Cement, Energy and Environment

Despite the growing uncertainties and new risks in European Financial Markets, Turkish Economy succeeded to minimize the impacts of the Global Crisis and gives strong signs of recovery in 2010. With a strong probability, the budgeted 3.5% increase in GOP shall be even surpassed in 2010. Construction trends in Turkey The upcoming recovery in construction should be primarily led by the new housing sector and the infrastructural investments. There is an expectation of 5% overall increase in the construction sector for 201 0. Cement consumption/demand - housing, infrastructure, ready-mix In 2009, total cement production, including non– member plants to TCMA, was 59.2 million tons, while domestic consumption stayed around 42.8 million tons. The country-wide domestic sales were at the same level of previous years. Yet, the market showed big differences depending on the geographic locations. Due to the stagnation in domestic sales in 2009, cement exports reached a record level. In western, northern and central regions, bulk sales reach to a share of 70%. In Mediterranean region bulk and bagged sales are approximately at the same level. Around 65% of the cement sales in Marmara and half of the sales in Aegean and Central Anatolia Region are used in ready-mix plants. In eastern regions, bagged sales are preferred. In these regions 50% of sales are realized by distributors. Domestic Sales due to Packaging Type (2009) c: c: "' ~ ~ .!!! u;~ "' "' ., 0 ~ ~ (/) 'E a; ~ "' 0 "' wi;i ., ~ " ., c: . c: <1: ~ ., Uc~; <1: (/)<( iii - :t: ., '0 ., ., ::< w lti Bagged D Bulk Domestic Sales due to Market Segments (2009) El Ready-MixConcrete • Distributor 0 Other CEM II type cement sales have been increasing since 2006. Decrease in CEM I type cement sales pointed that both emissions and costs of the plants have been decreasing. Below table shows the domestic sales due to types. CEMI 43,09 41 ,83 40,02 CEM II 36,43 39,46 42,09 CEM Ill 1,69 1,25 1,69 CEMIV 9,89 8,93 8,19 CEMV 7,34 6,83 6,02 Others 1,56 1,70 1,98 Domestic Sales due to Type (%) 2006 2007 2008 2009 39,25 41 ,97 1,30 10,91 5,03 1,54 a Other •CEM II oCEM I 2