contents - erdemir.com.tr · contents introduction 1 about this report 2 corporate profile 6 main...

2018 SUSTAINABILITY REPORT

CONTENTS

INTRODUCTION

1 ABOUT THIS REPORT

2 CORPORATE PROFILE

6 MAIN SUSTAINABILITY INDICATORS

10 AWARDSGIVENTOERDEMİRANDİSDEMİR

11 OYAK MINING METALLURGY GROUP AND SUSTAINABILITY INDICES

12 MESSAGE FROM HEAD OF GROUP

16 SUSTAINABILITY JOURNEY OF OYAK MINING METALLURGY GROUP

18 SUSTAINABILITY VISION AND STRATEGY AT THE OYAK MINING METALLURGY GROUP

24 CORPORATE GOVERNANCE AT OYAK MINING METALLURGY GROUP

34 STAKEHOLDERS AND STAKEHOLDER RELATIONS

40 OYAK MINING METALLURGY GROUP SUSTAINABILITY PRIORITIES

ECONOMIC PERFORMANCE

46 PRODUCTION AND SERVICES

48 SUPPLY CHAIN MANAGEMENT

52 PRODUCTION SUSTAINABILITY AND PRODUCTIVITY

54 OPERATIONAL EFFICIENCY

56 DIGITALIZATION

62 R&D AND INNOVATION MANAGEMENT

ENVIRONMENTAL PERFORMANCE

68 ENVIRONMENTAL APPROACH AT OYAK MINING METALLURGY GROUP

70 ENVIRONMENTAL MANAGEMENT PROCESS AND ENVIRONMENTAL PERFORMANCE

MANAGEMENT

82 CLIMATE CHANGE AND ENERGY MANAGEMENT

86 BIODIVERSITY

SOCIAL PERFORMANCE

92 CUSTOMER RELATIONS MANAGEMENT

94 HUMAN RESOURCES

100 OCCUPATIONAL HEALTH & SAFETY (OHS)

106 CORPORATE SOCIAL RESPONSIBILITY

108 CONTACT INFORMATION

OYAK MINING METALLURGY GROUP 2018 SUSTAINABILITY REPORT 1

INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

ABOUT THIS REPORT

Scope of the ReportThisreportisthefifthsustainabilityreportpublishedbyOYAKMiningMetallurgyGroup.

Thisreport,whichaddressesthe2018financialandnon-financialperformancewithaholisticapproach,setsouttheGroup’sdevelopmentsintheeconomic,environmentalandsocialfields,aswellasitsstrategyandfutureforecastsandtargets.

Thefirstthreereportscovering2014-2016werepublishedunderthe“ErdemirGroup”title.Asof2017ErdemiranditssubsidiariesstartedoperatingundertheroofofOYAKMiningMetallurgyGroup.

Thesustainabilityperformancecriteriacoveredbythisreportapplytothe2018indicatorsoftheEreğliDemirveÇelikFabrikalarıT.A.Ş.(Erdemir)andİskenderunDemirveÇelikA.Ş.(İsdemir).

FinancialindicatorspresentedinthisreportarethedatapublishedintheindependentlyauditedconsolidatedfinancialstatementsofOYAKMiningMetallurgyGroup.

Reporting PeriodUnlessotherwiseindicated,thisreportcoverstheperiod1January-31December2018.

TheinformationpresentedinthisreportisalsointendedtoserveasabasisforcomparisoninanysustainabilityreportsthatErdemirandİsdemirmaypublishinfuture.Theprevioussustainabilityreportpublishedbythecompanieswasconcernedwith2017.

Reporting CycleInprincipal,OYAKMiningMetallurgyGrouppublishesreportsonanannualbasis.

ThisreporthasbeenpreparedsoastocomplywithBISTSustainabilityIndex,EIRISSustainabilityCriteria,DowJonesSustainabilityCriteria,GRIStandardsandsimilarinternationallyrecognizedstandards.

Thereporthasnotbeenindependentlyreviewedorauditedinanyway.

OYAK MINING METALLURGY GROUP 2018 SUSTAINABILITY REPORT2

INTRODUCTIONCORPORATE PROFILE

The OYAK Mining Metallurgy Group generates value for the Turkish economy and its stakeholders.

Representing more than half a century of industry experience and know-how, the OYAK Mining Metallurgy Group ranked 3rd in 2018 in terms crude steel production among the producers of EU member states, 8th in Europe and 45th in the world.

CompanieswithintheOYAKMiningMetallurgyGroupoperateinthefieldsof• flatandlongsteelproduction,• steelservicecenterservices,• mining,• gasproduction,• engineering&projectmanagement

ThefoundationoftheOYAKMiningMetallurgyGroup,oneofTurkey’slargestindustrialgroups,goesbacktoErdemir’sinitialproductionasthecountry’sfirstintegratedflatsteelplantin1965.

TheGroup,whichisthemainsupplierforTurkishindustry,addsvaluewithitsproductsandservicestoawiderangeofsectorsincludingtheautomotive,energy,construction,pipe,shipbuilding,householdappliances,machinery,heatinsulators,heavyindustryandpackagingsectors.

OYAK MINING METALLURGY GROUP ADDS VALUE WITH ITS PRODUCTS AND SERVICES TO A WIDE RANGE OF SECTORS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Accordingto2018data,theGroupproduced9.145milliontonsofcrudesteel,single-handedlyaccountingforapproximately25%ofTurkey’stotalproduction.

In2018,theGroupcontinuedtocaptureasignificantshareinexports,withexportsof1.6milliontonsofproductsto200differentcustomersin50countries.

Thesector’sfirstministryapprovedR&DcenterworkswithintheOYAKMiningMetallurgyGrouptorespondtocustomerexpectationswithinnovativesolutions.

TheGrouphastwoports,oneofwhichisinEreğliandtheotherinİskenderun.Botharethelargestportsintheirregions.

AsoneofthelargestemployersinTurkey,theOYAKMiningMetallurgyGroupprovidesemploymentto12,000peopleandcontributestoworkinglife.Withthetaxesitpays,theGroupcontributestopublicfinanceandthereforetotheTurkisheconomy.

OYAK Mining Metallurgy Group companies are the most valuable companies in Turkey.

AccordingtoTurkey’sTop500IndustrialEnterprisessurveyconductedbytheİstanbulChamberofCommerce(ISO)in2018,amongGroupcompaniesİsdemirwasranked7thinthesurvey,Erdemir8th,ErdemirÇelikServisMerkezi67th,whileErdemirMadenwasranked247th.

Erdemir and İsdemir shares traded on the Borsa İstanbul.

Erdemirshareshavebeentradedunderthe“EREGL”tickersymbolinthestockexchangesincetheestablishmentofBorsaIstanbulin1986.Erdemir,whichislistedintheBIST30index,hasoneofthebroadestownershipsofanypubliclytradedcompanywith47.63%ofitsshareslisted.ThemajorityofErdemir’sshares,whicharetradedontheBorsaİstanbul,areheldbyinstitutionalinvestors.

İskenderunDemirveÇelikA.Ş.(İsdemir)shareshavebeentradingonthePre-MarketTradingPlatformoftheBorsaİstanbulunderthe“ISDMR”tickersymbolsince28March2016.TheCompany’sshareswerelistedontheStarsMarketwitheffecton19April2018.

AS ONE OF THE LARGEST EMPLOYERS IN TURKEY, THE OYAK MINING METALLURGY GROUP PROVIDES EMPLOYMENT TO 12,000 PEOPLE AND CONTRIBUTES TO WORKING LIFE.

25%THE GROUP SINGLE-HANDEDLY ACCOUNTS FOR APPROXIMATELY 25% OF TURKEY’S CRUDE STEEL PRODUCTION.


ErdemirFlatsteelproduction

Erdemir Enerji ÜretimEnergyproduction

Erdemir Mühendislik (Engineering)EngineeringandprojectmanagementservicesforGroupcompanies

Erdemir RomaniaElectricalsteelproduction

Erdemir Çelik Servis Merkezi (Steel Service Center)Meetingtheindustry’sneedforsizedflatsteel

İsdemirFlatandlongsteelproduction

İsdemir Linde Gaz OrtaklığıIndustrialgasproduction

Erdemir Maden (Mining)Pellet,lumpore,fineore,hematiteandpelletcakeproduction

CORPORATE PROFILE

AS A STAKEHOLDER OF THE GLOBAL SYSTEM, OYAK MINING METALLURGY GROUP CONTRIBUTES TO MACROECONOMIC DEVELOPMENT AND RECONSTRUCTION IN ALL ASPECTS WITHIN THE FRAMEWORK OF ITS ENDURING COMMITMENT TO THE GLOBAL ECOSYSTEM AND ITS STAKEHOLDERS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Erdemir Asia Pacific Pte. Ltd. ExecutionoftheGroup’sbusinessactivitiesintheAsia-Pacificregion

1.6 MILLION TONSIN 2018, THE GROUP EXPORTED 1.6 MILLION TONS OF PRODUCTS AND CAPTURED A SIGNIFICANT SHARE.


MAIN SUSTAINABILITY INDICATORS

ECONOMIC ENVIRONMENTAL

Sales Revenue: USD 5,598,000

Net Profit: USD 1,159,965

Total Assets: USD 7,942,000

USD 7.9 MILLIONOYAK MINING METALLURGY GROUP’S TOTAL ASSETS REACHED USD 7.9 MILLION IN 2018.

USD 1.8 MILLIONIN 2018, USD 1.8 MILLION ENVIRONMENTAL INVESTMENT EXPENDITURE HAS BEEN REALIZED IN ERDEMİR AND İSDEMİR.

Environmental Investment ExpenditureErdemir: USD 888,900İsdemir: USD 920,080

Environmental Performance IndexErdemir: 91.3İsdemir: 78.1

Ratio of Recirculated Water UseErdemir: 92.5 İsdemir: 94.8

Energy SavingErdemir: USD 17,176,224 İsdemir: USD 53,746,373

Solid Waste Recovery Rate *Erdemir: 86.4İsdemir: 56.3* Types of solid wastes reused vary.

2018 R&D expenditure: USD 10,967,667


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

SOCIAL

469,600 HOURSTOTAL TRAINING GIVEN IN ERDEMİR AND İSDEMİR WAS 469,600 HOURS IN 2018.

Total Employment (people)Erdemir: 5,844İsdemir: 4,724

2018 Ratio of Female RecruitmentErdemir: 18%İsdemir: 23%

Total Trainings (hours)Erdemir: 258,372İsdemir: 211,228

Total Occupational Health & Safety (OHS) Trainings (hours)Erdemir: 141,656 İsdemir: 173,959


FOCUSING AT THE FUTUREA PRODUCT IN EVERY INNOVATIVE FORMULA ON THE ROAD TO THE FUTURE


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E


AWARDS GIVEN TO ERDEMİR AND İSDEMİR

OYAK Mining Metallurgy Group’s work has won wide acclaim and awards on the national and international stage.

The awards in different areas testify to the Group’s identity as a responsible stakeholder in the sustainable future in the world as well as in Turkey.

Efficiency Awards for Erdemir and İsdemirErdemirwonthefirstplaceawardintheEfficiencyAwardswhichhavebeenorganizedbytheMinistryofIndustryandTechnology’sGeneralDirectorateofEfficiencysince2014,intheLargeScaleBusiness/ProcessImprovementcategorywiththePowerPlantOptimizationProject.Withthisaward,Erdemirhaswonfourfirstplaceawards,twosecondplaceawardsandonethirdplaceawardinthevariouseventswhichithasparticipatedsince2001.

Havingparticipatedinvariouscompetitionswithenergysavingprojectsbetween2002-2018,İsdemirwasawardedthirdplaceintheLarge-ScaleBusiness/SustainableProductioncategorywithits“IncreasingFlatSteelProductionwiththeSlab-LengthOptimizationOPEXproject”inthesamecompetition.

İsdemir wins “Energy Award”.İsdemirhaswonsixfirst,twosecond,twothirdandtwoJurySpecialAwardstodateinthecompetitionsinwhichithasparticipated,inthe“EnergyEfficiencyinIndustryProjectCompetition”,“IncreasingEnergyEfficiencyinIndustryProjects(SEVAP-3)”category.

İsdemirwon1stprizeinthe“ProjectstoIncreaseEnergyEfficiencyintheIndustry”(SEVAP-3)categoryinthe“2017EnergyEfficiencyintheIndustryProject”(SENVER)competitionheldbytheMinistryofEnergyandNaturalResources.

In2018,İsdemirrankedthirdinEnergyEfficiencyProjectsinIndustry(SEVAP-3)CategoryattheEnergyEfficiencyProjectCompetition(SENVER-18)heldbytheGeneralDirectorateofRenewableEnergy(YEGM),withitsprojecttosaveenergybyreducingfanvaluesinthehighcarbonproductionoftheKangalRollingMill.

InApril2019,İsdemirwasawardedsecondprizeintheSEVAP-3categorywiththe“BrushTypeSealApplicationinthePowerPlantBoilerAirFrontHeaters”.

A clutch of awards for the “Let the Fields Be Ploughed and the Tradition Continue” projectInordertoprotecttheOttomanstrawberry,whichhasbecomesynonymouswiththeEreğliregionbutwhoseproductionhaddeclinedinrecentyears,andtocontributetobiodiversity,Erdemir’s“LettheFieldsBePloughedandtheTraditionContinue”projectreceivedrecognitionintheFelisAwardsorganizedbyMediacatinthecategoriesofsustainabilityandsocialresponsibilityandfinance/economy.

Theprojectalsoreceivedtwoawards,inthesustainabilitycommunicationandlocalvaluescategoriesatthePRIDACommunicationAwardsorganizedbytheAssociationofCommunicationConsultancyCompanies(IDA).


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

OYAK MINING METALLURGY GROUP AND SUSTAINABILITY INDICES

Erdemir and İsdemir shared the first two places, leading the metal industry in the Platinum Global Awards.ErdemirwasselectedastheleaderoftheironandsteelindustryinthesurveyoftheCapitalMagazine’sMostAdmiredCompaniesinTurkeyandalsotookfirstplaceinCapitalMagazine’sTop500PrivateCompaniesofTurkeysurveyinthe“MostProfitableCompanies”category.

ErdemirandİsdemirtookthefirsttwopositionsinthemetalsectorinthePlatinumGlobalAwardswherethetop100leadingcompaniesintermsofinternationaltradeinTurkeywereawarded.

Erdemir awarded in the MESS OHS (Occupational Health and Safety) competitions. Erdemirreceivedanawardinthe2ndGoldenSuggestioncompetitionorganizedbytheTurkishEmployersAssociationofMetalIndustries(MESS)andwhichevaluatedbestpracticescontributingtotheimprovementofoccupationalhealthandsafetyinworkplaces.TheFerroliimprovementteamatErdemir’sRawMaterialSamplingandPreparationLaboratorywonanawardintheGoldenSuggestioncompetition,whereOHSsuggestionssubmittedbyhourly-salariedemployeestotheirworkplacesandtheapplicationstheycontributedtotheirdevelopmentwereawarded.

Erdemirwasrewardedforitsworkentitled“ImprovingtheEliminationSystemofAlloySamples”inthecategoryofworkplacesemployingmorethan500peopleintheGoldenGlovesandGoldenSuggestionsOccupationalHealthandSafetyCompetitionheldbyMESSon19December2018.

Erdemir maintained its position in the Sustainability Index.Thisyear,ErdemirwasonceagainincludedintheBISTSustainabilityIndex,whichincludescompaniestradedontheBorsaİstanbul(BIST)withahighcorporatesustainabilityperformance.

AsaresultofOYAKMiningMetallurgyGroup’ssuccessfulperformanceinsustainabilitymanagement,ErdemirwasagainoneofthefewcompaniestobeincludedinBorsaİstanbulSustainabilityIndexin2018,asitwasin2017,anditmaintaineditspositionintheIndexcoveringtheperiodfromNovember2017-October2018.

İsdemirwillalsobeevaluatedinBISTSustainabilityIndexin2019basedonits2018figures.

TheBISTSustainabilityIndexensuresthatcompanies’approachtosustainability,theiroperationsandtheirdecisionsareassessedfromanindependentviewpoint.

THE AWARDS IN DIFFERENT AREAS TESTIFY TO THE GROUP’S IDENTITY AS A RESPONSIBLE STAKEHOLDER IN THE SUSTAINABLE FUTURE IN THE WORLD AS WELL AS IN TURKEY.


MESSAGE FROM HEAD OF GROUP

Dear Stakeholders,

Today’s changes bring the key to unlock the future.Today’sconditionsforlivingandwell-beingareshapedbynumerousvariablessuchasclimatechange,globalwarming,inequalityinlivingstandardsandthedepletionofnaturalresourcesaswellaseconomicdynamics.

Eachofthesevariablesaffectsus,ourfamilies,ourbusinesses,ourhabitatandourlevelofprosperityindifferentdimensions.Atthispoint,oneveryimportantandinescapablepointarises.Thistransformation,whichhasbeenexperiencedandhasreachedadizzyingpaceinrecenttimes,isdestinedtoinfluenceourplanetandhumanitymuchmoreinthefuturethanitdoesnow.Ontheotherhand,asaresultofhumanactivityandincreasedconsumption,thewastegeneratedbytherateatwhichwearedepletingnaturalresourceswilldecisivelyaffectthelivingconditionsoffuturegenerations.

Anotherissuethatwillshapeourfutureisclimatechangeandglobalwarming.Thisunnaturalsituation,whichhasbeenscientificallyproventohavebeentriggeredbyhumanactivity,willleaveourplanetfacingmuchmoredifficultconditionsineveryaspectinthefuturewhencomparedtotoday.

Themostimportantresponsibilityforcorporateplayersistorespondtotherisksthatthreatenthesustainabilityofourplanetandhumanitybytakingjointandrapidactionsandtotaketherightapproachinevaluatingnewopportunitiesforallhumanity.

Thisprocess,whichhasundergonesucharapidchange,iscrucialforthefutureofthebusinessworld.Despitethesignificantrisks,thischangewillalsobringaboutnewareasofgrowthanddevelopment,andprovideanenvironmentwhichwillenabletheformationofinnovativebusinessmodels.

THE MOST IMPORTANT RESPONSIBILITY FOR CORPORATE PLAYERS IS TO RESPOND TO THE RISKS THAT THREATEN THE SUSTAINABILITY OF OUR PLANET AND HUMANITY BY TAKING JOINT AND RAPID ACTIONS AND TO TAKE THE RIGHT APPROACH IN EVALUATING NEW OPPORTUNITIES FOR ALL HUMANITY.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Fromthebusinessworldperspective,thekeytofindingasolutionis“tocometogetheraroundcooperationandcommongoals”.Theword“competere”,derivedfromtheLatinwords“Con”and“Petere”,means“cooperationforacommonobjective”,althoughitisactuallyappliedinthesenseofcompetitiontoday.Webelievethatsustainabilitywillreachthestatusitdeservesinthebusinessworldwiththeconvergenceofcompetitionwithcooperation,andwiththesupportofthewin-winconceptthatisrecognizedintoday’sbusinessworld.

Mining sector, where our Group is a global player, has a leading role in circular economy. ThetaskoftheOYAKMiningMetallurgyGroupistointroduceconsumerstofullygreensteelproductsthatcanberecycledinperpetuity.Indoingso,ourbasicresponsibilityistounderstandthechangewithpositiveandnegativeaspects,tomanagetheeconomic,environmentalandsocialriskseffectivelyandtointernalizebusinessopportunitieswithaproactiveapproach. We believe the steel industry has an important role to play in tackling climate change.OurGroupadoptsacirculareconomyapproachtomakeadifferenceintheeffortstotackleclimatechange,whileaimingtoensureenergyandmaterialefficiencyfromend-to-end,andtoreduceenvironmentalfootprintbycontinuouslydevelopingfacilitieswithnewtechnologies.

Withinthescopeofitsstrategicobjectives,OYAKMiningMetallurgyGroupfocusesonthelowesttotalcostofownership,prioritizingefficiency-enhancingandinnovativesolutionsinallofitsprojectsasitpreparesforthefuturewhileinvestinginthelatesttechnologiesinlinewiththeneedsofitscompanies.

Forus,thebasicandindispensableresponsibilityistobestrong,durableandcompetentinthemarketinthemediumandlongtermaswellasintheshortterm.Aslongaswecangeneratevalueforourstakeholdersinthemediumandlongterm,OYAKMiningMetallurgyGroupwillsucceedinrealizingitssustainabilitymission.

The IEM - maximizing human, environment and financial valueTheİsdemirExcellenceModel(IEM)developedbyOYAKMiningMetallurgyGroup,whichaimstoincreasetheefficiencyandeffectivenessofallresourcesusedinproduction,primarilyhumanresources,wasimplementedatİsdemirin2017.Themodel,whichprovidedvaluablegainsforsustainabilitywithinashortspaceoftime,wasrolledoutintheGroupin2018.

Havingoneofthelargestemploymentcapacitiesofourcountrywith12,000employees,theGroupaimstousehumanintelligence-orinotherwords,“naturalintelligence”,inthemostefficientway.

TheIEMisanoriginalmodel,andtheteamsthatwehaveestablishedpersonallyevaluatetheemployeeswhocontributetosustainabilityandtheprojectsthattheyhavedeveloped.Sustainabilitycriteriaaretakenintoconsiderationinthestudies,andprojectsarethenintegratedintothegroupinviewofthecompatibilityofprojectswiththeIEM.

TheIEM,whichcanbesummarizedwiththemottoof“maximizinghuman,environmentandfinancialvalue”,aimstocreateacorporateculturewhichalwaysseeksthebestandwhichstandsonestepaheadofthecompetitionbyusingtheintellectualknowledgeaccumulatedoverthelonghistoryoftheOYAKMiningMetallurgyGroup.

Weareconductingstudiestospreadthemodeltocovertheentireproductvaluechain.Asoftheendof2018,atotalof508ofthe774projectswithinthescopeoftheIEM-consistingof9functiongroups-hadbeencompleted.InourGroup,weforeseeareductioninresourceutilizationequivalentofUSD92millionfromcompletedprojects.Atotalof166projectswerelaunchedattheEreğliPlantwithinthescopeoftheIEM,whichwascommissionedon15August2018.Consideringallattendance,grossparticipationatErdemirreached1,000people,netparticipationreaching500people,whilegrossparticipationatİsdemirreached1,978peopleandnetparticipationreached1,191people.


Project management increasingly supporting the internalization of sustainability with “TIM structuring”By“TIMstructuring”whichwehaveimplementedthroughouttheOYAKMiningMetallurgyGroup,webringtogetherthecompetenciesofourteamsinlinewithourneedswithinthescopeofProjectManagement.

Focusingonusingcorporateknowledgeandcompetenciestoreachthehighestpossibleproductivity,thisapproachsupportsthecompletionofprojectswhichwecarryoutindifferentlocations.

Duty-basedmanagementalsosupportsourabilitytoincreasinglyinternalizesustainabilityinallaspects.Throughsuchaction,weimproveourecologicalfootprintandachievesignificantgains,whileprovidinggreateroptimizationinarangeofdifferentareas,fromtheuseofnaturalresourcestothemanagementofwaste.

Natural intelligence will be the most valuable source of capital in the new economic system.Ourprimarydutyandresponsibilityonthehumanresourceaxisistoprotectthehealthofallemployeesinourworkplaces,toensurethattheyarenotexposedtoanyaccidentsandtodevelopandmaintainadecentworkingenvironment.Theotherissuewhichweprioritizeandattachgreatimportancetointermsofourhumanresourcesistoincreasethecompetenciesofouremployeesthroughsystematicworkandtodeployournaturalcapitalinthemostefficientwaypossible.

Sustainability investments make us stronger.TheOYAKMiningMetallurgyGrouptookalargenumberofsustainabilityinvestmentdecisionsattheErdemirandİsdemirpremisesin2018.OurGroupdetermineditsinvestmentdecisionsbyfocusingonupdatingtechnologiesinfacilitiesandmaximizingproductionefficiency.

OneoftheseinvestmentsistheErdemirNew2ndBlastFurnaceproject,whichwillinvolveacomprehensiveupdatingofthetechnology.Theprojectwillensurethecontinuityofliquidcrude

ironproductionandcontributetoallaspectsofsustainability.AnotherinvestmentplannedbyErdemiristheestablishmentoftheNewSinterPlant.ThisprojectwillincreaseaccesstolocalrawmaterialresourcesandprovidesavingsinfuelusageaswellasareductioninSOxemissions.The4thCokeBatteryProject,whichwilllowernaturalgasconsumptionatErdemir,willrealizecokeproductionwithloweremissionsandhigherenergyefficiencythankstoitsnewtechnologies.The6thSteamBoilerProject,whichwillbecommissionedinthesameplant,willcontributetosteamproductionbyutilizingby-productgasesandwasteheat.

Workcontinuesonsimilarinvestmentsatourİsdemirfacilities.Theİsdemir3rdCokeBatterymodernizationprojectwillcontributetothesaferproductionofcokewithloweremissionsandhigherenergyefficiency.TheNewSinterPlant,amongtheotherprojectsplannedatİsdemir,willprovidesavingsinrawmaterialcostsandreduceSOxemissions.OurNew1st BlastFurnaceprojectwillsupportourGroup’stotalperformanceinallaspects.

Innovation is one of our key priorities.WithitsR&Dandproductdevelopmentcompetencies,theOYAKMiningMetallurgyGroupundersignedanumberofinnovationsin2018andimproveditssustainabilityperformance.

Oneoftheimportantachievementsonthisaxiswasourentryintothewindpowermarket.SteelplatestobeusedinwindfarmprojectswithintheOYAKMiningMetallurgyGroupstartedtobeproduced.Inthisprocess,wehavebecomeacertifiedsupplierforanumberofinternationalcompanies.

MESSAGE FROM HEAD OF GROUP

THE OYAK MINING METALLURGY GROUP DETERMINED ITS INVESTMENT DECISIONS BY FOCUSING ON UPDATING TECHNOLOGIES IN FACILITIES AND MAXIMIZING PRODUCTION EFFICIENCY.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

SalestoTANAP,BRUA,TurkStream,EurostreamandnumerousBOTAŞprojectshaveplayedanimportantroleinraisingourshareindomesticandforeignoil/naturalgaspipelineprojects.TheGroupmanagedtotripleitssalesofX60andhighergrades,whichhadbeenimportedfromabroad. The “Let the Fields Be Ploughed and the Tradition Continue” Project Biodiversityisamatterofpriority.Inlinewiththis,ourGrouprealizedthe“LettheFieldsBePloughedandtheTraditionContinue”projectin2016withtheaimofincreasingproductionoftheOttomanStrawberrywhichhasbecomesynonymouswiththeEreğliregion,promotingthecultivationandcontributingtobiodiversityandspeciesconservationintheregion.

Attheendofalongandhighlychallengingprocess,thefirstfruitharvestwascompletedin2018.Farmerswhoshowedaninterestincultivatingthestrawberryreceivedtraininginfarmingofthestrawberries.Atotalof10,000seedlings,duplicatedandprotectedinthecoldroom,weredistributedto20volunteergrowers.Wewillcontinuetosupportanddevelopthisproject,whichrepresentsaclearandsuccessfulexampleofourcooperationwithlocalpeople.

Anotherprojectwearefocusingonconcernstheplantingoftrees.Accordingtoscientificresearch,onceTurkey’stotalnumberoftreesreaches20treesperperson,ourcountrywillbecarbonneutral.

WeareembodyingourcontributiontothisnationalgoalthroughthetreeplantingactivitiescarriedoutontheErdemirandİsdemirpremisesinordertoreduceourGroup’scarbonfootprint.OurcorporateobjectiveistoincreasethenumberoftreesperemployeeintheOYAKMiningMetallurgyGroupto20,systematicallyexpandingourtreepresence,andthencompletingthecarboncertificationwork.

A strategy that is realistic, competitive and focused on the futureTheOYAKMiningMetallurgyGroupisastakeholderintheglobalsystem.OurGroup’sstrategyistocontributetomacroeconomicdevelopmentandreconstructioninallaspectswithintheframeworkofitsenduringcommitmenttotheglobalecosystemanditsstakeholders,andtosupportglobaltargetsthatofferalegacyofamorelivableplanetforfuturegenerations.

Evaluatingoursuppliers,customersandemployeesasawhole,thewideareaofourGroup’simpactbecomesevident.Wearecommittedtodevelopingouractivitiesinamultidimensionalwayandtousetheleverageofferedbyourscaletoexpandoursustainabilitydomain.

Webelievewewillmeetnewandhighertargetstogetherwithouremployeesandourstakeholderswhohaveinternalizedsustainabilityasaphilosophyoflifeinthisprocesswherewewillfocusmoreoncooperationthaneverbefore.

Onbehalfofmyselfandtheseniormanagement,Iwouldliketothankmycolleaguesandallofourstakeholdersfortheirdedication.

Kindestregards,

Toker ÖzcanHeadofOYAKMiningMetallurgyGroup-DeputyChairmanoftheBoardofDirectorsandExecutiveDirector

WE ARE COMMITTED TO DEVELOPING OUR ACTIVITIES IN A MULTIDIMENSIONAL WAY AND TO USE THE LEVERAGE OFFERED BY OUR SCALE TO EXPAND OUR SUSTAINABILITY DOMAIN.


SUSTAINABILITY JOURNEY OF OYAK MINING METALLURGY GROUP

2011• TheTSEN16001EMSDocumentisreceived.

2012• TheR&DCenterisestablished.

• RIO+20SustainableDevelopmentinTurkeyandtheBestApplicationinthefieldofGreenEconomy.

• StatisticalDataAnalysestrainingsareinitiated.

2013• TheISO50001EMSdocumentisawarded.

• ThreeyearextensionoftheISOTS16949documentisapproved.

2014• TheSustainabilityDirectorateisestablished.

• TheErdemirBiodiversityPolicyisshaped.

• 3rdPrizeinEfficiencyProjectAwardsisreceived.

• 3rdprizeinİstanbulChamberofIndustry14thEnvironmentandEnergyAwardsisreceived.

• OperationalExcellence(OPEX)Projectsareinitiated.

2011


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

2015• TheContinuousWastewaterMonitoringSystemsareestablished.

• TheGreenhouseGasMonitoringPlanissubmittedtotheMinistry.

• TheSupplierEnvironmentImpactassessmentsareinitiated.

• TheEnvironmentalPermitDocumentisrenewed.

• EmployeesstarttoreceiveEthicalRulestraining.

• İsdemirwins1stprizeinThePrimaryMetalIndustryReductionofEnergyIntensity.

• Erdemirwins2nd prizein2ndEfficiencyProjectAwards.

• ErdemirwinstheGreenEraAward.

• LifeCycleAssessmentstudiesarestarted.

2016• Waterfootprintstudiesareinitiated.

• TheISO/IEC27001ISMSdocumentisawarded.

• İsdemirwins1st prizein16thEnergyEfficiencyintheIndustryProjectCompetition.

• TotalProductiveMaintenance(TPM)Projectisinitiated.

2017• GreenhouseGasVerificationworkgetsunderway.

• SupplierRiskAnalysisAssessmentactivitiesarestarted.

• ProductSustainabilitystudiesareinitiated.

• OrganizationalSustainabilityworkgroupsareestablished.

2018• TheLifeCycleAnalysiswasconducted.

• Carboncapturetechnologieswereexamined.

• Studiesonimprovingthequalityofprocessgaseswereinitiated.

• Carboncertificationstudiesgotunderwaywiththetreeplantingproject.

• Investmentdecisionsweretakenonproductionsustainability.

• TheExcellenceModelwascreated.

• Processsustainabilitydigitalizationprojectswereimplemented.

2018


SUSTAINABILITY VISION AND STRATEGY AT THE OYAK MINING METALLURGY GROUP

In line with its sustainability vision, the OYAK Mining Metallurgy Group always aims to be a part of the solution.

In order to achieve this goal, the Group transforms sustainability into a way of doing business with the philosophy of “new thinking, innovative thinking” in the product value chain.

Thesteelindustryplaysacriticalroleintechnologicaldevelopmentandthesectorsthatenableandempowerthegreeneconomy.

Asthemostimportantengineeringandbuildingmaterialinthemodernworld,steelisusedasaninputineveryfieldoflife,including• buildingsusingrenewableenergy,• lowcarbontransportation,

• fuel-efficient,cleanenergyvehicles,• infrastructureforrecyclingfacilities,andisexpectedtocontinuetoplayanimportantroleinensuringsustainabledevelopmentinthenextcentury.

TheOYAKMiningMetallurgyGroupcompanies,Erdemirandİsdemir,fulfilltheirresponsibilitiesasTurkey’sleadingsteelproducersinlinewiththeprinciplesofsustainabledevelopmentwiththecontinuousdevelopmentofproductiontechnologies,energyandresourceefficiency,theeffortstominimizetheirenvironmentalimpact,theinnovativesolutionsneeded

OYAK MINING METALLURGY GROUP COMPANIES, ERDEMİR AND İSDEMİR, FULFILL THEIR RESPONSIBILITIES AS TURKEY’S LEADING STEEL PRODUCERS IN LINE WITH THE PRINCIPLES OF SUSTAINABLE DEVELOPMENT.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

bysteelconsumingsectors,recyclingandreproduction,theemploymenttheyprovidedirectlyandindirectly,andthecontributiontheyprovidetothewell-beingoftheiremployeesandsociety.

The OYAK Mining Metallurgy Group structures its sustainability philosophy on economic, environmental and social pillars, adopting a strategy in line with the UN 2030 Sustainability Development Goals (SDGs).TheOYAKMiningMetallurgyGroupisawareoftheneeds,bothfortodayandforthefuture.Actingasasensitive,respectfulandresponsiblecorporatecitizen,theGroupaimstocontributetothecontinuityoftheconditionsinwhichpeopleandnatureexistinharmony.

TheGroupconsidersthebenefitofitsstakeholdersataneconomic,environmentalandsociallevelwhileimprovingitsperformanceasitcreatesatransparent,openandaccountablestructure.Inthiscontext,theGroupanticipatesthechallengesoftherapidtransformationtakingplaceintheworldandisworkingondifferentscenariosthatwillcaptureeveryopportunitywhiledeterminingitsstrategies.

OYAK Mining Metallurgy Group Sustainability StrategyOurmainfocusesare;• OrganizationalHealthandSafety• ClimateChangeandEnergy• HumanResources

TheOYAKMiningMetallurgyGroupSustainabilityStrategyisbasedoncombatingclimatechangeandglobalwarming,usingscarceresourcesinanoptimalwayandavoidingwaste,andaddingmorevaluetothehumanandsocialenvironmentwithtechnologyandinnovation.ThestrategyaccordinglybothdirectsandshedsalightonallactivitiesoftheGroup.

Withinthescopeofitssustainabilityjourney,whichbeginswiththestepsofcompliancewithlegalregulationsalongwithenergy,waterandcarbonmanagement,theGroupadoptstechnologicalinnovationasthemainprincipleofsustainability,withtheaimofachievingastrongfinancialperformanceandefficiencyinthelongterm.

Erdemirandİsdemiradoptthesustainabilityapproachandmonitorshowcloselyitsemployeesmeettheirresponsibilitywithannualperformancereviewsandcorporatescorecards.

TheGroup’ssustainabilitystrategyrevolvesaroundsensitivitytotheenvironmentandtheplanetweliveon.Itbringsitsstrategytotheindividualthroughthevariousprojectsitcreates,enableseveryonetointernalizethephilosophybyintegratingitintosustainabilityprojects,andstrivestocollaboratewithexternalstakeholderstopromoteunderstandingoftheimportanceofsustainability,bothwithinandoutsidetheGroup.

WITHIN THE SCOPE OF ITS SUSTAINABILITY JOURNEY, THE GROUP ADOPTS TECHNOLOGICAL INNOVATION AS THE MAIN PRINCIPLE OF SUSTAINABILITY, WITH THE AIM OF ACHIEVING A STRONG FINANCIAL PERFORMANCE AND EFFICIENCY IN THE LONG TERM.

UN 2030OYAK MINING METALLURGY GROUP STRUCTURES ITS SUSTAINABILITY PHILOSOPHY ADOPTING A STRATEGY IN LINE WITH THE UN 2030 SUSTAINABILITY DEVELOPMENT GOALS (SDGS).



TheOYAKMiningMetallurgyGroupaimsto;• Integratesustainabilityintoallbusinessprocesses,includingthesupplychain,salesandaftersalesservices,

• Reducetheenvironmentalfootprintwhileproducingvalue-addedproducts,

• EnsuresustainableproductionconditionsattheGrouplevel,whichmonitorenergyandrawmaterialefficiencyandprioritizeoccupationalhealthandsafety,

• Supportcontinuousdevelopmentwithintheframeworkoffeedbackbycreatingsocialvalueforallstakeholders.

The İsdemir Excellence Model (IEM)

ThegoaloftheOYAKMiningMetallurgyGroupistobeapioneerofcontinuousdevelopmentintheTurkishindustryandtoleaveamorelivableworldforfuturegenerationsbyensuringthecontinuityofitsstrongfinancialstructure,usingenergyandrawmaterialsefficientlyinproductionandcreatingvalueforallitsstakeholders.

SustainabilityworkcarriedoutbytheGroupinlinewiththephilosophyof“newthinking,innovativethinking”includesproductvaluechainandbusinessprocessesonanend-to-endbasis.Toensuretheinclusionofallstakeholdersinthesestudies,theGroupdevelopsprojectsandensuresthatthephilosophyofsustainabilityisadoptedwidelybyassigningtaskstoitsemployeesintheprojects.Ontheotherhand,theGroupspreadsitssustainabilityawarenesstootherstakeholdersthroughactivitiesorganizedoutsidetheorganization.

2Individualization

Byconveyingtheconceptofcorporatesustainabilitytotheindividual,weensurethecontributionofeach

employeeonaprojectbasisandensuresustainabilityinhumanresources.

3Internalization

Wemaketheconceptofsustainabilityourwayof

doingbusiness.

4Establishing business

partnershipsWecreatevalueforsocialinnovationbyintroducing

projectstoexternalstakeholders.

Targets of the OYAK Mining Metallurgy Group

1Being responsive

Aspartoftheeffortstotackleclimatechange,weaimtoadoptacyclical

economyapproachtopromoteenergyandmaterialefficiency

andtocontributetosustainabledevelopment.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

WithintheframeworkoftheİsdemirExcellenceModeldevelopedbytheGroupatitsplants,theGroupensuressustainabilityinallringsofthevaluechainandcarriesoutitsactivitiesproactivelybykeepingitsinternalandexternalstakeholdersinitsdomainbyensuringtheparticipationofallemployeesinworkinggroupssuchas:• TotalSafeProduction,• TotalProductiveProduction,• EffectiveCostManagement,• HumanResources,• EfficientEnergyManagement,• EfficientProcurementManagement,• Investments,• Stakeholders,• InnovativeApproaches

Thesustainabilityprojectscarriedoutbythesub-workinggroupsconsistingof“SustainabilityAgents”behindeachofthegroupsstructuredundertheExcellenceModelarepresentedtotheSteeringCommitteeonceamonthbytheDirectorofSustainability.

Sustainable Development Goals and OYAK Mining Metallurgy Group

Projects compatible with the OYAK Mining Metallurgy Group’s sustainability philosophy contribute to ten of the United Nations Sustainable Development Goals (SDGs).

TheOYAKMiningMetallurgyGroupsetoutitssustainabilitystrategymapwhilepursuingtheUnitedNations’agreementon“theTransformationofOurWorld:2030SustainableDevelopmentAgenda”intheframeworkofthe17SustainableDevelopmentGoals(SDGs),consistingof169sub-headings.

TheOYAKMiningMetallurgyGroupbelievesintheimportanceofalloftheSDGswithrespecttotheenvironment,humanlifeandthehealthyprogressofthesociety;indeed,withthesustainabilityprojectscarriedoutwithintheGroup,itprovidesefficientbenefitstotargets4,5,6,8,9,11,12,13,15and17,andtheirsub-targets.

TherelatedstrategiesandprojectsaredeterminedbytheOYAKMiningMetallurgyGroupSustainabilityDirectorateunderthesponsorshipoftheGroupChairman.

TheseprojectsaredesignedtosupporttheprocessesintheGroup’svaluechainaswellastoimprovetheseprocesses.

ThemainsustainabilityprioritiesoftheGroupareeconomicperformance,innovationmanagement,environmentalperformanceandsocialperformance.

Group Leader

Steering Committee

Director of Sustainability


The main sustainability priorities of the Group are economic performance, innovation management, environmental performance and social performance.

Being responsive

Withintheeffortstotackleclimatechange,weaimtoadoptthecyclicaleconomyapproachtoensureenergyandmaterialefficiencyandtocontributetosustainabledevelopment.

Individualization

Bybringingtheconceptofcorporatesustainabilitytotheindividual,weensurethecontributionofeachemployeeonaprojectbasisandensuresustainabilityinhumanresources.

Internalization

Wemaketheconceptofsustainabilityourwayofdoingbusiness.

Establishing business partnerships

Wecreatevalueforsocialinnovationbyintroducingprojectstoexternalstakeholders.

ClimateChange-LCA(13.2) ErdemirAcademy(4.4)

SaleAcademy

PurchaseAcademy

Iron-SteelAcademy

SupplyChain

Management(8.3)

Digitalization(HTPS,GRC,

Supplierevaluationproject)(8.2,17.7)

SupportfortheSpaceTeamGrizu-236forCansatCompetition

ContributiontotheNewHorizonsScienceWorkshop

İsdemir’scontributionstostateschools(readingroom,establishmentofcodingclasstocontributetotechnologicalinfrastructure)

SupportforvariousprojectssuchastheİskenderunTechnicalUniversity’selectriccarproject

SupportforthedevelopmentoftheopportunitiesofsculptureworkshopsatAkdenizUniversityandMimarSinanFineArtsUniversity

Supplyingsteelforacademicstudiesathighereducationinstitutionsand,inparticular,metallurgymaterialsforengineeringdepartments

Erdemir-Supporttonon-governmentalorganizationsworkingforthebenefitofsociety,especiallytheAssociationofPhysicalDisabilitiesinKaradenizEreğli

SupportforfurnishingsintheEreğlibranchbuildingsoftheTurkishWarInvalids,Veterans,Martyrs’WidowsandOrphansAssociation,theMiningMartyrsAssociationandtheFoundationforChildrenwithLeukemia.

Meetingthecleaningandelectricalneedsofschoolsintheİsdemirregion

Stationeryandmaterialsupportforvariousorganizations,andmeetinglunchexpensesofstudentsinfinancialneed

EnvironmentalManagementProcessandPerformanceIndices(12.4,6.b)

Womeninproduction R&D(9.b)

ProductionManagement(9.b)

Holisticperspective(IEM)

Productqualityimprovementworks(API)(9.2)

CustomerSatisfactionandProductPerceptionSurvey(8.2)

Relationswithlocalstakeholders(8.3)

Biodiversity(15.a)

LettheFieldsBePloughedandtheTraditionContinue

OHS Productionefficiency(studiestoreduceuseofalloys,İsdemirslaboptimization,attenuationstudieswithmanufacturingindustry)(12.2)

ProjectscarriedoutwithstakeholderswithinthescopeoftheIEM(11.a)

Windpowerprojects(9.4.)

Newgalvanizinglineinvestment(9.2)

Erdemirnewsinterfactoryproject(9.4)

Erdemirmodernizationof4thcokebatteryandsecondaryproductfacilities9.4)

İsdemirmodernizationof3rdcokebattery(9.4)

İsdemirnewsinterfactoryproject(9.4)

Erdemir2ndblastfurnace(9.4)

DigitalHR(17.7)

ErdemirRomaniaPhoenix(17.6)

İsdemir1st blastfurnace(8.2)



INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

The main sustainability priorities of the Group are economic performance, innovation management, environmental performance and social performance.

Being responsive

Withintheeffortstotackleclimatechange,weaimtoadoptthecyclicaleconomyapproachtoensureenergyandmaterialefficiencyandtocontributetosustainabledevelopment.

Individualization

Bybringingtheconceptofcorporatesustainabilitytotheindividual,weensurethecontributionofeachemployeeonaprojectbasisandensuresustainabilityinhumanresources.

Internalization

Wemaketheconceptofsustainabilityourwayofdoingbusiness.

Establishing business partnerships

Wecreatevalueforsocialinnovationbyintroducingprojectstoexternalstakeholders.

ClimateChange-LCA(13.2) ErdemirAcademy(4.4)

SaleAcademy

PurchaseAcademy

Iron-SteelAcademy

SupplyChain

Management(8.3)

Digitalization(HTPS,GRC,

Supplierevaluationproject)(8.2,17.7)

SupportfortheSpaceTeamGrizu-236forCansatCompetition

ContributiontotheNewHorizonsScienceWorkshop

İsdemir’scontributionstostateschools(readingroom,establishmentofcodingclasstocontributetotechnologicalinfrastructure)

SupportforvariousprojectssuchastheİskenderunTechnicalUniversity’selectriccarproject

SupportforthedevelopmentoftheopportunitiesofsculptureworkshopsatAkdenizUniversityandMimarSinanFineArtsUniversity

Supplyingsteelforacademicstudiesathighereducationinstitutionsand,inparticular,metallurgymaterialsforengineeringdepartments

Erdemir-Supporttonon-governmentalorganizationsworkingforthebenefitofsociety,especiallytheAssociationofPhysicalDisabilitiesinKaradenizEreğli

SupportforfurnishingsintheEreğlibranchbuildingsoftheTurkishWarInvalids,Veterans,Martyrs’WidowsandOrphansAssociation,theMiningMartyrsAssociationandtheFoundationforChildrenwithLeukemia.

Meetingthecleaningandelectricalneedsofschoolsintheİsdemirregion

Stationeryandmaterialsupportforvariousorganizations,andmeetinglunchexpensesofstudentsinfinancialneed

EnvironmentalManagementProcessandPerformanceIndices(12.4,6.b)

Womeninproduction R&D(9.b)

ProductionManagement(9.b)

Holisticperspective(IEM)

Productqualityimprovementworks(API)(9.2)

CustomerSatisfactionandProductPerceptionSurvey(8.2)

Relationswithlocalstakeholders(8.3)

Biodiversity(15.a)

LettheFieldsBePloughedandtheTraditionContinue

OHS Productionefficiency(studiestoreduceuseofalloys,İsdemirslaboptimization,attenuationstudieswithmanufacturingindustry)(12.2)

ProjectscarriedoutwithstakeholderswithinthescopeoftheIEM(11.a)

Windpowerprojects(9.4.)

Newgalvanizinglineinvestment(9.2)

Erdemirnewsinterfactoryproject(9.4)

Erdemirmodernizationof4thcokebatteryandsecondaryproductfacilities9.4)

İsdemirmodernizationof3rdcokebattery(9.4)

İsdemirnewsinterfactoryproject(9.4)

Erdemir2ndblastfurnace(9.4)

DigitalHR(17.7)

ErdemirRomaniaPhoenix(17.6)

İsdemir1st blastfurnace(8.2)


CORPORATE GOVERNANCE AT OYAK MINING METALLURGY GROUP

CORPORATE GOVERNANCE

OYAKMiningMetallurgyGroupconductsitsrelationshipswithitsstakeholdersonthebasisofaccountableandresponsiblemanagementprinciplesthataretransparent,ethical,andcompliantwithlawsandregulations.TheGroupregardstheseprinciplesaselementsofcorporategovernancethatareessentialtoitsabilitytofulfillitsresponsibilitiestowardsstakeholdersandbemindfuloftheirrights,tomakeeffectiveuseofresources,andtoensurethesustainabilityofitsproductiveoperationandoftheaddedvaluethatitcreatesforstakeholders.

Erdemirandİsdemirlikewiseformulateandconstantlyimprovetheircorporategovernancemodelsandpracticesinlinewiththisbasicframework.

TheGroup’sCorporateGovernanceComplianceReportandInformationFormwerepubliclydisclosedinits2018annualreportandonitscorporatewebsiteaswellasatthePublicDisclosurePlatform(KAP).https://www.oyakmadenmetalurji.com.tr/Sites/1/upload/files/2018-Corporate_Governance_Compliance_Report_and_Information_Form-2455.pdf

OYAK MINING METALLURGY GROUP’S MANAGEMENT PRINCIPLES ARE TRANSPARENT, ETHICAL, AND COMPLIANT WITH LAWS AND REGULATIONS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Structure and Formation of Board of Directors WithinthescopeofErdemir’sArticlesofAssociation,BoardofDirectorsconsistsofminimum5andmaximum9memberstobeselectedbytheGeneralAssemblyofShareholdersundertheprovisionsofTurkishCommercialCodeandCapitalMarketsBoardLaw.

ExcepttheIndependentBoardMembers,BoardofDirectorsconsistsoflegalpersonsandin2018theCompanyhadtwowomenmemberswhoaretheproxyofalegalperson.

Fordetailedinformationonthestructureandformationofboardofdirectors,pleaseseepage84-85ofOYAKMiningMetallurgyGroup’s2018AnnualReport.https://www.oyakmadenmetalurji.com.tr/Sites/1/upload/files/ERDEMIR_18-TR_FINAL-180319-2469.pdf

Number, Structure and Independence of the Committees Established Under the Board of Directors AtErdemiranAuditCommittee,anEarlyDetectionofRiskCommitteeandaCorporateGovernanceCommitteeweresetupsothattheBoardofDirectorsisabletoperformtheirtasksandresponsibilitiesmoreeffectively.Committees’meetingschedulesandtheiractivities,andoperationalproceduresarespecifiedinsetsofregulationsthatarepublishedonthecorporatewebsites.ThedecisionsthatsuchcommitteestakeareofanadvisorynatureandtheyaresubmittedassuchtotheBoardofDirectors,whichhasthefinalsay.

OnememberisassignedformorethanonecommitteeduetotheconditionthatrequirestheAuditingCommitteetobemadeupofcompletelyindependentboardmembersandthechairmenoftheothercommitteestobecomprisedoftheindependentboardmembers.

FordetailedinformationonthecommitteesestablishedundertheBoardofDirectors,pleaseseepage98-99ofOYAKMiningMetallurgyGroup’s2018AnnualReport.https://www.oyakmadenmetalurji.com.tr/Sites/1/upload/files/ERDEMIR_18-TR_FINAL-180319-2469.pdf

Fordetailedinformationonthecorporategovernancepractices,pleaseseepage87-97ofOYAKMiningMetallurgyGroup’s2018AnnualReport.https://www.oyakmadenmetalurji.com.tr/Sites/1/upload/files/ERDEMIR_18-TR_FINAL-180319-2469.pdf

Frequency of Meetings of the Audit Committee:

Frequency of Meetings of the Early Detection of Risk Committee:

Frequency of Meetings of the Corporate Governance Committee:

Onceeverythreemonthsandatleastfourtimesayear.

Onceeverytwomonthsandatleastsixtimesayear.

Onceeverythreemonthsandatleastfourtimesayear.

ERDEMİR AND İSDEMİR FORMULATE AND CONSTANTLY IMPROVE THEIR CORPORATE GOVERNANCE MODELS AND PRACTICES IN LINE WITH GROUP PRINCIPLES.



Policies and Regulations Adopted by OYAK Mining Metallurgy GroupThepoliciesandregulationsimprovedbyOYAKMiningMetallurgyGroupinvariousand,whichareputintopracticeintherelatedunitsareasfollows:

• CodeofEthicsandWorkingPrinciplesandAnti-CorruptionPolicy

• PublicDisclosurePolicy• CompensationPolicy• DonationsandContributionPolicy• StaffCompensationPolicy• DividendDistributionPolicy• AuditCommitteeRegulation• CorporateGovernanceCommitteeRegulation

• EarlyDetectionofRiskCommitteeRegulation

Pleaseseefordetailedinformation:www.oyakmadenmetalurji.com.tr/homepage#/investor-relations/corporate-governance/policies-and-regulations/

OYAKMiningMetallurgyGrouphasalsopublishedcomprehensivepoliciesconcerninghumanresources,occupationalhealthandsafety,managementsystems.

Corporate Governance Rating NoteErdemir,anOYAKMiningMetallurgyGroupcompany,increaseditscorporategovernanceratingfrom9.22in2017to9.27in2018intheCorporateGovernancePrinciplesComplianceRatingReport,forwhichitfirstappliedin2015andwhereitscompliancewithCorporateGovernancePrincipleswasevaluated.Withthissuccessfulachievement,ErdemirhasonceagainbeenqualifiedforinclusionintheCorporateGovernanceIndex,provingthatitisatransparent,fair,responsibleandaccountableinstitution.

KobirateInternationalCreditRatingandCorporateGovernanceServicesInc.,withhisauthorizedbytheCapitalMarketsBoardinTurkey(CMB)andwhichcarriesouttheratingactivitiesofcompaniesincludedintheCorporateGovernanceIndexoftheStockExchangeIstanbul(BIST),preparedErdemir’sCorporateGovernancePrinciplesComplianceRatingReport.

ThereportstatesthatErdemir’scompliancewiththeCorporateGovernancePrinciplespublishedbytheCapitalMarketsBoard(CMB)hasbeenmeticulouslyadopted,publicdisclosureactivitiesandtransparencyareatahighlevel,andtherightsofshareholdersandstakeholdersarefairlyobserved.Inthereport,whichalsorecognizesthatthestructureandworkingconditionsoftheBoardofDirectorsarecompliantwiththeCorporateGovernancePrinciples,itwasstatedthatErdemirdeservedaplaceintheBISTCorporateGovernanceIndexatthehighestlevel.

ERDEMİR’S CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE RATING REPORT STATES THAT ERDEMİR’S PUBLIC DISCLOSURE ACTIVITIES AND TRANSPARENCY ARE AT A HIGH LEVEL, AND THE RIGHTS OF SHAREHOLDERS AND STAKEHOLDERS ARE FAIRLY OBSERVED.

9.27ERDEMİR INCREASED ITS CORPORATE GOVERNANCE RATING TO 9.27 IN 2018 IN THE CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE RATING REPORT.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

RISK MANAGEMENT

Corporate Risk Management ApproachAsasteelproducer,theOYAKMiningMetallurgyGroupisexposedtoarangeofriskssuchasanyslowdowninglobalgrowth,tradewars,protectionism,cyberthreatsandclimatechange,aswellasenvironmentalrisksrelatedtotheindustry,occupationalhealthandsafety,explosions,anddisruptioninthesupplychain.Itisthereforevitallyimportanttoproactivelyidentifyandmanagevarioustypesofrisk.Inaimingtoproactivelyidentifyandmanageexistingandemergingrisks,theOYAKMiningMetallurgyGroupestablishedacentralizedCorporateRiskManagementsystem,supportedbypolicyandproceduresandmanagedbyrepresentativeswhoaredesignatedinthefield.

TheCorporateRiskManagementUnitreportsdirectlytotheCFOandconveyscorporateriskissuestotheBoardofDirectorseverytwomonthsthroughtheEarlyDetectionofRiskCommittee,whichconsistsoftwoindependentmembersoftheboard.

TheriskstheOYAKMiningMetallurgyGroupfacesareidentifiedbyworkshopsandupdatedwhennecessary.Therisksdeterminedareevaluatedaccordingtotheireffectsandprobabilityofoccurrence,takingintoaccountthecurrentriskcontrolmeasures.Whenneeded,specializedexpertsareconsultedinordertoevaluatecriticaloperationalrisksintheproductionfacilities.Theeffectsoftherisksaredealtwithinavarietyofwayssuchasfinancial,market,reputation,occupationalhealthandsafety,environmentandworkinterruption.Intheframeworkofthecriteriasetoutforeachrisk,realisticscenariosaretakenintoconsiderationandprobabilitiesareevaluated.TherisksareprioritizedandtheimpactismappedtoXprobabilitypoints.Detailedactionsaretakentoimprovethestatusof

criticalrisksthatcouldviolatethetolerancelevelinanyoftheimpactcriteria,fromrapidgainstolong-termcomprehensiveinvestmentplans.

TheOYAKMiningMetallurgyGroupperiodicallyreviewsitsrisksinviewofthevariablenatureofitsbusinessenvironmentandoperations.Morethan700riskswereupdatedin2018,includingsomenewrisksemergingduetochangingcircumstances.TheGroup,whichaimstoleavenoriskelementuncovered,isinclusiveintheriskidentificationphase,butselectiveindeterminingtherisksthatneedtobefocusedon.Inthisdirection,oftherisksidentified,28werecategorizedashighlysignificantand75wereimportant.Appropriateriskreductionactionswereappliedtokeeptheremainingrisksbelowtolerancelevels.

Risk Control and Mitigation ActionsTheOYAKMiningMetallurgyGrouphasfieldteamsthatfocusontheeffectivemanagementofarangeofrisks,inparticularenvironmentalandoccupationalhealthandsafetyrisks.TheGroup’sinnovativepracticesinthefieldofoccupationalhealthandsafetywonanumberofawardsin2018,includingtheawardfromEU-OSHA.TheOYAKMiningMetallurgyGroupkeepsitsdependenceoncriticalsupplyareasattolerablelevelsbyincreasingitscontroloverthesupplychainwithinfrastructureinvestments.

OYAK MINING METALLURGY GROUP ESTABLISHED A CENTRALIZED CORPORATE RISK MANAGEMENT SYSTEM, SUPPORTED BY POLICY AND PROCEDURES AND MANAGED BY REPRESENTATIVES WHO ARE DESIGNATED IN THE FIELD.



TheOYAKMiningMetallurgyGroupgeneratesitsownelectricityatoneofthelargestproductionfacilitiesandcontributestoitsenvironmentalapproach.Inthiscontext,upto66%ofitselectricityrequirementisgeneratedon-site,halfofwhichisthroughwastegases.Ontheotherhand,allwaterneedsareprovidedfromreservoirsfromwhichtheGroupstartedelectricitygenerationwithitshydroelectricpowerplant,thusreducingthedependenceonnationalwatersuppliesandrelatedrisks.

TheGroupisinvestingheavilytoreduceTurkey’sdependenceonimportedironoreandtouselocalironoredeposits.

TheOYAKMiningMetallurgyGroupcarefullyevaluatesvulnerabilitiesthatmayarisefrompossiblecyberrisks.Bothinternalresourcesandthirdpartiesareoftenemployedtoconducttestsanddevelopsolutionsfortheeffectivemanagementofcyberthreats.

SincetheGroupoperatesinthecommoditymarket,itcloselymonitorsitsfinancialrisksthroughsensitivityanalysis,takingintoaccountthepotentialnegativeeffectsoffluctuationsinsteel,coal,ironorepricesandexchangerates,aswellasthedefaultofthecounterparty.

TheOYAKMiningMetallurgyGroupacknowledgestheexistenceofawidearrayofunpredictablethreats,althoughithassofartakenmeasurestobringmostofitsrisksundercontrol.Giventhewiderangeofsuppliersandtheriskstowhichtheymaybeexposed,itisevidentthattheGroupneedsacomprehensivesupplierriskmanagementtoolintegratedintoitssupplychainmanagementsystem.TheGroup,whichinitiatedtheintegrationofthesupplierriskassessmentintothenewsuppliermanagementdevelopmentproject,aimstocompletethisworkin2020.

CODE OF ETHICS AND INTERNAL AUDIT SYSTEM

OYAK Mining Metallurgy Group Code of Ethics and Anti-Corruption PolicyOYAKMiningMetallurgyGroup’sCodeofEthicsandBusinessConductsetsoutthestandards,ethicalpracticesandexpectationsthatformthebasisforitsbusinessrelationsandactivities,OYAKMiningMetallurgyGroup’sCodeofEthicsandBusinessConductapplytoalloftheGroupcompanies,relatedthirdpartiesandemployees.

OYAKMiningMetallurgyGroupCodeofEthicsandBusinessConductsetsoutresponsibilitiesunderfourmainheadings:Integrity,AvoidingConflictofInterest,ProtectionofTradeSecretsandConfidentialityandOurResponsibilities.Thedocumentalsoprovidesdetailedcoverageofissuespertainingtoreceivingandgivinggiftsaswellasattendancetoactivitiessponsoredbythirdparties.ThemechanismscreatedforreportingethicalviolationsaredescribedintheCodeofEthicsandBusinessConduct.DisciplinaryrulesandpenaltiestobeappliedincaseofviolationsarestatedintheDisciplinaryActionsProcedures.

OYAKMiningMetallurgyGroup’santi-corruptionapproachisdetailedintheAnti-CorruptionPolicydocumentandannouncedtoallstakeholdersontheGroupcompanies’websites.AccordingtoOYAKMiningMetallurgyGroupAnti-CorruptionPolicy;regardlessofbeinginpublicorprivatesector,accepting

OYAK MINING METALLURGY GROUP CODE OF ETHICS AND BUSINESS CONDUCT SETS OUT RESPONSIBILITIES UNDER FOUR MAIN HEADINGS: INTEGRITY, AVOIDING CONFLICT OF INTEREST, PROTECTION OF TRADE SECRETS AND CONFIDENTIALITY AND OUR RESPONSIBILITIES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

orgivinganycash/non-cashbenefitthatmaybeincludedinthescopeofcorruptionisforbidden.Itisunacceptableforanyindividualororganizationwhoisinthescopeofthispolicytobeapartofsuchpaymentsunderanycircumstances.OYAKMiningMetallurgyGroup’semployeescannotbeheldresponsibleforanydisruptionsordelaysintheirbusinessprocessesthatmayoccurasaresultofnotmakingfacilitationpayments.

AsstatedintheAnti-CorruptionPolicy,OYAKMiningMetallurgyGroupdoesnotsupportillegalactivities.AlldonationsandsponsorshipscarriedoutbyOYAKMiningMetallurgyGrouparemanagedandrecordedbytheHeadofCorporateRelationsandsharedwiththegeneralpublic.OYAKMiningMetallurgyGroupisnotpartytoanypoliticaltendencyororganizationanddoesnotdonatetoanypoliticalpartiesorpoliticians.

Withinthescopeofcorporateriskmanagementprocesses,corruptionrisksarealsoassessedandcontinuouslymonitored.WorkswithinthiscontextareperiodicallyreportedtoEarlyDetectionofRiskCommittee,whichiscomposedofindependentboardmembers.Atleastonceayearandincaseofrequest,theAuditCommittee,whichiscomposedofindependentboardmembers,isinformedaboutinternalcontrolenvironment,reviewandinvestigationactivitieswithrespecttocorruptionrisks.

OYAKMiningMetallurgyGroupAnti-CorruptionPolicyincludesissuesthatneedtobetakenintoaccountintheestablishmentandcarryingoutofbusinesspartnerships.ProcurementtransactionsandsalesprocessesatOYAKMiningMetallurgyGroupareconductedwithintransparentprinciplesandwithconsiderationofobjectivecriteria.Itisessentialtoworkwithsupplierswhoprovideaddedvaluebydirectlytakingsupplyresponsibility,issuetheirowninvoices,andassumefinancialandlegal

responsibilityduringtheprocurementprocessofgoodsandservices.

OYAKMiningMetallurgyGroupworksdirectlywiththeirclients.Communicationswiththeclientsareheldeitherdirectlywiththeclient’scorporateauthorizedpersonorthroughtheintermediaryfirmsorindividualswhohaveofficialrepresentationauthority.Inadditiontothis,priortomergingwithoracquiringacompany;riskofcorruption,internalcontrolenvironmentandreputationofthecandidatecompanyiscarefullyexaminedbyOYAKMiningMetallurgyGroup.

OYAKMiningMetallurgyGroupconductsthecommunicationoftheCodeofEthicsandAnti-CorruptionPolicywiththirdpartieswithwhomithasbusinessrelationsthroughthecompanywebsitesandperiodicals.Besides,since2016,contractsenteredintowithsuppliershavestipulatedcompliancewiththeCodeofEthicsandBusinessConductandtheAnti-CorruptionPolicyasacondition.

OYAKMiningMetallurgyGroupidentifiesintermediaries,suppliersorcontractorswhoareknownorsuspectedofgivingbribesandmonitorsthembycreatingablacklist.Allbusinessrelationshipsareterminatedwithpotentialsupplierswhoareontheblacklistforsuspectedactsofbriberyorcorruption,andtheprocessofterminatingcontractswithexistingsuppliersisinitiated.

OYAK MINING METALLURGY GROUP ANTI-CORRUPTION POLICY INCLUDES ISSUES THAT NEED TO BE TAKEN INTO ACCOUNT IN THE ESTABLISHMENT AND CARRYING OUT OF BUSINESS PARTNERSHIPS.



RelatedCodeofEthicsandBusinessConductareincludedintherecruitmentsetsofthosenewhiresinanyOYAKMiningMetallurgyGroupcompany.AlsoGroupemployeesareprovidedwitheffectivetrainingpracticessoastoeffectivelyenhancetheirawarenessofandabilitytodealwithissuesinvolvingethicalrulesandanti-corruptionpractices.OYAKMiningMetallurgyGroup’smonthly-salariedemployeesareprovidedwithe-learningontheCodeofEthicsandBusinessConduct.Inthee-learningprograms,thestandardsofbehavior,whichwouldbeexpectedtobedemonstratedinsituationsthatmaybefacedinbusinesslife,arealsoexplainedthroughcasestudies.AnnuallydeclarationsofcompliancewiththeCodeofEthicsandBusinessConductaretakeninanelectronicplatformfromtheGroupemployees.TheresultsareanalyzedthroughthestudiesconductedjointlybytheHumanResourcesandInternalAuditfunctionsandactionistakenwhendeemednecessary.

https://www.oyakmadenmetalurji.com.tr/Sites/1/upload/files/Erdemir_Group_Anti_Corruption_Policy-1890-2125.pdf

In2016,OYAKMiningMetallurgyGroupbecameacorporatememberoftheEthicsandReputationSocietyofTurkeyaspartoftheGroup’songoingeffortstoensurethesustainabilityofitsCodeofEthicsandAnti-CorruptionPolicy.Alsoin2017,OYAKMiningMetallurgyGrouprepresentativesattendedaseminaron“BusinessIntegrityCountryAgenda-Turkey”organizedbyTI(TransparencyInternational)-Turkey,theTurkishChapterofTransparencyInternational.Participationinsuchorganizationsandeventscontributesbothtoethicsawarenessandtobusinessresults.

PleasereferfortheReport:http://en.seffaflik.org/wp-content/uploads/2017/03/BICA-EN.pdf

AllOYAKMiningMetallurgyGroupemployeeshavedutyandresponsibilitytocomplywiththeGroup’sCodeofEthicsandAnti-CorruptionPolicy,asdoesanystakeholdertowhichthosepoliciesapply.Inordertoensurefullcompliance,avarietyofGroup-wisemechanismshavebeeninstalledtopreventortoidentifypolicybreaches.Writtenandverbalcommunicationchannels(e-mail,post,ethicshotline)havebeensetupthroughwhicheverystakeholdermayreportsuspectedviolationsandobtainexplicitinformationaboutrules.AllcommunicationthroughthesechannelsissubjecttotheGroup’sconfidentialityprinciplesandpractices.

OYAKMiningMetallurgyGroupadoptsapolicythatpreventsattitudesandbehavior,whichcouldconstruedasretaliationagainstanyemployeesorpersonsreportinganethicalviolation.In2018,reportsreceivedfromtheethicalcommunicationchannelswereassessedsensitivelythroughOYAKMiningMetallurgyGroupInternalAuditUnitandwerefinalizedintheEthicsCommittee.Intheethicalinvestigations,whichwereconductedduringthereportingperiodbyourInternalAuditUnit,nosignificantirregularitieswerefound.

OYAKMiningMetallurgyGroupEthicsCommitteehasthehighestauthoritytoensurecompliancewiththeCodeofEthicsandAnti-CorruptionPolicythroughoutthe

OYAK MINING METALLURGY GROUP ADOPTS A POLICY THAT PREVENTS ATTITUDES AND BEHAVIOR, WHICH COULD CONSTRUED AS RETALIATION AGAINST ANY EMPLOYEES OR PERSONS REPORTING AN ETHICAL VIOLATION.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Groupandtoresolveincompliances.EthicsCommitteeconsistsoftheChairmanoftheBoardofDirectorsandtheManagingDirector,topmanagersofGroupHumanResourcesandGroupLegalDepartments.HeadofInternalAuditactsasthesecretaryoftheEthicsCommittee.OYAKMiningMetallurgyGroupEthicsCommitteeisresponsibleforthedisseminationandunderstandingoftheCodeofEthicsandBusinessConduct,updatingthemwhendeemednecessary,examininganyreportsofviolationsandmakingdecisionsinaccordancewiththedisciplinaryactionsprocedure.EthicsCommitteedecidesbyamajorityvote,andintheeventofatiedvote,theoutcomeshallbedeterminedbythedecisionoftheChairmanoftheCommittee.TheCommittee’sdecisionsarerecordedandarchivedbytheSecretaryoftheEthicsCommittee.

Internal Audit SystemOYAKMiningMetallurgyGroupInternalAuditUnitconductsrisk-basedauditactivitiestoprovidetheBoardwithanobjectiveandindependentassuranceofwhetherthesystemsofriskmanagement,internalcontrolandgovernanceprocesses,designedandimplementedbythemanagement,isadequateandeffective.Thepurpose,authorityandresponsibilitiesoftheInternalAuditDepartmentweredeterminedwiththeInternalAuditCharter.TheInternalAuditDepartment,whichisinchargeofevaluatingOYAKMiningMetallurgyGroupcompanies’riskmanagement,controlandgovernanceprocessesandimprovingthem,reportsdirectlytotheChairmanofOYAKMiningMetallurgyGroup.

InaccordancewiththerelevantcommuniquéoftheCapitalMarketsBoard(CMB),theeffectivenessoftheinternalcontrolsystemisassessedatleastonceayearbytheBoard

ofDirectors.Inthiscontext,theInternalAuditDepartmentregularlyinformstheAuditCommittee,whichconsistsofindependentmembersoftheBoardofDirectors,abouttheinternalauditactivities.

Duringtheaudits,anyrisks,whichmayberelatedtocorruptionwithintherelevantunitsandprocesses,areaddressedindetail.Itisensuredthatactionsaretakentostrengthentheinternalcontrolenvironment.Withinthescopeoftheauditscarriedoutduring2018inthevariousbusinessprocessesofthe7Groupcompanies,whichwereincludedintheauditprogram,corruptionriskswereassessedandnocaseofcorruptionwasfound.

TheInternalAuditDepartmentconductsexaminationsandinvestigationactivitiesrelatedtotheissuesthatconstituteirregularitywithOYAKMiningMetallurgyGroupCodeofEthicsandBusinessConductandtheAnti-CorruptionPolicy.TheAuditCommittee,whichconsistsofindependentmembersoftheBoardofDirectors,isregularlyinformedoftheactivitiescarriedoutbytheInternalAuditDepartmentandtheresultsthereof.

THE INTERNAL AUDIT DEPARTMENT CONDUCTS EXAMINATIONS AND INVESTIGATION ACTIVITIES RELATED TO THE ISSUES THAT CONSTITUTE IRREGULARITY WITH THE GROUP’S CODE OF ETHICS AND BUSINESS CONDUCT AND THE ANTI-CORRUPTION POLICY.



MANAGEMENT SYSTEM POLICIES AT ERDEMİR AND İSDEMİR

OYAKMiningMetallurgyGroup,whichproducesinaccordancewithnationalandinternationalstandardsintheironandsteelsector,carriesoutallitsprocessesinaccordancewiththelawandunderamanagementapproachthatcreatesvalueforitsstakeholdersandwhichisbothresponsibleandaccountable.

TheGroup’sOccupationalHealthandSafety,Quality,Environment,EnergyandInformationSecurityManagementSystemspolicyisbasedonmanagingbyobjectives,providingresourcesthatareconsistentwiththeobjectives,continuousimprovementandraisingawarenessofallemployees.

TheprinciplesoftheOccupationalHealthandSafety,Quality,Environment,EnergyandInformationSecurityManagementSystemsimplementedatOYAKMiningMetallurgyGrouparegivenbelow:

Occupational Health and Safety • Producingsteelwithoutaccidentsbymanagingriskssystematically,

• Topreventworkrelatedaccidentsandillnessbykeepingtheworkingenvironmentandprocesseshealthyandsafe,andtoprotectthehealthofouremployees,

• Expandingthesustainablesecuritycultureshapedbytheparticipationandideasofallofouremployees,

• ImplementingandmaintainingtheSecurityManagementSystemtopreventmajorindustrialaccidentscausedbyprocessesanddangeroussubstancesthatcausesignificantlossofproductionandwork.

Quality• Tospreadanapproachofcustomerfocustothewholeorganizationwitheffectivecommunication,

• Tocreateaninnovativeandcreativeemployeeculture,

• Toincreaseprofitabilitythroughprojectsandimprovementsthatincreaseefficiencyandreducecosts.

Environment• Toimplementenvironmentaltechnologiesfollowingtechnical,economicalandcommercialevaluationsfromaLifeCycleandSustainableDevelopmentperspective,tousenaturalresourceseffectivelyandefficientlyandtoprotectbiodiversity,

• Toreducewasteatitssource,todeveloprecyclingmethodsandtopromoterecycling,

• Toinform,toraiseawarenessamongallsocialstakeholdersincludingtheemployees,customers,suppliers,societyandthestateconcerningOYAKMiningMetallurgyGroup’sperspectiveontheenvironment,itsapplicationsandtheoutcomesitobtains,andtoestablishopencommunication.

Energy• Toimplementtechnologicalinnovationsthatincreaseenergyefficiency,

• Tomaximizeuseofby-productgasesandwasteheatreleased,

• Tominimizeenergylossesbysystematicmeasurementandmonitoring.

OYAK MINING METALLURGY GROUP CARRIES OUT ALL ITS PROCESSES IN ACCORDANCE WITH THE LAW AND UNDER A MANAGEMENT APPROACH WHICH IS BOTH RESPONSIBLE AND ACCOUNTABLE.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Information Security • Toraiseawarenessamongallemployeesthatcorporateinformationthatisgenerated,processedandsharedisofvalue,

• Todefinecorporateinformationassetsandinformationprocessingenvironments,tosystematicallymanagetherisksandtotakeprecautionsrelatedtoanyvulnerabilitiesinsecurity,

• Tocomplywiththeinformationsecurityrequirementsofthestakeholderswithwhomthereisanexchangeofinformation,andtoensurethesecurityoftheirinformation.

OYAKMiningMetallurgyGroupcarefullyoverseestheseprinciplesthatithasadoptedandreflectsthemonitsbehaviorandworkmethods.

Management System Certificates of Erdemir and İsdemir

ManagementStandard Erdemir İsdemirTSENISO9001:2015QualityManagementSystem X XTSENISO14001:2015EnvironmentManagementSystem

X X

TS18001OccupationalHealthandSafetyManagementSystem

X X

IATF16949:2016QualityManagementSystemfortheAutomotiveIndustry

X X

TSENISO50001EnergyManagementSystem X XTSENISO/IEC17025:2012GeneralRequirementsfortheCompetenceofTestingandCalibrationLaboratories

X -

TSENISO/IEC17025:2012LaboratoryQualificationCertificate

- X

TSISO/IEC27001:2013InformationSecurityManagementSystem

X X

THE GROUP’S MANAGEMENT SYSTEMS POLICY IS BASED ON MANAGING BY OBJECTIVES, PROVIDING RESOURCES THAT ARE CONSISTENT WITH THE OBJECTIVES, CONTINUOUS IMPROVEMENT AND RAISING AWARENESS OF ALL EMPLOYEES.


STAKEHOLDERS AND STAKEHOLDER RELATIONS

TheOYAKMiningMetallurgyGroupworkstoreflecttheopinionsandexpectationsofitsstakeholdersinalmostallareasrangingfromidentifyingstrategies,developingnewproducts,implementingsocialresponsibilityprojectsandevaluatingtheirresults,todevelopingcooperation.

TheOYAKMiningMetallurgyGroupbelievesintheimportanceofestablishingeffectiveandopencommunicationinordertoinformallofitsstakeholdersinatimelyandaccuratemanner,tounderstandtheirneedsandtomeettheirexpectationsatthehighestlevelandinabalancedway.TheGroupusesavarietyofcommunicationtoolstoinformitsstakeholdersofitsactivitiesandtoobtaintheirfeedbackandopinionsontheseactivities.Itworkstoreflecttheopinionsandexpectationsofitsstakeholdersinalmostallareasrangingfromidentifyingstrategies,developingnewproducts,implementingsocialresponsibility

projectsandevaluatingtheirresults,todevelopingcooperation.

TheOYAKMiningMetallurgyGroup,whichplacesimportanceoneffectivelytakingadvantageoftoday’scommunicationtechnologies,aimstousevariousmediaandtoolsinwhichface-to-facecommunicationisprovidedtoallstakeholders.TheGroupdesignsandorganizesthewebsitessoitsstakeholdersmayeasilyaccesstheinformationtheywantwithauser-friendlydesignandsimpleinterface.

OYAK MINING METALLURGY GROUP USES A VARIETY OF COMMUNICATION TOOLS TO INFORM ITS STAKEHOLDERS OF ITS ACTIVITIES AND TO OBTAIN THEIR FEEDBACK AND OPINIONS ON THESE ACTIVITIES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

ToensurethatOYAKMiningMetallurgyGroupstakeholderscaneasilycommunicatetheirdemandsandrequests,toolssuchasquestionformsande-mailaddresses(iletiş[email protected],[email protected],[email protected])onwebpages,areoffered.Requests,complaintsandnotificationsreceivedthroughthesechannelsareforwardedtotherelatedunitsandfinalized.Inaddition,

communicationchannelsrequiredforallstakeholderstotransmittotheEthicsCommitteeconsultantsand/ortheEthicsCommitteeareprovided.TransactionswhichcontravenetheregulationsofthecompanyandwhicharenotethicalarestatedintheEthicsRulesandWorkingPrinciplesdocumentpublishedonthewebsite.

OYAK Mining Metallurgy Group’s Stakeholders, Communication Frequency and Channels

Stakeholders CommunicationFrequency CommunicationChannelEmployees Duringbusinesshours Workingenvironment,meetings,

in-GroupTV,intranetPotential employees Periodically,intheemployment

processUniversitycareerdays,jobinterviews,academicmeetings,socialmedia,corporatereputationresearch

Customers Atvariouspointsduringthemarketingandsalescycle

Marketingstudies,fairs,directcommunication,salesprocess,productdeliveryprocess,after-salescommunication

Shareholders, investors, analysts

Periodically TheAGM,throughInvestorrelations,domesticandinternationalinvestormeetings,bilateralmeetings,thewebsiteandotherdigitalcommunicationchannels

Suppliers Differentpointsofthepurchasingcycle

Meetings,bilateralnegotiations,tenders,e-mailcommunication

Media Differentpointsoftheworkcyclethroughouttheyear

Pressreleasesandmeetings,facilitytrips,socialmedia

Society Differentpointsoftheworkcyclethroughouttheyear

Communicationwithlocalpeople,EnvironmentalImpactAssessment(EIA)PublicParticipationMeetings,socialmedia,website

Public institutions Differentpointsoftheworkcyclethroughouttheyear

Reportingstudiesmadeinaccordancewiththelegislation,consultationandcooperationprocesseswiththelegalauthorityandotherperiodiccommunication

Non-governmental and public institutions

Differentpointsoftheworkcyclethroughouttheyear

Meetingsofnon-governmentalorganizations,cooperationplatforms,membership,supportedinitiatives,socialresponsibilitystudies



EmployeesOYAKMiningMetallurgyGroupactswiththeawarenessthatthebiggestfactorthatsetsitselfapartisitshumanresourcesandbelievesintheimportanceofopencommunicationinordertoestablishaperceptionoftogethernessandbelongingamongallemployees,toestablishharmoniousandsuccessfulteamworkandtoensureasenseofbelonging. TheGroupusesface-to-faceinterviewsundertheperformancesystemasaneffectivetooltounderstandtheexpectationsandneedsofitsemployees.Itprovidesavarietyoftoolsandenvironmentsanddifferentteamworktosuggestionsystemssothattheycandemonstratetheircreativityandpotentialatthehighestlevel.ItevaluatesfeedbacksthroughtoolssuchastheEthicsCommitteeandtheCorporateReputationSurvey. InordertoensurethatemployeesareawareofGroup-relateddevelopments,topromoteanddisseminatesuccessfulactivitiesthroughoutthegroup,toappreciateandencouragesuccessfulemployees,toprovideaccesstoinformationthatmaybeneededinbothbusinessandsocialareas,thecompanyoffersanumberoftoolssuchasprintednewspapers,in-GroupTVbroadcastsandthecompanyintranet.Italsoviewssocialactivitiesforemployeesasanimportantchannelinstrengtheningtheirmotivationandcommunication.

Potential EmployeesOYAKMiningMetallurgyGroupisawareoftheimportanceofnewtalents’contributiontotheinstitutionandensuringthecontinuityofqualifiedhumanresourcesinordertomakesurethatitsachievementsaresustainable.Inthisvein,itusesvariouscommunicationchannelstoreachuniversitystudents,the

potentialfuturehumanresources,andtoinformthemabouttheGroup.TheGroupreceivesopinionsfromstudents,thusensuringtheeffectivepromotionoftheGroup,andsharestheGroup’scurrentdevelopmentsoversocialmedia,traditionalmediaandthewebsite.TheGroupreceivesjobapplicationsthroughitswebsiteandcontinuouslymonitorstheperceptionofthecompanythroughtheCorporateReputationSurvey.

CustomersOYAKMiningMetallurgyGroupcompaniesErdemirandİsdemirproviderawmaterialstoawiderangeofbusinesses,eachofwhichhasitsowndifferentneeds,expectationsandpriorities.Toprotecttheidentityoftrustedandpreferredsuppliersbothathomeandabroad,Erdemirandİsdemirattachspecialimportancetounderstandingtheneedsofdifferentcustomersinordertoprovidecustomizedsolutionstoeachofthem.

Thefactthatthesalesandmarketingorganizationhasbeenestablishedinabroadanddynamicstructurewhichisspecializedonsectoralbasisoffersanedgewhenitcomestomeetingcustomerexpectationsandachievingcustomersatisfaction.Erdemirandİsdemirreceiveorders,expectationsandfeedbackfromcustomersthroughfacetofacemeetings,technicaltripstoproductionfacilities,andsatisfactionsurveys.Itcarriesoutone-to-onestudiestodevelopnewproductsandworksinordertomeettheirexpectationswithitsmanagementsystemsstandards.

STAKEHOLDER PARTICIPATION IN ERDEMİR AND İSDEMİR, WHICH HAVE OPEN, HONEST AND SINCERE DIALOGUE WITH ALL OF ITS STAKEHOLDERS, INCLUDES DIFFERENT FORMATS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

CustomercomplaintsreceivedthroughErdemironlineareexaminedon-sitebytheafter-salesservicesunitandactionistakenintheshortestpossibletimewiththeoperationandqualitygroupsforthepointstobecorrected.Productcatalogues,technicalinformationvisitsandtripstotheproductionfacilities,aswellastechnicaltrainingonsteelandsteelusageareasareprovidedtocustomers.Thenewprojectsoflocalandinternationalcustomersusingsteelaresupportedthroughparticipationinthedesignphase.

Withsector-specifictechnicaltrips,customersreceivedetailedinformationabouttheproductionprocessoftheproductstheyuse,futureplans,etc.

CustomersareinformedofcurrentdevelopmentsintheGroup,successesandallmatterswhichmayconcernthemoverthewebsiteandthroughsocialmedia.

Shareholders, Investors and Analysts OYAKMiningMetallurgyGroup’stwopubliclytradedcompanies,Erdemirandİsdemir,arecommittedtoestablishingandmaintainingopenandtransparentcommunicationwithallstakeholders,especiallyshareholders,inlinewiththeprinciplesofcorporategovernance.Theymanagetheirrelationshipwithshareholders,investorsandanalystsinamannertosupportbrandvalue.

ErdemirandİsdemirrespondpromptlytowrittenandverbalinformationrequestsfromshareholdersthroughtheInvestorRelationsDepartmentandsharedevelopmentsregardingspecialsituationsthroughthepublicdisclosureplatformassoonaspossible.Thereportoncompliancewithcorporategovernanceprinciples,theannualreportandinvestorpresentationswhichshareholdersandinvestorsmayneedareprovidedinbothTurkishandEnglishoverthewebsite.Theyalsoprovideservicestotheirshareholdersbye-mailovertheinvestorrelations@erdemir.com.tre-mailaddress,whereinvestorsmaysubmitquestionsregardingmattersofinteresttothem.InAnnualGeneralMeetings,issuesontheagendapreviouslysharedwithshareholdersareresolved.Roadshowsandconferencesareattendedandinvestormeetingsareheld.

SuppliersErdemirandİsdemirareawarethateffectivecommunicationbasedonthecooperationandunderstandingofdevelopmenttogetherwithsupplierscreatesvalueinallprocesses.Itconductsface-to-facemeetingsandvisitsinordertounderstandthecompetencesofitssuppliers,toconveyitsownneedsandtocarryouttheprocurementprocesseffectively.TheGroupusestoolssuchasthewebsite,reportsandsocialmediatoinformthemofissuessuchaspolicies,workingprinciples,achievementsandfutureplans.

ERDEMİR AND İSDEMİR ARE AWARE THAT EFFECTIVE COMMUNICATION BASED ON THE COOPERATION AND UNDERSTANDING OF DEVELOPMENT TOGETHER WITH SUPPLIERS CREATES VALUE IN ALL PROCESSES.



MediaErdemirandİsdemirseemediaasanimportanttooltoeffectivelyinformallofitsstakeholdersandcontributetotheGroup’sreputation.Itseekstoestablishandmaintainaclose,open,accurate,transparentcommunicationwithmediaorganizations.

TheGroupsharescurrentandimportantdevelopmentsthroughpressconferences,pressreleases,facilitytripsandinterviews.ThroughtheCorporateReputationSurvey,itobtainsinformationabouttheperceptionsofmediamembersabouttheorganization.

SocietyOYAKMiningMetallurgyGroupaimstodevelopandmaintaingoodrelationswithsocietyatlarge,aswellaswithallofitsstakeholders.Itcarriesoutprojectsandactivitiesaimedatmeetingtheexpectationsofsocietyandcontributingtoitsdevelopment.Itsharesinformationthatmaybeneededthroughsocialmediaandthewebsite.ThroughtheCorporateReputationSurvey,theGroupcollectsfeedbackonperceptionsinsocietytowardstheinstitutionregardingtheactivitiesitcarriesoutinthecountryandintheregionswhereitoperates.Moreover,theGroupinformsthepublicthroughEIAPublicParticipationmeetingsaheadofnewinvestments.

Public InstitutionsOYAKMiningMetallurgyGroupsustainsitsrelationswithpublicinstitutionsandorganizationsinlinewithlegalregulations.Itsharesallreportsandinformationwithintherequiredtimeframe,andattendsmeetingsandworkinggroupstoreceivetheviewsofpublicinstitutionsandorganizationsonvarioustopics,ortoconveyitsviews.

Non-Governmental and Public InstitutionsOYAKMiningMetallurgyGroupmaintainsitsrelationswithorganizationssuchasassociationsandchambersatanationallevelinordertodevelopstrategiccooperation,takeadvantageoftheknowledgeaccumulatedinvariousareasandshareitsownknowledgeandfollowsectoraldevelopmentsatnationalandinternationallevels.Italsocontributestotheactivitiesofassociationsworkinginthepublicinterestanddevelopscooperationinthisdirection.Itbecomesamemberoftheseorganizations,andplaysanactiveroleinworkinggroups,whiletakingpartinpresentationsandconferencesorganizedbyNGOsandtakingadvantageofopportunitiesforsharingandlearning.

OYAK Mining Metallurgy Group conducts open, honest and sincere communication with all of its stakeholders.ThecommunicationthatOYAKMiningMetallurgyGrouphasestablishedwithitslargestakeholdergroupandthefeedbackithasobtainedinthiscontextprovideahighlyvaluablecontributionindeterminingthecorporatestrategicprioritiesanddevelopmentofbusinesspoliciesinadditiontocreatingaveryvaluablesourceofinformationonhowtheGroupisperceivedexternally,aswellasinbrandrecognitionandawareness.

STAKEHOLDER PARTICIPATION IN ERDEMİR AND İSDEMİR, WHICH HAVE OPEN, HONEST AND SINCERE DIALOGUE WITH ALL OF ITS STAKEHOLDERS, INCLUDES DIFFERENT FORMATS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

StakeholderparticipationinErdemirandİsdemir,whichhaveopen,honestandsinceredialoguewithallofitsstakeholders,includesdifferentformats,suchasthesurveysthatareconductedwithcustomergroupsinordertodeterminedifferentneedsandexpectations,andperiodicmeetingsheldwithemployees,NGOsandshareholders.

Initiatives, Associations and ChambersThemaininitiatives,associationsandchambersinwhichOYAKMiningMetallurgyGroupisamember,arelistedbelow.

• InternationalChamberofCommerceTurkishNationalCommittee

• WorldEnergyCouncilTurkishNationalCommittee(WEC-TNC)

• WorldSteelAssociation(worldsteel)• İstanbulChamberofIndustry(İSO)• TurkishSteelExporters’Association• TurkishSteelProducersAssociation• CorporateGovernanceAssociationofTurkey

• TurkishEthicsandReputationSociety• TurkishInvestorRelationsAssociation• TurkishQualityAssociation• PeopleManagementAssociationofTurkey• TransparencyInternational• BusinessCouncilforSustainableDevelopmentTurkey(BCSDTurkey

• IntegratedReportingNetwork• CorporateCommunicationsProfessionalsAssociation

BesidesparticipatinginTOBB’s(TheUnionofChambersandCommodityExchangesofTurkey)ClimateChangeandEnvironmentCommittee,OYAKMiningMetallurgyGroupisalsoamemberoftheGreenhouseGasMitigationWorkingGroupsetupbytheRepublicofTurkeyMinistryofEnvironmentandUrbanization.

TO ENSURE THAT OYAK MINING METALLURGY GROUP STAKEHOLDERS CAN EASILY COMMUNICATE THEIR DEMANDS AND REQUESTS, DIFFERENT TOOLS ARE OFFERED.


OYAK MINING METALLURGY GROUP SUSTAINABILITY PRIORITIES

SUSTAINABILITY PRIORITIES

OYAK Mining Metallurgy Group categorizes its sustainability priorities under three main headings: “Economic”, “Environmental”, and “Social”.TheprocessofidentifyingsustainabilityprioritiesanddrawinguprelatedplansforthefuturewerecarriedoutinOYAKMiningMetallurgyGroupaspartofworktakingplaceonthreedifferentaxesbydeployingthetable-topanalysismethodology.

• Feedbackfromtheunitsworkingcloselywithexternalstakeholders(customers,suppliers,etc.)giventotheSustainabilityDirectorateofProjectManagementandtheGroup’sdifferentmanagementlevelsonsustainability,

• Wishes,expectationsandopinionsexpressedbyemployeesthroughvariouschannels,

• FeedbackreceivedfromNGOsandtheirrepresentatives.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

İsdemirExcellence Model

İSDEMİR EXCELLENCE MODEL (IEM)

TheExcellenceModel(IEM),whichwasbroughtintopracticeforthefirsttimeon13July2017atİsdemirandthenon15August2018atErdemir,isbasedonthephilosophyof“newthinking,innovativethinking”insustainability.

Withinthescopeofthemodel,studiesarecarriedouttocovertheentireproductvalue

chain.Withinthescopeofthesestudies,employeeswhocontributetosustainabilityintheteamsestablishedthenevaluatetheprojectstheyhavedevelopedandconsidersustainabilitycriteriaintheevaluations.

AllprojectscarriedoutwithintheGroupareintegratedgenerallybyconsideringtheircompliancewiththeIEM.

The İsdemir Excellence Model consists of 9 function groups

TotalSafeProduction

InnovativeApproaches

HumanResources

EfficientEnergy

Management

TotalEfficientProduction

EffectiveProcurementManagement

Investments

ShareholdersEffective

Cost Management


OYAK MINING METALLURGY GROUP SUSTAINABILITY PRIORITIES

TheIEM,whichissummarizedintheslogan“maximizingfinancialvaluebyprotectingpeopleandtheEnvironment”,aimstoplacetheGroupaheadofthecompetitionbydrawinguponİsdemir’sintellectualknowledgeaccumulatedfromthepastandbycreatingacorporateculturethatalwaysseeksthebestwiththeparticipationofallemployees.

ThebasicvaluesoftheIEMareasfollows;• Productionwithoutcausingharmtopeopleortheenvironment,

• Toalwaysseekthebetterinoperationalprocessesandtorapidlyimplementgoodpractices,

• Touseanddevelopallresourcesrequiredforoperationsinthemostefficientway,

• Tocreateaddedvaluewithaninnovativeapproach,processandapplications,

• Toensurethateveryemployeeparticipatesinthesuccess,

• Toadoptthecontinuousimprovementculturebyconveyingthevision-mission,policies,values,companyfunctions,performancecriteriaandtargetstoallemployees,tocreateaninstitutionculturethatalwaysseeksthebestinordertoachievesustainablesuccess.

EachfunctiongroupinthemodelconsistsoftheFunctionSponsor,FunctionLeader,FunctionTeamsandUnitTeams.Inlinewiththeobjectivesofeachfunction,project-basedandperiodicalteams,consistingofbothemployeesdrawingamonthlywageandthosedrawinganhourlywage,aredisbandedaftercompletingtheirtasks.Thus,employeesincreasetheirdepthofexpertisebyworkinginprojectsoutsideoftheirowndepartmentonsubjectstheyarespecializedonandcreatevaluefortheorganization.

Inthiscontext,508ofthe774projectsimplementedintheGrouphavebeencompletedandthetotalnumberofteamshasreached768.TheprojectsthathavebeencompletedareexpectedtogenerateUSD92million.

TheİsdemirExcellenceModelalsostartedtobeappliedinErdemiron15August2018.Inthiscontext,all9functionswereestablishedand166projectsgotunderway.Intermsofparticipation,grossparticipationreached1,000peopleandnetparticipationreached500people.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Inthedeterminationofpriorities,thefollowingtopicswereemphasized;• directlyrelatedtoOYAKMiningMetallurgyGroup’sbusinessactivities,

• deemedtobeimportantbycorestakeholdergroups,

• capableofhavinganimpactonstakeholderswithwhomtheGroupinteractsormightinteract.

TheresultsfoundfromtheprioritizationworkaretargetedbeinputtedtomanytopicssuchasOYAKMiningMetallurgyGroup’sdeterminationofstrategiesintheupcomingperiod,improvingserviceprocessesandthedevelopmentofnewproducts.

Economic Environmental Social

Economicperformanceandprofitability

Climatechangeandenergymanagement

Humanresourcespractices

Supplychainmanagement Wastemanagement Femaleemploymentandequalopportunity

Sustainabilityinproductionandinvestments

Watermanagement Corporatesocialresponsibility

Productionefficiency Reductionofemission Customersatisfaction

Digitalization Lifecycleassessment Occupationalhealthandsafety

R&Dandtechnologicalinnovation

Environmentalproductdeclaration

Biodiversity

Compliancewithenvironmentallegislation


AT THE HEART OF THE ECONOMICAL CYCLEA PRODUCT CREATING HIGH ADDED VALUE FOR ECONOMIC DEVELOPMENT


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E


ECONOMIC PERFORMANCEPRODUCTION AND SERVICES

OYAK Mining Metallurgy Group carried its competitive clout to ever higher levels in 2018.OYAKMiningMetallurgyGroup,whichcontinueitsmodernizationandimprovementactivitiesinlinewithitsprincipleofhighqualityproduction,onceagainincreaseditsproductionandproductivityin2018andclosedtheyearwithnewproductionrecords.

TheGrouphascontinuedtosuccessfullyraiseitscompetitivepositionbycontinuingtheoperation,maintenanceandmodernizationactivitiesinallofitsunits.

Crude steel production of 9.145 million tons in 2018In2018,OYAKMiningMetallurgyGroup,whichaloneproduced25%ofthecrudesteelinTurkey,realizedcrudesteelproductionof9.145milliontons.

ThecapacityutilizationrateatErdemirandİsdemirstoodat97%in2018.Thelabortimespentforfinalproductproductionstoodatas2.6man-hourspertonatErdemirand1.8man-hourspertonatİsdemir.

In 2018, OYAK Mining Metallurgy Group realized its highest ever final flat steel product output, at 7.7 million tons.In2018,Erdemirproduced4.3milliontonsofflatproducts,including2.6milliontonsofhotsteeland1.7milliontonsofcoldsteel.Withtheproductionof3.4milliontonsofhotproductsproducedbyİsdemir,theGroup’syear-endtotalproductionofflatfinalproductsreachedarecord7.7milliontons.

In2018,Erdemirandİsdemirproduced1milliontonsoflongfinalproducts,including0.4milliontonsofbilletand0.6milliontonsofcoil.

Continuing to exceed customer expectationsWithitscustomer-focusedapproach,productqualityandcontinuouslydevelopedproductrange,OYAKMiningMetallurgyGroup

OYAK MINING METALLURGY GROUP ONCE AGAIN INCREASED ITS PRODUCTION AND PRODUCTIVITY IN 2018 AND CLOSED THE YEAR WITH NEW PRODUCTION RECORDS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

continuedtomeettheexpectationsofitscustomersatthetoplevelin2018aswell.

TheGroupalsocontinueditsinvestmentactivitiesaimedatreducingthedependenceofTurkishindustryonimports.Withthecommissioningofthegalvanizinglinein2018,theGroupwillbesupportingtheautomotiveindustrybydomesticallyproducingwidegalvanizedmaterials,whicharevitalforthesector,whileatthesametimeitwillmeanmaterialswhichhadbeenimportedwillnowbeproducedinTurkey.

In2008theGroupstartedtheoperationstoestablishaheattreatmentplantfortheproductionofhighvalueaddedandwearresistantsteels.

More growth in sales volumesTheGroupcarriesouteffectivemarketing,salesanddistributionactivities.Byensuringthedesiredshipmentvolumeatthedesiredtime,theGroupremainsanimportantringofthesupplychainsofthecustomersbymeetingthecustomers’demandsforspeciallysizedproductsthroughthefourSteelServiceCenterslocatedinEreğli,Gebze,Manisaandİskenderun.

Erdemirandİsdemirwhichsold7.5milliontonsoffinalproductsin2018,added18newflatsteelgradestoitsproductrange.

OYAKMiningMetallurgyGrouprecordeda19.4%YoYincreaseinexportsin2018,exporting1.6milliontonsto50countriesoverawidegeographicalareaextendingfromSouthAmericatotheMiddleEastandNorthAfrica.

Further continuous improvement activities carried out by Erdemir and İsdemir in 2018. OPEXprojects,whichwerecommissionedforthepurposeofproductionatlowercost,extendingthelifespanofequipment,energysavings,rawmaterialoptimizationandimprovingproductquality,continuedin2018.

Thefollowingtrainingprograms,supportedbytheMinitab®program,continuedinordertoexpandoperationalexcellenceprojectswithinErdemirandİsdemir;

• StatisticalDataAnalysis(IVA)• ExperimentDesign(DOE)• StatisticalModelingforManagers(YIME)• MeasurementSystemsAnalysis(MSA)

Inthiscontext,trainingwasprovidedtoatotalof54employeesatErdemirand65employeesatİsdemir.

In2018,ErdemirandİsdemiremployeescontributedtotheCompanybysharingtheirsuggestionsforimprovementinmanyareassuchasoccupationalhealthandsafety,environmentalperformance,customersatisfactionandenergysavingswithinthescopeofthesuggestionsystemapplication.

In2018,atotalof16,855suggestionswereprovidedatErdemirand10,428suggestionswereimplemented,amountingto3.2suggestionsperperson.AtErdemir,atotalofUSD9.5million/yearinrevenuewasobtainedfromthesuggestionsthatweretabledtothesuggestionsystemsandwhosereturnwascalculatedin2018.

In2018,atotalof36,628suggestionsweretabledatİsdemirand12,006suggestionswereimplemented,amountingto7.75suggestionsperperson.Atİsdemir,atotalofUSD8million/yearinrevenuewasobtainedfromthesuggestionsthatweretabledtothesuggestionsystemsandwhosereturnwascalculatedin2018.

In2018,1,470kaizenwereestablishedinErdemirandareturnofUSD40.3million/yearwasobtainedafterthecompletionofthe1,229kaizen.Atthe21stQualityCirclesSharingConference,thekaizenteamwhichcontainstheOHSimprovementfromErdemirmadeapresentation.In2018,1,073ofthe1,624Kaizen,whichwereestablishedatİsdemir,werecompleted,providingUSD34millioninannualrevenue.

In2018,310employeesweregivenkaizentraining,72employeesweregiven5Sexaminertraining,108employeesweregivenrootcauseanalysistrainingand95employeesweregivenmathematicalmodeltrainingatErdemir.Atİsdemir,387employeesweregivenkaizentrainingin2018.Asaresultoftheperformancemanagementsystem,trainingofparticipationtoolswasprovidedto167employeeswithinthescopeoftheorientation.


SUPPLY CHAIN MANAGEMENT

Supplier chain relations management at OYAK Mining Metallurgy Group contributes to both to the development of Group companies and to environmental sustainability.

AtOYAKMiningMetallurgyGroup,thetimelysupplyofrawmaterials,auxiliaryrawmaterialsandotherconsumablematerialsattherequestedquality,whicharerequiredforproductioninlinewiththeneedsoftheplants,isvital.ProcurementprocessesaimtoensurethatalternativeproductsandservicescontributetothedevelopmentoftheGroupcompaniesaswellasmeetingtheirneedsanddemands.

TheGroup’spurchasingactivitiesareundertakenbythePurchasingUnits.TheProcurementUnitsthatcarryouttheseactivities,whichrequireamultifacetedandcomprehensiveplan,serveasabridgebetweeninternalcustomersandsuppliers.

Policy that adds value to both suppliers and the Group OYAKMiningMetallurgyGroup,whichhasadiverseandcomprehensivesupplierportfolio,addsvaluetoboththeGroupandtosuppliersintheprocessofsupplyinggoodsandservices.Itaimstoprovideahighlevelofbenefitintermsofcost,qualityandtime.

Erdemirandİsdemirtakethegreatestcaretoensurethatthesensitivityitshowstotheenvironmentisalsosharedbysuppliers.TheGroup,whichcommunicatesthissensitivitytocandidatesuppliers,selectssupplierswhorespecttheenvironment,payattentiontotheenvironmentalissuesandtosustainabilityinall

AT OYAK MINING METALLURGY GROUP, PROCUREMENT PROCESSES AIM TO ENSURE THAT ALTERNATIVE PRODUCTS AND SERVICES CONTRIBUTE TO THE DEVELOPMENT OF THE GROUP COMPANIES AS WELL AS MEETING THEIR NEEDS AND DEMANDS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

transactionsstartingfromthesuppliedmaterialduringthecourseoftheprocurementprocessandtakeactioninthisregard.

InformationregardingOYAKMiningMetallurgyGroup’ssupplierrelationsandstrategiesincludethefollowingprocesses:

Supplier strategiesWithintheframeworkofthestrategiesdeterminedbythejointstudiescarriedoutwithinternationalconsultancycompanies,supplierclassificationiscarriedoutbyexaminingtheirmarketpositions.

Supplier application processPurchasingtransactionsatOYAKMiningMetallurgyGroupwhichexceedcertainlimitsarepublishedonthee-procurementplatformuntiltheendoftheirbiddingperiod,inaccordancewiththeGroup’sTransparencyPolicy.

Companieswhowishtogiveaquotationareabletoapplybyfillingintherequiredinformationaccordingtothepurchasingtype,byenteringthesupplierapplicationsectionontheplatform.

SuppliersinthepositionofsubmittingaquotationandwithwhomthepurchasingprocessisongoingareexpectedtocomplywiththeethicalvaluessetoutinOYAKMiningMetallurgyGroup’scorporatewebsiteduringthequotationcollectionprocess.

Companiescomplyingwiththecriteriaareregisteredinthesupplierportfoliooncetheyobtainthenecessaryapprovals.Thesupplierapplicationandportfoliomanagementprocessesaresubjectedtoimprovementswithinthescopeofthesupplierevaluationproject.

Main procurement categoriesPurchasesatOYAKMiningMetallurgyGrouparecarriedoutinthefollowingmainsupplycategories;• rawmaterials,• materials,• services,• projectbasedwork

Inlinewiththetypeofpurchase,manycriteriaaretakenintoconsiderationfromthefinancialstatusofthesupplierstothenumberofemployees,thequalitycertificatestheyholdandtheircapacities.

Visits to suppliersDuringsuppliervisits,whichareconducteddependingontheimportanceofmaterialtypes,detailedinvestigationsarecarriedoutandeverystageisobserved,fromthematerialproductionprocessestothequalitycontrolsystems.

Efforts to expand the supplier portfolioAtOYAKMiningMetallurgyGroup,activitiestosearchfornewsuppliersarecarriedoutfortheproductsinordertoensuresupplysecurity.Tothisend,potentialsuppliersareidentifiedthroughparticipationinsectoralconferences,fairsandevents.Potentialsuppliersarebroughttothesupplierstatusiftheyachievesuccessinthetrialperiod.

THE GROUP SELECTS SUPPLIERS WHO RESPECT THE ENVIRONMENT, PAY ATTENTION TO THE ENVIRONMENTAL ISSUES AND TO SUSTAINABILITY IN ALL TRANSACTIONS.


SUPPLY CHAIN MANAGEMENT

Supplier risk analysisAssustainabilityinsupplybearsvitalimportancefortheproductioncycle,theGroupcloselyfollowsmarketdevelopmentsandsectorpublications,andriskanalysisiscarriedoutbycontinuouslyliaisingwithsuppliers,withactionplanspreparedwhennecessary.

Riskassessmentiscarriedoutbyevaluatingtheimpactandprobabilityofcriteriasuchaswhetherornotthesupplieristhesolecompany,aswellasthenationality,legalstatus,ethics,financialsituation,geopoliticalsituationandinstitutionalnatureofeachsupplier.TheriskassessmentofeachsupplierandthesupplierassessmentscoreisplacedseparatelyintheSupplierAssessmentMatrixandtheactiontobetakenisdetermined.

IfthecompanydoesnotholdanISO9001QualityManagementSystemcertificate,theevaluationformpreparedbyErdemirissenttothecompanywitharequesttofillintheform.Inaddition,visitsareconductedtothesupplierandasecond-partyinspectioniscarriedoutifthisissetoutintheactionplanorsuchaneedhasbeenidentifiedbythemanagement.In2ndpartyinspections,theformpreparedbyErdemirinaccordancewiththerequirementsofIATF16949AutomotiveQualityManagementSystemandISO9001QualityManagementSystemisused.Thecompanywillthenbenotifiedoftheresultof2ndpartyaudits,highlightinganyareasopentostrongdirection,adviceandimprovement.Forareasopentoimprovement,correctiveactionshallbeperformedwithinthespecifiedtimeperiodandevidenceisexpectedtobesubmitted.

In2018,RiskAssessmentandperformancescoringactivitieswerecarriedoutforatotalof217suppliersand2ndpartyinspectionswerecarriedoutforthreecompanies.Corrective

actionswereinitiatedfor33companiesand22companiesobtainedthecurrentQualityManagementSystemcertificate.Theresultsofthestudiesaremonitoredtocontributetocontinuousimprovement.

Supplier performance evaluationsSupplierperformancesaresystematicallymonitoredatOYAKMiningMetallurgyGroup.Inadditiontosustainability,suppliersareevaluatedinaccordancewithsupplierevaluationcriteria,andareclassifiedbasedontheirscores.

ThepurchasingunitsassesscompanieswhichhaveprovidedtheitemsincludedintheListofMaterials,EquipmentandServicesThatDirectlyAffecttheQualityinthepreviousyear.Thesupplierclassandthedegreeofriskaredeterminedaccordingtotheresultofthisassessment.

Supplierclassesaredividedinto4categories:A,B,C,D.• TheGroupdoesnotworkwithclassDsuppliers,

• ImprovementplansarepreparedforclassCsuppliers,

• Verbal-writtenwarningsaregiventoClassBsuppliers,stipulatingmeasurestheyarerequiredtotake,

• TheGroupcontinuestoworkwithClassAsupplierswithouttakinganyaction.

OYAK MINING METALLURGY GROUP EVALUATES SUPPLIERS IN ACCORDANCE WITH SUPPLIER EVALUATION CRITERIA, AND CLASSIFIES THEM BASED ON THEIR SCORES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

SuppliersareplacedinoneofthecategorieslistedaboveaccordingtotheirSRSscore.TheSupplierRatingScoreconsistsofprice,quality,delivery,andservicecriteria.

OYAKMiningMetallurgyGroupconductedover10,000companies’supplierperformanceevaluations.

Improvement activities carried out jointly with the suppliersVariousprojectsareimplementedincooperationwithsuppliersandOYAKMiningMetallurgyGroup’stechnicalteamsinordertoimprovematerialperformanceandreduceoccupationalhealthandsafetyrisks.

An extensive supplier evaluation list OYAKMiningMetallurgyGroupalsoencouragesitssupplierstoapplymethodsaimedatthe“sustainablesteel”philosophy.

TheGroupevaluatesthevariouscriteriaofsupplierswiththeevaluationlistpreparedforintegratingthepriorityissueswithinthescopeofsustainabilitystrategieswiththeprocurementprocesses.

Thesecriteriaincludethefollowing:• Theenvironment,OHSandenergymanagementsystems

• Thehumanrightspolicyandthepracticesinthisregard

• Transportationofhazardousmaterials• Studiescarriedoutregardingtheenvironmentandenergyefficiency

• Capacityandreferences• Sustainabilitystrategiesanddeterminingwhetherornotinvestmentshavebeencarriedoutinthisfield

Applications with regard to fuels used by shipsOneoftheimportantapplicationsforsuppliersatOYAKMiningMetallurgyGroupconcernsthecontentofthefuelusedbytheships.Withintheframeworkof“InternationalConventionforthePreventionofPollutionfromShips(MARPOL)AnnexVI”,shipsmustusefuelsthatdonotcontainmorethan0.10%sulphuratthebordersoftheEmissionControlZones(ECAZone).Thesulphurcontent,whichissetatamaximumof3.50%fornon-ECAZones,willbereducedto0.50%from1January2020.

Inthecontractswhichitentersintowithsuppliers,OYAKMiningMetallurgyGroupstipulatesthattheshipsusedinoperationsholdcertificationsfortheirinternationalqualityandstandards,suchasthe“InternationalOilPollutionPreventionCertificate(IOPP)”,andthatthecertificatesshouldremainvalid.

OYAK MINING METALLURGY GROUP CLOSELY FOLLOWS MARKET DEVELOPMENTS AND SECTOR PUBLICATIONS, AND RISK ANALYSIS IS CARRIED OUT BY CONTINUOUSLY LIAISING WITH SUPPLIERS.


PRODUCTION SUSTAINABILITY AND PRODUCTIVITY

SUSTAINABILITY INVESTMENTS AT ERDEMİR AND İSDEMİR

InvestmentprojectdecisionsservingproductionsustainabilityatErdemirandİsdemirfactoriesweretakenduring2018.Theseprojectsincluderenewingoldsystemswithstate-of-the-arttechnologytakingintoaccounttoday’sconditions,whileoptimizingproductionandefficiency.

Erdemir New 2nd Blast Furnace ProjectBlastFurnacesaretheplantswheretheliquidrawironisproducedforthesteelproductionintheintegratedironandsteelfactories.Theprojectwillassurethecontinuityoftheproductionofliquidcrudeironthroughtherenewalofthe2ndBlastFurnace.Thenew2nd BlastFurnacewillhavethesamevolume(1,850m3)asthe1stBlastFurnace.

Erdemir New Sinter Plant ProjectSinterPlantsenabletherecyclingandutilizationofmaterialssuchassmallscalebuteconomicalsmallormediumsizedfineores,pelletandundersizeorematerials,steelslag,scale,fluedustandcokingduffinblastfurnaceswhichcannotbeusedintheBlastFurnaces.TheprojectwillbringsavingsinthecostofrawmaterialsandfuelusageintheBlastFurnaces.Moreover,theprojectaimstoproduceanadditional6tons/hourofsteamwiththeCircularRefrigerantWasteHeatBoilertobeinstalled.WiththeDesulphurizationFacilitytobeestablished,theSOxemissionsattheSinterPlantwillbereduced.

ERDEMİR NEW SINTER PLANT PROJECT AIMS TO PRODUCE AN ADDITIONAL 6 TONS/HOUR OF STEAM WITH THE CIRCULAR REFRIGERANT WASTE HEAT BOILER TO BE INSTALLED.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Erdemir 4th Coke Battery and Secondary Product Facilities Modernization ProjectCokebatteriesaretheplantswherethecokeusedasfuelisproducedinblastfurnaces.Therawcokegasreleasedduringthecokeproductioniscleanedandtheproductionofby-products(tar,benzoyl,etc.)andcokegasiscarriedoutattheSecondaryProductFacilities,whicharelocatedattheendofthebatteries.Erdemir’sself-sufficiencywillbeassuredinthecokeproductionwiththe4thCokeBatterytobeestablishedwithinthescopeoftheproject.Thankstotheuseoftheadditionalcokegaswhichwillbeproducedintheproductionfacilities,theamountofnaturalgasconsumedinthesefacilitieswillbereduced.Additionalby-products(benzoylandtar)willbeproduced.Inaddition,thenewtechnologieswillallowcokeproductiontobemaintainedwithloweremissionsandhigherenergyefficiency.

Erdemir 60 MW Turbo Generator and No. 6 Steam BoilerTheNo.6SteamBoilerprojectaimstoproducesteambymaximizingtheuseofblastfurnacegasmoreefficiently.Thefirmprovidingthetechnologycontinuestocarryoutengineeringwork.TheNew60MWTurboGeneratorPurchaseProjectaimstoincreasetheoperationalsecurityinelectricitygeneration.Proposalevaluationstudiesfortheprojectareongoing.

Erdemir Environmental Investment ProjectsAtErdemir,EnvironmentalInvestmentProjectsarecarriedoutinordertocarryoutinallprocessesinaccordancewiththelaw,creatingvalueforstakeholders,witharesponsibleandaccountablemanagementapproach.

İsdemir 3rd Coke Battery ModernizationTheprojectwillenablecokeproductiontocontinuesafelywithloweremissionsandhigherenergyefficiency.Afterthedryquenchingprocessofthecoketobeproducedin3rdCoke

Battery,itwillbepossibletoproduce40tonsofsteamperhour(orequivalentelectricity)fromthewasteheatwhichcannotbeutilizedinthepresentsituation.

İsdemir New Sinter Plant ProjectTheprojectwillpavethewayforsavingsinthecostofrawmaterialsintheblastfurnaces.TheDesulphurizationfacilitywillpavethewayforareductioninSOxemissionsgeneratedfromtheSinterfactory.

İsdemir New 1st Blast FurnaceWithinthescopeoftheproject,thedecisionwastakentoconstructanewfurnacewithavolumeof3,000m3atthelocationofthe1st BlastFurnacewithits1,218m3volume,insteadofreliningworkatthe3rdBlastFurnace.TheinvestmentintheNew1stBlastFurnace,itwasaimedtopreventthelossofproductionthatwouldoccurifthe3rdBlastFurnacewasrelined,whileboostingsalesrevenuesthankstotheincreaseinfinalproductquantitiesthatwillcomeonthebackoftheincreaseinthefurnacevolume.

İsdemir Environmental Investment ProjectsTheEnvironmentalInvestmentPackage,whichwassetuptosupporttheexecutionofallprocessesinaccordancewiththeregulations,witharesponsibleandaccountableunderstandingofmanagement,thatcreatesvalueforallstakeholders,wascompleted.

INVESTMENT PROJECTS AT ERDEMİR AND İSDEMİR INCLUDE RENEWING OLD SYSTEMS WITH STATE-OF-THE-ART TECHNOLOGY TAKING INTO ACCOUNT TODAY’S CONDITIONS, WHILE OPTIMIZING PRODUCTION AND EFFICIENCY.


OPERATIONAL EFFICIENCY

TheOYAKMiningMetallurgyGroupnotonlyensuresthecontinuityofproductionbycarryingoutnewinvestments,italsodevelopsoptimizationsthataffectexternalstakeholdersbydevelopingimprovementprojectsinexistingprocesses.

Alloy Studies2018wasayearofsignificantchallengesinthepricingandsupplyofsomealloymaterials.Inthiscontext,theOYAKMiningMetallurgyGroupsteppedupproductionofsteelgradeswiththeuseofalternativealloys,sincealloypricesincreased4-5foldonthebackofglobal

OYAK MINING METALLURGY GROUP DEVELOPS OPTIMIZATIONS THAT AFFECT EXTERNAL STAKEHOLDERS BY DEVELOPING IMPROVEMENT PROJECTS IN EXISTING PROCESSES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

developments,givingrisetosignificantsupplyshortages.Thankstothe19projectscarriedoutatErdemirandİsdemir,USD10millionsavingswereachievedinalloycosts.

İsdemir Slab Length OptimizationTheOYAKMiningMetallurgyGroupimprovedproductivityby8%withthetransitiontovariablesize-fixedtonnagepracticeintheslabsproducedinİsdemirplants,enablingproductionattherollingmilltobeincreasedatthe200-250ktonlevel.

Lightening Work with the Manufacturing SectorMoreefficientuseofresourceshasbeenachieved,especiallyintheautomotiveandwhitegoodssectorwiththeworkonthereductionofthickness.Customersarebecomingmorecompetitivethankstothethicknessreductionworkoncommercialvehiclechassisandgalvanizedmaterialsusedintheautomotiveindustry,andpackagingsteel.Coatingandthicknessreductioneffortswillcontinuein2019aswell.

Erdemir Romania Process Improvement WorkAtransformationprojectisbeingcarriedoutattheOYAKMiningMetallurgyGroup’sfactoryinTargovishte.ProductionandbusinessprocessesandtheautomationinfrastructureofthefactoryproducingelectricalsteelhavebeenrenewedandharmonizedwithGroupapplications.Intheproject,processexpertsfromErdemir,İsdemirandErdemirMühendislikcarriedoutvisitstotheRomanianfactoryandcarriedtheGroupsynergytohigherlevelsthroughmutuallearningandapplicationcomparisonmethods,andmodernizedthefactorywithinthescopeofprocessimprovementstudiesanddigitalizationprojects.

USD 10 MILLIONWITH PROJECTS CARRIED OUT AT ERDEMİR AND İSDEMİR, USD 10 MILLION SAVINGS WERE ACHIEVED IN ALLOY COSTS.


DIGITALIZATION

In 2018, OYAK Mining Metallurgy Group carried out numerous digitalization projects and renewed its business processes in order to provide its employees and stakeholders with an improved and more efficient experience.

Withthecompletedprojects,employeesadopttheconceptof“NewThinking,InnovativeThinking”contributingtosystematicandcontinuousprocessprojects,andevaluatethevaluechainasawhole.

Project-drivenprocessesreducerisksintheproductvaluechain,adaptemployeestothedigitalage,andincreaseproductivityandaddedvalueinbusinessprocesses.

IN 2018, OYAK MINING METALLURGY GROUP CARRIED OUT NUMEROUS DIGITALIZATION PROJECTS AND RENEWED ITS BUSINESS PROCESSES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

INTEGRATED AUDIT SYSTEM PROJECT

The Integrated Audit System project enabled OYAK Mining Metallurgy Group to carry out audit activities through software and ensured continuous audit and control mechanisms.

Whilethebiggestlossesexperiencedbycorporationsworldwidearearesultofstrategicrisks,traditionalauditapproachesdevotemostoftheirresourcestoexaminingoperational,financialandcompliancerisks.

TheIntegratedAuditSystemwascommissionedin2018inordertoautomatetheexaminationofroutinerisksandcheckpointsbytheOYAKMiningMetallurgyGroupInternalAuditUnitandtodirecttheresourcesoftheauditunittohighvalueaddedconsultancyactivitiesanddealingwithstrategicrisks.Thesystemensuredthatauditactivitieswerecarriedoutthroughsoftware,andacontinuousauditandcontrolmechanismwasestablished.

Withinthescopeoftheproject,SAPGRCRiskManagement,ProcessControlandAuditManagementmoduleswerecommissioned.InadditiontoInternalAuditUnit,Information

Technologiesandkeymoduleuserstookpartintheproject.

TheOYAKMiningMetallurgyGroupInternalAuditUnitadoptsriskbasedauditmethodology.Inthiscontext,firstofall,risksrelatedtotheauditedprocessaredeterminedandenteredintotheriskmanagementsystem.

Aftertheinternalcontrolsappliedbythoseresponsiblefortheprocessesfortheserisksareexaminedandtestedforeffectiveness,theResidualrisklevelisassessed.Theresultsoftheriskassessmentareexaminedbytheauditteamontheriskmap.ThefindingsfortheidentifiedcontrolWeaknessesaregeneratedinthesystemandactionsaredeterminedbythoseresponsiblefortheprocessesinordertoeliminatethesefindings.

AnothermoduleintheprojectisProcessControl.Automaticcontrol/Businessruleswereestablishedintheprocesscontrolmoduleandacontinuousmonitoringmechanismwasestablished.Thankstoautomaticcontrolsandcontinuousmonitoring,internalauditworkhasbecomemoreproactive.

Risk AssessmentInherentandresidualrisksareassessed

Test of ControlTestresultsareanalyzed,remedyplansaredeveloped

Risk DefinitionProcessrisksaredefinedandcategorized

Control DesignManualandautomatedcontrols

areDesigned

Process AuditsProcessesareaudited,deficiencies

aredetectedandreportedAction Follow – upActionplansredevelopedand

monitored.

Risk Management

Process Control

Audit Management


DIGITALIZATION

AnothermoduleoftheprojectisAuditManagementcommissionedwithinthescopeoftheprojectwasAuditManagement.AftertheAuditManagementSystemwasputintopractice,auditactivitiesstartedtobecarriedoutontheSAPAuditSystemandauditfindingsandactionsweremonitoredmoresystematically.Theautomaticnotificationssent

bythesystemhaveenabledactiontrackingandcorrectiveactionshavebeencarriedoutontime.Asaresultofautomaticgenerationofauditreportsbythesystemasaprojectoutput,itispossiblefortheauditteamtoallocatetheirtimetohigheraddedvalueactivities.

DIGITAL HUMAN RESOURCES PROJECT

In line with the high level of importance and priority which the Group places on human resources and technology, the OYAK Mining Metallurgy Group introduced its first human resources transformation program in 2018 and launched its first modules.

Thefirstoutputsofthisprocesswhichwesetoutonwiththeaimofdevelopmentandconsolidationofdifferentapproaches,processesandinfrastructuresforhumanresourcesprocessesintheGroupcompanies,thecreationofstandardapproachesandthecreationofauser-friendly,flexibleandscalable

commondigitalinfrastructure,the“EmployeeInformation”and“PerformanceManagement”systemswerecommissionedbytheendof2018.

Withthesesystems,whosesourcecodesareentirelyownedbytheGroup,significantgainshavebeenachievedinoperationalefficiencyaswellasthemanagementofhumanresourcesprocesseswithmoreaccurate,holisticandaccessibledata.

OYAK MINING METALLURGY GROUP INTRODUCED ITS FIRST HUMAN RESOURCES TRANSFORMATION PROGRAM IN 2018 AND LAUNCHED ITS FIRST MODULES.

4

3 5

2

1 7

6

AUDIT UNIVERSE-Createlistof

Auditableitems

PRIORITIZATION-PrioritizeAls

basedonrisklevels

AUDIT PLANNING-Annualauditandresourceplanning

CONDUCT-ConducttestofcontrolEffectiveness-Analyzeinherentandresidualrisks

REPORT -ReportfindingsandRecommendations-Receiveactionplansfromexecutiveresponsible

ACTION FOLLOW-UP-Followactions-Evaluateeffectivenessofactionstaken

PREPARATION-Distributeannouncement-Prepareworkprogram

-DevelopRCMandimporttoAM

AUDIT MANAGEMENT

Integrated Audit System Workflow


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Withinthescopeoftheprogram,theGroupaimstomaximizehumanresourcesprocessandsystemmaturitybyimplementingthe“Selection,PlacementandOrganization

Management”,“TalentManagement”,“JobEvaluation,WageandSideBenefitsManagement”and“EmployeeDevelopment”systemsbytheendof2019.

RAW MATERIAL SUPPLY PLANNING SYSTEM PROJECT

Working to a goal of digitizing raw material planning work processes and optimizations

TheOYAKMiningMetallurgyGroupisimplementinganewprojecttodigitizerawmaterialplanningworkprocessesandoptimizations.Theprojectisaimedatoptimizingalltherawmaterialsthatgenerateinputstotheproductvaluechain,toimprovetheprocessesandtocarryoutallrelatedoperationsonadigitalplatform.

Withinthescopeoftheproject,alloftheGroup’sinternalstakeholders-inBusiness,Purchasing,IT,andSales-contributetothesimplificationoftheprocessesandproactivemeasuresaretakentotackleanyrisksthatmayarisebyreducingthemarginoferrorintheoptimizations.Intheproject,whichcontributestothecorporatememory,theGroup’spurchasingplanningisadaptedtotoday’sdigitalconditions,ensuringthesustainabilityoftherelatedworkonthebasisofproductionandworkefficiency.

OYAK MINING METALLURGY GROUP IS IMPLEMENTING A NEW PROJECT TO DIGITIZE RAW MATERIAL PLANNING WORK PROCESSES AND OPTIMIZATIONS.

Performance Management

Personnel Information Management

Selection, Placement and Organization Management

OYA

K D

IGIT

AL

HR

Talent Management

Job Evaluation, Wage and Side Benefits Management

Training and Development Management


DIGITALIZATION

SUPPLIER EVALUATION PROJECT

Targeting more effective and efficient management of the supply chain

Inordertomanagethesupplychainmoreeffectivelyandefficiently,OYAKMiningMetallurgyGroupcommissionedtheSupplierEvaluationProject,consistingoftwophases.

SupplierApplicationandRepertoryManagement,thefirstphaseoftheproject,itisaimedatreviewingthequalificationsofsupplierswhowillapplythroughtheGrouppurchasingplatforminordertobethesupplierinthefirststage,andtoregisterthosefirmswhopossessthenecessaryqualificationsasapprovedorpotentialsupplierstotherepertoiresoftherelevantestablishments.

Inaddition,theprojectalsoaimsatensuringthatsuppliersofdifferenttypesofproductsandservicesarepre-evaluatedaccordingtothedifferentcriteriadependingontheneedsoftheenterprises,andthatexistingsuppliersareabletoapplyfordifferentproductgroupsthroughtheplatform.

Inlinewiththeprincipleoftransparencyandcontrollability,theprojectwillensurethatalltransactionsrelatedtosuppliersandtheselectionofsuppliersinthebidcollectionprocessshallbemonitoredandapproved.

Thesupplierperformancemanagementphase,whichisthesecondphaseoftheproject,hasthefollowingaims;• evaluatetheperformanceofthesuppliersofdifferentproductsandservicesaccordingtothecriteriaoftheunitsrequiringthem,

• classifysuppliersaccordingtotheperformanceresultsandtodeterminetheactionstobetaken,

• determineanynecessarydevelopmentplansaccordingtothescoresreachedattheendoftheevaluation,

• promotethedevelopmentofsuppliersandincreasetheproductandservicequalitybycarryingoutjointprojectswiththesuppliers.

PROJECT 660

A customer-oriented smart project aimed at serving the goals of the OYAK Mining Metallurgy Group

Project660,oneofthekeysub-headingsinthedigitaltransformation,hastwolayersofcoverageinparallelwiththetargetofacustomer-orientedandsmartOYAKMiningMetallurgyGroup.

SUPPLIER EVALUATION PROJECT WILL ENSURE THAT ALL TRANSACTIONS RELATED TO SUPPLIERS AND THE SELECTION OF SUPPLIERS IN THE BID COLLECTION PROCESS SHALL BE MONITORED AND APPROVED.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Inthefirstlayer,whichincludestheagilityandupdatingofallsalesandshipmentprocessesthatinvolvecontactwithcustomers,theaimiscreateflexibleprocessesthatalloweasyandrapidaccesstoinformation,includingthequalitydesignandproductidentificationprocesses.

Inthesecondlayer,themodernizationoftheexistingtechnologicalinfrastructureisrealized.PROJECT660willbedevelopedonanewarchitecturewhichwillovercomethesystemicconstraintsandkeepupwiththelatesttrendsintechnology,aimingtoprovideaproductivesystemcompatiblewithmobileplatformsthatwillbeabletoprovideflexiblereportingfromAugust2020.

PURCHASING DIGITALIZATION PROJECT

Transparent, controllable, traceable purchases on a digital platform

Themainobjectiveoftheprojectistorenderallpurchasingprocessestransparent,controllableandtraceableonadigitalplatformand,furthermore,toensurethatallcommunicationcanbecarriedoutthroughthesystem.Anotherobjectiveistocontributetotheenvironment

bycurtailingpaperconsumptionandprintingoperationsbytransferringallprocessestoelectronicmediaratherthantakingtheoutputsofvariousmediatransactionsandarchivingtheminfiles.

Asoftheendof2018,77%ofthepurchasesintermsofthenumberofpurchaseorderswerecarriedoutthroughtheGrouppurchasingplatform.Startingwiththepurchaseofmaterialsinthefirstplace,theusecontinuedovertimeinordertocollectproposalsforroadlogisticspurchases,domesticscrappurchaseunitsandtheFinanceGroup.

Thetargetoftheprojectfor2019hasbeendeterminedasthecollectionofproposalsofallpurchasingunitsfromdomesticandforeignsuppliers(ratherthanpartialpurchasetransactions),tocarryouttechnicalandcommercialevaluations,todeliverordersintegratedwithSAPafterbeingcreatedontheSAPandoncetherequiredapprovalshavebeenobtained,andtocarryoutthesupplier’sapprovalprocessesoverthedigitalpurchasingplatform.

THE MAIN OBJECTIVE OF THE PURCHASING DIGITALIZATION PROJECT IS TO RENDER ALL PURCHASING PROCESSES TRANSPARENT, CONTROLLABLE AND TRACEABLE ON A DIGITAL PLATFORM.


R&D AND INNOVATION MANAGEMENT

Brought to the sector by OYAK Mining Metallurgy Group and the first R&D Center to have been approved by the Ministry, the Erdemir R&D Center continues to operate successfully.

Erdemir’sR&DCenter,thefirstintheTurkishsteelsectorandapprovedbytheMinistryofIndustryandTechnologyon26August2014,aimstomeettheincreasingneedsandexpectationsofitscustomerswithinnovativesolutions.

Inlinewiththisgoal,workiscarriedouttoproducecompetitive,newproductswithhighaddedvalueatreasonablecost,whilesearchingforalternativerawmaterialresources,identifyingalternativematerialsandtechnologiesthatreducecostsandensuringrawmaterialsandenergyresourcescanbeusedmoreefficiently.

In2018,morecompetitiveproductswereofferedtothemarketbyachievingacost

advantagethroughimprovementsmadetotheproductionprocessesbytheR&DCenterthatsuccessfullypassedthe3rdyearauditbytheMinistry.Inaddition,worktorecoverwasteemergedintheproductionprocessescontinuedsuccessfully.

In2018atotalof30projectshavebeencompletedintheR&DCenter,whichoperatesunderfourmaingroups;HotProductsandProcesses,ColdProductsandProcesses,SteelProductionandCastingTechnologies,andRawMaterialsandIronProduction.Workonanadditional31projectsiscurrentlyongoing.

AT ERDEMİR’S R&D CENTER, WORK IS CARRIED OUT TO PRODUCE COMPETITIVE, NEW PRODUCTS WITH HIGH ADDED VALUE AT REASONABLE COST, WHILE SEARCHING FOR ALTERNATIVE RAW MATERIAL RESOURCES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Infrastructure work stepped up at Erdemir R&D center in 2018.AttheErdemirR&Dinstallationandassemblyworkontheexperimentalsintersimulator,forwhichthepurchaseprocesshasbeenfinalized,wascompletedin2018.Numerousblendmodelingstudieswillbecarriedoutthroughthissimulatorwhichwillenteroperationshortly.Atthesametime,avibratingsieve,crusher,drum,mixer,pelletizingdrumandfragmentationtestinstruments,whichformtheauxiliarytestequipmentofthesimulator,werebroughtintotheinfrastructureofthe“RawMaterialsandIronProductionSimulationLaboratory”.

Theprocessofpurchasingthecoketestoven,whichwillenablemassequivalencestudiesofcokeby-products,continues.

Theinstallationandassemblyworkofthe150kgcapacityvacuuminductionfurnaceand350kgcapacityopeninductionfurnace,whichwerepurchasedinmeltingandcastinglaboratories,hasbeencompleted.

Installationandcommissioningofthehot-dipgalvanizingsimulatorwascarriedoutin2018.Thissimulatoriscapableofcoatinghighperformanceheating,annealing,coolingandhotdippingindifferentchemicalcompositionsandworkingunderthesameatmosphericconditionsasindustrialcontinuousgalvanizinglines.

Withthissimulator,whichisactivelyusedinexistingproductimprovementandnewproductdevelopmentstudies,Erdemir’scontinuousgalvanizinglineswillbeoptimizedwithinnovativeprocessparameters.Thehot-dipgalvanizingsimulatorwillshortenthedurationofR&Dstudiesaswellaslimitingproductionlossesbyminimizingthenumberoftrialstobeperformedonthefieldscale.

Furthermore,thecoldrollingsimulator,forwhichinstallationworkstartedinthelastquarterof2018,isexpectedtobecompletedinthefirst6monthsof2019.

DetailedengineeringworksofthehotrollingsimulatorwerecompletedinJuly2018andfieldinstallationworkisplannedtostartinthefirsthalfof2019.Theequipmentisscheduledtobecommissionedattheendoftheyear.

TheentiresimulationinfrastructureofErdemirR&DCenterisslatedforcompletionin2019.

High-level laboratory equipment commissioned.Theinstallationofthedevice,whichhasbeenpurchasedinordertoobtainmoredetailedanalysisoftheresiduesaffectingthepropertiesofsteel(suchaselementalproperty,size,type,typeanddistribution)inthesteelproductionprocessandtoobtaindetailedinformationconcerningsteelcleaning,hasbeencompletedandanalyticalworkhasgotunderway.A“SpectralAnalysisandX-rayLaboratory”anda“SamplePreparationLaboratory”hasbeenestablished,includingX-raydiffractionandX-rayfluorescencespectrometerdevices,whichwillcarrythedepthandqualityofthematerialcharacterizationstudiestohigherlevels.Alldeviceshavebeenactivated.

Apilot-scaleautoclavewasinstalledintothetechnicalinfrastructureoftheErdemirR&DCenterforthepurposeofcarryingoutslagagingstudiestoenabletheuseofsteelslaginhighways,anditwascommissioned.Thelaboratorygainedtheabilitytomeasuretheexpansionbehaviorofslagaccordingtorelevantstandards.

Waterjet,wireerosiondevicesandBrinellhardnessdeviceshavebeenaddedtothelaboratoryinfrastructureforthedevelopmentofhigh-strengthheat-treatablesteelsandadvancedhigh-strengthsteels.Ontheotherhand,withtheprovisionofadditionalequipmentandtestapparatusforthedevicesinthemetalforminglaboratory,theskillsrelatedtocoatingandcoatingthicknessmeasurementswereacquiredandspringbacktestswereperformed.


R&D AND INNOVATION MANAGEMENT

AnexperimentalenamelcoatingsystemwascreatedtodeterminethecoatingpropertiesofErdemirenameledsteelgrades,thedevelopmentofnewsteelqualitieswithhighcoatingperformancefortheneedsofthewhitegoodssector,andcustomer-orientedjointprojects.

Erdemir R&D Center, which closely follows the technological developments, attaches great importance to the training of its employees.AttachingimportancetocontinuousdevelopmentofemployeesErdemirR&DCentercontinuesitstrainingactivitiesinlightofcurrenttechnologicaldevelopments.In2018,24trainingprogramswereofferedindifferenttechnicalsubjects,whichweretailoredtotheneedsofemployees.Theemployeeswereencouragedtocontinuetheirdoctoralandpost-graduatestudies.TheR&DCentercompletedtheyear2018withatotalof52employeesincludingtwoemployeeswithadoctorate,11doctoralstudents,10employeeswithapostgraduatedegree,fivepostgraduatestudents,13employeeswithabachelor’sdegree,oneassociatedegreestudentandsixemployeeswithanassociatedegreeorhighschooleducation.

R&DCenteremployeesparticipatedinminingandmetallurgysectorineventsorganizedinthenational/internationalarenaduring2018,withatotalofsixnewarticles/declarations,allofwhichwereininternationalevents.TheErdemirR&DCentercontributedtothepromotionoftheGroupandaccumulationofintellectualcapitalbyparticipatinginanumberofeventswithatotalof58articles/declarationsafterapprovalbytheMinistry.Forty-sixofthedeclarationsweregivenininternationalevents.

Life Cycle Assessment studies continuing in Erdemir & İsdemir processes

Life Cycle Assessment (LCA)AnErdemirandİsdemirLifeCycleAnalysis(LCA)workingteamwassetupin2018.TheteamformedbytheSustainabilityDirectorateandtheR&D,EnvironmentandOccupationalHealthandSafetydepartmentsreporttheproductlifecycleanalysistotheBoardofDirectorsonamonthlybasiswithinthescopeofactionsandtargetsthroughmodelingcarriedoutspecificallyfortheErdemirprocess.

Withinthescopeofitsapproachtosustainablesteelproduction,thestudiesconductedwithLifeCycleAnalysis(LCA)methodologycontinuedin2018.FollowingthecompletionoftheCleanProductionPracticesintheBlastFurnaceProcess,SinterFactoryLCAModelingwasperformedandtheproductionparametersbetween2015and2018werealsoexamined.SuggestionsforimprovementweretabledbycalculatingtheGWP(GlobalWarmingPotential),AP(AcidificationPotential)andEP(EutrophicationPotential)oftheSinterPlant,withprioritygiventobringingdownSO

2emissions.Inlinewithdataforthefirstsixmonthsof2018,itwasdemonstratedthatsinterproductionhadreachedaproductionpotentialwithemissionsbelowglobalaveragevalues.

Five registered patents/utility models in OYAK Mining Metallurgy GroupIn2018,sixpatentsandthreeutilitymodelapplicationsweretabledinresponsetoinventionproposalsfromGroupemployees.Theregistrationprocessofatotalof20applications,includingninepatents/utilitymodelsforwhichapplicationsweresubmitted,iscontinuing.

THE ERDEMİR R&D CENTER CONTRIBUTES TO THE PROMOTION OF THE GROUP AND ACCUMULATION OF INTELLECTUAL CAPITAL.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Ontheotherhand,fiveoftheprojects,forwhichapplicationshavebeensubmittedsince2014withinthescopeoftheTÜBİTAKTEYDEB1501IndustrialR&DProjectsSupportProgram,weresuccessfullycompleted.Theactivitiescontinueforthethreeprojectsforwhichthedecisionwastakentogivesupport.

Erdemir laboratories continuing to work in accordance with TS EN ISO/IEC 17025 standardErdemirTestLaboratoriescompletedtheirParticipationinProficiencyTests,InternalQualityControlandMeasurementUncertaintystudieswithinthescopeoftheTSENISO/IEC17025standardtechnicalrequirements,relatedtothetests/analysestobeappliedforexpansionoftheirscopein2019,intheTÜRKAKdocumentrenewalaudit.

FollowingtheTSENISO/IEC17025standardre-certificationauditattheendof2017,theErdemirCalibrationCenterwasgrantedthenewaccreditationcertificatevalidforafurther4yearson15March2018.TÜRKAKwillconductcheckseveryyeartoascertainwhethercompliancewiththeauditshasbeenmaintained.Inadditiontotheexistingcoverage,accreditationexpansionauditswillbecarriedoutintheareasofScaleCalibration(Eurametcg.18)andStove-FurnaceCalibration(Eurametcg.20)during2019.

PRODUCT DEVELOPMENT WORK

Increasing the number grades with new products developed by the OYAK Mining Metallurgy Group

Producing for the Wind Power MarketOneofthemoststrategicissuesinTurkey’senergymarketistheincreaseinthenumberofwindfarmsandenvironmentallyfriendlyenergyproduction.

OYAKMiningMetallurgyGroupstartedtoproduceplatestobeusedinwindfarmprojectsandrealized25,000tonsofwindfarmplatesalesin2018.

TheGroupaimstosell50,000tons,contributingtothecompetitivenessofdomesticproducersininternationalmarkets.

In2018,OYAKMiningMetallurgyGroupwastheapprovedsupplierofglobalfirmsoperatinginTurkeyinthewindpowermarket,suchasSiemens,Gamesa,Vestas,GE,Enercon,Nordex,LeitwindandEWT.

Quality improvement work for X60 and higher grades in international API projects ThankstotheworkcarriedoutwithintheOYAKMiningMetallurgyGroup,theGroup’sshareinoilandgaspipelineprojectscarriedoutbothinTurkeyandabroadincreased.Salesforpetroleum/naturalgaspipelineprojects,whichstoodat280,000tonsin2017,increasedto420,000tons.TheBRUAPipelineinEuropeandTurkey,theTurkStream,EurostreamandnumerousprojectsalestoBOTAŞwereparticularlyeffectiveinthisincrease.TheGrouptripleditssalesofX60andhighergrades,whichwereimportedfromabroad.

Development of heat treatment steelsIn2018,workontheheattreatmentsteelproductionplant,whichisplannedtobeestablishedwithintheOYAKMiningMetallurgyGroup,continued.Inthiscontext,NewgradesrelatedtothisproductgroupforwhichcriticalsectorssuchasconstructionanddefenseinTurkeyarecompletelydependentonimportsweredeveloped,andtestsinseverallaboratoriesbothdomesticallyandabroadweresuccessfullycarriedout.In2019theGroupwillcontinueitsdevelopmentactivitiesinthisproductgroupthatisofutmoststrategicimportance.


GREEN TECHNOLOGIESAN ENVIRONMENTAL AND VALUABLE PRODUCT WITH KEY ROLES IN BUILDING A SUSTAINABLE WORLD


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E


ENVIRONMENTAL PERFORMANCEENVIRONMENTAL APPROACH AT OYAK MINING METALLURGY GROUP

OYAK Mining Metallurgy Group shapes their production activities in the light of sustainability criteria. Renewable energy, energy efficiency and environmental investments are always at the forefront of the Group’s approach.

ThecorporatecultureofOYAKMiningMetallurgyGroupisunwaveringlydevotedtoworkingresponsiblytowardsprotectingtheenvironment,touseexistingresourceseffectively,efficientlyandcorrectly,tobenefitfromcommunicationchannelsinthenameofdevelopmentandawarenessofallstakeholders,andtoconstantlydevelopenvironmentalperformanceinordertopassonacleanerandmorelivableworldtofuturegenerations.

TheGroupaimstoincreaseeffectivenessintheuseofresources,toreducewaste,toactappropriatelywhenitcomestorecyclingateverystageoftheactivitycycle,andtoprotectandimprovehumancapital.

OYAKMiningMetallurgyGroupdemonstratesitscontributionineffortstotackleglobalclimatechangeandtoresolveenvironmentalproblemsbyassumingresponsibilityforthesustainablefutureoftheworldaswellasTurkey’sandbytakingappropriatestepsaccordingly.

OYAK MINING METALLURGY GROUP DEMONSTRATES ITS CONTRIBUTION IN EFFORTS TO TACKLE GLOBAL CLIMATE CHANGE AND TO RESOLVE ENVIRONMENTAL PROBLEMS BY ASSUMING RESPONSIBILITY FOR THE SUSTAINABLE FUTURE.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Focusingoninvestmentprojectsthatwillprovideprotectionoftheenvironmentandmitigatetheadverseeffectsofclimatechange,theGroupconductsthisprocessinaccordancewithanapproachwhichisfullycompliantwithlawsandlegislation,andwhichisresponsible,transparent,accountableandaddsvaluetoitsstakeholders,withthemostadvancedassessment,managementandmonitoringmethodologies.

The Environmental Management System at Erdemir and İsdemirAhighlevelofsensitivitywithregardtoenvironmentalawarenessandenvironmentalissuesareamongthekeyelementsofOYAKMiningMetallurgyGroup’sbusinessprinciples.

Giventhatenvironmentalsensitivityandresponsibilityformanintegralpartofhowithasconductedbusinessformanyyears,theGrouphasdevelopeditsenvironmentalapproachintoasystematicstructurethatisopentointernationalauditwiththeEnvironmentalManagementSystem.

AsaholderoftheTSENISO14001EnvironmentalManagementSystemCertificate,Erdemirandİsdemircarryoutdetailedactivitiestoensurethattheenvironmentalpolicy,whichitdeterminedwithinthisscope,isadoptedbyallemployees.

ErdemirandİsdemirEnvironmentalPolicyisbasedonthefollowingpillars:• Withinthescopeofitsapproachtosustainabledevelopment,toimplementtechnologieswhichcausetheleastamountwastetotheenvironmentinaccordancewithtechnical,economicandcommercialevaluationsandtoprotectnaturalresourceswitheffectiveandefficientuseoftherawmaterials,

• Tomonitor,assessandcontinuouslyimprovetheenvironmentalimpactofprocessesinordertocontinuouslyimproveenvironmentalperformance,

• Toreducewasteatthesource,toimproveandencouragerecovery,tocollectanddisposeofwaste,

• ToinformandraiseawarenessofOYAKMiningMetallurgyGroup’sperspectiveontheenvironment,itsapplicationsandtheoutcomesitobtainsamongitssocialstakeholdersincludingemployees,customers,suppliers,societyandthestate,andtoestablishopencommunication.

OYAKMiningMetallurgyGroupbelievesthathighqualityproductionispossibleonlywithefficiency,effectiveness,recovery,zeroaccidents,environmentalsensitivityandsavings.

OYAK MINING METALLURGY GROUP HAS DEVELOPED ITS ENVIRONMENTAL APPROACH INTO A SYSTEMATIC STRUCTURE THAT IS OPEN TO INTERNATIONAL AUDIT WITH THE ENVIRONMENTAL MANAGEMENT SYSTEM.


ENVIRONMENTAL MANAGEMENT PROCESS AND ENVIRONMENTAL PERFORMANCE MANAGEMENT

The Environmental Management ProcessOYAKMiningMetallurgyGroupsuccessfullyincludesenvironmentalfactorsthatareimportantforthesteelsectorinitsmanagementstrategiesinaccordancewiththelegislationinthecountryandinlinewithinternationaldevelopments.

Inlinewiththephilosophyofcontinuousimprovementandsustainabledevelopment,theGrouphasanEnvironmentalManagementProcess,whichincludestheEnvironmentalManagementSystem.

TheEnvironmentalManagementProcessisacontinuouscycleandstartswiththefeasibilityreportsoftheinvestmentstobecarriedoutandtheequipmenttobeinstalledinalltheGroupplants.Theprocesscontinuesthroughoutthelifeoftheplant,wherethe

environmentalimpactiskeptataminimumandwhichcomplieswithenvironmentallegislation,andendswiththedecommissioningoftheplantwhenithasreachedtheendofitsoperatinglife,inaccordancewiththelegislation.

TheeffectivenessandsuccessoftheOYAKMiningMetallurgyGroupEnvironmentalManagementProcessismonitoredandevaluatedbytheProcessManagementTeamworkingincoordinationwiththeEnvironmentalManagementUnits.TheenvironmentalobjectivessetoutintheGroup’sstrategic

THE ENVIRONMENTAL MANAGEMENT PROCESS IS A CONTINUOUS CYCLE AND STARTS WITH THE FEASIBILITY REPORTS OF THE INVESTMENTS TO BE CARRIED OUT AND THE EQUIPMENT TO BE INSTALLED IN ALL THE GROUP PLANTS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

businessplansarecascadeddowntoindividualtargetsand,therefore,spreadthroughouttheorganization.

TheProcessManagementTeamplaysanimportantroleintheimplementationofimprovementworkandprojects,whicharedeterminedaccordingtotheevaluationresults,whendecisionsaremadeontheissues.

The Environmental Performance IndexTheEnvironmentalManagementProcessisanoriginalmanagementmodeldevelopedbyOYAKMiningMetallurgyGroup.The“EnvironmentalPerformanceIndex”whichexpressesthesuccessandeffectivenessoftheEnvironmentalManagementProcessinasinglenumericalindicator,alsoallowsacomparisonofpastandpresentenvironmentalperformances.

TheOYAKMiningMetallurgyGroupEnvironmentalPerformanceIndexwaspreparedonthebasisofthefollowingcriteria:• Tocorrectlydefinetheimpactsarisingfromproduction,productsandservicescorrectly,

• TodemonstratethesustainabilityoftheEnvironmentalManagementSystem,

• ToevaluatetheimpactsoftheGroupplantsonthereceivingenvironmentintheregionswheretheplantsarelocated,

• Toincludedataconcerningtheenvironmentatthelocal,national,orinternationallevel.

ErdemirandİsdemirEnvironmentalPerformanceIndex,whichiscalculatedontheratesatwhichtargetswereachievedunderthreebasicparameters-PermitandLicenseDocument,LegislationComplianceandSuccessCriteria-isreviewedbytheProcessManagementTeam.Theseparametersarecontinuouslymonitoredandevaluatedtogetherwiththeirbreakdowns.

InlinewiththisprocesscarriedoutintheGroup,theenvironmentalperformanceisreportedtotheuppermanagement.Afterthereviewbytheuppermanagement,environmentalfactorsprioritizedbythesectorareincludedamongthemanagementstrategiesofOYAKMiningMetallurgyGroupinaccordancewithlegislationandinternationaldevelopments.

TheEnvironmentalPerformanceIndexalsoenablesemployeestoadoptenvironmentalgoals,internalizethemandseetheenvironmentalgoalsasatarget.

The Environmental Performance Index

Environmental Permit and License Certificate

Compliance with Environmental Legislation• Recyclinganddisposalofminorandhazardouswastesincompliancewithlegalregulations

• WastewaterAnalysis• EmissionMeasurements• EIA(EnvironmentalImpactAssessment)Documents

Carriage of Dangerous Goods by Road-adaptation to ADR

Success Criteria• WaterManagementandRecirculationWater

• SolidWasteRecoveryRate• SustainabilityoftheTSENISO14001:2015certification

• EnvironmentalInvestments• TrainingandSocialActivities



Erdemir Environmental Performance Index

Environmental Performance and Realization Status of Sustainability Goals

94%

92%

90%

88%

86%

84%

82%

80%

%100

%90

%80

%70

%60

%50

%40

%30

%20

%10

%0

İsdemir Environmental Performance Index

2013

2013

86.6

73

88.7

75

87.2

89

90

93

92.2

89

91.3

78

91

95

86

82

86

82

86

86

86

86

89

89

Realized Target

Realized Target

2014

2014

2015

2015

2016

2016

2017

2017

2018

2018

The OYAK Mining Metallurgy Group takes initiatives and conducts comprehensive studies to systematically reduce its direct and indirect effects on the environment.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Erdemir Environmental Performance Index for 2018

Criterion 2015 Actual Realization

(%)

2016 Actual Realization

(%)


(%)

2018 Targets (%)


(%)

CompliancewithEnvironmentalLegislation

100 100 100 100 100

RecirculationWaterRatio

91.6 92 92 91 92.5

SolidWasteRecoveryRate

72.1 72.3 80.1 80 86.4

Sustaining TS EN ISO 14001:2015 Management System Activities

ActualRealizationsoftheTargetedEnvironmentalInvestments

100 100 100 100 100

SustainingTSENISO14001:2015Certificate

100 100 100 100 100

İsdemir Environmental Performance Index for 2018

Criterion 2015 Actual Realization

(%)


(%)


(%)

2018 Targets (%)


(%)

CompliancewithEnvironmentalLegislation

100 100 99.06 100 100

RecirculationWaterRatio

95.5 95 94.64 94.7 94.79

SolidWasteRecoveryRate

57.2 57.7 59.71 58.5 56.31

Sustaining TS EN ISO 14001:2015 Management System Activities

ActualRealizationsoftheTargetedEnvironmentalInvestments

100 100 38 100 100

SustainingTSENISO14001:2015Certificate

100 100 100 100 100



• Environmental Permit and License CertificateThevalidityofErdemirandİsdemir’sEnvironmentalPermitandLicenseCertificate,whichwasobtainedfromtheMinistryofEnvironmentandUrbanizationin2015,onWastewaterDischarge,AirEmission,1stClassOrganizedStorage,WasteAcceptanceFacilityandNon-hazardousWasteRecovery,wasextendedin2018.

• Compliance with Environmental LegislationErdemirandİsdemircloselymonitorstherealizationratesofwastewateranalysis,emissionvalues,wastedisposalmethods,legislationcomplianceandtheEnvironmentalImpactAssessmentofinvestments.SomeoftheactivitiesthattheGrouphasundertakenwithinthisscopearelistedbelow:

Solid Waste Recovery RatesOYAKMiningMetallurgyGroupaimstogenerateeconomicvalueandsavenaturalresourcesbyrecoveringallwastesreleasedfromitsprocesses.

TheGroupconductsvariousactivitiesaimedatminimizingwasteoutputandmaximizingrecoveryrates.Wastethatcannotberecycledisgiventoauthorizedcompanieswithintheframeworkofthelawsandregulations.

In2018,asolidwasterecoveryrateof86.4%wasachievedatErdemiranda56.31%solidwasterecoveryratewasachievedatİsdemir,bydeliveringminorandhazardouswasteforrecoveryandtocompaniesproducingalternativefuelsfromsolidwaste,aswellasbyusingsomeofthewasteasrawmaterials.

Asaresultofsendingwasteontheminorwastesiteforrecovery,atotalofTL2,471,930ofresourceefficiencywasrealizedatErdemirandTL8,804,977atİsdemir.

Atotalof332,000tonsofrawmaterialwassavedinthesinterplantsin2018atErdemir,byusing452,111tonsofwastematerial.ThemonetaryequivalentoftheresourcessavedamountedtoaboutUSD10.6million.

Atİsdemir,ontheotherhand,281,717tonsofrawmaterialsweresavedbyusing253,485tonsofwastematerial.

Inaddition,in2018,itwasmadepossibleforthewastestobetakenintotheby-productcategoryortobeusedasrawmaterialalternativeinotherindustriesbyobtainingthecertificatesofconformitywithTSEstandards.

Inthescopeoftheby-productcertificationworkatErdemir,thesurveillanceauditsoftar,ironoxideandsteelslagwhichwerecertifiedtoTSEstandardandpassedintotheby-productcategorywerecompletedandthedecisionwastakentocontinuethedocumentation.

WiththeletterpreparedbytheMinistryofEnvironmentandUrbanizationdated25September2018andnumbered51475790-145.02-E165621,IronOxidewasdeemedsuitableasaby-productaccordingtotheTSENISO1248standard.(ThedocumentrequestedbytheMinistryduringtheunifiedenvironmentalauditin2018.)

OYAK MINING METALLURGY GROUP AIMS TO GENERATE ECONOMIC VALUE AND SAVE NATURAL RESOURCES BY RECOVERING ALL WASTES RELEASED FROM ITS PROCESSES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Steel Slag RecoveryTheComplianceCertificateswereobtainedin2016followingapplicationssubmittedtotheTSEtousesteelslagforthefollowingpurposesatErdemir.

• Aggregatesfornon-bindingandhydraulicbindermaterialsusedincivilengineeringworkandroadconstruction

• Aggregatesforbituminousmixturesandsurfacetreatmentsforroads,airfieldsandothersurfacessupportingtraffic

• Concreteaggregates

Subsequently,theMinistryofEnvironmentandUrbanization,theGeneralDirectorateofEnvironmentalManagementdeclaredthatitwouldbeappropriatetomakeuseofslagwhichwascertifiedforitsconformitytothestandardssetoutbelow,asaby-productinroadconstructionasspecifiedinthestandards,providedthatthenecessarymeasuresweretakeninordertostock,transportandusetheslagtoprotectenvironmentalandhumanhealth.

• TSEN13043/Aggregatesforbituminousmixturesandsurfacetreatmentsforroads,airfieldsandothersurfacessupportingtraffic

• TSEN13242+A1Aggregatesfornon-bindingandhydraulicbindermaterialsusedincivilengineeringworkandroadconstruction

CompliancewiththerequirementsrequiredtoobtaintheCEcertificateforsteelslag,whichisoneoftherequirementsfortheuseofsteelslagonthehighway,wasdocumentedfollowingtheTSIinspection.

In Sinter Factory, a total of 193,254.79 kg of Steel Slag was used.Aftertheslaggeneratedduringthesteelproductionprocesswasusedinthecementsectorasarawmaterialalternative,atotalof159,384tonsofsteelslagwassenttoÜnyeCementin2018,thusprovidingslagforuseasfuelderivedfromwasteandasanalternativerawmaterial.

Residual UsageIn2018,4,041woodenpalletpackages,whichcamewithrefractorymaterialspurchased,werereturnedtothecompanywithinthescopeofthedepositapplicationwiththecontributionsofthePurchasingandRefractoryDirectorates.

Blast Furnace Steel Filter CakeAccordingtotheCommuniquéonwaste-derivedfuelandalternativerawmaterials,62,441tonsofblastfurnacesteelworksfiltercakesweresenttotheexternalstakeholders.

Withinthescopeoffeasibilitystudiescarriedoutwithresidues,wasteswillbetreatedandrecycledwhileensuringcompliancewithenvironmentallegislationandeliminatingtheshortageofspaceinwastestockareas.

Ontheotherhand,asaresultoffeasibilitystudyintotheutilizationofsteelslag,itwasfoundthatthemostsuitableconsumptionmethodwastousetheslaginquestionasasinterinputmaterial,aswellasbeingsoldtothecementsectoranddirectlytothirdparties.

AS A RESULT OF FEASIBILITY STUDY INTO THE UTILIZATION OF STEEL SLAG, IT WAS FOUND THAT THE MOST SUITABLE CONSUMPTION METHOD WAS TO USE THE SLAG IN QUESTION AS A SINTER INPUT MATERIAL.



Glass and Paper Waste Bin Distribution and Collection ProjectThe“GlassandPaperWasteBinsDistributionandCollectionProject”waslaunchedwiththesixpilotunitsinordertoreducewasteatitssourceandtoimproveandpromoterecovery.Theprojectwasrolledoutcomprehensivelyin2018withwastebinswidelyprovided.Withinthescopeoftheproject,atotalof573kgofglass,925kgofA4paperand514kgmagazinesandbookswerecollectedfromthewastebins,provinganimportantcontributiontoimprovingwasteefficiency.

Atotalof2,620woodenpallets,usedtoboxrefractorymaterialscomingfromtheRefractoryDirectorate,werereturnedtotheKümaşCompanyandtheywererecovered.

Thenumberofwastecollectionpointsatİsdemirwasincreasedin2018.Atotalof124paper,113plasticand101glasswasteboxesand14wastebatterycollectionboxes,whicharesuitableforofficeuse,weredistributed.Inadditiontothis,atotalof29paper,29plasticand24glasswastecollectionbarrelswereinstalledontheoperationsite.

Thus,in2018,84tonsofpaper,threetonsofglassand117tonsofplasticwerecollectedforreuse.

InErdemir,paperandglasscollectioncontainersweresetupandproducedwithErdemirfacilitiesand136tonsofpaperwascollectedbycontributingtotherecyclingofthesematerials.

Amount of waste recovered for Recycling at Erdemir and İsdemir and brought into the economy in 2018

Type of Waste Amount of Waste (tons/year)

Erdemir İsdemir

PlasticWastes 147 117

WoodWastes 1,922 1,859

PaperWastes 136 84

ConveyorBelts 142 392

ElectronicWastes 38 213

SliderPlate/RefractoryBrick ReusedintheSteelWorksprocesses

9,472

MetalWastes 91 -

WasteCable 112 94

Glass 2.6 3

End-of-LifeTires 42 55

PackagingWastes 60 544


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Hazardous Waste OYAKMiningMetallurgyGroupfulfillslegalrequirementsforhazardouswasteproducedduringthecourseofitsoperations,bothforitsplantsanditssuppliers,andcarriesoutnotificationsinatimelymanner.

In2018,atİsdemir,theDangerousGoodsSafetyAdvisorandErdemirprovidednotificationoftheDangerousGoodsSafetyAdvisortotheMinistry.Unitvisits/auditswereundertakenandproactivemeasuresweretaken.Allhazardousmaterialsenteringthefactoryinbulkformandwhichwerepackedwerereceivedunderthecontrolofthefrontdeskuponenteringthesite.

WastetransformerswithPolyclorideBiphenyl(PCB)arestoredinappropriateareasattheErdemirplants.TheprojectfortheRemovalofPOPsResiduesandReductionofPOPsEmissionswascarriedoutinpartnershipwiththeUnitedNationsDevelopmentProgram(UNIDO),theUnitedNationsDevelopmentandIndustryOrganizations(UNDP)andtheMinistryofEnvironmentandUrbanization.AccompaniedbytheofficialsoftheAcademyEnvironmentandPolyecoCompany,whichwonthetender,44transformerswithPCBsand15tonsofPCBoilin60barrelsweresentfordisposal.

Water Management and Recirculation of WaterInlinewithitsgoalofmanagingitswaterfootprintandreducingwastewaterdischarges,theOYAKMiningMetallurgyGrouppreparesitsmanagementplanswithanawarenessoftheimportanceofrecovering95-98%ofthewaterusedandtopreservetheenvironmentalcapitalofwater,airandsoil.

TheGroupcarriesoutworktomaximizetherateofrecirculationofwaterusedduringtheproductionprocessesofErdemirandİsdemir.TheactionplansinthemonthlyenvironmentalreportsaresubmittedtotheBoardofDirectors.

AtErdemir,whichreceivesitsentirewaterneedsfromreservoirs,aproportionofthewaterisdivertedtodrinkingwaterfacilitieswherecleanwaterispipedtohomes,whiletherestisdirectedtoproductionpointstobeusedintheprocessesasservicewater.Theplantshaveclosedcircuitcirculationsystemsinordertopreventtheformationofwastewaterandtoreducewateruse.

Onlinemeasurementswerecarriedoutin2018fortheparametersspecifiedintheContinuousWastewaterMonitoringSystemsCommuniquéwiththeContinuousWastewaterMonitoringSystemsinstalledattheChemicalWastewaterTreatmentPlant,thePowerPlantCoolingWater,the1stand2ndBlastFurnaceCoolingWaterdischarges,and93.3%ofthedatawasconveyedtotheMinistry.

TheContinuousWastewaterMonitoringSystemsintegratedcomparisontests,whichisperformedeverythreemonthsatErdemirandİsdemir,werecarriedoutwiththeProvincialDirectoratesofEnvironmentandUrbanization.Inordertomonitorthetemperatureofcoolantwaterextractedfromtheseaforuse

AT İSDEMİR, THE RATIO OF RECOVERED WASTE MATERIALS (1,131,879 TONS) USED IN STEEL PRODUCTION (5,631,891 TONS) WAS 20.09%.



inthe1stand2ndBlastFurnacesinthePowerPlantatErdemir,temperaturesensorswereinstalledatvariouspointsinthenorthcollectorandthesouthcollectoronthewaterintakestructure.AllresultsweresenttotheMinistryofEnvironmentandUrbanizationdatabase.ThetemperaturedataismonitoredinrealtimebytheMinistryofEnvironmentandUrbanization.

In2018,atotalof413,457,995m3ofwaterwasrecirculatedatErdemirand693,020,533m3atİsdemir.

ThefollowingprojectswerecarriedoutinthefieldofwatermanagementatErdemir’sfacilities:

RenewaloftheHSMF2CoolingTower

DAFCapacityIncreaseandModernization

CoolingTowerConstructionfortheFloorSystem

CommissioningoftheSteelWorksGasWashingWaterSludgeDewateringPlant

ServiceWaterSludgeDewateringProject

SupplyOfAdditionalFilterPressUnitForChemicalTreatmentPlant

Intheprojectforthecommissioningofthesteelsludgedewateringplantofthegaswashingwater,theratioofSuspendedSolidsinwastewaterdischargedinthesouthcollectorwasreducedandrecovered.In2018,33,600tonsofsteelsludgewasdewateredandtheamountofsludgewasreducedfrom202,680tonsto141,400tons.

Wastewater AnalysisAtOYAKMiningMetallurgyGroupplants;thepH,temperature,chemicaloxygendemand,suspendedsolids,conductivityanddissolvedoxygenparametersandemissionmeasurementsarerealizedatthewastewaterandcoolingwaterdischargepointsthroughtheContinuousWastewaterMonitoringSystems.TherelatedresultsaremonitoredbytheMinistryofEnvironmentandUrbanizationasrequiredbytheRegulationonWaterPollutionControl.

Theanalysesthataremadeonthesamples,whicharetakenwithinthescopeofinternalmonitoringwithincertainperiodsbytheaccreditedlaboratory,arereportedtotheProvincialDirectorateofEnvironmentandUrbanization.Inaddition,dailyanalysesarecarriedoutintheenvironmentallaboratorieslocatedwithintheplants.

Emission MeasurementsOYAKMiningMetallurgyGroupmonitorsgreenhousegasemissionsinaccordancewithTurkey’slegislationofmonitoring,reportingandverification,andcontinuesitssystematicworksfortheimplementationofgreenhousegasreductionmechanisms.

InaccordancewiththeRegulationontheControlofIndustrialAirPollution,thecomplianceofthefluegasesatOYAKMiningMetallurgyGroupplantswiththelimitvaluesareperiodicallymonitored.

AT OYAK MINING METALLURGY GROUP PLANTS, DAILY WASTEWATER ANALYSES ARE CARRIED OUT IN THE ENVIRONMENTAL LABORATORIES LOCATED WITHIN THE PREMISES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

TheContinuousEmissionMeasurementSystemsareconstantlymonitoredinconnectiontothedatanetworkoftheMinistryofEnvironmentandUrbanization.Theaccreditedlaboratoryconductsemissionmeasurementsateveryflueonaregularbasiseverytwoyears.

InlinewiththeErdemirandİsdemirgreenhousegasmonitoringplans,forwhichapprovalwasobtainedfromtheMinistryofEnvironmentandUrbanization,theGrouptakespartinworkshopswherethesuitabilityofreductionmechanismswithTurkey’sconditionsisevaluated.

Carbondioxideconcentrations(tonsofCO2 pertonofcrudesteel),whichrepresenttheparameteroftheenvironmentalperformancemonitoring,aremonitoredonamonthlybasisandthisisadoptedasthereductiontarget.

• Success Criteria

The Sustainability of the TS EN ISO 14001:2015 CertificateAtErdemirandİsdemir,TheTurkishStandardsInstitute(TSE)conductedthetransitionauditoftheISO14001EnvironmentalManagementSystemtothe2015version.Erdemirandİsdemirwerethefirstcompaniesinthesectortohavetransitionedtothenewversionof14001EnvironmentalManagementSystem.

• Thescope,context,therelatedpartiesandtheirneedsandexpectationsoftheErdemirEnvironmentalManagementSystem,internalandexternalissuesandrisksandopportunitiesweredeterminedandrelateddocumentswerecreatedorrevised.

• IntegratedInternalAuditortrainingwasofferedinadditiontothetrainingontheISO14001:2015EnvironmentalManagementStandardprovidedfortheunit’senvironmentalrepresentativesandtheinternalauditorsoftheEnvironmentalManagementSystem.Internalauditswerecarriedoutsuccessfully.

• Theprocess-basedEnvironmentalAspectandImpactAssessmentstudieswereexaminedbytakingintoaccounttherequirementsofISO14001:2015andtherisksandopportunitieswereincludedaftercarryingoutrevisionsfromalifecycleperspective.

ERDEMİR AND İSDEMİR WERE THE FIRST COMPANIES IN THE SECTOR TO HAVE TRANSITIONED TO THE NEW VERSION OF 14001 ENVIRONMENTAL MANAGEMENT SYSTEM.



CO2 DensityWitheffortstotackleclimatechangegainingevergreaterimportanceandadaptingtoalowcarboneconomybecominginevitable,policiesandplansthatcanbringaboutanewandglobal-scaleimpacthavebeenintroduced.

OYAKMiningMetallurgyGrouponceagaincalculatedCO2emissionsandsubmittedthemtotheMinistryin2018.

AtErdemir,life-longassessmentworkcontinuedwiththeR&DDirectorate.TheBlastFurnaceCleanProductionandSinterLCAoperationwascompleted.

Operational excellence at İsdemirTheOptimizationofSO2EmissionsintheHotRollingFurnaceBurnersChimneysproject,whichgotunderwayin2018andwascarriedoutastheoperationalexcellence(OPEX)projectinİsdemir,wascompletedsuccessfully.

Withinthescopeoftheproject,theprocessparametersoftheheatingfurnaceaffectingSO2emissionsweredetermined.TherelationshipbetweentheseparametersandtheamountofSO2inthefluegaswasmodeled.Themodelwaspreparedwiththeaimofachievingthemaximumuseofby-productgasesbycomplyingwiththelimitvaluesdeterminedforheatingfurnacesintheRegulationonControlofIndustrialAirPollution.Emissionvaluesandlimitvalueswereintegratedintotheoperatorscreensoftheheatingfurnaces,andmoreenvironmentallyfriendlyproductionwasachieved.

Training and Social Activities

OYAK Mining Metallurgy Group has adopted an environment approach that aims to raise awareness and sensitivity about the risks that threaten the future of our world and humanity, particularly climate change.

OYAKMiningMetallurgyGroupcontinuedtoprovideitsemployeeswithtrainingontheGroup’senvironmentalapproachandtheenvironmentalimpactsofitsactivitiesin2018.

AtErdemir;• WithintheframeworkofthetrainingtoraiseEnvironmentalAwareness,atotalof577hourly-salariedemployeesand62monthly-salariedemployeesreceivedenvironmentalawarenesstrainingonissuessuchasmajorindustrialaccidents,globalwarming,wastemanagement,theimportanceofrecyclingandtheErdemirEnvironmentalManagementSystem.

• 1,295sub-contractoremployeeswereprovidedwithawarenesstrainingsabouttheISO14001EnvironmentalManagementSystemandwastemanagementatErdemir.

OYAK MINING METALLURGY GROUP CONTINUED TO PROVIDE ITS EMPLOYEES WITH TRAINING ON THE GROUP’S ENVIRONMENTAL APPROACH AND THE ENVIRONMENTAL IMPACTS OF ITS ACTIVITIES IN 2018.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Atİsdemir;• EnvironmentalAwarenessandEnvironmentalManagementatİsdemirtrainingsweregivento48employees

• Sharingmeetingsonenvironmentalactivitieswereorganizedwiththeparticipationofmonthly-andhourly-salariedemployeesatthemainplantunits.Thesemeetingsaddressedissuessuchascorrectwastedisposalandtheimportanceofwasterecovery.Inaddition,474employeeswereprovidedwiththetrainingonsensitivitytotheenvironment.

• WithinthescopeofEnvironmentalManagementSystem14001:2015transitionwork,TSENISO14001:2015EnvironmentalManagementSystemAwarenessTrainingwasprovidedto65employeesandTSENISO14001:2015EnvironmentalManagementSystemBasicTrainingwasprovidedto132employees.

Inaddition,thankstotheactivitieslistedbelow,furtherknowledgehasbeenaccumulatedthatcanbedeployedtodevelopapplicationscompliantwiththelegislation.• TheNationalAuthorization,Audit,LaboratoryandEnvironmentalOfficerWorkshop,inwhichoneemployeetookpart

• EnvironmentalTechnologiesSpecializationFair,inwhichthreeemployeestookpart

• TheLatestStatusintheMining,EnvironmentandForestryLegislation,andtheApplicationsSeminar,inwhichtwoemployeestookpart

Non-Corporate Training Activities

• Atotalof52childrenintheEreğliFilizkindergarten,theEreğliGoncanurseryandtheErdemirChildCareNurseryweregivenlessonstoraisetheirenvironmentalawareness.

• LessonsandpracticalrecyclingactivitiesaimedatraisingenvironmentawarenesswereprovidedattheDemirÇelikNurserySchool.EnvironmentalfestivalswereorganizedinthesiteregionaspartofWorldEnvironmentDayonJune5thandWorldCleanupDayonSeptember15th.Wastecollectionandseparationactivitieswereorganizedwiththeparticipationofemployees,membersofthecommunityandschoolpupilsintheresidentialarea.

OYAKMiningMetallurgyGroupcontinuestocarryoutenvironmentalawarenesstrainingandcooperationwithschoolsinordertoraiseenvironmentalsensitivityamongtheyoung.


CLIMATE CHANGE AND ENERGY MANAGEMENT

THE OYAK MINING METALLURGY GROUP’S POLICY ON CLIMATE CHANGE

Climatechange,whichisamongthemostimportantproblemsfacingustoday,hasaprofoundimpactontheglobaleconomy.AccordingtotheGlobalRisksReportpresentedattheWorldEconomicForum,climatechangeandextremeclimateeventsareamongthemostseriousglobalrisksfacingourplanet.

Thesteelindustryhasanimportantroletoplayinthefightagainstclimatechange.InparallelwiththeParisAccord,webelievethatlimitingtheglobalriseintemperaturetolessthan2degreesiscrucial.Weareawareoftheimportanceofsteelinthetransitionto

alow-carboneconomyandafuturewhereresourcesareusedefficiently.InlinewiththeSustainableDevelopmentGoals,wearecommittedtocontributingtothe13thClimateActionand12thSustainableProductionandConsumptiontargets.

AsTurkey’sbiggeststeelproducer,wehaveimportantresponsibilitiesinthefightagainstclimatechange.Byadoptingacyclicaleconomyapproach,weaimtoensureenergyandmaterialefficiencyandtocontributetosustainabledevelopment.Weaimtoreduceourcarbonfootprintandprotectourcompetitivepowerbycontinuouslydevelopingourintegratedproductionfacilitiesinlinewithnewtechnologies.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Climate change is one of the most important issues on today’s global agenda.

Theeffortstotackleclimatechangerequirecarbon-reducingorsubstitutingtechnologiestoberapidlyrolledoutaroundtheworld.

Itisprojectedthattheworldwillhavetoproducetwiceasmuchenergyin2050asitdoestodayinordertosustainglobaleconomicgrowth;thuskeepingcarbondioxide(CO2) concentrationsatmanageablelevelswillbeofparamountimportancegoingforward.

Totalgreenhousegasemissionshavesurgedsincethe1950s,whenindustrializationgainedmomentum.Governments,corporationsandNGOsachievedabroadconsensusregardingthissituationwhichcouldthreatenthefutureofhumanityiftheincreaseingreenhousegasemissionscontinueatthesamerate,andhavesteppeduptheireffortstotackletheproblem.

ClimatechangeisoneofthefactorsshapingtheenvironmentalunderstandingofOYAKMiningMetallurgyGroup.

OYAKMiningMetallurgyGroupfollowsanapproachthatoverseestheenvironmentalandsocialissuesandreducestheimpactsattheirsourcethroughitsproductionpolicy,whichcontributestoeffortstotackleclimatechange.

TheGroupisconstantlyimprovingitsawarenessofclimatechange.Itcontributestotheprocessthroughthestepsithastakenandtheextensiveinvestmentsithasundertakeninthisfieldanddemonstratesthatitisactivelyinvolvedinthefightagainstclimatechange.

TheGrouptakesintoaccountallthefuelandrawmaterialswhichcontaincarbonandtheircarbonamountwhencalculatingCO

2 volumes.Carbondioxidedensity(tonsofCO2/tonsofcrudesteel),whichistheparameterofenvironmentalperformancemonitoring,ismonitoredonamonthlybasis.AdoptingthetargetforCO2reduction,theGroupanalysestheamountofCO2generatedbytheprojectsitwillinvestin.

Erdemir and İsdemir again meticulously fulfilled their legal requirements set out in environmental regulations in 2018.• TheGreenhouseGasEmissionReportforbothErdemirandİsdemirfor2018wereapprovedbytheverifyingorganizationanduploadedtotheMinistrysysteminaccordancewiththeRegulationontheAmendmentoftheRegulationontheEstablishmentofGreenhouseGasEmissions.

• InlinewiththeobjectiveofmonitoringofinternationaldevelopmentsregardingclimatechangeandensuringtheirintegrationintotheGroup’splans,theGroupparticipatedinallworkshopsheldundertheEmissionsTradingSystem(ETS)andthePartnershipforMarketReadinessforCarbonMarkets(PMR)TurkeyProjectorganizedbytheMinistryofEnvironmentandUrbanization,andtheopinionsweredelivered.

OYAK MINING METALLURGY GROUP FOLLOWS AN APPROACH THAT OVERSEES THE ENVIRONMENTAL AND SOCIAL ISSUES AND REDUCES THE IMPACTS AT THEIR SOURCE THROUGH ITS PRODUCTION POLICY.


CLIMATE CHANGE AND ENERGY MANAGEMENT

OYAK Mining Metallurgy Group works to minimize energy losses with systematic measurement and monitoring.OYAKMiningMetallurgyGroupcontributestotheconservationofnaturalresourcesandtheenvironmentthroughitsworkontheefficientuseofenergy,whilealsogainingacompetitiveadvantage.TheGroupcompaniesareworkingtoimplementtechnologicalinnovationsthatincreaseenergyefficiency,tomaximizethebenefitsofwasteheatandby-productgases,andtominimizeenergylossesthroughsystematicmeasurementsandmonitoring.

Asaresultofsystematicstudiesaimedatenergyefficiency,highlevelsofenergysavinghavebeenachieved.

Erdemirandİsdemir,bothGroupcompanies,haveachievedsuccessfulresultsinspecificenergyconsumption,whichisoneoftheimportantperformanceindicatorsintheironandsteelsector.Erdemir,İsdemirandErdemirRomania,whichhavethecapacitytogeneratealmostalloftheelectricitytheyuse,implementtheTSISO50001EnergyManagementSystem.

Erdemir and İsdemir continuing to provide training on energy saving, efficiency and cost management to their employeesErdemirandİsdemir,whichconsiderpeopletobethemostdecisivefactorinthesuccessoftheireffortsinthefieldofefficientresourceutilizationandenergyefficiency,continuedtoprovidetrainingonenergysaving,efficiencyandcostmanagementin2018.

Trainingonenergysavings,efficiencyandcostmanagementcontinuedtobeprovidedtoemployeesinthefieldsofefficientresourceutilizationandenergyefficiencyin2018.Thistrainingwasprovidedto34hourly-salaried,17monthly-salariedemployeesinErdemirin2018,bringingthenumberofpersonneltohavereceivedthetrainingprogramssince2007to4,881.In2018,atotalof51employeesreceivedthe1-daySteamSystemsPracticalTrainingin3semesters.Participantspracticed

attheKondenstop(SteamTrap)unitwhichwascreatedtoturnacquiredtheoreticalknowledgeintopractice,afterreceivingtheoreticaltrainingonthecharacteristicsofsteam,steamproduction,energyresourcesusedforsteamproduction,distributionlines,steamequipmentandthermalinsulationforenergyrecovery.

Inaddition,the1-dayPracticalTrainingprogramonCombustionandIgnitionSystemswasgivento17employeesontwooccasions.Participantswereprovidedwithbasicinstructiononcombustion,combustiontypes,industrialcombustionsystems,feasibleandefficientimprovementsinenergysaving.EnergyManagementSystemadaptationtrainingwasprovidedto132newlyrecruitedemployeestoraisetheirenergyawareness.

In2018,threeengineersreceivedEnergyManagementCertificateTraining,takingthetotalnumberofcertifiedengineersinErdemirto32.InErdemir,atotaloffourpersonnelholdaSurveyandProjectCertificate.

Inİsdemir,509peoplereceivedtrainingon“EnergyManagementSystemandImplementationsatİsdemir”in2018,primarilyworkerspaidonanhourly-basise.g.shiftsupervisorsandshiftsuperintendents.TrainingprogramscoveringenergyconsumptioninTurkeyandintheworld,İsdemir’senergyconsumptionamounts,theapplicationsforsavings,efficientuseofenergy,actionstoachievesavingsandlowercostsofenergycontinuein2019inabidtoincreaseawareness.TheEnergyManagementSystemAdjustmentTrainingprogramwasprovidedto85newemployeestoraiseawarenessofenergyefficiency.

Bytheendof2018,atotalof25İsdemiremployeeswhoparticipatedinthetrainingprogramsprovidedbyauthorizedinstitutionsandawardedtheirEnergyManagementcertificate,basedontheirresultsinthecentralexamination,withsevenemployeesreceivingtheIndustrialResearchProjectCertificates.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Participation in a wide array of national and international environmental projectsİsdemirassumedtheroleofpilotfacilityinthe“determinationofcleanproductionopportunitiesandapplicabilityinindustry”projectcarriedoutbytheMinistryofEnvironmentandUrbanization(SANTEM)andTÜBİTAKontheexaminationofcleanproductionopportunitiesinthesteelindustry.

ByworkingjointlywiththeTÜBİTAKteam,sectoralregulatoryimpactanalysiswillbecarriedout,incentiveandfinancingmodelswillbedevelopedandthemanagementplanreportwillbepublishedbyinvestigating“applicabilityofthebesttechniquesavailable”inironandsteelproductionprocessesatİsdemir’splants.

ThefinalreportoftheDeterminationofCleanProductionOpportunitiesandApplicabilityintheIndustryProjectcarriedoutincooperationwithTÜBİTAK-MAMandtheMinistryofEnvironmentandUrbanization,wherethebesttechniquesavailableinthesectorwereexamined,waspublishedin2018.

Ontheotherhand,theGroupparticipatedinstudiestoimprovethemethodsofironandsteelgreenhousegasemissioncalculationwithinthescopeoftheTechnicalAssistanceProjecttoSupporttheMechanismofMonitoringTurkey’sGreenhouseGasEmissions(TASKGHG),whichiscarriedoutbytheEuropeanUnionandtheTurkishRepublicMinistryofEnvironmentandUrbanization,withreportscalculatedannuallybytheTurkishStatisticalInstitute(TurkStat)andsubmittedtotheSecretariatoftheUNFrameworkConventiononClimateChange(UNFCCC).

WithinthescopeoftheStockholmConventiononPersistentOrganicPollutants(POPs),İsdemirwasoneofthepartiestotheProjectontheEliminationofPOPsRemnantsandReductionofPOPsEmissionsconductedtoinvestigatethecurrentsituationandcapacitybuildinginTurkey.SupportfromtheGlobalEnvironmentalFund(GEF)wasprovidedfor

theprojectcarriedoutincooperationwiththeMinistryofEnvironmentandUrbanization,theUnitedNationsDevelopmentProgram(UNDP)andtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO).

Withinthescopeofthe“CurbingtheReleaseofUndesiredPOPsinProduction”componentoftheproject,trainingprogramswereorganizedforpriorityindustrialsectorsinİskenderunin2017.AfieldvisittookplacetoİsdemirwiththeparticipationofsectorexpertsandtheMinistryofEnvironmentandUrbanization.

UnintentionalPOPsemissionsmayoccurintheintegratedironandsteelproductionprocessinironsinteringplants.Inordertosupportthecapacitydevelopmentoftheproject,emissionmeasurementswerecarriedoutin2017atİsdemir’sSinterPlants.InvestmentsinthemodernizationoftheElectrostaticPrecipitator(ESP)dustcollectorsysteminstalledinthe1stand2ndSinterPlantsandmodificationofthedusttransportsystemswererealizedsimultaneously.ThetechnicalexpertsdeterminedthattheseinvestmentshadcontributedtothereductionofPOPsemissions.AgrantofUSD150,000fortheseinvestmentswasapprovedbyUNIDOin2018fromtheGlobalEnvironmentFund’sbudgetforthemetallurgicalsectoroftheproject.

BeingpartytotheprojecthasenabledthedevelopmentofnationalemissionmitigationplansforPOPsemissionswithmeasurementandreporting.İsdemir’scontributionsandcomplianceofthemeasurementresultstothelimitvaluesstatedintheEuropeanUnionBestAvailableTechniquesdocumentsareincludedintheprojectresultsreports.

THE GROUP PARTICIPATED IN STUDIES TO IMPROVE THE METHODS OF IRON AND STEEL GREENHOUSE GAS EMISSION CALCULATION WITHIN THE SCOPE OF THE TECHNICAL ASSISTANCE PROJECT TO SUPPORT THE MECHANISM OF MONITORING TURKEY’S GREENHOUSE GAS EMISSIONS (TASK GHG).


BIODIVERSITY

“Let the Fields Be Ploughed and the Tradition Continue” projectErdemirrealizedtheproject“LettheFieldsBePloughedandtheTraditionContinue”withtheaimofincreasingproductionandencouragingthecultivationofOttomanStrawberries,whichhavebecomesynonymouswithKaradenizEreğliregion,buttheproductionofwhichhaddiminishedovertheyears,andcontributingtobiodiversityandtheprotectionofspeciesnativetotheregioninwhichtheCompanyoperates.

Theprojectwaslaunchedattheendof2016inordertoprovideasustainablemodelwithitscontent,goalsandcooperation.

OneofthemostimportantproblemsinthecultivationoftheOttomanStrawberry,whoseproductionhadbeengraduallydecreasing,wasprovidingqualityseedlings.WiththecontributionsoftheAssociationofDisseminationofOttomanStrawberriesandtheProtectionofProducersandtheDirectorateofFood,AgricultureandLivestockintheEreğliDistrict,atotalof50seedlingsobtainedasa

“LET THE FIELDS BE PLOUGHED AND THE TRADITION CONTINUE” PROJECT WAS LAUNCHED IN ORDER TO PROVIDE A SUSTAINABLE MODEL WITH ITS CONTENT, GOALS AND COOPERATION.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

resultoftheresearchcarriedoutinthevillagesoftheregionweresenttoculturelaboratoriesinAntalyatobereproduced.ThelocalOttomanStrawberryseedlingsobtainedfromtheregionweregrowninculturelaboratories,andhencethefirststepwastakentoprotectthespecies.

Thelandprovidedasaproductionareawithinthescopeoftheprojectwasrenderedsuitableforplantingwiththesoilenrichmentmethod,anirrigationsystemwasestablishedandtheseedlingsobtainedinthelaboratorystartedtobereproduced.Theprimaryschoolbuilding,whichwasinastateofdisrepair,wastransformedintoatraininghallandawalkinbox(coldroom)wasestablishedfortheprotectionoftheseedlings.

Inthespringof2017,atotalof5,000seedlingswereplantedinthefielddeterminedastheproductionarea.Thenumberofseedlingsincreasedto15,000,focusingonseedlinggrowthinsteadoffruitproductioninthefirstyearandtheseseedlingswereagainplaceinthesoilintheautumnofthesameyearfortheproductionoffruit.Thefirstfruitharvestwasrealizedin2018.Inaddition,trainingwasprovidedtointerestedfarmers,and10,000seedlings,whichwerereproducedandprotectedinthewalkincoldroom,weredistributedto20volunteergrowersselectedby

theProvincialFood,AgricultureandLivestockAdministration.Communicationandtrainingactivitieswerecarriedoutinordertoraiseawarenessofthisfruitwhich,despitedwindlingsupplieshasalwaysverymuchbeenindemand,inordertoofferencouragementtogrowersandtoensuretheworkwasperformedwiththecorrectproductiontechniques.

Thegeneraldecreaseofagriculturalproductioninourcountryand,inparallelwiththis,intheregion,thesupportfordifferentagriculturalproductsthroughagriculturalincentives,thelackofknowledgeofagriculturalmethodsamongfarmers,thelackofqualityseedlings,thedelicatenatureoftheproduct,andthelimitedshelflifeweretheriskfactorsfortheproject.WiththesupportoftheAssociationofFood,AgricultureandLivestockofEreğliandtheAssociationofSpreadingOttomanStrawberriesandtheProtectionofProducers,thefamiliesofvolunteerfarmerswhowillcultivateOttomanStrawberrywerereached,andanotherriskwaseliminated.

Voluntaryfarmerswhoareprovidedwithfreeseedlingsreceivedtrainingonhowtogrowtheproductbyorganizingtrainingprogramsinwhichthetraditionalknowledgeaboutthecultivationoftheproductwasenrichedwiththesharingofnewtechniquesandpractices

15,000THE NUMBER OF OTTOMAN STRAWBERRY SEEDLINGS INCREASED TO 15,000.


BIODIVERSITY

inagriculture,inordertogainthehighestyieldfromtheseedlings.Inthisway,itwasaimedtoincreaseproductivitysothatmorevolunteergrowerscouldgetinvolvedintheprojectinthecomingperiod.Thefamilieswhoreceivetheseedlingswillbeabletoreproducetheirseedlingsandensurethecontinuityofcultivation.Inaddition,seedlingswillbecultivatedintheproductionareaduringtheprojectperiodandtheseedlingswillbedistributedtothenewfamiliesinthecomingperiods.

Inadditiontotheseedlingsdistributedtothevolunteerfamilies,someoftheseedlingswereplantedontheprojectlandandworkcontinuedtowardsmoreefficientproductionofthestrawberries.

Inadditiontothenaturalfactors,whichareriskfactorsinallagriculturalproducts,thelimitedshelflifeoftheproductandthelackofinnovativeplatformsthatwillbringproducersandconsumerstogetherareamongtherisksthatmayaffectthefutureoftheproject.However,inthefuture,itishopedthatworkingonplatformswillbringproducersandthosewhocanutilizetheproducttogetherindifferentways.

Communication of the projectTheprojectstartedwithaprotocolsignedbetweenthepartnersattheendof2016.In2017,theprojectwasannouncedwithapressreleaseinAprilwhentheseedlingsproducedinculturelaboratorieswereplantedinthesoil.Projectpartnerscametogetheratcertainintervalstoevaluatethedevelopmentoftheprojectintheirmeetings.

In2018,whenthefirstfruitwasharvested,aseedlingdistributionceremonywasheldwiththeparticipationofprovincialanddistrictprotocol,membersofthelocalpressandthefamiliesofthegrowers,withthedevelopmentsregardingtheprojectdiscussedduringtheceremony.Inaddition,thenationalpresswasinformedthroughanewsletter.Aneventwasorganizedwiththeparticipationofsocialmediaopinioninfluencerstodrawattentiontotheprojectonanationalscale.TheprojectwasalsoincludedintheOYAKMiningMetallurgyGroup’sannualreportanditssustainabilityreport.

Withthecommunicationactivitiescarriedout,theannouncementofthe“LettheFieldsBePloughedandtheTraditionContinue”projectonalocalandnationalscalewasrealized,highlightingthecultivationoftheOttomanStrawberry.TheHarvestEventwascovered

SOME OF THE OTTOMAN STRAWBERRY SEEDLINGS WERE PLANTED ON THE PROJECT LAND AND WORK CONTINUED TOWARDS MORE EFFICIENT PRODUCTION OF THE STRAWBERRIES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

in21publications(10nationaland11Local)includingtheHabertürk,Star,Milliyet,Sözcü,YeniŞafak,Dünya,Akşam,Vatan,CumhuriyetandTürkiyenewspaperswiththeheadline“SteelProtectionByErdemirfortheHistoricalOttomanStrawberryofEreğli”,withthecoveragebroughtto3,528,003readers.Withover100digitalmediaimages,theInstagramsharesbytheinfluencersreceivedmorethan33,000likes,andthe144storieswereaccessed1.5milliontimes.Atotalof5millionhitswereachievedthroughthecommunicationefforts.

Plantation Project WorksToreducethecarbonfootprintoftheemployees,treeplantingworkbegantobecarriedoutatErdemirandİsdemirfacilities.

ERDEMİR TREE PRESENCE (unit)

InFactory 16,301

BağlıkLodgings 7,200

GöztepeLodgings 7,048

ReservoirsandBeach 19,800

Total 50,349

Whiletheplannedworkonplantingafurther3,500additionaltreesintheareaaroundthefactoryandthereservoirscontinues,thedecisionwastakentocarryouttreeplantingforcarboncertification.

Carbonstoragecapacityiscalculatedbasedonthebiomassmodelsdevelopedfortreespecies.Theleaftypevariesaccordingtothehardness,ageandregioninwhichthetreesgrow.IntheapproachesproposedbytheIPCC,calculationsaremadeoncarbonbiomassexchangeperunitareabytakingintoaccounttheregionsintheforestecosystemsuchasaboveground,subsoil,deadwoodetc.(e.g.tonsofCO

2/ha-year).

Erdemirandİsdemircontinuetoconductstudiesintothenumberoftreesneededtoreducetheircarbonfootprint,assessingclimate,theplantingarea,thenumberofgrowntreesorsaplingplantingetc.Withinthescopeofthe100thanniversaryactivities,preparationswerecompletedinordertoplant1,919treesinthereservoirbasinandtocarryoutcarboncertification.Aprojectfortheplantingof1,500rubberplantsand3,000pinetreesisunderwayintheİsdemirAdministrativeAffairsDepartment.

TO REDUCE THE CARBON FOOTPRINT OF THE EMPLOYEES, TREE PLANTING WORK BEGAN TO BE CARRIED OUT AT ERDEMİR AND İSDEMİR FACILITIES.


AN INDISPENSABLE PART OF LIFEA PRODUCT THAT ADDS QUALITY AND CONVENIENCE TO OUR DAILY LIVES WITH MANY MATERIALS WE USE


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E


SOCIAL PERFORMANCECUSTOMER RELATIONS MANAGEMENT

A customer portfolio consisting of different sectors and usersToday,atatimewhentechnologyisdevelopingatabreakneckpace,thechangesandexpectationsincustomerneedscontinuetochangeatthesamepace,andthistrendrequirescustomer-orientedmanagementtospreadfromthemonopolyofmarketingandsalestotheentirebusiness.

Withthisawareness,theOYAKMiningMetallurgyGroupcontinuestoshapeitsprocessesbykeepinginmindthatcustomerexpectationscanbemetattherighttime,withtherightproductandattherightcost.

Inthiscontext,thenumberofgradesproducedbytheOYAKMiningMetallurgyGroup,whichprovidesnewproductgradestoitscustomerseveryyear,inlinewiththedemandsandexpectationsofglobalcustomers,roseto479in2018.Newproductswerepresentedtocustomersevery23days.

Inadditiontonewproducts,thesalesvolumeoftheproductsofferedforsalebasedonthedemandsofthecustomersinthelast3yearsamountedto795,000tons.Thisfigurecorrespondstoapproximately11%oftheflatsteelsalesoftheOYAKMiningMetallurgyGroup.

OYAK MINING METALLURGY GROUP CONTINUES TO SHAPE ITS PROCESSES BY KEEPING IN MIND THAT CUSTOMER EXPECTATIONS CAN BE MET AT THE RIGHT TIME, WITH THE RIGHT PRODUCT AND AT THE RIGHT COST.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

TheOYAKMiningMetallurgyGroupactsasasolutionpartnerinmanysectorsinwhichitscustomersoperate.Inthiscontext,theGroup,asthemainsupplierofdomesticandinternationalprojects,inwhichenergyandinfrastructurecustomershaveasignificantshare,broughtthevalue-addedproductsalesrateto26%-thehighestlevelinrecentyears-andithasalsoenableddomesticmanufacturerstotakepartinnewprojectsinmanyregions,especiallyinEurope,withtheproductsitoffers.

Customer-focused corporate governanceToday’schangingworldanddevelopmentsintheshiftingeconomicordercallsfordrasticchangesintheconceptualfield.Inaworldofrapidchange,traditionalwaysofdoingbusinesshavegivenwaytomultidimensionalrelationshipmanagement,positioningthecustomerattheheartofthiscycle.

Inthiscontext,CustomerRelationshipManagement(CRM)isbecomingatoolforbusinessestofindcustomersinanincreasinglycompetitiveenvironment,toretainthesecustomers,tomakethemloyalcustomersandtoincreaseprofitabilityratiosintherelationsestablishedwiththesecustomers.

Havingacustomerportfoliothatiscomposedofarangeofindustriesandusers,OYAKMiningMetallurgyGroupdeterminescustomerneedsandexpectationsinatimelyandaccurate

mannerwiththeCustomerRelationshipManagementthatitappliesandachievesacompetitiveadvantagebysettingitselfapartwithitsproductsandservices.

TheGroupcontinuesitsoperationswithabusinessapproachthatisfocusedonaddingvaluetoitscustomersandbuildingmutuallysustainableandstrongrelationshipswitheachother.

Aimingtokeepcustomersatisfactionandloyaltyhighatalltimes,OYAKMiningMetallurgyGroupattachesimportancetoitscustomers,establishesstrategiesbasedontheinformationitgainsthroughitseffortstogettoknowthemmoreclosely,ensuresthatallcustomersareapartoftheprocessanddifferentiatesitselffromitscompetitorswithitslong-standingexperience,internationalknow-howandmarketknowledge.

OYAK MINING METALLURGY GROUP DETERMINES CUSTOMER NEEDS AND EXPECTATIONS IN A TIMELY AND ACCURATE MANNER WITH THE CUSTOMER RELATIONSHIP MANAGEMENT.

26%THE GROUP BROUGHT THE VALUE-ADDED PRODUCT SALES RATE TO 26%.


HUMAN RESOURCES

OYAK Mining Metallurgy Group, which considers its employees as its greatest source of value, operates as a participatory organization characterized by mutual respect and trust.

The Group contributes to the individual and professional development of its employees and transforms their potential into productivity.

OYAK Mining Metallurgy Group adopts a culture of “being us” as the basis of the human resources approach.TheOYAKMiningMetallurgyGrouptakesintoaccounttheneedsandexpectationsofitsemployeesinordertoestablishandmaintainacultureof“beingus”,anddesignsapplicationsthatwillincreasetheirmotivation,attachingimportancetoshapingworkingconditionsaccordingly.

OYAK MINING METALLURGY GROUP TAKES INTO ACCOUNT THE NEEDS AND EXPECTATIONS OF ITS EMPLOYEES IN ORDER TO ESTABLISH AND MAINTAIN A CULTURE OF “BEING US”.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

OYAKMiningMetallurgyGroup’shumanresourcespracticesincludeincreasingemployeecommitment,supportingthedevelopmentofitsemployeesandprovidingcareeropportunitiesthatofferequalopportunityforall.Ouremployeesproduceandshareinformation,areopentodevelopment,areresponsible,generatesolutions,areinnovativeandareabletoworkinteams,andprogressinlinewiththecommongoalsaspartofabigfamilywhichdevelopsandgrowswiththestrengthofitsnewlyrecruitedemployees.

TheGroupbelievesthatitwillfocusmorestronglyonitscorporatetargetswithitsqualifiedhumanresourcesandthatitcanachievesuccessbyincreasingtheaddedvaluegeneratedbyitsemployees.

OYAKMiningMetallurgyGroupemployeesmoveforwardinlinewiththecommongoalsaspartofalargefamily.RightfromthemomenttheyjointheGroup,theyactwiththeawarenessofbeingpartofaleadingfamily,whichisheldupasanexampleineveryarea.

OYAK Mining Metallurgy Group is one of the companies with highest number of employees in Turkey.In2018,Erdemirandİsdemircontinuedtheireffortstoacquire,retainanddeveloptalentinthefieldtheyoperateinwithcompetentandhighlycommittedhumanresources.

Asof31December2017,OYAKMiningMetallurgyGroupemployedatotalof11,607people,including7,725hourly-salariedworkers,3,880monthly-salariedemployeesand2contractedpersonnel.TheGroup,inwhich65%ofemployeesarepaidonanhourlybasis,hasonceagainmaintaineditspositionasoneofthemostpreferredindustrialcompaniesinTurkeytoworkinwiththeemploymentitprovides.

Theproportionofwomenamongmonthly-salariedworkersintheOYAKMiningMetallurgyGroupstoodat14%,andtheratiowas40%intheGroupHeadOfficeasoftheendof2018.

Atotalof505womenwereemployedinErdemirandİsdemirattheendof2018and29%ofthepersonnelpaidonamonthlybasiswerewomen.In2018,therateoffemalerecruitmentwas18%inErdemirand23%inİsdemir.

SupportingtheincreasingparticipationofwomeninworkinglifeisanimportantpriorityandtargetfortheErdemirandİsdemir.TheGroupisdeterminedtocarryouteffortstoincreasethenumberofwomenworkingatdifferentlevelsinbothErdemir’sandİsdemir’sfactoriestomeetthisgoalinthecomingperiod.

THE GROUP BELIEVES THAT IT WILL FOCUS MORE STRONGLY ON ITS CORPORATE TARGETS WITH ITS QUALIFIED HUMAN RESOURCES AND THAT IT CAN ACHIEVE SUCCESS BY INCREASING THE ADDED VALUE GENERATED BY ITS EMPLOYEES.

505A TOTAL OF 505 WOMEN WERE EMPLOYED IN ERDEMİR AND İSDEMİR AT THE END OF 2018.


HUMAN RESOURCES

Working to a primary target of strengthening its high performance cultureManaginghumanresourcesprocesseswithaholisticapproach,theOYAKMiningMetallurgyGroupaimstodeterminetheindividualtargetsthatwillservethecorporategoalsandtoevaluatethecontributionofitsemployeestotheorganization’stargets,todeterminethedevelopmentneedsandtoensurethedevelopmentofitsemployeeswitheffectivefeedbackmechanismsandtrainingprograms.TheGroupusesthoseresultstodrawuptrainingandcareerdevelopmentplans.

Applying the principle of “equal pay for equal work” AtOYAKMiningMetallurgyGroup,theremunerationpolicyisbasedontheprincipleof“equalpayforequalwork”inlinewiththebusinesscascadinginfrastructure.Theworklevelsaredeterminedbytakingintoconsiderationoftheextentoftheworkbeingdone,andsalariesaredeterminedfortheselevelsbasedonmarketresearchandinternalanalysis.Withthissystem,itispossibletoassignwagesthatarefairandcompetitiveinthemarket.

OYAKMiningMetallurgyGroupcompanies,whosemaintargetoftheremunerationpolicyistomaintaininternalandexternalbalanceinthewagestructure,areprovidedwiththeprincipleof“equalpayforequalwork”principle.Intheexternalbalance(marketsentiment),sectordynamicsandinflationdevelopmentsaretakenintoaccount.

Carrying out industrial relations in a dialogue with mutual understandingOYAKMiningMetallurgyGroupconductsindustrialrelationsbyestablishingarobust,constructive,developmentorientedandmutuallyunderstandingdialoguethatrespectstherightsofitsemployeestoorganizethemselvesintradeunionsandmaintainsworkplaceharmonywithbothemployeesandauthorizedtradeunions.Inthiscontext,theGroupadoptsamentalitythatsupportsthedevelopmentofthetradeunionconceptthatisexpectedtobeneededinthefutureandtocreateamodelofmodernindustrialrelationsandwhichwillensurethefullandproperuseofthepersonalrightsofemployees.

Therearenopracticesofdiscrimination,childlabor,forcedorcompulsorylaborintheGroup.Atthesametime,suppliersandthebusinesspartnersareexpectedtomeetsimilarworkingnorms.Humanresourcespoliciesandprocessesaremanagedbyexpertunits,employeesareencouragedtoparticipateinthemanagementandpracticesaredevelopedforemployeestoshareinnovativeideaswhichmakeadifference.

OYAK MINING METALLURGY GROUP CONDUCTS INDUSTRIAL RELATIONS BY ESTABLISHING A ROBUST, CONSTRUCTIVE, DEVELOPMENT ORIENTED AND MUTUALLY UNDERSTANDING DIALOGUE THAT RESPECTS THE RIGHTS OF ITS EMPLOYEES.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Systematic measurement of employee commitment EmployeecommitmentwithinOYAKMiningMetallurgyGroupisdeterminedthroughsystematicmeasurementsandvariousmeasuresaimedatimprovementarecarriedout,dependingontheresults.Themeasurementsconductedin2014and2015producedaresultthatwasabovetheworldaverageforthehourly-salariedworkers.Improvementplanswerepreparedfortheareaswherethemeasurementsindicatedrequireddevelopment.Inthiscontext,theyear2016wasusedasayearofimplementationfortheimprovementactions.

Inthepreviousyears,allemployeesinallGroupcompanieswereaskedtotakepartintheemployeeloyaltysurvey,whichconsistsofemployees’responsestohumanresourcespractices,andtheresultsfoundan87%rateofloyaltyinthesurvey,inwhich9,879peopletookpart.Inlinewiththis,actionplanstakenin2018wereimplementedintheformofstakeholderparticipationmeetingsthroughouttheGroup.

CommunicatingwithemployeesthroughdifferentplatformsWithinthescopeofinternalcommunicationactivitiesandforthepurposeofeffectiveinteraction,OYAKMiningMetallurgyGroupestablishesdialoguewithitsemployeesthroughdifferentplatformsatcertainperiods.

Theseplatformsareasfollows:• SteelPortal• Informativepresentationsregardinghumanresourcessystemsandsharingmeetings

• GroupAcademyPortal• Employeeactivities• OYAKMiningMetallurgyGroupTV• Individualinterviews• OYAKDigitalHRPlatform

OYAK Mining Metallurgy Group provides its employees with training and development opportunities during their careers.BeingoneofTurkey’sforemostandlargestemployers,OYAKMiningMetallurgyGroupprovidesitsemployeeswithtraininganddevelopmentopportunitiesduringtheircareersfromtheverymomenttheystartworkingintheGroup.

TheGroupinvestsinnewpracticesandmethodsintalentmanagementandwithitstraininganddevelopmentactivities.Throughitstalentmanagement,theGroupaimstomeettheexistingorganization’sneedforskillsandtalent,andtoensuretheorganization’shumanresourcesarecompetitivebyprovidingtheemployeesappropriatedevelopmentplans.

Inthetrainingactivities,technical,personalandleadershipdevelopmenttrainingissupportedthroughinternaltrainingandoutsourcedtrainingprograms.

The Group Academy - Raising future leaders of OYAK Mining Metallurgy GroupTheGroupAcademymanagesthetrainingneedsandactivitiesofOYAKMiningMetallurgyGroupunderoneroof,whichwillservecorporatestrategiesandgoals.Thetraining/developmentactivities,whichweretransformedintoanacademystructurein2015,continuestoprovidehighqualityeducationanddevelopmentprogramsinlinewiththepositionsoftheemployees,theircompetenciesandthedepartmentstheyworkin.

OYAK MINING METALLURGY GROUP INVESTS IN NEW PRACTICES AND METHODS IN TALENT MANAGEMENT AND WITH ITS TRAINING AND DEVELOPMENT ACTIVITIES.


HUMAN RESOURCES

Actingwiththeawarenessthatoneofthekeyfactorsofbeingateamthatdisplaysastrongandsuccessfulperformanceisleadership,OYAKMiningMetallurgyGroupfoundedtheFacultyofLeadershipin2015withtheaimofraisingleaderswhowillhelptheGroupreachitsfuturegoals,inadditiontocreatingacommonmanagementculturewithintheGroup.

Executiveswhoparticipatedintheprogramhadtheopportunitytodeveloptheirleadershipcompetenciesthroughavarietyofmethods.Thesemethodsincludedin-classtraining,the360-degreeevaluation,one-to-onecoaching,follow-upactivities,learningfromeachother.TheLeadershipFaculty,whichwascompletedin2018withtheparticipationof400people,willbeupdatedandcontinueitsactivitiesforallmanagersin2019inlinewiththeGroup’sneedsandcorporatevision.

Withtheaimofincreasingemployee’spersonalandoccupationalcompetenciesandprovidingthemwithopportunitiestodevelopthemselvesinlinewithprevailingneedsandensuringtheyadopttheGroup’ssharedvalues,atotalof579,185hoursoftrainingwasplannedin2018,withanemphasisonthesubjectsofpersonalandprofessionaldevelopment,management,managementsystems,occupationalhealthandsecurity.

OYAKMiningMetallurgyGroup,whichisleadingthesteelsectorwithitslearningorganizationstructure,forthepurposeofimprovingtheintellectualcapitalofbothemployeesandtheGroup,andensuringthatthisknowledgebecamepersistent,workhasstartedonprojectstoestablishaPurchasingandIron-SteelFaculty-inadditiontotheSalesFaculty-andraisingthecorporatememoryuptothelevelofthesystem.

Theengineeringdevelopmentprogram,whichaimstoencourageyoungengineerstospeakacommonlanguage,andtheterotechnologydevelopmentprogram,whichisspecializedforengineersworkinginthefilterunits,wasputintopracticein2018.

Withtheaimofpromotingacultureofoccupationalhealthandsafety,byaddingobservationextenttothe“BehaviorDrivenSecurityManagementSystem”in2018,activitiestorolloutthesystemtoallGroupCompaniesgotunderway.

FocusgroupinterviewswereconductedforemployeesatalllevelsthroughouttheCompany,includingsubcontractorsforthecurrentsituationanalysis,intheestablishmentoftheBehavior-OrientedSecurityManagementSystemthatwaslaunchedinthefinalquarterof2018atEreğli.

Additionally,summitandseminarprograms,withtheparticipationofprofessionalswhocanspeakonthe“effectsofdigitaltransformations,predictions,successinworld’sstandards,neuro-marketing”inthelocalandinternationalarea,havebeenorganizedwiththenewinitiativethatstartedin2019inordertoimproveopportunitiesforcooperationwithinthegroupalongwiththemottoofa“AltogetherforaStrongFuture”.

OYAK MINING METALLURGY GROUP HAS STARTED A PROJECT TO ESTABLISH A PURCHASING AND IRON-STEEL FACULTY FOR THE PURPOSE OF IMPROVING THE INTELLECTUAL CAPITAL OF BOTH EMPLOYEES AND THE GROUP.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

OYAK Mining Metallurgy Group employees participate in many national/international conferences, congresses and summits.OYAKMiningMetallurgyGroupprovidesitsemployeeswiththeopportunitytoparticipateinnational/internationalconferences,congressesandsummitsinordertohelpthemsharetheirknowledgeandexperienceandalsoforthemtofollowuponcurrenttopicsandstudiesrelatedtothesectorandtheGroup’soperations.

Inthisvein,226employeesinErdemirparticipatedin69differentcongresses,conferencesandseminarsin2018.NineoralandposterpresentationsweremadeonthetopicofOccupationalHealthandSafetyandIronandSteelinErdemir.

Inİsdemir,103employeestookpartin18differenteventsinTurkeywhile14employeesparticipatedin8eventsininternationalcongresses,conferencesandfairs.Atotalof16oraland12posterpresentationsweregivenbyemployeesinthenationalandinternationalcongressesandconferences.

In-Unit Training SystemTheIn-UnitTrainingSystemenablesthecontinuousdevelopmentofworkmethodsthroughthetransferofknowledgeandexperiencesasadynamictrainingmodel.Inthiscontext,3,596participantswereprovidedwithatotalof64,360hoursoftraining.

Internship opportunities offered to studentsTheOYAKMiningMetallurgyGroupcontinuedtoofferinternshipopportunitiestohighschoolanduniversitystudentsin2018.

168vocationalhighschoolstudents,tenVocationalJuniorCollegestudentsand96universitystudentsatErdemir,140vocationalhighschoolstudents,21VocationalJuniorCollegestudentsand195universitystudentsatİsdemir,and21vocationalhighschoolstudentsatotherGroupcompanieswereprovidedwithlong-andshort-terminternships.

Continuing to enrich the social lives of its employeesIn2018theGroupcontinuedtoenrichthesociallivesofitsemployeesandtheirfamilieswitharangeoffacilitiessuchasswimmingpools,beaches,tenniscourts,gyms,astadium,culturalandhealthcarecentersandpublichousingontheEreğliandİskenderunsites.Inaddition,theGroupcontinuedtoencourageitsemployeestocarryoutvolunteeringworkforappropriatesocialactivitiesinwhichtheywouldtakepartwithanawarenessoftheirsocialresponsibility.

Employee participation is considered to be of paramount importance at OYAK Mining Metallurgy Group.OYAKMiningMetallurgyGroupregardsemployeeparticipationasanindispensablerequirementintermsofachievingitsobjectiveoflong-term,profitableandsustainablegrowth.

Fromknowledgetoexperience,fromnewideastosharingintheproposalsystem,theGroupmakesuseofeverycontributionfromitshumanresources.Thesecontributionspavethewayforimprovementsandsavingsinawiderangeincludingenvironment,customersatisfaction,OHSandoperationalactivities.

OYAK MINING METALLURGY GROUP REGARDS EMPLOYEE PARTICIPATION AS AN INDISPENSABLE REQUIREMENT IN TERMS OF ACHIEVING ITS OBJECTIVE OF LONG-TERM, PROFITABLE AND SUSTAINABLE GROWTH.


OCCUPATIONAL HEALTH & SAFETY (OHS)

OYAK Mining Metallurgy Group recognizes that its most valuable asset is its employees and is unwavering in striving to keep all risks related to OHS under control.

Theprincipleof“peoplefirst”servesasaguidefortheOYAKMiningMetallurgyGroupinthefieldoftheOHS.

TheGroupaimstodevelopanawarenessofsafetywhichstartsfromtheindividualandextendstotheirentireenvironment,andwhichgoesfarbeyondtheprotectiveequipmentandlegalregulationsprovidedintheOHSfield.

TheGroupcarriesoutintensiveandsystematicstudiesandrealizesinvestmentswheretheapproachtooccupationalhealthandsafety,developedwiththeparticipationofemployeesatalllevels,isputintopractice.

TheaimofprojectsimplementedistoensurethattheworkcarriedoutinthefieldofOHSisnotconfinedtothemanagementlevel,butthatallemployeesadoptjointinitiativeprojectsandcarrythemtothefuture.

OYAK MINING METALLURGY GROUP AIMS TO DEVELOP AN AWARENESS OF SAFETY WHICH STARTS FROM THE INDIVIDUAL AND EXTENDS TO THEIR ENTIRE ENVIRONMENT.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Inthefuture,OYAKMiningMetallurgyGroupaimstobringtogethertheexperienceandachievementsgainedfromtheworkinthisfieldwithstakeholdergroupssuchasemployees’families,regionalproducersandstudents,andtoencourageabehavior-orientedsafetyculture.

OHS policy at OYAK Mining Metallurgy Group • Toproduce“accident-freesteel”bydeterminingtherisksandsystematicallymanagingthem.

• Topreventworkrelatedaccidentsandillnessesbykeepingprocessesandtheworkingenvironmenthealthyandsafe,andtoprotectthehealthofemployees.

• Topromoteasustainablesecuritycultureshapedbytheparticipationandideasofallemployees.

• ToimplementandmaintaintheSafetyManagementSystemforthepreventionofMajorIndustrialAccidentsresultingfromprocessandhazardousmaterialsthatcouldcausesignificantlossesinproductionandwork.

OHS system requirements fulfilled in 2018Erdemirandİsdemir,whichfulfilledtherequirementsoftheTS-OHSAS18001OccupationalHealthandSafetyManagementSystem,ensuredthecontinuityanddevelopmentofthesystemin2018.Inaddition,studieshavegotunderwaywithinthescopeofISO45001OccupationalHealthandSafetyManagementSystemstandardrevision.Thecertificationworkisplannedtobecarriedoutin2019withinthescopeofthisstandard.

DifferenttrainingprogramsheldtocoverdifferentrisksinthefieldofOHS.

Inordertocreateandmaintainacultureofsafetyinallofitscompanies,OYAKMiningMetallurgyGroupcontinuestoorganizevarioustrainingprogramstodealwiththevariousrisksfacingbothemployeesandsub-contractedemployees,dependingonthecharacteristicsoftheirworkthattheycarryout.

In2018,atErdemir,122,537hoursofOHStrainingwasprovidedtoemployees,and19,119hoursofOHStrainingwasprovidedtosub-contractedemployees.Atİsdemir,145,833hoursofOHStrainingwasprovidedtoemployeesand28,126hoursofOHStrainingwasprovidedtosub-contractedemployees.

SomeofthetrainingprogramsprovidedtoErdemiremployees:• EightpersonnelreceivedtrainingonIECExUnit002,ontheclassificationofhazardousareas.18personnelreceivedtrainingonIECExUnit001(Applyingbasicprinciplesofprotectioninexplosiveatmospheres)&003(Installationofexplosion-protectedequipmentandwiringsystems)&005(Overhaulandrepairofexplosion-protectedequipment(Ex)).

• Atotalof401personnelreceivedtrainingonIEC60079-19standard:Explosiveatmospheres-Part19:Equipmentrepair,overhaulandreclamation.

ERDEMİR AND İSDEMİR ENSURED THE CONTINUITY AND DEVELOPMENT OF THE TS-OHSAS 18001 OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM IN 2018.



• Inordertocarryouttheproperexecutionofpersonalexposuremeasurements,fivespecializedpersonnelfromISGÜM(theDirectorateofOccupationalHealthandSafetyCenter),whichcarryoutmeasurementsonbehalfoftheMinistryonsubjectssuchasnewstandards,measurementmethods,techniques,etc.,visitedErdemirandprovidedexposuremeasurementstrainingtotheOccupationalSafetyandWorkplacePhysiciansworkinginErdemir.

• Atotalof5personnelweregiventheopportunitytoobtaintheNEBOSH-InternationalOHSCertificate.

• Atotalof143personnelfromthemechanicalmaintenance,electricalmaintenance,cranemaintenanceandmobilemaintenanceunits,whowillbeusinglifelinesintheirwork,receivedpracticaltrainingfromthecompanywhichinstalledthelines.

• TS45001OHSManagementSystemAuditorTrainingwasgivento32employees,includingOccupationalSafetySpecialists,OHSInternalAuditorsandLeadAuditors.

• 78personnelparticipatedinthesearchandrescuetraininggivenbyAFAD(DisasterandEmergencyManagementPresidency)attheAFADSakaryacampusforemergencysituations.

Systematic monitoring of OHS performances OYAKMiningMetallurgyGroupcompaniessystematicallymonitortheirOHSperformancesthroughOHSSystematicMonitoringapplications,includingOHSboardandsubcommitteemeetings,announcedandunannouncedsafetytours,emergencydrills,nearmissincidentapplications,accidentroot

causeanalysis,5S,non-conformitiesfindingsandreporting.

Urgentmeasuresaretakenandimplementedtoeliminateanyincidencesofnon-conformity.ErdemirandİsdemirsystematicallyconductoccupationalhealthandsafetystudiesinlinewiththedecisionstakeninOHSboards.TheOHSboardmet11timesatErdemirand9timesatİsdemirin2018.Furthermore,unitOHSandsub-boardmeetingswereheldinallunitsoftheplantseachmonth.

In2018,atErdemir,atotalof65pre-announcedand43surprisesafetytourswerecarriedout.Atİsdemir,25pre-announcedsafetytoursand79in-unitsafetytourswerecarriedout.Necessaryimprovementswerecarriedfollowinganevaluationofthepotentialdangersandrisksidentifiedduringthesafetytours.

In2018,atErdemir,animprovementof98.7wasachievedfollowing10,977dangerand187nearmissnotifications.Atİsdemir,rectifyingworkwascarriedoutfollowing6,707nearmissincidentsduringtheyear,and98%oftheitemsdeterminedasrequiringimprovementwerecompleted.In2018,12,158areastobeimproved,whichwerecollectedfromtheOHSSystematics(Announced/Unannouncedsafetytours,Non-Compliance,Drill,theOHSBoardMeetings),werealsosystematicallymonitored.

OYAK MINING METALLURGY GROUP COMPANIES SYSTEMATICALLY MONITOR THEIR OHS PERFORMANCES THROUGH OHS SYSTEMATIC MONITORING APPLICATIONS.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Inordertoprovideorderanddisciplineintheworkplacebyincreasingparticipationandmotivationoftheemployeesthroughimprovementsinworksafety,theworkingenvironment,efficiencyandinmachineperformance,the16thperiod5SScoringauditswerecarriedoutat504sitesthroughoutİsdemir.

Atİsdemir,workaccidentsandnearmissincidentswhichoccurredinworkplacesandwhichcouldbetakenasexamples,wereusedtopreparethe35thand36thAccidentSharingPresentations.Thepresentationswereshownto823employeesbydrawinglessonsfromthesametypeofworkaccidentsandnearmissincidents,inordertoensuretheseaccidentswerenotrepeated.Sincethesystematicimplementation,accidentpresentationsweresharedwith14,381employeesin71meetingsinİsdemir.

Thefirstoftheaccidentsharing(information)meetingswereheldatErdemirwiththeparticipationof546employeesin2018.

Implementing best practice examples in the field of OHS Erdemirandİsdemirhavebeenparticipatinginthe“SteelSafetyDay”practiceadoptedbytheWorldSteelAssociation(worldsteel)since2014.InlinewithInternationalLaborOrganization(ILO)’sWorldHealthandSafetyDay,thispracticeaimstocreateasaferworkingenvironmentintheentiresteelindustry.

In2018,Erdemirandİsdemircarriedoutextensiveauditsintheplantswithinthescopeofthisapplication,whichwasimplementedtostrengthenawarenessofthefivemostcommoncausesofoccupationalaccidentsinthesteelindustry.Aftertheseaudits,improvementplansweredevelopedandimplemented.

In2018,regularevaluationandinformationmeetingswereheldwithOHSProfessionalsinallcompaniesworkingatİsdemir.

AtErdemir,OHSCommitteemeetingsareheldwiththesubcontractorcompaniesunderacertainheadingonamonthlybasis.

Theprojecteffortscarriedoutin2018bytheExcellenceModelTotalSafeProductionFunction,whichwasestablishedforthepurposeofcarryingoutaccident-freeproductionbydevelopingasustainablesafetycultureorientedaroundpeopleandtheenvironment,areasfollows:

Erdemir• TheBehaviorOrientedSafetyApproachproject

AtErdemir,inordertoidentifythemainthemesandbehaviorsetswhichemployeesneedtointernalizeregardingoccupationalhealthandsafetyissues,tomonitorthisbehaviorandtosystematicallyestablishanddevelopasafetyculturethroughouttheCompany,theBehaviorOrientedSafetyApproachProjectwaslaunched.TheobjectiveoftheprojectwasdeterminedasensuringthatthesafetyculturethatisintegratedwiththesupportoftheseniorexecutivesofOYAKMiningMetallurgyGroupandtheemployees’beliefintheconceptofsafesteelproductionshouldbetraceable,notonlyinthoughtbuttotheextentreflected

ERDEMİR AND İSDEMİR HAVE BEEN PARTICIPATING IN THE “STEEL SAFETY DAY” PRACTICE ADOPTED BY THE WORLD STEEL ASSOCIATION (WORLDSTEEL) SINCE 2014.



inbehavior.Attheendofthisproject,eachemployeewillbeabletoperceiveandevaluatetherisksintheirworkassociatedwiththeenvironment,machineryand,mostimportantly,thehumandimension,andtoeliminatetheriskybehaviorthatisfrequentlyencounteredandtodevelopsafebehaviorinstead.

Followingthecurrentsituationanalysisandfocusgroupinterviewscarriedoutin2018,theheadengineerand138higherlevelmanagersinchargeattheunitswhicharewithinthescopewereprovidedwithtrainingattheTrainingCentre.Trainingwillbecontinuedwithforemen,engineersandthenemployeespaidonanhourlybasis.

Inordertorolloutthebestpracticesundertheleadershipofteamleaders,aneffectivecommunicationpolicywasimplementedandrelevantuserguideswereprepared.

• Monitoringoflevelcrossingsandintersectionpoints

• Fixedandportableradarapplication• Posterstobeattachedtoboardsinvariouspartsofthefactorywithinthescopeofeffortstoestablishasafetyculture

• Supervisinguseofbatteryoperatedvehicles• Carryingoutspecialannouncedsafetytourstotransformercenters

• Organizingspecialsafetytoursforlevelsystems,thePLC(ProgrammableLogicController)andDCS(distributedcontrolsystem)rooms

İsdemir• TheBehavior-OrientedSafetyManagementobservationapplicationthatwasinitiatedattheIronProductionDirectoratewasrolledout

• TheEKED(Tag-Lock-Secure-Try)keyapplication

• InvestigationoftheEKEDapplicationinotherenergyitems(mechanical,hydraulic,pneumaticequipmentetc.)besideselectricalenergy

• Preparationofacontrol/follow-uptableincludingminimumstandardsforhydraulicrooms,theMCC(motorcontrolcenter)andPLCrooms

• Checkingofworkequipmentsubjecttolegalperiodicinspectionandarchivingofcontrolforms

• Inspectionofsubcontractorcompanies• Reducingtheincidenceofoccupationalaccidentscausedbytheuseofhandtools

• MonitoringofinstantdatareceivedfromthefixedtypegasdetectorsonthecentralScadascreen

• Effectiveapplicationofthe5Ssystem

Process Safety and Emergency ManagementAsrequiredbytheRegulationontheProtectionofEmployeesfromtheDangersofExplosiveAtmospheres”andthe“RegulationonEquipmentandProtectiveSystemsUsedinPossibleExplosiveAtmospheres”,whicharepartoftheSEVESOactivities,ExplosionProtectiondocumentswererenewedintheregionswheretherewasdeemedtobeariskofexplosionattheErdemirandİsdemirsites.Inlinewiththerecommendationsoftherenewedreports,regionswithexplosionriskweredetailed.Theex-proofpropertiesoftheequipmentusedintheseregionsandtheirconformitytothezoneclassificationswere

ERDEMİR AND İSDEMİR CARRIED OUT PROJECTS IN 2018 THROUGH THE EXCELLENCE MODEL TOTAL SAFE PRODUCTION FUNCTION, WHICH WAS ESTABLISHED FOR THE PURPOSE OF CARRYING OUT ACCIDENT-FREE PRODUCTION.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

re-reportedandimprovementactivitieswereinitiatedfortheex-proofequipment,whichwerefoundtobenon-conformant.

Atİsdemir,sectionleadersweredeterminedwithinthescopeofSecurityManagementSystemStudieswhichconsistof10sectionsestablishedinordertoensureprocesssecurity,andpre-evaluationwasdoneandinformationwasgiventotheunitmanagers.WithinthescopeofİsdemirEmergencyManagementSystem,trainerandrenovationofUAME(NationalInterventionTeam)trainingwasprovidedtothefirebrigadeteamin2018,and121in-unitdrillswerecarriedout.

Atthebeginningof2018,underthecoordinationoftheDirectorateofOccupationalSafetyandtheEnvironment,ErdemirEngineeringfinalizedtheP&ID(Processandequipmentcontrolandautomationdiagrams)drawingsofallunitswithinthescopeofSEVESObyworkingincoordinationwiththerelevantunitsinthefield.

HazardousEquipmentIdentification-VadeMecum*,DOWF&EI(DowFireandExplosionIndex)andDOWCEI(DowChemicalExposureIndex)-werecarriedouttogetherwiththeunits,followedbyhazardidentification(HazOp)forqualitativeriskdeterminationstudies.

*ahandbookorguidekeptconstantlyathandforconsultation.

TheErdemirBlastFurnace,SteelWorksandCokeGasGasometerswereexaminedwithinthescopeofprocesssafety.Ariskassessmentwasperformedandareportwaspreparedcontainingtherelevantrequirementsandmodelingstudy.

Inthiscontext,SafetyManagementSystemBasicandInternalAuditorTrainingwasheldon2-4Octoberand9-11October2018fortheInternalAuditoftheSMSatErdemir.

Work conducted for ex-proof equipmentIn2018,atotalof198personnelwereprovidedwithgeneralATEXtraining,therebyraisingtheawarenessofpersonnelworkinginunitswherethereisex-proofequipment.

ATEXtrainingwasprovidedtomorethan198personnelin2018inabidtoraisetheawarenessofthepersonnelworkingintheunitswhereexplosion-proofequipmentisprovided.

AseparateExplosionProtectionDocument(EPD)waspreparedforeachofthehazardousareaswherepotentiallyexplosiveenvironmentswereformedinErdemir.

SignificantcontributiontothesafetyofthefacilitieswasmadewithtrainingprovidedinthefieldofoperationinordertopreparetheExplosionProtectionDocuments(EPD)andthefollow-upofthissystem.

InordertoensurethatErdemirandfirebrigadepersonnelarereadyforemergencies,20transitions,fireextinguishingandrescuedrillswereattended.

Personal Protective Equipment OYAKMiningMetallurgyGroupcontinuedtoprovideworld-classequipmentforitsemployeeswhichwasappropriatetotheirworkingconditions,andcarriedoutimprovementswhennecessary,byconstantlymonitoringtheperformanceofthisequipmentduringtheiruse.

IN 2018, A TOTAL OF 198 PERSONNEL WERE PROVIDED WITH GENERAL ATEX TRAINING, THEREBY RAISING THE AWARENESS OF PERSONNEL WORKING IN UNITS WHERE THERE IS EX-PROOF EQUIPMENT.


CORPORATE SOCIAL RESPONSIBILITY

The OYAK Mining Metallurgy Group exercises the greatest care in balancing the needs and expectations of all of its stakeholders with the approach of being a model corporate citizen and to fulfill its legal and ethical responsibilities in a timely manner.

Erdemirandİsdemirestablishastrongconnectionwithsocietywhileprovidingbenefitsinsocialareaswithitsprojectscarriedoutthroughoutthecountry,particularlyintheregionswhereitoperates,anditsactivitiesaimedatcontributingtosociety.Inordertoenhanceitscontributiontosocialdevelopment,

theGroupgivesprioritytolong-term,high-impactprojectsandactivitieswithwhichitcandevelopcooperationwithpublicinstitutionsandnon-governmentalorganizations.TheGroupseekstotouchhumanlifeinallareassuchasthesteelitproduces,providingpositiveandlastingchange,developinginnovativesolutionstomeetsocialchallengeswhilespreadingbeautyandenrichinghumanlife.

ERDEMİR AND İSDEMİR ESTABLISH A STRONG CONNECTION WITH SOCIETY WHILE PROVIDING BENEFITS IN SOCIAL AREAS WITH ITS PROJECTS CARRIED OUT THROUGHOUT THE COUNTRY.


INTR

OD

UC

TIO

NEC

ON

OM

IC P

ERFO

RM

AN

CE

ENV

IRO

NM

ENTA

L P

ERFO

RM

AN

CE

SOC

IAL

PER

FOR

MA

NC

E

Placing priority on activities in the field of education OYAKMiningMetallurgyGroupcompanies-Erdemirandİsdemir-haveplayedanimportantrolenotonlyintheeconomicdevelopment,butalsointhesocialdevelopmentoftheregionswheretheyoperate.Erdemirandİsdemir,whohavecontributedtonationaleducationwithatotalof9schoolstodate,regardtheiractivitiesinthefieldofeducationasapriority,carryingoutvariousactivitiesinordertosupportchildrenofallagesculturallyandartistically,aswellasacademically.Withinthisscope,freechildren’splayslaunchedbyErdemirin2009havecontinuedintheregionswhereİsdemirandErdemirMadenoperatesince2015.Inthiscontext,nearly2,500schoolpupilswereintroducedtothemagicalworldoftheatrein2018.

Supporting schools in their regions with lessons in IT and coding - which are experiencing rapid development.Supportingtheparticipationofhighschoolsinroboticscontests,ErdemirsupportedtheZonguldakBülentEcevitUniversity’sSpaceTeamGrizu-263’sparticipationintheCanSatcompetition,whichisthemostprestigioussatellitecompetitionintheworldandheldintheUSA.TheGrizu-263wonsecondplaceintheWorldattheCanSat.ErdemiralsocontributedtotheNewHorizonsScienceWorkshopprojectsupportedbytheWesternBlackSeaDevelopmentAgencyatahighschoolinEreğli.

İsdemiralsoprovidedaidtostateschoolsinordertoestablishareadinghalltoencouragechildrentodevelopahabitforreading,whilealsoprovidingcodingclassestostrengthentheirtechnologicalinfrastructure.ItalsosupportedvariousprojectssuchastheİskenderunTechnicalUniversity’sElectricCarProject.

OrganizingtheSteelandLifeSculptureCompetitioneverytwoyearsinordertosupportthestudentsstudyingsculptureatuniversitiesinTurkey,Erdemirextendedits

supporttotheAkdenizUniversityandtheMimarSinanUniversityofFineArts,toexpandthefacilitiesofsculptureateliersin2018.Italsoprovidedsteelfortheacademicstudiesofhighereducationinstitutions,especiallymetallurgymaterialsengineeringdepartments.

Continued support for public institutions and non-governmental organizations In2018,Erdemirandİsdemircontinuedtosupporttheactivitiesofpublicinstitutionsandnon-governmentalorganizationsintheirregions.Erdemirsupportednon-governmentalorganizationsworkingforthebenefitofthesociety,inparticularthePhysicallyHandicappedAssociationinEreğli.SupportwasprovidedforfurnishingsintheEreğlibranchbuildingsoftheTurkishWarInvalids,Veterans,Martyrs’WidowandOrphansAssociation,theMiningMartyrsAssociationandtheFoundationforChildrenwithLeukaemia.

İsdemiralsocarriedoutactivitiessuchasprovidingthecleaningandelectricityneedsoftheschoolsintheregion,providingstationeryandmaterialsupporttovariousinstitutions,andprovidinglunchtoschoolpupilsineconomicneed.

Continuing studies to support biodiversity Attheendof2016,Erdemircontinuedtoworkonthe“LettheFieldsBePloughed,LettheTraditionContinue”biodiversityprojectinordertocontributetotheincreaseofthecultivationoftheOttomanStrawberry,whichwasidentifiedwiththeregion,butwhoseproductionhadlargelydiminished,inEreğli.

ERDEMİR AND İSDEMİR HAVE PLAYED AN IMPORTANT ROLE NOT ONLY IN THE ECONOMIC DEVELOPMENT, BUT ALSO IN THE SOCIAL DEVELOPMENT OF THE REGIONS WHERE THEY OPERATE.


CONTACT INFORMATION

OYAK MINING METALLURGY GROUP BarbarosMahallesiArdıçSok.No:6,34746Ataşehir/İSTANBUL-TURKEYTel:+902165788000Fax:+902164694810E-mail:[email protected]:www.erdemirgrubu.com.tr

EREĞLİ DEMİR VE ÇELİK FABRİKALARI T.A.Ş.UzunkumCaddesiNo:7,67330KaradenizEreğli/ZONGULDAK-TURKEYTel:+903723232500Fax:+903723331500E-mail:[email protected]:www.erdemir.com.tr

İSKENDERUN DEMİR VE ÇELİK A.Ş.KarşıMahalleŞehitYüzbaşıAliOğuzBulvarıNo:1Payas/HATAY-TURKEYTel:+903267584040Fax:+903267585351-7583838E-mail:[email protected]:www.isdemir.com.tr

ERDEMİR MADENCİLİK SAN. VE TİC. A.Ş.CürekYolu5.kmDivriği/SİVAS-TURKEYTel:+903464191121(5lines)Fax:+903464191150E-mail:[email protected]:www.erdemirmaden.com.tr

ERDEMİR ÇELİK SERVİS MERKEZİ SAN. VE TİC. A.Ş.GebzeOrganizeSanayiBölgesi700.Sok.No:724Gebze/KOCAELİ-TURKEYTel:+902626792727Fax:+902626792797E-mail:[email protected]:www.ersem.com.tr

ERDEMİR MÜHENDİSLİK YÖNETİM VE DANIŞMANLIK HİZMETLERİ A.Ş.BarbarosMah.ArdıçSok.No:6,34746Ataşehir/İSTANBUL-TURKEYTel:+902165788000Fax:+902164694837E-mail:[email protected]:www.muhendislikerdemir.com.tr

ERDEMİR ROMANIA S.R.L.18,SoseauaGaesti,Targoviste130087Dambovita/ROMANIATel:+40245607100Fax:+40245606070E-mail:[email protected]:www.erdemir.ro

ERDEMİR ASIA PACIFIC PTE LTD10ScienceParkRood#03-11TheAlphaSingapore117684Tel:+6568830057-59E-mail:[email protected]

İSDEMİR LINDE GAZ ORTAKLIĞI A.Ş.KarşıMahalleŞehitYüzbaşıAliOğuzBulvarıNo:1Payas/HATAY-TURKEYTel:+903267584100Fax:+903267583991

ERDEMİR ENERJİ ÜRETİM A.Ş. BarbarosMah.ArdıçSok.No:6,34746BatıAtaşehir/İSTANBUL-TURKEYTel:+902165788000Fax:+902164694807Web:www.erdemirenerji.com.tr

Sustainability reporting consultantTayburn

Tel: (90 212) 227 04 36www.tayburnkurumsal.comThisreporthasbeenpublishedusingrecycledpaperandenvironment-friendlytechnologies.

www.oyakmadenmetalurji.com.tr