Vodafone TurkeySustainabilityReport2013-2014

Vodafone

Contents

4 VodafoneTurkey

5 OurContributiontoEconomy

6 OurApproachtoSustainability

11 OurCustomersandSociety

18 Innovation

19 BaseStationsandHealth

20 Environment

24 OccupationalHealthandSafety

28 CorporateSecurity

30 ResponsibleSupplyChain

31 OurEmployees

37 OurPerformanceinAchievingObjectives

41 VodafoneTurkeyFoundation

49 PrinciplesofReporting

50 GRIG4“Core”ContentIndex

56 IndependentAssuranceStatement

Our fourth Sustainability Report fulfils the requirements stated in the GRI G4 "core" level.

About the Report

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We acknowledge the fact that our long-term corporate success depends on our ability to offer solutions that create transformation and change as well as our ability to operate in a responsible and ethical manner. In line with this principle, we hereby issue our fourth Sustainability Report in order to maintain interaction with our stakeholders and declare our Company’s performance transparently. This Report focuses on the major reflections of our efforts to create sustainable value on our business models, the environment, society and our employees.

First Report in Compliance with GRI G4Contents of our previous sustainability reports were based upon the G3 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI). In order to take a further step in our reporting performance, this year we prepared a report that meets the requirements of GRI G4 “core” level and we obtained “Materiality Matters” check from GRI. Although the scope of the Report does not present major difference compared to the previous ones, we reconsidered the sustainability elements throughout our Company and supply chain.

Scope of the ReportWe drew the scope of the Report in line with the material and preferred issues stated by our key stakeholders – namely, our customers, employees, regulatory bodies, non-governmental organizations, and the society. Based upon our sustainability strategy, we included our practices and performance in 2013-14 fiscal year in terms of material environmental, social, economic, and ethical issues identified in cooperation with our stakeholders. Our Report also includes targets for the next fiscal year and performance evaluation for our previous targets. Unless mentioned otherwise, all data in the Report cover the fiscal year of 1 April 2013-31 March 2014.

Boundaries of the ReportIn this Report, “Vodafone Turkey”, “Our Company” and “We/Us” phrases have been used to refer to “Vodafone Turkey Group Companies”. Vodafone Turkey Group Companies refer to the following companies which are included in the consolidated financial statement: Vodafone Dağıtım A.Ş., Vodafone Teknoloji A.Ş. (OKSİJEN), Vodafone Net İletişim Hizmetleri A.Ş., Vodafone Holding A.Ş., Türkiye Vodafone Vakfı, Vodafone Bilgi ve İletişim Hizmetleri A.Ş., Vodafone Servis Hizmetleri A.Ş., and Vodafone Mobile Operations Limited. Unless mentioned otherwise, the Report covers all of these companies without any companies omitted. Regarding Vodafone Mobile Operations Limited (in Cyprus), only its financial data is included in the Report.

Independent Assurance Report This year we continued to implement our sustainability management systems and reporting process in parallel with the AA1000 Assurance Standard devised in line with the principles of transparency and accountability. We have identified the value-creating material environmental, social, economic, and ethical issues that are preferred by our Company and key stakeholders through our sustainability-based stakeholder dialogue mechanisms. An independent auditing company provided assurance services stating that the information in this report is identified and reported in accordance with the AA1000 Assurance Standard. Selected GRI G4 indicators were also audited. The statement of the mentioned audit is presented on page 56 of this Report, together with audit results of the selected indicators.

We appreciate your opinion! YourfeedbackonthisReportisvaluabletous.Youarewelcometoshareyouropinionsandsuggestionsviae-mail:surdurulebilirlik@vodafone.com

Vision, Mission, Values

Our Vision: Providingtrustedanduninterruptedbroadbandconnectiontoeverypersonandeverycompanyforabetterfuture.

Our Mission: Our Values: LeadingdigitaltransformationinTurkey.

Weprovidefast,high-quality,plainandreliableserviceswhilehelpingourcustomersenjoytheopportunitiesinlifeandrealizetheirpotentials.Wemoveforwardtohelpourcustomersseethatweareacustomer-oriented,innovativeandcompetitiveinternationalcompanywithlocalroots.

G4-17

The beliefs, aspirations and concerns of our diverse stakeholders shape our performance as much as any business decision. Everyone we deal with – our customers, shareholders, partners, suppliers, employees, elected representatives, regulators, NGOs and the media – rightly expects everyone at Vodafone to act responsibly and with integrity at all times. Financial results alone are not enough: the societies and communities within which we operate want companies to focus on enhancing lives and livelihoods, not just enhancing returns to their shareholders. Overlooking that expectation would risk undermining our prospects for long-term value creation.

Our core business is founded on a powerful social good: we exist to help more than 430 million customers in 27 countries communicate, share, create, learn and grow. The rapid expansion of communications networks is having a profound impact on the way people manage their daily lives. This leads to significant social consequences: for example, as we explain in a section in this report, mobile is enormously empowering for women and farmers, in different but equally important ways.

High-speed data networks are also changing the way companies and public sector organisations operate, enhancing productivity and effectiveness and, in many cases, reducing energy needs, thereby helping to address global warming. Our Vodafone Group Sustainability Report highlights our continuing efforts to reduce our own operational energy consumption and CO2 emissions, as well as how our technologies are enabling our customers to reduce their own climate change impact.

This report looks at the different ways in which we are helping our customers to respond to the challenges they face, as well as how we manage our operations responsibly and conduct our business in an ethical and transparent way. We hope you find this report is informative and we look forward to further discussions over the year ahead.

Vittorio ColaoChief Executive, Vodafone Group Plc

2 Vodafone Turkey SustainabilityReport2013-2014

We aim to lead digital transformation of Turkey.

Message from Vittorio Colao CEO, Vodafone Group Plc

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Our Global Network

OpCosPartnerMarketsPartnerAffiliatesStrategicPartner

The 21st century is an era of rapid changes in which lifestyles and business models become different than before every single day, accompanied by economic, social and political developments. Enterprises need to reconsider their responsibilities towards people and societies in this era of change. Mobile communication has become the most widespread modern technology for offering solutions and changing lives. In full awareness of the fact that the potential of mobile communication is now an important tool for development, we, as Vodafone Turkey, have launched the “Digital Transformation Movement” with the mission of realizing this potential and inspiring whole Turkey for a better future with communication technologies. With this program that aims to achieve end-to-end digital development in Turkey, we aspire after taking our country to the global league in mobile communication and digitalization.

As a global player in the telecommunication industry, acknowledged as the driving force behind economic and social development, we are also aware of our major responsibility in terms of sustainability, as well as our responsibility in pioneering the digital transformation. Vodafone Turkey considers sustainability as an integral part of its fundamental business strategies. Our aim is to improve the welfare of our society with our products, services and technologies as well as to support an environment-friendly economic growth. In line with these aims, we implement a number of important projects that contribute to sustainable development through mobile communication technologies.

Within the framework of our vision, “Technology in the Service of Life”, we devise corporate social responsibility projects under the umbrella of the Vodafone Turkey Foundation, with the aim of offering solutions to social needs and thus of creating social change. Women First Program, which is a social business model launched in April 2013 to bring products, services, and projects for women together for the first time in Turkey, is the most concrete reflection of this aim. As a program initiated to improve the presence of women in the social and economic environment and to offer equal opportunity especially in employment through technology, we, as Vodafone Turkey, have reached 75,000 female customers. 4,700 ads were issued in Vodafone Women First Shop opened free of charge on sahibinden.com –Turkey’s largest ad and shopping website - and more than 240,000 people saw these ads.

We have also launched the Vodafone My Business Partner program with the vision of leading the digital transformation as the reliable technology partner of enterprises in Turkey. This program especially offers competitive solutions in machine-to-machine (M2M) communication. As Vodafone Turkey, we adopt M2M as an area that brings future technology to today’s people and pioneer in improving the quality of life thanks to the efficiency improvement offered by M2M. Vehicle and fleet surveillance systems that we developed using M2M technology help companies to reconsider 60 percent of their operational costs and thus to save up to 20 percent in fuel.

As a company that best understands the key role of information and communication technologies in preventing global climate change and protecting the environment, we possess the best equipment, talent and the strongest will to provide solutions. We have absolute belief in solutions focused on information and communication technologies in combatting climate change and protecting the environment and we work towards this end. By using telecommunication network equipment, data centres and buildings that consume less energy, we implement a variety of solutions in energy and waste management.

In terms of sustainable development, Vodafone is an institution that develops mobile communication solutions with proven results. Therefore we attach special importance to this issue in every step on the way. Sustainability is not a unilateral issue. We are in continuous dialogue with our stakeholders. We believe that reporting our sustainability performance to our stakeholders is material for sustainability management. Another area that we pioneer is the reliability of our sustainability report. Having already become a tradition for our company, this fourth sustainability report is drawn in accordance with the requirements of GRI G4 “core” application level. We have also implemented our sustainability management and reporting processes in parallel with the AA1000 Assurance standard based upon transparency and accountability.

As Vodafone Turkey, we are determined to continue our efforts to contribute to social and economic development of our country as well as to the efficient use of our natural resources. We are also committed to facilitate the lives of our people through the most advanced communication technologies.

Gökhan ÖğütCEOVodafone Turkey

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We shall continue; to support social, economic development and efficient use of natural resources in our country, and work to ease our peoples’ lives with most advanced mobile communication technologies.

Message from Gökhan Öğüt CEO, Vodafone Turkey

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4 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafone.com.tr

Corporate Performance Operating within Vodafone Group, which is one of the largest international mobile communication companies in terms of revenues, Vodafone Turkey is the second largest mobile communication company in Turkey with 20 million1 customers as of March 31st, 2014. Helping its customers experience the “complete communication era” with its mobile network voice, fixed network voice, mobile internet, and ADSL services, Vodafone Turkey operates with 3,203 employees, more than 1,200 shops, and 43,000 stakeholders in its ecosystem.

Aiming to contribute to the growth of Turkey with its strategy of making digital connection easy and accessible for everyone, Vodafone Turkey increased its total revenues by 16.7% in the 2013/14 fiscal year (April 1st, 2013 - March 31st, 2014) and reached TL 6.4 billion– in other words, the all-time highest revenue level. According to the data provided by the Information and Communication Technologies Authority, as of March 31st, 2014, number of customers reached the highest level so far -20 million- with 710,000 increase compared to the previous fiscal year. While the number of postpaid customers increased to 7.8 million1 with a net gain of approximately 800 thousand customers, the ratio of postpaid customers increased to 39%. In the last quarter of 2013/14 fiscal year, average ARPU (income per customer) performance reached TL 21.1.

Also in 2013/14 fiscal year, in line with our strategy to expand mobile internet usage, we have continued to offer our customers mobile broadband tariff options for every budget and a large web-enabled device portfolio. Thanks to the Smart Device Smart Communications Platform (ACAİP) which makes choosing, purchasing and using smart phones easy, straightforward and accessible, our customer-based smart device penetration figures reached the record breaking level of 34% in the final quarter of 2013/14 fiscal year. Again, in 2013/14 fiscal year, our Company achieved 55% increase in data revenues. In addition, with My Business Partner platform and Complete Communication Services strategy, we achieved 18% growth in corporate mobile services revenues compared to the previous fiscal year.

Vodafone Turkey

1 Unlike the previous year’s report, the number of customers given in this Report is based upon the criteria set by the Information Technologies and Communication Authority. 2 Based upon the “Market Data of the Turkish Electronic Communication Industry” report of the Information Technologies and Communication Authority and financial statements of mobile operators.

3 Calculated on the basis of the statements of the operators in our fiscal year (April 1st, 2013 – March 31st, 2014).4 TNS, Vodafone Benchmark NPS Study, March 2014.5 As of June 2014.

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In the new period of “Digital Transformation Movement”, we will focus on being the mobile communication company that pioneers digital transformation in Turkey.

We enabled a total tax revenue of more than TL 18 billion in the last 7 years.

Note: The information above is as of the end of 2013/14 fiscal year.

“The Mosts” of Vodafone Turkey • The most rapidly growing operator in terms of total mobile

revenues in the Turkish mobile telecommunications market.1

• The operator which has increased its market share the most in terms of total mobile revenues in the Turkish mobile telecommunications market.2

• The operator which has increased its annual data revenues the most in the Turkish mobile telecommunications market.3

• According to the results of a survey conducted by an independent research institution, the most recommended operator by its customers in Turkey.4

“The Firsts” of Vodafone Turkey • The first and only company in Turkey to receive AA1000

Assurance for its sustainability reporting process.5

• The first company in the Turkish technology and telecommunication sectors to have ISO 22301 Business Continuity Management System Standard Certification.

• The first company in Turkey to obtain BS ISO 39001 Road Traffic Safety Certification.

• The first telecommunications company to obtain Equal Opportunities Model (FEM) certification, implemented by KAGİDER (Women Entrepreneurs Association of Turkey) in our country with the technical support of the World Bank.

• The first and only telecommunications company to provide 25% discount in ÖİV (Special Communication Tax) to disabled individuals and facilitate their access to mobile communication technologies.

• The first and only telecommunications company selected as a Great Place to Work in the Turkish telecommunications industry.

• First and only operator that has an electromagnetic field (EMF) policy and manages this issue under the coordination of an expert team within its organization in Turkey.

For detailed information please visit www.vodafone.com.tr 5

In the 2013/14 fiscal year, our total income increased to TL 6.4 billion and we transferred this amount to the state as taxes, to our employees as salaries and benefits, and to our suppliers in exchange of products and services as well as to research and development, investments in infrastructure and base stations. Our corporate operations also have a multiplier effect that indirectly contributes to local economies.

Taxes and Investments The new era that we call “Digital Transformation Movement” is shaped by our investments. The total sum of our investments (mainly purchasing, infrastructure and base station investments) from 2006 to the end of 2013/14 fiscal year reached TL 12.6 billion. These constitute the second largest foreign direct investment in Turkey. We also contribute to the welfare of Turkey with our tax payments on behalf of our customers (VAT, special communication tax, etc.).

Employment Creation Telecommunication services have the potential to increase employment and invigorate the economy by nature. As Vodafone Turkey, we directly employ 3,203 people. In addition, we offer “indirect employment” to a total of 43,000 people, including suppliers providing products and services, shop employees and employees of third parties that we outsource.

Our call centres that operate 24/7 are at the heart of our investment and employment capacity. In order to contribute to overcoming the problem of unemployment of youth and to ensuring that the Anatolian cities get their deserved shares from investments, we continue to open call centres in Anatolia. Following our call centres in Istanbul, Ankara, Afyon, Elazığ, and Samsun; our Urfa Call centre started operations in February 2014, thus providing training and employment to 350 people. As a result, the number of our employees at call centres reached a total of 3,345 people -932 of them being our own staff.

Our Contribution to Public Policy The telecommunications sector is largely defined by legal regulations. As Vodafone Turkey, we regularly exchange information on different platforms with regulatory bodies, other public institutions, non-governmental organizations, and the general public. We attach importance to fulfilling our duty to participate in developing competition policies to prevent the distortion of competition and to ensure a sustainable competitive environment. We believe that plain, effective and target-oriented implementation of competition policies is vital for the mobile communications industry, which has long been displaying the characteristics of an imperfect market for competition.

1,262

Direct income contribution: Othernon-taxfiscalpayments(MillionTL)

831

Investments(MillionTL)

Note:Figures given in the table are audited on the basis of the Vodafone Group and reflect the 2013/14 fiscal year data of Vodafone Turkey Group of Companies.

Major indicators of our contribution to the Turkish economy

3,203

Direct employment created(Numberofpeople)

1,301

Indirect income contribution: Indirecttaxespaidonexpenditures(MillionTL)

Direct income contribution: Taxespaidonincome(MillionTL)

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Our Contribution to Economy

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As a large ecosystem of 43,000 people, including our employees, suppliers and members of our distribution and communication channels, we make major contributions to the Turkish economy.

New Investments for “Digital Transformation” Within the scope of our “Digital Transformation Movement”, we launched new investments to make digitally connected life easy and accessible for individuals and institutions. At the tender initiated by the Turkish Electricity Transmission Company (TEİAŞ) for improving mobile data transmission, we won the bidding for usufruct of fibre optical lines. With this investment contract that is worth approximately TL 300 million, including the usage fee, we aim to increase our fibre optical network infrastructure by 7,334 km in two years to reach a total of 16,000 km. We are also setting the 4G infrastructure.

In addition, as Vodafone, we replaced all our old-generation base stations with those built in cutting-edge technologies. Thus we ensured that our network is ready for 4G, its performance and

quality is improved, and voice quality has increased. This technology will also reduce energy consumption, thus carbon emissions, in these base stations. As a result of such efforts, we not only move towards our objectives for growth, but also continue to take precautions against climate change.

6 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafone.com.tr

Our Approach to Sustainability

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We continue our operations with the vision of benefiting from the transformative effect of mobile technologies to ensure a sustainable future.

With our dual-responsibility approach, we, as Vodafone, aim to provide solutions that offer transformation and change, while performing in a socially, environmentally, economically, and ethically responsible manner. We attach importance to our stakeholders’ opinions and establish dialogue with them. Our priorities include disclosing the performance of Our Company to all our stakeholder groups in a transparent manner and, moreover, making stakeholder dialogue and participatory communication models integral to our sustainability strategy.

Within the scope of our digital transformation vision, our major priority is to offer innovative products and services to support economic and social development. By offering the services of technology to life itself, we provide equal opportunity for access to knowledge. We contribute to improving the quality of life for our customers and the society by facilitating healthcare and financial services, supporting involvement of disabled individuals within the society, and protecting the nature.

We also continue to launch new initiatives to make sure that each Vodafone employee is a “sustainability ambassador” to help us reach our social, environmental, economic, and ethical targets and commitments. In terms of social responsibility, we are aware of the fact that our responsibility in occupational health and safety covers not only our employees, but also all employees within our supply chain. We have continuous efforts to improve our performance, which is already acknowledged as the pioneer of the industry. We implement various projects aiming to reach disadvantaged individuals through Vodafone Turkey Foundation.

In terms of environmental sustainability, our effort to reduce greenhouse gas emissions per base station continues incessantly. In addition, we help our customers to reduce greenhouse gas emissions while also improving efficiency, cutting costs, reducing fuel and energy consumption with solutions providing machine-to-machine (M2M) communication.

Sustainability Management Withthevisionandknow-howgainedfromVodafoneGroup,we,asVodafoneTurkey,adoptthe“doubleresponsibility”principleinouroperations.Inotherwords,wemanageourcommercialandsocialinvestmentswithaholisticapproach.WeperformsustainabilitypracticesundertheleadershipoftheCEOofVodafoneTurkey.

Weencountermanyissueswithinthescopeofsustainabilitywhileconductingouroperationsandwehandlethemwithintheframeworkofourcorporatepoliciesandmanagementsystems.Throughparticipatorydialogueandcooperationmodels,welearnourstakeholders'opinions,expectationsandsuggestionsregardingsustainabilityandweintegratethoseintoourcorporatestrategies.

Oursustainabilitymanagementandreportingpracticestakeintoconsiderationalloureconomic,environmentalandsocialinfluences.Sinceourfirstimplementationofglobally-acknowledgedAA1000AccountabilityPrinciplesandAssuranceStandardsin2011/12fiscalyear,weobservetheprinciplesof“integrity,materialityandresponsiveness”.Wetransparentlyshareourregularly-reviewedmaterialissues(includingopinionsofstakeholders),ourrelatedcommitmentsandtargetsaswellasourperformancetowardsthesetargetswithourstakeholdersthroughavarietyofmeans,includingoursustainabilityreport.Inordertoincreaseawarenessofsustainabilityinourcustomers,suppliers,dealers,andmostimportantly,ouremployees,welaunchanumberofpracticesandsupportvariousactivities.

Our Approach to Sustainability and Current Strategic Issues

• Benefitingfromthetransformativeeffectofmobiletechnologiestoensureasustainablefuture

• Performinginasocially,environmentally,economically,andethicallyresponsiblemanner

• Ensuringthateachofourinternalstakeholdersisa“sustainabilityambassador”tohelpusreachoursocial,environmental,economic,andethicaltargetsandcommitments

• Intermsofenvironmentalsustainability,focusingontheimprovementofenergyefficiencyandreductionofcarbonemissionsinorderto:

• Reduceenergyconsumptionresultingfromourownoperations

• OffersmartbusinessandM2Msolutionstoexternalstakeholders

Strategy

Vision

Mission

For detailed information please visitwww.vodafone.com.tr 7

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G4-18,G4-19,G4-21,G4-25,G4-26,G4-27

Materiality Our practices and reporting regarding sustainability focus on the issues that matter the most to our Company and our stakeholders. We held workshops and stakeholder mapping activities in 2012 to identify our material stakeholders and material sustainability issues with the participation of employees representing various departments. After completing this process with assurance approval within the scope of AA1000 Assurance Standard, we identified our stakeholders and material issues, which we regularly updated in line with our needs, developments and feedback from stakeholders. Feedback we receive from stakeholders through various dialogue platforms allows us to regularly update the most material issues for Vodafone Turkey and to even develop our products and processes accordingly. The mentioned platforms and discussed issues are given in the “Stakeholder Dialogue” table below.

While identifying the material issues, we follow the guidance of the “Four Principles for Defining Report Content” stated in GRI G4 Guidelines. However, we consider not only the aspects and indicators in GRI G4, but also the issues on the sector’s agenda, issues reported by the Vodafone Group and the feedback from our stakeholders. Subjects that are considered to be the most important and with the highest economic, environmental and social influence by our stakeholders are the material issues for us. The most important and material issues for both our stakeholders and the Company are listed in the upper right section of the graph below (regardless of the order of importance). These are issues that may have high financial and operational impact on our business processes and thus we monitor them closely. On the other hand, our stakeholders would like to obtain information on some other issues that we have low impact on and therefore that have less influence on our corporate success. Such issues are listed in the upper left section of the graph. As expected, issues that are directly related to our employees are not major concerns for all of our stakeholders but we attach great importance to such issues due their impact on our corporate success. This Report mainly covers the material issues given on the upper right section as well as the issues in the other two sections.

In this Report, we mentioned issues that may be material to our suppliers as well as to our Company. In terms of sustainability, especially occupational health and safety and sustainability of the supply chain are managed in a way that also covers our suppliers. In addition, information on the other GRI indicators included in the Report is of internal nature.

We developed the contents of this Report based on the material issues where Vodafone Turkey has high impact and therefore manage its performance with the aim to reduce its impact. These issues are provided in the graphic below.

CustomersatisfactionSolutionscreatingtransformationandchangeConfidentialityofcustomerdataAccesstocommunicationCommunityinvestmentprojectsBasestationsandhealth,EMFpractices

EnergyandcarbonWastePaper

EmployeesatisfactionCorporatesecurity,businesscontinuity,businessethics,andanti-corruptionOccupationalhealthandsafety*Sustainabilityinthesupplychain*

* Issues that include sustainability performance and practices in our suppliers as well as in our own operations.

DiversityandinclusionTalentmanagementTrainingandcareerdevelopment

Environment-friendlyproductsandservicesWater

High LowEconomic, environmental and social

impact of the issue

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Stakeholder Dialogue Workshops Based upon the AA1000 Accountability Principles and Stakeholder dialogue Process and Standards, in order to disclose our sustainability vision with our stakeholders and obtain opinions and suggestions to steer our sustainability practices and reporting, we have been organizing annual Stakeholder Dialogue Workshops since 2012. In the first workshop held with the participation of opinion leaders, non-governmental organizations, private sector, academics and the media, we reviewed our contribution to the society and customers through our products and services as well as our environmental impact and community investments via the Vodafone Turkey Foundation. During this workshop, we identified the need to focus more on the needs of women and disabled individuals and thus we developed social business models named Women First and Dreams Academy.

In the second workshop held in 2013, we focused on the contribution of communication technologies to the issues of nature, education, women, disabled individuals, and development within the framework of our vision:

Technology in the Service of Life. Let us give a few examples of the valuable suggestions based upon common sense that we have brought to life. We are developing the Respect Green mobile application to increase awareness on environmental issues. This user-friendly digital platform not only gives information through short tests, but also offers access to various publications. Unhindered World, another mobile application developed with support from the Vodafone Turkey Foundation, shows the accessibility of the location on a map and makes life easier for the disabled. In addition, as suggested by our stakeholders and in line with our “technology in the service of women” approach as well as our objective of increasing the presence of women in the social and economic life, we give priority to women entrepreneurs in our My Business Partner, My Enterprise ads. Another issue discussed in the workshop was domestic violence against women. We developed the Red Light mobile application to combat this issue.

In the third workshop held in July 2014, we reviewed our digital transformation approach and solutions together with stakeholders in the business world, non-governmental organizations, academics, media, and local authorities. We discussed about being a part of the solution for a sustainable future and creating digital solution that improve business processes while also reducing environmental impact and/or offering social benefits. A number of opinions brought forward at the workshop will guide us in our future efforts. Some of the most common suggestions of our stakeholders were: expanding digital solution applications to create energy-efficient Smart Cities, offering integrated solutions to SMEs for operational efficiency, focusing on young entrepreneurs as a new business model, and becoming a solution partner for digital growth of companies.

8 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visitwww.vodafone.com.tr

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Dialogue with our StakeholdersWe have continued our communication with various stakeholder groups on various topics and platforms as well as our cooperation with non-governmental organizations and industry representatives in 2013/14 fiscal year. We also continued to transparently share our performance in issues concerning stakeholders via our website, sustainability report, press releases, and various activities and publication. Our dialogue processes with our material stakeholders and the issues shared are given below, including examples.

• Every year we hold customer perception and satisfaction surveys for our corporate and individual customers. By means of these surveys, we learn our customers’ expectations and develop our products and services accordingly.

• We continuously establish direct communication with our customers through our call centres, sales channels, the Vodafone Forum, and the social media.

• We regularly hold meetings with our corporate and individual customers to learn about their opinions and expectations.

• We hold Employee Satisfaction Surveys every year.• We regularly organize activities and practices to increase

awareness in our employees. • We learn about the opinions, expectations and suggestions of

our employees and take necessary actions by yearly evaluating the performance of our Company and our employees via internal communication channels and regular meetings.

• In line with our transparency and accountability principles, we regularly inform the society through media or other platforms.

• We exchange opinions with regulatory bodies on issues concerning our industry and Company and we provide sector specific information flow to these bodies through reports.

• In line with our network deployment policy, we closely follow the developments regarding base stations and health. We share the researches of leading institutions, such as World Health Organization and International Cancer Research Agency, through our website.

• Within the framework of Supplier Performance Management Program, we support our suppliers to develop their capacities in sustainability, quality and performance.

• We establish permanent cooperation with sector representatives and NGOs in line with our sustainability approach (please see Cooperation with Non-Governmental Organizations and Industry Representatives table).

• We get feedback from our shops through periodic satisfaction surveys and implement remedial actions.

• We support our shops in improving their capacities.

• We hold at least one stakeholder dialogue workshop every year, with the participation of opinion leaders, experts and other stakeholders. These workshops guide us in our sustainability reporting process.

Our customers

Our employees

Society

Regulatory bodies

Local community and administrators

Our suppliers

Industry representatives and NGOs

Our shops

Opinion leaders and experts

• We questioned our responsible practices towards the environment and the society in the customer perception and satisfaction survey in 2013/14 fiscal year.

• In the stakeholder dialogue workshop held in July 2014 mainly for corporations, we sought common solutions for digital growth, energy efficiency, operational efficiency, and social business models.

• In 2013/14 fiscal year, we held the Employee Satisfaction Survey, which evaluated not only employee satisfaction, but also our occupational health & safety and environmental performance.

• We launched e-learning to increase awareness of our employees on sustainability.

• Through corporate reputation survey, which involves our stakeholders from every walk of life, we evaluate the improvement of our Company regarding reputation and sustainability issues

• We built the infrastructure of the “Respect Green” smartphone mobile application in 2013/14 fiscal year. When the application goes live, we aim to increase awareness in our ecosystem on environmental issues.

• We disclosed our “Red, Respecting Green” Manifest and invited all stakeholders to adopt the basic principles of sustainability.

• At the 3rd ICT Summit NOW held in September 2013 with Vodafone Turkey as a sponsor, we reviewed the strategic roadmap required to improve competition in mobile communication in Turkey. The review was made within the panel “Competition and Cooperation, Legal Regulations, New Perspectives”, attended by leading institutions and individuals of the IT sector.

• We keep the mutual dialogue alive by receiving the opinions of local communities and administrators especially about base stations.

• We informed our suppliers on recent developments in occupational health and safety, best practices and our approach to sustainability.

• We establish continuous communication with industry representatives and NGOs through meetings, work groups, and visits; we cooperate for the development of our industry.

• With the Green Office practice initiated in cooperation with WWF, we increased awareness on nature and achieved more efficient use of office resources at selected shops.

• We supported our shop employees to develop capacities by organizing training programs on various topics, including service quality and customer relations.

• In September 2013, we held a stakeholder dialogue workshop to review our Company’s approach to sustainability with the participation of various stakeholder groups. Innovative ideas for brought forward in line with our “Technology in the Service of Life” approach.

Our stakeholders

Examples of dialogue processes Examples of issues shared

G4-24,G4-26,G-27

Means of communication

For detailed information please visitwww.vodafone.com.tr 9

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Collaboration with Non-Governmental Organizations and Industry Representatives

IT for Sustainable Development

Carbon footprint management and awareness-raising activities

Board Membership

Innovation Committee Presidency

Membership

Membership

Board Memberships

Executive Board Memberships

Advisory Board Memberships

Working Group Memberships

Chairman of the Board

“Protect our Forests from Fire” Project

Board Membership

Board Memberships

Board Membership

Vice Presidency

Founding Memberships

To offer the potential of technology to the service of sustainable development

To inform our ecosystem on environmental issues and environment-friendly practices; to improve our carbon footprint in our business processes

To exchange ideas with other member companies about sustainability

To support the development of encouragement projects for the private sector to participate in sustainability efforts

To recycle and regain waste materials back to the economy

To contribute to the development of our country through telecommunication and informatics

To contribute to the improvement of investment environment and the national economy

To contribute to the improvement of investment environment and the national economy

To contribute to protecting the nature through mobile technologies and raising environmental awareness

To promote trade relations between Turkey and the United Kingdom; to contribute to partnerships

To contribute to the development of the third sector and to the expansion of volunteerism in private sector in Turkey

To closely follow operational developments and to contribute to the development of innovative applications

Regional Environment Center (REC) Turkey

WWF-Turkey

Business Council for Sustainable Development Turkey (SKD)

AKÜDER ÇEVKO (*)

MOBİLSİAD, TBD, TBV, TELKODER, TESİD, TÜBİSAD, TÜTED, and YASAD (**)

DEİK, Endeavor Turkey, PNB Turkey, TOBB, TÜSİAD (***)

International Investors Association (YASED)

Aegean Forest Foundation (EOV)

British Chamber of Commerce in Turkey (BCCT)

Private Sector Volunteers Association (OSGD), Third Sector Foundation of Turkey (TUSEV)

ÇMD, RVD, TEGEP, KALDER, PERYÖN (****)

We issued the “IT for Sustainable Development” report, which is the major output of our collaboration with REC Turkey to offer the potential of technology to the service of sustainable development. The report focuses on “green IT” and draws attention to solutions offered by mobile communication technologies to reach a more sustainable future. We expect the report to be used as a reference in the industry and encourage similar initiatives.

We develop regular communication activities, nature trips, e- learning tools, environmental campaigns and carbon reduction roadmap for our ecosystem to adopt our sustainability approach and strategy.

We participate in studies conducted with respect to the management of social and environmental issues. We lead the studies regarding the impact of innovation on sustainability.

We participate in activities focusing on energy efficiency in general and in vehicles. In 2013, we became a signatory to the Declaration of Energy Efficiency in Buildings .

We hosted the joint event organized to exchange information on Energy Efficiency in Vehicles.

We continue to recycle paper, electronic and other waste materials and to raise awareness in the society.

We support practices aiming to contribute the development of the sector and take part in the events.

We support activities performed for regional and sectorial development opportunities by increasing sustainable development and competitiveness and take part in such events.

We proactively lead the efforts of international foreign direct investors operating in Turkey for a better investment environment; we support activities performed for regional and sectorial development opportunities by increasing sustainable development and competitiveness.

First time in Turkey, we have established the Forest Fire Early Warning Telemetry System, which we have named “Protect Forests from Fire”. We have contributed to the protection of forest areas from fire and to forest sustainability by using M2M communication technologies.

With the saplings donated to the Aegean Forest Foundation, we planted the Vodafone Forest in Çeşme-Ildırı. We continue to donate saplings to the Forest on behalf of customers choosing to receive e-invoice.

We will launch the “Respect the Green” mobile application, which will enable our customers to donate saplings in 2014/15 fiscal year.

We support projects to promote trade relations between Turkey and the UK and to directly contribute to the partnerships; we take part in related activities.

We actively take part in efforts to improve the legal, financial and functional infrastructure of NGOs, which are important actors in sustainable development.

We support the efforts to contribute to the development of innovative applications in the sector and take part in such activities, as we aim at the continuous improvement of our operational processes.

Non-Governmental Organization

Platform /Project Objective / Purpose Activities in 2013/14 Fiscal Year

(*) Accumulator and Recycling Industrialists Association (AKÜDER), Environmental Protection and Packaging Wastes Recovery and Recycling Trust (ÇEVKO)

(**) Mobile Communication Systems and Instruments Businessmen Association (MOBİLSİAD), Turkish Informatics Association (TBD), Turkish Informatics Foundation (TBV), Independent Telecommunication Operators Association (TELKODER), Turkish Electronic Industrialists Association (TESİD), Association of Informatics Industrialists (TÜBİSAD), and Association of All Communication Businessmen (TÜTED), Software Industrialists Association (YASAD)

(***) Foreign Economic Relations Board (DEİK), Partners for a New Beginning (PNB) Turkey, Turkish Union of Chambers and Exchange Commodities (TOBB), Turkish Industrialists' and Businessmen's Association (TÜSİAD)

(****) Call Centres Association (ÇMD), Association of Advertisers (RVD), Learning and Development Association (TEGEP), Turkish Quality Association (KALDER), Human Resources Management Association of Turkey (PERYÖN)

10 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visitwww.vodafone.com.tr

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Prof. Kerem Alkin Chairman, MOBİLSİAD

What, in your opinion, is the role of the telecommunication industry in development? Information and communication technologies have a variety of influence on every aspect of economic and social life and on every community, thus transforming societies into information

societies. Technological solutions and advancements in electronic communication especially steer and trigger the development of the telecommunication industry. Thanks to new mobile services, this sector goes beyond offering individual communication and becomes one that shapes the infrastructure of the information society. In addition, revenues gained through mobile telecommunication services have a positive influence on the national economy and on employment.

On the other hand, in order for SMEs, which form the backbone of the economy, to institutionalize and actively manage their costs for competitive advantage, each technological opportunity offered by the telecommunications industry is very significant in terms of efficiency and effectiveness. As a service that can be generated at every corner of the country, telecommunication also provides a critical opportunity for employment by shifting investments to underdeveloped regions. A robust and active telecommunications industry also enables recording economic activities and efficiently implementing payment systems.

To summarize, the increase in the use of information and communication technologies improve the life quality of societies, while also accelerating national development with a domino effect by creating positive influence on growth, competition and employment.

What is your general view of Vodafone Turkey?As a global player in the telecommunication industry with a comprehensive network of countries and advanced communication technologies, Vodafone contributes greatly to Turkey as a resident mobile operator with its global experience, innovative practices and social responsibility projects. With its investments in development of the mobile communications industry in Turkey, its R&D practices, technological and innovative solutions, infrastructure activities, and employment created, Vodafone Turkey is a benchmark in the dynamic and competitive market structure in our country.

What are your expectations from Vodafone Turkey in terms of environmental or social issues?Vodafone Turkey reaches every corner of Turkey with social projects such as First Step Ahead, Dreams Academy, and Women Movement in Technology and establishes successful contacts with all target groups. I believe that with determined and selfless efforts, Vodafone Turkey will continue to implement many more important and successful environmental, social, and ICT projects.

Do you believe that Vodafone Turkey is a pioneering company? If so, in what areas?As a representative of a global network and a player in the GSM league, Vodafone Turkey offers advantages especially to the Turkish SMEs and exporters that struggle for survival in the global competition and also contributes greatly to increasing productivity and reducing costs. In addition, mainly due to the features specific to our region, Vodafone should continue to pioneer projects that aim to include women in the economic activities and encourage and support women entrepreneurs. I believe such projects should even be promoted for international cooperation.

What are your suggestions to Vodafone Turkey in terms of sustainability? What would you advise for improvement? I think Vodafone Turkey may establish stronger cooperation with technological SMEs that generate value added mobile services in Turkey. I would suggest Vodafone focus more on developing such cooperation.

Stakeholder’s Opinion

Someofoursustainabilitypracticeshavebeendeemedworthyofawardsintheperiodcoveredbythisreport.Examplesoftheawardswehavereceivedareasfollows:

• VodafoneCallCentrewonthefirstprizein2013 Turkey Call Centre Awardsin“BestCallCentrePerformanceImprovement”category.Itwasalsoselectedasthemostpraiseworthycallcentrein“BestCustomerManagementinSocialMedia”and“BestUseofTechnology”categories.

• IntheStevie Awards for Sales and Customer Service,VodafoneCallCentrereceivedthesilverprizein“BestUseofTechnology”,“BestCallCentreExecutive”and“InnovationinCustomerServices”categoriesandbronzeprizein“E-CommerceCustomerServices”category.

• VodafoneTrainingandDevelopmentCentreREDAcademyreceivedthehonoraryawardin“BestNewCorporateAcademy”categoryof2013 CUBIC Awards,whichisagloballyrenownedorganizationintraininganddevelopment.

• Ourpracticesandsuccessfulfleetmanagementreceivedthefirstprizein“SafeFleet”categoryofBest Fleet Managers of the Year AwardsorganizedbyLeaseplanandtheEkonomistmagazineinMarch2014.ThejuryincludedgiantcompaniessuchasMapfre,Leaseplan,Michelin,andShell.

• Stevie International Business Awards,whichrewardstheperformanceoftheinternationalbusinessworld,awardedVodafoneWalletthebronzeprizein“Shopping,LifestyleandAssistanceServices”in2013.Atthesameevent,VodafoneTurkeywonthegoldprizewithitssuccessfulSustainabilityReport.

• VodafoneTürkiye,International“GreatPlacetoWork”organizationrewardedVodafoneTurkeyastheFourth Best EmployerinTurkey.Thecompanyalsoreceivedaspecialawardin“CorporateDiversityandInclusion”.

Our Awards

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Our Customers and Society Within the scope of the Digital Transformation Movement we launched to “inspire everyone in Turkey for a better future by using communication technologies”, we continue to offer innovative solutions which generate added value to our customers in every area (from healthcare to finance, agriculture, and development) influenced by mobile technologies.

Within the scope of the Digital Transformation Movement, we will continue to launch innovative products and services.

We will enrich and expand the Vodafone Farmers' Club.

We will enrich and expand the Women First Program.

To inspire Turkish companies for digital transformation with our total technology solutions and to improve their efficiency.

To facilitate farmers’ access to information and markets. To reach more farmers through cooperation.

To offer income and personal development opportunities to a greater number of women.

Approach Commitments Objectives for 2014/15 fiscal year

Offering solutions that create transformation / change

Digital Transformation Movement According to the World Bank statistics, every 10% increase in access to mobile communication creates a momentum that is worth 1.5% of the GDP in low and middle-income countries. Therefore, as the fundamental driving force of today’s economy, mobile technologies not only reshape the future of individuals and businesses, but also supports equal opportunities in access to information and building social structures that cover all individuals with equal opportunities. We launched the Digital Transformation Movement with the aim of transforming lives of individuals and supporting sustainable development by means of mobile communication technologies. We offer our know-how and innovation power to the services of facilitating lives and improving social welfare.

Mobile Wallet

Mobile technologies have become an important instrument for incorporating people who are unable to access to financial services into the financial system and for creating equal opportunities in this area. In our country, 17 million people -23% of the population- use PTT (The General Directorate of Post and Telegraph Organization) for financial transactions, as they cannot access banking services. Mobile Cash Card launched in collaboration with PTT in 2012 enables money transfer via telephone, payment and “Cell Lira” top-up. With Mobile Cash, customers do not get into debt, pay interest nor need to become bank customers, as it is a prepaid card. Wide network of PTT contributes to the inclusion of individuals who are not yet involved in the banking system into the registered economic system.

On the other hand, Vodafone Mobile Wallet application launched this year aims to transfer the opportunities offered by Mobile Cash to mobile smartphone platforms in order to ensure easy financial transactions. This application enables a great number of transactions, including creating virtual Mobile Cash Card instantly, sending money to all GSM numbers, requesting money from Vodafone customers, depositing Cell Lira to prepaid Vodafone lines, saving money with Save and Send account.

Mobile Donation In line with our “technology in the service of life” vision, we aimed to build a platform that brings those in need, foundations, associations and benefactors together. So far, non-governmental organizations used to announce donation campaigns through their own communication channels and only reach benefactors that they were known to. With its Vodafone Mobile Donation service, Vodafone Turkey has been the first and only operator to unite all short numbers allocated to foundations and associations for collecting money. Vodafone Mobile Donation allows citizens to make donations easily via free SMS to the number 9000, www.cepbagis.com or Vodafone Mobile Donation mobile application.

Thanks to Mobile Donation service, number of non-governmental organizations collecting donations via Vodafone increased rapidly in 2013 to reach 114 (48 in 2012). The total amount of donations collected in 2013/14 fiscal year was TL 3 million.

12 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafonecepsaglik.com.tr

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Digital Transformation in Healthcare Vodafone Mobile Healthcare Turkey’s most extensive, first and only mobile healthcare platform touched the lives of 500 thousand people in its first year!

Having started operations in March 2013 with the cooperation of Vodafone Turkey and Artı Sağlık A.Ş., Vodafone Mobile Healthcare Platform is an innovative service that offers instant mobile healthcare solutions to our customers. Vodafone customers dial 1120 to get basic healthcare information and consultancy services 24/7 or have access to the platform via Vodafone Mobile Healthcare mobile application or our website.

Vodafone Mobile Healthcare Platform touched the lives of 500 thousand people as of April 2014. The Platform offers mobile technology solutions on a variety of issues, including chronic diseases, maternal and infant health, healthy nutrition, healthy life, ambulance, homecare, patient monitoring and health coaching.

Vodafone Mobile Health Card With the Vodafone Mobile Health Card service, we create personal health identity cards for our customers. Upon the customer’s approval, information such as health issues, people to be contacted, potential blood donors, etc. can be reached by professional healthcare personnel through the chip on the card or the internet in case of emergency. Vodafone Mobile Health Card also offers discounts and bonus points in contracted healthcare providers. In addition, VIP card owners are guided by special assistants for personal healthcare solutions.

Health File As another product within Vodafone Mobile Health Card, Health File includes a personal health management system that covers history, documents, medication reminders, check-ups, medical analysis records. Customers can digitally record all health information on this application and have instant access when needed or share the information with healthcare professionals.

Vodafone Istanbul Marathon With the contract signed by and between Istanbul Metropolitan Municipality, Spor A.Ş. and Vodafone Turkey, Vodafone Istanbul Marathon took place for the 35th time on November 17th, 2013 with approximately 20 thousand participants from 97 countries. Including 15 and 10-km races and Fun Run open to public, this intercontinental marathon covering the Bosporus Bridge is becoming a collective sports activity with the highest number of participants. Vodafone Istanbul Marathon has been awarded the Golden Category by the International Association of Athletics Federations (IAAF) and our goal is to make it a part of World Marathon Majors league.

When Istanbul becomes a marathon capital that welcomes tens of thousands of sportspeople and tourists every year, it will be a city of healthy lifestyle and also contribute to the local and national economy.

Special smartphone application for the Marathon: “VMaraton” VMaraton application is specially created for smartphones and offered free of charge to all users. The application provides easy access to all information regarding the event. Via VMaraton, users can make donations to non-governmental organizations selected by runners by using Vodafone Mobile Donation line. Sportspeople and volunteers who want to collect donations can create profile pages and share their message through the social media and emails, thus increase the amount of donations. Users can also have access to Vodafone Mobile Healthcare Platform via VMaraton and get discounts on sports equipment with the “Advantage in the Pocket” campaign.

Fikret Orman Chairman, Beşiktaş JK

We, as the Beşiktaş family, signed one of the most important cooperation contracts in the history of Turkish sports together with Vodafone Turkey. We initiated the construction works of our Vodafone Arena stadium with great enthusiasm and we’re continuing the works with a higher pace each and every day. When we started the construction of our stadium,

our goal was to combine the spirit of Beşiktaş with the technology of Vodafone to create a project that is important and meaningful to all of Turkey. To reach this goal, we cooperated with global partners that have proven success in their areas to use the most advanced technological infrastructure in the world and build Turkey’s first smart stadium.

As Beşiktaş, we would like Turkey to reach the level of global information society it deserves. Therefore, we consider the VF Arena partnership not only as an important social investment, but also as a great opportunity to help us benefit from the digital transformation and its advantages.

Vodafone Arena is one of the most deep-rooted and important football arenas of Turkey and we aim to extend its spirit and enthusiasm beyond the boundaries of the stadium and to share it with Turkey, using technology. In addition to being a football stadium, Vodafone Arena will also serve as a meeting point for Istanbulites with concerts, fashion

shows, arts and culture events, cafes and restaurants, Eagle’s Nest store, and Vodafone Mobile Centre.

One of the most significant aspects that differentiate Vodafone Arena is that it will be the first environment-friendly stadium in Turkey. It will host a number of innovations such as generating electricity from the sun by using photovoltaic system, collecting and using rainwater, using construction materials with green-building certification, and installing air conditioning that contains non-ozone-depleting gases and that provide 100 percent fresh air to closed areas.

It is important for us that our stadium does not damage the cultural structure of Istanbul, it is environmentally friendly and equipped with technology. Thanks to the cooperation with Vodafone Turkey, we are realizing this dream.

Stakeholder’s Opinion

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Mehmet Altınok CEO, Unilever Turkey

What is your general opinion on Vodafone as a solution partner? Vodafone is a company that adopts the mission of creating world-class mobile technologies and innovations that will improve everyone’s lives. Its efforts to create sustainable value also have positive impact on business models, environment,

society, and employees. The fact that, just like Unilever, Vodafone also adopt sustainable development and operates accordingly allowed these two global giants to build technological partnership for sustainability and to realize an efficient project.

We, as Unilever, launched the Sustainable Tea Agriculture Project four years ago with the aim of protecting the future of Turkish tea. Within the scope of this project Vodafone Turkey offered sustainability services and thus added even more value to our efforts to improve farmers’ life conditions. An application specially designed for Lipton Sustainable Tea Project by Vodafone My Business Partner allowed us to transfer all manual data collection and analysis processes to the digital platform. This contribution by Vodafone Turkey also ensured saving time and achieving better information management processes. In addition, this helped farmers to perform better agricultural practices, thus reach better harvests and profits.

What are your expectations from Vodafone Turkey in terms of environmental or social issues? On behalf of “Sustainable Living”, it is important for global

brands to offer solutions for social, environmental and economic problems and to develop and implement such vision. Therefore, as a company with more than 20 million customers, Vodafone’s efforts and support to protect nature and create awareness have a positive influence on the solution process. We have joint responsibility in many issues from e-invoice to energy efficiency, improving livelihood, waste management, and environment. We also have social responsibilities including prioritizing occupational health and safety, improving employee satisfaction, and creating sustainability-focused communities and a common consciousness.

Do you believe Vodafone Turkey to be a pioneering company? If so, in what areas?“My Business Partner” initiative allows Vodafone Turkey to cooperate with companies with similar visions to achieve efficiency in time and information management. Other projects such as Farmers’ Club, projects for women entrepreneurs, Vodafone Turkey Foundation, and Dreams Academy also deserve praise.

What are your suggestions to Vodafone Turkey in terms of sustainability? What would you advise for improvement?Vodafone’s talent in integrating global experience into local environments will certainly add more efficiency and strength to Vodafone in creating solutions. With a direct access to 20 million customers, Vodafone Turkey is in a perfect position to create awareness and common consciousness on sustainability. By making technological cooperation with other companies with the same vision, Vodafone Turkey will reach more people and generate valuable results in terms of solution partnerships.

Stakeholder’s Opinion

Report on IT for Sustainable Development Inordertooffertechnologicalsupporttotheserviceofsustainabledevelopment,weissuedour“ITforSustainableDevelopment”reportinMay2014togetherwiththeRegionalEnvironmentCentre(REC)Turkey.Webelievethat,inlinewithourvisionof“TechnologyintheServiceofLife”,thisreportwillemphasizetheroleandimportanceofITinsustainabledevelopment,reveallimitations,andincreaseawareness.

Preparedtoofferinnovativesolutionstoglobalclimatechange,thisreportfocusesontheconceptof“greenIT”andrevealstherelationshipbetweenITandsustainabledevelopmentattheglobalandnationallevel.Thereportincludes“ITforSustainableDevelopment”,“PotentialforEmissionReductioninSelectedAreas”,and“OpportunitiesandObstacles”subtitlestorevealsignificantresultsregardingthepotentialofreducinggreenhousegasemissionsbyusingITinenergy,manufacturing,agriculture,andconstruction.Inaddition,thereportalsocoversexamplesofmachine-to-machine(M2M)technologythatallowsVodafonetoestablishwirelesscommunicationamongdevices.Thisisapioneeringpracticeinthetelecommunicationsindustryandweaimtoextenditsuseonmanyplatformsasareference.

Employee OpinionWeareoneofthefastest-growing,mostdynamiccompaniesthatattachgreatvaluetoequalopportunityinTurkey.Tome,beinganemployeeofVodafoneTurkeymeanscreatingprojectsthatcontinuouslyraisethebarwithnewinitiativesandbecomingagoodteammember.Byalwayspositioningourcustomersinthecentre,weadapttothechangesinthemarketrapidlyandweaimtobethebestinallareasofactivity.

TheprojectthatinspiredmethemostistheForestFireEarlyWarningTelemetrySystemthatwerealizedincooperationwiththeAegeanForestFoundationinordertousemobiletechnologiestocontributetoamoresustainableenvironment.Extendingtheuseofsuchtelemetrysystemswillcontributegreatlytoprotectingforests.Ontheotherhand,efficientuseofenergyismaterialtoourcountryandthebusinessworld.ThankstotheenergymanagementandcountermonitoringsystemsweofferthroughM2Mtechnology,weensuremoreefficientmanagementofelectricity,waterandnaturalgasnetworks.

Ebru Özgüç, Head of Enterprise Marketing

Thanks to M2M (Machine-to-Machine) technology, in the future the internet will notbe only about smart devices and computers, but will also touch every aspect of life.

14 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visitwww.vodafone.com.tr/Is-Ortagim

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Vodafone’s My Business Partner performs digital transformation and offers access to new technologies for companies of all sizes.

My Business Partner

With the mission of becoming a “reliable business partner”, Vodafone My Business Partner Program offers reasonable and innovative solutions to companies. Using such solutions, we support our customers in improving their competitive advantage and grow their businesses sustainably. With a portfolio of more than 100 products and services, Vodafone My Business Partner provides all mobile and fixed telecommunication, IT and value added solutions on a single platform.

“Machine-to-Machine Communication” (M2M) that allows wireless communication among devices is one of our major innovative services. Our M2M solutions enable efficiency in business processes, fuel and energy saving, reduction in carbon emissions for a number of customers in a variety of industries.

Vodafone M2M technologies offered to the service of companies with our global experience and know-how focus on five major solutions: “Energy Management and Counter Monitoring”, “Fleet and Asset Management”,“Remote Maintenance and Control”, “Healthcare”, and “Automotive”.

Machine-to-Machine Communication (M2M) and Sustainability Machine-to-Machine Communication (M2M) technology not only improves efficiency in business processes, but also cuts costs, reduces fuel and energy consumption, and therefore supports sustainable economy.

Ford Otosan Fleet Management System (Filobil)What is it?Filobil is an online fleet management system that uses Vodafone M2M technology to help Ford Cargo customers to monitor fuel consumption and driving performance of the fleet. Filobil is either integrated in the new-generation vehicles manufactured by Ford Otosan or mounted on existing vehicles at Authorized Ford Technical Services.

What are the benefits?

• It facilitates monitoring of driver working hours and performance; it also gives the opportunity to take corrective actions and organize trainings.

• With a warning system for vehicle running hours and adverse situations, it provides a basis for safe drive.

• It contributes to fuel economy by providing information on the use of brakes, idling time, vehicle speed, etc. In addition, it allows reducing driver behaviours that have a negative effect on vehicle’s lifespan.

• By enabling monitoring of technical information (including maintenance frequency, sharp falls in gas tank levels, overheating), it helps increasing the average life of vehicles through timely maintenance.

• It provides information on vehicle route and positioning thanks to the geographical positioning system, thus contributing to efficiency and fuel saving.

• With the increase in efficiency, it supports mitigation of carbon dioxide emissions, reduction in operation and repair costs, extension of the life span of vehicles and tires.

• It offers fleet owners the opportunity to monitor 60% of vehicle ownership costs and to make fuel saving of up to 20%.

M2M technology contributes significantly to the transformation in our country’s automotive industry. As Vodafone Turkey, we will continue to pioneer the industry with our special solutions.

Lipton Sustainable Tea Agriculture Project and ECOTAB

What is it?ECOTAB is a tablet application developed by Vodafone within the scope of Unilever’s Lipton Sustainable Tea Agriculture Project performed in the Black Sea region in order to transfer data collection, auditing and analysis processes performed on paper to the digital environment.

What are the benefits?

• It saves time in product and soil auditing and archiving processes. • It significantly reduces the margin of error in the transfer of data to the

central system.• It eliminates use of approximately 50 thousand pieces of paper for

audit forms.• It helps small-scale farmers to improve their practices and economic

conditions.

With the tablet application we implemented for Sustainable Tea Agriculture Project, Lipton received “B2B Partnership” award at the Ethical Corporation Awards held in the UK.

Examples of Vodafone My Business Partner Services

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In line with our dual-responsibility approach, we, as Vodafone Turkey, attach great importance to not only commercial operations, but also social investments. Our social business models aim to add value to lives of different social segments through mobile technologies, to support them in equal involvement in social and economic life, and thus to lead digital transformation in our country. As a result of this approach, we established Vodafone Farmers’ Club to create awareness in farmers via mobile technologies and to contribute to agricultural and rural development.

Through Vodafone Farmers’ Club, we inform farmers on how to manage their business processes more efficiently and thus help them achieve efficiency and savings in all business practices. Services and solutions that we offer to farmers to improve their business and life quality cover a wide range of areas from services provided by brand partnerships to awareness activities in water use and agricultural productivity in rural areas.

Farmer News PackageWith our 2434 Farmer News Package Service, we provide agricultural information to more than 370 thousand customers. Through this service, we deliver detailed weather forecasts in 966 towns, market prices of 88 agricultural products, disease warnings, and tips on pest control. Sectorial information such as state grants and investment supports, free fair invitations and latest developments in agriculture is also offered. So far we have sent 730 million SMSs on 1.1 million different subjects to farmers.

Vodafone Farmers’ Training TruckWith the Vodafone Farmers’ Training Truck project that we launched to give trainings in villages to meet farmers’ needs, we aim to explain the benefits of mobile services in increasing productivity. As of the end of 2013/14 fiscal year, our truck visited 391 towns and villages, covered a distance of 201,442 km, reached 9,216,590 people and offered training to 19,251 farmers. Farmers’ Training Truck also attended 55 events and was visited by 180,336 people.

Vodafone Farmers’ Guide ApplicationVodafone Farmers’ Guide Application that we developed for smartphones was downloaded by 17 thousand farmers. Town-specific 5-day weather forecasts, agricultural news per category, detailed product prices, free and easy advertising are offered to farmers.

Farmers’ Advertisement ServiceOur free of charge 2434 Farmer Advertisement Service allows farmers who are members to the Farmer News Package to give ads with a single SMS. Thanks to this service, farmers get the opportunity to reach whole Turkey with only one SMS and to sell their products without intermediaries and at their worth. The ads sent through this service are published free of charge in Turkey's largest agricultural e-trade website www.tarimsalpazarlama.com and other leading agricultural magazines. So far more than 35 thousand farmers benefited from this ad service and sold products worth more than TL 10 million.

Main Focus Points of Farmers’ Club

Farmers’ Club TV ProgramWith the Farmers’ Club TV Program that was launched in May 2013 and broadcast for three months, we enabled farmers to receive current information on agricultural developments, market prices, weather forecasts on TV. We broadcast a total of 68 programs.

With mobile technologies, we improve the life quality of millions of Turkish farmers.

Farmers’ Club

16 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafone.com.tr/oncekadin

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In line with our vision of “Technology in the Service of Life”, we aim to empower women with technology and improve their presence in the social and economic life. Therefore we launched the “Vodafone Women First” Program in April 2013 in collaboration with the Ministry of Family and Social Policies, in order to solve communication problems of working women and to help them contribute to the economy.

Designed as a social business model, the program supports women entrepreneurs. Women First Advertisement Service presents women the opportunity to market their self-crafted products directly and free of charge for one month on sahibinden.com, Turkey’s largest advertising and e-commerce site. Women can send their ads with photos via a free SMS or MMS. This way, anyone who wants to support “productive women” can buy such self-crafted products online via mobile technology

Women who are prepaid Vodafone customers win TL 100 TL worth credit to speak with all Vodafone customers from their own tariffs when they deposit TL 25 in a lump. Named Women First Support Package, this campaign was used by 22 thousand women by the end of 2013/14 fiscal year.

In addition, with the Maternal-Infant Service implemented in cooperation with the Mother-Child Education Foundation (AÇEV), women get free text messages with useful information about the development of babies. Mothers register to the service by stating the age of their babies and thus receive only relevant information. Approximately 5,000 women benefit from this service.

Business results of “Women First Advertisement Service” within “Vodafone Women First” Program as of the end of 2013/14:

• More than 4,700 ads on “sahibinden.com Vodafone Women First Store”.

• Over 240 thousand unique visitors.

• All ads were viewed more than 1.5 million times.

• Percentage of women recommending the service reached 90%.

• Average sale per woman attending the service as a seller reached TL 101.

• The top 3 categories with the greatest number of ads were handcrafts, food & beverages and home & decoration products.

• The top 3 cities with the greatest number of ads were Istanbul, Izmir and Bursa.

• 40% of ads were for products sold for less than TL 20.

Women First for a better future!

Women First Program

As Vodafone Turkey, in line with our dual-responsibility approach, we give priority to social responsibilities as much as to commercial operations. We aim to lead social change and development by removing the barriers facing individuals who cannot benefit enough from social life or cannot take place in the economic life. We believe that women should have equal opportunities in economic life in order for

our country to grow sustainably and create a powerful society. In parallel to this belief, under the auspices of the Ministry of Family and Social Policies, we devised “Vodafone Women First” program to help women meet their communication needs, contribute to the economy, and benefit from entrepreneurship opportunities. With the program that started in 2013, we aim to support women with the power of technology, to increase their presence in the social and economic life, and to create equal opportunities for them with the help of technology. Within the scope of this program, we handle products and services to meet women’s needs under three main groups, “access to technology”, “personal development” and “income opportunities”. As the first of its kind in Turkey, our program was introduced to the whole world by the United Nations as a project setting an example to others even in its first year. We, as Vodafone Turkey, will increase the number of projects to ensure social and economic contribution of women as well as increase women employment.

Gizem Keçeci, Head of Corporate Affairs and Diversity

Employee Opinion

In May 2013, we held the “Women First/Women’s Handicraft Exhibition in 81 Cities” with the participation of more than 450 women entrepreneurs in 81 cities. Women had the opportunity to exhibit their products for 4 days. The aim was to encourage women to take part in the national economy and benefit more from opportunities offered to entrepreneurs.

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Our Approach As Vodafone Turkey, our goal is to deliver the best customer experience at every point of contact. We always try to make our customers' lives easier with access to communication, with our products and services, and with our service channels. In line with our “unconditional customer satisfaction” principle, we listen to our customers carefully and try to understand their needs in the most accurate way, and we design each product and service within the frame of those needs. In our customer experience design, we follow Vodafone Group's worldwide practices closely and accept the most advanced customer satisfaction criteria as a model. Every year, we manage to be the “Most Recommended Operator” by our customers, thanks to our customer-oriented approach.

Customer Opinions Opinions of our customers are vital in determining our corporate strategies. In our daily contacts with our customers via our call centres, stores, online self-service channels, Vodafone Forum, social media, and many other channels, we constantly get their opinions and integrate these in our business assessment.

We obtain the most accurate and helpful customer feedback and implement our findings in all lifecycle stages of new products and services. We evaluate customer surveys, focus-group studies and other market researches which individually address every stage of our products - from the discovery of the product by the customer to purchase, use and pricing stages. In order to improve the unique customer experience we offer; we treat every complaint, satisfaction, expectation and need of our customers as a starting point for our future work. We complement our customer-oriented practices with evaluation meetings held regularly with the Executive Board and site visits and thus implement new projects.

Service Channels We continuously improve to achieve excellent customer experience at our shops, call centres and online channels. We apply ISO 10002 system for customer satisfaction management.

We Listen to Our Customers As in all call centres, all calls are recorded at our call centre. In order to serve our customers better, we benefit from the technology to analyse customer calls by converting calls into texts and identify the most common words, which enables us to analyse requests and complaints better. In the past we used to make limited analyses based upon sample calls, but today we listen to more and more customers by converting almost all calls into texts. We aim to improve our services accordingly.

We Improve Our Self-Services In order to reduce the need for our customers to call our Company and to increase customer satisfaction by enabling them to have easier and faster access to services such as obtaining tariff information, changing tariffs, purchasing packages. By using 6 Sigma improvement methodology, we held workshops with our customer services, marketing, sales, quality divisions and listened approximately 3,500 actual customer calls. We also received improvement suggestions from agents at the call centre. By analysing customer requests, we identified the root causes and areas of improvement. Thanks to the improvements, awareness and use of free Self Service channels increased 75%. In addition, our ratio of solving problems at the first call improved significantly.

Customer Satisfaction

Secure Internet Our Secure Internet Service, which we offer free of charge and upon request, is an alternative internet access that considerably protects our customers from harmful content. This service contains two profiles (children and family) and provides considerable protection. Desired profile can be selected or cancelled via online self services, Call Centre, SMS or Vodafone shops.

Net Promoter's Score As a company that focuses on customers while developing new projects, we constantly follow “Net Promoter's Score” research that measures the level of recommendation of an operator by our customers and users of other mobile communication services and build a sustainable customer experience accordingly. According to the results of the survey held by an independent research company, we have again been selected the “most recommended operator” in 2013/14 fiscal year.

To me, Vodafone Turkey is a company that truly reflects the concepts of not giving up, establishing clear targets, banding together, and reaching them. Being a Vodafone Turkey employee means always looking forward, being one step further ahead, easily solving big problems by thinking smartly and practically. Communication is life itself and Vodafone Turkey enables us to have continuous communication with

our relatives, loved ones, jobs, urgent and material information under every condition. Thanks to its globally acknowledged communication technologies, our company offers simple solutions to problems that might seem complex, thus making life easier for people and corporations. Offering fast, practical solutions that make life easier is the factor that makes us different in this sector.

I believe that M2M technology is the foundation of the most exciting projects that we have. With M2M you can achieve fuel saving in automotive industry, time saving in urgent health issues, faster intervention in forest fires, etc. By helping to use labour force and sources more efficiently, these technologies will provide the greatest support for sustainability in every area. I am sure that in the coming years, smart city solutions to make difficult city life easier and projects such as Farmers’ Club to create a balance between rural-city life will come to the forefront.

Bilge Çiftçi, Head of Brand & Marketing Strategy

Employee Opinion

About OKSİJEN OKSİJEN, which was established in 2000 and fully comprised of local labour force of engineers, puts its stamp under many innovations. In 2013, we continued to offer significant employment opportunities and resources to our country in R&D with a team of more than 280 engineers. We support our business partners to open up to the world, through products and services that we provide for Vodafone Group operators. We also provide global competitive advantages for our corporate customers by developing value-added products and services.

OKSİJEN’s Solutions Offered to Europe OKSİJEN’s solutions are implemented not only centrally in Vodafone Group, but also separately in some Vodafone Group companies. Vodafone Netherlands and Vodafone UK, started to use OKSİJEN’s Central Location Platform for Emergency Call Services. With this service, when Vodafone customers in these two countries use the Emergency Call Services, their locations are automatically detected via our platforms and transferred to the related centre. Our Central Location Platform was also put into operation by the Austria-based Telekom Austria Group (TAG), which has a collaboration contract with Vodafone Group. With this implementation, location demand volume reaching 20 million per day is now met through OKSİJEN’s technology.

OKSİJEN and Vodafone xone™ CooperationThrough our collaboration with Vodafone xone™ -Vodafone Group's incubation centre in Silicon Valley- in 2013 for mutual transfer of technology and “know-how”, we devised and concluded joint projects. A variety of applications that we, as OKSİJEN, supported Vodafone xone™ in design, development, test and operation stages were implemented in Germany, Italy and Spain.

18 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.oksijen.com

OKSİJENOKSİJEN, selected as Vodafone Group’s “Global Innovation Centre” to create technological innovations for over 400 million customers in 27 countries, exports technology to the world.

We will support the development of technology export which OKSİJEN realizes as a “Global Innovation Centre”.

We will support the development of the local R&D in our country through OKSİJEN.

We will increase the number of innovative solutions and services.

We will improve R&D competency of OKSİJEN.

To provide Vodafone Group with innovative solutions.

To increase the number and diversity of projects implemented within the scope of our ecosystem. To increase the number of business partners to ensure healthier development of the ecosystem.

To add new areas of use for mobile financial services. To enrich position-based innovative services.

To increase the number of patents within the scope of R&D practices.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

Providing solutions that create transformation and changeIn

nova

tion

DriveXoneDriveXone,implementedbyOKSİJENandVodafonexone™asthefirstM2Msolutionforfinalconsumers,providesagreatnumberofdatafordriversthroughatinydevicemountedonvehiclesandanapplicationdownloadedinsmartphones.DriveXoneoffersbenefitssuchasmonitoringdrivinghabits,followingavailableroutes,identifyingthevehicle’slocation,andsendingwarningincaseofmalfunction.

UnaxoneUnaxoneisanapplicationthatallowselderindividualstobenefitfromthecommunicationopportunitiesofferedbytechnologyandthustosharemorewiththeirrelativesandfriends.Italsofacilitateseldercare.Unaxone,developedbyOKSİJENandVodafonexone™isdesignedespeciallyforelderlypeopleandfunctionssuchasuser-friendlyvideocalls,photosharing,jointcalendarandinternetaccessmaketheapplicationfunandeasytouse.

AwardsSome applications developed and supported by OKSİJEN were deemed worthy of awards at the Stevie Awards (one of the most globally important and prestigious awards of the business world) in February 2014:

Mobile Wallet application which was devised and integrated by OKSİJEN received bronze award in “2013 App Awards / Lifestyle” category.

Vodafone Facebook Self Service, which was designed, developed and integrated by OKSİJEN received silver award in “2014 Stevie Award / Award for Innovation in Customer Services”.

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Mobile phones meet communication needs through the nearest base station by using radio frequency (RF) zones. While using mobile phones, human body absorbs some of the RF zone. Although there is no definitive proof to convince experts that exposure to RF zones caused by mobile phone and base stations may have negative impact on human health, some of our stakeholders are concerned about this issue. World Health Organization examined thousands of scientific researches and declared that negative impact on health resulting from mobile phone usage has not been detected so far.

We, as Vodafone Turkey, continue to be the first and only mobile phone operator in Turkey with a corporate strategy, policy and plan on Electro Magnetic Field (EMF). We manage the issue in coordination with a team of experts within our organization and we inform the public via our website. Among our pioneering EMF practices are providing e-training for employees, placing warning signs around our base stations and making site audits on EMF.

We will increase the level of awareness and knowledge of our employees and suppliers on EMF and enable them to share information when needed.

We will continue sharing information through various channels to increase the understanding and awareness of our stakeholders and customers on EMF.

We will continue to perform the requirements of our EMF policy.

To continue providing EMF e-training program for employees within the scope of orientation and technical trainings. To reach 50% of employees by the end of fiscal year. To provide two-hour training to at least 200 people within the scope of EMF trainings for call centre agents and suppliers.

To prepare a new EMF brochure and share it with stakeholders.To continue sharing information on EMF at universities and symposiums.To continue sharing information by keeping our website up-to-date.

To perform periodic EMF control and audit processes to make sure that operation procedures in the base station areas are in conformity with our standards.To continue placing warning signs around new base stations, in locations that can be easily noticed by employees, suppliers and local communities.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

We will continue to work with our vision to lead the sector in responding the public concerns regarding mobile phones, base stations and human health and to set the example by initiating various efforts for this purpose.

Base Stations and Health

EMF Practices

A pioneering practice in EMF: Site audits and warning signsWe perform periodic EMF controls and audits to make sure that operation procedures implemented by our employees and suppliers in the base station sites are in conformity with our standards. Our site teams hold periodic audits and evaluate the conformity of sites to EMF criteria.

We placed warning signs around all base stations, in locations that can be easily noticed by employees, suppliers and local communities. We will continue this practice in new stations to be built.

Conducting our operations in a responsible and ethical way

RegulationsbroughtbytheInformationandCommunicationTechnologiesAuthority(BTK)arebaseduponlimitvaluesoftheelectricfieldsperbasestation,asacknowledgedgloballyasnon-hazardousvaluesforhumanandenvironmentalhealth.Toensuretheoperationofbasestationswithinthesetlimitvalues,auditingandsanctionmechanismsareestablished.LimitvaluesinTurkeyareapproximatelyonefourthofthosesetbyICNIRP*andacceptedandsupportedbytheWorldHealthOrganization.AsVodafoneTurkey,weoperateourbasestationswithvaluesthatarefarsaferthanthoseacceptedgloballyassafe.

19

For detailed information please visit www.vodafone.com.tr/VodafoneHakkinda/kurumsal_sorumluluk.php

World Health Organization, EMF factsheet: www.who.int/mediacentre/factsheets/fs193/en/index.html

* ICNIRP: International Commission on Non-Ionizing Radiation Protection

Our Approach Within the scope of our environmental management system, we implement various projects and regularly report our performance to our stakeholders. We organize training programs and activities for our employees to raise awareness on nature and protection of natural resources. We work with companies that have environmental management certification in order to encourage our suppliers to reduce their environmental impacts. In addition, we also enable our customers to reduce their environmental footprints with our products and services. Our efforts in this context are mentioned in detail in “Customers and Society” section of this Report. With the “Respect Green” smartphone mobile application planned to be launched in May 2014, we aim to raise awareness in our ecosystem.

Our Climate Change Strategy In order to combat global climate change, we aim to reduce the emission of greenhouse gases including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and CFCs that are generated during our operations. We focus our climate strategy on areas that we may improve the most. By achieving energy efficiency in base stations and switching-data centres which respectively cause 80 and 15 percent of our energy consumption, we not only reduce our carbon footprint, but also cut energy costs. We invest in more efficient technologies and seek innovative solutions that reduce energy consumption or use renewable energy. In addition, we implement measures to reduce greenhouse gas emissions in our buildings and vehicle fleet.

Energy Consumption and Greenhouse Gas Emissions Our operations grow in line with the digital transformation and growing needs in our country. Total energy consumption and subsequent greenhouse gas emissions have been increasing throughout the years, in proportion with our increasing market share as a result of this development.

20 Vodafone Turkey SustainabilityReport2013-2014

Environment With the aim of reducing environmental impact of our operations, we focus on consuming less energy, reducing greenhouse gas emissions, creating fewer wastes, and using natural resources more efficiently.

We will apply the roadmap and investment strategies we have identified for reducing greenhouse gas emissions.

We will continue and expand base station applications that enable higher energy efficiency and use renewable energy.

We will continue our “Green Office” applications in collaboration with WWF-Turkey.

We will continue organizing programs to raise awareness on nature among our employees and other individuals within our ecosystem.

To update our carbon footprint calculations together with WWF-Turkey and to work on new reduction scenarios with the aim to reduce our greenhouse gas emissions. To update our investment strategy and roadmap in line with our decisions.

To choose highly energy-efficient equipment (at least 96%efficiency in DC, A-class air conditioning, etc.).To increase the number of base station sites with natural ventilation.To increase the use of wind turbines and solar panels.

To successfully conclude the “Green Shop” program in 10 selected Vodafone Shops.

To further improve “Respect Green” mobile application and offer it to all users in order to ensure that our employees and all stakeholdersobtain more information on sustainability.To continue our efforts to inspire our stakeholders to adopt and spread our “Red, Respecting Green” Manifest.To reach more stakeholders at the annual Vodafone Sustainability Week and thus contribute to the increase in awareness on sustainabilityand environmental issues.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

Envi

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Conducting our operations in a responsible and ethical way

For detailed information please visit www.vodafone.com.tr

For detailed information please visit www.vodafone.com.tr 21

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Note 1: As energy conversion factors specific to Turkey are revised for 2013/14, the 2011/12 and 2012/13 figures are recalculated using the new conversion factors. Therefore 2011/12 and 2012/13 fiscal year data is revised. It is worth mentioning that over 90% of our energy consumption is from purchased electricity, and this coefficient is not changed. Therefore restatement of previous years’ data is minor. Detailed information on conversion factors and methodology is provided in the “Principles of Reporting” section of this Report.

Note 2: For 2013/14 fiscal year, it has been possible to enhance the calculation of electricity consumption from base stations due to improvements in the quality of the measurement methods used to calculate the data. However, it has not been possible to restate data from prior years retrospectively. More accurate method will be used for the following years.

(*) 2013/14 energy data was assured by the independent audit firm EY.

927,324

882,332

44,262

730

190,246

184,946

2,511

2,789

34,132

19,208

868

14,056

-

64,890

58,854

6,036

1,216,593

1,016,558

951,447

64,291

820

182,558

178,150

1,425

2,983

50,108

47,098

487

2,523

-

45,766

43,827

1,939

1,294,990

1,280,439

1,226,778

52,815

846

207,023

202,986

2,143

1,894

54,079

49,256

406

4,379

38

47,158

46,814

344

1,588,699

Base Stations

Purchased electricity

Diesel and gasoline (generator)

Renewable energy (solar and wind)

Switching and Data Centres

Purchased electricity

Diesel (generator)

Natural gas

Office Buildings (including call centres)

Purchased electricity

Diesel (generator)

Natural gas

Renewable energy (solar)

Vehicle fuels

Diesel

Gasoline

TOTAL

Energy Consumption (GJ) 2011/12 Fiscal Year 2012/13 Fiscal Year 2013/14 Fiscal Year (*)

(*) Detailed information on the methodology and approach used in calculations is given in the “Principles of Reporting” section of this Report. (**) 2013/14 scope 1 and scope 2 emissions data was assured by the independent audit firm EY.

Scope 1 (**)

Vehicles

F-gases

Fuel used in buildings

Diesel generators

Scope 2 (**)

Electricity consumption in base stations

Electricity consumption in switching and data centres

Electricity consumption in office buildings

Scope 3

Service buses

Business travels by airplane

TOTAL

Greenhouse Gas Emissions (*) (ton CO2 – equivalent)

10,147.1

4,864.4

874.7

947.6

3,460.4

158,457.0

128,682.3

26,973.2

2,801.4

5,168.7

3,990.8

1,177.9

173,772.8

9,054.6

3,440.6

476.8

309.8

4,827.4

171,613.2

138,762.3

25,982.0

6,868.9

5,504.4

4,173.5

1,330.9

186,172.2

10,949.8

3,552.3

3,024.7

352.9

4,019.9

215,705.9

178,918.1

29,604.1

7,183.7

5,781.8

4,505.4

1,276.4

232,437.5

2011/12 Fiscal Year 2012/13 Fiscal Year 2013/14 Fiscal Year

22 Vodafone Turkey SustainabilityReport2013-2014

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“Green Technology” Program in Base Stations During the 2013/14 fiscal year we continued implementing our “Green Technology” Program at our base stations. We initiated this Program in 2009 where we use cutting edge technology in our newly installed or renovated base stations.

Through energy-efficient high-tech practices in the Vodafone Turkey network, we saved energy. We replaced 1,350 old generation air conditioners with new generation models. In existing sites, we launched 750 natural ventilation systems and thus saved energy in air-conditioning. We also reduced the amount of energy used for this purpose by mounting 150 modular (natural ventilation) air conditioners.

By the end of 2013/14 fiscal year we increased the number of base station sites that use 100% renewable energy (that are not connected to the grid) to 8. In addition, we also make use of wind energy at suitable base station sites. We increased these types of sites from 51 to 58 by the end of 2013/14 fiscal year.

Energy Efficiency in Switching and Data Centres Approximately 15% of our energy consumption occurs in our switching and data centres. While building new centres to meet the increasing demand, we also aim to reduce the amount of energy used and greenhouse gases generated per unit, in line with our climate change strategy. We plan to save approximately 216,000 kWh per year by replacing DC power supplies with high-efficiency ones, mounting high-efficiency air conditioners, closing hot-cold air corridors, improving operations of cooling units, and saving 15-20% in electricity consumption of air conditioners. A few examples of our energy efficiency practices are given below:

Thanks to the energy efficient cooling and energy systems used in Esenyurt Data Centre, which became operational in 2012/13 fiscal year, we have earned “Energy Efficient Data Centre” certificate issued by TÜV Rheinland-Germany in “Premium High Quality” level.

In 2013/14 fiscal year, we started operations in Diyarbakır switching centre by using modern infrastructure with high energy efficiency. In this centre, we saved 15% electricity in each air conditioner by closing hot air corridors.

Among our plans for 2014/15 fiscal year are renovating improving older locations such as Izmir, Adana, Ankara, and Güneşli with high-efficiency air conditioning units and improving air channels as well as replacing 12 DC power supplies with high-efficiency DC power supplies.

At the Vodafone Arena Smart Stadium to be opened in 2014, we plan to use high-efficiency energy systems in the design and implementation of technical system control rooms.

Energy Efficiency in Buildings In order to reduce energy consumption in our buildings, we used inverter devices in all air conditioning replacement. In 2013/14 fiscal year, we used LEDs for lighting in all new buildings. With lighting automation in our buildings, we benefit from the sunlight at the maximum level.

Environment-friendly Fleet Management In 2013/14 fiscal year, we continued to implement our environment-friendly fleet management approach and renovated our fleet with diesel vehicles. The percentage of diesel vehicles increased to 99% from 95% in the previous fiscal year. This allowed us to achieve significant reduction in energy consumption and greenhouse gas emissions per vehicle. In addition, although the number of vehicles increased 8% compared to the previous year, our fuel consumption increased 7%. We aim to continue our efforts to save fuel in the coming years.

Waste Management One of the issues we focus on in terms of environmental management is generating less waste and using fewer natural resources. In line with this aim, we ensure safe disposal of wastes produced during our operations in the buildings and networks in conformity with related laws and regulations. While recycling paper wastes, we also encourage the use of electronic invoices by our customers to save resources.

Waste Materials from Buildings Waste materials from buildings include the waste materials generated in our offices and call centres, cartridges, papers, packaging materials and electronic devices. In order to collect waste materials separately, we have waste collection boxes for paper, plastic, glass and metal packaging in our buildings. To reduce these waste materials, and to ensure separate collection and recycling, we carry out awareness, promotion efforts and campaigns for our employees. For instance, we organize waste material collection campaigns for electronic devices out of use. Collected electronic waste materials are recycled at licensed facilities where they are separated as plastic, metal and electronic components, and the hazardous parts are disposed appropriately

For detailed information please visit www.vodafone.com.tr

Afterbeinginspectedbyanindependentauditcompany,ourEsenyurtDataCentrewasdeemedworthyof“GreenIT”certificationinApril2013.Thiscertificationisgivenonlytoenvironment-friendlycentresandEsenyurtisthefirstdatacentreinTurkeytoobtainsuchcertification.

Recycling of waste materials from buildings

In2013/14fiscalyear:• We prevented 700 trees from being cut down by recycling 41

tons of waste paper. • We saved energy equal to daily energy need of 7,500

households by recycling plastics in waste material boxes.• We directly recycled 315 kg metal waste in waste material

boxes

BetweenJanuary2008andMarch2014:• We prevented a total of 10,948 trees from being cut down by

recycling 644 tons of waste paper used in our buildings.

BetweenJuly2008andMarch2014:• We saved energy equal to daily energy need of 42,500

households by recycling plastics in waste material boxes

For detailed information please visit www.vodafone.com.tr/VodafoneHakkinda/yesilesaygi/index.php 23

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Waste Materials from Network Operations In line with the innovations and technologic needs in telecommunication technologies, we replace the devices in our base stations with more energy efficient ones and with superior technologic features. Our priority in the aforementioned transformation is to sell old devices in second hand market if possible, and make them available for use in different technical infrastructure systems. When this is not possible, we recycle these devices in accordance with the laws and international directives. Within the scope of our waste management system, 1,125 tons of waste materials from network operations have been collected in 2013/14 fiscal year in a controlled manner. A total of 5,795 tons of network waste materials have been collected between July 2007 and March 2014. Our waste materials from network operations are recycled at the rate of 99% by certified recycling companies.

Mobile Phone Recycling Users who want to follow rapidly developing mobile technologies frequently replace their old mobile phones with the new ones. For our stakeholders it is important that out-of-use mobile phones are collected and re-introduced into the economy. In response to these expectations, we have placed mobile phone collecting boxes in Vodafone shops in the 2011/12 fiscal year. We aim to improve the process with new campaigns for collecting and recycling mobile phones.

Efficient Use and Preservation of Natural Resources While adopting practices to reduce our footprint in the nature, we also organize activities to increase awareness of our employees on natural issues.

WWF-Turkey Green Office Program We continued WWF-Turkey Green Office Program initiated two years ago with our activities in shops in 2013/14 fiscal year. In cooperation with WWF-Turkey, we drew a roadmap for “Green Shops” Program for the 10 selected pilot Vodafone Shops. We plan to conclude the implementation of the pilot Green Shops program at these 10 Shops in 2014/15 fiscal year. Main criteria for Green Shops are: using LEDs as standard lighting equipment, using timers in display windows and logos to prevent them from lighting before dark, taking necessary precautions in paper consumption and waste management.

Vodafone Turkey Sustainability Week In order to contribute to increasing awareness on environmental issues, we announced the second week of May as “Vodafone Sustainability Week”. This Week aims to increase awareness of all stakeholders, mainly employees, and is the first of its kind within

Vodafone Group.

Within the scope of Sustainability Week we plan to launch our “Respect Green” smartphone mobile application which aims to raise awareness within our ecosystem and which will be open to all users. With this new environment-friendly application, users will get information on sustainability through trainings and tests and have access to e-library to read interesting articles and detailed reports.

Paper Consumption and Recycling Waste Invoices and e-Invoice

In 2013/14 fiscal year, we donated approximately 1 million invoices, in other words 12.5 tons of waste paper, returned to us from our customers due various reasons including wrong address, unclear address or address change to TEMA Foundation. As planned, amount of paper donated to TEMA fell compared to the previous year thanks to the corrections made in invoice address lists and increase in e-invoice application.

Since April 2010, we have been encouraging our customers through campaigns to use e-invoices, which have legal validity, instead of printed invoices. The rate of the postpaid customers that prefer e-bill has increased 7% and reached 57%.

Water Consumption Even though the amount of water used in our buildings is not substantial, we regularly monitor water consumption data and implement several conservation efforts. We reduced our water consumption significantly by using water jet instead of direct cleaning with hoses to clean air conditioner platforms. We also extended the watering frequency of our gardens.

42,681 36,837 35,627 (m3)

Water Consumption

2011/12 Fiscal Year

2012/13 Fiscal Year

2013/14 Fiscal Year

Within the scope of waste invoice recycling and e-invoice programs, we prevented the use of 877 tons of paper in 2013/14 fiscal year and saved approximately 15,116 trees from being cut down.

“Red Respects Green”

Item 1:Iwilltravelonpublictransportasmuchaspossible.

Item 4:Iwillnotleavemymobilephoneandelectronicdevicespluggedinunlesstheyarecharging.

Item 7:Iwillrecyclemymobilephoneandbatteriesattheendoftheirlifecycle.

Item 10:Iwillconservenaturalresourcesandengageinforestationactstocompensateformyenvironmentalfootprint.

Item 3:Iwillclassifymywasteintogroupsandsendthemtorecycling.

Item 6:Iwillsavewaterbyefficientconsumption.

Item 9:Iwillconductmeetingsoverthephoneorteleconferencetoreducebusinesstravel.

Item 2:Iwillpreferelectronicinvoicesinsteadofpaperinvoices.

Item 5:Iwillstrivetoconsumeproductsmanufacturedinasustainableway.

Item 8:Iwillinstallenergyefficientindoorlightingandhomeappliances.

24 Vodafone Turkey SustainabilityReport2013-2014

Occ

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For detailed information please visit www.vodafone.com.tr

Vodafone’s Occupational Health and Safety Culture We attach great importance to health and safety of all individuals within our ecosystem and we lead the country’s telecommunication industry with our occupational health and safety culture. With full awareness of occupational safety, our priority is protecting the health of not only our employees, but also all employees within our ecosystem.

The nature of telecommunication industry presents some risks such as working at height, electricity works, excavation works, traffic risks, etc. In order to avoid such risks, we ensure that necessary measures are taken within the framework of Vodafone Occupational Health and Safety Absolute Rules.

Fibre optic projects that are expanding throughout the world pose new risks. New safety measures such as ensuring safety in excavation sites and fully completing ground studies before excavation for fibre optic cables should be managed. We take measures for safe implementation of our accelerating fibre optic projects.

We constantly audit conformity of all contractors, shops and business partners working on behalf of Vodafone to Vodafone Occupational Safety Standards, guide them in improvement, and avoid business relations with any person or corporation that does not comply with these standards.

Occupational Health and Safety The fact that we are acknowledged both in Turkey and within Vodafone Group as setting an example with our occupational health and safety practices further strengthens our commitment and continuous effort.

We will continue our operations in accordance with ISO 39001 Road Traffic Safety Management System standard.

We will ensure that the practices in ever-accelerating fibre optic projects are performed in line with Vodafone Occupational Health and Safety procedures.

We will improve our occupational health and safety reporting system.

We will continue to work on reducing occupational accidents.

To successfully complete ISO 39001 Road Traffic Safety Management System Certification interim audits, without and serious incompliance.

To develop a new absolute rule for the risks of excavations and to successfully integrate this rule into the existing system.

To implement Safeguard Program in order to make occupational health and safety reporting system more efficient and the subsequent reports more comprehensible.

To reduce our accident frequency rate.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

Conducting our operations in a responsible and ethical way

Absolute Rules for Occupational Health and Safety at Vodafone

• Absolutely fasten your seatbelts while driving a vehicle or on any seat during the trip!

• Never use alcohol and drugs that restrict movement and perception in the workplace and while driving a vehicle! If your routine medication has side effects such as sleepiness or numbness, do not drive any vehicles!

• Never exceed speed limits on business trips and while driving! Travel with appropriate speed in compliance with the rules and according to road conditions and the vehicle!

• Never use mobile phone while driving! If you absolutely must use it, do after pulling the vehicle over or with hands free devices!

• Always wear a safety belt when working at heights, use fall protection system (life-line) and take all necessary measures!

• Unless you are competent or an expert, never conduct electrical work or interfere with electrical systems!

All of our direct investments for occupational safety since 2009 prevent interruption of business processes due to potential accidents, reduce the number of lost days at work, and help us work with a more qualified labour force. The fact that we are acknowledged both in Turkey and within Vodafone Group as setting an example with our occupational health and safety practices further strengthens our commitment and continuous effort.

For detailed information please visit www.vodafone.com.tr 25

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Pioneering Occupational Health and Safety PracticesOur occupational health and safety practices not only fulfil legal requirements, but also cover pioneering works within our industry.

Examples of our pioneering occupational safety practices in 2013/14 fiscal year include structural safety assessment of base station sites, Safetynet that we developed to offer an entertaining form of occupational safety training in modern life, and being the first company in Turkey to obtain BS ISO 39001 certification thanks to our Road Safety Management System. In addition, we implemented many projects in 2013/14 fiscal year, such as sustainable contractor occupational safety management system, obligatory Vodafone occupational safety trainings, Vodafone accredited training companies system, awareness campaigns for expanding the coverage of occupational safety culture, informative presentations, and projects for quitting smoking and leading a healthy life.

Road Traffic Safety Management System Traffic accidents cause serious injuries and loss of life in our country. Therefore, risks of traffic that approximately 43 thousand people within our ecosystem are exposed to is among the most material issues to be managed. The importance we attach to the issue is proven with the fact that out of the six absolute rules we have, four are related to traffic safety.

In 2013/14 fiscal year we continued to give priority to road and traffic safety and thus established the Road Traffic Safety Management System to manage traffic accident risks in the most efficient way. The system is based upon evaluation and improvement of driver and vehicle competencies as well as upon assessing the risks of roads and traffic. We have devised a separate system for each absolute rule and we monitor these under the umbrella of Road Traffic Safety Management System. As a result of audits by an independent institution, in September 2013, Vodafone Turkey became the first company in Turkey and the first telecommunication company in the world to obtain BS ISO 39001 Road Traffic Safety Management System Certification.

We believe that BS ISO 39001 Road Traffic Safety Management System practices contribute significantly to our efforts towards occupational safety and prevention of accidents. With the valuable support of our employees, ecosystem and industry to the road traffic safety management system, we will further improve the system.

Safe Drive Trainings

848 people within our ecosystem attended the Safe Drive Trainings in 2013/14 fiscal year. In the first part of the 1-day training, traffic rules, important information and traffic risks were reviewed in the classroom. In the second part, participants had the opportunity to practice on special courses actively and improved driving skills that they needed to strengthen. If a participant does not complete the training in the proper way, one more day of detailed training is given.

Seatbelt Obligation

According to the results of a survey held in Germany, in case two vehicles travelling with the speed of 50 km/h (urban speed limit) collide head-on, drivers feel 4 tons of pressure.6 Considering this finding, a passenger without seatbelt is almost certain to bounce off the vehicle and get serious injuries or even lose his/her life. At Vodafone, it is obligatory for all passengers in our vehicles, including the ones sitting at the backseat, to fasten their seatbelts. We monitor this practice with spontaneous audits and accident investigation processes and implement verbal or written penal sanctions in case of incompliance.

Compliance with Speed Limits

We know that speed monitoring is very effective in preventing accidents. Therefore we encourage all individuals within our ecosystem to abide by speed limits during business trips and while driving and to travel in accordance with the vehicle’s qualities and laws. With the compulsory vehicle tracking system mounted on each vehicle of our company, business partners and contractors, we provided active speed monitoring. Using this system, we monitored the speed of 2,054 vehicles in 2013/14 fiscal year. When the system reveals that speed limit is exceeded, the driver is warned verbally by the related director. If the same violation is repeated a written warning is given and the final stage is taking disciplinary action.

Avoiding Use of Mobile Phones While Driving

With training and communication activities, we remind individuals not to use mobile phone while driving, which is one of our six absolute rules. We monitor related fines and organize activities to increase awareness on this issue.

Safetynet Smart Application

With our smart application Safetynet, we offer an entertaining tool for learning and raising awareness about our Absolute Rules. Safetynet application is open to public access. It is selected as “the best application” by Vodafone Group and is now used in other countries where Vodafone operates. The application

consists of various sections such as traffic games, importance of speed limits, effect of driving when sleepless or tired, and following distance. The application which was promoted by using screensavers, announcements, prize competition was downloaded by approximately 5,900 people in 15 months.

6 Source: (www.trafik.gov.tr)

26 Vodafone Turkey SustainabilityReport2013-2014

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Traffic Responsibility Action

Not only operating safely, but also increasing awareness in society is among our objectives in traffic safety. In line with this perspective, we, as Vodafone Turkey, became the first company in telecommunication industry to sign the “Corporate Traffic Safety Declaration” within the scope of “Traffic Responsibility Action” led by the Turkish Ministry of Transportation, Maritime Affairs and Communications. We believe that the platform which is established to support corporations in devising their own policies for traffic safety will offer insight to practices related to traffic issues in Turkey.

Awareness Raising Practices We continuously work to maintain high levels of awareness on occupational safety among Vodafone employees and individuals within our ecosystem. In the last four years we reached approximately 19,000 people through posters, flyers, brochures, e-learning programs, smart applications, occupational safety contests, occupational safety day events, and conferences.

“Safe Site, 0 Accident” Within the framework of the “Structural Safety Audit and Improvement of Base Station Sites” project that we launched previous year and continued in 2013/14 fiscal year with the motto “Safe Site, 0 Accident”, we aim to continuously improve the conditions on sites and ensure safety of Vodafone and contractor employees as well as the people living nearby. With the project, a total of 9,330 base stations were audited and reported in terms of the compliance of their building dates and methods with updated occupational health procedures. When deemed necessary, sites were improved or rebuilt in accordance with related standards. By allocating direct investment in the project, we maintained our position as the company that makes the largest investment in telecommunications sector in terms of occupational health and safety.

Contractor Occupational Safety Management System With our “Contractor Occupational Safety Management System”, we aim to ensure that every individual within our ecosystem performs his/her job safely and to establish high health and safety standards. By means of this system, we have increased the level of awareness in the sector by improving the knowledge and skills of the companies that work for Vodafone Turkey on sites regarding this issue. We have developed occupational health and safety standards, such as policies, procedures, instructions and training competency, beyond legal requirement and ensured that it is obligatory for our contractors and solution partners to comply with these standards. The system includes steps such as work safety assessment of contractor before tender, compulsory Vodafone occupational safety trainings, training intuitions accredited by Vodafone, effective occupational safety teams, occupational safety audits on sites, and making occupational safety an integral part of our contracts.

59

56,000 hours

807

565

620,000 hours

6,006

Number of contractors assessed in terms of occupational safety

Total hour of occupational safety trainings in topics such as working at heights, safe driving, basic occupational safety, safe working in electrical works (Vodafone and contractor employees)

Number of occupational safety audits in base station sites

Achievements in Contractor Occupational Safety Management System

2013/14 Fiscal

Year

Between 2009 and

March 2014 (total)

Number of OHS Violations by Contractors

We implement serious financial and/or administrative sanctions on contractors that are proven to fail to reflect the promised occupational safety management system upon the site. Companies that do not correct their incompliance are excluded from Vodafone Turkey ecosystem. The table below shows the total number of occupational health and safety (OHS) violations by contractors. Number of violations has been mostly falling year on year. Factors such as seasonal conditions, changes in companies and adaptation of new companies to the system may cause fluctuations in the number of violations.

250

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150

100

50

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Septem

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Novem

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January11

March11

May11

July11

Septem

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Novem

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January12

March12

May12

July12

Septem

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Novem

ber12

January13

March13

May13

July13

Septem

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Novem

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January14

March14

For detailed information please visit www.vodafone.com.tr 27

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Our Occupational Health and Safety Performance

Major and High-Potential AccidentsThere is a decreasing trend in accidents per working hours, and in the frequency of high-potential accidents occurred in our ecosystem for the last three years. In the 2 high-potential accidents that took place in 2013/14 fiscal year in our ecosystem, no personnel were exposed to permanent disability.

Accident Frequency Rate

Note:Accident Frequency Rate = (Total Number of Accidents / Total Working Hours) x 1,000

9

8

7

6

5

4

3

2

1

0

November2009

March2010

March2011

March2012

March2013

March2014

November2010

November2011

November2012

November2013

July2010

July2011

July2012

July2013

2013/2014

2010/2011

2011/2012

2012/2013

Occupational Health and Wellness In addition to improving wellness level in our offices and sites, we also aim to make our employees and their families healthier through healthy life projects we devise. In 2013/14 fiscal year, our health units throughout Turkey were visited for a total of 27,670 times for polyclinic services.

Health Programs for Employees and Their Families• HealthyDaysSeminarsforSuperReds

• ProgramforQuittingSmoking

• HealthyLifeProgram

• PregnancyMonitoringProgram

• MedicalExaminationServices

• MonitoringDisabledEmployees

• PreparationProgramforVodafoneTurkeyMarathon

• BusinessandLifeBalanceProgram

• HearingTest

• VaccinationActivities

Cigarette-Free Life for Health Program: Under the supervision of our on-site physicians, we offer support to cigarette addicts among our employees to help them quit. We monitor employees implementing the program for quitting smoking. As an incentive, we offer them points that can be used for shopping if they manage not to smoke for 1-6 months. In 2013/14 fiscal year, 136 employees volunteered to quit smoking with this Program.

Healthy Life Program: Under the supervision of our on-site physicians, we offer support to employees who want to lose weight and help them to lead healthier lives. In 2013/14 fiscal year, 181 employees volunteered to lose weight with this Program. As an incentive, we offer them shopping points proportionate to the kilos they lose.

We frequently visit sites to make sure that our base stations operate effectively and regularly. During these visits, we sometimes meet contractors’ employees. Although I am not an occupational safety expert, I check occupational safety documents and personal protective equipment of contractors. If I find any defects, I suspend operations until they correct these defects. I believe that occupational safety is not

only the responsibility of occupational safety teams, but also an integral part of our job. We all have responsibility in this. I am very happy to see that Vodafone attaches so much importance to this issue.

Hakan Akçam, Transmission Access Operations Expert

Employee Opinion

28 Vodafone Turkey SustainabilityReport2013-2014

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For detailed information please visit www.vodafone.com.tr

Our Approach to Corporate Security Management The main purpose of our activities within the scope of Corporate Security Management is to identify the possible threats and vulnerabilities that may damage Vodafone Turkey's income, image and reputation, and take preventive and mitigation measures. Our Corporate Security Management approach includes anti-fraud and anti-corruption, information security, compliance, business continuity, personnel and asset security. In order to protect Vodafone’s ecosystem and customers from damage, we objectively assess technical, commercial, ethical and reputational risks and manage these in line with Vodafone Business Principles.

Anti-Fraud and Anti-Corruption We expect all employees within Vodafone Turkey's ecosystem to comply with our Business Ethics Principles and Business Principles. “Zero tolerance” policy is applied in anti-fraud and anti-corruption practices. We perform risk assessments against all types of internal and external misconduct that may happen in Vodafone within the frame of Anti-Fraud Management Policy and we take measures to prevent the risks to take place or reoccur.

Through risk assessment, we make due diligence by examining (and auditing on site, if possible) high-risk suppliers and business partners in our ecosystem in terms of information security, business continuity and reputational issues. We ensure that measures are taken to minimize the identified risks. We provide trainings on fight against corruption for all our employees and raise awareness. Speak Up (Ethics Reporting Hot Line) is the ethics reporting hot line service, which all employees in Vodafone Turkey ecosystem share their questions and opinions and can report misconduct incidents they have witnessed and/or suspected anonymously via a dedicated website and phone line, without the need to disclose their ID. We receive this service via an impartial, third-party global company.

In order to create awareness in employees on laws and regulations that are binding for Vodafone as well as on our own policies, we launched the Anti-Corruption Training. 89% of Vodafone Turkey employees completed this e-training.

Information Security and Compliance We consider our customers’ trust in us regarding the security of their personal information as our most essential asset. Maintaining this trust is amongst our most fundamental responsibilities towards our customers and is very important for our business success. We protect our customers' personal information and mobile contact details with the security controls defined by ISO/IEC 27001, which is International Information Security Management System Standard. ISO/IEC 27001 is renewed every three years after a thorough audit by an independent institution. In 2013/14 fiscal year, Vodafone Turkey and VodafoneNet (our subsidiary operating in fixed line services) renewed their ISO/IEC 27001 Information Security certifications. In addition to ISO/IEC 27001, we take advantage of being a part of Vodafone Group and apply the best practices identified by Vodafone Group on information security and privacy in all our workflows and information systems.

Corporate Security

We will continue to put emphasis on emergency and business continuity management in all stages of our services.

We will increasingly put emphasis on compliance with international standards regarding the management of information security and privacy of customer information.

To ensure the certification of Vodafone Net and Vodafone Bilgi with ISO 22301 Standard and to continue helping Vodafone Kenya (Safaricom) for compliance with ISO 22301.

To renew compliance certification of Vodafone Turkey with ISO 22301.

To continue compliance of Vodafone Turkey and Vodafone Net with ISO/IEC 27001 Information Security.

To continue helping Vodafone Kenya (Safaricom) for compliance with ISO 27001.

To ensure compliance of suppliers with minimum security standards. With this aim, for instance, to audit all of our call centres and stakeholders classified as critical suppliers on-site.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

Conducting our operations in a responsible and ethical way

Anti-Fraud Envoys Anti-FraudEnvoysProjectisanewinitiativethatwelaunchedtoidentifyandpreventpossiblefraudsthatmayharmourcustomersandCompany.Ataninformationsecurityevent,weinvitedouremployeestobecomeenvoysandinformedthemthroughbrochures,postersande-learningactivities.Werequestedthemtoinformusonsuspiciousandfraudulentcallsviaphoneandemails.Anti-FraudEnvoysProjectwaslaunchedinFebruary2014.Intwomonths’time,40notificationsweremadeand13fraudulentlineswereclosed.Linesbelongingtoothernetworkswerereportedtorelatedoperators.

For detailed information please visit www.vodafone.com.tr 29

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Current Practices Practices to Reinforce Information Security In order to reinforce the security of customer information, we increased the security level of information systems within our sales channels. For instance, an additional security layer has been commissioned to provide access for our shops to customer information only if PIN or ID information sent to customer’s mobile phone is entered into the system. In addition, virtual monitors reinforced against data leakage are being used. The infrastructure and management of these monitors are performed by Vodafone.

Information Security DayIn order to increase awareness of employees on information security, we organized “Information Security Day” events in seven buildings between February and April 2014. More than 600 employees attended the “Information Security Game” specially devised for these events. Via diverse channels (video messages by senior executives, interactive trainings, virtual games) we informed our employees on the five simple steps for secure operations at Vodafone and on information classification. Employees were also informed on Anti-Fraud Envoys. Having reached 80% of employees, we plan to repeat Information Security Day events every year.

Information Security Risk ManagementWith our Information Security Risk Management activities regularly held since 2008, we ensure that the measures we take for information security are aligned with our ever-improving business processes and infrastructure and are in continuous improvement. In 2013/14 fiscal year, not only technology units, but also business units such as marketing, sales and customer relations were included in the scope of Information Security Risk Management activities.

Business Continuity After obtaining BS 25999 Business Continuity Management System certification three years ago, we transformed this certification into ISO 22301 Business Continuity Management System. Our performance in this area has been assessed in detail by an independent external audit firm, based upon measurable quantities and thus our certification became permanent.

In addition to being the first telecommunication company in Turkey to obtain ISO 22301 certification, we share our experience with other Vodafone Group companies such as Safaricom Kenya and Vodafone Qatar through consultancy and audit services. Within the scope of our Business Continuity Management System, we have an extensive and experienced staff of 32 ISO 22301 Chief Auditors and 40 ISO 22301 Internal Auditors.

Personnel and Asset Security We identify the internal and external threats against company employees and their physical assets, define sub-risk levels for these threats and apply mitigation measures for these risks. Our goal is to prevent losses, thereby ensuring a safe and secure environment for company personnel and operations.

5 basic steps and information classification Please pay attention to 5 steps and information classification to work securely at Vodafone!Information Security ensures our strength.

Lock your device!Your smart phone, laptop and tablet store important information. Lock you devices to block access by other.

Protect your password!Passwords are very critical for the safety of our systems. Under no circumstances do not share your system password with others.

Keep your desk clean!Do not leave any information-material about Vodafone in your working environment or on your desk and keep them safe and locked.

Collect documents from the printer!Collect the documents you printed immediately and do not leave original documents behind at the copy machine.

Think who is listening!Important information can spread out not just from papers or machines but from you as well. Be aware of what you say about Vodafone in public places.

Classify the information!Especially the information classified as C3 and C4 should be protected and kept according to the principles in Information Classification Standard.

Vodafone

Emergency Management In order to become a strong society and institution, individuals must be aware of disasters and other emergencies. With this insight and in accordance with ISO 22301 and ISO 27001 Standards, we have disaster and emergency management procedures and teams. In addition, all employees attended the e-training on emergency management in 2013/14 fiscal year and this training became an integral part of orientation practices.

We have continued our strategic collaboration with Search and Rescue Foundation (AKUT) for emergency management. We started to audit not only MSC and data centres, but also BSCs belonging to Vodafone to be prepared for emergencies. We completed audits of 25% of the most critical BSCs. We aim to increase this ratio 25% every year and complete all audits in three years. Within the scope of the Directive 28281 for Responsibility against Chemical, Biological, Radiological and Nuclear Threats, we distributed escape masks to employees and AKUT gave them training on how to use these masks.

89% of Vodafone Turkey employeescompleted Anti-Corruption e-training.

30 Vodafone Turkey SustainabilityReport2013-2014

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Our Supply ChainWe, as Vodafone Turkey, procure a significant amount of our services and products from suppliers. We purchase products and services from approximately 800 actively operating companies, most of them being leasing and technology companies. We purchase network and IT equipment, maintenance services of such equipment, mobile phones, SIM cards and other devices from our suppliers. Some of our call centre services are also provided by subcontractors. Most of our active suppliers are local companies, whereas as some are global corporations. In addition, Turkey is one of the main global procurement regions of Vodafone Group. As a member of senior executive team of Vodafone Global Procurement, our company joins a number of procurement processes. In the last fiscal year we spent around TL 2 billion on network and IT equipment and services that allow us to run our network and on products such as mobile phones, SIM cards and other devices we offer to our customers.

Supplier Chain Efficiency Program: My Vodafone, My Business “My Vodafone, My Business” efficiency program has been continuing for two years and focuses mainly on economic revenues, time and environmental efficiency. In terms of environmental efficiency, we perform joint projects with our suppliers to manage the consumption of resources such as electricity, paper and fuel more efficiently and we implement these projects structurally. In order to increase awareness, we share the results of the program with our suppliers and employees. Considering the fact that working in a safer business environment has positive influence on efficiency and economic revenues, we support our suppliers in improving business processes and capacities to increase their occupational health and safety (OHS) performance. We ensure that all suppliers receive the required OHS trainings before working in the site. We also make regular site assessments to ensure compliance of suppliers with our Ethical Procurement Principles.

Supplier Performance Management We apply Vodafone Supplier Performance Management Program in order to reduce risks that may arise, to ensure constant development of our main suppliers and to create mutual values and benefits. Under this program, we assess the overall performance of our suppliers twice a year in terms of technology, OHS, commerce, quality, information security, and sustainability. Out of the 17 suppliers we assessed in 2013/14 fiscal year, 76% had performances meeting our expectations. We shared the results of our Performance Assessment with our suppliers and planned actions for improvement by working together with those that we expect better results. When we need to work with a new supplier, we implement an Efficiency Assessment Process that identifies and evaluates potential risks.

Responsible Supply Chain

With our Supply Chain Efficiency program, we will continue to inform our suppliers on our OHS rules and raise awareness.

With the assessments that we conduct within the scope of our Supplier Performance Management program, we will ensure constant improvement of our suppliers.

To give information to at least 100 suppliers at the OHS Forum that we will organize within the scope of our Supplier Performance Management program.

To make sure that all employees of our suppliers receive at least one training on sustainability.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

Conducting our operations in a responsible and ethical way

One of our material topics is to ensure our suppliers perform their activities on a level in accordance with Vodafone standards in ethics, environment, occupational health and safety.

Examples of sustainability related criteria on the suppliers’ scorecard

• Commitment to Code of Ethical Purchasing including child labour and forced labour policies

• Documentation of Environmental Management Systems compliance with ISO 14001 or EMAS standards

• Documentation of Social Management Systems' compliance with SA8000 or equivalent standards

• Documentation of Occupational Health and Safety Management Systems' compliance with OHSAS 18001 or equivalent standards

• Evidence showing that the supplier is managing social, environmental and OHS issues within its own supply chain

• Evidence showing that the supplier is managing risks and opportunities in relation with the climate change and its water footprint

• Evidence showing measures taken against bribery and corruption

• Evidence showing that the supplier is managing issues such as equality, diversity and inclusion

For detailed information please visit www.vodafone.com.tr 31

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Our Employees With the aim of creating an organizational culture with high performance, we will ensure that our colleagues act through the principles of “speed”, “simplicity” and “trust” and work in a customer-focused, ambitious, competitive, and innovative manner while preserving their local roots.

Through Vodafone Red Academy and in line with our strategy, targets, and material issues, we will create a high-performing organization that is open to learning by designing and developing improvement programs.

As of the first day of work at Vodafone, we will continue to give priority to employees’ career development and offer them a variety of career opportunities.

In order to lead, improve and guide our employees in their career development process, we will launch our “Career Paths” program and “Career Mentoring” process.

We will increase the variety and number of collaborations with universities.

We will become a workplace that sets an example with its “sensitivity towards gender equality”.

To continue “Vodafone United” team coaching programs with 20 teams. To support especially new executives and teams through team coaching.

To conclude “Women in Technology” mentoring process.

To launch Vodafone Turkey corporate mentoring process; to ensure that 25 executives receive coaching support and 80 employees benefit from the mentoring process initiated throughout the company, either as a mentor or a mentee.

To provide “Vodafone Way of Retail” training to 4,335 employees 700 Vodafone shops that will start to implement Vodafone’s customer-focused new global concept. To include 700 shop managers in the development-oriented Assessment Centre.

To increase the training subjects and number of groups in the “Red Code” Training Catalogue, which helps employees personally choose the trainings they will take. To increase the number of trainings by 10% and number of participants by 30%.

To increase the diversity of personal and professional development trainings in “Red Code” to help employees invest in their personal development. To support these trainings with e-trainings.

To perform the communication of all Red Academy products, trainings and projects via Red Academy portal to be launched in October.

To increase internal transfer and/or promotion rate to 70% (currently 61%) within the scope of “Red Experience”.

To hold “Supporting Functional Career Paths Fair” in September 2014 following the “Commercial Functions” Fair in November 2013 and “Career Paths” Fair in April 2014. To ensure that our employees benefit from career mentoring services.

To organize “Data, Everywhere!” Certification Program in two universities; to expand and promote the “mobile class” training platform.

To take initiatives to make the ratio of female and male employees equal. To increase the number of women among new employees from “Discover Young Talents” and in the technology business in general.

Our approach Our commitments Objectives for 2014/15 Fiscal Year

Conducting our operations in a responsible and ethical way

32 Vodafone Turkey SustainabilityReport2013-2014

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Demographic Information on Employees The profile of Vodafone employees is qualified enough to help us create a “high-performing culture” and is in line with the anticipations of our industry, with diverse levels of age, know-how and experience. As of 31 March 2014, we have 3,203 employees. In addition to our permanent employees, we receive support from various suppliers especially for call centres and technology services.

We support the support female and male employees' contribution to the national economy by taking part in business life in a balanced manner. Distribution of our permanent workforce as per gender is given in the table below. Although there is not substantial change in the number of employees, total share of female employees within our labour force increased from 40% to 41% in 2013/14 fiscal year.

In line with our diversity and inclusion targets, we offer equal opportunities to women in new recruitments. The table below summarizes the results we achieved with this aim.

Note: The number of the employees was given as of 31 March, which is the last day of our fiscal year.

Note: In order to offer all kinds of call centre services to all customers, including corporate customers, we started to perform our Call Centre operations via Vodafone Bilgi ve İletişim Hizmetleri A.Ş. that started operations in May 2013.

(*) Other: Covers employees who mainly work in technology and sales in regional centres in 11 cities, including Istanbul, Ankara, Izmir, Adana, Antalya, Bursa, Diyarbakır, Erzurum, Kayseri, Sakarya, and Samsun.

43

555

2,714

3,312

922

967

1,423

3,312

39

474

2,694

3,207

915

967

1,325

3,207

44

496

2,663

3,203

983

923

1,297

3,203

Senior Management

Middle Management

Other (Senior Expert, Expert, etc.)

Total

Headquarters (Istanbul)

Call Centre (Istanbul, Ankara)

Other (*)

Total

Number of our Employees by Staff Category

Number of Employees by Region

2011/12 Fiscal Year

2011/12 Fiscal Year

2012/13 Fiscal Year

2012/13 Fiscal Year

2013/14 Fiscal Year

2013/14 Fiscal Year

Our Human Resources Policy Priorities in Our Human Resources Policy are as follows: • To create a customer-focused organizational culture that can

“anticipate the requirements of our customers, that has turned innovation into the way doing business by putting ourselves into the shoes of our customers, that creates difference by way of adopting and enriching its business”,

• To meet our employee requirements in the most efficient manner, to create the best human resource and to train professionals through internal performance and talent management by providing our employees with the continuous training and development, who will, in telecommunication sector, lead mobile data revolution in Turkey,

• To create an organizational culture that learns and teaches. To be a perfect company that is customer oriented and that believes in the strategic importance of leadership development and team spirit.

In line with our Diversity and Inclusion Policy, in our processes of selection, recruitment, and performance assessment and promotion, we feed and take strength from our diversities.

ADMIRATION “I am glad to have a connection with this brand.”

What should customers feel?

What should customers see?

BECAUSE our principles are

customer-focused

SPEED TRUST

ambitious and competitive innovative having local

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SIMPLICITY

“Vodafone Way” Principles While realizing our vision to become the most trusted and preferred communication brand through absolute customer satisfaction, we implement the basic principles of our corporate culture, also known as the “Vodafone Way”. Acting as a valid and concrete corner stone for all employees, these principles guide us in working together and with customers to reach successful results.

For detailed information please visit www.vodafone.com.tr 33

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Diversity and Inclusion Our human resources policy is based upon the principles of diversity and inclusion. In line with this framework:

• Believing that differences create value, we try to transform the diversity within our corporation into benefits for our customers, employees, business partners and the society.

• In recruitment and promotion processes we try to select competent people with qualifications required for the position, regardless of their gender, age, race, ethnic background, physical strength, opinions, religion, or social status.

• The “Corporate Diversity Directorate” established in 2012 works to offer equal opportunities in all employees and create a rich and productive work environment feeding from diversity.

• We contribute to the inclusion of women in labour force and equal opportunity not only with our human resources policy, but also our social investments.

Inclusion of women into business life and equal opportunities

The social and economic conditions of our country as well as the expectations of our industry define our corporate priorities in terms of diversity and inclusion. Among these priorities, issues that are the most material to us are inclusion of women into the business world and equal opportunity. Therefore we positioned women’s employment as a cornerstone in our corporate culture. We, as Vodafone, believe that achieving equality in social life and consequently increasing women's employment should be adopted as a “smart economy model”.

While the ratio of women working in telecommunications sector is 23.2%, this ratio is 41% at Vodafone Turkey. Although this figure is a positive performance indicator, we try to increase this ratio and employ more women in executive staff.

With our vision of offering equal opportunities to women and men within our corporate culture, in 2012 we became the first telecommunications company to receive “Equal Opportunities Certificate (FEM)” implemented by KAGİDER with technical support of the World Bank. We improve and continue our efforts in this area. Under the “Equality at Workplace” program implemented by the Ministry of Family and Social Policies, we support the objective of economic participation of women to economy, reducing the opportunity gap up to 10% in the next three years. Within the scope of this project, in order to extend the “corporate diversity and inclusion” concept throughout the company, we are providing “Corporate Diversity and Inclusion” trainings to all executive staff, mainly to our team leaders. According to our plans, all executive staff and then all Vodafone Turkey employees will have received this training by 2014 and 2015, respectively.

We implement a mentoring program within our Technology function, which has the least number of female executives. In 2014, seven women executives will guide seven non-executive employees in this function in achieving their objectives. In addition, we continue to implement the “PLUS1” approach for placing female candidates into positions of top and middle level managers who have left the position or the managers whose roles have changed.

Performance Management The main objective of Vodafone Performance Management is to contribute to build a “high-performing culture”. In our company there is a four-stage performance dialogue cycle. In the beginning of each fiscal year, we determine our employees’ annual individual targets and development plans. We record their improvements according to the targets and plans. We evaluate the individual achievements at the end of each year according to the key performance indicators. In the final stage of the cycle, as required by the fair awarding system, we conduct a performance assessment and determine our employees’ remuneration according to the result. With the online system launched in 2012/13 fiscal year, we achieved a simpler, faster performance assessment process as well as a healthier assessment of the entire organization. In this way, we accomplished a decline in the number of meetings as well as an agile assessment and calibration process.

62

38

51

49

58

42

Male

Female

Gender Distribution of New Recruits (%)

2011/12 Fiscal

Year

2012/13 Fiscal

Year

2013/14 Fiscal

Year

5

1

1

0

51

20

4

7

44

78

56

60

0

1

39

32

Senior Management

Middle Management

Other

Total Average (%)

Age Distribution by Staff Category (%)

2011/12 Fiscal Year

50 and Above

Between 40-50

Between 30-40

Below 30

2012/13 Fiscal Year 2013/14 Fiscal Year

3

1

0

0

48

20

6

9

49

75

58

60

0

4

36

31

50 and Above

Between 40-50

Between 30-40

Below 30

5

1

0

1

51

24

7

11

44

73

58

59

0

2

35

29

50 and Above

Between 40-50

Between 30-40

Below 30

28

24

43

39

28

24

44

40

72

76

57

61

72

76

56

60

Senior Management

Middle Management

Other

Total Average (%)

Gender Distribution by Staff Category (%) 2011/12 Fiscal Year

Female FemaleMale Male

2012/13 Fiscal Year 2013/14 Fiscal Year

32

27

43

41

68

73

57

59

FemaleMale

34 Vodafone Turkey SustainabilityReport2013-2014

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Talent Management Our talent management strategy starts with employing professionals with high potential at Vodafone and continues with identifying talented employees, facilitating their development and preparing them for leader positions. We attach great importance to talent management which will help us in continuously achieving our business targets and training future leaders within the company. As a global process within Vodafone Group, Development Boards are critical for a corporate culture in which high-performance and talents are noticed and trained for leader positions. At Development Boards, we review professional development of employees, discuss their personal development needs and assess their participation in global talent programs such as “Inspire” and “Columbus”. The fact that Vodafone is one of the most preferred employers by professionals and newly graduates is mainly due to our company’s ability to provide experience in different business units and encourage career opportunities in various countries within the scope of talent management.

Discover Young Talent Program Discover Young Talent Program, which we have been conducting seamlessly since 2008, is a platform that helps young individuals with high potential earn the chance of getting experienced in a global company and stepping into the fast, competitive, entertaining, and pushing business life in the telecommunications sector. Within the framework of this program, talented newly graduates with high potential attend our orientation program where they get to know the telecommunication industry as well as our products and services. Working at our call centre and shops for five weeks, these young talents get experienced in points of contact with customers. After a busy orientation program, we offer the opportunity of job rotation to provide them know-how on different functions of our organization and encourage them to gain significant experience in the first years of their careers. Thus, young talents that we would like to see among the senior executives of Vodafone in the future gain multidimensional experience by assuming responsibilities in diverse functions and business lines. Since the launch of the program in 2008, approximately 300 young talents joined our family. Applications for Discover Program are made via www.kariyer.net. Our assessment centre starts interviews in late February every year and selection and placement is completed in May.

Columbus Talent Exchange Program By attending Vodafone Group’s Columbus Talent Exchange Program since 2011, we offer our young employees an opportunity to gain international and project-based business experience. We provide some of our high performing employees the opportunity to get 2-year experience in one of Vodafone’s companies abroad. This year, three employees who had attended Vodafone through Discover Program had the possibility of working abroad. In the same way, we have two Columbus participants in our offices from Vodafone Italy and Germany.

Vodafone RED Academy With our vision of raising “Turkey's best technology and communication leaders”, we always aim to learn and teach to improve our performance to more advanced levels. Our training and development centre Vodafone Red Academy designs and offers modern learning and development solutions in line with our corporate strategy and individual needs to a target audience of approximately 28 thousand people, comprising Vodafone, shops and subdealer employees.

Vodafone Red Academy and University Collaborations With the “Data, Everywhere!” Program that we have been offering with the collaboration of Vodafone Red Academy and universities since 2012, we provided 284 students with the opportunity to get to know the telecommunication industry. Students get theoretical and practical information on the nature and applications of mobile data in the program, which is designed and presented entirely by the internal trainers of the Red Academy. While all participants receive certificates at the end of the program, those who are amongst the top-ranked in the exam at the end of the program get the opportunity to exclusively participate in the pre-processes of Vodafone Discover Young Talent Program. So far, eight students who attended the Program organized at Kadir Has University, Istanbul Technical University and Çukurova University were included in our Discover Young Talent Program.

Mission of Vodafone Red Academy: Tobecomeadevelopmentcentrefeedingallourecosystemwithourglobalknowledgeandlocalexperiences.

Vision of Vodafone Red Academy:ToraiseTurkey'stoptechnologyandcommunicationleaders.

90%: Percentage of employees “proud to work for Vodafone”

Throughtheregular“EmployeeSatisfactionQuestionnaire”conductedeveryyearinVodafoneGroup,wegettheopportunitytoevaluatethecurrentworkingenvironment.TheresultsofthequestionnairethatisansweredanonymouslyareusedtomeasuretheloyaltyofVodafoneemployees,tofindwaystoimprovethisloyalty,andtoevaluatetheperformanceofexecutives.Accordingtothe2013questionnaire;employeeloyaltyindexscoreincreasedfrom76%to80%.“EmployeeNetPromoter’sScore”whichmeasurestherateofemployeesrecommendingVodafoneproductsandservicesincreased16pointscomparedtothepreviousyear.Thepercentageoftheemployeeswhoare“proudtoworkforVodafone”is90%.WhenwecompareourperformancevalueswithinVodafoneGroup,weseethatinallquestionsandkeyindicators(including“speed,simplicity,andtrust”values),ourscoresimprovedcomparedtothepreviousyear.

VodafoneRed Academy

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We launched “Mobile Communication Technologies” Certification Program with Istanbul University in February 2014. As an exemplary practice that supports our “Digital Transformation” strategy, the training is given by internal trainers Red Academy to 38 students through webinars. This Certification Program will be launched in two other universities in Fall 2014 academic term.

“Mobile Training with Tablets”, which is brought to life by Kadir Has University and Vodafone Red Academy with the aim of introducing a new approach to the concepts of student and classroom in universities, enables students to have access to all information on their lessons via tablets, whenever and wherever they want. Students of the New Media School at the Faculty of Communication in Kadir Has University seamlessly and efficiently connect to the class via 3G technology by using the smart tablets distributed by Vodafone. With the Mobile Training System, all educational tools such as presentations, visuals, videos will be shared with students regardless of time and place. In addition, homework, projects and exams will be given via smart tablets.

Internal Training Process Red Academy guides our employees on their vocational and personal development journey with an internal trainer staff of 160 people. Approximately 60% of trainings within the company are given by our internal trainers. Our trainers design learning solutions in line with our business objectives and transform these into efficient training programs in various areas. Thus, they support the development of a large ecosystem of Vodafone employees, suppliers, shops, and universities.

We support our internal trainings with new learning technologies. Our Online Training Management System offers our employees a platform to have personal access to all personal and professional development trainings. Through the system, participants can easily plan, follow and report in-class and online trainings as well as examine training contents and reach the needed trainings. On the other hand, we use Mobile Training (M-Training) method while preparing short trainings that need to be dispersed rapidly to a wide target audience through all channels. In addition, with Electronic Trainings (E-Training) we offer all employees at sites and the call centre the required trainings in systems, products-services and campaigns. In our E-Training catalogue there are more than 2,000 professional and personal development trainings.

Training Indicators We provided training for employees with an average of 3.9 days of training per person, which amounts to a total of 99,725 man-hours. In addition, we reached a training volume of 2.8 days per person, with a total of 21,185 man-hours. We increased the share of online training to 42%.

Performance indicators of in-class and online training programs in 2013/14 fiscal year are given in the tables below.

80

62

25

Senior Management

Middle Management

Other (**)

Average Hours of Training Per Person Per Year Based on Function (*)

Function 2013/14 Fiscal Year

(*) Participant data received assurance from EY.

(**) Includes all staff operating under Senior and Middle Management.

Note: 8 hours of training is accepted as 1 training day. The figures are as of 31 March, 2014, which is the last day of 2013/14 fiscal year.

(*) Training data received assurance from EY.

(**) Includes all staff operating under Senior and Middle Management.

31

22

Our Employees

3rd Party Employees

Average Hours of Training Per Person Per Year (*)

(*) Training data received assurance from EY.

Note: All Vodafone employees benefit from training under equal conditions and training indicators are not monitored in terms of female/male employees. Therefore, there is no gender distribution of the data above. 8 hours of training is accepted as 1 training day.

7,230

3,174

429

3,627

23,144

3,503

440

19,201

30,374

4,220

1,844

227

2,149

8,246

1,981

216

6,049

12,466

Behavioural Trainings

Middle Management

Senior Management

Other (**)

Functional Trainings

Middle Management

Senior Management

Other (**)

Total

Trainings Provided to our Employees

Number of Participants (*)

Person x Day

36 Vodafone Turkey SustainabilityReport2013-2014

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Examples of Red Academy Programs

Leadership and Development Programs

Functional Development Programs

For the development of leadership skills, we support first level managers with the Fundamentals of Management Program; and senior managers with Advanced Management Program (AMP). Both programs consist of two modules and last 3 days each.

This program aims to support the expansion of feedback culture within the company by improving feedback skills of all managers for better coaching.

This program aims to support the young talents who will start working for Vodafone Turkey after completing their Discover process in their adaptation and improvement processes at the company.

Inspire, which is a long-run improvement program designed and developed by Vodafone Group for its employees who make difference thanks to their performance and potential in parallel with talent management processes, is planned in two different structures for the managers and senior directors who take part in the leadership team. Nominees for leader roles find the opportunity to develop their leadership skills and benefit from the experience of a mentor for 12 days.

This training is designed in order to increase the efficiency of our job recruitment decisions and to support our managers in executing selection processes in a professional manner.

Coaching and mentoring is a development tool offered by Red Academy with the aim of improving performance of employees, developing leadership talents of executives and accelerating personal development process. Expert coaches support our executives. Goal of this practice is to improve employee loyalty and improve Vodafone’s overall performance.

Book of Human Resources Practices for Efficient Team Management is designed by Red Academy to provide answers to questions that executives or their teams might face during corporate business processes. The book contains titles such as occupational health and safety, organizational efficiency, human resources processes, change management, remuneration policy, benefits, orientation, performance management, training-development, and resignation.

Vodafone Efficiency Pack training gives information on simple methods and tools for development in issues such as meeting management, materialization and time killers.

These training programs are organized in order to increase the quality of service in sales channels that we aim to create the best customer experience, to establish long-term customer loyalty and to improve the knowledge of employees on products and services.

Vodafone customer services academy is a program that aims to develop professional and technical expertise of the authorized personnel, their services and sales focuses, sectorial awareness, and personal and managerial competences by the means of mixed training method.

It is a training and development program which, while developing our Network and IT employees’ operational and technical competences, ensures that they gain in-depth expertise in terms of IP Convergence, Network Optimization and New Technologies.

It is a development program extending over a period of time and aiming to improve professional and technical expertise as well as personal developments of the employees, in line with the strategies of the finance department.

It is a training and development to train customer-oriented, agile, competitive and creative marketing teams that will ensure Vodafone to become the most popular and trusted GSM brand.

It is a development program consisting of seminars aiming to improve awareness of Human Resources employees' on sectorial awareness and to provide them with a vision by feeding them with different kinds of expertise.

RED CODE (Competency Development) is a training catalogue of in-class trainings developed in line with expectations and suggestions of employees, with the aim of supporting continuous development and learning. Designed with the guidance of “Vodafone Way” values, RED CODE supports personal development needs. With this catalogue, employees may select and demand trainings based upon their needs.

Vodafone United is a one-day teamwork for working teams. It is an effective tool in improving team spirit and inter-departmental cooperation with the aim of achieving continuous improvement within and outside the team.

We structure our rich portfolio of trainings within the online training catalogue offered by Vodafone Group in six micro-portals: Customer Obsession Zone, Technology Academy, Marketing Academy, Finance Academy, HR Academy, and Supply Chain Management Academy.

These are trainings to support the employees of our third party and solution partners for their functional and professional developments. These trainings mainly cover the topics of technical equipment and systems.

This program aims to boost the service quality of shop employees and customer satisfaction to the highest level at Vodafone Shops. Red World Program’s objective is to offer a systematic development process and increase satisfaction of employees of our shops. Performance of employees of our shops is assessed within the scope of this program.

Fundamentals of Management & Advanced Management

The Vodafone Way of Feedback

Discover Young Talent Development Program

Vodafone Global Inspire Talent Program

Vodafone Way of Hiring Training

Coaching and Mentoring

Book of Human Resources Practices for Efficient Team Management

Vodafone Efficiency Pack Training

Excellence Trainings in Sales Channels

Customer Services Academy

Technology Academy

Finance Academy

Marketing Academy

Human Resources Academy

Red Code

Vodafone United

Academy Portals

Trainings Provided to the Third Parties and Solution Partners

Red World Program

Competency Development

Trainings Provided to the Third Parties and Solution Partners

For detailed information please visit www.vodafone.com.tr 37

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Our Performance in Achieving Objectives

Our approach Our commitments Performance in 2013/14 Fiscal Year Status

We will maintain the importance we attach to the customer satisfaction.

We will enrich and expand the Vodafone Farmers' Club.

We will enrich and expand the Women First Program

We will ensure equal participation of disabled individuals to life.

We will continue to implement innovative practices for customers.

While providing all kinds of products and services, we will accept the “unconditional customer satisfaction” principle as our fundamental objective.

At the point where customer satisfaction and our understanding of corporate responsibility intersect, we will realize innovative products and services with the aim of offering our customers value added services as well as developing social work models.

We became the most recommended operator in the Net Promoter’s Score.

We broadcast Farmers’ Club TV Program.

Vodafone Farmers' Guide Application offered to farmers for easy access to agricultural information was used by more than 17 thousand farmers.

With the Maternal-Infant Service implemented in cooperation with the Mother-Child Education Foundation (AÇEV), more than five thousand women got free text messages with useful information about the development of babies.

We provided women the opportunity to market their self-crafted products directly and free of charge for one month on Turkey’s largest advertising and e-commerce site.

More than five thousand disabled people benefited from our special tariffs and campaigns for the disabled.

We offered products and services such as Mobile Healthcare and Mobile Wallet.

OUR CUSTOMERS AND SOCIETY

Providing solutions that create transformation/change

We will support the development of the technology export that OKSİJEN realizes as the “Global Innovation Centre”.

We will support the development of the local R&D through OKSİJEN.

We will improve cooperation with Vodafone xone.

While meeting the needs of our customers with our innovative products and services, we will also make their lives easier by offering value-added services.

Projects that we created in cooperation with Vodafone xone™ were offered to various Vodafone operators.

In addition, the following products went live:

• New versions of Location Based Services at Vodafone Group and Group companies

• Central Location Platform for Emergency Call Services at Vodafone Netherlands and UK

• Central Location Platform at Vodafone Germany and Austria TAG Group

• LTE Positioning Services Technology at Vodafone UK

We devised projects in cooperation with companies operating in Turkey, such as TMOB, AMVG, Mobinex, Eteration, Parkyeri, Infodif, Lodoos, Ekart, Dora, ArtıMobil, Provus, Multinet, Verifon, Pozitim, Pharos, Bos4Apps, Dijital Sahne, NSN, Huawei, and HP.

Within the scope of our R&D practices, we applied for six new patents in the fiscal year.

We completed Findxone, Drivexone, Myxone, Unaxone projects in cooperation with Vodafone xone™. These projects went live in various countries.

INNOVATION

Providing solutions that create transformation/ change

Ongoing Achieved Partial NotAchieved

38 Vodafone Turkey SustainabilityReport2013-2014

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Our Performance in Achieving Objectives

Our approach Our commitments Performance in 2013/14 Fiscal Year Status

We will increase the level of awareness and knowledge of our employees and suppliers on the topic of EMF, and allow them to transfer information when needed in this respect.

We will continue to share and spread information via various channels to increase insight and awareness of our customers and stakeholders on EMF.

We will continue to work with our vision to lead the sector in responding the public concerns regarding mobile phones, base stations and human health and to set the example by initiating various applications for this purpose.

We shared updated EMF information on our website and during informative meetings with corporate clients.

We updated our e-training program and completed preparations to offer it as a part of all orientations and technical trainings.

We gave approximately 50 man-hours of training to suppliers.

We continued to prepare the contents of EMF brochure.

We continued to share information on EMF with universities, NGOs, municipalities and companies through diverse channels.

We included scientific articles in the EMF section of our website to provide objective information.

BASE STATIONS AND HEALTH

Conducting our operations in a responsible and ethical way

We will implement the investment strategies and roadmap defined to reduce our greenhouse gas emissions.

We will increase the number of our energy-efficient base stations that use renewable energy.

We will continue to implement cloud computing practices.

We will continue to reduce our energy consumption and carbon emissions.

Energy consumed per base station fell in 2013/14 fiscal year, compared to 2010/11.Number of sites using wind energy increased to 58.

LED lighting at Maslak was cancelled due to negative feedback from users. However, LED fixtures were used in all new projects (Diyarbakır Switchboard Centre and Operation Centre).

1,350 outdated air conditioners were replaced with new generation ones.

We installed natural ventilation systems to 750 stations and mounted 150 boxes of air conditioners.

We increased the number of sites that use 100% renewable energy (that are not connected to the network) to 8.

We continue efforts to implement desktop virtualization in 400 more computers used in our offices.

250 more shops started to use “ShopCloud” in computer systems.

ENVIRONMENT

Conducting our operations in a responsible and ethical way

Ongoing Achieved Partial NotAchieved

For detailed information please visit www.vodafone.com.tr 39

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Our Performance in Achieving Objectives

Our approach Our commitments Performance in 2013/14 Fiscal Year Status

We will continue our operations in conformity with ISO 39001 Road traffic Management System standards.

We will ensure effective and efficient occupational safety trainings for employees of our supplier companies.

We will continue to work on reducing occupational accidents.

We will ensure that occupational health and safety culture we have created will be an indispensable part of the way of doing business of all individuals in our ecosystem, specifically of our employees and executives. We will continue trainings, applications, and follow-ups that will increase our performance.

We completed preparations in three months and obtained BS ISO 39001 Road Traffic Safety Management System Certification in September 2013.

We actively monitor auditing and assessment processes of training institutions for the sake of quality and sustainability of training that are compulsory for everyone within Vodafone ecosystem.

We continue efforts to achieve safer worksites by reducing our accident frequency ratio.

OCCUPATIONAL HEALTH AND SAFETY

Conducting our operations in a responsible and ethical way

We will continue to put emphasis on emergency and business continuity management in all stages of our services.

We will continue to attach put emphasis on compliance with international standards regarding the management of information security and privacy of customer information.

We will continue to lead our sector in the management of business continuity and information security issues.

We continued to work on compliance with ISO 22301 Standard.

Vodafone Turkey Corporate Security team provided consultancy, auditing and process support to Vodafone Kenya in their ISO/IEC 27001 Information Security and ISO/IEC 22301 Business Continuity certification works. Vodafone Kenya completed ISO/IEC 27001 and ISO/IEC 22301 audits successfully in March 2014 and earned the certification. Vodafone Kenya became the first company in all of Africa to obtain both certificates.

CORPORATE SECURITY

Conducting our operations in a responsible and ethical way

ENVIRONMENT

Conducting our operations in a responsible and ethical way

We will continue to provide recycling of our building and network sourced waste materials as well as used mobile phones.

We will further expand our e-invoice practice and save paper.

We continue “Green Office” practices in collaboration with WWF-Turkey.

We will continue to organize programs to raise nature awareness of our employees and other individuals in our ecosystem.

We will continue to reduce wastes arising from our products, services and operations as well as to mitigate use of natural resources.

We continued to collect mobile phones brought to our shops by customers for recycling.

Ratio of postpaid customers using e-invoice increased to 57% from 50%.

We drew a roadmap for "Green Shops" Program. We started implementing the Program in 10 selected Shops.

We implemented the sustainability e-learning module to increase know-how of employees on sustainability and environmental issues within the scope of our Green Office program. We drew lots among those having successfully completed the module and awarded 5 employees with bicycles.

Ongoing Achieved Partial NotAchieved

40 Vodafone Turkey SustainabilityReport2013-2014

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Our Performance in Achieving Objectives

Our approach Our commitments Performance in 2013/14 Fiscal Year Status

In line with our strategy, targets and material issues, we will design and develop improvement programs through Vodafone Red Academy and thus we will create an ever-learning and high performing organization.

We will increase the variety and number of collaboration with universities.

We will set the example as a company “respecting gender equality.”

In line with the job definition of our Human Resources Department, we held activities to support occupational and professional development of employees through long-term development programs such as Technology, Sales, Customer Relations, Finance, Marketing, and Human Resources Academies. The ultimate aim of these efforts is to maximize customer satisfaction and intensify our expertise.

We brought Red Code personal development training catalogue to life.

We organized 19 trainings attended by 70 different groups. We held Vodafone United team coaching program with 33 teams.

645 executives attended seven different trainings and 30 executives benefited from personal coaching.

With Discover Young Talent Program, we gave 80 hours of training to 36 employees.

1,446 shop employees received Transformation in Retail training within the scope of Vodafone Way of Retail trainings. 250 Shop Managers in 14 cities were included in our Assessment Centre.

Preparations for Red Academy Portal continued. The portal will become live in September 2014.

We transformed “New Media” program at Kadir Has University into M-Learning.

“Data, Everywhere!” Certification Program was held with 106 students at Çukurova University.

We increased the ratio of women employees hired within the scope of Discover Young Talents program.

Our female executives held seminars to inform students of engineering faculties on the role of women in professional life. We sponsored engineering clubs and provided opportunities for female engineer candidates at these clubs.

OUR EMPLOYEES

Conducting our operations in a responsible and ethical way

With the assessments that we conduct within the scope of our supplier performance management program, we will ensure constant improvement of our suppliers.

We will support our suppliers to achieve ethical, environmental, occupational health and safety performance at levels acceptable to Vodafone standards.

While taking employee satisfaction into consideration, we will ensure that our fellow workers will act through the principles of “speed”, “simplicity” and “trust” and work towards being a customer-oriented, innovative, assertive and competitive company with local roots.

We contributed to the development of suppliers by giving them feedback. We informed our suppliers on the developments in OHS and shared best practices with them. Target performance of our suppliers increased 1.5%.

OUR SUPPLIERS

Conducting our operations in a responsible and ethical way

Ongoing Achieved Partial NotAchieved

Vodafone Turkey

Foundation

42 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.turkiyevodafonevakfi.org.tr

In order to support sustainable development of Turkey, we, as Vodafone Turkey Foundation, cooperate with non-governmental organizations and our other stakeholders, develop long-term projects and implement them. Our aim is to contribute to creating a well-trained, equipped, and productive society. Thanks to our social investments, we act on the basis of the social requirements map we have created as a result of a long and diligent study in line with the social requirements of our country.

Objectives of Vodafone Turkey Foundation:• To cooperate with nongovernmental organizations and other

stakeholders for sustainable development.

• To support the participation of the socially and physically disadvantaged individuals into the social life.

• To eliminate the regional inequality in the preschool training.

• To introduce the possibilities provided by the communication technologies to the women and improve their socio-economic conditions and prepare the atmosphere for developing their entrepreneurship.

• To provide solutions for social problems by using mobile telecommunication technologies.

• To contribute to the creation of an infrastructure for transforming Turkey into an information society.

• To support people, primarily Vodafone employees, for providing volunteer services to the society in which we live.

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In the 7th year of our organization's establishment, we are proud to have touched the lives of more than 3 million people together with our valuable project partners, stakeholders, volunteers and supporters.

Vodafone Turkey Foundation Advisory Board VodafoneTurkeyFoundationAdvisoryBoardwasestablishedinordertoidentifyVodafone'ssocialresponsibilityactivitiesandtheroadmaptofollowinusingmobiletechnologiesforthedevelopmentofhumanityandsociety.MembersoftheAdvisoryBoardareesteemedleadersofthebusinessworldandnon-governmentalorganizations:CemBakioğlu,ÜmitBoyner,YavuzCanevi,BülentEczacıbaşı,ÜstünErgüder,HüsnüÖzyeğin,AliSabancı,ArzuhanDoğanYalçındağ,MeralİnciZaim,andSerpilTimuray.

Vodafone Turkey Foundation Being one of the 27 Vodafone Foundations in the world, Vodafone Turkey Foundation has been carrying out its activities with the mission of contributing to the change and development of the society since 2007.

DREAMS ACADEMY

30workshops,2,500graduatesRED CRESCENT BLOOD DONATION

50,000users

COMMUNICATION IS LIFE

Earthquaketrainingfor1millionpeoplein81cities

WOMEN MOVEMENT IN TECHNOLOGY

1,300womenin5cities

EVERYONE WILL LEARN HOW TO USE A COMPUTER

1millionusersin81cities

INTERNATIONAL ENTREPRENEURSHIP CENTRE

6,700womenandyoungindividuals

FIRST STEP AHEAD

573kindergartensin81cities,93,000mother-child/trainers

TEACHER SUPPORT PROJECT

160schools,160technologyclasses,3,500teachers,25,000students

For detailed information please visit www.turkiyevodafonevakfi.org.tr/homepage.php 43

Vodafone Turkey Foundation Projects

Women Movement in Technology

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To introduce the possibilities provided by communication technologies to women, improve their socio-economic conditions and prepare the atmosphere for developing their entrepreneurship.

Ministry of Family and Social Policies

The Ministry of Transport, Maritime and Communication

Women Entrepreneurs Association (KAGİDER)

Turkey Informatics Foundation (TBV)

March 2012

Training

Technology Training

Housewives

Working women

With trainings in technology literacy, personal development, sales and marketing techniques, entrepreneurship topics in the early stages of the project; 1,300 women were reached in Gaziantep, Izmir and Samsun, following Ankara and Istanbul.

The project was presented as a best practice at a meeting of the United Nations Women's Commission; successful women at the end of the first year received their awards from Mr. Recep Tayyip Erdoğan, Prime Minister of the time.

Objective

Starting Date

Partners

Subject

Target Audience and Achievements

Women Movement in Technology was launched in June 2011 as the Turkey stage of the “mWomen” project supported by Hillary Clinton and Cherie Blair. The project aims to support women in technology literacy and introduce them the opportunities provided by communication technologies, and thereby increase their participation in life as well as their entrepreneurship capacity.

Within the scope of the project, 1,300 women were provided with technology trainings. Housewives received trainings on basic technology literacy, safe internet, effective communication skills, and sales and marketing techniques. Participants who completed the training program were awarded the “Technology Marketing Specialist” certificate. Participants continued the e-learning courses for 1 year following the training program and had contact with the advisors via electronic media to get support in any subject. Programs for women in the labor force on the other hand, include topics such as MS Office, e-commerce, entrepreneurship and marketing. Within the scope of Women Movement in Technology Contest organized in 2013, successful women entrepreneurs were awarded with lifeline capital, 1 year free Vodafone mobile communication services package and 1 year of mentoring from KAGİDER members.

In March 2014, Women Movement in Technology Project was introduced in the 57th assembly of United Nations Women Status Committee as a success story and best practice. At the “Empowering Women with Technology” panel attended by globally known opinion leaders, it was declared that women can reveal their potentials by using technology.

Golden Owl Award Surveyors Association of Turkey organizedthe1stOwlAwardsin2013torewardsuccessfulmarketingandsocialsurveypracticeswithinthesector.VodafoneSurveyonUsageofTechnologybyWomen(mWomensurvey),implementedbyGfKreceivedGolden Owl Awardin“SocialOwl”categoryinwhichsocialsurveysreadingthepublicandsocietycompeted.ThissurveycreatedsignificantfindingsthathelpedourFoundationtolaunchWomenMovementinTechnologyProjectfirstandthenWomenFirstProgramasabusinessmodelforVodafone.

Vodafone Turkey

Foundation

44 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.duslerakademisi.org/en

Dreams Academy is a social responsibility project launched in 2008 with the cooperation of Alternative Life Association (AYDER), Vodafone Turkey Foundation, Ministry of Development and United Nations Development Program (UNDP) with the aim of ensuring inclusion of disabled and socially disadvantaged individuals into social life through arts. Considering that the ratio of disabled individuals in the total population in our country is 12%, integrating our disabled citizens into social life, education and production is even more important. In Dreams Academy, 3-month alternative skill development workshops are being organized free of charge for young people who are disadvantageous for different reasons. In painting, drama, dance, photography, rhythm, pantomime, yoga, sign language, and kitchen workshops, young people find the opportunity to develop their skills and artistic identities.

The social impact created by Dreams Academy has been assessed comprehensively in 2012 by an independent company. The results of the study revealed that the project contributes to participants’ personal and social development and to their self-esteem. It is also stated that parents of these students also achieved personal and social development, their view of their children changed, and their relations and communication with their children were improved. The project also contributed to the personal, social and professional development of trainers and volunteers. Positive changes were observed in the approach of project partners towards the issue of disability.

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Vodafone Turkey Foundation Projects

Dreams Academy

Dreams Academy Introduced at the United Nations General Assembly Dreams Academy Project supported by Vodafone Turkey Foundation was introduced as a success story from Turkey at the “Disability and Development” opening meeting of the United Nations General Assembly in September 2013. Ms. Gizem Keçeci, Vice Chairman of Vodafone Turkey Foundation, attended the senior parallel session named “Innovation Removes Barriers” as a speaker and informed the audience on our social investments and innovative products and services aiming to create positive changes in the lives of disabled people and make social life equally accessible to everyone.

TÜRK

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KALKINMA BAKANLI

⁄I

To support disabled individuals in breaking social exclusion, and in becoming active and productive through arts and culture.

AYDER UNDP Ministry of Development

October 2008

Disability

People with physical disability, People with mental disability, People with hearing disability, Visually impaired people Chronic disease groups, Poor and deprived youth, Volunteers (youth from Turkey and abroad)

As of May 2014, 2,500 students graduated from the workshops.

Objectives

Starting Date

Partners

Subject

Target Audience and Achievements

Dreams Academy to Serve in KaşDreamsAcademycontinueseffortstoopenitsnewcenterinthetownofKaş,inAntalya.Thecenterwillnotonlyprovidedevelopmentandtrainingopportunitiestodisabledandsociallydisadvantagedindividuals,butalsoopenitsgatestocompanieswishingtoorganizecorporatetrainings/holidaysortohelpemployeeshaveadifferentexperience.Throughouttheyear,thecenterwillhostanumberofactivitiesfromarteventstopersonaldevelopmenttrainings,bookreadingdaysandoutdoormovies.

PlannedtoopeninJune2014,KaşDreamsAcademywilloperateintheÇukurbağPrimarySchoolwhichwasbuilt80yearsagowiththecollectivelaborofvillagers.Historicalandnaturalheritageoftheschoolwillbeprotectedandthebuildingwillberenovatedinaccordancewiththegeographicalconditions.Inadditiontoarchitecturalsolutionsforconsuminglessenergy,thecenterwillmakeorganicfarmingtohelpparticipantexperienceagriculturallifeandtomakesurethattheyeathealthyfoodthattheygrow.

For detailed information please visit www.gelecegeilkadim.org/en-EN/anasayfa/33.aspx 45

We continue our long-term support to the First Step Ahead Project launched in 2009 in order to contribute to improving access to pre-school education in Turkey, in collaboration with the Ministry of National Education Basic Training General Directorate and Mother Child Education Foundation (AÇEV). In the schools identified within the scope of the project this year, nursery classes equipped with physical amenities required by the pre-school education.

First Step Ahead Project supports teachers with trainings and offers content that will support the cognitive and language abilities of students. There are also other training programs provided to ensure the participation of families in education and to provide them with the information on child upbringing and communication. This year we are continuing preparations to further improve parent-child information services and make it a mobile application.

Vodafone Turkey Foundation Projects

First Step Ahead

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Social Impact Analysis of First Step Ahead ProjectAccording to the results of the research conducted in 2012 to assess the social impact of First Step Ahead Project, the Project provided children with high-quality pre-school education service with comprehensive equipment offered to the physical environment of kindergartens and effective forms of arrangement; with quality training materials suitable for child's development and age; family training program which strengthens the family's participation and the training seminars that support the vocational development of teachers. The positive impact that the project has on children's pre-school literacy and numeracy skills indicate that these children are better prepared for formal education and they will be more successful.

To ensure that in the regions where access to preschool training is limited, children get qualified preschool training to begin life with equal opportunities.

To support MEB’s “100% access to preschool education” and to accelerate the achievement of this target.

For development of the society, to ensure that children reach their utmost potential.

AÇEV Ministry of National Education (MEB)

September 2009

Training

Pre-School Education

5-6 years old children in the project provinces and their parents. Pre-school training teachers.

Focusing on our cities that are insufficient in socioeconomic grounds and prioritized in terms of development, in 573 nursery schools that were established under the supervision of AÇEV experts in approximately 81 provinces, 92,941 mothers-children and trainers were reached in 2012/13 fiscal year.

Objectives

Starting Date

Partners

Subject

Target Audience and Achievements

Vodafone Turkey

Foundation

International Entrepreneurship Center was established by Vodafone Turkey Foundation, with the collaboration of Habitat Development and Governance Association and UNDP, under the auspices of the Turkish Ministry of Development. The center brings together know-how of related NGOs, international organizations, technology companies and universities.

Also aiming to provide social and economic added value to social development, International Entrepreneurship Center support convening of active international organizations, public institutions, companies, NGOs and universities within the ecosystem of entrepreneurship, through the Center’s Stakeholders Board. In addition to the Turkish Union of Chambers and Commodity Exchanges (TOBB), TOBB Youth and Women Entrepreneur Boards, Intel, Cisco, Microsoft, Economic Policy Research Center of Turkey (TEPAV), Small and Medium Enterprises Development Organization (KOSGEB), International Labor Organization (ILO), Koç University, Özyeğin University, and Bilgi University, universities in Istanbul, Izmir, Antalya, Adıyaman, Erzurum, Samsun and Eskişehir, as well as approximately 70 institutions support the development of entrepreneurship ecosystem in Turkey and in the region and competitiveness of entrepreneurs globally.

46 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.uluslararasigirisimcilikmerkezi.org

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Vodafone Turkey Foundation Projects

International Entrepreneurship Center

ULUSLARARASIGİRİŞİMCİLİKMERKEZİ

TÜRK

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⁄I

To contribute to positive perception of young and women entrepreneurs.

To support researches that reveal current situation and needs in order to achieve the goal of supporting entrepreneurs in global competition.

To extend efforts to contribute to the development of entrepreneurship and innovation capacities of the target audience throughout Turkey.

To devise mechanisms that support entrepreneurship ecosystem.

Habitat Development and Governance Association

Ministry of Development UNDP

16 November 2012

Entrepreneurship

6,736 people were reached.

Objectives

Starting Date

Partners

Subject

Target Audience and Achievements

Major Events Organized by International Entrepreneurship CenterIdea Camps for Young Entrepreneurs are organized to ensure contribution of young people to global economy, to help them produce innovative solutions by observing existing and future problems, to reveal new entrepreneurs, and to create an environment of cooperation and sharing among entrepreneurs.

At Startup Weekend Events, participants transform their innovative concepts to prototypes in 48 hours, with the support of mentors.

IT and Entrepreneurship Seminars are organized to increase awareness of university students on entrepreneurship. Perception and statistics of entrepreneurship in Turkey and in the world, entrepreneurship within the scope of the 2023 vision, success and failure stories, contribution of effectively used IT to enterprises are discussed in these seminars.

For detailed information please visit www.turkiyevodafonevakfi.org.tr 47

Technology in the Service of Life Within the framework of Vodafone Turkey’s “Technology in the Service of Life” vision, we use our global know-how in mobile technologies and our innovation power to create value and to make life easier for people’s lives. Examples of our activities especially for empowering women in economic and social life and including disabled individuals in the social life are presented below.

New Mobile ApplicationsUnhindered World Mobile Application Unhindered World smartphone application created within the auspices of the Ministry of Family Affairs and Social Policies and developed with support from Vodafone Turkey Foundation, helps disabled individuals to join social and economic life. The application shows the accessibility of the location on a map. Unhindered World application can be downloaded to smartphones by customers of all mobile operators in Turkey free of charge.

Red Light Mobile Application We believe that the surging violence against women is a severe violation of human rights and a serious social problem. Mobile technologies play critical role in combating violence against women. Therefore, with support from Vodafone Foundation, we, as Vodafone Turkey, brought “Red Light” application to life. The application allows women facing violence to reach the police or relatives immediately and easily with an SMS. In addition Alo 183 (call center to give information on violence against women), 155 Police

Line, Ambulance and Gendarmerie emergency numbers can be called with a single button. Red Light application also contains information on the nearest Center for Preventing Violence and Monitoring (operating under the Ministry of Family Affairs and Social Policies), and other institutions that relate to personal rights.

Existing Mobile Applications Red Crescent Blood Donation Point Information Service: Blood Donation Point Information Service is developed with the collaboration of Turkish Red Crescent and Vodafone Turkey. The objective of this free of charge service is to support the elimination of the gap in blood donation in our country, to increase the number of blood donors, and to create awareness for making blood donation a regular habit, not only an action in case of emergencies.

Mother-Child Service: With the “Mother and Child Service” application created with AÇEV, useful information on the development of babies is provided free of charge for mothers of children aged 0-72 months via informative SMS messages.

AKUT Mobile Application and SMS Information Service: AKUT Mobile Application is developed in collaboration with Turkey's first voluntary search and rescue non-governmental organization AKUT. With this SMS Information service, Vodafone customers are provided with the amenity to instantly access to information they need in emergencies such as earthquakes, fires, floods, and being lost.

Vodafone Turkey Foundation Projects

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Arzuhan Doğan YalçındağMember of Advisory Board, Vodafone Turkey Foundation Chairman, Doğan TV Holding

What, in your opinion, is the role of the telecommunication industry in development?

When we look at concrete figures indicating how information technologies cut costs and

contribute to enrich people by transferring services to the internet and digital environments, we see that developing countries benefit more from this opportunity. The main reason is that the population continues to rise in such countries and unlike Europe, the technology market has not reached its saturation point yet. Therefore, if developing countries create national policies that protect the benefits and improve life quality of their citizens, transformation to information society will be faster and social welfare will improve through technology literacy.

In addition, telecommunication industry contributes to development of countries in many areas such as improving cooperation by making supply chains more efficient, registering economic activities, accelerating financial transactions, bringing transparency to pricing and taxing, etc. The integration of this critical industry with diverse areas of need opens the path to a huge economic and social transformation. While shaping the future of individuals and business world, it also ensures equal opportunities in access to information. Therefore, I believe that telecommunication plays a very important role in social development.

What is your general view of Vodafone Turkey?

What immediately comes to my mind is that Vodafone is a globally preferred, respected and responsible communication company. I find it impressive that despite a relatively late establishment date (in 1985)

and global competition, Vodafone grows to become a global company to serve 400 million customers. Looking at the company’s investment in Turkey, I see a Vodafone Turkey that combines global best practices with our country’s conditions and that even exports best practices to other investments in other countries.

With its social and sustainability investments and quantifiable results of such investments, Vodafone attracts attention in Turkey and throughout the world. A lot of companies have the same sensitivity towards issues but what makes Vodafone different is that it established Vodafone Foundation in almost all countries it directly invests in. Each Vodafone foundation works to contribute to the social development and to improve life quality in the country it operates. This fact reinforces my opinion of Vodafone being a “responsible” company.

Do you believe Vodafone Turkey to be a pioneering company? If so, in what areas?

Both in the world and in Turkey, Vodafone is focused on understanding customers’ needs accurately and creating innovative solutions to meet these needs. With numerous campaigns serving this mission and projects offering flexibility to customers, I consider Vodafone as a company that takes pioneering actions which make a difference.

Beyond all these, we need to emphasize Dreams Academy – a definitely “pioneering” social initiative model in within Vodafone Foundation. The project, which I feel fortunate to have joined in, has been continuing since 2008 with the cooperation of Vodafone Turkey Foundation, UNDP and Alternative Life Association. Supporting disabled individuals in breaking social barriers and being active and productive through arts, Dreams Academy touched the lives of 1,720 young people with the motto “Art and Artist Knows No Barriers”. In addition, Dreams Kitchen ensures that its students have a job to earn money. I sincerely hope that individuals attending this project start a new journey in life and set good examples in terms of equal and active participation in life.

External Stakeholder Opinions

Vodafone Turkey

Foundation

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Vodafone Volunteers Vodafone Volunteers spared approximately 1,700 hours for social responsibility practices in 2013/14 fiscal year.VodafoneVolunteerssupportingtheprojectsofourFoundationcontinuedtotakepartinvariousactivities.VolunteersattendeddiverseartsandsignlanguageworkshopsatDreamsAcademy.Theyraninthe“VodafoneIstanbulMarathon”andcollecteddonationsforvariousassociationsandfoundations.Inourinternal“OneVodafone”event,ourVolunteersorganizedadanceworkshopforemployees,withsupportfromthedanceworkshopatDreamsAcademy.

Vodafone Turkey Foundation Projects

Bülent Eczacıbaşı Member of Advisory Board, Vodafone Turkey Foundation Chairman, Eczacıbaşı Holding

What, in your opinion, is the role of the telecommunication industry in development? What is your general view of Vodafone Turkey?

Information and communication technologies (ICT) are present in all areas of life as the basic tools for progress to a more sustainable future. We need the “transformative power” of ICT to adapt to the environmental, humanitarian and economic conditions of our time. To meet this need, global leaders of the ICT industry place sustainability at the center of all business processes. Especially mobile technologies need to be expanded to create unlimited value with limited resources.

It is getting even more important for individuals and societies that are in the most vulnerable position against the negative effects of climate change (women, children, disabled) to become integrates in the global economy in order to have access to resources that will help them survive. The role of mobile technologies in building this “lifeline” also grows. Therefore, in many developing parts of the world, access to mobile devices and mobile internet services increases rapidly and thanks to mobile technologies, societies obtain the opportunity to improve their level of welfare and life qualities.

I believe that supporting the social and economic development of Turkey through efficient and widespread programs is one of the major responsibilities of the business world. I congratulate Vodafone that contributes greatly to social, economic and environmental sustainability in Turkey on its sustainability practices and performance developed within the scope of its global vision.

What are your expectations from Vodafone Turkey in terms of environmental or social issues?

ICT industry is continuing to develop and offer new opportunities to

all players in Turkey. As stakeholders, our biggest expectation of the industry is to give priority to environmental, social and economic sustainability criteria while benefiting from growth development and investment opportunities.

Do you believe Vodafone Turkey to be a pioneering company? If so, in what areas?

Among Vodafone Turkey’s environmental and economic sustainability practices, “Vodafone Farmers’ Club” has a special place. Aiming to contribute 100 million Euros to the agricultural economy and to help customers use technology more efficiently, this project is a concrete proof of ICT’s positive influence on sustainable development. Another project that I consider to be important is “Vodafone Women First” program which is designed as a social business model. I believe this is an important project that focuses on empowering women (who are sine qua non for social sustainability) in economic life and that invites public, private and non-governmental stakeholders to cooperate for this common objective.

Disclosing its sustainability performance in a transparent and accountable manner to the public and its stakeholders, Vodafone Turkey can become a reference for companies of different scales that have recently started sustainability reporting. In addition, the reporting process that includes dialogues with stakeholders and that is registered with AA1000 Assurance also distinguishes Vodafone Turkey’s Sustainability Report.

What are your suggestions to Vodafone Turkey in terms of sustainability? What would you advise for improvement?

The business world has a huge responsibility in ensuring sustainable future. Global companies operating with this responsibility not only implement sustainability strategies within their business practices, but also lead a collective transformation with all stakeholders. Similarly, Vodafone also defines its investment decisions and supplier relations in line with sustainability criteria. I hope Vodafone Turkey continues to expand sustainability throughout its value chain to build a “positive transformation” in Turkey with information and communication technologies.

External Stakeholder Opinions

48 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.turkiyevodafonevakfi.org.tr

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Principles of Reporting relate to the collection and calculation of greenhouse gas emission (GRI G4 EN 16, 17, and 18) and energy consumption data (GRI G4 EN 3) disclosed in this report.

2010/11 fiscal year which has complete and reliable data and reflects today’s operations has been selected as the reference year for greenhouse gas emissions. The methodology for calculating greenhouse gas emissions is “greenhouse has operational data x greenhouse gas emission or removal factors”.

Greenhouse gas emissions are calculated in accordance with the Greenhouse Gas Protocol methodology of WRI/WBCSD. Boundaries of the company were identified with a controlling approach and all buildings, call centers, base centers, base stations, switchboard centers, and data centers as well as greenhouse gas emissions resulting from generators and cooling gases are included in the inventory. Operation boundaries are defined as scope 1 (direct), scope 2 (indirect) and scope 3 (other indirect). In calculations, CO2 equivalent factors of CO2, CH4, N2O ve HFCs (cooling gas) emissions are used. Global warming potential coefficients are taken from the 4th Assessment Report of IPCC. Network emission factor is calculated by using the data of Turkish Electricity Transmission Company in 2012.

Distribution by sources causing greenhouse gas emissions is as follows: Scope 1: Leased vehicles, F-gases used in air conditioners, fuel used in buildings, diesel and gasoline generators used in base stations in emergencies. Scope 2: Electricity consumption. Scope 3: Services buses for employee transfers and business trips by airplane. While calculating greenhouse gas emissions of electricity energy, emission factor used in previous years is updated as 0.525038 kg CO2e/kWh. This factor will be updated every year based upon the Turkish Electricity Transmission Company data.

Energy consumption of all buildings, switchboard and data centers, base stations, vehicle fleets, and generators under the

control of Vodafone is monitored regularly. This data is also included in the energy consumption data given in the report. Waste heat values and ton of oil equivalent (ToE) conversion coefficients are taken from the Addendum 2 of the Waste Heat Values and Ton of Oil Equivalent (Toe) Conversion Coefficients tables announced in the “Directive for Improving Efficiency of Energy Sources and Energy Use”, issued in the Official Gazette on October 27th, 2011 with the number 28097. In conversion of energy units the following formulae are used: 1 kcal = 4.184 kJ, 1 GJ = 0.2777 MWh (1 MWh = 3.6 GJ).

The annual GHG emission data of 2011/12 and 2012/13 that are reported in the 2012-13 Sustainability Report of Vodafone Turkey is recalculated in the current reporting period. One of the reasons for this recalculation is the use of newly-published “GHG emission factors due to electricity consumption” announced by TEİAŞ. In 2012/13 report, carbon emission factor due to electricity consumption was used as 0.6013, however in this year’s report it is updated as 0.525. Uncertainty rate of greenhouse gas emission data is calculated as +/- 4.6% and it is below the 5% threshold required in audits.

In addition, in the 2012-13 Sustainability report, energy consumption data was disclosed in MWh. In this year’s report, energy consumption data is reported in GJ for full compliance with the GRI G4 Sustainability Reporting Guidelines. In order to show the consumption trend, 2011/12 and 2012/13 energy consumption data are therefore also recalculated and disclosed in GJ. While making these recalculations, energy sources conversion coefficients provided in the Directive for Improving Efficiency of Energy Sources and Energy Use”, issued in the Official Gazette on October 27th, 2011 with the number 28097 are used. Therefore energy consumption data for 2011/12 and 2012/13 are recalculated using these revised coefficients.

Principles of Reporting

For detailed information please visit www.vodafone.com.tr 49

1.9365

2.6248

2.2164

2.6248

2.2164

2,087.5

2,107.0

1,430.0

3,220.0

0.5234

0.5886

0.1710

0.0960

0.1186

0.0043

0.0035

0.0030

0.0089

0.0080

0.0002

0.0002

0.0001

0.0000

0.0000

0.0010

0.0412

0.0543

0.0063

0.0057

0.0015

0.0061

0.0017

0.0010

0.0012

kg CO2e/m3

kg CO2e/ liter

kg CO2e/ liter

kg CO2e/ liter

kg CO2e/liter

kg CO2/kg

kg CO2/kg

kg CO2/kg

kg CO2/kg

kg CO2e/kWh

kg CO2e /vehicle km

kg CO2e / passenger km

kg CO2e / passenger km

kg CO2e /passenger km

1.9418

2.6694

2.2738

2.6399

2.2301

2,087.5

2,107.0

1,430.0

3,220.0

0.5250

0.5949

0.1728

0.0970

0.1198

Natural gas

Diesel

Gasoline

Diesel

Gasoline

Cooling gases - R410A

Cooling gases - R407C

Cooling gases - R134A

Fire extinguishers - HFC 227ea

Electricity (network)

Employee transfers

Flights – domestic

Flights – Europe

Flights – intercontinental

Emission Factors CO2 CH4 N2OUnit Total CO2e

G4-22

50 Vodafone Turkey SustainabilityReport2013-2014

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For detailed information please visit www.vodafone.com.tr

GRI G4 “Core” Content Index This Report has been prepared and issued in order to disclose Vodafone Turkey’s sustainability performance and practices as well as future targets and strategies between April 1st 2013 and March 31st 2014.

The contents of the Report are developed in accordance with the G4 version of the GRI (Global Reporting Initiative) Sustainability Reporting Guidelines, which is an internationally recognized reporting standard. Containing qualitative and quantitative data to meet the requirements of GRI G4 “Core” option, the Report has received “Materiality Matters” approval from the GRI Secretariat. The table below shows the information and data provided in the Report for each relevant GRI G4 indicator and the page numbers where related information can be found. Unless mentioned otherwise, GRI indicators cover issues material to the Company. External issues with materiality are given separately in the table below. Management details of material issues are given in respective sections of the report.

GENERAL STANDARD DISCLOSURES

Profile Disclosure

Reported in Scope of Reporting

Reference page/ Explanations

External Assurance

Description

G4-1

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

G4-11

G4-12

G4-13

Statement from the CEO.

Name of the organization.

Primary brands, products, and services.

Location of the organization’s headquarters.

Names of countries where the organization

has significant operations.

Nature of ownership and legal form.

Markets served.

Scale of the organization.

Breakdown of workforce.

Percentage of total employees covered by

collective bargaining agreements.

Describe the organization’s supply chain.

Report any significant changes during the

reporting period regarding the organization’s

size, structure, ownership, or its supply chain.

CEO Messages

Vodafone TR

Vodafone TR

About the Report

Vodafone TR

Vodafone TR

Our Contribution to Economy

Our Employees

Responsible Supply Chain

Vodafone TR

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

2, 3

Vodafone

Telekomünikasyon A.Ş.

4

Vodafone Plaza,

Büyükdere Cad. No: 251,

Maslak 34398, Istanbul,

Turkey

Turkey

All shares of Vodafone

Turkey Group of

Companies are owned

by Vodafone Group Plc.

Turkey

4

5,

32-33

Our employees are not

unionized.

30

During 2013/14 fiscal

year, there were no

significant changes

regarding size, structure,

ownership, or supply

chain.

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

ORGANIZATIONAL PROFILE

STRATEGY AND ANALYSIS

For detailed information please visit www.vodafone.com.tr 51

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Profile Disclosure

Reported in Scope of Reporting

Reference page/ Explanations

External Assurance

Description

G4-14

G4-15

G4-16

G4-17

G4-18

G4-19

G4-20

G4-21

G4-22

G4-23

Addressing the precautionary approach or

principle.

External charters, principles or initiatives

endorsed.

Membership of associations and

advocacy organizations.

Report coverage of entities included in the

consolidated financial statements.

Process for defining the report content and

the aspect boundaries.

Material Aspects identified.

For each material Aspect, report the Aspect

Boundary within the organization.

For each material Aspect, report the Aspect

Boundary outside the organization.

The effect of any restatements of information

provided in previous reports.

Significant changes from previous reporting

periods in the Scope and Aspect Boundaries.

Environment

Base Stations and Health

Our Approach to Sustainability

Our Approach to Sustainability

About the Report

Our Approach to Sustainability

Our Approach to Sustainability

Our Approach to Sustainability

Environment

Principles of Reporting

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

20

Vodafone supports

the application of the

European Commission’s

framework for

a precautionary

approach as contained

in the 2000 EC

Communication on

Precaution.

9

9

1

7

Material Aspects are

provided in the top left

quadrant of the graphic

found on page 7.

Material Issues are

relevant for all entities

within the Company.

Aspects that are material

outside the Company

are indicated as a

footnote of the graphic

found on page 7.

Restatements are

provided on Page 21,

under the tables of

“Energy Consumption”

and “GHG Emissions”.

The reasons for

restatements are

explained both here

and more in detail on

Page 49.

There are no significant

changes in the Scope

or Aspect Boundaries.

As this GRI indicator

is new, this is the first

time we define Aspect

Boundaries.

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

ORGANIZATIONAL PROFILE: COMMITMENTS TO EXTERNAL INITIATIVES

ORGANIZATIONAL PROFILE: IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

52 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafone.com.tr

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Profile Disclosure

Reported in Scope of Reporting

Reference page/ Explanations

External Assurance

Description

G4-24

G4-25

G4-26

G4-27

G4-28

G4-29

G4-30

G4-31

G4-32

G4-33

G4-34

G4-56

List of stakeholder groups engaged by the

organization.

Basis for identification and selection of

stakeholders.

Approaches to stakeholder engagement.

Response to key topics and concerns raised.

Reporting period.

Date of most recent previous report.

Reporting cycle.

Contact point for questions.

‘In accordance’ option, the GRI content index

and external assurance.

Policy and current practice regarding external

assurance.

Governance structure of the organization.

Values, principles, standards and norms of

behaviour such as codes of conduct and

codes of ethics.

Our Approach to Sustainability

Our Approach to Sustainability

Our Approach to Sustainability

Our Approach to Sustainability

GRI Content Index

Independent Assurance

Statement

Our Approach to Sustainability

Corporate Security

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

Full

8

7

7, 8

7, 8

1 April 2013 - 31 March

2014 fiscal year.

Vodafone TR 2012/13

Sustainability Report

Sustainability Report is

published annually.

Corporate Relations

Department:

surdurulebilirlik@

vodafone.com

GRI content index for “In

accordance – Core”.

External assurance

statement is provided

on page 56 of this

report.

We obtained an

independent assurance

statement for this

report and our report of

2011/12 fiscal year.

6

28, 29

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

REPORT PROFILE

REPORT PROFILE: GRI CONTENT INDEX

REPORT PROFILE: ASSURANCE

GOVERNANCE

ETHICS AND INTEGRITY

STAKEHOLDER ENGAGEMENT

For detailed information please visitwww.vodafone.com.tr 53

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onte

nt

Inde

x

G4-EC1

G4-EC7

G4-EC8

G4-EN3

G4-EN8

G4-EN15

G4-EN16

G4-EN17

G4-EN23

G4-EN27

G4-EN32

Direct economic value generated and

distributed.

Development and impact of infrastructure

investments and services supported.

Significant indirect economic impacts,

including the extent of impacts.

Energy consumption within the organization.

Total water withdrawal by source.

Direct greenhouse gas (GHG) emissions

(Scope 1).

Energy indirect greenhouse gas (GHG)

emissions (Scope 2).

Other indirect greenhouse gas (GHG)

emissions (scope 3).

Total weight of waste by type and disposal

method.

Mitigation of environmental impacts of

products and services.

Percentage of new suppliers that were

screened using environmental criteria.

Our Contribution to Economy

Our Contribution to Economy

Our Contribution to Economy

Our Contribution to Economy

Our Contribution to Economy

Environment

Environment

Environment

Environment

Environment

Environment

Environment

Environment

Environment

Environment

Environment

Responsible Supply Chain

Responsible Supply Chain

Partial

Partial

Partial

Full

Full

Full

Full

Full

Partial

Partial

Full

5

5

5

5

5

20

21

23

23

The water we consume

at our buildings are from

municipal supply.

20

21

21

21

22

22

23

23

30

All our new suppliers

are screened using

environmental criteria.

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

External

Assurance,

page 56

Not Assured

Not Assured

Not Assured

External

Assurance,

page 56

External

Assurance,

page 56

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Profile Disclosure

Reported in Scope of Reporting

Reference page/ Explanations

External Assurance

Description

Aspect: Economic Performance

Aspect: Indirect Economic Impact

Aspect: Energy

Aspect: Water

Aspect: Emissions

Aspect: Effluents and Waste

Aspect: Product and Services

Aspect: Supplier Environmental Assessment

Environmental

Economic

SPECIFIC STANDARD DISCLOSURES

54 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafone.com.tr

GR

I G4

“Cor

e” C

onte

nt In

dex

Profile Disclosure

Reported in Scope of Reporting

Reference page/ Explanations

External Assurance

Description

G4-LA1

G4-LA5

G4-LA6

G4-LA9

G4-LA10

G4-LA11

G4-LA12

G4-LA14

G4-HR10

New employee hires and employee turnover

by age group, gender and region.

Percentage of total workforce represented in

formal joint management-worker health and

safety committees.

Injuries, lost days, absenteeism and fatalities.

Average hours of training per year per

employee by gender, and by employee

category.

Programs for skills management and

lifelong learning that support the continued

employability of employees and assist them

in managing career endings.

Percentage of employees receiving regular

performance and career development

reviews, by gender and by employee

category.

Composition of governance bodies and

breakdown of employees.

Percentage of new suppliers that were

screened using labour practices criteria.

Percentage of new suppliers that were

screened using human rights criteria.

Our Employees

Our Employees

OHS

OHS

OHS

Our Employees

Our Employees

Our Employees

Our Employees

Our Employees

Our Employees

Responsible Supply Chain

Responsible Supply Chain

Responsible Supply Chain

Responsible Supply Chain

Partial

Full

Partial

Full

Partial

Full

Full

Full

Full

32

33

Also material outside

our Company.

There are 141

employees that

take part in the OHS

committees. This is

equal to 4.15% of our

employees.

27

35

35

34-36

33

33

32, 33

30

All our new suppliers are

screened using labour

practices criteria.

30

All our new suppliers are

screened using human

rights criteria.

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

External

Assurance,

page 56

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Social: Labour Practices and Decent Work

Social: Human Rights

Aspect: Employment

Aspect: Occupational Health and Safety

Aspect: Training and Education

Aspect: Diversity and Equal Opportunity

Aspect: Supplier Assessment for Labour Practices

Aspect: Supplier Human Rights Assessment

For detailed information please visitwww.vodafone.com.tr 55

GR

I G4

“Cor

e” C

onte

nt

Inde

x

Profile Disclosure

Reported in Scope of Reporting

Reference page/ Explanations

External Assurance

Description

G4-SO2

G4-SO4

G4-PR1

G4-PR5

G4-PR8

Operations with significant negative impacts

on local communities.

Anti-corruption training.

Assessment of health and safety impacts of

products.

Results of surveys measuring customer

satisfaction.

Complaints regarding breaches of customer

privacy and data.

Base Stations and Health

Base Stations and Health

Corporate Security

Corporate Security

Base Stations and Health

Base Stations and Health

Our Customers and Society

Our Customers and Society

Corporate Security

Full

Full

Full

Full

Not

reported

19

19

28

28

19

Mobile devices, and

the masts that enable

them to communicate

calls and data, operate

well within guideline

safety limits. Our

approach to managing

health issues is

based on all available

scientific evidence, to

ensure we safeguard

our customers,

employees and the

public.

17

17

28-29

This data is not

reported. It is

proprietary

information.

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Not Assured

Aspect: Local Communities

Aspect: Anti-Corruption

Aspect: Customer Health and Safety

Aspect: Product and Service Labelling

Aspect: Customer Privacy

Social: Product Responsibility

Social: Society

56 Vodafone Turkey SustainabilityReport2013-2014 For detailed information please visit www.vodafone.com.tr

to Vodafone Turkey Management,

TheVodafoneTurkeySustainabilityReport2013/2014(theReport)hasbeenpreparedbythemanagementofVodafoneTurkey,whichisresponsibleforthecollectionandpresentationoftheinformationitcontains.Ourresponsibility,inaccordancewithmanagement’sinstructions,istoprovidelimitedassuranceonthereportinaccordancewiththeInternationalStandardsonAssuranceEngagementsISAE30001andAA1000AS(2008)2,Type2moderatelevel.TheassurancestatementshouldnotbetakenasabasisforinterpretingVodafoneTurkey’sperformanceacrossthescopeofissuescoveredintheReport.

OurresponsibilityinperformingourassuranceactivitiesistothemanagementofVodafoneTurkeyonlyandinaccordancewiththetermsofreferenceagreedwiththem.Wedonotacceptorassumeanyresponsibilityforanyotherpurposeortoanyotherpersonororganisation.

What we did to form our conclusionsOurassuranceengagementhasbeenplannedandperformedinaccordancewithISAE3000andtomeettherequirementsofaType2assuranceengagementasdefinedbyAA1000AS(2008).TheAA1000AS(2008)assuranceprinciplesofInclusivity,MaterialityandResponsivenesshavebeenusedascriteriaagainstwhichtoevaluatetheReport.

In order to form our conclusions we undertook the key steps outlined below:1. InterviewedVodafoneTurkeyexecutivesandseniormanagersincludingthoseresponsibleforsustainabilitytounderstandthecurrentstatusofsocial,ethical,environmentalandhealthandsafetyactivities,andprogressmadeduringthereportingperiod.

2.ReviewedVodafoneTurkey’sprocessesfordeterminingmaterialissuesincludedintheReport.

3.ReviewedselectedrelevantinternaldocumentsandtheoutputsofstakeholderengagementactivitiestoenableustotestthecoverageoftopicswithintheReport.

4.EvaluatedthedesignandimplementationofkeyprocessesandcontrolsoverthefollowingGRIG4Indicators(the‘SelectedInformation’):G4-EN3,G4-EN15,G4-EN16,G4-LA9(theseindicatorsaredescribedonpages53to54).

5.Reviewedthe‘SelectedInformation’againstevidenceonasamplebasis.

The limitations of our reviewOurreviewwaslimitedtotheinformationcontainedintheReportsharedwithEY.

Theassurancescopeexcludes:AspectsoftheReportanddata/informationotherthanthosementionedabove;Dataandinformationoutsidethedefinedreportingperiodi.e.1April2013to31March2014;TheCompany’sstatementsthatdescribeexpressionofopinion,belief,aspiration,expectation,aimorfutureintentionprovidedbytheCompany;ReviewofthefinancialperformanceincludedintheReport,whichweunderstand,arederivedfromtheCompany’sauditedfinancialrecords;GRIG4indicatorsnotincludedintheSelectedInformationaslistedabove.

Our ConclusionsBasedonthescopeofourreviewourconclusionsare:

Application of AA1000 principlesVodafoneTurkey’sdescriptionoftheapplicationoftheAA1000principlesinmanagingandreportingsustainabilitymattersisfairlystated.

Completeness and accuracy of selected GRI G4 indicatorsNothinghascometoourattentionthatcausesustobelievethatthedatarelatingtothetopicspreviouslymentionedhasnotbeencollatedandpresentedproperlyattheCorporatelevel.Wearenotawareofanyerrorsthatwouldmateriallyaffectthedataaspresentedinthereport.Ourmainfindingsaresummarizedintheboxbelow.

GRI in accordance criteriaNothingcametoourattentiontoindicatethatVodafoneTurkey’sSustainabilityReportisnotinaccordancewiththeGRI-G4Guidelines-Coreoption.

Independent Assurance Statement

Inde

pend

ent A

ssur

ance

Sta

tem

ent

1 International Federation of Accountants’ International Standard for Assurance Engagements Other than Audits or Reviews of Historical Financial Information

2 AA1000AS (2008) - The second edition of the AA1000 assurance standard from the Institute of Social and Ethical Accountability

ZeynepOkuyanGökyılmaz

GüneyBağımsızDenetimveSerbestMuhasebeciMaliMüşavirlikA.Ş.AmemberfirmofErnst&YoungGlobalLimited

Istanbul,22October2014

Observations from our workOurobservationsandareasforimprovementwillberaisedinaseparatereporttoVodafoneTurkeymanagement.TheseobservationsdonotaffectourconclusionsontheReportsetoutonthispage.

Stakeholder EngagementVodafoneTurkeycontinuestoengagewithitskeystakeholdersacrossvariousplatforms.AstakeholderworkshopwasagainconductedduringthereportingperiodtoshareVodafoneTurkey’ssustainabilityprograms,objectivesandperformanceandfeedbackfromstakeholderswastaken.TheviewssharedbythestakeholdersduringtheworkshopmaybeusedwhenplanningVodafoneTurkey’sfuturesustainabilityprograms.

Environmental data (G4-EN3 and G4-EN16)ElectricityconsumptionfrombasestationscomprisesthebulkofVodafoneTurkey’senergyconsumption.VodafoneTurkeyhasdetailedconsumptiondataforitscoresupplierbutitalsousesmanyothersmallersuppliersinTurkeyanddoesnotcurrentlyhaveaccurateconsumptiondataforallsuppliers.Therefore,ithastomakesomeestimationsusingbestavailabledata.VodafoneTurkeyshouldseektoimprovetheaccuracyofitsbasestationelectricityconsumptiondatafromitsothersuppliersbyobtainingandmonitoringconsumptiondatafromitsothersuppliers.ThiswouldalsoimprovetheaccuracyoftheG4-EN16Scope2emissionsdatacalculatedfrombasestations.Itwouldalsohelpidentifyfurtheropportunitiestoachievereductionsinenergyconsumption.

Our independenceThisisthesecondyearthatEYhasprovidedindependentassuranceservicesinrelationtotheVodafoneTurkeySustainabilityReport.WehaveprovidednootherservicesrelatingtoVodafoneTurkeyapproachtosustainabilityreporting.

Our assurance teamOurassuranceteamhasbeendrawnfromourlocalsustainabilityteam,whichundertakesengagementssimilartothiswithanumberofsignificantlocalandinternationalbusinesses.

Vodafone Telekomünikasyon A.Ş.VodafonePlazaBüyükdereCaddesiNo:251

Maslak34398IstanbulTel:+902123670000(VodafoneHeadquarters)

Tel:4440542(VodafoneCustomerServices)or542(forVodafonecustomers)www.vodafone.com.tr

For more information on the Sustainability Report:CorporateRelationsDepartment

e-mail:surdurulebilirlik@vodafone.com

VodafoneTurkeySustainabilityReportwaspreparedsolelyforinformativepurposesandallcontentsandinformationinthisReportarepreparedusingtheinformation

andsourcesdeemedtobeaccurateandreliableinthetimetheReportwaswritten.NoneoftheinformationandcontentinthisReportcanbeinterpretedasastatement,warrantyand/orcommitment;norisitguaranteedthattheinformation

andcontentinthisReportiscompleteandconstant.

VodafoneTurkey©2014Allrightsreserved.

Reporting Consultancy CSRConsultingTurkeywww.csrconsulting.eu

Design MehmetEdeoğlu

Vodafone Telekomünikasyon A.Ş.

Vodafone Plaza Büyükdere Caddesi No: 251Maslak 34398 Istanbul

Tel:+902123670000(VodafoneHeadquarters)Tel:4440542(VodafoneCustomerServices)or542(forVodafonecustomers)

www.vodafone.com.tr

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