NEWS. The Standard Profil Family is growing. with Ford

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In-house publication by Standard Profil.

factories in Turkey and across the world.

1 l TURKEY l BULGARIA l CHINA l S. AFRICA l SPAIN l MOROCCO l MEXICO NEWS In-house publication by Standard Profil. Complimentar y copy. Y e a r : 1 I s s u e : 1 J U N E w w w. s t a n d a r d p r o f i l. c o m STANDARD PROFİL OPENS A SECOND FACTORY IN BULGARIA The Standard Profil Family is growing We now have one more factory in operation among our other factories in Turkey and across the world. We have launched the second factory in Bulgaria by ways of the 10.5 million euros-worth investment. The Prime Minister of Bulgaria, Boyko Borisov; top government officials from Turkey and Bulgaria, our CEO Turhan Semizer, company managers and a large number of press members attended the opening ceremony which took place in Stara Zagora. STANDARD PROFIL CEO TURHAN SEMİZER This investment will enhance our position in the global arena Pg 4-5 OUR R&D CENTER TO LEAD THE SECTOR Great Project with Ford joins the world of publishing! The quarterly newspaper SP News will be a meeting point special to us. It will be our voice to announce the news of Standard Profil Family. We hope for an enjoyable read and also your participation for the following issues to make this newspaper even more colorful. Pg. 2 Target: World leadership Standard Profil started R&D studies already in the 2000s and now opened the first R&D center in Turkey to upgrade these studies, on 15 April in Düzce. The R&D Center, which is operated by an experienced and dynamic team, aims to shape the sector via pioneering projects. Composed of three different departments within the Düzce Factory, the R&D Center has set sights on achieving world leadership in line with the growth targets of our company. Internal AudIt DIrector Kemal TAPKAN: Global companies tend towards ethical values Pg. 3

2014 was quite significant for us; we fortified our grounds for a professional, sustainable and corporate structure, and standardized our systems and processes.

2 2 U P - T O - D A T E We are a family and will reach our goals with team spirit Dear Colleagues, SP News is entering the world of publishing. I feel excited to be meeting with you all on this opportunity. The year we passed and the first half of this year have been fruitful in achieving new successes and taking up exciting beginnings was quite significant for us; we fortified our grounds for a professional, sustainable and corporate structure, and standardized our systems and processes. Thanks to these developments, we didn t only reach our financial and economic goals for 2014 but also displayed significant improvement when compared with the previous year. In addition to our achievements, we had to face some shortcomings in 2014, too. We fell behind in cost of quality and efficiency, when compared with our rivals. We started the new year with an ambition to overcome these issues and determined four pillars that will form the basis of our success: Operational excellence, focus on quality, flawless launches and international footprint. As a corporation that truly believes in the importance of technologic advances, innovations and existence in all markets for sustainable growth, we opened doors to new beginnings in 2014 and In December, we opened the Mexico Factory, where we fulfilled our first manufacture in the continent of America. In April, we received the official authorization for our Turhan Semizer / CEO R&D Center in Düzce. As a result of this progress, we have taken up new projects; entered on a positive trend with the Ford Focus project in Spain. We have proven Standard Profil s global and pioneering nature once again with the Opel Astra project, which is to be produced in our new 5-thousand-squaremeter factory that opened in Bulgaria in May. We have included the hybrid encapsulation concept in our product range. The concept is the result of a blend of Standard Profil s R&D experience, yearlong engineering works and prototype studies. We have achieved a position where we can offer a larger range of services for our customers. The first six months of 2015 had given us confidence for reaching our goals. The rest depends on team spirit and harmony. I believe that Standard Profil Family will reach all its goals by working together for efficiency and high quality, by reducing costs to increase competition and creating development opportunities. As a product of our communication goals, the SP News will be meeting with us quarterly to give news of Standard Profil Family. You can read in the pages of SP News all these great developments and more. Hoping to share even better news next time Grate Project forget with Ford Standard Profİl is taking charge of the design and manufacture project of sealing profile for one of the world s biggest automobile manufacturers, Ford s Focus 2018 model. Within the scope of the 30 million euros-worth project, our factories in Spain and Morocco are to manufacture sealing profiles of 405 thousand automobiles that Ford Focus plans to manufacture in Europe. According to the agreement, Standard Profil s designs will also be used in Ford Focus 2018 Mexico, Argentina and China, too. Standard Profil s customer-oriented strategy played a great role in the achievement of this global project. The thermoplastic glass channel cords are recently developed for this project. Toyota rewards Standard Profil the Outstanding Achievement Award Standard Profil s value-added production of cost performance and competitive price policy have been deemed worthy of the Outstanding Achievement Award by Toyota. Our CEO Turhan Semizer accepted the Cost award on behalf of Standard Profil, at the Toyota Motor Europe (TME) Annual Business Meeting 2015 Awards Night in Brussels. Semizer talked about the successes that Standard Profil has achieved since the day it was founded and added: Our primary goal is to carry on our leadership in the sector with the help of our positive cost performance for business partners and competitive price policy in addition to the product quality. And this Outstanding Achievement Award we have just received from our business partner Toyota is motivating us to achieve better in line with our goals.

U P - T O - D A T E 3 Internal AudIt DIrector Kemal TAPKAN explained the EthIcal Codes Project Global companies tend towards ethical values Talking about Standard Profil s rapid growth in the last 15

There is an obvious tendency towards ethical values in the world.

contribution to a more sustainable world in addition to their financial performance. And ethical values imply all of these concepts.

We are launching the Ethical Codes Project in order to put these rooted values in writing and to generalize these in the world. Ethics and morals are closely related to one another.

For instance, think about the lands we currently operate in; it is the sociological developments that shaped their morals.

TechnologIc advances brought In a new dimension to communication With the rapid development of technology, communication has gained a new perspective.

3 U P - T O - D A T E 3 Internal AudIt DIrector Kemal TAPKAN explained the EthIcal Codes Project Global companies tend towards ethical values Talking about Standard Profil s rapid growth in the last 15 years and how it became a global company, Kemal Tapkan is giving news of the launch of the Ethical Values Project, which aims to announce to the world our universal rules. There is an obvious tendency towards ethical values in the world. Not only in the countries we are located but also in the entire world, companies are now evaluated by their environmental consciousness, social responsibility projects, ethical perception and contribution to a more sustainable world in addition to their financial performance. And ethical values imply all of these concepts. Standard Profil has always considered ethical values as the primary guide to its business manners. We are launching the Ethical Codes Project in order to put these rooted values in writing and to generalize these in the world. Ethics and morals are closely related to one another. While ethics refer to universal values, morals are rather native and regional. Countries or even regions might have different morals. For instance, think about the lands we currently operate in; it is the sociological developments that shaped their morals. As a global company, we figured it was time to announce to the world our ethical codes and this is how we started this project. TechnologIc advances brought In a new dimension to communication With the rapid development of technology, communication has gained a new perspective. The social media spreads news to millions of people in less than no time. Concepts like human rights, environment, compliance to regulations and social responsibilities have gained recognition among societies around the world. Companies work for decades to build their corporate reputation; however it takes a very short time to ruin this reputation because of negligence of ethics. This is why we must protect and preserve our company at all times. Standard Profil has become a world giant in the last 15 years. We have institutionalized with the effect of this rapid growth. Things used to be within the implicit approval of a handful of directors, while now complex computer systems, procedures, instructions and job definitions became compulsory because of some new complicated structures. And this corporate structure requires ethical codes to be written down just like purchasing or human resources procedures. EthIcal codes In written are essential to global companies I also think that this is an obligation. Having written ethical codes and programs is a prior condition of working with global companies. Tender specifications used to include technical demands, while now various other information is asked for by companies. Such that, the written ethical code is an essential of global giants. In other words, they have to make sure we behave ethically and embrace this understanding if they are going to form a long-term business plan with our company. I can even recall previous experiences with customers where they audited our ethics. And then we went and audited our most critical suppliers. Cases of abuse have always a leverage effect for developing an ethical program in companies. We are Standard Profil and we need to set an example. This is a debt of social responsibility. We operate in many countries of the world and work with local suppliers in these regions. I believe that it is our social duty to introduce our ethical codes to these places and that there would even be a financial yield of operating in a more corporate atmosphere. The project progressed quite easily The greatest risk of this task was to discard the corporate knowledge and form a whole another document that nobody agreed on. Yet, we have managed to prepare our codes with the participation of everyone. We have completed the first phase of our training program in Turkey and Spain. The document has been published in Turkish and English languages on our website and SP Portal. We have formed the Ethical Board, which already carried out the first meeting. We have also connected an ethics information line ( , postal mail and freephone) that operates a reporting mechanism. The document has been formed into visual publication too. We prepared ethics posters and hanged these at various spots in our factories. Our most recent plan is to transfer these codes to our employees via an educational program; this way we will have completed the first phase of our project. And the next plan is to apply these rules in the best way we can. I hope that our ethical codes will be to the benefit of all. Standard Profil receives plaque at the Lean Six Sigma Conference The fifth Lean Six Sigma Conference that gathers global actors with the Turkish business world took place in Antalya. The main title of the conference, which took place on 7-8 November 2014, was Continuous Development and Improvement. Our colleague Dr. Ali Erkin Kutlu made a presentation titled The Creation of the Culture of Continuous Improvement at the conference, where both local and foreign speakers took stage. Kutlu received a plaque for his contributions.

4 N E W S I N B R I E F We now have one more factory in operation among our other factories in Turkey and across the world. We have launched the second factory in Bulgaria by ways of the 10.

4 4 N E W S I N B R I E F We now have one more factory in operation among our other factories in Turkey and across the world. We have launched the second factory in Bulgaria by ways of the 10.5 million euros-worth investment. The Prime Minister of Bulgaria, Boyko Borisov; top government officials from Turkey and Bulgaria, our CEO Turhan Semizer, company managers and a large number of press members attended the opening ceremony which took place in Stara Zagora. Magnificent opening for our factory in Bulgaria Standard Profil continues to make investments in foreign countires at full steam. Following the opening of our new factory in Mexico in 2014, we have opened a second factory in Bulgaria in May this year. We achieved another great success by doubling our manufacturing capacity in Bulgaria. In addition to the Prime Minister of Bulgaria Boyko Borisov, the opening ceremony also hosted the Turkish Ambassador to Bulgaria Süleyman Gökçe, Sofia Principal Commercial Consultant M. Emrah Sazak, Stara Zagora Mayor Zhivko Todorov, Turkey-Bulgaria Business Council President Yalçın Egemen, our CEO Turhan Semizer, company managers and a large number of press members. PIONEER IN THE SECTOR We are breaking the ground of our sector with the Opel Astra s new model that will be manufactured in our factory in Bulgaria. We have launched the hybrid encapsulation concept in this factory. The concept has been developed thanks to wide R&D experience of the SP Group and prototype processes raised for the last year. First time in the glass run channel sealing, fixed glass is encapsulated with TPV material, but also combined with a complete set of EPDM profiles. Besides the improved quality, it also give an advantage to the OEM manufacturers by decreasing number of parts in the assembly line. PRIME MINISTER OF BULGARIA BOYKO BORISOV This factory sets an excellent example This factory, its facilities and employees form an excellent example for the Bulgarian economy. Products that will be manufactured here will be taken to Turkey and to all of Europe from there. Our government has always supported such investments. I would also like to take this opportunity to thank the mayor for enabling the required conditions during the construction of the factory. Soon enough, we will be opening the Maritsa Motorway too. Once this road is complete, we will be able to travel between Bulgaria and İstanbul much faster. We will then have the chance to enjoy a cup of coffee with our friends there. I wish you all great successes.

N E W S I N B R I E F 5 STANDARD PROFIL CEO TURHAN SEMİZER This investment will enhance our position in the global arena The first time we

Besides the fact that it is the first investment of the group abroad; Stara Zagora is now a mature production facility.

Growing each day, Standard Profil is taking us to higher places in the global automotive arena. Including this 10.

We are aiming to increase the number of employees, which is 1 thousand 50 right now, up to 1 thousand 500 by the end of 2015.

STANDARD PROFIL BULGARIA PLANT GENERAL MANAGER PETAR ANGELOV We established a modern working space We thank everyone who stood by us and

As representatives of the great global family of Standard Profil, we are honored to have built a modern working space equipped with

This is a huge success for our entire team and the fact that you are all here now is the proof of our excellence in this job.

TRADITIONAL BULGARIAN DANCE SHOWS ENLIVENED THE CEREMONY.

5 N E W S I N B R I E F 5 STANDARD PROFIL CEO TURHAN SEMİZER This investment will enhance our position in the global arena The first time we transferred our 40-year history and experience in Turkey to Bulgaria was in Besides the fact that it is the first investment of the group abroad; Stara Zagora is now a mature production facility. The capabilities are already tested and we are pleased about the productivity and ambition of our colleagues here in Bulgaria to learn. Growing each day, Standard Profil is taking us to higher places in the global automotive arena. Including this 10.5 million euro-investment we made to equip our facility, we have reached 10 thousand 300 square meters of manufacture area in total. We are aiming to increase the number of employees, which is 1 thousand 50 right now, up to 1 thousand 500 by the end of The investment we have made here is an indicator of our will to continue investing in Bulgaria in the next years as well. STANDARD PROFIL BULGARIA PLANT GENERAL MANAGER PETAR ANGELOV We established a modern working space We thank everyone who stood by us and shared our happiness at the opening of our new factory. As representatives of the great global family of Standard Profil, we are honored to have built a modern working space equipped with machinery in nine months only. This is a huge success for our entire team and the fact that you are all here now is the proof of our excellence in this job. THE OPENING CEREMONY FOR OUR FACTORY IN BULGARIA HOSTED MANY GUESTS FROM TURKEY AND BULGARIA. TRADITIONAL BULGARIAN DANCE SHOWS ENLIVENED THE CEREMONY. This important opening boosts our faith in Standard Profil, which is modern, always growing and has top quality system of values by means of social policies and career opportunities. Working occupies a big amount of our lives. This is also why we, the Standard Profil employees, feel satisfied with the works we carry out. I am happy to be a part of this great global company. I believe that our company will continue to provide its employees with healthy and clean working spaces, form excellent teams and experienced management board. PRESS OPERATOR HRISTO JELYAZKOV Happy to be a member of the Standard Profil Family

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