Message from the Chairman

Dear Stakeholders,

As the world and our country pass through a difficult period, we are striving together to reduce the effects of the pandemic we have been fighting. With great effort and dedication, we continue our work and investments to benefit society and our country in support of both economic and social development.

Across all our companies, we work with the awareness that, as an important supplier to Turkish industry, we occupy a significant position in the supply chain. Having left a challenging 2020 behind, we also made a rapid start to 2021.

As part of our investments in the digital field through the Has4Steel Digital Transformation Project, we completed the Has4Commerce e-commerce project launched in 2020 and successfully commissioned our online steel sales platform, hascometal.com. Our customers can order our special-steel hot-rolled and cold-processed products, as well as products in the seamless tube group, through hascometal.com. They can also access documents and information such as invoices, delivery notes, quality certificates and current balances at any time and perform almost every transaction, including placing orders, online.

This year, we also launched another digital transformation project within the supply chain under the name Has4Planning. Through this work, we aim both to use the capacity of our production lines efficiently and to improve delivery times. For us, digital transformation represents continuity, just like our factory investments. We therefore have a digital transformation roadmap covering the next three years. In 2021, we will carry out a total of 35 projects, particularly in investments, processes and digital fields.

At the same time, we continue our industrial investments that will create value for our country and contribute positively to the current-account balance. We began the investment in a third factory alongside our two factories in TOSB, and work is progressing rapidly. If all goes as planned, this facility will begin production in 2022. We will also invest in bright steel at Hascometal Konya, a new coil drawing line at Hasparlak and a new finishing line at Hasçelik. As a Holding, we have budgeted a total investment of EUR 35 million for this year.

We bring all these projects to life together with my valuable, determined and hardworking colleagues and with the trust of our valued customers.

We regard contributing to the society in which we live as another of our missions. While continuing our educational work through the Faydasıçok Foundation, we support the development of 100 female students through our Pearls in Mother-of-Pearl Project. In addition, during the pandemic we launched the Hasan Faydasıçok Scholarship programme in the name of our founder and Honorary Chairman. With our belief in equal opportunity, we will continue to support young people, the guarantee of our future.

With love and respect,

Adnan Naci FAYDASIÇOK

Chairman of the Board