BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 ANNUAL REPORT 21 Pursuing Growth through Industrial Projects Birleşim Mühendislik is actively pursuing opportunities to participate in projects in the pharmaceuticals, electronics, and defense industries, which are all major sectors where electromechanical installations are needed extensively. In response to the growing demand for sustainable green energy investments, which is being driven by increasing energy costs in industrial facilities and by government support, Birleşim Mühendislik acquired a majority stake in Solar Santral Enerji A.Ş., an EPC contractor active in all aspects of solar power plant project development, installation, and financing. Growth in Cross-Border Markets Due to geopolitical risks and the lack of economic improvement in its cross-border target markets in 2022, the company will not be pursuing growth in those markets for the time being. However its commercial presence in Russia and Azerbaijan will continue. Pursuing Growth through Digitalization The ongoing digitalization process is also a matter of importance for the construction and electromechanical contracting industries. The first major development in this direction took place in the construction industry with the arrival of 3D modeling software that makes it possible to design and produce three-dimensional architectural, mechanical, and electrical projects. The superior capabilities of these computer- aided-design programs facilitate not only engineering drawing but also engineering calculations that result in the generation of error-free dimensions and bills of materials. Technological progress is encouraging the construction industry to look for new ways to manage processes that will simplify the relational complexities involved in contracting work. One outcome of this is the introduction of building information modeling (BIM), whose international standard (ISO 19650) was published in early 2019. BIM software provides a set of tools that allow all of a particular building’s processes from project feasibility, design, financing, and construction on the one hand to operation, maintenance, and even demolition at the end of its useful life on the other to be managed in the most efficient, expeditious, economical, and appropriate way possible. Over the last two years in many countries, the use of BIM software has become mandatory in projects with dimensions above a specified threshold. In our own country, it is becoming a tendering requirement in large-scale public works projects. As Birleşim Mühendislik we are aware that BIM processes will ultimately bring electromechanical works contracting to the prefabricated manufacturing stage and accordingly we are already developing strategies for dealing with this. Thanks to BIM processes and software, much of the work that is done and the elements that are fabricated at a construction site nowadays will instead be produced more exactly and more economically in factories as modules that will then be transported to and quickly assembled at the site. Seeing BIM processes as a crucially important advance in the business of installation contracting, Birleşim Mühendislik is incorporating them into its own growth strategy as one of their pioneers and leading advocates in Turkey.