Varlık Kiralama")
Halkbank
Ziraat Katilim
Other
31 December
31 December
2023
719,985
185,581
340,443
17,525
4,531
3,277
1,271,342
2022
532,674
113,559
108,583
3,835
885
999
760,535
31 December
2021
55,342
16,439
12,408
-
102
358
84,649
Revenue from related parties is generally related to telecommunication, call center and other
miscellaneous services. Transactions between the Group and EPIAS are related to the energy services;
transactions between the Group and Sofra are related to meal coupon services; transactions between the
Group and BOTAS are related to infrastructure services; transactions between the Group and Halkbank,
Ziraat Bankasi and Vakifbank are related to banking services; transactions between the Group and PTT
are related to cargo transportation; transactions between the Group and Turksat are related to
telecommunication services and transactions between the Group and BIST are related to stock market
services. Receivables from related parties are not collateralized.
328 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
39. Subsidiaries
The Group’s ultimate parent company is TVF, while subsidiaries, associates and a joint venture of the
Company as at 31 December 2023 and 31 December 2022 are as follows:
Subsidiaries
Name
Turktell
Turkcell Superonline
Turkcell Dijital
Dijital Egitim
Turkcell Satis
Turkcell Teknoloji
Turkcell Gayrimenkul
Turkcell Enerji
Boyut Enerji
Turkcell Finansman
Turkcell Sigorta
Turkcell Dijital Sigorta
Turkcell Odeme
Lifecell Dijital Servisler
Lifecell Bulut
Lifecell TV
Lifecell Muzik
Global Tower
Atmosware Teknoloji
UkrTower
Beltower
Eastasia
Kibris Telekom
Lifecell Digital
Turkcell Dijital Technologies
Turkcell Global Bilgi
Global LLC
Rehberlik
Lifecell Ventures
lifecell
Paycell LLC
Paycell Europe
Yaani
BiP B.V.
BiP A.S.
Beltel
BeST
Turkcell GSYF
W3
Lifetech
Associates
Name
TOGG
Joint Venture
Name
Sofra (*)
Country of
Incorporation
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Turkiye
Ukraine
Republic of Belarus
Netherlands
Turkish Republic of
Northern Cyprus
Turkish Republic of
Northern Cyprus
Turkish Republic of
Northern Cyprus
Turkiye
Ukraine
Turkiye
Netherlands
Ukraine
Ukraine
Germany
Netherlands
Netherlands
Turkiye
Turkiye
Republic of Belarus
Turkiye
Turkiye
Republic of Belarus
Country of
Incorporation
Turkiye
Country of
Incorporation
Turkiye
Business
Information technology, value added GSM services and
entertainment investments
Telecommunications, television services and content
services
Digitalization services and products
Dijital educations
Sales, delivery and digital sales services
Research and development
Property investments
Electricity energy trade and wholesale and retail
electricity sales
Electricity energy trade and wholesale and retail
electricity sales
Consumer financing services
Insurance agency activities
Dijital agency activities
Payment services and e-money license
Development and providing of digital services and
products
Cloud solutions services
Online radio, television and on-demand streaming
services
Radio, television and on-demand streaming services
Telecommunications infrastructure business
Develop software products and services, training
software developers
Telecommunications infrastructure business
Telecommunications infrastructure business
Telecommunications investments
Telecommunications
Telecommunications
Electronic payment services
Customer relations and human resources management
Customer relations management
Directory assistance
Telecommunications investments
Telecommunications
Consumer financing services
Payment services and e-money
Internet search engine and browser services
Providing digital services and products
Providing digital services and products
Telecommunications investments
Telecommunications
Venture capital investment fund
Information technology
Information technology, programming and technical
support
Business
Electric passenger car development, production and
trading activities
Business
Meal coupons and cards
Effective Ownership Interest
31 December
2022 (%)
31 December
2023(%)
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
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
Effective Ownership Interest
31 December
2022 (%)
31 December
2023 (%)
23
23
Effective Ownership Interest
31 December
2022 (%)
33
31 December
2023 (%)
66
(*)As per the decision of our Company's Board of Directors dated April 13, 2023; it has been decided on the acquisition of the 33.3% share of Sofra Kurumsal ve
Ödüllendirme Hizmetleri A.Ş. ("Sofra") by our Company's 100% owned subsidiary Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. ("TÖHAŞ"), which has
33.3% shareholding in it, from Belbim Elektronik Para ve Ödeme Hizmetleri A.Ş., one of the other shareholders of Sofra, for TRY 762,690, by exercising its pre-
emption right pursuant to the existing Shareholders Agreement.
103
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 329
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
40.
Investments accounted for using the equity method
The details of carrying values of investments accounted for using the equity method are as follows:
a) Joint Ventures
Sofra
b) Associates
TOGG
31 December
2023
12,347
31 December
2022
30,018
5,857,271
3,771,069
The movement of investments accounted for using the equity method is as follows:
Opening balance
Shares of profit
Contribution to capital increase
Closing balance
41. Discontinued operations
31 December
2023
3,801,087
1,525,175
543,356
5,869,618
31 December
2022
2,264,587
522,221
1,014,279
3,801,087
As per the Group's Board of Directors' decision dated December 20, 2023; a share transfer agreement was
signed on 29 December 2023 for the transfer of all shares, along with all rights and debts, of Lifecell LLC,
Global LLC, and Ukrtower, which are the Group's wholly owned subsidiaries. The sale is expected to be
completed within a year from the reporting date. As of 31 December 2023, Lifecell, UkrTower and Global
LLC have been classified as a disposal group held for sale and as a discontinued operation. The statement
of profit or loss of a disposal group for the year are presented below:
Revenue
Cost of revenue
Gross profit
Selling and marketing expenses
Administrative expenses
Other operating income/(expense), net
Operating profit
Net finance costs / income
Profit before income tax
Tax benefit /(expense)
Profit/(loss) for the year from discontinued
operations
31 December
31 December
2023
2022
31 December
2021
7,737,020
(4,763,836)
2,973,184
(443,848)
(254,215)
192,786
2,467,907
(206,260)
2,261,647
(291,973)
4,807,496
(3,441,589)
1,365,907
7,665,767
(5,436,914)
2,228,853
(269,901)
(157,104)
92,488
1,031,390
(445,090)
586,300
(75,069)
(509,207)
(258,037)
(4,907)
1,456,702
(695,285)
761,417
(42,690)
1,969,674
511,231
718,727
330 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
41. Discontinued operations (continued)
The major classes of assets and liabilities of the disposal group classified as held for sale as at 31
December are, as follows:
Assets
Property, plant and equipment (Note 12)
Right-of-use assets (Note 16)
Intangible assets (Note 13)
Trade receivables
Deferred tax assets (Note 18)
Inventories
Other non current asset
Financial assets at amortized cost
Cash and cash equivalents
Other current asset
Assets held for sale
Liabilities
Borrowings
Employee benefit obligations
Current tax liabilities
Trade and other payables
Other non current liabilities
Deferred revenue
Contract liabilities
Provisions (Note 32)
Liabilities directly associated with the assets held for sale
Net assets directly associated with disposal group
Amounts included in accumulated OCI:
Foreign currency translation reserve
Reserve of disposal group classified as held for sale
The net cash flows incurred by the disposal group are, as follows:
31 December 2023
5,797,891
1,327,438
3,299,805
269,898
1,315,876
53,042
151,771
736,174
4,017,443
136,432
17,105,770
4,524,403
34,730
4,200
891,447
5,337
17,804
460,244
389,511
6,327,676
10,778,094
6,140,191
6,140,191
Cash flows from operating activities
Cash flows from financing activities
Cash flows from financing activities
Net cash (outflow)/inflow
31 December
2023
4,878,305
(1,842,419)
(826,913)
2,208,973
31 December
2022
2,501,678
(1,920,030)
(476,831)
104,817
31 December
2021
1,610,120
(1,143,775)
(336,496)
129,849
TURKCELL 2023 INTEGRATED ANNUAL REPORT | 331
105
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
TURKCELL ILETISIM HIZMETLERI AS
TURKCELL ILETISIM HIZMETLERI AS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
43. Subsequent events
Turkcell Superonline, a 100% subsidiary of the Group, issued lease certificates in the amount of TL 300,000 with
a maturity of 18 April 2024 on 10 January 2024 and in the amount of TL 300,000 with a maturity of 29 May 2024
on 14 February 2024.
Turkcell Ödeme, a 100% subsidiary of the Group, issued a lease certificate in the amount of TL 200,000 with a
maturity of 8 May 2024 on 1 February 2024, an amount of TL 100,000 with a maturity of 5 June 2024 on 28
February 2024, and an amount of TL 200,000 with a maturity of 13 June 2024 on 14 March 2024.
Turkcell Finansman, one of the Group's 100% subsidiaries, issued a financial bond amounting to TL 143,000 with
a maturity of 16 May 2024 on 17 January 2024.
Turkcell issued financial bills in the amount of TL 2,500,000 on 31 January 2024, with a maturity of 12 July 2024,
in an amount of TL 250,000 with a maturity of 2 August 2024 on 8 February 2024, and in an amount of TL
800,000 with a maturity of 6 August 2024 on 9 February 2024.
Turkcell received loan on 29 January, 2024, in the amount of 38,000 CNY with an interest rate of 5.15%, on 14
March 2024, in the amount of 50,000 EUR with an interest rate of 6M Euribor + 2.29% in accordance with the
loan agreement signed with China Development Bank ("CDB") on 7 August 2020, which was extended until 7
August 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at and for the year ended 31 December 2023
(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest
thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023
unless otherwise stated.)
41. Discontinued operations (continued)
Deferred tax asset related to discontinued operations
Lifecell, which is in the discontinued operation group, has recorded a deferred tax asset of TL 1,177,312
as of 31 December 2023, since it is highly unlikely to benefit from the deductible financial losses
amounting to TL 6,540,624 (31 December 2022: TL 5,816,742) by making a taxable profit in the future
(31 December 2022: TL 1.047.014). The mentioned financial losses are of unlimited duration. The group
has used business plans for the following years when determining the amount of deferred tax assets
available for use and evaluates that accumulated losses can be utilized within 4 years as of 31 December
2023.
As of 31 December 2023, sensitivity analysis conducted by reducing the key inputs of the business plans,
namely the subscriber count and the forecasted revenue per subscriber, by 5%, resulted in an extended
projected utilization period by one year.
42. Cash flow information
Net financial liabilities reconciliation:
Balance at 1
January 2023
Cash inflows
Cash outflows
Other non-cash
movements
Transfer to asset
held for sale
Inflation
adjustment
Balance at 31
December 2023
Balance at 1
January 2022
Cash inflows
Cash outflows
Other non-cash
movements
Inflation
adjustment
Balance at 31
December 2022
Debt securities
issued
(31.534.111)
(7.824.254)
7.367.659
Loans
(52.169.081)
(62.689.793)
59.288.115
Lease
liabilities
(5.034.193)
-
4.121.990
Total
(88.737.385)
(70.514.047)
70.777.764
Derivative
Assets, net
3.100.189
(7.749.663)
4.756.730
Total
(85.637.196)
(78.263.710)
75.534.494
(15.440.923)
(22.663.080)
(5.561.514)
(43.665.517)
2.413.278
(41.252.239)
2.744.051
1.780.352
4.524.403
4.524.403
15.563.673
25.701.123
2.265.777
43.530.573
(830.139)
42.700.434
(31.867.956)
(49.788.665)
(2.427.588)
(84.084.209)
1.690.395
(82.393.814)
Debt
securities
issued
(36.292.848)
(4.472.292)
5.489.265
Loans
(55.389.833)
(53.139.280)
47.130.897
Lease
liabilities
(7.865.357)
-
4.310.581
Total
(99.548.038)
(57.611.572)
56.930.743
Derivative
Assets. net
5.575.149
(5.961.522)
5.264.741
Total
(93.972.889)
(63.573.094)
62.195.484
-
-
-
-
-
-
(12.025.739)
(15.506.487)
(4.597.576)
(32.129.802)
(2.413.270)
(34.543.073)
15.767.503
24.735.622
3.118.159
43.621.284
635.091
44.256.375
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106
107
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES
Address
Abbreviation
Description
Glossary
Our Offices
Location
ADANA PLAZA
SAKARYA NDC
ANKARA PLAZA
BAŞKENT NDC
Turhan Cemal Berikel Bulvarı No: 212 Seyhan/Adana
Bahçelievler Mah. Cumhuriyet Cad. Kamelya Sok. No:14 –Adapazarı/ Sakarya
Eskişehir Yolu 9.Km No:264 Pk.06510 Söğütözü /Ankara
Başkent İvedik Mah. 1323. Cadde No:37 Yenimahalle/Ankara
ANKARA VERİ MERKEZİ
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
Şükrü Paşa Mah. Kıyık Cad. Hilly Otel Yanı No:254 Edirne
Ilıca yolu Organize Sanayi Bölgesi 4. Sokak Erzurum
Kocaoğlan Mah. Demokrasi Bulvarı No:185 / 1 Şahinbey/Gaziantep
Güzelbirlik Mah. Yunus Emre Cad. No:11-B Güzelburç/Hatay
KÜÇÜKYALI PLAZA /GENEL MÜDÜRLÜK
Aydınevler Mahallesi İnönü Caddesi No:20 B Blok 34854 Maltepe/İstanbul
KARTAL VERİ MERKEZİ
Topselvi Mahallesi Dipçik Sokak No:31 Kartal/İstanbul
TEPEBAŞI PLAZA
MAHMUTBEY NDC
Meşrutiyet Cad.No:71 Tepebaşı 34430 Beyoğlu/İstanbul
Mahmutbey Mah İnönü Caddesi No:89 Bağcılar/İstanbul
DUDULU VERİ MERKEZİ
Dudullu OSB Nato Yolu 4. Cadde No:1 Ümraniye/İstanbul
İZMİR PLAZA
Kazım Dirik Mah. 367/7 Sokak No:12 Bornova/İzmir
İZMİR VERİ MERKEZİ
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 VERİ MERKEZİ
Gebze OSB, Tembelova Mevkii Mah. 3300 Sok. No: 3314 Gebze/Kocaeli
KONYA OFİS
KONYA NDC
MALATYA NDC
MERSİN PLAZA
MUĞLA PLAZA
SAMSUN 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
Mimar Sinan Mah. 160.sok.No:18 PK:55200 Atakum/Samsun
AVRUPA VERİ MERKEZİ
Karaağaç OSB Mh.48.Sok.No: 1/1 Kale Kilit Yanı Kapaklı/Tekirdağ
TRABZON PLAZA
VAN PLAZA
Mısırlı Mah. Hasan Turfanda yolu No:3 Çukurçayır/Trabzon
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
m-TOD
M2M
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 communication
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 structure
being used in Europe, Japan and various other countries
(The GSM Association - Global System for Mobile Communications) The GSM Association is
a community consisting of mobile operators and telecom-related companies with the aim of
standardizing and developing the Mobile Telecommunications Sector
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
received 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
Association of Mobile Telecommunication Operators
Machine to Machine is the general name of the technology that allows devices to exchange
information and conduct transactions without human intervention
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TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALMANUFACTURED CAPITALINTELLECTUAL CAPITALSOCIAL CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELLNATURAL CAPITALAPPENDICES Abbreviation
Description
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 Aggrega-
tion
Tbps
TÇM
TODİEK
Togg
TTK
IFRS
UN
UN WEPs
UNGC
WBCSD
WEF
(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
technology standards and technology producing companies in relation to operator requirements
(Net Promoter Score) The score that measures whether or not customers recommend the products
they use to others
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),
which 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
constituted 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
Türkiye'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
336 | TURKCELL 2023 INTEGRATED ANNUAL REPORT
Contact
Turkcell İletişim Hizmetleri A.Ş.
Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İsmet İnönü Caddesi
No:20 Küçükyalı B Blok Ofispark - Maltepe / İSTANBUL
Registration No: 304844
www.turkcell.com.tr
dahaiyibirdunya@turkcell.com.tr
Reporting Advisor & Design:
www.kiymetiharbiye.com
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 consti-
tute 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 docu-
ments 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.
TURKCELL CREATING VALUEFINANCIAL CAPITALHUMAN CAPITALSTRONG CORPORATE GOVERNANCEABOUT TURKCELL