ARTISTIC FABRIC & GARMENT INDUSTRIES CORPORATE PROFILE

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1 ARTISTIC FABRIC & GARMENT INDUSTRIES CORPORATE PROFILE 2018

2 C O N T E N T O U T L I N E Introduction: Who we are Section One: How we do it Section Two: Sustainability Section Three: Corporate Social Responsibility

3 THE LEADING SUPPLIER OF PREMIUM DENIM FABRIC AND GARMENTS IN THE WORLD.

4 W H O W E A R E Established in 1949 in Karachi, Artistic Fabric and Garment Industries is one of Pakistan s leading premium denim manufacturers. As a market leader, keeping abreast of the changing times, we produce quality denim in an innovative culture that seeks out and uses only the latest equipment and machinery. We pride ourselves on maintaining production methods that ensure a safe and productive work environment for our employees. This commitment to doing business in a socially responsible and sustainable way has not only earned us a LEED Gold certificate but the patronage of some of the world s top retail and designer brands.

5 COMPANY FACTS Family business since 1949 We have 27,000 employees We have 16 factories Offices in Pakistan, Spain and the USA We are Vertically integrated Working closely with all leading brands Global Footprint includes Asia, Europe and North America Flagship Garment Unit is the Highest rated LEED Gold garment facility in Pakistan

6 MISSION We believe in consistently moving towards a better product and a better world by acquiring technologies that ensure we offer customers a superior quality product while maintaining sustainable practices to protect our community and the environment. VISION 2020 To deliver premium products in the most ethical way possible by letting Innovation, Quality, and Transparency be our driving force towards success. We are determined to invest in renewable energy, explore new ways to reuse production waste and bridge differences through global collaborations.

7 OUR EMPLOYEES At AFGI, our employees are one of our greatest assets. It is why we ensure that they feel valued and respected while working with us. We do this by creating a balance between maintaining a fast paced, competitive and challenging work environment and one that is empowering, nurturing and makes them feel like they are part of the Artistic family. We believe that our employees work to their true potential when they feel invested and see a positive future for themselves at AFGI. It is all about job satisfaction and we fuel this sentiment through growth opportunities, employee recognition awards, health benefits and trainings that not only expose them to world renowned experts and technicians but also by involving them in community outreach programs, annual sports events and by celebrating cultural and festival holidays.

8 WE ARE PASSIONATE ABOUT WHAT WE DO.

9 H O W W E D O I T We at Artistic Fabric & Garment Industries (AFGI) are passionate about what we do and it shows in every aspect of our work. We re a vertically integrated company with a large-scale operation based in 16 locations across Karachi, Pakistan. We engage highly skilled local and foreign technicians at every stage of the production process to ensure and maintain the highest level of quality assurance. Our production strength allows us to produce 60 Million meters of fabric and 25 million garments per year along with some of the most innovative products for top Denim brands globally.

10 PRODUCTION FACTS 60 million meters of fabric per year 25 million garments per year 55 million pounds of yarn per year 14 State of the art high speed lasers La Roche Shredding Plant SGS approved In-house Laboratories Production spread over 16 specialised facilities in Karachi Experts from the US, Sri Lanka, Spain, Turkey, Italy

11 SPINNING When it comes to denim, the spinning process profoundly impacts the characteristics of the fabric. Established in 2007, our highly automated spinning plant produces 25 million kg of yarn per year. The plant is equipped with the latest German, Swiss and Italian machinery. Our Spinning Mill also has a state of the art laboratory which ensures that high production standards are maintained with the help of an online system.

12 FABRIC Artistic Fabric and Garment Industries has two manufacturing plants that produce over 60 million meters of denim per year. With control over raw materials, yarn manufacturing, and subsequent processes, we offer a product that doesn t compromise on fabric performance, shade consistency or finish. It all starts with our Fabric R&D Studio, where the new fabric is developed, the latest trends are uncovered, environmentally sustainable practices are researched, and more efficient production methods are sought out, all of which lead us to bring something new and unique to the denim market.

13 GARMENT AFGI has the capacity to produce 25 million garments per year. The commitment to move towards premium quality and innovative designs is facilitated by our laundry; a modern plant equipped with European washing machines. Our stitching facilities are equipped with high-tech machinery to maintain top quality. High-speed laser machines add further value to our product and move us closer to an environmentally friendly manufacturing process. Our services are specialized for each individual customer so that the facility is run as an extension of the brand s values and quality parameters.

14 ARTISTIC CARES IS THE FOUNDATION FOR ALL OUR CSR ACTIVITIES.

15 A R T I S T I C C A R E S AFGI is a socially and environmentally conscious company that constantly strives to discover and adopt better ways to do business. We do this through the Artistic Cares Foundation which works with a two pronged approach; Sustainability and On Going CSR.

16 INTERESTING FACTS Collaborated with WWF to plant trees First private-public funded PET CT Scan installed at public hospital 90,000+ patients treated at AFGI funded clinic Funding 4 primary education institutions in collaboration with TCF Ongoing training programs for garment workers through organizations such as PACE and UNDP First GRS certified sorting plant in the country 800 kg/hour waste shredding plant 70 households provided with blankets made from left-over denim scraps

17 Chemicals saved last year 1, t Energy saved last year 1 0, 5 7 0, 3 2 k W h Water saved last year 2 4, 4 6 9, g a l

18 WE BELIEVE IN MOVING TOWARDS A BETTER PRODUCT AND A BETTER WORLD

19 RESPONSIBILITY AND TRANSPARENCY We strongly believe in placing responsible manufacturing ahead of irresponsible profits by taking tangible actions towards our goals while maintaining 100% transparency. We have a 360 degree approach towards eco-friendly production from fiber to finished garment. We achieve this by going above and beyond the industry requirements through vertical sustainable solutions.

20 WATER TREATMENT One of the biggest dangers to marine life is the huge volumes of waste water continuously drained directly into rivers, streams and the ocean itself. The principle objective of industrial waste water treatment plants is to allow liquid waste discharge to be disposed of without damage to human health and to the environment. This is where Artistic Fabric and Garment Industries steps up. To produce one pair of jeans, the industry typically consumes thousands of gallons of water across processes to finally achieve the desired wash level. 1.4 MILLION GALLONS PER DAY CAN BE PROCESSED BY OUR WASTE WATER TREATMENT PLANTS

21 WATER TREATMENT To tackle this wastage, AFGI has taken on the initiative to have zero harmful discharge of water and hazardous chemicals while also reducing its overall water consumption. The company has invested in several waste water treatment and recycling plants designed for reuse of waste water in the manufacturing process and utility departments and also to achieve the British Standard Guidelines and European Standard parameters for water discharge into the sea. The long term goal is to recycle 65% of the daily water consumption through reverse osmosis plants.

22 POST CONSUMER WASTE When products have served their intended use and have been recovered from waste intended for disposal, they can be recycled into other goods. This is called Post- Consumer Waste Recycling. We are now equipped with a hard water recycling machine that has a very high production capacity. LEED GOLD CERTIFICATION Artistic Fabric and Garment Industries is the highest ranking LEED GOLD certified facility in Pakistan. LEED is a rating system that provides a framework that can be applied to create healthy, highly efficient, and costsaving green buildings. The LEED certification is a globally recognized symbol of sustainability achievement.

23 PACE P.A.C.E. (Personal Advancement and Career Enhancement) is a program, developed by Gap Inc. dedicated to supporting women who work in the global apparel industry and within our global supply chain. Through this program women are given foundational life skills, technical training and support that will help them advance in the workplace and in their personal lives. In 2017, we at AFGI launched the PACE program for our female garment workers. We interviewed and selected 4 trainers from our organization and had them undergo a weeklong training session. Since then, these trainers have successfully passed on their training to 150 female garment workers at AFGI as part of the first cycle, and are preparing for the second cycle.

24 WWF MANGROVE PLANTATION As part of WWF-Pakistan s Earth Hour 2018, Artistic Fabric and Garment Industries(AFGI) collaborated with WWF-Pakistan to launch a Mangroves Plantation Campaign which aims to work towards a greener and climate resilient Karachi. During the ceremony 300 mangroves were planted and Artistic committed to planting a total of 27,000 saplings by 24th March 2018 in an effort to reduce the company s carbon footprint; one sapling for every employee. TCF SCHOOLS AFGI has sponsored several TCF schools to invest in the future generation of our country that ranks low in literacy rates.

25 SUSTAINABILITY IS NOT A DESTINATION, IT S A JOURNEY

26 Introduced Organic Cotton, Tencel, Modal. Less water finishing. Invested in latest Eco Jeanologia lasers Started Sustainability Drive with a roadmap for Environmentally friendly production in the future. Started Using BCI Cotton Enhanced water conservation by upgrading to State of the Art Waste Water Treatment Plants for all units 2014 Started measuring environmental impact for garment finishes through Jeanologia EIM software SUSTAINABLE EFFORTS - PAST Invested in La Roche Shredding machine to "Close the loop Achieved LEED Silver. Started Recycling Water Post Consumer Waste. Recycled Poly and Caustic Recovery Unit. Jeanologia EIM scores Waterless Dyeing, Achieved LEED Gold, PET CT Scan, Highest level of CSR Efforts

27 Planting One tree for every employee. LEED Platinum 2018 SUSTAINABLE EFFORTS - FUTURE 2019 Renewable energy- Solar to power offices Renewable Wind Energy. Plant One tree for every pair of jeans that the company produces.

28 Corporate Office 39/A, Block 6, P.E.C.H.S, Shahra-e-Faisal, Karachi, 75400, Pakistan. P: (+92-21) / / F: (+92-21) / afgi@artisticgarment.com Artistic Garment Industries Plot # 53,54,71,72 Sector 28 Korangi Industrial Area, Karachi, Pakistan. P: (+92-21) / F: (+92-21) corporate@artisticgarment.com Artistic Fabric Mills 472, Deh Landhi, Bin Qasim Town Karachi, Pakistan. P: (+92-21) / F: (+92-21) denimculture@artisticfabricmills.com