BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 ANNUAL REPORT 22 INTRODUCTION MESSAGE FROM THE MANAGEMENT Our country suffered its worst natural disaster of the century when two earthquakes struck Kahramanmaraş on 6 February 2022. The devastating earthquakes, with their wide-ranging impact and significant losses, plunged the entire nation into mourning. Our noble-hearted nation came together and showed great solidarity in helping earthquake victims. As a company, we also tried to help our citizens by meeting their needs. We initiated a Temporary Social Housing project with a capacity of 1,000 containers in collaboration with Rönesans Holding and AFAD (Disaster and Emergency Management Authority). We will continue to support recovery efforts in the aftermath of the earthquake. We pray for the mercy of God on those who perished, patience for those who survived, and a speedy recovery for those who were injured. Esteemed stakeholders: In 2021, inflationary pressures began to ease as the global economy recovered from the pandemic. However in 2022 the Russia-Ukraine war triggered an energy crisis, which caused commodity and energy prices to rise sharply. This led to renewed inflationary pressures, which central banks attempted to combat by tightening monetary policy and raising interest rates. However the same measures also began to seriously hobble economic growth across the world. Despite facing similar problems, Turkey’s growth trend continued, albeit with a decrease, driven by domestic and foreign demand. However as was the case with every other sector, the Turkish construction industry was seriously affected by soaring inflation and exchange rates. The reduced demand for construction and contracting services, due to rising construction costs, shrinking profit margins, increasing recession risks in Europe, and the ongoing escalation of geopolitical risks and uncertainties linked to the Russia-Ukraine conflict, all contributed to a decline in investment. Strong performance in a challenging year Despite the challenging business environment, Birleşim Mühendislik and Erde Mühendislik registered successful operational and financial results last year. We completed all projects in our portfolio on time, within budget, and fulfilling all contractual requirements. In 2022, Birleşim Mühendislik and Erde Mühendislik together completed the electromechanical installation works of the Medipol Bahçelievler Hospital, Medicana Ataköy Hospital, and Acıbadem Ataşehir Hospital projects. Birleşim Mühendislik also completed the mechanical installation works of the Borsa İstanbul Services Building, the Aydınlı Selimpaşa Garment Factory, and the Aydınlı Hadımköy Warehouse projects while Erde Mühendislik completed the electrical installation works of the İş REIC Office Tower. In 2022, we delivered TL 2 billion in new business by completing a number of large and significant projects. The most important of these projects was the electromechanical installation works for Çukurova Airport, our first turnkey- delivery project from scratch with a single-contract value of EUR 43 million. When opened, Çukurova became the fourth biggest airport in Turkey. New business that we undertook last year consisted of the electrical installation works for the Gaziantep Municipal Hospital (which will be the fourth biggest public hospital in Turkey when completed), Trendyol’s Ankara logistics transfer center, the AcarVerde multi- purpose project, and 29 Topkapı projects; the mechanical installation works of Amazon’s first logistics base in Turkey; the Phase 3 mechanical works of the Kalyon Fotovoltaik Solar Technologies Plant; and the electrical installation works of the Ziraat Bank and VakıfBank headquarters at the İstanbul Finance Center. A solid step towards future growth 2022 was a successful year for us, with both our financial results and profitability improving. We also marked a new milestone in our company’s history with an acquisition that opens new avenues of future growth and development. The climate crisis, the energy crisis, and the European Union Green Deal are all nourishing demand for renewable energy production. Using some of the proceeds from its recent IPO, Birleşim Mühendislik has acquired a company to enter the solar power plant (SPP) industry, which is the target of Turkish government incentives and support. This acquisition will allow us to transfer our expertise in electrical and mechanical contracting to the SPP industry. Solar Enerji, a company which has been active in all aspects of solar power plant project development, installation, and financing since 2020 and which is staffed by a team of professionals with deep business and technical knowledge and experience, became a Birleşim Group subsidiary at the end of 2022 after a 70% stake was acquired in the company. During the most recent six months after actively joining the Birleşim Group, Solar Santral Enerji A.Ş. 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.