NUH ÇİMENTO INTEGRATED ANNUAL REPORT 2022

REPUTABLE PASTSTRONG FUTURE

2022

COMPANY INFO
Trade Name
Nuh Çimento Sanayi A.Ş.
Körfez Trade Registry Directorate
5097
Mersis Number
0632-0009-7680-0012
Capital150.213.600 TL
Tepecik Tax Office6320009768
AddressHacı Akif Mah. D-100 Karayolu Cad.
No: 92 Hereke 41800 Körfez Kocaeli
Phone+90 262 316 2000
Borsa Istanbul Ticker CodeNUHCM
Web Address
www.nuhcimento.com.tr

CONTENTS
ABOUT OURREPORTMESSAGE TO
01. OURSTAKEHOLDERS

SOCIAL
07. OURPERFORMANCE

Message from the Chairman

08

Occupational Health and Safety

56

Message from the CEO

10

Disaster Preparedness and Response

58

Our Founders Passed Away to Eternity

12

Employment

59

Training and Development

61

CORPORATE
02. OURPROFILE

03.
04.
05.

Our Company

17

ENVIRONMENTAL
08. OURPERFORMANCE

Our Products

17

Climate Change and Energy Management

18

67

Nuh Çimento Group Companies

Materials Management

74

Water and Wastewater Management

76

Waste Management

78

Protection of Biodiversity

80

NUH ÇİMENTO
WITH NUMBERS
Financial Performance Summary

22

Our Capitals and The Value We Created

24

STRATEGY AND
MANAGEMENT
Our Corporate Values

28

Corporate Governance, Ethics and Compliance

29

External Factors and Global Trends

30

SUSTAINABILITYMANAGEMENTOur Sustainability Milestones

34

Our Strategy and the 2053 Net Zero Carbon

36

Roadmap
Sustainability Management Structure

37

Materiality Assessment and Stakeholder

38

Engagement
Our Sustainability Priorities

40

Sustainability Impacts Along Our

41

Value Chain
Our Sustainability Targets

42

Sustainability Practices and45

Collaborations

ECONOMIC
06. OURPERFORMANCE
Our Contributions to the Economy

48

Growth in International Markets

50

Digital Transformation

52

09. ANNEXES

Our Integrated Management Systems

84

Corporate Memberships

84

Financial Performance Summary85

Performance Indicators

86

CMB Sustainability Principles Compliance
Report92

Agenda of the Ordinary General Assembly
Meeting96

Legal Explanations

97

The Consolidated Financial Statements andthe Independent Auditor’s Report Prepared
as of December 31, 2022

113

Corporate Governance Compliance Report

200

Corporate Governance Information Form

203

Profit Share Distribution

208

Report Contacts

210

ABOUT OURREPORT
In the sustainability journey of Nuh Çimento, which extends from its established past into a strong future, we also have theopportunity to present our economic, environmental and social performance for the period of 2022, the values we have created forour stakeholders with our sixth integrated annual report, which we have transmitted with our goals and actions.
Our aim with this report is to ensure that our stakeholders can easily understand our company and our processes and to facilitate
their ability to evaluate the measurement, monitoring and improvement efforts we carry out to manage our effects arising as aresult of our activities. This report, which we prepare regularly every year, is an important communication tool through which weshare the steps we have taken to manage our effects.

The Scope of Our Report
In our works with our managers, we havetaken the production of clinker and cement
as base, which are the main business areasof Nuh Çimento, on the determination ofstrategic issues. The information containedin this report covers the activities of NuhÇimento at the Hereke facility without any
restrictions between December January
1, 2022 - Dec. 31, 2022, unless otherwise
stated. Our financial data included in
the report are consolidated information
belonging to Nuh Çimento Group. Nuh
Beton A.Ş. and Nuh Yapı Ürünleri A.Ş. are
included in the financial data. In our report,
we include data related to all important
issues for the last three years, in terms of
tracking data trends.
We have prepared our report Global
Reporting Initiative in accordancewith the “Essential” option of the GRI
Standards. When determining ourstrategic sustainability issues and creating
the content of our report, we took into
account the principles of clarity, balance,comparability, completeness, sustainability
context, timeliness and verifiability of thisstandard. GRI Content Index can be foundon our website.
Our performance indicators, Sustainability
Accounting Standards Board comply with
the indicators contained in the SASB*
Construction Materials Standard.
In our report, we propose our Integrated
Value Creation Business Model throughthe six capital elements Integrated
Reporting Framework first proposed by theInternational Integrated Reporting Council

Our Compliance with the Indicators of the SASB
Sustainability Accounting Standards Board
SASB Titles

SASB Construction Materials Standard
Performance Indicators

The Place of NuhÇimento Works in
the Report

Occupational
Health and
SafetyTotal recordable accident rate

Occupational Healthand Safety

Greenhouse Gas
Emissions

Scope 1 Emissions

Climate Change andEnergy Management

Air Quality

Air pollutants such as NOx and SOx

Climate Change andEnergy Management

EnergyManagement

Total energy consumed; electricity, alternative
resources and renewable resources

Climate Change andEnergy Management

Product
Innovation

Products that save energy, water and materials
during production and use

Climate Change andEnergy Management

Water
Management

The total water intake and the portion ofrecycled and reused water in this amount

Water and
Wastewater
Management

Waste
Management

The ratios of hazardous waste and recycled
waste in wastes caused by activities

Waste Management
Materials
Management

Effects ofBiodiversity

Environmental management policies related toactive work areas; affected and restored areas

Protection of
Biodiversity(Performance Results for All Indicators are located in
section Our Sustainability Targets. )Our Future Report
We plan to publish our seventh
integrated report in the firstquarter of 2024, in which we
aim to convey our activities andsustainability performance for2023.

You can reach the desired pages on the contents
page by clicking the titles
You can return to the contents page by clicking
the house icon included on all pages.
You can reach the related source by clicking on
the coloured and underlined titles throughout
the report.

(IIRC) in 2013.
* The Sustainability Accounting Standards Board SASB and the International Integrated Reporting Council IIRC mergedin 2021 under the name of the Value Reporting Foundation VRF. In 2022, VRF was consolidated under the International
Sustainability Standards Board (ISSB), established by the International Financial Reporting Standards Foundation (IFRS).

4

Nuh Çimento 2022 Integrated Annual ReportOur Support to the United Nations Sustainable Development Goals
We have included our projects and applications serving 12 of the United Nations Sustainable Development Goals in our report. 		
We are committed to always being a follower of these global goals and giving priority to activities that will support them.

SDGs

Description of the Sustainable Development Goal

Location of Nuh Çimento
Works in the Report

SDG 3: To ensure a healthy and quality life at any age

Occupational Health and Safety

SDG 4: To provide quality education based on inclusivity and equity and topromote lifelong learning opportunities for everyone

Training and Development

SDG 6: To ensure accessible water and wastewater services for everyone andsustainable water management

Water and Wastewater Management

SDG 7: Ensuring access to affordable, reliable, sustainable and modern
energy for everyone

Climate Change and Energy
Management

SDG 8: To support stable, inclusive and sustainable economic growth, fulland productive employment and decent jobs for all

Employment

SDG 9: To establish durable infrastructures, to support inclusive andsustainable industrialization and to strengthen innovation

Climate Change and Energy
Management

SDG 11: To make cities and human settlements inclusive, safe, durable andsustainable

Climate Change and Energy
Management

SDG 12: To ensure sustainable production and consumption patterns

Materials Management

SDG 13: Taking urgent action to combat climate change and its effects

Climate Change and Energy
Management

Disaster Preparedness and Response

Disaster Preparedness and Response

SDG 14: To protect and sustainably use the oceans, seas and marine
resources for sustainable development

Water and Wastewater Management

SDG 15: To protect, improve and support the sustainable use of terrestrial
ecosystems; to ensure sustainable forest management, to combat
desertification; to stop and reverse land degradation, to prevent biodiversity
loss

Waste Management

SDG 15: Strengthening the implementation tools and revitalizing the global
partnership for sustainable development

Water and Wastewater Management

Protection of Biodiversity

Protection of Biodiversity
Corporate Memberships

5

OUR MESSAGE TOSTAKEHOLDERS

01

MESSAGE FROMTHE CHAIRMAN
Dear Stakeholders,
As Nuh Çimento, we continued to create value for all our stakeholders and achieve financial success in 2022 with the principles of
responsible consumption and production. Leaving behind a difficult pandemic period, we ensured a rapid transition to the new normal
by showing sensitivity to the health of all our business partners, especially our employees.
While Nuh Çimento Group is growing economically, we are increasing our sensitivity to environmental and social issues every day,
implementing projects based on the UN Sustainable Development Goals and continuing our work for a more livable world. Our
company, which supports its location and advantage with high and efficient technologies, is preparing our facilities for the future.
We spend a significant part of the added value we produce on investments that will provide a competitive advantage and reduce
environmental impacts.

We Continued Our Contribution to the Economy with Our Great Exports
The year 2022 was a year in which we
worked at full capacity at Nuh Çimento
thanks to our deep-rooted experienceand strong export infrastructure, andwe continued to observe high sales andexport figures. We continued to direct
our sector and strengthen the economyof our country. We have also maintained
our success of being one of the largest
taxpayers in Kocaeli in 2022. As NuhÇimento, a company with one hundred
percent domestic capital, we are proud tobe the 122nd on the list of the Top 1,000
Exporters of Turkey in 2021 of the Turkish
Exporters Assembly. As of the end of2022, we realized 18 percent of the totalexports of the Turkish cement sector as
Nuh Çimento.
Our biggest goal towards sustainability
is to make efficient production with thebest possible technologies in European
standards and to reach net zero of ourcarbon emissions by 2053. In line with our
net zero carbon target, we are taking our
responsibility in the global fight against
climate change while increasing our
production and exports with our five-fold
adaptation package consisting of Green
Factory, Green Fuel, Green Electricity,
Green Raw Materials, Green Cement, andforming our sustainability roadmap.
We are proud to be a Turkish company
hosting and leading the project for theconversion of long-lived diesel rock trucks
to electric, which is a first in the world andis closely followed both in our country andinternationally, which we have realized incooperation with ABB. The stakeholders
that we carry out the project with andwho contribute to the project will be able
to switch to mass production of tried8

Nuh Çimento 2022 Integrated Annual Reportand approved rock trucks and for theircompanies and will be able to make a large
amount of profit and contribution.
As Nuh Çimento, we have placedsustainability, transition to a circular
economy, industry 4.0 and carbon reduction
at the center of all our investments andprojects. We managed to reduce our carbon
footprint this year as every year with theuse of clean energy, efficient production
processes and innovative products, and at
the same time we supported the circular
economy by using waste as an alternative
input material to natural resources.
We have a big goal to get all the electricity
we consume from renewable resources. In
addition to the existing waste heat recovery
facility and hydroelectric power plant, we
will implement our studies on electricity
plants that will run on wind and biofuel in ashort time.
Through our Nuh Çimento Education and
Health Foundation, we continue to support
the community we live in in the fieldsof health, education, culture and sports,
and to provide scholarships to university
students, whose numbers increase every
academic semester.
In our integrated annual report, which wehave prepared based on global standards
such as GRI Standards, Integrated
Reporting Framework and SASB Standards,
you can review the values we have createdfor our dealers and customers, employees,society and our country, as well as theactivities we have carried out to ensure
the sustainability of our business and thenatural environment, especially for our
stakeholders.

Our founders passed away to eternity
which we remember with gratitude andmercy, our esteemed shareholders, oursuccessful business partners, we willcontinue our journey, which we started withthe efforts of our valued employees andour common values that keep us together
as Nuh Çimento that produces, earns andalways shares its values that it created. I
would like to express my gratitude to all
our stakeholders, especially our employees
who contributed to the achievements thatNuh Çimento has achieved and shared,
for their valuable contributions, trust andcommitment to Nuh Çimento.

Kindest regards,
Tevfik BİLGİN
Chairman of the Board

9

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSMESSAGE FROM THE CEO
Dear Stakeholders,Dear Employees and Business Partners,
The pandemic period that lasted for around two years and the climate change problem, the effects of which were felt more and more
every day immediately after, kept its place on the world’s agenda intensively with the COP 27 Climate Conference held in Egypt inNovember 2022.
Awareness of these issues is rising rapidly both in society and in the business world. We are at a time when international negotiations
on reducing greenhouse gas emissions are accelerating, planned regulations such as the Carbon Tax at the Border, brought up by theGreen Deal, are gaining momentum, bold commitments are being made, and fundamental changes in the energy system are beginning.
As Nuh Çimento, we continue to produce by taking climate, energy, innovation and social inclusion issues into our focus and by ouractivities in which we take the lead on these issues.

We have Created our Five-Fold
Adaptation Roadmap to Fight
Climate Change!
We have put sustainability, transition
to a circular economy, industry 4.0
and carbon reduction at the center of
all our investments and projects forthe upcoming period. Our biggest goal
towards sustainability is to maintainefficient production with the best possible
technologies in European standards andto reach net zero carbon emissions parallelto Europe. In line with our net zero carbon
target, we are acting in accordance with
our sustainability roadmap consistingof Green Factory, Green Fuel, Green
Electricity, Green Raw Materials, Green
Cement, while increasing our productionand exports, we continue to protect ourenvironment and climate.
For this purpose, we are converting our
10 rock trucks with a capacity of 160 tons,
which have a 30-year service life, froma diesel engine to electric ones with the
project partnership we have initiatedwith ABB, we aim to save one million
liters of diesel fuel per year and prevent
around 2,500 tons of carbon emissions
per year by making this battery-poweredand 100 percent electric conversion for
the first time in the world by converting
all rock trucks to fully electric vehicles.
With our project, which has been ongoingsince 2018 and includes the conversionof our construction machinery to electricmotorized, we have prevented theemission of a total of 992 tons of carbon
release into the atmosphere by the end of2022. Our project is an example for boththe mining and cement sectors.
With the R&D activities we haveconducted, we continue to reduce ourcarbon footprint with new generation
10

Nuh Çimento 2022 Integrated Annual Reportgreen cements having lower clinker ratio.
Only this year, the amount We haveinvested on R&D for the development ofGreen Cement has exceeded 10 million TL.
Thanks to our low clinker content products,
we saved 265 thousand tons of clinker in
2022 and reduced our carbon footprint byaround 230 thousand tons.
In addition to these studies, thanks tothe collaborations we have made withcompanies from different sectors, we use
waste as an alternative input material tonatural resources and support the circular
economy. In 2022, we became the solution
partner for the wastes of 69 companies
from 12 different sectors. We have achieved
the recovery of approximately 417 thousand
tons of waste and have made savings ofapproximately 105 million TL.
As Nuh Çimento, we have prevented theformation of 70 thousand tons of carbon
equivalent greenhouse gases in 2022 with
our energy efficiency investments suchas electricity generation from waste heat,hydroelectric power plant investment
and renewable energy resources, which
demonstrate our sustainable consumption
and production approach, and we havesaved 315 million TL.
2022 has been a year in which we havecrowned all our achievements withawards. We have been awarded: “LargeScale Sectoral Environment Award”
at Kocaeli Chamber of Industry 28thŞehabettin Bilgisu Environment Awards,“Sustainability Awareness Honor Award”
at Economist Anadolu 500 Awards, “Valueof Kocaeli” and “Sectoral Performance
Construction and Building Sector GrandAward” by Kocaeli Chamber of Industry.

Our Employees are the Priority
in Social Sustainability
We strengthened the occupational
health and safety culture of ouremployees with the training andleadership activities we carried out incooperation with the Cement Industry
Employers’ Union. We have offeredcomplementary health insurance toall of our field employees in our groupcompanies.
With Nuh Akademi we have
implemented in 2022, we havecontinued to support the training anddevelopment activities of our employees
as a necessity to maintain our leadershipin our sector. Thanks to the Internal
Trainer System with Nuh Akademi, we
aim to add more value to our institution
and our sector with the internal trainers
we have trained by nurturing a dynamic
organizational culture that encourages,
learns and shares.
In the analysis conducted by Great
Place To Work®, which includes 75
companies that have a Great Place toWork Certificate in Turkey, we are happy
and proud to take the second place inthe 500+ category of the List of theBest Employers of Production for 2022.
In addition, as a result of the 2022 Best
Millennials List evaluations conductedwith the participation of generation
Y employees, we were included in thelist of the Best Great Workplaces For
Turkey’s Millennial Employees. We
would like to thank all our stakeholders
who have a great share in this success,which registers the adaptation we
provide to the rapidly changing world
and the importance we attach to the
new generations.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILEAND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCESOCIAL
07. OURPERFORMANCE

Kindest regards,
K. Gökhan BOZKURTCEOOUR ENVIRONMENTALPERFORMANCE

In our sixth integrated annual report,
which we have prepared on the basis ofglobal standards, we continue to share
our economic achievements as well as our
successful work in environmental and social
areas with our stakeholders. The success of
our company is the result of the efforts ofall our employees and business partners,
especially our stakeholders, and I would
like to express my gratitude to all of you.
I wish you a year in which we will achieve
new feats by feeding off the strength of ourcooperation and continue to share them
together.

09. ANNEXES 08.

As one of the industrial giants of ourcountry, we have realized 18 percent of theexports of the Turkish Cement Industry
with a total export sales of 4 million 550
thousand tons in 2022, thanks to ourmultidimensional strategic vision, highcustomer satisfaction and the level ofoperational excellence we have achieved.
We announced a net profit of 2 billion 87
million TL.

03.

Continuing to Grow Sustainably
with Exports

11

OUR FOUNDERS PASSED AWAY
TO ETERNITY
We are taking confident steps in their footsteps by protecting the values adopted by our
founders. We commemorate the founders of Nuh Çimento with respect and gratitude.

12

Nuh Eskiyapan
1961

Mustafa Arıkan
1967

Ahmet Haskınacı
1970

H. Mehmet Küçükçalık
1973

Ahmet Özkan
1990

Kemal Yurtbilir
1991Şaban Göbülük
1995

N. Mehmet Küçükçalık
2002

Mustafa Alikişoğlu
2012

Hacı Ahmet Paralı
2013

Alaeddin Küçükçalık
2016

Levent Yurtbilir2017

Nuh Çimento 2022 Integrated Annual ReportOUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCE

Muhittin Özkan
2005
N. Mehmet Baldöktü
2006
Burhan Dinçbal
2008
Muharrem Eskiyapan
2009

Enver Paralı
2020
AND
04. STRATEGYMANAGEMENTŞaban Diri
1988

05. SUSTAINABILITYMANAGEMENT

Hilmi Haskınacı
1988

ECONOMIC
06. OURPERFORMANCE

H. Mehmet Özkan
1979

09. ANNEXES 08.

Ahmet Eskiyapan
1975

13

03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSOUR CORPORATE PROFILEAs Nuh Çimento Group, we have been contributing to production,
employment and the economy of our country with its long-establishedhistory since 1966, we continue to offer many products and services
such as clinker, cement, ready-mixed concrete, lime, aerated concrete,
aluminum paste and milk of magnesia in the construction industry inhigh quality and build a strong future.

02

THE FACTORY WITH THE HIGHEST PRODUCTION CAPACITY UNDER A SINGLE ROOF IN TURKEY AND
EUROPETHE COMPANY EXPORTING THE HIGHEST CLINKER AND CEMENT OF ALL TIMES IN THE TURKISHCEMENT INDUSTRY FROM A SINGLE LOCATIONTHE CEMENT COMPANY WITH THE HIGHEST EXPORT TO THE USA
TURKEY’S FIRST CEMENT FACTORY TO WIN ENVIRONMENTAL FACILITY AWARD
THE PROJECT TO CONVERT DIESEL ROCK TRUCKS TO ELECTRICITY WITH THE COOPERATION OF ABB AS
A FIRST IMPLEMENTATION IN THE WORLD16

Nuh Çimento 2022 Integrated Annual ReportTO OUR
01. MESSAGE
STAKEHOLDERS

As Nuh Çimento, we have the highest production capacity facility located in a single
location in Turkey and Europe, and have been continuing to contribute to the economyof our country and sustainable growth with equipped employees, high quality standards
and one hundred percent customer satisfaction target for 57 years. As Nuh Çimento, wewere listed on the Borsa Istanbul in 2000 and we continue our activities with a public
clearance rate of 16.21 percent by the end of 2022. Founded in 1966 in Kocaeli-Körfez, eastof the Marmara Region surrounding Istanbul, where Turkey’s highest cement consumption
takes place, and starting production in 1969, our company offers clinker, cement and otherbuilding materials to domestic and foreign markets with our 57,000 m2 port adjacent to
the factory, our wide and powerful dealer network and the extensive ready-mixed concrete
facilities of our subsidiary Nuh Beton, which provides competitive advantage in exports.

CORPORATE
02. OURPROFILEOUR COMPANY

CEM I 42,5 R

CEM II/B-S 42,5 R

CEM I 42,5 R SR5

CEM V/A (S-P) 32,5 N

CEM I 52,5 N

Oil Well Cement, Class G, HSR

CEM II/A-LL 42,5 R

Ordinary, SRC, Low Alkaline,
Low Cr (VI) Clinker

CementCementCementCementCEM II/A-S 42,5 R
CementCementCementCementClinker

Milled Blast Kiln Slag
Mineral AdditiveAND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCE

Portland, where clinker, the main raw material of cement, is also produced in accordancewith different standards, our sulfate-resistant, low alkali content, low Cr (VI) content
products and blast kiln slag, which is included under the name of mineral additive, arealso among our product varieties. All of our products are continuously inspected andcertified by accredited organizations where they are produced in accordance with therelevant standards.

SOCIAL
07. OURPERFORMANCE

We have a wide range of cement and mineral additives that are used in all construction
element productions, from high-rise structures to oil wells, tunnels to port and offshore
structures, screed and plaster concretes to underground water pipes, which are performed
in many countries of the world and in different climates. Thanks to our product range,
we meet the cement and mineral additive demands of our domestic and internationalcustomers who produce prefabricated concrete elements, building products, screed andplaster making, floor reinforcement / reclamation and pile applications, tiles and glazes,
especially in ready-mixed concrete production, as well as selling high-quality clinker
varieties that meet the different technical needs of cement manufacturers from different
countries of the world. We carry out all our productions in accordance with the standardsof many different countries around the world, alongside with Turkish and European
Standards.

OUR ENVIRONMENTALPERFORMANCE

Our products, used in infrastructure constructions such as many different superstructuresand reinforced concrete underground water pipes from high-rise structures to bridges,
paving concretes to port constructions and offshore structures, are preferred by ourcustomers all over the world in the construction industry and all its sub-sectors.

09. ANNEXES 08.

OUR PRODUCTS

03.

In addition to our production power supported by our expertise, experience and technology,
we continue to work and produce with all our might in order to maintain our competitive
position in our sector with our strong corporate culture and competent human resources.

17

NUH ÇİMENTO GROUP COMPANIESOur Group Companies

Field of activity

Share (%)

Type of Partnership

Nuh Beton A.Ş.

Ready-Mixed Concrete Production and Marketing

100

Affiliate Partnership

Nuh Yapı Ürünleri A.Ş.

Lime, Aerated Concrete Production andMarketing100

Affiliate Partnership

Nuh Gayrimenkul İnşaat
A.Ş.

Construction and Contracting Works

100

Affiliate Partnership

Navig Holding Trade B.V.

Import and Export

100

Affiliate Partnership

Çim-Nak Taşımacılık Ltd.
Şti.

Exploration, Loading, Transportation, Ship
Agency99.90

Affiliate Partnership

Nuh Agro Tarım A.Ş.

Cultivation of Medicinal, Healing and Aromatic
Products

85

Affiliate PartnershipÇimpaş Çimento ve İnşaat Cement Marketing
Malzemeleri Paz. A.Ş.

12.07

Affiliate

Cementos Esfera S.A.

Cement Production (Spain)

10

Affiliate

Oyak Çimento FabrikalarıA.Ş.

Cement Production

4.55

Long-term Security

Changes in the Reporting Period
There were no significant changes in the organization and partnership structure during the reporting period.

Nuh Çimento Partnership Structure

23.34%

44.13%

35,063,288

66,283,864

Other *

16.32%

24,515,195

Partaş Tekstil İnşaat
San. ve Tic. A.Ş.

Nuh Ticaret ve
Sanayi A.Ş.

16.21%

24,351,253
Public*Stakeholders whose partnership share is below 5 percent are non-public stakeholders. (31.12.2022)
18

Nuh Çimento 2022 Integrated Annual Reportİstanbul•

It has strengthened its fleet with an additional eleven transmixers, nine mobile pumps and five loaders.

•

It made seven tow truck and trailer investments to provide
aggregate supply support to its facilities.

•

By implementing the Management with Goals (OKR) system
as of 2022, it has transitioned to a digital platform where
employees can create and track their goals. The targets,
which were followed with an agile and transparent structure,benefited business efficiency with the feedback received
through the system.

Kocaeli
Sakarya

Bursa

Facilities

Equipment
Equipped with Satellite Tracking Systems

199
61
12

Connected to Each Other
via Online Data Lines

11

Trans
Mixer
MobilePump

Fully Equipped
Facility

Computer Controlled
and Fully Automated16

Stationary
Pump

Concrete
Batching Plant

Nuh Yapı Ürünleri
Nuh Yapı Ürünleri A.Ş, which was established in 1995 andis one of the leading manufacturers in its sector with its
production capacity, product quality, advanced management
and organizational structure; is a member of Lime Industrialists’
Association and the Aerated Concrete Manufacturers’
Association of Turkey. Nuh Yapı, which owns the first aluminum
paste production facility in Turkey, is producing 100 percent
domestic aerated concrete, and holds an ISO EN 9000 Quality
Management System Certificate in lime and aerated concrete
production since 2000.

Locations

Kocaeli• Aerated Concrete Thermal Insulation Plate- Thermocube™
• Aluminum Paste- Alupore™
• Alpha Plaster and Anhydride Products- Nuh Alçı™

Facilities
•
•
•
•
•
•
•

Lime Factory
Aerated Concrete Factory
Aerated Concrete Glue Production Plant
Aluminum Paste Production Plant
Alpha Plaster Production Plant
Magnesium Oxide Production Plant
Milk of Magnesia Production Plant

Nuh Yapı in 2022

HerekeÜrünlerMarkets

Our Trademark Registered Products We have
Developed in R&D Studies:

•
•
•
•

Thermocube
Aerated Concrete
Lime
Aluminium Paste

Turkey, Italy, France, Denmark, Belgium, Albania, theNetherlands, Ukraine, Bulgaria, Greece, Romania and the TRNC

• In 2022, maintaining the sales amounts compared to theprevious year, sold 471.285 m3 aerated concrete and 180,667
tons of lime.
• while increasing its turnover by 187 percent in 2022 comparedto the previous year, it also increased its profitability by around
twice and the company’s profit reached TL 72 million.
• by implementing the Management with Goals (OKR) system
as of 2022, it has transitioned to a digital platform where
employees can create and track their goals. The targets, whichwere followed with an agile and transparent structure, benefited
business efficiency with the feedback received through thesystem.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

While increasing its turnover by around four times in 2022
compared to the previous year, increased its profitability
seventeen times and reached 260 million TL.

03.

•

LocationsAND
04. STRATEGYMANAGEMENT

Increased the amount of sales by 11 percent compared to theprevious year and reached 1,834,739 m3

05. SUSTAINABILITYMANAGEMENT•ECONOMIC
06. OURPERFORMANCE

Nuh Beton completed the year 2022 with success well above thebudget figures both in terms of production and financial results
and continued to maintain the operational and financial positive
momentum it has achieved in recent years.

SOCIAL
07. OURPERFORMANCE

Nuh Beton A.Ş, one of the founding members of the Ready Mixed
Concrete Association of Turkey, has been providing world-classservices in the Marmara Region since 1987 with its extensive
facilities, modern power plants, large vehicle fleet, expert staff,
integrated computer network and full automation.

OUR ENVIRONMENTALPERFORMANCE

Nuh Beton in 2022

09. ANNEXES 08.

Nuh Beton

19

NUH ÇİMENTO WITH NUMBERS
We continued to create value for our stakeholders with our export
records, which we continue to renew in 2022. We have achieved the TL
2.10 billion profit we announced by contributing to the development of
our society and protecting our ecological environment with an approachthat is a requirement for sustainable success. According to the financial
statements dated December 31, 2022, the asset size of Nuh Çimento is
6.94 billion TL.

03

2022
57,000 m

2

Port Facility Area

FINANCIALPERFORMANCE SUMMARY
Total Assets (TL Million)

2022
2021
2020

50+

Number of Countries
We Export To

4.6 million tons

6,942,826
3,473,236
2,518,122

Equity Resources (TL Million)

2022

4,542,449

2021

2,171,850

2020 1,798,886

Clinker Production Capacity
Net Profit Margin (%)

95.88%

Capacity Utilization

4,472,100 tons/year
Production

5.7 million tons
Cement Production Capacity

2022

27%

2021

26%

2020

33%

Dividends Paid Per Share (Gross TL)

2022

4.6

2021

2.15

2020

86.56%

Gross Dividends Paid (TL)*

Capacity Utilization

2022

4,992,000 tons/year

2021

Production

1.5

690,983
322,9592020 225,320
Net Profit (TL)

2022
2021

2,086,615,970
642,431,762

2020 570,249,409
22

Nuh Çimento 2022 Integrated Annual Report

The amount of the payment will be finalized at the General Assembly meeting
dated February 23rd, 2023.

23

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSOUR CAPITALS AND THE VALUEWE CREATEDOUR COMMITMENT IS TO CREATE SUSTAINABLE VALUE FOR OUR STAKEHOLDERS, EMPLOYEES, DEALERS/CUSTOMERS AND SUPPLIERS.

INPUTSCAPITAL ELEMENT

6.9 Billion TL
Assets
4.5 Billion TL
Equity Resources

FINANCIALCAPITAL

595 Meters
Waterfront
57 Thousand m2
Cargo Port Serving Ships

968 People
Our Employees, Including Subcontractors
30,539 Hours
The Length of Our General Trainings

HUMAN
CAPITAL

22,780 Hours
The Length of Our OHS Trainings
2,185 Companies
Total Number of Suppliers
76%
Our Purchase Rate from Local Suppliers

SOCIALCAPITAL

50 +The Number of Countries We Export To
6
Number of Our Integrated
Management Systems Certificates

INTELLECTUAL
CAPITAL•Our Strong Partnership Structure•Our Solid Equity Resources•Our Investments

4.3 Billion TL
Export Revenues

441 Thousand m2
Integrated Production Facility

GENERATEDCAPITALOUR VALUE CREATION PROCESS

Registered under the Kaptan
Software Project ‘Resilient
Software’•Our High Production Capacity•Raw Material Supply Security•Operational Excellence•Our Advanced Materials
Management Infrastructure•Our Understanding of Employee
Satisfaction•The Benefits We Offer•Training and Development Programs•Fair and Safe Working Environment•Our Local Supply Priority Approach•Compliance with the Laws
•Social Life Cycle Analysis•Effective Participation and Contribution
to Sectoral Development Programs•Corporate Memberships•Our Understanding of Customer
Satisfaction•Our Policies•Our Performance Monitoring Systems•R&D Efforts and Business
Associations•Our Digital Transformation Efforts andInvestments

37.2 Million TL
Our Environmental Protection Expenditures

157.6 Million kWh
The Amount of Renewable Electricity We
Produce

NATURALCAPITAL24

416.6 Thousand Tons
The Amount of Waste We Recover(Alternative Raw Materials and Fuels)

Nuh Çimento 2022 Integrated Annual Report•Our Risk Management Approach•Verifications•Our Electric Vehicle Transformation
Projects•Our Investments in Renewable Energy
Production•Our Mine Site Rehabilitation Activities

80 Thousand DWTThe Capacity of Our Cargo Port

Our Services
and Solutions
Our Port Operations
Our Circular Economy
Solutions
Our R&D Solutions for
Sustainable Products with
Low Carbon Footprint
Our Alternative Fuel and
Raw Material Management
Solutions

7%
Our Employment Turnover Rate
33 Hours (Female) / 44 Hours (Male)
Average Annual Duration of Education17%
Our Success in Reducing the Accident
Frequency Rate96%
Our Local Supplier Ratio
5.65 Billion TL
The Value of the Payments We Make to Our Local
Suppliers100%
Our Foreign Customer Satisfaction Rate

Effective Quality, Environment, Energy,
Occupational Health Safety and Information
Security Management

100%
Port Utilization
Capacity

17%
Improvement in the
Accident Frequency
Rate

76%
The Rate of Purchasefrom Local Suppliers

36%
Treatment Plant
Discharge Water
Reuse Rate

Our Wastes

Responsible Use of Resources

2,532 Tons
Total Waste

Standardization of Product Quality, Effective
Energy Efficiency and Emission Control

4.1 Million CO2e
Total Greenhouse
Gas Emissions(Scope 1 and 2)

71,422 tons of CO2e
Our Greenhouse Gas Reduction Amount89%

315 Million TL
Our Savings Due to the Electricity We
Produce

Recycling Rate in
Waste Management

104.6 Million TL
Our Net Profit Due to the Waste We
Recover

28.4%
Renewable Energy
Usage Rate

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERS

520.5 Million TL
Our Clinker Sales Revenue

03.

Slag Production
176 Thousand Tons/year

4.96 Billion TL
Our Cement Sales RevenueAND
04. STRATEGYMANAGEMENT

Our Clinker Production
4,472 Thousand Tons/year

311 Million TL
Taxes Paid to the StateNet
Profitability

05. SUSTAINABILITYMANAGEMENT

Our Cement Production
4,992 Thousand Tons/year

27%

ECONOMIC
06. OURPERFORMANCE

Our Products

7.4 Billion TL
Payments to Suppliers

SOCIAL
07. OURPERFORMANCE

2.1 Billion TL
Net Profit for the Year (Consolidated)

SUSTAINABILITY
ACHIEVEMENTSOUR ENVIRONMENTALPERFORMANCETHE VALUE WE CREATE

09. ANNEXES 08.

NUH ÇİMENTO BUSINESSMODEL OUTPUTS

25

STRATEGY AND MANAGEMENTAt the heart of our strategy lies our understanding of long-term value creation based on our longestablished history for all our stakeholders, especially our employees, customers, shareholders andsuppliers. We carry out all our processes with this understanding and together with our managers andemployees who keep this approach alive, we strengthen the future of both our sector and our society. In
2022, as Nuh Çimento, we were awarded the “Value of Kocaeli” by the Kocaeli Chamber of Industry andthe Bilişim Vadisi.

04

OUR CORPORATEVALUES

Our Vision

Establised Past, Strong Future!

• To be the company leading thesustainable growth in the sector
with the innovations we have
implemented.

We have been leading the sector and innovations in line withthe principle of sustainability in our ecosystem with our motto”Established Past, Strong Future” since 1966. We work with a focus
on continuous development and success by feeding on the strengthof our unity, and we aim to be a pioneer in the world of today andtomorrow in order to move our business further every day.
We adapt to rapid changes with our expertise, experience andproduction power supported by new generation technology. We
are a big team that embraces its work with enthusiasm and, mostimportantly, works with the same excitement and perseverance.
We are accomplishing great things thanks to the strong ties wehave established with all our stakeholders. We make a differencewith the awareness of team spirit and mutual trust. We act basedon solidarity, knowing that we are part of an unbreakable chain.

• To be the preferred company of ourcustomers, employees, suppliers, andshareholders

Our mission• Creating value for our customers• To provide our employees with theenvironment and opportunities inwhich they will develop themselves• To contribute to the economic andsocial development of the society weare in with environmental awareness.
• To make our shareholders happy
with continuous performance
improvement, growth and financial
strength

Our Values• Making our employees successful in asafe working environment• Making continuous performancedevelopment into a culture• Not compromising the quality of our
products by caring about customer
satisfaction at the highest level28

Nuh Çimento 2022 Integrated Annual Report

The vision, mission and our corporate
values that support them were publishedwith the approval of the Board of Directors
at the strategy meeting and adopted by all
our employees. The internal mechanismsthat supervise our ethical values and legal
behaviors in our company are our Human
Resources Personnel Regulation and our
Ethical Working Principles Instruction. NuhÇimento Ethical Working Principles are a
guide that guides our employees and those
who act as their representatives in thedecisions they will make and the behaviors
they will show while performing theirduties.

In the event of a legal change, we aretaking the necessary actions to ensure fullcompliance immediately, if mandatory, andcompliance at the maximum rate, if not
mandatory. In addition, our lawyers working
in our Legal Counsel Department provide
opinions to our departments on all issues
deemed necessary. The Audit Committee
affiliated to the Board of Directors is alsoable to conduct investigations and research
on a number of legal issues that senior
management deems necessary.

Our Ethics Committee is responsible
for the operation and reporting of our
Ethical Working Principles Instruction.
Our employees are informed about
these mechanisms via e-mail, Quality
Management Document System (QDMS)
and Intranet. Employees and external
stakeholders can make their notices
via email etik@nuhcimento.com.tr
Suggestions, warnings and concerns
received by the Ethics Committee
are handled with confidentiality andmeticulously.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE03.

At Nuh Çimento, we carry out all our
activities within the scope of official
legislation, regulations and communiques.
Although the main responsibility is in theboard of directors, all departments are
responsible for following the legislation
related to their business areas andtaking the necessary measures without anegative impact. Our company is subject
to independent audit according to theCapital Markets Board (CMB) legislation. In
addition, in order to avoid legal sanctions,to prevent loss of reputation and financial
losses, we apply for consulting services incases such as the entry into force of a newlegislation or significant changes in theexisting legislation.

AND
04. STRATEGYMANAGEMENTBusiness Ethics

05. SUSTAINABILITYMANAGEMENT

Compliance with the Laws

ECONOMIC
06. OURPERFORMANCEThe board of Directors is responsible for the effective and efficient management of risks. In the Committee on Early Detection of
Risk, established for the purpose of early detection of the causes that endanger the existence, development and continuation of thecompany, taking the necessary measures for this and managing risks with effective practices, the board members monitor the risks
and opportunities related to sustainability on a daily basis. In addition to this committee, there is a Corporate Governance Committee,
an Audit Committee and a Nomination Committee affiliated to the board of directors. These committees, whose main goals are toensure the uninterrupted and lossless continuity of the enterprise and activities, play an indirect role in the effective management of
economic, social and environmental performance and the dissemination of the sustainability vision in the company.

SOCIAL
07. OURPERFORMANCE

Our board of directors consists of fourteen members, five of whom are independent. We have one female board member. The
members of the board of directors are subject to performance evaluation in terms of their ability, capacity and work experience, as
well as their ability to express themselves freely. At the ordinary general assembly meeting, all our investors, big and small, have theopportunity to share their opinions and expectations on all issues.

OUR ENVIRONMENTALPERFORMANCEThe highest level of management body of our company is our board of directors and its purpose is to determine the long-term
strategic direction and goals of our company by taking into account the vision and values. Our Board of Directors manages thesustainable profitability targets of Nuh Çimento Group by taking into account the balance of growth and return.

09. ANNEXES 08.

CORPORATE GOVERNANCE,ETHICS AND COMPLIANCE

29

EXTERNAL FACTORSAND GLOBAL TRENDS
At Nuh Çimento, when evaluating our risks, we follow not only internal risks, but also changes in the whole world; we prepare our company
for the future by taking into account global problems, sectoral trends and possible legislative changes, as well as external factors.

World Economic Forum WEF Risk Perception
The WEF World Economic Forum Global Risk Report 2022-2023
reveals that the most prominent risk in the world is the energy
supply crisis. Long-term - for up to 10 years most of the risks thatwill increase in severity are presented as climate change and related
physical risks and biodiversity loss.

The financial, operational and strategic risks, which are the threemain risk categories that may affect the achievement of NuhÇimento’s goals, and the actions we take in relation to them, arereported broadly in our report, in section Legal Explanations andtitle Risk Management and Evaluation of the Board of Directors
As a result of the evaluations we made with our stakeholders
It is becoming important for companies to manage their adaptation during the preparation process of our report, we have included
processes by evaluating these risks in terms of business continuity.
the actions we have taken on global risks directly related to the
As the climate crisis and the climate-based disasters that deepen
strategic issues we have identified in detail in this report. The
this crisis significantly affect the continuity, sustainability and future explanation table for this is given below.
of the business. Companies need to have financial and operational
flexibility in this process and prepare themselves infrastructurally.

WEF Global Risks with the Highest Probability
WEF Long-Term Global Risks

Nuh Çimento Risk Management Category Related Titles in the Report

1. Failure to mitigate climatechangeOperational (Environmental Risks)
Financial Risks

Climate Change and Energy Management

2. Failure to adapt to climatechangeOperational (Environmental Risks)
Strategic Risks Financial Risks

Climate Change and Energy Management

3. Natural disasters and extreme
weather events

Operational (OHS Risks)
Financial Risks

Disaster Preparedness and Response

4. Biodiversity loss and ecosystem
collapse

Operational (Environmental Risks)
Strategic Risks

Protection of Biodiversity

5. Large-scale involuntary migration It is not directly related to our activities.

-

6. Natural resource crises

Operational Risks
Financial Risks

Water and Wastewater Management

It is not directly related to our activities.

-

7. Erosion of social cohesion andsocial polarization

30

Materials Management

8. Widespread cybercrime and cyber Operational (IT Risks)
insecurity
Financial Risks

Digital Transformation

9. Geoeconomic confrontation

It is not directly related to our activities.

-

10. Large-scale environmental
damage incidents

Operational (OHS Risks)
Financial Risks

Disaster Preparedness and Response

Nuh Çimento 2022 Integrated Annual ReportSocialWidespreadcybercrime and cyber
insecurity

Geopolitical

TO OUR
01. MESSAGE
STAKEHOLDERS

109Large-scale
environmental
damage incidents

Technological

Source: WEF 2022-2023 Global Risk Report

EU Green Deal Carbon Border
Adjustment Mechanism
The Green Deal roadmap, announced by theEuropean Union in 2019, includes actions to betaken to reach zero emission value by 2050. The
most effective of these is that a carbon tax will
be applied to imported products at the border.
The Commission envisages gradually removing
the free allocations of carbon-intensive industrial
sectors and applying a carbon price at the rate ofcarbon content to third-country products instead(CBAM-Carbon Border Adjustment Mechanism).
The final approval of the member states will beobtained after the completion of negotiations
between the European Parliament and theEuropean Commission on the CBAM, which
was adopted after the vote in the European
Parliament in June 27, 2022. In addition to
the iron and steel, fertilizer, aluminum,
electricity and cement proposed by theEuropean Commission, materials such asorganic chemicals, plastic polymers, hydrogenand ammonia are expected to be included in
the scope of the CBAM. From 2023 onwards,
importers will be required to report on the carbon
content of products and importers will start
paying carbon prices to the EU as of 2026.

We have completed the Nuh Çimento Carbon
Roadmap in 2022, which we started in 2021
under the leadership of our CEO and under
the coordination of our Sustainability andEnvironment Directorate. We have made risk
and cost assessments with alternative methods
and prices over different scenarios within thescope of the EU Green Deal Carbon Tax at theBorder and the Emission Trading System (ETS)
prepared by our Ministry of Environment andClimate Change. As a result of these evaluations,
we have planned our actions and projects for the
coming period in five main headings.
The details of these studies are in our reportunder Our Strategy and our 2053 Net Zero
Carbon Roadmap and the results of the studies
we have carried out so far are under Climate
Change and Energy Management

The Need for Rapid Urbanizationand Sustainable Cities

Nuh Çimento’s Actions oriented
with Global Regulations

While 55 percent of the world’s population lives
in urbanized areas today, it is estimated that this
proportion will increase to 68 percent by 2050.
This development will create a significant burden
on infrastructure, services, employment and theenvironment. The building materials industry has
responsibilities such as supporting sustainable
cities and responding to the needs of the growing
population.

As Nuh Çimento, within the scope of the Turkish
Cement Sector 2050 Roadmap Working Groupestablished under the chairmanship of the Board
members of TÜRKÇİMENTO, we supported the
preparation of a National Emissions Trading
System Roadmap by taking part in an authorizedfocus group.

Sustainable development requires a significant
transformation in our methods of building
urbanized areas and the way we manage; lowcarbon production among them are buildings
whose processes and construction materials
maintain energy efficiency throughout their
entire life cycle.

CORPORATE
02. OURPROFILENatural resource
crises803.

Environmental

7

Cement, on the other hand, has an important
place in meeting the needs of the rapidly growing
population as a low-carbon material according
to its availability and long-term durability
properties when it turns into concrete.

Nuh Çimento’s Actions for
Sustainable Products
The positive effects that we have createdas Nuh Çimento for this trend is under
the title Our Performance to Reduce Our
Carbon Footprint with Environmentally
Friendly Products

New Technologies andInnovation
The rapid development of technology is
one of the most striking forces of today,
directly affecting all industries in the world.
We need to embrace this potential in orderto improve, modernize our processes andtrigger innovation. Digitalization of cement
operations and management with clear
data are becoming more important every
day for us to make decisions based on
more information. New digital applications
provide opportunities such as providing
more efficient products with processes thatcreate more value with robots and artificial
intelligence technologies and reducing theimpact on our entire value chain.

Nuh Çimento’s Technology
Development Actions for Sustainability
The positive effects that we have createdNuh Çimento for this trend is under thetitle Digital Transformation

AND
04. STRATEGYMANAGEMENT

Biodiversity loss
and ecosystem
collapse

605. SUSTAINABILITYMANAGEMENT

Failure ofclimate change
adaptation

5

ECONOMIC
06. OURPERFORMANCE

4

3

2

Geoeconomic
confrontation

SOCIAL
07. OURPERFORMANCE

Natural disasters
and extreme
weather eventsOUR ENVIRONMENTALPERFORMANCE

1

Erosion ofsocial cohesion
and social
polarization

Large-scale
involuntary
migration

09. ANNEXES 08.

Failure to
mitigateclimate change

31

SUSTAINABILITY MANAGEMENT
At Nuh Çimento, we carry out activities and make investments that will fulfill our commitment toensuring economic, environmental and social sustainability in a balanced way. We integrate sustainability
at all levels of our company as a long-term, healthy, profitable, and value-offering management approachwith the targets we have set in each of our priority areas, especially our 2053 net zero carbon target,
which we have set in 2022, as well as as a long-term, healthy, profitable and value-offering management
approach to all our stakeholders.

05

OUR SUSTAINABILITYMILESTONES
2010
2006
WASTE INCINERATION LICENSE
We have started using waste as analternative fuel and raw material.
We have taken the first steps totransition to renewable energy
instead of using natural resources.

2007
ONLINE MONITORING OF EMISSIONS
By establishing the first online flue gas
monitoring system in the cement sector in
Turkey, we have opened it to the access ofthe competent authorities.
SEA WATER TREATMENT REVERSEOSMOSIS (RO) SYSTEM
Thanks to the system we haveobtained domestic water bytreating sea water, we have
reduced the use of undergroundand clean water resources.

2008
BIOLOGICAL PACKAGE
TREATMENT PLANT
We have established a new fully
automated system treatment plant with
the investment of Biological Package
Treatment Plant.
THE FIRST INTEGRATED SLUDGEDRYING PLANT
Our sludge drying facility, where
urban and industrial wastewater
treatment sludge is dried with waste
heat and energy recovery is provided,
became the first example of Turkey
for the waste and cement sectors.
ISO 14001 ENVIRONMENTAL
MANAGEMENT SYSTEM
After the studies started in 2007
and the audits completed in 2008,
Nuh Çimento started to manage its
activities in international standards
with the ISO 14001 Environmental
Management System Certificate.

34

Nuh Çimento 2022 Integrated Annual ReportŞEHABETTİN BİLGİSU
ENVIRONMENT AWARDSWith the “Project Incentive Award” in 2010,
the “Jury Special Award” in 2014, the “Mixed
Facilities Environment Award” in 2017, wehave crowned our achievements three times at
the national Şehabettin Bilgisu Environment
Awards.

2011

THE PROJECT OF CONVERTING ELECTROFILTERS INTO BAG FILTERS
With the transformation project ofseven electro filters into bag filters thatstarted in 2009, we have reduced thedust emission output below European
standards.

2012
RENEWABLE ENERGYPRODUCTION WITH HEPP
We have started to supply electricity fromrenewable sources with our hydroelectric power
plant with an installed capacity of 17 MWh.
FULLY AUTOMATED WASTEFEEDING SYSTEMS
By installing RDF (Refuse-Derived Fuel)
Feeding System, we ensured that the waste is
fed to the kilns with full automation without
touching it.

2013
RENEWABLE ENERGY PRODUCTION WITH
WASTE HEAT RECOVERY (WHR)
We have established an electricity generation
plant with a capacity of 18 MWh by recovering
the waste heat from chimneys and increased
our electricity supply capacity from renewablesources.
ICCI ENERGY OSCAR AWARDS
Having received the “Jury Special Award” in 2013
and the “Waste Heat Category Oscar Award” in
2019, we have been an example with our energy
investments at the ICCI Energy Oscar Awards
twice.

2014

LOW NOx SYSTEM WITH SNCR PLANT
By commissioning the SNCR Plant investment,
we have reduced our NOx emissions fromchimneys. (SNCR- Selective Non-Catalytic
Reduction / Non-Catalytic Selective Reduction)

2016
GREENHOUSE GAS REDUCTION CERTIFICATIONWITH Co2 REDUCTIONS CERTIFICATE
We have received the VCS Carbon Reduction
Certificate for 56.104 tons of CO2e/year
for the power generation plant with waste
heat recovery and 24.935 tons CO2e/year forsludge drying plant.
TURKEY’S FIRST CEMENT FACTORY TO RECEIVETHE ENVIRONMENTALIST FACILITY AWARD
Nuh Çimento became the first cement factoryin Turkey to receive the “Environmentalist
Facility Award” in the evaluation of theenvironmentalist facilities award organized
every year by the Healthy Cities Association.

2017
IZMIT GULF FISHING PROJECTAs the sole sponsor of the Gulf of Izmit
Fishing Project, which has the distinctionof being the first in Turkey in the saltwater
environment, we have made positive
contributions to the ecosystem of the Sea ofMarmara.

2018
THE FIRST INTEGRATED ANNUALREPORT APPROVED BY GRI
We have published the first Integrated
Annual Report of Nuh Çimento with asustainability perspective.
LAUNCHING PRODUCTS WITH A LOWCARBON FOOTPRINT TO THE MARKET
We have launched cement types with a low
carbon footprint and a high additive ratio tothe market.
THE PROJECT OF CONVERTING CONSTRUCTION
MACHINERY TO ELECTRIC VEHICLESWe have signed a first in the cement sector
with the project of switching the construction
machines used in raw material extraction
from a motorized system to an electric
system.
LOW CARBON HERO AWARD
We received the “Low Carbon Hero” award fortwo consecutive years at the Istanbul Carbon
Summit with renewable energy projects
in 2018 and low carbon footprint productprojects in 2019.

TO OUR
01. MESSAGE
STAKEHOLDERS

2019

Great Place To Work
”Turkey’s Best Employers 2022” Award

Great Place To Work Certificate ”Best
Employers of Production 2022” Second
Place Prize

OUR CEO IS AMONG THE
SUSTAINABILITY LEADERS OF
TURKEYIn Fast Company Magazine’s Turkey’s
Sustainability Leaders evaluation, our CEO
Gökhan Bozkurt took the 27th place among
the nominated leaders and became the only
leader in our sector.

2021
INTEGRATED ANNUAL REPORTINTERNATIONAL ACHIEVEMENT AWARD

With our Integrated Report for 2020, we were
the winner of the Gold medal in the Combined
Reports Category of the ARC Awards, which is
known as the Oscars for annual reports and hasreceived the most applications worldwide.
OUR CEO IS ONCE AGAIN AMONG
THE SUSTAINABILITY LEADERS
OF TURKEYBest Millennials Turkey’s ”Best Great
Workplace For Millennial Employees”
Award

Best
Workplaces™
for Millennials

TÜRKİYE

2022

ENVIRONMENT AND AWARENESS AWARDS“Sustainability Awareness Honorary Award” at the Economist Anadolu
500 Awards
Kocaeli Chamber of Industry 28th Şehabettin
Bilgisu Environmental Awards “Large-Scale Sectoral(Construction Materials) Environmental Award”

Tulip Sustainability Center Environmental Awards “Awareness-Raising
Institution Award”

In Fast Company Magazine’s Turkey’s
Sustainability Leaders evaluation, our CEO
Gökhan Bozkurt took the 47th place among thenominated leaders and became the only leader
in the sector.

General Cement Sector “Championship Award” in the Category of “TheCompany that Performs the Most Exports”

INSPIRING CORPORATESUSTAINABILITY EFFORTS

Gray Cement Sector ”The Company that Performs the Most Exports”
Award

We won the “Inspiring Corporate
Sustainability Studies” Award at
the SUSZ’21 Social Compliance andSustainability Summit.

Grey Cement Sector “Championship Award” in the Categories of “TheCompany that Increases Its Exports the Most”

GREAT PLACE TO WORKCERTIFICATE
With our exemplary practices in
Human Resources, we have been
entitled to receive a Great Place To
Work Certificate.

TURKISH EXPORTERSASSEMBLY AWARDS

5th Prize in Clinker Sector “Company with the Most Exports” Category
KOCAELI CHAMBER OF INDUSTRY AWARDS
Kocaeli Chamber of Industry “Value of Kocaeli Award”
Kocaeli Chamber of Industry “Sectoral Performance Construction and
Building Sector Grand Award”

AND
04. STRATEGYMANAGEMENT

2022

05. SUSTAINABILITYMANAGEMENTTÜRKİYE

ECONOMIC
06. OURPERFORMANCE

We received the Bronze certificate
as Nuh Çimento in the Evaluationof Responsible Use of Resources by
CSC (Concrete Sustainability Council)
Concrete Sustainability Council

03.

En İyiİşverenler™

SOCIAL
07. OURPERFORMANCECSC CERTIFICATE OF RESPONSIBLE
USE OF RESOURCES

GREAT PLACE TO WORK AWARDSOUR ENVIRONMENTALPERFORMANCE

2020

2022

09. ANNEXES 08.

With our Integrated Report of the year 2019,
we received the Bronze medal by receiving theonly award of the Combined Reports Category
from the ARC Awards, which is known as theOscars for annual reports and has received themost applications worldwide.

CORPORATE
02. OURPROFILEINTEGRATED ANNUAL REPORTINTERNATIONAL ACHIEVEMENT AWARD

35

OUR STRATEGY AND THE 2053
NET ZERO CARBON ROADMAPAs Nuh Çimento, we manage sustainability with our occupational health and safety goals, as well as our economic performance, which
offers value to all our key stakeholders with our position in the international market, and with our goals to reduce all our environmental
impacts, especially energy and emissions. At Nuh Çimento, we take into account all global development and risks, not only internal risks,
when evaluating our risks.
Our company’s sustainability strategy started to be formed many years ago within this framework as a result of the need for alternative
energy and raw material sources due to rising energy costs all over the world. In this sense, while sustainability projects are managed
as the daily activities of our company, our goals have also been shaped under this roof. In recent years, the fact that we have felt theconsequences of climate change intensely and the developing international regulations have been effective in starting to manage ourstrategy with a climate risk-oriented approach.

As Nuh Çimento, we aim to become a Net
Zero Carbon company in 2053
We have determined our actions in five steps to achieve
this goal.

1. Realizing the Green Factory Transformation• Becoming a factory that consumes less fuel andelectricity for a unit product with continuous
efficiency projects

2. Realizing the Green Fuel Transformation•

Using cheap and low-carbon fuels compared toprimary fuels such as RDF/SRF/TDF•

Carrying out studies related to Biomass/Energy
Agriculture

3. Realizing the Transformation of Green Raw
Materials•

Improving the circular economy and industrial
symbiosis•

Using more alternative raw materials

4. Producing and Using Green Electricity•

Increasing electricity production from renewablesources•

Reducing fossil fuel dependence with electrification
projects

5. Producing Green Cement•

36

Producing and devloping cement in the same
quantity and quality using less clinker

Nuh Çimento 2022 Integrated Annual ReportSENIOR MANAGEMENT
Board of Directors & CEO

SUSTAINABILITY COMMITTEE

Chairman of the Committee-General Manager

Environment and Sustainability Manager

CLIMATECHANGE• Efficiency and
Performance
Monitoring• Products with Low
Carbon Footprints• Alternative
Resource
Management

INTEGRATED ANNUAL REPORT PREPARATION COMMITTEE
HR Director, Environment and Sustainability Manager, and Finance Manager

ENVIRONMENTAL
MANAGEMENTCORPORATEDEVELOPMENTFINANCIALMANAGEMENTOHSMANAGEMENTDIGITALIZATION• Emission
Management• Ethics Committee• Financial Risk
Management• OHS Board• Kaptan Project• Leadership
Programs• Digitalization in
Business
Processes• WaterManagement• WasteManagement• Regulatory
Compliance• Nuh Akademi• OKR Performance
Management• Nuh
Competence
Model• Nuh Çimento
Foundation Works• Corporate
Governance• Production Sales Coordination
Committee

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILEECONOMIC
06. OURPERFORMANCEMONITORING AND REPORTING

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT

We follow up all our sustainability targets included in our reportand support our corporate goals with this team and regularly
report the developments related to our performance to our General
Manager at least twice a year.

SOCIAL
07. OURPERFORMANCEThe Integrated Annual Report Preparation Committee, formed byour managers from the Environment and Sustainability, Human
Resources and Finance departments, and our Environment and

The details of these six working groups and the issues that makeup their agendas are included in the diagram below. Within thescope of monitoring and reporting, we organize regular meetings
with working groups with monthly periods, and we hold two
meetings per year within the scope of the annual integrated annual
report.

OUR ENVIRONMENTALPERFORMANCE

In order to keep up with the rapidly changing world and the newworld order, we have redesigned and structured our sustainability
activities with the Sustainability Committee chaired by our General
Manager together with the vision drawn by our CEO.

Sustainability Manager responsible for performance monitoring
and reporting, lead six working groups that develop projects for our
focus areas.

09. ANNEXES 08.

We have restructured our sustainability team in 2021 within
the scope of responsibilities and targets. The structure, which
previously operated under the responsibility of our General
Manager, started working directly under the CEO and the Board of
Directors through our General Manager, who is also the Chairman of
the Sustainability Committee.

03.

SUSTAINABILITYMANAGEMENT STRUCTURE

37

MATERIALITY ASSESSMENT AND
STAKEHOLDER ENGAGEMENT
Our stakeholders are people andinstitutions who are affected by ouractivities today and in the future, and who
also have an impact on our corporate goals
with their decisions. Our stakeholders,
employees, dealers and other customers
are also in the key stakeholder group
because they bear legal, financial or
operational responsibility towards ourcompany. First of all, we communicate
with all our stakeholders, including our
key stakeholders, at different times andplatforms and ensure that they get detailed
information about our company, products,
activities and business results.
We have been carrying out stakeholder
participation efforts since 2017, when we
prepared our first integrated annual report,with the awareness that the assessmentsof different stakeholder groups about
our company may differ in connection
with their areas of interest. We receive
their feedback on their expectations
from our company through our regularcommunication platforms.
In the coming periods, we will continue
to develop existing platforms, open newcommunication channels specific to ourinternal and external stakeholders, andregularly listen to the ideas and requestsof our stakeholders that are directly
related to our business in context ofsustainability. We believe that the feedback
we will receive in this context will play animportant role in shaping our goals.

2017

Participation Platform: Sustainability Prioritization SurveyOnline

OUR EMPLOYEES,OUR DEALERS /CUSTOMERS

Changes and Consequences: Occupational Health and Safety,
Economic Performance, Energy Management, Materials,
Purchasing Applications were the top five priority topics.
Water Management, Employment, Training and Development,
Compliance with the Laws and Local Community were the main
topics of our report.

2018

Participation Platform: Sustainability Performance Evaluation
Survey- Online

OUR EMPLOYEES

Changes and Consequences: There has been no significant
change in the matrix.

2019

Participation Platform: With the Academic Support of Kocaeli
University- Face-to-Face Survey

OUR EMPLOYEES

Changes and Consequences: There has been no significant
change in the matrix.

2020

Participation Platform: Stakeholder Priorities WorkshopInternal Evaluation

SUSTAINABILITY
WORKING GROUP
and SENIORMANAGEMENT

2021

2022

Participation Platform: Review Meeting

SUSTAINABILITY
WORKING GROUP
and SENIORMANAGEMENT

Nuh Çimento 2022 Integrated Annual Report

Changes and Consequences: At the end of the study, we also
added the topics of Digital Transformation and Growth inInternational Markets, which are increasing in importance every
day, to our current strategic topics. Due to the important role ofthe cement sector in the fight against climate change and thedevelopments within the scope of the European Green Deal,
Emission Management, which we previously discussed underwaste management, took its place in the matrix as the main
topic this year.
Participation Platform: Review Meeting

SUSTAINABILITY
WORKING GROUP

38

Participation Platform: Review Meeting

Changes and Consequences: We have collected the topics ofEnergy Management and Emission Management under one
heading as Climate Change and Energy Management in order toincrease awareness.

Changes and Consequences: Taking into account the possible
physical risks that may arise from climate change, we haveadded the title of Disaster Preparedness and Response to ourpriority issues. We have received the final approval of the senior
management for all priority issues.

2nd
Group

1st
Group

• Group Companies• Investors• Press and MediaOur Communication Platforms with Our Stakeholders
At Nuh Çimento, our communication platforms
and communication frequency also vary inaccordance with our stakeholder priorities. Our
employees in our internal stakeholder group, who
are among our stakeholders in the first group,
are naturally our stakeholders with whom wecommunicate most. Depending on the subject,
we communicate, inform and receive feedback
from them via e-mail, Pusula: our internal
communication platform, social media, online andface-to-face events/meetings, in-office TV screensand employee survey at daily, weekly, monthly andannual frequencies.
We communicate through one-on-one meetings,
general meetings, website, telephone, e-mail,press releases and social media platforms with
our shareholders and we use Dealer portal,
telephone, e-mail, social media, online and faceto-face events/meetings, visits and brochures to

05. SUSTAINABILITYMANAGEMENT

Suppliers
Trade Unions of Workers and Employers
Sectoral Associations
Local Community
Public and Regulatory Institutions

ECONOMIC
06. OURPERFORMANCE

•
•
•
•
•

communicate with dealers and customers.
We communicate with Suppliers, Employee
and Employer Unions, Sectoral Associations,
Local Community and Public and Regulatory
Institutions in our second stakeholder group byphone, e-mail, social media, online and faceto-face events / meetings, seminars at regularperiods, while at the same time we provide
communication with the local community
through our social responsibility projects.
We provide communication with Group
Companies in our third stakeholder group,
Investors and the Press and Media on telephone,e-mail and social media platforms and receive
their feedback.

SOCIAL
07. OURPERFORMANCE

Stakeholders
Employees
Dealers
Customers

OUR ENVIRONMENTALPERFORMANCE

•
•
•
•

Stakeholders

09. ANNEXES 08.

Key

AND
04. STRATEGYMANAGEMENT

03.

3rd
Group

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERS

Our Key Stakeholders

39

OUR SUSTAINABILITYPRIORITIESWe have updated our priority sustainability issues with a review meeting we held with our Sustainability Working Groupin the fourth quarter of 2022 in the light of the sector analyses, stakeholder prioritization surveys and senior management
strategy studies we have conducted in recent years.
In our review meeting, where we evaluated global trends and risks with our Sustainability Management Consultant, thepossible that could be caused by climate change taking into account the physical risks, we have added the title of Disaster
Preparedness and Response to our priority issues. Our material issues, which constitute the main topics of our report, in linewith our 2030-2053 sustainability targets have been approved by our senior management, which consists of our Board of
Directors and our CEO.
In our report, while conveying our performance mainly related to the issues in the first group, we gave an outline to the issuesof lower importance in the second group, thinking that they might be included in the first group in the future years.

STRATEJİK SÜRDÜRÜLEBİRLİKKONULARI MATRİSİ

Strategic Sustainability Issues Matrix(GRI 102-47)

HIGH

GROUP 1SIGNIFICANCE OF IMPACTS ON STAKEHOLDERS(Evaluations and Decisions Related to the company)· Occupational Health and Safety· Economic Performance· Growth in International Markets· Climate Change and Energy Management· Disaster Preparedness and Response

GROUP 2
· Employment· Training and Development· Digital Transformation· Materials Management· Water and Wastewater Management· Waste Management· Biodiversity

GROUP 3· Local Community

LOW

SIGNIFICANCE OF IMPACTS FOR NUH ÇİMENTO(Reputational, Legal, Financial, Operational)40

Nuh Çimento 2022 Integrated Annual ReportTO OUR
01. MESSAGE
STAKEHOLDERSSUSTAINABILITY IMPACTS ALONGOUR VALUE CHAINCORPORATE
02. OURPROFILEAt Nuh Çimento, we transfer all our sustainability
effects in the processes from the productionof raw materials to the use of our products byour customers in the following diagram. We
examine our sustainability impacts, which wehave identified in two priority groups, directly andindirectly in two categories in this value chain.
Direct and indirect effects may be related to bothnature/environment and social stakeholders,
depending on their content.

Operation• Drilling• Blasting• Transportation of raw materials
Raw Materials• Limestone• Marn• ClaySustainability Effects: Direct Effects• Materials Management• Biodiversity
Indirect Effects• Occupational Health and Safety• Climate Change and Energy Management• Disaster Preparedness and Response

Indirect Effects• Growth in theInternational Market
Customer Groups• Dealers• Ready-Mixed Concrete
Manufacturers• Industrial Manufacturers• Construction Companies• Contractors• Export Customers

Byproduct• Clinker
Operation• Grinding• Stocking• Packaging
Product• Cement
Sustainability Effects:
Direct Effects• Occupational Health and Safety• Climate Change and Energy
Management• Disaster Preparedness andResponse

OPERATION
TRANSPORTATIONOF PRODUCTS
Sustainability Effects:
Direct Effects• Occupational Health and Safety
Indirect Effects• Climate Change andEnergy Management• Digital Transformation• Materials Management• Waste Management
Indirect Effects• Training and Development• Employment• Digital Transformation• Water and Wastewater Management*Our Priority Issues

05. SUSTAINABILITYMANAGEMENT

Operation• Crushing• Homogenizing• Grinding• Cooking• Cooling

ECONOMIC
06. OURPERFORMANCE

Sustainability Effects:
Direct Effects• Economic Performance

SOCIAL
07. OURPERFORMANCE

RAW MATERIALPRODUCTION(MINING SITES)

CLINKER AND
CEMENTOUR ENVIRONMENTALPERFORMANCEMARKETING
AND SALES

09. ANNEXES 08.

CUSTOMERS

AND
04. STRATEGYMANAGEMENT

03.

Direct effects point to issues that are one hundred
percent controlled by Nuh Çimento and may also
have a high probability and severity, while indirect
effects are issues that are not one hundred
percent controlled by Nuh Çimento and/or whose
probability and severity are lower in that process.

41

OUR SUSTAINABILITYTARGET
Since last year, we have largely achieved our goals that we have set in the name of sustainability. Taking into
account the new projects and efforts going forward, we have also raised many of our goals. explanations about ourgoals that we have not achieved are included below the relevant goal.

ECONOMIC TARGET
Economic Performance

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Increasing the value we offer to ourshareholders

Net profit ratio (%)(Minimum)
20

27(Minimum)20

Preferring local suppliers to foreign
suppliers in purchases

Domestic purchase rate (%)

7076(Minimum)
73

Growth in the International Market

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Increasing our exports

Export rate (%)(Minimum)
75

79(Minimum)70

Digital Transformation

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Realizing digital transformation in our
process operations

The proportion of our operations
on which we have initiateddigital transformation (%)

66

68(Minimum)74*

Target (2022)

Realized (2022)

Target (2023)

Preventing work accidents that result in Number of fatal accidents
loss of life

0

0

0

Reducing the frequency of occupational
accidents

Number of accidents (1 million
work hours and with lost days)

0

5

0

Preventing accidents that result in lossof working day

Lost business day (Lost day as
a result of an accident*person)

0

80

0

Employment

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Preventing the employee turnover ratefrom rising

Employee turnover rate (%)

(Max)
7

7

(Max)
7

Training and Development

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Increasing the training time provided
per employee

Duration of training per person(hours)

36

44

40

Disaster Preparedness and Response

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Conducting regular disaster drills every
year

Number of annual drills

New Target

1(Minimum)1* We have increased our target because we have reached our digital transformation target.

SOCIAL TARGET
Occupational Health and Safety

42

Performance Criteria

Nuh Çimento 2022 Integrated Annual Report(Max)
106

Thermal energy used for the
production of one ton of clinker(Kiln 1) (kcal/kg of clinker)

(Max)
761

764*

(Max)
764

Thermal energy used for the
production of one ton of clinker(Kiln 2) (kcal/kg of clinker)

(Max)
761

769*

(Max)
765

Thermal energy used for the
production of one ton of clinker(Kiln k3) (kcal/kg of clinker)

(Max)
730

728

(Max)
730

* In the current global crisis environment, there has been a decrease in combustion efficiency due to the increasing variety of fuels used, accordingly,
specific cooking calories have remained above the planned value in oven 1 and 2.

Emission

Reducing dust emissions caused byproduction

Reducing the amount ofgreenhouse gases generated byproduction

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Kiln 1 main emission chimney
dust emission average annual
value (mg/Nm3)

(Max)
20

14.0

(Max)
18

Kiln 2 main emission flue dust
emission average annual value(mg/Nm3)

(Max)
20

15.4

(Max)
18

Kiln 3 main emission flue dust
emission average annual value(mg/Nm3)

(Max)
20

14.5

(Max)
18

Amount of CO2e released for 1
Ton clinker production (kg)

(Max)
840

864*

(Max)
860

* In the current global crisis environment, it has increased due to changes in combustion efficiency and increase in emission coefficients due to an increasein the variety of fuels used.

Materials and Raw Materials

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Increasing the use of waste as analternative fuel instead of the useof fossil fuels

The ratio of alternative fuel usage
to total fuel consumption (%)(Minimum)
1.5

0.6*

(Minimum)
0.5(Minimum)
375,000

410,196(Minimum)
275,000

Increasing the use of wastes as
The amount of alternative raw
alternative raw materials instead of material usage (the amountnatural resources
declared within the scope ofEnvironmental Legislation,
excluding excavation) (tons /year)* The existing ATY facility has been removed due to the efficiency revision studies in waste incineration systems. The planned results could not be obtainedin the Liquid Waste auctions and lower liquid waste purchases were realized than planned.

TO OUR
01. MESSAGE
STAKEHOLDERS

106.2

CORPORATE
02. OURPROFILE

(Max)
108

03.

Electrical energy used per ton of
product (cement) (kWh/ton of
cement)AND
04. STRATEGYMANAGEMENT

Target (2023)

05. SUSTAINABILITYMANAGEMENT

Realized (2022)

ECONOMIC
06. OURPERFORMANCE

Ensuring the efficient use ofelectrical energy

Ensuring the efficient use of heat
energyTarget (2022)

SOCIAL
07. OURPERFORMANCE

Performance Criteria

OUR ENVIRONMENTALPERFORMANCE

Energy09. ANNEXES 08.

ENVIRONMENTAL TARGET

43

ENVIRONMENTAL TARGET
Waste

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Ensuring that the resulting waste issent to recycling instead of disposal

The ratio of the wastes sent forrecycling to the total wastes
discharged (%)(Minimum)
90

89*(Minimum)90

Water and Wastewater

Performance Criteria

Target (2022)

Realized (2022)

Target (2023)

Keeping the total amount of waterused below a certain level

The annual amount of water
consumed (m3)

1,750,000

1,880,857**

2,100,000

Ensuring the reuse of wastewater atthe outlet of the treatment plant

The Rate of Waste Water
Recovered (%)

New Target

36

36* A large amount of Glass Wool waste was released because revision and maintenance took place above the planned one. These wastes have been
disposed of because they cannot be recycled.
** Due to the increase in the amount of cement production and the fact that the seasons are above the expected temperatures, water consumption has
exceeded the planned amount. The 2023 target has been updated as water usage will also increase due to the increase in electricity production along with
the new WHR units.

44

Protection of Biodiversity

Performance Criteria

Not operating in areas where special
species are bred and live in terms ofBiodiversity and in other areas underprotection
Preparing restoration (rehabilitation)
projects to nature and to havethem approved by the competentauthorities

Nuh Çimento 2022 Entegre Faaliyet Raporu

Target (2022)

Realized (2022)

Target (2023)

The number of activities carriedout in protected areas in terms ofBiodiversity

0

0

0

The proportion of mining sites
approved for nature restoration
projects (%)

100

100

100

Occupational Health and Safety

OHS Performance Benchmarking Studies
and TrainingsÇEIS (Cement Industry Employers' Association)

Occupational Health and Safety

Occupational Health and Safety
Leadership Program (ÇEISLIP)ÇEIS (Cement Industry Employers' Association)

Occupational Health and Safety

MBA ProgramÇEIS-TÜRK ÇİMENTO-MEF University

Training and Development

Engineering Education Program in the
Workplace

Kocaeli University

Training and Development

The Project of Converting Construction
Machines Used in the Production of Raw
Materials from Diesel to Electric Vehicles

ABB

Climate Change and Energy Management

E-Dump Truck Retroft Project

ABB

Climate Change and Energy Management

Izmit Bay Fish Restocking Project

Trabzon Fisheries Central Research Institute(SUMAE) affiliated to the Ministry of Food,
Agriculture and Livestock and TAGEM

Protection of Biodiversity

Projects We Carry Out Within the Company
Project Name

Place in the Report

Kaptan Project

Digital Transformation

Holistic Well-Being

Employment

Sustainable Water Project

Water and Wastewater Management

The Use of Waste Field Waters in the Process after Treatment

Water and Wastewater Management

Use of Alternative Fuels and Alternative Raw Materials

Materials Management

Tras Mill Tonnage Increase Effort

Materials Management

Conversion of Sleeve-Connected Gear Motors Used Throughout the Factory

Materials Management

SP Boilers Dust Cleaning System Replacement

Climate Change and Energy Management03.

ÇEIS (Cement Industry Employers' Association)AND
04. STRATEGYMANAGEMENTOHS Engineers Project

05. SUSTAINABILITYMANAGEMENT

Place in the Report

ECONOMIC
06. OURPERFORMANCEThe Institution Cooperated With

SOCIAL
07. OURPERFORMANCE

Project NameOUR ENVIRONMENTALPERFORMANCE

Projects We Carry Out with External Stakeholder Collaborations

09. ANNEXES 08.

In 2022, on the one hand, we continued to focus on efficiency projects within the company, while developing and executing
projects that serve our sustainability and related goals with cooperation on the other. Summary information about the projects
that we have detailed in the relevant sections in our report is included in the table below.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSSUSTAINABILITY PRACTICESAND COLLABORATIONS

45

OUR ECONOMIC PERFORMANCEAs Nuh Çimento, we maintain an important economic activity both with our supply
and dealer / customer networks, employment, production and export, and contributeto the national economy. In 2022, we invested 284 million TL solely for the purpose ofresource and production efficiency.

In 2022, our company was announced by the Turkish Exporters Assembly as the“Company that Increased its Exports the Most”, in the Clinker Sector as the “Company
that Exports the Most”, in the General Cement Sector as the “Company that Exports
the Most” and in the Gray Cement Sector as the “Company that Exports the Most”.

06

OUR CONTRIBUTIONS TO THE ECONOMY
Our Goal

To increase the value
we distribute to ourstakeholders
Realized 2022

27%

Target 2023

Minimum
20%

The basis of our sustainable growth at NuhÇimento lies in the fact that we always takecare of the interests of our stakeholders.
While continuing our commercial activities
for profitability purposes, we work withthe goal of providing value not only for ourinvestors and shareholders, but also for our
employees, customers, suppliers, our state
and all members of the local community.
All departments, especially our Boardof Directors, CEO and General Manager,
are responsible for managing economic
performance. Among the actions wehave taken to improve our performance
are new investments, benchmarking andcost decreasing efforts. We continue
to contribute to employment and thedevelopment of our country with theinvestments we have made and the export
opportunities we have created.

48

Nuh Çimento 2022 Integrated Annual Report

We are creating our necessary investment,
Market and strategy plans to ensure
the continuity of profitability for ourshareholders and investors. In order toensure customer satisfaction and create
value for them, we record every complaint
received about the product and service, workin coordination with the Domestic Sales
Directorate and the After-Sales Quality
Monitoring Department to resolve customer
requests and complaints as soon as possible.
As Nuh Çimento the most important of
the indirect economic effects created byour group are paying taxes. We have beenamong the highest tax payers in Turkey and
Kocaeli for many years.

Our Ongoing Investments in
2022
At Nuh Çimento, we continued our repair andmodernization investments that we makeevery year with resource and production
efficiency targets in 2022. In addition to energy
and material efficiency, we have transferredapproximately 284 million euros of financing
to these investments, which are importantfor protecting the health and safety of ouremployees.
•
•
•
•
•
•

Kiln 1-2 Modernization Investment
Pneumatic Dispatch Line Investment
Bilge Boiler Investment
Investment in Slag Grinding in RP1
Investment in a New Workshop Building
WHR 12 MW Turbine Construction
Investment

TO OUR
01. MESSAGE
STAKEHOLDERS

23.8%

1,761 million TL

CORPORATE
02. OURPROFILE

Overseas Purchase

Our Purchase Procedure, which is valid for all companies of ourGroup, is approved by our Board of Directors. Raw material, energy,
mechanical maintenance, etc. our critical goods group suppliers are put
through an effective pre-evaluation system. The supply performanceof suppliers is scored by user surveys conducted at the end of theyear. We do not have suppliers operating in countries and geographies
where the collective bargaining rights of employees have been
determined to be at risk or where these risks are high.

Domestic Purchase

The Number of Our Suppliers

3.6%

78

ImportAND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENT

5,648 million TL

SOCIAL
07. OURPERFORMANCE

273 new local and three new overseas suppliers were added to our
suppliers, whose number reached 2,185 by the end of 2022. Of these,
584 serve more than one company. In 2022, we made 76 percent of the
supplier expenditures of 7.4 billion TL belonging to Nuh Çimento, NuhYapı, Nuh Beton and Çim-Nak for the goods and services we purchasedfrom our domestic suppliers. Nuh Çimento’s share in this total is about
67 percent.

76.2%

OUR ENVIRONMENTALPERFORMANCEAs Nuh Çimento Group, we create an important economy with the raw
materials, products and services we purchase during the processes
from the preparation of our products, which have reached record sales
levels, to the sale. In the Economist Magazine July 2022 evaluation,
we took part in the ranking of the 50 most powerful Purchasing and
Supply Managers in Turkey according to the purchase volume.

03.

Supporting the Local Economy
with Our Purchasing Practices

ECONOMIC
06. OURPERFORMANCE

We have created purchasing processes in international standards
with the most up-to-date SAP Supplier Evaluation software and ourapplications such as the Purchasing Portal Project. In this way, we
ensure that standards on legal compliance, occupational health andsafety, cost advantage, environmental compliance, energy efficiency,
quality and sustainability can be controlled.

Distribution of Our
Procurement Costs

96.4%

2,107
Local

09. ANNEXES 08.

Our Purchasing Systems and Supplier Selection

49

GROWTH IN
INTERNATIONAL MARKETSIn the first nine months of 2022, the total
cement production of the members of the
Cement Manufacturers Association of Turkey(TÜRKÇIMENTO) decreased by 8.5 percent
compared to the same period last year to
53 million 673 thousand tons. According
to the provisional data of the Exporters’
Associations, the total export amount of
the cement sector in the January-November
2022 period decreased by 10.4 percent
compared to the same period of the previous
year and fell to 25 million 300 thousand
tons. The cement exports of the sector
showed an increase of 2.4 percent comparedto the same period last year. The decrease
in clinker exports reached 29.3 percent. The
total exports of the sector consisted of 17.2
million tons of cement and 8.1 million tonsof clinker.

Our Goal

Increasing our exports
Realized 2022

79%

Target 2023

Minimum70%

We received the championship award in
the category of the Top Exporter in thegeneral cement sector (including clinker)
in the 2021 Turkish Exporters Assembly(TIM) Top 1000 Exporters List, announced in
2022. We export our products to more than
50 countries in North America, Africa andEurope. In 2022, our total exports amounted
to 259 million dollars, an increase of 54
percent compared to 2021. Our exports to
the USA reached 227 million dollars with anincrease of 71 percent compared to 2021.

Our Export (Thousand tons)

Total

3,898
3,489

655

864

1,892

2,499

Total

CementClinker
2020
50

2021

Nuh Çimento 2022 Integrated Annual Report

2022

North
America
Our share in cement
exports from Turkey
to the USA

Total

4,391

88%
44%

4,553

4,353

Distribution ofExport Markets

1%

Africa18%

Our share in the totalexports of the cement
sector of Turkey

2.5%

Our share in theworld cement trade(by sea)26%

Our share in cement
exports from Turkey (bysea)

TO OUR
01. MESSAGE
STAKEHOLDERSECONOMIC
06. OURPERFORMANCE

Our rate of increase intotal exports (USD)

Our rate of increase intotal exports (TL)

SOCIAL
07. OURPERFORMANCE

186%

54%

OUR ENVIRONMENTALPERFORMANCE

Europe09. ANNEXES 08.

11%05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT

03.

THE LARGEST EXPORT MADE FROM A SINGLE LOCATION
IN THE HISTORY OF THE TURKISH CEMENT SECTOR AND
IN THE WORLDCORPORATE
02. OURPROFILE

4,55 MILLION TONS OFCEMENT AND CLINKER

51

DIGITAL TRANSFORMATIONOur Goal

Proses operasyonlarımızda
dijital dönüşümü
gerçekleştirmek
Realized 2022

68%

Target 2023

74%

Our digital transformation journey within
the scope of our business processes at NuhÇimento started with equipping our company
with IBM AS 400 computer systems in 1995.
In 2000, we started using Enterprise Resource
Planning (ERP) software. In our ongoingdigitalization journey with the automation
systems, database, quality management
systems installed at various stages of
production, the establishment of fiber
substructures, the document management
system, the opening of dealer and intranet
portals, the existing infrastructure andsystems have been updated in a certain orderand as needed.
These investments have provided
performance improvement throughout thecompany. Sales processes have started totake place in a more controlled and fastmanner with the renewed automation
systems, and customers can access their data
online faster thanks to the Dealer Customer
Portal. Thanks to the updates made to
the technical infrastructure and software
processes, support and effort costs have been
reduced to a minimum.

Our Digital Transformation
Activities
Among the works we carried out during thereporting period are updates, reformation
and renovation works. In 2022, we allocatedan average budget of TL 9 million forvirtualization, automation systems, enduser computers and application licensing
investments and camera systems. All these
efforts are continuing.
Updates: Scale Automation System,
52

Nuh Çimento 2022 Integrated Annual Report

System Room Control Systems, Document
Management System, Personnel
Attendance Control System, Occupational
Health and Safety Application, Corporate
Internet Sites, Fiber Infrastructure,
Intranet Portal, Endpoint Security, Backup
Application, are HelpDesk works
Other Works: Expansion of Online
Meeting Usage, e-Document Application
Improvements, Port Turnstile System,
Lawn Dining Hall Turnstile System, PDKS
Hardware Renewals, T.R Ministry of Health
HEPP Code Integration, Firewall Hardware
Upgrades, Backup Unit Hardware Upgrades,are preparations for DLP Application
Commissioning

Production Lines Automatic
Operator System
The studies that we started with thecommissioning of intelligent processcontrol systems in the third production
line in 2014 continued with the installationof a factory production and maintenancereporting tracking system in the same
year. drive modernization in 2015,
PLC (Programmable Logic Controller)
Programmable Controller and Scada (energy
tracking) systems modernization in thefollowing years, gas analysis systems,
weighing systems and improvements in
raw material analysis systems, new raw
material analysis systems placed wherecrushers are located were important steps
in the transformation.
With the intelligent process control
systems commissioned in the first
production line, condition surveillancesystems commissioned in farin mills andcement mills, energy tracking systems,
digitalization of shift reports, updating of
automation network infrastructure andcyber security studies, our transformation
journey continued without losing speed in
our production processes.

Our Works for the
Period 2022
In 2022, we increased the usage rate of theKiln 3 Expert system (Advanced Process
Control System) and made progress in more
efficient kiln operation. We have started
the commissioning of the Kiln 2 Expert
system and we aim to complete it in 2023.
OT cyber security studies have beenbrought to the purchasing stage. The

commissioning process will be completed
in the first half of 2023. QCX Advance
Quality Control System commissioning
studies have been completed. The 3Dmodeling works to be carried out in the highgoods and low goods stock hall areas arecontinuing and we aim to complete them inthe first quarter of 2023.
The project related to the update (upgrade)
operations of cement mills 1,2,3 and Tras
mill Scada systems has been completed.
the Çimento1 project was commissioned
in 2022, the Çimento 2,3 and the Tras Millwill be commissioned in the first quarter of2023.
In order to develop computers and otherdevices used in IT infrastructure in a
way that causes minimal damage to theenvironment, studies were conducted on
the e-document conversion service and therequirements of power supply used in thesystem room.
With e-document processes, less useof software and hardware assets wasachieved.
With the trainings we have provided
through Nuh Akademi, awareness about
digital transformation has been raisedamong our employees. In this way, it wasseen that there was an improvement in theperformance criteria of the employees.
In the coming period, we plan to create
sustainable and recyclable systems within
the framework of Information Technologies,
to include more artificial intelligence inInternet of Things (IoT) systems and toprovide support for cyber security activities.

Digital Transformation andRisk Management
Our digital transformation efforts also
provided advantages in the scope of risk
management. We have turned the risk of
inefficiency of outdated systems at the
infrastructure and application layer into an
opportunity with the update studies carriedout.
Effect; Risk=Probability*Confidentiality,
Integrity, Accessibility values calculatedwith risk acceptance criteria, before andafter taking action on risks, methods were
defined, the possibility of turning therisk into an opportunity was evaluated.
As a result of the entire evaluation, theThanks to digital reporting applications,accurate information and data werereached faster, reliably, functionally andcompletely. By improving the comparisonand forecasting processes, more accurate
calculation of production forecasts
increased productivity.

•

Thanks to the improved systeminfrastructure in order for users to accessthe appropriate data within the frameworkof access authorization matrices, tracking of
performance criteria with Key Performance
Indicators (KPI Key Performance Indicators)
was provided.

•

They have made positive contributions to
the quality of the product.

•

It provided the production units with theopportunity to observe some importantparameters related to the factory from asingle point.

•

We have increased productivity by ensuring
optimization in production with intelligent
process control systems and minimizing
errors that may occur due to the operator.

Gains Related to Occupational
Health and Safety•

Reducing the frequency of continuous
failures from the past, developing a more
effective tracking system and reducing
possible hazards through predictive
maintenance on employees the breakdown

With intelligent process control systems,
the amount of coal and natural gas
consumed has been optimized by reducing
and the energy consumption per unit ofproduction has been reduced.

•

With the virtualization studies carried out,
the number of physical servers was reduced
and a positive increase in energy efficiency
was achieved.

•

Using the software for finding
optimal points or training exercisesby adding an application feature to
the Kaptan.

•

We carry out the disposal and recyclingof IT equipment in accordance withenvironmental regulations.

•

Making Kaptan available on different
platforms as an application•

Also improving the data used by
Kaptan for retrospective consistency
and health screening. Improving thequality of the data pool.

•

Examining the specific energy usage
parameters as well as the quality
and production parameters.

The Targeted Gains of the Project
Effects on Product Quality
This digital transformation project will help
to keep the natural fluctuation in productquality in a narrower band. The quality will
increase because there will be less deviationfrom the target. Since there will be lessdeviation from the target in a positive
direction, a decrease in production cost
will also be achieved. It will be possible tomeasure this effect through the reduction instandard deviation when the project is useddaily.

TO OUR
01. MESSAGE
STAKEHOLDERS

03.

Future Plans

Kaptan Project
The first milestone of the Kaptan Project, whichis the intellectual capital of our company andprovides fast decision-making based on quality
and production parameters that have beencollected with great care for many years andlooking forward, is the Dayanımcı Project, which
we launched in May 2018 and serves to findthe strength (quality information) in advanceof 28 days. The naming rights of the project,
whose Excel version was registered in July 2019,were protected by Nuh Çimento. In addition
to the time investment spent on developing
the algorithm for the Kaptan Project, which
we officially started in December 2019 by our
General Manager, we continue to invest in otherdigitalization issues.

CORPORATE
02. OURPROFILE•AND
04. STRATEGYMANAGEMENT•

Production continuity was ensured bypreventing chronic failures that caused unit
downtime and production losses.

Environmental Gains

Simulation feature will also be added tothe project and accordingly, the courseof the basic indicators of production andquality will be simulated according to the
input data. The simulation will be used
for emission values, for example, possible
values can be seen in advance using themethod of comparing similar days.

05. SUSTAINABILITYMANAGEMENT•Electronic prescription application has
started in Workplace Medicine modules.

Effects on Emissions

ECONOMIC
06. OURPERFORMANCE

Gains Related to
Production Efficiency•

It was made easier to send the training
records provided to the personnel to the
Ministry of Labor and Social Security
system.

With the transition to regular use, energy
can be saved by reducing the specificsurface area values in the band of 100300 points in accordance with the target.

SOCIAL
07. OURPERFORMANCE

Data classification is carried out at NuhÇimento with the information classification
policy and DLP software created within theframework of ISO / IEC 27001 audits, and thenecessary actions are taken in this context.
Compliance control requirements analyzed in
ISO/ IEC 27001 ISMS, 6698 KVKK, 5651 Legal
Log Management, E-Signature Law, Company
Policy and Company Ethics Rules are followedby the Legal Department, Human Resources
and process owners. The e-document processes,
whose registration control criteria have been
determined, ensure that the data is kept
cryptologically secure.

•

Effects on
Energy Efficiency

OUR ENVIRONMENTALPERFORMANCE

Data Securitypressure has also decreased.
This also led to a decrease in the number ofoccupational accidents.

We plan to complete the Kaptan
Project by 29.10.2023.

09. ANNEXES 08.

purpose/goal plan has been created and theprocess is being followed by the persons
responsible.

53

OUR SOCIAL PERFORMANCE
The most important elements of our social performance at Nuh Çimento are the health and safety of ouremployees, their development and the long-term employment of talented employees. While our accident
frequency rate decreased by 39 percent in 2022 compared to the previous year, we continued to support
the development of our employees with the Nuh Akademi platform.

As a result of the efforts of our Human Resources Department, we have won the Great Place To Work
Turkey’s Best Employers 2022 award, as well as the Great Place To Work Certified Production’s Best
Employers 2022 Second Place and ‘Best Millennials Turkey’s Best Great Workplace For Millennial
Employees’ awards.

07

OCCUPATIONAL HEALTH AND SAFETY
Our Goal

Reducing the frequency ofoccupational
Occurred 2022

5

Target 2023

0

As Nuh Çimento, we operate in a sector where
the risks of occupational accidents are high. Our
most important responsibility and priority in all our
clinker cement production activities is to protect
the health of our employees and ensure theirsafety. Because about 60 percent of the bluecollar field team of about 200 in our facilities areworking in closed areas, hot jobs, high-altitude andexcavation works.
Our policy, which guides our company in
Occupational Health and Safety (OSH)
management, is our OSH Policy, which wehave prepared within the scope of integrated
management systems and which has been
approved by our General Manager. With theTS-45001 Occupational Health and Safety
Management System, our goal is to work towards
infrastructure, certification and applications
that are accepted in the world, to maintain our
employees to internalize and say, “The Safety of
My Job Starts with Me!” And to achieve our goal ofzero accidents by eliminating unsafe situations in
the business environment.
There is a formal Work Permit Control Systemin our fields related to specific jobs identified as
potentially hazardous in terms of occupational
health, safety and process safety. We carry out
practices aimed at ensuring communication andmutual understanding between the personnel who
will work (company and/or contractor personnel)
and the factory personnel responsible for the
execution of the work regarding the hazards that
may arise and the necessary measures to be taken.
During the reporting period, there were no
accidents resulting in death at our facilities andno occupational diseases were detected. We have
reduced our accident frequency rate from 5.29
percent to 3.24 percent.

56

Nuh Çimento 2022 Integrated Annual ReportOHS Committees
One of the most important parts of the TS-45001
management system is employee participation.
All employees feel that they are a part of job
security by reporting dangerous situations on
the field with the system established to report
any nonconformities they see. We also informthem of the actions taken and follow them up.
By taking part in committees such as Emergency
Committees, Risk Analysis Teams, OHS Coaches,
employees can communicate their thoughts
and suggestions to senior management without
hierarchy limits and take an active role indecision-making processes. The procedures
containing our understanding of security
have been prepared with the participation of
employees involved in production, maintenance,
and all field activities.
The agreements we have made with the tradeunions also cover OSH issues such as the use of
personal protective equipment and not working
in case of risk. We carry out our performance
evaluations through external audits andcomparison studies with the Cement Industry
Employers’ Association (CEI).

OHS Risk Management
Both within the scope of the TS-45001
Management system and in accordancewith the Occupational Health and Safety
Law No. 6331, we determine routine andnon-routine risks in detail in accordancewith the Risk Assessment Procedure witha team consisting of employees at various
levels up to employees, representatives andunit supervisors who have received training.
According to the risk prevention hierarchy,
we review all measures, respectively, from
eliminating the risk at the source, choosing
the less risky one, engineering measuresand the use of personal protectors. We
are constantly improving the system with
the information received from incidents
such as accidents and near-misses, risk
notifications and audits.
Minimizing OHS risks is of criticalimportance for organizations. Psychosocial
risks are increasingly considered to be
major challenges to health, safety andwell-being at work. Psychosocial risks
also have economic costs to organizations
and society. While problems related to
psychosocial risks highlight issues such as
absenteeism and an increase in personnel
changes in terms of workplaces, decreasein motivation in employees, a decrease injob satisfaction, a decrease in creativity, an
increase in quitting rates occur as results.
It is seen that work-related stress, whichdevelops on the basis of psychosocial
risks, and insufficient psychosocial
risk management increase the risk ofoccupational accidents.
The main goals of a good prevention
design and an effective psychosocial risk
management are to create safe working
systems/environments and to ensure
appropriate communication and behavior atwork. For this reason, we attach importanceto Psychological Health and Safety
Awareness trainings.

Occupational Health and
Safety Trainings
The main way to protect our employees
is to raise their awareness. We provide
compulsory OHS trainings with hightech facilities in practice at the training
center of the Cement Industry Employers’
Association CEIS. We offer training to ouremployees in many topics, especially indoor
working, Lock and Secure with a Label
Try (EKED), accident research, emergency
trainings and employee representative
trainings. We monitor the effectiveness ofthe trainings with measurements. On-thejob conversations and tea chats are othertrainings that we give about continuous
awareness raising and reminding.

2022 Our OHS Training
Activities
In 2022, we started training with the goal ofemphasizing the importance of teamwork,
strengthening cooperation and loyalty
in the team, adding individual strengths
to the success of the team, increasing
individual and team motivation, making
people see their own importance, abilities
and competencies, predicting the likelihoodof potential vulnerabilities creating risks,
and achieving a group performance higher
than the sum of individual performanceby creating team synergy. We gave our
16-hour compulsory OHS trainings throughthe OHS Online Training System, which
we implemented in 2021 with its renewed
content in 2022.

2022

2021

2020

18

2022

2021

2020

16

Results and Achievements
As a result of transferring OHS
applications to the field from theengineer’s point of view, there was asignificant reduction in occupational
accidents. Lost days and equipment losses
due to work accidents have also decreased.

Male Employees

21

For them to acquire theachievements of being a leader andfuture manager in the field of OHS,
we have prepared a special training
program.

Female Employees

Occupational
Health Services
The house of the occupational healthfunction is the department of workplace
medicine. They have responsibilities in risk
analyses and work plans, instructions andprocedures of the system. By conducting
accident investigation and periodic
examinations upon return to work afteran accident, it constantly monitors thephysical fitness of employees. Our healthunit offers 24/7 service. Emergency also
fulfills an important task of the system infirst aid issues.

The program consists of four main parts:
Module 1 - Introduction to Safe
Management (4 days) Module 2 Management of High-Risk Jobs (4 days)
Module 3 - How should OHS Management
Be (4 days)
Module 4 - Program Completion ProjectIn the first module of the program,the elements of safe management areconveyed and the measurement of OHS
leadership and OHS performance andthe reasons why employees behave
in an unsafe manner are focused on.
In the second module of the program,attention is paid especially to technicalissues, focusing on how risks can be
managed and the principles of the work
permit system. In the third module of the
program, subcontractor and contractor
management, PPE (Personal Protective
Equipment) selection, incident root cause
analysis, OSH audit and feedback issues
are explained. The fourth module of the
program consists of a Finishing Project.
The Program Completion Project is a
study in which participants are expected
to develop solutions to a problem theyencounter related to OHS at work with thecoaching / support of an OHS professional
at work, taking into account theknowledge and skills they have acquiredin the trainings they have received in the
program.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.

•ÇEIS Occupational Health and Safety
Leadership Program (ÇEISLIP) is a
development program based on Turkish
dynamics, production habits and specificsolution models, taking into accountlocal and international references. The
program was prepared in order to improvethe managerial and technical skills in thefield of occupational health and safetyof technicians, engineers, chefs andmanagers and OHS professionals at alllevels, who act as a bridge between blue
collar employees and senior management,
regardless of the department andposition they work.

AND
04. STRATEGYMANAGEMENTTo ensure that they can consolidate
their practices and contributions
in working life with activities andpractices in the field of OHS, and

05. SUSTAINABILITYMANAGEMENT•ECONOMIC
06. OURPERFORMANCE33

To be able to understand the root
causes of accidents/incidents andto proactively develop analyticalsolutions for the root causes,

SOCIAL
07. OURPERFORMANCE

33•

As Nuh Çimento, we have implemented
the ÇEİS OHS Leadership Program(CEISLIP) in 2020 in order to improve thecompetence of middle-level managers
in the field of OHS and ensure theirmore active participation in OHS-related
processes. This program continues forour newly joined engineers and othermanagers.

OUR ENVIRONMENTALPERFORMANCE

39

At Nuh Çimento, in cooperation with
Cement Industry Employers’ Union ÇEIS,we had some efforts for occupational
health and safety engineer groups;ÇEIS Occupational Healthand Safety Leadership
Program (ÇEISLIP)

09. ANNEXES 08.

OHS Engineers
Project

Occupational Health and
Safety Trainings(Employee/Hour)57

DISASTER PREPAREDNESSAND RESPONSE
Our Goal

Conducting regular disaster
drills every year
Realized 2022

1

Target 2023

1

Our actions and preparations related to fire,
explosion, spread of dangerous chemicals,poisoning, epidemic disease, radioactive
leakage, sabotage and natural disaster(earthquake, flood, storm, flood, lightning
strike) at Nuh Çimento are available in our
Emergency Action Plans under the titlesof Protection Plan against Sabotage, Civil
Defense Plan, Emergency Plan, Protectionand Security Plan, LTGP (Port Facility SecurityPlan). We have updated our Protection and
Security Plan in 2018, our Civil Defense Plan in
2021 and our other plans in 2022.
Within the scope of Port Facility Security
Plan at least once a year and with all units’
participation and in cooperation with the Port
President and the Coast Guard; we conduct
practical emergency evacuation, assembly,
fire extinguishing exercises, train emergency
crews, process evacuation, search and rescue,flare, explosion, fire and fire protection andearthquake issues in occupational health andsafety renewal trainings, conduct lightning
rod periodic inspections that must be done
annually against lightning, perform periodic
control and maintenance of fire extinguisher
systems and regularly drain loopholes against
floods.
In our Emergency Plan, the principles ofcommunication in emergency situations aredescribed and emergency teams contact
information is included. General law
enforcement and factory emergency units
contact numbers are available in our plans.

58

Nuh Çimento 2022 Integrated Annual Report

We are Ready to Meet the
Need for Water in Case of
Possible Disasters!
Nuh Çimento facilities are surroundedby forests. In case of fire, the company’s
construction machinery and water tankers
will be able to be put into operation quickly
for situations where fire irrigation systems
will not be sufficient.
According to DSI data, annual per capita
water amount in Turkey is 1,346 m3. Our

reverse osmosis facility, which has a capacity of
3,650,000 m3/year, has the capacity to produce
clean water that will be used by approximately
2,500 people annually.
There are social advantages of having a facilityof this size in the region. A natural disasterthat will occur around our facility located in theearthquake zone, etc. in case of need, we havethe opportunity to supply a significant amountof drinking and drinking water to the region
thanks to the full capacity operation of ourfacility.

At Nuh Çimento, where we have adopted a lean
and modern organizational management style, we
select a talent that has the creativity to achieve
our goal and is suitable for the job with completelytransparent and objective evaluation criteria. We
adopt the training and development of each of ouremployees as a basic management responsibility.
Our basic principle is to evaluate the performanceplans of our employees and to ensure equality ofopportunity and justice in horizontal and verticalassignments.
We adopt new working methods by adapting to
the digitalizing world with our vision that attaches
importance to the candidate and employee
experience. We aim to create a pioneering corporate
culture in diversity and inclusion by offering
equal opportunities to each of our employees.
In our company, where talent and success are
rewarded, we offer a career journey that supports
the professional and personal development of ouremployees and is also full of opportunities.

Employee Loyalty
At Nuh Çimento Group, we act with theawareness that the main condition for ensuring
employee loyalty, which is the key to sustainablesuccess, is to engage with and understand our
employees. While ensuring this loyalty as the
Human Resources Directorate, we adopt the
principles of inclusiveness, diversity, equity andWe have led the change by implementing
innovative practices in terms of including newtalents in the company and increasing existing
competencies. All our works that adapt to thecurrent systems have played a major role inincreasing employee loyalty. We have brought
innovative solutions to the relevant areas byevaluating every suggestion received from ouremployees that will contribute to employee
motivation.

Our Employees by Gender

6.4%

FemaleWe have integrated innovative applications
in digital systems into existing systems byimplementing them. Thanks to this, we also
ensured an increase in mobility and activated
24/7 platform access.

We Have Included All Our
Employees in the Health
Insurance Coverage
At Nuh Çimento Group, we have included
our field employees in the complementary
health insurance coverage in 2022. Inline with the demands of our employees,
we have offered complementary healthinsurance to all of our field employees inour group companies.

7.35

93.6%

Male

Our Employees by Location

3.5%İstanbul

Targets
While carrying out active efforts in thesocial field in 2022, we also supported
employment by increasing the number ofgroup employees. We also aim to increase
the number of female office staff for theyear 2023. We offer post-employment

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.

7.64

AND
04. STRATEGYMANAGEMENT

have activities in which the collective bargaining
rights of employees have been determined to be atrisk. There are no employees working at or below
the minimum wage in our company. Our employees
work at different wages according to the groups
specified in the collective agreement.

5.49

05. SUSTAINABILITYMANAGEMENT

All of our employees are serving full-time. The
number of our employees covered by collective
bargaining agreements constitutes 67 percent of
our total employees. In this context, we do not

Employee Turnover (%)

ECONOMIC
06. OURPERFORMANCE

Max 7%

Within the scope of employee engagementin 2022, we took the necessary actions byconducting internal surveys in the studies we
conducted with our employees. These surveys
cover topics such as common areas of use within
the company, services received in-house andprojects planned to be realized. By keeping theinteraction with employees high within theagile organizational structure, we have achieved
development in many areas together.

SOCIAL
07. OURPERFORMANCE

Target 2023

OUR ENVIRONMENTALPERFORMANCE

7%

96.5%

Kocaeli

09. ANNEXES 08.

Realized 2022

We contribute to increasing interaction
by strengthening employee loyalty inthe activities we perform in the social
facilities and social areas located within
our company. We aim to increase social
awareness and strengthen team spirit with
our events and workshops that we plan
to hold in the new event area in 2023. In
event planning, we take suggestions fromour employees through a survey and create
content in accordance with their requests.

2022

Preventing the employee
turnover rate from rising

Nuh Çimento Group follows a transparent andsensitive way to share the common goals of thecompany and to make the mission and vision
definitions understandable by all employees. In
the organizational structure where all employees
are based on seeing and feeling the contribution
they make to the common goals of the company;
we conduct research and reporting in order tomeasure employee loyalty, and together we
implement systems in which employees are
directly involved in order to take the necessary
actions.

competency training and personal training
options to our employees, supportingthem to explore new areas in their career
journeys.

2021

Our Goaltransparency on issues such as social class, agegroup, gender, disability status in recruitment
and human resources policies.

2020

EMPLOYMENT

59

Holistic Well-Being
As Nuh Çimento Group, we continue toattach importance to the holistic health of
all our employees during this period whenthe effects of the pandemic are gradually
decreasing, but infectious diseases arediversifying. With the development
opportunities we offer to our employees
in different fields, we have provided themwith support both in their career journeys
and in their personal development.
We continued to implement the Healthy
Living Ambassadors Project in a way that
all our employees can benefit from in 2022.
We aimed to ensure and protect the holistic
well-being of our employees in the project,which consists of Eating Healthy, Staying
Healthy, Post-Covid-19 Check-Up and
Health at Work applications.
The physical, mental and spiritual healthof our employees continued to be our mostimportant priority. We have also presented
the Eating Healthy, Staying Healthy project(Sağlıklı Beslen Sağlıkla Kal), which we havecreated with the aim of getting better andliving better together, to our employees in2022.
In the Post-Covid-19 Check-Up Program,which is our other application within thescope of the project, all our employees inour group companies received support. In
cases deemed necessary by our workplace
physician, additional examinations wereapplied to our employees. Our employees
also benefited from our latest application,
the Health at Work, Inspection at Field(Sahada Tetkik, İş’te Sağlık) Program. Our
employees participated at a high rate in
all the applications within the scope of ourWellness Ambassadors Project, which aims
to maintain internal well-being and fitness.

60

Nuh Çimento 2022 Integrated Annual ReportNuh Akademi
As Nuh Çimento Group, we attach
importance to supporting the training anddevelopment activities of our employees
as a necessity to always be one step ahead
with our achievements and to maintainour leadership in the sector. We introduced
Nuh Akademi, which we have established
for the continuity of this development anddesigned to cover all employees of the NuhÇimento Group.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.

Minimum
40 Hours

AND
04. STRATEGYMANAGEMENT

Target 2023

05. SUSTAINABILITYMANAGEMENT

44 Hours

ECONOMIC
06. OURPERFORMANCE

Realized 2022

With Nuh Akademi, we aim to support
every employee to be the best in theirfields by bringing them together withtraining and development programs
that will feed their competencies andexpertise in business fields, and . While
nurturing a dynamic organizational
culture that encourages, learns andshares Nuh Akademi’s power from theInternal Trainer System, the internal
trainers aim to add value to ourinstitution and our sector. We aim forall our employees to achieve greater
success under the roof of Nuh Akademi
under the leadership and the mottoes of“Efficiency in Business, Performance inBusiness and Leadership in Business”

SOCIAL
07. OURPERFORMANCE

Increasing the training time
provided per employee

As Nuh Çimento Group, we plan our training
and development activities in accordancewith the alignment of corporate values,
functional competencies and managerial
competencies. In this context, we have carriedout many activities based on learning anddevelopment, such as seminars, conferences,
workshops, sector-specific trainings andtechnical trainings, in order to contribute to
the professional and personal developmentof our employees, support them to do theirjobs more efficiently and increase theircommitment.

OUR ENVIRONMENTALPERFORMANCE

Our Goal

09. ANNEXES 08.

TRAINING AND DEVELOPMENT61

We aim to support our corporate culture andvaluable knowledge based on years in moving
the cement sector and our company forward
by developing Nuh Çimento Group’s technicaltraining within itself. We organize our trainings
as professional qualification programs, separate
contents for office staff and field staff.

40*All Employees

All Trainings
2022

11.7%

3,605 hours
Professional
Development

62

Nuh Çimento 2022 Integrated Annual Report

9.9%

3,034 hours
Other

30,774MBA
We have contributed to the development of
our employees with the Cement Sector MBA
Program,which was designed specifically forthe sector, and was implemented this year incooperation with ÇEIS, TÜRKÇIMENTO and MEF
University. Cement Sector MBA Program content
and course curriculum, unlike other master’sand MBA programs, have been designed inaccordance with the requirements for the futureof our industry and in order to improve thecompetencies of our participating managers andexecutive candidates in this direction. As NuhÇimento Group, we aimed to shed light on theircareer development by ensuring the participationof three of our employees in the program. The
MBA program, which industry leaders also
participated as guest speakers within the scopeof the program, will have its first graduates byJune 2023.

44

2022

With this project, we aimed to create boththe correct competency screening in the
recruitment criteria and the input to theprocesses of career planning and determining
the training needs. One of the new dynamics
of today is to take quick actions in the field oftechnical competencies. In this process, we haveprovided opportunities to increase the technicalcompetencies of all our employees and ensured
the formation of expert staff in their field. In thesustainable education system, we aimed to train
qualified employees with the equipment neededby the cement sector by working on up-to-date
education systems, and to contribute to thelearning and development of employees.

43

2021

In order to improve the technical andprofessional skills of our employees, we have
implemented the Competence Model Project in2022. In order to create an ideal profile within
the scope of this project, we have considered
the competence model in two contexts. Firstof all, we determined the priority behavioral
competencies by taking the opinions of ourleaders on behavioral competencies. In thetechnical competence section; We havedetermined the technical competence areas
and actions together with the opinions we havereceived from our managers by examining thecurrent job descriptions.

Personal and Corporate
Trainings

Average Training Hours*

2020

Technical Competencies

Total Training
Hours

4.2%

1,307 hours
Selfimprovement

74.2%

22,828 hours
OHS

We also organize in-house and outof-house trainings in order to improvethe behavioral competencies of ouremployees and thus contribute totheir career development. Among the
behavioral-based trainings we organized
this year; effective communication,
feedback, leadership, empathy andprocess management trainings that will
add value to our employees in the fields
of cooperation, team management andproblem solving were included. Together
with our functional trainings aimed at the
professional development of our employees
during the year, we have also carried out
collaborations with various universities
and leading training companies in the field
for our personal development training
programs.

Engineering Education Programat Work
Every year, the top 10 most successful
students in engineering branches areincluded in the Engineering Education
at Work Program initiated by Kocaeli
University. In the program in which
Nuh Çimento includes two students,
the manager of the facility where thestudent works in the second semester ofthe fourth year completes the student’s
education and has the right to give thesemester grade taking into account the
study performance. In 2022, we employeda student who participated in the programat Nuh Çimento in the sustainability
department of our company after
graduation.

63

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSOUR ENVIRONMENTAL PERFORMANCE
Ensuring environmental sustainability is the basic
element of our daily activities and decisions at NuhÇimento. Although our priority is compliance withenvironmental legislation, energy efficiency and recovery,in addition to alternative raw materials and fuel use,water, waste and biodiversity management are issues ofstrategic importance for our company.

As Nuh Çimento, in 2022, within the scope of
Kocaeli Chamber of Industry 28th Şehabettin Bilgisu
Environment Awards, in addition to the “Large-Scale
Sectoral Environment Award”, the “Sustainability
Awareness Honor Award” we won, at the Economist
Anadolu 500 Awards and the “Awareness Raising
Institution Award” at the Tulip Environment Awards.

08

Our Investments
At Nuh Çimento, we manage all ourenvironmental priorities within the scope of ourISO 14001 Environmental Management System
and Policy, and the relevant legislation. In
2022, the budget we allocated to the operating
expenses of environmental activities and otherenvironmental protection investments was
TL 37.2 million. While our total environmental
expenditures increased by about two times
compared to last year, the largest share in theseinvestments was taken by expenditures foremission reduction efforts with 50 percent.

Environmental Compliance
There are no penalties incurred as a result of
non-compliance with environmental laws andregulations during the reporting period.

Our Environmental Expenditures (TL)

2.2%

49.8%

824,876

18,530,197

Permissions andLicense Management

18.7%

EmissionManagement

37,215,490

6,948,841

Workmanship

Total

Site Inspection Reports on
Environmental Impacts
We continued to monitor our environmental
impacts caused by our activities in 2022. 63
Field inspections related to the detection andmanagement of environmental impacts werecarried out in the units located throughout ourfactory, and we completed our actions related
to the reported improvement areas during thereporting period.

29.3%

10,911,577

Waste Management

We Continued our Investments
to Fight Climate Change in 2022
as well!
Our Energy-Focused Investments that We
Started in 2022
1-Alternative fuel combustion system
2-Conversion of rock trucks to electric
Energy-Oriented Investments that We arePlanning in 2023
1-Alternative fuel preparation and feeding
system
2- Two WPP (Wind Power Plant)
investment

66

Nuh Çimento 2022 Integrated Annual ReportMax
860 kgOur Greenhouse Gas Emissions
from Our Activities (tCO2e)7%*247,593

Greenhouse Gas
Releases (Scope 2)

Our Greenhouse Gas Reduction
from Our Activities (tCO2e)

21.9%

1.4%

15,616992

Kuşluk HEPP

4,109,863

Electric Vehicle•

We calculate our emissions according
to the Regulations on the Monitoringof Greenhouse Gas Emissions andCommuniques on the Monitoring andReporting of Greenhouse Gas Emissions.
The data of the three main processchimneys in our factory are continuously
monitored and controlled by thelegal authority with the continuous
measurement system connected
online to the Ministry of Environment,
Urbanization and Climate Change. Thesechimneys are European standards of 50
mg/Nm3andwork well below the upper
limit value 3-17 mg/Nm3, with average
emissions. Our data on chimney emissions
are in our report, under the title Tables of
Performance Indicators
In addition to all fuel and raw material
carbon analyses at Nuh Çimento, theemission coefficient analyses of fuels are
performed by accredited organizations
such as the Turkish Cement Industrialists’
Association (TCMB) R&D Laboratory. Scale
data and emission calculations are also
verified by accredited organizations.

71,422
Total

93%

3,862,270

Direct Greenhouse Gas(GHG) Emissions (Scope 1)

76.7%

54,814

Waste Heat Recovery (WHR)*Instead of the electricity carbon coefficient of 0.535 used in previous years, the coefficient of 0.447 publishedby the Ministry of Energy has been started to be used. Therefore, there has been a decline.

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCE

Total

TO OUR
01. MESSAGE
STAKEHOLDERS

Greenhouse Gas Monitoring andVerification

03.

Target 2023•

Production of products with low clinker
content
Production and use of renewableenergy by Waste Heat Recovery (WHR)
Plant and Hydroelectric Power Plant(HEPP)
It is the reduction of specific energy
through efficiency projects.

AND
04. STRATEGYMANAGEMENT

864 kgDecreasing the greenhouse gas emissions
that occur in every activity in the cement
sector, starting from the kilns to packaging
and transportation of products, is among
our environmental goals. 50 percent of
the greenhouse gases released during
production are due to decarbonization(cooking) of raw materials, 40 percent are
due to burning fossil fuels, and 10 percent
are due to electricity consumption andtransportation.
As Nuh Çimento, we started to do studies
by setting greenhouse gas reduction
targets at a time when even the country’s
strategies for reducing greenhouse gases
and their effects had not yet been finalized.

•

05. SUSTAINABILITYMANAGEMENT

Realized 2022

Greenhouse Gas Sources in
Cement

The most important of these studies are;

ECONOMIC
06. OURPERFORMANCE

Reducing the amount ofgreenhouse gases generated by production

At Nuh Çimento, we are turning to lower
carbon-producing energy sources with thegoal of combating climate change, cleaner
air and a cleaner environment. in 2022, we
provided 28.4 percent of the electrical energy
we used from renewable energy sources.

SOCIAL
07. OURPERFORMANCE

Our Goal

CORPORATE
02. OURPROFILE

CLIMATE CHANGE AND ENERGY MANAGEMENT

67

Our Performance in Reducing Our
Carbon Footprint withEnvironment-Friendly Products
Nuh Çimento is a company with a highenvironmental sensitivity that carries out
its activities in line with carbon reduction
targets in accordance with the sustainability
strategy and adopts the zero waste target in
addition.

Share of Total Production

3%

22%

Blast Kiln
Slag

Cement with Low
Clinker Ratio

Greenhouse gases take the largest shareof the emissions generated in cement
production. as a result of our R&D andproduct development studies, which started
in 2018 and continued in 2019, we havedeveloped environmentally friendly productswith a low carbon footprint and higher
strength as a result of containing less clinker.

25%
increase

119,233

138,001

27%
increase

110,832

2%

Cement Clinker Ratio(%)
68

Nuh Çimento 2022 Integrated Annual Report

Recovered Earned(tons/year)

2022

2021

2020

2022

2021

2020

2022

2021

2020

44,33453,73878.3

93,653decrease

80.3

In 2022, we reduced our carbon footprint by
119,233 tons thanks to 138,001 tons of clinker
savings, by increasing the amount of cementwith additives and reducing our cementclinker ratio by two percent in our domestic
market sales, where we manage our productsales preferences more effectively comparedto the foreign markets where we makecontract manufacturing.

Turkey Sales Carbon Footprint Reduction Performance

85.7

We have completed the research andfeasibility studies for the use of the chemical
CaF2 (calcium foride), which is briefly
defined as a mineralizer, which reduces theheat energy required for the clinkerization
reactions in the rotary kilns, which is themain source of greenhouse gas CO2 emission
in the cement industry, and we started thesale of our low carbon footprint products.
In 2022, we saved a total of 265,213 tons ofclinker with our sales of doped cement andmilled blast kiln slag in the domestic andforeign markets and reduced our carbon
footprint by 229,144 tons. 40 Percent of
this footprint reduction took place in thedomestic market.

75%

Cement with HighClinker Ratio

Reduced Carbon Footprint (tons/year)

We continue our measurement and monitoring studies, which are the most important step of carbon
reduction studies, in our entire product range. The greenhouse gas generated per ton of product we
produce kg CO2/ton is in the graph below.

864.0

802.7

798.3

801.7

825.1

799.8

Cement (average): 773.6

722.7

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERS

Greenhouse Gas Generated Per Product We Produce (kg CO2/ton)

ECONOMIC
06. OURPERFORMANCE

Emission Reduction with
Blended Cement

40%

SOCIAL
07. OURPERFORMANCE

Domestic Market Sales

0.817

OUR ENVIRONMENTALPERFORMANCE

0.786

0.781
0,7

0.688
0.629

0.663

0
2017

2018

2019

2020

2021

2022

60%
Export Sales

09. ANNEXES 08.

1

05. SUSTAINABILITYMANAGEMENT

)
V/
A(
SP
M

S4
IIB
M
CE

CE

25

25
M

IIA

S4

G_
PK
C_

Cementitious CO2 /ton product

R

R

R
HS

N
I5

CE

CE

CE

M

I5

CE

M

25

25

CR
N_

25
I4
M

M

I4

CE

25

cli

R_

SR

nk
er

5

R

AND
04. STRATEGYMANAGEMENT

419.9

03.

553.0

69

Electricity Consumption (TEP)

Energy Management
As Nuh Çimento, we operate in an energy-intensive sector and in a country thatis more than 70 percent dependent on external sources for meeting energy needs.
Energy, as the largest cost item of the cement sector, represents about 60 percent
of operating costs. It takes about 110 kWh of electricity and 3-4 GJ of fuel energy
to produce one ton of cement. Using energy by giving priority to efficient andenvironmentally friendly sources without compromising cement/clinker production
quality, production quantity and, most importantly, occupational safety is one of
the environmental responsibilities of our company.

28.4%

13,548Supplied from Renewable
EnergyOur goals within the scope of our Energy Management System Policy are;
•
•
•
•
•

Ensuring compliance with the relevant laws,
Monitoring and reducing energy consumption,
Improving energy efficiency,
Reducing greenhouse gas emissions andRaising awareness of energy among our employees

47,626
Total

Energy Density

71.6%

34,07844

65

Cement (kWh/ton)70

Nuh Çimento 2022 Integrated Annual Report

Clinker (kWh/ton)

2020

2022

2021

2020

2022

2021

2020

3.5

3.5

3.4
2022

45

64

2021

46

66

Purchased From the
State

Fuel Clinker (GJ/ton

157,561,650

The Cost of Electricity That is Not Purchased(TL Savings)

315,123,300

The Amount of Greenhouse Gases Prevented(ton CO2e)70,430CORPORATE
02. OURPROFILE

Electricity (kWh)TO OUR
01. MESSAGE
STAKEHOLDERS

Renewable Energy Production Information (WHR Facility and HEPP)

Distribution of Our Renewable Energy
Sources (TEP)

22%

3,004

03.

Hydroelectric Power
Plant (HEPP)

13,548The aims of starting this project are; toeliminate the time spent by the mechanicalmaintenance unit for these equipment, toincrease the boiler efficiency, to prevent
dust adhesion, to remove the materialpurchase for the mechanical hammer
assembly used in the hammering system,
to reduce the amount of air leakage into
the system (between seven and ten
percent) ) to keep it at five percent andbelow, to end the electricity consumption
by removing the motors from use. We plan
to complete the project, which will takeabout three months, in the first months of2023.
Economic Results and Gains: Since 24
electric motors will be disabled, we willsave approximately TL 369,600/year

Social Results and Achievements: We
anticipate that the hammers encounteredin the controls in the boiler area will nothave a crashing sound and a high decibelvalue, and there will be no workspacedifficulties caused by the outdoor units of
the hammers.

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCE

When we examined the annual
maintenance amounts of the existing dust
cleaning system, which is a mechanicalsystem, the changing number of parts,
the working time and efficiency of theequipment used, we decided to switch to apneumatic air quenching system.

electricity expenses for 8,000 working
hours per year.

SOCIAL
07. OURPERFORMANCESP Boilers Dust Cleaning System
Replacement Project

OUR ENVIRONMENTALPERFORMANCE

Energy Recovery from
Waste Heat (WHR)

09. ANNEXES 08.

78%

10,544AND
04. STRATEGYMANAGEMENT

Total

71

The Project of Converting Construction Machines Used in the
Production of Raw Materials from Diesel to Electric Vehicles
Çim-Nak, a subsidiary of Nuh Çimento, supplies
20,000 tons of raw materials needed for cement
production daily to the cement factory with raw
material extraction, drilling and loading tools.
Construction machinery working in raw material
mines consumes more than two million litersof diesel fuel in a year. Diesel fuel is the most
costly item in raw material mines, as well as animportant CO2 emission source.
In addition to this environmental impact, withthe aim of reducing fuel and maintenancecosts, 10 excavators were converted to electric,
five of them in the 2018-2020 period, four in
2021 and one in 2022, as a result of two yearsof engineering work. In 2022, there was a firstin the quarry business with the conversionof the vehicle into an electric construction
machine without dismantling the diesel engine.
Conversion work continues in our workshop for 1
excavator, which is targeted to be converted by
the end of 2023.

Our goals in the electric vehicletransformation;•

Completely eliminating the consumptionof diesel fuel in all construction machines
working in raw material mines,•

Ensuring that the project pays for itself
in a short time without any government
incentive,•

Realizing the electrical transformation
project without changing the mine operating
habits that have been going on for years,•

Reducing fuel and maintenance costs andto protect the environment by reducing
exhaust emissions by electrifying the powertransmission units and engines of dieselpowered raw material extraction, drilling
and loading vehicles.

Work Efficiency
A possible loss of efficiency was the biggest
concern among both the operators and thecolleagues in the technical team. While thescrapping of a machine that cannot be operated
because its performance and engine efficiency
are too low is on the agenda, the new machine
has achieved its performance with electric
operation. There was no efficiency loss in the
excavators converted to electric compared todiesel, the measured data are almost exactly72

Nuh Çimento 2022 Integrated Annual Report

the same output Other construction machines,on the other hand, did not fall below theperformance they showed when working withdiesel fuel. They work very efficiently both interms of loading speed and breakout power.

Energy Efficiency
The most exciting result of this project wasthat the energy consumed and the resulting
energy efficiency could be calculated.
Previously, when loading one ton of raw
materials (marn), we spent 0.175 liters ofdiesel fuel. (This data is the average ofa year’s consumption and represents anefficient business. 0.175 liters of diesel fuelcontains about 1.70 kWh of energy.)
We measured that electrically powered
construction machines consume 0.45 kWhelectricity while loading one ton of marn.
This figure also includes the mine lighting
and the energy loss in the cables. Fromthese data, it turned out that the diesel
engine efficiency is only about 25 percent
under mine operating conditions, while
the electric machine works with 95 percent
efficiency. In summary, we found that
construction machinery powered by mains
electricity consumes 3.8 times less energy
than those powered by diesel fuel.
Fuel Saving
The diesel fuel savings achieved since
the implementation of the project haveexceeded two million liters. The monthly
savings are at the level of 74,000 liters. In
addition to saving millions of pounds, theannual savings will amount to three million
liters with the newly converted machines.
thanks to our 10 electric construction
machines, instead of using 892 tons ofdiesel fuel in 2022, electricity consumption
was 2,995 MWh.
The emission rates of vehicles decreasedby 39 percent to 56 percent. In 2022, weprevented the release of 992 tons of CO2
into the atmosphere thanks to our electricvehicles. Our greenhouse gas reductions
from electric vehicles still correspond toabout 1.4 percent of our total reductions.
In order to increase this rate, we willcontinue to work on the conversion of all
construction machines working in the mineto electric in the coming period.

Completing the conversion of all rocktrucks to electric and to achieve thezero carbon target at our mine site.

TO OUR
01. MESSAGE
STAKEHOLDERS•CORPORATE
02. OURPROFILE

Provided that the electric, dump-filled
truck can complete the track in thesame time as the diesel version byusing regenerative braking from theloading point to the unloading point,

03.

•

Although it is a project that is closely
followed both in our country and ininternational circles due to the fact that
it is a study conducted for the first timein the world, it is of great importance forour country that the Turkish company is
the host and leader of this project. As aresult of the project we have initiated withthis awareness and vision, our enterprisewill have gained 10 battery poweredrock trucks in line with the zero carbon
target, in addition, the stakeholders
we are conducting the project with andcontributing to the project will be able toswitch to mass production of tried andapproved rock trucks and make a large
profit and contribution to their companies.

AND
04. STRATEGYMANAGEMENT

The electric, empty dump truck cancomplete the track from the unloading
place to the loading place in the sametime as the diesel version, and

05. SUSTAINABILITYMANAGEMENT•ECONOMIC
06. OURPERFORMANCE

Gains of the Project

SOCIAL
07. OURPERFORMANCE

Our goals in this project are;OUR ENVIRONMENTALPERFORMANCEIn the project, which has been in the
preparatory stage since 2020, we started
engineering works as of January with thesigning of a contract with the headquartersof ABB company in 2022. Within thescope of the project, we aim to prevent air
pollution by zeroing carbon emissions frommobile transportation of raw materials by
2030, by converting all of the 8 Euclid andtwo Hitachi brand trucks, which are usedas diesel in the mine sites, from diesel tobattery electric. In line with this goal, ourtechnical negotiations with ABB Turkey
and the Global team are continuing, and weplan to complete the first prototype vehicle
within the scope of the project by mid-2023
and become active in the field.

09. ANNEXES 08.

E-Dump Truck
Retrofit Project73

MATERIALS MANAGEMENTAs Nuh Çimento, we are a member ofa sector that obtains its raw material
through mining activities and using natural
resources and uses intensive energy inproduction. We group the materials used as
inputs in production in the cement sector
as raw materials, auxiliary materials andfuels.

Our Goal

Increasing the use of waste
as an alternative raw material
Realized 2022

410,196
tons/year
Target 2023

275,000
tons/year
Raw Materials and Auxiliary
Materials
We are constantly evaluating alternative raw
material sources from different sectors in orderto reduce the use of natural raw materials
in our company. We attach importance to acareful and reliable mining management, andwe use the reserves of our mine in an optimal
way by drilling. We are researching alternative
mines and opening them to service in order toguarantee our activities in the coming years. We
monitor our performance with indicators suchas the use and distribution of alternative raw
materials, CO2 emissions, and quarry reserve
lifetimes.

Our Waste Usage (tons)

1.5%

Alternative
Fuel

Use of Alternative Fuels
and Alternative Raw
Materials

Economic Results and GainsThe net profit we made by using
alternative raw materials and alternative
fuels was TL 104.6 million in 2022.

In order to reduce the use of natural
resources and greenhouse gases caused byfuels, as well as to reduce the associatedfuel and raw material costs, we use waste
instead of the primary main raw materials
and fuels. in 2022, we provided 0.6 percent
of our total energy obtained from fuelsfrom waste within the scope of alternativefuel use. Our goal is to provide 0.5
percent of the annual heat energy we usefrom waste and also to use at least 275
thousand tons of waste as raw materials.

Social Results and Gains
We have become a solution partner for
the waste problems of municipalities
and organized industrial zones that haveproblems with waste.

In this context, we obtain the necessary
permits by conducting waste negotiations
with companies and following legal
processes. We analyze the incoming
materials and prepare waste usage
prescriptions. By using the appropriate
waste during the production phase, we
reduce the amount of waste that has thepotential to pollute the environment, as
well as reduce our fuel and raw material
costs. In the coming period, we aim toincrease the amount of waste we use
by making investments in new waste
incineration and feeding systems.

Environmental Results and Gains
We have reduced our greenhouse gas
emissions and our consumption ofnatural resources by using waste insteadof natural resources. in 2022, within
the scope of sustainability and energy
acquisition, we prevented the formationof carbon dioxide, which corresponds tothe carbon dioxide reduction of about
1.26 million trees while restoring 416.6
thousand tons of waste to the economy.

Use of Alternative Fuels and Alternative Raw Materials
Waste Used Instead of Raw
Materials

Substituted
Natural Material

Iron slag (Fe2O3)

Fe2O3 (instead of iron silicate)

Grit (Fe2O3)
Plaster waste (SO3)2022
Substitution Rate
75.93%

SO3 (instead of plaster)

0.35%

CaO (instead of marn mine)

1.88%

CaO (instead of limestone)

0.08%

Instead of a bauxite

18.37%

Concrete waste
Brick Waste
Bleaching earth
Drilling mud
CalciteLime waste
Bottom ash
Sludge with aluminum content

98.5%

Alternative
Raw Material
74

Nuh Çimento 2022 Integrated Annual Report

Fly ashVitrified Discards

FuelsFuels and electrical energy make up a largepart of the costs in our sector. For thisreason, this issue is of critical importancein terms of profitability and inventory costson the one hand, and production continuity
and emission control on the other. We
track our performance with indicators suchas alternative fuel usage rate, specificelectricity consumption, specific calorie
consumption. Our goal is to contribute to
the economy and the environment by using
energy and natural resources efficiently.

Economic Results and Gains:
Cement 1-2 production capacity increasedby an average of 50 tons/ hour with 65
tons of cement-thin clinker milled at thetras mill. During this period, when webought cement from outside and planned
to invest in a new mill, we reduced costs
and increased turnover with the extra
capacity gained.
Environmental Results and Gains:
We have achieved savings of 1-2 kWh in
specific energy consumption.

The Project of Transformation of Coupled (Sleeve)
Connected Reducer Motors
Used Throughout the
Factory
Due to problems such as prolongationof downtime due to gear damage during
disassembly and formation of oil deposits
in the working area due to failures incoupled motor reducers, we started
the project by using the coupling andflanged connection type; eliminatingthese problems, reducing equipment/
unit downtime that may occur at the endof the engine search process suitablefor equipment in accidental cases,
preventing additional downtime and laborcaused by oil loss and seal change during
disassembly, reducing dependence on asingle type of motor, and aimed to expand
the area of use of electric motors of thesame power by reducing the dependence
on a single type of motor.

Social Results and Gains:
Coordinated work was ensured between
the teams and the applications thateach team will make during disassembly
and assembly were determined moreclearly.
Environmental Results and Gains: The
formation of oil deposits formed in thework area and the related environmental
pollution were prevented.
Our Equipment to be Installed in theYear 2023 and the Savings We will
ProvideWe plan to save 24 liters of oil, 9.5 tonsof coal, 190 tons of clinker and 100 tonsof cement in three different areas.
Future Plan: We will modify the
gearbox-motor connections of theequipment determined on a unit-by-unit
basis throughout the factory according
to the needs, as specified in the project.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

0.5%

Economic Results and Gains:
We have achieved a reduction in oil
consumption and downtime during
disassembly, and our dependence ona single type of electric motor and the
manufacturer has disappeared.

05. SUSTAINABILITYMANAGEMENT

Target 2023

ECONOMIC
06. OURPERFORMANCE

0.6%

SOCIAL
07. OURPERFORMANCE

Realized 2022

We aimed to increase the cement
production capacity by taking advantageof the times when the slag is not groundin the Tras mill and the mill is idle, andby ensuring that the clinker milled here
feeds the output of the cement mills, aswell as to increase production and energy
efficiency.
Thanks to the optimization of process
conditions, we have achieved an increase
in clinker and slag grinding capacity by
20-30% without negatively affecting thequality parameters. We also provided aquality increase by increasing the slag
blaine (fineness) values to around 5000
cm2/g.

Our Equipment Installed in 2022 andthe Material Savings We Provide
In the year 2022, we applied thegearbox-motor coupling connection
system to 11 equipment throughout thefactory. In this project, production gain
will be achieved in downtime related
to failure; oil savings will be achieved
both in downtime related to failure andplanned downtime. It will be obtained ineight different areas in incidental cases;
we have saved 33 liters of oil, 47 tons ofcoal and 310 tons of farin.

OUR ENVIRONMENTALPERFORMANCE

Increasing the use of waste
as an alternative fuelTras Mill Tonnage
Increase Effort

09. ANNEXES 08.

Our Goal75

WATER AND WASTE
WATER MANAGEMENT

In the cement sector, water is mainly used
for cooling purposes in the kiln process
and mills. In addition, it is used for dustingaround the field, in the crushers, and fornatural humanitarian needs. We bring thewater we draw from the sea to drinking
water quality with our sea water treatment
plant with ultra filtration and reverse
osmosis system.

Our Goal

Keeping the total amountof water used below acertain level
Realized 2022

1,880,857
m3/year

In 2022, we received about 54 percentof the water we used from the Ulu Pınar
Stream, which is not used for fishing or
agricultural purposes and is poured directly
into the sea. Thanks to our Sea Water
Treatment Plant, the proportion of thewater we recycle and reuse in the total
water intake is 42 percent. We do not havea water supply that is significantly affectedby water withdrawal.

Target 2023

2,100,000
m3/year105,194

Water Withdrawal (m3/year)

Groundwater (Deep Wells)
Increased by 56% as a resultof increased conductivity inseawater and surface water.

944,134

Sea Water (Marmara Sea)*
Increased by 15% due to
conductivity change.

2,258,685
Total

1,209,357

Surface Waters (Ulupınar Creek)
There was a 9% decrease in water
withdrawal.

* These are the amounts received from our water production facility where sea water isrecovered by being treated with ultra filtration and reverse
76

Nuh Çimento 2022 Integrated Annual Report

Waste Water Discharge
The only water source and natural habitatthat may be affected due to waste
water discharge around the facility is theMarmara Sea. This area is not within anational or international protected area.
We do not have process waste water We
discharge some of the field waters, surface
waters and sewage waters into the sea
after they are treated.
The Biology Department of Kocaeli
University conducted analyses on whether
the process of taking water from the sea
and discharging water has an impact
on biodiversity and living life during ouractivities. In repeated studies for threeconsecutive years, divers took images
and samples from the bottom and madeexaminations in all four seasons of theyear. While a total of 127 different species
were diagnosed as a result of superficial
water quality management and ecologicalstatus biological monitoring parameter
analyses, the report revealed that the point
where we take water from the sea andleave it again is no different from otherpoints.

36%

Reused64%Discharged Into The Sea

We Serve SKA 6 Sub-Targets Directly!
With our sustainable water approach, the sub-goals that we directly
support within the scope of SDG 6: Clean Water and Sanitation are as
follows.
6.3. Improving water quality by reducing pollution, eliminating garbage
dumping, minimizing the release of harmful chemicals and substances,halving the rate of untreated wastewater, and significantly increasing
recycling and safe reuse globally.
6.4. Greatly increasing the efficiency of water use in all sectors, ensuring asustainable supply of fresh water to solve the problem of water scarcity.
Future Plans
By increasing the volume of wastewater reuse in Nuh Çimento, we aim toreuse our wastewater by 90 percent in 2023 and 100 percent in 2025. Later,
with this project, we will take a corporate academic report, convert it intoa discharge exemption and position Nuh Çimento as a zero waste-watercompany.
As a support project for this project, we planned to collect rainwater
throughout the factory in a healthy way and evaluate it as cooling water in
our Clinker production process after the necessary chemical and physicaltreatment efforts were carried out. With this project, which we will easily
integrate into our Sustainable Water Management approach, we will
ensure that clean water resources are used less in the process.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

Treatment Plant
Discharge and Reuse

in 2020, 30 percent of the wastewater discharged from the treatment
plant (about 64 thousand m3), and 36 percent in 2021 (about 82 thousandm3) we reused it in units such as dedusting, irrigation, chlorization
systems. Thanks to this, we saved 300 thousand TL in the water bill. in
2022, we also achieved a total of 62,632 tons of water savings and made aprofit of 623,752 TL per cubic meter of water. We aim to increase this ratioby using it for feeding purposes to ovens in the coming years.

05. SUSTAINABILITYMANAGEMENT

108,525
Field Wastewater

The Sustainable Water Project is an internal R&D study carried out by NuhÇimento’s environmental unit and maintenance unit. With these studies,
we first determined the properties of the water we needed, and thenwe made improvements to our physical treatment plant. We aimed tomultiply these areas by examining the processes by which we can use thewastewater we obtained.

ECONOMIC
06. OURPERFORMANCE

Total

Use of Treated Waste Field Waters in the Process
In 2021, we took these studies a step further and launched a project
to collect and treat and reuse the wastewater that comes out in highquantities throughout the factory, thereby saving both water and energy.

SOCIAL
07. OURPERFORMANCE

175,425

As Nuh Çimento, we show the greatest sensitivity to the environment
after the management of our carbon emissions in the use of cleanwater resources. Although we have legal permits and authorizations,
we prefer to continue our process with recovered water without using
natural underground water sources, that is, well water, which are moreadvantageous both in terms of cost and quality. We purify sea water withreverse osmosis technology for some of our needs, and for the rest we
use it in the process after it is treated by applying preconditioning to thestream water.

OUR ENVIRONMENTALPERFORMANCE

66,900

Domestic Wastewater

Sustainable Water Project

09. ANNEXES 08.

Treatment Plant Discharge Water Sources(m3/year)77

WASTE MANAGEMENTOur Goal

Ensuring that the resulting
waste is sent to recycling
instead of disposal
Realized 2022

89%

Target 2023

90%

After greenhouse gases in the cement sector, themost important waste generated at almost every
stage of production processes is dust waste.
Liquid wastes do not have a very important place
due to the fact that a large part of the waterused evaporates in the process and comes outof the chimney. Other solid and liquid wastes
are formed during maintenance works, inworkshops, tea rooms and collection areas. Only
waste oils from liquid wastes are collected by oil
maintenance personnel during maintenance.

The most important feature of the cement
sector is that each of the discards that comeout as waste can be added to the product at
the previous or next process stage. Thus, it ispossible to ensure the recycling of processderived waste without its formation. At NuhÇimento facilities, we dispose of our wastes
with methods such as energy recovery, material
recovery, recycling and regular storage.

We aim to eliminate all of the wastes generated
within the scope of our zero waste policy in a
way that will not harm the environment. While
ensuring the sustainability of 89 percent of ourwaste through material /energy recovery andrecycling methods, we dispose of the remaining
11 percent in accordance with the relevant
legislation.

Total Waste by Disposal Management (Tons)

11%

3%

Landfill

Recycle

2,532

13%

Total Waste
Disposed

EnergyRecovery73%

Material Recovery

78

Nuh Çimento 2022 Integrated Annual Report2,894TO OUR
01. MESSAGE
STAKEHOLDERS

2,532

13%

12.5%

03.

25%

In order to ensure the management of wastes generated throughout thefactory and in administrative areas and to keep the amount of waste sent toregular storage below 10 percent, under the coordination of the Sustainability
and Environment Directorate for the recycling and recovery of all wastes;
1. We have established the waste separation systematics.
2. We have increased the waste separation containers.
3. We have increased the awareness levels by providing training to employees.
4. We have made regular inspections and controls.
5. We sent the waste to recycling and recovery facilities.
Although there have been difficulties such as improper waste separation, we
have overcome this problem with regular controls and trainings.

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCE

2022

2021

Total Waste Generated

SOCIAL
07. OURPERFORMANCE

Zero Waste Policy and Sustainable Waste Management

2020

2022

2021

Non-Hazardous Waste

OUR ENVIRONMENTALPERFORMANCE

Hazardous Wastes

2020

2022

2021

2020

344

381

AND
04. STRATEGYMANAGEMENT

10%

09. ANNEXES 08.

506

2,188

2,513

2,698

7%

9.7%

CORPORATE
02. OURPROFILE

3,204

Total Waste by Type (Tons)

79

PROTECTION OF BIODIVERSITYOur GoalIn the cement sector, natural living environments may be affected due to the fact that themain raw material obtained through mining activities is provided from natural sources.
In order to minimize this impact, we do not carry out mining activities in areas that areprotected in terms of biodiversity.

Not carrying out activities
in the regions where special
species are grown and live in The regions where we carry out open mining activities are classified as Bozuk Koru
Ormanı under the jurisdiction of Sakarya Regional Directorate of Forestry, Izmit Forestry
terms of Biodiversity and in Operations Directorate, Dilovası Forest Operation Chief. These areas; where there is noother areas under protection presence of trees of economic value, the species in the maki formation spread from place

to place, and the vast majority of it is open space. in 2022, there was no negative impact of
our activities on biodiversity.

Realized 2022

0%

Target 2023

0%80

Nuh Çimento 2022 Integrated Annual Report

Izmit Gulf Fish Restocking ProjectIn the fifth year of the Izmit Gulf Fish
Restocking project, we again took part as
the sole sponsor. Fishing activities in the
Gulf of Izmit are important for the people
in Hereke, where we operate, from an
economic and social point of view. In thiscontext, as Nuh Çimento, we have been
contributing to the fishing project under
the leadership of Kocaeli Metropolitan
Municipality since the beginning of 2017.
Our aim is to protect and enrich Biodiversity
and thus contribute to the economic
development of the region and to thegreater benefit of the people from the sea.

Trabzon Fisheries Central Research Instituteprovides support for the collection andreproduction of fish, while the Ministry ofFood, Agriculture and Livestock and theGeneral Directorate of Agricultural Researchand Policies provide informational support.
As Nuh Çimento, we have sponsored vehicles,organizations and ceremonies; we support
meetings and evaluation studies as thesole sponsor. The Izmit Bay Fish Restocking
Project, which is Turkey’s exemplary project
on behalf of biodiversity, also has thedistinction of being the first fish releasestudy conducted in the seas.

Within the framework of the protocol
signed on 20.12.2016 in cooperation with the
Ministry of Food, Agriculture and Livestock(General Directorate of Agricultural Researchand Policies) and its affiliated Institutes,
the studies conducted together with the
Trabzon Fisheries Central Research Institute(SUMAE) affiliated to TAGEM primarily
determined the existing fish species anddiversity and stock status. In this direction,
sampling studies were carried out in the
Gulf of Izmit in 2017 and 2018.

As part of the Izmit Bay Fish Restocking
Project carried out by Kocaeli Metropolitan
Municipality, General Directorate ofAgricultural Research and Policies and theCentral Research Institute of Fisheries, a
total of 12 thousand young bream, sea bass
and turbot fish, six thousand of which wereon the Değirmendere Lake coast and six
thousand on the Karamürsel Ereğli beach,were released into the sea. Thus, in its
6th year, a total of 36 thousand fish werereleased into the gulf waters.

The fish restocking project, which is only
one of the pillars of the protection of the
Gulf of Izmit, a closed basin of the Sea ofMarmara, aims to increase the number ofnative fish species living in the Gulf of Izmit
and protect the species by reducing theeffects of adverse environmental conditions
experienced on fish species. Within thisscope, broodfish are taken from the Gulfof Izmit and bred at the Trabzon Fisheries
Central Research Institute, and the youngof the native fish are released into the Gulfof Izmit and the species population here isstabilized.

Results and Gains
Economic
Fishing has developed in the region and theeconomy has revived even more.
Social
The local people met with the sea again
thanks to line fishing.
Environmental
With the decrease in marine pollution,
biodiversity and fish species and number
began to increase.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILEIn November
2022

In 2021

Young Fishwere released into thesea from the Gulf of Izmit(Gulf of Hereke Coast)
6,000 Young Fish

In 2020(Ereğli - Karamürsel)
6,000 Young Fish

(Darıca)
6,000 Young Fish

AND
04. STRATEGYMANAGEMENT

In 2018

05. SUSTAINABILITYMANAGEMENT(Değirmendere
Coast - GÖLCÜK)6,000 Young Fish

36,000ECONOMIC
06. OURPERFORMANCE

In 2022

SOCIAL
07. OURPERFORMANCE

Total

OUR ENVIRONMENTALPERFORMANCE(Değirmendere - Gölcük)
6,000 Young Fish

03.

In 2017

09. ANNEXES 08.

(Ereğli Coast KARAMÜRSEL)
6,000 Young Fish

81

ANNEXES

09

OUR INTEGRATED MANAGEMENT SYSTEMS
We carry out our management systems activities starting in 2005 with the occupational health and safety management system andcontinuing with the quality, environmental and energy management systems within the scope of the Integrated Management Systems
Standards approved by The BSI (The British Standard Institution), the National Standards organization of the United Kingdom. We carryout our ISO 27001 Information Security Management system activities under the supervision of Proks Certification and Special Education
Services certification company.

Integrated Management Systems Standards
Certificates

Date of Receipt

Effective Date

ISO 9001 Quality Management System

13.02.2008

5.09.2025

ISO 14001 Environmental Management System

13.02.2008

5.09.2025

ISO 50001 Energy Management System

17.12.2013

5.09.2025

TS-45001 Occupational Health and Safety Management
System07.07.2005

5.09.2025

ISO 27001 Information Security Management System

02.01.2019

01.01.2024

CSC Certificate of Responsible Use of Resources

08.04.2020

8.04.2023

Our policies that support our Integrated Management Systems are on our website.

CORPORATE MEMBERSHIPSAHK Turkey German-Turkish Chamber of Industry and CommerceÇEIS Cement Industry Employers' Union
GIF Global Relations ForumIAV Economic Research Foundation
IMMIB General Secretariat of Istanbul Mining and Metal Exporters' Associations
ITO Istanbul Chamber of Commerce
KALDER Turkish Quality Association
KSO Kocaeli Chamber of Industry
KOSAID Kocaeli Industry and Business Association
KTO Körfez Chamber of Commerce
OAIB General Secretariat of the Central Anatolian Exporters' AssociationsPERYÖN Personnel Managers Association
SKD Sustainable Development AssociationTÇMB Turkish Cement Industrialists' Association (TÜRKÇIMENTO)TUGIAD Turkish Young Businessmen's Association

84

Nuh Çimento 2022 Integrated Annual Report3,473,236

6,942,826

1,706,337

2,493,229

7,739,080

Operating Profit

394,058

536,244

1,783,976

Net Profit

570,249

642,432

2,086.616

EBITDA

476,742

627,788

1,905,621

1,798,886

2,171,850

4,542,449

Dividend Payouts

2020

2021

2022

Gross Dividends Paid

225,320

322,959

690,983*

Profit Per Share

3.80

4.28

13.89

Dividends Paid Per Share (Gross)

1.50

2.15

4.6*

Shareholders’ Equity Resources

The amount of the payment will be finalized at the General Assembly meeting dated February 23rd, 2023.

Basic Rates
Liquidity Ratios

2020

2021

2022

Current Rate

1.93

1.95

1.78

Cash Rate

0.93

0.66

0.60

Profitability Ratios

2020

2021

2022

Net Profit / Equity

33%

30%

27%

Basic Operating Profit / Net Sales
Revenue

23%

22%

23%

Financial Structure Ratios

2020

2021

2022

Total Equity / Assets

71%

63%

65%

Equity / Foreign Resources Ratio

2.50

1.67

1.90

03.

2,518,122

Net SalesAND
04. STRATEGYMANAGEMENT

Assets

05. SUSTAINABILITYMANAGEMENT

2022

ECONOMIC
06. OURPERFORMANCE

2021

SOCIAL
07. OURPERFORMANCE2020

OUR ENVIRONMENTALPERFORMANCE(Thousand TL)

09. ANNEXES 08.

Main Indicators

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSFINANCIAL PERFORMANCE SUMMARY

85

TABLES OF PERFORMANCE INDICATORS
Economic Indicators
Value Data Distributed to Our Stakeholders
2020

2021

2022

1,706,337

2,493,229

7,739,080

Benefits provided to Suppliers

1,345,005

2,500,502

7,408,895

Benefits provided to the State

90,216

159,735

311,009

Benefits provided to capital providers (Dividends)

225,320

322,959

690,983

8,734

11,0909,910

344,929

319,473

1,395,636

Benefits Provided to the Society* (Thousand TL)

2020

2021

2022

Nuh Çimento Education and Health Foundation

2,955

8,480

8,943

Public Institutions and Organizations

4,061

1,847

159

Other Associations and Foundations

1,718

763

807

Total

8,734

11,090

9,910

2020

2021

2022

Economic Value Created and Distributed (Consolidated) (Thousand TL)

Economic Value Created (Revenues)
Economic Value Distributed to Stakeholders

Benefits provided to Society *Undistributed economic value (Profit)

Social Indicators
Occupational Health and Safety Management Data
Occupational Health and Safety (Nuh Employees)
Fatal Accident Rate

0

0

0

Accident Frequency Ratio(High importance and day loss - excluding death)

5.32

5.29

3.4

Accident Frequency Ratio (Registered)(High importance, day loss and non day loss)

10.63

21.84

18.12

Day Loss Due to a Work Accident

324

105

80

Descriptions:
The types of accidents that took place in 2022 are impact, burn, strain and crush.
Accidents at the first aid level are included in the accident frequency rate if the day is lost.
The lost day rate is calculated according to the calendar day. The lost day count starts immediately the next day after the accident.
Fatal accidents are not included in the accident frequency ratio. (1 Fatal Accident = 7,500 Lost Days)
Accident Frequency: The number of accidents that occur during one million working hours
Accident Frequency = Total Number of Accidents / (Total Number of Employees x 300 Days x 7.5 Hours) - (Total Lost Days x 7.5 Hours) x
1,000,000
Occupational Health and Safety Trainings(Employee/Hour)

86

2020

2021

2022

Male

39

33

33

Female21

16

18

Nuh Çimento 2022 Integrated Annual Report93.60%Female

6.50%

6.18%

6.40%

By Contract Type and Gender

2020

2021

2022

Permanent and Full-Time Employee - Female

61

59

62

Permanent and Full-Time Employee - Male

881

879

906

Total

942

938

968

By Contract Type and Region

2020

2021

2022

Permanent and Full-Time Employee - Istanbul

35

35

34

Permanent and Full-Time Employee - Kocaeli

907

903

934

Total

942

938

968

Our Employees by Their Activity Zones

2020

2021

2022

Istanbul

3.70%

3.73%

3.51%

Kocaeli

96.30%

96.27%

96.49%

Employee Turnover

2020

2021

2022

Beginning Of The Year

676

667

676

Started Employment

28

62

71

Ended Employment

37

51

50

End Of The Year

667

676

697

Average Number of Employees

674

667

680

Turnover Rate

5.49%

7.64%

7.35%

Local Employment

2020

2021

2022

Senior Managers - Local (Kocaeli)

4

4

4

Senior Managers - Other (Istanbul)

9

9

9

Total Number of Senior Managers

13

13

13

Freedom of Unionization

2020

2021

2022

The number of employees covered by collective bargaining
agreements

437

443

464

The proportion of employees covered by collective bargaining
agreements (%)

66%

66%

67%

All Trainings

2020

2021

2022

Professional Development

1,908

2,079

3,605

Self-improvement

686

588

1,307

OHS

25,692

21,784

22,828

Other

422

2,268

3,034

28,70826,71930,774

2020

2021

2022

All Employees

43

40

44

Male

43

40

44

Female48

31

33

Our Training Investments

Total Training Hours
Average Hours of Training Per Person

TO OUR
01. MESSAGE
STAKEHOLDERS

93.82%CORPORATE
02. OURPROFILE

93.50%

03.

Male

AND
04. STRATEGYMANAGEMENT

2022

05. SUSTAINABILITYMANAGEMENT

2021

ECONOMIC
06. OURPERFORMANCE

2020

SOCIAL
07. OURPERFORMANCE

Our Employees by Gender

OUR ENVIRONMENTALPERFORMANCE

Our Employees

09. ANNEXES 08.

Employment and Training Data

87

Environmental Indicators
Our Environmental Expenditures (TL)

2020

2021

2022

Emission Management

2,967,503

9,635,106

18,530,197

Waste Management

3,261,583

4,449,479

10,911,577

Workmanship

2,326,060

3,623,675

6,948,841

244,972

1,673,802

824,876

8,800,119

19,382,063

37,215,490

Permissions and License Management
Total

Environmental Compliance:
There is no penalty received as a result of non-compliance with environmental laws and regulations during the reporting period.

Energy Management Data
Consumed Energy from Non-Renewable Direct Energy
Sources (GJ)

2020

2021

2022

Coal

7,614,602

13,037,955

9,542,699

Natural Gas

174,898

173,581

79,778

Fuel Oil

11,8900

06,987,010

2,774,339

5,266,999

00190,862

356,155

186,433

131,118

15,144,555

16,172,308

15,211,455

2020

2021

2022

1,240,345

1,460,463

1,426,791

2020

2021

2022

485,781502,465

567,222

16,870,680

18,135,235

17,205,468

2020

2021

2022

Cement (kWh/ton)

46

45

44

Clinker (kWh/ton)

66

64

65

Fuel Clinker (GJ/ton)

3.5

3.5

3.4

Energy Consumption

2020

2021

2022

Petroleum Coke
Hard Coal
Alternative Fuels
Total Fuels Consumed (GJ)
Indirect Energy Purchased and Consumed from NonRenewable Energy Sources (GJ)Electric
Indirect Energy Generated and Consumed from Renewable
Energy Sources (GJ)Electric*
Total Energy Consumption (GJ)
* It is the sum of WHR and HEPP.
Energy Density

88

Clinker (kWh/year)

288,768,941

296,541,627

289,315,723

Cement (kWh/year)

164,872,935

209,679,386

221,555,925

Fuel Clinker (GJ/year)

15,144,555

16,172,308

15,211,455

Nuh Çimento 2022 Integrated Annual ReportIndirect Greenhouse Gas (GHG) Emissions (Scope 2)

256,524

291,716*247,593

3,867,563

4,208,338

4,109,863

Total CO2e Emissions

Explanation: Direct Greenhouse Gas Emissions (Scope 1) covers the emission that we report within the scope of the “Regulation on the
Monitoring of Greenhouse Gas Emissions” (MRV).
Explanation: Indirect Greenhouse Gas Emissions (Scope 2) are outside the scope of Greenhouse Gas emissions reported under MRV(Monitoring, Reporting, Verification) and cover greenhouse gas emissions caused by electricity purchased and consumed by the company.
*Instead of the 0.535 electricity carbon coefficient used in previous years, the 0.447 coefficient published by the Ministry of Energy has
been started to be used. Therefore, there has been a decline.

Greenhouse Gas (GHG) Emission Intensity (Scope 1)

2020

2021

2022

4,376,400

4,634,300

4,472,100Co2e Emission Intensity (Kg CO2e/ton clinker)

825

845

864

Greenhouse Gas Reduction (tCO2e)

2020

2021

2022

Waste Heat Recovery (WHR)

55,40863,15554,814Kuşluk HEPP

16,784

11,517

15,616

531

679

992

Total

72,72375,351

71,422Air Emissions (Kg)

2020

2021

2022

NOx

-

18,125,273

-

SOx

-

141,459-

PM (Particulate matter)-

1,176,226-

Total Clinker Production (Tons)

Electric Work Machine* According to the Regulation on the Control of Air Pollution Caused by Industry, measurements
are carried out every two years. Therefore, the data for 2020 and 2022 are not available.

Materials Management Data
Our Waste Usage (tons)

2020

2021

2022

Alternative Raw Material

354,835

430,686

410,196

Alternative Fuel

19,596

10,819

6,401

Total

374,431441,505

416,597

TO OUR
01. MESSAGE
STAKEHOLDERS

3,862,270

CORPORATE
02. OURPROFILE

3,916,622

03.

3,611,039

AND
04. STRATEGYMANAGEMENT

Direct Greenhouse Gas (GHG) Emissions (Scope 1)

05. SUSTAINABILITYMANAGEMENT

2022

ECONOMIC
06. OURPERFORMANCE

2021

SOCIAL
07. OURPERFORMANCE2020

OUR ENVIRONMENTALPERFORMANCE

Greenhouse Gas Emissions (tCO2e)

09. ANNEXES 08.

Emission Management Data

89

Water Management Data
Water Withdrawal (m3/year)

2020

2021

2022

Surface Waters (Ulupınar Creek)

941,907

1,315,506

1,209,357

Groundwater (Deep Wells)

62,14445,907105,194

Sea Water (Marmara Sea) *1,023,708

802,836

944,134

Total

2,027,759

2,164,249

2,258,685* These are the amounts received from our water production facility where sea water is recovered by being treated with ultra
filtration and reverse osmosis system.
Water Consumption (m3/Year)

2020

2021

2022

The Amount of Water Used in Cement Production

731,094785,956

912,480

The Amount of Water Used in the Subsidiary Facilities

878,698

957,368

968,377

Total Water Use

1,609,792

1,743,324

1,880,857

Treatment Plant Data 2022

Domestic Wastewater

Field Wastewater

Total

66,900108,525

175,425

Water coming out of the treatment plant (m )66,900108,525

175,425

The amount discharged into the sea

66,90045,246112,146

The amount fed to the kilns

0

16,695

16,695The amount used for road irrigation and dedusting

0

45,93745,937

Chemicals used in the treatment plant (tons)

3

0

3

Amount of purification sludge output (tons)

11.80

27.75

39.55

Treatment plant electricity consumption (kWh)51,210128,281

179,491

Water entering the treatment plant (m )33Waste Management Data
Total Waste by Type (Tons)
Hazardous Wastes

2020

2021

2022

506

381

344

Non-Hazardous Waste

2,698

2,513

2,188

Total Waste Generated

3,204

2,894

2,532

The Total According to the Disposal Method

2020

2021

2022

Energy Recovery

567.00377.40322

Material Recovery

2,289.00

2,145.40

1,841

Landfill

263.00281.72292

Recycle

85.00

90.34

77

Other (Sterilization etc.)

0.00

0.09

0.06

3,204.00

2,894.94

2,532.56

Total Waste Disposed

Among the hazardous wastes; waste printing toners containing hazardous materials, engine, transmission and lubricating oils,
chemicals, leaded batteries and accumulator etc.
Among the non-hazardous wastes; plastic, ferrous metal burrs and chips, mixed packaging and end-of-life tires etc.

90

Nuh Çimento 2022 Integrated Annual Report

91

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSCMB SUSTAINABILITY
PRINCIPLES COMPLIANCE REPORT
If the compliance status with the Principles is determined as “Yes”
or “Partially”, it is necessary to include the report information / link
related to the information disclosed to the public.

DESCRIPTION and RELATEDLINKSExplanations related to the compliance status with the Principles areincluded in the “Explanation” column.

(The titles in the description
section are the titles in ourIntegrated Annual Report, which
we publish in March every year.)

COMPLIANCE STATUS

The scope in which the requested information is presented inconsolidated or solo should be indicated in the “Disclosure” column.
YES

NO

PARTIALLYIRRELEVANT

A. General Principles
A1. Strategy, Policy and Objectives
Priority environmental, social and corporate governance (ÇSY)
issues, risks and opportunities have been determined by thepartnership's board of directors.

√

Risk Management and
Evaluation of the Board of
Directors

ÇSY policies (e.g. Environmental Policy, Energy Policy, Human
Rights and Employee Policy, etc.) are approved by the partnership's
board of directors disclosed to the public.

√

Our Integrated Management
Systems

The short- and long-term goals determined within the scope of the
ESIA policies have been disclosed to the public.

√

Our Sustainability Goals

The committees and/ or units responsible for the implementationof ÇSY policies and the highest-level responsible persons and theirduties in partnership related to ÇSY issues have been determinedand disclosed to the public.

√

Sustainability Management
Structure

The activities carried out by the responsible committee and/or
unit within the scope of the policies are reported to the board of
directors at least once a year.

√

Sustainability Management
Structure

A2.2

Implementation and action plans have been created and dis-closed
to the public in line with the ÇSY objectives.

√

Our Sustainability Goals

A2.3

With the ÇSY Key Performance Indicators (KPG), the level ofachievement of these indicators on a yearly basis has been
disclosed to the public.

√

Tables of Performance Indicators

A2.4

Activities aimed at improving the sustainability performance ofbusiness processes or products and services have been disclosed tothe public.

√

Climate Change and Energy
Management

A1.1

A1.2

A2. Application/Monitoring
A2.1

A3. Reporting
A3.1

In the annual reports, information about the sustainability
performance, goals and actions of the partnership is provided in anunderstandable, accurate and adequate way.

√2022 Annual Report in General

A3.2

Information on which of the United Nations (UN) 2030 Sustainable
Devel-opment Goals are related to its activities has been disclosed
to the public by the Partnership.

√

About Our Report

A3.3

Lawsuits filed and/or concluded against ÇSY issues, which areimportant in terms of ÇSY policies and/or will significantly affectactivities, have been disclosed to the public.

√

Tables of Performance Indicators

A4. Verification
A4.1

92

The ÇSY Key Performance measurements of the Partnership havebeen verified by an independent third party and disclosed to the
public.

Nuh Çimento 2022 Integrated Annual Report√

Climate Change and Energy
Management (Scope 1 Emissions)

B3

It is given in A2.1.

B4

The environmental targets included in the awarding criteria within thescope of performance incentive systems on the basis of stakeholders(such as board members, managers and employees) have been disclosed
to the public.

√

Our Sustainability Goals

B5

How the environmental problems identified as a priority are integrated
into business goals and strategies has been disclosed to the public.

√

Our Sustainability Goals

B6

It is given in A2.4.

B7

How environmental issues are managed, integrated into businessgoals and strategies, including suppliers and customers throughout
the partnership value chain, including the operation process, has been
disclosed to the public.

√

Sustainability Effects in the
Value Chain

Whether the relevant organizations and non-governmental organizations
are involved in the policy-making processes on the environment andthe coopera-tion with these institutions and organizations have been
disclosed to the public.

√

B9

In the light of environmental indicators (Greenhouse gas emissions(Scope-1 (Direct), Scope-2 (Energy indirect), Scope-3 (Other indirect),
air quality, energy management, water and wastewater management,
waste management, biodiversity effects), information about theirenvironmental impacts has been disclosed to the public periodically in acomparable manner.

√

Our Environmental
Performance

B10

The standard, protocol, methodology and base year details used to collectand calculate the data have been disclosed to the public.

√

Our Environmental
Performance

B11

The increase or decrease of environmental indicators for the reporting
year in comparison with previous years has been disclosed to the public.

√

Our Environmental
Performance

B12

Short- and long-term goals have been set to reduce environmental
impacts, and these goals and the progress status according to the goals
set in previous years have been disclosed to the public.

√

Our Sustainability Goals

B13

The strategy to combat the climate crisis has been established and theplanned actions have been disclosed to the public.

√

Climate Change and Energy
Management

B14

Programs or procedures have been created and disclosed to the public inorder to prevent or minimize the potential negative impact of products
and/or services on the environment.

√

Climate Change and Energy
Management

Third parties (e.g. supplier, subcontractor, dealer etc.) actions have beentaken to reduce the amount of greenhouse gas emissions and theseactions have been disclosed to the public.

√

Climate Change and Energy
Management

B15

The environmental benefits / gains and cost savings provided byinitiatives and projects aimed at reducing environmental impacts havebeen disclosed to the public.

√

Our Environmental
Performance

B16

Energy consumption (natural gas, diesel, gasoline, LPG, coal, electricity,
heating, cooling, etc.) data have been disclosed to the public as Scope-1
and Scope-2.

√

Our Environmental
Performance Indicators

B17

A public statement has been made about the electricity, heat, steam andcooling produced in the reporting year.

√

Climate Change and Energy
Management

B8

Our Environmental
Performance
Corporate Memberships
External Factors and Global
TrendsOur Environmental
Performance Indicators

B18

Efforts have been made on increasing the use of renewable energy andswitching to zero or low-carbon electricity and disclosed to the public.

√

Climate Change and Energy
Management

B19

Renewable energy production and usage data have been disclosed to the
public.

√Climate Change and Energy
Management

CORPORATE
02. OURPROFILE

About Our Report

03.

√

AND
04. STRATEGYMANAGEMENT

Restrictions related to the scope of the report, reporting period, reporting
date, reporting conditions related to the environmental reports preparedin providing information about environmental management have been
disclosed to the public.

05. SUSTAINABILITYMANAGEMENTB2

ECONOMIC
06. OURPERFORMANCE

Our Environmental
Performance
Our Integrated Management
Systems

SOCIAL
07. OURPERFORMANCE√OUR ENVIRONMENTALPERFORMANCE

The partnership has publicly disclosed its policies and practices in thefield of environmental management, action plans, environmental
management systems (known by the ISO 14001 standard) and programs.

09. ANNEXES 08.

B1

TO OUR
01. MESSAGE
STAKEHOLDERS

B. Environmental Principles

93

B. Environmental Principles (Continued)
B20

Energy efficiency projects have been carried out and the amount ofenergy con-sumption and emission reduction achieved through energy
efficiency projects has been disclosed to the public.

√

Climate Change andEnergy Management

B21

Water consumption, the amounts of water withdrawn, recycled anddischarged from underground or above ground, if any, sources andprocedures have been disclosed to the public.

√

Water and Wastewater
Management

B22

Whether the operations or activities are included in any carbon pricing
system (Emission Trading System, Cap & Trade or Carbon Tax) is publicly
disclosed.

√

Nuh Çimento is notincluded in any carbon
pricing system.

B23

The carbon credit information accumulated or purchased during thereporting period has been disclosed to the public.

√

There are no carbon credits
accumulated or purchased
during the reporting period.

B24

If carbon pricing is being implemented within the partnership, its details
have been disclosed to the public.

√

Carbon pricing is notapplied within thepartnership.

B25

The platforms on which the partnership discloses its environmental
information have been disclosed to the public.

√

All information is available
to the public via our
integrated annual reportand our website.

Our Environmental
Performance Indicators

C. Social Principles
C1. Human Rights and Employee Rights
C1.1√

The Corporate Human Rights and Employee Rights Policy has been
estab-lished in a way to cover the Universal Declaration of Human Rights,
ILO Conventions ratified by Turkey and other relevant legislation, those
respon-sible for the implementation of the policy have been determined
and the policy and those responsible have been disclosed to the public.

Training and Development
Rules of Business Ethics

Fair labor force, improvement of labor standards, women's employment and inclusion issues (gender, race, religion, language, marital status, ethnic identity, sexual
orientation, gender identity, family responsibilities, trade union activities, politicalopinion, disability, social and cultural differences, etc., taking into account supply
and value chain effects. such as non-discrimination in matters) is included in theemployee rights policy.

√

C1.3

Of the segments sensitive to certain economic, environmental, social
factors (low-income segments, women, etc.) or measures taken along thevalue chain to respect minority rights/equality of opportunity have been
publicly disclosed.

√

C1.4

Developments related to preventive and corrective practices related todiscrimina-tion, inequality, human rights violations, forced labor and childlabor have been disclosed to the public.

C1.2

Employment

Employment
Training and Development

Education and HealthFoundation√

Employment
Training and Development
Rules of Business Ethics

C1.5

C1.6

C1.7

94

Investment in employees (training, development policies), compensation, recognized benefits, the right to unionization, work/life balance solutions and talentmanagement issues are included in the employee rights policy.

√

Dispute resolution processes have been determined by creating
mechanisms for resolving employee complaints and disputes.

√

The activities carried out during the reported period in order to ensure
employee satisfaction have been disclosed to the public.

√

Occupational health and safety policies have been established anddisclosed to the public.

√

Occupational Health and
SafetyThe measures taken to prevent occupational accidents and protect healthand accident statistics have been disclosed to the public.

√

Occupational Health and
SafetyPersonal data protection and data security policies have been establishedand disclosed to the public.

√Protection of Personal
Data

Nuh Çimento 2022 Integrated Annual Report

Employment
Training and Development
Employment
Training and Development
Employment
Training and Development

√Corporate Governance,
Ethics and Compliance

Information meetings and training programs have been organized for
employ-ees on ÇSY policies and practices.

√

Occupational Health and
SafetyC1.9
C1.10

C2. Stakeholders, International Standards and Initiatives
C2.1

The customer satisfaction policy regarding the management andresolution of customer complaints has been regulated and disclosed tothe public.

√

Integrated Management
Systems (Pursuant toISO 9001)

C2.2

Information about the communication conducted with stakeholders(which stakeholder, subject and frequency) has been disclosed to the
public.

√Our Prioritization andStakeholder Engagement
Activities

C2.3

The international reporting standards adopted in the reporting are explained.

√

About Our Report

C2.4

The adopted principles related to sustainability, the internationalorganizations, committees and principles that are signatories or members
have been disclosed to the public.

√

We are a member of SKD
Turkey.

C2.5

Improvements have been made and studies have been carried out inorder to be included in the sustainability indices of Borsa Istanbul and/orinternational index providers.

√Nuh Çimento is notincluded in the Borsa
Istanbul Sustainability
Index.

TO OUR
01. MESSAGE
STAKEHOLDERS

The ethics policy has been established and disclosed to the public.

CORPORATE
02. OURPROFILE

C1.8

03.

C1. Human Rights and Employee Rights

AND
04. STRATEGYMANAGEMENT

C. Social Principles (Continued)

D2

Social responsibility projects, awareness-raising activities and trainings
have been carried out to raise awareness about the issue of sustainability
and its importance.

√

Education and HealthFoundation

ECONOMIC
06. OURPERFORMANCE

Corporate GovernanceCompliance Report

SOCIAL
07. OURPERFORMANCE√OUR ENVIRONMENTALPERFORMANCEThe opinions of stakeholders were consulted in determining themeasures and strategies in the field of sustainability.

09. ANNEXES 08.

D1

05. SUSTAINABILITYMANAGEMENT

D. Corporate Governance Principles

95

AGENDA OF THE ORDINARY
GENERAL ASSEMBLY MEETING
1.

Establishment of the Opening and Meeting Presidency.

2. Reading and discussion of the annual report for 2022 prepared by the Board of Directors.
3. reading the Summary of the Independent Audit Report for the 2022 accounting period.
4. reading, discussing and deciding on the Financial Statements for the 2022 accounting period.
5. The release of the Members of the Board of Directors for the activities of the 2022 accounting period is discussed and decided.
6. acceptance, amendment, acceptance or rejection of the proposal of the Board of Directors on the distribution of the profit for the year 2022 and the dateof distribution of the profit.

7.

Within the framework of the permits obtained from the T.R Ministry of Commerce and Capital Markets Board, discussion of amendments to the article 27of the Articles of Association entitled “Profit Distribution” and submission of the new form for approval.

8. Discussing and making a decision on granting authority to the Board of Directors to decide on the distribution of dividend advances for the 2023 accounting
period within the scope of the Articles of Association and the Capital Markets Board’s Dividend Notification numbered II-19.1.

9. Deciding by discussing the rights such as the salary to be paid to the Members of the Board of Directors and the right to peace of mind.
10. The election of the new Members of the Board of Directors and the decision-making of their terms of office.
11. Discussing and deciding on the proposal of the Board of Directors regarding the selection of an independent external audit firm for the audit of accounts
and transactions in 2023 in accordance with the Turkish Commercial Code and the Capital Markets Law.

12. Granting permission to the Members of the Board of Directors in accordance with Articles 395 and 396 of the Turkish Commercial Code and informing theGeneral Assembly about the transactions made within this scope during the year within the framework of Corporate Governance Principles.

13. Presenting the donations and aids made in 2022 to information and deciding on the upper limit of the donations and aids to be made in 2023.

14. Giving information on the income and benefits obtained by guarantees, pledges, mortgages and sureties given in favor of third parties.
15. Wishes and opinions.

96

Nuh Çimento 2022 Integrated Annual ReportEXPLANATIONS RELATED TO CORPORATE GOVERNANCE
Capital and Partnership Structure
The company’s shares have been offered to the public by registering with the Capital Markets Board (CMB) and 16.21% of its shares are
publicly traded. The company’s shares have been traded on the Borsa Istanbul (BIST) since February 24, 2000.
The paid-up capital of the company as of 31.12.2022 is 150.213.600 TL. There has been no change in the partnership shares of our partners
with a share of five percent and above in the last year. The capital distribution is as shown in the following table:
Public

SOCIAL
07. OURPERFORMANCEOUR ENVIRONMENTALPERFORMANCE

There are no privileged shares. Each share gives one voting right. Minority shares are not represented in the management. Our company
has not included the cumulative voting method.

09. ANNEXES 08.

Information on Privileged Shares and Voting Rights of Shares

ECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT

03.

Other

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSLEGAL EXPLANATIONS

97

Principles of Activity of the Board of Directors
The members of the Board of Directors have been elected to serve from the General Assembly dated March 24, 2022 until the Ordinary General Assembly
Meeting to be held in 2023, where the results of the activities for the year 2022 will be discussed. The members of the board of directors, the starting andending periods of their duties are determined at the ordinary general assembly meeting. The Board of Directors conducts its activities in a transparent,
accountable, fair and responsible manner. It is taken as a basis that the meetings of the board of directors should be held as necessary and at least oncea month. there were 26 meetings held in 2022. The Board of Directors made a total of 87 decisions in 2022 and a high participation rate was achieved in
the meetings. The Company’s Articles of Association, the provisions of the Turkish Commercial Code and the regulations of the Capital Markets Board
shall be complied with regarding the manner of meeting, meeting and decision quorum, voting, duties and powers of the Board of Directors. The duties
of Chairman of the Board of Directors and CEO are performed by separate persons. Care is taken to ensure that the Members of the Board of Directors
allocate the necessary time for the Company’s business, and there is no restriction on taking on other duties outside the Company. In the 2022 operating
period, no situation has arisen that would abolish the independence of the independent members of the Board of Directors. There is no related party
transaction submitted for the approval of the independent members of the board of directors and no decision of the board of directors that is not acceptedfrom transactions of a significant nature and submitted for the approval of the General Assembly. Executive liability insurance has been taken out forcompensation of losses against the obligations of the members of the Board of Directors and senior managers, for which they can be held personallyresponsible within the framework of their duties.

Structure of the Board of Directors
The members of the Board of Directors of the Company and their qualifications for the year 2022 are listed below.

98

Name surname

Whether/Not He is
an Exec-utive

The State ofIndependence

Date of First Election
to the Board of
Directors

Term

Duties on the Board of Directors andCommittees

Tevfik Bilgin

Not an Executive Officer

Dependent Member

27.03.2013

1 yearChairman of the Board

Fikret Eskiyapan

Not an Executive Officer

Dependent Member

26.03.1994

1 yearMember of the board
Member of the Nomination Committee

Mehmet Eskiyapan

Not an Executive Officer

Dependent Member

28.03.1991

1 yearMember of the board
Member of the Corporate Governance Committee
Member of the Nomina-tion Committee

Nurcan Yurtbilir

Not an Executive Officer

Dependent Member

30.03.2017

1 yearMember of the board

Sinan Yurtbilir

Not an Executive Officer

Dependent Member

27.03.2013

1 yearMember of the board
Member of the Corporate Governance Commit-tee
Member of the Nomination Committee

Ahmet Faik Paralı

Not an Executive Officer

Dependent Member

28.04.2014

1 yearMember of the board
Member of the Early Detection of Risk Committee

Unal Eskiyapan

Not an Executive Officer

Dependent Member

29.03.2018

1 yearMember of the board
Member of the Early Detection of Risk Committee

Emin Hisarcıklıoğlu

Not an Executive Officer

Dependent Member

17.04.2004

1 yearMember of the board
Member of the Corporate Governance Commit-tee

Yılmaz Küçükçalık

Not an Executive Officer

Dependent Member

30.03.2017

1 yearMember of the board

Vahdettin Ertaş

Not an Executive Officer

Independent Member

29.03.2018

1 yearIndependent Member of the Board of Directors
Chairman of the Corporate Governance Committee
Chairman of the Early Detection of Risk Committee
Chairman of the Audit Committee
Chairman of the Nomination Committeeİsmail Köksal

Not an Executive Officer

Independent Member

28.03.2019

1 yearIndependent Member of the Board of Directors
Member of the Corporate Governance Committee
Member of the Early Detection of Risk Committee
Member of the Audit Committee Member of theNomination Committee

Aclan Acar

Not an Executive Officer

Independent Member

25.03.2021

1 yearIndependent Member of the Board of Directors
Member of the Corporate Governance Committee
Member of the Audit Committee

Tevfik Kınık

Not an Executive Officer

Independent Member

25.03.2021

1 yearIndependent Member of the Board of Directors
Member of the Early Detection of Risk Committee
Member of the Audit Committee

Elif Bilgehan Müftüoğlu

Not an Executive Officer

Independent Member

25.03.2021

1 yearIndependent Member of the Board of Directors
Member of the Audit Committee

Nuh Çimento 2022 Integrated Annual ReportAhmet Faik PARALI (Member)
Born in Denizli in 1953, he completed his secondary and high school education at Tarhan College He serves as chairman of
the board of directors and as member in companies such as Partaş Tekstil-İnşaat San. ve Tic. A.Ş., Trakya İplik Sanayi
A.Ş., Birtaş Ticaret ve Pazarlama A.Ş., Nuh Pazarlama ve Ticaret A.Ş., PAR Gayrimenkul Yatırım A.Ş., Birlik Meyvecilik
Ziraat ve Tarım Ürünleri San. Tic. A.Ş. ve Şark Sanayi Kumpanyası T.A.Ş.
Ünal ESKİYAPAN (Member)
He was born in Istanbul in 1990 He completed his secondary and high school education at Eyüboğlu High School in
Turkey. He completed his master's degree in the department of information systems at the University of East Anglia in
England. He then completed the international trade department at Yeditepe University in Turkey. He started hisbusiness life in 2015 with Esu Gıda Sanayi ve Dış Ticaret Ltd. Sti. and is a producer in the food sector, as a main field ofactivity. In addition, engineering laboratory systems and equipment, ballistic glass and chips-crackers are therepresentatives of the world's leading companies in the sector.
Emin HİSARCIKLIOĞLU (Member)
He was born in 1980, Ankara' He completed his secondary and high school education at TED Ankara College. He
graduated from the University of Southern California, Los Angeles, USA, by completing the international business
management sub-branch of the business department. He started his business life in Nuh Çimento San. A.Ş. as amember of the board of directors. Between 2005 and 2006, he was a member of the board of directors of Nuh Beton A.Ş.
Between 2004 and 2011, he worked in different units of Eskihisar Group of Companies and established Tadek Eğitim A.Ş.
in 2013. In addition, he is the honorary consulate of Kosovo in Kayseri and a council member of the Ankara Chamber ofCommerce.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENT

Sinan YURTBİLİR (Member)
He was born on September 9, 1958, in Ankara He completed his primary, secondary and high school education at TED
Ankara College. After graduating from the University of Texas El Paso in Business Administration, he earned a master's
degree in finance from the University of New Heaven. He worked at Yapı Kredi Bank, Alarko and Emlak Bank. Later, hestarted commercial life by establishing his own import-export company. He is currently active in the real estate sector.

ECONOMIC
06. OURPERFORMANCE

Nurcan YURTBİLİR (Member)
She was born in Ankara in 1947 After graduating from TED Ankara College, she started trading. She was a member of theboard of directors of Nuh Ticaret Sanayi A.Ş. She is still a member of the board of directors of Nuh Group Companies.

SOCIAL
07. OURPERFORMANCE

Mehmet ESKİYAPAN (Member)
He was born in Ankara in 1950. He completed his secondary and high school education at TED Ankara College, and hishigher education at the Department of Mechanical Engineering at Dortmund University, Germany. He started his career in1974 at Nuh Çimento A.Ş. as a Mechanical Engineer. Since 1975, Nuh Çimento A.Ş. He has been a member of the Board of
Directors. In 1994-1999, Nuh Çimento A.Ş. He served as Chairman of the Board of Directors. With his own company SEDO
A.Ş. He does construction works in Muğla Province, Bodrum. Nuh Çimento Industry Foundation member, Kocaeli
Chamber of Industry Assembly member, TOBB General Assembly delegate, TOBB Industry Council membership, as TOBB
representative; He is the Deputy Chairman of the German-Turkish Chamber of Commerce and Industry of AHK in Istanbul
and the Deputy Chairman of the Turkish-German Chamber of Commerce and Industry of TD-İHK in Berlin, Germany.

OUR ENVIRONMENTALPERFORMANCE

Fikret ESKİYAPAN (Member)
He was born in Ankara in 1949. He completed his secondary education at TED Ankara College and his undergraduate
education at the Department of Mechanical Engineering at the University of Dortmund, Germany. He started his career at
Nuh Makine Sanayi A.Ş. as a Mechanical Engineer.

09. ANNEXES 08.

Tevfik BİLGİN (Chairman of the Board of Directors)
He graduated from the Department of Public Administration, Faculty of Economics and Administrative Sciences, Middle
East Technical University. He holds a Master of Business Administration (MBA) from the University of Iowa, USA. He
worked as a Sworn Auditor of Banks between 1992 and 2001, and as Assistant Financial Affairs Coordinator in charge ofFinance Companies at Anadolu Endüstri Holding between 2001 and 2003. He became the General Manager of T. Halk
Bank in 2003 and was elected as the chairman of the BRSA and SDIF in December 2003. In 2006, he was re-elected as
the chairman of the BRSA for 6 years and continued this duty until 2012.

99

Yılmaz KÜÇÜKÇALIK (Member)
He was born in Kayseri in 1963. He completed his secondary education at the private Saint Benoit French High School andhis undergraduate education at Yildiz Technical University, Industrial Engineering in 1983. Today, he continues to serveas the Vice Chairman of the Board of Directors of the Küçükçalık Group of Companies. He is also the Chairman of theBoard of Lux Velvet A.Ş., Emintaş Emlak İnşaat A.Ş. Member of the Board of Directors, Member of the Board of Kent
Meydani AVM.
Vahdettin ERTAS (Independent Member)
He graduated from Ankara University, Faculty of Political Sciences in 1987. In 1991, he completed the Master's program at
Hacettepe University, Department of Business Administration. He received his MBA degree from Lancaster University in
England in 1996 and his Ph.D. degree from Hacettepe University Business Administration Department in 2012. Following
his graduation from the Faculty of Political Sciences, he won the Assistant Specialist exam opened by the CapitalMarkets Board (SPK) in the same year. In 1997, was appointed to the Department of Institutional Investors, which
regulates mutual funds and partnerships, real estate investment funds and partnerships, venture capital funds andpartnerships and private pension funds, and conducts the business and transactions of these institutions. Between
2002-2005 April, he served as the Head of the Partnerships Finance Department, which regulates and conducts theactivities and transactions of public companies such as public offerings, issuance of bonds and similar capital market
instruments, mergers, spin-offs and calls. He served as the President of the Gold Exchange in 2005-2006. He wasappointed as a Board Member to the Capital Markets Board in December 2006, and was appointed as the Chairman of theBoard in December 2012 after completing his six-year duty as a Board member. He completed his five-year Presidential
term in December 2017. During his tenure, he was a Member of the Tax Council, a member of the board of directors of the
Natural Disasters Insurance Corporation (DASK), the Chairman of the Board of Directors of the Investor Compensation
Fund, and the Chairman of the form that gathers the capital market regulatory authorities of Islamic Countries for five
years. Currently, he is teaching graduate courses at universities, serving as a member of the board of directors at theProduct Specialty Exchange of Turkey, as well as an independent board member and consultant in private sector
organizations.
Ismail KÖKSAL (Independent Member)
He was born in Afyonkarahisar in 1962. He graduated from Afyon High School in 1980 and from Bursa Uludağ University,
Faculty of Economics and Administrative Sciences, Department of Economics in 1984. She trained in the UK between
1990-1991. He completed the Public Administration and European Union program at the Royal Institute of Public
Administration. He completed his Master's degree at Gazi University, Institute of Social Sciences in 1992. He completed
the qualification part of the doctoral program at Gazi University, Institute of Social Sciences in 1995. After winning theexam, he started to work as an Assistant Expert of the Prime Minister's Office in 1986. Having successfully completed
his specialty thesis and proficiency exam, he received the title of Prime Ministry Specialist in 1989. He worked in thePrime Minister's Office until 1996. Later; Deputy Chairman of the Prime Ministry Family Research Institution in
1996-1998, Deputy Undersecretary of the Ministry of Tourism in 1999-2002, Chairman of the Board of Directors of
Istanbul Lütfi Kırdar International Congress Center (UKTAŞ) in 1999-2001, Member of the Public Procurement Board in
2002-2003, in 2003-2010 Secretary General of the Union of Chambers and Commodity Exchanges of Turkey,
Undersecretariat of Foreign Trade in 2003-2009, Member of the Executive Board of the Export Promotion Center(IGEME), Member of the European Union of Chambers of Industry and Commerce (EUROCHAMBERS) Budget Committee
in 2005-2009, TOBB Economy in 2006-2009 He served as a Member of the Board of Trustees of the University ofTechnology and Technology and retired from the Prime Ministry in 2015.
Aclan ACAR (Independent Member)
Aclan Acar started his working life at Halk Bank in 1974 and continued his banking career at the Central Bank of the
Republic of Turkey since 1978 and worked in various departments of this institution until 1990. He started working in theDoğuş Group in September 1990 His first position in the group was as Deputy General Manager of Garanti Bank. Between
1994 and 1996, he assumed the duty of General Manager of Bank Ekspres, which was acquired by Doğuş Group. June 1996
after the acquisition of the Ottoman Bank by the Doğuş Group, he was appointed as the General Manager of the Bank.
Since April 2000, he has served as a Member of the Board of Directors and Executive Committee of Doğuş Holding A.Ş.
He was appointed as the Chairman of the Board of Directors of TANSAŞ as of 2001, and this duty ended in 2005 when
TANSAŞ left the Group. Between 2002-2006, Garanti Sigorta A.Ş. and Garanti Pension A.Ş. He served as Chairman of theBoard of Directors. Between February 2006 and March 2018,He served as Chairman of the Board of Directors for Doğuş
Otomotiv Servis Ticaret A.Ş. and Doğuş Oto Pazarlama A.Ş. in March 2018 Doğuş served as Chairman of the Board of
Directors and CEO of the Publishing Group, and in December 2018 he left the Doğuş Group. He has been serving as a
Member of the Board of Directors of Türk Telekom since March 2019. He founded his own consulting company in 2019.
Still acting as a member of the board of directors of Nuh Çimento San. A.Ş. and QUA Granit A.Ş. Aclan Acar also works
as a consultant at Global Exchange A.Ş. Also between March 2002 - April 2005 served as an independent member of theboard of directors for Tüpraş A.Ş, he still serves in the board of overseers in TED University and TED Istanbul College.
Aclan Acar graduated from the Ankara Akademi of Economic and Commercial Sciences, Department of Business
Administration and Accounting, and received his postgraduate degree in Banking and Insurance from the same faculty.
He also did his graduate studies in Economics at Vanderbilt University in Nashville, Tennessee, USA in the period 19851986.

100 Nuh Çimento 2022 Integrated Annual ReportTO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCESOCIAL
07. OURPERFORMANCEOUR ENVIRONMENTALPERFORMANCE

Elif Bilgehan MÜFTÜOĞLU (Independent Member)
She was born in Ankara in 1974. She received her BA from the Middle East Technical University, Department of GeologicalEngineering and her master's degree in Geology High Technology Applications from the University of Cincinnati, USA.
After working on Satellite Image Processing and Geographic Information Systems in the USA, she returned to Turkey andstarted to work as a network manager in the IT department of the Ministry of Treasury and Finance State Supply Office.
She played a role in the establishment of the e-procurement and e-procurement systems of the office, worked as aproject manager in the TOBB Software Development Department between 2007-2010. She is responsible for the ECommerce Registry and Trade Registry Newspaper e-Archive project and has made technical reviews for current anddraft legislation Decrees on e-commerce application, R&D project incentives in the e-communication sector, enotification, personal data protection. Between 2010 and 2014, she worked as a member of the TOBB working group in
the Intellectual Property Rights and R&D Technical Committee of the Coordination Board for Improving the Investment
Environment. He was responsible for the preparation and implementation of action plans in accordance with existing
policies and the needs of the private sector in order to take advantage of the R & D capacity of the private sector. During
this time, he received an MBA degree from TOBB University of Economics and Technology with the graduation project”Economic Analysis of Technology Transfer". Since October 2014 he has been serving as the General Manager of GS1
Turkey. GS1 Turkey, one of the member organizations of The Belgium-based International Standards Organization GS1
located in 117 countries, offers the standards and solutions created to increase the efficiency of operations in the supply
chain and to ensure traceability on the chain to the use of companies in our country, and also takes part in the GS1
European Region structure consisting of 49 member organizations. Elif Muftuoğlu as the General Manager of GS1 Turkey,
who was first elected to the Board of Directors of the European Region consisting of 12 countries in 2016, She was also
elected as the Vice President of the European Region in 2020. Currently, Elif Muftuoglu, who holds the position ofGeneral Manager of GS1 Turkey, Vice President of GS1 Europe, is also a member of the board of directors of GDSN Inc,
registered in the Delaware registry of the USA, which is a subsidiary of GS1 Head Office since the first quarter of 2021,
and as an independent member of the board of directors of Nuh Çimento A.Ş. and is a member of the Information
Technology Association of Turkey and the SpaceTURK-Space Research working group.

09. ANNEXES 08.

Tevfik KINIK (ındependent Member)
He graduated from the Faculty of Political Sciences of Ankara University and did his master's degree at Harvard
University. He started his professional life in 1999 as an assistant specialist at the Capital Markets Board (CMB) andserved as the Head of the Institutional Investors Department and Vice Chairman of the Board at the CMB. After that, heserved as the deputy general manager responsible for capital markets and loans at Aktif Bank and the founding generalmanager at Simah Rating (Tassnief), the first local credit rating agency in Saudi Arabia. After that, he assumed the roleof CEO at Demirören Holding. He is currently a member of the Board of Directors at BtcTurk Group companies, he also
serves as an independent member of the board of directors at the Turkish Securitization Company and Nuh Çimento A.Ş

101

STATEMENT OF INDEPENDENCE

I declare that I am a candidate to serve as an "Independent Member" to the board of the directors of Nuh Çimento
Sanayi A.Ş (Company), under the conditions of the relevant regulations, articles of association, and within the scopeof the criteria determined in the Corporate Governance Principles of the Capital Markets Board, I declare that;a) I declare that there is no employment relationship in a managerial position that will assume important duties andresponsibilities in the last five years, that more than 5% of the capital or voting rights or privileged shares are notowned jointly or individually, or that no significant commercial relationship has been establishedbetween the company, the partnerships in which the company has management control or significant influence, thepartners holding the management control of the company or having significant influence in the company, and thelegal entities over which these partners have management control, myself, my spouse and my relatives by blood andmarriage up to the second degree;b) I have not been, in the last five years, in companies where the company has purchased or sold significant services
or products within the framework of the agreements made, especially in the audit (including tax audit, legal audit,
internal audit), rating and consultancy of the company, in the periods when the service or product is purchased orsold , partner five percent or more), that I did not work in a managerial position to undertake important duties andresponsibilities, or been a member of the board of directors;c) I have the professional education, knowledge and experience to fulfill the duties I will undertake as required, due
to that I am an independent member of the board of directors,ç) In accordance with the legislation, I will not work full-time in public institutions and organizations after being
elected as a member, except for university teaching membership,d)The Income Tax Law dated 31/12/1960 and numbered 193 (G.V.K.) according to which I am considered settled in
Turkey,e)That I have strong ethical standards, professional reputation and experience that can make positive contributions
to the company's activities, maintain my impartiality in conflicts of interest between the company andshareholders, and decide freely taking into account the rights of stakeholders,f)That I can devote time to company affairs to the extent that I can follow the function of company activities andfully fulfill the requirements of the tasks I undertake,g)That I have not been a member of the board of directors of the company for more than six years in the last ten
years,ğ) That I am not serving as an independent member of the board of directors in more than three of the companies inwhich the company or the partners who have management control of the company have management control, and in
total in more than five of the companies listed on the stock exchange,h) I declare that I have not been registered and announced on behalf of the legal entity elected as a member of theBoard of Directors. December 13, 2022
Vahdettin ERTAŞ

102 Nuh Çimento 2022 Integrated Annual Reporta) I declare that there is no employment relationship in a managerial position that will assume important duties andresponsibilities in the last five years, that more than 5% of the capital or voting rights or privileged shares are notowned jointly or individually, or that no significant commercial relationship has been establishedbetween the company, the partnerships in which the company has management control or significant influence, thepartners holding the management control of the company or having significant influence in the company, and thelegal entities over which these partners have management control, myself, my spouse and my relatives by blood andmarriage up to the second degree;

TO OUR
01. MESSAGE
STAKEHOLDERSI declare that I am a candidate to serve as an "Independent Member" to the board of the directors of Nuh Çimento
Sanayi A.Ş (Company), under the conditions of the relevant regulations, articles of association, and within the scopeof the criteria determined in the Corporate Governance Principles of the Capital Markets Board, I declare that;

CORPORATE
02. OURPROFILESTATEMENT OF INDEPENDENCEg)That I have not been a member of the board of directors of the company for more than six years in the last ten
years,ğ) That I am not serving as an independent member of the board of directors in more than three of the companies inwhich the company or the partners who have management control of the company have management control, and in
total in more than five of the companies listed on the stock exchange,h) I declare that I have not been registered and announced on behalf of the legal entity elected as a member of theBoard of Directors. December 13, 2022
I smail KÖKSAL

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTf)That I can devote time to company affairs to the extent that I can follow the function of company activities andfully fulfill the requirements of the tasks I undertake,

ECONOMIC
06. OURPERFORMANCEe)That I have strong ethical standards, professional reputation and experience that can make positive contributions
to the company's activities, maintain my impartiality in conflicts of interest between the company andshareholders, and decide freely taking into account the rights of stakeholders,

SOCIAL
07. OURPERFORMANCEd)The Income Tax Law dated 31/12/1960 and numbered 193 (G.V.K.) according to which I am considered settled in
Turkey,OUR ENVIRONMENTALPERFORMANCEç) In accordance with the legislation, I will not work full-time in public institutions and organizations after being
elected as a member, except for university teaching membership,

09. ANNEXES 08.

c) I have the professional education, knowledge and experience to fulfill the duties I will undertake as required, due
to that I am an independent member of the board of directors,

03.

b) I have not been, in the last five years, in companies where the company has purchased or sold significant services
or products within the framework of the agreements made, especially in the audit (including tax audit, legal audit,
internal audit), rating and consultancy of the company, in the periods when the service or product is purchased orsold , partner five percent or more), that I did not work in a managerial position to undertake important duties andresponsibilities, or been a member of the board of directors;

103

STATEMENT OF INDEPENDENCE

I declare that I am a candidate to serve as an "Independent Member" to the board of the directors of Nuh Çimento
Sanayi A.Ş (Company), under the conditions of the relevant regulations, articles of association, and within the scopeof the criteria determined in the Corporate Governance Principles of the Capital Markets Board, I declare that;a) I declare that there is no employment relationship in a managerial position that will assume important duties andresponsibilities in the last five years, that more than 5% of the capital or voting rights or privileged shares are notowned jointly or individually, or that no significant commercial relationship has been establishedbetween the company, the partnerships in which the company has management control or significant influence, thepartners holding the management control of the company or having significant influence in the company, and thelegal entities over which these partners have management control, myself, my spouse and my relatives by blood andmarriage up to the second degree;b) I have not been, in the last five years, in companies where the company has purchased or sold significant services
or products within the framework of the agreements made, especially in the audit (including tax audit, legal audit,
internal audit), rating and consultancy of the company, in the periods when the service or product is purchased orsold , partner five percent or more), that I did not work in a managerial position to undertake important duties andresponsibilities, or been a member of the board of directors;c) I have the professional education, knowledge and experience to fulfill the duties I will undertake as required, due
to that I am an independent member of the board of directors,ç) In accordance with the legislation, I will not work full-time in public institutions and organizations after being
elected as a member, except for university teaching membership,d)The Income Tax Law dated 31/12/1960 and numbered 193 (G.V.K.) according to which I am considered settled in
Turkey,e)That I have strong ethical standards, professional reputation and experience that can make positive contributions
to the company's activities, maintain my impartiality in conflicts of interest between the company andshareholders, and decide freely taking into account the rights of stakeholders,f)That I can devote time to company affairs to the extent that I can follow the function of company activities andfully fulfill the requirements of the tasks I undertake,g)That I have not been a member of the board of directors of the company for more than six years in the last ten
years,ğ) That I am not serving as an independent member of the board of directors in more than three of the companies inwhich the company or the partners who have management control of the company have management control, and in
total in more than five of the companies listed on the stock exchange,h) I declare that I have not been registered and announced on behalf of the legal entity elected as a member of theBoard of Directors. December 13, 2022
A clan ACAR

104 Nuh Çimento 2022 Integrated Annual Reporta) I declare that there is no employment relationship in a managerial position that will assume important duties andresponsibilities in the last five years, that more than 5% of the capital or voting rights or privileged shares are notowned jointly or individually, or that no significant commercial relationship has been establishedbetween the company, the partnerships in which the company has management control or significant influence, thepartners holding the management control of the company or having significant influence in the company, and thelegal entities over which these partners have management control, myself, my spouse and my relatives by blood andmarriage up to the second degree;

TO OUR
01. MESSAGE
STAKEHOLDERSI declare that I am a candidate to serve as an "Independent Member" to the board of the directors of Nuh Çimento
Sanayi A.Ş (Company), under the conditions of the relevant regulations, articles of association, and within the scopeof the criteria determined in the Corporate Governance Principles of the Capital Markets Board, I declare that;

CORPORATE
02. OURPROFILESTATEMENT OF INDEPENDENCEg)That I have not been a member of the board of directors of the company for more than six years in the last ten
years,ğ) That I am not serving as an independent member of the board of directors in more than three of the companies inwhich the company or the partners who have management control of the company have management control, and in
total in more than five of the companies listed on the stock exchange,h) I declare that I have not been registered and announced on behalf of the legal entity elected as a member of theBoard of Directors. December 13, 2022
Tevfik KINIKK

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTf)That I can devote time to company affairs to the extent that I can follow the function of company activities andfully fulfill the requirements of the tasks I undertake,

ECONOMIC
06. OURPERFORMANCEe)That I have strong ethical standards, professional reputation and experience that can make positive contributions
to the company's activities, maintain my impartiality in conflicts of interest between the company andshareholders, and decide freely taking into account the rights of stakeholders,

SOCIAL
07. OURPERFORMANCEd)The Income Tax Law dated 31/12/1960 and numbered 193 (G.V.K.) according to which I am considered settled in
Turkey,OUR ENVIRONMENTALPERFORMANCEç) In accordance with the legislation, I will not work full-time in public institutions and organizations after being
elected as a member, except for university teaching membership,

09. ANNEXES 08.

c) I have the professional education, knowledge and experience to fulfill the duties I will undertake as required, due
to that I am an independent member of the board of directors,

03.

b) I have not been, in the last five years, in companies where the company has purchased or sold significant services
or products within the framework of the agreements made, especially in the audit (including tax audit, legal audit,
internal audit), rating and consultancy of the company, in the periods when the service or product is purchased orsold , partner five percent or more), that I did not work in a managerial position to undertake important duties andresponsibilities, or been a member of the board of directors;

105

STATEMENT OF INDEPENDENCE

I declare that I am a candidate to serve as an "Independent Member" to the board of the directors of Nuh Çimento
Sanayi A.Ş (Company), under the conditions of the relevant regulations, articles of association, and within the scopeof the criteria determined in the Corporate Governance Principles of the Capital Markets Board, I declare that;a) I declare that there is no employment relationship in a managerial position that will assume important duties andresponsibilities in the last five years, that more than 5% of the capital or voting rights or privileged shares are notowned jointly or individually, or that no significant commercial relationship has been establishedbetween the company, the partnerships in which the company has management control or significant influence, thepartners holding the management control of the company or having significant influence in the company, and thelegal entities over which these partners have management control, myself, my spouse and my relatives by blood andmarriage up to the second degree;b) I have not been, in the last five years, in companies where the company has purchased or sold significant services
or products within the framework of the agreements made, especially in the audit (including tax audit, legal audit,
internal audit), rating and consultancy of the company, in the periods when the service or product is purchased orsold , partner five percent or more), that I did not work in a managerial position to undertake important duties andresponsibilities, or been a member of the board of directors;c) I have the professional education, knowledge and experience to fulfill the duties I will undertake as required, due
to that I am an independent member of the board of directors,ç) In accordance with the legislation, I will not work full-time in public institutions and organizations after being
elected as a member, except for university teaching membership,d)The Income Tax Law dated 31/12/1960 and numbered 193 (G.V.K.) according to which I am considered settled in
Turkey,e)That I have strong ethical standards, professional reputation and experience that can make positive contributions
to the company's activities, maintain my impartiality in conflicts of interest between the company andshareholders, and decide freely taking into account the rights of stakeholders,f)That I can devote time to company affairs to the extent that I can follow the function of company activities andfully fulfill the requirements of the tasks I undertake,g)That I have not been a member of the board of directors of the company for more than six years in the last ten
years,ğ) That I am not serving as an independent member of the board of directors in more than three of the companies inwhich the company or the partners who have management control of the company have management control, and in
total in more than five of the companies listed on the stock exchange,h) I declare that I have not been registered and announced on behalf of the legal entity elected as a member of theBoard of Directors. December 13, 2022
Elif Bilgehan MÜFTÜOĞLU

106 Nuh Çimento 2022 Integrated Annual Report

Early Detection of Risk Committee
The Early Detection of Risk Committee was established in accordance with the relevant provisions of the CapitalMarkets Board. The purpose of the Committee is to provide recommendations to the Board of Directors on the early
detection, evaluation, calculation of the impact and probability of all kinds of risks that endanger the existence,development and continuation of the Company, managing these risks in accordance with the Company's corporaterisk-taking profile, reporting, implementing the necessary measures related to the identified risks, taking them into
account in decision-making mechanisms and integrating effective internal control systems accordingly.
In 2022, the Committee reviewed the risk management systems, identified the risks to be kept and managed in the
Company, and supported the Board of Directors in identifying opportunities that could increase the effectiveness of
the Company's activities. The Early Detection of Risk Committee has met six times in 2022.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCESOCIAL
07. OURPERFORMANCE

Committee Responsible for Audit
The Committee Responsible for the Audit was established in accordance with the relevant provisions of the CapitalMarkets Board. It is responsible for ensuring healthy supervision of financial and operational activities. The purposeof the committee serving under the Board of Directors is to monitor the Company's financial and operational
activities, to supervise and approve the accuracy of the annual and interim financial statements to be disclosed tothe public, to ensure the selection of an independent audit company, to initiate an independent audit process by
preparing independent audit contracts, to monitor the functioning and effectiveness of the internal control andinternal audit system and to evaluate the findings obtained in relation to the internal control system. The chairman
and members of the committee are elected from among the independent Members of the Board of Directors. The
Audit Committee held five meetings in 2022.

OUR ENVIRONMENTALPERFORMANCE

Corporate Governance Committee
The Corporate Governance Committee was established to monitor the Company's compliance with corporate
governance principles in accordance with the Capital Markets Board's Corporate Governance Principles, to carry out
improvement studies on this issue and to submit recommendations to the Board of Directors. Currently there are 7
members, one of whom is the chairman. The Committee meets as often as required by the task assigned to it.
It convened once in 2021. At the meetings, he checked the Corporate Governance Principles Compliance Report,
reviewed the work of the Investor Relations Department and evaluated whether the candidates in the proposals forindependent membership met the independence criteria and informed the Board of Directors about all these issues.
The duties of the Remuneration Committee, which are included in the Corporate Governance Principles of the CapitalMarkets Board, are performed by the Corporate Governance Committee.

09. ANNEXES 08.

In accordance with the Evaluation of the Board of Directors on the Working Principles and Efficiency of theCommittees of the Board of Directors In line with the Corporate Governance Principles of the Capital Markets
Board, which came into force on January 3, 2014, in order to ensure the healthy fulfillment of the duties andresponsibilities of the Board of Directors, and with the decision no. 1762 on 13 April 2022;• The Corporate Governance Committee shall consist of seven members, Mr. Vahdettin Ertaş shall be thechairman of the committee, Mr. Ismail Köksal, Mr. Aclan Acar, Mr. Mehmet Eskiyapan, Mr. Sinan Yurtbilir, Mr. Emin
Hisarcıklıoğlu and Ms. Serap Aktaş shall be members,• That the Early Detection of Risk Committee shall consist of five members, Mr. Vahdettin Ertaş shall be thechairman of the committee, Mr. Ismail Köksal, Mr. Tevfik Kınık, Mr. Ahmet Faik Paralı and Mr. Unal Eskiyapan shall bemembers,• The Audit Committee shall consist of five members, Mr. Vahdettin Ertaş shall be the chairman of thecommittee and Mr. Ismail Köksal, Mr. Tevfik Kınık, Mr. Aclan Acar and Ms. Elif Bilgehan Müftüoğlu shall be themembers,• The Nomination Committee should consist of five members, Mr. Vahdettin Ertaş shall be the chairman of
the committee and Mr. Ismail Köksal, Mr. Fikret Eskiyapan, Mr. Mehmet Eskiyapan and Mr. Sinan Yurtbilir shall be themembers.
Annual activities of the Committees of the Board of Directors;• The Corporate Governance Committee met once in 2022, on February 23, 2022.
• The Early Detection of Risk Comittee met six times in 2022 on dates February 23rd 2022, April 26th 2022,
May 25th 2022, August 31st 2022, November 30th 2022, December 28th 2022.
• The Audit Committee met five times in 2022 on dates 23rd February 2022, March 1st 2022, May 10th 2022,
August 19th 2022, and November 4th 2022.
• The Nomination Committee met twice in 2022 on dates January 20th 2022, December 13th 2022.
The Committees of the Board of Directors have submitted their reports to the Board of Directors containing
information about their activities and the results of the meetings held during the year. The Board of Directors is of
the opinion that the working principles and effectiveness of the Committees of the Board of Directors are benefited.

107

Nomination Committee
To evaluate candidate proposals for independent membership by considering whether the candidate meets the criteria of
independence and to submit his/her evaluation to the board of directors by linking it to a report, to create a transparent
system for identifying, evaluating and training suitable candidates for managerial positions with administrative
responsibility and to determine policies and strategies in this regard, to conduct periodic evaluations about the structureand efficiency of the board of directors and to submit recommendations to the board of directors on changes that may bemade on these issues. The Nomination Committee has convened twice in 2022.
STATEMENT OF COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES
In corporate governance practices, the Company pays utmost attention to compliance with the Capital Markets Board(CMB) Corporate Governance Principles, and in areas that cannot comply, the reasons and measures taken against
conflicts of interest that may arise due to non-compliance with the principles are explained in the relevant sections of the
Corporate Governance Compliance Report and the Corporate Governance Information Forum. The purpose of applying
these principles is to strengthen the trust of all stakeholders of the Company.
The Company, which adopts the corporate governance approach as a principle, fully complies with the principles that aremandatory within the scope of the Corporate Governance Statement II-17.1 (Communiqué), while the vast majority of thenon-mandatory principles have been complied with.
Although full compliance with the non-mandatory Corporate Governance Principles is also aimed, full compliance has notbeen achieved due to difficulties experienced in practice, country conditions in some principles, market and noncompliance with the Company's current structure. Our company has not received any information that any conflict ofinterest has occurred due to non-mandatory Principles not being fully complied with, and no determination has been
made in this direction by the Corporate Governance Committee of our Company. Administrative, legal and technicalinfrastructure works are continuing for the principles that the company cannot implement, and it is planned to
implement the missing principles when the work is completed.
The main topics of the discretionary principles that our Company cannot comply with from the Corporate GovernancePrinciples are listed below.
- Donations and aids were included in the agenda of the general assembly with a separate agenda item. the information
document for the general assembly meeting held in 2022 contains the total amount and the details of the highest
consistent donations. (BMI 1.3.10)- Minority rights have not been granted to those who have a ratio of less than one twentieth of the capital by the articles
of association, and rights have been provided within the framework of the general regulations in the legislation. (BMI
1.5.2)- The website has been prepared in accordance with the issues stated in the Corporate Governance Principles. Most of thesite has been prepared in such a way that foreign investors can use it. (BMI 2.1.4)- There is no policy or procedure published on the corporate website regarding the rights of stakeholders. (BMI 3.1.3)- The participation of employees in the management is not regulated by the articles of association or internal
regulations. (BMI 3.2.1)- There are no succession plans for all key executive positions at the company. (BMI 3.3.1)- Information meetings and trainings are held on health, education, occupational health and safety issues. (BMI 3.3.4)- The Chairman of the Board of Directors and the Chief Executive Officer of the Company are not the same person.
However, it is not stated in the articles of association. (BMI 4.2.5)- A target and time has not been determined to ensure that the rate of female members in the Board of Directors is notless than 25%, and a policy has not yet been established to achieve this target. There is one female member on the boardof directors. (BMI 4.3.9)- It is essential that the information and documents related to the issues to be included in the board of directors meetingare sent to all members before the meeting. However, there is no internal regulation for the minimum period of time.
(BMI 4.4.2)- All members of the board of directors are informed about the manner in which the meetings of the board of directors
will be held at the beginning of the year. However, there is no written internal company regulation specific to this issue.
(BMI 4.4.5)- Members of the Board of Directors may take on other duties outside the company. It is not bound by certain rules and is
not limited. (BMI 4.4.7)- The Members of the Board of Directors are necessarily involved in more than one committee due to the structure of theBoard of Directors and the obligations required by the CMB Legislation. (BMI 4.5.5)- No special studies have been carried out for the purpose of performance evaluation at the board level. (BMI 4.6.1)- In accordance with the Law on the Protection of Personal Data No. 6698, it has been disclosed as a total amount insteadof a disclosure on a person-by-person basis. (BMI 4.6.5)
The Corporate Governance Compliance Report (URF) and the Corporate Governance Information Form (KYBF) for the year
2022, prepared in accordance with the CMB's Decision dated 10.01.2019 and numbered 2/49 and approved by NuhÇimento's Board of Directors, were disclosed to the public on the Public Disclosure Platform within the period deemed
appropriate by the CMB.
108 Nuh Çimento 2022 Integrated Annual Report

The dividend distribution proposal of the Company's Board of Directors is presented to the information of shareholders at theGeneral Assembly every year as a separate agenda item. The annual profit distribution proposal, which contains the details
stipulated in the profit distribution policy and CMB Corporate Governance Principles, is included in the annual report,
submitted to the information of the stakeholders at the General Assembly and announced to the public on the Company's
website.
From the profit for the period on the balance sheet for 2021 prepared in accordance with the Tax Procedure Law (VUK), a grossdividend of TL 322,959,240 was distributed to stakeholders as a gross 2.15 cents per share, starting from March 28, 2022.

TO OUR
01. MESSAGE
STAKEHOLDERS

On what date and in what manner the annual profit will be distributed to the stakeholders is decided by the General Assembly
upon the proposal of the Board of Directors in accordance with the Capital Markets Law and the relevant regulations of theCapital Markets Board.

CORPORATE
02. OURPROFILE

Information about the Profit Distribution Policy
Our Company regulates the profit distribution pursuant to Capital Market Regulations, Turkish Commercial Code, tax
regulations and Articles of Association article 26. There is no concession in the Articles of Association regarding participationin the company's profit.

RISK MANAGEMENT AND EVALUATION OF THE BOARD OF DIRECTORS
A. Risk management
The main goals of Nuh Çimento in risk management are to be able to foresee, manage, monitor potential risks in advance, tocreate the necessary action plans in terms of risk and crisis management in advance. The Board of Directors, the Committee
Responsible for Early Detection of Risk and Audit and the Senior Management of the Company are regularly informed about
the risks.
The Early Detection of Risk Committee is chaired by Mr. Vahdettin Ertaş, an independent member of the Board of Directors.
The other members of the Committee consist of Independent Board Members Mr. Ismail Köksal and Mr. Tevfik Kınık, as well
as Board members Mr. Ünal Eskiyapan and Mr. Ahmet Faik Paralı. The Early Detection of Risk Committee held 6 meetings in
2022 and informed the Board of Directors about the decisions taken.
The Early Detection of Risk Committee makes recommendations to the Board of Directors on compliance with Article 378 of
the Turkish Commercial Code No. 6102, which entered into force on July 1, 2012, and early detection, evaluation, calculation ofeffects and probabilities of risks that may affect the Company, managing these risks in accordance with the company's
corporate risk appetite, reporting, taking necessary measures to reduce the effects and probabilities of identified risks, andcreating effective internal control systems accordingly.
The three main risk categories and the actions taken that may affect Nuh Çimento's achievement of its goals are summarized
below.

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCESOCIAL
07. OURPERFORMANCE

Ayhan IMAMOĞLU / CFO
He was born in Germany in 1969. He graduated from Middle East Technical University, Department of Economics in 1994.
served as a "Budget and Reporting Manager” in Alarko Contracting Group between 1996 and 2001; as "Budget, Planning and
Financial Analysis Group Manager” in Alarko Holding A.Ş from 2002 to 2005, Responsible for the Entire Group of Companies;
Worked as"MIS, Budget and Financial Control Manager” at Petrol Ofisi A.Ş between 2006 - 2009'He was CFO of Rixos Hotels between
2010-2013. He possesses a SMMM (Certified Public Accountant and Financial Consultant) certificate and his specialties
include holding, construction / contracting, energy, tourism, real estate and industrial sectors. He has been serving as the CFO
of Nuh Çimento Group since October 2015.

OUR ENVIRONMENTALPERFORMANCE

Halim TEKKEŞİN / General Manager
He was born in Çankırı in 1971. He graduated from the Chemical Engineering Department of Middle East Technical University
and the Department of Foreign Trade of Anadolu University. He also received training in finance and business administration
at Kocaeli University. He started his business life in 1995 in Nuh Çimento Sanayi A.Ş, he started as an Operating Engineer andthen continued as a senior manager at AS Çimento Sanayi A.Ş., SC Sanayi A.Ş,. Nuh Yapı Ürünleri A.Ş. Finally he served as
Aslan Çimento A.Ş General Manager. In addition to building materials such as cement, concrete, lime, aerated concrete andplaster, he has professional studies on renewable energy and obtaining energy from waste heat.

09. ANNEXES 08.

Kamil Gökhan BOZKURT / CEO
Born in 1971, K. Gökhan Bozkurt completed his undergraduate education at the Department of Economics of Bilkent
University and his master's degree at the Department of Economics of Johns Hopkins University (USA). Between 1999 and2003, he held various positions in international financial institutions. In 2003, he served as the Head of the Foreign Relations
and Subsidiaries Department at Ziraat Bank and was a Member of the Board of Directors of Ziraat Bank Moscow and Ziraat
Bank International AG (Germany). Between 2004 and 2006, he worked as the Assistant General Manager responsible for
Human Resources, Financial Institutions and International Banking at Halk Bank of Turkey. He managed the Halkbank Pamukbank merger process. He has held various senior positions as Chairman of the Privatization Committee of Halkbank,
Deputy Chairman of the Board of Directors of Birlik Sigorta and Deputy Chairman of the Board of Directors of SME Venture
Capital Investment Trust. He joined Türk Telekom in 2006 as the Head of Human Resources and has served as the CEO of
Türk Telekom since 2010. He has successfully managed the transformation process of Türk Telekom and its subsidiaries froma public company to international and competitive private companies. He has been serving as the Group CEO of Nuh Groupsince March 2013.

03.

SENIOR MANAGERS

109

Nuh Çimento Risk Categories
1.
2.
3.

Financial Risks
Operational Risks
Strategic Risks

1. Financial Risks
Within the scope of financial risks, the Company manages exchange rate, interest rate and liquidity and counterparty
risks. The Company closely follows national and international economic developments and takes the necessary
measures by taking into account the impact of economic developments on assets and liabilities.
Currency Risk: Foreign exchange risk may arise in Nuh Çimento due to reasons such as the import of fuel, raw materials
and machine reserves.
On the other hand, the Company provides protection from the negative effects of the exchange rate with the exportagreements it has made. With the prohibition of limits imposed on loans denominated in Turkish lira, foreign currency
loans have been directed. Forward and eurobond contracts have been made in order to protect against the exchange raterisk that may occur.
Interest Rate Risk: The basic approach of the company in interest rate risk management is to create a financial assetliability portfolio with a balanced interest structure. In order to manage the interest rate risk, the amount, maturity andinterest rates of interest-sensitive assets and liabilities are carefully monitored and balanced in favor of the Company.
The entire loan portfolio consists of fixed-interest loans.
Liquidity and Counterparty Risk: The basic approach to managing liquidity risk is to have ready-made resources that canfulfill financial obligations at an adequate level and on time. The company currently holds enough cash to cover asignificant portion of short-term foreign resources. Trade receivables are tracked within the guarantee limits and thecompliance of the debt-receivable day numbers with the days stipulated in the budget is monitored.
2. Operational Risks
Within the scope of operational risks, the Company manages occupational health and safety, environmental risks,
information security and external risks. Operational risk efforts, which basically aim at the safe management ofoperations, also aim at compliance with laws and regulations and the protection of physical assets.
Occupational Health and Safety / Environmental Risks: Environmental risks and occupational health and safety risks
are among the areas that the Company focuses on with sensitivity. Nuh Çimento, which operates in a sector where therisks of occupational accidents are high, is constantly supported by training, implementation, audit and improvement
studies in accordance with the ISO 45001 Occupational Health and Safety Management System and Occupational Healthand Safety Law No. 6331 implemented within its structure. The company ensures that its employees are constantly
informed about occupational safety issues, changes in legislation are shared with the entire organization, OSH figures
are constantly included in company goals, the number of inspections, imminent notification, acceptance of the numberof non-compliance values as a priority, regular field inspection reports, technical analyses that investigate how accidents
happen, not why. The national and international agenda on the risk of climate change is closely followed. The company's
environmental activities are managed within the scope of ISO 14001 Environmental Management System and Policy,
especially the relevant legislation. The Company calculates its emissions in accordance with the Regulation on the
Monitoring of Greenhouse Gas Emissions and the Statement on the Monitoring and Reporting of Greenhouse Gas
Emissions. The validity of the environmental permits and licenses required for the continuation of the activities has
been ensured. At Nuh Çimento Facilities, energy efficiency and recovery, in addition to the use of alternative raw
materials and fuels, water, waste and biodiversity management are issues of strategic importance for the company.
Information Security: The Information Technology Directorate, business process managers, auditors and legal units work
closely together to determine the values of critical information systems. Periodic backups are made and measures aretaken to prevent the loss of corporate information. The company has ISO 27001 Information Security Management
System certificate since 2016. By following the findings obtained as a result of internal and external audits carried out
regularly, corrective actions are planned and risk reduction activities are carried out.
External Risks: The company conducts studies on risks arising from natural disasters, national and international
economic risks and political risks as external risks that it may encounter during its operations. Emergency and business
continuity plans are being prepared in relation to the possible natural disaster risks that may be encountered, exercises
are being conducted to minimize the risks that may occur in emergency situations and to intervene with methods that
achieve the goal. In addition, assets are insured against natural disaster risks.
3. Strategic Risks
Nuh Çimento's strategic risks consist of sales, supply chain, investment and project compliance risks that may create
obstacles in front of the Company's short, medium and long-term strategies. Legal risks and opportunities are evaluatedand followed up with management and legal consultants in terms of compliance with current laws, regulations,standards. In order to keep the risks caused by legal disputes due to insufficient or incorrect information or personnel's
failure to fulfill these obligations on time to a minimum, the relevant departments are informed according to thehierarchy within themselves. In order to prevent the negative effects of customer preferences, international standards
are followed.

110

Nuh Çimento 2022 Integrated Annual ReportTO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCESOCIAL
07. OURPERFORMANCEOUR ENVIRONMENTALPERFORMANCE

09. ANNEXES 08.

B. Internal Control System and Internal Audit
The internal control system has been established to ensure that the company's activities are carried out regularly andefficiently in accordance with the company's policies, assets are protected, errors and cheats are detected and prevented,
accounting records are complete and accurate, reliable financial information is prepared on time and achieves its goals.
There is an Internal Audit Unit affiliated to the Chairman of the Board of Directors within the Company. The Internal
Audit Unit conducts regular internal audit activities within the framework of the tasks assigned to them, and audit
determinations are put on the agenda without wasting time, ensuring that the necessary corrective measures are
implemented. The Audit Committee, which is a subcommittee of the company's board of directors, periodically monitors
all internal control and internal audit activities, reviews and approves annual audit plans. The Committee transmits thenecessary recommendations to the Board of Directors and gives opinions on the appropriateness of the financial reports.
The accounting accounts and financial statements are examined by the Audit Committee and the Audit Group
Presidency, as well as subject to audit by the independent audit company DRT Bağımsız Denetim ve Serbest
Muhasebeci Mali Müşavirlik A.Ş. (Deloitte Touche Tohmatsu Limited).

111

OTHER EXPLANATIONS REQUIRED BY LEGISLATION
Information about the transactions made by the members of the board of directors with the company or on behalf ofsomeone else within the framework of the permission granted by the general assembly of the company and the activities
covered by the prohibition of competition The Members of the Board of Directors of the Company have not madetransactions with the company and have not made attempts to compete in the same areas of activity.
There are no amendments to the articles of association made during the period.
There is no information regarding the own shares acquired by the Company.
There are no explanations related to the private audit and public audit conducted during the accounting period.
Explanations regarding the administrative and judicial sanctions imposed on the company and the members of the boardof directors due to practices contrary to the provisions of the legislation
There are no administrative or judicial sanctions applied against the company and the members of the management bodydue to practices contrary to the provisions of the legislation.
Information and assessments on whether the goals set in previous periods have been achieved, whether the decisions of
the general assembly have been fulfilled, if the goals have not been achieved or the decisions have not been fulfilled, thebudget goals set in previous periods have been achieved, the decisions of the general assembly have been fulfilled.
There is no information about the extraordinary general assembly held during the year.
Transactions with Related Parties
We carry out commercial activities in the form of purchase and sale of goods and services between our company and our
subsidiaries. Our relations are realized in market conditions. Both our purchases and sales are decided by reviewing themarket prices, quality and delivery possibilities, which are formed according to the transaction volume and the continuityof the business.
The amount of sales of goods and services in 2022 made by one of our subsidiaries Nuh Beton A.Ş is 334.266.822 TL.
The amount of sales of goods and services in 2022 made to one of our subsidiaries Nuh Yapı Ürünleri A.Ş is 141,842,411 TL.
Existing sales of goods and services are not within the scope of widespread and continuous asset, service and liability
transfers that can be evaluated within the framework of the Capital Markets Board's Statement No. II-17.1. Thesetransactions were carried out taking into account market conditions.
Determination and evaluation of the board of directors regarding whether the company's capital remains unrequited
and whether it is submerged in debt
The company's capital has not remained unrequited and it is not submerged in debt.
Measures being considered to improve the financial structure of the company
It is assumed that the Company's current working capital, financial structure and liquidity are sufficient and do not require
any measures to be taken. The financial structure is managed effectively by planning the cash inflows and their needs.
There are no explanations related to events of special importance that occur after the end of the operating year and may
affect the rights of partners, creditors and other relevant persons and organizations.
There are no legislative changes that may significantly affect the company's activities.
If the capital of a capital company has shares in the amount that reaches the limits set out in the legislation, or if its
shares fall below these percentages, this situation and its justification do not change in 2022, which reaches and falls
below these limits.
Information about the shares of the enterprises included in the Group in the capital of the parent company The enterprises
included in the group do not have a share in the capital of the parent company.
The company receives services on issues such as investment consultancy and rating:
When selecting the organizations from which the Company receives services, the Company acts in accordance with therelevant capital market regulations and takes the necessary measures to prevent possible conflicts of interest. There is noconflict of interest between the company and the organizations from which it receives service, during or after the service
period. In the first months of 2023, the credit rating agency JCR Eurasia Rating (JCR-ER) upgraded Nuh Çimento Sanayi
A.Ş.'s long-term national rating to "AA+ (tr)", short-term national rating to "J1+ (tr)", and long-term international
determined the foreign currency rating as "BB" and the long-term international local currency rating as "BB".

112

Nuh Çimento 2022 Integrated Annual ReportOUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENTThe Consolidated Financial
Statements and the Independent
Auditor’s Report Prepared as ofDecember 31, 2022

09. ANNEXES 08.

AND
04. STRATEGYMANAGEMENTNUH ÇİMENTO SANAYİ A.Ş.
AND SUBSIDIARIES03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERS

(CONVENIENCE TRANSLATION OF
INDEPENDENT AUDITOR’S REPORT ORIGINALLY ISSUED IN TURKISH)
INDEPENDENT AUDITOR'S REPORTTo the General Assembly of
Nuh Çimento Sanayi A.Ş.
A)

Audit of the Consolidated Financial Statements

1)

OpinionWe have audited the consolidated financial statements of Nuh Çimento Sanayi A.Ş. (“the Company”)
and its subsidiaries (“the Group”), which comprise the consolidated statement of financial position as
at 31 December 2022, and the consolidated statement of profit or loss and consolidated statement ofother comprehensive income, consolidated statement of changes in equity and consolidated statementof cash flows for the year then ended, and notes to the consolidated financial statements, including asummary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as of 31 December 2022, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with Turkish Financial Reporting Standards (“TFRS”).
2)

Basis for Opinion

We conducted our audit in accordance with the standards on auditing issued by Capital Markets Boardand the Standards on Independent Auditing (“SIA”) which is a part of Turkish Auditing Standards
published by the Public Oversight Accounting and Auditing Standards Authority (“POA”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Groupin accordance with the Code of Ethics for Independent Auditors (“Code of Ethics”) published by the
POA, together with the ethical requirements that are relevant to our audit of the consolidated financial
statements. We have also fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

114

Nuh Çimento 2022 Integrated Annual ReportDisclosure of the Group’s revenue
recognition accounting policies andbalances are presented in Note 2 and Note20.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

While conducting its assessments, the We performed the following procedures in relation toGroup management takes into account the the revenue recognition:
detailed conditions set out in TFRS 15
regarding the fulfilment of performance • The design and implementation of the controls
obligations and recognition of theon the revenue process have been evaluated. The
transaction costs allocated to them asGroup's sales and delivery procedures have beenrevenue, in particular whether the control ofanalyzed.
goods and services have passed to the • Terms of trade and delivery with respect tocustomer.
contracts made with customers have been
examined and the timing of revenue recognition
Revenue is important in terms of thein the financial statements for the different
amount of the financial statements and theshipment arrangements has been assessed.
measurementoftheCompany's • For substantive procedures, special emphasis isperformance.
given for transactions where the goods billed but
revenue has not been earned. Customers with the
The Group recognizes revenue by analyzing
longest delivery period have been identified
whether the significant risks and rewards
among the existing customers of the Group and a
are transferred to the buyer according to thedate range has been determined and sales lists
delivery terms of export sales.
have been provided from the relevant
departments. The control of the completenessIn this context, revenue recognition has
and accuracy of these lists have been tested.
been determined as one of the key audit
matters since determining whether the In addition, we assessed the adequacy of therevenue recognition criteria are met as well disclosures in Note 20 under TFRS.
as determining whether the revenue isrecorded in the financial statements in thecorrect period requires significant judgmentof management.

05. SUSTAINABILITYMANAGEMENT

How the matter was addressed in the audit

ECONOMIC
06. OURPERFORMANCEKey Audit Matter
Revenue recognition

SOCIAL
07. OURPERFORMANCE

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressedin the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.

OUR ENVIRONMENTALPERFORMANCEKey Audit Matters

09. ANNEXES 08.

3)

115

4)

Responsibilities of Management and Those Charged with Governance for theConsolidated Financial Statements

The Group Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with TFRS, and for such internal control as management determines isnecessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
5)

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Responsibilities of independent auditors in an independent audit are as follows:
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with the standards on auditing issued by CapitalMarkets Board and SIA will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with the standards on auditing issued by Capital Markets Board and
SIA, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion(The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control).
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.

116

Nuh Çimento 2022 Integrated Annual Report

B)

Report on Other Legal and Regulatory Requirements

In accordance with paragraph four of the Article 398 of the Turkish Commercial Code No. 6102(“TCC”), the auditor’s report on the system and the committee of early detection of risk has been
submitted to the Board of Directors of the Company on 31 January 2023.
In accordance with paragraph four of the Article 402 of TCC, nothing has come to our attention that
may cause us to believe that the Group’s set of accounts and financial statements prepared for theperiod 1 January - 31 December 2022 does not comply with TCC and the provisions of the Company’s
articles of association in relation to financial reporting.
In accordance with paragraph four of the Article 402 of TCC, the Board of Directors provided us all
the required information and documentation with respect to our audit.
The engagement partner on the audit resulting in this independent auditor’s report is Ali Çiçekli.
Additional paragraph for convenience translation to English
In the accompanying consolidated financial statements, the accounting principles described in Note 2(defined as Turkish Accounting Standards/Turkish Financial Reporting Standards) differ fromInternational Financial Reporting Standards (IFRS) issued by the International Accounting Standards
Board with respect to the application of inflation accounting. Accordingly, the accompanying
consolidated financial statements are not intended to present the financial position and results ofoperations in accordance with IFRS.
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU LIMITEDAli Çiçekli
Partner
Istanbul, 31 January 2023

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE
02. OURPROFILE

03.
AND
04. STRATEGYMANAGEMENT

From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequencesof doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

05. SUSTAINABILITYMANAGEMENT

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.

ECONOMIC
06. OURPERFORMANCE

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

SOCIAL
07. OURPERFORMANCE

Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Groupaudit. We remain solely responsible for our audit opinion.

OUR ENVIRONMENTALPERFORMANCE•

09. ANNEXES 08.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements (cont’d)

5)

117

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

Notes
ASSETS
Current Assets
Cash and Cash Equivalents
Financial Investments
Trade Receivables
Trade Receivables from Related Parties
Trade Receivables from Third Parties
Other Receivables
Other Receivables from Third Parties
Inventories
Prepaid Expenses
Current Tax Assets
Other Current Assets
Non-Current Assets
Trade Receivables
Trade Receivables from Third Parties
Other Receivables
Other Receivables from Third Parties
Financial Investments
Investment Properties
Property, Plant and Equipment
Right-of-Use Assets
Intangible Assets
Goodwill
Other Intangible Assets
Prepaid Expenses
Deferred Tax Asset
Other Non-Current Assets
TOTAL ASSETS

33
28
6
5
7
9
10
26
8

6
7
28
11
12
14
15
13
10
26
8

Current Period
31 December
2022

Prior Period
31 December
2021

3,558,795,877
1,143,706,177
148,105,189
876,729,355
876,729,355
153,254,322
153,254,322
980,282,096
70,077,943
8,989,288
177,651,507

1,648,247,014
553,884,272
7,767,675
424,520,781
17,800424,502,981
54,775,851
54,775,851
434,301,351
109,183,396
199,957
63,613,731

3,384,030,456
3,510,584
3,510,584
1,110,273,178
186,693,842
1,269,069,841
43,981,913
47,429,206
17,348,274
30,080,932
61,208,501
657,847,627
4,015,764

1,824,989,003
9,224,625
9,224,625
2,039,034
2,039,034
528,950,900
193,887,280
804,057,072
22,111,254
42,956,443
17,348,274
25,608,169
31,130,998
186,196,931
4,434,466

6,942,826,333

3,473,236,017

The accompanying notes from an integral part of these consolidated financial statements.
1
118

Nuh Çimento 2022 Integrated Annual ReportNon-Current Liabilities
Long-Term Liabilities
Lease Liabilities
Long-Term Provisions
Long-Term Provisions for Employee Benefits
Other Long-Term Provisions
Deferred Tax Liability

17
16
26

477,201,485
209,884,714
43,046,881
186,447,271
172,849,211
13,598,060
37,822,619

456,440,210
312,655,357
23,044,387
75,241,310
68,273,836
6,967,474
45,499,156

EQUITY
Equity Attributable to Equity Holders of the Parent
Paid-in Share Capital
Capital Adjustments Differences
Accumulated Other Comprehensive Income (Expenses)
that will not be Reclassified to Profit or Loss
- Gains from investments to equity-based
financial instruments- Loss on remeasurement of defined benefit plans
Restricted Reserves Appropriated from Profit
Prior Years' Profit
Net Profit for the Period

19
19

4,542,449,309
4,542,443,880
150,213,600
39,338,145

2,171,850,035
2,171,842,472
150,213,600
39,338,145

697,738,966

90,796,422

757,585,199(59,846,233)
507,442,693
1,061,092,372
2,086,618,104

99,341,944(8,545,522)
467,909,963
781,156,726
642,427,616

Non-Controlling Interest

5,429

7,563

6,942,826,333

3,473,236,017

10
27
17
16
18
28
28

19

The accompanying notes from an integral part of these consolidated financial statements.
2

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCETOTAL LIABILITIES AND EQUITY

177CORPORATE
02. OURPROFILE

844,945,772
248,000,000
159,639,079
1,943,928
269,988,577
269,988,577
9,527,928
22,389,733
22,389,733
61,355,041
46,001,093
25,803,966
5,864,583
19,939,383
296,427

28
28
28
6

03.

1,923,175,539
647,446,634
394,272,492
6,199,388
644,831,661
644,831,661
24,019,245
28,637,624
28,637,624
89,759,021
49,905,197
33,332,247
14,666,519
18,665,728
4,772,030

Notes
LIABILITIES AND EQUITYCurrent Liabilities
Short-Term Borrowings
Short-Term Portions of Long-Term Borrowings
Lease Payables
Trade Payables
Trade Payables to Third Parties
Payables Related to Employee Benefits
Other Payables
Other Payables to Third Parties
Deferred Income
Current Income Tax Liability
Short-Term Provisions
Short-Term Provisions for Employee Benefits
Other Short-Term Provisions
Other Current Liabilities

AND
04. STRATEGYMANAGEMENT

Prior Period
31 December
2021

05. SUSTAINABILITYMANAGEMENT

Current Period
31 December
2022

ECONOMIC
06. OURPERFORMANCE(Amounts expressed in Turkish Lira (TL))

SOCIAL
07. OURPERFORMANCE

AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

119

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSSFOR THE PERIOD 1 JANUARY - 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

Current Period

Prior Period

Notes

1 January31 December
2022

1 January31 December
2021

20
20

7,739,080,394(5,574,126,255)

2,493,229,032(1,794,543,838)

2,164,954,139

698,685,194(212,488,049)(188,425,154)(326,869)
89,000,133(68,738,296)(141,092,155)(76,476,667)(15,691)
110,028,891(54,885,200)

1,783,975,904

536,244,372

191,897,140(8,508,749)

46,783,275(5,539,656)

1,967,364,295

577,487,991

256,919,227(327,195,948)

263,945,713(193,380,722)

1,897,087,574

648,052,982

189,528,396(311,009,423)
500,537,819(5,621,220)(159,734,830)
154,113,610

PROFIT FOR THE PERIOD

2,086,615,970

642,431,762

Profit for the Period Attributable to
Non-Controlling Interests
Equity of the Parent Company
Earnings per share(2,134)2,086,618,104
13.89

4,146
642,427,616
4.28

PROFIT OR LOSS
Revenue
Cost of Sales (-)
GROSS PROFIT
General Administrative Expenses (-)
Marketing Expenses (-)
Research and Development Expenses (-)
Other Income from Operating Activities
Other Expenses from Operating Activities (-)

21
21
21
23
23

OPERATING PROFIT
Income from Investing Activities
Expenses from Investing Activities (-)

24
24

OPERATING PROFIT BEFOREFINANCE INCOME / (EXPENSES)
Finance Income
Finance Expenses (-)

25
25

PROFIT BEFORE TAXTax Income / (Expense)
Current Tax Expense
Deferred Tax Income

26
26

27

The accompanying notes from an integral part of these consolidated financial statements.
3
120 Nuh Çimento 2022 Integrated Annual Report1 January31 December
2022

1 January31 December
2021

2,086,615,970

642,431,762

606,942,544(64,125,889)(44,146,979)-

12,825,178-

692,887,637(46,470,767)(34,644,382)

2,323,788

606,942,544(44,146,979)

TOTAL COMPREHENSIVE INCOME

2,693,558,514

598,284,783

Total Comprehensive Income Attributable To:

2,693,558,514

598,284,783

Non-Controlling Interests
Equity of the Parent Company(2,134)
2,693,560,648

4,146
598,280,637

Notes
PROFIT FOR THE PERIODOTHER COMPREHENSIVE (EXPENSES) / INCOME:
Items that will be Reclassified to Profit or Loss
Items that will not be Reclassified to Profit or Loss
Remeasurement (Losses) of Defined Benefit Plans
Remeasurement (Losses) of Defined Benefit Plans,
Tax EffectEarnings from Investments in Equity-Based
Financial Instruments
Tax (Expense) / Income Regarding Other
Comprehensive Expenses

The accompanying notes from an integral part of these consolidated financial statements.
4

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCEOTHER COMPREHENSIVE INCOME / (EXPENSES)

17

CORPORATE
02. OURPROFILE

Prior Period

03.

Current Period

AND
04. STRATEGYMANAGEMENT(Amounts expressed in Turkish Lira (TL))

05. SUSTAINABILITYMANAGEMENT

AUDITED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 JANUARY - 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

121

122 Nuh Çimento 2022 Integrated Annual Report

Balances as of 31 December 2022

(59,846,233)(51,300,711)-(8,545,522)(8,545,522)-(8,545,522)

Gain / (Loss) on
Remeasurement of Defined
Benefit Plans

757,585,199

658,243,255-

99,341,944

99,341,944(44,146,979)-

143,488,923

Gains from Investments in
Equity Financial
Instruments

Accumulated Other Comprehensive
Income or Expenses that will not be Reclassified
Subsequently to Profit or Loss

507,442,693

39,532,730-

467,909,963

467,909,963

128,567,096-

339,342,867

Restricted
Reserves
Appropriatedfrom Profit

1,061,092,372

602,894,886(322,959,240)

781,156,726

781,156,726

441,682,646(225,320,400)

564,794,480

Prior Years'
Profit2,086,618,104(642,427,616)
2,086,618,104-

642,427,616

642,427,616(570,249,742)
642,427,616-

570,249,742

Net Profit for
the Period

Retained Earnings

The accompanying notes from an integral part of these consolidated financial statements.
539,338,145--

150,213,600

39,338,145

150,213,600

Balances as of 1 January 2022

Transfers
Total Comprehensive Income
Dividends

39,338,145--

150,213,600

39,338,145

150,213,600

Paid -in
CapitalCapitalAdjustment
Difference

Balances as of 31 December 2021

Transfers
Total Comprehensive Income
Dividends

Balances as of 1 January 2021

(Amounts expressed in Turkish Lira (TL))

AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 JANUARY - 31 DECEMBER 2022

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

4,542,443,880

2,693,560,648(322,959,240)

2,171,842,472

2,171,842,472

598,280,637(225,320,400)

1,798,882,235

Total Equity
Attributable to the
Parent5,429(2,134)
-

7,563

7,563

4,146

3,417

NonControlling
Interests

Equity4,542,449,309

2,693,558,514(322,959,240)

2,171,850,035

2,171,850,035

598,284,783(225,320,400)

1,798,885,652

6

13,295,813

5,962,709

16(636,543)

767,90716
17
26

6,630,586
56,204,404(189,528,396)
159,351,036

2,322,138
23,098,760
5,621,220
113,666,947

24-25
25

(54,272,970)
116,250,373(5,161,005)
6,626,884(23,185,474)
26,285,194-

24(12,962,574)(4,894,865)

24(5,031,831)
2,299,027,021(528,369)
883,092,012(545,980,745)(462,906,646)(289,211,955)(129,770,893)(201,160,690)
380,004,089(195,244,175)
48,758,422

55,302,397
1,524,285,426

47,355,170
364,978,581

26
16
17

(318,886,664)(637,112)(6,952,982)
1,197,808,668(134,368,245)(1,023,518)(4,196,898)
225,389,920

12, 13(590,603,455)(233,865,570)

12, 2411, 24

22,580,640
7,840,507(13,620,451)(573,802,759)

5,298,011
2,028,626
10,285,773(216,253,160)

19(322,959,240)(124,476,911)
387,461,565(13,354,421)
39,145,003(34,184,004)(225,320,400)(16,729,357)
303,283,425(4,139,836)
23,185,474
80,279,306

589,821,905

89,416,066

553,884,272
1,143,706,177

464,468,206
553,884,272

Changes in working capital- Adjustments Related to Increase in Inventories- Adjustments Related to Increase in Trade Receivables- Adjustments Related to Increase in Other Receivablesfrom Operating Activities- Adjustments Related to Decrease in Trade Payables- Adjustments Related to Decrease in Other Payablesfrom Operating Activities
Net Cash Flows Generated from Operating Activities
Taxes Paid/Returns
Legal Claims Paid
Employee Benefits Paid
B. Cash Flows from Investing Activities
Cash Outflows from Purchases of Property, Plant and Equipment
and Intangible Assets
Cash Inflows from Sales of Property, Plant and Equipment
and Intangible Assets
Cash Inflows from Sales of Investment Properties
Other cash inflows/outflows
C. Cash Flows from Financing Activities
Dividend Paid
Interest Paid
Cash Inflows / (Outflows) from Borrowings, net
Cash Outflows from Repayment of Lease Liabilities
Interest Received28
28

NET INCREASE IN CASH AND CASH EQUIVALENTS BEFORE THE
EFFECTS OF FOREIGN CURRENCY TRANSLATION DIFFERENCES (A+B+C)
D. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

33

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D)

33

The accompanying notes from an integral part of these consolidated financial statements.
6

CORPORATE
02. OURPROFILE

91,544,083

03.

121,645,274

AND
04. STRATEGYMANAGEMENT

642,431,762

05. SUSTAINABILITYMANAGEMENT

2,086,615,970

Notes

ECONOMIC
06. OURPERFORMANCE- Adjustments Related to Gain on Disposal of Investment Properties

Prior Period
1 January31 December
2021

SOCIAL
07. OURPERFORMANCE

A. Cash Flows from Operating Activities
Profit for the Period
Adjustments Related to Reconciliation of Net Profit for the Period
Adjustments Related to Depreciation and Amortisation
Adjustments Related to Impairment (Reversal)- Adjustments Related to Impairment in Receivables
Adjustments Related to Provisions- Adjustments Related to Legal Claims- Adjustments Related to (Reversal of) Provisions Allocated Within the
Framework of Sectoral Requirements- Adjustments Related to Provision for Employee Benefits
Adjustments Related to Tax Income / Expense
Adjustments Related to Unrealized Foreign Currency Translation Differences
Adjustments Related to Tax (Income) and Expense- Adjustments Related to Interest Income- Adjustments Related to Interest Expense- Deferred Financing Expense from Forward Purchases- Unearned Finance Income from Forward Sales
Gain on Disposal of Non-Current Assets- Adjustments Related to Gain on Disposal of Property, Plant and Equipment

Current Period
1 January31 December
2022

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED CONSOLIDATED STATEMENT OF CASH FLOWSAS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES123

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

1.

ORGANIZATION AND OPERATIONS OF THE GROUP
Nuh Çimento Sanayi A.Ş. (“Nuh Çimento” or “the Company”) and its subsidiaries (“the Group”) are
joint stock and limited liability companies and their principal activities are production of various typesof cement, lime, ready-mixed concrete, gas concrete, electricity generation, transportation, real estateand marketable securities management, import, export service and trade sectors.
The head office address of the Company is Hacı Akif Mah. D-100 Karayolu Cad. No:92 Körfez /Kocaeli.
The Company is registered with the Capital Markets Board (“CMB”) and 16.21% of its shares areopen to the public. It has been traded on Borsa Istanbul (“BIST”) since 24 February 2000.
The details of the reporting according to the fields of activity and geographical sections related to theongoing activities of the Group are included in the Note 4.
As of 31 December 2022 and 2021, the average number of personnel of the Group is categorized asfollows:
1 January31 December 2022
1,024
322
1,346

Blue collar
White collar

1 January31 December 2021
932
316
1,248

The immediate parent and ultimate controlling party of the Group are Nuh Ticaret Sanayi ve Ticaret
A.Ş. and Partas Tekstil İnşaat Sanayi ve Ticaret A.Ş., respectively.
Shareholders
Nuh Ticaret Sanayi ve Ticaret A.Ş.
Partaş Tekstil İnşaat Sanayi ve Ticaret A.Ş.
ListedOther (*)
Total Shares(*)

31 December
2022

31 December
2021%44,13%16,32%16,21%23,34%44,13%16,32%16,18%23,37100%

100%

Represents total of shares less than 5%.

Approval of the Consolidated Financial Statements:
The consolidated financial statements have been approved for issue by the Board of Directors 31
January 2023. General Assembly has power to change the Group’s consolidated financial statements.

7
124 Nuh Çimento 2022 Integrated Annual ReportORGANIZATION AND OPERATIONS OF THE GROUP (cont’d)Subsidiaries:
The details of the Company’s subsidiaries and joint ventures are as follows:
Nuh Beton A.Ş. (“Nuh Beton”)
Nuh Beton started to produce ready-mixed concrete in 1987 at the Bostancı facility as a separate entity
of Nuh Çimento parallel to the developments in concrete industry, new facilities were established in
Hereke, Büyükbakkalköy, İkitelli, Büyükçekmece and İzmit.
In order to get better organized in the rapid developing ready-mixed concrete sector, the facilities
separated from Nuh Çimento and Nuh Beton A.Ş. (Nuh Beton) was established in 1995. Besides,
approximately 87 thousand m² shopping center and hotel constructions on the land owned by Nuh
Beton in Bostancı were finalized in and carried to financial statements as investment property.

Nuh Gayrimenkul was established in 1997 for the purpose of ensuring efficient use of the real estate
within the structure of the Group companies, of production and project preparation operations in theconstruction sector.
Çim-Nak Taşımacılık Limited Şirketi (Çim-Nak)
It was established in 1979 to provide maritime and land transportation services, mine ores
management and sea transportation services.
Çim-Nak still continues its activities by providing services to its main partner, Nuh Çimento, for mineore management and sea transportation.
Navig Holding Trade B.V. (Navig)
Navig was established in 1997 in Netherlands with the 100% participation of Nuh Çimento to assist
the export-import operations of the Group’s firms, finding long-term external credits for investments
and making securities investments. The activities of the Company are not at a significant level for theGroup.
Nuh Agro Tarım A.Ş. (Nuh Agro)It was established in 2019 to operate in the medical, medicinal and aromatic plants sector. Its capital is
TL 100,000. The Company has a total of 85% share in the subsidiary. The activities of the Company
are not at a significant level for the Group.
8

05. SUSTAINABILITYMANAGEMENT

Nuh Gayrimenkul İnşaat A.Ş. (Nuh Gayrimenkul)

ECONOMIC
06. OURPERFORMANCE

Nuh Yapı completed the construction of aerated concrete block production facility, in 2008 with anannual capacity of 400,000 m³, which was started in 2007. Besides, the limestone production facility
whose investment started in 2007 was completed at the end of 2010 with an annual quicklime
production capacity of 212,000 tons.

SOCIAL
07. OURPERFORMANCE

The legal establishment of Nuh Yapı was realized in 1995. In 1998, the Company started its operations
with two facilities stated above and machine factory which was a part of Nuh Çimento and mainly
serves the Nuh group companies in the production of equipment and projects for maintenance, repair
and investments.

OUR ENVIRONMENTALPERFORMANCE

A lime factory with a capacity of 160,000 m3/year within the body of Nuh Çimento in 1984, and a gas
concrete brick plant with a capacity of 160,000 tons/year in 1996, became operational.

AND
04. STRATEGYMANAGEMENT

Nuh Yapı Ürünleri A.Ş. (“Nuh Yapı”)

09. ANNEXES 08.

1.

CORPORATE
02. OURPROFILE(Amounts expressed in Turkish Lira (TL))

03.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES125

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

1.

ORGANIZATION AND OPERATIONS OF THE GROUP (cont’d)
Joint ventures and associates
Oyak Çimento Fabrikaları A.Ş. (“Oyak Çimento”)
The increase in value of 4.45% of Oyak Çimento shares owned by the Group as TL 658,243,255
between 1 January 2022 and 31 December 2022 has been accounted for under the earnings frominvestments in equity instruments in the statement of other comprehensive income. As of 31
December 2022, the value of Oyak Çimento in financial assets is TL 1,110,273,178.

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

2.1

Basis of Presentation
Statement of Compliance with TFRS
The accompanying consolidated financial statements are prepared in accordance with the requirementsof Capital Markets Board (“CMB”) Communiqué Serial II, No: 14.1 “Basis of Financial Reporting in
Capital Markets”, which was published in the Official Gazette No:28676 on 13 June 2013. The
accompanying financial statements are prepared based on the Turkish Financial Reporting Standards
and interpretations (“TFRS”) that have been put into effect by the Public Oversight Accounting and
Auditing Standards Authority (“POA”) under Article 5 of the Communiqué.
In addition, the financial statements have been prepared in accordance with “Announcement on TFRS
Taxonomy” published by POA on 15 April 2019 and with the “Examples of Financial Statements andthe User Guide” issued by CMB.
The Group maintains its accounting records and prepares its consolidated financial statements with theprinciples and requirements of the CMB, the Company and the Company’s subsidiaries and associates
operating in Turkey keep their legal records according to the Turkish Commercial Code (“TCC”), tax
legislation and the Uniform Chart of Accounts issued by the Ministry of Finance (“Ministry of
Finance”) of Turkish Republic. Subsidiaries and associates operating in foreign countries prepare theirstatutory financial statements in accordance with the laws and regulations applicable in the countries
in which they operate. The consolidated financial statements are prepared by reflecting the necessary
adjustments and classifications to the statutory records in order to make an accurate presentation inaccordance with TFRS. The consolidated financial statements are prepared on the basis of historicalcost, except for financial assets recognized at fair value and derivative financial instruments carried atfair value. In determining the historical cost, the fair value of the amount paid for the assets isgenerally taken as basis.
Going concern
The consolidated financial statements have been prepared on the basis of going concern.
Currency Used
The individual financial statements of each Group entity are presented in the currency of the primaryeconomic environment in which the entity operates (its functional currency). The results and financial
position of each entity are expressed in TL, which is the functional currency of the Company, and thepresentation currency for the consolidated financial statements.

9126 Nuh Çimento 2022 Integrated Annual Report

POA made an announcement on 20 January 2022 regarding the application of TAS 29 “Financial
Reporting in Hyperinflationary Economies” (“TAS 29”) for entities adopting Turkish Financial
Reporting Standards (“TFRS”) for the year ended 31 December 2021. The announcement stated that,
entities that apply TFRS should not adjust their financial statements in accordance with TAS 29 for theyear ended 31 December 2021. As of the date of this report, POA has not made any further
announcements regarding the scope and application of TAS 29. As a result, no inflation adjustment
was made to the accompanying consolidated financial statements as of 31 December 2022 inaccordance with TAS 29.
Comparative Information and Restatement of Prior Period Consolidated Financial Statements
The financial statements of the Group include comparative financial information to enable thedetermination of the financial position and performance trends. In order to comply with thepresentation of the current period financial statements, comparative information is reclassed, andsignificant changes are disclosed if necessary.
Periodicity
The Group's activities are increasing in spring and summer, when construction demand is rising, andthe construction industry is reviving.
Basis of consolidation
The details of the Company and its subsidiaries as of 31 December 2022 and 2021 are as follows:
Share (%)
Subsidiaries
Nuh Beton A.Ş.
Nuh Yapı Ürünleri A.Ş.
Çim-Nak Taşımacılık Limited Şirketi
Nuh Gayrimenkul İnşaat A.Ş.
Navig Holding Trade B.V.
Nuh Agro Tarım A.Ş.

Location

Currency

31 December
2022

31 December
2021

TurkeyTurkeyTurkeyTurkeyNetherlandsa
Turkey

TL
TL
TL
TL
Euro
TL

100%
100%
99.99%
100%
100%
85%

100%
100%
99.99%
100%
100%
85%

All subsidiaries above are recognized in these consolidated financial statements using the fullconsolidation method.

10

CORPORATE
02. OURPROFILEIn accordance with the CMB's decision dated 17 March 2005 and numbered 11/367, for companies
operating in Turkey and preparing financial statements in accordance with Turkish Financial
Reporting Standards, the application of inflation accounting has been terminated as of 1 January 2005.
Accordingly, as of 1 January 2005, the Standard No. 29 “Financial Reporting in Hyperinflationary
Economies” (“TAS 29”) has not been applied.

03.

Restatement of financial statements during periods of high inflation

AND
04. STRATEGYMANAGEMENT

Basis of Presentation (cont’d)

05. SUSTAINABILITYMANAGEMENT

2.1

ECONOMIC
06. OURPERFORMANCEBASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

SOCIAL
07. OURPERFORMANCE2.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES127

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

2.1

Basis of Presentation (cont’d)Basis of Consolidation (cont’d)
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company and its subsidiaries. Control is achieved when the Company:•••

has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; andhas the ability to use its power to affect its returns.

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.
When the Company has less than a majority of the voting rights of an investee, it has power over theinvestee when the voting rights are sufficient to give it the practical ability to direct the relevant
activities of the investee unilaterally. The Company considers all relevant facts and circumstances inassessing whether or not the Company’s voting rights in an investee are sufficient to give it power,
including:••••the size of the Company’s holding of voting rights relative to the size and dispersion of holdingsof the other vote holders;potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; andany additional facts and circumstances that indicate that the Company has, or does not have, thecurrent ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases
when the Company loses control of the subsidiary. Income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statement of profit or loss and othercomprehensive income from the date of acquisition to the date of disposal.
Profit or loss and each component of other comprehensive income are attributed to the parent and to
the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the parent
and to the non-controlling interests even if this results in the non-controlling interests having a deficit
balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring theiraccounting policies into line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.

11
128 Nuh Çimento 2022 Integrated Annual ReportChanges in the Group's ownership interests in subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of theGroup's interests and the non-controlling interests are adjusted to reflect the changes in their relativeinterests in the subsidiaries. Any difference between the amount by which the non-controlling interests
are adjusted and the fair value of the consideration paid or received is recognized directly in equity
and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is
calculated as the difference between (i) the aggregate of the fair value of the consideration received
and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including
goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously
recognised in other comprehensive income in relation to that subsidiary are accounted for as if theGroup had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to
profit or loss or transferred to another category of equity as specified/permitted by applicable TAS).
The fair value of any investment retained in the former subsidiary at the date when control is lost isregarded as the fair value on initial recognition for subsequent accounting under TAS 39 “Financial
instruments: recognition and measurement”, when applicable, the cost on initial recognition of aninvestment in an associate or a joint venture.
Investments in associates and joint ventures:
An associate is an entity over which the Group has significant influence. Significant influence is thepower to participate in the financial and operating policy decisions of the investee but is not control orjoint control over those policies.
A partnership is a joint venture in which entities with joint control in an arrangement have rights to the
net assets in the joint arrangement. Joint control is based on the control contract on an economic
activity. This control is deemed to exist when the decisions of the relevant activities require the parties
sharing the control to agree with the unanimity of votes.
The results and assets and liabilities of associates or joint ventures are incorporated in these
consolidated financial statements using the equity method of accounting, except when the investment,
or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance withTFRS 5. Under the equity method, an investment in associate or a joint venture is initially recognizedin the consolidated statement of financial position at cost and adjusted thereafter to recognize theGroup’s share of the profit or loss and other comprehensive income of the associate or a joint venture.
When the Group's share of losses of an associate or a joint venture exceeds the Group's interest in thatassociate or a joint venture (which includes any long-term interests that, in substance, form part of theGroup's net investment in the associate or a joint venture), the Group discontinues recognizing its
share of further losses. Additional losses are recognized only to the extent that the Group has incurred
legal or constructive obligations or made payments on behalf of the associate or a joint venture
Profit and losses resulting from transactions between one of the Group companies and an affiliate of
the Group are eliminated in proportion to the Group's share in the relevant associate or joint venture.
12

CORPORATE
02. OURPROFILE

Changes in the Group’s ownership interests in existing subsidiaries

03.

Basis of Consolidation (cont’d)

AND
04. STRATEGYMANAGEMENT

Basis of Presentation (cont’d)

05. SUSTAINABILITYMANAGEMENT

2.1

ECONOMIC
06. OURPERFORMANCEBASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

SOCIAL
07. OURPERFORMANCE2.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES129

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

2.2

Changes in Accounting Policies
The Group has applied accounting standarts consistently with prior year. Significant changes in theaccounting policies and significant accounting errors are applied retrospectively and the financial
statements of the previous period are restated.

2.3

Changes in Accounting Estimates and Errors
The Group has applied its accounting policies consistently with the prior year. Significant changes in
the accounting policies and significant accounting errors are applied retrospectively and the financial
statements of the previous period are restated. If changes in accounting policies are for only one
period, changes are applied on the current year but if the changes affect the future periods, changes
are applied both on the current period and future periods prospectively. The Group has not made anychanges in the accounting policies in the current year, except for the effects of the changes in the new
and revised standards explained in Note 2.4.

2.4

New and Amended Turkish Accounting Standardsa)Amendments that are mandatorily effective from 2022

Amendments to TFRS 3
Amendments to TAS 16
Amendments to TAS 37
Annual Improvements to TFRS Standards
2018-2020
Amendments to TFRS 16

Reference to the Conceptual Framework
Property, Plant and Equipment – Proceeds before
Intended Use
Onerous Contracts – Cost of Fulfilling a Contract
Amendments to TFRS 1, TFRS 9 and TAS 41
COVID-19 Related Rent Concessions beyond 30
June 2021

Amendments to TFRS 3 Reference to the Conceptual Framework
The amendments update an outdated reference to the Conceptual Framework in TFRS 3 without
significantly changing the requirements in the standard.
The amendments are effective for annual periods beginning on or after 1 January 2022. Early
application is permitted if an entity also applies all other updated references (published together withthe updated Conceptual Framework) at the same time or earlier.

13
130 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

2.4

New and Amended Turkish Accounting Standards (cont’d)a)Amendments that are mandatorily effective from 2022 (cont’d)

Amendments to TAS 16 Property, Plant and Equipment - Proceeds before Intended Use

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

Amendments to TFRS 1 First time adoption of Turkish Financial Reporting Standards
The amendment permits a subsidiary that applies paragraph D16(a) of TFRS 1 to measure cumulativetranslation differences using the amounts reported by its parent, based on the parent’s date of transition
to TFRSs.
Amendments to TFRS 9 Financial Instruments
The amendment clarifies which fees an entity includes in assessing whether to derecognize a financial
liability. An entity includes only fees paid or received between the entity (the borrower) and thelender, including fees paid or received by either the entity or the lender on the other’s behalf.
Amendments to TAS 41 Agriculture
The amendment removes the requirement in paragraph 22 of TAS 41 for entities to exclude taxation
cash flows when measuring the fair value of a biological asset using a present value technique. This
will ensure consistency with the requirements in TFRS 13.

14

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENT

Annual Improvements to TFRS Standards 2018-2020 Cycle

ECONOMIC
06. OURPERFORMANCEThe amendments published today are effective for annual periods beginning on or after 1 January
2022. Early application is permitted.

SOCIAL
07. OURPERFORMANCEThe amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly
to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that
contract or an allocation of other costs that relate directly to fulfilling contracts.

OUR ENVIRONMENTALPERFORMANCE

Amendments to TAS 37 Onerous Contracts – Cost of Fulfilling a Contract

09. ANNEXES 08.

The amendments are effective for annual periods beginning on or after 1 January 2022. Early
application is permitted.

03.

The amendments prohibit deducting from the cost of an item of property, plant and equipment any
proceeds from selling items produced while bringing that asset to the location and condition necessary
for it to be capable of operating in the manner intended by management. Instead, an entity recognizes
the proceeds from selling such items, and the cost of producing those items, in profit or loss.

131

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

2.4

New and Amended Turkish Accounting Standards (cont’d)a)Amendments that are mandatorily effective from 2022 (cont’d)

The amendments to TFRS 1, TFRS 9, and TAS 41 are all effective for annual periods beginning on orafter 1 January 2022. Early application is permitted.
Amendments to TFRS 16 COVID-19 Related Rent Concessions beyond 30 June 2021
Public Oversight Accounting and Auditing Standards Authority (“POA”) has published Amendments
to TFRS 16 COVID-19 Related Rent Concessions beyond 30 June 2021 that extends, by one year, theJune 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19
related rent concession is a lease modification.
On issuance, the practical expedient was limited to rent concessions for which any reduction in lease
payments affects only payments originally due on or before 30 June 2021. Since lessors continue togrant COVID-19 related rent concessions to lessees and since the effects of the COVID-19 pandemic
are ongoing and significant, the POA decided to extend the time period over which the practical
expedient is available for use.
The new amendment is effective for lessees for annual reporting periods beginning on or after 1 April
2021. Earlier application is permitted.
The Group management assessed that the adoption of these amendments that are effective from 2022
do not have any effect on the Group’s consolidated financial statements.
b) New and revised TFRSs in issue but not yet effective
The Group has not yet adopted the following standards and amendments and interpretations to theexisting standards:
TFRS 17
Amendments to TAS 1
Amendments to TFRS 4
Amendments to TAS 1
Amendments to TAS 8
Amendments to TAS 12
Amendments to TFRS 17
Amendments to TFRS 16
Amendments to TAS 1

Insurance Contracts
Classification of Liabilities as Current or NonCurrent
Extension of the Temporary Exemption from
Applying TFRS 9Disclosure of Accounting Policies
Definition of Accounting Estimates
Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
Initial Application of TFRS 17 and TFRS 9 —Comparative Information (Amendment to TFRS
17)
Lease Liability in a Sale and Leaseback
Non-current Liabilities with Covenants

15
132 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

2.4

New and Amended Turkish Accounting Standards (cont’d)b)

New and revised TFRSs in issue but not yet effective (cont’d)

TFRS 17 Insurance Contracts

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

Amendments to TAS 1 Disclosure of Accounting Policies
The amendments require that an entity discloses its material accounting policies, instead of its
significant accounting policies.
Amendments to TAS 1 are effective for annual reporting periods beginning on or after 1 January 2023
and earlier application is permitted.
Amendments to TAS 8 Definition of Accounting Estimates
With this amendment, the definition of “a change in accounting estimates” has been replaced with thedefinition of “an accounting estimate”, sample and explanatory paragraphs regarding estimates havebeen added, and the differences between application of an estimate prospectively and correction oferrors retrospectively have been clarified.
Amendments to TAS 8 are effective for annual reporting periods beginning on or after 1 January 2023
and earlier application is permitted.

16AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENT

The amendment changes the fixed expiry date for the temporary exemption in TFRS 4 Insurance
Contracts from applying TFRS 9, so that entities would be required to apply TFRS 9 for annual
periods beginning on or after 1 January 2023 with the deferral of the effective date of TFRS 17.

ECONOMIC
06. OURPERFORMANCE

Amendments to TFRS 4 Extension of the Temporary Exemption from Applying TFRS 9SOCIAL
07. OURPERFORMANCE

Amendments to TAS 1 are effective for annual reporting periods beginning on or after 1 January 2023
and earlier application is permitted.

OUR ENVIRONMENTALPERFORMANCEThe amendments aim to promote consistency in applying the requirements by helping companies
determine whether, in the statement of financial position, debt and other liabilities with an uncertain
settlement date should be classified as current (due or potentially due to be settled within one year) or
non-current.

09. ANNEXES 08.

Amendments to TAS 1 Classification of Liabilities as Current or Non-Current

03.

TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides amore uniform measurement and presentation approach for all insurance contracts. These requirements
are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts.
TFRS 17 supersedes TFRS 4 Insurance Contracts as of 1 January 2023.

133

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

2.4

New and Amended Turkish Accounting Standards (cont’d)b)

New and revised TFRSs in issue but not yet effective (cont’d)

Amendments to TAS 12 Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
The amendments clarify that the initial recognition exemption does not apply to transactions in whichequal amounts of deductible and taxable temporary differences arise on initial recognition.
Amendments to TAS 12 are effective for annual reporting periods beginning on or after 1 January2023 and earlier application is permitted.
Amendments to TFRS 17 Insurance Contracts and Initial Application of TFRS 17 and TFRS 9 —Comparative Information
Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the
results and to facilitate the initial application.
The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present
comparative information about a financial asset as if the classification and measurement requirementsof TFRS 9 had been applied to that financial asset before.
Amendments are effective with the first application of TFRS 17.
Amendments to TFRS 16 Lease Liability in a Sale and Leaseback
Amendments to TFRS 16 clarify how a seller-lessee subsequently measures sale and leaseback
transactions that satisfy the requirements in TFRS 15 to be accounted for as a sale.
Amendments are effective from annual reporting periods beginning on or after 1 January 2024.
Amendments to TAS 1 Non-current Liabilities with Covenants
Amendments to TAS 1 clarify how conditions with which an entity must comply within twelve
months after the reporting period affect the classification of a liability.
Amendments are effective from annual reporting periods beginning on or after 1 January 2024.
The Group evaluates the effects of these standards, amendments and improvements on the
consolidated financial position and performance of the Group.

17
134 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies
Related Parties
A related party is a person or entity that is related to the entity that is preparing its financial statements.

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

Revenue
Revenue is recognized in the consolidated financial statements at the transaction price. The transaction
fee is the amount that the entity expects to receive in return for transferring the goods or services thatit has committed to the customer, except for the amounts collected on behalf of third parties. When thecontrol of the goods or services is transferred to the customers, the Group reflects the relevant amountas revenue in the consolidated financial statements.
In accordance with TFRS 15 “Customer Contract Revenue Standard”, effective from 1 January 2018,
the Group recognizes revenue in the consolidated financial statements in the five-step model belowt.

18

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCE

A related party transaction is a transfer of resources, services or obligations between a reporting entityand a related party, regardless of whether a price is charged.

SOCIAL
07. OURPERFORMANCE(i) The entity and the reporting entity are members of the same group (which means that eachparent, subsidiary and fellow subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint ventureof a member of a group of which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third
entity.
(v) The entity is a post-employment benefit plan for the benefit of employees of either thereporting entity or an entity related to the reporting entity. If the reporting entity is itself such aplan, the sponsoring employers are also related to the reporting entity.
(vi) The entity is controlled or jointly controlled by a person identified in (a).
(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the
key management personnel of the entity (or of a parent of the entity).

OUR ENVIRONMENTALPERFORMANCE(b) An entity is related to a reporting entity if any of the following conditions applies:

09. ANNEXES 08.

(i) has control or joint control over the reporting entity;(ii) has significant influence over the reporting entity; or(iii) is a member of the key management personnel of the reporting entity or of a parent of thereporting entity.

03.

a) A person or a close member of that person’s family is related to a reporting entity if that person:

135

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)
Revenue (cont’d)
•
•
•
•
•

Identification of contracts with customers
Identification of performance obligations in contracts
Determining the transaction price in contracts
Distribution of transaction fee to performance obligations
Revenue recognition

The Group evaluates the cement and clinker it commits in each contract with the customers anddetermines each commitment to transfer the goods or services in question as a separate performanceobligation. For each performance obligation, it is determined at the beginning of the contract that theperformance obligation will be fulfilled in time or at a certain time. If the Group transfers the control
of a good or service over time and thus fulfills the performance obligations related to the related sales
over time, the Group measures the proceeds on the fulfillment of the performance obligations
completely and takes the proceeds to the financial statements. The Company, as it fulfills or fulfills its
performance obligation by transferring a committed product or service to its customer, records thetransaction price corresponding to this performance obligation as revenue in its financial statements.
The goods or services are transferred when the goods or services are received (as soon as it received)by the customers. The Group evaluates the transfer of control of the goods or services sold to thecustomer:ownership of the Group's right to collect goods or services,
the ownership of the legal property of the customer,transfer of the possession of goods or services,
the ownership of significant risks and rewards arising from the ownership of the goods orservices,• takes into account the conditions for the customer to accept the goods or services.

•
•
•
•

Rental income:Rental income from investment properties is recognized on a straight-line basis over the term of therelevant lease.
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs including some of the fixedand variable general production expenses are valued according to the method appropriate to the classof the inventories and mostly according to the weighted average cost method. Net realizable value
represents the estimated selling price less all estimated costs of completion and costs necessary to
make the sale. When the net realizable value of inventory is less than cost, the inventory is written
down to the net realizable value and the expense is included in statement of profit or loss in the period
the write-down or loss occurred. When the circumstances that previously caused inventories to be
written down below cost no longer exist or when there is clear evidence of an increase in net realizablevalue because of changed economic circumstances, the amount of the write-down is reversed. The
reversal amount is limited to the amount of the original write-down.

19
136 Nuh Çimento 2022 Integrated Annual ReportProperties in the course of construction for production, supply or administrative purposes are carried atcost, less any recognized impairment loss. Cost includes professional fees and, for qualifying assets,borrowing costs capitalized in accordance with the Group’s accounting policy. Such properties areclassified to the appropriate categories of property, plant and equipment when completed and ready for
intended use. Depreciation of these assets, on the same basis as other property assets, commences
when the assets are ready for their intended use.
Except for land and construction in progress,depreciation is recognized so as to write off the cost or
valuation of assets, other than freehold land and properties under construction, less their residual
values over their useful lives, using the straight-line method. The estimated useful lives, residual
values and depreciation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on thedisposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
Intangible Assets
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost lessaccumulated amortization and accumulated impairment losses. Amortization is recognized on astraight-line basis over their estimated useful lives. The estimated useful life and amortization method
are reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired
separately are carried at cost less accumulated impairment losses.
Computer software
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire andbring to use the specific software. These costs are amortized over their estimated useful lives.
Costs associated with developing or maintaining computer software programmes are recognized as an
expense as incurred. Costs that are directly associated with the development of identifiable and unique
software products controlled by the Group, and that will probably generate economic benefits
exceeding costs beyond one year, are recognized as intangible assets. Costs include the softwaredevelopment employee costs and an appropriate portion of relevant overheads.

20

CORPORATE
02. OURPROFILE

Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated
impairment losses. Land is not depreciated and carried at cost less accumulated impairment.

03.

Property, Plant and Equipment

AND
04. STRATEGYMANAGEMENT

Summary of Significant Accounting Policies (cont’d)

05. SUSTAINABILITYMANAGEMENT

2.5

ECONOMIC
06. OURPERFORMANCEBASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

SOCIAL
07. OURPERFORMANCE2.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES137

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Intangible Assets (cont’d)Derecognition of intangible assets
An intangible asset is derecognized on disposal, or when no future economic benefits are expectedfrom use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as thedifference between the net disposal proceeds and the carrying amount of the asset, are recognized in
profit or loss when the asset is derecognized.
Impairment of Property, Plant and Equipment and Intangible Assets Other Than Goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its property, plant andequipment and intangible assets to determine whether there is any indication that those assets havesuffered an impairment loss. If any such indication exists, the recoverable amount of the asset isestimated in order to determine the extent of the impairment loss (if any). When it is not possible toestimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs. When a reasonable and consistent basis ofallocation can be identified, corporate assets are also allocated to individual cash-generating units, orotherwise they are allocated to the smallest group of cash-generating units for which a reasonable andconsistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested
for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount ratethat reflects current market assessments of the time value of money and the risks specific to the asset
for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognized immediately in profit or loss unless the relevant asset iscarried at a revalued amount.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an
impairment loss is recognized immediately in profit or loss unless the relevant asset is carried at arevalued amount.

21
138 Nuh Çimento 2022 Integrated Annual Report

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for theirintended use or sale.
All other borrowing costs are recognized in the statement of profit or loss in the period in which they
are incurred.

CORPORATE
02. OURPROFILE(Amounts expressed in Turkish Lira (TL))

03.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIESClassification of financial assets
Financial assets that meet the following conditions are measured subsequently at amortised cost:••

the financial asset is held within a business model whose objective is to hold financial assets
in order to collect contractual cash flows; andthe contractual terms of the financial asset give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.

22

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCEThe Group classifies its financial assets as (a) Business model used for managing financial assets, (b)financial assets subsequently measured at amortised cost, at fair value through other comprehensive
income or at fair value through profit or loss based on the characteristics of contractual cash flows.
The Company reclassifies all financial assets effected from the change in the business model it uses
for the management of financial assets. The reclassification of financial assets is applied prospectively
from the reclassification date. In such cases, no adjustment is made to gains, losses (including any
gains or losses of impairment) or interest previously recognized in the financial statements.

SOCIAL
07. OURPERFORMANCEAll regular way purchases or sales of financial assets are recognised and derecognised on a trade datebasis.

OUR ENVIRONMENTALPERFORMANCE

Financial assets

09. ANNEXES 08.

Financial assets and financial liabilities are recognised in the Group’s statement of financial position
when the Group becomes a party to the contractual provisions of the instrument. Financial assets andfinancial liabilities are initially measured at fair value. Transaction costs that are directly attributable tothe acquisition or issue of financial assets and financial liabilities (other than financial assets andfinancial liabilities at fair value through profit or loss) are added to or deducted from the fair value ofthe financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial liabilities at fair value throughprofit or loss are recognised immediately in profit or loss.

AND
04. STRATEGYMANAGEMENT

Financial Instruments

139

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Financial Instruments (cont’d)Financial assets (cont’d)Classification of financial assets (cont’d)Financial assets that meet the following conditions are measured subsequently at fair value throughother comprehensive income (FVTOCI):••

the financial asset is held within a business model whose objective is achieved by bothcollecting contractual cash flows and selling the financial assets; andthe contractual terms of the financial asset give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.

By default, all other financial assets are measured subsequently at fair value through profit or loss
(FVTPL).
Despite the foregoing, the Group may make the following irrevocable election/designation at initialrecognition of a financial asset; the Group may irrevocably elect to present subsequent changes in fairvalue of an equity investment in other comprehensive income if certain criteria are met.
(i) Amortised cost and effective interest method
Interest income on financial assets carried at amortized cost is calculated using the effective interest
method. The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. This income is calculated byapplying the effective interest rate to the gross carrying amount of the financial asset:(a) Credit-impaired financial assets when purchased or generated. For such financial assets, theCompany applies the effective interest rate on the amortized cost of a financial asset based on the loan
from the date of the recognition in the financial statements.
(b) Non-financial assets that are impaired at the time of acquisition or generation but subsequently
become a financial asset that has been impaired. For such financial assets, the Company applies theeffective interest rate to the amortized cost of the asset in the subsequent reporting periods.
Interest income is recognised using the effective interest method for debt instruments measured
subsequently at amortised cost and at FVTOCI.
Interest income is recognised in profit or loss and is included in the “finance income – interest
income” line item (Note 25).

23
140 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Financial Instruments (cont’d)Financial assets (cont’d)

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIESClassification of financial assets (cont’d)

On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument
basis) to designate investments in equity instruments as at FVTOCI.
A financial asset is held for trading if:•

it has been acquired principally for the purpose of selling it in the near term; oron initial recognition it is part of a portfolio of identified financial instruments that the Groupmanages together and has evidence of a recent actual pattern of short-term profit-taking; or
it is a derivative (except for a derivative that is a financial guarantee contract or a designatedand effective hedging instrument).

AND
04. STRATEGYMANAGEMENTOUR ENVIRONMENTALPERFORMANCE

Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction
costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fairvalue recognised in other comprehensive income and accumulated in the revaluation reserve. The
cumulative gain or loss is not to be reclassified to profit or loss on disposal of the equity investments,
instead, it is transferred to retained earnings.

24

09. ANNEXES 08.

••

05. SUSTAINABILITYMANAGEMENT(iii) Equity instruments designated as at FVTOCIECONOMIC
06. OURPERFORMANCE

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fairvalue gains or losses recognised in profit or loss to the extent they are not part of a designated hedging
relationship.

SOCIAL
07. OURPERFORMANCE

Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI aremeasured at FVTPL.

03.

(ii) Financial assets at FVTPL141

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Financial Instruments (cont’d)Financial assets (cont’d)Foreign exchange gains and losses
The carrying amount of financial assets that are denominated in a foreign currency is determined inthat foreign currency and translated at the spot rate at the end of each reporting period. Specifically,••••for financial assets measured at amortised cost that are not part of a designated hedging
relationship, exchange differences are recognised in profit or loss;
for debt instruments measured at FVTOCI that are not part of a designated hedging
relationship, exchange differences on the amortised cost of the debt instrument are recognised
in profit or loss. Other exchange differences are recognised in other comprehensive income;for financial assets measured at FVTPL that are not part of a designated hedging relationship,exchange differences are recognised in profit or loss; andfor equity instruments measured at FVTOCI, exchange differences are recognised in othercomprehensive income.

Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on investments in debt instrumentsthat are measured at amortised cost or at FVTOCI, lease receivables, trade receivables and contract
assets, as well as financial guarantee contracts. The amount of expected credit losses is updated at eachreporting date to reflect changes in credit risk since initial recognition of the respective financial
instrument.
The Group utilizes a simplified approach for trade receivables, contract assets and lease receivables
that does not have significant financing component and calculates the allowance for impairment
against the lifetime ECL of the related financial assets.
For all other financial instruments, the Group recognises lifetime ECL when there has been asignificant increase in credit risk since initial recognition. However, if the credit risk on the financial
instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month ECL.
Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given
default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessmentof the probability of default and loss given default is based on historical data adjusted by forwardlooking information as described above. As for the exposure at default, for financial assets, this isrepresented by the assets’ gross carrying amount at the reporting date.

25
142 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Financial Instruments (cont’d)Financial assets (cont’d)

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

Financial liabilities
Financial liabilities are classified as at FVTPL on initial recognition. On initial recognition of
liabilities other than those that are recognised at FVTPL, transaction costs directly attributable to theacquisition or issuance thereof are also recognised in the fair value.
A financial liability is subsequently classified at amortized cost except:

26

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCE(a) Financial liabilities at FVTPL: These liabilities including derivative instruments are subsequently
measured at fair value.

AND
04. STRATEGYMANAGEMENT

On derecognition of a financial asset measured at amortised cost, the difference between the asset's
carrying amount and the sum of the consideration received and receivable is recognised in profit orloss. In addition, on derecognition of an investment in a debt instrument classified as at FVTOCI, thecumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified
to profit or loss. In contrast, on derecognition of an investment in equity instrument which the Grouphas elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously
accumulated in the investments revaluation reserve is not reclassified to profit or loss but is transferred
directly to retained earnings.

05. SUSTAINABILITYMANAGEMENTThe Group derecognises a financial asset only when the contractual rights to the cash flows from theasset expire, or when it transfers the financial asset and substantially all the risks and rewards ofownership of the asset to another entity.

ECONOMIC
06. OURPERFORMANCE

Derecognition of financial assets

SOCIAL
07. OURPERFORMANCEThe expected credit loss of financial assets is the present value of the difference between the Group's
contractually realized cash flows and all the cash flows (all cash deficits) that the Group expects toreceive, calculated over the initial effective interest rate (or credit-adjusted effective interest rate for
credit-impaired financial assets when purchased or created).

03.

Measurement and recognition of expected credit losses (cont’d)143

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Financial Instruments (cont’d)Financial liabilities (cont’d)(b) Financial liabilities arising if the transfer of the financial asset does not meet the conditions ofderecognition from the financial statements or if the ongoing relationship approach is applied: When
the Group continues to present an asset based on the ongoing relationship approach, a liability inrelation to this is also recognised in the financial statements. The transferred asset and the related
liability are measured to reflect the rights and liabilities that the Company continues to hold. The
transferred liability is measured in the same manner as the net book value of the transferred asset.
(c) A contingent consideration recognized in the financial statements by the entity acquired in abusiness combination where TFRS 3 is applied: After initial recognition, the related contingent
consideration is measured as at FVTPL.
The entity does not reclassify any financial liability.
Derecognition of financial liabilities
The Group derecognises financial liabilities only when, the Group’s obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
Derivative financial instruments
The Group enters into a variety of derivative financial instruments to manage its exposure to interest
rate and foreign exchange rate risks, including foreign exchange forward contracts, options andinterest rate swaps. Further details of derivative financial instruments are disclosed in Note 29.
Derivatives are recognised initially at fair value at the date a derivative contract is entered into and aresubsequently remeasured to their fair value at each reporting date. The resulting gain or loss isrecognised in profit or loss immediately unless the derivative is designated and effective as a hedging
instrument.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with anegative fair value is recognised as a financial liability. Derivatives are not offset in the financial
statements unless the Group has both legal right and intention to offset. A derivative is presented as anon‑current asset or a non‑current liability if the remaining maturity of the instrument is more than 12
months and it is not expected to be realised or settled within 12 months. Other derivatives arepresented as current assets or current liabilities.

27
144 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date ofacquisition of the business less accumulated impairment losses, if any.

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIESIn preparing the financial statements of the individual entities, transactions in currencies other than TL(foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At
the end of each reporting period, monetary items denominated in foreign currencies are retranslated at
the rates prevailing at that date. Non-monetary items carried at fair value that are denominated inforeign currencies are retranslated into TL at the rates prevailing at the date when the fair value wasdetermined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
not retranslated.
Exchange differences are recognized in profit or loss in the period in which they arise except for:• Exchange differences on foreign currency borrowings relating to assets under construction for•

future productive use, which are included in the cost of those assets where they are regarded as
an adjustment to interest costs on those foreign currency borrowings;
Exchange differences on monetary items receivable from or payable to a foreign operation forwhich settlement is neither planned nor likely to occur, which form part of the net investment
in a foreign operation, and which are recognized in the foreign currency translation reserveand recognized in profit or loss on disposal of the net investment.

28

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENT

The individual financial statements of each Group entity are presented in the currency of the primaryeconomic environment in which the entity operates (its functional currency). The results and financial
position of each entity are expressed in TL, which is the functional currency of the Company, and thepresentation currency for the consolidated financial statements.

ECONOMIC
06. OURPERFORMANCE

Foreign Currency Transactions and Balances

SOCIAL
07. OURPERFORMANCE

Effect of Exchange Differences

OUR ENVIRONMENTALPERFORMANCE

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in thedetermination of the profit/loss on disposal.

09. ANNEXES 08.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or
more frequently when there is an indication that the unit may be impaired. If the recoverable amountof the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit
pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill isrecognized directly in the consolidated statement of profit or loss. An impairment loss recognized for
goodwill is not reversed in subsequent periods.

03.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating
units (or groups of cash-generating units) that is expected to benefit from the synergies of the
combination.

145

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Effect of Exchange Differences (cont’d)Financial Statements of Subsidiaries, Joint Ventures and Associates Operating in Foreign Countries
Assets and liabilities of the Group’s foreign operations are presented in TL considering exchange rates
valid at the balance sheet date. Income and expenses are translated by using the average rate calculated
for the year when the transaction occurred unless significant fluctuation has happened in exchange
rates. In case of any significant fluctuation in exchange rates, the transaction is translated by using theexchange rate at the transaction date. The translation difference is accounted under comprehensive
income as a component of equity.
Earnings per Share
Earnings per share is calculated by dividing the net consolidated profit for the year attributable toordinary shareholders by the weighted average number of ordinary shares outstanding.
Companies in Turkey can increase their capital through “bonus shares” that they distribute to theirshareholders from retained earnings. Such “bonus share” distributions are treated as issued shares inearnings per share calculations. Accordingly, the weighted average number of shares used in thesecalculations has been calculated by taking into account the retrospective effects of the aforementioned
share distributions.
Events After the Reporting Period
Events after the reporting period are those events that occur between the balance sheet date and thedate when the financial statements are authorized for issue, even if they occur after an announcement
related with the profit for the year or public disclosure of other selected financial information.
The Group adjusts the amounts recognized in its financial statements if adjusting events occur after thebalance sheet date.
Provisions, Contingent Assets and Liabilities
Provisions are recognized when the Group has a present obligation as a result of a past event, it isprobable that the Group will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle thepresent obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle thepresent obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recoveredfrom a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.

29
146 Nuh Çimento 2022 Integrated Annual ReportInvestment Properties
Investment properties are properties held to earn rentals and/or for capital appreciation, including
property under construction for such purposes. Investment properties are carried at cost lessaccumulated depreciation and any accumulated impairment losses. The carrying amount includes thecost of replacing part of an existing investment property at the time that cost is incurred if therecognition criteria are met; and excludes the costs of day to day servicing of an investment property.
Depreciation is provided on investment property on a straight line basis. The depreciation period forinvestment property is 35-50 years.
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 disposal. Any gain or loss
arising on derecognition of the property is included in profit or loss in the period in which the property
is derecognized.
Taxation
Turkish Tax Legislation does not permit a parent company and its subsidiary to file a consolidated tax
return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial
statements, have been calculated on a separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit
before tax’ as reported in the consolidated statement of profit or loss because of items of income or
expense that are taxable or deductible in other years and it excludes items that are never taxable ordeductible. The Group’s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the balance sheet date.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets andliabilities in the financial statements and the corresponding tax bases which are used in thecomputation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are recognized for all deductible temporary differences tothe extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if thetemporary difference arises from goodwill or from the initial recognition (other than in a businesscombination) of other assets and liabilities in a transaction that affects neither the taxable profit nor theaccounting profit.
30

CORPORATE
02. OURPROFILE

Operating segments of the Group; based on the activities for which revenue is obtained and separate
financial information is available. In accordance to that, the financial information of companies
producing and trading cement, concrete and building materials are shown in the “Construction andbuilding materials” and the financial information of the companies producing and selling electricenergy are shown under “Energy”. In addition to these two areas of activity, construction andconstruction materials have been shown in the activity group because the assets of Nuh Group
companies, which are engaged in construction transportation and services, do not exceed 10% of thetotal assets of all operating segments of their assets.

03.

Reporting of Financial Information by Segments

AND
04. STRATEGYMANAGEMENT

Summary of Significant Accounting Policies (cont’d)

05. SUSTAINABILITYMANAGEMENT

2.5

ECONOMIC
06. OURPERFORMANCEBASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

SOCIAL
07. OURPERFORMANCE2.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES147

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.5

Summary of Significant Accounting Policies (cont’d)Taxation (cont’d)Deferred tax (cont’d)Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control
the reversal of the temporary difference and it is probable that the temporary difference will notreverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognized to the extent that it is probable that
there will be sufficient taxable profits against which to utilize the benefits of the temporary differences
and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have beenenacted or substantively enacted by the end of the reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would follow from the manner in which theGroup expects, at the reporting date, to recover or settle the carrying amount of its assets andliabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax are recognized as in profit or loss, except when they relate to items that arerecognized directly in equity, in which case, the current and deferred tax are also recognized directlyin equity.
Employee Benefits
Termination and retirement benefits:
Under Turkish law and union agreements, lump sum payments are made to employees retiring or
involuntarily leaving the Group. Such payments are considered as being part of defined retirement
benefit plan as per Turkish Accounting Standard No. 19 (revised) Employee Benefits (“TAS 19”).
The retirement benefit obligation recognized in the consolidated statement of financial position
represents the present value of the defined benefit obligation. The actuarial gains and losses arerecognized in other comprehensive income.

31
148 Nuh Çimento 2022 Integrated Annual Report2.5

Summary of Significant Accounting Policies (cont’d)
Employee Benefits (cont’d)
Provision for seniority incentive bonus
In accordance with the employee benefit named “Seniority Incentive Premiums” provided by theGroup to their employees having certain working seniority in order to enhance their loyalty to the jobs
and employers; the benefits are provided as follows; employees with 5 year work experience are paid
for their 30 days wage, those with 10 year work experience are paid for their 45 days of their gross
wage, those with 15 year work experience are paid for their 55 days wage, those with 20 year work
experience are paid for their 70 days wage, those with 25 and 30 year work experience are paid fortheir 75 days wage, for each level of payment with their actual working wage in the month they
complete the respective seniority level in the mentioned range.
To calculate the provision for seniority incentive payments, the Group has considered the duration
passed for each employee as of the balance sheet date since their job entrance dates and booked aliability for the discounted amount of the future payments as of the statement of financial position.
Profit-sharing and bonus plans
The Group recognizes a liability and an expense for bonuses and profit-sharing, based on a formulathat takes into consideration the profit attributable to the Company’s shareholders after certain
adjustments. The Group recognizes a provision where contractually obliged or where there is a pastpractice that has created a constructive obligation.

CORPORATE
02. OURPROFILEBASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)

03.

2.

AND
04. STRATEGYMANAGEMENT(Amounts expressed in Turkish Lira (TL))

05. SUSTAINABILITYMANAGEMENT

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

2.6

Significant Accounting Judgments, Estimates and Assumptions
Critical judgments in applying the Group’s accounting policies
In the process of applying the Group’s accounting policies, which are described in Note 2.5, management
has made the following judgments that have the most significant effect on the amounts recognized in the
consolidated financial statements (apart from those involving estimations, which are dealt with below):

32

SOCIAL
07. OURPERFORMANCE

Common shares are classified as equity. Dividends on common shares are recognized in equity in the
period in which they are approved and declared.

OUR ENVIRONMENTALPERFORMANCE

Share Capital and Dividends

09. ANNEXES 08.

In statement of cash flows, cash flows are classified according to operating, investing and financing
activities.

ECONOMIC
06. OURPERFORMANCEStatement of Cash Flows149

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

2.

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS(cont’d)2.6

Significant Accounting Judgments, Estimates and Assumptions (cont’d)
Critical judgments in applying the Group’s accounting policies (cont’d)Deferred Tax
The Group recognizes deferred tax assets and liabilities for temporary timing differences arising from thedifferences between the tax base legal financial statements and the financial statements prepared inaccordance with TFRS. Currently, there are deferred tax assets resulting from operating loss carryforwards and deductible temporary differences, all of which could reduce taxable income in the future.
Based on available evidence, both positive and negative, it is determined whether it is probable that all
or a portion of the deferred tax assets will be realized. The main factors which are considered include
future earnings potential; cumulative losses in recent years; history of loss carry-forwards and othertax assets expiring; the carry-forward period associated with the deferred tax assets; future reversals of
existing taxable temporary differences; tax-planning strategies that would, if necessary, be
implemented, and the nature of the income that can be used to realize the deferred tax asset. In light ofthe evidence obtained, the Group believes that taxable profit will be avaliable sufficient to utilize thesedeferred tax assets, therefore all of the deferred tax assets are recognized.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance
sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year, are discussed below.
Estimated impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment, in accordance with theaccounting policy stated in Note 2.5. The recoverable amounts of cash-generating units have been
determined based on value-in-use calculations. These calculations require the use of estimates in Note 15.
Useful lives of property, plant and equipment
The Group reviews the estimated useful lives of its property, plant and equipment at the end of eachreporting period. The Group takes into consideration the intended use of the property, plant andequipment, the advancement in technology related to the particular type of property, plant andequipment as well as other factors that may require management to extend or shorten the useful lives
and the assets’ related depreciation.
Legal provisions
While allocating provisions for the lawsuits, the possibilities of losing the lawsuits and liabilities thatwill arise in case of a loss have been evaluated by the Group management by taking the legal counsel
and expert opinions of the Company and its subsidiaries. The Group Management determines thelawsuit provisions based on the best estimates.
Employment termination benefits and seniority incentive bonus
Employment termination benefits and seniority incentive bonus are determined with actuarial
assumptions (discount rate, future salary increase and turnover rates) (Note 17).

33
150 Nuh Çimento 2022 Integrated Annual ReportAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

INTERESTS IN OTHER ENTITIESAssociatesÜnye Çimento, whose shares are traded on the BIST, has been merged with Oyak Çimento Fabrikaları
A.Ş. (“Oyak Çimento”) as a transfer and the merger transaction was realized on Borsa İstanbul on 21
May 2020.
The explanation regarding the realized transaction is explained in detail in Note 1.

EnergyConsolidation
adjustments

Total

Third party sales
Cross-departmental sales

7,699,912,599
616,312,614

39,167,795-(616,312,614)

7,739,080,394-

Net sales

8,316,225,213

39,167,795(616,312,614)

7,739,080,394

Cost of sales(6,186,356,615)(4,082,254)

616,312,614(5,574,126,255)

Gross Profit

2,129,868,598

35,085,541-

2,164,954,139

Total assets
Total liabilities

6,877,209,405
2,400,377,024

65,616,928--

6,942,826,333
2,400,377,024

Construction andconstruction
materials

EnergyConsolidation
adjustments

Total

Third party sales
Cross-departmental sales

2,480,037,014
199,587,297

13,192,018-(199,587,297)

2,493,229,032-

Net sales

2,679,624,311

13,192,018(199,587,297)

2,493,229,032

Cost of sales(1,991,937,920)(2,193,215)

199,587,297(1,794,543,838)

Gross Profit

687,686,391

10,998,803-

698,685,194

Total assets
Total liabilities

3,405,111,457
1,301,385,982

68,124,560--

3,473,236,017
1,301,385,982

1 January 31 December 2021

34

AND
04. STRATEGYMANAGEMENT

Construction andconstruction
materials

1 January 31 December 2022

05. SUSTAINABILITYMANAGEMENT

Information on the operating segments based on the Group's internal reporting is as follows:

ECONOMIC
06. OURPERFORMANCEThe revenue of the Group's reportable operating segments is mainly due to cement sales in foreign anddomestic markets.

SOCIAL
07. OURPERFORMANCEThe Group has implemented TFRS 8 as of 1 January 2009 and determined operating segments basedon internal management of reports used by governing body by the competent authority to makedecisions about the Group's operations.

03.

SEGMENT REPORTINGOUR ENVIRONMENTALPERFORMANCE

4.

09. ANNEXES 08.

3.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES151

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

5.

RELATED PARTY DISCLOSURES
Transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note.
Trade receivables from related parties arise mainly from sale transactions of cement and construction
supplies of the Company and its subsidiaries.
31 December 2022
Current
Trade
Receivables
SalesÇimpaş Çimento İnşaat Mlz. Paz. A.Ş. (1)Nuh Çimento Eğitim ve Sağlık Vakfı (2) (*)-

50,786
351,427-

402,21331 December 2021
CurrentÇimpaş Çimento İnşaat Mlz. Paz. A.Ş. (1)Nuh Çimento Eğitim ve Sağlık Vakfı (2) (*)

(1)
(2)
(*)

Trade
Receivables
17,800-Sales
50,470106,269

17,800156,739

Financial investments of the Company
Foundation which was established by the Company with the decision of Council of Ministers
Amounts consist of concrete sales that the Group has made to Nuh Çimento Eğitim ve Sağlık Vakfı.

Compensation of key management personnel:
Key management personnel consist of members of Board of Directors and Executive Board members.
The compensation of key management personnel includes salaries, bonus, health insurance andtransportation etc. The remuneration of key management personnel during the year were as follows:

Salaries and other short-term benefits

35
152 Nuh Çimento 2022 Integrated Annual Report

1 January31 December 2022

1 January31 December 2021

27,636,615

16,162,204

As of the reporting date, details of the Group’s trade receivables are as follows:
Short-term trade receivables
Trade receivables
Notes receivable
Trade receivables from related parties (Note: 21)
Discount of notes receivables (-)
Provision for doubtful receivables (-)
Trade receivables from third parties
Expected credit losses (-) effect of TFRS 9Long-term trade receivables
Notes receivable

31 December
2022

31 December
2021

567,939,230
412,598,035(9,719,879)(94,088,031)(82,805,729)(11,282,302)
876,729,355

348,445,779
167,226,685
17,800(3,092,995)(88,076,488)(83,984,936)(4,091,552)
424,520,781

31 December
2022

31 December
2021-

9,224,625-

9,224,625

Trade receivables are amounts due from customers for goods sold or services performed in theordinary course of business. They are generally due for settlement within 23 days and therefore are allclassified as current. The Group holds the trade receivables with the objective to collect the contractual
cash flows and therefore measures them subsequently at amortised cost using the effective interest
method (31 December 2021: 36 days).

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCE

As of 31 December 2022, trade receivables of TL 94,088,031 (31 December 2021: TL 88,076,488)
were impaired and provided for. Significant part of the individually impaired receivables consist ofwholesalers, which are in unexpectedly difficult economic situations and litigation process against theGroup and provisions by applying TFRS 9 within the scope of the Group’s general policy which
include varying dates depending on the delays.

03.

a) Trade Receivables:AND
04. STRATEGYMANAGEMENTTRADE RECEIVABLES AND PAYABLES

36

09. ANNEXES 08.

6.

05. SUSTAINABILITYMANAGEMENT(Amounts expressed in Turkish Lira (TL))

ECONOMIC
06. OURPERFORMANCE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES153

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

6.

TRADE RECEIVABLES AND PAYABLES (cont’d)a) Trade Receivables (cont’d):Movements on the Group provision for doubtful trade receivables are as follows:
Movement of provision for doubtful trade receivables

1 January 31 December 2022

1 January 31 December 2021

Opening balanceCollections or reversal of provision
Charge for the period (Note: 21)
Changes in TFRS 9 charge for the period (Note: 21)

88,076,488(7,284,270)
6,105,063
7,190,750

82,705,829(592,050)
5,823,470
139,239

Closing balance

94,088,031

88,076,488

As of 31 December 2022, there are no guarantees received from customers for doubtful tradereceivables (31 December 2021: None).
The aging of trade receivables are as follows:

Neither past due, nor doubtful receivables
Past due but not impaired receivables
Receivables that are impaired and for which provision is made31 December
2022

31 December
2021

729,982,520
146,746,835
94,088,031

392,829,509
31,691,272
88,076,488

970,817,386

512,597,269

As of 31 December 2022, trade receivables amounting to TL 146,746,836 (31 December 2021: TL
31,691,272) are overdue but are not considered as doubtful receivables due to the ability to collect.
Within the scope of the Company's general policy under the scope of TFRS 9 application, a provision
is made for varying rates based on delays. The maturity analysis of these receivables is as follows:

1 - 3 months
3 - 6 months
6 - 9 months
Over 9 months

31 December
2022

31 December
2021

134,730,963
2,473,998
493
9,541,381

24,051,034
1,787,006
4,401,221
1,452,011

146,746,835

31,691,272

The Group held guarantee letter amounting to TL 126,597,500 for the trade receivables that are past
due and not impaired (31 December 2021: TL 26,611,390).
The Group always measures the loss allowance for trade receivables at an amount equal to lifetime
ECL. The expected credit losses on trade receivables are estimated using a provision matrix byreference to past default experience of the debtor and an analysis of the debtor’s current financial
position, adjusted for factors that are specific to the debtors, general economic conditions of theindustry in which the debtors operate and an assessment of both the current as well as the forecast
direction of conditions at the reporting date.
In the current period, there has been no change in the estimates and assumptions of the Groupmanagement.
37
154 Nuh Çimento 2022 Integrated Annual ReportAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

TRADE RECEIVABLES AND PAYABLES (cont’d)b) Trade Payables:
The Group’s trade payables are as follows as of the balance sheet date:

268,528,158
1,460,419-

644,831,661

269,988,577

7.

OTHER RECEIVABLES AND PAYABLESa) Other Receivables
Short-term other receivables

31 December
2022

31 December
2021

Other short-term receivables (*)
Due from personnel
Deposits and quarantees given
Provision for doubtful receivables (-)

152,145,430
2,450,380
157,390(1,498,878)

53,967,078
1,221,459
1,086,193(1,498,879)

153,254,322

54,775,851(*) The portion amounting to TL 150,646,510 consists of receivables from the tax office.
Provision expenses related to other doubtful receivables are recognized under other expenses.

Long-term other receivables

31 December
2022

31 December
2021

Deposits and quarantees given

3,510,584

2,039,034

3,510,584

2,039,034

31 December
2022

31 December
2021

16,904,097
10,870,711
862,816

14,205,111
7,557,470
627,152

28,637,624

22,389,733b) Other Payables
Short-term other payables
Taxes and dues payable
Deposits and quarantees received
Other miscellaneous payables

38

05. SUSTAINABILITYMANAGEMENT

Explanation about the nature and level of risks related to trade receivables and payables are disclosed
in Note 29.

ECONOMIC
06. OURPERFORMANCEThe average maturity of credit sales of goods is 31 days. (31 December 2021: 25 days).

AND
04. STRATEGYMANAGEMENT

03.

644,524,867
5,236,008
231,791(5,161,005)

SOCIAL
07. OURPERFORMANCE

Expense accruals
Rediscount of notes payable (-)

31 December
2021

OUR ENVIRONMENTALPERFORMANCE

Trade payables
Notes payable

31 December
2022

09. ANNEXES 08.

6.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES155

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

8.

OTHER CURRENT AND NON-CURRENT ASSETS
Other current assets

31 December
2022

31 December
2021

Deferred VAT
Deductible VAT
Personnel advances

145,478,419
30,498,260
1,674,828

63,280,143
333,588

177,651,507

63,613,731

31 December
2022

31 December
2021

4,015,764

4,434,466

4,015,764

4,434,466

31 December
2022

31 December
2021

678,820,085
233,324,167
72,235,735
403,163(4,501,054)

343,350,965
72,419,329
22,941,110
91,001(4,501,054)

980,282,096

434,301,351

Other non-current assets
Deductible VAT in future years

9.

INVENTORIES

Raw materials
Work in process
Finished goods
Trade goods
Allowance for impairment on inventory (-)

The Group determines inventories whose net realizable value is below the cost of each year, and aprovision amounting to TL 4,501,054 has been reserved for inventory impairment (31 December
2021: TL 4,501,054). As of 31 December 2022, the total amount of inventories shown at net realizablevalue is TL 980,282,096 (31 December 2021: TL 434,301,351).
The movement table of the Group's provision for inventory impairment as of 31 December 2022 is asfollows:
Movements of provision for inventory impairment
Opening balance
Closing balance39
156 Nuh Çimento 2022 Integrated Annual Report

1 January 31 December 2022

1 January 31 December 2021

4,501,054

4,501,054

4,501,054

4,501,054

80,986,792
28,196,604

70,077,943

109,183,396

31 December
2022

31 December
2021

61,208,501-

30,716,175
414,823

61,208,501

31,130,998

Short-term deferred income

31 December
2022

31 December
2021

Order advances received
Deferred income

89,312,872
446,149

61,355,041-

89,759,021

61,355,041

Long-term prepaid expenses
Order advances given for fixed asset purchase
Prepaid expenses

11.

INVESTMENT PROPERTIESLand

Buildings

Advances
given

Total

Opening balance as of 1 January 2022
Additions
Disposal
Transfers

37,283,679(101,550)

171,426,433
647,069(4,748,938)
10,039,623

9,938,073(9,938,073)

218,648,185
647,069(4,748,938)-

Closing balance as of 31 December 2022

37,182,129

177,364,187-

214,546,316

Total(24,760,905)(3,387,703)
296,134(27,852,474)
186,693,842

Cost Value

Accumulated Depreciation
Opening balance as of 1 January 2022
Charge for the period
Disposal
Closing balance as of 31 December 2022

Land-

Buildings(24,760,905)(3,387,703)
296,134(27,852,474)

Advances
given-

Carrying value as of 31 December 2022

37,182,129

149,511,713

-

40

03.

52,832,053
17,245,890

Order advances given for inventory purchase
Prepaid expenses

AND
04. STRATEGYMANAGEMENT

31 December
2021

05. SUSTAINABILITYMANAGEMENT

31 December
2022

Short-term prepaid expenses

ECONOMIC
06. OURPERFORMANCEPREPAID EXPENSES AND DEFERRED INCOME

SOCIAL
07. OURPERFORMANCE

10.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

157

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

11.

INVESTMENT PROPERTIES (cont’d)
Land

Buildings

Advances
given

Opening balance as of 1 January 2021
Additions
Disposal

37,283,679-

172,926,690(1,500,257)

9,938,073-

220,148,442(1,500,257)

Closing balance as of 31 December 2021

37,283,679

171,426,433

9,938,073

218,648,185

Accumulated Depreciation
Opening balance as of 1 January 2021
Charge for the period
Closing balance as of 31 December 2021

Land-

Buildings(21,318,695)(3,442,210)(24,760,905)

Advances
given
-

Total
(21,318,695)(3,442,210)(24,760,905)

Carrying value as of 31 December 2021

37,283,679

146,665,528

9,938,073

193,887,280

Cost ValueTotal

All depreciation expenses are included in expenses from investment activities (31 December 2021:
included in expenses from investment activities).
Investment properties consist of shopping mall and the hotel block and the lands which are held forinvestment purposes by the Group. The Group evaluates any indicator of reduction in value of its
investment properties. If there is such an indicator exist, the Group compares the fair value andcarrying value of the asset and records the impairment in value.
As of 31 December 2022 and 2021, the Group management has determined the fair value of themarket, hotel blocks, land and lands included in the investment properties, in line with the decision
taken. As of 31 December 2022 and 2021, the fair value of the Group’s land and buildings which isclassified as investment property has been determined by an independent valuers not related to theGroup which is ACE Gayrimenkul Değerleme ve Danışmanlık A.Ş. The fair value of the owned
market and hotel blocks has been determined using the discounted cash flow method. In the valuation
study, the capitalization rate is 8% and the nominal discount rate is 21% (31 December 2021:
capitalization rate is 8% and nominal discount rate is 21%).
For the period ended 31 December 2022, the Group’s rent revenue obtained by investment of realestate properties amounting to TL 85,365,484 (31 December 2021: TL 39,384,575). The Group paid
property tax for investment of real estate properties amounting to TL 2,781,127 (31 December 2021:
TL 2,097,446) (Note: 24).

41
158 Nuh Çimento 2022 Integrated Annual ReportINVESTMENT PROPERTIES (cont’d)
Details of the Group’s investment properties and information about the fair value hierarchy as of 31
December 2022 and 2021 are as follows:

662,925,000
17,979,194
291,880,507-

17,979,194
291,880,507

662,925,000-

31 December
2021

Level 1TL

Level 2TL

Level 3
TL

662,925,000
22,431,998
291,880,507-

22,431,998
291,880,507

662,925,000-

ECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

Level 3TL

SOCIAL
07. OURPERFORMANCE

Hotel and Shopping Mall
Buildings
Lands

Level 1TL

OUR ENVIRONMENTALPERFORMANCE

Hotel and Shopping Mall
Buildings
Lands

31 December
2022

Fair value as ofreporting period
Level 2TL

42

09. ANNEXES 08.

11.

03.

(Amounts expressed in Turkish Lira (TL))

AND
04. STRATEGYMANAGEMENT

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

159

160 Nuh Çimento 2022 Integrated Annual Report12.

149,413,791

63,343,872

Closing balance as of 31 December 2022

(81,918,399)

63,343,872

Closing balance as of 31 December 2022

Carrying value as of 31 December 2022
67,495,392(73,906,232)(8,170,784)
158,617-

Opening balance as of 1 January 2022
Charge for the period
Disposals

Accumulated Depreciation

133,842,416
10,889,643(1,098,115)
5,779,847

63,445,429
250,000(351,557)-

Land
improvements

Opening balance as of 1 January 2022
Additions
Disposals
Transfers from inventories
Transfers

Cost ValueLand

PROPERTY, PLANT AND EQUIPMENT(Amounts expressed in Turkish Lira (TL))

88,561,205(105,139,182)(101,115,588)(4,132,320)
108,726

193,700,387

184,896,082
453,407(196,678)
8,547,576

Buildings

583,539,190(713,576,554)(663,164,939)(63,686,995)
13,275,380

1,297,115,744

1,127,812,647
71,889,545(18,879,717)
88,662,767
27,630,502

Plant, machineryand equipment

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

188,669,911(105,930,521)(87,309,232)(26,110,706)
7,489,417

294,600,432

170,405,748
36,082,430(8,244,214)
96,356,468

Motor vehicles

28,243,558(55,003,742)(50,202,758)(4,902,096)
101,11283,247,300

63,410,326
19,571,780(137,859)
403,053

Furniture andfixture-(498,334)(498,334)-

498,334

498,334-

Other property,
plant andequipment

4,851,554(8,332,347)(7,185,202)(2,123,780)
976,635

13,183,901

13,244,999
48,403(2,819,813)
2,710,312

Leaseholdimprovements

244,365,159--

244,365,159

29,883,376
355,909,541(141,427,758)

Construction inprogress

1,269,069,841(1,070,399,079)(983,382,285)(109,126,681)
22,109,887

2,339,468,920

1,787,439,357
495,094,749(31,727,953)
88,662,767
-

Total

161

SOCIAL
07. OURPERFORMANCE

63,445,429

Carrying value as of 31 December 2021

OUR ENVIRONMENTALPERFORMANCE(73,906,232)-

Closing balance as of 31 December 2021

ECONOMIC
06. OURPERFORMANCE

59,936,184(67,490,427)(7,281,439)
865,634

124,011,993
10,049,307(902,372)
683,488
133,842,416-

60,674,349
2,771,080
63,445,429

Opening balance as of 1 January 2021
Charge for the period
Disposals

Accumulated Depreciation

Opening balance as of 1 January 2021
Additions
Disposals
Transfers
Closing balance as of 31 December 2021

Cost Value

Land

Land
improvements

PROPERTY, PLANT AND EQUIPMENT (cont’d)

09. ANNEXES 08.

12.

(Amounts expressed in Turkish Lira (TL))

83,096,516(87,309,232)(78,295,111)(13,123,643)
4,109,522

108,718,962
65,505,429(4,246,519)
427,876
170,405,748

Motor vehicles

AND
04. STRATEGYMANAGEMENT

464,647,708(663,164,939)(615,479,051)(54,519,605)
6,833,717

1,043,823,380
68,274,970(6,886,076)
22,600,373
1,127,812,647

05. SUSTAINABILITYMANAGEMENT

83,780,494(101,115,588)(96,999,123)(4,124,975)
8,510

182,363,396
1,141,918(11,951)
1,402,719
184,896,082

Buildings

Plant, machineryand equipment

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

03.

13,207,568(50,202,758)(47,283,643)(3,155,232)
236,11757,888,433
5,786,347(264,454)
63,410,326

Furniture andfixture-(498,334)(498,334)-

498,334
498,334

Other property,
plant andequipment

29,883,376--

2,594,057
52,789,934(2,100)(25,498,515)
29,883,376

Construction inprogress

CORPORATE
02. OURPROFILE

6,059,797(7,185,202)(5,846,868)(1,909,778)
571,444

13,513,948
61,611(714,619)
384,059
13,244,999

Leaseholdimprovements

TO OUR
01. MESSAGE
STAKEHOLDERS

804,057,072(983,382,285)(911,892,557)(84,114,673)
12,624,945

1,594,086,852
206,380,596(13,028,091)
1,787,439,357

Total

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

12.

PROPERTY, PLANT AND EQUIPMENT (cont’d)
The useful lives for property, plant and equipment is as follows:
Useful lives
15-50 years
25-50 years
5-25 years
4-15 years
3-25 years
3-10 years
5-10 years

Land improvements
Buildings
Plant, machinery and equipment
Motor vehicles
Furniture and fixture
Other property, plant and equipment
Leasehold improvements

Depreciation expense of TL 93,687,097 (31 December 2021: TL 80,232,841) has been charged in costof goods sold, TL 1,057,048 (31 December 2021: TL 134,929) in marketing expenses, TL 14,353,147(31 December 2021: TL 3,746,903) in general administrative expenses, and TL 29,389 in research anddevelopment expenses.
As of 31 December 2022, insurance coverage of the Group’s assets is TL 18,711,178,617 (31December 2021: TL 8,271,412,630).
Mortgages Given
As of 31 December 2022 and 2021, the Group has no pledge/mortgage positions.
13.

INTANGIBLE ASSETS

Cost Value
Opening balance as of 1 January 2022
Additions
Closing balance as of 31 December 2022

Rights44,115,722
6,845,939
50,961,661

Other intangible
assets212,155
212,155

Total
44,327,877
6,845,939
51,173,816

Accumulated Amortization
Opening balance as of 1 January 2022
Charge for the period
Closing balance as of 31 December 2022

(18,532,200)(2,372,683)(20,904,883)(187,508)(493)(188,001)(18,719,708)(2,373,176)(21,092,884)

Carrying value as of 31 December 2022

30,056,778

24,15430,080,932

Cost Value
Opening balance as of 1 January 2021
Additions
Closing balance as of 31 December 2021

Rights43,232,610
883,112
44,115,722

Other intangible
assets212,155
212,155

Total
43,444,765
883,11244,327,877

Accumulated Amortization
Opening balance as of 1 January 2021
Charge for the period
Closing balance as of 31 December 2021

(17,087,029)(1,445,171)(18,532,200)(187,015)(493)(187,508)(17,274,044)(1,445,664)(18,719,708)

Carrying value as of 31 December 2021

25,583,522

24,64725,608,169

45
162 Nuh Çimento 2022 Integrated Annual ReportAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

INTANGIBLE ASSETS (cont’d)
Amortization expense of TL 2,037,960 (31 December 2021: TL 1,378,948) has been charged incost of goods sold, TL 22,994 (31 December 2021: TL 2,319) in marketing and sales expenses, andTL 312,222 (31 December 2021: TL 64,397) in general administrative expenses.
The useful lives for intangible assets are as follows:
Useful lives
4-20 years
1-10 years

RightsOther intangible assets

VehiclesBuildings

Total

Opening balance as of 1 January 2022
Additions regarding operational leases

17,700-23,022,725
7,756,525

4,980,009
21,188,257

1,106,496
116,084

29,126,930
29,060,866

Disposals regarding operational leases

-

-

-

(1,106,496)(1,106,496)

Closing balance as of 31 December 2022

17,70030,779,250

26,168,266

116,084

57,081,300

Accumulated Amortization
Opening balance as of 1 January 2022
Amortization for the period
Disposals
Closing balance as of 31 December 2022

Land
(17,700)(17,700)

Port area andpier usage(4,669,164)(1,568,788)(6,237,952)

Vehicles(1,862,730)(4,963,594)(6,826,324)

Buildings(466,082)(225,332)
674,003(17,411)

Total(7,015,676)(6,757,714)
674,003(13,099,387)

Carrying value as of 31 December 2022-

24,541,298

19,341,942

98,67343,981,913

Cost Value

Land

Port area andpier usage

VehiclesBuildings

Total

Opening balance as of 1 January 2021
Additions regarding operational leases
Closing balance as of 31 December 2021

17,70017,70022,207,045
815,680
23,022,725

4,104,725
875,284
4,980,009

593,666
512,830
1,106,496

26,923,136
2,203,794
29,126,930

Accumulated Amortization
Opening balance as of 1 January 2021
Amortization for the period
Closing balance as of 31 December 2021

Land
(17,700)(17,700)

Port area andpier usage(3,116,609)(1,552,555)(4,669,164)

Vehicles(1,179,804)(682,926)(1,862,730)

Buildings(160,027)(306,055)(466,082)

Total(4,474,140)(2,541,536)(7,015,676)

Carrying value as of 31 December 2021-

18,353,561

3,117,279

640,414

22,111,254

46

05. SUSTAINABILITYMANAGEMENTPort area andpier usage

ECONOMIC
06. OURPERFORMANCELand

Cost Value

SOCIAL
07. OURPERFORMANCEThe Group's right-of-use asset movements as of the reporting period are as follows:

AND
04. STRATEGYMANAGEMENT

03.

RIGHT-OF-USE ASSETSOUR ENVIRONMENTALPERFORMANCE

14.

09. ANNEXES 08.

13.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES163

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

14.

RIGHT-OF-USE ASSETS (cont’d)
Items of right-of-use assets recognized in profit or loss are as follows:

Amortization of assets to operating lease
Interest expense from lease transactions (Note: 25)
Currency difference expenses from lease transactions (Note: 25)

31 December
2022(6,757,714)(7,276,659)(736,661)

31 December
2021(2,541,536)(4,196,901)(92,504)

TL 5,803,174 of amortization expenses is included in the cost of goods sold, TL 65,476 in themarketing and sales expenses and TL 889,064 in the general administrative expenses.
The Group rents land and vehicles for the use of the harbor and pier, concrete batching plantinstallation. Lease contracts are usually made for fixed periods of 1 to 3 years for concrete batchingplants and vehicles, and 18 to 50 years for port and pier use, and may have extension options. Leaseterms can be individually negotiated and include a wide variety of different terms and conditions.
Lease agreements are subject to contracts, but leased assets cannot be used as a guarantee forborrowing purposes.
In addition, car lease agreements with a usage permit between 2020 and 2022 and borrowing rate
discounted with the rate in the initial calculation and measured at their present value, have beenaccounted for in the consolidated statement of financial position in line with the above explanations.
15.

GOODWILL

Cost value
Cost value at the beginning of the period
Closing value

31 December
2022

31 December
2021

24,910,842
24,910,842

24,910,842
24,910,842(7,562,568)(7,562,568)(7,562,568)(7,562,568)

17,348,274
17,348,274

17,348,274
17,348,274

Accumulated impairment
Balance at the beginning of the period
Closing balance
Carrying Amount
Beginning of the Period
End of the Period

As of 31 December 2022 and 2021, no impairment has been determined for the goodwill accounted
for within the scope of the purchase of Kudret Enerji shares, according to the valuations made byindependent valuation experts using the discounted cash flow method.
In accordance with the valuations performed by the independent valuation specialists using thediscounted cash flows method as of 31 December 2022, the Group was identified USD 15 million (31December 2021: USD 15 million) net equity value. The USD-based weighted average cost of capital
was calculated as 11.69% for 2022 and after (31 December 2021: 11.69%) and the unit electricity saleprices were held fixed for a 10-year purchase guarantee period and were presumed to increase at therate of annual average consumer inflation as of the subsequent periods. The estimated electricity
production throughout the period was assumed to be 33,000 kWh (31 December 2021: 33,000 kWh).

47
164 Nuh Çimento 2022 Integrated Annual Report18,665,728

19,939,383

18,665,728

19,939,383

As of 31 December 2022, TL 18,665,728 for open lawsuits and proceeded against the Parent Company
and its subsidiaries (31 December 2021: TL 21,811,293). Lawsuits against the Group generally consistof employee lawsuits.
As of 31 December 2022, total litigation provision amounted to TL 18,665,728 is recognized for theongoing lawsuits filed against the Parent Company and subsidiaries in the accompanying consolidated
financial statements as a result of the evaluation made by the Group management (31 December 2021:
TL 19,939,383). The Company management don’t expect any cash outflow regarding rest of the cases.
As of 31 December 2022 and 2021, movements of provision for legal claims and termination
provisions are as follows:
1 January1 January31 December 2022 31 December 2021
Opening balance
Payments and provisions released
Provisions for the period (Note: 21)

19,939,383(637,112)(636,543)

20,194,994(1,023,518)
767,907

Closing balance

18,665,728

19,939,383

Long-term other provisions

31 December
2022

31 December
2021

Land restoration provision

13,598,060

6,967,474

13,598,060

6,967,474

The Company owns mines in which the ownership belongs to the Company and holds the Company
owns mines and land usage rights of mines owned by Treasury of Turkey as of 31 December 2022.
To comply with the Communiqué of Ministry of Environment named as “Mining Operations andRecovery of Damaged Land” (Communiqué) which became effective after being published in the
Official Gazette on 14 December 2007 and was amended on 23 January 2012, the Company has
booked a provision amounting to TL 13,598,060 (31 December 2021: TL 6,967,474) for restoration
costs regarding the laying of top soil and re-vegetation of the land in the areas that are reorganized in
the mine lands in use, as of 31 December 2022, all the usable areas of the land with mining license. In
accordance with the Communiqué, the land shall be restored in two years’ period after the terminationof the mining operations. After the completion of such activities, the license holder is permitted toleave the land in the following five years period.

48

03.

Legal claims and termination provisions

31 December
2021

AND
04. STRATEGYMANAGEMENT

Short-term other provisions

31 December
2022

05. SUSTAINABILITYMANAGEMENTa) Provisions

ECONOMIC
06. OURPERFORMANCEPROVISIONS, CONTINGENT ASSETS AND LIABILITIESSOCIAL
07. OURPERFORMANCE

16.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES165

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

16.

PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)a) Provisions (cont’d)
As of 31 December 2022 and 2021, movements for land restoration are as follows:
1 January31 December 2022

1 January31 December 2021

Opening balance
Charge for the period

6,967,474
6,630,586

4,645,336
2,322,138

Closing balance

13,598,060

6,967,474

The change in the provision for land restoration provision is recognized under cost of goods sold.
b) Contingent Assets and Liabilities
As of 31 December 2022, total amount of checks and notes endorsed to third parties is TL 14,050,920(31 December 2021: TL 3,325,353).

49
166 Nuh Çimento 2022 Integrated Annual Report

TL equivalent

TL

US Dollar

Euro-Guarantee-Pledge-Mortgage

79,063,749-

55,028,336-

150,000-

1,065,000--Guarantee-Pledge-Mortgage
C. GPM's are given on behalf of the third parties' debt forcontinuation of their economic activities-Guarantee-Pledge-Mortgage
D. Total amount of other GPM'si. Given on behalf of majority shareholder-Guarantee-Pledge-Mortgageii. Given on behalf of other group companies which are
not in the scope of B and C-Guarantee-Pledge-Mortgageiii. Given on behalf of third parties
which are not in the scope of C
-Guarantee-Pledge-Mortgage

20,668,683-

16,362,745--

216,000
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

99,732,432

71,391,081

150,000

1,281,000

31 December 2022
A. Total amount of the GPM's
given for its own legal entity

B. GPM's given on behalf of fully
consolidated companies

OUR ENVIRONMENTALPERFORMANCE

As of 31 December 2022, the rate of total amount of other “GPM”s to total equity of the Group is 2%.

03.

The Group’s guarantees/pledge/mortgage (GPM) are as follows:

AND
04. STRATEGYMANAGEMENTb) Contingent Assets and Liabilities (cont’d)

05. SUSTAINABILITYMANAGEMENTPROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)50

09. ANNEXES 08.

16.

ECONOMIC
06. OURPERFORMANCE(Amounts expressed in Turkish Lira (TL))

SOCIAL
07. OURPERFORMANCE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES167

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

16.

PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)b) Contingent Assets and Liabilities (cont’d)TL equivalent

TL

US Dollar

Euro-Guarantee-Pledge-Mortgage

23,380,590-

21,433,965-

150,000---Guarantee-Pledge-Mortgage
C. GPM's are given on behalf of the third parties' debt forcontinuation of their economic activities-Guarantee-Pledge-Mortgage
D. Total amount of other GPM'si. Given on behalf of majority shareholder-Guarantee-Pledge-Mortgageii. Given on behalf of other group companies which are
not in the scope of B and C-Guarantee-Pledge-Mortgageiii. Given on behalf of third parties
which are not in the scope of C
-Guarantee-Pledge-Mortgage

15,575,425-

12,404,048--

216,000
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

38,956,015

33,838,013

150,000

216,000

31 December 2021
A. Total amount of the GPM's
given for its own legal entity

B. GPM's given on behalf of fully
consolidated companies

As of 31 December 2021, the rate of total amount of other “GPM”s to total equity of the Group is 2%.

51
168 Nuh Çimento 2022 Integrated Annual ReportAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

EMPLOYEE BENEFITS
Payables related to employee benefits

Social security premiums payable
Due to personnel

31 December
2022

31 December
2021

12,733,837
11,285,408

5,027,630
4,500,298

24,019,245

9,527,928

31 December
2022

31 December
2021

2,871,133
11,795,386

1,333,757
4,530,826

14,666,519

5,864,583

1 January31 December 2021

Opening balance
Charge for the period

4,530,826
7,264,560

3,489,427
1,041,399

Closing balance

11,795,386

4,530,826

31 December
2022

31 December
2021

147,134,795
25,714,416

58,553,981
9,719,855

172,849,211

68,273,836

Long-term provision for employee benefits

OUR ENVIRONMENTALPERFORMANCE

Provision for employment termination benefits
Provision for seniority incentive bonus

05. SUSTAINABILITYMANAGEMENT

1 January31 December 2022

ECONOMIC
06. OURPERFORMANCE

As of 31 December 2022 and 2021, movements of unused vacation is as follows:

SOCIAL
07. OURPERFORMANCE

Provision for seniority incentive bonus
Unused vacation pay liability

AND
04. STRATEGYMANAGEMENT

03.

Short-term provision for employee benefits

52

09. ANNEXES 08.

17.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES169

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

17.

EMPLOYEE BENEFITS (cont’d)Long-term provision for employee benefits (cont’d)Seniority incentive bonus:
Some subsidiaries of the Group pays additional employee benefits to their employees above certain
seniority limits as seniority incentive premiums. These incentive provision is reserved for to promote
loyalty to the Company and its subsidiaries. The benefits are provided as follows; employees with 5
year work experience are paid for their 30 days wage, those with 10 year work experience are paid fortheir 45 days of their gross wage, those with 15 year work experience are paid for their 55 days wage,
those with 20 year work experience are paid for their 70 days wage, those with 25 or 30 year work
experience are paid for their 75 days wage, for each level of payment with their actual working wage
in the month they complete the respective seniority level in the mentioned range.
To calculate the provision for seniority incentive payments, the Group has considered each employees
years of service as of the balance sheet date since their job entrance dates and booked a provision forthe discounted amount of the future payments as of the reporting date.
As of 31 December 2022 and 2021, movements of seniority incentive bonus are as follows:
1 January31 December 2022

1 January31 December 2021

Opening balance
Provisions / reversals for the period
Payments

11,053,612
19,287,390(1,755,453)

9,828,971
2,088,529(863,888)

Closing balance

28,585,549

11,053,612

Provision for employment termination benefits
Under Turkish Labor Law, the Group is required to pay termination benefits to each employee who
has completed certain years of service and whose employment is terminated without due cause, iscalled up for military service, dies or achieves the retirement age (58 for women and 60 for men).
The amount payable consists of one month’s salary limited to a maximum of TL 15,371.40 for eachperiod of service as of 31 December 2022 (31 December 2021: TL 8,284.51).
Retirement pay liability is not subject to any kind of funding legally. Provision for retirement pay
liability is calculated by estimating the present value of probable liability amount arising due toretirement of employees. TAS 19 Employee Benefits stipulates the development of Group’s liabilities
by using actuarial valuation methods under defined benefit plans. In this direction, actuarial
assumptions used in calculation of total liabilities are described as follows:53
170 Nuh Çimento 2022 Integrated Annual ReportSignificant assumptions used in the calculation of employee termination benefit is likely to leave the job
depends on the discount rate and demand.

18.

•

If the discount rate had been 1% higher (lower), provision for employment termination benefits
would decrease / (increase) by TL 13,321,401 / TL (15,769,187)•

If the inflation rate had been 1% lower / (higher) while all other variables were held constant,provision for employment termination benefits would increase / (decrease) by TL 2,865,052 / TL
(2,643,249).
1 January1 January31 December 2022 31 December 2021

Opening balance
Service cost
Interest cost
Termination benefits paid
Actuarial loss / (gain)

58,553,981
16,770,578
12,881,876(5,197,529)
64,125,889

41,918,160
18,288,242
1,680,590(3,333,010)-

Closing balance

147,134,795

58,553,982

31 December
2022

31 December
2021

4,711,025
61,005279,367
17,0604,772,030

296,427

OTHER LIABILITIESOther current liabilities
Calculated VAT
Expense accruals
Other liabilities

54

03.

The principal assumption is that the maximum liability for each year of service will increase parallel with
inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the
anticipated effects of future inflation. Consequently, in the accompanying financial statements as of 31
December 2022, the provision has been calculated by estimating the present value of the future probableobligation of the Group arising from the retirement of the employees. The provisions at the respectivebalance sheet dates have been calculated with the assumption of 2.10% real discount rate (31 December
2021: 4.45%) calculated by using 19.00% annual inflation rate and 21.50% discount rate. Estimatedamount of retirement pay not paid due to voluntary leaves is also taken into consideration as 5.72% for
employees with 0-15 years of service, and 0% for those with 15 or more years of service (31 December
2021: 7.35% for 0-15 years; 0% for 15 and more years). Ceiling amount of TL 19,982.83 which is ineffect since 1 January 2023 is used in the calculation of Group’s provision for retirement pay liability (1January 2022: TL 10,848.59).

AND
04. STRATEGYMANAGEMENT

Provision for employment termination benefits (cont’d):05. SUSTAINABILITYMANAGEMENT

Long-term provision for employee benefits (cont’d)

ECONOMIC
06. OURPERFORMANCEEMPLOYEE BENEFITS (cont’d)

SOCIAL
07. OURPERFORMANCE

17.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES171

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

19.

SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMSa) Share Capital
As of 31 December 2022 and 2021, the share capital held of the Company is as follows:
Shareholders
Nuh Ticaret Sanayi ve Ticaret A.Ş.
Partaş Tekstil İnşaat Sanayi ve Ticaret A.Ş.
Other (*)

Share
Rate (%)

31 December
2022

Share
Rate (%)

31 December
2021

44,13
16,32
39,55

66,283,864
24,515,195
59,414,541

44,13
16,32
39,55

66,283,864
24,515,195
59,414,541

100,00150,213,600

100,00150,213,600

Capital inflation diffrences (**)

39,338,145

39,338,145

189,551,745

189,551,745(*) Represents total of shareholdings less than 5%.
(**) Adjustment to share capital represents the restatement effect of cash and cash equivalent
contributions to share capital measured in accordance with the CMB Financial Reporting Standards.
Adjustment to share capital has no use other than being transferred to paid-in share capital.
The Company is subject to the capital system. The Company’s issued capital assigned to 150,213,600
shares with nominal value of 1 TL each, amounting to TL 150,213,600.
The capital adjustment differences may be used in free capital increase or loss deduction. Furthermore,
the inflation adjustment differences arising from legal reserves bearing no annotation to disable profit
distribution may be used in profit distribution.
b) Restricted Reserves Appropriated from Profit

Legal reserves

31 December
2022

31 December
2021

507,442,693
507,442,693

467,909,963
467,909,963

The Company reserves 5% of the historical statutory profit as first legal reserve, until the total reserve
reaches 20% of the historical paid in share capital. The other legal reserve is appropriated at the rate of
10% per annum of all cash dividend distributions after the payment of dividends to the shareholders at
a rate of 5%. According to Turkish Commercial Law, general legal reserves can only be used if it does
not exceed the capital or issued capital for close the losses, continue the business when business is notgoing well or end the unemployment and to take suitable precautions to reduce the results of
unemployment.

55
172

Nuh Çimento 2022 Integrated Annual Reportb) Restricted Reserves Appropriated from Profit (cont’d)
Dividend Distribution:
Listed companies distribute dividends according to the Communique numbered II-19.1 and publishedon 1 February 2014 in the Official Gazette.
Shareholders distribute their profits within the framework of the profit distribution policies to be
determined by their general assemblies and in accordance with the provisions of the relevant
legislation, by the decision of the general assembly. Within the scope of the communiqué, a minimum
distribution rate has not been determined. Companies pay dividends as specified in their articles ofassociation or profit distribution policies.
The Company's weighted average of shares did not change compared to the previous year, andearnings per share were realized as TL 13.89 (31 December 2021: TL 4.28).
Since March 2022, the Group has paid dividend to shareholders amounting to TL 322,959,240 (May2021: TL 225,320,400) TL 2.15 per share (May 2021: TL 1.50).
Funds Subject to Profit Distribution:
Accumulated losses of companies including previous year’s earnings, related premiums, legal
reserves, share capital inflation adjustments are taken into account as deduction in calculation ofcurrent year distributable net income. In order to distribute dividends to the holders of dividend shares,
privileged shareholders, to the members of the board of directors or to the employees, there has to be aprovision in the articles of association. If there is no specific rate in terms of dividend distribution in
the articles of association, dividends to be distributed to those cannot exceed one-fourth of dividends
distributed to shareholders with the exception of privileged situations.

Foreign sales
Domestic sales
Domestic energy sales
Other sales
Sale returns (-)
Sale discounts (-)

56

1 January31 December
2022

1 January31 December
2021

4,320,669,486
3,394,268,135
39,167,795
357,801(758,990)(14,623,833)

1,557,705,462
965,895,352

7,739,080,394

2,493,229,032

13,192,018

2,473,229(343,728)(45,693,301)

SOCIAL
07. OURPERFORMANCE

Revenue

ECONOMIC
06. OURPERFORMANCEREVENUE AND COST OF SALESOUR ENVIRONMENTALPERFORMANCE

20.

03.

SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS (cont’d)

09. ANNEXES 08.

19.

AND
04. STRATEGYMANAGEMENT(Amounts expressed in Turkish Lira (TL))

05. SUSTAINABILITYMANAGEMENT

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES173

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

20.

REVENUE AND COST OF SALES (cont’d)
Cost of Sales

Cost of goods soldCost of merchandise soldCost of service provided
Amortization and depreciation expenses (Note: 12 and 13)
Other sales expenses

21.

1 January31 December
2021(5,099,951,560)(240,553,730)(128,678,767)(101,528,232)(3,413,966)(1,618,817,608)(34,506,775)(57,710,071)(81,611,789)(1,897,595)(5,574,126,255)(1,794,543,838)

GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH AND
DEVELOPMENT EXPENSES
General administrative expenses
Marketing expenses
Research and development expensesa) Details of General Administrative Expenses

Personnel expenses
Depreciation and amortization expenses (Note: 12 and 13)
Office, electricity, water, natural gas and communication expenses
Taxes, duties and fees
Outsourced benefits
Doubtful trade receivables expenses (Note: 6)
Consultancy expenses
Maintenance and repairment expenses
Consultancy and audit expenses
Insurance expenses
Rent expenses
Changes in litigation provision (Note: 16)
Other expenses

57
174

1 January31 December
2022

Nuh Çimento 2022 Integrated Annual Report

1 January31 December 2022
(212,488,049)(188,425,154)(326,869)(401,240,072)

1 January31 December 2021
(141,092,155)(76,476,667)(15,691)(217,584,513)

1 January31 December 2022

1 January31 December 2021

(118,375,946)(15,554,432)(15,015,665)(13,750,961)(11,270,745)(13,295,813)(6,389,925)(3,283,291)(2,991,408)(2,385,869)(1,794,872)
636,543(9,015,665)(212,488,049)(82,526,388)(6,352,836)(6,592,649)(12,386,315)(7,241,990)(5,370,659)(3,502,907)(1,657,952)(1,317,793)(782,882)(3,182,998)(767,907)(9,408,879)(141,092,155)

(51,927,310)(16,650,708)(513,275)(631,852)(2,861,659)(621,862)(137,248)(350,473)(635,263)(2,147,017)(76,476,667)

1 January31 December 2022

1 January31 December 2021

(5,099,951,560)(240,553,730)(128,678,767)(121,615,885)(148,866,052)(134,815,661)(12,968,517)(18,002,992)(6,389,925)(2,991,408)
636,543(4,986,198)(2,017,626)(13,295,813)(15,015,665)(4,633,997)(2,385,869)(264,958)(21,629,081)(5,978,427,161)(1,618,817,608)(34,506,775)(57,710,071)(91,544,083)(99,192,787)(51,927,310)(10,103,649)(13,018,167)(3,502,907)(1,317,793)(767,907)(2,279,814)(3,818,261)(5,370,659)(6,592,649)(513,275)(782,882)(350,473)(13,437,800)(2,015,554,870)

EXPENSES BY NATURE

Cost of goods soldCost of trade goods soldCost of service given
Depreciation and amortization expenses (Note: 12, 13 14)
Personnel expenses
Exportation expenses
Outsourced benefits
Taxes, duties and fees
Consultancy expenses
Consultancy and audit expenses
Changes in litigation provision (Note: 15)
Maintenance and repairment expenses
Rent expenses
Changes in doubtful provisions (Note: 6)
Office expenses
Representation and hospitality expenses
Insurance expenses
Transportation expenses
Other expenses

CORPORATE
02. OURPROFILE(134,815,661)(30,163,237)(4,633,997)(4,252,031)(1,697,772)(1,702,907)(1,145,518)(264,958)(222,754)(9,526,319)(188,425,154)

OUR ENVIRONMENTALPERFORMANCE

22.

1 January31 December 2021

03.

Exportation expenses
Personnel expenses
Representation and hospitality expenses
Taxes, duties and fees
Outsourced benefits
Maintenance and repairment expenses
Depreciation and amortization expenses (Note: 12 and 13)
Transportation expenses
Rent expenses
Other expenses

1 January31 December 2022

AND
04. STRATEGYMANAGEMENTb) Details of Marketing Expenses

05. SUSTAINABILITYMANAGEMENT

GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH AND
DEVELOPMENT EXPENSES (cont’d)58

09. ANNEXES 08.

21.

ECONOMIC
06. OURPERFORMANCE(Amounts expressed in Turkish Lira (TL))

SOCIAL
07. OURPERFORMANCE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES175

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

22.

EXPENSES BY NATURE (cont’d)Fees for services received from an independent audit firm
Based on the Board Decision of the Public Oversight, Accounting and Auditing Standards Authority
published in the “POA” Official Gazette, the fees related to the services received by the Group fromthe independent auditor/independent audit firm as of the reporting period are as follows:

Independent audit fee for the reporting period

23.

1 January31 December 2022

1 January31 December 2021

925,000

420,000

925,000

420,000

OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIESThe details of other income from operating activities for the years ended 31 December 2022 and 2021
are as follows:
FX gains from trade receivables and payables
Scrap sales income
Insurance income
Rediscount income
Compensation and fine income
Interest income
Other income

1 January31 December 2022

1 January31 December 2021

62,602,940
11,045,328
9,522,081
275,291
60,6055,493,888

88,777,749
6,594,112
3,171,295
471,337
11,75011,002,648

89,000,133

110,028,891

The details of other expenses from operating activities for the years ended 31 December 2022 and2021 are as follows:

FX losses from trade receivables and payables
Donations and grants (*)
Accident and damage expenses
Rediscount expenses
Compensation and fine expenses
Other expenses

1 January31 December 2022

1 January31 December 2021

(41,690,815)(9,909,614)(6,082,859)(1,741,171)(1,033,276)(8,280,561)(33,891,371)(11,089,974)(6,152,064)(1,667,606)(2,084,185)(68,738,296)(54,885,200)(*) It consists of donations made to the Nuh Çimento Eğitim ve Sağlık Vakfı, which was establishedas publicly beneficial foundation by the decision of the Council of Ministers, and other public benefits.

59
176 Nuh Çimento 2022 Integrated Annual Report39,384,575
4,894,865
528,369
1,975,466

191,897,140

46,783,275(*) Includes the rent income from investment properties.
The details of expenses from investing activities for the years ended 31 December 2022 and 2021 are
as follows:
1 January1 January31 December
31 December
2022
2021
Depreciation expenses from investment property
Real estate tax for investment property
Loss on sale of fixed assets
Securities losses

25.

(3,387,703)(2,781,127)(1,074,788)(1,265,131)(3,442,210)(2,097,446)-(8,508,749)(5,539,656)

FINANCE INCOME AND EXPENSES
The details of income from finance activities for the years ended 31 December 2022 and 2021 are as
follows:

Foreign exchange gains
Interest income
Maturity difference income
Interest income from trade receivables
Other financial income

60

1 January31 December
2022

1 January31 December
2021

211,883,936
37,869,379
1,950,006
1,275,624
3,940,282

240,760,239
23,185,474-

256,919,227

263,945,713

03.

85,365,484
14,037,362
5,031,831
15,127,967
72,260,816
73,680AND
04. STRATEGYMANAGEMENT

Rent income (*)
Gain on sale of fixed assets
Investment property sale profit
Interest income from financial investments
Foreign exchange gains from financial investments
Other

05. SUSTAINABILITYMANAGEMENT

The details of income from investing activities for the years ended 31 December 2022 and 2021 are as
follows:
1 January1 January31 December
31 December
2022
2021

ECONOMIC
06. OURPERFORMANCEINCOME AND EXPENSES FROM INVESTING ACTIVITIESSOCIAL
07. OURPERFORMANCE24.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES177

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

25.

FINANCE INCOME AND EXPENSES (cont’d)
The details of expenses from finance activities for the years ended 31 December 2022 and 2021 are as
follows:
1 January1 January31 December
31 December
2022
2021
Foreign exchange losses
Interest expenses
Interest expense of TFRS 16 (Note: 14)
Exchange losses of TFRS 16 (Note: 14)
Other interest and commission expenses

26.

(196,238,156)(108,973,714)(7,276,659)(736,661)(13,970,758)(167,003,024)(22,088,293)(4,196,901)(92,504)-(327,195,948)(193,380,722)

INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)Corporate Tax
The Group, its subsidiaries established in Turkey and other countries, associates and joint ventures are
subject to the tax legistation and practices in the countries which they are operating.
In Turkey, the corporate tax rate is 20%. However, within the scope of the Law No. 7316 on the "Lawon the Collection of Public Claims and Amendments to Some Laws" published in the Official Gazettedated 22 April 2021, this rate will be applied as 23% for the corporate earnings of the 2022 taxation
period, starting from the declarations that must be submitted as of 1 July 2021 (31 December 2021:
25%).
This rate is applicable to the tax base derived upon exemptions and deductions stated in the tax
legislation and by addition of disallowable expenses to the commercial revenues of the companies
with respect to the tax legislation. Corporate tax is required to be filed by the twenty-fifth day of the
fourth month following the balance sheet date and taxes must be paid in one instalment by the end of
the fourth month.
Companies calculate a temporary tax of 23% on their quarterly financial profits and declare until the
14th day of the second month following that period and pay it until the seventeenth day. The paid
temporary tax within the year is deducted from the corporate tax to be calculated over the corporate
tax declaration to be given the following year. If there is a temporary tax remaining despite the offset,
this amount may be refunded in cash or deducted from any other financial debt against the state.
Corporate tax losses can be carried forward for a maximum period of 5 years following the year inwhich the losses were incurred. The tax authorities can inspect tax returns and the related accounting
records for a retrospective maximum period of five years.

61
178 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont’d)Corporate Tax (cont’d)
10% withholding applies to dividends distributed by resident real persons, those who are not liable toincome and corporation tax, non-resident real persons, non-resident corporations and non-resident
corporations exempted from income and corporation tax.

The additional paragraph to Provisional Article 69 included in accordance with Law No: 6009, whichis related to the 25% threshold and requires the incentive amount that will be subject to investment
incentive exemption in determining tax base cannot exceed 25% of the respective income, has been
revoked based on the ground that it is contrary to the Constitution upon the Constitutional Court’s
resolution No: E. 2010/93 K. 2012/9 (“stay of execution”) issued on 9 February 2012 and published in
the Official Gazette No: 28208 on 18 February 2012. The related Constitutional Court’s decision was
published in the official Gazette No: 28719 as at 26 July 2013.

Current tax liability
Current tax provision
Less: Prepaid taxes and funds

62

31 December
2022
314,001,437(273,085,528)

31 December
2021
143,338,567(97,537,431)

40,915,909

45,801,136

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENTECONOMIC
06. OURPERFORMANCEThe revoked phrase “only attributable to “2006, 2007 and 2008” stated in Provisional Article 69 of
Income Tax Law No:193 with the effect of Article 5 of Law No:6009 after having published in the
Official Gazette No: 27659 as at 1 August 2010 and the Constitutional Court’s issued resolution no:
2009/144 published in the Official Gazette as at 8 January 2010 has been revised. The revised
regulation allows companies to continue to benefit from the exception of undeductible and carryforward investment incentive due to insufficient earnings irrespective of having any time constraints.
However, deductible amount for investment incentive exception used in the determination of tax basecannot exceed 25% of the related period’s income. In addition, companies that opt to use theinvestment incentive exemption are allowed to apply (22%) of income tax, instead of 30% under the
related revised regulation.

SOCIAL
07. OURPERFORMANCE

Investment Incentives

OUR ENVIRONMENTALPERFORMANCE

Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax
return. Therefore, tax liabilities, as reflected in these consolidated financial statements, have been
calculated on a separate-entity basis. As of 31 December 2022, current income tax payables have been
offset against the prepaid taxes in entity basis, but such offset amounts have been classified in grossbasis in the consolidated financial statements. Prepaid taxes and corporate tax provision have been
demonstrated as follows:

03.

Dividend distribution by resident corporations to resident corporations is not subject to a withholding
tax. Furthermore, in the event the profit is not distributed or included in capital, no withholding tax
shall be applicable.

09. ANNEXES 08.

26.

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES179

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

26.

INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont’d)Corporate Tax (cont’d)
As of 31 December 2022 and 2021, the distribution of consolidated tax expense is as follows:

Corporate tax (-)
Deferred tax income
Adjustments made with respect to prior period taxes
Tax income/expenses incurred within the scope oftax incentives

31 December
2022(314,001,437)
500,537,819
2,992,014

31 December
2021(143,338,567)
154,113,610--(16,396,263)

189,528,396(5,621,220)

1 January - 31 December 2022
Before tax
Tax expense/amountincomeNet of tax
amountTax recognized directly in equity

Remeasurement Losses of Defined Benefit Plans
Portion of Other Comprehensive Income from
Investments Valued by Equity Method(64,125,889)

12,825,178(51,300,711)

692,887,637(34,644,382)

658,243,255

Other comprehensive income

628,761,748(21,819,204)

606,942,544

1 January - 31 December 2021
Before tax
Tax expense/amountincomeNet of tax
amountPortion of Other Comprehensive Income from
Investments Valued by Equity Method(46,470,767)

2,323,788(44,146,979)

Other comprehensive income(46,470,767)

2,323,788(44,146,979)

Deferred Tax:The Group recognizes deferred tax assets and liabilities based upon temporary differences arising
between its financial statements as reported for TFRS purposes and its statutory tax financial
statements. These differences usually result in the recognition of revenue and expenses in different
reporting periods for TFRS and tax purposes and they are given below.
The tax rate used in the calculation of deferred tax assets and liabilities is 23% over the temporary
timing differences expected to reverse in 2022 (2021: 23%), and 20% over the temporary timing
differences expected to reverse after 2022 (2021: 20%).

63
180 Nuh Çimento 2022 Integrated Annual Report31 December
2022

31 December
2021

607,886,877
1,573,181(1,032,201)
14,465,401
5,717,110
2,359,077
2,719,612
8,287,028
4,655,146
900,211368,493
1,280,257
1,379,661(35,271,954)
6,017,366
621,305,265

122,505,344
11,710,796
2,250,735
1,001,665
1,393,495
7,236,325
4,190,108
1,168,154
209,883
575,4121,010,189(10,636,040)(1,918,291)
140,697,775

Less: Provision for deferred tax asset(1,280,257)-

Deferred tax asset
Deferred tax liability
Deferred tax liability, net

657,847,627(37,822,619)
620,025,008

186,196,931(45,499,156)
140,697,775

Temporary diffrences from property, plant and equipment
and intangible assets
Receivable rediscountSellers and rediscount of issued promissory notes
Provision for employment termination benefits
Seniority incentive bonus
Unused vacation liability
Provision for land restoration provision
Provision for doubtful receivables (including TFRS 9 impact)
Provision for legal claims
Temporary diffrences from inventories
Expected credit losses from demand and time deposits - TFRS 9
Deductible prior years' losses
Borrowings from right-of-use assets and lease transactions
Temporary diffrences from investment property
Financial asset value increases
Other

OUR ENVIRONMENTALPERFORMANCE(*) The Company revalued its immovables and other property, plant and equipment subject to depreciation in its
financial statements prepared in accordance with the Tax Procedure Law (TPL), and as a result of thistransaction, a value increase fund amounting to TL 3,700,407,410 was recognized. This transaction has beencorrected in the financial statements prepared in accordance with Turkish Financial Reporting Standards (TFRS),
and as a result, deferred tax assets amounting to TL 740,081,482 have been recognized.

03.

Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax
return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial
statements, have been calculated on a separate-entity basis. Details of deferred tax assets, liabilities,
income and expenses and temporary differences that form the basis of deferred tax calculations arestated below:

AND
04. STRATEGYMANAGEMENT

Deferred Tax (cont’d):05. SUSTAINABILITYMANAGEMENT

INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont’d)64

09. ANNEXES 08.

26.

ECONOMIC
06. OURPERFORMANCE(Amounts expressed in Turkish Lira (TL))

SOCIAL
07. OURPERFORMANCE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES181

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

26.

INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont’d)Deferred tax (cont’d):Movement of deferred tax (assets) / liabilities as of 31 December 2022 is as follows:
Movement of deferred tax liabilities:

1 January31 December 2022

1 January31 December 2021

Opening balance as of 1 January
Charged to statement of income
Currency protected deposit tax effect recognizedin the income statement
Charged to equity

140,697,775
500,537,819(15,739,623)
154,113,610

608,618(21,819,204)

2,323,788

Closing balance

620,025,008

140,697,775

Total charge for the year can be reconciled to the accounting profit as follows:
Income tax reconcilation:
Income before tax from operating activities
Effective tax rate
Expected taxation expenses
Tax effect of:- Non-deductible expenses- Withholding expense related to dividend- Discount and donations- Reduced tax effect within the scope of the incentive- Tax expenses incurred within the scope of tax incentives- Inflation valuation effect on tax records of property, plantand equipment- Tax effect of other adjustments- The tax incentive effect of currency-protected deposits
Tax expense in the statement of profit or loss

27.

1 January31 December 2022
1,897,087,574
23%(436,330,142)

1 January31 December 2021
648,052,982
25%(162,013,246)(27,797,972)(11,798,189)

20,944,405
45,297,904
11,233,037

6,023,933
10,449,302
16,396,263

576,118,836
670,946(608,618)

155,622,598(20,301,881)-

189,528,396(5,621,220)

EARNINGS PER SHARE
Earnings per share are calculated by dividing net profit by the weighted average number of shares thathave been outstanding during the year.
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares (“bonus
shares”) to existing shareholders from retained earnings on equity items. Such kind of bonus shares aretaken into consideration in the computation of earnings per share as issued share certificates. For the
purpose of earnings per share computations, the weighted average number of shares outstanding during
the period has been adjusted in respect of bonus shares issues without a corresponding change inresources, by giving them retroactive effect for the year in which they were issued and each earlier year.

65
182 Nuh Çimento 2022 Integrated Annual ReportAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

EARNINGS PER SHARE (cont’d)Earnings per share are determined by dividing net income of the shareholders by the weighted average
number of shares that have been outstanding during the related year.

2,086,615,970
150,213,600

642,431,762
150,213,600

13.89

4.28

136,639,298--

136,205

111,589,096
136,205--

1,110,136,973

417,225,599

11,465,891

7,767,675--

148,105,189

7,767,675

1,110,273,178

528,950,900

31 December 2022
ChangeCarrying Value
136,639,298(10,901,961)

Profit / (Loss)(10,901,961)a) Eurobonds:

Eurobonds

Nominal Value
147,541,259
147,541,259

Eurobonds

Nominal Value
115,850,257
115,850,257

136,639,298(10,901,961)(10,901,961)

31 December 2021
Carrying Value
Change111,589,096(4,261,161)

Profit / (Loss)
930,026

111,589,096(4,261,161)

930,026

As of 31 December 2022, the Company's financial investments, whose fair value changes are reflectedin profit or loss, consist of funds issued by the Private Sector and traded in the international market.

66

AND
04. STRATEGYMANAGEMENT

Long-term
31 December
31 December
2022
2021

05. SUSTAINABILITYMANAGEMENT

Financial assets at fair value
through profit or lossa) Eurobondsb) Non-listed company shares
Financial assets at fair value
through other comprehensive incomed) Non-listed company shares
Financial assets at
amortized coste) Term deposits with a maturity ofmore than 3 months

Short-term
31 December
31 December
2022
2021

ECONOMIC
06. OURPERFORMANCE

Financial Investments

SOCIAL
07. OURPERFORMANCEFINANCIAL INSTRUMENTSOUR ENVIRONMENTALPERFORMANCE

28.

1 January31 December
2021

03.

Profit for the period
Weighted average number of ordinary shares(TL 1 nominal value per shareearnings per share)

1 January31 December
2022

09. ANNEXES 08.

27.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES183

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

28.

FINANCIAL INSTRUMENTS (cont’d)Financial Invesments (cont’d)b) Non-listed company shares:
Associates

Participation
Rate (%)

31 December
2022

Participation
Rate (%)

31 December
2021

10
12,07
<1
<1

2,433,760
90,90037,500
7,805

10
12,07
<1
<1

2,433,760
90,90037,5007,805

Cementos Esfera S.A.
Çimpaş Çimento ve İnşaat Mlz. Paz. A.Ş. (*)
Kosbaş Kocaeli Serbest Bölgesi (*)
Antalya Güç Birliği (*)
Impairment provision - Cementos Esfera S.A.

2,569,965

2,569,965(2,433,760)(2,433,760)

136,205

136,205(*) As of 31 December 2022 and 31 December 2021, Çimpaş Çimento ve İnşaat Mlz. Paz. A.Ş.,Cementos Esfera SA, Antalya Güç Birliği and Kosbaş Kocaeli Serbest Bölgesi, which are theCompany’s assets at fair value through other comprehensive income, do not significantly affect theconsolidated financial statements and it is not possible to calculate the fair values of these investments
in a reasonable manner, these financial non-current assets are carried at their cost in the consolidated
statement of financial position.
c) Listed company shares:
Stocks31 December
2022

31 December
2021

Oyak Çimento Fabrikaları A.Ş.

1,110,136,973

417,225,599

1,110,136,973

417,225,599(*) The explanation about the transaction is explained in detail in Note 1.
d) Time deposits with a maturity of more than 3 months:
The Group also has time deposits with a maturity of more than 3 months at an interest rate of 3.25%
amounting to USD 611,724, equivalent to TL 11,465,891. Related amount is shown under short-term
financial investments (31 December 2021: TL 7,767,675).

67
184 Nuh Çimento 2022 Integrated Annual Report31 December
2022
647,446,634
394,272,492

31 December
2021
248,000,000
159,639,079

6,199,388

1,943,928

Total short-term borrowings

1,047,918,514

409,583,007

Long-term bank borrowings
Long-term lease liabilities

209,884,714
43,046,881
1,300,850,109

312,655,357
23,044,387
745,282,751

Short-term bank borrowings
Short-term portions of long-term borrowings
Short-term portions of long-termlease liabilities

Total financial borrowings

As of 31 December 2022 and 2021, details of the short and long-term borrowings which are Group
used are stated below:
31 December 2022
Currency
EUR
TL
USD

Currency

Interest Rate (%)

Current

Non-Current

4.50-8.07
8.50-15.50
2.75-8.75

134,318,286
252,960,340
654,440,500

199,349,000
10,535,714-

1,041,719,126

209,884,714

Interest Rate (%)
2.65
2.75 - 2.85
8.50 - 15.50

EUR
USD
TL

31 December 2021
Current
Non-Current
147,347,179
859,294
259,432,606
407,639,079

194,662,500
117,992,857
312,655,357

03.

Financial Liabilities

AND
04. STRATEGYMANAGEMENTFINANCIAL INSTRUMENTS (cont’d)

68

Total
Borrowings
1,047,918,514
58,578,746
162,972,421
2,069,191
2,387,385
26,923,852
1,300,850,109

31 December 2021
Bank
Lease
Borrowings
Liabilities
400,181,936
1,943,928
294,662,500
1,871,949
2,092,201
25,450,000
1,060,668
1,153,416
16,866,153
720,294,436
24,988,315

Total
Borrowings
402,125,864
296,534,449
2,092,201
26,510,668
1,153,416
16,866,153
745,282,751

OUR ENVIRONMENTALPERFORMANCE

To be paid within 1 year
To be paid between 1-2 years
To be paid between 2-3 years
To be paid between 3-4 years
To be paid between 4-5 years
To be paid between 5+ years

31 December 2022
Bank
Lease
Borrowings
Liabilities
1,041,719,126
6,199,388
50,000,000
8,578,746
159,884,714
3,087,707
2,069,191
2,387,385
26,923,852
1,251,603,840
49,246,269

SOCIAL
07. OURPERFORMANCE

Maturity of borrowings are stated below:

09. ANNEXES 08.

28.

05. SUSTAINABILITYMANAGEMENT(Amounts expressed in Turkish Lira (TL))

ECONOMIC
06. OURPERFORMANCE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES185

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

28.

FINANCIAL INSTRUMENTS (cont’d)Financial Liabilities (cont’d)Reconcilation of liabilities from finance activities and lease transactions are stated below:
The table below details changes in the Group’s liabilities arising from financing activities, including
both cash and non–cash changes. Liabilities arising from financing activities are those for which cash
flows were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows
as cash flows from financing activities.
Non-cash changes
1 January
2022

Financing cashflows (net)

Interest accrualadjustment

Foreign currency
movement

New leaseliabilities

31 December
2022

Bank loans

720,294,436

387,461,565(15,503,197)

159,351,036-

1,251,603,840

Lease liabilities

24,988,315(13,354,421)

7,276,660-

30,335,715

49,246,269

745,282,751

374,107,144(8,226,537)

159,351,036

30,335,715

1,300,850,109

Non-cash changes
1 January
2021

Financing cashflows (net)

Interest accrualadjustment

Foreign currency
movement

New leaseliabilities

31 December
2021

Bank loans

297,985,128

303,283,425

5,358,936

113,666,947-

720,294,436

Lease liabilities

22,727,456(4,139,836)

4,196,901-

2,203,794

24,988,315

320,712,584

299,143,589

9,555,837

113,666,947

2,203,794

745,282,751

The Group uses foreign exchange derivatives to hedge its future significant transactions and cash
flows from financial risk. The Group is a party to various foreign currency forwards transactions andoptions depending on the management of exchange rate fluctuations. The derivative instrumentspurchased are mainly denominated in foreign currencies in which the Group operates.
The Group's main financial instruments consist of bank loans, cash and short-term deposits. The main
purpose of these financial instruments is to finance the Group's operations. The Group also has otherfinancial instruments, such as trade payables and trade receivables, arising directly from its operations.
29.

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTSa) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going
concerns while maximizing the return to stakeholders through the optimization of the debt and equity
balance.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in Note28, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued
capital, reserves and retained earnings.
The Group determines the amount of share capital in proportion to the risk level. The equity structureof the Group is arranged in accordance with the economic outlook and the risk attributes of assets.

69
186 Nuh Çimento 2022 Integrated Annual Report(Amounts expressed in Turkish Lira (TL))

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)a) Capital risk management (cont’d)
The Group monitors capital management by using the debt/equity ratio. This ratio is calculated by
dividing the debt, net, by the total share capital. The net debt is calculated by deducting the value ofcash and cash equivalents from the total debt. The total share capital is the sum of all equity items
stated in the statement of consolidated financial position.

b) Financial Risk Factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk,
fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
The Group’s overall risk management programme focuses on the unpredictability of financial markets
and seeks to minimize potential adverse effects on the Group’s financial performance. The Group uses
derivative financial instruments to hedge certain risk exposures.
Risk management is carried out under policies approved by the board of directors. The Group treasury
identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.
The board provides written principles for overall risk management, as well as written policies covering
specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial
instruments and non-derivative financial instruments, and investment of excess liquidity.
b.1) Credit risk management
In order to minimise credit risk, the Group has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the riskof financial loss from defaults. The Group monitors the credibility of the parties with whom they
perform transactions and also takes into account the credit rating of the related instruments when
making the investment preference. The credit rating information is supplied by independent rating
agencies where available and, if not available, the Group uses other publicly available financial
information and its own trading records to rate its major customers. The Group's exposure and thecredit ratings of its counterparties are continuously updated, and the aggregate value of transactions
with related parties concluded is spread amongst approved counterparties.

70

AND
04. STRATEGYMANAGEMENT

05. SUSTAINABILITYMANAGEMENT(561,651,947)
183,630,804
2,171,850,035
2,355,480,839
7.80%

ECONOMIC
06. OURPERFORMANCE(1,291,811,366)
9,038,743
4,542,449,309
4,551,488,052
0.20%

SOCIAL
07. OURPERFORMANCENet Debt
Total Equity
Total Capital
Net Debt/Total Capital Ratio

31 December
2021
745,282,751

OUR ENVIRONMENTALPERFORMANCE

Financial Liabilities (Note: 29)
Less: Cash and Cash Equivalents andShort-Term Financial Investments (Note: 34)

31 December
2022
1,300,850,10903.

During 2022, the Group’s strategy, which was unchanged from 2021, was to maintain the gearing ratio
which is calculated by financial liabilities minus cash and cash equivalents and short-term financial
liabilities. The gearing ratios at 31 December 2022 and 2021 were as follows:

09. ANNEXES 08.

29.

CORPORATE
02. OURPROFILE

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES187

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

29.

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)b) Financial Risk Factors (cont’d)b.1) Credit risk management (cont’d)
Before accepting any new customer, credit limits by customer are determined and defined after theassessment of the potential customer’s credit quality.
Credit approvals and other monitoring procedures are also in place to ensure that follow-up action istaken to recover overdue debts. The Group's trade receivables cover a large number of customers
within the majority and the construction sector. Ongoing credit evaluation is performed on thefinancial condition of accounts receivable and, where appropriate, credit guarantee insurance cover ispurchased. Additionally, the Group management evaluates the trade payables and financial assets on acustomer and asset basis at the end of the period and ensures that the required provisions for the noncollectible amounts are reflected in the consolidated financial statements.
Overview of the Group’s exposure to credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. As of 31 December 2022, the maximum risks that the Group may be
exposed to as a result of the failure of the counterparties to fulfill their obligations arise from thefollowing factors:••

the carrying amount of the respective recognised financial assets as stated in the consolidated
statement of financial position; andthe maximum amount the entity would have to pay if the financial guarantee is called upon,irrespective of the likelihood of the guarantee being exercised.

In order to minimize the credit risk, the Group has performed credit ratings considering the default
risks of the counterparties and categorized the related parties. The Group's current credit risk rating
methodology includes the following categories:
Category
Performing
Doubtful
In default
Write-off

Description
The counterparty has a low risk ofdefault and does not have any past-due
amounts
Amount is >30 days past due or there
has been a significant increase in credit
risk since initial recognition.
Amount is >90 days past due or there isevidence indicating the asset is creditimpaired
There is evidence indicating that the
debtor is in severe financial difficulty
and the Group has no realistic
prospect of recovery

71
188 Nuh Çimento 2022 Integrated Annual Report

Basis for recognizing expectedcredit losses
12-month ECL
Lifetime ECL – notcredit–impaired
Lifetime ECL –credit–impaired
Amount is written off

189876,729,355
441,341,730
729,982,520
146,746,835
146,746,835
126,597,500
82,805,729(82,805,729)--

Minimum credit risk exposure at the balance sheet date (*)- Secured portion of minimum credit risk via guarantee or etc. (**)
A. Net book value of not due or not impaired financial assets

B. Net book value of assets that are due but not impaired- Overdue (gross book value)- Secured net value via guarantee or etc.

C. Net book value of impaired assets- Overdue (gross book value)- Impairment (-)- Secured net value via guarantee or etc.
- Not due (gross book value)- Impairment (-)- Secured net value via guarantee or etc.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCESTRATEGY AND
05. SUSTAINABILITY
72 04. MANAGEMENTMANAGEMENT

03.

-

-

-

-

-

Related Party

1,246,912,476--

CORPORATE
02. OURPROFILE

-

1,498,878(1,498,878)--

156,764,906

TO OUR
01. MESSAGE
STAKEHOLDERS

1,246,912,476

156,764,906

Financial
Investments

Checks with amaturity of lessthan three
Third Party
monthsOther Receivables

D. Off balance sheet items bearing credit risk(*) The factors that increase the credit reliability, such as guarantees received are not considered in the determination of the balance.
(**) Guarantees consist of guarantee letters, guarantee notes, and mortgages obtained from the customers.

31 December 2022

Other Party

Trade Receivables

Receivables

Related Party

Credit risk exposure basedon financial instrument categoriesb.1) Credit risk management (cont’d)b) Financial Risk Factors (cont’d)

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)

09. ANNEXES 08.

29.

(Amounts expressed in Turkish Lira (TL))

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES

190 Nuh Çimento 2022 Integrated Annual Report29.

321,816,589-

83,984,936(83,984,936)--

C. Net book value of impaired assets- Overdue (gross book value)- Impairment (-)- Secured net value via guarantee or etc.
- Not due (gross book value)- Impairment (-)- Secured net value via guarantee or etc.

73

-

-

-

-

-

-

Related Party

536,718,575
536,718,575-

96,588,895
96,588,895-

1,498,878(1,498,878)--

56,814,885-

56,814,885

Financial
Investments

Checks with amaturity of lessthan three
Third Party
monthsOther Receivables

D. Off balance sheet items bearing credit risk(*) The factors that increase the credit reliability, such as guarantees received are not considered in the determination of the balance.
(**) Guarantees consist of guarantee letters, guarantee notes, and mortgages obtained from the customers.

31,691,272
31,691,272
26,611,390-

402,036,334

433,727,606

17,80017,800

Other Party

Receivables

Related Party

Trade Receivables

B. Net book value of assets that are due but not impaired- Overdue (gross book value)- Secured net value via guarantee or etc.

A. Net book value of not due or not impaired financial assets- Secured portion of minimum credit risk via guarantee or etc. (**)

Minimum credit risk exposure at the balance sheet date (*)

31 December 2021

Credit risk exposure basedon financial instrument categoriesb.1) Credit risk management (cont’d)b) Financial Risk Factors (cont’d)

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)(Amounts expressed in Turkish Lira (TL))

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIESTrade receivables comprise lots of customers spreaded to construction sector and geographic
segments. Credit assessments are continuingly performed for trade receivables balances from
customers and receivables are insured where necessary.
Aging of overdue receivables is as follows:
Trade Receivables
31 December 2022
31 December 2021
134,730,963
24,051,034
2,473,998
1,787,006
493
4,401,221
880,942
9,541,381
571,069
146,746,835
31,691,272

Past due up to 1-90 days
Past due 3-6 months
Past due 6-9 months
Past due 9-12 months
Past due over 1 year
Total overdue receivables
Secured portion with guarantee letter(126,597,500)
20,149,335(26,611,390)
5,079,882b.2) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has built
an appropriate liquidity risk management framework for the management of the Group’s short,medium and long-term funding and liquidity management requirements. The Group manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities bycontinuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities. As of reporting date, the Group has no unused borrowings to decrease liquidity
risk level.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial
liabilities and its derivative financial instruments. The tables below have been drawn up based on theundiscounted cash flows of financial liabilities based on the earliest date on which the Group can berequired to pay. The table includes both interest and principal cash flows. When the amount payable orreceivable is not fixed, the amount disclosed has been determined by reference to the projected interest
rates as illustrated by the yield curves existing at the reporting date.

74

CORPORATE
02. OURPROFILE

03.

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group, aiming to decrease credit risk by transacting only with parties
who has credit assurance and where possible, obtaining sufficient guarantee. Credit risks which theGroup is exposed, and credibility of customers are being watched continuingly. Credit risk is being
controlled by the risk management committee through limits which are determined and annuallycontrolled by the management.

AND
04. STRATEGYMANAGEMENTb.1) Credit risk management (cont’d)

05. SUSTAINABILITYMANAGEMENTb) Financial Risk Factors (cont’d)

ECONOMIC
06. OURPERFORMANCENATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)

SOCIAL
07. OURPERFORMANCE

29.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES191

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

29.

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)b.2) Liquidity risk management (cont’d)
31 December 2022

Due dates on agreement
Non-derivative
financial instruments
Bank loans
Lease liabilities
Trade payables
Other payables
Payables related to
employee benefits
Total liabilities

Carrying Value

Cash outflows
according toagreements(I+II+III)

Less than 3months (I)Between 3-12
months (II)

Between 1-5
years (III)1,251,603,840
49,246,269
644,831,661
28,637,624

1,330,213,670
138,661,945
644,831,661
28,637,624

87,103,190
6,985,236
644,831,661
28,637,624

1,014,571,359
10,912,467-

228,539,121
120,764,242-

24,019,245
1,998,338,639

24,019,245
2,166,364,145

24,019,245
791,576,956

1,025,483,826

349,303,363

Carrying Value

Cash outflows
according toagreements(I+II+III)

Less than 3months (I)Between 3-12
months (II)

Between 1-5
years (III)720,294,436
24,988,315
269,988,577
22,389,733

759,521,691
56,020,138
269,988,577
22,389,733

3,004,601
1,577,412
269,988,577
22,389,733

417,221,872
4,570,183-

339,295,218
49,872,543-

9,527,928
1,047,188,989

9,527,928
1,117,448,067

9,527,928
306,488,251

421,792,055

389,167,761

31 December 2021

Due dates on agreement
Non-derivative
financial instruments
Bank loans
Lease liabilities
Trade payables
Other payables
Payables related to
employee benefits
Total liabilitiesb.3) Market risk management
The Group’s activities expose it primarily to the financial risks of changes in foreign currency
exchange rates and interest rates.
Market risk exposures are supplemented by sensitivity analysis.
There is no change in Group’s exposure to the market risks and the methods that the Group’s
measurement and management of these market risks.
.

75
192 Nuh Çimento 2022 Integrated Annual ReportAUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)b.3) Market risk management (cont’d)b.3.1) Foreign currency risk management
Transactions denominated in foreign currencies result in foreign currency risk.
The carrying amounts of the Group’s foreign currency denominated monetary / non-monetary assets
and monetary / non-monetary liabilities at the reporting period are as follows:

1,747,971
1,123,527,577
1,125,275,548

93,04850,693,577
50,786,625

408
8,805,589
8,805,997

4,683
4,683

-

-

-

-

-

-

9. TOTAL ASSETS

1,125,275,548

50,786,625

8,805,997

4,683

-

10. Trade Payables
11. Financial Liabilities
12a. Monetary Other Liabilities
13. CURRENT LIABILITIES(94,353,617)(788,758,783)(9,750,234)(892,862,634)(2,586,216)(35,000,000)(521,450)(38,107,666)(2,293,537)(6,737,846)(9,031,383)(4,788)(4,788)(8,250)(8,250)15. Financial Liabilities
16b. Monetary Other Liabilities
17. NON-CURRENT LIABILITIES(199,349,000)(199,349,000)-(10,000,000)(10,000,000)--(1,092,211,634)(38,107,666)(19,031,383)(4,788)(8,250)20. Net foreign currency asset /(liability) position (9+18)

33,063,914

12,678,959(10,225,386)(105)(8,250)21. Net foreign currency asset /(liability) position of monetary items(1+2a+5+6a-10-11-12a-14-15-16a)

33,063,914

12,678,959(10,225,386)(105)(8,250)23. Import

1,758,262,688

101,710,004

4,287,176

19,525-

24. Export

4,303,020,853

258,786,666

1,139,758--

1. Trade receivables
2a. Monetary Financial Assets
2b. Non-Monetary Financial Assets
4. CURRENT ASSETS
6a. Monetary Financial Assets
8. NON-CURRENT ASSETS

18. TOTAL LIABILITIES

76

AND
04. STRATEGYMANAGEMENT

CHF

05. SUSTAINABILITYMANAGEMENTGBPECONOMIC
06. OURPERFORMANCEEuro

SOCIAL
07. OURPERFORMANCEUS Dollars

03.

31 December 2022

OUR ENVIRONMENTALPERFORMANCETL Equvalent(Fuctional
currency)

09. ANNEXES 08.

29.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES193

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

29.

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)b.3) Market risk management (cont’d)b.3.1) Foreign currency risk management (cont’d)
31 December 2021

TL Equvalent(Fuctional
currency)

US Dollars

Euro

GBP

CHF

1. Trade receivables
2a. Monetary Financial Assets
2b. Non-Monetary Financial Assets
4. CURRENT ASSETS

114,587,470
342,507,202
111,589,097
568,683,769

8,827,731
23,050,239
8,598,659
40,476,629

1,743
2,949,922
2,951,665

3,500
3,500

-

6a. Monetary Financial Assets
8. NON-CURRENT ASSETS

14,102,561
14,102,561

527,760
527,760

494,034
494,034--

9. TOTAL ASSETS

582,786,330

41,004,389

3,445,699

3,500

-

10. Trade Payables
11. Financial Liabilities
12a. Monetary Other Liabilities
13. CURRENT LIABILITIES(34,560,320)(148,160,252)(6,852,109)(189,572,681)(2,010,226)(62,653)(527,490)(2,600,369)(577,063)(10,035,701)(450)(10,613,214)--

15. Financial Liabilities
16b. Monetary Other Liabilities
17. NON-CURRENT LIABILITIES(194,662,500)(30,617,596)(225,280,096)(15,000,000)(2,181,343)(17,181,343)(157,279)(157,279)--

18. TOTAL LIABILITIES(414,852,777)(19,781,712)(10,770,493)--

20. Net foreign currency asset /(liability) position (9+18)

167,933,553

21,222,677(7,324,794)

3,500

-

21. Net foreign currency asset /(liability) position of monetary items(1+2a+5+6a-10-11-12a-14-15-16a)

167,933,553

21,222,677(7,324,794)

3,500

-

23. Import

603,321,458

64,995,997

2,765,460--

24. Export

1,491,060,613

168,276,943

351,633--77
194 Nuh Çimento 2022 Integrated Annual Report

The following table details the Group’s sensitivity to a 20% increase and decrease in US Dollar andEURO against TL. 20% is the sensitivity rate used when reporting foreign currency risk internally to
key management personnel and represents management’s assessment of the possible change in foreignexchange rates. The sensitivity analysis includes only outstanding foreign currency denominatedmonetary items and adjusts their translation at the period end for a 20% change in foreign currency
rates. A positive value below indicates an increase in profit/loss and other equity items.
Due to the short and long-term loans being held in foreign currency, the payments to be made inforeign currency cause foreign currency risk in cases where the exchange rates rise against Turkish
Lira. In addition, foreign exchange rate risk arising from exchange rate changes is exposed to thetranslation of foreign currency denominated assets or liabilities to Turkish Lira due to the Group'sbusiness activities with foreign companies. Exchange rate risk is monitored and limited by analyzing
the foreign exchange position. The Group follows a policy to diversify the foreign exchange basket asmuch as possible in order to manage the risk of exchange arising from future transactions and losses
and assets and liabilities.
31 December 2022

31 December 2021

Profit / Loss
Appreciation ofDepreciation offoreign currency foreign currency

Profit / Loss
Appreciation ofDepreciation offoreign currency foreign currency

In case 20% appreciation of USD against TL
1 - USD net asset / liability
2- Amount hedged USD risk (-)
3- USD net effect (1 +2)

47,414,994
47,414,994(47,414,994)(47,414,994)

55,083,458
55,083,458(55,083,458)(55,083,458)(40,768,408)(40,768,408)

40,768,408
40,768,408(21,508,965)(21,508,965)

21,508,965
21,508,965

In case 20% appreciation of other currencies
against TL
7 - Other currencies net asset / liability
8- Amount hedged other currencies risk (-)
9- Other currencies net effect (7 +8)(33,803)(33,803)33,80333,803

12,217
12,217(12,217)(12,217)

TOTAL (3 + 6 +9)

6,612,783(6,612,783)

33,586,710(33,586,710)

In case 20% appreciation of Euro against TL
4 - Euro net asset / liability
5- Amount hedged Euro risk (-)
6- Euro net effect (4 +5)78

CORPORATE
02. OURPROFILEThe Group is exposed to foreign exchange risk arising from various currency exposures, primarily
with respect to US Dollar and EURO.

03.

Foreign currency sensitivity analysis

AND
04. STRATEGYMANAGEMENT

b.3.1) Foreign currency risk management (cont’d)

05. SUSTAINABILITYMANAGEMENTb.3) Market risk management (cont’d)

ECONOMIC
06. OURPERFORMANCENATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)

SOCIAL
07. OURPERFORMANCE

29.

OUR ENVIRONMENTALPERFORMANCE(Amounts expressed in Turkish Lira (TL))

09. ANNEXES 08.

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

TO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES195

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

29.

NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d)b.3) Market risk management (cont’d)b.3.1) Foreign currency risk management (cont’d)Foreign exchange forward contracts
It is the policy of the Group to enter into foreign exchange forward contracts to manage the foreign
currency risk associated with anticipated sales and purchase transactions out to 12 months.
The Group’s policy has been reviewed and, due to the increased volatility in US Dollars, it was
decided to hedge up for foreign currency forward risk arising on translation of the foreign operation.
The Group utilises a rollover hedging strategy, using contracts with terms of up to 12 months.
b.3.2) Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed andfloating interest rates. For the optimal hedging strategy, it is aimed to review the position of thebalance sheet and to control the interest expenditures at different interest rates.
Interest rate sensitivity analysis
The details of the interest-bearing financial instruments of the Group are as follows:
Interest Rate Position Table
31 December 2022
31 December 2021

Fixed Rate Instruments
Financial Assets
Time Deposits (TL)
Time Deposits (Foreign Currency)
Total Time Deposits (Note: 34)
Financial Liabilities (TL)
Financial Liabilities (Foreign Currency)
Lease Liabilities (TL)
Lease Liabilities (Foreign Currency)
Variable Rate Instruments
Financial Liabilities
Financial Liabilities (Foreign Currency)
Total Financial Liabilities (Note: 29)

79
196 Nuh Çimento 2022 Integrated Annual Report

2,142,220,926
105,370,093
785,246,993
890,617,086
263,496,054
988,107,786
49,246,269-

1,076,897,716
62,824,346
293,778,934
356,603,280
377,425,463
342,868,973
24,815,772
172,543--

1,300,850,109

745,282,751

197

-

-

136,205-

433,745,406
119,356,771
56,814,885--

553,884,272

-

FVTPL

Financial assets at
amortized cost

136,205-

876,729,355
148,105,189
156,764,906--

1,143,706,177

-

FVTPL

Financial assets at
amortized cost

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

80
AND
04. STRATEGYMANAGEMENTThe Group management considers the carrying amount of financial assets approximate their fair values.

Financial liabilities
Bank loans
Trade payables
Other payables
Payables related to employee benefits

31 December 2021
Financial assets
Cash and cash equivalents
Trade receivables (including receivables from
related parties
Financial investments
Other receivables

Financial liabilities
Bank loans
Trade payables
Other payables
Payables related to employee benefits

31 December 2022
Financial assets
Cash and cash equivalents
Trade receivables (including receivables from
related parties
Financial investments
Other receivables

03.

-

-

417,225,599--

FVTOCI-

1,110,136,973--

FVTOCI

17

28
6
7

6
28
7

33

Note

28
6
7
17

28
7

33
6

Note

TO OUR
01. MESSAGE
STAKEHOLDERS

9,527,928

745,282,751
269,988,577
22,389,733

433,745,406
536,718,575
56,814,885

553,884,272

Carrying value

1,300,850,109
644,831,661
28,637,624
24,019,245

876,729,355
1,258,378,367
156,764,906

1,143,706,177

Carrying value

CORPORATE
02. OURPROFILE

9,527,928

745,282,751
269,988,577
22,389,733--

Financial liabilities atamortized cost

1,300,850,109
644,831,661
28,637,624
24,019,245--

Financial liabilities atamortized cost

FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND EXPLANATIONS ON HEDGE ACCOUNTING)

09. ANNEXES 08.

30.

(Amounts expressed in Turkish Lira (TL))

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

NUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIESNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES
AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022
(Amounts expressed in Turkish Lira (TL))

30.

FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND EXPLANATIONS ON
HEDGE ACCOUNTING) (cont’d)Fair Value of Financial Instruments
The fair values of financial assets and financial liabilities are determined as follows:

31.

•

Level 1: the fair value of financial assets and financial liabilities with standard terms andconditions and traded on active liquid markets are determined with reference to quoted market
prices;•Level 2: the fair value of other financial assets and financial liabilities are determined inaccordance with generally accepted pricing models based on discounted cash flow analysis
using prices from observable current market transactions

DISCLOSURE OF OTHER MATTERS THAT MAY AFFECT CONSOLIDATEDFINANCIAL STATEMENTS SIGNIFICANTLY OR IS NECESSARY FOR CONSOLIDATEDFINANCIAL STATEMENTS TO BE CLEAR, INTERPRETABLE AND COMPREHENSIBLE
None.

32.

EVENTS AFTER THE REPORTING PERIOD
None.

33.

NOTES ON THE STATEMENT OF CASH FLOWS

31 December
2022

31 December
2021

Cash on hand
Cash at banks
Demand deposits
Time deposits
Cheques and notes received

36,855
1,082,988,643
203,837,448
879,151,195
60,680,679

28,577457,266,800
108,431,195
348,835,605
96,588,895

Cash and Cash Equivalents as shown in cash flows

1,143,706,177

553,884,272

11,465,891

7,767,675

1,155,172,068

561,651,947

Less: Time deposits over 3 months maturity
Cash and Cash Equivalents

Explanations about the nature and level of risks related to cash and cash equivalents are provided in
Note 29.

81
198 Nuh Çimento 2022 Integrated Annual Report

NOTES ON THE STATEMENT OF CASH FLOWS (cont’d)
As of 31 December 2022 and 2021, maturities of the Group’s time deposits which are less than 3months are stated below:
Currency

Interest rate (%)

31 December 2022

TL
US Dollars
Euro14.00 - 18.50
0.50 - 4.50
1.75 - 3.40

105,370,093
697,158,054
76,623,048
879,151,195

Currency

Interest rate (%)

31 December 2021

TL
US Dollars

14.75 - 23.00
0.15 - 1.75

62,824,346
286,011,259
348,835,605

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

As of 31 December 2022, the maturities of time deposits vary between 3 and 90 days (31 December
2021 – 3 to 90 days). Interest rates on time deposits are fixed.

82

09. ANNEXES 08.

33.

03.

(Amounts expressed in Turkish Lira (TL))

AND
04. STRATEGYMANAGEMENT

AUDITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2022

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSNUH ÇİMENTO SANAYİ A.Ş. AND ITS SUBSIDIARIES199

CORPORATE GOVERNANCE COMPLIANCE REPORTCORPORATE GOVERNANCE COMPLIANCE REPORT (URF)

Yes Partially No Exempt

Irrelevant

Explanation

1.1. FACILITATING THE USE OF SHAREHOLDERS' RIGHTS
1.1.2 - Information and disclosures that may affect the exercise ofshareholder rights are currently made available to investors on thepartnership's corporate website.

X

1.2. THE RIGHT TO RECEIVE AND EXAMINE INFORMATION
1.2.1- The company management has refrained from taking any action thatwould make it difficult to carry out a special audit.

X

1.3. GENERAL ASSEMBLY
1.3.2 - The Company has ensured that the agenda of the General Assembly is
Xclearly stated and that each proposal is submitted under a separate heading.
1.3.7 - Persons who have privileged access to partnership information haveinformed the board of directors to be added to the agenda in order to provide
information on the transactions they have made on their behalf within the scopeof the activity of the partnership in the general assembly.
1.3.8 - Members of the board of directors, other relevant persons, officials andauditors responsible for the preparation of the financial statements wereX
present at the general assembly meeting.
1.3.10- The amounts of all donations and aids and the beneficiaries areincluded in a separate item on the agenda of the General Assembly.
1.3.11 - The General Assembly meeting was open to the public, including thestakeholders and the media, without the right to speak.

There was no such transaction notification.

X

Donations and aids were included in the agenda of the General
Assembly with a separate item. The total amount and the details of
the highest amount of donations are included in the general assembly
information document for the year 2022.

X

X

1.4. RIGHT TO VOTE
1.3.11 - The General Assembly meeting was open to the public, including
the stakeholders and the media, without the right to speak.
1.4.2-The company does not have any shares with privileged voting rights.
1.4.3 - The Company has not exercised its voting rights in the General
Assembly of any partnership with which it is in a mutual participation
relationship, which also brings with it a dominance relationship.

X
X
X

Nuh Çimento does not have a mutual shareholding
relationship that brings with it the relationship ofdominance.

1.5. MINORITY RIGHTS
1.5.1- The Company has paid maximum attention to the exercise of minority rights.

X

1.5.2-Minority rights are also granted to those who have less than one
twentieth of the capital in the articles of association, and the scope of minority
rights has been extended by arranging them in the articles of association.

Minority rights are not granted to holders of less than one
twentieth of the capital with the articles of association,and rights are provided within the framework of thegeneral regulations in the legislation. There was no
demand from the investors to the contrary.

X

1.6. RIGHT TO PROFIT SHARE
1.6.1 - The dividend distribution policy approved by the general assembly isdisclosed to the public on the corporate website of the partnership.
1.6.2 - The profit distribution policy contains minimum information in a clear
way that will allow shareholders to predict the procedures and principles for
distributing the profits that the partnership will receive in future periods.
1.6.3 - The reasons for not distributing the profit and the way of using
the undistributed profit are stated in the relevant agenda item.
1.6.4 - The Board of Directors has reviewed whether a balance has beenachieved between the interests of the shareholders and the interests of thepartnership in the dividend distribution policy.

X
X
X

Dividend has been distributed.

X

1.7. TRANSFER OF SHARES

1.7.1 - There are no restrictions that make the transfer ofshares difficult.

X

2.1. CORPORATE WEBSITE
2.1.1 - The corporate website of the company contains all the elements
included in the corporate governance principle numbered 2.1.1.
2.1.2-Shareholder structure (names, privileges, number and ratio of real personshareholders holding more than 5% of the issued capital) is updated on thecorporate website at least every 6 months.
2.1.4 - The information on the corporate website of the company has been
prepared in foreign languages chosen according to needs, with the samecontent as Turkish.

X
X

X

2.2. ANNUAL REPORT
2.2.1 - The Board of Directors ensures that the annual report fully andaccurately reflects the company's activities.
2.2.2 - The annual activity report contains all the elements containedin the principle numbered 2.2.2.

200 Nuh Çimento 2022 Integrated Annual Report

X
X

The website has been prepared in accordance with thematters specified in the Corporate Governance Principles.
A large part of the site has been prepared so that foreign
investors can use it.

3.1.1- Rights of stakeholders are protected within the framework of relevant
regulations, contracts and goodwill rules.
3.1.3 - Policies and procedures regarding the rights of stakeholders are
published on the corporate website of the company.
3.1.4 - Necessary mechanisms have been established for stakeholders toreport illegal and ethically inappropriate transactions.
3.1.5 - The Company handles conflicts of interest among its stakeholders in abalanced way.

X
X

There is no policy or procedure published on the corporatewebsite related to this issue.

XX

3.2. SUPPORTING STAKEHOLDERS' PARTICIPATION IN COMPANY MANAGEMENT
3.2.1 - Employees' participation in management is regulated by
the articles of association or internal regulations.
3.2.2 - Methods such as surveys/consultations have been applied to obtain theopinions of stakeholders in important decisions that have consequences forthe stakeholders.

X

The participation of the employees in the management is not
regulated by the articles of association or internal regulations.

TO OUR
01. MESSAGE
STAKEHOLDERS

Explanation

CORPORATE
02. OURPROFILEYes Partially No Exempt Irrelevant

3.1. COMPANY POLICY ON STAKEHOLDERS

X

3.3. THE COMPANY'S HUMAN RESOURCES POLICY

3.3.7 - Measures such as procedures, trainings, awareness raising, targets,monitoring and complaint mechanisms have been taken to prevent
discrimination among employees and to protect employees against physical,
mental and emotional ill-treatment within the company.
3.3.8 - The company supports the freedom of association and the effective
recognition of the right to collective bargaining.
3.3.9 - A safe working environment is provided for the employees.

There is no written succession plan.

03.

X
X

X

X

X

X
X

Informational meetings and trainings are held on
health, education, occupational health and safety.

AND
04. STRATEGYMANAGEMENT

X

05. SUSTAINABILITYMANAGEMENT

3.3.1 - The company has adopted an equal opportunity employment policy
and a succession planning for all key managerial positions.
3.3.2 - The criteria for personnel recruitment have been determined in writing.
3.3.3 - The company has a Human Resources Development Policy and in
this context, it organizes trainings for employees.
3.3.4 - Meetings were held to inform employees about the financial
situation of the company, remuneration, career planning, education andhealth.
3.3.5 - Decisions that may affect the employees have been notified to themand their representatives. The opinions of the relevant unions on theseissues were also taken.
3.3.6 - Job descriptions and performance criteria were prepared in detail for all
employees and announced to them.

3.4.1-The company measured customer satisfaction and operated with anunderstanding of unconditional customer satisfaction.
3.4.2 - When there is a delay in processing the customer's requests for the goods
and services purchased, this situation is notified to the customers.
3.4.3 - The company adheres to quality standards for goods and services.
3.4.4 - The Company has controls to protect the confidentiality of sensitive
information of customers and suppliers within the scope of trade secrets.

X
X
X
X

ECONOMIC
06. OURPERFORMANCE

3.4. RELATIONSHIP WITH CUSTOMERS AND SUPPLIERS

4.1. FUNCTION OF THE BOARD OF DIRECTORS
4.1.1-The Board of Directors ensures that strategies and risks do not threaten the longterm interests of the company and that an effective risk management is implemented.

X

4.1.2-Meeting agenda and minutes reveal that the board of directors
discussed and approved the company's strategic goals, determined theresources needed, and audited the performance of the management.

X

OUR ENVIRONMENTALPERFORMANCEX

09. ANNEXES 08.

X

SOCIAL
07. OURPERFORMANCE

3.5. ETHICAL RULES AND SOCIAL RESPONSIBILITY
3.5.1 - The Board of Directors has determined the Code of Ethics andpublished it on the corporate website of the company.
3.5.2- The partnership is sensitive to social responsibility. It has taken
measures to prevent corruption and bribery.

201

Yes Partially No Exempt Irrelevant

Explanation

4.2. PRINCIPLES OF ACTIVITY OF THE BOARD OF DIRECTORS
4.2.1-The Board of Directors has documented its activities and submitted it
to the shareholders' information.
4.2.2-Duties and authorities of the members of the board of directors
are explained in the annual report.
4.2.3 - The Board of Directors has established an internal control system
suitable for the scale of the company and the complexity of its activities.
4.2.4-Information on the functioning and effectiveness of the internal
control system is given in the annual report.
4.2.5 - Duties of chairman of the board of directors and chief executive officer(general manager) are separated and defined.
4.2.7-The Board of Directors ensures the effective functioning of the investor
relations department and the corporate governance committee, and has worked
closely with the investor relations department and the corporate governancecommittee in resolving the disputes between the company and the shareholders
and communicating with the shareholders.
4.2.8 - The Company has taken out a manager's liability insurance for a priceexceeding 25% of the capital, in relation to the damages that the members of
the board of directors may cause during their duties in the company.

X
X
X
X
The chairman of the board of directors and the chief executive officer are not
the same person. However, it is not stated in the articles of association.

X

X

X

4.3. STRUCTURE OF THE BOARD OF DIRECTORS

4.2.7-The Board of Directors ensures the effective functioning of the investor relations
department and the corporate governance committee, and has worked closely with theinvestor relations department and the corporate governance committee in resolving the
disputes between the company and the shareholders and communicating with theshareholders.
4.2.8 - The Company has taken out a manager's liability insurance for a price exceeding 25% of the capital, in
relation to the damages that the members of the board of directors may cause during their duties in the company.

A target and time has not been determined to ensurethat the rate of female members in the Board of
Directors is not less than 25%, and a policy has not yet
been established to achieve these targets. There is one
female member on the Board of Directors.

XX

4.4. FORM OF BOARD MEETINGS
4.4.1 - All board members physically attended most board meetings.

X

4.4.2 - The Board of Directors has defined a minimum period for sending
information and documents related to the agenda items to all members
before the meeting.
4.4.3 - The opinions of the member who could not attend the meeting but who submitted his/her viewsin writing to the board of directors were submitted to the information of the other members.

4.4.4 - Each member has the right to one vote in the board of directors.
4.4.5 - The manner in which the meetings of the board of directors will be held
has been written down with the internal regulations of the company.
4.4.6 - The memorandum of meeting of the board of directors reveals that all
the items on the agenda have been discussed, and the memorandum isprepared in a way that includes dissenting opinions.

X

It is essential that the information and documents related tothe issues to be included in the board of directors meeting aresent to all members before the meeting. However, there is no
in-company regulation for the minimum period.

X

All members of the board of directors are informed at
the beginning of the year on how the meetings of theboard of directors will be held. However, there is no
written in-house regulation specific to this issue.

XX

X

4.4.7 - Members of the board of directors are restricted from taking on other duties outside
the company. Duties assumed by the members of the board of directors outside the company
were presented to the information of the shareholders at the general assembly meeting.

X

Members of the Board of Directors may assume otherduties or assignments outside the company. It is notbound by certain rules and is not limited.

X

Due to the structure of the Board of Directors and due to the
obligations required by the CMB Legislation, one member
necessarily takes part in more than one committee.

4.5. COMMITTEES ESTABLISHED WITHIN THE BOARD OF DIRECTORS
4.5.5 - Each member of the board of directors serves on only one committee.

4.5.6 - The committees invited the people they deem necessary to take theiropinions to the meetings and took their opinions.
4.5.7 - The committees invited the people they deem necessary to take theiropinions to the meetings and took their opinions.
4.5.8 - A report was prepared on the results of the committee meetings andpresented to the members of the board of directors.

X
X

Counseling service was not received.

X

4.6. FINANCIAL RIGHTS PROVIDED TO MEMBERS OF THE BOARD OF DIRECTORS AND MANAGERS WITH ADMINISTRATIVE RESPONSIBILITIES
4.6.1 - The board of directors has conducted a board performance evaluation toevaluate whether it has fulfilled its responsibilities effectively.
4.6.4 - The company did not make any of the members of the board of directors
or managers with administrative responsibility use loans, did not lend or extend
the term of the loan, did not improve the conditions, did not make loans under
the title of personal loan through third parties, or did not give guarantees suchas surety in favor of them.
4.6.5 - The remunerations given to the members of the board of directors andexecutives with administrative responsibility are disclosed in the annual report on
an individual basis.

202 Nuh Çimento 2022 Integrated Annual ReportX

No special study has been carried out for the purpose of
performance evaluation at the level of the Board of
Directors.

X

In accordance with the Law on the Protection of Personal
Data No. 6698, it is disclosed as the total amount instead ofon a per-person basis.

X

CORPORATE GOVERNANCE INFORMATION FORM
1. STAKEHOLDERS
1.1. Facilitating the Use of Stakeholder Rights

Number of investor conferences and meetings held by the company throughout the year

None.

TO OUR
01. MESSAGE
STAKEHOLDERSCORPORATE GOVERNANCE INFORMATION FORM

Unavailable.

Links to KAP announcements regarding transactions without the approval of majority of
independent members or unanimous consent of participants, within the scope of principle 1.3.9

There is no process of this nature.

Links of KAP announcements related to related party transactions carried out
within the scope of article 9 of the Corporate Governance Statement (II-17.1)

There is no process of this nature.

Links of KAP announcements related to widespread and continuous transactions carriedout within the scope of article 10 of the Corporate Governance Statement (II-17.1)

There is no process of this nature.
According to Article 26 of our Articles of Association, 5% of the remainder after the firstdividend is allocated as a donation to the Nuh Çimento Education and HealthFoundation, which is the founder of our company, to be paid in the form and time
determined by the Board of Directors.

Link to the KAP announcement containing the minutes of the general assembly
meeting where the policy on donations and benefits was adopted

https://www.kap.org.tr/tr/Bildirim/920668

Article number in the articles of association regulating the participation of
stakeholders in the general assembly

Article 15

Information about the stakeholders participating in the general assembly

It was held in public, including stakeholders and the media, without the right tospeak at the General Assembly.

1.4. Rights to Vote-

1.6. Right to Profit ShareThe name of the section where the profit distribution policy is located on the corporate website

www.nuhcimento.com.tr/sikca-sorulan-sorular/

If the board of directors proposes not to distribute the profit to the general assembly, thereasons for this and the text of the minutes related to the agenda item of the general
assembly indicating the manner of use of the profit that has not been distributed-

In case the board of directors proposes not to distribute profits to the general assembly, thelink to the KAP announcement containing the relevant general assembly minutes-

General Assembly Meetings
Date of the General Assembly

25.03.2021

Number of additional explanation requests submitted to the company regarding the general assembly agenda

0Participation rate of shareholders to the general assembly
The proportion of shares directly represented
The proportion of shares represented by proxy

63,17%
0,004%
63,17%The name of the section on the company's corporate website where the minutes of thegeneral assembly meeting, showing the positive and negative votes for each agenda item

https://www.nuhcimento.com.tr/sirket-bilgileri/

The name of the section on the corporate website containing all the questions
posed at the general assembly meeting and the answers provided to themhttps://www.nuhcimento.com.tr/sirket-bilgileri/

Item or paragraph number of the minutes of the general assembly meeting related to related parties

Bulunmamaktadır.

The number of people who notified the board of directors and had the opportunity
to access the partnership information in a privileged way (Insider list)

65

Link to the general assembly notification published on KAP

https://www.kap.org.tr/tr/Bildirim/920668

ECONOMIC
06. OURPERFORMANCENo

SOCIAL
07. OURPERFORMANCE

1.5. Minority Rights
Whether the minority rights are extended in the company's articles of association (interms of content or ratio) or not
If the minority rights have been extended in terms of content and proportion, please
specify the number of the relevant articles of association.

No44,13%OUR ENVIRONMENTALPERFORMANCE

Whether there is a concession about the vote
If there is a concession in the vote, the privileged shareholders and the voting ratios
The partnership ratio of the largest shareholder

09. ANNEXES 08.

The name of the section on the company's corporate website containing the policy
on donations and benefits

03.

https://www.kap.org.tr/tr/Bildirim/914637

AND
04. STRATEGYMANAGEMENT

1.3. GENERAL ASSEMBLY

The link of the KAP announcement in which the information requested underPrinciple 1.3.1 (a-d) is announced
Whether the documents related to the general assembly meeting are presented
simultaneously in Turkish and in English.

05. SUSTAINABILITYMANAGEMENT-CORPORATE
02. OURPROFILE1.2. The Right to Receive and Examine Information
Number of special auditor requests
The number of special auditor requests accepted at the general assembly meeting2032. PUBLIC DISCLOSURE AND TRANSPARENCY
2.1. Corporate Website
On the corporate website 2.1.1. the names of the departments containing theinformation requested in the numbered corporate governance principle

There is an “Investor Relations” section on our website containing the issues
specified in the CMB Corporate Governance Principles

The section on the corporate website containing the list of real personshareholders who own more than 5% of the shares directly or indirectly

There is no real person who owns more than 5% of the shares as a shareholder.

Languages in which the corporate website is prepared

Turkish and English

2.2. Annual Report
2.2.2. page numbers or section names in which the information specified in the numbered corporate governance principle is included in the annual reporta) The duties performed by the members of the board of directors and managers outside thecompany and the page number or section name containing the independence statements of themembers

Board of Directors and Committees / Structure and Formation of the Board of Directorsb) Page number or section name of the information related to the committees
established within the body of the Board of Directors

Board of Directors and Committees / Structure and Formation of the Board of Directorsc) The page number or section name of the information about the number of meetings of theboard of directors during the year and the participation status of the members in the meetings

The Board of Directors and Committees / Principles of Activity of the Board of Directorsç) The page number or section name of the information about cliques of legislativechanges that may significantly affect the company's activities

Other Mattersd) Page number or section name of information about important lawsuits filed
against the company and their possible consequences

The Company's Activities and Important Developments Related to the Activitiese) The page number or section name of the information about conflicts of interest
between the Company and the institutions from which it receives services such as
investment consultancy and rating, and the measures taken to prevent them

Other Mattersf) Page number or chapter name of information about mutual subsidiaries where
the direct participation rate in the capital exceeds 5%

There is no mutual subsidiary relationshipg) Page number or chapter name of information about corporate social
responsibility activities related to employees' social rights, vocational training andother company activities that have social and environmental consequences

The Company's Activities and Important Developments Related to the Activities

3. BENEFICIARIES
3.1. Company Policy Regarding Stakeholders
The name of the section on the corporate website where the compensation policy is locatedNone.

The number of judicial decisions finalized against the company due to violation of employee rights

11

Title of the official related to the notification mechanism

Committee Responsible for Audit and Audit ChairmanshipInformation on access to the company's notification mechanism

https://www.nuhcimento.com.tr/iletisim/

3.2. Supporting the Participation of Stakeholders in the Management of the Company
The name of the section on the corporate website containing the internal
regulations related to the participation of employees in management bodies

None.

Administrative bodies in which employees are represented

Blue collar employees are subject to a Collective Bargaining Agreement, andthere is no management body in which our other employees are represented.

3.3. The Company's Human Resources Policy
The role of the board of directors in the development of a succession plan for key
executive positions

None.

The name of the section where the human resources policy containing equal opportunity and personnel
recruitment criteria is located on the corporate website, or a summary of the relevant articles of the policy

None.

Whether there is a share acquisition plan or not

None.

The name of the section where the human resources policy, which includes measures
to prevent discrimination and ill-treatment, is located on the corporate website, or asummary of the relevant articles of the policyNone.

The number of judicial decisions finalized against the company due to liability related to occupational accidents

5

3.5. Ethical Rules and Social Responsibility
The name of the section on the corporate website where the code of ethics policy is located

The name of the section where the corporate social responsibility report is located on
the corporate website. If there is no corporate social responsibility report, themeasures taken on environmental, social and corporate governance issues
Measures taken to combat all forms of corruption, including retaliation andbribery

204 Nuh Çimento 2022 Integrated Annual Reporthttps://www.nuhcimento.com.tr/is-etigi-kurallari/
The Company's Activities and Important Developments Related to the Activities
Internal audit and human resources units are working in coordination.

TO OUR
01. MESSAGE
STAKEHOLDERS

4.2. Principles of Activity of the Board of Directors
None.
No
Yes
There has been no transfer of authority between the members of the Board of Directors

The number of reports submitted by the internal control unit to the supervisory board
or other relevant committees

None.

The name or page number of the section where the evaluation of the effectivenessof the internal control system is included in the annual report

Risks and Evaluation of the Board of Directors

Name of the chairman of the board of directors

Tevfik Bilgin

Name of the executive chairman / general manager

Kamil Gökhan Bozkurt (CEO) / Halim Tekkeşin (General Manager)

Link to the KAP announcement stating the reason why the chairman of the board of
directors and the executive chairman/general manager are the same person-

The link to the KAP announcement that the defects of the members of the board of
directors during their duties and the damage they will cause in the company are
insured at a price exceeding 25% of the company's capital

Liability insurance has been provided. There is no KAP notification.

The name of the section on the corporate website where information is provided about thediversity policy aimed at increasing the proportion of female board members

No policy

The number and ratio of female members

One person -7%

-

Yes

-

-

-

Not an independent
member---Nurcan Yurtbilir

Not an Executive
Officer

Not an independent
member---Sinan Yurtbilir

Not an Executive
Officer

Not an independent
member---Ahmet Faik Paralı

Not an Executive
Officer

Not an independent
member---Muharrem
Eskiyapan

Not an Executive
Officer

Not an independent
member---Rahmi Çuhacı

Not an Executive
Officer

Not an independent
member---YılmazKüçükçalık

Not an Executive
OfficerIndependent
member---Vahdettin Ertaş

Not an Executive
OfficerIndependent
member

EvaluatedNo

Yesİsmail Köksal

Not an Executive
OfficerIndependent
member

EvaluatedNo

Yes

Aclan Acar

Not an Executive
OfficerIndependent
member

Evaluated

No

Yes

Tevfik Kınık

Not an Executive
OfficerIndependent
member

Evaluated

No

Yes

Elif Bilgehan
Müftüoğlu

Not an Executive
OfficerIndependent
member

Evaluated

No-

Tevfik Bilgin

Not an Executive
Officer

Not an independent
memberFikret Eskiyapan

Not an Executive
Officer

Not an independent
memberMehmetEskiyapan

Not an Executive
Officer

Whether the Independent Member has been Evaluated by
the Nomination Committee

05. SUSTAINABILITYMANAGEMENT-

Whether He/She Is
an Independent
Member Or Not

ECONOMIC
06. OURPERFORMANCE

Whether He Has at Least 5 Yearsof Experience in the Field ofAudit, Accounting and/orFinance

Whether He/She
Is an Executive
Officer Or Not

SOCIAL
07. OURPERFORMANCE

Whether There Is a
Member Who Has Lost
His Independence

Name/Surname of
the Member of theBoard of Directors

OUR ENVIRONMENTALPERFORMANCE

Structure of the Board of Directors

AND
04. STRATEGYMANAGEMENT

03.

The names of the members of the board of directors whose authority has beentransferred to him by the distribution of duties and the content of these powers

09. ANNEXES 08.

Date of the latest board of directors performance evaluation
Whether independent experts are used in the performance evaluation of the boardof directors
Whether all members of the board of directors have been acquitted

CORPORATE
02. OURPROFILE

4. BOARD OF DIRECTORS - I

205

4. BOARD OF DIRECTORS-II
4.4. The Form of the Board of Directors Meetings

The number of board of directors meetings held physically during the reporting
periodAverage attendance rate at board of directors meetings
Whether an electronic portal is used to facilitate the work of the board of
directors
How many days before the meeting information and documents are presented tothe members in accordance with the working principles of the board of directors
The name of the section on the corporate website containing information about the internal
regulations in which it is determined how the board of directors meetings will be held

20
83%
Yes
1-10 days
None.

The upper limit set out in the policy limiting members from taking other duties outside the company does not have any restrictions in this direction.

4.5. Committees Established within the Body of the Board of Directors
The page number or the name of the relevant section containing information
about the committees of the board of directors in the annual report

Board of Directors and Committees / Structure and Formation of the Board of Directors

Link to the KAP announcement in which the working principles of the committee were announced

https://www.kap.org.tr/tr/Bildirim/944493

Board of Directors Committees -I
Names of the Committees of the Board of Directors

Corporate Governance Committee
Corporate Governance Committee
Corporate Governance Committee
Corporate Governance Committee
Corporate Governance Committee
Corporate Governance Committee
Corporate Governance Committee
Nomination Committee
Nomination Committee
Nomination Committee
Nomination Committee
Nomination Committee
Audit Committee
Audit Committee
Audit Committee
Audit Committee
Audit Committee
Early Detection of Risk Committee
Early Detection of Risk Committee
Early Detection of Risk Committee
Early Detection of Risk Committee
Early Detection of Risk Committee

The Name of the Committee Mentioned in
the First Column as "Other"-Name-Surname of the Committee
Members

Whether He/She Is the
Chairman of the Committee

Whether He/She is a Member of theBoard of Directors or Not

Vahdettin ERTAŞ
İsmail KÖKSAL
Aclan ACAR
Mehmet ESKİYAPAN
Sinan YURTBİLİR
Rahmi ÇUHACI
Serap AKTAŞ
Vahdettin ERTAŞ
İsmail KÖKSAL
Fikret ESKİYAPAN
Mehmet ESKİYAPAN
Sinan YURTBİLİR
Vahdettin ERTAŞ
İsmail KÖKSAL
Elif Bilgehan MÜFTÜOĞLU
Aclan ACAR
Tevfik KINIK
Vahdettin ERTAŞ
İsmail KÖKSAL
Tevfik KINIK
Ahmet Faik PARALI
Muharrem ESKİYAPAN

Yes
No
No
No
No
No
No
Yes
No
No
No
No
Yes
No
No
No
No
Yes
No
No
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
Not a member of the board of directors

Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board
Member of the board

4. BOARD OF DIRECTORS-III
4.5. Committees Formed within the Body of the Board of Directors-II
Specify the section of the annual report or corporate website where information isprovided about the activities of the audit committee (page number or name of thesection)Board of Directors and Committees / Structure and Formation of the Board of Directors

Specify the section of the annual report or the corporate website where information is provided about theactivities of the corporate governance committee (page number or name of the section)

Board of Directors and Committees / Structure and Formation of the Board of Directors

Specify the section of the annual report or the corporate website where information is provided about theactivities of the nomination committee (page number or name of the section)

Board of Directors and Committees / Structure and Formation of the Board of Directors

Specify the section of the annual report or corporate website where information is provided about theactivities of the early detection of risk committee (page number or name of the section)

Board of Directors and Committees / Structure and Formation of the Board of Directors

Specify the section of the annual report or corporate website where information is provided about theactivities of the remuneration committee (page number or name of the section)

The activities of the Remuneration Committee are carried out by the Corporate Governance Committee.

4.6. Financial Rights Provided to Members of the Board of Directors and Managers with Administrative Responsibilities
Page number or section name of the annual report, where information is provided about
operational and financial performance goals and whether they have been achieved

The name of the section of the corporate website containing the remuneration
policy for executive and non-executive members
The page number or section name of the annual report, in which the fees given to themembers of the board of directors and managers with administrative responsibility,
as well as all other benefits provided,

206 Nuh Çimento 2022 Integrated Annual Report

Financial Situation
None.
Related Party Disclosures are indicated in Footnote No. 5 of the financial statements.

1

Aday Gösterme Komitesi

-

100%

40%

1

Denetim Komitesi

-

100%

100%

5

Riskin Erken Saptanması Komitesi

-

100%

60%

6

TO OUR
01. MESSAGE
STAKEHOLDERS43%

CORPORATE
02. OURPROFILE

86%

03.

-

AND
04. STRATEGYMANAGEMENT

Kurumsal Yönetim Komitesi

05. SUSTAINABILITYMANAGEMENTThe Number of Reports that theCommittee Submits to the Board of
Directors about Its Activities

ECONOMIC
06. OURPERFORMANCEThe Number of Physical
Meetings Held by the Committee

SOCIAL
07. OURPERFORMANCEThe Ratio of Independent Membersin the Committee

OUR ENVIRONMENTALPERFORMANCEThe Name of the Committee Mentioned
in the First Column as "Other"09. ANNEXES 08.

Committees of the Board of Directors-II
Names of the Committees of the Board of Directors

207

PROFIT SHARE DISTRIBUTION
NUH ÇİMENTO SANAYİ A.Ş Profit
Distribution for the year 2022 (TL)
1
2

PAID-IN / ISSUED CAPITAL
General Legal Reserve Fund (According to Legal Records)- Primary Legal Reserve Fund
- Secondary Legal Reserve Fund

150,213,600,00
201,491,597.56
30.042,720.00
171,448,877.56

If there is a concession in profit distribution in accordance with the articles of association, information about
this concession
According to the
CMB
3
4
5
6
7
8
9
10
11

Profit for the Period
Taxes (-)
Net Profit for the Period (=)
Losses from Previous Years (-)
General Legal Reserve (-)
NET DISTRIBUTABLE PROFIT FOR THE PERIOD
Donations Made During the Year (+)
Net Distributable Profit for the Period with Added DonationsFirst Dividend to Shareholders

2,086,618,104
2,086,618,104

2,086,618,104
9.096.922
2,095,715,026
427,399,683-Cash- Without Charge
12
13

14
15
16
17
18
19
20

-

None
According to Legal
Records (YK)
1 ,032,730,675
1 92,952,669
8 39,778,006
8 39,778,006
8 39,778,006
4 27,399,683

427,399,683
427,399,683-TotalDividends Distributed to Holders of Preferred Shares
Other Dividends Distributed-Members of the Board of Directors-Employees-Persons Other Than the Shareholder
Dividend Distributed to the Holders of Usufruct Shares
Second Dividend to Shareholders
General Legal Reserve Fund
Status Reserves
Special Reserves
EXCESS RESERVEOther Resources That are Intended to Be Distributed

427,399,683
4 27,399,683--

2 63,582,877
68,347,188
80,448,258-

263,582,877
6 8,347,188
1,327,288,356-

Note: The difference between the period profit according to the legal records and the period profit according to the CMB will also be transferred to the excess reserves.

TABLE OF DIVIDEND RATIOSGROUPTOTAL DISTRIBUTED DIVIDENDS

CASH (TL)NETWITHOUT CHARGE(TL)

TOTAL DISTRIBUTED DIVIDENDS /NET DISTRIBUTABLE PROFIT FOR THE
PERIOD

RATE (%)

PROFIT SHARE CORRESPONDS
TO A SHARE WITH A NOMINALVALUE OF 1 TL

AMOUNT (TL)

RATE (%)(*)

621,884,304

-

29.80

4,1400414.0000

Total

621,884,304

-

29.80

4,1400414.0000* If the profit share of the dividend is distributed to the persons (for non-resident companies, excluding those who receive dividends through a workplace or permanent
representative in Turkey) within the scope of Articles 94/6-b-i and ii of the Income Tax Law, 10% withholding tax will be applied on the gross amount (see also double taxation
avoidance agreements) The amount of the profit share that corresponds to the nominal value of TL 1 for the shareholders who have a legal entity is TL 4.60.

At the board of directors meeting dated January 31, 2023, our company decided to propose to the ordinary general
assembly that the distribution of profits be made as above in accordance with the Company's Articles of Association and
CMB Legislation, and the date of distribution of profits be 27.02.2023; The solo income statement prepared according to
the legal records for 2022 net profit is over TL 839.778.006.

208 Nuh Çimento 2022 Integrated Annual Report

209

09. ANNEXES 08.

OUR ENVIRONMENTALPERFORMANCESOCIAL
07. OURPERFORMANCEECONOMIC
06. OURPERFORMANCE

05. SUSTAINABILITYMANAGEMENT

AND
04. STRATEGYMANAGEMENT03.

CORPORATE
02. OURPROFILETO OUR
01. MESSAGE
STAKEHOLDERSWE PRODUCEFOR THE WORLDREPORT CONTACTS
Sustainability and Environment Manager

Sustainability and Reporting Consultant
Sercom Consulting

Design and Implementation

Hacı Akif Mahallesi
D-100 Karayolu Caddesi No:92
Hereke 41800 Körfez Kocaeli+90 262 316 20 00
www.nuhcimento.com.tr@nuhcimento_grubu@nuhgrup@nuhcimentogrubu

Nuh Grup

Nuh Çimento Grubu