[CONSOLIDATION_METHOD_TITLE] [CONSOLIDATION_METHOD]
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New Business Relation
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Hayır (No)
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Hayır (No)
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Date Of The Previous Notification About The Same Subject
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Hayır (No)
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Nature Of The Other Party With Which New Business Relation Will Start
Tedarikçi (Supplier)
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Name Surname Or Company Title Of Customer Or Supplier
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If Exists Share Of Customer Or Supplier In Net Sales Or Cost Of Goods Sold On Latest Disclosed Profit Or Loss And Other Comprehensive Income Statement Of Company
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If Exists Share Of Customer Or Supplier In Trade Receivables Or Debts On Latest Disclosed Statement of Financial Position Of Company
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Expected Starting Date O fNew Business Relation
01/01/2021
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If Exist Significant Provisions Of The Contract
Stated below
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Impact Of New Business Relation On Company Activities
Positive
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Explanations
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Exclusive Export Cooperation & Transit Sales Agreement was signed today (11.11.2020) between our Company and one of China's largest tool steel producers ("Supplier"). Our company does not have export revenues currently and will generate additional transit export revenues from 26 countries as of 01.01.2021, on the back of this agreement. Within the scope of the agreement, we expect to register approximately EUR 900,000 EUR sales revenues by exporting 500 tons of tool steel in 2021, and this contribution is expected to reach the level of EUR 2-3 Million EUR in 2022. The revenue contribution will increase eventually through the persistence of the agreement and the increased penetration in the export markets going forward.


The Supplier is one of the companies producing high quality tool steel at the most competitive prices in the world and this will provide our Company a strong competitive edge while initiating export operations. Meanwhile, we will have chance to get market share in countries which boycott Turkish goods and cease the business with Turkey partially or completely; such as Morocco, Saudi Arabia and the United Arab Emirates, thanks to Chinese-origin products.


Agreement Details:

Based on the agreement, our company will act as the "Exclusive Representative" of the Chinese tool steel producer in 26 countries which are based in the Middle East, North Africa and Turkic Republics. Our Company will be able to generate two types of revenues within the framework of the Exclusive Representation (Single Seller).

1- Our Company will charge 5% commission fee on the sales made by the Supplier from China directly or by its steel service center in Turkey to these 26 countries.

2- Our company will apply the profit margn it deems appropriate on the transit export sales made to these countries.

The agreement, which will come into force on 01.01.2021, will be valid for one year and will be automatically renewed every year unless terminated by the parties. Although there is no purchase guarantee for 2021; no penalty will be charged for the purchase guarantee of 1,000 tons for 2022. There are no guarantees or financial obligations given under the agreement.