Q3 2017

1) Due to an increased possibility of a FED rate hike and the global economy experiencing political and economic tensions, emerging markets –headed by Turkey – are seeing cash outflows to USA and Europe.

2) Forward looking, this case may bring forth the risk of financial difficulties for countries with budget deficits and the need to finance their current account balance. Hence, the unavoidable rate hike and the risk of its continuance, as well as the inevitable surge in exchange rate movements are likely to follow.

3) A direct impact on Turkey is seen from the political, social, economic collapses in the geography surrounding Turkey, specifically in the border countries such as Iraq and Syria.

4) After June 2015 elections period Turkey is left with a chaotic political environment heading into further uncertainties in the future.

5) The immediate and sudden terrorist attacks of PKK terrorism in the southeast has seriously affected Turkish people and has negatively affected consumer confidence.

6) Being caught without a government and that elections will be repeated in the very near future have created recession and uncertainty.

7) On top of everything, VW AG faces global confidence and trust issues with potential commercial risks that may arise in the future, which may also seriously and indirectly affect Turkish Automotive Market interms of legal controls, a recall campaigns leading to additional costs to companies.

We expect a decrease in automotive demand in 2016. The election results will be determinative on the automotive demand in 2016.

*Information pertaining prior to the November 1st elections.