PRESS RELEASE Interview

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1 Interview Interview with Jürgen Ridder, Managing Director of Dürr Systems Ltd. Şti. in Turkey "Turkey is a dynamic hub in the Middle and Far East" Turkey's economy grew by 2.9 percent in 2014, while this year's growth rate is likely to exceed that number by more than one percentage point. For 2016, the Turkish government anticipates a boost in the GDP by no less than five percent. This positive development also has an effect on the Dürr mechanical and plant engineering firm, which in 2007 opened a subsidiary in Istanbul to solidify the business relationships cultivated there. By the end of June, the decision was made to strengthen the existing location by adding a further office building with its own logistics center in İzmit. In an interview, Jürgen Ridder, Managing Director at Dürr Systems Ltd. Şti. in Turkey, discusses the key areas of focus, special regional considerations taken into account, and strategic objectives pursued. What range of products and services does Dürr offer in Turkey? We offer our entire range of products and services in Turkey, such as paint shops and the associated application technology, plants for final assembly, and balancing systems. Consulting is also part of our portfolio as are installation and commissioning on site, and we will hold training courses for operators at the customer if so desired. In addition, we cover all aspects of the Dürr after-sales service program in Turkey from spare parts to repairs and other services whereby we are not restricted to national borders as Turkey is in a strategically favorable location that serves as a gateway to the Middle and Far East. 1

2 So in other words, you also offer services to other countries from your location in Turkey? Exactly. Turkey is the gateway to countries that are somewhat difficult to access from Germany not only from a geographical perspective, but also a cultural one countries such as Iraq, and in the future, Iran as well. And it is these very countries that we maintain good business relationships with from our base location in Turkey. What developments are currently being observed in Turkey itself? For Dürr, Turkey has long been much more than simply a hub in which to do business as the country is advancing at a noticeable pace and continues to open its markets. Exports are on the rise, and infrastructure has improved appreciably over the last few years. All of these activities make the country increasingly important to a wide variety of industries. What sectors does Dürr currently collaborate with in Turkey? As is the case in other countries, the automotive industry is a large customer in Turkey as well. Numerous OEMs operate production facilities here, and one could almost go as far as saying that there are no manufacturers that cover all aspects of the production process without at least some assistance from Dürr. Joint ventures among large automakers form part of our customer base, such as the Ford Otosan and Fiat Tofaş arrangement, as do the contracts we have with individual manufacturers such as Kasan, Hyundai, and Renault. When it comes to offering environmental engineering solutions, we are equally well represented in carbon fiber factories. In fact, you will find our products in all applications in which air purification or other cleansing and filtering systems are required. Refineries and the timber and ceramics industries are other sectors that Dürr targets in Turkey. 2

3 Is the new "Industrial Products" division, which offers painting systems to general industrial sectors, also included in Dürr's product portfolio for Turkey? Yes. Since last October, Dürr has thereby expanded its operative focus to extend to pumps, paint supply systems, and conventional application technology for manual and automatic operation as well as 2C plants and product systems involving electrostatic applications. Our new "Industrial Products" division allows us to cater to the plastics, wagon and shipbuilding, ceramics, timber, and furniture industries, while the Dürr Webshop has given rise to an entirely new sales channel. This October, we will put the spotlight on the new "Industrial Products" division at the PaintExpo in Istanbul as well as focus on our innovations in systems engineering, application technology, and air purification. What special challenges are involved in doing business in Turkey? Turkey is in great need of qualified technical specialists. One of the reasons for this is that the education required to become an engineer simply costs too much money for many people. The government has made substantial progress in the last few years, however, by really backing the engineering profession with political muscle and support. This is definitely not the case when it comes to the state-funded professional training programs we are accustomed to in Germany, however, which do not exist in any form here. I am confident that long-term progress will be made in this area as well, though, but will probably take one to two generations before any major changes have been realized. The words "long term" bring me to my next question. You opened up a new subsidiary office in İzmit. What do you have planned for the next ten years? We currently employ 17 members of staff. By 2020, we want to at least double this figure as well as sales. To this end, the new location marks a 3

4 definite step in the right direction. The overarching objective, however, is to establish a fully self-sufficient design and production center that can implement all aspects of small-scale projects on site. Our new office building also connects to a storage facility that has a total floor space of 270 square meters. In other words, we are becoming poised to offer a much more flexible, well-rounded spare parts service program. At the moment, we order our spare parts from other international Dürr subsidiaries a process that costs us too much time. All in all, one can say that we are simply looking to grow and expand our business in great strides, just as Turkey itself is doing. Photo(s): Portrait by Jürgen Ridder Photo of the new subsidiary office The Dürr Group is one of the world's leading mechanical and plant engineering firms. Products, systems and services offered by Dürr enable highly efficient manufacturing processes in different industries. Business with automobile manufacturers and their suppliers accounts for approximately 60% of Dürr's sales. Other market segments include, for example, the mechanical engineering, chemical and pharmaceutical industries and since the takeover of HOMAG Group AG in October 2014 the woodworking industry. Dürr has 92 business locations in 28 countries. With 14,200 employees, the Group plans to generate sales revenues of billion in The Dürr Group operates in the market with five divisions: Paint and Final Assembly Systems: paint shops and final assembly systems for the automotive industry Application Technology: robot technologies for the automatic application of paint as well as sealants and adhesives 4

5 Measuring and Process Systems: balancing and cleaning systems as well as testing and filling technology Clean Technology Systems: exhaust-air purification systems and energy-efficiency technology Woodworking Machinery and Systems: machinery and systems for the woodworking industry Contact: Jürgen Ridder Managing Director Phone: