Message From The Chairman

Valued stakeholders,

We put people at the center of our business model and of all of our operations. Our aim is to create value for all of our stakeholders and for society at large.

As Turkey’s biggest steelmaker and supplier to the country’s industrial endeavors, OYAK Mining Metallurgy has important responsibilities in shaping the course of its sector. In line with this, we seek to create long-term value through an integrated management approach and a eoplefocused business model at whose heart we put sustainable growth and responsible production. Supplying products that play an important role in the development of such sectors as automotives, white goods, and construction, we contribute to the Turkish economy by meeting the domestic market’s need for steel. Giving great importance to open and transparent communication, we keep all of our stakeholders informed about our financial, R&D, environment, and social performance.

In 2019 we sold 7,250 thousand tons of flat finished products and 1,057 thousand tons of long finished products. In line with the Group’s strategy of pursuing growth in external markets in response to the contraction in our home market, we increased our exports by 6% as compared with 2018.

We continue to distinguish ourselves in domestic and international markets by virtue of the products we make and the services we provide while also tapping into new investment opportunities in the face of changing dynamics. Our Group’s strategy of managing risks by anticipating them and acting accordingly is what helps we maintain our sectoral leadership. In order to ensure our sustainable growth, we keep a close watch on risks and opportunities that might impact on our Group by taking such issues as climate change, diminishing natural resources, and the transition to a circular economy into account. In line with this, last year we focused our investments in three areas: reducing our environmental impact, innovative occupational health and safety practices, and product development.

Last year we continued our R&D investments with no loss of momentum in order both to respond to the changing and growing needs of domestic and international markets and to make the high-quality steel that Turkish industry needs. We continue to transform both our own sector and other sectors for which iron and steel are inputs, especially through the innovative products and steelmaking improvements that it comes up with. As in previous years, we last year continued to address our customers’ changing expectations with superior-quality products enhanced by R&D and innovation processes informed by the Group’s long experience while also securing competitive advantages for ourselves by reducing costs. Our R&D center, the first of its kind in its sector, continues to grow year after year. As of end-2019, the center had completed 29 projects and was currently working on another 45.

We put people at the center of our business model and of all of our operations. Our aim is to create value for all of our stakeholders and for society at large. We support regional development and the entire Turkish economy in our capacity both as one of the country’s biggest job-providers and as a creator of indirect employment for about 285 thousand people in the locales where our operations are carried out.

Within the Group, our aim is to foster a corporate culture that embraces differences without exception while acting with team spirit in the conduct of all of our business and other processes.

On the occasion of our first integrated report we have prepared and shared with you, we thank all of our stakeholders who have contributed to our successes.

Süleyman Savaş Erdem

Chairman of the Board of Directors

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