2014 ANNUAL REPORT

BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014

(Currency - US Dollars (“USD”) unless otherwise indicated)

1. CORPORATE INFORMATION

General

Borusan Holding A.Ş. and its Subsidiaries (hereafter referred to as the “Borusan Group” or the “Group”) commenced operations in 1944 as Borusan İstikbal Ticaret T.A.Ş., a company,

trading steel products and exporting dried fruit.

Borusan Holding A.Ş. (“Borusan Holding” or the “Holding”) was established in December 1972 as a corporation to coordinate the activities of and liaise between companies operating in

different fields including steel business (pipe and flat steel production), distributorship of leading brands (BMW, Mini, Jaguar Land Rover and Caterpillar) and integrated logistics. Borusan

Holding is registered in Turkey and owned by members of the Kocabıyık Family (see Note 19). The registered address of the Holding is as follows:

Meclis-i Mebusan Caddesi No: 35-37

Fındıklı - Istanbul – Turkey

Nature of Activities of the Group

The principal activities of Borusan Group comprise the following:

• manufacturing of steel pipes longitudinally and spirally welded for sale in domestic and foreign markets;

• manufacturing of cold rolled coils, galvanized coils and metal sheets for sale in domestic and foreign markets;

• exclusive sales and after sales services of BMW, MINI, Land Rover and Jaguar vehicles and car rental services in Turkey;

• exclusive sales and after sales services of Caterpillar, earthmoving equipment and power systems, in Turkey and Central Asia;

• providing integrated logistic services, shipping, port activities, warehousing and customs clearance services;

• manufacturing of engine valves for the automotive industry for sale in domestic and foreign markets;

• generation and wholesaling of electricity.

Since September 1998, Borusan Holding has a controlling interest in a sub-holding company, Borusan Mannesmann Boru Yatırım Holding A.Ş., which was established to coordinate

the activities of Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş., a listed company in the Istanbul Stock Exchange (the “ISE”). In addition, Borusan Holding controls three investment

companies; Borusan Yatırım ve Pazarlama A.Ş., a listed company in the ISE, Borusan İstikbal Ticaret T.A.Ş. and Borusan Teknolojik Yatırımlar Holding A.Ş.

The Group is organized mainly in Turkey into four main business segments:

• Steel segment

• Distributorship segment

• Energy segment

• Logistics segment

Other operations of the Group mainly comprise valves production.