We are the speakers of nature's language.

Dear Stakeholders,
There is a well-known Chinese proverb; “May you live in interesting times!”. This phrase may sound blessing at first sight, but the Chinese use it as a curse. It would not be an exaggeration to claim that we are living in “interesting times” when we consider what has happened in 2021 both in the world and in our country. 2021 has been a year in which the impacts of the economic challenges that came along with COVID-19 continued in a widespread manner. Occasionally, global economic fluctuations were recorded. The effects of inflationary pressure were experienced in many countries. Commodity prices broke records, causing the energy crisis and driving electricity prices upwards

2021 has been a year, which was challenging, didactic and at the same time full of opportunities for the energy industry.
In 2021, we felt the impacts of this worldwide adverse trend in various forms in our country as well. Within the same year, we experienced drought, fires, floods and mucilage, which is also an environmental issue.
As in many other sectors, the energy sector encountered economic and operational challenges as well. High commodity prices and drought were the two major factors shaping the energy market in Turkey. In the summer period, demand increased due to industrial growth, while supply shortages due to drought brought along supply-demand matching difficulties. Record-breaking price formations in commodity prices increased costs. The fact that the power plants, which postponed their maintenance and failed to perform their maintenance, were offline during the pandemic period, fueled the supply shortage. Whereas the wholesale price of electricity had hardly reached the maximum market limit before 2021, it remained at the maximum limit, especially in the second half of 2021. The burden of subsidies on electricity and gas on the state has increased.

Despite such a challenging year and all difficulties, we look to the future with more confidence in the light of the positive developments we observe. The fact that hybrid power plant investments have started to gain momentum in Turkey is a situation that we follow with pleasure in terms of sustainable energy. We also find it pleasing that the Paris Climate Agreement has been approved by the Turkish Grand National Assembly and that the emission targets for 2030, 2040 and 2050 have begun to be shared by large companies.

A year of achievements and records for Enerjisa Üretim
Occupational Health and Safety has always been the most critical priority for Enerjisa Üretim. We employ eco-friendly and efficient energy technologies in our power plants. Green energy comes first in our energy generation plans. In terms of Occupational Health and Safety, we operate in line with our "OHS at All Times" perspective. As a result of these approaches, 2021 was a year full of records, in which we, as Enerjisa Üretim, sustained our achievements. In line with our mission of generating energy for a better future, we continued our energy journey without compromising our principles and without losing pace. As in previous years, we achieved outstanding results in 2021 with the advantages we provided with flexible, competitive, efficient, balanced and eco-friendly power plants and the measures we have taken on time. As a company having celebrated the 25th year in the industry last year, we have accomplished our operations and projects worthy of our 25th anniversary. Although 2021 was a dry year for hydroelectric power plants, we delivered a successful picture with the measures we took on a timely basis. We set generation records at 4 power plants in total, namely Tufanbeyli, Bandırma I, Bandırma II and Dağpazarı Power Plants. We contributed to the security of supply of our country by means of both high availability rates and our diversified and strong portfolio. We have made a great contribution to the development and deepening of the energy market through our trade operations.

We developed hedge strategies against sudden fluctuations in the exchange rates. By the virtue of our strong data analytics and optimization capabilities, we have become a player that makes a difference in the energy industry by managing volatility in the best possible way. We have met the short-term operational and profitability targets of our shareholders, and successfully managed their long-term growth expectations in a balanced way. By means of our strong financial performance, we maintained our growth strategy and provided a sustainable dividend flow to our shareholders. As a result of all these achievements, we made our first dividend payment of 70 million USD in 2021.

Continue with sustainable energy investments without losing pace
As a company with 56 percent of its portfolio consisting of domestic and renewable resources, we started a new phase in renewable energy investments in 2021. Our 10 final projects in Aydın and Çanakkale Regions were published in the Official Gazette and announced as YEKA sites. We started to obtain the preliminary licenses for our 500 MW project portfolio. We commissioned our Tufanbeyli and Bares hybrid solar power plants, which are among Turkey's first solar hybrid investments. Starting the construction of the 65 MW Erciyes Wind Energy Project in Kayseri, we started to fly our flag at a new site. We signed the turbine supply and maintenance contract with Nordex for Erciyes WPP. There, we will use the largest rotor diameter turbines of Turkey. We are preparing to commission our Y Power Plant by the end of 2022. With the realization of our project, we will increase our overall installed capacity to 3,672 MW. Thus, we will continue to maintain our position as an electricity generator with Turkey's leading renewable portfolio with our increased capacity. For the next 5 years, we are going to make all our investments on wind and solar energy.

Leadership not only in generation but also in all spheres
As Enerjisa Üretim, we operate with the awareness of leadership for the development of the industry. As well as expanding and diversifying our own capacity, we develop solutions and collaborations that will increase the operational capabilities of small-scale players for sectoral development, provide consultancy, and offer structured commercial products. As a market maker, we ensure that the system remains stable so that small-scale players can continue their business. We share our knowledge and experience with the entire industry in line with our collaboration culture. We completed the year well above the profit targets in gas and electricity trade, reaching a total sales and trade volume of 34 TWh. In the energy markets, we recorded a significant rate with 40% trade volume. We continued to shape the industry as Turkey's leading energy trading company via our electricity and natural gas trading companies.

Yurtdışı açılımımız güç kazanıyor
Enerjisa Europe, which we established to carry out electricity and natural gas trading operations in Eastern Europe, performed its initial trade transaction in the Hungarian market on September 24, 2021. Having completed its licensing procedures in all Eastern European countries despite the pandemic conditions, Enerjisa Europe will expand its trade network in 2022. In addition to its electricity and natural gas trade operations, it will also accomplish trade transactions among countries.

Our digital journey is under way
In order to fulfill our Enerjisa Generation vision, we pursued our operations with a lean, flexible and dynamic working model free from hierarchy. We have actuated the information technology business partnership structure that will accompany business units throughout their digital journey. We have created a mentoring structure to provide support on issues that require coordination and guidance in multidisciplinary structures. Senkron is one of the best practices of the realization of our goals of digitalization and pursuit of excellence. We carry out the remote operation of our 12 hydroelectric power plants, and monitor the processes of our wind, solar and thermal power plants through the Central Operations Room Senkron established in Istanbul Ataşehir Head Office. In a short period of time, we will also operate all our wind power plants from Senkron. By the virtue of Senkron, we have achieved a first in Turkey by combining our entire portfolio spread all over Turkey under one roof. We make a difference and ensure the development of the sector by managing power plants that are not directly within our structure, under this roof as well.

Our strength is our people and our culture
Our company derives its utmost strength from the people on the way to be a successful and sustainable company. We consider everyone who contributes to company performance and corporate culture, as a value. We are commited to increase employee satisfaction and engagement, and to increase the employer brand value, so as to become one of the best employers preferred by talents.

Enerjisa Üretim's "WE GENERATE" philosophy is not limited to generating energy only. For Enerjisa Üretim employees, “Generating” also means generating knowledge and culture, but more importantly, sharing this knowledge and inspiring. In this context, we participated in the "Leading Corporate Transformation in a Post-Covid World" event held by "WHU - Otto Beisheim School Of Management", which is the best business school in Germany and one of the most important ones in the world, and we explained the ambitious transformation process of Enerjisa Üretim following the split-off of Enerjisa in 2017. With this presentation, which told the story of our 4-year transformation process, our teams pursuing excellence, and the path covered, we demonstrated our difference at a global event attended by outstanding brands. At this point, I would like to congratulate the entire Enerjisa Üretim team who contributed to the transformation. We focus on our employees and create opportunities for their development, attach importance to the continuous development of them, and we consider our company as a school that raises long-term trained, experienced and visionary teammates for the industry. In addition to several trainings we have organized, we launched the Power MBA program in cooperation with Sabancı University EDU in 2021. The Power MBA Program was kicked off in October 2021 with its first-term participants. Among 25 participants, there were Enerjisa Enerji, Akbank, Garanti Bank, Sabancı DX and Nordex employees as well as Enerjisa Üretim employees. We aim the Power MBA program to be a development program that guides the energy industry. In line with this aim, we will continue to open this program every semester with new participants from public and private sector players in Turkey and other geographies where we operate.

We organized Turkey's first Physical Asset Management Conference on 9-10 December at Tufanbeyli Spektrum Academy. More than 150 physical and 2,000+ online attendance from 18 different organizations was recorded in the conference, which was organized with the participation of leading energy companies from the industry, technology and consultancy companies, certification bodies and academicians.
We generate with respect to life through our social responsibility and sustainability strategies

Social responsibility and sustainability are positioned at the center of our way of doing business. We structure our environment, social and governance understanding on the axis of sustainability principles, integrating an inclusive approach ranging from gender equality to biodiversity. Furthermore, we carry out many social responsibility projects and activities. To honor our 25th anniversary, we have planted 250,000 saplings and committed to plant 10 thousand times our institutional age each year. In line with this perspective, we define sustainability as a holistic approach that should be integrated into all our decision-making processes and way of doing business. We have obtained the ISO 55001 asset management certificate as a first in Turkey. Our CDP score was registered as "B".

We support local development and prioritize local resources in employment and procurement practices. We encourage our employees to volunteer in social responsibility activities. With the documentary "Saimbeyli Mavisi", which we sponsored and shot in collaboration with Coşkun Aral and Habitat TV in August, we created awareness for Saimbeyli, which is located in the vicinity of our Tufanbeyli Power Plant and Yamanlı II Hydroelectric Power Plant. We aim to turn Saimbeyli District, which is among the 10 important butterfly areas in Turkey and which has approximately 40% of Turkey's butterfly biodiversity, into a niche tourism center, to enhance the level of income in the district via eco-tourism and to protect biological diversity. We have developed carbon certificates of our own assets and are actively trading them.
Enerjisa Üretim is preparing for a new transformation with "Üretim Next"

The years 2017-2021 have been the Transformation Period for our company. During this period, we carried out significant infrastructure tasks and established a structure that will prepare ourselves for the future. Now we are starting a new transformation, that is, the period we call "Üretim Next". In the new period, we will transform Enerjisa Üretim into a company, which

• makes the best use of data in the world,
• places people at the center of its business,
• is a benchmark with its digital competencies,
• expands its trade operations in Europe exponentially,
• has taken its sustainable success to different continents with the awareness of generating with respect for life.
• has initiated brand new operations.

To serve this journey, we keep our organizational structure, staff, outsourcing preferences, managerial structure and practices more agile and dynamic, and shape them in line with the conditions and requirements of our age.

Up until today, we have taken significant steps towards becoming a digital electricity generation and trading company. In order to realize our dreams in our “Üretim Next” journey, we need to be a team that:

• possesses high digital capability,
• adopts the agile approach,
• acts in accordance with the conditions and requirements of the new world,
• is forward-looking,
• is curious,
• retains the courage to forget what they know and re-learn when necessary,
• does not refrain from trial-and-error,

and we continue to implement our plans so as to create an environment that will enable all these.

Our agenda for 2022
In order to achieve outstanding results in a constantly changing, dynamic and challenging agenda, we closely follow developments and create proactive strategies. Accordingly, our key priorities in 2022 will again be:

• Operational excellence and digitalization,
• Creating value with cross-border and innovative products in trade, ürünlerle değer yaratma,
• Growth in non-capital intensive areas,
• Making best use of new opportunities that may arise in terms of renewable energy sources,
• Sustaining hybrid power plant investments
• Dynamic portfolio management

In 2022, the increase in energy generation costs due to the global political and macroeconomic crises may expose Turkey to geopolitical and economic risks. Potential market fluctuations and deterioration of the supply-demand balance may open the door to regulatory interventions. As Enerjisa Üretim, we have made our arrangements. By the virtue of our diversified portfolio, strong financial structure and competent human resources, we aim to maintain our position as the industry leader in the upcoming period as well. As Turkey's leading electricity generator in renewable energy, we pursue our investments in hybrid power plants. Our target is to gradually add a total of 150 MW solar hybrid power plants to our portfolio within three years. In this context, we took the first step for an investment of 30 MW, which we will commission in 2022, and made supply agreements. We will be commissioning Erciyes WPP in 2022. We generate the first green hydrogen at the power plant and follow M&A and investment opportunities in renewable energy. Enerjisa Europe will also carry on expanding its business areas. Continuing to pay dividends in a sustainable manner will be among our priorities.

We proceed taking significant steps in terms of gender equality and we design projects where we will provide several developments within the scope of diversity and equality. We are planning to implement the “Training program for 500 women students”, which will be launched in 2022, in partnership with imeceLAB, and we aim to contribute to the increase in the rate of women employees in the sector. Finally, I would like to express my pleasure to be a part of such a dynamic and visionary company. On my way to office every day, I feel that it is a great opportunity for me to work with a team that I am proud working with, that I know I can trust in challenging times, and that makes Enerjisa Generation the largest electricity generation company of Turkey. These achievements belong to all of us as a team. Let's keep up the good work together!