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2017- 2018Sustainability

Report

Message from ChairmanMessage from CEOAbout the ReportSustainability Committee

Abdi İbrahim at a Glance

Abdi İbrahim in BriefVision and Corporate ValuesAbdi İbrahim's Sustainability JourneyDevelopments in 2017 and 2018Financial and Operational Highlights

Management Mentality

Sustainable LeadershipOrganizational StructureCompany PoliciesBusiness Ethics PrinciplesInternal Audit PracticesReputation Management Stakeholder Relations ManagementMemberships and Supported InitiativesAwards and Achievements

Financial and Operational Processes

ProductionMarketing and SalesInternational MarketsInvestmentsPurchasing and Supply Chain

Human Resources Practices

Human Resources StrategyRespect for Humanity and Participatory ManagementCareer and Personal DevelopmentInformation Sharing and Appreciation

DiversityOccupational Health and Safety Practices Human Resources Indicators

Contribution to Social Development

2017 and 2018 ProjectsPhilanthropy

Environmental Approach

Environmental PolicyEnvironmental Protection InvestmentsRecycling and Waste ManagementEnvironmental Impact Mitigation ActivitiesEnergy ConsumptionWater ConsumptionGreenhouse Gas Emissions

Product and Service Responsibility

MedicalClinical Research Product Safety (Pharmacovigilance)Licensing and Market AccessProduct Information Hotline

Global Reporting Initiative (GRI) Content Index

United Nations Global Compact (UNGC) 9th Progress Statement

Women's Empowerment Principles (WEPs) Progress Statement

United Nations Sustainable Development Goals

Masthead

CONTENTS

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106

110

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112

114

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9

13

71

81

97

23

41

57

TURKEY’S HEALING POWER

We are from Abdi İbrahim. We're the ones that make life better...

We are aware of our responsibility that we have undertaken for

a healthier society and a more livable world. Believing in the

potential of the Turkish pharmaceutical industry, which we helped

to lay the foundation for, and believing in the strength and the

future of our country, we continue our investments uninterruptedly.

Because we are a company that reveals its desire to pay its debt

to the land where it was born through investment, production,

exportation and employment. Because we are a passionate family

that pursues great goals and great ideals. We continue to carry

our journey of “healing” that started in 1912, into the future as a

rapidly rising value also in the international markets.

2017 - 2018 SU STA IN AB I L I TY R EPORT2017 - 2018 SUSTA INAB I L I TY REPORT AB D İ İ B R AH İM ABD İ İ BRAH İM 4 5

MESSAGE FROM CHAIRMAN

Dear Stakeholders, Abdi İbrahim, the foundations of which were laid in 1912 in the Küçükmustafapaşa district of Istanbul in a small pharmacy run by Pharmacist Mr. Abdi Nadir İbrahim, continues to serve mankind uninterruptedly for 107 years with endless

perseverance without losing its passion for healing. Striving hard to heal the lives it touches and the future also in its second century, our Company aims to render its success sustainable with a bold, responsible and passionate approach.

From this point of view, we conduct our corporate, social, environmental and economic activities in a systematic manner with our internal and external stakeholders, we are trying to make a difference by focusing on the right issues in a world of needs that are getting more complex every day, and accordingly we take great care to bring our development processes and the results we have achieved to the attention of our stakeholders and the public. Through our memberships in globally accepted initiatives in the field of sustainability, we closely follow international standards and constantly continue to improve ourselves in this field.

We attach importance not only to economic but also social and environmental impacts of our activities that we carry out in our country and in the markets where we operate, within the framework of our basic principle of “healing life” and in cooperation with the private sector and non-governmental organizations. I am pleased to emphasize that we are resolutely working to ensure that the results we have achieved in these three areas serve to promote welfare growth in the said markets, to render this welfare

growth sustainable, and to deliver Abdi İbrahim’s goal of becoming a “corporate citizen”. One of the initiatives guiding us in our sustainability efforts is the United Nations Global Compact (UNGC), which we have signed in 2010. We focus on incorporating the 10 global principles of the United Nations Global Compact, which constitute basis for the 17 sustainable development goals prioritized by the United Nations, into all of our business processes, strategies and operations, and we submit our “Progress Statement” for the information of our stakeholders every year. Global Reporting Initiative (GRI) is another initiative that continues to shed light on our sustainability efforts. Since 2013, we have been publishing our sustainability report on the basis of GRI criteria in two-year periods. As a company that attaches great importance to the support and employment of women, I would like to remind that on January 16, 2017, we signed the Women's Empowerment Principles, a private sector initiative of the United Nations, which aims to ensure that women can participate in economic life in all sectors and at all levels. Within Abdi İbrahim's experience of more than a century, female employees have always been an important point of strength. We must proudly state that since our founding generation, our women employees have made an important contribution to each and every breakthrough Abdi İbrahim has in its history, and Abdi İbrahim has become one of the leading organizations in achieving gender equality in the business world. Currently, the rate of female employees in Abdi İbrahim is 32 percent and the rate of female managers is 36 percent. I would like to emphasize that we are committed to increase these rates even further. As a requirement of our responsibility towards the society in which we live in and the world of which we

We are not only a pharma manufacturer, but also a big

family that has been working with passion to heal the lives

it touches as well as the future for exactly 107 years.

use the resources, we explained in detail our activities that we realized between the period of January 1, 2017 and December 31, 2018 in different fields ranging from environment to investment and from employment to social responsibility within the scope of our “4th Sustainability Report”. We are pleased to present our report, which we have prepared on the basis of the GRI Standards: Fundamental Principles, UNGC and WEPs Progress Statements and with an integrated approach, to the attention of our esteemed stakeholders. The period covering 2017 and 2018 was a period of economic difficulties experienced both in Turkey and in the world in general. The pharmaceutical sector in which we operate was also affected negatively by these developments. However, despite all the economic fluctuations, thanks to our long-term strategic plans and the rapid actions we took in face of all opportunities and threats, we continued our investments both in Turkey and abroad uninterruptedly and we also made some new investment decisions. In this challenging period, we continued to strengthen our relations with all of our stakeholders as well. We have improved and redesigned our human resources, corporate reputation, information technology, business continuity and new product processes, which are all critical to our company. We increased our capacity by developing our production technologies. We have expanded the Abdi İbrahim family day by day by creating additional employment both in Turkey and international markets. As Abdi İbrahim, we feel indebted to our country's economy, to the social life and to the world in which we live. Our biggest source of motivation is to serve the development of our sector and most importantly to pay our debt to the land where we were born and grew up. In addition to working with nearly 30 licensors, our Company also develops its own products and maintains the title of being the company with the broadest portfolio in the sector with its more than 200 brands and approximately 400 products. Abdi İbrahim, who has been the sector leader since 2002, undertakes the responsibility of healing the lives it touches in more than 60 countries ranging from European Union countries to Canada, and from North Africa to Asia with its 4,000 employees around the world. We are aware of the responsibility we bear for a healthier society and a more livable world, and we are determined to be the healing power of Turkey and to contribute to our country through production, export, R&D and innovation.

As Abdi İbrahim, we consider the development of our business as a multi-faceted responsibility. We try to make the best use of opportunities and realize important collaborations with new agreements. We have been playing a leading role in localization efforts. We make production for many foreign companies. In this context, our R&D investments continue unabated. With its investments in R&D, Abdi İbrahim's rank has increased up to the 20th place in the overall rankings of the 2017 Turkey R&D 250 Survey conducted by the Turkish Exporters Assembly, where all companies are ranked in terms of their investments in R&D; and Abdi İbrahim has maintained its 1st place in the sectoral ranking among the pharmaceutical companies. With this perspective, we say “if a Turkish pharmaceutical company will find a new molecule, it will be none other than Abdi İbrahim”, and I am happy to emphasize that we are working with all our strength, faith and determination for this goal. We will continue to carry our journey of “healing life”, which started in 1912, into the future as a rapidly rising value also in international markets. As a company that guides the pharmaceutical sector with our bold leaps, our responsibility towards our country, and our passion for our business, and as a company that always raises the bar, we will walk decisively to great goals. We will continue our unabated efforts that reflect our view in which we see our sustainability strategy not separate from our business strategy and rather as an integral part of a whole, in which all parts complement and nurture one another. As a signatory to the UN Global Compact, we will not lose our focus towards fulfilling our responsibility to contribute to the planet we live in and to the future generations. In this context, we support the 2030 Sustainable Development Goals, which were drafted with the cooperation of the United Nations and UNDP for a better future, and accepted by 193 leaders of the world in September 2015, and which were committed to and put into force with their signatures. We will continue to be a follower of these global goals and to prioritize activities that support these goals.

Yours Faithfully,Nezih BarutChairman


MESSAGE FROM CEO

Dear Stakeholders, As Abdi İbrahim, we are the leader of the Turkish pharmaceutical industry and one of the leading international players in the world with our 107 years long history. Today,

we operate with our 100 percent domestic capital, our more than 200 brands and approximately 400 products, and continue to increase our strength in international markets. As the standing leader of the Turkish pharmaceutical industry for 17 years, we are materializing very strong investments that will add value to our sector and economy and contribute to the future of our country. Despite the challenging market conditions both in Turkey and in the world, the period covering 2017 and 2018 was a period in which investment and employment were at the forefront of our company. In the last two years we have provided additional employment for about a thousand people. On the other hand, we carried out our ongoing investments as planned. We focused on areas, localization in particular, which will add value to our business and our sector. While having succeeded and the point we have reached gives us strength, we progress knowing that it is always possible to do better in the sense of becoming more sharing and inclusive. At this point, we do not limit our area of influence and benefit only to our economic activities. Rather, we take a sensitive approach that is not limited to the economic impacts of our work and which also includes its social and environmental impacts, and we determine

our success criteria taking into consideration all these three impact areas. While making our plant investments, which I will briefly explain below, we always consider

leaving “good” marks on the society and on the world we live in as a priority and we plan all our actions by taking these priorities into consideration. As Abdi İbrahim, we establish facilities that

will add strength to our country and our sector, and which are worthy of our leadership; however we focus on two important issues while establishing these facilities; environment and social responsibility. We regard the protection of the environment, the effective use of natural resources, the reduction and sorting of our wastes primarily at their source, recycling of these wastes, disposal of these wastes utilizing the most appropriate methods, as well as the allocation of time and resources to the social projects that add value to the society, as indispensable parts of our business strategy. In this context, I would like to share with you that during the period when we have continued to invest in environmental protection covering the years of 2017 and 2018, we have achieved significant savings as a result of the improvement projects we have implemented in all of our business processes. AbdiBio, the largest biotechnological pharmaceutical production facility of Turkey, which we have launched in May 2018 with an investment of 450 million Turkish Liras, our Hormone Production Facility, which started production in 2018, our Sterile Ophthalmology and Sterile Inhalation Facility, which will start production in 2019, our Sterile

Abdi İbrahim, which has been continuing this journey that began

in 1912 with its industry leadership since 2002, is a major

success story for Turkey in terms of sustainability.

We always considerleaving “good” marks on the society and on the world we live in as a priority.

Injectable and Oncology Production Facilities, which will commence operations in 2021 as well as all our other renewal and expansion works in our

production facilities come to life with our environmentally friendly approach which we uncompromisingly practice. In this period, we ceaselessly carried out our social responsibility projects in the axes of education, culture and art, public health and environment. We realized many projects that excited us such as supporting the Grandmother Project of the Ministry of Labor and Social Security of Republic of Turkey, our Using Medications with Care Campaign, HBVizyon Project that we have put into practice against the Hepatitis B disease, participation in charity projects organized by non-governmental organizations, the Umut (The Hope) Forest, which we have created by planting 5,000 saplings in Çanakkale, and the campaigns we conducted during the days of social awareness. As Abdi İbrahim, we are a company that has the habit of thinking big and pursuing big goals. Our vision for 2025 is to be among the 100 largest pharmaceutical companies in the world. Therefore, we continue to advance abroad. We started production in Kazakhstan in 2015 and in Algeria in 2017, where we have established the most modern facilities of respective regions. We expanded our international network and started exporting to more than 60 countries. We set our business goals and sustainability targets in a compatible manner, and, regarding the world as our home, we focus on providing the highest level of contribution for a better world.

There is much work to be done and many goals to be achieved. We will continue to work with all our strength, and with our love and responsibility for our country, our business, our society and our world. As Abdi İbrahim, we will continue our efforts to heal the lives we touch through practices that are sensitive to the environment and world resources, projects that will contribute to the society we live in, and the right investments and initiatives that will improve our business.

Yours Faithfully,Dr. Süha TaşpolatoğluCEO

Our vision for 2025 is to be among the 100 largest pharmaceutical companies in the world.


ABOUT THE REPORT

Focusing on sustainable success since its foundation, Abdi İbrahim pays strict attention to bringing public awareness of its works in corporate, social, environmental and economic areas conducted both within the corporation and with its external stakeholders. In this direction, the Company, which has been a member of United Nations Global Compact (UNGC) since 2010, brings the annual Progress Report to the attention of stakeholders by focusing on conducting sustainability activities within the framework of 10 global principles. Abdi İbrahim shared the UN Global Compact Ninth Progress Report with the public on December 30th, 2018.

As another indicator of its decisive steps to make its sustainability efforts more comprehensive, since 2013, Abdi İbrahim has been publishing its sustainability report, which it prepares in line with the Global Reporting Initiative (GRI) criteria, in two-year periods.

Placing great importance on the support and employment of women, Abdi İbrahim has also signed the Women's Empowerment Principles (WEPs) document on January 16th, 2017, which is a private sector initiative of United Nations aiming to strengthen women to ensure that they can take place in economic life in all sectors and at all levels.

4th Sustainability Report of Abdi İbrahim covers the period between January 1st, 2017 and December 31st, 2018, and was prepared in line with the requirements of GRI Standards: Basic Option. The report, which also includes the requirements of the United Nations Global Compact (UNGC) 9th Progress Statement and the Women Empowerment Principles (WEPs) Progress Statement, consists of qualitative and quantitative data covering

Abdi İbrahim's headquarters, production facilities and field business units. The data in the field of human resources were compiled using the System of Know-how used by Abdi İbrahim. On the other hand, meters, online measuring devices and weighing methods established within the Company were used in the creation of environmental data.

As it can be seen in the report, Abdi İbrahim maintained systematic and comprehensive projects with internal and external stakeholders in the light of the materiality and stakeholder engagement principles of GRI, UNGC and WEPs reporting requirements during the fourth sustainability reporting period. The company aims to maintain the level and scope of implementation of the sustainability reporting study in the upcoming period.

Abdi İbrahim attaches great importance to the views of its internal and external stakeholders that it sees as an integral part of its sustainability approach. Within this scope, you can contact the below-mentioned Public Affairs & Corporate Communications Directorate Team for all your contributions, suggestions, feedback and questions.

FOR INQUIRIES REGARDING THIS REPORT CONTACT

Dr. M. Oğuzcan Bülbül - Public Affairs & Corporate Communications Director [email protected]

Buket Koral - Corporate Communications [email protected]

Esra Koca - Corporate Communications [email protected]

İpek Duman Ökek - Corporate Communications [email protected]

GR I 102-46

GR I 102-45

GR I 102-50

SUSTAINABILITY COMMITTEE

The Sustainability Committee was established in 2013 in order to carry out and report Abdi İbrahim’s sustainability studies in a more systematic and regular manner. The committee conducts its works taking the stakeholders' suggestions into consideration in line with the following objectives.

MAIN TARGETS

Organize awareness-raising trainings and activities to help Abdi İbrahim employees embrace Corporate sustainability targets,

Map Abdi İbrahim’s potential productivity and resource saving and inform executive bodies of possible measures to increase capacity,

Organize various activities to raise stakeholder’s awareness of sustainability as part of corporate citizenship efforts,

Act as a support function for sustainable execution of Abdi İbrahim’s corporate social responsibility projects in the fields of public health, environment, education, culture and arts.

PRIORITY ISSUES MATRIX

Abdi İbrahim Sustainability Committee carried out the following prioritization work in consideration of the stakeholder expectations during the content creation process of 2017-2018 Sustainability Report, which was prepared in the light of GRI Standards: Basic Option of the Global Reporting Initiative. This study also guided the preparation of GRI Index included at the end of the report. The scope of the prioritization study was limited to V İbrahim and its subsidiaries.

OF

TOP

PR

IOR

ITY

FOR

TH

E S

TAK

EHO

LDER

S

OF TOP PRIORITY FOR ABDİ İBRAHİM

• Child labor• Biodiversity

• Indirect economic effects• Social development• Supply chain management• Energy and emission

management• Water management• Waste management

• Management-employee relationships• Employee satisfaction and talent

management• Occupational health and safety• Anti-competitive behavior• Market outlook• Technological investments• Equal pay for men and women• Diversity and equal opportunity

• Economic performance• Contribution to the local economy• Contribution to the employment• Investment and purchasing practices• Product quality and product safety• R&D and innovation• Compliance• Customer health and safety• Confidentiality of customer

information

• Anti-discrimination• Anti-corruption

• Continuous learning and continuous development

Med

ium

Low

Hig

h

MediumLow High

GR I 102-44

GR I 102-42

GR I 102-46

GR I 102-47

GR I 102-43

10 2017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM 2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 11

We say "if a Turkish pharmaceutical

company will find a new molecule, it will

be none other than Abdi İbrahim", and

working with all our strength.

Our journey of "healing" that started

in 1912, continue with its excitement

of the first day both in Turkey and

international markets.

ABDİ İBRAHİM IN BRIEF

VISION AND CORPORATE VALUES

ABDİ İBRAHİM'S SUSTAINABILITY JOURNEY

DEVELOPMENTS IN 2017 AND 2018

FINANCIAL AND OPERATIONAL HIGHLIGHTS

ABDİ İBRAHİM

AT A GLANCE

2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM

A B D İ İ B R A H İ M I N B R I E F

14 152017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM

ABDI IBRAHIMIN BRIEF

The foundations of Abdi İbrahim, the leading organization in the Turkish pharmaceutical industry, were laid in 1912 in the Küçükmustafapaşa district of Istanbul in a small pharmacy run by Pharmacist Mr. Abdi Nadir İbrahim. The “healing” journey, which began with medications produced here by Mr. Abdi Nadir İbrahim, continued in the laboratories in Mahmutpaşa and Çemberlitaş, then in the factory in Vefa. Since 2000, Abdi İbrahim continues its activities in its facilities in Esenyurt, which are the most modern production facilities of Turkey.

Giving life to Turkey’s first and largest accredited pharmaceutical research and development center in 2008, Abdi İbrahim is in a position of paramount importance as a brave, pioneering and innovative player in the pharmaceutical industry. Maintaining its position as a sectoral leader since 2002, Abdi İbrahim continues in its second century to be a pioneering company in the Turkish pharmaceutical industry and heal people around the world.

ABDİ İBRAHİM’S INTERNATIONAL SERVICE NETWORK GROWS FROM DAY TO DAY

Growing its service network daily by carrying its works and successes to international platforms, Abdi İbrahim has become an international licensor that sublicense in many countries, where there are companies that hold significant places in the world pharmaceutical industry today.

Abdi İbrahim has been operating in Kazakhstan, Algeria, Georgia, Azerbaijan, Iraq, Tunisia, Albania and Bosnia-Herzegovina with its own organizational structure. Having established Abdi İbrahim Global Pharm (AİGP) in Kazakhstan in 2012 and invested in the most modern factory of the pharmaceuticals industry in the country, the Company, in line with its growth strategy in international markets, has established in the same year Abdi İbrahim Otsuka (AİO), with Otsuka, the giant pharma company of Japan. Abdi İbrahim has founded Abdi İbrahim Remede Pharma (AİRP) in Algeria in 2014, and invested in the most modern factory of the pharmaceuticals industry in the country. The manufacturing facility in Kazakhstan was launched in 2015, and the manufacturing facility in Algeria was launched in 2017.

Exporting to more than 60 countries located in different continents ranging from Europe to North America and from Africa to Asia, Abdi İbrahim continues to grow in international markets. The company also makes sales under its own brand in EU countries such as Germany, England, Czech Republic, and Portugal.

THE WIDEST BRAND AND PRODUCT PORTFOLIO

Developing its own products in addition to working with around 30 licensors, Abdi İbrahim also has the most extensive product portfolio in the industry, more than 200

Aiming to sustain its innovative and pioneering line by taking strength from its

deeply rooted corporate values, Abdi İbrahim continues its bold, responsible

and passionate healing journey with its excitement of the first day.

Abdi İbrahim Esenyurt Production Complex

brands and nearly 400 products. Abdi İbrahim provides services in 13 treatment areas, such as antianemic, antibacterial/antiviral, dermatology, endocrine, metabolism, gastrointestinal, cardiovascular, NSAI and myorelaxants, ophthalmology, nervous system, respiratory system and urogenital system, as well as food supplement products, vitamins and minerals.

HIGHEST EMPLOYMENT RATE

Thanks to the Pharmacist Mr. Abdi Nadir İbrahim, who has entered the pharmaceutical industry on his own, today Abdi İbrahim has the highest employment rate among all the companies in the pharmaceutical industry with its approximately 4,000 qualified employees. The Company, which has approximately 1,000 competent and specialized factory employees, also stands out in the sector with its largest marketing and sales staff.

Abdi İbrahim attaches great importance to occupational

health and safety in its working processes and pays utmost attention to compliance with legal regulations as well as with international standards such as OHSAS 18001 in particular. The company also holds the ISO 14001 Environmental Management System certificate thanks to its environmentally friendly operation.

WORLD-CLASS BUILDINGS IN TOUCH WITH ART

With its high-tech facility which started operating in 2000 in the Esenyurt district of Istanbul, Abdi İbrahim is the leader of the century. Designed by the renowned Italian architect Dante Benini, who is regarded as a vanguard in designing industrial buildings and pharmaceutical production facilities, the facility was set up on a field of 83,000 square meters with a 100 million dollar investment. Exemplified world-wide, the facility produces high-quality medicine by using modern and environmentally friendly technologies. The facility can produce 450 million units per year.

The headquarters of the company is located in the Maslak district of Istanbul, in the Abdi İbrahim Tower. Once again designed by architect Dante Benini, the Abdi İbrahim Tower brings environmentally friendly smart technologies and artistic aesthetics together. The building hosts many statues, videos, installations and paintings by local and foreign artists.

INDUSTRY LEADER IN R&D

Sparing approximately 5% of its turnover for R&D processes every year, Abdi İbrahim founded the first and largest accredited pharmaceutical R&D Center in Turkey with an investment of 42 million dollar in 2008 with this sense. Providing service in area of 13,600 square meters in Istanbul-Esenyurt, with its technological equipment and architecture the R&D Center is a role model for all sectors, not only for the pharmaceutical industry, and it shows the importance attached to R&D processes by Abdi İbrahim in healing the future. At the Center, 150 researchers conduct innovation studies on the production of reference, generic and super-generic drugs.

THE MOST DEVELOPED TECHNO-LOGISTICS CENTER IN THE INDUSTRY

The Company incorporates the most developed Techno-Logistics Center in the industry as well. The Abdi İbrahim Techno-Logistics Center, which went into operation with an investment of 35 million dollar in 2010, covers an indoor area of 22,600 square meters. At the Center, all processes including material flows are computer controlled, and compared to the manual warehouses more materials can be stored in more compact areas.

Abri İbrahim spares approximately 5% of its turnover for R&Dprocesses every year.

ABDI IBRAHIM'S SUSTAINABILITY JOURNEY

1912

The first pharmacy was established in Istanbul’s Küçükmustafapaşa neighborhood by the Pharmacist Abdi Nadir İbrahim Bey.

1916

The pharmacy launched the production of proprietary medicines: Power Syrup, Abdi İbrahim Purgative Candy, Bromo-Valerin Nadir

1919

The first pharmaceutical factory was established. The Company launched the first ready-made drug production.

1939

The second generation took over the management of the Company; the tenure of Pharmacist İbrahim Hayri Barut commenced.

1952

The laboratories were moved to their new location in Vefa district of Istanbul.

1975

The Company was renamed “Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş.”

1981

The third generation took over management of the Company the tenure of Pharmacist Nezih Barut commenced.

1994

The Company broke ground at its new production facilities in Istanbul’s Esenyurt district.

2000

The Company’s production facilities utilizing cGMP (current Good Manufacturing Practices) standards commenced operations in Esenyurt.

2002

Abdi İbrahim became the sector leader in unit sales.

2003

Abdi İbrahim became the sector leader in terms of turnover and unit sales.

Construction of the R&D Center began.

2007

The Company became the first Turkish enterprise to rank among “The World’s Top 100 Pharmaceutical Companies”.

Abdi İbrahim Primary School opened its doors.

Abdi İbrahim Tower commenced operations.

2008

The Company’s R&D Center became the first to be accredited by the Ministry of Science, Industry and Technology.

The corporate identity was renewed.



More than 100 years of healing

story full of success

VISIONWe, as the leading Turkish pharmaceutical company, work passionately to heal the lives we touch, to be a strong international brand with innovative products and services; brave and pioneering initiatives.

CORPORATE VALUES

WE ARE COURAGEOUS

Because we walk to the future to discover the better one and do the undone.

WE ARE PASSIONATE

Because we are aware that healing the lives is possible by producing good works with passionate people.

WE ARE ACCOUNTABLE

Because we are aware that each of us affects everyone, and we know our responsibility that we carry for a healthier society, a more livable world.

2010

Abdi İbrahim Techno - Logistics Center started operations in Istanbul’s Esenyurt district.

Abdi Farma was founded in Portugal.

2011

1st Progress Report was issued upon signing the UN Global Compact.

2012

Abdi İbrahim celebrated its 100th anniversary.

The Company acquired a 60% stake in Global Pharm, one of the largest companies in Kazakhstan and founded Abdi İbrahim Global Pharm (AİGP).

Abdi İbrahim and Japanese company Otsuka Pharmaceuticals established Abdi İbrahim Otsuka (AİO) with a 50 percent partnership structure in Turkey.

2014

Abdi İbrahim Remede Pharma (AİRP) was founded in Algeria. The most modern factory investment in the country was started.

2015

The ground-breaking ceremony of the Biotechnological Pharmaceuticals Production Facility AbdiBio was held.

The healing project of Sultan Bayezid II Health Museum Complex in Edirne was carried out.

Abdi İbrahim Global Pharm, the first modern production facility in Kazakhstan, was constructed and went into operation.

AB D İ İ B R AH İM 17 2017 - 2018 SU STA IN AB I L I TY R EPORT


18

DEVELOPMENTS IN 2017 AND 2018

Despite all the fluctuations both in Turkey and in

the world general, continued its investments both

in Turkey and abroad uninterruptedly.

2017

Abdi İbrahim Remede Pharma, the most modern production facility in Algeria, started production.

Construction of Sterile Ophthalmology and Sterile Inhalation Production Facility along with the construction of Hormone Production Facility started.

Abdi İbrahim R&D Center ranked 20th among all companies and 1st among pharmaceutical companies in terms of its resources it has allocated to R&D.

Abdi İbrahim received the “Global 100 Pharmaceutical Sector Leader” award.

Abdi İbrahim ranked first in the “The Companies in the Pharmaceutical Industry, where the Employees would like to work the most” category in Ideal Employer Survey.

In the Corporate Social Responsibility Survey of Capital Magazine, Abdi İbrahim ranked 10th under the “In the Public Eye” category and 5th under the “Health” category, within the scope of the Corporate Social Responsibility Survey of Capital Magazine that listed the top 20 most successful companies in CSR in 2017.

Within the framework of the support given to the “Grandmother Project” initiated by the Ministry of Labor and Social Security of Republic of Turkey in order to support women's employment, Abdi İbrahim has undertaken the aid to be provided to 500 families.

Within the scope of the “Using Medications with Care Campaign” launched in 2012 on unconscious use of medications, the second research was conducted in 2017 and the results were shared with the public and awareness activities continued.

2017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM 2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 19

2018

Biotechnological Pharmaceuticals Production Facility AbdiBio was launched.

Construction of Sterile Injectable and Oncology Production Facility has started.

Special Products Production Area, Additional Production Service Building, Division for Products with High Potent Content, and Additional Production Area for Liquid and Semi-Solid Products were commissioned within the scope of Abdi İbrahim Production Facilities.

Abdi İbrahim's first biosimilar product in Turkey was licensed.

ISO 13485:2016 certificate was acquired for the wound care dressing that has been developed.

Abdi İbrahim received the “Leadership in Human Value” award, the grand prize of the competition, in the 10th Human Value Awards.

AbdiBio won the “Biotechnology Investment” award at the 9th Golden Mortar Awards.

With its "Rational Medicine Usage Campaign", Abdi İbrahim won an award in the “Pharmaceutical Industry Awards of the Year - Social Responsibility Project of the Year” category at the Doktorclub Awards.

In line with a project it has undertaken within the context of one of its products, Abdi İbrahim has created the Umut (The Hope) Forest by planting 5.000 saplings in the name of physicians in the forest land determined in the Çanakkale-Lapseki region.




Total Exports

(Million USD)

157

171

177

193

Total Number of

Products*

356

359

397

397

Total Turnover

(Million USD)

57 76

74,8

9

91,3

7

Total Number of

Brands*

180

179

197

201

Domestic Market Share*

(USD, %)

6.2

6.4

6.4

6.6

2,59

2

3,10

1

3,88

3

3,92

4

Total Sales*

(Million Units)

523

608

552,

54

571,

61

10,5

55,3

2

62,9

3

Total Investments**

(Million USD)

53,2

6

2015 2016 2017 2018

FINANCIAL AND OPERATIONAL HIGHLIGHTS

* May 2019 IQVIA Retail Dataview data** Including overseas and subsidiaries

Total Number of Employees**

(subsidiaries included)

Abdi İbrahim continued its successful performance

in 2017 and 2018 as well, increasing its domestic

market share and export volume.

Taxes and Other Legal

Obligations (k TL)

191.

226

187.

081

136.

660

150.

674

Stamp Duty

(k TL)

381

632

425

1.63

7

Income Tax

(k TL)

68.0

47

83.0

24

93.5

40

105.

862

Real Estate Taxi

(k TL)

773

787

823

955

Corporate Tax

(k TL)

37.6

09

25.0

44

20.5

57

16.2

52

Advertisement and

Announcement Duty

(k TL)

32 44 38 32

Social Security Premiums

(k TL)

45.8

88

54.6

26

68.8

20

94.5

10

Value Added Tax

(k TL)

38.4

96

22.9

23

22.1

38

26.9

23

2015 2016 2017 2018

Focusing on its 2020 and 2025 strategies in

its journey of “Healing life and future”,

Abdi İbrahim aims to sustain its innovative

and pioneering stand by taking strength

from its deep-rooted corporate values.

MANAGEMENT

MENTALITY

SUSTAINABLE LEADERSHIP

ORGANIZATIONAL STRUCTURE

COMPANY POLICIES

BUSINESS ETHICS PRINCIPLES

INTERNAL AUDIT PRINCIPLES

REPUTATION MANAGEMENT

STAKEHOLDER RELATIONS MANAGEMENT

MEMBERSHIP AND SUPPORTED INITIATIVES

AWARDS AND ACHIEVEMENTS

2017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM

M A N A G E M E N T M E N T A L I T Y

24

To protect the reputation of strong brand

To develop new products

To invest with an innovative approach

To sustain the leadership in the Turkish pharmaceutical industry

TARGET

To expand in international markets

KEY PERFORMANCE INDICATORS ( KP I )

Number of products, the development of which have been completed in

2017 and 2018, and which have been forwarded to the regulatory affairs for

the purpose of licensure

In 2018,

A B D İ İ B R A H İ M ' S

F I R S T B I O S I M I L A R P R O D U C T

I N T U R K E Y

was licensed.

I S O 1 3 4 8 5 : 2 0 1 6

certificate was acquired for the wound care dressing that has

been developed.

In 2017, the foundations of the Sterile Ophthalmology and Sterile Inhalation Production Facility, and

of the Hormone Production Facility were laid.

In 2018,

A B D İ B I O , T U R K E Y ' S L A R G E S T

B I O T E C H N O L O G I C A L P R O D U C T I O N

FA C I L I T Y, was inaugurated.

In 2018, the foundations of the Sterile Injectable and Oncology Production Facility were laid.

A strategic partnership agreement has been signed with Alvotech within

the framework of production and marketing biotechnological products

in Turkey.

Increase rate of net sales in international markets in 2018 compared to 2016

19 %

Achievement of an above average score compared to the sectoral average in the general reputation index of the Corporate

Image and Reputation Survey that was concluded in 2016

88

71

countries as of the end of 2018

Exportation to more than

60

ACTUAL

Market Share (2017) (USD %)

6.4Market Share (2018) (USD %)

6.6




SUSTAINABLE LEADERSHIP

Founded in 1912 by Mr. Abdi Nadir İbrahim, Abdi İbrahim San. Tic. A.Ş. is currently chaired by the Pharmacist Mr. Nezih Barut as the Chairman of the Board of Directors, who represents the third generation of the family. v İbrahim is a family-owned company with a 100 percent domestic capital, which has managed to institutionalize with a 50 percent partnership structure comprising equal shares of Barut and Esirtgen families.

ABDİ İBRAHİM BOARD OF DIRECTORS

Pharmacist Nezih BarutNesrin Barut EsirtgenAhmet Kamil EsirtgenAhmet Cenan Esirtgenİbrahim BarutErman Atasoy

SUSTAINABILITY STRATEGY

Abdi İbrahim has a sustainability approach in which social and environmental issues are also included in the business processes in addition to the economic growth, and the company interests do not conflict with social interests. Looking back on the Company's history, it is clear that Abdi İbrahim has observed its sustainability approach in all of its activities and has offered models that can also meet the needs of future generations.

Abdi İbrahim attaches equal importance not only to the financial results of its activities but also to the social and environmental impacts and results of its activities in the markets in which it operates within the framework of its basic principle of “healing life”. Within the framework of its “tripartite responsibility” approach, Abdi İbrahim is

committed to delivering the financial, environmental and social results of its activities in the markets in which it operates, to the objective of promoting the welfare growth and rendering this welfare growth sustainable, and to achieving its goal of “becoming a corporate citizen”, which refers to taking responsibility for social and environmental issues, and acting in accordance with the applicable national and international regulations in these areas and with the ethical principles.

Attaching great importance to its innovative management approach in order to render its pioneer position sustainable in the sector, Abdi İbrahim continues its investments uninterruptedly both in Turkey and abroad thanks to its long-term strategic plans and the rapid actions taken in face of all opportunities and threats.

Having renewed its vision in 2014 through its materialization of the “POWER-Aİ Strategy Vision Project”, Abdi İbrahim continues to make significant progress in five main growth areas of focus, which are “existing products, new products, international markets, production services, purchasing and new partnerships”. Having started to work on its 2025 strategy in order to sustain its 2020 strategy and its goal of “Becoming one of the world's 100 largest pharmaceutical companies”, the Company will focus on the growth areas of “Turkish market, international markets, investment areas (biotechnology and consumer health) and production services” in the coming period.

TOP 10 PROJECTS

In line with Abdi İbrahim's POWER-Aİ strategy, 10 projects were prioritized under the title of TOP 10 Projects in 2014 and the related works were initiated. The goals set in some

Having created an important success story for Turkey in terms of sustainability,

Abdi İbrahim continues its success story that it has started in 1912, as the

sectoral leader in Turkey since 2002 and as one of the key global players.

of these projects have been achieved and they have been transformed into processes. As a result of the strategic assessments conducted in 2018, these projects have been excluded from the scope of the TOP 10 Projects. New projects were determined by taking into consideration the Company's 2025 strategy priorities. The current status of the TOP 10 Projects is as follows:

PROJECTS THAT ARE TRANSFORMED INTO PROCESS AND

THUS ARE EXCLUDED

From Idea to ProductProjects Developed Jointly with the StateManaging the Strategy Implementation Process

ONGOING PROJECTS

Abdi İbrahim Corporate Image and Reputation ProjectAbdiBio Project (Investment and Portfolio)Digitalization and Innovation Program Corporate Memory and Know-How ProjectCorporate Risk and Business Continuity Management Project

COMBINED PROJECTS

“Creating an Environment and Climate for Working with Passion” project and “Talent Management” project

NEW PROJECTS

Pipeline Application Process Map ProjectSterile Ophthalmology and Inhalation ProjectNew Production Complex Strategy ProjectAİM (Abdi İbrahim International Markets) Project

2020 AND 2025 STRATEGIC TARGETS

To be one of the 100 biggest pharma companies of the world.To be among the first 10 companies you think of outside the pharma industry.To be the first domestic company you think of in biotechnology field in Turkey.To raise the international brand perception.To be among the top 3 pharma companies that provide manufacturing service in the industry.

To be one of the first 3 companies you think of regarding social responsibility in pharma industry.To be one of the top 3 companies in the industry in which students are most eager to work.

ECONOMIC TARGETS

Being the industry leader in terms of turnover and unit sales in Turkey since 2002, Abdi İbrahim has gradually increased its effectiveness in international markets and increased the number of its export countries to more than 60 countries. Having been enriching its product portfolio regularly in order to render its said success sustainable, the Company continues its R&D investments unabated.

Having been planning to continue its growth in Turkey, where it is well-established, and in focus markets with different strategies, in line with its 2025 strategy works, Abdi İbrahim aims to strengthen its global presence with its subsidiaries that have a joint-partnership structure in international markets and through strategies based on existing and target markets.

Abdi İbrahim, which aims to grow by investing in the fields of biotechnology and consumer health that provide high added value, in line with its 2025 strategy, will focus on the leadership of Turkey market in the field of consumer health and on the globalization of its brands. Production services, which is one of the major success areas of the 2020 strategy, will be an important part of Abdi İbrahim's goals in the 2025 strategy concerning the Turkish market and international markets.

CORPORATE TARGETS

The “Power-Aİ Strategy Vision Project” has taken its place among other business processes as the Strategy Management Process, which is managed by internal resources within the Strategy and Business Development Directorate. The Company is taking firm steps forward to its targets of increasing its international sales volume and growing in domestic market, by adding new competencies in terms of both facilities and organizational capacity. Abdi İbrahim, which maintained its leadership in the domestic market by increasing its market share that was 6.4 in 2017 to 6.6 in 2018, also increased its revenue from target countries in international markets in 2018 by 19% compared to 2014, and by 76% compared to 2015.



28

Abdi İbrahim periodically reviews and gauges its annual targets with the participation of all its management staff in order to render its corporate structure, which is identified with its deep-rooted, respected and innovative qualities, sustainable. The results obtained reveal that Abdi İbrahim is rapidly moving towards its goal of becoming one of the world's 100 largest pharmaceutical companies.

ENVIRONMENTAL AND SOCIAL TARGETS

Abdi İbrahim also introduces reference practices in the social and environmental areas thanks to its corporate structure built on solid economic foundations. Considering the impact on the environment in all of its production processes, the Company conducts its business organization in the production and administrative functions with the principle of “respect to the environment”. The Company uses effective management of natural resource consumption in line with its strategy for the effective use of resources and aims to minimize its environmental impact, including mainly its carbon emissions, by integrating recent technological developments into production and administrative infrastructure in an efficient manner.

As one of the most deep-rooted private sector organizations in Turkey, Abdi İbrahim delivers corporate social responsibility activities highly appreciated by the public in the areas of social health, education, culture & art, and environment, and plans to conduct “long-term” and “result-oriented” projects in these areas in line with the social needs during the future period.

ORGANIZATIONAL STRUCTURE

2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 29

Holding Investments

Vice President

Member of the Board & Executive

Committee

Board Member of Holding and

Subsidiares

CFO

Turkey Marketing and Sales General Manager-Rx1

Turkey Marketing and Sales General Manager-Rx2

Technical Operations Vice President

Abdimed Managing Director

Chief Human Resources Officer

R&D Director

Legal Affairs Director

Quality Operations Director

Public Affairs & Corporate Communications Director

Abdi İbrahim Otsuka Managing Director

Regulatory Affairs & Market Access Director

Strategy and Business Development DirectorAIGP Managing Director

International Markets Vice President

Holding Finance Coordinator

Internal Audit Director

CHAIRMAN

CEOFinance Director

Information Systems and Technologies Director

Purchasing and Supply Management

Azerbaijan Country ManagerBosnia-Herzegovina Country ManagerGeorgia Country Manager

Multiple Treatments Business Unit Director Dermatology Business Unit Director

Hepatology & Kratos Business Unit Director Marketing and Sales Excellence Director

Primary Care Business Unit Director Commercial Operations Director

Medical DirectorCentral Nervous System Business Unit Director

Ophthalmology Business Unit DirectorSpeciality Care and Oncology Business Unit Director

Respiratory Business Unit Director

Chemical Products Production Plant and Investments Director

Logistics Services and Production Planning Director

AIGP CFO AIGP Plant Director




COMPANY POLICIES

QUALITY POLICY

Determined to provide the highest level of safety in its service for human health, Abdi İbrahim ensures full compliance with local and international standards and GMP requirements in its pharmaceuticals production processes and other functions. The company constantly improves its work in this field through internal/external audits and trainings, establishing and developing a quality system to be embraced and upheld by its employees.

ENVIRONMENTAL POLICY

For all the operations of Abdi İbrahim Pharmaceuticals, environmental protection, continuous improvement, efficient use of natural resources, full compliance with legislation, prevention of pollution as well as reduction, separation, recycling and elimination of waste generated through its activities, preferably at the source, form the foundations of the company’s environmental policy. Abdi İbrahim holds all necessary legal permits, as well as the ISO 14001 Environmental Management System certification.

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM

For Abdi İbrahim, ensuring full compliance with legal and international regulations and customer requirements, and establishment of a safe working environment for its employees at all facilities represent the core of the company’s Occupational Health and Safety Policy. Abdi İbrahim holds all necessary legal permits, as well as the OHSAS 18001 Occupational Health and Safety Management System certification.

INFORMATION SECURITY POLICY

Abdi İbrahim is aware that one of the most important conditions for its reputation in the industry and its service continuity is to protect information in a timely, accurate, best and appropriate manner. The main responsibilities of the Company in respect of the protection of information assets are as follows:

Defining information assets belonging to our organization

Protecting the information of our personnel and of all our stakeholders

Ensuring the confidentiality, integrity and accessibility of information assets

Only using information assets for purposes determined by the management

Upholding the organization’s security policies and rules

Ensuring that information security standards and processes are updated

Keeping up-to-date employee awareness on information security through regular training

Conducting regular reviews of internal and external risks concerning information security, and taking necessary measures as revealed through risk analyses.

Abdi İbrahim attaches great importance to corporate policies in sustainable

success and continues its works in line with national and international standards.

All company employees act in accordance with the requirements of these policies.

BUSINESS ETHICS PRINCIPLES

Abdi İbrahim, acting with the knowledge since 1912 that human health is the most basic and top-priority responsibility, believes in the importance of working in a complete, correct and honest manner and always puts its standards at the highest level in this direction. The Company, which would like to carry the trust and respect of its stakeholders to the future with this approach, prepared the Business Ethics Principles by publishing the codes of conduct which it attaches the utmost importance, and shared them with its employees on December 30th, 2015 and with all the external stakeholders (suppliers, licensors, doctors and pharmacists) on February 10th, 2016.

Shaping all its business processes by taking into account its responsibilities

towards the medicine and human health, Abdi İbrahim acts in accordance with

the ethical rules included in its Business Ethics Principles.




INTERNAL AUDIT PRACTICES

The Internal Audit Department has been operating under the umbrella of Abdi İbrahim since 2006 and is focused on adding value to the Company’s risk management, control and corporate governance processes through a risk-centered approach. The Audit Committee Regulation and Internal Audit Regulation, defining the working principles of the department, came into force in March, 2013, following the approval of the Board of Directors.

A TRANSPARENT, ACCOUNTABLE, ETHICAL BUSINESS APPROACH

Abdi İbrahim acts within the boundaries of national and international laws during the decision-making processes and practices in the light of the corporate culture that has been created as a result of centuries-old experience. The Internal Audit Directorate, which operates independently and in an unbiased way within the Company, monitors the effectiveness, efficiency, compliance with the legal legislations and compliance with all the policies, regulations

and procedures of the Company’s activities and reports them to the Board of Directors periodically.

Abdi İbrahim, which considers legal regulations as well as social norms and Abdi İbrahim Business Ethics Principles in all business processes, also acts meticulously in fighting against corruption. Based on accountability, transparency criteria and ethical values in fighting against the possible corruption cases during the business processes inside and outside the company, the Company avoids all kinds of financial dependency in business relationships, and fully and properly informs the institutions and the public that it cooperates with regards to the financial and operational data.

Abdi İbrahim, which has a high reputation in the eye of the public thanks to its deep-rooted corporate culture, did not encounter any corruption or bribery case during the reporting period.

Abdi İbrahim is regularly audited by the Internal Audit Directorate,

which operates independently and in an unbiased way.

REPUTATION MANAGEMENT

In order to maintain its reputation and corporate culture based on one hundred years of know-how and expertise, Abdi İbrahim conducts all its operations in line with its vision and corporate values. Abdi İbrahim’s painstaking efforts in the area of product responsibility and high product quality has been the key factor for its strong reputation in the eyes of the general public. As indicated in the Company’s Business Ethics Principles, all R&D activities and clinical research geared towards product development are carried out in compliance with domestic legislation as well as international regulations.

Abdi İbrahim, which has achieved high reputation results in many surveys conducted so far thanks to its approach and to the determinant works it has carried out in the field of reputation management, was selected as the most respected company in the pharmaceutical industry according to the results of the Turkish Reputation Index (TIE) Survey conducted by the İtibar Atölyesi (Reputation Workshop) announced in September 2015. On the other hand, according to the results of the Corporate Image and Reputation Survey that was concluded in May 2016, Abdi İbrahim has scored 88 points in the overall reputation index of pharmaceutical companies, which is above the sectoral average. Abdi İbrahim is going to repeat the Corporate Perception and Reputation Survey in 2019 as well.

Abdi İbrahim consistently strengthens its brand recognition and

reputation in the public eye.




STAKEHOLDER RELATIONS MANAGEMENT

Abdi İbrahim, which has adopted the principle of proactively communicating with all of its stakeholders ranging from the employees to the end users, from the non-governmental organizations to the licensors, and from the doctors to the pharmacists, manages all of its communication processes in an effective manner. Having been communicating regularly with its stakeholders through various communication channels and obtaining their expectations and priorities as a result, the Company has confirmed as a result of the reviews and assessments it has conducted that the stakeholder expectations are in line with the issues that it has given priority.

ABDİ İBRAHİM STAKEHOLDER MAP

ABDİ İBRAHİM EMPLOYEES

Intranet, tablet communication platform, internal magazine, e-bulletin, e-training, medical information exchange meetings, end-season and year-end meetings, social clubs, sports activities, volunteer activities, employee loyalty survey, suggestion system, development program, performance interviews, face-to-face interviews

ASSOCIATIONS/NGOS

Project partnerships, memberships, participation in meetings

PHARMACEUTICAL WAREHOUSES

Visits, phone calls, corporate reputation and perception surveys

PHARMACIES

Medical representative visits, letters to pharmacists, phone calls, corporate reputation and perception survey, dialogue hotline, corporate website

PHYSICIANS

Visits by medical product representatives, scientific meetings, congresses/conferences, panel discussions, letters to MDs, corporate reputation and perception surveys, market research, clinical trials, dialogue hotline, corporate website

RELEVANT PUBLIC AUTHORITIES AND

GOVERNMENTAL AGENCIES

Visits to relevant department officers, visits to head offices, membership, participation in meetings

PRESS MEMBERS

Press conferences, press releases, interviews, exclusive news stories, corporate reputation and perception survey

SUPPLIERS

Visits to and audits of suppliers, assessment system, phone calls

SOCIETY

Social contribution efforts, corporate social responsibility projects, career days, corporate reputation and perception survey, corporate website, social media communication channels

PATIENTS AND RELATIVES OF PATIENTS

Awareness and consciousness-raising projects

Abdi İbrahim regularly communicates with all of its internal and external

stakeholders and takes into account the feedback it receives as a result of

these communications in its business processes and sustainability objectives.

GR I 102-40

MEMBERSHIPS AND SUPPORTED INITIATIVES

Foreign Economic Relations Board of Turkey

The Union of Chambers and Commodity Exchanges of Turkey

GS1 Organization for a Global Commercial Language

Pharmaceutical Industry Employers Union

General Secretariat of the Istanbul Exports Association

Turkish Exporters Assembly

Istanbul Association of Chemical Materials and Exporters

Istanbul Association of Mining and Metal Exporters General Secretariat

Istanbul Chamber of Industry

Istanbul Commerce Exchange

Istanbul Chamber of Commerce

Turkish Association of Human Management

Turkish Industry and Business Association

Turkish Platform for Training and Development

Corporate Governance Association of Turkey

Food Supplement and Nutrition Association

Association of Public Communication and Corporate Relations Management

Business Council for Sustainable Development Turkey

Ethics and Reputation Society

ISPE, The International Society for Pharmaceutical Engineering

Foundation for Environmental Protection and Recycling of Packaging Waste

Association for the Protection of Intellectual Property

UN Global Compact (UNGC)

Global Reporting Initiative (GRI)

Women’s Empowerment Principles (WEPs)

Corporate Communicators Association

Abdi İbrahim, which believes in the importance and power of non-governmental organizations, is

actively involved in platforms such as trade unions, chambers and

associations that operate in different fields.


36

2017

ABDİ İBRAHİM WAS

SELECTED AS ONE OF

THE TOP COMPANIES OF

TURKEY YET AGAIN

Having been continuing its leadership in the pharmaceutical sector since 2002, Abdi İbrahim succeeded once again to have been ranked at the top ranks of the lists announced in 2017, where the top companies of Turkey were determined by the Istanbul Chamber of Industry (İSO) and the Turkish Exporters

Assembly (TİM). Having been ranked at the 125th spot in the Top 500 Industrial Enterprises (2016) list determined by the Istanbul Chamber of Industry (İSO), Abdi İbrahim continued its leadership in the sector. Abi İbrahim was ranked at the 491st spot in the Top 1000 Exporters Survey (2016) list determined by the Turkish Exporters Assembly (TİM), which is the umbrella organization of Turkish exportation, corresponding to an increase of 202 spots compared to the previous year’s survey results.

ABDİ İBRAHİM RECEIVED THE GLOBAL 100 PHARMACEUTICAL

SECTOR LEADER AWARD

Abdi İbrahim received the Global 100 Pharmaceutical Sector Leader award as a result of the survey conducted by Platin magazine in cooperation with Ipsos ranking the first

100 companies in international trade that have contributed the most to Turkey. The award was presented to Abdi İbrahim Chairman Mr. Nezih Barut at the ceremony held on February 24th.

ROHA ARZNEIMITTEL PRESENTED AN AWARD TO

MR. NEZİH BARUT

Abdi İbrahim Chairman Mr. Nezih Barut and the CEO Mr. Süha Taşpolatoğlu visited Roha Arzneimittel, one of the licensors of Abdi İbrahim, in Germany. After the meeting, Johannes Berghöfer, Director of Roha Arzneimittel, presented the Premium Partner 2016 Award to Mr. Nezih Barut to celebrate the anniversary of their cooperation.

MUSTAFA DARMAN WAS SELECTED AS ONE OF THE 50 MOST

POWERFUL CFOS IN TURKEY

Abdi İbrahim Executive Vice President of Finance Mr. Mustafa Darman was selected as one of the “50 Most Powerful CFOs of Turkey” in the survey, in which the first 1,000 largest companies of Turkey have been reviewed and which was conducted within the scope of the CFO 2017 Summit, and received and award.

YOUTH SELECTED ABDİ

İBRAHİM AS THE

“MOST IDEAL EMPLOYER”

Abdi İbrahim was selected as the first company among the Companies in the Pharmaceutical Industry, where the Employees would

like to work the most, in the 2017 Ideal Employer Survey conducted by Universum in Turkey. Conducting surveys on ideal employer perception with the participation of 1.5 million university students, new graduates and young

AWARDS AND ACHIEVEMENTS

Having been continuing to crown its achievements with the awards it has

received, Abdi İbrahim was awarded with many awards in 2017 and 2018 both

in Turkey and abroad for its innovative applications and projects.

2017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM 2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 37

professionals in 60 countries, Universum conducted its 2017 survey with the participation of 44,260 people with an average age of 22, consisting of students of enrolled in science, health, medicine, literature, social, economic and administrative sciences, engineering and information technologies departments of 39 leading universities of Turkey. In this important survey, Abdi İbrahim was chosen by the students of medicine and health sciences as Turkey’s most desirable employer in the pharmaceutical sector. On the other hand, Abdi İbrahim was ranked as the fourth in the Medical/Health Sciences category among all sectors.

ABDİ İBRAHİM WAS CHOSEN AS THE 10TH MOST SUCCESSFUL

COMPANY IN CORPORATE SOCIAL RESPONSIBILITY

Abdi İbrahim regards the corporate social responsibility activities as an integral part of its core business, as a result of which it was ranked 10th under the “In the Public Eye” category and 5th under the “Health” category, within the scope of the Corporate Social Responsibility Survey of Capital Magazine that listed the top 20 most successful companies in CSR in 2017.

AİGP WON ISKER SPECIAL

AWARD

Abdi İbrahim Global Pharm (AİGP) received the ISKER special award given to enterprises and entrepreneurs aiming at continuous quality and

development in their products and services in Kazakhstan and aiming at achieving sustainable success in their activities with innovative products.

“DO NOT IGNORE” EXHIBITION CONTINUES

TO RECEIVE NUMEROUS AWARDS!

Do Not Ignore - Exhibition of the Adventure of Schizophrenia from Prehistory to Present organized by Abdi İbrahim Otsuka (AİO), which has realized many resounding projects, has continued to add new prizes to the awards it has already won, in 2017. Do Not Ignore Exhibition, which was launched with the aim of increasing awareness of schizophrenia and contributing to the integration of

schizophrenia patients into the society so that they turn into individuals who can live independently in the community, was awarded the finalist certificate at the Global Awards 2016, where thousands of projects from all over the world competed. The project was also given an award by the global authorities within the scope of the “Educational Awareness” category.

The exhibition was awarded the third place in the Special Projects category at the Direct Marketing Awards organized by the Association of Direct Marketing Communicators in Turkey, and received three awards all at once, one silver and two bronze medals at the Stevie International Business Awards, which is one of the world's most prestigious business awards. The exhibition has won the Silver Stevie Award in the category of Social Responsibility Project of the Year in Europe, PR Campaign of the Year-Bronze Stevie Award in the in the category of Media Relations, and the PR Campaign of the Year-Bronze Stevie Award in the category of Health Sector.

“CEREN'S STORY” WON THE SOCIAL

RESPONSIBILITY COMMUNICATION AWARD

“Ceren's Story” project, where Abdi İbrahim drew attention to psoriasis, won the Bronze Award in the Social Responsibility Communication category in the Social Media Awards Turkey, the first and only competition that measures the social media performances of brands and agencies on the basis of objective data and which is organized in cooperation with BoomSonar and Marketing Turkey.

YOUPLUS PRODUCTS AWARDED OUTSTANDING TASTE AWARD

The two products of Abdi İbrahim's YouPlus brand were awarded the Outstanding Taste Award by The International Taste & Quality Institute (iTQi), which consists of independent chefs and sommeliers, and which operates in more than 120 countries around the world.

YouPlus Kids Omega-3 Fish Oil, one of the YouPlus Kids products developed within Abdi İbrahim R&D, received 85 points and was awarded with the 2 gold star Outstanding Taste Award, whereas YouPlus Kids Multivitamin Vitamin and Mineral Complex received 72.5 points and was awarded with the 1 gold star Outstanding Taste Award. Abdi İbrahim's awards were presented to Erhan Koç and Enis



38

Demir from the R&D Formulation team, at the Outstanding Taste Award Ceremony organized by The International Taste & Quality Institute (iTQi) in Brussels on June, 14th.

“DON’T FORGET ME, EVEN IF I FORGET YOU” PROJECT RECEIVED

ACHIEVEMENT AWARD

The “Don’t forget me, even if I forget you” project which was specially prepared in cooperation with Abdi İbrahim and Alzheimer's Association for September 21st World Alzheimer's Day to raise awareness about Alzheimer's disease, was awarded Wom Achievement Award within the scope of Mediacat Felis Awards.

Abdi İbrahim established a chorus that consists of patients and their relatives to utilize the positive impression that the old songs left on memory with the purpose of drawing attention to Alzheimer's disease. In the September 21st

World Alzheimer's Day, the choir sang Esmeray's famous song entitled “Do not be able to forget me” and a message was sent to the community using the healing power of music.

ABDİ İBRAHİM RECEIVED THE SUPPLY CHAIN OF THE YEAR

AWARD WITH ITS SAP DEMAND PLANNING PROJECT

Abdi İbrahim received the Supply Chain of the Year Award at SAP Forum 2017 with its SAP Demand Planning Project. The award received for the said project, where all sales forecasts are collected over the system and the demands can be calculated per warehouse branch, was presented to the project team at a ceremony held on October, 12th.

ROTA PROJECT RECEIVED AN AWARD AT THE CIO SUMMIT

The ROTA project, which was put into practice by Abdi İbrahim with the “From data to report, from report to strategy, from strategy to success” motto, won the third place in the Change Management category of the Projects of the Year Awards within the scope of the IDC CIO Summit 2017 held in Antalya.

2018

ABDİ İBRAHİM WAS SELECTED AS ONE OF THE INDUSTRIAL

GIANTS OF TURKEY YET AGAIN

Abdi İbrahim achieved to be at the top of the 2017 lists once again, where the largest companies of Turkey have

been determined by the Istanbul Chamber of Industry (İSO) and the Turkish Exporters Assembly (TİM). Leaving its rivals behind, Abdi İbrahim ranked 134th in the İSO's “500 Largest Industrial Enterprises of Turkey” list announced in 2018, and 597th in TİM's “Top 1000 Exporter Companies of 2017” survey.

ABDİ İBRAHİM WON THE “GRAND PRIZE”

Abdi İbrahim received the “Leadership in Human Value” award, the grand prize of the competition, in the 10th Human Value Awards organized by the Turkish Human Management Association (PERYÖN). The award was presented to Abdi İbrahim Human Resources team at the ceremony held on May, 3rd.

All candidate companies underwent a rigorous audit by an independent audit firm for the PERYÖN Human Value Awards, which are given in order to introduce the innovative and creative practices in the field of

human resources management, to inform the sector about the exemplary works, to encourage and support the “learning process from each other”, and they were subsequently evaluated by a jury of expert members. After this meticulous process, Abdi İbrahim won the “Leadership in Human Value” award given to the most successful companies in terms of leadership, management, motivation and performance works.

HAKAN ONEL WAS SELECTED AS ONE OF THE 50 MOST

EFFECTIVE HR MANAGERS

Hakan Onel, Executive Vice President of Human Resources at Abdi İbrahim, was selected as one of the 50 Most Effective Human Resources Managers in the survey conducted within the scope of CHRO Summit 2018, where more than 1,000 leading companies in the country were reviewed. The award, which was given to Onel due to his effective management of human resources and his adoption of unique human resources practices, was presented to him at the ceremony held on February 15th.

ABDİ İBRAHİM BECAME THE

LEADER IN R&D, AGAIN

Continuing to be one of the country's R&D leaders, Abdi İbrahim moved up six spots from the previous year and ranked 20th in the R&D 250 list, which was prepared by Turkishtime magazine

according to R&D expenditures of companies in 2017 and announced in 2018, and furthermore it has once again ranked 1st among the pharmaceutical companies.

Abdi İbrahim's rankings in other surveys included in the said list are as follows:

20th among the 250 companies that spend the most on R&D

20th in terms of number of R&D personnel

1st in terms of number of brands obtained by the R&D Center

9th in terms of number of projects carried out in the R&D Center

18th in terms of number of undergraduate and graduate personnel working at the R&D Center

32th in terms of share of R&D expenditures in total turnover in 2017

14th in terms of number of patents obtained by the R&D Center

45th in terms of number of design registrations obtained by the R&D Center

28th in terms of number of useful models obtained by the R&D Center

ABDİBIO WAS AWARDED THE

“BIOTECHNOLOGY INVESTMENT” AWARD

Launched in May 2018, ABDIBIO, Turkey's largest

biotechnological pharmaceutical production facility, won the “Biotechnology Investment” award at the 9th Golden Mortar Awards organized by Eczacı magazine. The award was presented to Abdi İbrahim Technical Operations Vice President Altuğ Uysal at a ceremony held on December 21st.

ABDİ İBRAHİM OTSUKA WAS GIVEN ANOTHER AWARD

Abdi İbrahim Otsuka (AİO) was awarded by Otsuka Global for its projects that make a difference. Awards were presented at the Otsuka Global Marketing meeting held in Bangkok on July 22nd and 23rd with the participation of 75 marketing executives from all over the world. Poster presentations made by AİO Marketing Manager Zeynep Alptekin and Group Manager Erkay Dumanlı were deemed worthy of awards with “Digital Detailing” projects. Participants showed great interest to AİO's detailing projects with VR device and AR-speaking brochures.

ABDİ İBRAHİM RECEIVED AN AWARD FROM FELIS

Three projects of Abdi İbrahim were included in the short list at the Felis Awards organized to emphasize the role of creativity in marketing activities in the advertising and marketing industry and to reward the achievements of the teams contributing to the creative world. In the category of Social Responsibility and Sustainability in the field of Health, “HBVizyon” and “Do Not Ignore - Exhibition of the Adventure of Schizophrenia from Prehistory to Present”, whereas in the category of Health Communication in the field of Launch/Re-Launch Campaign, “Coldaway C Launch” were included in the short list. In addition, the “Do Not Ignore - Exhibition” was awarded the Felis Achievement Award.

RATIONAL MEDICINE USAGE CAMPAIGN RECEIVED THE SOCIAL

RESPONSIBILITY PROJECT AWARD

With its “Rational Medicine Usage Campaign”, Abdi İbrahim won an award in the “Pharmaceutical Industry Awards of the Year - Social Responsibility Project of the Year” category at the Doktorclub Awards organized by the Digital Physician Platform and determined by the votes of 17.000 doctors. The award was presented to Abdi İbrahim General Manager of Marketing and Sales Dr. Oğuz Mülazımoğlu at the ceremony held on December, 21st.


Having started production in its

factories in Kazakhstan and Algeria

and increased its activity abroad,

Abdi İbrahim exports to more than 60

countries and grows confidently in both

Turkey and international markets.

PRODUCTION

MARKETING AND SALES

INTERNATIONAL MARKETS

INVESTMENTS

PURCHASING AND SUPPLY CHAIN

FINANCIAL AND

OPERATIONAL

PROCESSES


F I N A N C I A L A N D O P E R A T I O N A L P R O C E S S E S

Boost value added through R&D efforts

Expand product portfolio with reference drugs

Add momentum to Turkey’s growth

Make investments to sustain competitive advantage

Achieve sales performance to support future targets

TARGET


TL 278,334 mi l l ionTotal taxes paid in 2017 and 2018

USD 116,19 mi l l ion

TL 122,19 mi l l ion

Total amount of investment during 2017 and 2018

2017 and 2018 R&D budget

USD 571,61 million

201brands

397 products

USD 91,37 million

Total turnover as of year-end 2018

as of year-end 2018 as of year-end 2018

Total exports as of year-end 2018

ACTUAL

2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 44 452017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM


44

PRODUCTION

Abdi İbrahim continues its activities towards healing lives and future

all around the world with its state-of-the-art manufacturing facilities

in Turkey, Kazakhstan and Algeria.

Abdi İbrahim Esenyurt Production Facilities

ABDİ İBRAHİM PRODUCTION FACILITIES (ISTANBUL-TURKEY)

Abdi İbrahim carries out its productions in its facilities, which were put into service in 2000 with an investment of 100 million dollars. 450 million units can be produced annually in these facilities, which have been established on an area of 83.000 square meters in the Esenyurt district of Istanbul. Pharmaceutical production is carried out using modern and environmentally friendly technologies in these production facilities meeting GMP and GLP requirements. The processes in the facilities are continuously improved on the basis of both technological investments and automation systems that increase traceability and efficiency. Abdi İbrahim attaches great importance to occupational health and safety in its working processes and pays utmost attention to compliance with international standards, particularly OHSAS 18001, in addition to legal regulations. The company also holds the ISO 14001 Environmental Management System certificate thanks to its environmentally friendly operation.

In addition to the production of Abdi İbrahim's own products, production service is also provided to other national and international companies in the facilities, where all production processes are carried out by a team of approximately 1.000 specialized employees. In 2017, 230 million units of pharmaceuticals were produced in the facilities, where pharmaceuticals can be produced in solid, semi-solid and liquid forms. 21 percent of the solid form production and 40 percent of the liquid and semi-solid form production were realized as contract manufacturing for the world's leading pharmaceutical companies. In 2018, 250

45

million units of pharmaceuticals were produced. 26 percent of the solid form production and 40 percent of the liquid and semi-solid form production were realized as contract manufacturing for the world's leading pharmaceutical companies.

AUDITS PERFORMED BY COMPANIES AND AUTHORITIES

In 2017 and 2018, Abdi İbrahim Production Facilities, which were audited and approved by the authorities and companies of the leading countries in pharmaceutical production in Europe and in the world, were audited by the following healthcare authorities and customer companies:

AUDITORS IN 2017

Takeda PharmaceuticalsANVISA (Brazilian Health Authority)GSK Consumer HealthGeropharmLeo PharmaMSDJanssen (J&J) (Due diligence audit)Russian Health AuthorityAvixaMerz PharmaTunisian Health AuthorityISO 9001:2015MSDSanofiSandozSanofi (Global Star Project)Janssen (J&J)GSK Consumer HealthCristersDaiichi SankyoTeofarmaValeantReckitt BenckiserAdekaUPSA/ BMSReckitt BenckiserGSK & GSK Consumer HealthChiesiMaxpharm

AUDITORS IN 2018

JanssenBoehringer Ingelheim (Due-diligence audit)MSDTurkish Ministry of Health Boehringer IngelheimIraq Ministry of HealthTurkish Ministry of Agriculture and ForestryVifor PharmaTurkish Ministry of Health (AbdiBio)Stada ISO 9001Yemen Health AuthorityS&D PharmaItalfarmacoPfizerSun PharmaJanssenInterPharmaFresenius KabiWeldingNovartisOtsuka (OPJ)HBM PharmaServierAstra ZenecaRussian Health AuthorityValentaISO13485 and CE CertificatesGE Pharm



Biotechnological Pharmaceuticals Production Facility AbdiBio

to their use in Turkey. The facility will also provide contract manufacturing for different companies.

With biotechnological researches in AbdiBio, Abdi İbrahim will help heal more lives in:

HematologyOncologyRheumatologyImmunologyEndocrinologyNeurologyDermatologyGastroenterologyOphthalmology

ABDİ İBRAHİM R&D CENTER (ISTANBUL-TURKEY)

Having been nurturing from its strong R&D culture since its establishment, Abdi İbrahim attaches great importance to R&D, which is the fundamental determinant of development and innovation, in order for science to serve the quality and economic solutions intended for human health. Abdi İbrahim, which established Turkey’s first accredited pharmaceutical R&D Center and allocates approximately 5% of its annual turnover to R&D activities, is among the leaders of the national pharmaceutical industry with its 171 patent applications as of the end of 2018.

Abdi İbrahim R&D Center provides services utilizing high technology with its latest formulation and analytical method development laboratories, and has the capability and infrastructure for developing pharmaceuticals, with inhalation technology and nanotechnological methods that can meet the changing and evolving needs of the national and international pharmaceutical industry.

Focused on developing innovative products, achieving high success rates in bioequivalence studies, accelerating reference product development processes, preparing Common Technical Document (CTD) files for Turkey, Europe and other regions and on developing value-added products, the R&D Center also realizes know-how transfer through joint projects carried out in corporation with domestic and international scientific institutions.

ABDIBIO BIOTECHNOLOGICAL PHARMACEUTICALS PRODUCTION FACILITY (ISTANBUL-TURKEY)

Abdi İbrahim laid the foundations of AbdiBio in 2015 to produce biotechnological pharmaceuticals, which was a very important step taking into consideration that almost all of Turkey's biotechnological pharmaceutical needs are met by imports. AbdiBio, the Turkey's largest biotechnological pharmaceutical production facility, was completed with an investment of 100 million dollar and was launched on May 11th, 2018 with the participation of public and private sector representatives.

The facility, built on a 13.500 square meter indoor area, successfully passed the ministry audit in 2018. AbdiBio, where all production processes ranging from the cell bank to the final product are implemented, has a production capacity of 11 million vials, 9 million syringes, 22 million cartridges and 1 million lyophilized products per year. Biotechnological pharmaceuticals that are to be produced for diseases such as cancer, diabetes, rheumatism, which cannot be treated with pharmaceuticals produced by chemical methods, as well as the biotechnological pharmaceuticals that are to be produced for blood diseases, gastroenterological, dermatological and immunological diseases will also be exported in addition

R&D BUDGET REACHED 70.12 MILLION TL

Abdi İbrahim, who ranked first in the Turkish pharmaceutical sector with the funds it allocates to R&D, has spent the years of 2017-2018 very efficiently in terms of development projects, process improvement and alternative resource projects and university-industry collaborations. The most prominent projects and developments of 2018, in which the R&D budget has reached 70.12 million TL, are as follows:

Clinical study of wound care dressing developed with Ege University has been completed. It is aimed to develop a product that provides reliable, rapid healing, allows monitoring of wound healing as a result of its transparency, is soluble in nature and is easy to use, and now the product is in the stage of commercialization.

Work is underway on the innovative combined dry powder inhaled product platform, which will be available for the first time in the world.

A license for a nutrient-free R&D project with a pharmacokinetic profile superior to the reference product used for an agent against life-threatening systemic fungal infections has been licensed. On the other hand, hybrid license applications are progressing successfully in Europe.

Innovative combined product studies are ongoing in the gastrointestinal field.

Studies to develop a modified release dosage form of a nervous system medicament that is currently in use in the immediate release dosage form have reached the clinical trial stage.

The current R&D portfolio includes a global framework encompassing Europe, USA, Brazil, Australia, South Korea, North Africa, Middle East and Turkic Republics and investments are shaped to that effect.

R&D BUDGET (MILLION TL)

INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS

The number of patent applications of Abdi İbrahim, which possesses the competence in international standards in pharmaceutical production technologies, has reached 171 in Turkey, Europe and in the international arena by the end of 2018. On the other hand, the number of its registered patents in Turkey is 27 and in Europe it is 6.

The wound care dressing project that incorporates microparticles and provides tissue repair, which was developed by Abdi İbrahim in collaboration with Ege University, was registered in 40 countries countries including European countries and USA, Japan, Russia, Australia, China and South Africa.

In addition to its patent applications, as of the end of 2018, Abdi İbrahim obtained the registration for four utility models and three designs and applied for the registration of one design application.

2015

2016

2017

2018

60,12

40,35

52,07

70,12



ABDİ İBRAHİM TECHNO-LOGISTICS CENTER (ISTANBUL-TURKEY)

Abdi İbrahim launched Abdi İbrahim Techno-Logistics Center that has an indoor area of 22.600 square meters and a total pallet storage capacity of 14.500 Euro pallets, in 2010 with an investment of 35 million dollars. The Center, where all operations, including material movements, are carried out under computer control untouched by human hands, represents the ultimate state of technology in logistics. The temperature and humidity values are kept under control 7/24 through the building monitoring system in the Abdi İbrahim Techno-Logistics Center, where more materials can be stored in less space compared to the manual warehouses, and there is an average of 1.000 pallet movements per day.

In 2017, more than 4.000 Euro pallets were exported to 50 countries from the Techno-Logistics Center, and over 21.000 Euro pallets were delivered to 21 companies to which contract manufacturing services are provided. During the year, approximately 52.000 Euro pallets were sent to the finished products warehouse. In 2018, approximately 5.000 Euro pallets were exported to 55 countries from the

Techno-Logistics Center and over 23.000 Euro pallets were delivered to 21 companies to which contract manufacturing services are provided. During the year, there was 57.000 pallet movements in the finished products warehouse.

ABDİ İBRAHİM GLOBAL PHARM (AİGP) R&D CENTER AND PRODUCTION FACILITY (ALMATY-KAZAKHSTAN)

Abdi İbrahim established Abdi İbrahim Global Pharm (AİGP) in Kazakhstan in 2012 in line with its growth strategy in international markets and then started to invest in the most modern factory of the pharmaceutical sector in the country. The factory, which was commissioned in 2015 as Abdi İbrahim's first factory abroad and received GMP certificate in 2016, is built on a 20.000 square meter campus. The factory has a production capacity of 24 million units per year in solid form and employs more than 200 people.

ABDİ İBRAHİM REMEDE PHARMA (AİRP) R&D CENTER AND PRODUCTION FACILITY (ALGIERS, ALGERIA)

Abdi İbrahim, which opened its first foreign office in Algeria in 1999, established Abdi İbrahim Remede Pharma (AİRP) in Algeria in 2014 and realized the most modern factory investment of the pharmaceutical sector in the country. The factory, which was commissioned in 2017 as Abdi İbrahim's second factory abroad and received GMP certificate in December 2017, is located on a campus with an area of 5.689 square meters. Equipped with the technology to produce solid, liquid and semi-solid dosage forms, the factory has a production capacity of 51 million units annually and employs more than 300 employees.

Abdi İbrahim Techno-Logistics Center

Abdi İbrahim Global Pharm

Having the most advanced product portfolio of pharmaceutical industry, Abdi İbrahim serves human health with its products available in almost all therapeutic fields. Company’s goal is to heal a higher number of people every year by means of increasing the market share of its existing products and creating other strong brands in its field.

Abdi İbrahim’s strong field team organized across the country, provides services to approximately half of the 155.000 doctors in Turkey and is in direct contact with over 20.000 pharmacies. The Company adopts an effective and efficient approach in line with the developing technology and changing sector conditions in its sales and marketing channels.

REGION OFFICES

Adana Ankara Antalya Bursa Diyarbakır İstanbul İzmir Kadıköy Konya Samsun Trabzon

MARKETING AND SALES

Abdi İbrahim offers more than 200 brands and nearly 400

products to the service of humanity with Turkey’s most

competent and powerful marketing and sales team.

We reach nearly 80.000 doctors and 20.000 pharmacists monthly in Turkey with our sales & marketing team and we work to heal lives.



50

Exporting to more than 60 countries and aiming to be one of the 100 largest

pharmaceutical companies in the world, Abdi İbrahim continues to work with a

team of approximately 600 employees in international markets.

Abdi İbrahim's International Markets Department conducts all Abdi İbrahim operations that take place abroad. The team that consists of 40 employees in Istanbul and 530 employees in the respective foreign countries, where Abdi İbrahim operates, totalling to approximately 600 employees, takes on responsibilities such as repeating Abdi İbrahim’s market leadership success in Turkey in foreign countries, issuing licenses for Abdi İbrahim products to foreign companies and establishing long-term business partnerships with these companies, increasing sales revenues generated from foreign markets and increasing the number of countries, where Abdi İbrahim operates.

Some of the prominent developments in the international markets in 2018 for Abdi İbrahim, which continues to realize its growth targets, are as follows:

The new factory in Algeria started to local production through realization of technology transfer.

All the demands of the government regarding diabetes, hepatitis, HIV, and tuberculosis in Kazakhstan were continued to be met.

New product launches have been realized in Kazakhstan in fields such as gynecology and respiration.

A representative office was opened in Bosnia-Herzegovina.

New product launches have been realized in the fields of neurology, pain and urology in Bosnia and Herzegovina.

New product launches have been realized in the field of pain in Albania.

New product launches have been realized in the respiratory field in Tunisia.

New product launches have been realized in the respiratory and dermatology fields in Georgia.

In respect of the product used in the treatment of thyroid, a license sales agreement was signed with one of the world's largest global players intended for the European Union countries and the UK in particular. Among the license sales agreements that Abdi İbrahim has signed until now, the above-mentioned agreement is the single agreement that has the highest sales expectation as a customer-branded agreement and the highest file price.

A decision has been made towards conducting a clinical study in Russia for the throat spray product used to treat colds.

In respect of the product used for the treatment of systemic fungal infection, a license sales agreement was signed with a global player intended for the European Union countries and Australia.

INTERNATIONAL MARKETS

GR I 102-06


Strategic countries

Strategic countries where Abdi İbrahim has its own company, factory and sales force

Algeria

Kazakhstan

Iraq

Albania

Georgia

Azerbaijan

Bosnia-

Herzegovina

Tunisia

Yemen

Jordan

Libya

Afghanistan

UK

Portugal

Czech Republic

Germany

Uzbekistan

Qatar

Canada

Russia

Ukraine

Lebanon

Belarus

Morocco

South Africa

South Korea

EU Countries

Australia

Colombia

Countries where Abdi İbrahim brand is sold through the distributors

Countries in which Abdi İbrahim operates with its own organization

Middle East and North Africa: 67

CIS (Commonwealth of Independent States), Uzbekistan: 2Other: 8

EU (Number of the licenses on behalf of Abdi İbrahim): 2

EU (Number of out-licenses): 100

Other countries Licensed countries

LICENSED PRODUCT DISTRIBUTION IN INTERNATIONAL MARKETS (UNIT)

Kazakhstan: 9

Algeria: 10

Azerbaijan: 12

Georgia: 26

Tunisia: 12

Albania: 10

Bosnia-Herzegovina: 11

Iraq: 18

GCC,

Lebanon,

Jordan,

Qatar,

Saudi Arabia,

UAE

Dominican Republic,

Hong Kong,

South AfricaTOTAL EXPORTS (USD MILLION)

1008

108

2

67

2

TOTAL:287

2015

2016

2017

2018

57

76

74,89

91,37



As Turkey’s one of the most established industrial organizations, Abdi İbrahim continues its

investments that add value to the pharmaceutical sector and the country's economy and

continues its breakthroughs incessantly in international markets.

INVESTMENTS

Abdi İbrahim, which stands out as an investor in the pharmaceutical sector, proceeds decisively towards its goal of becoming one of the 100 largest pharmaceutical companies in the world with its breakthroughs in the form of investments in recent years. Abdi İbrahim started production in Kazakhstan in 2015 under Abdi İbrahim Global Pharm (AİGP), by investing in the most modern production facility of the country. The Company made its second factory investment abroad in Algeria, which started production in 2017 under Abdi İbrahim Remede Pharma (AİRP).

INVESTMENTS IN 2017-2018

Abdi İbrahim's important investments in 2017 and 2018 are as follows:

BIOTECHNOLOGICAL PHARMACEUTICALS PRODUCTION

FACILITY ABDIBIO

Founded in 2015 with an investment of 100 million dollars, AbdiBio was launched in 2018. Built on an indoor area of 13 thousand 500 square meters, the facility has an annual production capacity of 11 million vials, 9 million syringes, 22 million cartridges and 1 million lyophilized products.

STERILE OPHTHALMOLOGY AND STERILE INHALATION

PRODUCTION FACILITY

Founded in 2017 with an investment of 60 million dollars, the Sterile Ophthalmology and Sterile Inhalation Facility is built on an area of 2,500 square meters. The facility will start production in 2019 with an annual production capacity of 600 million vials.

Sterile Ophthalmology and Sterile Inhalation Production Facility

2015

2016

2017

2018

* Including overseas

STERILE INJECTABLE AND ONCOLOGY PRODUCTION FACILITY

Founded in 2018 with an investment of 150 million dollars, the Sterile Injectable and Oncology Production Facility is built on an area of 48.000 square meters. The facility, which will be the largest sterile production facility in Turkey, will start production in 2021 and produce sterile products in different forms.

HORMONE PRODUCTION FACILITY

Founded in 2018 with an investment of 4 million dollars, the Hormone Production Facility is built on an area of 620 square meters. Abdi İbrahim will be able to also provide contract manufacturing in this production area, which will have the capacity to meet an important need in this field in Turkey, in addition to producing its own products. ADDITIONAL PRODUCTION SERVICE BUILDING

The Additional Production Service Building, which is built on an area of 400 square meters, was commissioned in 2018 and has an annual production capacity of 40 million units.

DIVISION FOR PRODUCTS WITH HIGH POTENT CONTENT

An area of 400 square meters was established within Abdi İbrahim Production Facilities in 2018 for products with high potent content. The facility, which has an annual production capacity of 20 million units, was approved after the inspection of the Ministry.

Equipment and revision investments were made for R&D departments.

Hormone Production Facility

ADDITIONAL PRODUCTION AREA FOR LIQUID AND SEMI-SOLID

PRODUCTS

An additional production area was commissioned within Abdi İbrahim Production Facilities in 2018 for liquids and semi-solid products. The facility, which is built on an area of 300 square meters, has an annual production capacity of 20 million semi-solid and 20 million liquid products.

EQUIPMENT AND REVISION INVESTMENTS

In 2017 and 2018, many equipment and revision investments were made for the quality control and R&D departments of Abdi İbrahim's production facilities located in Istanbul, Kazakhstan and Algeria.

TOTAL INVESTMENTS* (MILLION USD)

10,5

55,32

62,93

53,26



Abdi İbrahim conducts procurement activities on three main areas: direct material, indirect material, and investment. These are planned in parallel with the company’s long- and short-term policies. Supplier selection and improvement of business processes are among the company’s top priorities in its procurement processes. Preferring firms that favor the establishment of long-term collaboration in its supplier selection, Abdi İbrahim places utmost importance to compliance with occupational health and safety regulations and ethics.

Taking Labor Law No. 4857 as a reference in its control and procedural processes, the Company currently has approximately 5.000 suppliers within its direct and indirect purchasing chain, in addition to the other supplier companies, which Abdi İbrahim signed contracts. The annual number of purchase orders of Abdi İbrahim, which carries out improvement and development activities with the supplier companies in order to develop mutual business processes and to create a sustainable purchasing and supply chain, reaches 30.000.

Abdi İbrahim conducts its purchasing and supply activities within the framework of the following universal principles:

Quality Savings Security Ethics Protection of society and environment

RATIO OF LOCAL SUPPLIERS

The ratio of local suppliers of Abdi İbrahim, which have worked with approximately 4.900 suppliers in 2017 and 2018, to the total number of suppliers is 78 percent. In 2018, Abdi İbrahim’s supplier network expanded by 2 percent compared to the previous year.

PURCHASING AND SUPPLY CHAIN

Abdi İbrahim, which maintains its relations with domestic and international business

partners included in its supply chain in line with ethical values such as honesty,

fairness, openness and accuracy, works with approximately 5.000 suppliers.

WE ARE COURAGEOUSBecause we walk to the future to

discover the better one and do the undone.

WE ARE PASSIONATEBecause we are aware that healing

the lives is possible by producing

good works with passionate people.

WE ARE ACCOUNTABLEBecause we are aware that each of

us affects everyone, and we know

our responsibility that we carry for

a healthier society, a more livable world.

Abdi İbrahim team, which consists of

“life healers”, which consists of

approximately 4.000 people, continues to

work passionately for a healthier society

and a more livable world.

HUMAN RESOURCES STRATEGY

RESPECT FOR HUMANITY AND PARTICIPATORY MANAGEMENT

CAREER AND PERSONAL DEVELOPMENT

INFORMATION SHARING AND APPRECIATION

DIVERSITY

OCCUPATIONAL HEALTH AND SAFETY PRACTICES

HUMAN RESOURCES INDICATORS

HUMAN RESOURCES

PRACTICES


Eliminate risks by creating world class OHS practices at the production facilities and logistics center

Retention of employees with high potential and high performance

Supporting participatory management

Continuously supporting the development of its employees as a talent, and preparing them for the upper positions

Improve employee competency through training programs

Promote female employment and equal opportunities

H U M A N R E S O U R C E S P R A C T I C E S

TARGET


44% 65%Rate of intercorporate promotion among the people employed as manager or in senior positions:

Rate of female employment at Abdi İbrahim Headquarters:

28,6 HOURSTraining period per employee in 2018:

2017

50%2017

2018

52%2018

Rate of loss in this target group, which is called as unwanted loss rate: 2,9%

2017

3%2018

2,7% 1,7%Rate of rotation, which is considered an important development activity:

2017 2018

OHS rules training period per employee:

2018

5,86 HOURS

2017

3,5 HOURS

Rate of female employment at Abdi İbrahim R&D Center: 66%

2017

68%2018

Number of employee suggestions received through AIDEA by the end of 2018:

1.167

ACTUAL



HUMAN RESOURCES STRATEGY

Abdi İbrahim has approximately 4.000 employees, who have professional

knowledge and experience above the sector average, and invests in its

employees as much as its products, R&D and facilities.

Adopting reliability and transparency principles, Abdi İbrahim’s employees working at the centers-designed like a living space-consider the corporate culture and ethical values, nourished with a century-old experience, as the touchstone of their operations.

PRIORITIES OF ABDİ İBRAHİM’S HUMAN RESOURCES STRATEGY

Creating an environment and climate where employees work passionately.

Excelling in talent management and succession.

Building a performance culture identified with strategic priorities.

Improving the technical competences and leadership skills proposed by the strategy.

Building the system and sustainable processes required by the HR infrastructure.

Abdi İbrahim, which believes that long-term visions and goals can be achieved only with the right team, sees anyone in its team as a talent. The Company, which attaches great importance to talent management in terms of creating an environment and climate where employees work passionately, conducts its talent management processes in seven steps:

FIRST STEP - EMPLOYMENT

Abdi İbrahim strengthens its organizational structure in parallel with the steady growth in the business volume by conducting recruitment processes in an objective and transparent manner.

Abdi İbrahim, which presents the recruitment processes and the benefits offered to its employees to the attention of its stakeholders in a clear and understandable manner on the corporate website (www.abdiibrahim.com.tr/Kariyer), also opened a microsite (www.iyilestirenyuzler.com) that provides information about the mass recruitment processes of medical representatives.

SECOND STEP - ORIENTATION

New members of the family are welcomed with the “I’m in the Family Orientation Program” where adaptation of new members to the job and culture is accelerated in a friendly environment.

THIRD STEP - PERFORMANCE MANAGEMENT (WHAT I DID)

The Company shapes its human resources processes within the framework of the concept of performance culture as part of the 2020 vision and is dedicated to defining roles and responsibilities of employees according to its long-term targets and policies.

FOURTH STEP - EVALUATION OF COMPETENCE (HOW I DID)

With the 360 degree competence evaluation process, the employees are mirrored regarding how they achieved their goals.

.

FIFTH STEP - FEEDBACK AND DEVELOPMENT PLANNING

The Company assesses business results (What?) with the performance management system, and behavioral expectations (How?) with the 360 degree competence evaluation process. With observational feedbacks throughout the year, the aim is to develop an environment of constant dialogue between the employees and directors.

SIXTH STEP - SALARY AND BONUS MANAGEMENT

The success displayed throughout the year is evaluated with the performance management system. The goal is to create a fair salary system taking into consideration performance and equivalent positions in the pharmaceutical industry. Individual success is rewarded with bonuses within a sense of win & share in line with the financial success of the company.

SEVENTH STEP - POTENTIAL LEADERS OF THE FUTURE

Potential leaders of the future are the individuals who distinguish themselves during the talent management processes and for whom Abdi İbrahim aims to speed up improvements. Employees that demonstrate sustainable performance for two years are evaluated in terms of

performance and potential. Analysis tools build an infrastructure, the committees gathering to discuss the evaluation results make the final decision, and the potential leaders of the future are selected.

İKSİR (ELIXIR) YOUNG TALENT DEVELOPMENT PROGRAM

Abdi İbrahim launched the İksir Young Talent Development Program in 2017 in order to attract newly graduated young talents and to train high-potential young talents to be recruited to the company as long-term employees.

The young talents that have joined the Abdi İbrahim family after going through many challenging stages, are subjected to a structured development program for 6 months. This program includes components such as mentoring, orientation mastery, digital and in-class trainings, meetings on career coaching, rotation with the purpose to understand different departments, and presentation of the department project, which has been developed by the said talents over 6 months, in order to successfully complete the process.

In 2017, approximately 5.000 applications were submitted to participate in the program that attracted great attention from young people, whereas in 2018 the number of applications submitted increased to 6.000. A total of 31 people were admitted to the program within these two years. 8 people who have joined the Abdi İbrahim family within the scope of the İksir program are still working as experts in Abdi İbrahim.



RESPECT FOR HUMANITY AND PARTICIPATORY MANAGEMENT

Abdi İbrahim, always taking the opinions and suggestions of its employees into

account, initiated 118 projects through the AİDEA Suggestion System.

AİDEA

As of the end of 2018, 118 projects were implemented through AİDEA, which received 1.167 employee suggestions. A total of 73.962 TL was awarded to employees who shared their suggestions. Abdi İbrahim implemented the AİDEA Suggestion System in March, 2011, to create a working environment based on open communication where employees become a part of the decision making mechanism with their ideas and suggestions and contribute to the Company’s sustainability targets.

CAREER AND PERSONAL DEVELOPMENT

Abdi İbrahim supports its employees throughout their working life through the

continuous professional and personal development opportunities it offers.

ABDİ İBRAHİM ACADEMY

Offering development solutions in order to support the strategic priorities and to create a common culture, the Abdi İbrahim Academy consists of corporate academic programs, basic technical trainings, e-trainings, social learning, and the aipedia corporate library. The employees plan their development by using “Competence Development Guides”, join development programs with in-class trainings, and receive e-training through the training management system. Abdi İbrahim provided an average of 28.6 hours of training per person in 2018.

Some of the schools included in the Academy are:

JOURNEY TO THE TOP

It is a career development program that aims to support the medical representatives throughout their entire working life. The programs aiming to provide the necessary mental, emotional and behavioral skills to do well in representation works have been planned by taking into account the different needs in terms of professional seniority.

I’M IN THE FAMILY-ORIENTATION PROGRAM

A program developed to accelerate adaptation of newly joining employees and to support them during their first six months.

MEDICO MARKETING INSTITUTE-MMI

A multidimensional development program that supports the development of marketing teams throughout their career steps, covering many development methods and tools with the aim of transferring learning to life experience.

PHARMA MINI MBA-PMM

A multidimensional, credit-based, 15 month development program, including awards and projects, that provides a scope for all expert-level employees with the aim of promoting a change in perspective to deliver the strategy and to train new generations to assume leadership roles in 2020.

MASTERS CLUB (MENTORSHIP)

A program intended to increase leadership capability aligned with the corporate targets and strategies and, more importantly, to support adaptation to the corporate culture or to contribute to the development of individuals who are assigned new roles or promoted.



INFORMATION SHARING AND APPRECIATION

Abdi İbrahim has many practices initiated in order to strengthen internal

communication and employee loyalty.

AİNSAN

Aİnsan Human Resources System is accessible to all Abdi İbrahim personnel via the corporate website

(http://ainsan.abdiibrahim.com.tr), and it allows employees to:

Access their payroll data,

Update their personal information,

Request leave,

Prepare a target card and carry out performance monitoring or a 360 Degree Competence Assessment if the employee is part of the Technical Head Office of Abdi İbrahim Tower management,

Access internal organizational charts as well as various other applications.

PUSULA

A support website for the countrywide sales-marketing team, Pusula (“Compass”) is accessible at (https://pusula.abdiibrahim.com.tr) and provides wide-ranging support to the Company’s sales-marketing operations staff.

COSMOS

Cosmos portal (https://cosmos.abdibrahim.com.tr) was prepared for Abdi İbrahim’s people employed in international operations and enables personnel to exchange announcements and files, manage activities, monitor budget, sales and inventory, enter business process data and carry out data integration with the database at the Abdi İbrahim Head Office.

WORKFLOW

Workflow, a website for the Abdi İbrahim Head Office and Production Facilities (http://workflow.abdiibrahim.com.tr), allows associates to prepare vehicle request forms, business card requests and overseas business trip forms, and also to register their domestic and overseas expenses, depending on the travel.

AİLECE

Abdi İbrahim’s intranet application, Ailece (“As a Family”), offers all employees a user-friendly sharing platform.

ACCIDENT-FREE PERFORMANCE REWARDED

Adopting as a reference not only domestic legislation but also international best practices in Occupational Health and Safety, Abdi İbrahim presents “Accident-Free Performance of the Month Awards” to employees to foster an occupational safety culture among the workforce.

AWARDS FOR ECO-FRIENDLY EMPLOYEES

With the belief that environmental sustainability targets can only be attained with the voluntary participation of stakeholders, Abdi İbrahim rewards the “Eco-Friendly Employee of the Month” to raise environmental awareness among personnel. Since 2018, the “Environmentalist Employee of the Month” is selected at the Company as on a quarterly basis.

EMPLOYEE AWARDS FOR OCCUPATIONAL HEALTH AND SAFETY

An “OHS Employee” award is given every three months to recognize those employees who abide by the Occupational Health and Safety Policy principles of Abdi İbrahim, in order to raise OHS awareness and cultivate an OHS culture at the Company.

TRAININGS FOR SECURITY GUARDS

All security guards at Abdi İbrahim receive an annual procedural training.

66


DIVERSITY

Abdi İbrahim offers its employees a work environment based on equal

opportunity and respect for diversity.

THE GENDER BREAKDOWN OF

ABDİ İBRAHİM SENIOR MANAGEMENT

FEMALE EMPLOYEE RATE (%)

TITL

E

Assistant Director and Above

Manager

Executive

Total

Head Office

R&D Center

FACTORYHEAD OFFICE FIELD

SUM TOTAL

MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE

2017

2017

2017

2017

2018

2018

2018

2018

3

8

10

18

20

29

33

3

22

65

68

11

13

98

104

23

9

79

76

24

24

112

109

9

0

162

175

1

1

163

176

0

0

18

21

0

0

18

21

0

25

235

253

30

34

290

313

26

10

106

107

49

49

165

166

10

1

9

10

25

25

35

36

1

2017 2018

50 52

66 68

Abdi İbrahim, as a signatory to the United Nations Global Compact (UNGC) and the Women’s Empowerment Principles (WEPs), does not discriminate on the basis of race, language, religion, age and gender, offers equal opportunities in its human resources processes, and is committed to providing a fair and egalitarian working environment, where human rights are respected.

As a company that places great importance on the support and employment of women, Abdi İbrahim has also signed the Women's Empowerment Principles (WEPs) document, which is a private sector initiative of United Nations aiming to strengthen women to ensure that they can take place in economic life in all sectors and at all levels, on January 16th, 2017.

SUPPORTING LOCAL AND FEMALE EMPLOYMENT

Abdi İbrahim attaches importance to women's participation in business life and to supporting local employment. Boasting an enhanced field organization spread across Turkey, Abdi İbrahim supports local employment by “collective recruitment” for field promotion teams. With regard to promotions, when choosing between two individuals with the same managerial potential, the Company prefers the local candidate. As a result of this policy, the rate of promotion among the local community to senior management (e.g. regional manager, product manager, director, etc.) has reached 70%.

Abdi İbrahim is particularly sensitive about the career development of female employees, hence 52% of its employees that work in its headquarters are women. Gender distribution in management roles within the company is as follows:

EMPLOYER-EMPLOYEE RELATIONS

There are no trade unions at Abdi İbrahim. The Company respects employee rights in accordance with industrial relations legislation and audits its suppliers on a regular basis. At Abdi İbrahim, employees are represented in various industrial relations platforms, especially those related to occupational health and safety policies.


GR I 102-41

OCCUPATIONAL HEALTH AND SAFETY PRACTICES

Abdi İbrahim believes that institutionalization in OHS includes not only the

appropriate technical equipment and health facilities and equipment, but also the

internalization of a corporate OHS culture across all levels of the organization.

In addition to domestic legislation, the Company pays utmost attention to compliance with international standards, such as OHSAS 18001, and strives to raise employee awareness through training activities. Employees are provided with occupational health and safety training every year. Accordingly, 3.5 hours/man training was provided in 2017 and 5.86 hours/man training was provided in 2018. Risks in work areas and related protection parameters, occupational accidents that were occurred, and near miss incidents are taken into consideration in order to determine the content of the trainings given periodically every year.

Specific targets are set every year in Abdi İbrahim to lower the general accident rate, and strategic studies are carried out to increase safe situations and behaviors. In order to make a global comparison of accident rates, Occupational Safety and Health Administration (OSHA) has started to calculate the accident rate since 2018.

OCCUPATIONAL HEALTH AND SAFETY INDICATORS

ACCIDENT FREQUENCY RATE*

OCCUPATIONAL DISEASE RATE**

LOST DAY RATE***

NUMBER OF FATAL ACCIDENTS

Occupational Disease Rate = Total number of occupational disease cases x 200,000

/ Total number of working hours

Lost Workday Rate = Total number of lost workdays x 200,000 / Total number of

workdays (Number of employees x workdays)

2017 2018

3.43 4.05

Rate of accidents that lead to workday loss covers all accidents which require

employees to take a leave of one or more workdays. Rate of accidents that lead

to workday loss = Total number of accidents with workday loss x 200,000 / Total

working hours

2017

2017

2017

2018

2018

2018

0

0

0

0

420.3 493.2

2017 - 2018 2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 67

2017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM 68


HUMAN RESOURCESINDICATORS

Abdi İbrahim provides its employees with extended social rights as well

as a working environment of an international standard.

Abdi İbrahim’s priority in human resources area is to design processes that its employees can demonstrate their potential and to provide opportunities and environments for their continuous improvement. Adopting active employment policies in a manner which is consistent with the growth plans, the Company provides strong support to the economy of Turkey.

NUMBER OF EMPLOYEES*

BREAKDOWN BY EDUCATION

64% of Abdi İbrahim employees have at least a Bachelor’s degree.

BREAKDOWN BY AGE

BREAKDOWN BY GENDER

FIELD

2017

2017

2017

2017

TOTAL

TOTAL

2017

2018

2018

2018

2018

2018

* Including overseas representative offices, Otsuka and subcontracted employees

3.883 3.924

8% - 2802% - 707

71% - 2.415

Master's Degree and Above

Two-or Four-year University Graduate

Primary School and High School

Age 30 and under

Age 30 to 50Age 50 and over

68% - 2.298

9% - 289

80

1.156

585

1.103

531

2.246

1.494

2.290

1.387

2.306

3.402

3.402

3.393

3.393

1.016

93

2.419

881

24% - 806

Female Male


HEADQUARTER (AI TOWER)

COUNTRIES

HEADQUARTER (PLANT )

MARITAL STATUS BREAKDOWN

PARENTAL LEAVE

EMPLOYEES ON PARENTAL LEAVE

EMPLOYEES BACK FROM PARENTAL LEAVE

BEAKDOWN BY FUNCTION

Abdi İbrahim’s active human resources operate many functions, including production, sales-marketing, and corporate governance at the same time; 80% of it is composed of white-collar employees and 20% is composed of blue-collar employees as of year-end 2018.

HEADCOUNT BREAKDOWN2017

2017

2017

2017

2018

2018

2018

2018

219

352

1.195

212

360

1.105

188

564

2.207

192

711

2.288

45% 53%55% 47%

Female

Married

Male

Single

Blue Collar White Collar

2017

2017

2018

2018

543 692

2.859 2.701

37 53

37

56% - 1,905

5% - 174

6% - 218

23% - 779

4% - 137

6% - 189

51% - 1,7MedicalRepresentatives

Regional Director

Head Office

Factory

R&D

Marketing

6% - 190

7% - 219

27% - 922

4% - 149

5% - 185

2017 2018

2017 2018

42

Abdi İbrahim, which believes that healthy

and educated generations that live in a

clean environment are indispensable as

much as innovative products for sustainable

development, attaches great importance

to the social and environmental impacts of

its activities in addition to the economic

impacts of its activities; from this point

of view, it considers social responsibility

activities that can make a difference both

socially and environmentally as an integral

part of its main activities.

2017 AND 2018 PROJECTS

PHILANTHROPY

CONTRIBUTION TO

SOCIAL DEVELOPMENT

TARGET

C O N T R I B U T I O N T O S O C I A L D E V E L O P M E N T

To support aid projects

To carry out studies for public health

To conduct campaigns on social awareness days

To develop projects for the environment

To support the outreach projects organized by Non-Governmental Organizations (NGOs)


500

families.

Abdi İbrahim has provided its support for the “Grandmother Project” initiated by the Turkish Republic Ministry of Labor

and Social Security in order to support women employment, and has undertaken the aids to be provided to

ACTUAL

HBVIZYON PROJECT WAS LAUNCHEDagainst Hepatit B, which is a major health problem in Turkey.

In line with a project it has undertaken within the context of one of its products, Abdi İbrahim has created the

“UMUT (THE HOPE) FOREST” BY PLANTING 5.000 SAPLINGS in the name of physicians in the forest land determined in the Çanakkale-Lapseki region.

To pioneer the studies on public health

Within the scope of the

RAT IONAL MED IC INE USAGE CAMPA IGN , launched in 2012 on unconscious use of medications, the second research was conducted in 2017 and the

results were shared with the public and awareness activities were conducted on social media.

Abdi İbrahim employees ran with the Cancer Free Life Association in Istanbul Marathon to support the

renovation project of the oncology service of Ümraniye Training and Research Hospital.

Abdi İbrahim employees participated in the Runatolia Marathon to provide

FREE TRAINED NURSE visits to the homes of Alzheimer's patients.

Various projects have been carried out in certain days such as World Lymphoma Day, Breast Cancer Awareness and Consciousness-Raising Month,

World Cancer Day, International Women's Day, World Parkinson's Day, Polycystic Kidney Patients’ Day, World Alzheimer's Day, and Iron Deficiency Day.




2017 AND 2018 PROJECTS

2017

ONCE AGAIN, ABDİ İBRAHİM

CONDUCTED OUT THE MOST

COMPREHENSIVE RESEARCH

IN THE SECTOR

Abdi İbrahim, which has launched the Rational Medicine Usage Campaign in 2012 to raise

public awareness on unconscious use of medications, included all of its employees in the project in the fifth year of the project, and once again conducted the most comprehensive research in this subject in the Turkish pharmaceutical sector.

The first research results of the campaign launched by Abdi İbrahim with the slogan of “Use Your Medicine Consciously, Don't Harm Your Health”, which was carried out in collaboration with the Association for Drug Awareness and Rational Drug Association, had been shared with the public at the end of 2013. The second research was carried out in the fifth year of the campaign, which is important for public health and the national economy. The research conducted in collaboration with the independent research company FutureBright with 8.000 samples across Turkey and with the same methodology revealed the rational drug use awareness map of our country for the second time. The results of the research were announced at a press conference on November, 16th.

Dr. Süha Taşpolatoğlu, CEO of Abdi İbrahim, stated in his speech at the meeting that the unconscious use of medications threatens public health and leads a significant

loss in Turkish economy, and he said: “We launched the “Rational Medicine Usage Campaign” in 2012 in order to support the efforts initiated by the Ministry of Health, with the strength derived from our more than 100 years of history and with the responsibility we shoulder as the leader of the Turkish pharmaceutical industry. Within the scope of our campaign, we put forward awareness-raising activities using our television advertisements, notices, pharmacy brochures and social media contents. As Abdi İbrahim, we took important steps to improve life and future, and it is our primary duty to raise the awareness of the society on the subject of health and to raise a healthy generation. Rational Medicine Usage Campaign is an extension of this sense of social responsibility.”

AN EXEMPLARY HEALTH

PROJECT IN THE WORLD:

HBVİZYON

HBVizyon application, which Abdi İbrahim gives unconditional support, was introduced at a press conference on the occasion

of July 28, World Hepatitis Day. Abdi İbrahim Marketing and Sales General Manager Emre Kaan and Prof. Dr. Aydın Şeref Köksal from the Sakarya University Training and Research Hospital attended the meeting, in which details of the HBVizyon Warning System that is the reactivation risk management program against Hepatitis B virus, was explained.

HBVizyon Warning System, pilot scheme of which started in 2017, was put into practice in 26 training and research and university hospitals in as short as five months. Information

In line with the results of the Corporate Reputation and Perception Survey,

Abdi İbrahim has focused its social responsibility activities on areas such as

education, culture-arts, public health and the environment, and carried out

distinctive corporate social responsibility projects also in 2017 and 2018.

about the system is shared with the physicians through satellite symposiums at national meetings and congresses, and through information meetings in hospitals. The system, which is designed as a warning screen, aims to raise awareness across Turkey.

Mr. Emre Kaan, General Manager of Abdi İbrahim Marketing and Sales, stated that they aim to raise awareness for reactivation

risk management of Hepatitis B virus, which has infected approximately 3.5 million people, to increase HBV screening rates in immunosuppressive patients and to implement prophylaxis without delay, and underlined the importance of early diagnosis and treatment against Hepatitis B, which is known to have infected 2 billion people in the world and 3.5 million people in Turkey. Mr. Kaan continued his speech as follows: “The theme of World Hepatitis Day this year is determined as ‘Eliminating Viral Hepatitis’. In order to achieve this goal, as Abdi İbrahim, we have implemented the HBVizyon Project, a social responsibility project for public health. With this project, we aim to increase hepatitis B screening rates in immunosuppressive patients as well as to implement prophylaxis without delay. With the ‘HBVizyon System’ alarm application, we aim to evaluate the patients who will undergo immunosuppressive therapy in terms of the HBV risk before the therapy through the warning message that will appear on the screen if a medication that suppress the immune system is used for any illness, and to prevent possible HBV reactivations in this way.”

Prof. Dr. Aydın Şeref Köksal stated that HBV infection is a serious public health problem and that it is estimated

that approximately 400 million people worldwide carry Hepatitis B virus. He said, “With this electronic warning system, it will be ensured that the patients who will undergo immunosuppressive therapy are evaluated in terms of the HBV risk before the therapy and it will be possible to prevent the HBV reactivations. HBVizyon is an exemplary project of Turkey.”

ABDİ İBRAHİM GAVE SUPPORT TO THE GRANDMOTHER PROJECT

Abdi İbrahim has given support to the “Grandmother Project” initiated by the Ministry of Labor and Social Security of Republic of Turkey in order to support women's employment, and has undertaken the aid to be provided to 500 families. Mr. Nezih Barut, Abdi İbrahim Chairman of the Board of Directors and the Chairman of the Board of Directors of Pharmaceutical Industry Employers' Association, also participated in the signing ceremony held on February 8th for the project, through which outright support of 425 TL will be provided for 12 months to the grandmothers that take care of their grandchildren.

ABDİ İBRAHİM RAN AFTER

GOODNESS

Abdi İbrahim team participated in the Istanbul Marathon also in 2017 as they did in 2016. The team ran with the Cancer Free Life Association, which realizes projects that give

hope to the cancer patients, in the Marathon held on November, 12th, in order to support the renovation project of the oncology service of Ümraniye Training and Research Hospital.

“ HBVizyon is an exemplary project of Turkey. ”




ABDİ İBRAHİM EMPLOYEES RAN FOR ALZHEIMER PATIENTS

Abdi İbrahim employees that work in the Antalya region participated in the Runatolia Marathon that was held on March, 5th. The team ran in order to provide free trained nurse visits to the homes of Alzheimer's patients.

INFORMATION MEETING ON WORLD LYMPHOMA DAY

The Association of Leukemia Lymphoma Myeloma Patients and Research Education Association (LLMBİR) organized an information meeting intended for the patients on September 15th World Lymphoma Day with the support of Abdi İbrahim. Member of the faculty and department head at the Ankara University School of Medicine Hematology Department and the Chairman of LLMBİR, Prof. Dr. Muhit Özcan, member of the faculty at Ankara University School of Medicine Hematology Department and LLMBİR Secretary General of the Board of Directors, Assoc. Prof. Dr. Selami Koçak Toprak, member of LLMBİR Board of Directors Lawyer Assist. Prof. Dr. Ertuğrul Akçaoğlu, member of LLMBİR, Ece Yücekan attended the press conference held on September, 15th, in Ankara. Assoc. Prof. Dr. Selami Koçak Toprak, the coordinator of the meeting, said in his opening speech that this meeting was held with the unconditional support of Abdi İbrahim and thanked Abdi İbrahim on behalf of all patients.

PINK FESTIVAL

Abdi İbrahim participated as a sponsor in the “Pink Festival” organized by the Breast Health Association (MEMEDER) on October 8-9, in Istanbul, as part of the Breast Cancer

Awareness and Consciousness Raising Month (1-31 October). In the festival that was organized as an open to public event by MEMEDER, which provides services to women in the field of breast health with both scientific projects and free screening projects, the importance of early diagnosis has been highlighted and free breast screening opportunity has been provided. Brochures about AbdiBio were distributed at the Abdi İbrahim booth, which attracted great attention in the festival, and the message with regards to the state of readiness in terms of healing the future in the treatment of oncology patients was given.

GIFTS MADE STUDENTS HAPPY

Abdi İbrahim employees that work at the headquarters and factories as well as Abdi İbrahim’s field employees continued to support education and children and donated the clothes and stationery materials collected in donation boxes to students in various schools of Turkey.

“A PREOCCUPATION EACH MONTH” FROM AİO

Abdi İbrahim Otsuka (AİO) launched another innovation within the scope of the Do Not Ignore Project, which aims, through increasing awareness of schizophrenia, to contribute to the fact that schizophrenia patients can turn into individuals, who can live independently in the society. Every month, videos about activities (T-shirt painting, flower pot decoration, mirror making, decorative box decoration, etc.), which schizophrenia patients can perform at the Community Mental Health Centers are uploaded to the “A Preoccupation Each Month” section of the www.gormezdengelmeyelim.com web site. In this way, in addition to medication treatment of schizophrenic patients, it is aimed to contribute to the healing processes with occupational therapy and to reach the patients and their relatives.

AİO GAVE CLOTHES AS GIFTS TO PATIENTS

With the campaign organized by Abdi İbrahim Otsuka, 1.200 clothes collected by Abdi İbrahim employees that work at the headquarters and factories and by Abdi İbrahim’s field employees were presented to patients hospitalized in Bakırköy and Erenköy Mental and Neurological Diseases Hospitals on April 4-10.

STEM CELL AND BLOOD DONATION CAMPAIGN

Abdi İbrahim collaborated with the Red Crescent in order to raise awareness about stem cell and blood donation. Seminars were given by Turkish Red Crescent at Abdi İbrahim Tower and production facilities within the scope of the campaign organized in July in the context of the said collaboration. Abdi İbrahim employees donated stem cells and blood voluntarily as part of the campaign. The Red Crescent authorities thanked Abdi İbrahim family on behalf of the patients and their relatives for touching the lives of 399 patients due to the donation of 133 units of blood.

2018

ABDİ İBRAHİM GAVE SUPPORT

TO THE CANCER

AWARENESS CAMPAIGN

Abdi İbrahim provided support to the activities of Turkish Cancer Research and Fighting Cancer

Organization and the Union for International Cancer Control (UICC) on occassion of 4 February World Cancer Day. Abdi İbrahim Tower was illuminated with blue and orange colors between the dates of 2 and 4 February in order to draw attention to cancer.

A press conference was held on February 2nd in order to provide information about the activities to be carried out by the Turkish Cancer Research and Fighting Cancer Organization and the Union for International Cancer Control (UICC), within the scope of 4 February World Cancer Day. Abdi İbrahim Speciality Care and Oncology Department Director Pharmacist Çiğdem Yılmaz attended the meeting. In her speech at the meeting, Ms. Yılmaz expressed her happiness for supporting this valuable campaign. She said, “We believe that a solution to an important public health problem such as cancer can only be found through joint action of government policies, non-governmental organizations and private sector initiatives and under the leadership of our esteemed scientists. In this sense, we feel lucky as we can talk about both treatment and some preventive actions and activities. Hence, we wanted to support this campaign intended to raise cancer awareness.”

A MEANINGFUL GIFT ON INTERNATIONAL WOMEN'S DAY

Abdi İbrahim's cardiology teams Feniks and Dragon led a meaningful project on occasion of International Women's Day on March 8th. A 40-page review about women's heart health was published in cooperation with the Turkish Society of Cardiology. In the review, addressing the issue of risk assessment in women in a different manner and the issue of differentiation of treatment protocols for women compared to the treatment protocols for men have been reviewed with the support of scientific research and articles. The importance of the patient-oriented

approach, which is Abdi İbrahim's Introductory Model, was emphasized in the treatment protocol. Having visited 64 percent of all cardiology physicians in Turkey on March 8 and 9, Abdi İbrahim teams have reached 2,129 doctors and have given the said review to these physicians as a gift.

“IT IS TIME TO DO MORE”

Turkish Parkinson's Disease Association organized an information meeting with the motto “Time to Do More” in 12 provinces within the scope of 11 April World Parkinson's Day, with the unconditional support of Abdi İbrahim. Prof. Dr. Raif Çakmur, Chairman of the Board of Directors of the Parkinson's Disease Association, Prof. Dr. Murat Emre, Prof. Dr. Sibel Ertan, Prof. Dr. Haşmet Hanağası, Assoc. Prof. Dr. Gülsen Babacan, Assoc. Prof. Dr. Başar Bilgiç, Physiotherapist Dr. Burcu Ersöz and Psychiatrist Burç Çağrı Poyraz, Dr. Öykü Tezel Bayraktaroğlu and Dietician Sevgi Neylan Bakım attended the meeting, which was held on April 11 in İstanbul. At the meeting, patients' and their relatives were informed about issues such as Parkinson's disease, movement, balance, speech, proper diet and solidarity, and the questions of the participants have been answered as well.

23 APRIL CELEBRATION FROM OLYMPOS

Abdi İbrahim Olympos team decorated the pediatrics clinics for April 23 National Sovereignty and Children's Day, and accompanied both physicians and children. The team distributed the Certificates of Achievement that were specially prepared for children.

UNICEF PROJECT

In May, Abdi İbrahim Boreas team donated multivitamins to UNICEF for children in need on behalf of 3.953 obstetricians the team had visited. On behalf of each physician, 30 bags of multivitamin each were donated through UNICEF to the children living in difficult conditions. Name specific donation certificates were sent to physicians through the field team.

“LIVING MOMENTS”

Abdi İbrahim Otsuka (AİO), which continues its journey of healing with its social responsibility projects on occasion of the awareness days, released the #YaşayanAnlar (#LivingMoments) film on May 10 Polycystic Kidney




Patients Day. Aiming to raise awareness about the polycystic kidney disease, which is life-threatening and the most common hereditary kidney disease, and to heal more lives by reaching out to more people, AİO has released the #YaşayanAnlar film on social media channels and Youtube. The film reached 73.000 views on Facebook and 5.000 views on Instagram, and the company's field staff shared with the film with the physicians with the #YaşayanAnlar slogan. Additionally, it was aimed to reach more people by hanging the infographic posters in the waiting areas of the hospitals and by disclosing the press bulletin to the press.

UMUT (THE HOPE) FOREST

Abdi İbrahim Hercules and Pegasus teams created a small forest in line with a project they have undertaken for one of Abdi İbrahim products by planting 5.000 saplings in the name of physicians in the forest land determined in Çanakkale-Lapseki region. Within the scope of this “Umut (The Hope) Forest” project, one sapling each was planted on behalf of all psychiatrists and neurologists that have been visited, all employees in the Pegasus and Hercules teams along with their family members, and the employees that work at the headquarters.

Following this contribution which was made to leave a more livable world for future generations, Tema Foundation Chairman of the Board of Directors Mr. Deniz Ataç visited Abdi İbrahim Tower on May 25th and presented a plaque of appreciation to Dr. Oğuz Mülazımoğlu, General Manager of Marketing and Sales of Abdi İbrahim.

AİO LAUNCHED NEW PAGES ON INSTAGRAM

Abdi İbrahim Otsuka (AİO), which continues its communication activities intensively, launched the pages “gormezdengelmeyelim” (do not ignore) and “otizmailem” (my autism family) on Instagram in order to reach more people with the correct information about schizophrenia and autism.

LET OUR NAME BE GOODNESS!

Abdi İbrahim Otsuka (AİO) continues to carry out its social responsibility projects with the “Let Our Name Be Goodness” brand. In this context, "the Courage Group" organized a campaign in order to provide support to the village schools with books and stationery for the 2018-

2019 Academic Year. Saying “knowledge is courage and knowledge is power”, AİO team collected books and start of school stationery supplies along with Abdi İbrahim and AİO employees and delivered them to schools.

“DON’T FORGET ME, EVEN IF I FORGET YOU”

Drawing attention to Alzheimer's disease and contributing to awareness in respect of the disease with the “Don’t forget me, even if I forget you” campaign, Abdi İbrahim Alzheimer’s team Hercules has undertaken the sponsorship of the press conference, which was held by the Turkish Alzheimer's Association on the World Alzheimer's Day, also in 2017, as it did in 2016.

The participation rate of both national and sectoral press to the meeting, which was held in Istanbul on September 19th, was very hig. The Alzheimer's Voice Choir, which was created with the joint participation of the patient and patient relatives choir of “Kadıköy Alzheimer Center” and the “Ortaköy Gönül Dostları (Soul Friends) Turkish Music Ensemble” attracted great attention at the meeting. Having broken new ground with this choir established to attract the attention of the society to Alzheimer's disease, Abdi İbrahim organized a mini concert with the theme of “Forgetting” at the end of the press conference. Having had widespread press coverage, the meeting was held with the participation of the choir, during a period, where the positive effects of art and music on Alzheimer's disease were proved through studies.

Alzheimer's Voice Choir gave a mini concert at Abdi İbrahim Tower on September 21st, World Alzheimer's Day. Abdi İbrahim family watched the concert held in the cafeteria on the fifth floor, with interest.

PUBLIC MEETINGS ON WORLD ALZHEIMER'S DAY

The Abdi İbrahim Hercules team held public meetings with the Turkish Alzheimer's Association as another event on September 21st, World Alzheimer's Day. The public meetings, which have been organized to raise awareness about the disease, and to bring patients and their relatives together with specialist doctors to ensure that they can share their problems outside the polyclinic, attracted great attention.

The meetings in Bayrampaşa, Kağıthane and Bakırköy Municipalities in Istanbul were held under the leadership of Assoc. Prof. Dr. Başar Bilgiç, Assoc. Prof. Dr. Barış Topçular

and Specialist Dr. Erdi Şahin, respectively; whereas the meetings held in Marmara Training and Research Hospital in Kadıköy and in İzmir were held under the leadership of Prof. Dr. Neşe Tuncer and Assoc. Prof. Dr. Özge Yılmaz Küspeci, respectively. Saying “It is not normal to forget in old age” at these meetings, the Hercules team reached about 1,000 patients and their relatives.

LYMPHOMA DISEASE AWARENESS MARCH

Abdi İbrahim Hematology and Oncology team carried out a symbolic march with the slogan “We Walk Against Lymphoma” in order to raise awareness about lymphoma in the society within the scope of the meeting organized by the Association of Leukemia Lymphoma Myeloma Patients and Research Training Association (LLMBİR) on September 16th in Ankara. Held to emphasize immobility, which is considered to be one of the most important causes of the disease, the march was accompanied by a marching band and participated by 510 registered people.

IRON DEFICIENCY AWARENESS CAMPAIGN

Abdi İbrahim, which has the largest iron portfolio in the country, continues its activities to raise awareness of iron deficiency. Within the framework of the 26 November Iron Deficiency Day celebrations, a call was made out to the physicians, health workers and patients with the “be dynamic, don’t be anemic” slogan. Within the scope of the campaign supported by dozens of opinion leaders from four major associations in Turkey, the video comprising the messages of physicians was published on Abdi İbrahim's corporate accounts and reached 488.000 people. Abdi İbrahim's Asteria, Boreas, Kratos and Perseus teams, conveyed the “be dynamic, don’t be anemic” message to hundreds of physicians in the field and ensured that the physicians as well provided support to the campaign through the social media.

Abdi İbrahim allocates significant funds in its investment and budget plans for donations and aid to non-profit organizations on an annual basis.

DONATIONS AND AID (MILLION TL)

PHILANTHROPY

Abdi İbrahim continued its donations and

helps for the non-profit organizations in

2017 and 2018 as well.

2017 2018

3.79 0.47

79

Hercules team

reached about

1.000 patients and

their relatives.

Considering environmental

sustainability as an indispensable

part of its business processes, Abdi

İbrahim pays attention to protecting

the environment and continuously

healing at all stages from purchasing

to launching products.


ENVIRONMENTAL PROTECTION INVESTMENTS

RECYCLING AND WASTE MANAGEMENT

ENVIRONMENTAL IMPACT MITIGATION ACTIVITIES

ENERGY CONSUMPTION

WATER CONSUMPTION

GREENHOUSE GAS EMISSIONS

ENVIRONMENTAL APPROACH

E N V I R O N M E N T A L A P P R O A C H

82

To reduce water consumption with efficient recovery methods

To reduce paper consumption

To reduce the amount of wastes

TARGET


To minimize the energy consumption with efficiency-focused projects

To accomplish exemplary projects

AB D İ İ B R AH İM

In 2017,

47 m ³

of water was saved by increasing the number of campaigns for certain products and reducing microbiological tests at 7 water points.

In 2017 and 2018,

12.283 kgof paper was saved as a result of modifying the design of the

boxes of certain products.

Thus,

204 TREES were prevented from ge tting cut down.

In 2018, the amount of alcohol used decreased by

1.819 KG as a result of process improvement activities.

In 2018,

1.050 m ³ of water was saved by reducing the number of

annual production of certain products.

Amount of medical wastes was reduced by 240 kg as a result of reducing the number of microbiological controls of pressurized gases from two controls down to one control,

reducing the active air controls in liquid production LAF cabinets from once a week down to once a month,

and reducing the microbiological tests at seven water points.

Amounts of savings achieved in 2017 Amounts of savings achieved in 2018

43.225 M³ NATURAL GAS

3.481.200 KWH ELECTRICITY917.903 KWH OF ELECTRICITY

ACTUAL

Abdi İbrahim has created the “Umut (The Hope) Forest” with a project it has undertaken for one of its products, by planting

5.000 SAPLINGS IN THE NAME OF PHYSICIANS IN THE FOREST LANDdetermined in the Çanakkale-Lapseki region.





Abdi İbrahim, the first and only pharmaceutical company to win ÇEVKO's

Green Point Industry Award, regularly makes environmental protection

investments and carries out exemplary environmental practices.

The first and only pharmaceutical company to win Green Point Industry Award.

Abdi İbrahim considers that the environmental protection, continuous improvement, efficient use of natural resources, full compliance with legislation, prevention of pollution, reduction and sorting of the wastes generated during its activities primarily at the source, recycling and disposal of these wastes using the most appropriate methods constitute the foundation of environmental policy in all of its activities on the basis of the idea that the world we live in is borrowed from future generations.

Accordingly, Abdi İbrahim publicly declares its commitment to;

Organize training for its employees, suppliers and contractors in order to raise awareness about environmental protection,

Draw upon appropriate technologies for controlling and mitigating its potential environmental impact,

Keep up with legal and international regulations and customer requirements on the prevention of pollution, and continuously improve its environmental performance accordingly.

Abdi İbrahim, also made significant investments in environmental

protection in 2017 and 2018.

INVESTMENTS IN WASTE DISPOSAL, EMISSIONS, WATER TREATMENT AND IMPROVEMENTS

INVESTMENTS IN 2017

INVESTMENTS IN 2018

Environmental cleaning tax payments in the amounts of 62.000 TL and 68.350 TL were made respectively, in 2017 and in 2018.

PREVENTIVE MEASURES AND ENVIRONMENTAL MANAGEMENT INVESTMENTS

INVESTMENTS IN 2017 AND 2018

ENVIRONMENTAL PROTECTION INVESTMENTS

Investment

Investment

Investment

Investment Value (TL)



For collection, transportation and disposal of waste

For collection, transportation and disposal of waste

For the audits of ISO 14001 Environmental Management System and OHSAS 18001

Occupational Health and Safety Certificates

For waste water analyses

For waste water analyses

For domestic and industrial waste water treatment plant

For domestic and industrial waste water treatment plant

For emission measurement

Activities related to environmental permits such as discharge and emission permits

For emission measurement

273.092

384.632

24.000

8.140

13.100

56.196

61.350

47.750

6.600

28.538




RECYCLING AND WASTE MANAGEMENT

One key component of Abdi İbrahim’s environmental

sustainability efforts is waste management.

The Company manages its waste in accordance with the Waste Management Procedure and in line with applicable legal and regulatory requirements. The Company separates all its waste at the source and cooperates with firms licensed by the Ministry of Environment and Urban Planning to recycle or eliminate waste.

According to the Abdi İbrahim Environmental Policy, waste must be reduced, separated, recycled and correctly eliminated at the source. To this end, the Company’s production facilities implement efficient and sustainable waste management policies. Abdi İbrahim aligns its production processes with international standards of environmental protection. Abdi İbrahim’s packaging materials and raw materials used during the last two years in the manufacturing process are given below.

AMOUNT OF MATERIALS AND RAW MATERIALS USED IN MANUFACTURING (TONNAGE)

Cardboard Prospectus Plastic Glass Aluminum

443

2.14

3

3.87

0

13.6

78

6.01

3

498

296

7.86

2

375

Unit

2.22

3

2.03

7

1.96

3

3.54

5

12.5

30

5.50

8

456

272

7.20

2

343

484

Imported packaging

Local raw material

Imported raw material

Total packaging material

Total raw material

1.94

0

1.77

7

2017

(ton)

(ton)

2018

RECYCLING PRACTICES

Abdi İbrahim recycles its product packaging in line with the targets set by the Packaging Waste Control Regulation, a part of the environmental law framework. The Company has been cooperating with the authorized institution in this field, namely ÇEVKO (Foundation for Environmental Protection and Recycling of Packaging Waste) since 2005. Additionally, it identifies and implements disposal practices as per applicable legislation.

The Company tracks the amount of total waste and natural resource consumption per unit and shares the results with all employees via the Abdi İbrahim intranet portal. The amount of packaging recycled from products on the market for the last two years as well as the amount of recyclable waste generated in the factory are given below.

AMOUNT OF RECOVERY OF THE PRODUCTS ON MARKET (KG)

AMOUNT OF RECYCLED WASTE IN THE FACTORY

WASTE DISPOSAL PRACTICES

In accordance with its Waste Management Procedure Abdi İbrahim separates and collects all waste at the source and transfers it to licensed firms, as stipulated by law. Waste such as paper, plastic, glass, metals and blister, as well as hazardous waste such as electronic waste, drums and casks, are dispatched to recycling plants, and those which need to be eliminated are sent to incineration facilities.

As the production increased by 4% in 2017 compared to the previous year, there has been an increase by 21%, 31.60%, 27.13%, 16.42%, and 2%, respectively in paper-cardboard wastes, plastic wastes, glass wastes, metal wastes, and other wastes (cartridges, accumulators, batteries, electronics, etc.); whereas there has been a decrease by 15%, and 6%, respectively in the amount of barrel-cask-canister wastes and blister wastes. In 2017, there has been a 10.71% increase in total amount of

1.33

2.64

2

24.3

203.

813

393.

940

123.

390

131.

390

27.0

83

62.6

3084

7.23

9

107.

756

1.18

2.55

0

36.3

002.

218

329.

260

122.

020

111.

153

20.8

37

59.2

4076

6.06

1

105.

870

2017

(kg)

(kg)

(kg)

(kg)

2018

Paper/Cardboard

Paper/Cardboard

Glass

Other (cartridge, misc., bat teries,

electronics)

Plastic

Plastic

Metal

Total

Blister

Drums and casks




wastes compared to the previous year due to the increase in production.

As the production increased by 9% in 2018 compared to 2017, there has been an increase by 16.42%, 1.11%, 5.41%, by 41.83, 1.75%, 15.40%, respectively in paper-cardboard wastes, plastic wastes, metal wastes, other wastes (cartridges, accumulators, batteries, electronics, etc.), %, barrel-cask-canister wastes, and blister wastes; whereas there has been a decrease by 28.80% in the amount of glass wastes, as the glass wastes allocated for disposal has been decreased. In 2018, the total amount of recyclable wastes increased by 10.59% compared to the previous year due to the increase in production.

In 2017, with the environmental improvements made in the laboratories, the amount of hazardous wastes decreased by 28%. Wastewater sludge wastes did not occur in the wastewater treatment plant in 2017 as well. Concerning other hazardous wastes with disposal costs, there has been an increase by 34%, 7%, and 38%, respectively, in contaminated packaging wastes, dust and effluents (dust

collected in dedusters and wastes from oil separators), and fluorescent lamps, whereas there has been a decrease by 15% in contaminant filters, and by 10% in solvent-containing laboratory waste waters with the introduction of the portioning system in laboratories. In 2018, concerning hazardous wastes with disposal costs, there has been an increase by 48%, 33%, and 9%, respectively, in contaminated packaging wastes, solvent-containing laboratory waste waters, and contaminant filters, whereas there has been a decrease by 3% and 14%, respectively, in dust and effluents (dust collected in dedusters and wastes from oil separators), and fluorescent lamps. Wastewater sludge wastes did not occur in the wastewater treatment plant also in 2018.

Actual production volume

Actual volume of hazardous waste

229.

511

246.

617

250.

362

328.

306

(unit×1,000) (kg)

MANUFACTURING AND WASTE AMOUNT

2017 2018

The amount of hazardous and non-hazardous waste depending on the actual manufacturing amount of the last two years are given below.

AMOUNT OF RECYCLED WASTE IN THE FACTORY

There are no creeks, lakes, other surface water resources, nor sources or water leaks in the vicinity of the Abdi İbrahim Production Facilities. Solvent-containing waste water from labs is defined as process and house waste water. The waste

water from Company labs is collected separately and sent to licensed recycling plants. Process and house waste water, on the other hand, is treated at the waste water plants and duly discharged.

2017 2018

Solvent containing waste water

Recycling Recycling Recycling

PlasticDrums and casks

WASTE TYPE (KG)

DISPOSAL METHOD

122.

020

123.

390

105.

870

107.

756

29.3

20

38.9

64

Fluorescent lamps

Recycling Recycling

Blister

Other (car tridge, misc. bat teries, electronics)

Dis. ( incineration)

WASTE TYPE (KG)

DISPOSAL METHOD

2.21

8

3.81

3

254

219

111.

153

131

.390

Contaminated filters Treatment

sludgeHouse waste

Recycling

Glass


Recycling Depolama

WASTE TYPE (KG)

DISPOSAL METHOD

6.45

3 0

7.06

4 0

307.

870

336.

102

36.3

00

24.

320

Dust and fluid waste

Recycling Recycling

Paper/Cardboard Metal


WASTE TYPE (KG)

DISPOSAL METHOD

329.

260

28.4

62

59.2

40

393.

940

27.6

33

62.6

30




ENVIRONMENTAL IMPACT MITIGATION ACTIVITIES

Abdi İbrahim achieved significant savings also in 2017 and 2018, thanks to

the projects implemented in line with the suggestions of the employees.

The following savings and waste reductions have been realized as a result of the projects realized in line with the suggestions of the employees. This also implies that natural resource consumption is also reduced.

In 2017, Abdi İbrahim replaced the 2.200 cars equipped with manual transmission, which were used by the sales team, with a model equipped with automatic transmission, resulting in fuel savings of 0.7L/100 km for each vehicle and 1.540L/100 km in total.

In 2017, 3.481.200 kWh of electricity savings were achieved thanks to the procurement of a high-efficiency Chiller radiator assembly and a compressor with frequency converter, and to the recovery of heat through implementation of recirculation in System 6.

In 2017, 47 m³ of water savings were achieved by increasing the number of campaigns on certain products and reducing the microbiological tests at 7 water points.

In 2017, 43.225 m³ of natural gas savings were achieved by means of recovery of heat through implementation of recirculation in System 6.

In 2017, 1.793 kg of paper was saved as a result of modifying the design of the boxes of certain products.

In 2018, 47.560 kWh of electricity savings were achieved by replacing the primary packaging area fluorescent lamps with led lighting, on the other hand, 870.343 kWh of electricity savings were achieved by procurement of a high-efficiency Chiller radiator assembly and a variable speed compressor.

In 2018, 11.855 kg of paper was saved as a result of modifying the design of the boxes of certain products.

In 2018, the amount of IPA used was reduced by 1.819 kg as a result of the process improvement activities.

ENERGY CONSUMPTION

Abdi İbrahim attaches great importance to the efficient use of natural energy

resources, and constantly improves this area through its Energy Board.

Dedicated to rendering its corporate structure more sustainable by using natural energy resources efficiently, Abdi İbrahim works through the internal Energy Committee to ensure continuous progress in this field. The Committee is composed of directors, managers, engineers and technicians, and has sub-committees composed of 67 members. These sub-committees are supported by the entire technical staff by their respective specialization. The Committee is responsible for organizing meetings according to new projects, changes in ongoing projects and issues identified by the Energy Manager, assigning duties to sub-committees according to saving targets and evaluating their work, and setting new targets. The Committee holds at least two general assessment meetings per year.

In its investment decisions, Abdi İbrahim receives energy consultancy and carries out its activities under the supervision of specialists. The savings projects that support the Company’s environmental policy change constantly in line with its life cycle.

DIRECT ENERGY CONSUMPTION PER ENERGY SOURCE

Natural gas, electricity, diesel and water consumption values for the years 2017-2018 are given in the tables and graphics below. Diesel fuel is regularly consumed by generators in case of power outages, however 1,760 liters and 1,955 liters of diesel fuel were used for outdoor forklifts, respectively in 2017 and in 2018.

AMOUNTS OF NATURAL RESOURCES CONSUMPTION

2.37

0.52

4

2.62

8.18

3

78.0

67

30.1

50

29.5

93.1

67

36.4

64.8

89

148.

156

192.

172

NATURAL GAS (m³)

DIESEL ( lt)

ELECTRICITY (kWh)

WATER (m³)

2017 2018




There was a 4% increase in production compared to the previous year in 2017, which resulted in a 6.71% increase in natural gas consumption, 10.72% increase in electricity consumption, and 9% increase in water consumption. On the other hand, diesel fuel consumption decreased by 61.35% due to less power cuts were experienced in 2017 compared to 2016.

There was a 9% increase in production in 2018 compared to the production in 2017, which resulted in a 10.8% increase in natural gas consumption, 23.22% increase in electricity consumption, and 29% increase in water consumption. On the other hand, diesel fuel consumption decreased by 61.37% due to less power cuts were experienced in 2018 compared to 2017.

In the selection process of electricity suppliers, the use of renewable resources is considered as a priority. The following table shows the distribution of renewable energy sources through which the power used by Abdi İbrahim has been generated:

LİMAK ENERJİ/PRODUCTION & SUPPLY PROJECTION (%)

MEASURES TO REDUCE ENERGY CONSUMPTION AND INCREASE EFFICIENCY

The specific value in 2015, which was 15.1 TEP/million unites, was realized as 14.3 TEP/million unites in 2016, 15.2 TEP/million unites in 2017, and 15.4 TEP/million unites in 2018.

2017 2018

Renewable

Other

10

90 90

10

WATER CONSUMPTION

At Abdi İbrahim Manufacturing Plants, membrane

technology is used for the treatment of waste water.

The performance of the plant is monitored on a daily basis by the laboratory established in the waste water treatment facility. Some parameter values analyzed at the facility entrance and exit in 2017 and 2018 are given below.

The wastewater values discharged from the wastewater treatment plant by years are given in the table below. In addition, the water supplied from the wells is passed through the İSKİ (Istanbul Water and Sewerage Administration) meters. The amounts of water passed through İSKİ meters in the last two years is given in the table below.

2017

2018

32 255

40 272

BOI5 (mg/lt) KOI (mg/lt)

115.

031

48.0

23

30.1

0818

.086

145.

748

7.88

121

.073

20.5

77

128.

007

59.4

38

40.1

2910

.237

194.

668

45.0

5015

.099

24.7

15

Well 1

Well 4

Well 6

Total

Well 3

Well 5

İSKİ LineWaste water discharge (m³)

2017 2018




GREENHOUSE GAS EMISSIONS

Abdi İbrahim is conducting systematic studies to reduce the

carbon emissions arising from its activities.

With close monitoring of activities conducted on a global scale as part of the fight against global warming, Abdi İbrahim works systematically to reduce CO2 emission from its operations. The Company utilizes the IPCC Methodology described in the “Greenhouse Gas Emission Inventory Workgroup Draft Report of 2006” published in April, 2006, by the Ministry of Environment and Urban Planning.

According to the emissions report prepared by an audit organization upon the request of Abdi İbrahim in 2013, emissions values are below legal limit values.* Carbon emission arising from the Abdi İbrahim Production Facilities due to the use of natural gas was calculated as 2101 tons/year for 2017 and as 2294 tons/year for 2018, respectively. CH4, NOx, CO amounts were calculated as 747.3 tons/year for 2017, and as 641.2 tons/year for 2018, respectively.

Between 2014 and 2018, there was no consumption of R22 gas, which is among the gases that are harmful to the ozone layer.

The production facilities use natural gas as fuel and online gauges installed at the steam furnace chimneys monitor chimney gases released into the atmosphere around the clock.

The average measurements are as follows:

* CO, NO2 values can be traced online within Abdi İbrahim. Other

emissions are evaluated in the emission reports prepared based

on the instant measurements performed biannually. Emission

measurements of the Chemical Production Plant has been carried

out in 2017, whereas emission measurements of the new AbdiBio

Biotechnological Production Plant has been carried out in 2018.

60 mg/Nm³

0 mg/Nm³

0 mg/Nm³

NO2

CO

SO2

WE ARE ACCOUNTABLEBecause we are aware that each of

us affects everyone, and we know

our responsibility that we carry for

a healthier society, a more livable world.

Abdi İbrahim never compromises its

product quality and takes legal and

ethical values into consideration in all

of its processes ranging from clinical

research to licensing.

MEDICAL

CLINICAL RESEARCH

PRODUCT SAFETY (PHARMACOVIGILANCE)

LICENSING AND MARKET ACCESS

PRODUCT INFORMATION HOTLINE

PRODUCT AND

SERVICE LIABILITY


TARGET

P R O D U C T A N D S E R V I C E L I A B I L I T Y

To develop products through industry-university cooperation

To establish an internationally recognized pharmacovigilance system Total number of audits carried out by Ministry of Health and licensing companies during 2017 and 2018: 2

To develop new products

To carry out studies for public health

ACTUAL

Abdi İbrahim and Ege University Faculty of Pharmacy have collaboratively

DEVELOPED A WOUND CARE DRESSING.

HBVIZYON PROJECT WAS LAUNCHED against Hepatitis B, which is a major health problem in Turkey.

To fully comply with legal regulations in force in the area of product liability 0Number of cases in violation of the Pharmaceuticals Sector Marketing Legislation

To respond to the inquiries of patients and healthcare personnel about product use fully and rapidly 1.118Total number of adverse reactions and medical information

questions answered via product hotline or e-mail in 2017 and 2018:

In 2018, the license for Abdi İbrahim's

F I R S T B I O S I M I L A R P R O D U C T I N T U R K E Y

was acquired.

In 2017 and 2018,

2 8 7 L I C E N S E S

were acquired in international markets in

4 0 C O U N T R I E S .

In 2017 and 2018 a total of

5 3 L I C E N S E S have been acquired for human medicinal

products in Turkey in addition to the licenses acquired for

8 F O O D S U P P L E M E N T S and

2 M E D I C A L D E V I C E S .

2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 100 1012017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM AB D İ İ B R AH İM 100 101


MEDICAL

The departments included under the umbrella of the Medical Directorate are the Medical Directorate, Clinical research and Pharmacovigilance Departments, which are involved in all the activities of national and international markets.

BUSINESS DEVELOPMENT AND NEW PRODUCTS

The Medical Directorate contributes to the evaluation of company strategies in the Business Development Department in line with the growth strategies in a timely manner, in parallel with the ideas from the scientific world and the new treatment trends.

Accordingly, the wound care dressing, which is the first medical device in the world to be released as a formulation, was developed in cooperation with Abdi İbrahim and Ege

University Faculty of Pharmacy. The wound dressing, which will be a successful example of industry-university cooperation, is planned to be released to the market for the use of end-users by the end of 2019. First of all, it is among the priority plans and objectives of the Medical Directorate to conduct studies to demonstrate the efficacy of the product against all wounds over time, the studies of which continue in respect of the treatment of diabetic foot wounds, a chronic health problem affecting one out of every 7-8 diabetic patients, and thus to provide a preventive and therapeutic treatment against an important public health problem.

TRAINING

The Medical Directorate is responsible for the trainings of newly recruited medical promotion representatives and marketing staff with respect to basic medical training, pharmacovigilance training, training of ethics and compliance to the rules, promotional activities training and product trainings.

Contributing to all scientific and product promotion meetings held throughout the year, through participating in, and contributing to, the congresses and symposiums, also for external stakeholders, by sharing of information obtained from advisory boards, and publishing the results of clinical trials, the Medical Directorate works closely with all health sector members, including the scientific and academic community. In addition, the Medical Directorate contributes to the awareness of the society by sharing brief informative articles on occasion of the awareness days concerning public health about the relevant diseases and general treatment principles. One

Medical Directorate, which is the mirror of Abdi İbrahim’s compliance of ethical rules,

conducts strategic partnerships within and outside the company on a wide range of business

based on compliance with ethical values and rules.

Ideas and trends from the scientific word are followed.

of the important projects in this regard is the HBVizyon Project, which is unconditionally supported by Abdi İbrahim and shaped under the leadership of Medical Directorate, against Hepatitis B disease, a major health problem in the country. With this project, it is aimed to increase hepatitis B screening rates in immunosuppressive patients that will receive immunosuppressive treatment at major universities and research hospitals throughout the country as well as to implement prophylaxis without delay, and successful application examples have been exhibited aiming to evaluate the patients in terms of the HBV risk and preventing possible Hepatitis B reactivations in this way.

PROMOTION

The Medical Directorate continues its activities throughout the year in order to prepare the content and messages of all scientific materials used by Abdi İbrahim sales team, to have the content and messages of all these scientific materials pass the audits in accordance with SPC (Summary of Product Characteristics) information and promotional regulations, and to communicate the current and objective disease and treatment data to healthcare professionals. The Directorate, which has awarded compliance to the sponsorships of more than 1,000 scientific and product promotion meetings, contributes to these meetings through producing scientific content. The Directorate also provides support for communicating the scientific discussions to a large number of healthcare professionals throughout the country in line with the Abdi İbrahim Code of Promotional Practice.

Besides all these, the Medical Directorate plays a leading role in regulations proposed by TİTCK (Turkish Medicines and Medical Devices Agency) and in determining the sector ethics and rules of the pharmaceutical industry, both in terms of medical products and medical devices and cosmetics, in line with Abdi İbrahim's sectoral leadership, within the context of the Pharmaceutical Industry Employers' Association, under which Abdi İbrahim carries out activities as a member.



CLINICAL RESEARCH

Abdi İbrahim consistently increases the budget it allocates to clinical research every year. Within the scope of these studies, materials taken from volunteer people are used when necessary. Since these studies concern key medical ethics issues, such as the protection of rights, health and well-being of these volunteers, Abdi İbrahim carries out such clinical research in a highly meticulous manner. To this end, the Company conducts all of its clinical research in compliance with Good Clinical Practices (GCP) as well as with applicable Ministry of Health legislation such as the Regulation on Clinical Research. Furthermore, in conjunction with international legislation, the approval of the Ethics Committee and Competent Authorities is acquired prior to the initiation of clinical research projects.

In the field of clinical trials, which is divided into four phases according to the nature of the research, Abdi İbrahim has conducted retrospective and observational studies in various areas as of 2017. The results of these studies were presented both in national and international scientific platforms and published in medical journals. The Company, which conducts the approval applications of the Phase 3 trials to be launched in EU countries and Russia in 2018, also provided partial support to some of the “Researcher Initiative Clinical Research” requests coming from doctors and which are in compliance with the regulations.

Abdi İbrahim periodically continues its clinical research aimed at

finding new treatment methods, and developing or comparing the

existing treatment methods

PRODUCT SAFETY (PHARMACOVIGILANCE)

Abdi İbrahim’s, which considers product safety (pharmacovigilance) an indispensable principle, Pharmacovigilance Department that is accessible 24/7 contributes to the safe use of its products by carrying out its activities for product safety in line with the legal requirements and company procedures. The Company, recording all kind of safety information about the medicines in its product range, continuously evaluates the risks and benefits of the products during the life cycle of the product.

In issues related to product safety, Abdi İbrahim uses the “Regulation on the Safety of Medicines” as well as other related guidelines issued by the Turkish Republic Ministry of Health as a reference, whereas in its export operations Abdi İbrahim pays utmost attention to compliance with the pharmacovigilance laws and regulations of the relevant countries.

In addition to complying with domestic and international laws, Abdi İbrahim considers that it is an ethical responsibility to monitor all undesired effects of its products, while abiding by patient data confidentiality. The Company thus duly issues reports analysing the safety data of products as well as other safety reports and delivers these to the relevant ministry. Conducting internal training activities in line with the continuous improvement approach, the Company provides comprehensive product safety (pharmacovigilance) training to the personnel of third party firms within its sphere of influence.

AUDITS PERFORMED BY COMPANIES AND AUTHORITIES

Abdi İbrahim pharmacovigilance system is subject to the audit of the Turkish Republic Ministry of Health as per legal regulations. In this context, Abdi İbrahim pharmacovigilance system carries out its activities within the framework of the relevant legislation in accordance with the principles of “Good Pharmacovigilance Practices”. This system, which regularly undergoes internal audit as specified in the company procedures, was audited in the years of 2017-2018 by two foreign firms and found successful. These practices have a significant role in the improvement of the system.

Pharmacovigilance system of Abdi İbrahim, which considers product safety as one of its indispensable

principles, was subjected to auditing by two companies in 2017-2018 and found successful.



LICENSING AND MARKET ACCESS

Abdi İbrahim conducts all of its business processes in line with applicable legislation in Turkey and closely monitors regulations and guidelines issued by international health organizations as well. Preparation of the license file of human medicinal products containing chemical and biological active substances, making the license application, following up the evaluation process of health authorities in Turkey and in the relevant country, approval of the license, obtaining, cancellation or transfer of the authorization of sale, monitoring the timeliness of the files of the marketed products, applying for the necessary variations, and all follow-up stages of the approval process are all carried out by the Regulatory Affairs Department. Preparation of application dossiers for products included in the categories of cosmetics, medical devices and food supplements in addition to medicinal products for human use, obtaining the approvals for the said products and supporting the market release processes of these products are also under the responsibility of the Regulatory Affairs Department.

It is the responsibility of the Market Access Department to quote a price for the new product at the licensing stage and to ensure its acceptance to the list through submission of its reimbursement application after obtaining its license, to introduce this new product into the electronic recipe systems, to follow-up of its distribution documents, and other processes apart from the foregoing in respect of granting the use of the new product.

The price movements of molecules and products that are available in the market and approved by the Ministry to be released to the market are followed up, and the necessary actions for the affected products are also taken by the

Market Access Department. In years 2017 and 2018, a total of 69 products/forms were included in reimbursement scheme, whereas in 64 products there has been additional price increases. Operating in eight countries other than Turkey with its own company, factory and/or sales force and exporting to more than 60 countries, Abdi İbrahim’s products are licensed in various countries throughout the world by International Markets Regulatory Affairs Department within the Directorate.

In 2017 and 2018, in Turkey, a total of 53 licenses were obtained for human medicinal products including the license for the first biosimilar product, in addition to the licenses obtained for 8 food supplements and 2 medical devices. On the other hand, 287 licenses in 40 countries in international markets were obtained. Additionally, within the scope of the localization project of strategic importance, manufacturing production approval of 3 imported products obtained. Within the scope of the GMP (Good Manufacturing Practices) auditing requirement enforced on the import license applications by the Turkish Republic Ministry of Health in 2009, the Ministry of Health conducted audits for 9 manufacturing plants located abroad in 2017 and 2018, and the GMP certificates of 18 products manufactured in these plants were issued. In addition, GMP renewal applications were submitted for 24 products and necessary approvals were obtained.

Abdi İbrahim continues its product licensing processes,

one of the most important pillars of its business processes,

within the framework of legal regulations and ethical values.

PRODUCT INFORMATION HOTLINE

Abdi İbrahim provides 24/7 service to the patients/patient relatives and health professionals regarding the product adverse reaction notifications and quality complaints through the pharmacovigilance and medical information hotline it has established within its own institution. Attaching great importance to the expectations and suggestions of its stakeholders, the Company appointed the Quality Operations Group Directorate for quality complaints, the Medical Directorate for medical information, and the Pharmacovigilance Department for adverse reaction notifications.

The Company has set up the telephone number +90212 366 84 00 for stakeholder communication during the working hours, and has also a mobile phone number, fax number and e-mail address that is available 24/7.

Abdi İbrahim, which is committed to developing relations based on mutual

communication and transparency with its stakeholders, serves 24/7 with its

pharmacovigilance and medical information hotline.

106 2017 - 2018 SUSTA INAB I L I TY REPORTABD İ İ BRAH İM 106

GRI STANDARD DISCLOSURE PAGE NUMBER / LINK

GRI 101: FOUNDATION 2016GENERAL CLOSURE

GRI 102: GENERAL CLOSURE 2016 ORGANIZATIONAL PROFILE

102 - 1 Abdi İbrahim İlaç San. Tic. A.Ş.

102 - 2 11, 12

102 - 3 75

102 - 4 11,12

102 - 5 19

102 - 6 36, 37

102 - 7 11, 12, 17

102 - 8 46, 48

102 - 9 3

102 - 10 11 - 12, 39

102 - 11 Risk Management and Internal Control Mechanism: 24

Business Ethics: 24, https://www.abdiibrahim.

com.tr/en/about-us/our-business-ethics-

principlesOccupational Health and Safety: 45, 46Climate and Energy: 60-63

102 - 12 25, 26

102 - 13 25, 26

STRATEGY

102 - 14 4, 5

102 - 15 6, 7, 24

ETHICS AND INTEGRITY

102 - 16 13, 23

102 - 17 24

GOVERNANCE

102 - 18 19 - 22

102 - 19 19 - 22

102 - 20 9, 19

GRI CONTENT INDEX

2017 - 2018 SU STA IN AB I L I TY R EPORTAB D İ İ B R AH İM 107AB D İ İ B R AH İM 107

GRI STANDARD DISCLOSURE PAGE NUMBER / LINK

GRI 200: ECONOMIC STANDARD SERIESPROCUREMENT PRACTICES

GRI 103: MANAGEMENT APPROACH 2016

103 - 1 10, 39

103 - 2 19 - 25

103 - 3 19 - 25

GRI 204: PROCUREMENT PRACTICES 2016

204 - 1 39

GRI 102: GENERAL CLOSURE 2016 STAKEHOLDER

ENGAGEMENT

102 - 40 25

102 - 41 45

102 - 42 10

102 - 43 10

102 - 44 10

REPORTING PRACTICES

102 - 45 8

102 - 46 8

102 - 47 10

102 - 48 None

102 - 49 None

102 - 50 2017 - 2018

102 - 51 2016 - 2017

102 - 52 Biennial

102 - 53 8, 76

102 - 54 8

102 - 55 69 - 75

102 - 56 None

For the GRI Materiality Disclosures Service, the GRI Services Team reviewed the clear demonstration of the GRI content index and the compatibility of indicator references numbered 102-40 to 102-49 with the relevant sections in the main content of the report. The service was performed on the Turkish version of the report.


GRI 300: ENVIRONMENTAL STANDARD SERIESMATERIALS


103 - 1 57 - 58

103 - 2 10, 56 - 58

103 - 3 10, 56 - 60

GRI 301: MATERIALS 2016 301 - 1 58

ENERGY


103 - 1 57, 60 - 62

103 - 2 56 - 63

103 - 3 56 - 63

GRI 302: ENERGY 2016 302 - 1 60 - 62

302 - 3 60 - 62

302 - 5 60 - 62

WATER


103 - 1 57, 62 - 63

103 - 2 62 - 63

103 - 3 62 - 63

GRI 303: WATER2016 303 - 3 57 - 63

EMISSIONS


103 - 1 57, 63

103 - 2 63

103 - 3 63

GRI 305: EMISSIONS 2016 305 - 1 63

305 - 2 63

305 - 5 63

EFFLUENTS AND WASTE


103 - 1 57 - 60

103 - 2 57 - 60

103 - 3 57 - 60


GRI 306: EFFLUENTSAND WASTE 2016

306 - 2 57 - 60

GRI 400: SOCIAL STANDARD SERIESEMPLOYMENT


103 -1 40 - 48

103 -2 40 - 48

103 -3 40 - 48

GRI 401: EMPLOYMENT 2016 401 - 3 47

OCCUPATIONAL HEALTH AND SAFETY


103 - 1 45 - 46

103 - 2 45 - 46

103 - 3 45 - 46

GRI 403: OCCUPATIONALHEALTH AND SAFETY 2016

403 - 1 45 - 46

403 - 2 46

TRAINING AND EDUCATION


103 - 1 41 - 46

103 - 2 41 - 46

103 - 3 41 - 46

GRI 404: TRAINING EDUCATION 2016

404 - 1 40, 42, 44, 45

404 - 2 41 - 43

404 - 3 41 - 46

DIVERSITY AND EQUAL OPPORTUNITY


103 - 1 44 - 45

103 - 2 44 - 45

103 - 3 44 - 45

GRI 405: DIVERSITY AND EQUALOPPORTUNITY 2016

405 - 1 19, 44 - 48


UNITED NATIONS GLOBAL COMPACT

Abdi İbrahim, which has signed the United Nations Global Compact in 2010, reaffirms its commitment to this end. The 2017-2018 Sustainability Report is the UN Global Compact 9th Progress Statement issued by Abdi İbrahim.

The performance of the Company recorded during the reporting period is summarized within the scope of 10 Principles in the table below and the relevant section references are presented.

GLOBAL PRINCIPLES

HUMAN RIGHTS

PRINCIPLE 1: Businesses should support and respect the protection of internationally proclaimed human rights.

Management Mentality, p. 18-30

PRINCIPLE 2: Make sure that they are not complicit in human right abuses


PRINCIPLE 3: Business should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Human Resources Practices, p. 40-48

LABOR

PRINCIPLE 4: The elimination of all forms of forced and compulsory labour.


PRINCIPLE 5: The effective abolition of child labour. Human Resources Practices, p. 40-48

PRINCIPLE 6: The elimination of discrimination in respect of employment and occupation.


ENVIRONMENT

PRINCIPLE 7: Business should support a precautionary approach to environmental challenges.

Çevre Yaklaşımı, p. 56-63

PRINCIPLE 8: Undertake initiatives to promote greater environmental responsibility.


PRINCIPLE 9: Encourage the development and diffusion of environmentally friendly technologies.


ANTI-CORRUPTION

PRINCIPLE 10: Business should work against corruption in all its forms, including extortion and bribery.


(UNGC) 9th Progress Statement


WOMEN'S EMPOWERMENT PRINCIPLES

Placing great importance on the support and employment of women, Abdi İbrahim has signed the Women's Empowerment Principles (WEPs) document on January 16th, 2017, which is a private sector initiative of United Nations aiming to strengthen women to ensure that they

can take place in economic life in all sectors and at all levels. The performance of the Company recorded during the reporting period is summarized within the scope of 7 Principles in the table below and the relevant section references are presented.

PRINCIPLE 1: High-Level Corporate Leadership for Gender Equality Management Mentality, p. 18-30, 44-48

PRINCIPLE 2: Equal Opportunity, Participation and Nondiscrimination Human Resources Practices, p. 40-48

PRINCIPLE 3: Health, Safety, and Freedom from ViolenceHuman Resources Practices, p. 40-48There were no incidents of discrimination reported in Abdi İbrahim during the reporting period.

PRINCIPLE 4: Education and Training Human Resources Practices, p. 41, 46

PRINCIPLE 5: Enterprise Development, Supply Chain and Marketing Practices

Financial and Operational Processes, p. 31-39

PRINCIPLE 6: Community Leadership and Participation Human Resources Practices, p. 40-48

PRINCIPLE 7: Measurement and Public Reporting on Gender Equality Human Resources Practices, p. 40-48

(WEPs) Progress Statement


SUSTAINABLE DEVELOPMENT

GOALS

At the Sustainable Development Summit held in September 2015 at the United Nations Headquarters in New York, 2030 Sustainable Development Goals comprising 17 articles, were adopted with the signature of 193 countries. Abdi İbrahim has projects and practices that serve all 17 objectives either directly or indirectly. The Company is committed to always follow up on these global goals and to prioritize activities that will support these goals. The performance of the Company recorded during the reporting period is summarized within the scope of 17 Principles in the table below and the relevant section references are presented.

SUSTAINABLE DEVELOPMENT GOALS

NO POVERTY


ZERO HUNGER


GOOD HEALTH AND WELL-BEING

Human Resources Practices, p. 40-48Contribution to Social Development, p. 49-55

QUALITY EDUCATION


GENDER EQUALITY


CLEAN WATER AND SANITATION

Environmental Approach, p. 56-63

AFFORDABLE AND CLEAN ENERGY


DECENT WORK AND ECONOMIC GROWTH

Financial and Operational Processes, p. 31-39Human Resources Practices, p. 40-48

INDUSTRY, INNOVATION, AND INFRASTRUCTURE

Management Mentality, p. 18-30Financial and Operational Processes, p. 31-39

REDUCED INEQUALITIES


SUSTAINABLE CITIES AND COMMUNITIES

Abdi İbrahim at a Glance, p. 11-17Financial and Operational Processes, p. 31-39


RESPONSIBLE CONSUMPTION AND PRODUCTION


CLIMATE ACTION

Environmental Approachı, p. 56-63

LIFE BELOW WATER

Environmental Approachı, p. 56-63

ENVIRONMENTAL


PEACE, JUSTICE AND STRONG INSTITUTIONS

Financial and Operational Processes, p. 31-39Human Resources Practices, p. 40-48Contribution to Social Development, p. 49-55

PARTNERSHIPS

Abdi İbrahim at a Glance, p. 11-17


MASTHEAD ABDİ İBRAHİM CONTACT

For more information about Abdi İbrahim Sustainability Report, and to send your comments and suggestions:

Dr. M. Oğuzcan Bülbül - Public Affairs & Corporate

Communications Director

[email protected]

Buket Koral - Corporate Communications Supervisor

[email protected]

Esra Koca - Corporate Communications Specialist

[email protected]

İpek Duman Ökek - Corporate Communications Specialist

[email protected]

ABDİ İBRAHİM TOWER

Address: Reşitpaşa Mahallesi, Eski Büyükdere Caddesi No: 4 Maslak-Sarıyer 34467 Istanbul, TurkeyT: +90 (212) 366 84 00

F: +90 (212) 276 20 20

ABDİ İBRAHİM PRODUCTION FACILITIES

Address: Orhan Gazi Mahallesi, Tunç Caddesi No: 3 Esenyurt 34555 Istanbul, TurkeyT: +90 (212) 622 66 00

F: +90 (212) 623 19 52

CONTENT CREATION

EDİTORYAL TASARIM LTD. ŞTİ.

[email protected]

T: +90 212 939 3826

REPORT DESIGN

FM DATA İLETİŞİM

[email protected]

www.icerikvetasarim.com

T: +90 (212) 662 78 00

roundabout

[email protected]

www.roundabout.com.tr

T: +90 (212) 292 07 13

This report has been prepared in digital form and has not been

printed in order to protect the environment.

LEGAL NOTICE Abdi İbrahim 4th Sustainability Report (Report) was issued in accordance with the Global Reporting Initiative (GRI) Reporting Principles and the United Nations Global Compact (UNGC) and Women’s Empowerment Principles (WEPs) Progress Reports. The content and information contained in this Report which was prepared solely for the purpose of informing the stakeholders of Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş. were created by using the data and resources believed to be accurate and reliable at the time when the report was prepared. The information and content contained in the Report are not to be construed as any declaration, warranty, and/or commitment, and the information and content are not guaranteed to be complete and invariant. All rights of the report reserved by Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş.

2017 - 2018 SÜ R D Ü R Ü LEB İ L İR L İK R APOR UAB D İ İ B R AH İM 2017 - 2018 SÜ R D Ü R Ü LEB İ L İR L İK R APOR UAB D İ İ B R AH İM

[email protected]

www.abdiibrahim.com.tr

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