Dear Stakeholders,

Thanks to its sustainable and profit-oriented management approach, Aksa Akrilik takes pride in completing 2023 with a 90% capacity utilization rate and a record-breaking production of 318 thousand tons despite challenging market conditions.

In 2023, the world economy witnessed policies such as the slowdown of the post-pandemic recovery, rising interest rates due to the fight against high inflation, and mounting financial tightening measures.

In our country, fiscal tightening measures were intensified in the second half of the year, and the decisions made were focused on supporting the country's economic stability. Interest rate policies and economic reforms became evident in the year's second half. These new strategies implemented were aligned with global financial conditions and internal dynamics.

While the Turkish textile industry had difficulty determining export prices due to increased input costs, it also suffered a loss of capacity compared to the previous year due to the contraction in domestic demand, the adverse effects of the earthquake disaster and the rise in financing costs.

Despite all these adverse conditions, our Company completed the year 2023 by maintaining its global leadership with the highest production in its history. While we grew our market share and presence in the sector in our acrylic fiber product despite the shrinking market, we fell behind our targets in our technical fiber product due to the lack of demand in the U.S. and European markets.

From a financial management perspective, our Company had a positive year. We reduced our debts as planned when working capital and borrowing costs were increasing.

Within the scope of the total investment expenditure of TL 1.8 billion throughout the year, the second phase of our Aksafil facility, the capacity increase of the fiber spinning facility, and various modernization and infrastructure investments were put into operation. Thanks to the investments, acrylic fiber production capacity rose to 355 thousand tons/year, and yarn production capacity increased to 6.6 thousand tons/year. Our Company achieved significant success by reaching the highest production amount since its establishment with a capacity utilization rate of 90 percent and a production of 318 thousand tons.

In addition, we continued our initiatives for Aksa's future without slowing down, such as the growth in investment for our ultra-high molecular weight polyethylene product, which we started to produce under the Mithra brand, and the ring yarn facility investment for our technical fiber customers.

While energy input costs decreased compared to the previous year, our power plant's positive contribution to production costs fuelled our competitiveness. However, due to falling electricity prices, our profitability in the energy trade remained below that of last year's.

In 2023, in line with Aksa's sustainability vision, which highlights product-based solutions and innovative approaches, the R&D and Sustainability Group Directorate was established under the Business Development Directorate. This directorate aimed to strengthen the Company's sustainability culture and implement sustainability targets, starting with product design.

In 2024, when we leave the 100th anniversary of our Republic behind and step into a new century, as the Aksa Akrilik family, we will continue to contribute to the country's economy and work with all our strength for a modern and enlightened Türkiye.

We would like to thank all our employees, valuable business partners, shareholders who trust us, and stakeholders who support us for their outstanding contributions and efforts to our success.

Sincerely,

Cengiz TAŞ

Member of the Board of Directors - General Manager