Reports

A bright future through education, culture and the arts...
The Borusan Kocabıyık Foundation is a center for corporate social responsibility which is actively involved in education, culture and arts. It was established
for the purpose, among other things, of setting an example for the Turkish business community. During 2010 the Foundation allocated $ 10 million of its
budget for activities and projects in the fields of education, culture and arts.

The Borusan Kocabıyık Foundation continued to carry out numerous social responsibility activities in education with the conviction that the private sector
must also contribute to the campaign that has been initiated to overcome the problem of the lack of a qualified labor force. Meanwhile, the Foundation’s
activitiesin the areas of culture and arts are guided by the principle that Turkey must develop a common universal language through these realms in
partial fulfillment of its global integration.

In these latter areas, the Foundation has especially concentrated its efforts in classical music towards two specific targets. The first of these is the aim
of forming a cultural bridge between Turkey and other countries through the vehicle of classical music since it is considered a universal language.
And the second goal focuses on engendering global publicity for Turkey both through its music activities as well as the preservation of our cultural
heritage through various activities. The efforts in this regard go beyond classical music through such projects as our ArtCenter/Istanbul, the restoration
of the Terrace Houses in the ancient city of Ephesus, the Borusan Music House and Ertuğ & Kocabıyık Publications.

In the future Borusan plans to carry out its corporate social responsibility initiatives through a special focus on its own sustainability. In addition to
education, culture and the arts we are also planning to initiate innovative environmental projects pertaining to the sustainability of the global ecosystem.


Borusan’s 2010 corporate social responsibility activities related to the field of education can be summarized as follows:

Support for Schools and ScholarshipsMatching the pattern of previous years, in 2009 the Borusan Kocabıyık Foundation continued to provide for a variety of needs not only in the schools with
which we are affiliated, but with others as well. The Foundation also maintained its tradition of offering scholarships for university students. In this
regard, during 2010 the Foundation provided for a variety of needs at the State Conservatory of Mimar Sinan University. A sizeable endowment was also allocated for the Cardiology Department to be established at the Erzurum Ataturk University and the “Satı Gelin Girls Dormitory” which was built by the
Afyon Hocalar District to provide further educational opportunities for 144 female students. Also, the construction of the Law Faculty building at Afyon
Kocatepe University was started at the end of 2010.

Through the Turkish Education Volunteers Foundation (TEGV), in 2010 the Borusan Kocabıyık Foundation also provided scholarships for the room and
board of 3,000 students, domestic education scholarships for 125 students, and overseas graduate scholarships for five talented young classical
musicians.

Support for the “Dad, Please Send Me To School” Campaign
“Beginning in 2009, the Borusan Kocabıyık Foundation decided to support the “Dad, Please Send Me To School” project and made a commitment to
provide scholarships for 100 girls for a term of three years naturally, this support was continued in 2010.

CULTURE AND ARTS

Borusan Culture and Arts (BCA) coordinates its classical music-related activities in Turkey through the Borusan Istanbul Philharmonic Orchestra (BIPO),
the Borusan Chamber Orchestra (BCO), the Borusan String Quartet, the Borusan Children’s Choir, the Music Library and the Borusan Music House. As
Turkey’s representative in the arts to the international community, BCA is a member of the International Society of Contemporary Music (ISCM) as well
as the European Music Council (ECM). It also organizes the Istanbul New Music Festival.

In January of 2010 the Borusan Istanbul Philharmonic Orchestra released its first international CD compilation through the Onyx Classics Company.
Comprised of infrequently recorded compositions, the CD was produced by Sascha Goetzel and received favorable reviews from international press.
It was broadcast during numerous music programs.

During the 2009-2010 season, the Borusan Istanbul Philharmonic Orchestra performed a total of 13 concerts. In addition, Gürer Aykal was the
conductor during the opening concert of the 38th International Istanbul Music Festival where the orchestra accompanied the famous pianist Lang Lang.
At the same time Iannis Xenakis performed her piece entitled “The Oresteia” during the event.

On July 25, 2010 BIPO gave a concert during the opening ceremonies of the Salzburg Festival where only the most prominent orchestras in the world
are given the honor of performing. BIFO was invited to Salzburg on the basis of its selection as the most successful orchestra of the Istanbul 2010:
European Capital of Culture events. The Orchestra was accompanied by famed pianist Fazıl Say while in Salzburg. The concert, which was an excellent
platform for introducing Turkish culture and for demonstrating the high musical level Turkey has attained, received wide acclaim from the Austrian
press.

During the final days of 2010, the BIPO & Fazıl Say Festival was organized by Borusan Culture and Arts for the first time in Turkey. During this threeday
festival, Fazıl Say performed three of his pieces for fans of classical music accompanied by BIPO and the Borusan String Quartet.
In 2010 the Borusan String Quartet accomplished a great feat by taking first place during the 2010 International Chamber Music Ensemble
Competition (ICMEC) which was organized in Boston by the New England Chamber Music Foundation. Out of 87 groups that participated in this
prestigious event, the Borusan String Quartet outperformed the other eight groups that made it to the finals and brought home the esteemed first place
award.



Sponsorship of the International Istanbul Music Festival
As one of the largest and longest supporters of the International Istanbul Music Festival, Borusan began a special partnership with the Festival in 2006, committing to become the main sponsor of the event for a period of 10 years. From the beginning of this sponsorship Borusan has been known for its
continual implementation of creative initiatives to stir up interest among the masses concerning the Festival itself as well as classical music. In 2010
the Festival was one of the most important components of the Istanbul 2010: European Capital of Culture project.

Borusan Music Scholarship
The Special Concert Series that is organized each year by the Borusan Kocabıyık Foundation helps provide higher education opportunities at some of
the world’s most prestigious institutions for young Turkish talents who demonstrate unusual potential in classical music. Essentially, it supports the
development of future world renowned artists.

Cem Yılmaz, one of Turkey’s leading show business and media stars, was the Guest Conductor for the 2010 version of the Special Concert Series,
which was held this time at the beginning of the year. This fourth annual Special Concert was a first for two reasons. It was the first time someone
from the world of the arts took the baton to lead BIFO and it marked the first time concert tickets were offered for sale to the public. The revenues
generated from the Concert, which was viewed by an audience of 1,750 music lovers, helped create additional funding for the scholarships of six young and talented musicians.

Borusan Music HouseLocated in the heart of Istanbul’s cultural and art district in Beyoğlu, the Borusan Music House was created for the purpose of hosting events for a variety of art disciplines. Last year, a total of 50 events were hosted between January 15 and May 21 in conjunction with the Istanbul 2010: European Capital of
Culture endeavor.

The Music House stages chamber, jazz and world music concerts, as well as DJ performances and special music projects specific to the venue. In addition, every month young music talents are given an opportunity to display their art.

The Music House is also an important venue for modern art exhibitions. The Cosmic Latte Exhibition and the Mind Models Exhibition, both held in
2010, drew 1,800 and 2,700 art enthusiasts, respectively. Meanwhile, the Matter-Light Exhibition covered all the floors of the Borusan Music House
and attracted close to 35,000 visitors.

Ertuğ&Kocabıyık Publications
In keeping with Borusan’s ongoing vision of introducing Turkey’s rich historical and cultural heritage to the world through high quality books,
Ertuğ & Kocabıyık Publications released their newest book in 2010, entitled Palaces of Music.

Ephesus - Marble Hall Sponsorship and Ephesus Foundation
In line with Borusan’s ongoing work in the project of renovating the ancient city of Ephesus, we continued our sponsorship of the Marble Hall last year.
The scheme, which was started four years ago and is estimated to cost € 300,000, will undoubtedly occupy an important place in the world of
archaeology.

In 2010, the Ephesus Foundation was formed under the leadership of Borusan Holding in an attempt to contribute to the development of the ancient city of Ephesus, as well as to provide international publicity. Borusan Holding, Eczacıbaşı Holding, and Doğuş Holding are among the corporate founders
of this new non-profit organization, while individuals involved in this start up venture include Ahmet Kocabıyık, Zeynep Hamedi, Nükhet Özmen,
Alexander E. Gertner and Yasemin Pirinçcioğlu. The primary aim of the Ephesus Foundation is to facilitate the excavation process taking place in the
ancient city of Ephesus and support its promotion in the international arena in order to help make Ephesus one of the world’s leading tourism
destinations.

The “Time and Place” project by sculptor Andrew Rogers
Borusan Holding was the sponsor for the opening ceremonies of the “Time and Place” exhibition by the internationally recognized Australian sculptor
Andrew Rogers, critically acclaimed for his work of art which can be seen from space. The pieces of art were formed through the labor of 230
Cappadocia residents by using 11,000 tons of rocks to complete the art works, which are so large they can be viewed from space.


The Borusan Group is committed to limiting the use of natural resources to an absolute minimum in all areas of business activity. The Group
companies are aware of the importance of keeping clean and protecting their environment and thereby conduct themselves accordingly. Nearly every
one of the Borusan companies has obtained the ISO 14001 Environmental Management Systems certification and each has made a full commitment to
adhere to all related laws and maintain control over their adverse affects on the environment. Studies are ongoing to appraise possible means of
reducing the use and disposal of all harmful chemicals, hazardous and other forms of waste. Environmental projects that are designed to reduce
energy, water and nitrogen consumption are also in the process of being implemented. A comprehensive study launched to assess the carbon
emissions of the Group’s companies was completed in 2010.


This endeavor has become an inspiration for similar projects across Turkey. As a result of this successful collaboration similar ventures have now
been initiated in five regions. The scheme is named “The TEMABORUSAN Afyonkarahisar-Sinanpaşa-Güney, Düzağaç and Tokuşlar Towns and Kınık
and Karacaören Villages Rural Development Project”.

Global Warming and Climate Change DeclarationBorusan Holding was also among the private sector companies which signed the Cancun Declaration calling for the urgent formation of a legal, binding and comprehensive international agreement to be set in place to guard against global warming and climate change after 2012.

During the 16th session of the Conference of the Parties (COP 16) of the United Nations Framework Convention on Climate Change (UNFCCC) held in
Cancun Mexico the members of the business world created the Cancun Declaration against climate change to inform participating governments of their responsibilities and expectations. In the declaration the private sector representatives have made demands for governments to convert to lower carbon economies on a local, national and regional basis. As carbon economy related investments have continued to increase daily, the fact that more binding
steps have not been taken to deal with climate change has persuaded the leaders of the business world to make a detailed list of its demands in the aforementioned Declaration.