SUSTAINABILITY REPORT 2015-2016

CONTENTS

2 Message from Chairman3 Message from CEO4 About the Report4 Abdi İbrahim Sustainability Committee

6 ABDI İBRAHIM AT A GLANCEAbdi İbrahim in BriefMilestonesVision and Corporate ValuesFinancial and Operational Highlights

12 MANAGEMENT MENTALITYManagement Mentality Focused on International LeadershipSustainability Strategy: 2020 VisionOrganizational StructureQuality PolicyInternal Audit PracticesBusiness Ethics PrinciplesStakeholder Relations ManagementReputation Management PolicyMemberships and Supported InitiativesAwards and Achievements

24 FINANCIAL AND OPERATIONAL PROCESSESProductionLogisticsR&DIntellectual & Industrial Property RightsSales and MarketingInternational MarketsInvestments

32 HUMAN RESOURCES PRACTICESHuman Resources StrategyRespect for Humanity and Participatory ManagementCareer and Personal DevelopmentInformation Sharing and AppreciationSupporting Local and Female EmploymentOccupational Health and Safety Practices Human Resources Indicators

42 PRODUCT AND SERVICE RESPONSIBILITYMedicalClinical Research Product Safety (Pharmacovigilance)Licensing and Market AccessProduct Information Hotline

48 CONTRIBUTION TO SOCIAL DEVELOPMENTCSR MentalityCSR Projects at a Glance2015-2016 ProjectsPhilanthropy

58 ENVIRONMENTAL POLICYEnvironmental PolicyRecycling and Waste ManagementEnergy ConsumptionEnvironmental Impact Reduction EffortsEnvironmental Protection InvestmentsWater ConsumptionGreenhouse Gas Emissions

68 Global Reporting Initiative (GRI) G4 Content Index72 United Nations Global Compact (UNGC) Progress Report72 Women’s Empowerment Principles (WEPs) Progress Report

Masthead

1

Abdi İbrahim, which was founded

105 years ago, has been “healing”

all of the people and the lives it touches

with courage, passion and determination.

2

Dear Stakeholders,

Our company Abdi İbrahim, which has been continuing the healing journey full of courage, responsibility and passion just like on day one for more than a century, keeps working with a performance target that will inspire and be an example to the industry as well as the Turkish business world with its works in the field of sustainability. We are happy to have prepared the third of our Sustainability Report, in which we share our works with the public biennially, within the frame of Global Reporting Initiative (GRI) criteria and to have submitted it to the knowledge of all of our stakeholders.

We see our sustainability strategy as the integral parts that complement and feed one another without separating it from our business strategy. Our human-oriented perspective that focuses on efficiency and growth constitutes the main dynamics of our strategy. We believe that one of the requirements of our leadership in our industry is to initiate projects and investments that will exhibit the relationship between sustainability and business objectives with correct implementations and resolutions, and to conduct inspiring works in this area.

Our world is exposed to the ever-increasing resource problem, negative consequences of climate change, need for renewable energy resources, comprehensiveness-based and diversity-based problems, and huge risks that threat wide masses. We care about these issues as much as the major technological changes and transitions in today’s business world, the novelties in R&D and innovation areas, and Industry 4.0 & artificial intelligence trends. We see our business objectives, our co-workers, and our world and society in which we live within the same perspective, and we put our responsible and sensitive approaches in the center of our business.

Within this frame, we ensure that our sustainability strategy penetrates our business in many ways by minimizing the environmental impact of our operations, making no compromises on high standards of product and quality reliability, fully conforming to the codes of conduct in our relationships with all of our stakeholders, always keeping our employees in our focus, and allocating time and resources to the social projects that add value to the society.

We closely follow the international standards and trends in the field of sustainability and we always keep the bar high as a member of universally accepted initiatives in order to carry out our works in the corporate, social, environmental and economic areas that we conduct with our internal and external stakeholders together in a more systematic and regular manner.

As Abdi İbrahim, we signed the United Nations Global Compact (UNGC) in 2010. Since then, we have focused on conducting our sustainability works within the scope of 10 global principles, and have been submitting the annual Progress Report to the attention of our stakeholders. As another sign of our firm steps towards rendering our sustainability activities more comprehensively, we have been publishing our Sustainability Report in accordance with the criteria of Global Reporting Initiative (GRI) since 2013.

We are pleased to present our works in different areas from the environment to investment, and from employment to social responsibility in the 3rd Sustainability Report of Abdi İbrahim, which we prepared with the integrated reporting approach in accordance with the criteria of UNGC, GRI (G4 core) and WEPs initiatives and which includes our activities between January 1st, 2015 and December 31st, 2016.

As Abdi İbrahim, which takes firm steps forward for the regional and international targets, we are determined to shape our activities on the axis of sustainability in the coming period as well with a well-established history in the Turkish pharma industry, and a dynamic structure that embraces the future and a qualified human resource.

Today, with more than 180 brands and more than 360 products, our company has the most extensive portfolio in the industry, and undertakes the responsibility for healing lives not only in Turkey, but also in 50 countries to which it exports. As the focus of our work is human health, we are continuing our activities with the awareness of the great responsibility that we undertake. Every success that we achieve and every goal that we reach increase our ambition to work for our company, our industry and our country.

We will keep working together with all our strength to heal the lives we touch in line with our goal to be among the top 100 pharma companies in the world by 2020. As today, we will continue to proudly represent our country and our industry throughout the world with courage, passion and responsibility.

Yours Faithfully,

MESSAGE FROM CHAIRMAN

We are not only a pharma manufacturer, but also a big family that has been working with passion to heal the lives it touches as well as the future for exactly 105 years.

Nezih Barut Chairman

3

Dear Stakeholders,

As Abdi İbrahim, which has been directing the Turkish pharma industry for 105 years, we have the responsibility of being an organization that acts on the mission of “healing”, and we are proud of it. While we make pioneering and innovative breakthroughs for our country and our industry, we are also working with all our strength to reach the high targets we have set.

Abdi İbrahim, which has been continuing this journey that began in 1912 with its industry leadership since 2003, is a major success story for Turkey in terms of sustainability. As a successful Turkish company that has left a century behind, we are continuing our initiatives with determination and moving towards our goal of becoming one of the world’s top 100 pharma companies in line with our 2020 vision.

One of the cornerstones of sustainability in pharma industry is to closely follow and invest in technology. Abdi İbrahim, which has pioneered the industry in many areas with its investments so far, finally took a bold step by making a major investment in the field of biotechnology. We believe that AbdiBio, Turkey’s largest biotechnological pharma manufacturing plant, will mark the future of our industry both in Turkey and in the world. In our facility which will be the beginning of a new era, we will manufacture and export the biotechnological drugs that are used in cancer, diabetes, rheumatism, central nervous system diseases and blood disorders which cannot be treated with chemical drugs.

Another important subject in sustainability is R&D… We are aware that the way to become an active player in the industry is through the power of R&D. We allocate a share far above the industry average, 6.5% of our annual turnover, to R&D studies. Our Abdi İbrahim R&D Centre ranked #21 in the list of “Turkey R&D 250 Survey” of Turkish Exporters Assembly, and ranked #1 among the pharma companies in 2016. Being a leader in this area makes us proud.

One of the important topics which we focus on in all the business processes in both Turkish and international markets is the environment. Because we believe that the world we live in is borrowed from future generations, and we look out for the environmental impact in every step we take. We consider green technology to be the basis of our environmental policy to protect the environment in all our operations, to provide continuous improvement, to efficiently use the natural resources, to fully comply with the laws on environmental protection, to prevent pollution, to primarily reduce waste at source during operations, to resolve & recycle them, and to dispose of them with the most suitable methods. This approach as well as our projects have won recognition with many awards so far. Lastly, we were the first and only pharma company that won the Yeşil Nokta Industry Award at the Yeşil Nokta Industry Awards Competition organized by Environmental Protection and Packaging Waste Recovery and Recycling Foundation (ÇEVKO). Demonstrating once again to our stakeholders our commitment to our promises regarding environmental sustainability and preservation of natural resources increased our motivation and happiness.

An integral part of our activities are our civil society initiatives. In this direction, we are structuring our activities in the axis of education, culture-arts, public health and environment, and continuing to work in order to contribute to the development of the intellectual capital of the society. In 2015 and 2016, we have initiated many projects which are noteworthy, such as “Let’s Not Ignore - Schizophrenia Adventure from Prehistoric Ages to the Present” Exhibition, Hug the World Campaign, Polycystic kidney disease awareness campaign, “Look Alive, Heal Your Life” and Swimming Competition for Psoriasis Patients. ASKO, one of our studies on public health made tremendous impact. ASKO Project, which we started for asthma and COPD patients in 2012 and completed in 2016, was conducted by over 120 doctors in more than 100 centers across 60 provinces throughout Turkey. The study, in which nearly 2,000 patients were examined, contains remarkable data. We also completed our healing works of Sultan Bayezid II Edirne Hospital, another project which we are proud of. We renewed Sultan Bayezid II Edirne Hospital, which has a 500-year-old history, with a sense of contemporary museology and put it into service in 2015.

As Abdi İbrahim, as it does today, we will keep taking firm steps forward to the future with courage, passion and responsibility by living on our deep-rooted history, and continue to contribute to Turkey’s economy.

Yours Faithfully,

MESSAGE FROM CEO

Abdi İbrahim, which has been continuing this journey that began in 1912 with its industry leadership since 2003, is a major success story for Turkey in terms of sustainability.

Süha Taşpolatoğlu CEO

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The Sustainability Committee was established in 2013 in order to carry out and report Abdi İbrahim’s sustainability studies in a more systematic and regular manner. The committee conducts its works taking the stakeholders’ suggestions into consideration in line with the following objectives.

Abdi İbrahim Sustainability Committee carried out the component prioritizing work for content creation within the frame of G4 core principles of 2015-2016 Sustainability Report.

Main Targets

Organize awareness-raising trainings and activities to help Abdi İbrahim employees embrace Corporate sustainability targets

Map Abdi İbrahim’s potential productivity and resource saving and inform executive bodies of possible measures to increase capacity

Organize various activities to raise stakeholder’s awareness of sustainability as part of corporate citizenship efforts

Act as a support function for sustainable execution of Abdi İbrahim’s corporate social responsibility projects in the fields of public health, environment, education, culture and arts

SUSTAINABILITY COMMITTEE

G4-17 G4-22 G4-23 G4-28

Focusing on sustainable success since its foundation, Abdi İbrahim pays strict attention to bringing public awareness of its works in corporate, social, environmental and economic areas conducted both within the corporation and with its external stakeholders. In this direction, the Company, which has been a member of United Nations Global Compact (UNGC) since 2010, brings the annual Progress Report to the attention of stakeholders by focusing on conducting sustainability activities within the framework of 10 global principles. Abdi İbrahim shared the UN Global Compact Sixth Progress Report with the public on October 9th, 2016.

Abdi İbrahim published the first sustainability report in 2013 and the second sustainability report in 2015, which was prepared in the light of the Global Reporting Initiative (GRI) G3 A Level criteria as another indicator of firm steps to make sustainability works more comprehensive.

Abdi İbrahim, which places great importance on the support and employment of women, also signed the Women’s Empowerment Principles (WEPs) of the United Nations’ private sector initiative, which aims to strengthen women in all industries and at all levels so that they can take place in economic life, on January 16th, 2017.

3rd Sustainability Report of Abdi İbrahim covering the period between January 1st, 2015 and December 31st, 2016 was prepared with an integrated approach in line with the requirements of GRI G4 Core Principles, UNGC and WEPs Progress Reports. Bilin System within Abdi İbrahim was used in compilation of the data in human resources area included in the report which consists of the qualitative and quantitative data compiled from the company’s headquarters, production facilities, and field business units, and the meters, online measurement devices and weighing methods supplied within the company were used in creation of the environmental data.

As it can be seen in the report, Abdi İbrahim maintained systematic and comprehensive projects with internal and external stakeholders in the light of the materiality and stakeholder engagement principles of GRI, UNGC and WEPs reporting requirements during the third sustainability reporting period. The company aims to maintain the level and scope of implementation of the sustainability reporting study in the upcoming period.

Abdi İbrahim attaches great importance to the views of its internal and external stakeholders that it sees as an integral part of its sustainability approach. Within this scope, you can contact the below-mentioned Corporate Communications Directorate Team for all your contributions, suggestions, feedback and questions.

ABOUT THE REPORT

G4-17 G4-22 G4-23 G4-28

For inquiries regarding this report contact

Buket KoralCorporate Communications Supervisorbuket.koral@abdiibrahim.com.tr

Esra ErdinçCorporate Communications Specialistesra.erdinc@abdiibrahim.com.tr

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Components Prioritization Work of 2015-2016 Sustainability Report

G4-18 G4-19 G4-20 G4-21

Abdi İbrahim Sustainability Committee carried out the following prioritization work in consideration of the stakeholder expectations during the content creation process of 2015-2016 Sustainability Report, which was prepared in the light of G4 Core Principles of the Global Reporting Initiative. This study also guided the preparation of GRI Index included at the

end of the report. The scope of the prioritization study was limited to Abdi İbrahim and its subsidiaries.

Of T

op P

riorit

y fo

r Abd

i İbr

ahim H

igh

Vocational Training

EmploymentManagement-Employee

RelationshipsOccupational Safety and Recognition

Unsporting BehaviorCustomer Health and Safety

Customer ConfidentialityMarket Outlook

MaterialsEqual Pay for Men and WomenDiversity and Equal Opportunity

Economical PerformanceProducts and Services

ConformityCustomer Health and Safety

Customer Confidentiality

Med

ium Anti-Discrimination

Emission and WasteAnti-Corruption

Indirect Economic EffectsInvestment and Acquisition Practices

EnergyWater

Low Child Labor

Biodiversity

Low Medium High

Of Top Priority for the Stakeholders

Association of the Specified Components in Abdi İbrahim Sustainability Report Prioritization Study with GRI G4 Components

Abdi İbrahim at a Glance G4-EC

Management Mentality G4-EC

Financial and Operational Processes G4-EC

Human Resources Practices G4-LA

Product and Service Responsibility G4-PR

Contribution to Social Development G4-SOC

Environmental Policy G4-EN

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Journey of “healing” since 1912

The foundations of Abdi İbrahim, the leading organization in the Turkish pharmaceutical industry, were laid in 1912 in the Küçükmustafapaşa district of Istanbul in a small pharmacy run by Pharmacist Abdi Nadir İbrahim Bey. The “healing” journey, which began with medicines produced here by Abdi Nadir İbrahim Bey, brought the company respectively to laboratories in Mahmutpaşa and Çemberlitaş, to the factory in Vefa, and finally to the most modern production facilities built in Esenyurt in the year 2000.

Giving life to Turkey’s first and largest accredited pharmaceutical research and development center in 2008, Abdi İbrahim is in a position of paramount importance as a brave, pioneering and innovative player in the pharmaceutical industry. The company has been the leader of the Turkish pharmaceutical sector in turnover and total unit sales since 2003. In its second century, Abdi İbrahim will continue to be a pioneering company in the Turkish pharmaceutical industry, healing people around the world.

A rising value in international markets

Day after day, Abdi İbrahim grows its service network by carrying its studies and successes to international platforms, becoming an international licensor to many countries in which there are companies that hold significant places in the world pharmaceutical industry today.

Abdi İbrahim, which opened its first foreign representative in Algeria in 1999 and has been operating in Kazakhstan, Georgia, Azerbaijan, Iraq, Portugal and Albania with its own organizational structuring since 2004, also added Bosnia and Herzegovina among these countries in 2016. In line with its growth strategy in international markets, the Company, which established Abdi İbrahim Global Pharm (AİGP) in Kazakhstan in 2012 and started to invest in the most modern factory of the pharma industry in the country, established Abdi İbrahim Otsuka (AİO) with Otsuka, the giant pharma company of Japan. Abdi İbrahim founded Abdi İbrahim Remede Pharma (AİRP) in Algeria in 2014, and started to invest in the most modern factory in the pharma industry in the country. The manufacturing plant in Kazakhstan was opened at the end of 2015, and the manufacturing facility in Algeria is planned to become operational in 2017.

By exporting to 50 countries, mainly to Iraq, Albania, Bosnia-Herzegovina and Gulf countries, Abdi İbrahim continues to grow in international markets. The company also makes sales in EU countries such as Germany, Holland, Belgium, and England with its own brand.

ABDİ İBRAHİM IN BRIEF

The foundations of Abdi İbrahim, the leading organization in the Turkish pharmaceutical industry, were laid in 1912 in the Küçükmustafapaşa district of Istanbul in a small pharmacy run by Pharmacist Abdi Nadir İbrahim Bey.

ABDİ İBRAHİM AT A GLANCE

ABDİ İBRAHİM IN BRIEF

MILESTONES

VISION AND CORPORATE VALUES

FINANCIAL AND OPERATIONAL HIGHLIGHTS

7

Abdi İbrahim has become a rising value in international markets, and aims to expand its operations to the Middle East and North Africa (MENA) region, the Commonwealth of Independent States and the Balkans in the forthcoming period, and also aims to increase its exports to Europe and Canada with purchases and by establishing partnerships or via organic ways.

The widest brand and product portfolio of the industry

Developing its own products in addition to working with around 30 licensors, Abdi İbrahim also has the most extensive product portfolio in the industry, more than 180 brands and more than 360 products. Abdi İbrahim provides services in 13 treatment areas, such as antianemic, antibacterial/antiviral, dermatology, endocrine, metabolism, gastrointestinal, cardiovascular, NSAI and myorelaxants, ophthalmology, nervous system, respiratory system and urogenital system, as well as food supplement products, vitamins and minerals.

Highest employment rate in the sector

Thanks to the steps Pharmacist Abdi Nadir İbrahim Bey had single-handedly taken in the pharmaceutical industry, the name Abdi İbrahim is known for having the highest employment rate with more than 3,000 qualified staff.

With its specialized and competent 630 factory employees, the Company stands out in the industry with the largest marketing & sales team of approximately 1800 people.

World-class buildings in touch with art

With its high-tech facility which started operating in 2000 in the Esenyurt district of Istanbul, Abdi İbrahim is the leader of the century. Designed by the renowned architect Dante Benini, who is regarded as a vanguard in designing industrial buildings and pharmaceutical production facilities, the facility was set up on a field of 83,000 square meters with a 100 million dollar investment. Exemplified world-wide, the facility produces high-quality medicine by using modern and environmentally friendly technologies. The facility can produce 350 million units per year.

The headquarters of the company is located in the Maslak district of Istanbul, in the Abdi İbrahim Tower. Once again designed by architect Dante Benini, the Abdi İbrahim Tower brings environmentally friendly smart technologies and artistic aesthetics together. The building hosts many statues, videos, installations and paintings by local and foreign artists.

Due to its attention to worker health and safety during its operations, Abdi İbrahim received the OHSAS 18001 certificate, and also holds the ISO 14001 certificate thanks to its environmentally friendly work ethic.

Industry leader in R&D

Sparing approximately 5% of its turnover for R&D processes every year, Abdi İbrahim founded the first and largest accredited pharmaceutical R&D Center in Turkey with an investment of 40 million USD in 2008 with this sense. Providing service in an indoor area of 13,600 square meters in Istanbul-Esenyurt, with its technological equipment and architecture the R&D Center is a role model for all sectors, not only for the pharmaceutical industry, and it shows the importance attached to R&D processes by Abdi İbrahim in healing the future. At the Center, 120 researchers conduct innovation studies on the production of reference, generic and super-generic drugs.

The Company incorporates the most developed logistics center in the industry as well. The Abdi İbrahim Logistics Center, which went into operation with an investment of 35 million USD in 2010, covers an indoor area of 22,600 square meters. At the Center, all processes including material flows are computer controlled, and compared to the manual warehouses more materials can be stored in more compact areas.

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1912

The first pharmacy was established in Istanbul’s Küçükmustafapaşa neighborhood by the Pharmacist Abdi Nadir İbrahim Bey.

1916

The pharmacy launched the production of proprietary medicines: Power Syrup, Abdi İbrahim Purgative Candy, Bromo-Valerin Nadir (Quasi-Valebrom Le Grand)

1919

The first pharmaceutical factory was established. The Company launched the first ready-made drug production.

1939

The second generation took over the management of the Company; the tenure of Pharmacist İbrahim Hayri Barut commenced.

1952

The laboratories were moved to their new location in Vefa district of Istanbul.

1975

The Company was renamed “Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş.”

1981

The third generation took over management of the Company the tenure of Pharmacist Nezih Barut commenced.

1994

The Company broke ground at its new production facilities in Istanbul’s Esenyurt district.

2000

The Company’s production facilities utilizing cGMP (current Good Manufacturing Practices) standards commenced operations in Esenyurt.

2003

Abdi İbrahim became the sector leader in terms of turnover and unit sales.

Construction of the R&D Center began.

2007

The R&D Center commenced operations to develop pharmaceutical products meeting international standards.

The Company became the first Turkish enterprise to rank among “The World’s Top 100 Pharmaceutical Companies”.

Abdi İbrahim Primary School opened its doors.

Abdi İbrahim Tower commenced operations.

2008

The Company’s R&D Center became the first to be accredited by the Ministry of Science, Industry and Technology.

The corporate identity was renewed.

2010

Abdi İbrahim Logistics Center started operations in Istanbul’s Esenyurt district.

Abdi Farma was founded in Portugal.

MILESTONES

Story of healing full of achievements over 100 years

9

2011

Abdi İbrahim R&D Center got R&D Center Certification from the Ministry of Science, Industry and Technology.

1st Progress Report was issued upon signing the UN Global Compact.

2012

Abdi İbrahim celebrated its 100th anniversary.

The Company acquired a 60% stake in Global Pharm, one of the largest companies in Kazakhstan and founded Abdi İbrahim Global Pharm (AİGP). The most modern factory investment in the pharmaceutical sector in the country began.

Abdi İbrahim and Otsuka Pharmaceutical established a Joint Venture Company for Pharmaceutical sales in Turkey.

2013

Abdi İbrahim Global Pharm (AİGP) began construction on the first GMP certified production facility in Kazakhstan.

2014

Abdi İbrahim Remede Pharma (AİRP) was founded in Algeria. The most modern factory investment in the country was started.

2015

The ground-breaking ceremony of the AbdiBio Biotechnological Medicine Production Facility was held.

The healing project of Sultan Bayezid II Health Museum Complex in Edirne was carried out.

Abdi İbrahim Global Pharm, the first modern production facility in Kazakhstan, was constructed and went into operation.

2016

The manufacturing facility in Kazakhstan qualified to obtain GMP certificate.

In the Turkey R&D 250 Survey organized by the Turkish Exporters Assembly, Abdi İbrahim R&D Centre ranked #21 among all the companies, and ranked #1 among the pharma companies with the resources allocated for R&D at the rate of 6.3%.

Vision

We, as the leading Turkish pharmaceutical company, work passionately to heal the lives we touch, to be a strong international brand with innovative products and services; brave and pioneering initiatives.

Corporate Values

We Are CourageousBecause we walk to the future to discover the better one and do the undone.

We Are PassionateBecause we are aware that healing the lives is possible by producing good works with passionate people.

We Are AccountableBecause we are aware that each of us affects everyone, and we know our responsibility that we carry for a healthier society, a more livable world.

VISION AND CORPORATE VALUES

10

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Abdi İbrahim, displayed a successful performance despite the fluctuations in Turkey and throughout the world in 2015 and 2016.

Total Sales (Millions of Units)

2512016

2132015

1972014

1522013

Total Turnover (USD Million)

5462016

4632015

5382014

4282013

Total Exports (USD Million)

762016

512015

522014

522013

Domestic Market Share (USD, %)

6.32016

6.22015

5.92014

62013

Total Investments (Including international markets) (USD Million)

552016

302015

22.42014

14.62013

Total Number of Brands

1812016

1812015

1712014

1812013

Total Number of Products

3642016

3612015

3742014

4002013

Total Number of Employees (Including Subsidiaries)

3,1012016

2,5922015

2,6982014

2,8302013

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Taxes and Other Legal Obligations (k TL)

189,3012016

199,1062015

149,3892014

128,0592013

Corporate Tax (k TL)

25,0442016

37,6092015

12,7802014

4,4532013

Income Tax (k TL)

83,0242016

68,0472015

60,5852014

52,5322013

Value Added Tax (k TL)

14,9802016

38,4962015

33,4042014

24,6062013

Stamp Duty (k TL)

6322016

3812015

2372014

9482013

Advertisement and Announcement Duty (k TL)

442016

322015

542014

862013

Real Estate Tax (k TL)

7872016

7732015

7762014

8822013

Social Security Premiums (k TL)

64,7902016

53,7692015

41,5542014

44,5522013

MANAGEMENT MENTALITY

MANAGEMENT MENTALITY FOCUSED ON INTERNATIONAL LEADERSHIP

SUSTAINABILITY STRATEGY: 2020 VISION

ORGANIZATIONAL STRUCTURE

QUALITY POLICY

INTERNAL AUDIT PRACTICES

BUSINESS ETHICS PRINCIPLES

STAKEHOLDER RELATIONS MANAGEMENT

REPUTATION MANAGEMENT POLICY

MEMBERSHIPS AND SUPPORTED INITIATIVES

AWARDS AND ACHIEVEMENTS

Abdi İbrahim, which attaches great importance to the innovative management approach in order to maintain its pioneering position in the industry, is moving towards its goal of becoming one of the world’s top 100 pharma companies in 2020.

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KEY PERFORMANCE INDICATORS

Target Actual

Achieve sustainable leadership in Turkish pharmaceutical industry

Leader in Turkish pharmaceutical industry since 2003 in terms of unit sales and turnover

Market share (2015): 6,2Market share (2016): 6,3

Expanding in international markets

Exports to 50 countries

Increase rate of net sales: 151% (in international markets in 2016 compared to 2014)

Protecting the reputation of strong brand

According to the results of Turkey Reputation Index (TİE) Survey 2014 organized by İtibar Atölyesi: The most reputable company in pharma industry

According to the Corporate Image and Reputation Survey being conducted as of November 2015, a score above the industry average in the general reputation index: 88

Developing new products 32 strategic products planned to be developed in 2016

Winning awards with innovative and distinctive projects

Many prestigious awards received at national and international competitions

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Abdi İbrahim, which attaches great importance to the innovative management approach in order to maintain its pioneering position in the industry, renewed its vision by accomplishing the “POWER-Aİ Strategy Vision Project” and prepared a new road map focusing on 2020. The company continues to make significant progress in five key growth areas as “existing products, new products, international markets, pharma manufacturing services, purchasing and new partnerships” on which it focuses in line with the POWER-Aİ strategy.

Top 10 projects

“Top 10” projects prioritized in accordance with the POWER-Aİ strategies of Abdi İbrahim are as follows:

1. Abdi İbrahim Corporate Image and Reputation

2. Publicly-Developed Projects

3. From Idea to Product

4. AbdiBio

5. Business Continuity and Corporate Risk Management

6. Digitalization and Innovation Program

7. Creating an Environment and Climate with Passion for Working

8. Talent Management

9. Corporate Memory

10. Managing the Strategy Implementation Process

Abdi İbrahim, which focuses on the vision of 2020 in the journey of “healing the life and the future”, renewed its economic, corporate, social and environmental goals. In line with its new vision, aiming to make its innovative and pioneering image sustainable by taking strength from its corporate values, the Company conducts studies to make its corporate structure even stronger.

2020 targets

To be one of the 100 biggest pharma companies of the world.

To be among the first 10 companies you think of outside the pharma industry.

To be the first domestic company you think of in biotechnology field in Turkey.

To raise the international brand perception.

To be among the top 3 pharma companies that provide manufacturing service in the industry.

To be one of the first 3 companies you think of regarding social responsibility in pharma industry.

To be one of the top 3 companies in the industry in which students are most eager to work.

Economic TargetsBeing the industry leader in terms of turnover and unit sales in domestic markets since 2003, Abdi İbrahim aims to make this success sustainable. Focusing on strengthening its position in international markets by exporting to 50 countries, the Company regularly enriches its product portfolio and continues to invest in R&D for biotechnological products that provide high added value.

Continuing its investments both in Turkey and abroad, Abdi İbrahim is moving towards the goal of $1 billion in 2020 thanks to its long-term strategic plans, and rapid actions for all the opportunities and against all the threats.

Corporate TargetsThe “Power-Aİ Strategy Vision Project” has taken its place among other business processes as the Strategy Management Process, which is managed by internal resources within the Strategy and Business Development Directorate. The vision of 2020, which focuses on carrying Abdi İbrahim to the future in corporate sense, were internalized by all the employees through the internal communication activities carried out in 2015 and 2016. The Company is moving towards its aim of expanding in domestic markets and increasing its international sales volume determined within this vision by adding new competencies to both its facility and organizational capacity. Abdi İbrahim, which maintained its leadership in the domestic market by increasing its market share that was 6.2 in 2015 to 6.3 in 2016, also increased its revenue from target countries in international markets by 151% in 2016 compared to 2014.

MANAGEMENT MENTALITY FOCUSED ON INTERNATIONAL LEADERSHIP

Abdi İbrahim continues to work with the goal of becoming an international strong brand in line with the POWER-Aİ strategy.

SUSTAINABILITY STRATEGY: 2020 VISION

With its experience over 100 years, Abdi İbrahim is moving towards becoming one of the world’s top 100 pharma companies by 2020.

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Chairman

Holding Finance Coordinator

Holding Purchasing Director

Internal Audit Director

CEO

Marketing and Sales General Manager

Centreal Nervous System I Unit Director

Primary Products Business Unit Director

Medical Director

Commercial Operations Director

Special Line Metabolic Business Unit Manager

Respiratory Business Unit Director

Marketing&Sales Exellence Director

Special Line&Oncology Business Unit Manager

Ophthalmology Unit Director

Multiple Treatments Business Unit Director

Centreal Nervous System II Unit Director

Consumer Healthcare Business Unit Director

International Markets Marketing&Sales Director

Abdi İbrahim Remede Pharma Managing Director

Abdi İbrahim Global Pharm Managing Director

Azerbaijan Managing Director

Georgia Managing Director

Sourcing&Procurement Director

Strategy& Business Development

Finance Vice President

M&A Financal Projects Director

Technical Operations Vice President

Global Engineering&Investment Director

Quality Operations Director

Regulatory Affairs and Market Access Director

Otsuka Managing Director

R&D Director

Legal Affairs Director

Information Systems and Technology Director

Corporate Communications Director

Abdi İbrahim periodically reviews and measures its annual goals towards 2020 with the participation of the entire managerial staff in order to make its corporate structure identified with long-established, reputable and innovative qualities sustainable. The results obtained at this point show that Abdi İbrahim is moving rapidly towards the goal of becoming one of the world’s top 100 pharma companies in 2020.

Environmental and Social Targets Abdi İbrahim also introduces reference practices in the social and environmental areas thanks to its corporate structure built on solid economic foundations. Considering the impact on the environment in all of its production processes, the Company conducts its business organization in the production and administrative functions with the principle of “respect to the environment.” The Company uses effective management of natural resource consumption in line with its strategy for the effective use of resources and aims to minimize its environmental impact, including mainly its carbon emissions, by integrating recent technological developments into production and administrative infrastructure in an efficient manner.

As one of the most deep-rooted private sector organizations in Turkey, Abdi İbrahim delivers corporate social responsibility activities highly appreciated by the public in the areas of social health, education, culture & art, and environment, and plans to conduct “long-term” and “result-oriented” projects in these areas in line with the social needs during the future period.

ORGANIZATIONAL STRUCTURE

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Quality PolicyDetermined to provide the highest level of safety in its service for human health, Abdi İbrahim ensures full compliance with local and international standards and GMP requirements in its pharmaceuticals production processes and other functions. The company constantly improves its work in this field through internal/external audits and trainings, establishing and developing a quality system to be embraced and upheld by its employees.

The Internal Audit Department has been operating under the umbrella of Abdi İbrahim since 2006 and is focused on adding value to the Company’s risk management, control and corporate governance processes through a risk-centered approach. The Audit Committee Regulation and Internal Audit Regulation, defining the working principles of the department, came into force in March, 2013, following the approval of the Board of Directors.

A transparent, accountable, ethical business approachAbdi İbrahim acts within the boundaries of national and international laws during the decision-making processes and practices in the light of the corporate culture that has been created as a result of centuries-old experience. The Internal Audit Directorate, which operates independently and in an unbiased way within the Company, monitors the effectiveness, efficiency, compliance with the legal legislations and compliance with all the policies, regulations and procedures of the Company’s activities and reports them to the Board of Directors periodically.

Abdi İbrahim, which considers legal regulations as well as social norms and Abdi İbrahim Business Ethics Principles in all business processes, also acts meticulously in fighting against corruption. Based on accountability, transparency criteria and ethical values in fighting against the possible corruption cases during the business processes inside and outside the company, the Company avoids all kinds of financial dependency in business relationships, and fully and properly informs the institutions and the public that it cooperates with regards to the financial and operational data.

Abdi İbrahim, which has a high reputation in the eye of the public thanks to its deep-rooted corporate culture, did not encounter any corruption or bribery case during the reporting period.

Abdi İbrahim, acting with the knowledge since 1912 that human health is the most basic and top-priority responsibility, believes in the importance of working in a complete, correct and honest manner and always puts its standards at the highest level in this direction. The Company, which would like to carry the trust and respect of its stakeholders to the future with this approach, prepared the Business Ethics Principles by publishing the codes of conduct which it attaches the utmost importance, and shared them with its employees on December 30th, 2015 and with all the external stakeholders (suppliers, licensors, doctors and pharmacists) on February 10th, 2016.

QUALITY POLICY

Abdi İbrahim, which manufactures in line with national and international standards, is managed with a sustainable quality system.

INTERNAL AUDIT PRACTICES

Abdi İbrahim is regularly audited by the Internal Audit Directorate, which operates independently and in an unbiased way.

BUSINESS ETHICS PRINCIPLES

Abdi İbrahim put the Codes of Conduct, on which it makes no compromises during the healing journey, into writing and published the Business Ethics principles.

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Abdi İbrahim, which has adopted the principle of proactively communicating with all the stakeholders from the employees to the end users, from the NGOs to the licensors, and from the doctors to the pharmacists, manages all the communication processes in an effective way. Regularly communicating with its stakeholders through the multiple communication channels that it created by closely following the up-to-date developments, the Company makes improvements in the business processes and sustainability targets in line with the feedback received from its stakeholders.

Abdi İbrahim Stakeholder Map

Abdi İbrahim Employees: Intranet, tablet communication platform, internal magazine, e-bulletin, e-training, medical information exchange meetings, end-season and year-end meetings, social clubs, sports activities, volunteer activities, employee loyalty survey, suggestion system, development program, performance interviews, face-to-face interviews

Associations/NGOs: Project partnerships, memberships, participation in meetings

Pharmaceutical Warehouses: Visits, phone calls, corporate reputation and perception surveys

Pharmacies: Medical representative visits, letters to pharmacists, phone calls, corporate reputation and perception survey, dialogue hotline, corporate website

Physicians: Visits by medical product representatives, scientific meetings, congresses/conferences, panel discussions, letters to MDs, corporate reputation and perception surveys, market research, clinical trials, dialogue hotline, corporate website

Relevant Public Authorities and Governmental Agencies: Visits to relevant department officers, visits to head offices, membership, participation in meetings

Press Members: Press conferences, press releases, interviews, exclusive news stories, corporate reputation and perception survey

Suppliers: Visits to and audits of suppliers, assessment system, phone calls

Society: Social contribution efforts, corporate social responsibility projects, career days, corporate reputation and perception survey, corporate website, social media communication channels

Patients and Relatives of Patients: Awareness and consciousness-raising projects

STAKEHOLDER RELATIONS MANAGEMENT

Abdi İbrahim takes great care to establish healthy, trust-oriented and sustainable relationships with all the internal and external stakeholders.

In order to maintain its reputation and corporate culture based on one hundred years of know-how and expertise, Abdi İbrahim conducts all its operations in line with its vision and corporate values. Abdi İbrahim’s painstaking efforts in the area of product responsibility and high product quality has been the key factor for its strong reputation in the eyes of the general public. As indicated in the Company’s Business Ethics Principles, all R&D activities and clinical research geared towards product development are carried out in compliance with domestic legislation as well as international regulations.

Abdi İbrahim, which has achieved high reputation results in many researches so far thanks to this approach as well as the determinant works carried out in the field of reputation management, has recently attracted attention with its success in two researches. According to the results of the Turkey Reputation Index (TİE) Survey 2014 organized by İtibar Atölyesi and announced in September 2015, Abdi İbrahim, which was selected as the most reputable company of pharma industry, achieved a success above the industry average by scoring 88 points in the general reputation index among the pharma companies according to the Corporate Image and Reputation Survey conducted between November 2015 and May 2016.

REPUTATION MANAGEMENT POLICY

Abdi İbrahim consistently makes its brand recognition and reputation much stronger in the public eye.

G4-25 G4-26 G4-27G4-24

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• GS1 Organization for a Global Commercial Language

• Pharmaceutical Industry Employers Union• The Drug Awareness and Rational Drug

Association • General Secretariat of the Istanbul Exports

Association • Istanbul Association of Chemical Materials

and Exporters• Istanbul Association of Mining and Metal

Exporters General Secretariat• Istanbul Chamber of Industry• Istanbul Commerce Exchange• Istanbul Chamber of Commerce• Equality at Work Platform• Turkish Association of Human

Management • Turkish Industry and Business Association• World Wide Fund for Nature Turkey• Turkish Platform for Training and

Development• Ethics and Reputation Society• ISPE, the International Society for

Pharmaceutical Engineering• UN Global Compact (UNGC)• Global Reporting Initiative (GRI)• Women’s Empowerment Principles (WEPs)• YenidenBiz Association

MEMBERSHIPS AND SUPPORTED INITIATIVES

Abdi İbrahim, which believes in the importance and power of non-governmental organizations, is actively involved in NGOs operating in different areas.

• Industrial Energy Efficiency Project Competition, First Prize in the category of “Energy Efficient Industrial Plant”

• Edu Plus 4th Leadership Summit, Leader of the Year Award (Abdi İbrahim Chairman Nezih Barut)

• Danish Exports Association, Prince Henrik’s Medal of Honor (Abdi İbrahim Chairman Nezih Barut)

• Export Stars Competition, Committed R&D Award

• Azerbaijan Company of the Year Competition, Pharma Company of the Year

• Golden Mortar Pharmaceutical and Pharmacy Sector Achievement Awards, Industrial R&D Award

• European Business Awards, Ruban D’Honneur Award

• Farmaskop National Health Communication Competition; Achievement Awards in the Categories of Best Awareness Campaign and Best CSR Campaign

• Turkey Reputation Survey 2012, First in the Pharma Industry Reputation Ranking

• 12th Golden Compass Awards; Corporate Responsibility, Healthcare Communications and Sponsorships, Culture & Arts Awards

• Superbrands, Only Pharma Company on the Superbrands Turkey List

• Quality & Commercial Reputation Competition, Golden Award

• CIO Competition, Most Innovative Project Award

• Turkish Healthy Cities Association, The Environmental Facility Award

• 12th Golden Compass Awards, Two Golden Compass Awards

• ESQR, European Quality Achievement Award

• Nicholas Hall Awards; Worldwide Marketing Award, Creative Award

• Golden Mortar Awards, Golden Mortar Award

• MediaCat Felis Awards, Creativity Award

• Farmaskop National Healthcare Communication Awards, Seven Awards

• Farmaskop National Healthcare Communication Awards, Seven Awards

• İnovaLİG Competition, Fifth in the Innovation Strategy Category Ranking

• Kariyer.net, Corporate Achievement Award

AWARDS AND ACHIEVEMENTS

Abdi İbrahim continues to crown its achievement with awards, which it has gained on this continuous success journey since 1912.

* Some of the awards won by Abdi İbrahim before 2015.

Achievements crowned with awards*

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2015-2016 Awards and Achievements

Abdi İbrahim was awarded many prizes both in Turkey and abroad with its innovative approaches and projects it initiated in 2015 and 2016.

2015

The most reputable company of the pharma industry

According to the results of Turkey Reputation Index (TİE) Survey 2014 organized by İtibar Atölyesi and announced in September 2015, Abdi İbrahim was selected as the most reputable company in pharma industry. 64% of the respondents to TİE, which is delivered to approximately 1 million 200 thousand Internet users nationwide via e-mail, web announcements and social media channels, were male and 36% were women. The average age of the participants, 63% of whom studied at university or received higher education and 69% of those who earned 4,000 TRY and above salary, was 40.

Abdi İbrahim is on the National Team of Turkish Brands

According to “Turkey’s Global Brand Candidate Survey” which determines “Turkey’s Brands National Team” and which was conducted by DORinsight for Marketing Turkey for the second time in 2015, Abdi İbrahim managed to be among the top 11 brands as the only company from pharma industry. In the survey, which 500 people over the age of 18 from A, B, C1, C2, D and E segments representing Turkey attended, the top 11 brands that Turkish people would like to see representing Turkey in the global arena were determined.

Young people chose Abdi İbrahim as “the Most Ideal Employer”

Abdi İbrahim was selected as the most appealing employer in pharma industry in the “Ideal Employer Survey 2015” conducted in Turkey by Universum which has been making researches on the perception of ideal employer in 55 countries for 26 years. According to the survey that 42,137 people consisting of university students and young professionals attended, Abdi İbrahim, which ranked #1 in the Health/Medicine category, was selected as the most appealing employer of Turkey in pharma industry by health, medicine and science students.

Kazakhstan Foreign Active Investor Award

Continuing to strengthen its international presence with investments, Abdi İbrahim was awarded the “Foreign Active Investors Award” in Kazakhstan with the investment in Kazakhstan’s first modern production facility with GMP, which started to be constructed in 2013 and began manufacturing at the end of 2015. The award for Abdi İbrahim, which was among the 10 companies awarded for their contribution to the expansion of investments and to the development of high technologies during the industrialization process of Kazakhstan, was presented at a ceremony held in Astana on December 9th, 2015.

Turkey’s Brands National Team The Most Ideal Employer

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2016

Abdi İbrahim is among the top companies of Turkey

Abdi İbrahim succeeded in being included in the lists for the top companies of Turkey as determined by Istanbul Chamber of Industry and Turkish Exporters Assembly. Abdi İbrahim, ranking #124 in Turkey’s Top 500 Industrial Enterprises 2015 list of Istanbul Chamber of Industry (İSO) by ascending 25 more rows compared to the previous year, ranked #710 in the Top 1,000 Exporters Survey 2015 list of Turkish Exporters Assembly (TİM).

Leader in general reputation index

According to the Corporate Image and Reputation Survey conducted between November 2015 and May 2016, Abdi İbrahim scored above the industry average in the general reputation index among the pharma companies. For Abdi İbrahim, which scored 88 out of 100 in a survey built with a sample group of about 1,800 people, the survey results have an important place in the strategic road map that it will follow on the way to its targets of 2020.

Great success in foreign trade

Abdi İbrahim qualified to receive the Authorized Economic Operator Certificate which is issued by the Ministry of Customs and Trade and which has been granted to only 30 companies in Turkey. The certificate representing an international status, which simplifies the customs procedures and which is given to the reliable companies that fulfil their customs obligations, have a regular and traceable registration system, and have financial competence, safety and security standards, was granted to Abdi İbrahim on November 21st, 2016. With this prestigious certificate, Abdi İbrahim proved to be a state-approved and reliable company in foreign trade transactions.

Sultan Bayezid II Edirne Hospital is collecting the awards

Abdi İbrahim’s healing project of Sultan Bayezid II Edirne Hospital has made a tremendous impact since the day one and has been awarded many significant prizes. The awards won by the project are as follows:

Bronze Award for media relations at the Mercury Excellence Awards, one of the most prestigious awards in the communication industry in the world

Jury’s Special Award at the Golden Compass Turkey Public Relations Awards, the only awards program in the communication and public relations industry in Turkey

Bronze Award for the Year’s Social Responsibility Program and Media Relations & the Year’s Communication/Public Relations Campaign categories at the Stevie International Business Awards

Social Responsibility Award in Altın Havan Awards

Social Responsibility Award in International Corporate Social Responsibility Awards (ICSR)

Abdi İbrahim R&D Centre is the industry leader

In Turkey R&D 250 Survey conducted with “Top 1,000 Exporters Research” surveys which are the only official inventory of Turkey and the results of which were announced by Turkish Exporters Assembly (TİM) in December 2016, Abdi İbrahim ranked #21 in the list, and ranked #1 among the pharma companies with the resources allocated for R&D at the rate of 6.3%.

Initiative of the Year Award in R&D Industry

With AbdiBio, Abdi İbrahim was awarded the Year’s Initiative Award in R&D Sector at the 6th Crystal Tree Awards organized by METU Young Entrepreneurs Society. The award was granted in the ceremony organized on December 24th.

The first and only pharma company that won Yeşil Nokta Award

Blazing a trail again, Abdi İbrahim achieved to be the first and only pharma company that won the Yeşil Nokta Industry Award at the Yeşil Nokta Industry Awards Competition organized by Environmental Protection and Packaging Waste Recovery and Recycling Foundation (ÇEVKO). Abdi İbrahim won an award with the “Waste Management System and Practices That Heal the Nature Project” in the Waste Management and Practices category at the Yeşil Nokta Industry Awards Competition organized in 2016 for the third time among the leading national and international companies in Turkey which use Yeşil Nokta brand and which step forward with their contributions to the sustainable life. The award was granted in the ceremony organized on December 1st.

Yeşil Nokta AwardAltın Havan AwardsSocial Responsibility Award (ICSR)

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Hakan Onel, one of the Most Efficient 50 HR Managers

Hakan Onel, Abdi İbrahim’s Human Resources Director, was granted an award as one of the Most Efficient 50 HR Managers at the end of the survey which was organized within CHRO Summit 2016 and in which Turkey’s leading 1,000 companies were analyzed. Hakan Onel’s prize was presented at a ceremony held on November 15th.

Achievement Award for Muconex commercial

The commercial film of the new form of Muconex, one of Abdi İbrahim’s products offered in the healing journey, was granted the Achievement Award at the 2016 MediaCat Felis Awards, where the most influential and creative marketing projects of the year are awarded.

Numerous awards for Görmezden Gelmeyelim (Let’s Not Ignore)

Görmezden Gelmeyelim (Let’s Not Ignore) Exhibition of Schizophrenia Adventure from Prehistoric Ages to the Present organized by Abdi İbrahim Otsuka (AİO) was granted the Best Corporate Social Responsibility Project Award at the ACE OF M.I.C.E. Congress, Meeting and Event Awards, which is the most prestigious congress, meeting and event award of Turkey. The award ceremony was organized on March 17th. The exhibition, which was initiated to contribute to enabling the patients to become independent individuals in society by increasing the awareness of schizophrenia, was granted three Achievement Awards at 2016 MediaCat Felis Awards. The awards won in the Best WOM Project, Best Corporate Social Responsibility Campaign and Best Event Management categories were presented at a ceremony held on November 11th.

SAP Quality Award for SRM and SLC Projects

The SRM and SLC Projects, which were designed by Abdi İbrahim Global Purchasing and Procurement Management Directorate and initiated with the support of Information Systems and Technologies Directorate, were granted the Silver Award in Business Transformation category at SAP Quality Awards, one of the most prestigious awards of business and technology world. The award of Abdi İbrahim’s project, which is one of the most comprehensive SRM projects of Turkey, was presented at a ceremony held on October 27th.

Golden Owl Award for the market research of Ella

The ethnographic market research conducted by Abdi İbrahim Health Products Department with Habitus Research Company for Ella, the morning-after pill, was granted the Golden Award in the “Insightful Owl” category at the 4th Owl Awards organized by Turkish Researchers Association. The award was presented at the ceremony held on September 1st.

Most Innovative New OTC Product In Europe Award for Ella

Ellaone, which is a morning-after pill that was passed from prescription-only status to OTC and that is sold as Ella in Turkey by Abdi İbrahim, was granted the “Most Innovative New OTC Product of 2015 in Europe Award” which was announced by Nicholas Hall & Company in April 2016.

SAP Quality Award Best Corporate Social Responsibility Project Award

Golden Owl Award

Maintaining its leadership in the industry in Turkey with its market share of 6.3%, Abdi İbrahim is increasing its activities in the international markets by its facility investments in Kazakhstan and Algeria, and its exportation operations towards 50 countries.

FINANCIAL AND OPERATIONAL PROCESSES

PRODUCTION

LOGISTICS

R&D

INTELLECTUAL & INDUSTRIAL PROPERTY RIGHTS

SALES AND MARKETING

INTERNATIONAL MARKETS

INVESTMENTS

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KEY PERFORMANCE INDICATORS

Target Actual

Add momentum to Turkey’s growth

Total taxes paid in 2015 and 2016: TL 388.5 million

Make investments to sustain competitive advantage

Total amount of investment during 2015 and 2016: USD 85 million

Boost value added through R&D efforts

2015 and 2016 R&D budget: TL 100.5 million

Achieve sales performance to support future targets

Total sales income as of year-end 2016: USD 546 million

Expand product portfolio with reference drugs

181 brands and 364 products as of year-end 2016

Investing with an innovative approach

Laying the foundations of AbdiBio, the biggest biotechnological manufacturing facility in Turkey in 2015

Expanding the international operations by investing on facilities

Starting the manufacturing process in the facility in Kazakhstan and conducting the first export process

Starting the facility investments in Algeria

Increasing the number of patent applications

Number of patent applications:5 patents in 20157 patents and 1 design in 2016

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Abdi İbrahim carries out its productions in the Esenyurt district of Istanbul, at its 64,900 square meters closed-space facility set up on an 83,000 square meters of ground. With 100 million dollars of investment in the year 2000, the facility was put into service using the most state-of-the-art technologies in the world, and can produce 350 million units per year. With the investments of 150 million TRY budget launched in 2016, the capacity will be increased to 565 millions of unit in 2017 and 735 millions of unit in 2018.

In the facility, where modern and green technologies are used for high-quality pharmaceutical manufacturing, all the production processes are conducted by a nearly 650-member specialist team. 193.6 million units of pharmaceuticals were produced in 2015 at the plants with solid, semi-solid and liquid production capabilities. 18 percent of the solid form production and 40 percent of liquid and semi-solid forms of production were manufactured by contract for the world’s leading pharma companies. In 2016, 220.3 million units of pharmaceuticals were produced; 18 percent of solid form production and 44 percent of liquid and semi-solid forms of production were manufactured by contract for the world’s leading pharma companies.

High quality standards are our priorityIn the production facilities, which are audited and approved by the authorities and companies of the leading countries in pharmaceutical manufacturing in Europe and throughout the world, world-renowned brands’ high-speed production and packaging machines equipped with the cutting-edge technology are used.

Abdi İbrahim aims at a 5% improvement in its factory average in the OEE efficiency of the production machines via operational perfectionism studies. In addition, the speed increase by 28% was achieved and the machinery efficiency increased with the acceleration works conducted on the most manufactured products in packing machines.

Audits of customer companies and authoritiesAbdi İbrahim’s Production Facilities were subject to 31 successful audits by both local and foreign customers (26) and national and international authorities (5) in 2015 and 2016. In 2015 and 2016 the following audits were performed by healthcare authorities and customer companies:

Audits during 2015Date of Audit Audit Firm20-21 January Nuvisan, Germany7-8 April ISO9001:2008 Auditing

Quality Systems28 April Stada, Germany1-2 June Abbott, USA17-18 June TEVA25 August Sanofi, Turkey27 August Reckitt Benckiser, UK1-2 September Welding, Germany8-9 September Sandoz, Germany14-15 September The Ministry of Health of

Turkey (TİTCK)15-16 September Mylan, USA3 November Pharmanel, Greece4 November Biogaran, France

2016 yılı denetimleriDate of Audit Audit Firm14-15 January Pfizer, USA14-17 March European Medicines Agency

(Infarmed-Portugal)29 March Sandoz, Turkey6-7 April Helm AG, Germany18-20 April Saudi Food and Drug

Authority (SFDA)26-27 April ISO9001:2008 Auditing

Quality Systems4-5 May Meda, Turkey1 June Onko Pharmaceuticals,

Turkey16 June Orifarm, Denmark22-23 June KRKA, Slovenia18 August CREO, UK11-12 October Astra Zeneca, UK26-27 October Biogaran, France31 October Glenmark, Germany1 November GE Pharm, Bulgaria3-4 November Servier, France29-30 November Otsuka (OJPC), Japan15 December Pensa Pharmaceuticals

(Actavis)

PRODUCTION

Abdi İbrahim’s manufacturing facilities with the cutting-edge technology continue to work with an annual production capacity of 350 millions of unit..

In 2010, Abdi İbrahim launched the Abdi İbrahim Logistics Center, which has an indoor area of 22,600 square meters and a total storage capacity of 14,500 pallets, and with a total investment of 35 million USD.

In 2015, over 4,000 Euro pallets were exported to 40 countries, and more than 14,000 Euro pallets were shipped to 17 contracting companies from the Logistics Center, while 42,000 pallets were delivered to the product warehouse.

In 2016, more than 4,000 Euro pallets were exported to 46 countries, and 18,000 pallets were shipped to 21 contracting companies from the Logistics Center. Within the year, more than 50,000 pallets were moved.

LOGISTICS

At Abdi İbrahim Logistics Centre, all transactions including stock movements are carried out under computer controlled conditions.

In 2015Manufacturing of 193.6 millions of unit

In 2016Manufacturing of 220.3 millions of unit

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Abdi İbrahim, being aware of the need for R&D which is the main determinant of development and innovation in order that science can serve to quality and economic solutions for human health, is among the leaders of national pharma industry with 116 patent applications as of the end of 2016.

2016, when the R&D budget reached up to 40.35 million TRY, was a fruitful year for Abdi İbrahim in terms of technology transfer along with development projects and process improvement and alternative resource projects as well as university-industry collaborations. The prominent projects and developments are as follows:

Dermalix Wound Dressing developed in cooperation with Ege University is in the clinical trial phase. It is aimed to develop a biodegradable and easy-to-use product that enables a safe and rapid recovery and allows the wound healing to be monitored as it is transparent.

The R&D process regarding the angiotensin receptor blocker/diuretic combination to be put into use for the first time in the world has been successfully completed.

Abdi İbrahim achieved a phenomenal success by licensing the generic version of the bisphosphonate/cholecalciferol tablet combination for the first time, which is commonly used in the treatment of osteoporosis.

The generic version of an agent used in iron chelation treatment has been successfully completed for Europe, Canada and other markets, and the licensing applications have been made.

The current R&D portfolio is being worked on in a global frame that involves Europe, the USA, Brazil, Australia, South Korea, North Africa, Middle East and Turkic Republics, and the investments are structured accordingly.

R&D

Abdi İbrahim, having the R&D culture since the day it was founded, allocates 6.5% of its annual turnover to R&D activities.

Number of patent applications

20155 patents

20167 patents + 1 design

A total of 116 patent applications

INTELLECTUAL & INDUSTRIAL PROPERTY RIGHTS

Abdi İbrahim met world-class standards with its capabilities in the area of pharmaceutical production technologies by making a total of 12 patent applications during 2015 and 2016.

R&D budget (million TRY)

40.352016

60.122015

46.822014

40.952013

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Abdi İbrahim has the most advanced product portfolio of pharmaceutical industry with more than 180 brands and more than 360 products. The Company serves human health with its products in almost all therapeutic fields. The goal is to heal many more people year by year by increasing the market share of existing products and creating other strong brands.

Abdi İbrahim’s organized and strong field team of nearly 1,800 employees nationwide provides service to nearly half of the 141,000 doctors in Turkey and is in direct contact with approximately 15,000 pharmacies. The Company adopts an effective and efficient approach in accordance with the advancing technologies and ever-changing industry conditions in sales and marketing channels.

More than 180 brandsMore than 360 productsSales team of about 1,800 people

SALES AND MARKETING

Abdi İbrahim aims to heal more people every year with Turkey’s most competent and powerful marketing and sales team of about 1,800 people.

Abdi İbrahim, exporting to 50 countries, continued to expand in international markets in 2015 and 2016 as well. Some of the prominent highlights of the company in 2016 are as follows:

The first high-tech biosimilar product was put on market in Algeria in 2016.

All the demands of the government regarding diabetes, hepatitis, HIV, and tuberculosis in Kazakhstan were met for the first time.

The first export process from Kazakhstan factory was conducted.

A representative office was opened in Bosnia-Herzegovina.

Countries of the Gulf Cooperation Council have been selected as the strategic markets, and the licensing works of nearly 20 units have started.

With a product in the osteoporosis field, it has become the first alternative to the reference products in many EU countries, especially in Portugal.

Global clinical trial resolution was taken for a new combination product in gastroenterological field.

Strategic countries*• Algeria• Kazakhstan• Iraq• Albania• Georgia• Azerbaijan• Bosnia-Herzegovina • Gulf Cooperation

Council

Other countries**• Yemen• Jordan• Libya• Afghanistan• UK• Portugal• Czech Republic• Germany• Uzbekistan

Licensed countries• Canada• Russia• Ukraine• Lebanon• Belarus• Tunisia• Morocco• South Africa• South Korea• EU Countries• Australia• Colombia

Licensed product distribution in international markets (unit)

50 Countries in which Abdi İbrahim operates with its own organization (Kazakhstan, Algeria, Azerbaijan, Georgia)

31 The Balkans

5 EU (Number of the licences on behalf of Abdi İbrahim)

338 EU (Number of out-licences)

4 Canada

43 Middle East and North Africa

9 CIS (Commonwealth of Independent States)

INTERNATIONAL MARKETS

One of the greatest goals of Abdi İbrahim is to become one of the strongest companies in the world by maintaining its growth in international markets.

* Strategic countries where Abdi İbrahim has its own company, factory and sales force** Countries where Abdi İbrahim brand is sold through the distributors

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Abdi İbrahim, which stands out with its investor identity in pharma industry, has spent over 400 million USD for the investments since 1990. Continuing its investments in its manufacturing facilities in Istanbul Esenyurt, Abdi İbrahim pertinaciously moves towards its aim of taking root in international markets with its recent investment thrusts. The Company, which started manufacturing in 2015 by making the most modern manufacturing plant in the country under the roof of Abdi İbrahim Global Pharm (AİGP), a subsidiary in Kazakhstan, made its second facility investment abroad in Algeria. The factory under the roof of Abdi İbrahim Remede Pharma (AİRP) founded in Algeria will start manufacturing in 2017.

The biggest biotechnological manufacturing facility in Turkey: AbdiBio

2015 is the year for Abdi İbrahim to keep pace with the biotechnological revolution experienced throughout the world and to realize the projects in this field. Today, the market share of biotechnology-derived products in the Turkish pharma industry is 17% and this rate is expected to exceed 25% in the coming years. Therefore, Abdi İbrahim started the preparations to manufacture the biotech medicines, nearly all of which are imported to meet the needs of Turkey. The groundbreaking ceremony of AbdiBio, which will be initiated with an investment of 100 million USD, was held on June 26th, 2015. AbdiBio, which will be the largest biotech pharma manufacturing plant of Turkey when completed, is planned to be operational in 2017. The biotechnological drugs to be produced at AbdiBio are expected to be used in Turkey as well as to be exported.

INVESTMENTS

Believing in the power of investment as a well-established company, Abdi İbrahim continues its investments in Turkey and in international markets.

Annual Investment (Including international markets) (USD million)

552016

302015

22.42014

14.62013

Abdi İbrahim designs processes that its employees, who are considered a talent, can reveal their potentials, and provides opportunities and environments for their continuous development.

HUMAN RESOURCES PRACTICES

HUMAN RESOURCES STRATEGY

RESPECT FOR HUMANITY AND PARTICIPATORY MANAGEMENT

CAREER AND PERSONAL DEVELOPMENT

INFORMATION SHARING AND APPRECIATION

SUPPORTING LOCAL AND FEMALE EMPLOYMENT

OCCUPATIONAL HEALTH AND SAFETY PRACTICES

HUMAN RESOURCES INDICATORS

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KEY PERFORMANCE INDICATORS

Target Actual

Continuously supporting the development of its employees as a talent, and preparing them for the upper positions

Rate of intercorporate promotion among the people employed as manager or in senior positions in 2016: 70%

Rate of rotation, which is considered an important development activity, in 2016: 5.8%

Improve employee competency through training programs

Training period per employee in 2016: 44.5 hours (Sector average: 39 hours)

Eliminate risks by creating world class OHS practices at the production facilities and logistics center

OHS rules training period per employee in 2016: 11 hours

Promote female employment and equal opportunities

Rate of female employment at Abdi İbrahim Headquarters in 2016: 52%

Rate of female employment at Abdi İbrahim R&D Center in 2016: 70%

Retention of employees with high potential and high performance

Rate of loss in this target group in 2016, which is called as unwanted loss rate: 6%

Supporting the employer brand on social media platforms and in universities in order to attract the high-potential talents

The ranking of the Facebook page, which was opened in December 2016, on career pages according to SocialBoom ratings: 1.

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Abdi İbrahim, which invests in its products, R&D and facilities as well as its employees, has more than 3,000 employees with professional knowledge and experience above the industry average. Adopting reliability and transparency principles, Abdi İbrahim’s employees working at the centers -designed like a living space- consider the corporate culture and ethical values, nourished with a century-old experience, as the touchstone of their operations.

Priorities of Abdi İbrahim’s human resources strategy

Creating an environment and climate where employees work passionately.

Excelling in talent management and succession.

Building a performance culture identified with strategic priorities.

Improving the technical competences and leadership skills proposed by the strategy.

Building the system and sustainable processes required by the HR infrastructure.

Abdi İbrahim, which believes that long-term visions and goals can be achieved only with the right team, sees anyone in its team as a talent. The Company, which attaches great importance to talent management in terms of creating an environment and climate where employees work passionately, conducts its talent management processes in seven steps:

First step - employmentAbdi İbrahim strengthens its organizational structure in parallel with the steady growth in the business volume by conducting recruitment processes in an objective and transparent manner.

Abdi İbrahim, which presents the recruitment processes and the benefits offered to its employees to the attention of its stakeholders in a clear and understandable manner on the corporate website (www.abdiibrahim.com.tr/Kariyer), also opened a microsite (www.iyilestirenyuzler.com) that provides information about the mass recruitment processes of medical representatives.

Second step - orientationNew members of the family are welcomed with the “I’m in the Family Orientation Program” where adaptation of new members to the job and culture is accelerated in a friendly environment.

Third step - performance management (What I did)The Company shapes its human resources processes within the framework of the concept of performance culture as part of the 2020 vision and is dedicated to defining roles and responsibilities of employees according to its long-term targets and policies.

Fourth step - evaluation of competence (How I did)With the 360 degree competence evaluation process, the employees are mirrored regarding how they achieved their goals.

Fifth step - feedback and development planning: The Company assesses business results (What?) with the performance management system, and behavioral expectations (How?) with the 360 degree competence evaluation process. With observational feedbacks throughout the year, the aim is to develop an environment of constant dialogue between the employees and directors.

Sixth step - salary and bonus managementThe success displayed throughout the year is evaluated with the performance management system. The goal is to create a fair salary system taking into consideration performance and equivalent positions in the pharmaceutical industry. Individual success is rewarded with bonuses within a sense of win & share in line with the financial success of the company.

Seventh step - potential leaders of the futurePotential leaders of the future are the individuals who distinguish themselves during the talent management processes and for whom Abdi İbrahim aims to speed up improvements. Employees that demonstrate sustainable performance for two years are evaluated in terms of performance and potential. Analysis tools build an infrastructure, the committees gathering to discuss the evaluation results make the final decision, and the potential leaders of the future are selected.

HUMAN RESOURCES STRATEGY

Abdi İbrahim, which has renewed its human resources strategy within the frame of its vision of 2020, offers environments designed as a living space for its employees.

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RESPECT FOR HUMANITY AND PARTICIPATORY MANAGEMENT

Abdi İbrahim, always taking the opinions and suggestions of its employees into account, initiated 81 projects through the AİDEA Suggestion System.

AİDEA

Abdi İbrahim implemented the AİDEA Suggestion System in March, 2011, to create a working environment based on open communication where employees become a part of the decision making mechanism with their ideas and suggestions and contribute to the Company’s sustainability targets. To date, AİDEA has received 750 personnel suggestions and has implemented 81 projects, which resulted in a savings of over TL 700,000. Some 5% of the amount saved was presented to the suggestion-providing employees as rewards.

CAREER AND PERSONAL DEVELOPMENT

Abdi İbrahim, which provides continuous professional and personal development opportunities, supports its employees throughout their working life.

Abdi İbrahim AcademyOffering development solutions in order to support the strategic priorities and to create a common culture, the Abdi İbrahim Academy consists of corporate academic programs, basic technical trainings, e-trainings, social learning, and the aipedia corporate library. The employees plan their development by using “Competence Development Guides”, join development programs with in-class trainings, and receive e-training through the training management system. Some of the nine schools in the Academy are highlighted below:

Journey to the Top: It is a career development program that aims to support the medical representatives throughout their entire working life. The programs aiming to provide the necessary mental, emotional and behavioral skills to do well in representation works have been planned by taking into account the different needs in terms of professional seniority.

I’m in the Family-Orientation Program: A program developed to accelerate adaptation of newly joining employees and to support them during their first six months.

Medico Marketing Institute-MMI: A multidimensional development program that supports the development of marketing teams throughout their career steps, covering many development methods and tools with the aim of transferring learning to life experience.

Pharma Mini MBA-PMM: A multidimensional, credit-based, 15-month development program, including awards and projects, that provides a scope for all expert-level employees with the aim of promoting a change in perspective to deliver the strategy and to train new generations to assume leadership roles in 2020.

Masters Club (Mentorship): A program intended to increase leadership capability aligned with the corporate targets and strategies and, more importantly, to support adaptation to the corporate culture or to contribute to the development of individuals who are assigned new roles or promoted.

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AİnsanThe Aİnsan Human Resources System is accessible to all Abdi İbrahim personnel via the corporate website (http://ainsan.abdiibrahim.com.tr), and it allows employees to:

• Access their payroll data,• Update their personal information,• Request leave,• Prepare a target card and carry out

performance monitoring or a 360 Degree Competence Assessment if the employee is part of the Technical Head Office of Abdi İbrahim Tower management,

• Access internal organizational charts as well as various other applications.

PusulaA support website for the countrywide sales-marketing team, Pusula (“Compass”) is accessible at https://pusula.abdiibrahim.com.tr and provides wide-ranging support to the Company’s sales-marketing operations staff.

CosmosThe Cosmos portal (https://cosmos.abdibrahim.com.tr) was prepared for Abdi İbrahim’s people employed in international operations and enables personnel to exchange announcements and files, manage activities, monitor budget, sales and inventory, enter business process data and carry out data integration with the database at the Abdi İbrahim Head Office.

WorkflowThe Workflow, a website for the Abdi İbrahim Head Office and Production Facilities (http://workflow.abdiibrahim.com.tr), allows associates to prepare vehicle request forms, business card requests and overseas business trip forms, and also to register their domestic and overseas expenses, depending on the travel.

AileceAbdi İbrahim’s intranet application, Ailece (“As a Family”), offers all employees a user-friendly sharing platform.

Kazasız Çalışanların ÖdüllendirilmesiAdopting as a reference not only domestic legislation but also international best practices in Occupational Health and Safety, Abdi İbrahim presents “Accident-Free Performance of the Month Awards” to employees to foster a occupational safety culture among the workforce.

Çevreci Çalışanların ÖdüllendirilmesiWith the belief that environmental sustainability targets can only be attained with the voluntary participation of stakeholders, Abdi İbrahim rewards the “Eco-Friendly Employee of the Month” to raise environmental awareness among personnel. The Company first implemented this practice in October, 2008, and plants five saplings for every employee recognized.

İş Sağlığı ve Güvenliği Çalışanı ÖdüllendirmesiAn “OHS Employee” award is given every three months to recognize those employees who abide by the Occupational Health and Safety Policy principles of Abdi İbrahim, in order to raise OHS awareness and cultivate an OHS culture at the Company.

Güvenlik Görevlilerine Yönelik EğitimlerAll security guards at Abdi İbrahim receive an annual procedural training.

INFORMATION SHARING AND APPRECIATION

Abdi İbrahim has many practices initiated in order to strengthen internal communication and employee loyalty.

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Boasting an enhanced field organization spread across Turkey, Abdi İbrahim supports local employment by “collective recruitment” for field promotion teams. With regard to promotions, when choosing between two individuals with the same managerial potential, the Company prefers the local candidate. As a result of this policy, the rate of promotion among the local community to senior management (e.g. regional manager, product manager, director, etc.) has reached 70%.

Abdi İbrahim Head Office actively supports female employment and 52% of all employees at the headquarters are women. The Company places special emphasis on the career development of female employees. Gender distribution in management roles within the company is as follows:

SUPPORTING LOCAL AND FEMALE EMPLOYMENT

52% of the employees of Abdi İbrahim, which actively supports the local employment and women’s participation in business life, in the headquarters are women.

Employer-Employee RelationsThere are no trade unions at Abdi İbrahim. The Company respects employee rights in accordance with industrial relations legislation and audits its suppliers on a regular basis. At Abdi İbrahim, employees are represented in various industrial relations platforms, especially those related to occupational health and safety policies.

The gender breakdown of Abdi İbrahim senior management

Factory Head Office Field Sum Total

Male Female Male Female Male Female

Director and Above 3 1 13 5 0 0 22

Manager 7 9 30 21 0 0 67

Executive 11 19 36 73 124 7 263

Overall 21 29 79 99 124 7 352

Abdi İbrahim believes that institutionalization in OHS includes not only the appropriate technical equipment and health facilities and equipment, but also the internalization of a corporate OHS culture across all levels of the organization. In addition to domestic legislation, the Company pays utmost attention to compliance with international standards, such as OHSAS 18001, and strives to raise employee awareness through training activities.

At Abdi İbrahim, specific targets are set every year to lower the general accident rate. The Company’s general accident rate covers all accidents which require employees to take a leave of more than one day and is calculated according to the following formula:

Accident frequency rate = Number of accidents with work day loss × 1,000,000/Total annual working hours

Accident severity rate = Total work days lost × 1,000,000/Total annual working hours

General accident rate = Accident frequency rate × Accident severity rate/1,000

The employees of Abdi İbrahim are provided with occupational health and safety training every year. In 2015 5.28 hours per person and in 2016 3.6 hours per person worth of training was delivered at the Company. Each year, risk and protection parameters in the work environments, work accidents, and near-misses are taken into account during the preparation of the training programs.

OCCUPATIONAL HEALTH AND SAFETY PRACTICES

Attaching great importance to the internalization of OHS culture in all business processes, Abdi İbrahim regularly provides his employees with training on this subject.

Accident Rate by Years (%)

2013 2014 2015 2016

2.57 5.11 0.820 0.815

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1,032 (76%)

1,222 (76%)

Field

20162015

322 (24%)

380 (24%)

Headcount at the End of Period

2,5712016

2,1452015

2,0712014

2,1112013

Number of Employees

Breakdown by Education% of Abdi İbrahim employees have at least a Bachelor’s degree.

Demographic Data

HUMAN RESOURCES INDICATORS

Abdi İbrahim provides its employees with extended social rights as well as a working environment of an international standard.

Abdi İbrahim’s priority in human resources area is to design processes that its employees can demonstrate their potential and to provide opportunities and environments for their continuous improvement. Adopting active employment policies in a manner which is consistent with the growth plans, the Company provides strong support to the economy of Turkey.

Budget Headcount

2,5312016

2,2042015

2,2632014

2,7942013

Average Headcount

2,4712016

2,2542015

2,1992014

2,5522013

Headcount Including Subsidiaries*

3,1012016

2,5922015

2,6982014

2,8302013

* Headcount by Year (including overseas representative offices, Reformed, Abdica, Otsuka and subcontracted employees)

Breakdown by Gender At Abdi İbrahim, a strong corporate supporter of female participation in employment, 52% of Head Office employees are women.

Master’s Degree and Above

237 (9%)

2016

188 (9%)

2015

Two- or Four-year University Graduate

1,875 (69%)

2016

1,556 (74%)

2015

588 (22%)

2016

349 (17%)

2015

Primary School and High School

FemaleMale

131 (46%)

159 (46%)

Aİ Tower (Headquarters)

20162015

151 (54%)

188 (54%)

416 (61%)

463 (61%)

Technic HQ

20162015

261 (39%)

298 (39%)

37%

Countries

20162015

63%

37%

63%

Married

Single

Marital Status Breakdown

1,565 (68%)

1,807 (67%)

20162015

722 (32%)

899 (33%)

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Breakdown by Function

White Collar

Blue Collar

1,736 (84%)

2,261 (84%)

20162015

404 (16%)

449 (16%)

White and Blue Collar Employees Abdi İbrahim’s active human resources operate many functions, including production, sales-marketing, and corporate governance at the same time; 84% of it is composed of white-collar employees and 16% is composed of blue-collar employees as of year-end 2016.

Headcount Breakdown

Medical Representatives

1,208 (53%)

1,478 (55%)

Regional Director

106 (5%)

124 (5%)

Head Office175 (8%)

198 (7%)

Factory572 (25%)

630 (23%)

R&D103 (4%)

126 (4%)

Marketing129 (6%)

154 (6%)

20162015

Abdi İbrahim

1122016

932015

Regional Director

Profile of Field Employees

Reformed

72016

82015

Countries

82016

72015

Abdi İbrahim Global Pharm

72016

42015

Abdi İbrahim Otsuka

52016

52015

Total

1392016

1172015

Abdi İbrahim

1.3642016

1.0882015

Medical Representatives

Reformed

792016

852015

Countries

372016

662015

Abdi İbrahim Global Pharm

472016

522015

Abdi İbrahim Otsuka

352016

352015

Total

1,5622016

1,3262015

Geographical Breakdown of Employees

Istanbul Region

2832016

2242015

Konya Region

612016

552015

Kadıköy Region

200

167

Antalya Region

78

65

Bursa Region

113

101

Samsun Region

62

56

İzmir Region

235

180

Trabzon Region

77

74

Ankara Region

249

180

Diyarbakır Region

55

54

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

PRODUCT AND SERVICE RESPONSIBILITY

MEDICAL

CLINICAL RESEARCH

PRODUCT SAFETY (PHARMACOVIGILANCE)

LICENSING AND MARKET ACCESS

PRODUCT INFORMATION HOTLINE

Abdi İbrahim, which is highly sensitive about product responsibility and product quality, touches the lives of more and more people every day and heal them.

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KEY PERFORMANCE INDICATORS

Target Actual

Respond fully and rapidly to patient and health personnel questions about product use

Total number of adverse reactions and medical information questions answered in 2015 and 2016 via product hotline or e-mail: 1,251

Full compliance with legal regulations in the area of product responsibility

Number of cases in violation of the Pharma Sector Marketing Legislation: 0

Establish a pharmacovigilance system with international recognition

Total number of audits carried out during 2015 and 2016 by licensor firms: 5

Increasing the number of product licenses and the number of products/forms included in reimbursement

Number of licenses obtained in 2015 and 2016:74 licenses in Turkey422 licenses in 45 countries

Number of products/forms included in reimbursement in 2016: 32

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The Medical Department is responsible for the basic products and services of the Company concerning the newly joining medical representatives as well as medical ethics and promotional guidelines. The monthly medical update is shared accordingly with the entire team via the Company’s intranet page. In addition, recent developments are distributed as the “Weekly Medical Agenda” via e-mail. Another area of responsibility for the Medical Department is creating up-to-date contents for the relevant products for physicians and ensuring compliance of such contents against promotional guidelines. The Medical Manager is responsible for ensuring preparation of product presentations on the tablets that the medical representatives and regional managers work with. The compliance of sample promotional materials to be given to physicians is also monitored by this department.

All product inquiries from health personnel and from patients and their relatives are responded to within 24 hours. The Medical Department also discusses product information and details on new product launches on scientific platforms with physicians and shares their suggestions for new products with the Business Development Department. Short product information (KÜB) and user guidelines (KT) for all products are written and updated by the Department in coordination with the Licensing Department.

Abdi İbrahim consistently increases its clinical research budget every year. Designed to discover new therapies or improve and compare current therapies, these studies make use of samples taken from volunteers when deemed necessary. Since these studies concern key medical ethics issues, such as the protection of rights, health and well-being of these volunteers, Abdi İbrahim carries out such clinical research in a highly meticulous manner. To this end, the Company conducts all of its clinical research in compliance with Good Clinical Practices (GCP) as well as with applicable Ministry of Health legislation such as the Regulation on Clinical Research. Furthermore, in conjunction with international legislation, the approval of the Ethics Committee and Competent Authorities is received prior to the initiation of clinical research projects.

In the field of clinical trials, which was divided into four phases according to the nature of the research, Abdi İbrahim has conducted retrospective and observational studies in various areas as of 2016. The Company, conducting the approval applications of the Phase 3 trials to be launched in EU countries and Russia in 2018, also provided partial support for the “Researcher Initiative Clinical Research” requests from doctors which were in compliance with the regulations.

In addition to the interventional clinical studies, Abdi İbrahim provides scientific discussion environments by holding advisory board meetings in different fields. Consensus reports are issued after the meetings in order to ensure that the outputs of these meetings reach wide masses.

Abdi İbrahim’s, which considers product safety (pharmacovigilance) an indispensable principle, Pharmacovigilance Department that is accessible 24/7 contributes to the safe use of its products by carrying out its activities for product safety in line with the legal requirements and company procedures. The Company, recording all kind of safety information about the medicines in its product range, continuously evaluates the risks and benefits of the products during the life cycle of the product.

Abdi İbrahim uses the Ministry of Health’s Regulation on Monitoring Safety of Medicinal Products for Human Use as a reference in product safety issues. In export operations, the Company pays utmost attention to compliance with pharmacovigilance laws and regulations in the relevant countries.

In addition to complying with domestic and international laws, Abdi İbrahim considers that it is an ethical responsibility to monitor all undesired effects of its products, while abiding by patient data confidentiality. The Company thus duly issues reports analysing the safety data of products as well as other safety reports and delivers these to the relevant ministry. Conducting internal training activities in line with the continuous improvement approach, the Company provides comprehensive product safety (pharmacovigilance) training to the personnel of third party firms within its sphere of influence.

Authority and Licensor Company AuditsAbdi İbrahim pharmacovigilance system is subject to the audit of the Ministry of Health of Turkish Republic as per legal regulations. Within this scope, Abdi İbrahim pharmacovigilance system which was initiated under the supervision of the Ministry of Health in 2015 has been documented to be carried out within the framework of the relevant legislation in accordance with the principles of “Good Pharmacovigilance Practices”. This system, which regularly undergoes internal audit as specified in the company procedures, was found successful in the years of 2015-2016 by four foreign licensor firms. These practices have a significant role in the improvement of the system.

MEDICAL

Under the head of the Medical Directorate, which is the mirror of Abdi İbrahim’s ethical image, there are Medical, Clinical Research and Pharmacovigilance Departments.

CLINICAL RESEARCH

Abdi İbrahim regularly increases its budget allocated for clinical trials for the development of treatment modalities.

PRODUCT SAFETY (PHARMACOVIGILANCE)

Abdi İbrahim’s pharmacovigilance system was subject to three successful audits during the years 2015 and 2016.

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With more than 180 brands and more than 360 products as of year-end 2016, one of the main pillars of Abdi İbrahim’s business processes is product licensing. Abdi İbrahim conducts all business processes in line with applicable legislation in Turkey and closely monitors regulations and guidelines issued by international health organizations.

Preparing the product license file, making the license application, following up the evaluation process of health authorities in Turkey and in the relevant country, approval of the license, obtaining the authorization of sale, renewal, cancellation or transfer of the license, monitoring the timeliness of the files of the marketed products, applying for the necessary variations, and following the approval process are all carried out by the Regulatory Affairs Department. The Market Access Department is responsible for pricing the new product at the licensing stage, enabling its acceptance in the list by making the reimbursement application after obtaining license, entering it in electronic prescription systems, tracking the distribution documents, and other processes of putting into use.

The price movements of molecules and products that are available in the market and approved by the Ministry for release are followed, and the necessary actions for the affected products are taken by the Market Access Department. In 2016, a total of 32 products/forms were included in reimbursement. Operating in eight countries in addition to Turkey with its own company, factory and/or sales force and exporting to 50 countries, Abdi İbrahim’s products are licensed in several countries throughout the world by International Markets Regulatory Affairs Department within the Directorate.

In 2015 and 2016, a total of 74 licenses in Turkey and 422 licenses in 45 countries in international markets were obtained. Abdi İbrahim applies for the renewal of the license for one time only at the end of the first five years following the acceptance of the product license. Within the scope of the compulsory inspection of GMP (Good Manufacturing Practices) brought to the applications of import license by the Ministry of Health of Turkish Republic in 2009, the Ministry of Health conducted audits for 11 manufacturing plants located abroad in 2015 and 2016 and the GMP certificates of 13 products manufactured in these plants were issued.

In 2015 and 2016;74 licenses were obtained in Turkey,422 licenses were obtained in 45 countries.

32 products/forms were included for reimbursement in 2016.

Adhering to the principle of developing relationships based on mutual communication and transparency with the stakeholders, Abdi İbrahim provides service to the patients/patient relatives and health professionals 24/7 regarding the product adverse reaction notices and quality complaints through the pharmacovigilance and medical information hotline within its own institution. Attaching great importance to the expectations and suggestions of its stakeholders, the Company appointed the Quality Operations Group Directorate for quality complaints, the Medical Directorate for Medical Information, and the Pharmacovigilance Department for adverse reaction notices.

The Company operates the hotline at +90212 366 84 00 during work hours and has also created mobile phone, fax and e-mail contacts that are accessible 24/7.

LICENSING AND MARKET ACCESS

Abdi İbrahim maintains all of its licensing procedures in accordance with legal regulations and ethical values.

PRODUCT INFORMATION HOTLINE

The pharmacovigilance and medical information hotline within Abdi İbrahim provides service 24/7.

CONTRIBUTION TO SOCIAL DEVELOPMENT

CSR MENTALITY

CSR PROJECTS AT A GLANCE

2015-2016 PROJECTS

PHILANTHROPY

Aiming to contribute to the development of the intellectual capital of the society, Abdi İbrahim continues its CSR projects on the axis of education, culture-arts, community health and environment.

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ANAHTAR PERFORMANS GÖSTERGELERI (KPI)

Target Actual

Produce projects that are worthy of Abdi İbrahim’s corporate culture

Completion of the healing project of Sultan Bayezid II Edirne Hospital

Developing cultural projects in order to raise public awareness

“Let’s Not Ignore - Schizophrenia Adventure from Prehistoric Ages to the Present” Exhibition organized in 2015 and 2016: Meeting with approximately 30,000 art lovers in 4 provinces

Pioneering the studies on public health

ASKO Project, which was started for asthma and COPD patients in 2012 and completed in 2016: It was conducted across 60 provinces, in more than 100 centers, and by over 120 doctors, and nearly 2,000 patients were examined

Supporting the outreach projects organized by NGOs

The donation collected for the Child Inside Project of Abdi İbrahim Healers Team running in Istanbul Marathon organized in 2016: 72,462 TRY

Conduct awareness campaigns targeting the community

Initiating the projects such as Hug the World Campaign, Polycystic kidney disease awareness campaign, “Look Alive, Heal Your Life” and Patients of Psoriasis Swimming Competition

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Within the scope of its vision to “heal the life and the future”, Abdi İbrahim acknowledges that its primary duty is to raise awareness in society regarding health and to raise a healthy generation. In accordance with this, the Company continuously works to structure its operations within education, culture-art, community health care and the environment, and to contribute to the development of the intellectual capital of society.

• Turkey, Strong as Iron” Campaign For the project conducted in 81 provinces, 750,000 USD and 200,000 units of iron drop were donated.

• Allergy Research Institute

• Geleceğe Köprü (Bridge to the Future) Psychiatry Platform

• Ophthalmology Base of Abdi İbrahim

• Van Gogh Alive Digital Art Exhibition Presenting a vibrant light, color and sound symphony and giving an unforgettable experience to its visitors, the exhibition met with a total of 215,000 people.

• Bruno Health Truck

• Abdi İbrahim Primary School Abdi İbrahim Primary School, which was opened in Istanbul-Bahçeşehir in 2007, serves with its infrastructure that is suitable for educating 1,200 students.

• Belma Barut Primary School Belma Barut Primary School, which was opened in Istanbul-Esenyurt in 2013, serves with 24 classrooms, 3 laboratories and 2 kindergartens.

• “Hiper Holmes Against Salt Traps”

• Rational Drug Use Project Abdi İbrahim has been conducting the “Rational Drug Use” campaign since 2012 in order to raise awareness in society for conscious drug use.

• Turkey Frequency of Metabolic Syndrome Research (METSAR) METSAR, which started in 2003 as the most comprehensive heart health risk assessment in Turkey, led the formation of national heart health policies. METSAR 2, the patient follow-up phase of the research started in 2014.

• Heart Brotherhood Project Within the scope of the project aiming to raise social awareness and sensitivity regarding child heart health, children’s musical theatre performances were organized at 81 schools during the academic year of 2013-2014.

• Let’s Not Ignore Campaign

• YouPlus Kids Omega-3 projects

• Away from Allergy, Close to Nature Project

• Hands Touching Life Project 1,135 books collected from the doctors in this project were donated to 8 schools throughout Turkey.

CSR MENTALITY

For Abdi İbrahim, corporate social responsibility projects are an inseparable part of its main operations in terms of sustainable development.

CSR PROJECTS AT A GLANCE*

*Some of the projects conducted by Abdi İbrahim before 2015.

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2015

Hug the World Campaign

Within the scope of the You, Me and Autism Awareness Project, Abdi İbrahim initiated the #sarıldünyaya (hugtheworld) campaign on April 2nd, 2015, World Autism Awareness Day, in order to raise awareness about autism. During the activity which was run with the #sarıldünyaya hashtag, people shared pictures on Facebook of them hugging their loved ones. The physician launch of the project was conducted in the booths and activities at the congress organized in Istanbul between April 1st and 4th by the Child and Adolescent Psychiatry Association.

Coldaway April 23rd activities

Coldaway Şurup family reached thousands of children accompanied with jugglers, balloon modelling, face painting and decorations in 18 pediatric units throughout Turkey by fulfilling its social responsibility on April 23rd, the National Sovereignty and Children’s Day. The activities organized based on Atatürk’s saying “Child love is a necessity for human love” managed to put a smile on the faces of both children and physicians who work under difficult conditions.

Exhibition of Schizophrenia Adventure from Prehistoric Ages to the Present

“Let’s Not Ignore - Schizophrenia Adventure from Prehistoric Ages to the Present” Exhibition, which was organized with the contributions of Abdi İbrahim Otsuka (AİO) and aims to raise social awareness about schizophrenia, met with the visitors for free of charge in Istanbul Harbiye Military Museum between October 16th and 25th, and in Ankara Cermodern between November 5th and 15th.

10,000 people from Istanbul and Ankara visited the exhibition where the methods used for the diagnosis and treatment of mental illnesses since the early ages, the society’s approach to the subject, the scientists and physicians who are the main players of this adventure, as well as the interesting visuals and animations were exhibited. The exhibition, which is a first in Turkey with its rich content prepared by the experts of the field, and with its creative display format prepared in three-dimensional boxes by using audio-visual effects and animations, offered an adventure to the visitors not only as an audience, but it also allowed them to experience the event with different senses.

The exhibition met the art-lovers in Istanbul again in March 2016, in Izmir in June 2016, and in Kocaeli in December 2016. The exhibition, which have met with a total of 30,000 art-lovers so far, is planned to open up to the world beginning from Japan after being organized in different provinces of Turkey.

2015-2016 PROJECTS

Abdi İbrahim initiated distinctive corporate social responsibility projects in 2015 and 2016 as well.

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Healing project of Sultan Bayezid II Edirne Hospital

Abdi İbrahim, which realised an important social responsibility project in order to protect Turkish culture and the historical values of the industry, and renovated the Sultan Bayezid II Edirne Hospital, which has a history of 500 years, with a modern sense of museology as a result of works that took 1.5 years to complete. The opening ceremony of Edirne Hospital, which was repaired with great efforts, took place on May 13th, 2015 with broad participation.

Abdi İbrahim carried out the renovation works of the Sultan Bayezid II Edirne Hospital, which was opened as a hospital in 1488 and ran until 1915, with a modern design after a long scientific process of preliminary preparations. In the project, Edirne Hospital, one of the most important centers in the history of medicine, was renovated in a way which is suitable to the history and architectural texture and which will lead to the uncovering of details regarding Ottoman medicine. The visitors of Edirne Hospital have a chance to learn on site - both in writing and with role plays - that plastic breast surgeries were performed on men between the 15th and 18th centuries, that female surgeons performed hernioplasty on janissaries, how the Turkish smallpox vaccine -injected into the British Royal Family as well- spread from Edirne to Europe, that the origin of rose horticulture and rose water is Edirne contrary to popular belief, as well as some valuable information such as the treatment of diseases and surgery techniques.

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Book donation for the schools in Diyarbakır

Abdi İbrahim also supported the social responsibility project which was initiated by Ferman Yurt and Mahmut Aksu, the pharmacists serving in Ergani town of Diyarbakır. Within this scope, 1,000 books were distributed to Ergani Secondary School, Ergani Primary School and Fatih Elementary School on November 25th, 2015 in order to get the students adopt the habit of reading books.

Support for “Unite Against the Violence to Women” campaign

Abdi İbrahim supported the “Unite Against the Violence to Women” campaign, which was initiated by the United Nations Secretary-General for the purpose of ending the violence against women and which was hosted and organized under the leadership of Istanbul Metropolitan Municipality in Turkey. Within the scope of the campaign, Abdi İbrahim Tower was painted orange with a lighting system between November 25th and December 10th, 2015.

Blood donation and stem cell information campaign

At the 2015 Year-End Meeting of Abdi İbrahim, a collaboration was made with the Red Crescent, and a stem cell information and blood donation campaign was organized. On December 22nd and 23rd, a booth was set up at the hotel and people were informed about stem cells. The employees of Abdi İbrahim donated 105 units of blood.

Book donation for the schools in Diyarbakır

Support for “Unite Against the Violence to Women” campaign

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Asthma and COPD Report of Turkey

The results of the ASKO Project, which was launched in June 2012 under the sponsorship of Abdi İbrahim in order to research the demographic structure of asthma and COPD patients under the routine practice conditions and to record and analyze the diagnosis and treatment practices, were announced on the World No Tobacco Day on May 31st, 2016. The study, which was conducted by over 120 doctors in more than 100 centers across 60 provinces throughout Turkey and in which nearly 2,000 patients were examined, contains remarkable data.

Polycystic kidney disease awareness campaign

Abdi İbrahim Otsuka undertook the sponsorship of the establishment of the foundation for approximately 75,000 patients with polycystic kidney disease in our country as well as the declaration of May 10th as the Polycystic Kidney Disease Day.

1 million TRY to July 15th Solidarity Campaign

Abdi İbrahim donated 1 million TRY to the “July 15th Solidarity Campaign” conducted by the Ministry of Family and Social Policies and initiated by the Prime Ministry in order to support the veterans as well as the families of the martyrs who lost their lives during the attacks on July 15th, 2016.

“Heal your heart, your beloved ones are inside”

On September 29th, the World Heart Day, an event with the concept of “Heal your heart, your beloved ones are inside” was organized in Abdi İbrahim Tower. 350 people of Abdi İbrahim, who attended the seminar where Prof. Dr. Kerim Güler from Çapa Faculty of Medicine, Department of Internal Diseases provided information about improving the heart health, left 300 heart-shaped red balloons to the sky at the end of the event in order to refer to the significance of the day.

Healers Team ran for children

Abdi İbrahim Healers Team, running at the Istanbul Marathon which was organized on November 13th, 2016, supported the Child Inside Project, which was initiated for the education of children who had to grow up with their mothers in prison, by collecting a record amount of donation. Abdi İbrahim, which ranked first among the fundraising companies for the Child Inside Project with a total of 72,462 TRY within the scope of this project, also ranked seventh among the fundraising companies with a record amount of donation running for different NGOs within the Adım Adım Platform. These donations will bring hope to the Nursery Unit in Adana Karataş Women’s Closed Prison.

2016

An important project for women

Abdi İbrahim, which did blood tests on its female employees for the detection of iron deficiency anemia on March 8th, International Women’s Day, aims to prepare the Anemia Map of Turkey by reaching up to 2,200 pregnant women with the participation of 22 female gynecologists within the project which was initiated in April.

Stem cell and blood donation campaign

Abdi İbrahim collaborated with the Turkish Red Crescent in order to raise awareness about stem cell and blood donation. Within the campaign, seminars were given by the Turkish Red Crescent in Abdi İbrahim Manufacturing Plants and Abdi İbrahim Tower on March 21st & 22nd, 2016, and employees voluntarily donated stem cell and blood.

April 23rd: a surprise from the people of Abdi İbrahim for children

Abdi İbrahim employees prepared a surprise to put a smile on the faces of the children in LÖSEV on April 23rd National Sovereignty and Children’s Day. Approximately 500 toys were collected in the boxes which were put in Abdi İbrahim Tower and Manufacturing Plants, and the gifts wrapped by the volunteers were delivered to LÖSEV on April 21st, 2016.

Asthma and COPD Report of Turkey Healers Team ran for children

57

PHILANTHROPY

Abdi İbrahim continued its donations and helps for the non-profit organizations in 2015 and 2016 as well.

Diabetes Training and Life Resort

Abdi İbrahim, supported the construction of Diabetes Education and Life Resort in Istanbul Şile Doğancılar Village under the leadership of Turkish Diabetes Foundation as the gold sponsor. A part of the construction of Europe’s largest diabetes education center, which will provide life support to 7 million children, young and adult diabetics in our country, was completed and opened in 2015. The Patient School within the center was opened in November 20th, 2016.

Children undergoing cancer treatment are in Beşiktaş JK In the organization held by the Cancer Warriors Association and Beşiktaş JK with the support of Abdi İbrahim, the children who receive treatment in the paediatric oncology units of Istanbul University, Çapa Faculty of Medicine and Halkalı Kanuni Sultan Süleyman Training and Research Hospital met with Beşiktaş’s football players at Beşiktaş Nevzat Demir Facilities on November 28th, 2016.

“Look Alive, Heal Your Life”

Abdi İbrahim organized an activity to raise awareness of the public on October 13th, the World Thrombosis Day regarding the thrombosis disease which is the cause of one of the four deaths in the world and which can be prevented. Abdi İbrahim, which set up a tent in Beşiktaş with the Turkish Hematology Association and International Thrombosis Society (ISTH), encouraged the public to exercise by telling them about the thrombosis disease with the slogan “Look Alive, Heal Your Life”.

Swimming Competition for Psoriasis Patients

Abdi İbrahim organized the Swimming Competition for Psoriasis Patients in Istanbul on October 23rd, 2016 in order to draw attention to psoriasis within the scope of October 29th, the World Psoriasis Day along with the Psoriasis Patients Solidarity Association. In the competition which the psoriasis patients and their families attended, it was emphasized that the public’s misconception that the disease was contagious did not have any scientific basis.

Children undergoing cancer treatment are in Beşiktaş JK

Abdi İbrahim allocates significant funds in its investment and budget plans for donations and aid to non-profit organizations on an annual basis. In this context, the Company allocated TL 0.22 million to non-profit organizations in 2015 and TL 1.29 million in 2016.

1.292016

0.222015

0.222014

3.092013

Donations and Aid (in Millions of TL)

ENVIRONMENTAL POLICY

ENVIRONMENTAL POLICY

RECYCLING AND WASTE MANAGEMENT

ENERGY CONSUMPTION

ENVIRONMENTAL IMPACT REDUCTION EFFORTS

ENVIRONMENTAL PROTECTION INVESTMENTS

WATER CONSUMPTION

GREENHOUSE GAS EMISSIONS

Abdi İbrahim carries out all its business processes by considering the environmental impact, acting with the thought that the world we live in was borrowed from future generations.

59

60

KEY PERFORMANCE INDICATORS

Target Actual

Accomplishing exemplary projects

Yeşil Nokta Industry Award at the Yeşil Nokta Industry Awards Competition (2016) of ÇEVKO with the “Waste Management System and Practices That Heal the Nature Project”

Minimizing the energy consumption with efficiency-focused projects

Amount of savings in 2016: 54,000 m3 natural gas, 128,333 kWh electricity

Reducing water consumption with efficient recovery methods

Amount of water saving: 11.7% saving in 2015 compared to the previous year

15 m3 water saving by increasing the campaign charge units in specific items in liquid manufacturing in 2016

Reducing the waste amount

Amount of glass waste: In 2015, the number of sampled bottles was reduced, and the amount of glass waste was reduced by 22% compared to the previous year, and by 3.07% in 2016

Reducing the paper consumption

Paper saving: 200 kg paper saving by revising the packaging design of some products in 2016

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62

For all the operations of Abdi İbrahim Pharmaceuticals, environmental protection, continuous improvement, efficient use of natural resources, full compliance with legislation, prevention of pollution as well as reduction, separation, recycling and elimination of waste generated through its activities, preferably at the source, form the foundations of the company’s environmental policy.

Accordingly, Abdi İbrahim publicly declares its commitment to;

Organize training for its employees, suppliers and contractors in order to raise awareness about environmental protection,

Draw upon appropriate technologies for controlling and mitigating its potential environmental impact,

Keep up with legal and international regulations and customer requirements on the prevention of pollution, and continuously improve its environmental performance accordingly.

One key component of Abdi İbrahim’s environmental sustainability efforts is waste management. The Company manages its waste in accordance with the Waste Management Procedure and in line with applicable legal and regulatory requirements. The Company separates all its waste at the source and cooperates with firms licensed by the Ministry of Environment and Urban Planning to recycle or eliminate waste.

According to the Abdi İbrahim Environmental Policy, waste must be reduced, separated, recycled and correctly eliminated at the source. To this end, the Company’s production facilities implement efficient and sustainable waste management policies. Abdi İbrahim aligns its production processes with international standards of environmental protection. Abdi İbrahim’s packaging materials and raw materials used during the last four years in the manufacturing process are shown in the graphics on the next page.

Recycling Practices Abdi İbrahim recycles its product packaging in line with the targets set by the Packaging Waste Control Regulation, a part of the environmental law framework. The Company has been cooperating with the authorized institution in this field, namely ÇEVKO (Foundation for Environmental Protection and Recycling of Packaging Waste) since 2005. Additionally, it identifies and implements disposal practices as per applicable legislation.

The Company tracks the amount of total waste and natural resource consumption per unit and shares the results with all employees via the Abdi İbrahim intranet portal. The amount of packaging recycled from products on the market for the last four years as well as the amount of recyclable waste generated in the factory are shown in the graphics on the next page.

ENVIRONMENTAL POLICY

Abdi İbrahim pays attention to protecting and continuously healing the environment in all the business processes from purchasing up to launching.

RECYCLING AND WASTE MANAGEMENT

Abdi İbrahim became the first and only pharma company to win ÇEVKO’s Yeşil Nokta Industry Award in 2016.

Waste Disposal Practices In accordance with its Waste Management Procedure Abdi İbrahim separates and collects all waste at the source and transfers it to licensed firms, as stipulated by law. Waste such as paper, plastic, glass, metals and blister, as well as hazardous waste such as electronic waste, drums and casks, are dispatched to recycling plants, and those which need to be eliminated are sent to incineration facilities.

There has been an increase by 6%, 4% and 6%, respectively in plastic, blister and barrel-cask-canister waste amounts, as there was an increase by 17% in production in 2015 compared to the previous year. In 2015, there was a reduction by 1% in the amount of paper waste because of the revisions made in the procedures, fulfilment of AİDEA’s suggestions and awareness training. In 2015, the number of sampled bottles was reduced, and the amount of glass waste was reduced by 22% compared to the previous year. In 2015, the amount of recycled metal waste decreased by 16% compared to the previous year. As the production increased by 14% in 2016 compared to the previous year, the amount of paper-cardboard waste was reduced by 3.16%, plastic waste by 13.28%, blister waste by 32.58%, metal waste by 91.19%, barrel-cask-canister waste by 16.17%, other waste (cartridges, accumulators, batteries, electronics, etc.) by 54.69%, and glass waste by 3.07%. The high increase in metal waste was caused by the revision works conducted in maintenance period.

63

Hazardous waste amount increased by 10% depending on the manufacturing density in 2015. Thanks to the revision studies carried out in the waste water treatment facility in July 2012, no sewage sludge waste was generated in 2015 as it was in 2014. In the other hazardous waste with disposal costs, there has been a reduction by 3% in dust and effluents (dust gathered in dedusters and waste in oil separators), 2% in contaminant filters, 26% in solvent-based waste water from laboratories, and 28% in fluorescent lamps. In 2016, there was an increase by 26% in the amount of hazardous waste depending on the manufacturing density. No sewage sludge waste was generated in the waste water treatment facility in 2016 as well.

In the other hazardous waste with disposal costs, there has been an increase by 15.94% in contaminated packaging waste, 53.47% in dust and effluents (dust gathered in dedusters and waste in oil separators), 97.52% in solvent-based waste water due to the R%D project density, 32.74% in contaminant filters, and a reduction by 6.15% in fluorescent lamps after replacing with energy saving LED bulbs in the dining hall.

The graphics on the next page and the table on the back page show the amount of hazardous and non-hazardous waste depending on the actual manufacturing amount of the last four years.

There are no creeks, lakes, other surface water resources, nor sources or water leaks in the vicinity of the Abdi İbrahim Production Facilities. Solvent-containing waste water from labs is defined as process and house waste water. The waste water from Company labs is collected separately and sent to licensed recycling plants. Process and house waste water, on the other hand, is treated at the waste water plants and duly discharged.

Amount of materials and raw materials used in manufacturing (tonnage)

Unit

1,9572016

1,6562015

1,5012014

1,2672013

Cardboard

4262016

3612015

5392014

4292013

Plastic

2612016

2462015

1642014

2352013

Glass

6,9192016

6,3162015

4,2632014

2,5182013

Prospectus

4392016

3662015

3482014

2802013

Imported Packaging

1,7082016

2,9852015

1,3732014

1,9092013

Local Raw Material

1,8862016

1,2082015

8572014

6832013

Aluminum

3302016

3512015

2712014

2582013

Total Packaging Material

12,0402016

12,2812015

8,4592014

6,8952013

Total Raw Material

5,2922016

4,2592015

3,2512014

4,8932013

Imported Raw Material

3,4062016

3,0512015

2,3942014

4,2102013

Amount of recovery of the products on market (kg)

Paper/Cardboard

536,6102016

832,0552015

753,1262014

546,0272013

Plastic

11,5342016

13,3932015

3,0312014

10,2562013

Manufacturing and waste amount

Actual production volume (unit×1,000)

220,2592016

193,6362015

165,9422014

147,4112013

Actual volume of hazardous waste (kg)

342,7472016

273,0312015

248,2912014

160,4192013

64

Amount of recycled waste in the factory 2013 2014 2015 2016

Waste type (kg) Disposal method

Paper/Cardboard Recycling 248,440 264,270 261,822 270,100

Plastic Recycling 76,690 77,520 81,850 92,720

Blister Recycling 81,900 86,180 89,440 118,580

Glass Recycling 34,000 35,400 27,720 26,870

Metal Recycling 33,680 36,860 29,290 56,000

Drums and casks Recycling 91,323 101,835 107,573 124,967

Other (cartridge, misc. batteries, electronics)

Recycling 3,885 2,810 1,397 2,161

Contaminated packaging material Dis. (incineration) 111,160 93,113 117,163 135,838

Dust and fluid waste Dis. (incineration) 16,857 17,773 17,276 26,513

Contaminated filters Dis. (incineration) 6,735 5,908 5,786 7,682

Solvent containing waste water Recycling 25,640 22,260 16,540 32,670

Fluorescent lamps Disposal 207 272 195 183

Treatment sludge Recycling 0 0 0 0

House waste Storage 212,620 139,886 312,479 295,771

65

Dedicated to rendering its corporate structure more sustainable by using natural energy resources efficiently, Abdi İbrahim works through the internal Energy Committee to ensure continuous progress in this field. The Committee is composed of directors, managers, engineers and technicians, and has sub-committees composed of 54 members. These sub-committees are supported by the entire technical staff by their respective specialization. The Committee is responsible for organizing meetings according to new projects, changes in ongoing projects and issues identified by the Energy Manager, assigning duties to sub-committees according to saving targets and evaluating their work, and setting new targets. The Committee holds at least two general assessment meetings per year.

In its investment decisions, Abdi İbrahim receives energy consultancy and carries out its activities under the supervision of specialists. The savings projects that support the Company’s environmental policy change constantly in line with its life cycle.

ENERGY CONSUMPTION

Abdi İbrahim attaches great importance to the efficient use of natural energy resources, and constantly improves this area through its Energy Board.

Direct Energy Consumption by Primary Energy SourceProduction quantities for the years of 2013-2016 as well as the natural gas, electricity, diesel oil and water consumption values are given in the chart above. Diesel oil is used by the generators in the event of power failures, and 1,555 liters in 2015 and 1,530 liters in 2016 were used for outdoor forklifts.

Natural gas consumption increased by 4.96%, electricity consumption by 9.38% and water consumption by 28.17% in 2016 due to the increase in manufacturing as well as the need for irrigation, cooling and heating compared to 2015. Diesel oil consumption decreased by 1.21%.

Indirect Energy Consumption by Primary Energy SourceWhile choosing an energy provider, the use of renewable resources is a key selection criterion. The graphics on the next show the renewable resource allocation of the electricity used.

Measures to Lower Energy Consumption and Increase Productivity

The specific value of 20.1 TEP/million unites in 2000 was realized as

14.5 TEP/million unites in 2012, 15.1 TEP/million unites in 2015, and 14.3 TEP/million unites in 2016.

Actual production volume (unit×1,000)

220,2592016

193,6362015

165,9422014

147,4112013

Diesel (lt)

201,9932016

204,4572015

94,0192014

80,9262013

Electricity (kWh)

26,727,4882016

24,434,5862015

23,556,4652014

23,570,1072013

Natural Gas Consumption (m3)

2,221,4212016

2,116,3932015

2,021,9572014

2,367,8142013

Water (m3)

115,1202016

120,0592015

105,9852014

135,8422013

Amounts of natural resources consumption

Limak Enerji/ 2013-2014 Production & Supply Projection (%)

Renewable

92016

82015

562014

762013

Other

912016

922015

442014

242013

66

ENVIRONMENTAL IMPACT REDUCTION EFFORTS

Abdi İbrahim achieved significant savings in 2015 and 2016 with the projects accomplished with the employees' suggestions.

In 2015 and 2016, the following savings and waste reductions were accomplished with the projects initiated in line with the employees' suggestions. This also means that the consumption of natural resources was reduced.

In 2015, a water saving of 11.7% was achieved compared to 2014. In 2016, although 200 million of units were targeted, 220 million of units were manufactured and the water consumption increased by 28.17%. 15 m3 water was saved by increasing the campaign charge unit in specific items in liquid manufacturing.

200 kg paper was saved by revising the packaging design of some products in 2016.

In 2016, 128,333 kWh of electricity was saved with the recirculation implementation in systems 7 and 7.1.

In 2016, the natural gas consumption was reduced by 54,000 m3 thanks to the heat recovery with the recirculation implementation in systems 7 and 7.1.

ENVIRONMENTAL PROTECTION INVESTMENTS

Abdi İbrahim, also made significant investments in environmental protection in 2015 and 2016.

Investments in Waste Disposal, Emissions, Water Treatment and Improvements

Investments in 2015 (TL)

44,840For emission measurement

27,900For domestic and industrial waste water treatment plant

4,500For waste water analyses

104,795For waste recovery and disposal

214,200For outdoor air and climate protection activities

148.544For climate and ozone protection activities

Investments in 2016 (TL)

204,242For collection, transportation and disposal of waste

3,155For waste water analyses

229,210For domestic and industrial waste water treatment plant

5,880For purchasing waste water meter

3,270For the protection and improvement of soil, ground and surface water

20,500For the preservation of biodiversity and landscape

1,890For waste oil analysis

In 2015 and 2016, environment tax payments were made as 52,000 TRY and 56,735 TRY, respectively.

Investments in 2015 and 2016 (TL)

For the audits of ISO 14001 Environmental Management System and OHSAS 18001 Occupational Health and Safety Certificates

22,000

Preventive Measures and Environmental Management Investments

67

WATER CONSUMPTION

At Abdi İbrahim Manufacturing Plants, membrane technology is used for the treatment of waste water.

The performance of the plant is monitored on a daily basis by the laboratory established in the waste water treatment facility. Some parameter values analyzed at the facility entrance and exit in 2015 and 2016 are given below.

Waste water values discharged from the waste water treatment facility according to the years are given in the graphics below. In addition, the water supplied from the wells is passed through the İSKİ (Istanbul Water and Sewerage Administration) meters. The distribution of water passing through the İSKİ meters according to the years is given in the next graphics.

2015

BOI5 exit:

20 mg/lt

KOI exit:

180 mg/lt

2016

BOI5 exit:

25 mg/lt

KOI exit:

215 mg/lt

GREENHOUSE GAS EMISSIONS

Abdi İbrahim is conducting systematic studies to reduce the carbon emissions arising from its activities.

With close monitoring of activities conducted on a global scale as part of the fight against global warming, Abdi İbrahim works systematically to reduce CO2 emission from its operations. The Company utilizes the IPCC Methodology described in the “Greenhouse Gas Emission Inventory Workgroup Draft Report of 2006” published in April, 2006, by the Ministry of Environment and Urban Planning.

According to the emissions report prepared by an audit organization upon the request of Abdi İbrahim in 2013, emissions values are below legal limit values.* Carbon emission at the Abdi İbrahim Production Facilities caused from the use of natural gas was calculated at 2,079.6 ton/years for 2015 and 2,019.9 ton/years for 2016. CH4, NOx, CO amounts were calculated at 720.2 and 616.4 ton/years for 2015 and 2016, respectively.

R22 gas, which is harmful to the ozone layer, and which was used in one chiller cooling group in 2013 and three chiller cooling groups in 2014, was replaced with environmentally-friendly R-407C gas. Between 2014 and 2016, there was no R22 consumption.

The production facilities use natural gas as fuel and online gauges installed at the steam furnace chimneys monitor chimney gases released into the atmosphere around the clock. The average measurements are as follows:

NO260 mg/Nm3

CO0 mg/Nm3

SO20 mg/Nm3

* CO, NO2 values can be traced online within Abdi İbrahim. Other emissions are evaluated in the emission reports prepared based on the instant measurements performed biannually. The measurements which were last performed in 2013 are planned to be repeated in 2017.

Waste Water Discharge (m3)

Atık Su Deşarjı

89,1592016

100,9572015

93,3302014

94,9002013

İSKİ meters according to the years is given (m3)

Well 3

14,7122016

19,2502015

18,5802014

15,1242013

Well 4

30,3302016

10,2262015

18,9312014

25,4412013

Well 6

20,0702016

20,2002015

21,2172014

20,4022013

İSKİ Line

2,4002016

2,2242015

1,6112014

2,0652013

Well 1

42,2532016

37,7322015

39,3542014

32,5862013

Well 5

19,9062016

18,6532015

17,4652014

20,9772013

Total

130,0832016

107,6152015

117,8282014

116,1832013

68

GRI G4 CONTENT INDEX

General Standard Disclosures Description Pages Omissions

External Assurance

Strategy and AnalysisG4-1 Statement from the most senior decision-maker of the organization about the

relevance of sustainability to the organization and the organization’s strategy for addressing sustainability

Message from Chairman, p. 4-5-6 - No

G4-2 Description of key impacts, risks and opportunities Message from Chairman, p. 4-5-6 - No G4-3 Name of the organization Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş. - NoG4-4 Primary brands, products, and/or services Abdi İbrahim in Brief, p. 11-12 - No G4-5 Location of organization’s headquarters Masthead (inside back cover) - No

Organizational Profile G4-6 Number of countries where the organization operates Abdi İbrahim in Brief, p. 11-12-32 - NoG4-7 Nature of ownership and legal form Abdi İbrahim in Brief, p. 11-12 - NoG4-8 Markets served Abdi İbrahim in Brief, p. 11-12-32 - No G4-9 Scale of the reporting organization Abdi İbrahim in Brief, p. 11-12 - NoG4-10 Number of employees by employment contract, region and gender Abdi İbrahim in Brief, p. 11-12, 40-43 - No G4-11 Percentage of total employees covered by collective bargaining agreements Abdi İbrahim in Brief, p. 40-41 - NoG4-12 Organization’s supply chain Stakeholder Relations Management, p. 22 - No G4-13 Significant changes during the reporting period regarding size, structure, form of

ownership and supply chainAbdi İbrahim in Brief, p. 11-12 - No

G4-14 Explanation of whether and how the precautionary principle is addressed by the organization

Abdi İbrahim accepts the precautionary principle of UN Global Compact for all activities.

- No

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives, to which the organization subscribes or which it endorses

Memberships and Supported Initiatives, p. 23

- No

G4-16 Memberships of associations (such as industry associations) and national or international advocacy organizations

Memberships and Supported Initiatives, p. 23

- No

Identified Material Aspects and BoundariesG4-17 a. List all entities included in the organization’s consolidated financial statements or

equivalent documents.b. Entities included in the organization’s consolidated financial statements or equivalent documents are not covered by the report.

About the Report, p. 7-8 - No

G4-18 a. Process for defining the report content and Aspect Boundaries. b. How the organization has implemented the Reporting Principles for Defining Report Content.

Components Prioritization Work of 2015-2016 Sustainability Report, p. 9-10

- No

G4-19 List of all the material Aspects identified in the process for defining report content Components Prioritization Work of 2015-2016 Sustainability Report, p. 9-10

- No

G4-20 Materiality of Aspects within the organization Components Prioritization Work of 2015-2016 Sustainability Report, p. 9-10

- No

G4-21 Materiality of Aspects outside the organization Components Prioritization Work of 2015-2016 Sustainability Report, p. 9-10

- No

G4-22 The effect of any restatements of information provided in previous reports, and the reasons for such restatement

About the Report, p. 7-8Abdi İbrahim 2015-2016 Sustainability Report is the first report of the Company prepared in line with G4 reporting principles.

- No

G4-23 Significant changes in the Scope and Aspect Boundaries About the Report, p. 7-8Abdi İbrahim 2015-2016 Sustainability Report is the first report of the Company prepared in line with G4 reporting principles.

- No

Stakeholder EngagementG4-24 List of stakeholder groups engaged by the organization. Stakeholder Relations Management, p. 22 - No G4-25 Basis for identification and selection of stakeholders with whom to engage. Stakeholder Relations Management, p. 22 - NoG4-26 Organization’s approach to stakeholder engagement. Stakeholder Relations Management, p. 22 - NoG4-27 Key topics and concerns that have been raised through stakeholder engagement,

and how the organization has responded to those key topics and concerns, including through its reporting.

Stakeholder Relations Management, p. 22 - No

This Report contains the practices of Abdi İbrahim to improve the social, environmental and economic performances between January 1st, 2015 and December 31st, 2016 as well as the outcomes of these practices. The G4 Content Index reporting guide of the report was developed based on the G4 version of the Global Reporting Initiative (GRI) Global Sustainability Reporting Guidelines and the core option.

69

General Standard Disclosures Description Pages Omissions

External Assurance

Report ProfileG4-28 Reporting period 1 January 2015 - 31 December 2016 - NoG4-29 Date of the most recent previous report 1 January 2015-31 December 2016 - NoG4-30 Reporting cycle Biennial - NoG4-31 Contact point for questions About the Report, p. 7-8 - NoG4-32 GRI Content Index and “in accordance” option G4 Core, About the Report, p. 7-8 - NoG4-33 The organization’s policy and current practice with regard to seeking external assurance

for the report.2015-2016 Sustainability Report does not subject to external assurance.

- No

GovernanceG4-34 Governance structure of the organization Management Mentality, p. 17-27 - NoG4-35 The process for delegating authority for sustainability topic Management Mentality, p. 17-27 - NoG4-36 Executive-level positions with responsibility for sustainability topics Management Mentality, p. 17-27 - NoG4-37 Processes for consultation between stakeholders and the highest governance body Management Mentality, p. 17-27 - NoG4-38 Composition of the highest governance body and its committees Management Mentality, p. 17-27 - NoG4-39 Position of the Chair of the Board of Directors Management Mentality, p. 17-27 - NoG4-40 Nomination and selection processes for the highest governance body and its committees Management Mentality, p. 17-27 - NoG4-41 Avoiding conflicts of interest Management Mentality, p. 17-27 - NoG4-42 The role of the highest governance body and senior executives in setting purpose, values

and strategyManagement Mentality, p. 17-27 - No

G4-43 Measures taken to enhance the Board of Directors’ collective knowledge of sustainability topics

Management Mentality, p. 17-27 - No

G4-44 a. Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment.b. Report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice.

Management Mentality, p. 17-27 - No

G4-45 a. Report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes.b. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks, and opportunities.

Management Mentality, p. 17-27 - No

G4-46 The highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics.

Management Mentality, p. 17-27 - No

G4-47 The frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.

Management Mentality, p. 17-27 - No

G4-48 The highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered.

Management Mentality, p. 17-27 - No

G4-49 Report the process for communicating critical concerns to the highest governance body. Management Mentality, p. 17-27 - No G4-50 Report the nature and total number of critical concerns that were communicated to the

highest governance body and the mechanism(s) used to address and resolve them.Management Mentality, p. 17-27 - No

G4-51 Remuneration policies for the Board of Directors and senior executives Management Mentality, p. 17-27Human Resources Practices, p.36

- No

G4-52 Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization.

Management Mentality, p. 17-27,Human Resources Practices, p.36

- No

G4-53 Report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.

Management Mentality, p. 17-27,Human Resources Practices, p.36

- No

G4-54 Report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

Abdi İbrahim doesn’t declare this topic due to its corporate policy.

- No

Ethics and IntegrityG4-55 Report the ratio of percentage increase in annual total compensation for the

organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

Abdi İbrahim doesn’t declare this topic due to its corporate policy.

- No

G4-56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

Management Mentality, p. 17-27 - No

G4-57 Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.

Management Mentality, p. 17-27 - No

G4-58 Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Management Mentality, p. 17-27 - No

70

Aspect DMA/G4 Indicator Page OmissionsExternal Assurance

EconomicEconomic Performance

DMA Financial and Operational Processes, p. 28-34 - NoG4-EC1 Direct economic value generated and distributed Financial and Operational Processes, p. 28-34 - NoG4-EC2 Risks and opportunitiesdue to climate change Financial and Operational Processes, p. 28-34 - NoG4-EC3 Coverage of defined benefit plan obligations Financial and Operational Processes, p. 28-34 - NoG4-EC4 Financial assistance from government Abdi İbrahim doesn’t receive any financial aid

during the reporting period.- No

G4-EC5 Entry level wage by gender compared to minimum wage The wages of all Abdi İbrahim emloyees have been above the mininum wage without taking gender difference into consideration.

- No

G4-EC6 Local hiring Financial and Operational Processes, p. 28-34 - NoIndirect Economic Impacts

DMA Financial and Operational Processes, p. 28-34 - NoG4-EC7 Development and impact of İnfrastructure investments and services supported

Financial and Operational Processes, p. 28-34 - No

G4-EC8 Significant indirect economic impacts Financial and Operational Processes, p. 28-34 - NoProcurement Practices

DMA Financial and Operational Processes, p. 28-34 - NoG4-EC9 Spending on local suppliers Financial and Operational Processes, p. 28-34 - No

EnvironmentalEnergy DMA Environmental Policy, p. 54-62 - No

G4-EN3 Energy consumption withinthe organisation Environmental Policy, p. 54-62 - NoG4-EN4 Energy consumption outside of the organization Environmental Policy, p. 54-62 - NoG4-EN5 Energy intensity Environmental Policy, p. 54-62 - NoG4-EN6 Reduction of energy consumption Environmental Policy, p. 54-62 - NoG4-EN7 Reductions in energy requirements of products and services Environmental Policy, p. 54-62 - No

Emissions DMA Environmental Policy, p. 54-62 - NoG4-EN15 Direct Greenhouse Gas (ghg) Emissions (scope 1) Environmental Policy, p. 54-62 - NoG4-EN16 Energy Indirect Greenhouse Gas (ghg) Emissions (scope 2) Environmental Policy, p. 54-62 - NoG4-EN17 Other indirect greenhouse gas (GHG) emissions (scope 3) Environmental Policy, p. 54-62 - NoG4-EN18 Greenhouse gas (GHG) emissions intensity Environmental Policy, p. 54-62 - NoG4-EN19 Reduction of greenhousegas (GHG) emissions Environmental Policy, p. 54-62 - NoG4-EN20 Emissions of ozonedepleting substances (ODS) Environmental Policy, p. 54-62 - NoG4-EN21 NOx, SOx and othersignificant air emissions Environmental Policy, p. 54-62 - No

Products and Services

DMA Environmental Policy, p. 54-62 - No G4-EN27 Mitigation of environmental impacts of products and services Environmental Policy, p. 54-62 - NoG4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category

Environmental Policy, p. 54-62 - No

Environmental Compliance

DMA Environmental Policy, p. 54-62 - NoG4-EN29 Fines and sanctions for noncompliance with environmental regulation

Abdi İbrahim doesn’t subject to any fines or sanction concerning with noncompliance with environmental regulation in the reporting period.

- No

Overall DMA Environmental Policy, p. 54-62 - NoG4-EN31 Environmental expendituresand investments Environmental Policy, p. 54-62 - No

Supplier Environmental Assessment

DMA Environmental Policy, p. 54-62 - NoG4-EN32 Percentage of new suppliers that were screened using environmental criteria

Environmental Policy, p. 54-62 - No

G4-EN33 Significant actual and potential negativeenvironmental impacts in the supply chain

Environmental Policy, p. 54-62 - No

Social: Labour Practices and Decent WorkEmployment DMA Human Resources Practices, p. 35-43 - No

G4-LA1 New employee hires and employee turnover Human Resources Practices, p. 35-43 - NoG4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Human Resources Practices, p. 35-43 - No

G4-LA3 Return to work and retention rates after parental leave Human Resources Practices, p. 35-43 - NoLabour/Management Relations

DMA Human Resources Practices, p. 35-43 - NoG4-LA4 Minimum notice periods regarding operational changes Human Resources Practices, p. 35-43 - No

Occupational Health and Safety

DMA Human Resources Practices, p. 35-43 - NoG4-LA5 Percentage of workforce represented in formal joint management– worker health and safetycommittees

Human Resources Practices, p. 35-43 - No

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Human Resources Practices, p. 35-43 - No

G4-LA7 Workers with high incidence or high risk of diseases related to their occupation

Human Resources Practices, p. 35-43 - No

G4-LA8 Health and safety topics covered in formal agreements with trade unions

Human Resources Practices, p. 35-43 - No

71

Aspect DMA/G4 Indicator Page OmissionsExternal Assurance

Training and Education

DMA Human Resources Practices, p. 35-43 - NoG4-LA9 Average hours of training per year per employee by gender, and by employee category

Human Resources Practices, p. 35-43 - No

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Human Resources Practices, p. 35-43 - No

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender category

Human Resources Practices, p. 35-43 - No

Diversity and Equal Opportunity

DMA Human Resources Practices, p. 35-43 - NoG4-LA12 Composition of governance bodies and employee breakdown Human Resources Practices, p. 35-43 - No

Equal Remuneration for Women and Men

DMA Human Resources Practices, p. 35-43 - NoG4-LA13 Ratio of basic salary and remuneration of women to men Human Resources Practices, p. 35-43 - No

Social: Human RightsInvestment DMA Human Resources Practices, p. 35-43 - No

G4-Employee training on human rights Human Resources Practices, p. 35-43 - NoNon discrimination DMA Human Resources Practices, p. 35-43 - No

G4-HR3 Actions taken in incidents of discrimination There were no incidents of discrimination reported in Abdi İbrahim during the reporting period.

- No

Freedom of Association and Collective Bargaining

DMA Human Resources Practices, p. 35-43 - NoG4-HR4 Supporting right to freedom of association and collective bargaining in risk areas

Human Resources Practices, p. 35-43 - No

Human Rights Grievance Mechanism

DMA Management Mentality, p. 17-27 - No G4-HR12 Grievances about human rights through formal grievance mechanisms

In the reporting period, no complaints are recorded through formal grievance mechanisms.

- No

Social: SocietyLocal Communities DMA Management Mentality, p. 17-27 - No

G4-SO2 Operations with significant negative impacts on local communities In the reporting period, there was no a specific operation that would negatively affect local Communities.

- No

Anti-corruption DMA Management Mentality, p. 17-27 - NoG4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Management Mentality, p. 17-27 - No

G4-SO4 Communication and training on anticorruption policies and procedures

Management Mentality, p. 17-27 - No

G4-SO5 Confirmed incidents of corruption and actions taken Management Mentality, p. 17-27 - NoAnti-competitive behavior

DMA Management Mentality, p. 17-27 - NoG4-SO7 Total number of legal actions for anti-competitive behavior, and antitrust and monopoly practices and their outcomes.

Management Mentality, p. 17-27 - No

Social: Product ResponsibilityProduct and Service Labelling

DMA Product and Service Responsibility, p. 44-47

- No

G4-PR3 Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirement

Product and Service Responsibility, p. 44-47

- No

G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

In the reporting period, there is no incident of noncompliance with regulations and voluntary codes concerning product and service information.

.- No

G4-PR5 Results of surveys measuring customer satisfaction Product and Service Responsibility, p. 44-47

- No

Marketing Communications

DMA Product and Service Responsibility, p. 44-47

- No

G4-PR6 Sale of banned or disputed products Abdi İbrahim respects laws as well as international regulations concerning the supply of product and services.

- No

G4-PR7 Total number of incidents of noncompliance withregulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes.

In the reporting period, Abdi İbrahim doesn’t subject to any sanctions or fine concerning with noncompliance of marketing communications.

- No

Customer Privacy DMA Product and Service Responsibility, p. 44-47

- No

G4-PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

In the reporting period, there is no significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

- No

72

United Nations Global Compact (UNGC) Progress Report

Global PrinciplesPrinciple 1: Businesses should support and respect the protection of internationally proclaimed human rights. Management Mentality, p. 17-27Principle 2: Make sure that they are not complicit in human right abuses. Management Mentality, p. 17-27Principle 3: Business should uphold the freedom of association and the effective recognition of the right to collective bargaining. Human Resources Practices, p. 35-43 Principle 4: The elimination of all forms of forced and compulsory labour. Human Resources Practices, p. 35-43Principle 5: The effective abolition of child labour. Human Resources Practices, p. 35-43Principle 6: The elimination of discrimination in respect of employment and occupation. Human Resources Practices, p. 35-43Principle 7: Business should support a precautionary approach to environmental challenges. Environmental Policy, p. 54-62Principle 8: Undertake initiatives to promote greater environmental responsibility. Environmental Policy, p. 54-62Principle 9: Encourage the development and diffusion of environmentally friendly technologies. Environmental Policy, p. 54-62Principle 10: Business should work against corruption in all its forms, including extortion and bribery. Environmental Policy, p. 54-62

Women’s Empowerment Principles (WEPs) Progress Report

GRI Contet IndexPrinciple 1: High-Level Corporate Leadership for Gender Equality G4-38, G4-40Principle 2: Equal Opportunity, Participation and Nondiscrimination G4-LA1, G4-LA12, G4-LA13, G4-EC5, G4-LA3Principle 3: Health, Safety, and Freedom from Violence G4-HR3, G4-LA6Principle 4: Education and Training G4-LA9, G4-LA11Principle 5: Enterprise Development, Supply Chain and Marketing Practices G4-DMAPrinciple 6: Community Leadership and Participation G4-SO2Principle 7: Measurement and Public Reporting on Gender Equality G4-DMA

Abdi İbrahim Contact

For more information about Abdi İbrahim Sustainability Report, and to send your comments and suggestions:

Buket KoralCorporate Communications Supervisorbuket.koral@abdiibrahim.com.tr

Esra ErdinçCorporate Communications Specialistesra.erdinc@abdiibrahim.com.tr

Abdi İbrahim TowerAdres: Reşitpaşa Mahallesi, Eski Büyükdere Caddesi No: 4 Maslak-Sarıyer 34467 Istanbul, Turkey Tel: 0212 366 84 00Faks: 0212 276 20 20

Abdi İbrahim Üretim TesisleriAddress: Orhan Gazi Mahallesi, Tunç Caddesi No: 3 Esenyurt 34555 Istanbul, TurkeyPhone: +90212 622 66 00Fax: +90212 623 19 52

Content Creation and Design

Editoryal Tasarım Ltd. Şti.editoryal@editoryal.com.tr

Abdi İbrahim 3rd Sustainability Report (Report) was issued in accordance with the Global Reporting Initiative (GRI) Reporting Principles and the United Nations Global Compact (UNGC) and Women’s Empowerment Principles (WEPs) Progress Reports. The content and information contained in this Report which was prepared solely for the purpose of informing the stakeholders of Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş. were created by using the data and resources believed to be accurate and reliable at the time when the report was prepared. The information and content contained in the Report are not to be construed as any declaration, warranty, and/or commitment, and the information and content are not guaranteed to be complete and invariant. All rights of the report reserved by Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş.

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