BIRLESIM_MUHENDISLIK 2023 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 23 in the second quarter of 2024 while this report was still in preparation. In 2023, we made significant progress on our journey to become a global player in the wake of our 2021 IPO by venturing into new markets abroad. Leveraging its renewable-energy knowledge and experience, Solar Santral Enerji signed a turnkey-delivery contract to build solar power plants at four locations in Macedonia. A branch office was also immediately opened to tap the opportunities presented by the country’s promising solar power landscape. Following a decision to open a branch in Hungary in a bid to expand Birleşim Mühendislik’s electromechanical works contracting operations into other national markets, the company undertook the building mechanical installation works for a Şişecam glass container factory being built by employer Doğuş İnşaat ve Ticaret A.Ş. in Kaposvar. This is our first project in a European country. Sustainable growth through insightful strategies Looking ahead to 2024, markets are expected to stabilize now elections are well behind them. As businesses relearn how to live with tighter monetary policy and inflation abates, the second half-year looks set to offer a more attractive investment landscape. Interest rate trajectories and the Turkish lira’s performance against foreign currencies will be crucial determinants of this however. While the domestic market’s investment appetite may wane amid economic headwinds, projects catering to rising healthcare demand, such as those undertaken by major healthcare groups and municipal hospitals, will continue apace. Turkey’s recent rise as a medical tourism destination suggests a sustained appetite for investment in the sector, particularly among firms with significant hospital exposure in their portfolios. This bodes well for Birleşim group companies inasmuch as hospital projects account for up to 40% or more of their portfolios. Although the housing sector may face occasional lulls, supply is projected to remain on an upward course. A notable trend is the expansion of the industrial sector, fueled by increasing exports. Our companies are currently undertaking several industrial construction projects, including the mechanical installation works for the Şişecam Kaposvar glass container factory in Hungary, the electromechanical installation works for the Halk Yapı Dilovası Industrial Center in Turkey, and the mechanical installation works for the Kalyon Solar Panel Factory in Turkey. We foresee a growing demand for both mechanical and electromechanical installation services in this business line. The 7,500 MW capacity target set by Energy Exchange İstanbul for 2024 is likely to drive growth in the number of solar power plant installation projects. Increased momentum in the solar energy market, especially in the second half-year, will translate into new business opportunities for our companies. In short, 2024 is shaping up to be yet another year of growth for Birleşim. Vigorously expanding our presence in other countries’ markets will be a key priority for us moving forward. While continuing our existing operations in Hungary and Macedonia, we are also actively exploring new opportunities elsewhere, particularly in Uzbekistan and Kazakhstan. By the time this report is published we shall have completed the incorporation formalities of a new company in Kazakhstan to manage our presence in the region. The core strengths that have propelled Birleşim forward since its inception– extensive experience, a solid corporate and financial base, commitment to contract fulfilment, and a commanding market presence and reputation–will all remain unchanged. We firmly believe that the world is becoming increasingly more aware of the importance and value of engineering knowledge and skills and that engineering firms will play an increasingly more vital role in shaping the future for everyone everywhere. Leveraging our wide range of services and proven expertise in big-ticket engineering projects, we will continue to deliver value for our company and stakeholders. We look forward to the challenges and opportunities ahead, working with passion and commitment to create a brighter, more sustainable future for everyone. We are grateful to our employees, suppliers, business partners, and employers for their continued confidence in us as we work together to build a better today and tomorrow. With our best regards, Mesut Altan Chair of the Board of Directors İdris Çakır Deputy Chair of the Board of Directors Mesut Altan Chair of the Board of Directors İdris Çakır Deputy Chair of the Board of Directors