BIRLESIM_MUHENDISLIK 2023 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 34 INTRODUCTION The solar power industry and our Solar Santral Enerji A.Ş. acquisition The sharp rise in energy costs, both in the wake of the Covid-19 pandemic and due to the Russia-Ukraine war, has had a significant impact on business profitability. As a result, energy-cost reduction has become a top priority for companies. The expected implementation of the European Union’s Green Deal in 2026, which will impose border taxes on companies exporting to the EU based on the companies’ carbon footprint, has increased the demand for renewable energy production. This is in addition to the existing cost pressures facing the energy sector. Government support mechanisms, such as monthly account settlements and corporate tax relief that are outlined in the Regulation on Unlicensed Electricity Generation, have made solar power plants a significant option for reducing energy costs. This has opened the way for the installation of SPPs intended for auto-consumption on roofs and company- owned land. More recent changes in the same regulation have made it possible for electricity generated by any land-based SPP anywhere in Turkey to be supplied to the national grid and used by any consumer likewise anywhere in Turkey. Such developments have created a need for SPP contractors who are experienced, reliable, and financially robust. These contractors will be needed to undertake the increasing number of large-scale projects that are expected to be announced in the near and medium terms. In order to meet this market demand and leverage its own deep knowledge and experience in electrical and mechanical contracting in the solar power industry, our company decided to acquire an SPP engineering firm. After much discussion and deliberation, we acquired a 70% stake in Solar Santral Enerji A.Ş., a company with a team of highly experienced professionals who have extensive commercial and technical expertise in the SPP sector and who had previously worked on SPP projects totaling more than 350 MW for other employers . During the most recent six months after actively joining the Birleşim Group, the team booked a record turnover of TL 55 million. The company has so far delivered three projects consisting of a 2,004 kWp system for DB Tarımsal Enerji, a 1,400 kWp system for Amros Makine, and a 148 kWp system for Sarda Ofset. With large-scale ground-mounted solar energy projects currently in high demand, Birleşim Mühendislik’s acquisition of a controlling stake in Solar Santral Enerji A.Ş. gives it a leg up in winning and completing new contracts in this growing market. As of August 2022, Turkey’s total installed electricity-generation capacity was 100,334 MW, of which 8,029 MW was from solar power plants. The Ministry of Energy and Natural Resources’ Türkiye National Energy Plan projects that total installed capacity will reach 189,700 MW by 2035, with installed SPP capacity increasing by 500% to reach 52,900 MW. As the use of electric vehicles is expected to increase significantly from 2030 onwards, the demand for electricity will also grow. The need to meet this demand with renewable energy sources will likely lead to the ministry’s target being achieved much earlier than projected. The 455 kWp OKKS Project and the 300 kWp Dostcam Project were both completed in 2023 while installation works on an 11,700 kWp project belonging to Dünyagöz Hospitals and a 595 kWp project belonging to Milhans Gıda were continued and are currently in progress. The final stages of four projects in Macedonia with a combined 16,900 kWp capacity were reached last year; provisional acceptance formalities have been initiated. ASSESSMENT OF 2023 OPERATIONAL RESULTS Dobrevo Resen Neokazi Macedonia Resen-Dobrevo-Neokazi 16,900 kWp