GROUP PROCUREMENT MANAGEMENT AND STRATEGIES

The main purchasing groups in this category are as follows:

1. Secondary Aluminum Ingot
2.  Aluminum Scrap
3. Aluminum Dross

Our group company, Assan Alüminyum Sanayi ve Ticaret A.Ş., purchases secondary aluminum ingots, pressed, and palletized scrap as raw materials. Dross purchases are also made, but only from the domestic market. However, this requires separate discussions, and the alloy and yield values of the dross must be examined and evaluated.

All scrap and secondary ingot materials are procured for use in Assan's production processes, and scrap outside of the Assan Alüminyum product range is not procured. We accept scrap in pressed and palletized forms, but some thick and uncolored (unpainted/uncoated) materials that cannot be pressed can also be accepted in sacks. However, in this case, the sack must be placed on a wooden pallet and secured with straps to the pallet.

Both pressed and palletized materials and materials in sacks must be homogeneous; they must not contain multiple alloys, and clean materials should not be mixed with painted materials.
In general, the following materials are purchased. The minimum purchase quantity is one truckload, approximately 10 tons.

Clean Scrap:

1. Clean Aluminum Sheet Scrap (1xxx - 5005 alloys)
2. Clean Aluminum Foil Scrap (typically food container scrap, 1xxx-3xxx-8xxx alloys)
3. Clean Aluminum Wire Scrap (1xxx alloy, high purity Al – without Mg or Si)
4. Class 1 Scrap
5. Clean Profile Scrap (6063 – 6082 - 6061 alloys)

Painted Sheet Scrap:

1. Plate Scrap
2. Vehicle Plates
3. Billboard and Traffic Signage
4. Class 3 Scrap
5. Profile Scrap (6063 – 6082 – 6061 alloys)

Secondary Aluminum Ingots (1xxx alloy - Al content of 99% or higher, 8xxx alloy with a minimum Al content of 98%, primarily containing Fe (iron), 3xxx alloy with a minimum Al content of 98%)
All materials should be delivered to Assan Facilities in Tuzla and/or Dilovası. All loads must be prepared in a manner suitable for unloading by forklift, complying with occupational safety, and not posing any risk. The materials must be dry; wet, soaked, or snow-covered materials are not accepted.

All incoming materials are subject to physical and chemical inspections at the gate, and materials that do not meet acceptance criteria are rejected.

Alternative product and alternative supplier development activities are carried out in collaboration with Assan Alüminyum's Technology and Planning teams.

Steel

The main purchasing groups in this category are as follows:

1. Flat Coil Sheet
2. Pre-painted Galvanized Coil Sheet
3. Galvanized Coil Sheet
4. Cold Rolled Coil Sheet
5. Stainless Steel Coil Sheet

Our group companies, Assan Panel Sanayi Ticaret A.Ş., Kibar Industry, and Assan Panel STP, procure pre-painted galvanized coil sheets, galvanized coil sheets, and stainless steel coil sheets as raw materials in the flat coil sheet group.

For Assan Alüminyum Sanayi ve Ticaret A.Ş., cold rolled coil sheets are procured.

Chemicals

The main purchasing groups in this category are as follows:

1. Polyurethane
2. Rock Wool
3. Ink/Lacquer/Adhesive

Our group companies, Assan Panel A.Ş. and its subsidiaries, procure polyurethane raw materials and rock wool as raw materials.

For İspak Esnek Ambalaj Sanayi A.Ş., inks, lacquers, and adhesives are procured as raw materials under the chemicals category.

Alternative product and supplier development efforts are carried out in collaboration with the Quality, R&D, and Product Development teams of Assan Panel Sanayi ve Ticaret A.Ş. and İspak Esnek Ambalaj Sanayi A.Ş.

Paper and Plastic

The main purchasing groups in this category are as follows:

1. Paper
2. Plastic
3. Net/Laid Scrim

For our group company, İspak Esnek Ambalaj Sanayi A.Ş., paper products such as chromo board, virgin and recycled sulfite, siliconized paper, white and brown kraft paper, and parchment paper are procured as raw materials.

In the plastic product group, polyethylene in granule form is procured for the extrusion process, and BOPP, CPP, and BOPET in reel form are procured for İspak Esnek Ambalaj Sanayi A.Ş.
For Assan Panel Sanayi ve Ticaret A.Ş., polycarbonate in granule form is procured. Additionally, PVC and TPO membranes are also part of the product groups procured for Assan Panel Sanayi ve Ticaret A.Ş.

Alternative product and supplier development efforts are carried out in collaboration with the Quality, R&D, and Product Development teams of Assan Panel Sanayi ve Ticaret A.Ş. and İspak Esnek Ambalaj Sanayi A.Ş.

The main purchasing groups in this category are as follows:

1. Energy
2. Investments
3. Molds and Rolls
4. Construction Projects
5. Auxiliary Facility Equipment and Infrastructure Projects
6. Furniture and Furnishings
7. Real Estate

We work with both local and global supplier networks. Based on the needs of the group, all purchases related to new investments, expansions, renovations, modernizations, and other investment projects—including machinery, equipment, building infrastructure, electrical, natural gas, water agreements, real estate, and construction investments—are carried out by the Investment Projects Procurement Department. This aligns with Kibar Holding’s vision of "Investment for Value-Added Products."

The main purchasing groups in this category are as follows:

1. Electrical & Electronics:
   
   1. Procurement of electromarket products, automation materials, power supplies, motors, and similar products.
2. Hydraulics & Pneumatics:
   
   1. Procurement of hydraulic and pneumatic materials, filters, hoses, pumps, sealing products, gaskets, and similar products.
3. Machinery Equipment & Services:
   
   1. Procurement of construction and machined parts, blades, air shafts, bearings, couplings, pulleys, belts, reducers, and similar products.
4. OEM Materials:
   
   1. Procurement of OEM spare parts.
5. Plumbing Materials & Services:
   
   1. Procurement of plumbing market products, iron and steel products (flat bar, box profile, pipe, etc.), plastics, fans, air conditioning spare parts, pumps, and similar products.

This category focuses on the procurement of consumables that are continuously, regularly, and in high volumes consumed to ensure uninterrupted production. In coordination with the Technology and Production Units of our group companies, new technologies are researched, and the focus is placed on alternative suppliers and production methods. Usage quantities are optimized in collaboration with the Supply Chain Department.

The main purchasing groups in this category are as follows:

Paints:

This product group includes coil paints used by Assan Alüminyum for painting coil sheets and automotive paints used by Assan Hanil for painting interior and exterior plastic components of vehicles.

Industrial Gases:

This group includes liquid Argon, Nitrogen, Oxygen, and Carbon Dioxide gases, as well as various bottled gases and Pentane gas used in panel production, all essential for maintaining continuous production in our group companies. All gases used as consumables by our group companies fall under this category.

Packaging and Wrapping Materials:

This product group encompasses wooden, plastic, metal, and cardboard packaging materials used for packaging purposes in our group companies.

Lubricants and Lubrication Equipment:

This group includes oils used in the production processes of our group companies. Various types such as rolling oil, slideway oil, rope oil, grease, and mold oil are available.

Operational Auxiliary Materials:

This category covers the procurement of consumables used by our group companies. It includes product groups such as foundry consumables, water chemicals, production chemicals, and insulation materials.

Laboratory Quality Materials:

This product group includes laboratory materials and equipment. The focus is on meeting all laboratory needs during the setup period as well as ensuring the supply of necessary consumables throughout the operational period for the companies.

The main procurement groups in this category are as follows:

• Information Systems

• Communication and Electronical Equipments

It is focused on developing value added and long term business partners that may render service to the entire group and guaranteeing the sustainable efficiency.

The main purchasing groups in this category are summarized as follows:

1. Below-the-Line and Above-the-Line Materials and Services: The breakdowns are defined below, and the procurement of workwear for Kibar Group employees also falls under this group.
   
   1. Below-the-Line: Encompasses most printed materials.
   2. Above-the-Line: Includes design and creative services, general agency services.
2. Outsourcing: Covers services acquired externally, primarily including security, cleaning, and catering services for facilities.
3. Office Supplies and Equipment:
   1. Encompasses general office consumables such as food, cleaning, stationery, and essential office equipment.
4. Events and Organizations
5. Professional Services: Covers consulting needs, training requirements, surveys, certifications, and other similar needs for our companies.

The focus is on developing value-added and long-term business partnerships that can serve the entire group and ensure sustainable efficiency.

The main purchasing groups in this category are as follows:

1. International Road and Intermodal Transport
2. Sea Freight
3. Air Freight
4. Rail Freight
5. Domestic Road Transport
6. Domestic and International Warehousing and Distribution
7. Internal Road Transport to and from Ports
8. In-Port Transport
9. 4PL Services
10. Customs Clearance Services
11. Customs Brokerage Services for Bonded Warehouses
12. Air Express Cargo
13.  Domestic Cargo
14. Truck/Trailer Rental

Our governance processes are shaped by the principles of transparency, accountability, and sustainability. In this context, we implement an ethical and transparent management approach at every stage of the procurement process to achieve our strategic goals.

We are engaged in various efforts to support Kibar Holding's operational excellence and sustainable growth. Our master data management initiatives are meticulously conducted to ensure the accuracy and reliability of data, which is critical for enhancing the efficiency of our business processes. These efforts not only strengthen Kibar Holding's competitive edge but also create a robust defense mechanism against future challenges.

On the internal customer experience front, our priority is to deeply understand the needs and expectations of all our stakeholders and to deliver services accordingly. Through our project development activities, we aim to offer innovative solutions to our internal customers, maximizing their performance and satisfaction. Our culture of continuous improvement enables us to establish feedback mechanisms and consistently enhance the quality of our services.

Additionally, through our K-STAR Supplier Sustainability Program, we contribute to the development of our suppliers in the area of sustainability, supporting them in fulfilling their environmental and social responsibilities. This, in turn, improves the overall sustainability performance of our supply chain. With this program, we also contribute to Kibar Holding's sustainability goals, helping to build a stronger and more responsible supply chain.

The application of all purchases within the framework of group procurement standards and operating models is ensured through governance mechanisms. Our processes, supported by innovative approaches and digital solutions, aim for excellence in internal customer experience and supplier relations. In line with Kibar Holding's values, we continue our efforts to create a reliable and robust governance structure that meets the needs of all our stakeholders.