BIRLESIM_MUHENDISLIK 2023 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 32 INTRODUCTION Last year’s strong operational and financial results can be attributed mainly to: · An ability to effectively manage several projects simultaneously through the optimal deployment of material and human resources · Cost and operational efficiencies arising from the simultaneous installation of mechanical and electrical systems at a worksite · Reduced costs due to economies of scale in bulk material procurements · Critical factors such as robust financial resources combined with effective project planning and execution capabilities which ensure that projects are delivered on time, proactive engineering expertise which anticipates and addresses technical challenges before they escalate and saves on material and labor costs, and a highly experienced and skilled management team · A productive operational environment fostered by long-standing and mutually beneficial relationships with clients, suppliers, subcontractors, and project management firms · An ability to steer clear of and refrain from submitting bids on risky, low- margin projects thanks to years of experience in accurately analyzing project costs · Subsidiaries in related but separate business lines that complement each others’ strengths combined with the ability to cohesively manage them through a unified vision and shared goals · The motivational benefits of empowering mid- and senior managers with independent decision-making authority as opposed to a centralized control system. Major concurrently-conducted project developments in 2023 and their present statuses are summarized below. · On 14 September 2023 an agreement was signed with Cevahir Yapı Sanayi Turizm Ticaret A.Ş. for the conduct of electromechanical installation works (65,000 m 2 ) under that company’s contract with real estate investment trust Emlak Konut REIC for the Eyüp Sultan Göktürk Phase II housing project. Work has begun and is in progress. · On 2 January 2024 an agreement was signed with Aydın Sağlık Yatırımları Sanayii ve Ticaret A.Ş. for the conduct of the mechanical installation works of a hospital in the Göztepe district of İstanbul under that company’s contract with the Memorial Hospitals Group, which has been providing private healthcare services in Turkey since 2000. Work has begun and is in progress. · On 17 October 2023 an agreement was signed with Şişecam, the world’s only global player active in all key aspects of glassmaking, for the conduct of the mechanical installation works (123,400 m 2 ) of a greenfield-project glass container factory which that company is building in the city of Kaposvar in Hungary. Work has begun and is in progress. This will be Şişecam’s first glassmaking plant in a European country and is being undertaken at a total investment cost of EUR 255 million to facilitate the company’s access to European markets. When completed the plant is expected to have an annual production capacity of 330,000 tons. For Birleşim Mühendislik, this project is also an important milestone because it is likewise the company’s first venture into the European construction- contracting market. Birleşim Mühendislik has opened a branch in Hungary in order to keep a closer watch on that country’s lively construction industry and seek new business. · On 24 May 2023 an agreement was signed with Kuzu Toplu Konut İnşaat A.Ş. under that company’s İstanbul Fikirtepe Urban Renewal Project for the electromechanical installation works in plot 3466-1. On 18 May 2023 another was signed for the electrical installation works in plot 3461/1. A third agreement was signed on 22 May 2023 for the electromechanical installation works under the same company’s Halk Yapı ASSESSMENT OF 2023 OPERATIONAL RESULTS Despite numerous challenges and hardships encountered both at home and abroad, 2023 proved to be another successful year for Birleşim Mühendislik. The company not only registered real (above- inflation) revenue growth but also continued to maintain its reputation for creating genuine value for all of its clients, suppliers, subcontractors, employees, and other stakeholders.