Dear Shareholders, Business Partners, and Valued Employees,

Clean, affordable, recyclable new energy sources are even more crucial considering the ever-growing population in the world, depleting natural resources, environmental pollution, and the resulting degradation.

The "energy crisis" that gripped the entire world last year caused difficulties in several countries, especially the European Union, with increasing energy consumption costs. Given this situation, it is inevitable that there will be a rapid shift towards renewable energy investments, and the industry will experience significant changes. It is obvious that the only way out of the global energy and climate crisis is the widespread use of renewable energy sources with maximum efficiency as soon as possible.

Although energy has always been regarded as one of the key determinants of the political climate around the globe, it has recently become even more crucial.

Even though the supply chain issues brought on by the pandemic have been resolved to a great extent, the invasion of Ukraine by Russia, the largest energy exporter in the world, has raised concerns about the energy supply and altered the balances not only in the region but also globally.

In addition, the global climate crisis and global climate security will prioritize new approaches in industries such as energy, transportation, housing, agriculture, and manufacturing as the most remarkable topics of the upcoming era. As a country that closely follows the developments on global climate change, climate crisis, and climate security, Türkiye recently ratified the Paris Agreement and committed to “net zero” by 2053.

Digitalization, which has become inevitable and increasingly widespread due to the pandemic, has gained momentum in the world, and led to a shift in consumer expectations and behaviors. Consumers now demand solutions that are as quick, simple, and customized as possible. As Nurol, we can see how our recent digitalization investments have greatly benefited our group.

As for the economic outlook, another challenging year is the rearview mirror.

Based on the GDP growth index, the growth rate in the final quarter of 2022 stood at 3.5 percent, while the overall growth rate for the entire year of 2022 reached 5.6 percent. For 2023, the IMF's World Economic Outlook report has revised down the growth rate forecast for Türkiye from 3 percent to 2.7 percent.

We observe that the contraction in the construction sector, which had been increasing since 2021, continued in the third quarter of 2022. It is apparent that the high construction cost increases have caused significant challenges in the development of new projects and the execution of public projects.

Despite the anticipated rise in housing costs in the real estate sector in 2022, we hope that some of the domestic and foreign investors with foreign currency investments will switch from foreign currency investments to real estate investments next year.

In the tourism industry, we anticipate that the decline from the previous years will end and that the prepandemic figures will be attained in terms of both number of visitors and revenues in the upcoming season.

We expect that investments will start to increase, and sustainable growth will be attained in 2023, with the positive impact of normalization on national economy through the gradual easing of the pandemic's effects and the confidence and stability to be created by lower market volatility after the elections.

When we look at the global outlook;

We can see that the rapid spread of Covid-19 from China to the rest of the world slowed economic growth in 2021 and 2022, but the recent return to normalcy paved the way for a faster-than-expected recovery. According to the recent IMF report, the growth forecast for the US economy in 2023 has been revised upwards from 1 percent to 1.4 percent. It was noted that the global economy grew by 3.4 percent in 2022, however the growth rate is expected to decrease to 2.9 percent in 2023 before rebounding to 3.1 percent in 2024. Global inflation is expected to fall from 8.8 percent in 2022 to 6.6 percent in 2023, and further to

4.3 percent in 2024. However, it should be noted that despite the projected decline, global inflation is still higher than the pre-pandemic level of 3.5 percent.

The growth forecast for the Euro Area for this year has been revised upwards to 0.7 percent from 0.5 percent previously, while the forecast for 2024 has been revised downwards from 1.8 percent to 1.6 percent.

As one of Türkiye's most prominent and deep-rooted groups, we are proud to look to the future with confidence, striving to add value to our world and our country today as we have always done with our successful history of more than half a century.

With tens of thousands of employees working in our companies operating across diverse sectors, we produce goods and services and export to more than forty countries. Our key focuses revolve around strategic planning for the efficient use of resources, fostering employee satisfaction through a robust employment framework, and ensuring sound financial management to maintain balanced cash flow.

In 2022, Nurol Group achieved outstanding results by surpassing growth and profitability targets, culminating in a consolidated revenue of TRY 26.8 billion. In line with our sustainable growth strategy, our objective is to further enhance sales and exports by expanding our production capacity and carrying out activities that increase our brand recognition on a global scale. With a steadfast vision, I firmly believe that we will continue to thrive as a group that generates value for both society and the world, effectively managing investments across various sectors in which we operate.

Sincerely yours,

Nurettin ÇARMIKLI
Chairman of Board