CDP. Module: Introduction. Page: W0. Introduction. CDP 2017 Water 2017 Information Request W0.1. Introduction

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1 CDP CDP 2017 Water 2017 Information Request VESTEL BEYAZ EŞYA SANAYİ VE TİCARET A.Ş. Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization Maintaining its steady growth since its establishment in 1997, Vestel Beyaz Eşya today is a player, which leads the market with its long-term strategies and vision and as one of the largest manufacturers of white goods in both Turkey and Europe. Vestel Beyaz Eşya carries out its production activities by employing the state-ofthe-art technology in its six factories at Vestel City, which is one of the largest industrial complexes in Europe established in a single location, covering an area of 1.1 million m2 in Manisa. Vestel Beyaz Eşya manufactures refrigerators, washing machines, cooking appliances, dishwashers, air-conditioners and water heaters in an enclosed area of 312,500 m2 at Vestel City. The Company has an annual production capacity of 9.4 million units. Vestel Beyaz Eşya ranks among the Europe s top manufacturers employing the latest technology. It is one of the ten largest manufacturers of white goods in Europe and one of the top three players in Turkey, developing products by closely following the leading edge technological trends. Vestel Beyaz Eşya is one of Europe s largest original design manufacturers (ODM). Vestel Beyaz Eşya s sales in Europe are carried out mainly on an ODM basis accompanied with some branded sales through the well-known regional brands owned and global brands licensed by Vestel Group. The Company pursues a growth strategy with Vestel Group s own brands in Turkey, the CIS and the MENA region. Through its strong R&D organization and competence in the development of technology, Vestel Beyaz Eşya offers a continuously expanding environmentally friendly product range, which appeals to a wide consumer base on a global scale. The Company strives to bring more comfort to millions of homes with its products. Vestel Beyaz Eşya accounts for nearly 30% of Turkey s total white goods exports. A flexible production capability coupled with a high production capacity, competence in product differentiation, logistical advantages derived from its proximity to Europe as well as to the developing MENA and CIS regions and relatively lower unit labor costs stand out as Vestel Beyaz Eşya s key competitive advantages, reinforcing the Company s market position. The logistics-distribution capabilities of Vestel Ticaret, which carries out Vestel Beyaz Eşya s sales and marketing activities, its wide network of dealers and services offered with a technological infrastructure reinforce Vestel Beyaz Eşya s strong brand image in the domestic market. After-sales services are provided by the Central Services and call center under Vestel Customer Services General Directorate and the authorized service centers.

2 W0.2 Reporting year Please state the start and end date of the year for which you are reporting data Period for which data is reported Fri 01 Jan Sat 31 Dec 2016 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related impacts are reported Companies, entities or groups over which operational control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not in your disclosure? No W0.4a Exclusions

3 Please report the exclusions in the following table Exclusion why you have made the exclusion Further Information Vestel Beyaz Eşya annual Report and Zorlu Holding Sustainability Report Attachments /Shared Documents/Attachments/Water2017/W0.Introduction/faaliyet-raporu-2016 (1).pdf Module: Current State Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Sufficient amounts of good quality freshwater available for use Vital for operations Neutral Freshwater has primary use in direct operations. The availability of good - quality fresh water in sufficient amount is a requiremet for product performance test (washing machine, dishwasher ), generation de-ionized water ( reverse osmos process).in addition, freshwater is used in dyeing plants in production facility.

4 Water quality and quantity Direct use importance rating Indirect use importance rating Sufficient amounts of recycled, brackish and/or produced water available for use Important Neutral The use of recycled water to reduce water consumption as an important factor of water management. We can not reuse for every process. However, we ensure that the dye is used efficiently in the water.moreover, we also re-use (water recycle) heating and cooling systems in company. In other issues, We are aware that water is used in our products even in direct use. We are trying to produce products that use less water and use few cycles. W1.2 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect % of sites/facilities/operations Water withdrawals- total volumes Water withdrawalsvolume by sources Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method We obtain all our water needs from Manisa Organize Industry water treatment facility and well in the plant. Therefore, we are able to closely monitor two direct water withdrawals. We obtain all our water needs from Manisa Organize Industry water treatment facility and well in the plant. We manage the amount of discarged water coming out of the sites in Gediz Watershed. Our waste water is collected by means of two different channels. (Rainwater channel and wastewater channel) Firstly,Rain water is collected with the help of rainwater grates, which is discharged Karaçay (river).secondly, Discharged waste water is transported to the sewage treatment plant (Manisa Organize Distriction Wastewater Treatment Plant) The wastewater is analyzed before leaving the factory and it is ensured that it complies with the Turkey standards for water discharged. Manisa is placed in Gediz Watershed. Manisa Organized Industrial District has a treatment plant which is sufficient and the portion of wastewater that canbe treated due to adequacy, is discharged to Karaçay ( Creek). Wastewater treatment plant placed in Manisa Organized Industrial District started

5 Water aspect % of sites/facilities/operations Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Facilities providing fullyfunctioning WASH services for all workers to operate and pursued operations by having first discharge permit in First used part of treatment plant was built with the capacity of 6500 cubic meters/day and with the additional treatment plant; capacity will be increased to cubic meters /day. In present treatment plant has physical and biological treatment facilities and also chemical treatment units. Waste Water Purification Facility has m³ /day total capacity. Mud dehydration equipment of Purification Facility,with Belt Filter Press from the dehydration system they are converted to the mud dehydration system with pressure reducing valve. Proposed discharge criteria for water is selected according to the Water Pollution Control Regulation. Because we are interested in Manisa Organized Industrial District which consists of mix types of industries and for the reason that we are discharging it to the creek (Karaçay) Table 19 in the Water Pollution Control Regulation with the name of Discharge Standards of Complex Industrial Wastewater to the Receiving Body for Small and Big Organized Industrial Districts and Other Industries without Sector Defining is selected to define discharge criteria. In the table, amounts of Composit Sample for 2 hours and Composit Sample for 24 hours are given for different parameters because Composit Sample 24 hours is more reliable than 2 hours. As selecting, we consider composite sample 24 hours. For the parameters we chose 24 hours composite sample. Water consumption is important to manage the water consumption. We are constantly developing projects to reduce water use. We encourage our employees to produce projects. W1.2a Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment

6 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Fresh surface water 0 Not applicable We do not use fresh surface water in our sites. Brackish surface water/seawater 0 Not applicable We do not use brakish surface water in our sites. Rainwater 0 Not applicable We do not use rainwater in our sites. Groundwater - renewable About the same Groundwater - non-renewable 0 Not applicable We do not use groundwater- non renewable in our sites. Produced/process water 0 Not applicable We do not use process water in our sites. Municipal supply Lower The intake amount of the tap water was reduced %2 in Wastewater from another We do not use wastewater from another organization in 0 Not applicable organization our sites. Total Lower The total amount of intake water in 2016 was reduced 2% compared to W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Fresh surface water 0 Not applicable Brackish surface water/seawater 0 Not applicable We do not directly discharged water to the surface in our sites. We do not directly discharged water to the surface in our sites.

7 Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Groundwater 0 Not applicable Municipal/industrial wastewater treatment plant Lower Wastewater for another organization 0 Not applicable Total Not applicable We do not directly discharged water to the surface in our sites. We send, all the waters used in the company, to the treatment plant. We do not directly discharged water to the surface in our sites. We do not directly discharged water to the surface in our sites. W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Comment Lower In the last decade, water consumption has declined by 14%, while the amount of water consumption per unit product has decreased by 5%, while the total amount of water consumed by 2016 has decreased by 2%. W1.3 Do you request your suppliers to report on their water use, risks and/or management?

8 No W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management Primary reason Reporting implementation in progress Water is an important issue for the product. Water footprint can be calculated for Vestel Beyaz Eşya, which is a demonstration of direct and indirect water usage. We do not want a water risk report from our suppliers. However, as a company, we are looking at the savings plans they make on water during supplier inspections. In this context, we support them for strategy development. In addition, water use rates are checked in these reviews. We are working on our efforts to request a water risk report from our suppliers. We will require water risk reports after completion of our work (about 2 years later). We will ask our suppliers to communicate water risk reports from 2020 onwards.we will require 30% of our suppliers for the first year. W1.4 Has your organization experienced any detrimental impacts related to water in the reporting year?

9 No W1.4a Please describe the detrimental impacts experienced by your organization related to water in the reporting year Country River basin Impact driver Impact Description of impact Length of impact Overall financial impact Response strategy Description of response strategy W1.4b Please choose the option below that best explains why you do not know if your organization experienced any detrimental impacts related to water in the reporting year and any plans you have to investigate this in the future Primary reason Future plans Further Information Water foortprint calculations in 2016 report year. Attachments

10 2017/Shared Documents/Attachments/Water2017/W1.Context/VESTEL WFP Report_Rev0_ EN.pdf Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks Risk assessment procedure Coverage Scale Comprehensive company-wide risk assessment Direct operations All facilities Vestel Beyaz Eşya recognized direct water related risks can occur not in the distant future.continues risk assessment is implemented to avoid risks of Vestel facilities. Moreover, Vestel Beyaz Eşya carries identify on the all operation fields, such as procurement,production, environment,safety and etc.results of diagnosis are reported to Vestel Beyaz Eşya Generel Manager.We are also reviewing the ISO 14001: 2015 risk assessment. We are in the same organized industrial zone with 40% of our domestic suppliers. That's why our water risks are the same. W2.3 Please state how frequently you undertake water risk assessments, at what geographical scale and how far into the future you consider risks for each assessment

11 Frequency Geographic scale How far into the future are risks considered? Comment Annually River basin 3 to 6 years WBCSD Global Water Tool:Adequate to assess water-related risks at the time of future of organization.there is currently no system available for Turkey. The system is being followed. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy? Yes, evaluated over the next 5 years W2.4a how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy? Water is very important for our company. We attach particular importance to the production processes (product manufacturing) and the use of our employees. The risk of water is very important to us because we use our production dishwashers and washing machines as well as water. Moreover, This company is recognizing the government's combined regulation and the water related risk of foreign providing company. With that information, analyzing te impact of those risks on this company's business quantitatively, we are reflecting the result on our middle - long term plan. W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy, and are there any plans in place to do so in the future?

12 Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method how these methods are used in your risk assessment Internal company knowledge Regional government databases Water Footprint Network WBCSD Global Water Tool In order to expect government's water resource management and water quality regulation, this company is monitoring water quality, water quantity and etc. In addition, in ordert to manage the risk systemically, we are measuring the degree risk by entering the amount of water intake and amount used of each water intake origin and the discharge flow of each place with Water Footprint Network. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments?

13 Issues Choose option Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Vestel Beyaz Eşya has five facilities in Vestel City. The location is in the Manisa Organized District Area.Vestel Beyaz Eşya sends its wastewater to the organized industrial wastewater treatment plant. Polluted water is controlled for chemical oxygen demand (COD), suspended solid matter (TSS), oilgrease, zinc, copper, nickel, lead, total chrome parameters. Vestel Beyaz Eşya sends its wastewater to the organized industrial wastewater treatment plant. Remuneration is based on the pollution load. A pollution charge or tax can be defined as a "price" to be paid on the use of the environment. The four main types of charges used for controlling pollution are: (i) effluent charges, i.e. charges which are based on the quantity and/or quality of the discharged pollutants, (ii) user charges, i.e. fees paid for the use of collective treatment facilities, (iii) product charges, i.e. charges levied on products that are harmful to the environment when used as an input to the production process, consumed, or disposed of, and (iv) administrative charges, i.e. fees paid to authorities for such purposes as chemical registration or financing licensing and pollution control activities. In order to maintain good relationship with local steakholders, we monitor the conflicts related to water resources aroun the site. Industries that produce metals, wood, paper, chemicals, gasoline, oils, and most other products all use water in some part of their production process. Industry depends on water, much like agriculture and domestic households depend on water. Industrial reliance on water makes it essential to preserve water in every aspect possible and make sure water pollution is kept at minimal levels. Gediz River (in Gediz Basin) is in a state of highly polluted surface water according to the Surface Water Quality Regulation. It has Class IV water (highly polluted water) quality in terms of domestic waster, industrial waste and nitrogen, organic matter and heavy metals caused by agricultural activities. Preparation of Action Plans for Basin Preservation by the Ministry of Environment and Urbanization were initiated within this respect, and hydrological basins located in Turkey are scored by primarily considering the water quality, pollutant sources, protected areas and drink water resources in the basin. Gediz Basin is ranked within the first five basins in the prioritization matrix. Gediz Basin Action Plan is implemented to inspect the sources of pollution observed in Gediz Basin in further detail, take necessary measures to prevent the pollution resulting from the current situation, and to specify the measures to be taken for prevention of pollution in short, medium and long terms. The objective of Action Plan for Preservation of Gediz Basin is to minimize pollution loads affecting the water quality. We continuously make assessments for WASH in line with our in all facilities are located to ensure the health and safety of our employees. In addition to this, we are monitoring enough supply of water for living and evaluate the quantity and quality of water for our employees on a continuous basis. We use underground and municipal water. Perhaps contamination of groundwater may affect product quality. For this reason, issues related to water resources and water quality should reflect the water risk

14 Issues Choose option assessment. As a result of the analyzes we have done in this regard, changes in the amount of water available in the river area constitute the water strategy by determining water resources. Estimates of future potential regulatory changes at a local level Due to critical status of Gediz Basin, water availability and quality decreasing due to the increasing water demand might become significant and direct and indirect risks and threats for businesses. These threats might cause restrictions to arise in water allocation of companies, increase of water prices, and performance of stricter regulations regarding the water quality and further inspection. Estimates of future potential stakeholder conflicts at a local level As the amount of water decreases, we believe that stakeholder conflict will start to affect the supply chain.water backup to help get rid of the possibility of going beyond legal requirements, we have increased the foundation and water shortages have developed policy.we're trying to develop a policy to minimize our water and our dependence on water usage. We have been working on water since Estimates of future implications of water on your key commodities/raw materials The limitations of both direct and indirect use of water in the supply chain will affect costs. The gray water will be treated and therefore the goods, equipment and supplies procured will be more expensive. The protection of ecosystems is an essential goal for all our operations. Each of our factories will monitor relevant ecosystem indicators and analyze them as internal information to support the risk assessment Estimates of future potential changes in process.we examine the potential effects of underground water that we use for processing and the the status of ecosystems and habitats effects of gray water resulting from processes with specific parameters.we are also following the Basin at a local level Report, which was created by the Ministry of Environment and Urbanism. Based on the observed trends to optimize future outcome, we are trying to identify mitigation strategies. Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Sustainable water supply is an important part of our operation. Although we can not use water in every process, it is very important for us to have water quality and sustainability especially for the dyeing process. We have made short and long term water management planning with our company knowledge. We will have improved the water balance inherent in our facility. Sustainable water supply and discharge permits have a critical precaution for all operations.we are experiencing significant increases in water costs and a strategy is being developed to reduce the need Scenario analysis of regulatory and/or for clean fresh water.we assess and monitor the potential of regulatory changes related to the subject, tariff changes at a local level the unity internal knowledge information A series of water saving projects are underway or are being developed. While managing our work on water issues, our water resources management policy, operational Scenario analysis of stakeholder changes, development of strategic plans, and so on. We work with all of our stakeholders. Water use is conflicts concerning water resources at a strategic issue for the future; Along with the changing weather conditions and increases in rival water a local level use, effective water management is needed. We are committed to supporting the long-term sustainability of water resources so that we can continue to grow. Scenario analysis of implications of Limited water can reduce or prevent growth and it could result in higher cost for raw materials. We water on your key commodities/raw monitor the main suppliers for waste water quality and harmful substances. Based on the monitoring materials results, we are doing scenario analysis. This process continues. Scenario analysis of potential changes We are reviewing the basin plan issued by the Ministry of Environment and Urbanization and TUBITAK.

15 Issues Choose option in the status of ecosystems and habitats at a local level Other Not evaluated We make risk assessments through the plan.we report to our management with the necessary responses, with potential ecosystem changes, concerns and risks that may be impacted. Our Water Resources Management Policy identifies the key issues that need to be addressed.for example; To provide adequate and economical resources, to increase water quality, to preserve and restore biodiversity and to preserve high-quality community recreation areas, and so on. There are no other issues Vestel Beyaz Eşya includes in our risk assessment process. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments? Stakeholder Choose option Customers Employees Investors We are trying to reduce the amount of water we use per unit of product. We calculate our carbon footprint on an enterprise basis. As water-consuming electronics such as washing machine, dishwashers and other products that work for the products we manufacture, we are developing sustainable design tools that are so important to our customers. We produce energy and water saving products. For example ; Vestel Pyrojet washing machine, which consumes 70% less energy than machines with an 8 kg capacity and 60% less energy and 22% less water than machines with a 9 kg capacity in the A+++ energy class, is now the world record holder for energy efficiency. Vestel Ekomaks dishwasher consumes 20% less energy than an A+++ energy class dishwasher. Pyrojet and Ekomaks received VDE approval from the German Association for electrical, Electronic and Information Technologies by virtue of their energy efficiency. Providing quality water to employees is a must for workers' well-being. With that in mind, we are developing strategies for water. We strive to continually improve our water performance through training of all new employees and raising awareness and review this annually. It is regarded as part of large external stakeholders with general interest in sustainable practices for water resource management. Our stakeholders are publicly announced on various international platforms such as water management data to work with our stakeholders, Istanbul Stock Exchange Sustainability Index (BIST), CDP water exploration and Zorlu Holding Sustainability Report and Vestel Beyaz Eşya Annual Report. Our reports are in both

16 Stakeholder Choose option Local communities NGOs Other water users at a local level Regulators River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities at a local level Not relevant, explanation provided English and Turkish languages to reach wider masses where our products are used. In addition to disclosing official water data, we have developed various forms of communication materials such as Web-based social media and brochures, Vestel Beyaz Eşya water management methods, initiatives and news. We are striving as a company to respond to our stakeholders' concerns about quality of water, which is one of our most important aspects. Factors of local communities include water quality risk assessment at the company level that assesses the potential local impact of operations between local water resources, environmental and water resources and communities. To determine where there is high potential for stakeholder conflicts in the water environment, we sought to conduct a business assessment using the WWF Water Risk Filter's Basis Risk section. However, we have not been able to reach sufficient data on Turkey's Gediz Basin. Concerns about stakeholder involvement are also being tracked through our site audit mechanisms. Sustainable practices for water resources management are generally regarded as part of large external stakeholders. Non-governmental (NGO) activities, which are sensitive to environmental problems, have an important influence on environmental management strategies. In assessing the risk of water, we create business strategies by conducting administrative work and gathering opinions from the NGOs in the country and region that want to do business to reflect them. In general, we see other water users at the local level as relevant stakeholders to be considered in our water risk assessments. However, we continue to do extensive benchmarking and implementation analysts in other companies and competitors to identify risks and opportunities at the global and local level. Changes in regulations and tariffs implemented by regulators with the objective of managing water resources will directly impact Vestel Beyaz Eşya operations, and on sequently regulators are an important stakeholder group in the risk assessment process. We respect the need of other water users. The basin management authorities are representatives at the local level to establish and maintain river basin water management plans.our water discharge permit is not only protected according to national and regional regulations, but also supported at the local level. We consider river basin authorities as a factor in assessing water risks. Vestel Beyaz Eşya provides information on water saving activities to its stakeholders in its annual non-financial reporting (Annual Report) and local environmental reports. We respect the rights and concerns of all stakeholders to share local water resources. Response of stakeholders to their anxieties about water supply and quality is one of the most important aspects of our community efforts at the site level. It is regarded as part of the assessment of corporate water risk. Operations must report and upload basic water management parameters related to water infrastructure and use to the monthly company online data reporting network.we cover water use, risks and management aspects through our suppliers sustainability performance monitoring. Vestel Beyaz Eşya informs stakeholders about water saving activities in its annual non-financial reporting (Annual Report) and local environmental reports.in addition, Local water resources are involved in our site-level water risk assessment study that assesses the potential local impact of the operation between the environment and water resources and communities.

17 Stakeholder Choose option Other Not evaluated There are no other steakholders Vestel Beyaz Eşya includes in our risk assessment process. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment Primary reason Further Information Attachments /Shared Documents/Attachments/Water2017/W2.ProceduresandRequirements/faaliyet-raporu-2016 (2).pdf /Shared Documents/Attachments/Water2017/W2.ProceduresandRequirements/04-35_EN_0 + SU AYAK İZİ BİLGİ YÖNETİMİ PROSEDÜRÜ.pdf Module: Implications Page: W3. Water Risks W3.1 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure?

18 Yes, direct operations only W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk Vestel Beyaz Eşya Company has become one of the leading companies in the world quickly in a short time with its flexible production capability and the power of meeting the customer demands. With five different product group, more than fifty thousand models, Vestel designs and manufactures for all parameters, for all climate conditions and the whole world.vestel Beyaz Eşya performed well in 2016, increasing its sales revenues by 20% year-on-year to TL 3,037 million. Vestel Beyaz Eşya continues to work on water. In order to support the assessment and reduction of water related risks, we are developing a comprehensive Water Management Framework, including: - Water Position - Water Scarcity - Water Environmental Impacts - Water law compliance - Water quality - The amount of water - Community perception W3.2a Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure; and the proportion of company-widefacilities this represents

19 Country River basin Number of facilities exposed to water risk Proportion of company-wide facilities that this represents (%) Comment Turkey Other: Gediz River Basin 5 Less than 1% The activity carried out by Vestel Beyaz Eşya takes place within Manisa Organized Industrial Zone in Manisa. Three streams cross the area to be affected by Vestel Beyaz Eşya.These streams are; Gediz River, which is the second longest stream of Aegean Region, Nif brook and Karaçay creek. All these three streams are in adequate distance to the area of activity. There is no lake within the borders of the area to be affected by the activity.gediz River in Gediz Basin is in a state of highly polluted surface water according to the Surface Water Quality Regulation. It has Class IV water (highly polluted water) quality in terms of domestic waster, industrial waste and nitrogen, organic matter and heavy metals caused by agricultural activities. W3.2b For each river basin mentioned in W3.2a, please provide the proportion of the company's total financial value that could be affected by water risks Country River basin Financial reporting metric Proportion of chosen metric that could be affected Comment Turkey Other: Gediz River Basin % cost of goods sold 1-5 Manisa is located in Aegean Region in Turkey. The weather is summarized; The months April, May, June, September and October have nice weather with a good average temperature. Most rainfall (rainy season) is seen in January and December and Manisa has dry periods in May, June, July, August and September.This does not affect our speed of production and other parts of our work. W3.2c

20 Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the potential impact to your direct operations and the strategies to mitigate them Country River basin Risk driver Potential impact Description of potential impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs Turkey Other: Gediz River Basin Physical- Pollution of water source Higher operating costs We need to provide sufficient amount of water with a certain quality to our employees for their daily use (drinking, sanitation and cleaning). In addition, we also need to use water with high water quality in our dyehouse processes. Unknown Probable Low Develop flood emergency plans Infrastructure investment Infrastructure maintenance Increased investment in new technology Decreasing water quality may increase the budget, which we will not spend on water purification. We purify our water to prevent the increase of water pollution. In order to prevent water scarcity, we produce projects in order to use water in the plant. Water quality is an important issues, therefore we seperate budget for water Project. For example, In 2016, Water Project management cost is approximately 2 million TL. This cost manage to total freshwater and discharge water investment in new technology. W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the potential impact to your supply chain and the strategies to mitigate them

21 Country River basin Risk driver Potential impact Description of potential impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure Primary reason W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Evaluation in progress We need to provide employees with adequate water for their daily use (drinking, sanitation and cleaning) with a certain quality. In addition, we have to use water with high water quality in our dyehouse processes. We are doing our necessary work for this. By calculating our water footprint in We have received ISO certification. The process will continue based on the year 2016 values.

22 W3.2g Please choose the option that best explains why you do not know if your organization is exposed to water risks that could generate a substantive change in your business operations, revenue or expenditure and discuss any future plans you have to assess this Primary reason Future plans Further Information Page: W4. Water Opportunities W4.1 Does water present strategic, operational or market opportunities that substantively benefit/have the potential to benefit your organization? Yes W4.1a Please describe the opportunities water presents to your organization and your strategies to realize them

23 Country or region Opportunity Strategy to realize opportunity Estimated timeframe Comment Turkey Turkey Turkey Turkey Cost savings Sales of new products/services R&D Increased brand value It reduces capital and operating costs by reducing water treatment requirements, water withdrawals and associated costs by increasing on-site use instead of recycled water drainage. Prior to purchasing new products from our factory, we prioritize choosing energy and water-saving products during the purchasing process. In 2016, the ratio of R & D expenditures made by the Company to total sales was 1.4%.An important part of R & D work is the development of environmentally friendly technologies and products that provide extra hygiene, efficient use of resources by saving energy and water at the highest level. In addition, The number of employees of R & D Group increased from 396 in 2015 to 469 in The details about our product R & D activities you will find in our report. (Pages 45-48) D FF4F/FinalDownload/DownloadId- 048E88C5FFD575BFA4C273FC5AF412AE/70B B9F-499B-AC0D- D FF4F/_assets/pdf/faliyet/2016/faaliyet-raporu-2016.pdf We are applying technologies to reduce the amount of water used in product manufacturing and product use phases.the promotional activities of water saving products are improving our brand image as an environmentally friendly company.it also meets the demands of consumers for an environmentally conscious product. 1-3 years 1-3 years 1-3 years 4-6 years This is a strategic assessment for us as a large part of the water for dyeing is recycled or reused in our operations. Therefore, water quality increase and water consumption ratio is decreased. For example; The bulbs in our factories have turned into energy-saving led bulbs. We completed this in the scope of the Productivity Enhancement Project. W4.1b Please choose the option that best explains why water does not present your organization with any opportunities that have the potential to provide substantive benefit

24 Primary reason W4.1c Please choose the option that best explains why you do not know if water presents your organization with any opportunities that have the potential to provide substantive benefit Primary reason Further Information Module: Accounting Page: W5. Facility Level Water Accounting (I) W5.1 Water withdrawals: for the reporting year, please complete the table below with water accounting data for all facilities in your answer to W3.2a

25 Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Facility 1 Turkey Other: Gediz River Basin Manisa Organized Water Treatment Plant About the same Manisa Organized Water Treatment Plant is a part of domestic and industrial types of waste water which are purified at Central Biological and Chemical Waste Water Purification Facility which has 6.500m³/day capacity. It is two part of the Facility has m³/day waste water purification. Waste Water Purification Facility which is located in m² area, has m³ /day total capacity. Further Information Page: W5. Facility Level Water Accounting (II) W5.1a Water withdrawals: for the reporting year, please provide withdrawal data, in megaliters per year, for the water sources used for all facilities reported in W5.1 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Comment

26 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Comment Facility Vestel Beyaz Eşya has one well in facility area. W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities in your answer to W3.2a Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? Facility About the same Vestel Beyaz Eşya increase production capacity. Moreover, in last year, we carry out water- reuse (recycle)projects. Water discharged per product ratio decrease by %2. W5.2a Water discharge: for the reporting year, please provide water discharge data, in megaliters per year, by destination for all facilities reported in W5.2

27 Facility reference number Fresh surface water Municipal/industrial wastewater treatment plant Seawater Groundwater Wastewater for another organization Comment Facility Vestel Beyaz Eşya increase production capacity. Moreover, in last year, we carry out water- reuse (recycle)projects. Water discharged per product ratio decrease by %2. W5.3 Water consumption: for the reporting year, please provide water consumption data for all facilities reported in W3.2a Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year? Facility About the same Vestel Beyaz Eşya increase product ion capacity. Moreover, in last year, we carry out water- savng projects. Water consumption per product ratio decrease by %2. W5.4 For all facilities reported in W3.2a what proportion of their water accounting data has been externally verified? Water aspect % verification What standard and methodology was used?

28 Water aspect % verification What standard and methodology was used? Water withdrawals- total volumes Water withdrawals- volume by sources Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Further Information Module: Response Page: W6. Governance and Strategy W6.1 Who has the highest level of direct responsibility for water within your organization and how frequently are they briefed? Highest level of direct responsibility for water issues Frequency of briefings on water issues Comment Board of individuals/sub-set of the Board or other committee appointed by the Board Scheduledquarterly Vestel Beyaz Eşya supports company-wide water management programs in all its departments. There is also an Environmental Engineer who is interested in the subject in the environmental department.it is integrated with the maintenance department. Two departments are briefings on water issues scheduled monthly. They are responsible for following and applying the Environmental Policy and all related standards when

29 Highest level of direct responsibility for water issues Frequency of briefings on water issues Comment considering the responsibilities of the projects, activities and production. W6.2 Is water management integrated into your business strategy? Yes W6.2a Please choose the option(s) below that best explains how water has positively influenced your business strategy Influence of water on business strategy Establishment of sustainability goals Introduction of water management KPIs Investment in staff/training Water resource considerations are factored into new product development Water management in the durable consumer goods industry is an important factor determining the quality of the product. We have environmential action plan, which include a target concerning sustainable water use. For example,we have a goal of reducing the use water by 22% per product of In our company, water management is controlled KPIs by the Health, Safety and Environmental(HSE).The amount of water consumed per unit of product is monitored monthly. We have consultancy services for water management related departments. In addition, necessary trainings are given within the scope of Environmental Management Systems. The R&D department works with all the power to produce water-saving products in especially dishwasher and washing machine factory.for example; 9 kg Capacity PyrojetTM Washing Machine : The washing machine with PyrojetTM technology, consumes 60% less energy than products with a 9 kg capacity in the A+++ energy class, saves 3,080 liters of water annually

30 Influence of water on business strategy Water resource considerations are factored into new product development and provides maximum hygiene with the Allergy Specialist Program endorsed by Allergy UK. In the Cooking Appliances Plant, the suspension revision and the angle of the nozzles made on the surface processing line were changed to start washing both normal and double oven upper inner body. In this way, the daily number of dubbed ovens that were washed daily was reduced to 350 out of 700 in the top row. As a result of the work, tons of water loss was prevented, and the chemical was also depleted in Alkaline degreasing chemicals and passivation chemicals. W6.2b Please choose the option(s) below that best explains how water has negatively influenced your business strategy Influence of water on business strategy Increased capital expenditure Provide industrial water approval for additional water intake by related public organization. In addition to the provide surface water inflow and provide stable supply of municipal water. W6.2c Please choose the option that best explains why your organization does not integrate water management into its business strategy and discuss any future plans to do so Primary reason

31 W6.3 Does your organization have a water policy that sets out clear goals and guidelines for action? Yes W6.3a Please select the content that best describes your water policy (tick all that apply) Content why this content is Publicly available Company-wide Select facilities only Performance standards for direct operations Performance standards for supplier, procurement and contracting best practice Incorporated within group environmental, sustainability or EHS policy Public Available: Vestel Beyaz Eşya sustainability policy and the effective use of water preservation, 2022 targets related to minimizing the emission of water pollutants and water are public. Company-wide: Vestel Beyaz Eşya Environmental Policy and water target apply to all operations throughout the company. The water saving priority differs according to the production processes consuming excess water. The water quality requirements and the product water usage target are valid for our semi-producers. Select facilities only: We apply specific water policy, targets and program actions from facility in scarce areas. Performance standards for direct operations: Direct operations have to report comprehensive water supplies and have to implement water saving programs based on water scarcity levels. Performance standards for suppliers: Responsible Procurement Programs, including questionnaires, surveys and supplier inspections, as well as Supplier Code of Conduct, cover water consumption and water drain parameters. Performance standards for supplier, procurement and contracting best practice : Responsible Procurement programs, surveys, research and supplier audits cover water consumption and water drain parameters. W6.4 How does your organization's water-related capital expenditure (CAPEX) and operating expenditure (OPEX) during the most recent reporting year compare to the previous reporting year?

32 Water CAPEX (+/- % change) Water OPEX (+/- % change) Motivation for these changes Responsible water management will continue to be an important industry and global concern. In order to optimize the water management decision-making process, we will continue to focus more on integrating company-level water management with various units, including production, environmental and community involvement. We are currently developing a comprehensive water management framework to guide the remediation process. According to ISO 14046, we started to settle for water footprint. Further Information Attachments /Shared Documents/Attachments/Water2017/W6.GovernanceandStrategy/VESTEL WFP Report-CDP.pdf /Shared Documents/Attachments/Water2017/W6.GovernanceandStrategy/ ISO Verification Statement Certificate - Signed.pdf Page: W7. Compliance W7.1 Was your organization subject to any penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations in the reporting year? No W7.1a Please describe the penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations and your plans for resolving them