Mutlu Aku ve Malzemeleri Sanayii A.S.

Contact: Mr. Sermet Kasigur

Adress: Eski Izmit Yolu Tepeoren Koyu 34940 P.K. 73–74 34940 Tuzla Istanbul Turkey

Phone: +90 216 304 15 90 PBX

Fax: +90 216 304 18 70

E-mail: mailbox@mutlu.com.tr

mutlu@mutlu.com.tr

Web: www.mutlu.com.tr

The past and the future

Since its foundation in 1945, Mutlu Incorporated has played a major role in the development of the Turkish Economy through its involvement in both export and import. With the aid of new liberal and open market export orinted economic policies being adopted by the government in 1983, our high standards of production ensured our superiority over other competing brands, both domestically and internationally. Our domestic market share has grown steadily to 40% in correlation to the domestic increase in consumer demand for higher quality. Our international trade capacity has been gradually increased from $2 million to an export figure of $20 million. In 1996, The Mutlu facilities were relocated from Kartal to Tepeören-Tuzla. The major part of the cost of this modern facility has been provided from the net assets of the company while the remaining portion of one fourth has been provided by floatation in the stock market. The ratio of public shares reached 25% in the years of 1994 and 1995; thus the Mutlu Company has become a public company. Mutlu Akü is the primary subsidiary of Mutlu Holdings. The other subsidiary companies are; Mutlu Plastik A.Ş., Türker İzabe ve Rafine San. A.Ş. Battery production takes place in the Tepeören plant. Production line also includes Red Lead, and Litharge. Since the red lead and litharge are the derivatives of lead, they constitute the primary raw materials used in the industry of crystal, glass and ceramics. Smelting and refinery plants are been operated at Kütahya-Gediz. As the largest battery manufacturer in Turkey, the Middle East and the Eastern Europe together with the opening of the new 230,000 m2 facilities in its 51st anniversary year, Mutlu Akü.

The Largest Manufacturer of Batteries in East Europe and Middle East Mutlu Akü has been since 1982, the sole Turkish Member of the BCI (Battery Council International), the IBMA (Independent Battery Manufacturers Association), and joined EUROBAT (Association of European AccumulatorManufacturers) in 1994.

Mutlu Akü regularly participates in the yearly conventions of such associations where the notable companies in the world come together to monitor developments in the industry and to take advantage of exchanging ideas with industrial colleagues.

Capacity

Production capacity has reached 3,5 million units/year thanks to the production flow in our Tepeören plant where modernization and automatization is provided. Due to different production and development possibilities our capacity can be increased further.

Quality management

As a result of continual external auditing of our new facilities by our clients, our quality ranking is constantly on the increase as can be witnessed through the certification of our products. Capacity and cranking performance of Mutlu Akü is at least as indicated on the product, with quality proved in the market, and attained customer satisfaction. ISO 9001 Certificate obtained from DQS in 1994, and ISO 9001 Certificate obtained from TSE in 1995 are still valid. The QS 9000 Certificate which is very important in the automotive sector has been issued by DQS at the beginning of 2000. Our internal training activities on ISO/TS 16949 - Automotive Quality System Standards are completed. The internal organization necessary to obtain a certificate has been done and our activities in this respect are going on. Apart from this an evaluation work in collaboration with an independent university is being performed. It is our target to develop and change permanently and to be "en route" of total quality.

Research and development (R&D)

We have the privilege of having a state-of-art Research & Development laboratory with latest technology equipment. New products developed around Customer Feedback by our top-notch engineering team with accumulated valuable experiences in various fields. Uniquely another modern laboratory that has wide range of capabilities can be found in Mutlu Manufacturing Park. In Mutlu Manufacturing Park in addition to accumulator manufacturing, we have lab facility for measuring and analyzing the Lead-the main raw material. In our laboratories Mutlu Research & Development Engineers can implement any type of Product Development and Product Improvement research. In 1990, Turkish Standards Institute (TSE) recognized Mutlu Akü with "Approval of R&D Lab" certificate and placed Mutlu above the rest in setting the High Standards of Quality set by Mutlu. With this approval TSE gives special service to Mutlu by implementing Battery

Production

Starter batteries

In addition to producing batteries in Hybrid System, Mutlu Akü has also begun to produce CA-CA BATTERIES with Expanded Metal Technology in 1996. We have also two types of strip treating systems which, according to modern battery technology, have reciprocal advantages (performance and expanded). As processing possibilities for different lead alloys by gravity and expanded casting exist, we are able to produce batteries in different combinations. (Low antimony, hybrid, Ca-Ca, Casting, Cast-expanded, Expanded-Expanded etc.). 12 Volt and 6 Volt starter batteries are produced for motor vehicles in accordance to EN standard. Our maintenance-free batteries of over 100 types with different Amps, have after a modification made thereon, in addition to their flame retardant system, the possibility to retain acid particles contained in leaking gases which are hazardous to the environment. There are normal and kamina types.

Stationary batteries

Semi maintenance-free industrial type acid-lead stationary batteries are manufactured in types OpzS (tube) and OGI (plastered) in the form of 2V cells from 25Ah to 5000Ah with the possibility of installing at any required voltage level. We have been producing up to 300Ah with 12V and 6V casings. The stationary batteries are designed for purposes that require continuous power supply such as; communication, transportation, hospitals, power plants, control systems, irrigation and pump stations, safety lights, solar cells, etc. The block types are available in plastic casings, while others are available in transparent casings in accordance with the existing demand.

Traction batteries

Traction batteries are the high tractional power types made of tubular positive accumulator plates (PzS). Such batteries have a wide range of usage in freight loading and off loading works, power vehicles, packing and lifting platforms and automatic steering vehicles and in some other special DC moving systems. They have excellent cycle features and high starting capacity essential for use in forklifts. Traction batteries are also manufactured in fireproof casings that are equipped with lids conforming to usage in the illuminating of diesel locomotives and train cars.

Cap lamp batteries

The interior and exterior design of such batteries make them exclusive for use in mines and tunnel works. The lamp cap linked to the battery is included in our production as well. Our unique caplamp batteries are in having been manufactured under the license no. of (ALSz) 0059/84 granted by the Turkish Mining Department associated with the TSE Certification. (Department of State Standards Institute

Sales

Domestic market

Mutlu Akü is the leader in domestic market with 40% market share which includes the sales of our Çelik Akü, Povver Akü and Halk Akü segmented brands. The total domestic sales of the Starter Battery, makes 85% of our overall sales, reached the 1.400.000 unit levels. Nothwithstanding its market share of 60-70% on the basis of overall sales to the main companies within the automative industry, the Mutlu Group controls 80% of the industrial lead acid battery market. Our customer portfolio includes the leading companies in Turkey such as: FIAT-Tofaş, Ford Otosan, Toyota, Hyundai, Uzel, Mercedes, A.Isuzu, BMC, Temsa, Temsa İş Makinaları, MAN, ASKAM Kamyon, Otokar, Honda Anadolu Motosiklet Üretim ve Pazarlama A.Ş., FGV, Anadolu Endustriyel Motor San. A.Ş., FNSS, Çukurova, Turkish Armed Forces, Türk Telekom, TCDD (Turkish State Railways), Demir Çelik İşletmeleri, Turkish Gas and Electricity, Department of National Highways, National Water Authority and State owned Coal Mining Companies are among our long list of highly credible large customers. Mutlu works hard towards the zero-defect objective and also always delivers to its customers the two-year guarantee on all Mutlu products. Field engineers from Mutlu Akü Service organizations throughout Turkey are being trained in our company to increase after market service quality. The domestic market is supplied by three large, approximately twenty medium and 200 small sized manufacturers. The market share breakdowns of the companies are as follows: major manufacturers 20%, medium size manufacturers 30%, and small size manufacturers 10% (the market share of the Mutlu Akü being excluded). Mutlu Akü network comprises 5000 sales points spread all over Turkey a results of the extensive efforts dedicated by the company for more than a half a century. Under the company objectives of quality service and customer satisfaction, the dealership organization is spread between 73 dealers whose sales borders are determined geographically. The distinctiveness of Mutlu Akü on the Industrial Battery Sector cannot be denied. Mutlu Akü renders service to almost all telephone exchanges and radio-link stations throughout Turkey of Türk Telekom A.Ş., and to highly strategic sites like Power Stations and hermal Power Stations of the Turkish Electricity Company and private organizations. Since, as a result of our business we seriously consider a service after market; control of supplied batteries is not only performed during the warranty period, but during their lifetime as well. Periodic control of batteries supplied and installed by ourselves is being performed by fully equipped vehicles and trained engineers and reported to relevant units. Thanks to the service rendered, the life of Mutlu Industrial batteries is increased to 15 years

Export market

1982 saw the beginning of a new era. We were one of the first Turkish companies to enter the markets of the USSR, considered to be the toughest market of this time. Having acquired such opportunity, our company achieved considerable volumes of battery sales to the USSR resulting in the substantial transfer of foreign currency, and thus placing Mutlu amongst the other notable foreign currency providing Turkish companies. Mutlu has been exporting batteries to automobile manufacturing companies with its approved quality insurance, making us the preferred supplier of batteries to the LADA and Moskovitz Companies. Mutlu Akü first exported to Poland and Russia. Business relations with individual countries of the former Soviet Union is going on now with Latvia, Ukraine, Kazakhstan, Azerbajdzan, Belarus, Uzbekistan, Georgia, Germany, Finland, Belgium, Malta, Greece, Romania, Czech Republic, Lebanon, Jordan, Saudi Arabia, Iraq, Libya, Algeria and Northern Cyprus etc. 30 - 40 % of our production is being exported. The major part of our export goes to Russian Federation, Turkish Republics, and BDT countries. Beside starter batteries we export stationary batteries from 100 Ah to 3000 Ah to B.D.T. and Northern Cyprus. Telephone exchanges in these countries and Space Base Baykonur in Kazakhstan are working with such batteries. In order to introduce our name on foreign markets and to strengthen our relations to customers we participate, since 1990, in several international automotive, automotive spare parts and accessory fairs in Turkey, Germany, Hungary, Czech Republic, Slovakia, Ukraine, Russia and Turkish Republics. We are proud to represent Turkish Battery Industry every year on Fairs of Turkish Export Products organized in Russia and Turkish Republics. We are proud of being announced as supplier to FIAT after the conformity of our batteries as to quality and to FIAT specifications, which batteries were exported through Tofaş to FIAT factory in 2002 for installation in vehicles produced in Italy. Global competition in world markets has made it essential to provide high standards of service quality. The initial export capacity of $50,000/year of our company now has reached an average export figure of $20,000,000/year. Superior quality of our batteries with respect to our competitors, efficient after sales service and product differentiation in many aspects has made the Mutlu trade mark the most favorable brand in international and domestic markets.

Accommodation to Environment

Our new plant which apart of being located far away from municipal pollution is working with modernized, automated, refining and ventilation installations and systems has achieved a very clean and respected structure for the environment. The peacocks; living on the grounds of Mutlu Akü manufacturing plant has become the landmark of our environmental protection responsibility. Dust emitted from our plant is retained by means of imported and local filtration and ventilation system and it has been achieved to reduce limit values indicated according legal regulations to under 1/10. Thanks to the same systems, the emissions (internal working site) are kept below limits. Since we are using LPG in our entire plant, one of the cleanest and environmental friendly fuels, even fuel emissions are kept on a minimum level. We have efficient and modern installations for recycling waste water which is one of the most important conditions for an existence in environmental compromise. The waste water softening plant at Mutlu Akü Tepeören facilities is established on an area of totally 1225 square meters, 340 square meters of which is covered. Daily hundreds of tons of liquid waste is treated, recovered, and economically evaluated. Used batteries are subjected to treatments in our battery crushing and washing plant located in Kütahya-Gediz. The plant is equipped with filtration systems and waste water recycling installations, plastic lids and containers, small separator pieces, lead oxide, small lead pieces are recycled as well to avoid pollution of the environment. We have made significant investment in creating Environment Friendly production facilities. We are proud to receive ISO 14001 Environmental Certification in 2002, endorsing high environmental protection standards of Mutlu Akü A.Ş. at its manufacturing campus.

Training and motivation

While setting and maintaining high standards in Product Quality, Mutlu believes it can only be achieved through employing quality people. Therefore, Mutlu has developed mandatory Total Quality Management programs for continuous training and skills development/improvement programs for its employees. The local trainings include seminars and conferences in areas such as Quality, Finance, Production, Sales, Customer Satisfaction and other key subjects. In the international part of training Mutlu employees visit the most Hitech Battery Plants and Battery Production Machine Makers in Europe and the United States with whom Mutlu Akü has technical cooperation. The visiting employees focus on understanding the latest technologies used and required technical skills. They also develop international synergies and partnerships on behalf of Mutlu with the companies they visit. As part of the company’s Corporate Social Responsibility acts Mutlu always aiming to contribute overcoming social issues and improving the quality of living standards. In 1980 Mutlu has built an Elementary School to create equal opportunity of education to less fortunate and named the school after its founder as Cemil Türker İlköğretim Okulu.