Zorlu Holding and Vestel Electronics

Zorlu Holding

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The Vision Of The Company

Mehmet Zorlu, established their Group's first company in the early 1950s, he laid the ground rules for the Zorlu Group's subsequent growth: integrity, perseverance’ and unconditional commitment to quality. Integrity is the Group's cornerstone value and they expect it to govern every aspect of their business. Hard work and perseverance are essential for the day-to-day success of their enterprises as they are for the undertaking) of a new venture. Quality is the key to customer loyalty, on which the long-term prosperity a f all ventures depends. With these ground rules, the Zorlu Group has sought to develop solid and profitable businesses that contribute to the welfare of the Group; its customers, business partners and employees; as well as the larger community. Until the early 1990s, they focused their investments in home textiles, an activity the Zorlu family has been involved with for several generations and in which they have a particular expertise. In 1994, they saw the opportunity to employ their strong capital and human resources in the consumer electronics sector, through the acquisition of the Vestel electronics Group. This was followed, in 1996 and 1997, by investments in the fast- growing energy and financial services sectors.

Between 1990 and 1997, they tripled the number of their operations, increasing their total assets to just under US$ 1 billion, excluding the assets of five of their six subsidiaries incorporated abroad. They invested in state-of the-art spinning, weaving and textile technology that has made them the world’s largest; vertically-integrated polyester curtain producer and will propel them to the forefront of the international home textile industry in the years to come. They acquired the Vestel Group of consumer electronics companies, pushed its balance sheet from an undeserved red into the black, and set it on course to become a leading contender in the international consumer electronics markets. They established a bank, a leasing company and o factoring firm and they penetrated the power generation and electricity distribution sectors with the construction of two plants and a; competitive bid for o state- owned, plant slated for privatization.

The Zorlu Group's rapid growth since 1990 reflects the vast range of opportunities that have emerged from the unique juncture of Turkey's Customs Union with the European

Today, their operations include 32 companies in Turkey, France, Germany, Holland and South Africa in the textile, consumer electronics, finance, energy and tourism sectors. In 1997, their key operations achieved net sales of almost US$ 750 million and after tax profits of just under US$ 80 million.

That the Zorlu Group was able to choose its projects well and bring these to successful fruition during a period of significant economic and political uncertainty is a reflection of their strategic corporate vision, their sound business principles and their strong management capability.

Mehmet Zorlu, a textile manufacturer with a vision of Turkey’s textile potential long before their country had made its mark on international markets, founded the Zorlu Group of companies in the early l950s. At an early date, Mehmet Zorlu endowed the Group with o rare combination of values honesty, dedication to quality, commitment to long-term goals and the courage to take calculated risks that reward hard work. Today; these values are the foundation o f their corporate culture and constitute the basis for their key business principles unconditional customer satisfaction and mutually beneficial partnerships.

The Zorlu Group is committed to constantly improving the quality and enhancing the range of its products and services. That is why they have sought to expand their product range in the consumer goods categories where they are active and to ensure, through ceaseless research and development, that their products best reflect the demands of their consumers and the latest technological developments. Likewise, they are committed to developing strong and long-term relationships with their customers, their employees, their suppliers and their shareholders. Their aim is to provide their customers with high quality products and services, to exact specifications and on competitive terms, and they expect their suppliers to do the same for us. They also expect their human resources to be the very best in their areas of expertise, so they have set an unlimited budget for training to help them achieve this performance. First-class human resources are essential if they are to achieve the strong financial results that their shareholders deserve and which their recent performance