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supply chain


                               We do business with quite a few raw material, equipment and service

                               suppliers in the industries we operate. 94% of all 7,800 suppliers that
                               provide products and services to Supsan, Borusan EnBW Enerji, Borusan
                               Mannesmann, Borçelik, Borusan CAT, Borusan Lojistik, Borusan Otomo-
                               tiv are local. Our local suppliers compose minimum 82% of all our pur-
                               chases in terms of cost of goods purchased and this ratio is 100% for
                               some of our companies.

                               In 2017, we terminated contracts with 8 local and 15 foreign suppliers
                               due to their failures to comply with quality, pricing and contract terms. We

                               started working with 270 new suppliers.

                                                     Supsan  Borusan   EnBW Enerji  Borusan   Mannesmann  Borçelik  Borusan CAT  Borusan   Lojistik  Borusan   Otomotiv

              Number of Suppliers

              Imports                             18%       4%       4%       9%      0%       2%       4%

              Local Purchasing                    82%      96%     96%      91%     100%      98%      96%

            Ethics Management of Suppliers

                               Borusan Group companies don’t do business with clients and suppliers
                               who disregard business ethics and break the laws. In 2015, we prepared
                               Borusan Group Supplier Working Conditions Protocol to be signed by

                               subcontractors and suppliers, according to the objectives set by Audit
                               and Purchasing departments. More than 150 contracted suppliers signed
                               the protocol. In 2017, there was no unethical action, legal noncompliance
                               or corruption case identified throughout the Group or in business partners
                               and suppliers to our knowledge.

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