www.tei.com.tr PB 1 www.tei.com.tr www.tei.com.tr 2 01 www.tei.com.tr Company Profile

TEI was established in 1985 to assemble F110 engines and manufacture 12 parts of this engine powering the F16 fighters in the Inventory; and today, with more than 30-year experience and over 1800 employees as well as its total exports of over 2.7 Billion USD, it stands out as the leading company in aircraft engines industry in and a preferred and well-known brand worldwide.

TEI’s headquarters is in Eskisehir, located on an area of 505,000 square meters, with 88,000 square-meters of indoor facilities. The company also has Turkey Technology Center, a joint establishment in TUBITAK MAM Technology Free Zone, Gebze with GE Aviation as well as an Engineering Offices in Kurtkoy Istanbul TechnoPark and Hacettepe Ankara Teknokent.

www.tei.com.tr 2 01 www.tei.com.tr Our Mission

To be a leading engine manufacturer through design, production and service of globally competitive, sustainable and indigenous aviation power systems and their derivatives

Our Vision

To be globally competitive, original power systems OEM.

www.tei.com.tr 02 03 www.tei.com.tr Our Values

Appreciation and respect, trustworthiness and proactiveness enable us to make best of all to get excellent results.

Appreciation and Respect: We unconditionally appreciate, respect and treat each other, our customers, our suppliers, people and the planet with all justice.

Trustworthiness: We are always trustworthy in meeting our commitments, complying with the legal and ethical rules, acting with ultimate transparency and integrity.

Proactiveness: We take initiative to make right decisions at the right time, and we put them into action as a team. We take the initiative for making the right and timely decisions; then make it happen as a team.

Best of All: We design, offer and develop best products and services that exceed our customers’ expectations.

Excellent Results: We strive for excellence ensuring flight safety through outstanding quality of our products and services. www.tei.com.tr 02 03 www.tei.com.tr TEI Activity Areas

Engine Part and Module Manufacturing

Engine Assembly and Testing (AIT) / Engine Maintenance, Repair and Overhaul (MRO)

Engine Design and Product Development

www.tei.com.tr 04 05 www.tei.com.tr Engine Part and Module Manufacturing

TEI, having started its manufacturing activities with 12 parts in 1985, currently manufactures over 800 components for 40 different engine programs with its more than three-decade experience in part and module manufacturing.

Rotating Parts (Shaft, Seal, etc.) Modules (Power Turbine Module, Front Bearing Structure Module, etc.) Fabricated Parts (Mixing Duct, Swirl Frame, etc.) Structural Parts (Intermediate Casing, HPT Casing, Combustion Casing, etc.) Blisk and Spool Manufacturing (Compressor Stg 1 - Stg 5 Blisks, HPC Spool Shaft Stg 10-14, etc.)

TEI is the biggest supplier for LEAP and GEnx, two of the most preferred commercial engines, thanks to its manufacturing capabilities.

TEI holds qualification certificates for 47 subjects in non-destructive inspection and special processes. 39 of these are certified under 9 different NADCAP special process groups while the others are certified by customers. Among the 3694 companies accredited by NADCAP, TEI is among the top-ranking 5 companies holding the most accreditations with its 9 different special process group accreditations.

www.tei.com.tr 04 05 www.tei.com.tr Blisk and Spool Manufacturing Technologies

Blisk and spool manufacturing technologies, recently being used on new generation engines, are regarded as state of the art and advanced level applications for aviation industry.

TEI enjoys Inertia Welding and High Speed Blade Milling capabilities, which are high-tech manufacturing methods currently employed in only a few countries around the world.

Through TEI’s inertia welding technology, TEI manufactures spool from the critical rotating parts.

TEI manufactures blisks enable weight reduction and lower fuel consumption in new generation GEnx and LEAP engines by using 5-axis blade milling and Electro-Chemical Machining technologies. This provides increased engine performance and reliability.

www.tei.com.tr 06 07 www.tei.com.tr www.tei.com.tr 06 07 www.tei.com.tr Engine Assembly , Inspection and Testing (AIT)

TEI has a high-tech assembly and testing center with technological tools and fixtures, a turbofan engine test cell up to a maximum capacity of 100,000 lbs and a turboshaft/prop engine test cell up to max. 2,500 shp capacity.

F110 engines powering the F16 fighters in the inventories of Turkish Air Force Command and Oman Air Force were tested in the 100,000 lbs-capacity turbofan engine test cell and currently testing process for TF33 engines of NATO’s Airborne Warning & Control System Aircraft (AWACS) is in progress.

Moreover, the 2,500 shp-capacity turboshaft/prop engine test cell is used for testing of Makila 1A1 engines powering the Eurocopter AS532 Cougar helicopters in the inventory of Turkish Armed Force.

www.tei.com.tr 08 09 www.tei.com.tr Engine Maintenance, Repair and Overhaul (MRO)

TEI has been providing Depot-Level Maintenance (DPL) services for TF33 engines of NATO AWACS aircraft since 1999. Thanks to its successful services in this field, it was selected «Outstanding Power Plant SoR»by NATO Support Agency (NSPA) and IAMCO in 2004, 2008 and 2011.

TEI also offers ENSIP/SLEP services for the F110-100B Engines for Royal Bahrain Air Force and maintenance of the F110- GE-129C engines of is carried out at TEI facilities.

Depot-Level Maintenance of Makila 1A1 engines of the Cougar helicopters in the inventory of Turkish Armed Force is also performed at TEI.

In addition to the aforementioned operations, MRO operations for the Turkish Utility Helicopter Engine Project to be included in the inventory of Turkish Armed Force (TAF) soon will be performed at this new MRO premises; and relying on this new capability, TEI also plans to provide MRO operations for the current T700 Inventory of TAF.

www.tei.com.tr 08 09 www.tei.com.tr Engine Design and Product Development

With nearly 300 R&D engineers, TEI continues its design operations at its facilities in Eskisehir, Gebze, Istanbul and Ankara. Projects carried out within this framework include:

A400M / TP400 Engine Project:

TEI has been Risk and Revenue Sharing Partner (RRSP) with ITP- for design, development engineering and manufacturing operations of the TP400 engine project conducted by EPI (EuroProp International) Engine Consortium. Business share of TEI under this project includes design and manufacturing of the front bearing structure module and primary exhaust nozzle and cone modules.

Turboshaft Engine Development Project:

Turboshaft Engine Development Project will be carried out for 8 years by a team of approximately 250 engineers all of whom are TEI employees serving at TEI’s Engineering Offices in Eskisehir, Ankara and Istanbul. In the framework of this project; design, development and testing infrastructure for gas turbine engines will be generated in our country on one hand, and the 1400 shp original and indigenous engine with the applicable type certificate will be developed by TEI in order to be integrated into the Original Helicopter, on the other hand.

Any future derivatives of the engine may be utilized to power the indigenous platforms such as ATAK and HURKUS. Moreover; core technology of the engine will form the basis for the engine needed for “Indigenous Training/Fighter Aircraft - T/FX”, and it will be possible to develop the indigenous aircraft engine when needed, upon any necessary technological additions to the capabilities gained under Turboshaft Engine Development Project .

www.tei.com.tr 10 11 www.tei.com.tr UAV Turbojet/Turboprop/Piston Engine Projects:

As part of the projects conducted for the needs of domestic UAV platforms, the engines development stages of which have been completed and are now ongoing are: TJ35, TJ90, TP38, PD-170, PG-115, PD-155, PG-50.

Indigenous Engine Programs

TP38 Turboprop Engine: TP38 Turboprop Engine Project (shaft power: 42 hp) is the first successful UAV gas-turbine engine project in Turkey. Flight tests were successfully completed, using TAI’s Turna platform.

TJ35 Turbojet Engine: Development activities for TJ35 Turbojet engine were completed by the end of 2013 and flight tests of the 40lbf-thrust engine were completed using Futura 1.9 and T62-C platforms.

TJ90 Turbojet Engine: Qualification process for TJ90 Turbojet Engine, which is developed for the Simsek platform of TUSAS with a thrust of 90 Ibf, has been completed. The first flight test on the experimental platform was performed on June 05, 2013 and currently flight tests with Simsek are being planned.

UAV Piston Engine Projects: Besides the 3 successfully-completed projects with its products either already delivered or now in delivery phase, 2 projects are actively in progress under piston engine development projects. The first engine start-up for the Operative UAV Engine Development Project, executed by SSM in early 2013, was run. It is aimed to complete the entire qualification and certification activities by the end of 2018.

www.tei.com.tr 10 11 www.tei.com.tr Technology Projects

Undersecretariat for Defence Industries Projects

Development Project for Additive Manufacturing Technology for Nickel Alloy Plating in Aviation (YAKUT): The project aims to develop metal powder laser melting process with a modeling tool which will also enable to foresee potential deformations due to stress before the process in order to manufacture functional and metallic engine parts with a complex geometry.

Development Project for Superplastic Forming Process for Titanium Alloys (DİLEK): The project, carried out by TAI and TEI in cooperation, aims to process titanium alloys, which are widely used in aviation engines and platforms, with an innovative method for the first time in Turkey.

Development Project for Titanium Casting Technology in Aviation (İNCİ): The project aims to bring the capability of domestic production of titanium alloy parts by using vacuum investment casting method to our country and defense industry.

Development Project for Nickel Super Alloy Material and Production Processes in Aviation (KRİSTAL): The project aims to introduce advanced manufacturing technologies for turbine blade production to our country and defense industry. Acquisition of the capability of high-pressure turbine blade production by directional solidification and single crystal casting technologies is aimed in particular along with the necessary heat treatment, cold punching, blade root machining and thermal barrier coating technologies.

Development Project for the Titanium and Nickel Super Alloy Forging Technologies in Aviation (ÖRS): The project aims to enable forging of titanium and nickel super alloy materials by means of local facilities. To that end, the aim is to develop forging and heat treatment technologies, and run material characterization and verification processes on sample parts.

www.tei.com.tr 12 13 www.tei.com.tr www.tei.com.tr 12 13 www.tei.com.tr Turkey Technology Center (TTC)

Turkey Technology Center was established by the GE / TEI Joint Venture in 2007 in Gebze Free Zone. The Center expanded in 2012 when Repair Development Center was put into service and today it employs nearly 300 competent Turkish Engineers from TEI and GE side.

Turkey Technology Center activity areas include: Design Technologies Repair Technologies Software Technologies Manufacturing and Quality Technologies

www.tei.com.tr 14 15 www.tei.com.tr Turkish Utility Helicopter Programme (TUHP)

Turkish Utility Helicopter Programme was launched in order to satisfy the needs of Command, Turkish Air Force Command, General Command of Turkish Gendarmerie, Special Forces Command, Turkish National Police and General Directorate of Forestry, for 109 utility helicopters in total.

As part of the programme; 236 engines bearing the name plate T700-TEI-701D will be manufactured under the GE Aviation license and delivered to TUSAS, and TEI will perform manufacturing, complete engine assembly, final testing, configuration management and logistics support services for more than 60% of these engines. Hot spot parts such as high- cycle combustion chamber (combustor) will be manufactured by TEI during the lifetime of the engine for the first time in Turkey.

As part of after-sale support, TEI will have the opportunity to carry out the Depot Level Maintenance of T700 engine family, which is available in the inventory of Turkish end- users, through the domestically manufactured parts, and will have the right to conduct the Depot Level Maintenance operation for a wide geography outside Turkey.

Furthermore, the first engine will be delivered 27 months after the start of the programme schedule (T0+27 months) on 15.06.2016. The operations of TEI under the TUHP will continue during minimum 30-year lifetime of the T70 helicopter to be delivered last.

www.tei.com.tr 14 15 www.tei.com.tr Lean Manufacturing Practices

55% of TEI manufacturing process is carried out in lean manufacturing cells. Primary objectives of lean manufacturing cells are superior efficiency, profitability and quality. TEI’s another strategic target for the future is to increase the number of lean manufacturing cells in order to maximize operational efficiency.

Superior Efficiency Profitability Quality

Management Systems in Place at TEI

AS9100 C / EN 9100: 2009 Quality Management System (Requirements for Aviation, Space and Defense Organizations)

AS9110B / EN9110: 2015 Quality Management System (Requirements for Aviation Maintenance Organizations)

ISO9001: 2008 Quality Management Systems

ISO14001: 2004 Environmental Management System

OHSAS 18001: 2007 Occupational Health & Safety Management System

ISO27001: 2013 Information Security Management System

www.tei.com.tr 16 17 www.tei.com.tr Occupational Health & Safety and Environmental Policy

TEI always aims to design, manufacture and serve with utmost respect to human and environment as required by

our social responsibility. To that end, TEI has integrated OHSAS 18001 Occupational Health and Safety Management

System and ISO14001 Environmental Management System in its processes, and handles OHS and environment-related

issues with a broad perspective.

www.tei.com.tr 16 17 www.tei.com.tr Subcontractors of TEI

TEI favors use of local subcontractors for the processes that do not require advanced technology and that are not

included in TEI’s main activity areas. Thereby it not only contributes the development of national aviation industry but

also aims to increase its efficiency and profitability.

TEI outsource

28% of its production hours in parts manufacturing,

67% of fixture manufacturing,

95% of prototype manufacturing in local R&D projects.

TEI outsources following operations; turning, milling, drilling, deburring, forming, EDM, laser cutting, coating, welding,

piping, water jet cutting, pre-spinning, assembly, maintenance, overhaul, roll, shear, blank.

Regular training activities are organized in order to develop our subcontractors’ quality, including: CVP, 6-Sigma green

belt on the job training, quality system training, 8D, cutting tools, root cause analysis and special processes.

www.tei.com.tr 18 19 www.tei.com.tr Human Resources Strategy

Human Resources Strategy at TEI is based on attracting, exploring, modernizing and retaining the

TALENTS ... ATTRACT “Engage dynamic, constantly- developing and success-oriented people in the organization”

“Find high-performing people capable of EXPLORE creating added-value for the company’s sustainable success”

“Develop a competent work force to MODERNIZE serve as the builders of TEI’s future.”

RETAIN “Increase commitment of competent labor to consolidate TEI’s building blocks”

www.tei.com.tr 18 19 www.tei.com.tr TEI utilizes modern management techniques to create the labor structure we need for a growing, learning and developing

organization. It integrates our strategic road map into HR practices and strives to maximize the potential of our people

as our keys to success.

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