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Environmental, Health & Safety (EHS) Policy

Dear clients and partners, Dear employees of Caproni JSC,

Caproni JSC is a leading manufacturer of hydraulic elements and systems with application in mobile and stationary industrial equipment. Our products are built into: gearboxes of cars, vehicles such as buses and trolleybuses, utility machines, tractors, combines and various agricultural machines and attachments, electric and motorcycles, lifts, road construction machines, metalworking machines and many others. The company offers a wide range of hydraulic products - standard products and also according to customer specifications.

Through its many years of professional experience and correctness in its relations with its partners, the company has won good positions on the Bulgarian and international market. The management of Caproni JSC is committed to achieving best practices in the field of environmental protection. The company's policy is aimed at minimizing the negative impact on the environment, the risks to health and safety of our employees that would arise in the production of hydraulic products and related activities, as well as continuous improvement of product quality. For this purpose, Caproni JSC:

• Complies with the regulatory requirements and provisions for compliance with the current legislation regarding environmental protection;
• Applies a management approach to understand the individual obligations of the staff in relation to the environmental protection;
• Creates and documents general and specific goals for environmental protection at all levels and activities;
• Financially ensures the implementation of the necessary programs for the management of the environmental impact;
• Continuously improves the existing technological processes and introduces new environmentally friendly processes in order to reduce the adverse effects on the environment, while maintaining the high quality of the activity;
• Organizes the preparation of the personnel for adequate reaction in case of emergencies, incidents, accidents, etc., which have adverse effects on the environment.

With the current environmental policy, the company sets the following general and specific goals:

• Maintaining and continuously improving the Environmental Management Policy;
• Motivation of the staff, formation of company culture, training and qualification for an awareness of the need for care for environmental protection;
• Optimization of the activities for separate collection, storage and transfer for waste recycling;
• Reduction of the technological waste in the production of hydraulic products by improving the technology and the equipment;
• Increasing the competitiveness of the company by optimizing the factors training, quality of work, efficiency, compliance with deadlines and competitive prices.

In my capacity as Executive Director of Caproni JSC, I undertake the commitment and personal responsibility to provide all necessary resources for the implementation of the set goals and outlined policies.

The policy and goals of Caproni JSC in environmental management are formulated by the Executive Director of the company. The policy is discussed and explained during the initial training of new employees and is reviewed with all current employees. All employees are required to know what the Company Policy means to them and their obligations to the Company. The policy and goals are located in prominent places throughout the company and are published on the company's website. Policies and objectives are reviewed annually for adequacy and updated as necessary.