BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 22 INTRODUCTION MESSAGE FROM THE MANAGEMENT Valued stakeholders: Although 2021 was a year in which the global economy began to shake off the effects of the pandemic, the emergence of new Covid-19 variants occasionally caused the recovery to falter and stall. The most important items on the world’s and Turkey’s economic agenda were the inability of supply to keep pace with the suddenly resurgent demand of re- energized economies and the inflationary pressures that this resurgence exerted on the cost of raw materials. While high inflation and a depreciating lira continued to hammer economic activity in our country throughout the year, in the construction industry the effects were strongly manifested as higher input costs. In a sector in which the appetite for any investment had paled, many contractors struggled even to complete existing projects in the face of such challenging conditions. A successful year for Birleşim Mühendislik In 2021 Birleşim Mühendislik and Erde Mühendislik registered successful operational and financial results. All works in their portfolios were carried out/ completed as specified and on time. Last year Birleşim Mühendislik and Erde Mühendislik together completed the electromechanical works of the Medipol Bağcılar Hospital, the Samsung mobile phone factory, the Mandarin Oriental Bosphorus hotel, and the Kalyon Jet Hangar projects; Birleşim Mühendislik completed the mechanical works of the Court of Cassation’s new services building, a Turkish Airlines’ cargo handling facility, and the JW Marriott Hotel Istanbul Marmara Sea in Istanbul Ataköy; Erde Mühendislik completed the Maltepe Piazza office tower electrical installation works. As a result of the strength of its performance and the added value that it generated, Birleşim Mühendislik’s financial and sectoral positions remained solid in 2021. Easily overcoming market challenges and volatilities, the company once again demonstrated its ability to create value under all conditions through correct and proactive balance sheet and risk management approaches. On the one hand, insightful assessment and anticipation of market behavior through market awareness and analysis together with effective risk management protect us against market risk; on the other, a balanced, 50-50 mix of FX vs TL-denominated contracts reduces our exchange rate risks and is beneficial to the health of our financial structure. In addition to the successful results that it achieved last year, Birleşim Mühendislik also took a momentous step into the future with the first public offering of shares in the company. Conforming to the bookbuilding method, the highly successful public offering that took place on 11-12-13 August 2021 was oversubscribed by 700%. Sales of shares representing 38.24% of the company’s capital took place on 20 August 2021 and generated TL 200.2 million in income. This strengthened not only the company’s financial structure and cashflow but also its progress in the direction of future growth. Our success is no accident In the course of the journey on which we set out in 2002, we have always known how to turn challenges into success while confidently moving upward and forward. Knowledge is not only our greatest strength but also our guide. Through our pursuit of knowledge, we have come up with some of our sector’s best solutions and introduced some of its best practices. The integrated-service capabilities that we and our subsidiary Erde Mühendislik possess and the synergies that we create together leverage competitive advantages arising from engineering know-how, organizational and human resource agility, and advanced technological prowess. Over the last decade Birleşim Mühendislik and Erde Mühendislik have together undertaken and completed 133 projects. Today we are a potent market force with TL 1.4 billion worth of contracts and TL 700 million worth of backlog. Thanks to superior organizational resources capable of coping with large volumes of business, Birleşim Mühendislik and its subsidiary Erde Mühendislik are together taking part in major projects and constantly expanding their worksite presence all over the country while undertaking and delivering problem-free works quickly and on time. End-to-end digital oversight of all processes made possible by our ERP program supports those resources by ensuring that workflows are correctly managed. Constantly increasing operational efficiency and quality by improving processes and technological resources, fulfilling contractual commitments to employers, ensuring business sustainability, and taking on new business, our expertise in dealing with such exacting structures as hospitals and high- rises, and a reputation as an innovative pioneer enable us to pull off many of our sector’s firsts. The success we have achieved is no accident: it is the outcome of the convergence of market experience and engineering competencies whose roots have grown deep over the years through correct planning and effective execution.