2M Cable Domestic Sales Manager Serdar Baykal:

“2010 was a year of intense competition; it will be more harsh in 2011”

2M Cable Domestic Sales Manager Serdar Baykal said that they have achieved the goals
that they have targeted for 2010 and they will close the year with an outstanding
performance. Baykal emphasized that the year 2010 was full of intense rivalry and 2011 is
forecasted to be a more competitive year. Stating that the demands in the first 6 months of
2011 will increase, Baykal explained that the companies taking actions in 2010 will be more
successful in 2011. Baykal has evaluated the year 2010 for KablosanTurkey Magazine:

Could you evaluate 2010 from the point of your company? How were the domestic and
foreign sales rates? Were you able to reach your goals?
We have achieved our targets of turnover and capacity increase that we have set forth for
2010. We have worked diligently both with production and sales departments and succeeded
lots of things. Together with the projects that we have won in Domestic and foreign markets,
and strengthening of our agency web, I can say that 2010 was a successful year for 2M
Cable.

How was the year in terms of cable sector?

In 2009 we were predicting that due to the increasing demands, the business would be more
active and there would be stiff competition in 2010. And as we predicted, we are about to
close the year amid a pitched battle. 2010 has been a year of recovery for the sector,
however, the slashes of 2009 could not be recuperated. We have been experiencing a worth
pondering year which gives us lessons.

What are your projects while welcoming the year 2011? What will be your strategy in
sales and marketing? Which markets do you aim to penetrate?
Thanks to our machinery pool investments that started in 2009 and continued in 2010, we
were able to increase our capacity by 45 %. Having started in 2010, our “Pure Production
Project” contributed us much in our efforts to minimize the costs and expenditures. We are
aiming to increase our export rates and become the sector leader with our continuing
investments in 2011.
We are producing our products without making concession of quality and offer to the market
through the precious agencies which has an established understanding of quality and have
faith in our brand. We are not the rivals of our agencies but their solution partners. We follow
up their problems and troubles and offer them solutions. This situation will go on in 2011 and
in the following years. I want to point it out that we are aware of our responsibilities as a
preferred manufacturer of cables by brand companies. Despite all the negative rivalry
conditions in the sector, we keep our word and produce what we have promised. All the
processes in our company have been formed in order to serve our agencies in the best way
and market hem feel the enjoyment of working with us. Together with our partners, we will
keep our mission of providing low voltage cables that will meet the safety, comfort and
communication requirements.

What do you expect from 2011 in terms of demand? What are your expectations
regarding Europe, neighboring countries and domestic market?
Our expectations from Europe and neighboring countries in 2011 are not parallel. Our criteria
for evaluating regions are also not the same. Even we experience country based
differentiations, let alone region. However, we have new plans for target markets, clinging
markets and potential markets and these plans are developing. We have already rooted
customers in Europe. We are carrying on our activities to keep them and improve our
Relations. We have done these activities and succeeded.
We cannot make a generalization as neighboring countries. However we have developing
activities in Middle East. Our business in Russia is already established. Although the
situation is out of balance in Turkic Republics, we will evaluate the potentials in in the long
run.
We can say it in no uncertain terms: “Well, the demands will increase in the first half of 2010.
It has increased in 2010. However increasing rivalry will keep growing in 2011. For that
reason, the companies which have taken action in 2010 will be more successful in 2011.

How does the fluctuation of raw material and exchange rates effect your sector?
The fluctuation of raw material and Exchange rates affects the export and the whole sales.
The changing copper prices increase the daily optional prices and on the other hand
increase the loses between sales and collection. Exchange rate is the most important point
for the exporting company. As the LME increase is the same in all over the world, the change
is accepted easily. However, we have hard times to explain the change due to the rate of
Turkish Lira against dollar or Euro. The changing rate of Turkish Lira on the basis of USD
and Euro is a serious problem for stability. The exchange rate of Euro-USD is very effective if
you consider thaht the collected Euro from customer is used to pay copper in USD. Every
sort of fluctuation affects your activities negatively. Nonetheless, one of the problem of
Turkish exporters is that the Exchange policies to preserve the exporter is not enough.