İhlas Home Appliances Inc.

İhlas Home Appliances (“IHEVA”) manufactures appliances that make life easier, and offers them to consumers across Turkey through the widespread dealer network and sales channels of İhlas Pazarlama A.Ş. (“İhlas Marketing”), the distributor company.

İhlas Home Appliances (“IHEVA”) manufactures appliances that make life easier, and offers them to consumers across Turkey through the widespread dealer network and sales channels of İhlas Pazarlama A.Ş. (“İhlas Marketing”), the distributor company. In addition, the Company exports its products mainly to Turkic Republics, and also to various countries in Europe, America, Africa and the Far East.

Since its establishment, İhlas Ev Aletleri İmalat Sanayi ve Ticaret A.Ş. (“IHEVA”) has manufactured numerous small home appliances aimed at enhancing human health, meeting basic needs and making life easier at home. With a strong technical staff, the Company continues its manufacturing operations at the Cleaning Robot Manufacturing Plant, Instant Water Heaters and Reverse Osmosis Water Treatment Plant, and the Plastic Injection Molding Plant; all housed in two facilities with an enclosed area of 21,000 m2 in the Beylikdüzü Organized Industrial Zone.

A Product Portfolio Identified With The İhlas Brand
Continuously expanding its product portfolio, IHEVA owns the Aura Cleanmax Cleaning Robot and Aura Cebilon Reverse Osmosis Water Treatment System, both of which are identified with the Company. With its İhlas and Aura branded products, which are used by millions of households, IHEVA is the leader of the instant electric water heaters market and has a strong position in the sector.

İhlas Ev Aletleri, always a pioneer in the sector, confirmed the quality of the Aura Cebilon Reverse Osmosis Water Purifying System with the NSF (National Sanitation Foundation) certificate, an outcome of three years of hard work and effort. Founded 55 years ago, NSF is an independent, non-profit certification and testing body that develops standards for a series of domestic and industrial products. The World Health Organization (WHO) defines NFS as a Collaboration Center for Water Safety and Treatment. Placing great importance on international reputation and recognition, IHEVA has become a member of the U.S.-based Water Quality Association, the international trade association representing the water treatment industry, in order to strengthen its competence and reliability in the field of water treatment. The Water Quality Association is considered a global authority in water testing and providing training and information.

Total Quality Management Approach 
Having been formed de facto since 2005, the TQM (Total Quality Management) system was extended to cover all of the company functions, and obtained the international ISO 9001:2008 certificate in 2012.

IHEVA holds national and international quality certificates, including TSE, SGS, TÜV, NMI, and NSF, and manufactures products for both domestic and international markets. The Company continues efforts to obtain the CE marking in order to minimize the environmental impact of its products and to protect consumers. To that end, the Company carries out its manufacturing operations in accordance with these standards.

Collaboration With TÜBİTAK
The innovative “cleaning robot” product, which was designed and developed entirely by IHEVA’s R&D department with the support of TÜBİTAK, was launched in 2013. Standing out with its unique features such as efficiency and silent operation as well as optimal cost, this product won first prize in its category at the “Red Dot Awards,” organized in Essen, Germany. With its healthy and ergonomic design, the product surpassed 4,200 applicants and won the prize. Another product developed by IHEVA with the support of TÜBİTAK is the Reverse Osmosis Water Treatment Device. The Company has already completed the development phase of the product and plans to launch it in the first quarter of 2015 under the brand name “Cebilon.” This product won the “Best Design” award at the 2014 Design Turkey Competition.

Thanks to these high-technology products, IHEVA ranked among the top R&D spenders in Turkey according to the results of the “R&D 250” survey conducted by Turkishtime magazine in 2014.

Initiatives To Reduce Environmental Impact
IHEVA took an important step toward reducing the environmental impact of its operations and published its Carbon Footprint Report under the IS0 14064 standard. IHEVA published its first Carbon Footprint Report in 2013, for the period 2012-2013. The Company also participated in the “CDP 2014” survey and reported its carbon emissions for the period 2013-2014.

IHEVA reached the final stage in completing the necessary studies to obtain the 14001 Environmental Management System, 18001 Occupational Health and Safety Management System, and 14064 Greenhouse Gas Accounting and Verification certifications. The Company will report its efforts to reduce environmental impact during the period January 1-December 31, 2014 within the framework of the “CDP 2015” survey.

Providing Fast Solutions To Meet Customer Expectations Through Face-To-Face Marketing
IHEVA sells all of its products through the widespread dealer network and sales channels of İhlas Pazarlama A.Ş. (İhlas Marketing), the distributor company.

Through 806 service points in 75 cities, one of the most powerful distribution networks in Turkey, İhlas Marketing effectively promotes IHEVA’s products across the country and also offers reliable after-sales services.

The marketing team has extensive product knowledge and provides customers with all the information they need. The team also provides direct feedback to IHEVA about customers’ demands related to product features and functions. Thanks to this flow of information, IHEVA can instantly develop solutions to meet customers’ expectations.

IHEVA is committed to achieving high quality and speed in all of its business operations including design, production, marketing and after-sales services, and strives to meet customer expectations at the highest level possible.

Overseas Sales And Marketing Activities 
IHEVA products are sold in many countries, mainly the Turkic Republics, as well as in Europe, America, Africa and the Far East. In 2014, 67% of exports were made to Turkic Republics, 19% to EU countries, and 12% to various countries in the Middle East and the Far East.

In 2015, the target markets will be countries in America and Africa.

77.97% Free Float
The Company’s shares have been traded on BIST (Borsa Istanbul) under the ticker symbol “IHEVA” since September 26, 1996. As of year-end 2014, 77.97% of the Company’s share capital is free float. IHEVA shares have been traded on BIST NATIONAL 100 Index since October 1, 2007. The Company was also included in the BIST Corporate Governance Index on December 29, 2010.