Message from the Chairman Niğbaş

Dear Stakeholders,.

Amidst a Russian/Ukrainian war which drove up fuel prices hence inflation globally and at home to unprecedented levels all Isiklar companies managed to meet and exceed their budgets.We have also continued and completed our investment projects.Isiklar Brick completed revamping of her second tunnel kiln and inaugurated a brand new electric glazed brick kiln.Our metal foundry company Cemas has completed most of her envisaged investments in her last capital increase doubling her capacity and increasing quality of cast products which included 3 new induction furnaces,2 new molding lines,a new CNC building and 14 new CNC machines,a paint line,dedusting facilities etc.Metemteks increased her synthetic yarn capacity with a new warping machine investment and Isiklar Packaging invested in an 8 colour W&H Astraflex Central Impression Printing Press as well as a W&H 2368 Bottomer to increase her multiwall industrial sack capacity and also in a brand new shopping bag and internet envelope machine from JB company,Italy.

We are expecting to see the positive effects of all these investments in 2023 and are budgeting accordingly.We are also using our strong balance sheets during a time where access to finance is getting more and more tight.

One of our group companies engaged in tourism activities extended her charter and changed her name to become Isiklar Tourism and Fleet Services and started car rental activities with a fleet of more than a hundred vehicles.

Another group company Ozisik Construction added real estate investments to her name and charter and will be spearheading our investments in real estate development starting with a 200 flat project in Bartin and 50 flat project in Sofia,Bulgaria through her wholly owned subsidiary Isiklar Real estate EOOD.

We are also targeting to complete an investment portal namely,Isiklar Hub,to act as an accelerator/investor to new companies/technologies that have passed on the incubation stage.

As our group grows so does the need for qualified human resources and a more sophisticated approach to HR applications group wide and to that extent Mrs.Öznur Güriş has joined Isiklar group as CHRO to help us achieve our goals in growth and sustainability.

Our solar projects continued and following completion of a 6 MW solar field in Cemas, Isiklar Ambalaj and Nigbas have started erecting two new solar fields to produce electricity and offset own consumption.These two new projects will be operational in the first quarter of 2023.We are also carrying on formalities and search for appropriate land to invest in Solar projects for Cemas Foundry,Isiklar brick and Metemteks synthetic yarn companies.We hope to realise these projects in 2023 and come one step closer to erasing our carbon footprint.

I hope that we will see an end to the ongoing war in Ukraine and an uneventful election for our country in 2023 and wish success,health and happiness to all of you and your families in the new year.

Best regards

Rıza Kutlu Işık

Chairman

Işıklar Holding A.Ş.