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supply chain

management

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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