Dear Shareholders,

Kuyumcukent Group has continued its cooperative life, which started in 1988, with Kuyumcukent Gayrimenkul Yatırımları Anonim Şirketi (Kuyumcukent Real Estate Investments Corporation) in 2005. As the first and new implementation of the new Turkish Commercial Code, the existing cooperative was taken over by our company and hence the process of obtaining a cooperative acquisition by a public company was recognized for the first time.

During this time, we delivered a total of 550,000 sqm of construction and 3300 detached property to jewelers and all investors in the industry.

Following the cooperative unification, we have completed all the necessary work to start trading KUYAŞ shares in the 2nd National Market, which we have previously targeted together with you, and thus we have taken a big step forward towards the realization of our dreams by entering into the 2nd National Market on December 12, 2013.

In 2014, our company has increased its capital to TL 9.072.932 by distributing 15.18 times bonus shares to our shareholders. Our number of investors on the market has reached to 2700. It has been attracting attentions of other persons besides the jeweler tradesmen. Therefore, I would like to point out that we are now a publicly-owned company in the real sense.

In order to strengthen our shareholders' equity and to be able to give share certificate to all our esteemed shareholders in 2015, we have increased our capital to TL 27,218,798.16 with a 100% paid capital increase and 100% capital increase by bonus issue. If we get permission from the necessary authorities in the next years, our capital increases will continue.

“Borsa Istanbul Precious Mines and Precious Stones Market Building” which was under construction and sold to Borsa Istanbul A.Ş. previously, has been completed, its occupancy certificate has been acquired and delivered in March 2016. The rough construction works of our Borsa Kule building were completed by 60%. Our company has proved itself in construction activities with the units that it has produced in commercial areas and construction of 3 residential projects started in 2015, in areas such as Kalamış, Bağdat Street and Caddebostan, which are one of the most popular districts of Istanbul, are continuing.

We have projects in both the abovementioned region and in the other exclusive districts of Istanbul, where preliminary negotiations have been concluded and negotiations for signing the certain contracts in progress. We will make a declaration to the public regarding the status of these projects after the signing process is concluded.

Our main goal is to increase the interest of all our shareholders even beyond by further developing our profitable commercial projects. Within a year, we are working on hundreds of project proposals, and we are bringing the most profitable ones to the signature phase during the year.

In the real estate development business, which is our main field of activity, we plan and manage to grow in 5 years in line with our goal to be one of the 10 most known real estate companies in Turkey.

In addition to our main activity, real estate development, we have also established and started to execute a facility operation and management company under the name of "Kuyumcukent Management Corporation" within the framework of the authority we have obtained from the general assembly by the amendment of the main contract in March 2016 General Assembly. Along with this company, we aim to operate our own buildings that we have produced, as well as to execute other leading projects on the market, and to get a big share of the facility management cake, where Turkey is expected to grow in this promising area for the next years.

Our growth plans are not limited only by these activities. We are in the process of establishing a company by the name of “Kuyaş Gayrimenkul Satış ve Pazarlama’’ (Kuyaş Real Estate Sales and Marketing) within the framework of our goal of establishing new companies in areas close to real estate development that is our own core area. Through this company, we aim to undertake sale and market other leading projects as well as to sale and lease our own buildings.

I would like to thank you for your trust and support on behalf of the Board of Directors.

Respectfully yours,

Sait Erdal METİNER