Message From the General Manager

Dear Shareholders,

With its dynamic structure and corporate governance approach, Aksa Akrilik is proud to complete 2022 by raising its strength and growing continuously with new investments.

Contrary to our expectations, the year 2022, which we entered with the hope of gradual normalization after the pandemic, confronted the whole world with serious difficulties. Geopolitical developments, war, energy crisis, raw material supply problems and the destruction caused by all of these in the global economy, brought negative economic developments. Our country, on the one hand, used the advantages of its geopolitical position, and on the other hand, implemented many monetary and fiscal policies to keep economic activities alive.

As a significant raw material supplier of the textile industry, our Company completed the first quarter of the year with remarkable growth thanks to the high export potential of our country. Although stagnation was observed especially in technical fibers with the global slowdown in the last quarter, acrylic fiber was relatively less affected by this slowdown. In the yarn industry, which we entered during the year, we gained rapid recognition and prestige thanks to our innovative product Aksafil. By 2023, we aim to contribute to the profitability of the Company by strengthening our position with the commissioning of the second phase of Aksafil.

Our Company has raised its profitability thanks to its competitive structure and efficient production. Earnings Before Interest, Depreciation and Taxes (EBITDA), which was TL 1.7 billion in 2021, rose by 130% to TL 3.9 billion in 2022. Our Company, which produces about a quarter of the world's acrylic fiber production, proudly carries the flag of world leadership with a market share of 25% in the global market and 76% in the domestic market.

At Aksa Akrilik, we aim to create long-term sustainable value for all our stakeholders and maintain our sector leadership with our sustainable and profitable growthoriented business model. Continuing our way with this vision, the market value of our Company has reached TL 29.8 billion. We have been paying a portion of our earnings to our investors for many years, within the scope of our dividend distribution policy. We will submit the proposal for a gross dividend of TL 2.41 per share from the profit of 2022 for the approval of our shareholders at the General Meeting, with the decision of our Board of Directors.

We contribute directly to the “Sustainable Development Goals (SDGs)” with the studies we carry out in line with our sustainability principles and sustainability focus topics, which we share in detail in the report.

In 2022, we raised the number of our female employees by 26%, and beyond supporting gender equality, we also contributed to our country's economy with the employment we created. With the reality of drought entering our lives as of 2022, we once again realized how valuable it is to detect risks early and implement preventive actions. With the investment projects we started in 2015, we aim to minimize the consequences of drought risk on our processes and the region where we operate. As a result of the studies carried out this year, we reduced the rate of freshwater use by 18%, compared to 2021. With our investments that will continue in 2023, we expect further progress in this regard.

The "Green Strategy Group", the joint platform where Akkök Holding and Group companies share their knowledge and experience in the context of sustainability and create the roadmap for the urgent agenda items within the scope of the European Green Deal, started its work in 2022. We believe that the studies to be shared in the coming years will set good examples for our industry and our country in reducing current global risks.

Aksa Akrilik has been listed on the Borsa Istanbul Sustainability Index since 2018. As of 2022, it took its place in the “BIST Sustainability 25 Index”, which consists of 25 shares with high Market Value and Transaction Volume, selected among companies with high sustainability ratings.

As can be seen in the Integrated Annual Report, which we published for the fourth time this year, we are proud of all the efforts of our Company on environmental, social and managerial issues, and we strive for a better world.

Finally, we would like to share our deep sadness over the crippling earthquake disaster that our country has experienced. Right from the beginning, we have mobilized all our means for solidarity and support. We will continue our relentless support with the same determination to find more permanent and long-term solutions in the region. This huge destruction that we have experienced has inevitably affected the economy of the country deeply and will continue to affect it. At Aksa Akrilik, we will concentrate on our business with all our energy and maximize our economic contribution. We will work with all our strength to be one of the exemplary companies in our country and its economy to overcome this difficult period by getting stronger.

I would like to thank our shareholders, valuable business partners and customers, who believed in us, especially all our employees, who supported our progress with their devoted work throughout the past year.


Cengiz TAŞ

Member of the Board of Directors - General Manager