Çimsa Çimento Sanayi ve Ticaret : Çimsa 2021 Integrated Annual Report Summary

Çimsa's Product Range

ÇİMSA

CSC BV

7

5 Integrated Plants

5

1 Integrated Plant

1 Grinding Station

1 Grinding Station

1 Terminal

3 Terminals

2021 Key Performance Indicators1

2 0 2 1 I N T E G R A T E D A N N U A L R E P O R T

Management

Integrated Plants, Grinding	Summary	Integrated Plant, Grinding
Station and Terminal	Station and Terminals
Production capacities	9.5 million tons/year	Production capacities
6.9 million tons/year	0,.56 million tons/year
clinker	cement	clinker

TL 3,745 million

Total Revenue (80% increase compared to 2020)

TL 1,017 million

Net Profit (5.8 times increase compared to 2020)

TL 513 million

Operational Profit (71% increase compared to 2020)

TL 280.5 million

Sustainable Products Revenue (67% increase compared to 2020)

TL 8.7 million

Sustainability Focused R&D/ Innovation Investment (371% increase compared to 2020)

12.4%

Alternative Fuel Usage Rate

23 kg CO2/ton Çimentomsu (Grey)

Reduction in Net Specific CO2 Emissions (3.1%)

"I am delighted to note that Sabancı Group, which Çimsa is a part of, has committed to expand its circular business model practices on an end-to-end basis to reach the target of "Net Zero" greenhouse gas emissions by 2050. Our group was the first Turkish group to announce such a bold and far-sighted commitment. The contribution of our subsidiaries to this group-wide commitment is of

4 million m3	in	1.1 million tons/year
ready mixed concrete production capacity*	cement
ÇİMSA AND CSC BV (Total)	Çimsa
12	2.515	10,5 million tons
employees	cement (tons/year)
2021	Total Workforce	7,4 million tons
Integrated Plants, Grinding
(Including
Stations and Terminals	subcontractor)	clinker (tons/year)

*Number of active ready mixed concrete stations

MAIN STAKEHOLDERS WE CREATE VALUE

Employees	Shareholders and	Customers	Local Community	Suppliers	Public Institutions
	Investors		and Public

	OUR STRATEGIC
	PRIORITIES	OUR MISSION
OUR GOAL
Protect and grow	To create value for all our stakeholders
To become an international
as a company that swiftly produces
cement and	the core
solutions which will meet the differing
construction materials company
Transform	needs of our customers and employees in
which leads the industry for a		an ever changing world with the products
livable future		and services we have developed together
		with our business partners in order to
		ensure sustainability of growth

1	Sustainability			Global Culture and Organisation 2
			TEMELLERİMİZ
	Sincerity	Passion	Courage	Continuous	Inclusive
	Development
			OUR VALUES

USD 13.6 million

Total Investment (2 times increase compared to 2020)

5,6 million tons

Cement Production

6,9 million tons

Clinker Production

1,94 million m3

Ready Mixed Concrete Production

1,100 kişi

Çimsa Employee

4.33

Accident Frequency Rate (Cement) (6% decrease compared to 2020)

7.13

Accident Frequency Rate (Ready Mixed Concrete) (33% decrease compared to 2020)

TL 211 million

Wages Paid to Employees

137,459

Person x Hours of Training

16% increase

in the Number of Female Employees

22%

Ratio of Female Employees in New Recruitments

TL 8.6 million	160,168 ton
CO2 Savings
Sustainability and Environmental
Investment/Expenditure	34,011 MWh
1.14 million ton	Renewable Energy Use
Alternative Raw Material Use	90%
(Alternative Raw Material Usage
Recycled Waste Rate
Rate: 6%)

10 Sustainable Products2

1. 2021 performance metrics cover Çimsa's domestic operating results.
2. Products with a clinker utilization rate below 80% in cement group products were accepted.

TL 530,000

Corporate Social Responsibility Investment

1,29

SROI of Yaz Çocukları Project

1,746

Number of Actively Worked Suppliers (12% increase compared to 2020))

75%

Local Supplier Usage

tremendous importance. I believe that Çimsa, with the support of the knowledge and experience it has built in the cement sector, will provide an increasing degree of input to this goal and will achieve new success stories."

Burak ORHUN

Message from the Chairman

"Our revenue increased by more than 80% YoY to reach TL 3,745 million in 2021 while we boosted our operating profit by 73% compared to the previous year to TL 513 million. We managed to bring down our Net Financial Debt/EBITDA multiple from 4.0 at the beginning of 2020 to 1.6 in 2021 thanks to the growing operating profit, cash management actions and the strategic decisions taken."

Umut ZENAR

CEO

3 The accident frequency rate covers the sum of direct employment and permanent subcontractor employees.

Our Business Model and Strategy

Financial Capital

TL 3,745 netmillionsales	USD 13.6 investmentmillion
revenue	expenditure
Manufactured Capital
million tons
11.4 use of natural raw materials
Intellectual Capital

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		Production			Impact
	GREY CEMENT PRODUCTION		Occupational Health
		and Safety
	4.2 million tons
		ACCIDENT FREQUENCY RATE*
	WHITE CEMENT PRODUCTION
		4.3 (cement)
	1.4 million tons
		7.1 (ready mixed concrete)
OUTCOME	CALCIUM ALUMINATE	OUTCOME
CEMENT PRODUCTION
45.7 thousand tons	Environment
		TOTAL CO2 EMISSION	*
MAIN	CLINKER PRODUCTION	MAIN	6.1 million tons CO2
6.9 million tons
	READY MIXED CONCRETE			WATER CONSUMPTION
			2.7 million m3
	PRODUCTION
	1.9

Alternative Fuel Usage Rates (%)

40

								35
					22
				12.4
8.7	6.8	7.5	7.8
				2021
2017	2018	2019	2020	2022	2025	2030

Specific Emission Intensity

Çimsa's Contribution to Goals and Sustainable Development Goals

FOCUS	KEY PERFORMANCE	BUSINESS	UNIT	BASE YEAR:	2021	2025	2030
INDICATORS	LINE	2020
						0	0
	Zero Fatal Accidents	All	# person	0	0
Occupational Health
Reducing the lost time									8		9		3
and Safety		(Fat+LTI)/1 M
			2	0
	injury frequency rate	All	4.57	4.3
	working hour
	(LTIFR)
Sustainable Products	Increasing the ratio of		% sustainable
sustainable product and		product
Cement	7.6%	7.8%	20%	>50%		9		11		12		13
and Services	services income to total	income /net
	income		income
	Reduction of net specific
	CO2 emissions on a					12%	22%
	cementitious product	Cement	%	0	2.4%
	basis
	(Base year: 2020)
	Increasing the rate of

OUR INPUTS	million
TL 8.7 R&D expenditure
Human Capital

1,100 employees

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	million m3	RAW MATERIALS FROM
COMPLETED R&D PROJECT	QUARRY
5	6.3million tons
	Contribution

Grey Cementitious Net Specific CO2 Emission (kg CO2/ton cementitious)

White Cementitious Net Specific CO2 Emission (kg CO2/ton cementitious)

904	894	910	908
882			893
			801
754	766	759	736	723
711
			710
				688

Climate Crisis Actions alternative fuel use	Cement	%	7.8%	12.4%	35%	40%
8		9		11
and Circular Economy
						12	13
Reducing the amount
of specific cement	All	kWh/cement	44.0	44.0	36.0	30
production electrical
energy
Reducing specific water		m3/tons
Cement	0.38	0.36	0.35	0.3
consumption	cement

Social and Relationship Capital

TL 530 thousandinvestment

Natural Capital

12.4% usage rate*	1.14 alternative raw
alternative fuel	million tons
	material use

*Grey cement production

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	Economy		Employees
	TAX		WAGES
	TL 93 million		TL 211 million
	EXPORT (GROSS SALES)		TRAINING
OUTPUTS	TL 2,135 million		137,459personxhours
SUPPLIERS
1,746
MAIN
Investors		Society
	OPERATIONAL PROFIT		YAZ ÇOCUKLARI*
	TL 646 million		SROI 1.29
	NET PROFIT (PARENT COMPANY)		ACCESS
	TL 1,017 million		1,972 people accessed

600

2017

2018

2019

2020

2021

2022

2025

2030

Specific Water Consumption (m3/ton cement)

	0.38
0.35	0.36	0.35

0.30

		2021
2019	2020	2025	2030

	Increasing the employee	All	%	62%	-	70%	80%
	engagement survey score
Employee Experience
												5
							8		10
	Increasing the rate of	All	%	17.4%	20%	25%	30%
	female employees 2
	Increasing the number of
Contribution to Society	vulnerable groups (youth,					5,000	10,000
women, disabled, etc.)	All	# person	50	1,972						10
	reached through inclusion
	programs
Governance	Raising ESG rating scores 3	All	%	46	-3	80	90
16	17
	Increasing the level of
Digitalization	All	%	40	44	60	80		8		9		11		13
digital maturity

Cimsa Sabanci Cement BV, the Company's subsidiary, is not included in the scope of the target set.

1. Employee Engagement Survey is conducted once every 2 years.
2. Female white-collar employee rate

³ The rating score for 2021 has not yet been announced.