Kibar Group companies periodically conduct evaluation and audit activities to measure the performance of all suppliers. Suppliers are assessed and classified under sections such as “annual purchase volume,” quality, commercial, operational, and sustainability maturity at specific intervals. Based on the actions determined after supplier performance evaluations, the development of our suppliers is carefully monitored by Kibar Holding Group Procurement.

Sustainability maturity is assessed through the K-STAR Supplier Sustainability Program Maturity Assessment. Additionally, supplier performance regarding assigned actions within the program is monitored and included in the scoring.

Furthermore, based on the responses to the Sustainability Maturity Assessment Questionnaire and the total score prepared under the K-STAR Supplier Sustainability Program, “K-STAR Supplier Actions” are assigned to the supplier according to the survey results. The questionnaires consist of four main sections:

1. Base Performance
2. Environmental Performance
3. Social Performance
4. Governance Performance Each section includes questions that cover evaluation criteria related to the respective area. Actions are assigned in a traceable manner with the suppliers through a defined system. A completion time and proof document are determined for each action. Suppliers' completion of assigned actions within the specified time and in an appropriate manner is monitored through the system.

Continuous Improvement Process:

1. Managing supplier performance and supplier relationships
2. Conducting value analyses
3. Improving/optimizing necessary processes based on received feedback and conducted analyses/evaluations
4. Continuous supplier evaluations
5. Supplier sustainability maturity assessment
6. Assignment of supplier sustainability actions
7. Obtaining internal customer evaluations
8. Completing the process unless there is a different process dependent on the project

The Supplier Performance Evaluation-Monitoring System includes the following criteria:

Quality Performance (responsible: Quality, Technology/R&D, Supply Chain teams of the relevant Group Company)

• Compliance of the delivered product with requirements (incoming quality)
• Supplier-related complaints (identified in the company's process or from the company's customers)

Shipment Performance (responsible: Supply Chain team of the relevant Group Company)

• Compliance with deadlines and quantities
• Number of excessive freight occurrences (situations where the delivery method differs from the one agreed upon with the supplier)

Evaluations related to supplier selection and supplier performance evaluation-monitoring apply to the following product groups:

• Aluminum Raw Materials
• Aluminum Alloying Materials
• Aluminum Semi-Finished Products
• Packaging Materials (Wooden Crates and Pallets, Protective Films, Spools)
• Rolling Oil and Lubricants