1. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Welcome to Sakosa

2. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Program 08:30Depart from Istanbul 10:00Arrival to Kentsa (Argesa Conference Room) Coffe - Presentations 10: 45Moving To Sakosa Site 11:00Site Tour Starts at Sakosa 12:00Lunch (Kentsa Social Club) 13:00Depart from Kentsa to Istanbul

3. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Sabancı Holding Sectors: Tire, Tire Reinforcement, Automotive Banking and Insurance Chemistry Retailing Food Cement Textile Joint Ventures with: Bridgestone DuPont Bekaert Philip Morris Toyota Carrefour Heidelberg Zement International Paper Banque Nationale de Paris Dresdner Bank Turnover: USD 11 billion Employment: 35,000

4. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Kentsa Introductory Film (5 min.)

5. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Road To Excellence Road To Excellence in Polyester Tire Reinforcement Presentation at Knowledge Economic Forum IV March 24, 2005 İzmit, Turkey

6. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Contents Tire Industry Tire Reinforcement Materials Kentsa serving to tire industry... Sakosa Introduction Innovation and Development New Product Development Respect To Environment (reaching to benchmark level) Culture and Training Aligning Company and Employee Performance

7. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Tire Industry Types of Tires: Auto Light Truck Truck/Bus Others Tire Markets: Vehicle Producers (OE) Replacement Buyers Tire Technology: Radial Cross-Ply

8. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Tire Industry A global business. Big 5 manufacturers produce around 70% of worlds demand Very high technical standarts Approval times for a new product take around 1.5 year Turkey, a critical production centre to Greater Europe (Europe, Middle East, Africa) PETLAS PETLAS

9. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Tire Reinforcement Materials A typical radial tire for automobiles is reinfoced by..... Steel Fabric combinations of Polyester, Polyamide, Viscose

10. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Sabancı Holding serving to Tire Industry Holdings Strategic Business Unit: Tire, TireReinforcement & Automotive Location: Kentsa Industrial Site, where there is one tire manufacturer, three reinforcement material producer factories and one co-generator plant. Focus of this site visit: Sakosa, one of the three tire reinforcement material producer plants

11. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Kentsa Serving To Tire Industry... Produces Tires JV with Bridgestone Produces Nylon Yarn and Fabric JV with Dupont Produces Steel Cord JV with Bekaert Power & Utilities Co-generator ANKARA İSTANBUL

12. Knowledge Economic Forum IV Site Visit on March 24th, 2004 What does Sakosa Produce? HMLS polyester yarn and Fabric made of this yarn to be used as reinforcement material in tires

13. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Sakosa Offices Yarn Production Fabric Production Special Treatment To Fabric Utilities

14. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Production Flow of Sakosa Yarn Production Weaving Twisting Treatment to Fabric PET Chip Fabric for Tire High Modulus Low Shrinkage (HMLS) Polyester yarn

15. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Sakosa Highlights Started production in year 2000 as a JV between KoSa (Invista) (USA) and Sabancı Holding. Became 100% Sabancı company at the end of 2001. Currently: 300 employees A revenue of 63 million Euros Exports 80% of its production Number One HMLS polyester fabric supplier in Greater Europe

16. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Strengths and Opportunities Strengths Modern technology Increasing demand to product Integrated facility Efficient, young and dynamic workforce Opportunities Joint development requests from global tire manufacturers Internationalization

17. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Customers of Sakosa Number One HMLS polyester fabric supplier in Greater Europe

18. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Innovation and Learning in Sakosa

19. Knowledge Economic Forum IV Site Visit on March 24th, 2004 New Product Development A TECHNOLOGY DRIVEN MANUFACTURING PROCESS; ELIMINATES ONE EXTRA STEP IN PRODUCTION (COST EFFECTIVENESS) IMPROVED YARN PHYSICAL PROPERTIES MORE HOMOGENITY AT BASIC PROPERTIES EXCEEDING CUSTOMER EXPECTATIONS HIGH PERFORMANCE AT CUSTOMERS MILLS HIGH VOLUME PRODUCTION CAPABILITY ACHIEVED BY; IMPROVED UP-STREAM PROCESS, INNOVATED HIGH CAPACITY POLYMER PUMPS IMPROVED YARN PATH ALIGNMENT INNOVATED TAKE-UP MECHANIZATION INNOVATED WINDER OPERATING PROGRAM A new type of yarn (characterised by thickness: 2200 dtex) is developed by Sakosa

20. Knowledge Economic Forum IV Site Visit on March 24th, 2004 New Product Development (..contd)

21. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Respect To Environment During ISO 14001 certification process, Sakosas 25 different applications has been selected as benchmark level best practices.

22. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Respect To Environment CERTIFICATION PROCESS; WITHOUT ANY NONCONFORMITY COMPLETED IN HALF OF THE AVERAGE COMPLETION TIME SAKOSAS 25 DIFFERENT AREAS HAS BEEN SELECTED AS BEST PRACTICES

23. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Respect To Environment KEY SUCCESS FACTORS; COMMITMENT AND INVOLVEMENT OF TOP MANAGEMENT PARTICIPATION OF ALL PROCESS OWNERS EFFECTIVE TEAMWORK OWNERSHIP AND ENCOURAGEMENT OF EMPLOYEES USING OF BENCHMARKING AS A LEARNING TOOL

24. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Respect To Environment SOME HIGHLIGHTS OF SAKOSAS BEST PRACTICES; DEPLOYMENT OF ENVIRONMENTAL ISSUES AS A STRATEGIC TARGET YEARLY BASSIS MANAGEMENT OF CERTIFICATION PROCESS CONTINUOUS IMPROVEMENT PROJECTS FOR SAVING THE NATURAL RESOURCES EFFECTIVE TRAINING PROGRAMS, WORKSHOPS, EXTERNAL VISIT AND REWARDING ACTIVITIES PLANNED AND SYSTEMATIC PROCESS COMPARISON AND BENCHMARKING OF ESHA SYSTEMS

25. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Company Culture In 2000, a joint study with Sabancı University had been realized to determine corporate culture, and hence to take actions so as to reach the targeted culture.

26. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Company Culture (...contd) Results of Survey:

27. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Training (2004)

28. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Aligning Company and Employee Performance

29. Knowledge Economic Forum IV Site Visit on March 24th, 2004 - End of presentation - 2 minutes for your safety...

30. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Safety During Site Visit There is a group number on the hand-outs given to you. Please follow your assigned guide. During tour; – Please stay between white lines – Wear safety glasses at all times – Put your ties into your shirt – Switch off your mobile phones – In case of losing your group, please go to meeting point (tree at the entrance of administration building)

31. Knowledge Economic Forum IV Site Visit on March 24th, 2004 You are in Group Number # Please follow your Guide for Group #. Your visit track will be as shown. During tour, please stay between white lines for your safety Please be at meeting point at 12:30 MeetingPoint Offices Yarn Production Fabric Production Special Treatment To Fabric Warehouses

32. Knowledge Economic Forum IV Site Visit on March 24th, 2004 Thank you...