Message from the Chairman

Dear Shareholders,

I would like to share with you what we have done in the year of 2012 and what we want to do by means of the general board. General meetings that are held every year aim is to inform you about what we have done and to get your confirmation.

Although 2012 has really been a successful year for our country, but the economic growth remaining at a low rate had a negative effect for our industry. High current account deficit has made our industry to be highly dependent on imports. As Ostim we have always been trying hard to explain the people we address how vital the local production is for every SME at Ostim. During the year, we have been meeting our statesmen, bureucrats, politicians and the press in various activities in order to provide awareness on domestic productions. No matter which platform we are or whoever we address we emphasize the importance of domestic and national production. Even in the countries where the free market is performed at the most advanced levels, domestic manufacturing is supported. We can see similar practices on providing concession for the products manufactured in its territory in many countries in the world. We are struggling to strengthen the domestic production in many sectors such as energy, transportation, health care and defense industry and at least to provide equal conditions to the imported goods.

As you know, our company's shares began to be traded on the stock market since May 10, 2012. Although the company's shares have not reached the transaction volumes and values because of the specific conditions of the Free Account Platform where our company’s shares traded, we know that the stock market is a long process. Companies generally enter to the stock market in order to acquire funds from the capital markets. However, it has not been the same for our company. Although our company was at the beginning of its long-term commercial life, it had to get into the stock market. As you know, it was not our own decision but it was the result of some legal regulations for our company's shares began to be traded on the stock market. On the other hand, we will continue working to develop our commercial activities while making use of our real estate properties. In some ways, I think we are lucky to be in the Stock Market. We will be able to check ourselves in the mirror of Stock Market constantly. In addition, when the corporate governance principles, the principles of transparency and accountability of the stock market are considered, we will be able to do what we want necessarily thanks to the stock market legislation. As you will see on the agenda of the General Assembly Meeting 2012, we are going to submit a number of policies and working principals concerning the Corporate Governance Principles to the approval of the General Assembly.

We have been continuing making efforts to provide the OFİM (Ostim Finance and Business Centre), which came into activity in 2012, to work in full capacity. Negotiations continue in order to increase the rent rate of this Centre, which we rented approximately 50% by the end of March, 2013. It is obvious that our Center, which is located in the center of the industrial area, improves the quality of our region and benefits the business in this region. As I said, in last General Assembly Meeting, we continue to make efforts to create a center where about 1000 people work and 5000 people visit daily.

We also plan to complete the construction of Alinteri Plaza in 2013. Leasing for business offices owned by our company in Alinteri Plaza has started. Four workplaces had been rented by March 30, 2013. Thus, by the end of 2013, we will have made use of our land except area near Metro stop. We recognize that our land, located near Ostim Metro stop, is a remarkable featured project within many respects such as size, strategic location and zoning status. Following the completion of the leasing for business offices in OFIM and Alinteri Plaza all our concentration will be provided on Ostim Metro Center Project.

In 2012 the company continued to have a significant share in exports sales. We exported goods directly invoiced to seventeen countries including Iraq, Italy, Egypt and China. By the end of 2012 the number of total exports increased to 48 countries.

I wish the year 2013 will give us the opportunity to make our common wish become true and help us to make this company successful. With my all respect.

 

Orhan AYDIN

Chairman of the Board