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GLOBAL CORPORATE Sustainability Report 2015 full year edition

Rawlplug Global Corporate Sustainability Report 2016 02

Contents

03 INTRODUCTION TO RAWLPLUG

03 Foreword 04 Rawlplug - The Brands 06 Rawlplug - Today

07 THE SUSTAINABLE RAWLPLUG MISSION

09 THE FOUR PILLARS OF SUSTAINABLE RAWLPLUG

10 Governance

26 CSR

48 Environment

65 Supply Chain

90 RAWLPLUG GROUP

93 PLANS FOR THE FUTURE

102 SUSTAINABLE RAWLPLUG - THE PEOPLE

Rawlplug Global Corporate Sustainability Report 2016 03

FOREWORD

Welcome to the updated 2015 edition of the Rawlplug Sustainability Report. Previously the report presented figures and details of activities relating to the full year 2014 and the first half of 2015 only. We are now in a position to provide figures and information on activities for the whole of 2015.

Sustainability continues to be central to our vision and to the future of Rawlplug. Through the publication of this report, Rawlplug seeks to regularly reaffirm its commitment to sustainability and to the promotion of sustainable and universally beneficial practices across each and every division and department of the organisation.

From the moment my professional career began, my goal has been to build and nurture organisations which can grow and thrive in a way that is both sustainable and profitable. Experience has taught me that careers cannot flourish, and organisations are unable to prosper over time without an underlying commitment to positive and sustainable practices.

I strongly believe that a truly sustainable company must:

§§ Be governed in a way that is transparent and open, but also fair and beneficial to each of its stakeholders. §§ Actively and positively contribute to the community that it occupies. §§ Be respectful of the natural environment. §§ Strive for innovation across all points in the supply chain.

It is this set of principles which drives our collective vision of a Sustainable Rawlplug.

Following our acquisition of the enduringly successful and globally recognised Rawlplug brand our vision of the commitment required to operate and to grow as a sustainable organisation is now stronger and clearer than ever. This can be seen in every acquisition and investment we make, every new product we develop, and every new employee we hire.

This commitment is evident on every page of the Rawlplug Sustainability Report 2015 and I look forward to reporting back to you with further positive updates in future editions of this report! Thank you in advance for taking the time to read this publication.

Yours sincerely,

Radosław Koelner CEO, Rawlplug Rawlplug Global Corporate Sustainability Report 2016 04 RAWLPLUG GROUP The brands

The Rawlplug Group, typically referred to as simply ‘Rawlplug’, comprises nineteen subsidiaries. Located across fifteen different countries, these companies are responsible for the design, development, production, sale, installation and service of products belonging to four key brands.

EST. 1919

The Rawlplug brand was created in 1919, a few years after its founder, John Rawling, had invented and patented the first plug for walls – a product that revolutionised fastening techniques at that time. Innovation, reliability and proven solutions in fastening techniques have made Rawlplug the choice of professionals for almost 100 years. Since being taken over by Koelner in 2005, the brand continues to be recognised in its own right – today, Rawlplug-branded products are used in construction, heavy industry and the automotive industry and the brand name continues to be synonymous with dependability, high-quality and innovation.

John Rawling, Rawlplug co-founder

World’s first expansion plug patent

Rawlplug Global Corporate Sustainability Report 2016 05

EST. 1921

The Globus brand has been on the market for over 90 years and is synonymous with high-quality tools that are used for wood, metal and construction. Recognised as a market leader in , and with a portfolio containing over 2,000 products, the Globus brand was acquired by Koelner (later Rawlplug) in 2004. Produced in Poland, Globus products continue to be synonymous with quality and have a faithful and loyal following in the region and beyond.

EST. 1982

Koelner is a brand of construction fixings that is synonymous with high-quality solutions in fastening techniques that are dedicated to Trade & DIY. Koelner produces facade insulation fixings, self-drilling screws, timber connectors, and plaster board fixings. After becoming a household name on the central European market, the Koelner brand has since gone on to achieve high recognition levels in key markets such as Poland, Czech Republic, Slovakia, Lithuania, Ukraine and Russia.

EST. 1991

Present and popular in Poland, Hungary, Lithuania, Czech Republic and Slovakia for more than twenty years, the Modeco brand is now one of the best-recognised brands for tools in the region. The Modeco brand occupies a position in the market between premium products and budget-priced competition from the Far East. By branching out with its Modeco Expert line, Modeco has established itself as a trusted provider of hand tools, and one that intimately understands the different needs and expectations of a broad and varied group of end users.

Rawlplug Global Corporate Sustainability Report 2016 06 RAWLPLUG Today

2001

100

1

15

200 07 RAWLPLUG’S Sustainability Mission

As the Rawlplug Group has grown, and as it becomes more diverse – both in terms of products and brands, and also people and geography – we recognise the importance of a single guiding vision on sustainability.

Trust & Innovation

The Rawlplug brand has been built on the message of Trust & Innovation. The products we manufacture are used to secure walls, to make building safe, to ensure vehicles function correctly, and many other important functions. Needless to say, it is essential that our clients and end users trust us. We would not be able to stand before you today as a market- Our clients and leading international company if this were not the case. end users trust The same is true of innovation – Rawlplug operates our products in industries that are fast-moving and dominated by and our brands. companies that invest heavily in the development of new products and services. Rawlplug has two brands that have been in existence for almost one hundred years. Brands do not survive to be almost a century old without learning how to evolve and innovate to stay ahead of the curve.

So how does Trust & Innovation fit with our view on sustainability?

Trust & Innovation is complementary to our view on sustainability. In fact, the two are intertwined. As Rawlplug expands its presence in existing markets and branches out into new ones, it is important that we secure the trust of our employees and their communities. As a responsible corporate citizen, we recognise our responsibilities to these communities and to the natural environment that surrounds us. We cannot build such relationships without trust. The same is true of our approach to governance – we are a global company, one that has many stakeholders and shareholders. We cannot operate successfully without trust, which is why we go beyond our legislative and compliance requirements to be transparent and open in the way we do business.

And, of course, we cannot transform into a truly sustainable group of companies by doing everything the same way we always have. We need to innovate; innovate in the way we design, produce and deliver products; innovate in the way we inspire and look after our people; innovate in recruitment; and innovate by developing new business models.

Rawlplug Global Corporate Sustainability Report 2016 08

Our Four Pillars of Sustainability

WE GOVERN IN A WAY THAT IS TRANSPARENT AND OPEN, BUT ALSO FAIR AND BENEFICIAL TO ALL OF OUR GOVERNANCE INTERNAL AND EXTERNAL STAKEHOLDERS.

WE ACTIVELY AND CSR POSITIVELY CONTRIBUTE TO THE COMMUNITIES THAT WE INHABIT.

WE ARE RESPECTFUL OF THE NATURAL ENVIRONMENT IN OUR OWN OPERATIONS AND DESIGN AND DEVELOP PRODUCTS THAT HELP OUR ENVIRONMENT CLIENTS IMPROVE THEIR OWN ENVIRONMENTAL CREDENTIALS.

WE STRIVE TO INNOVATE AND IMPLEMENT SUPPLY CHAIN SUSTAINABLE PRACTICES ACROSS ALL ASPECTS OF THE SUPPLY CHAIN. 09 THE FOUR PILLARS of a Sustainable Rawlplug

The Sustainable Rawlplug vision is brought to life through our actions in four key areas:

Governance Corporate Social Responsibility (CSR) As an international, market- leading company we understand Healthy communities are healthy how important Governance is to places to do business. We believe both our day-to-day operations that the well-being of our people and our strategic business and the communities they belong decisions. Only through effective to is inextricably linked to the long- governance can we remain united term health of the Rawlplug group and aligned on delivering the and the brands we represent. vision of a Sustainable Rawlplug.

Environment Supply Chain

As a group of companies that To be successful in an increasingly is active in construction, heavy competitive, globalised economy – industry and the automotive an economy that places increasing industry, we recognise the value on the sustainability of goods potential environmental impact and services sold – we need a of our operations and the healthy eco-system of like-minded products we manufacture, and suppliers and logistics partners, have incorporated environmental and an efficiently designed awareness into the entire lifecycle and operated supply chain. of our products and operations.

Rawlplug Global Corporate Sustainability Report 2016 10 GOVERNANCE

Rawlplug is passionate in its pursuit of becoming a truly sustainable organisation.

The robust governance framework we have built and implemented across our international network has enabled us to ensure that this passion courses through all of our departments and subsidiaries, and everything we do.

When we think about Governance and Sustainability at Rawlplug, we think about:

ETHICS STRATEGY What are the values and ethics What is it that underpins our that guide, govern and inspire the vision of a Sustainable Rawlplug? way we work?

QUALITY COMMUNICATION & STANDARDS TRANSPARENCY

What formal systems How open and proactively

and frameworks do we communicative are we use to benchmark our being with our internal and performance and guide us? external stakeholders?

Rawlplug Global Corporate Sustainability Report 2016 11 GOVERNANCE Rawlplug by the numbers

At Rawlplug, sustainability is about much more than well-intentioned promises. We are committed to ensuring that our sustainability vision is closely aligned with our performance and strategic objectives.

Rawlplug introduced its vision on sustainability in 2012. Since that time, the company has reported numbers that demonstrate strong, sustainable growth credentials; numbers that demonstrate that we are taking care of the top and bottom lines, our investors and, importantly, the charities that we partner with and the communities that we inhabit.

201 vs 201

12 1072 3

10262 110284 73

2303 25314

1625 1885 3

482 5040

138 842 39

350 3 13

ECONOMIC VALUE EMPLOYEE WAGES OPERATING RETAINED AND BENEFITS COSTS

CHARITABLE DONATIONS TAXES payment SHAREHOLDERS AND CONTRIBUTIONS TO to government COMMUNITIES SPONSORING

Rawlplug Global Corporate Sustainability Report 2016 12 GOVERNANCE Strategy

As an active player in the construction and automotive sectors – industries that have a crucial impact on the environment and communities – we recognise the importance of a well-defined, strategic approach to ensuring that the products we manufacture and the way we work are sustainable.

In 2012, Rawlplug introduced its corporate strategy for the period 2013-2018. This strategy has sustainability at its heart and is built around the following key objectives:

INCREASE MAINTAIN PACE INTERNATIONAL EXPANSION EFFICIENCY OF INNOVATION

A Project-focused Operating Model to help us achieve our objectives.

To better organise and track progress against these objectives, Rawlplug has adopted an innovative Project-focused Operating Model. This provides enhanced structure and better visibility on the way we work.

To understand how each project contributes to the fulfilment of our strategy and to the improvement of Rawlplug’s performance, each project is categorised:

STRATEGIC OPERATIONAL FUNCTIONAL

Rawlplug Global Corporate Sustainability Report 2016 13

Between 2013 and the end of 2015, 194 projects had been completed. Of these, more than one-third (68) have had a direct impact on Rawlplug’s sustainability credentials.

EFFICIENCY EXPANSION INNOVATION TOTAL KEY OBJECTIVES (sales growth)

Projects completed between 2013 and 2015

STRATEGIC 12 3 3 18

OPERATIONAL 40 10 3 53

FUNCTIONAL 58 38 27 123

TOTAL 110 51 33 194

Completed projects that have a direct impact on Rawlplug’s sustainability credentials

44 11 13 68

Projects currently in progress (January 2016)

STRATEGIC 2 1 1 4

OPERATIONAL 6 4 1 11

FUNCTIONAL 9 18 9 36

TOTAL 17 23 11 51

More than one-third of projects completed have had a direct impact on Rawlplug’s sustainability credentials.

Rawlplug Global Corporate Sustainability Report 2016 14

How is the Project-focused Operating Model helping Rawlplug achieve its objectives?

Increase efficiency

Examples of projects that have helped us increase efficiency are:

§§ Promoting knowledge sharing across our stakeholder network through Modeco Academy events. §§ Introduction of voice picking at Rawlplug logistics centres to reduce time spent per order and drive up overall efficiency of operations. §§ Development of printing capabilities to enable proprietary printing of labels for packaging, thereby ensuring less waste, lower standing stock and enhanced responsiveness to business needs. §§ Adopting a technical call-centre approach, reducing need for on-site visits and improving response times for customers. §§ Knowledge sharing initiatives across our network of international subsidiaries.

Sales growth through international expansion

We are actively pursuing a global expansion strategy, with a new office having opened in Portugal in 2015 and new points on our global distribution network appearing in Australia and Qatar.

Such developments enable us to deliver to clients, distributors and partners on a ‘just in time’ basis. This enhanced international presence also enables us to penetrate new markets quickly and effectively.

These expansion objectives are not pursued ‘at any cost’ – we employ a high level of risk management when considering expansion beyond the EC and always ensure that the correct level of analysis is undertaken before a decision is taken. Maintain pace of innovation

For companies like the ones operating as part of Rawlplug, innovation can take many forms. At Rawlplug innovation is channelled into three key areas:

§§ Product innovation (design and development). §§ Process innovation. §§ The way we do business (strategic ventures and initiatives).

Product Innovation

At Rawlplug, our goal is for the sales of those products we consider to be innovative to increase by an average of 20% each year. Between 2014 Rawlplug has introduced a number of highly innovative and 2015, sales of products to the market in 2014/15, notably: products we consider to be innovative Rawlplug TFIX8 Facade Range grew by 48%. These façade fixings (available screw-in and hammer- in variants) feature an innovative design that saves energy by minimising the need for thermal bridging. The highly efficient design also means that fewer fixings are required per square

Rawlplug Global Corporate Sustainability Report 2016 15

metre, resulting in less time, resources and time being needed for installation.

Rawlplug KCX Facade

This insulation washer eliminates one entire stage in the installation process by enabling the attachment of ETICS to wooden substrates or to corrugated steel sheet. The product features a long-plug design that allows short-length screws to be used. Further savings are also possible thanks to the KCX Facade’s ability to minimise thermal bridging.

Other key innovations in our product portfolio have been:

R-HPTII Mechanical Anchors – For new levels performance, efficiency and safety.

R-FF1 Frame Fixing – For high levels of compatibility and versatility within construction projects.

R-KEXII Bonded Anchor – A new standard of strength, enabling constructors to build with absolute confidence. Process Innovation

We recognise that process innovation is vital to reducing our costs and enabling innovation in other areas of the business, such as operations and product development. Our commitment is demonstrated by our investment in the area of process innovation.

INVESTMENT IN PROCESS 2013 2014 2015 INNOVATION (EUR) 3,977,401 5,476,914 3,331,523

Examples of process innovations include:

Product Information Management – We have introduced a Product Information Management (PIM) system to more effectively catalogue our huge range or products and to help stakeholders access the information they need more quickly and easily.

Warehouse Management System – We introduced a Warehouse Management System (WMS) at our Glasgow facility to accelerate speed of task completion and reduce dependency on manual processes.

Packaging and Labels – We have adopted environmentally friendly and resource-efficient design and production principles and have moved all our printing operations in house to ensure greater responsiveness to business needs and lower levels of ‘standing’ stock. New markets and new ventures

Today, Rawlplug is active in the automotive industry and working with leading companies such as the VW Group, BMW, Ford and Mercedes. This is a relatively new development but demonstrates our deep-rooted commitment to expanding and establishing ourselves as leading players in new markets. To facilitate this expansion and better organise the flow of innovation through the company, Rawlplug set up Rawlplug International in Q1 2015.

Rawlplug Global Corporate Sustainability Report 2016 16

Rawlplug sets up Rawlplug International, strengthens commitment to Sustainability

Published on sustainable.rawlplug.com 9th of March, 2015

In Q1 2015, Rawlplug launched a new venture – Rawlplug International. The new entity is responsible for promoting Rawlplug products globally, and will help to strengthen the company’s sustainability message and credentials.

What does Rawlplug International mean for Sustainability at Rawlplug?

To support the announcement of this news, articles were published in renowned industry publications such as Construction Global and Business Review – to name but two.

The inception of Rawlplug International and the promotion of this new entity will provide an opportunity to strengthen Rawlplug’s sustainability message across a variety of new channels, markets and stakeholder groups.

“For us this (the inception of Rawlplug International) will help the world to recognise that we are a responsible company, that we are taking social responsibility in local markets, and that we force ourselves to be even more efficient in our own supply chain. From our banking partners The leaders’ through to our customers we are concentrating on sustainability and view they start to recognise our responsibility in getting emissions etc. in the right directions … The environment is a hot topic within the politics of the European Union and social responsibility of business is taken extremely seriously, and something which will help us to create a better future.” Mattias Andersson Managing Director, Rawlplug International

Rawlplug International works to integrate our products and our vision of a sustainable future into construction markets across the world. We are dedicated to improving our industry and the world around us, so we feel that by sensibly growing our presence in international markets we can have a greater effect. We look for local distribution partners who share our ideals. This way we can hit the ground running and our efforts to reach our sustainability goals will maintain the highest quality, as well as progress quickly and run smoothly.

Rawlplug Global Corporate Sustainability Report 2016 17

Rawlplug returns to the Australian and New Zealand construction market

Published on sustainable.rawlplug.com 2nd of December 2015

Rawlplug continues to increase its geographical coverage and expand its global distribution network. Thanks to cooperation with Blackwoods – market leader in the supply of solutions for Australian industry and construction – our products are now available in Australia and New Zealand.

Blackwoods is part of the Wesfarmers Group, whose main customers are companies and investors in the construction and mining industries.

The Australian and New Zealand construction market is important when it comes to the global expansion of the Rawlplug brand. The local market situation is such that we can optimistically forecast Rawlplug’s success in this part of the world.

Rawlplug product sales and consulting will be carried out by a dedicated team of managers and engineers specializing in the construction fastenings market.

“Australian government projects promise significant investments in the construction market and there has been a steady rise in the value of construction projects in the private sector. Establishing cooperation with the Wesfarmers Group is an important milestone for the brand. After a few years where they were unavailable, we have now successfully brought Rawlplug products back to the construction market in Australia and New Zealand.” Ewa Rosińska-Hryń Rawlplug International Business Development Manager

Rawlplug Global Corporate Sustainability Report 2016 18 GOVERNANCE Ethics

At Rawlplug, we seek to achieve our business goals in a way that is ethical, socially good and brings benefits to clients and all of our stakeholders.

We are passionate in our belief that financial success need not come at the expense of our commitment to social good and the communities and natural environments that we inhabit. To this end, we have identified and formalised the ethics and values that will guide Rawlplug to a sustainable future.

The Rawlplug Code of Business Conduct and Ethics

The Rawlplug Code of Business Conduct and Ethics contains the guiding principles that are followed by Rawlplug employees and divisions all around the world. We share this code with our stakeholders and encourage them to adopt our values. By approaching the market with these shared values and principles, we represent a united, compelling proposition to our clients and demonstrate that we are a company that places as much emphasis on values and ethics as we do on profit. Rawlplug’s Code of Business Conduct and Ethics has been important in helping the company secure it’s listing on the Stock Exchange’s (WSE) RESPECT Index – an index that recognises the sustainability credentials of listed companies.

The Rawlplug Code of Business Conduct and Ethics can be found here: www.rawlplug.com/code-of-ethics

Adherence to the Rawlplug Code of Business Conduct and Ethics is monitored by a dedicated compliance officer. Furthermore, Rawlplug’s global HR director is an active sponsor of the code and works in close collaboration with key stakeholders to ensure that the code is periodically reviewed, and that it remains relevant and appropriate to the company’s culture and way of working.

Rawlplug Global Corporate Sustainability Report 2016 19 GOVERNANCE Quality Standards

Rawlplug takes great pride in its reputation as an innovator and market leader. Across all our subsidiary companies and operations, we strive to achieve and maintain the highest level of quality possible.

Our approach to quality applies to our products, processes, people and partners. To ensure we are able to meet our goals, Rawlplug has implemented internationally recognised Standardised Management Systems and we conduct regular internal audits to monitor, measure and optimally manage the performance of the company. Standardised Management Systems

Rawlplug has implemented a management policy aimed at supporting the company in the pursuit of strategic objectives such as healthy business growth, environmental responsibility and sustainability. This policy is implemented within the framework of internationally recognised, standardised management systems. Quality Management System ISO 9001

By fulfilling the requirements set out by the ISO 9001 Quality Management System (QMS), companies belonging to Rawlplug commit to creating transparent processes aimed at continuously improving the quality of Rawlplug products, services and operations. Rawlplug’s QMS also provides a framework in which to quickly and effectively identify and resolve any process or production problems that arise. The certification, and its demonstration of our commitment to quality, helps to strengthen Rawlplug’s reputation as a reputable, trustworthy brand and group of companies. ISO/TS 16949 Technical Specification

Based on ISO 9001, the ISO/TS 16949 technical specification provides a framework for continual improvement by seeking to eliminate defects from the production process and to minimise variation and waste. For Rawlplug, ISO/TS 16949 helps us to further reinforce our emphasis on quality within our production processes, while also helping to improve the efficiency of our use of natural resources. Certification in this area demonstrates our enduring commitment to quality and the absolute confidence we have in our products and processes. For clients, this certification fosters trust in our brand and products while for employees, such certification provides assurances that a job at a Rawlplug company means working in an environment that rewards professionalism and passion for perfection.

Rawlplug Global Corporate Sustainability Report 2016 20

Environment Management System ISO 14001

To underline our commitment to the environment, we work hard to ensure our operations and processes are compliant with all applicable legal and regulatory requirements, and also with the ISO 14001 Environment Management Systems (EMS) that we have implemented.

The requirements of our EMS provide us with a formal framework to measure and minimise our impact on the environment and also commit Rawlplug to documenting and continuously improving our processes and their impact on the environment. In this way, our commitment to the environment goes well beyond good intentions and deeds – it is a certifiable commitment on which we stake our reputation. Health and Safety Management System OHSAS 18001

Occupational Health and Safety Advisory Services (OHSAS) 18001 certification provides a recognised, formal framework to support the ongoing improvement in health and safety at Rawlplug.

We are committed to reducing accidents and occupational hazards in the workplace, as well as work-related ailments and illnesses. This commitment goes beyond well-intentioned words, which is why we have underpinned these objectives with the implementation of OHSAS- certified, internationally recognised health and safety practices.

The efforts we take to ensuring the health and safety of employees are driven and backed at the highest levels of the company. This demonstrates our commitment to our employees, and helps to create a motivating, comfortable working environment in which people can confidently and safely pursue their professional ambitions.

Certifications held and dates implemented

ISO/TS ISO OHSAS ISO 9001 Subsidiary Name 16949 14001 18001

Rawlplug Ltd, UK ‘89

Rawlplug, PL ‘09 ‘14

Koelner Łańcucka Fabryka Śrub, PL ‘95 ‘06 ‘09 ‘12

Fabryka Pił i Narzędzi “WAPIENICA”, PL ‘99 ‘03 (producer of the Globus brand)

Koelner Polska, PL ‘14 ‘14

Koelner Rawlplug IP, PL ‘14 ‘14

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Technical Approvals and Certifications

We understand that the products we manufacture are used by constructors and engineers from all around the world and on a wide variety of different projects. We recognise the importance of universal standards and certifications in these industries and strive to ensure that all products manufactured by Rawlplug carry the appropriate level of technical approval and/or certification.

Status of Total Approvals/Certifications held as of December 2015

Technical Approval TA (Country Level) 29

European Technical Approval (ETA) 26

European Technical Assessment (ETA) 6

Country Norms 8

European Norms/Harmonised Standard 19

FM Certification 1

Other Certification 53

European Fire Resistance Standards 5

TOTAL 147

Rawlplug Global Corporate Sustainability Report 2016 22 GOVERNANCE Communication and Transparency

We understand that a huge part of Rawlplug’s success is based on the relationships we have with our employees, clients, distributors, business partners, shareholders, industry bodies and regulators.

Rawlplug and its stakeholders

Academic Institutions Contractors Customers and End Users

Public Administration Suppliers Shareholders and Local Authorities and Subcontractors

Employees RAWLPLUG Local Communities

Industry Bodies Non-governmental Business Divisions and Associations Organisations (NGOs)

Competition Owners The Media

Communication with clients

We use a variety of communication channels to forge stronger relationships with our clients and distributors.

Industry Events & Shows – Rawlplug attends regional and international events in the construction, DIY and automotive industries. Examples of these are events organised by Grupa PSB (Polish Association of Constructors), the retailer Bricomarche and SCREWFIX Live.

Client-site visits or Modeco Shows – In Poland alone, Rawlplug has organised almost 131 Modeco Truck visits to clients in 2015, following a year in which 102 presentations were arranged at client locations.

Digital Tools – In 2015 alone, we have created two online tools that help make life easier for our clients:

§§ At www.dop.rawlplug.com Declaration of Performance (DOP) documents for Rawlplug products can be generated immediately and automatically. §§ EasyFix Pro, an easy-to-use online tool that automatically calculates fixing requirements for a construction project www.easyfix.rawlplug.com/en

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Reporting to industry analysts and the media

We regularly organise conferences for industry analysts and the media to announce quarterly, half-yearly and annual results. Such events are typically attended by senior figures from Rawlplug’s management board, and provide an opportunity for analysts and the press to gain greater insight into the results being announced, to learn about key developments and also to find out about any key strategic decisions that have been taken or objectives that have been set. These events are typically supplemented by the official publication of figures, reports and accompanying press releases, all of which can be found on the Investor Relations section of Rawlplug’s corporate website. Management meetings

Meetings for key internal stakeholders (the management board, including heads of the different subsidiaries and regional divisions) are held few times a year. Such meetings are used to align the company at a strategic level and provide an opportunity to report back on recent developments across the group, to learn how each of our subsidiaries is performing, and to understand where opportunities exist for greater collaboration. These meetings also serve as the platform on which key strategic decisions are made.

Given the size and global footprint of the Rawlplug organisation, management meetings serve as the vital first stage of a communication cascade. Managers and key senior figures attend such meetings and it is then their duty to cascade relevant information back through their respective organisations. By doing this effectively, we are able to align the company at all levels to one single vision. This communication cascade also enables us to secure the engagement and ‘buy in’ of employees. This is important, as by better understanding the strategic vision of the company, employees are more motivated and better able to contribute to the fulfilment of strategic objectives. Communication with shareholders

Rawlplug organises periodic meetings with key shareholder groups and institutions. These provide opportunities for shareholders to learn more about how the business is performing, understand what to expect in the short- and long-term future, and also participate in key strategic decisions.

With individual shareholders, we communicate via traditional and digital media. In addition, as part of our aim of achieving transparency and open communications, we make all reports and important information available on the Investor Relations section of our corporate website.

In order to help shareholders and potential investors better understand our commitment to Sustainability and to demonstrate our credentials, Rawlplug has secured a place on the Warsaw Stock Exchange’s prestigious RESPECT Index. One of the key areas of evaluation was the quality of communication and availability of information.

Rawlplug Global Corporate Sustainability Report 2016 24

Rawlplug listed on Warsaw Stock Exchange RESPECT Index Published on sustainable.rawlplug.com 20th of January, 2015

On 18 December 2014, Rawlplug (RWL) was officially added to the RESPECT Index – an index of companies recognised as being socially responsible by the Warsaw Stock Exchange (WSE).

What is the RESPECT Index?

The RESPECT Index is a Warsaw Stock Exchange (WSE) initiative that began in 2009 and is the first index in East-Central Europe that specifically recognises and identifies companies that have exceptionally strong CSR credentials. Recognition in the form of listing on the RESPECT Index is a highly prestigious achievement – Rawlplug was one of just 24 companies to be included on the eighth edition of the index.

What does it take to be listed on the RESPECT Index?

When evaluating candidate companies, the RESPECT Index looks at the sustainability of operations and the strength of its corporate responsibility credentials.

Candidate companies are evaluated in three phases. These are:

Phase 1: Identification of those companies with the highest levels of financial liquidity. The main indexes – WIG20, mWIG40 and sWIG80 – are all periodically reviewed to identify these companies.

Phase 2: Evaluation of the candidate company’s operations, with a specific focus on Corporate Governance, investor relations and quality of communication and publicly available content.

Phase 3: Focuses on the operations of the company, the extent to which they can be considered sustainable and also the way the company understands CSR and applies it to its operations.

Submissions are verified and analysed by Deloitte, the independent auditor appointed by the Warsaw Stock Exchange and the Index is reviewed and modified every six months.

“Rawlplug’s listing on the RESPECT Index is formal recognition that our sustainability efforts and social responsibility credentials are relevant to potential investors. With the criteria being so strict and relating to so many different aspects and levels of the business, the listing is a The leaders’ source of great pride and demonstrates that sustainability and social view responsibility are present in every aspect of the way we do business. Our intention is to be present on the RESPECT Index for many years to come!” Piotr Kopydłowski Financial Director

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Recognition of our achievements

The relationships we cultivate both in and out of our industry are important to us, so it is gratifying when our hard work and ideals are acknowledged by others. If we stand out from competitors as a company which can demonstrate that social responsibility can have positive and practical results, we are living up to our role as a leader in the industry. If we can do that, then we can be a beacon to guide others towards a truly sustainable future.

Sustainable Rawlplug sets out our stall in terms of our philosophy, our achievements, and our plans. So it was an honour to be recognised by inclusion on the shortlist for the London Sustainability Award 2015. Similar to our listing on the RESPECT Index, our inclusion is an indication that our commitment to sustainability is both real and effective.

Rawlplug shortlisted for London Sustainability Award Published on sustainable.rawlplug.com 29th of June, 2015

Rawlplug is thrilled to have been shortlisted for the London Sustainability Award at London Build 2015, the foremost construction exhibition for London and the south of England.

London Build 2015 took place on the 18th and 19th June, attracting over 10000 industry attendees and thousands more visitors. As a showcase for construction experts it is the perfect setting for Rawlplug to demonstrate its success and dedication to the industry.

The London Construction Awards celebrate the finest achievements in construction in the London area. The awards identify those who are industry leaders in quality, innovation and service, and they are a snapshot of how the industry is moving forwards, developing and embracing new ideas and responsibilities.

Entries were many and varied, so it is testament to Rawlplug’s creative and comprehensive approach to sustainability that we were shortlisted for the award.

Rawlplug’s nomination

Rawlplug’s nomination for the London Sustainability Award represents strong recognition of our continued dedication to sustainability.

Sustainability lies at the heart of Rawlplug’s business. It is built into the entire lifecycle of Rawlplug products and operations We fully understand that to be a successful, progressive and responsible business today and in the future, sustainability needs to permeate our whole approach to what we do and how we do it.

Rawlplug is proud of the recent steps we have taken towards sustainable growth. Nomination for the London Sustainability Award is directly due to the hard work and imagination which goes into each new development.

Rawlplug Global Corporate Sustainability Report 2016 26 CORPORATE SOCIAL RESPONSIBILITY (CSR) Community

Helping individuals and communities flourish is a cornerstone of the Rawlplug ideology. Whether we are concentrating our efforts on our own employees, the wider community, or on initiatives which combine the two, every department within Rawlplug strives to live up to our vision of responsibility.

We weave ourselves into the fabric of the life that surrounds us. We are interested in the people and the places around us because we know that their strength, their health and their well-being is an integral part of our duties as a business. We also firmly believe that an investment of care in people and places is vital to our success and prosperity.

It makes sense to us to encourage everyone involved with Rawlplug to pursue their dreams. When our colleagues and clients are given the freedom and the opportunity to blend their working lives and their personal passions, our business thrives.

Rawlplug has an ongoing pledge to support Rawlplug’s ongoing and nurture communities. We believe our pledge to support and position within each community we inhabit demands nothing less. This is why we are nurture communities as diligent, creative and hardworking in is reflected by a 59,2% this area as we are in every other. increase in charitable In line with this pledge, Rawlplug has donations since 2013. increased its charitable donations by 59,2% since 2013 and by 13,4% in 2015.

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Good Causes

Children and young people

A particular Rawlplug passion is our desire to improve the well-being and opportunities afforded to children and young people. Despite the huge success and growth of the company, we have never lost sight of this ideal. The enthusiasm and dedication the company shows towards helping local young people has today become a constituent part of Rawlplug as a business and a responsible member of the community.

We help children in need by supporting orphanages, children’s hospitals and foundations dedicated to ensuring that all children are given the same rights and privileges in life. This could be something as vital as life-saving medical care, or as simple and memorable as a visit from Santa Claus at a Christmas party.

Rawlplug supports children’s art therapy at the “Cape of Hope” clinic in Wrocław, Poland. Published on sustainable.rawlplug.com 2nd of February 2016

The “To Rescue Children with Cancer” Foundation runs art therapy classes at Wroclaw’s “Cape of Hope” clinic for children undergoing treatment for cancer. Rawlplug funded art equipment for use during the sessions.

Founded in 1991, the foundation provides direct aid. Its activities are focused on both medical care and social support for children while in hospital. Volunteers help to organize and run activities for patients and their families. These include therapeutic classes and workshops which aim to develop the talents of children and teach them about the world during their stay in hospital.

In order to help the development of therapeutic activities for the children, Rawlplug donated glue guns and additional equipment for use during art therapy sessions. Art therapy is a way of reaching out to pupils through their own creativity. Children are encouraged to explore different ways of expressing their personality regardless of ability, with emphasis placed on the classes as a social activity.

The wellbeing of children and providing them with the right conditions in which to develop are important elements in Rawlplug’s work towards a sustainable future.

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Just as we have a duty to the generation which follows, so will they when the time comes. We believe that understanding one’s place in the world and appreciating the responsibility we all have towards the environment we live in is something which should begin early in life. This is why Rawlplug works hard to guarantee that children develop a relationship with the environment. Our Eco-workshops initiative aims to awaken young minds to environmental issues. By involving children in ecology and raising their awareness, we are securing a sustainable future.

Eco-workshops for nursery schools in Wrocław Published on sustainable.rawlplug.com 11th of December 2015

The environment plays a crucial role in Rawlplug’s vision of sustainability, and our efforts to safeguard the environment extend into the wider community. We feel the best way to promote environmentally friendly attitudes is to work with children from an early age, so Environmental Health and Safety (EHS) specialists from Rawlplug recently organized themed workshops at nursery schools in Wrocław. They were a huge success and were attended by 130 children.

“We explained how we protect the environment from pollution and talked about environmentally friendly practices in everyday life. The children were eager to discuss their own experiences.”

Maliwina Rudnicka EHS specialist at Rawlplug

After short talks about ways we can protect the environment, the children took part in competitions to test their knowledge by classifying various types of waste and placing them into the correct containers. Another highlight was a labyrinth which each child had to negotiate in order to dispose of waste. The idea was that hindrances to proper waste disposal could culminate in communities full of trash. Everyone received a personal diploma and special reflective bands to increase their visibility to vehicles when outside the nursery.

Classes for pre-schoolers create an awareness of the need to constantly care for the environment and emphasize the importance of teamwork.

“The children showed great commitment and enthusiasm. We know that early education is important for the environment, so we will take further actions to shape environmental attitudes in the future.” Aleksandra Ciesielska EHS Specialist at Rawlplug

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By working with schools and other educational institutions, we encourage young people to take full advantage of every opportunity which comes their way. Our aim is to empower children. We want them to work to improve their own lives and take control of their own destinies. By helping to develop young minds we are not only fulfilling a duty to the community but also nurturing the innovators of tomorrow.

Classes using Rawlplug products at School Complex No. 4 in Olkusz Published on sustainable.rawlplug.com 15th of January 2016

School Complex No.4 in Olkusz runs vocational construction courses in building, masonry, and plastering for technicians and fitters. Rawlplug has been involved in the retrofitting of workshop classrooms where practical building lessons take place. The school is supplied with a whole range of products from the Rawlplug offer. Our products are used during drywall workshops, enabling students to develop their knowledge of modern fastening solutions, supervised by eight vocational education teachers.

The provision of adequate school workshop facilities enables students to quickly and effectively master each material discussed in class. Students are able to use our fixings throughout the year, helping them to continually develop their know-how in assembling many different solutions.

Supporting young people in preparation for their first steps into construction careers is very important to us. We believe a modern and wide ranging school education is a priority value. This is why Rawlplug helps teachers and teaching institutions in a number of different ways.

Fostering the development of young people for future careers within our own industry is something to which we can lend a great amount of expertise. Our years of experience and contacts give us a unique insight into the industry so when the opportunity arises to involve Rawlplug in the burgeoning careers of young people interested in construction we feel a particular pride in offering our help. If we support a good cause at the same time, even better!

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GLOBUS helps Make Children’s Dreams Come True Published on sustainable.rawlplug.com 9th of July, 2015

The Make Children’s Dreams Come True initiative is an opportunity for children to exercise their creative sides. Supported by both the furniture and tooling industries, the initiative runs a continuing series of creative competitions for children and young people.

Globus, a Rawlplug brand based in Poland, was sponsor to the most recent contest to design the perfect piece of furniture. The boundless imagination of children and their creative efforts in Stage 1 of the contest were rewarded by a selection of designs being put forward for realisation in Stage 2.

Stage 1 – over 500 children aged between 3 and 14 submitted their ideas

Stage 2 – almost 100 projects were evaluated and a final 10 brought to completion by design students, amateurs and professionals over the age of 18

The ten original winning designs and the completed furniture which was inspired by them have been on display at various design and furniture events.

Sponsorship by such a high profile manufacturing brand as Globus brought with it access to leading promotional and media channels, enabling the competition to benefit from maximum exposure to many of the key stakeholders in the industry.

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Sport

Sport is an extremely important part of the culture of our organisation.

Many of the positive human attributes which sport represents mirror the philosophies which Rawlplug espouses: teamwork and community spirit, the strive for excellence, self-discipline, fairness, inclusion, skill and dedication, rising to challenges, and of course pursuing a healthy and fun lifestyle.

Our experiences taking part in sporting activities or even simply spectating can have a direct effect on our success at work and our happiness at home. The physical and mental benefits of exercise are well documented.

As a socially conscious organisation with a passion for sport we share this belief in its power to improve lives. That is why we are always keen and proud to lend our support to sporting events of all kinds. From family fun runs to professional football teams, we applaud all levels of effort and will involve ourselves at every opportunity.

We have seen communities come together in effort and enjoyment, and our own employees accomplish great achievements in sport. We are delighted to encourage, sponsor, or associate ourselves with each and every one of these sporting endeavours. The Rawlplug Bike Team MTB

Rawlplug’s MTB team is an excellent illustration of our belief that sport can have a positive effect on both individual lives and in communities.

Rawlplug strongly believes that by bringing together personal passions and professional relationships we can form even stronger ties both in and out of work. The MTB (mountain biking) team exemplifies this belief. The act of sharing in a physical challenge generates trust. Being part of team with the same goal creates a feeling of belonging and determination. These attitudes translate into the world of work.

The team was formed at the beginning of 2015, inspired by the Modeco Challenge (see Special Initiatives) and consists of Rawlplug employees and their friends. The group came together over a shared enthusiasm for mountain biking and their desire to be part of a team. Whatever their individual levels of cycling experience the team members are equally matched in their determination to put in the effort to succeed in their chosen sport.

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Modeco MTB Team concludes a successful 2015 Published on sustainable.rawlplug.com 14th of December 2015

The Modeco MTB Team supported by Rawlplug is very pleased with its results at the end of a busy 2015 cycling season.

The team took part in all ten professional Bike Marathon races, and other events in Poland, the Czech Republic and France. With each start the team gained skill and experience, which translated into higher places in the final standings.

At the end of the season a summary all ‘OPEN’ category races put the team an impressive 49th out of 159. In the ’SPORT’ category the team finished 55th out of 119. The best individual result came from Bartek Sokół, finishing the season in 5th place in his age category at the Mini distance. Team member Eric Visentin claimed 829th place out of 2,000 cyclists in the prestigious Roc d’Azur race in France.

The Modeco MTB Team plans to take on further challenges in the coming year.

“In the spring we intend to start in the inaugural race of 2016 Bike Marathon. The support we received from Rawlplug in 2015 allowed us to build an ambitious and competitive team, so in 2016 we will raise the bar even higher.”

The leaders’ Bartosz Prekiel view Regional Support Manager at Rawlplug and Modeco MTB Team cyclist

The Modeco (Rawlplug) Football Team (MFT)

Formed in 2009 by a group including Rawlplug employees and bolstered by sponsorship by Rawlplug in 2011, the Modeco Football Team also embodies Rawlplug’s ideas about sport as an inclusive activity and a positive influence. As a group of working professionals with an unbridled enthusiasm for the sport and the fitness levels required to play it competitively, the MFT came together with no desire greater than to play, but have built themselves a reputation and a loyal following.

Our relationships with both the bike team and the football team exemplify many aspects of our vision of corporate social responsibility: commitment to community involvement and support, the backing of individual effort and ambition (employees and non-employees alike), and the promotion of healthy and character-building pursuits.

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Promoting sport for young people

Rawlplug are strong believers in the power of sport as an educational tool for children. Participation in sport has a positive effect on a child’s physical and mental health. It plays an important part in a child’s early development, teaching values essential in later life. It imparts lessons on winning and losing, and competition in general.

Involvement in sport at an early age has the potential to create a lifelong interest in healthy physical activity. Sport is attractive to children and can often be used to engage them in much more comprehensive health and education programmes.

In short, endowing children with a love of sport and physical activity is an investment which will pay dividends in later life in terms of individual social responsibility, creativity, productivity and health. Rawlplug’s promotion of sporting programmes which encourage children to take part adds to that investment and furthers our own development as an organisation with a corporate conscience. Rawlplug loves

We have a particular interest in basketball. We see it as a sport where, regardless of skill level, a strong work ethic is a valuable team commodity. Along with a positive attitude it can be contagious. A single player can raise the level of the whole team by demonstrating a dedication to keep working and believing. There is a difference between the will to win and the will to prepare to win. This notion of perseverance and work ethic translates into every sphere of life. This is what Rawlplug loves about the game. Rawlplug sponsors the highly successful WKS Śląsk Wrocław Basketball Team.

Winner of 17 league titles, WKS Slask Wrocław is the most successful club in Polish basketball history. In addition to their 17 gold medals, the team also holds 6 silver and 14 bronze, totalling 37 medals, a record for . Add to these 14 Polish Cup victories and 2 in the Polish Supercup and it is plain to see that WKS Slask Wrocław displays all the qualities and determination which attracts Rawlplug’s support.

WKS Śląsk Wrocław was the first Polish team to appear in the prestigious Euroleague elite competition – the finest basketball league on the Continent, bringing together the most successful European clubs. Wrocław Loves Basketball

Rawlplug has supported the Wrocław Loves Basketball initiative for almost 15 years. Designed to encourage healthy living through sport, it is aimed primarily at children and young adults. The idea is to provide organisation and training to help children develop their skills and learn important lessons about teamwork, effort, and fair play.

Our support has helped provide intensive training and coaching for over 1,000 children since 2001. More have benefitted from the additional support Rawlplug has given to a range of other sports. We take great pleasure in watching the young people we help enjoy sporting success; but perhaps our greatest satisfaction comes from the great number of children we see who simply want to take part.

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Educational Programmes

Rawlplug believes in education for all. We know the value that it can add to our company as well as to the community as a whole. That is why we offer opportunities for young people to join us on placements and internships, and engage with younger children in an effort to spark their imaginations. Our intention is for children and young people to recognise the potential inside them and harness that potential. Internships for students

Recognising that business in general and our industry in particular move forward quickly and constantly, it is logical that we should invest in the human future of Rawlplug. Consequently, our approach to internships is based on the desire to surround ourselves with highly talented, creative and ambitious individuals.

For the student we offer the experience and preparation which may provide them with an advantage as they progress from education into the world of work. We can provide industry-specific academic advice and mentoring from Rawlplug employees whose expertise in their respective fields is extensive.

Our internships also offer students the chance to put their academic skills into professional practice in anticipation of their entrance into any kind of career. We keenly nurture a spirit of entrepreneurship, asking some students to make a pitch to us with them as the product and the internship as the deal. Our work placement-style internships, lasting up to three months, are the chance for students to actively contribute to real projects which Rawlplug has ongoing.

Internships are a two-way street for Rawlplug. The knowledge collected by us regarding how a future workforce may operate and behave allows us to anticipate and plan for the support our employees will one day require.

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Rawlplug internships and work placements 2015

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Learning opportunities for children The Children’s University

We are determined that our positive contributions through education go deeper than college and university level involvement. Participating in the education of younger children has led us to work with institutions like the Children’s University.

The University encourages new interests and passions in children aged 6 – 14, developing their skills in logic and critical thinking, and teaching them the value of an independent and creative approach to solving problems.

Our involvement enables pupils to learn about Rawlplug’s products, processes, and ideas on sustainability. Sessions led by our experts expose children to new ideas and expand their knowledge of the world.

We believe that those attending the Children’s University absorb what they learn, making a connection between education and the world of work. A practical understanding of how the world works will be invaluable later in life. This is why we have chosen to sponsor 12 children of Rawlplug employees to attend the University in 2015.

Children’s University students visit Rawlplug, gain valuable work and project experience Published on sustainable.rawlplug.com 4th of May, 2015

In March 2015, Rawlplug welcomed over 100 children from the Children’s University. Rawlplug’s current programme of education at the University teaches children about our logistics division and lets them take part in practical activities and classroom-based learning.

Over three weekends children took a tour of the warehouse and observed demonstrations. This was followed by a display of the role of the forklift truck in warehouse operations. After this, the children prepared and completed fictitious orders.

“Our involvement with the Children’s University is both incredibly fun for us and valuable for children and Rawlplug as a company. Our work with the University allows us to awaken children’s interest in logistics and enables them to see what life in the working world looks like. Importantly, The leaders’ it enables us to impart the importance of sustainability and efficiency at view the workplace. In our view, sustainability will be vital to the successful operation of any business. By instilling an understanding of this at a young age, we are contributing positive to the development of a responsible and conscientious workforce and society.” Wojciech Krysiak Rawlplug’s Director of Logistics

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Customer Support

Rawlplug’s vision of Corporate Social Responsibility is one of inclusion. We are part of a global community. We are also part of a business community and our vision encompasses the idea that the success of our clients, partners, and distributors is vital to our own success.

As such the positive contributions we make to enable the success of our wider business family is a factor in establishing a sustainable future for Rawlplug and adds to our own prosperity as much as theirs. Technical Support and Training

The knowledge and expertise of our clients and partners should be a direct reflection of our own. Rawlplug’s aim is to increase these across the industry and in so doing to create mutually fulfilling partnerships between us and our clients. To achieve this we run regular training sessions to update information, introduce new products and to be on hand to offer technical support.

The training courses we run are designed for both individuals and companies at work in industrial design and construction, in addition to distributors dealing with specialised products. The sessions are carried out at either a Rawlplug facility or at the client’s own location and consist of presentations which provide the client with important and detailed information regarding our products and brand. These are generally followed by practical demonstrations of the products allowing participants the opportunity to learn their correct application.

To reach a greater number of people with our technical expertise and guidance we also make ourselves available at key industry events. Here we can interact with our end users and provide one-to-one advice and customer service to everyone from property developers to private individuals.

Our attendance at these events is balanced by our presence at various industry-specific conferences and seminars. Here we can play our part as industry pioneers, add to the discussion and make our contribution to the ongoing development of the construction industry.

Rawlplug summarizes its 2015 advisory activities Published on sustainable.rawlplug.com 21st of January 2016

We make every effort to ensure that our team of advisers and trainers reach everyone interested in the Rawlplug offer. In 2015, our local representatives conducted training sessions for many different audiences across Europe and in selected locations on other continents such as Australia, Russia, South Africa, and the Middle East. Customers appreciate the support and availability of Rawlplug technical advisers and trainers, which allows us to enjoy the good opinion of trusted and committed business partners.

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We want to provide comprehensive support, so we prepare tailored training plans for both specialists and end users. In 2015 we performed nine dedicated training sessions for 35 users of Rawlplug gas nailers. We also supported sales teams from Portugal and Ireland to improve their knowledge of our offer. Our experts advised designers and engineers, including 156 from the UK. Last year we filled consultative meetings, heoretical and practical training sessions, bids, seminars and lectures, all of which were appreciated by audiences.

Association Membership

We retain membership of a number of associations and professional bodies. This allows us to keep abreast of developments across the industry and maintain our position within it.

Trade associations exist to represent the interests of companies working in all parts of our industry. They help to shape, develop and protect the entire industry and its practitioners. They are important and proactive professional bodies who work hard to ensure its progress, safety and continuing success.

Our involvement with these associations often involves sitting on committees where we can represent Rawlplug’s viewpoint and take part in discussions and decision making processes. Continued membership and support of these organisations is vital both to the future growth of Rawlplug and its market position. Memberships

United Kingdom

INCA - Insulated Render and Cladding Association

INCA is the recognised trade association for the external wall insulation (EWI) industry.

NIA - National Insulation Association

The NIA represents the insulation industry in the UK and its members include manufacturers and installers of a number of insulation solutions for home and business.

“Membership is very important for our position and future growth in the EWI market. I personally represent the fixings manufacturers on the technical committee of both organisations.”

David Harvey Managing Director, Rawlplug Ltd

CFA – Construction Fixings Association

The CFA is a Trade Association comprising major manufacturers of construction fixings with a significant UK presence.

BMF – Builders Merchant Federation

The Builders Merchants Federation is the represents and protects the interests of merchants and suppliers. Membership provides us with a higher level of access to these merchants

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Ireland

HAI – Hardware Association of Ireland

Hardware Association Ireland (HAI) is the national pe of packaging they place on the Irish market. These fees are used to subsidise the collection and recovery of waste packaging through registered recovery operators across Ireland.

France

CISMA – Construction Infrastructure Sidérurgie et Manutention

CISMA represents all aspects of the French fixings industry and market. Its members are all fixings manufacturers. The aim of the CISMA is to collaborate on lobbying and dealing with approvals, building regulations, direct communication with major French construction companies, and points of technical law.

Poland

Association for Thermal Insulation Systems (SSO) – an industry organisation of leading Polish manufacturers of materials for the performance of external thermal insulation systems.

Association of Flat Roof and Facade Contractors (DAFA) - an organisation of contractors and production / delivery companies working with flat roofs and facades.

Polish Association Fasteners (PSPEZ) - an association of the largest producers in the Polish metal industry. Rawlplug is represented on the board of this association.

Polish Association of Construction Engineers and Technicians (PZITB) - an association bringing together scientific and technical professionals interested in construction issues and related investment issues.

Czech Republic

Česká Asociace Ocelových Konstrukcí (CAOK) – an organisation of entities operating in the metal, building, and construction sectors, and companies specializing in the maintenance, installation and software development in these sectors.

Cech pro zateplování budov (CZB) – an association of entrepreneurs engaged in the production and distribution of insulation systems, their assembly and design, and services in this area.

Slovakia

Združenie pre zatepľovanie budov (OZ ZPZ) – a professional association concerned with the external insulation of buildings, which brings together manufacturers of insulation, fixing contractors and experts.

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CSR People

Rawlplug has a diverse workforce at different stages of their careers and with different priorities in their lives outside work.

Our employees are our greatest asset. By making sure they are taken care of we are safeguarding the present and the future of our company. The sustainable future we talk about will be created by people. We want to look after and develop our own people to become these agents for change.

To this end we are creating a working environment which caters for employees; one which encourages high performance by individuals and matches it as an organisation.

Professional development opportunities and attention to the well-being of our staff are how we inspire our people to reach their full potential.

Employee profile by gender - Rawlplug employees by age all employees

2% % % 1 FEMALE

MALE

LESS THAN 25 YO % 0 1% 25-35 Y/O

% 24 36-45 Y/O Employee profile by gender - 46-55 Y/O management

56+ Y/O 2%

FEMALE IN LEADERSHIP POSITIONS MEN IN LEADERSHIP POSITIONS 2 % %

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Professional Development

It is important that we understand where we are strong and identify where we could be stronger. The ever-changing nature of the global market demands we pay constant attention to our own efforts.

Through regular evaluation of our people and their competencies we can identify which individual qualities and skills lead to our success. From here we can develop and nurture these qualities and guide our employees into becoming the future leaders of Rawlplug. Management by Objectives (MBO)

MBO is an efficient and creative way to work towards common strategic goals. Many employees are given monthly, quarterly or yearly objectives. Meeting these objectives successfully is often rewarded with a financial bonus. However we often find that the true motivator is something else: pride in a job done well and the desire to be worthy of additional responsibility. This says a lot about Rawlplug’s employees. The Project Management Office (PMO)

Change management is essential to business survival, and Rawlplug recognises this. The ability to quickly adapt and shift focus is what can keep a company on track. Rawlplug employs a project-focused approach to managing change.

NUMBER OF EMPLOYEES 2013 2014 2015 WORKING ON PROJECTS 145 208 207

In support of this, Rawlplug has established a Project Management Office (PMO).

The Project Management Office provides continuous support to employees completing specific projects, designed to increase their project management skills. We do this by giving employees access to high-quality training, tools and processes, as well as valuable support when required.

This new organised approach to project work has resulted in greater productivity (previously proven methodologies can be employed during the planning stages, thus saving time and effort). It has also created a positive atmosphere of collaboration and communication by bringing together colleagues from different departments and often different countries to work together as a team.

The Project Management Office was created for our employees’ benefit and is a valuable opportunity for them to increase their skills and develop their careers at Rawlplug.

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Training and skills development

We have a regular programme of development activities in place for our people. Class-based training courses are designed to enhance the skills and qualification levels of employees. Detailed training on our product range and its applications is provided to many of our employees. This ensures a consistency of knowledge and skills across Rawlplug. Constant updating of skills is essential in maintaining a high standard of service. These courses broaden and improve technical knowledge or improve customer service skills for the overall benefit of the company.

In 2014 we began a training programme for Rawlplug management. The first 14 trainees were from the highest level of management. They took part in 10 workshops based on different management subjects. By the time this programme was completed early in 2015 another intake of 26 trainees – this time lower level managers – had already started their training.

As an international company we embrace the languages and cultures we do business in. At present we are providing language tuition to over 90 employees whose roles within the company would benefit from their ability to speak few languages.

Looking after our people is about developing their potential and increasing the satisfaction they feel from excelling at their duties. We have already committed to increasing the amount of training made available to employees across the whole Rawlplug group of companies and the results speak for themselves.

2013 2014 2015 TRAINING HOURS PER EMPLOYEE 9.8 17.3 13.7

Safety

In our industry more than many others safety plays a large part in the working day. Accidents do happen at work and we recognise this, but we are working very hard to improve the safety of our employees and reduce these instances. We are monitoring current procedures and making changes to ensure this reduction happens.

Comparison of work time lost due to accidents 2014 2015

Number of work accidents 37 22

Time lost / sick leave caused by work accidents (days) 931 592

Time lost / sick leave caused by work accidents per employee (days) 0.5 0.29

Time lost per employee (sick leave days in total) 9.21 8.94

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Employee Wellbeing

For Rawlplug, employee wellbeing is about caring for our employees and their families. It’s about taking an interest in their lives and happiness. This has been the case for many years.

Employee wellbeing is an essential part of our continued success and our sustainable future. Addressing the needs of those closest to us runs parallel to our responsibility to the wider community and the environment.

How we look after our employees takes many forms, and we support both individuals and groups as they pursue good health and personal happiness. Youth activities and sponsorship

Rawlplug’s tradition of caring for employees and their families includes providing trips away each summer to relax and recharge or extra treats for the children throughout the year. This can mean sport camps for children, a special Christmas package or a holiday for the whole family. The Rawlplug Social Fund was created to provide opportunities like this and the holidays in particular have become a huge success.

Holidays by the sea with Rawlplug Published on sustainable.rawlplug.com 9th of September, 2015

We recently organised holidays by the Baltic Sea for employees and their families in what has become a Rawlplug tradition. This year the holiday trips enabled almost 300 people to stay on the coast. The holidays were divided into two: a holiday for the whole family or a summer camp for children.

Rawlplug has arranged these holidays for a number of years thanks to the success of our Social Fund. We make a great effort to give employees the chance to relax with their loved ones, and to establish relationships with co-workers, which can often be difficult to do during our busy working days.

Rawlplug Global Corporate Sustainability Report 2016 44 CSR Special Initiatives – Modeco Challange

Introduced in the spring of 2014, the Modeco Challenge is a unique scheme that brings together Rawlplug customers, distributors and business partners as part of a community of construction professionals and DIY enthusiasts.

2015

Rawlplug’s Modeco brand has a loyal following, and the challenge was created to encourage knowledge sharing between them, promote a healthy lifestyle through participation in sport, and create the desired balance between personal and professional interests. Modeco Fit

Rawlplug believes that an active lifestyle is a healthy lifestyle. From exercise, to nutrition and motivation, Modeco Fit provides fact-based advice and information on how to achieve a healthy lifestyle. What’s more, through the RUN and BIKE components of the Modeco Challenge, members have the chance to square off against each other and Rawlplug employees in sporting competitions hosted virtually on the Endomondo platform. Modeco Rewards

The Modeco Challenge includes a reward scheme for it members. As a thank you for their loyalty and buying preferences, they are presented with points which they can convert into gifts, travel or leisure.

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Knowledge Sharing Modeco Show

Modeco Show events are a chance for users and clients to meet each other and Rawlplug experts. Advice and training is on hand regarding new products and working techniques, and attendees can benefit from attractive special offers. We held these events regularly in 2014 and 2015 at various locations or onsite with our clients.

Modeco Show 2015 brings together more than 200 partners to learn more about new products from Rawlplug and its brands Published on sustainable.rawlplug.com 18th of May, 2015

In February and March Rawlplug organised two editions of the Modeco Show. The events were each held over two days and over 200 of our key clients and business partners attended.

In many ways, the Modeco Show is like an exclusive trade fair – showcasing the goods and services of a select number of brands to a limited number of like-minded enthusiasts. As such these events are the ideal environment for networking and increasing contacts. Attendance at the recent shows actually exceeded expectations, and the level of enthusiasm to share knowledge and information was greater than ever.

Attendees were able to attend training sessions as part of Rawlplug’s ambition to promote higher working standards across the construction industry. They could also view new products and were offered the chance to try them out alongside our trained Modeco Academy experts. Our experts’ advice and guidance gives attendees a unique insight into Rawlplug’s product portfolio and how it fits into the industry as a whole. This information can be then factored into their own operations as they create new business opportunities.

“The attendees of the 2015 edition of the Modeco Show have left the show armed with a great amount of information and insight relevant to their industry. They also leave knowing that, in Rawlplug, they have a partner that is committed to supporting them and to promoting best The leaders’ practice across the industry. Modeco Challenge and the Modeco Show view are strategically important to Rawlplug – these initiatives enable us to strengthen our relationship with clients, partners and distributors. We strongly believe in the value of building a strong and sustainable network of individuals and companies that share the same values as Rawlplug. The Modeco Show helps us to achieve this.” Jacek Biedroń Managing Director of Koelner Polska

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Modeco Truck

The truck is an extremely clever and entirely customer-focused idea to bring our products and knowledge directly to clients. The truck visits customer ‘hot spots’ and individual premises and sets up to offer and deliver expertise and product support. This initiative creates an even closer relationship between Rawlplug and its clients, letting them know that we can be on hand whenever and wherever we are needed.

2014 2015 Launched on 27th of June Travelled over 50,000 km. Did 140 shows. 102 Modeco Truck 131 presentations in numbers presentations 5,000 13,320 participants participants

Modeco Academy

Rawlplug actively seeks to evolve and promote best practices across the industry. The best place to start is with our employees, our business partners and our distributors. By improving their qualifications, we are better positioned to influence the market.

The Modeco Academy ensures that we have the knowledge and expertise to back up our development achievements. Through the academy we produce qualified trainers and recognised experts who are able to pass on their knowledge and skills to clients, distributors and end users.

To date we have trained 18 trainers internally, and we plan to train many more. The technical information and practical skills they have been given continues to grow, and the expansion of their influence within the company is part of our ambition to have a Modeco Academy- trained representative available wherever a client needs assistance.

Rawlplug Global Corporate Sustainability Report 2016 47

The Modeco Academy programme also included four Knowledge Invasions in 2015 to increase participation in vital training. Each event had a target audience of sales representatives and members of the company’s DIY division.

The Knowledge Invasion gives employees the chance to learn more about new products and products in development. Importantly, it does not focus exclusively on product knowledge or competency development, but takes a holistic view that results in both competency levels and overall product knowledge being dramatically improved.

Knowledge Invasion helping to enhance development opportunities and sales efforts at Rawlplug Published on sustainable.rawlplug.com 19th of June, 2015

In spring 2015, 105 sales representatives took part in the second edition of Knowledge Invasion – a series of training sessions organised as part of the Modeco Academy learning programme.

At each Knowledge Invasion, there are ten learning stations – each one dedicated to a different topic determined by market factors and trends, and also by strategic objectives set out by the Rawlplug Group.

The Knowledge Invasion helps Rawlplug create an internal community of experts and product specialists, strengthening our ability to compete on the market. In addition to boosting qualifications and product knowledge, each session raises the profile of the brand. We can ensure the knowledge and working methods deployed by our sales representatives is consistent, and we can keep our people informed of new developments.

“The Knowledge Invasion is a great – and fun – way for our sales professionals to improve their product knowledge and selling skills. It empowers them to perform better, and so positively influence their career paths. The Knowledge Invasion forms part of the Modeco Academy learning The leaders’ programme, through which we are demonstrating our commitment to view providing the right training and support to our people, and ensuring they have everything they need to succeed in their jobs and take maximum satisfaction from their work at the Rawlplug Group.” Jacek Biedroń Managing Director of Koelner Polska

Rawlplug Global Corporate Sustainability Report 2016 48 ENVIRONMENT

Any notion of sustainability must, by its very definition, have the environment at its core.

In ecology, sustainability is defined as ‘the capacity to endure’. From a business perspective, everything we task ourselves to do is geared towards a similar result.

From carefully managing the finite resources our planet offers us to guaranteeing a secure future for generations to come, our relationship with the environment is about duty, care, and respect for its continued prosperity as well as our own.

As a global organisation Rawlplug knows that it has a great responsibility in this area. We wholeheartedly embrace this responsibility, which is why we build it into our entire business approach. Every development we make carries a requirement to factor in environmental impact and our carbon footprint. Reducing both of these is key to achieving our sustainability goals.

Across entire Rawlplug we continue to adopt environmentally sustainable practices. Our offices utilise creative approaches to their working methods. Our production halls seek to develop and employ new techniques and equipment, and the storage and transportation of our products and stock is constantly examined and adapted.

Improving our relationship with the environment is the surest way to secure a sustainable future. Rawlplug recognises this, and as part of our sustainability efforts we have implemented an Environmental Management System (EMS)

The ISO 14000 series of standards offers practical tools for companies to manage their environmental responsibilities. ISO 14001 By following the framework mapped out by ISO 14001 standards, Rawlplug’s Environmental Management System provides a formal, standardised system for improving the efficiency with which we use raw materials, reduce the volume of waste generated and operate with greater energy efficiency.

Our goal of supplying our clients with high quality, innovative products is expertly dovetailed with a strong desire to reduce our environmental impact to an absolute minimum.

ISO 14001 certification enables us to do this and provides us with a recognised framework to formalise our environmentally focused practices and to benchmark them against industry best practices.

Using ISO 14001 can provide assurance to company management and employees as well as external stakeholders, business partners and clients that environmental impact is being measured and improved.

Rawlplug Global Corporate Sustainability Report 2016 49 ENVIRONMENT Packaging

Our holistic approach to packaging operations ensures that every aspect – from design through to procurement and transport – serves to minimise their adverse environmental impact.

Packaging Design and Operations

In 2014, we completed the redesigning of our packaging according to environmentally friendly design principles.

We understand that environmentally friendly packaging goes beyond design. As part of the decision taken by Rawlplug in 2011 to overhaul its approach to packaging, we sought to address the way we procure, store and transport the packaging used for Rawlplug products.

The new packaging has been designed with attention to the environment, and consists of environmentally friendly materials. The packaging is made of high quality, fully recyclable cardboard containing 98% cellulose. We use sustainable ozone friendly water- based inks for the printed elements that appear on our packaging.

CONSUMPTION OF PAPER 2014 2015 (TONNES) 1,659.226 1,347.134 -18.81%

Through the exchange, unification and optimisation of packaging we now use less cardboard! As illustrated in the table, in 2015 we reduced consumption by as much as over 312 tonnes compared to 2014. This equates to saving 5,306 trees from unnecessary destruction in 2015 compare to 2,178 in 2014. Packaging models

Rawlplug’s packaging operations were audited in 2011. The results of the audit highlighted that the company was using a high number of packaging models and types across its different brands. This lack of standardisation led to inefficiencies in logistics operations (i.e. trouble achieving optimal utilisation of pallets and transport loads), an inability to extract maximum value from suppliers, and missed opportunities to create a stronger brand.

Effectively, the audit identified an opportunity to greatly improve the company’s handling, storage and transport resources.

Rawlplug Global Corporate Sustainability Report 2016 50

By the completion of the project, the total number of models and types of packaging had been reduced from 152 to 71. This included both single product and multiple-unit packages.

What this accomplished in one action was the initiation of a programme of standardisation throughout, the enhancement of the visual identity of the brand, and a streamlining of the packaging and logistical operations of the company. Collaboration with partners

After studying the full results of the audit we identified the potential benefits gained by consolidating the number of our packaging suppliers and building stronger and more dedicated relationships with them.

To this end arrangements were made whereby 100% of packaging orders are produced in advance and held as stock by the suppliers. They simply require one of Rawlplug’s procurement departments to make a request. This new way of working yielded the following benefits:

§§ Fewer packaging orders made and less money spent on them. For example, when comparing figures for 2014 and 2015, the Rawlplug reduced the volume of packaging ordered by a 22% and are delivered Just-in-Time. §§ Although orders are larger in volume they are fewer in number. This makes for a greater efficiency when producing the packaging and is a more cost-effective approach. §§ The ability to request packaging only when required. This shortens the time between request and delivery, thus maximising the immediate availability of the company’s financial and physical resources (previous standing stock levels of 6 weeks were reduced by two thirds, equal to 520 pallets’ worth of space and packaging). §§ Lower packaging stock levels mean reduced risk of damage and financial loss, and reduced efforts required for monitoring inventory. §§ Reform of the ordering process and reduction in costs has led to fewer invoices and improved cash flow. The amount of resources required to manage the entire process diminishes.

Transport

Closer and more exclusive working relationships with our packaging suppliers have enabled us to establish warehouse spaces closer to Rawlplug’s own production facilities. This combined with the restructuring of the ordering process means that although suppliers make more frequent deliveries, they actually travel a shorter total distance. In 2015 there was a 49% increase in the number of deliveries, but the reduced distance travelled meant an actual decrease of 43% in CO2 emissions. Measures such as these are clearly and significantly lessening our environmental impact.

CO2 EMISSIONS DUE TO THE 2014 2015 TRANSPORT OF PACKAGING (G) 16,307,200 9,228,000 -43%

Rawlplug Global Corporate Sustainability Report 2016 51

Labels

In 2014 Rawlplug made a decision to completely overhaul how product labels are produced. This decision has led to a notable decrease in both the environmental impact and the financial cost of label procurement. Labels as part of the Sustainable Rawlplug vision

The decision to take on the responsibility of producing its own labels was made by Rawlplug in line with its overall intention to create a much more environmentally friendly model for the packaging and labelling of products. The company now retains total control of labelling operations, thereby reducing the costs involved and giving the company a stronger hand in determining its sustainable future.

Rawlplug made an investment in the necessary polygraph printing apparatus and made the wise choice to place this new capability within its existing production facilities in Wrocław, Poland. Locating label production here has multiple benefits, not least of which is the considerable reduction in the distance labels need to travel between production and final destination.

By taking on this responsibility, the company effectively reduced the stages involved in the production of labelling, thus creating a smoother, closer, and more easily managed relationship between labelling production and end user.

Internal production means that Rawlplug can oversee all aspects of its label production. Greater attention can now be paid to quality, innovation and cost. Resources and raw materials can be managed in complete accordance with Rawlplug’s sustainability plans and practices. Motivations to change

In addition to the benefits already mentioned, this move into autonomous label production has brought about numerous other benefits:

§§ We will gain greater flexibility to adapt to production patterns. §§ By reducing stock we can reducing storage requirements and free up capital which was previously tied up in label stock. §§ We gain the advantage of being able to count on a supplier 100% in tune with Rawlplug’s needs (i.e. no waiting for availability of materials, intimate knowledge of products and needs and the ability to tailor processes that help Rawlplug achieve compliance ‘as standard’ and not requesting print houses to adopt industry-specific requirements). §§ We are less subject to Minimum Order Quantities (MOQ) and Lead Time (LT) dictated by third-party suppliers, thereby ensuring greater control over process. §§ We can dramatically reduce the number of processes required to design and print labels. §§ A systematic reduction of dependence on third-party suppliers. §§ Reduced output thanks to ‘produce only what is needed’ approach. §§ Adverse environmental impact will decrease, thanks to being aligned with a sustainability-focused client and having the opportunity to establish printing operations with sustainability baked in (and not trying to retrofit sustainability into out-dated operations).

Rawlplug Global Corporate Sustainability Report 2016 52

Rawplug now has a single supplier and is their sole client. Their attention is 100% focused on Rawlplug, and their standards and goals are our standards and goals. This sets us apart from our competitors. Implementing the change

Once the decision had been made to bring label production in-house and the Management Board had voted to begin, the project moved forward at pace.

February 2014

§§ Acquisition of digital printer and a flexographic printing station. §§ Eighty square metres close to production operations are chosen for conversion into a professional printing environment.

July 2014

§§ Installation of the printers and printing station. §§ Calibration and testing begins.

September 2014

§§ Production successfully commences.

Rawlplug’s label production and consumption

§§ Annual consumption – 16,685,290 individual labels. §§ Rotation within a 90-day period – 8,808,410 individual labels used. §§ Value of labels purchased annually – approximately 267,000 EUR. §§ The print house operates on two shifts, ensuring working hours that match the needs of the business.

Stock control and rotation

Smaller, faster-moving stock has increased effectiveness and reduced inventory-related work.

Today, rotation of stock is acceptable within a maximum period of three months. In 2015, we procured 23,286,000 labels. Of this amount, 8,808,410 labels – or 88% – were used within three months of production.

By investing in the construction of label printing capabilities, Rawlplug has been able to eliminate the number of labels that are likely to go unused, thereby creating the potential for huge savings and dramatic reductions in the volume of resources that are wasted. Stock accumulation

By producing labels in line with actual needs, Rawlplug will be able to avoid the year-on-year increase of stocks. In the past, stocks have increased by as much as 1.6 million labels each year. This new process has already yielded impressive results.

Rawlplug Global Corporate Sustainability Report 2016 53

Number of deliveries

Despite Rawlplug’s proprietary label printing capability coming on line in the second half of 2014, this was enough to have an immediate impact on the number of label deliveries.

2014 2015 NUMBER OF LABEL DELIVERIES 671 400 -40%

The benefits or proprietary label-production capabilities

§§ Optimisation of logistics operations. Rawlplug would have complete control over production, lead times, and delivery dates. §§ Smaller, faster-moving stock amounts leads to an overall increase in effectiveness and a reduction of inventory-related work. §§ Greater control over type and volume of resources used and freedom to implement Rawlplug’s eco-friendly practices.

By implementing digital printing as part of proprietary label-production

§§ We are more flexible (we can create proofs and labels in different amounts of different sizes) §§ We have the opportunity to innovate, realize new products , and adapt our labelling accordingly §§ We can provide customers with real proofs of labels (not only PDFs but we can also send e-ready labels) §§ We can isolate and modify specific labels §§ We can rigorously test the labelling on products (their adhesion, and their resistance to abrasion and high / low temperatures)

Rawlplug Global Corporate Sustainability Report 2016 54 ENVIRONMENT Carbon Footprint

Rawlplug is continually mindful of its carbon footprint. As an indicator of the progress of our sustainability efforts, we regularly measure it and address ways to reduce it. It is central to our ambitions to grow as a business whilst embracing our responsibility towards the environment. Across the Rawlplug

organisation, we have reduced our CO2 emissions by over 30% since 2007.

Our carbon footprint is measured across manufacturing sites, distribution operations and subsidiary branches in several different countries. It is a complex process and we are constantly refining it. As we work to reduce our footprint we are also working to calculate it as accurately as possible.

Fabryka Pił i Narzędzi “WAPIENICA” Sp. z o.o. (PL) UA

Koelner Trading KLD (RU)

Rawlplug S.A. (PL)

PL

RU IE

UK CZ

AE PL LT SK PT FR SE DE

Koelner Łańcucka Fabryka Śrub Sp. z o.o. (PL) Headquarters

Distribution companies

Production plants

Rawlplug Global Corporate Sustainability Report 2016 55

n 2015 awlplugs carbon footprint was 4,404.82

tonnes of 2

ats % less tan 2. in 2014

is euates to tonnes 2.2 of 2 per eployee ilogras ats 288. of 2 % per 1 of .5 revenue generated less tan in 2014 56

How do we measure our carbon footprint?

We use a Lifecycle Assessment approach to measure our carbon footprint. In the context of Rawlplug’s key business activities, this means measuring the emissions generated and emitted during the process of sourcing raw materials, production, sale, useful life and, ultimately, disposal of our products.

To calculate our carbon footprint, we focus on the following:

§§ Electricity consumption §§ Use of thermal energy §§ Water consumption §§ Fuel consumed and emissions generated by company cars §§ Consumption of gas for industrial use §§ Consumption of gas for heating §§ Gas consumed by forklift trucks §§ Use of hazardous chemical substances for production purposes §§ Volume of waste materials generated (hazardous and non-hazardous) §§ Pollutants (such as greenhouse gases) emitted into the atmosphere

Usage Comparison per 1,000 euro of revenue 2014 – 2015

Parameters Total Total Diff. Unit Monitored 2014 2015 %

Number of cubic metres of water Water consumption m3 849.26 607.38 -28.48 used per 1,000 EUR of revenue.

GWh of energy used per Energy consumption GWh 1,000 EUR of revenue. 0.19 0.18 -8.88

Cubic decameter (dam3) of gas used Use of thermal energy dam3 22.99 22.70 -1.27 per 1,000 EUR of revenue generated.

Fuel consumed and emissions L Litres of fuel used per 1,000 5,456.23 6,962.82 27.61 generated by company cars EUR of revenue.

Gas consumed by Mg gas for forklifts used per Mg 9.78 0.59 -94.00 forklift trucks 1,000 EUR of revenue.

Consumption of gas Mg technical gases used per Mg 1.77 0.99 -43.98 for industrial use 1,000 EUR of revenue.

Volume of waste materials generated (hazardous and Mg waste (without recycled waste) Mg 9.73 7.76 -20.26 non-hazardous) excluding per 1,000 EUR of revenue. recyclable waste

Mg of waste recycled per Recycling of waste Mg 2.59 4.41 70.43 1,000 EUR of revenue.

Rawlplug Global Corporate Sustainability Report 2016 57

Energy Consumption and Waste Recycling Comparison 2014 – 2015

Parameters Total Total Difference Diff. Explanatory Unit Monitored 2014 2015 in amount % Note

The reduction of water consumption in most companies is a result of the Water consumption m3 129,636.000 97,637.720 -31,998.28 -24.68 education of workers and actions aimed at reducing environmental impact.

The effect of the installation of two gas furnaces in factory in Energy consumption GWh 29.695 28.494 -1.20 -4.05 Łancut (PL) in 2014 is an overall reduction in power consumption.

The increase at the Łancut plant is due to the purchase and installation of two gas furnaces for Use of thermal energy dam3 3,508.900 3,648.443 139.54 3.98 technological purposes in 2014 (an increase in gas consumption, but a marked decrease in electricity consumption).

The increase is due to Fuel consumed and emissions the higher number of km L 832,871.000 1,119,288.185 286,417.19 34.39 generated by company cars travelled - mainly through own transport in Ukraine.

Replacement of gas Gas consumed by Mg 1,492.600 94.35 -1,398.25 -93.68 forklifts forklift trucks with electric forklifts.

The effect of investment Consumption of gas in new installations of Mg 269.440 158.959 -110.48 -41.00 for industrial use compressed air equipment at the Łancut plant in 2014.

A reduction in the amount Volume of waste materials of waste generated due generated (hazardous and Mg 1,485.368 1,247.317 -238.05 -16.03 to increased levels of non-hazardous) excluding waste recycling and the recyclable waste education of employees.

Inclusion of new Recycling of waste Mg 394.63 708.29 313.66 79.48 fraction for recycling.

Achieved by reducing the number of cartons used Amount of packaging Mg 1,173.20 716.52 -456.68 -38.93 - a project related to the launched on to markets new packaging system completed in 2015.

Rawlplug Global Corporate Sustainability Report 2016 58 ENVIRONMENT Environmental Impact

Reducing demand for raw materials

A core principle of our production activities is the rationalisation of our usage of raw materials. We analyse all options available and factor environmental impact into our considerations at every stage. Where raw natural materials are deemed to be the most suitable option, we seek to restrict their use to the absolute minimum. We also seek to limit our use of harmful substances to an absolute minimum. We do all of this to reduce our impact on the natural environment, to protect the health of our employees and to optimally position Rawlplug as a sustainable company capable of being successful in a future where environmental responsibility and sustainability will be intrinsically linked to competitiveness.

Our reduction of the use of raw materials is a complex and ongoing endeavour. We constantly examine our manufacturing processes for ways of minimising raw materials used and waste generated. As production continues to increase, the volume of raw materials will also increase. However this can be offset by improving the efficiency of production and reducing the amount of waste produced. This brings about a net gain when all figures are taken into account.

Rawlplug Global Corporate Sustainability Report 2016 59

Comparison of raw materials used – Rawlplug S.A.

Our most important raw materials and the four that we use the most of are Polypropylene (PP), Poliamyde (PA), resins and hardener.

onsuption % of increase in 2015 copared to 2014

.

esins ardener 41.00

0 40 20 0 20 40 0 80 100

Parameters Diff. Explanatory Unit 2014 2015 Monitored % Note

Increase due to change in PP and PA used per 1,000 units 8.50 9.14 7.51 assortment. Different products and hours of production sizes between 2014 and 2015.

Resin & Hardener used per units 28.65 27.65 -3.50 Total hours worked in the chemical 1,000 hours of production department has increased by 46%.

A decrease in the consumption of raw materials in the chemistry department, despite the increase of 28% in sales of chemical fixings when compared to 2014 – specifically hardener and resin – is caused by an increase of worked hours in the departament by 46%. In addition, the department increased its efficiency.

Results for Plant in Wrocław show that increases in materials (PP and PA) used are due to an impressive growth in production between 2014 and 2015. The total amount of raw material used per working hour indicates a much more efficient and sustainable approach to the overall demand for (and use of) raw materials.

Rawlplug Global Corporate Sustainability Report 2016 60

Comparison of raw materials used - Koelner Łańcucka Fabryka Śrub Sp. z o.o.

e aount of waste on te production onsuption of wire rod t anufacturing waste g

2,4 ,11 2014 2014

2,208 2,20 2015 2015

0 5000 10000 15000 20000 25000 0000 0 500 1000 1500 2000 2500 3000 3500

e sare of waste per g of anufacture tecnology waste % se of wire rod per g of production %

1.05 1.15 2014 2014

12.50 1.12 2015 2015

0 12 15 0.0 0.2 0.4 0. 0.8 1.0 1.2

onsuption of rolled etal on 1,000 units produced g

52. 2014

45.1 2015

0 10 20 0 40 50 0

Apart from those used for production in the forging department, and an increase in the lower range, overall consumption of raw materials at Koelner Łańcucka Fabryka Śrub Sp. z o.o. has decreased. This can be attributed to a marked increase in the efficient use of materials, leading to a drop in the amount of waste generated. In fact the share of waste per kilogram, after falling in 2014, has continued to see a steady decline in 2015/16.

This reduction has been achieved by improving the technology utilised during production as we strive for non-waste production growth. We have already significantly lowered the levels of waste created by bolt and screw manufacture. The varied production mixes from year to year continue to affect the results accordingly.

It is through the judicious use of our raw materials that we can achieve consistent reductions in the levels of waste generated, while still dealing successfully with production demand.

Rawlplug Global Corporate Sustainability Report 2016 61

Comparison of raw materials used - Koelner Łańcucka Fabryka Śrub Sp. z o.o. (continued)

% Parameters monitored Unit 2014 2015 Diff.

Consumption of wire rod t 27,394.36 26,208.45 -4.33

Use of wire rod per kg of production % 1.15 1.12 -2.61

Consumption of rolled metal on 1,000 units produced kg 52.79 45.13 -14.51

The amount of waste from production (manufacturing waste) kg 3,116.49 2,919.93 -6.31

The share of waste per kg of manufacture (technology waste) % 13.05 12.50 -4.21

Production at forging department t 23,884.28 23,366.52 -2.17

1,000 Production at forging department 518,939.52 580,787.98 11.92 pc.

Comparison of raw materials used - Fabryka Pił i Narzędzi “WAPIENICA” Sp. z o.o.

onsuption of solder onsuption of ceented carbides

21 2,54,188 2014 2014

15 2,584,88 2015 2015

0 50 100 150 200 250 00 0 500 1000 1500 2000 2500 000

onsuption of steel

1,088 2014

1,0 2015

0 200 400 00 800 1000 1200

Rawlplug Global Corporate Sustainability Report 2016 62

Comparison of raw materials used - Fabryka Pił i Narzędzi “WAPIENICA” Sp. z o.o. (continued)

% Parameters monitored Unit 2014 2015 Diff.

Steel used per 1,000 EUR of income t 138.34 133.01 -3.85

Cemented carbides used per 1 EUR of income units 337.51 331.88 -1.67

Solder used per 1,000 EUR of income kg 34.46 22.47 -34.80

A decrease in the consumption of steel and cemented carbides was due to work on improving processes and reduction in defective parts.

In 2015, we saw a decrease in the consumption of solder, which is a result of the type of product range manufactured, in particular the dimensions of brazed carbide plates (length and width). In 2014 we produced an extensive amount of large saws and extra-large plates, which had a direct effect on the consumption of solder during this period.

Employee education

Our policies around selective waste collection are effective only in combination with education.

Rawlplug runs employee educational programmes and carries out regular audits to monitor progress and performance. These educational programmes empower employees to deal with waste safely and responsibly. In 2015 354 employees have benefitted from these programmes.

Our team of internal specialists are dedicated to identifying and classifying the different types of waste being produced, and determining how best to process them.

All of these activities across the Rawlplug Group are supported and guided by our Environment, Health and Safety department (EHS).

Fleet Management and Upgrade

We are fully aware of the link between vehicle age and carbon emissions. For this reason, we committed to ensuring that all of our vehicles comply with the EU European emission Euro 5 standard. A plan for compliance with this standard was developed back in 2010 and was realised in full by the end of 2014. This commitment forms part of our continuous analysis of the fleet and our efforts to reduce its emissions. Keeping in mind the impact of our fleet on the environment we look to manage it according to the principles of sustainable development.

Rawlplug Global Corporate Sustainability Report 2016 63

To constantly improve levels of operational efficiency we carry out a cyclical exchange of the fleet, taking into account the latest technological solutions available on the market. When purchasing a new fleet we carefully analyze the carbon dioxide emissions of potential additions; this is one of the most important parameters we look at during the selection process. Therefore, as one of the first companies in the industry to do so, we chose to include hybrid Toyota vehicles in our fleet. These cars emit fewer emissions and also generate less noise.

As a market-leading company with an international presence we continue to work hard in this area and have built up an enormous amount of experience and knowledge regarding the best practices for the successful management of a fleet of vehicles. As always, part of our philosophy is to share our knowledge in the interests of increasing standards across the industry.

Our approach to sustainability demands that we take the long view. We firmly believe that investment we are making today will greatly benefit both the environment and our business interests tomorrow.

We actively promote and educate our employees on the principles of safe, economic and environmentally responsible driving practices. In 2014 and 2015 81 Rawlplug employees participated in safe driver training courses.

Rawlplug promotes safety on the roads Published on sustainable.rawlplug.com 18th of February, 2015

In 2014, Rawlplug organised a number of Safe Driving sessions for employees.

A total of 78 employees took part, most of whom have roles that require them to be on the road for a large portion of their time.

Rawlplug takes the safety of its employees – and that of other drivers – very seriously. By ensuring our drivers are well trained and understand the principles of safe driving, Rawlplug is demonstrating a commitment to making roads safer for all motorists.

The one-day courses featured a mix of theory and practical training. Activities included setting the optimal driving position, slalom exercises, braking in slippery conditions whilst avoiding obstacles, and driving with special goggles to simulate driving under the influence of alcohol.

These courses are part of our long-term strategy to improve the safety of our people on the road. In the future, Rawlplug will be funding more training in safe driving.

Rawlplug Global Corporate Sustainability Report 2016 64

Safety Assurance

Rawlplug creates and produces complex products for complex applications. We take great care in ensuring that the product itself is fit for use and accurately labelled, and that it is carried safely to its ultimate destination. User Safety

We keep up to date and comply with all legal requirements relating to our products and their packaging.

Our highly qualified specialists deal with the preparation of our Material Safety Data Sheets (MSDS). The due care invested at this stage ensures that our products and accompanying literature are compliant with REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), GHS (Globally Harmonized System of Classification and Labelling of Chemicals) and CLP (Classification, Labelling and Packaging) regulations.

This compliance represents part of our overall desire to ensure our products are safe to use and have a limited impact on the natural environment. Transport safety

Whether by land, sea, or air, the transportation of our products strictly adheres to relevant legislation regarding the movement of dangerous goods. Our specialist staff receives refresher training in all transport legislation to ensure the simultaneous protection of our products in transit and the environment.

Land - Our existing safety record combined with close adherence to the terms of the international treaty on the transport of dangerous materials (ADR) allows us to reduce the amount of paperwork necessary for the transport of our products. This speeds up the transportation process and reduces our operational costs.

Sea - Our packaging and transport solutions have been developed in accordance with the IMDG (International Maritime Dangerous Goods) code. The code places great importance on the segregation of incompatible substances and the labelling of environmentally hazardous substances.

Air - Rawlplug works according to the IATA’s (International Air Transport Association) Dangerous Goods Regulations (DGR). Operating within these strict guidelines ensures safe transportation of our goods and gives our international clients peace of mind.

Rawlplug Global Corporate Sustainability Report 2016 65 SUPPLY CHAIN

We are committed to the idea of a sustainable supply chain.

Rawlplug is a global company, producing and selling billions of products around the world. To succeed in this while holding on to our vision of a sustainable future, we need a like-minded community of suppliers and logistics partners, and an efficiently designed and operated supply chain.

The supply chain is a critical structure encompassing our entire operation and connecting us with our end-users. It is an interlinking series of activities which runs from the sourcing and use of our raw materials all the way through to how an individual user might receive and utilise the product we have produced.

In terms of sustainability it has long been clear to us that incorporating environmentally-oriented thinking into our supply chain management strategy is logical from a business perspective as much as a from sense of responsibility. The nature of the business world today means that supply chain sustainability has become vital to the realisation of long-term business goals. Its importance is such that it is often used as a way of measuring the profitability of logistical operations (more so than traditional indicators such as cost and speed). Rawlplug thinks sustainably

Rawlplug is fortunate in that it has already gathered speed in its sustainability efforts and developed an understanding of what is required of us if we are to achieve our ambitions. We are still learning, which is as it should be. Sustainability is an ongoing endeavour.

As a company we have recognised that sustainability must be embedded into supply chain operations. This involves the whole process, from supplier management and product design to manufacturing and distribution.

Rawlplug Global Corporate Sustainability Report 2016 66 SUPPLY CHAIN Sourcing

Collaboration with suppliers

One of the key requirements of successful sustainable supply chains is collaboration. Creating relationships with our suppliers which are mutually rewarding is the goal we aspire to when deciding who to work with across the world. It is a complex process which involves the study of many factors, including the suppliers’ environmental and social philosophies.

By building long-term, stable relationships and working closely with our supplier ecosystem, our partners are better able to understand our needs. Supplier Audits

Rawlplug regularly conducts audits of its suppliers to ensure conformity with our expectations. We believe that choosing and collaborating with suppliers should go beyond simply cost, technical quality and customer service; we have implemented processes and criteria that help us to select suppliers who care about their people, their communities and the environment.

So while quality and cost are vital, equally important is how the supplier approaches issues such as environmental impact, working conditions and the health, safety, and wellbeing of its employees.

We also ensure they hold valid and recognised certification. As part of the supplier audit process, we typically study the presence or implementation of the following industry-standard certifications and practices:

QUALITY MANAGEMENT ISO 9001 SYSTEM (QMS)

ENVIRONMENT MANAGEMENT ISO 14001 SYSTEM (EMS)

OCCUPATIONAL HEALTH AND SAFETY ADVISORY SERVICES OHSAS 18001 MANAGEMENT SYSTEM

In addition and where applicable, we check for product- specific certifications, such as Factory Production Control (FPC) European Conformity for products used in construction.

In 2014 Rawlplug carried out 156 supplier audits on suppliers in the Far East and further 6 in 2015

Rawlplug Global Corporate Sustainability Report 2016 67

.

We encourage our suppliers to study the Rawlplug Code of Ethics to learn more about us as a company and the expectations we have of our current and potential suppliers. This will enable them to adopt its tenets and behave in accordance with them.

A perfect example of how important our choice of suppliers is to our sustainability efforts can be seen in the way we approached the overhaul of our packaging operations (see Environment). By reducing our suppliers but strengthening our relationships with them we were able to create a stronger, more successful, more sustainable way of working, not just for ourselves but for the suppliers as well. TAITRA

Rawlplug actively contributes to the development of the Taiwan External Trade Development Council (TAITRA). a non-profit organisation dedicated to helping Taiwanese (Republic of China) businesses and manufacturers improve their international competitiveness as well as their ability to meet the needs of companies like Rawlplug. TAITRA is jointly sponsored by the government, industry associations and several commercial organisations, giving it the backing required to ensure that member companies are able to deliver goods and services that not only address an optimal price-quality point, but are also produced in line with demanding environmental and CSR expectations, such as those held by Rawlplug.

Our business partnerships are constantly being evaluated to ensure the optimum results are gained on both sides of the relationship.

Rawlplug Global Corporate Sustainability Report 2016 68 SUPPLY CHAIN Design and development

Product design and development at Rawlplug is a long-term, ongoing process that affects almost every department and aspect of the company’s operation.

It is one of our engines of change. In a company that was founded on the back of original thought, innovation is a core quality we are proud of and work hard to maintain.

Moving from design through development to production can be complicated, but our goal in doing this is not: the production of a product which is innovative, safe, and high-quality but competitively priced, which provides an exact solution for our customers and makes Between 2014 a responsible contribution to current and future building practices. These constitute our design principles. and 2015, sales of products we Product Innovation consider Rawlplug is synonymous with innovation. We were to be innovative founded on the basis of a revolutionary idea. This kind of thinking is what we strive for every day. It is part of our grew by 48%. mission as a company. Our product range is growing all the time as we examine and re-examine the needs of our customers and look to create solutions for them. At Rawlplug, our goal is for the sales of those products we consider to be innovative to increase by an average of 20% each year. Innovations added to the Rawlplug range of products in 2014/2015 include: The Rawlplug TFIX8 Facade Range

What are they?

TFIX8ST - The first thermal insulation combination screw fixing that can be countersunk together with the integrated insulation cap.

TFIX8S - A versatile screw-in facade fixing with high

ETA performance in all base materials recommended for ETICS*. TFIX8P – A versatile hammer-in facade fixing with plastic nail.

Why are these products innovative from a sustainability perspective?

§§ Innovative design, specifically the use of long plastic overmoulding, minimises thermal bridging, thereby saving energy. §§ Unique, efficient design means fewer fixings per square metre, resulting in fewer resources and separate elements required when building. §§ Use of installation saves time, money and effort expended.

* ETICS is the abbreviation for External Thermal Insulation Composite System. ETICS can be used to improve the energy efficiency of both new and existing buildings.

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The Rawlplug KCX Facade

What is it?

An insulation washer with an integral grip cap. Suitable for the attachment of insulation layers to wooden and sheet metal substrates.

Why are these products innovative from a sustainability perspective?

§§ Helps eliminate an entire stage in the installation process by enabling the attachment of ETICS* to wooden substrates using EC screws or to sheet metal using WB screws. §§ Reduction of thermal bridging. §§ Long-tube design allows short-length screw to be used, thereby enabling a highly cost-effective solution.

R-HPTII Mechanical Anchors

What are they?

R-HPTIIA4 – A stainless steel through bolt anchor for cracked and non-cracked concrete.

ETA R-HPTIIZF – A through bolt anchor with a corrosion- resistant coating for cracked and non-cracked concrete.

Why are these products innovative from a sustainability perspective?

These through bolt anchors are of the highest quality and demonstrate the highest levels of performance, enabling constructors to use with confidence and achieve maximum efficiency and safety in their construction projects.

Other innovations include:

R-FF1 Frame Fixing – A universal frame fixing

ETA with collar and hex head screw that has been designed for a wide variety of applications.

4ALL Universal Fixing – A high-performance nylon plug with a screw for all types of substrates.

R-KEXII Bonded Anchor – A premium pure epoxy resin that can be used with post-installed rebar connections, reinforcement bars, and in cracked and non-cracked concrete. These bonded anchors represent a new standard in strength within their ETA class, thereby enabling constructors to use the products with absolute confidence and trust in the product and brand.

* ETICS is the abbreviation for External Thermal Insulation Composite System. ETICS can be used to improve the energy efficiency of both new and existing buildings.

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R-KEX II 600 is another product in the mechanical anchors group, with an increased volume of 600ml.

Its increased volume enables a reduction in the amount of waste

ETA generated at the production stage. The product has European Technical Approval (ETA) and a Technical Data Sheet (TDS).

Product features:

§§ The strongest resin in the epoxy resin class. §§ Approved for use with rebar as an anchor for use in non-cracked concrete (ETAG001 Option 7). §§ Suitable for use in dry and wet substrates (including underwater). §§ Very high chemical resistance – suitable for applications exposed to the influence of various agents (industrial or marine environments). §§ Minimal shrinkage provides the option of use in diamond-drilled holes and oversized holes. §§ Extended bonding time ensures easy installation of metal components (up to 30 minutes in 20°C).

R-ISO-PLUG insulation fixings

In 2015 Rawlplug expanded its product portfolio with two new sizes: 55 and 85

ISO-PLUG is the best solution for fastening lightweight fixtures.

APPROVED FOR USE IN: Rendered insulation board, Polystyrene board, Mineral wool board.

This product qualifies in the green building category. It effectively prevents thermal bridging, and the heat transfer coefficient amounts to 0W [ / K]. The geometry of the ISO-PLUG allows for a simple installation in thin layers of plaster without the need for pre-drilling, thus saving an entire stage of installation.

Product features:

§§ Unique construction of the screw thread section provides support for a wide variety of diameters, without limiting screw length. §§ Ribs on the internal surface of the plate lock into the surface when driving screws in or out and also lock the surface of plug and the substrate after fixing. §§ Unique self-drilling point aids precise installation through any type of façade plaster, preventing any breaking of the surface. §§ Surface of the plate allows the installation hole to be hidden and perfectly matches the surface of the plaster layer without deforming it. §§ Proper shape of TX/HEX socket provides stabilization during the driving-in process by providing the necessary grip for the bit.

Rawlplug Global Corporate Sustainability Report 2016 71 SUPPLY CHAIN Manufacturing

Manufacturing is arguably the largest part of our business. As such, this where we can attempt to operate most sustainably.

While naturally we look to constantly increase our levels of productivity, our vision for a sustainable future demands that we build into our efforts the working conditions of our people, the needs of the local community, and of course the environmental impact we have.

Rawlplug has developed a number of principles which we apply to our manufacturing operations:

§§ Exercise due consideration for the use of natural resources. This includes initiatives to reduce water and energy consumption, and identifying new sources of renewable energy. §§ To reduce waste throughout the production process. §§ To support and facilitate innovation, particularly in areas which improve manufacturing efficiency. §§ To implement new, more-efficient technologies. §§ Recycle wherever possible in order to ensure efficient and responsible use of natural resources. §§ Implementation of an ISO-certified Environment Management Systems (EMS). §§ Rationalise our use of raw materials and adopt an environmentally responsible approach to waste management.

Technology and infrastructure are crucial assets in making Rawlplug’s operations more sustainable and environmentally responsible. Inefficient or outdated machinery or suboptimal production techniques can result in the waste of natural resources.

We make every effort to ensure our manufacturing facilities adhere to industry best practices, thus enabling us to reduce resource consumption, reduce our reliance on manual processes operate a more energy-efficient facility. Combined with the rigorous monitoring of our manufacturing operations this enables Rawlplug to evolve our supply chain into a more competitive, more environmentally responsible and more sustainable operation.

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Rawlplug Production Facilities and Sustainability

Koelner Łańcucka Fabryka Śrub Sp. z o.o.

Location: Łańcut, Poland Number of employees: 512 Core business: Production of screws, bolts and other fastening elements.

Thanks to intensive efforts to improve our operations this division of the company has been able to achieve the high standards set out for it by the quality and environment management systems that are in place. Infrastructure upgrades

Addressing both employee wellbeing and concern for the environment the production hall Łańcut facility has been redesigned and modernised. Measures were taken to reduce noise levels and energy-efficient lighting has been installed. The effective extraction of mist and fumes was also analysed and further improved. Processing improvements

Cold forging

To increase production efficiency, Rawlplug installed the state-of-the-art 8 pieces of forging machines. This replacement equipment has had a measurable effect on efficiency and is part of a programme of machinery upgrades which will also reduce waste and improve working conditions.

Further modifications of the machine park followed during 2015 and into 2016.

Heat treatment

A variety of measures have helped to improve the cost effectiveness of operations and bring stability to the production process. Better control of the heat treatment process thanks to an all-new level of precision has further reduced waste.

A switch was made from electricity to gas as our primary energy source. We set up two units, allowing us to decommission several electricity-powered models. This alone resulted in a 20% decrease in the volume of electricity consumed by the entire factory.

A variety of new heat recuperation solutions enabled us to redirect heat towards heating water for washing machinery and heating the production hall during the winter. All of these measures resulted in a notable reduction in the factory’s utility bills: the simplest indicator of a reduction in energy use.

Packing

The overhaul of packing operations means that manual packing processes have been replaced with an automated system. This has helped us to improve the working conditions for employees, by reducing dependence on physical activity and has resulted in an improvement in operational efficiency.

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Transport

In 2015 production began at a new surface treatment plant operating within the Łańcucka facility. The plant deals primarily with zinc flake coatings. The establishment of this new plant on site has allowed us to reduce the external transport of goods and cut the carbon footprint by 12,518.8kg of CO2 compared to 2014. In 2016 the production of 4,000 tons of coatings is planned, which will mean a minimum of 200 fewer road journeys to businesses in Germany and the Czech Republic, and an even greater reduction of the carbon footprint. Environmental Impact of changes – Koelner Łańcucka Fabryka Sp. z o.o.

The entire Automotive Department building was thermomodernised, the result of which was a significant reduction in the use of thermal energy.

THERMAL ENERGY USE Before renovation After renovation Annual savings (kWh/m2/year) 3,003,840 1,126,440 1,877,400

The lighting system for the entire hall was changed to LED technology. The old sodium 250W lights and the 140W LED lights were replaced with 209HB LED luminaires.

2 2 * kWh/m /year CO2/m /year CO2/year ANNUAL ENERGY SAVINGS 1,877,400 377,27 1,877,400

* 2 2 CO2/m /year x size of hall in m Assuming 10 hours per day of use the power saving was calculated to be:

That’s annual savings of 5,997,400 kWh/year 7,146 CO2

A modernised system for the transmission of compressed air has resulted in an:

That’s annual savings of 550,000 kWh/year 655.05 CO2

Heat recovery provides approximately 60% of total demand for thermal energy for heating purposes for the production hall.

Annual savings of A total anticipated annual savings of 79.90 CO2 in 2014 compared to 2013 819.912 CO2

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Rawlplug SA

Location: Wrocław, Poland Number of employees: 438 Core business: Production of fixings.

Positive changes to both the infrastructure and the production processes at the facility means that significant contributions have been made towards Rawlplug’s overall efficiency and sustainability. Injection process

Switching to synthetic oil in compressors

Perhaps the biggest recent change in production has been the exchange of mineral oil for synthetic compressor oil.

Mineral oil had a short life which led to the compressor running at a high temperature and an oil change being required every 4000 hours. This lowered machine efficiency and increased energy consumption; air under pressure was of a lower quality due to evaporating oil mixing with it. Frequent oil changes meant large amounts of waste oil. During production the application of mineral oil caused a higher consumption of oil separators, which had an impact on the frequency of failure. The switch to synthetic oil resulted in compressors working at lower temperatures, and with greater efficiency. This has reduced power consumption by 30%. In addition, the synthetic oil needs to be changed three times less than mineral oil. As a result less oil waste is produced. Synthetic oils can also be filtered, thus prolonging their life even more.

The use of thermoplastic cleaner for plastics industry

Another change we have implemented in the Injection Processing Department relates to production preparation. We now use a non-abrasive and chemical-free thermoplastic cleaner specially developed for the injection industry for use in the process of changing colors during changeovers.

The use of a cleaning agent which is safe, non-toxic and does not contain chemicals is in accordance with the FDA’s requirements and recommendations.

The use of this measure has allowed us to increase machine productivity and reduce the cost of changeovers. This has had huge influence on the average changeover time. Chemistry

Expansion slot production NAP-01

We have modified the process of filling the resin in the production cell during manufacture. This has allowed us to introduce mass production of the new capacity cartridges side-by-side (3: 1 ratio) in a volume of 600ml with a new, innovative locking system. The modern design of the piston affects the provision of adequate tightness and the durability of the closing system. Modification of the process has reduced the time required for fixing and venting the system in the cartridge chamber by 30%, which directly results in an increased process efficiency and waste reduction.

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Toolshop

Construction of the mold and spare parts warehouse

This investment enables us to store molds securely, ensuring full traceability with the ability to define on-line location, status and history.

Additionally, development of the spare parts warehouse has a positive impact on their availability, significantly increasing the transparency of their location.

Fabryka Pił i Narzędzi “WAPIENICA” Sp. z o.o.

Location: Bielsko-Biała, Poland Number of employees: 180 Core business: Production of high-quality, professional- grade tools for wood and metal work.

Rawlplug has carried out activities at the Wapienica facility aimed at increasing the efficiency of production processes, improving safety and working conditions, protecting the environment and reducing the consumption of materials. In line with the approach we take at each of our sites, all aspects of production and operation are examined through the lens of sustainability. Infrastructure upgrades

For several years we have been carrying out the thermomodernisation of buildings at the facility. In 2014 another 700m2 were insulated and 20 windows replaced reducing heat loss and improving insulation. Similar work to increase the energy efficiency of our buildings continued in 2015. Also, in the interests of our employees’ welfare, we renovated the dining area making it possible to enjoy breaks and meals in a comfortable and restful atmosphere. Processing improvements

Rawlplug is constantly researching ways to upgrade its production processes. It is not surprising then that a number of new processes and ideas have recently been implemented which aim to improve safety, increase efficiency and production, and reduce waste and environmental impact.

An important aspect of our research and development has been in adapting products to the specific requirements of the customer. Matching their high professional standards with our own requires diligence and creativity. We know better than most the importance of quality in industrial applications. This is why we have rigorous testing procedures in place and we see the modification of tools and equipment to suit specific purposes as the best route to achieving greater and greater productivity and product quality. The creation and implementation of new solutions in technological processes is the kind of approach Rawlplug was founded on and we continue to lead the way.

Investment in the modernisation of our machine-cooling systems has resulted in a reduction in water consumption of over 60%. Additional upgrades to the reactive power compensation equipment and the installation of a variety of new machines has dramatically reduced energy consumption and improved production efficiency.

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Similarly, the acquisition of a wide-belt grinder allowed us to decommission three less-efficient machines. User safety has improved along with the effectiveness and end results of our belt-grinding operations. Safety has also been enhanced by the elimination of machining equipment with open slots or panels. Investment in two modern high-performance machines for the processing of circular saw blades has further enabled the decommissioning of five low productivity and energy-intensive machines.

We have replaced our high-frequency generators to reduce electricity consumption and minimize exposure to electromagnetic radiation.

The production of saws involves the movement and lifting of heavy weights. Working conditions have improved after new automatic feeders to lift the heavy weights were fitted. There are currently four automatic feeders operational; future expansion will triple this number.

The performance of our tool-sharpening centre has measurably increased following the installation of a fully-automated machining slot, equipped with automatic measuring systems, self-diagnosis capabilities, automatic error notifications and automated, robotic warehousing functions. The use of resources has also been improved by this. In addition, the company has established a special unit, whose purpose is to examine and undertake tool maintenance. The team works independently of production, so as not to disturb production processes. Technological Innovations

Innovation is something which Rawlplug prides itself on, and it feeds into everything we do and why we do it. We innovate to improve our industry, our environment, and the working experiences of both our employees and our customers. This is why we do not rest on our laurels but continue to strive for better products and processes. Sustainability is about people and places, and so is Rawlplug. Our innovations reflect this idea.

One of these innovations is in the use of the dynamic balancing machine, which we utilise in the production of saw blades to create a product suitable for its industrial application. Any rotating machinery can be subject to excessive vibration; using the machine ensures the chances of this occurring in the finished product diminish.

As we progress in applying levels of automation to our logistics and production processes we aim to be innovative in their use. An example of this is the introduction of building automation systems for control of technological processes and robotics.

In the field of product innovation the company has been very active. A number of new items have been launched on to the market, such as the MITER series saw blades with carbide, the new Multix TWIN series saw blades for the timber industry, and a series of LL CUT saw blades designed for use by the furniture industry.

We have also added new types of machines – equipment for hardening and oscillating metal tools which are designed and manufactured in the plant. We introduced a patented solution for oscillating power tools and circular saws employed in the cutting of materials used to thermally insulate buildings. New centres of dedicated machinery for cutting, sharpening and grinding have opened as well.

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The company has a safety mark B for circular saws with carbide, taking into account work at high speed to a peripheral speed of 150m / sec. The safety certificate B far exceeds the standard used for the speed of 80-100m / sec. Addressing environmental concerns

We fully understand the importance of looking after the environment throughout each stage of our operations. As such we are constantly examining each stage to identify any potential improvements and opportunities to create new and ecologically beneficial solutions. For example, part of the plant’s strategy is to replace harsh chemicals with less dangerous types. With this in mind, we have changed those used in emulsion for lubrication and cooling for steel.

Intensive work goes on to reduce greenhouse gases and dust. To this end, production machinery has been equipped with modern HEPA class filtration systems which arrest dust and mists, removing close to 100% of airborne particles. An additional benefit of this investment is a clear increase in the safety and comfort of employees.

Like our other facilities, the factory is dedicated to minimizing its impact on the environment. We are always working to reduce the amount of lubricants and oils we use and we have achieved success in this endeavour through a number of measures. We have changed the type of oil used in various machines to improve efficiency and to reduce both energy consumption and the amount of waste generated. We also introduced a dedicated service providing receptacles for the recovery of waste oil, and initiated the collection and exchange of oils used in specific process sequences.

The purchase of three oil product separators and their installation in existing sewer, rainwater and snowmelt areas is designed to prevent any cases of damage to the surrounding environment or pollution of the river close to the Wapienica facility.

Similarly, we have installed modern internal extraction systems close to any machinery that emits substances which might be harmful to human health or the environment. Environmental Impact of changes - Fabryka Pił i Narzędzi “WAPIENICA” Sp. z o.o.

The production facilities have been partially thermomodernised. This work is ongoing but so far has resulted in an estimated annual saving of:

That’s annual savings of 2 63,000 kWh/m 2 12.66 CO2/m

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Attention given to the organisational and technical needs of relevant workers has reduced the number of people at risk from noise production exceeding the NDN from 10 to 0.

A reduction in the emissions of gases and dust into the air continues through the ongoing development and methodical implementation of an action plan which aims to systematically reduce the amount of pollutant gas and dust emitters in our production facilities. As an indicator of our progress, 7 emitters were eliminated in the year 2014. The introduction of the new filtration and extraction systems will move this action plan forwards and see this figure increase in coming years.

Rawlplug Global Corporate Sustainability Report 2016 79 SUPPLY CHAIN Transport and storage

Like manufacturing, storage and warehouse operations are a massive part of Rawlplug’s business.

Investment in training and innovative approaches to the way we work in this area quickly delivers results. As our business grows and we establish facilities across the world, we continue to learn and adapt. A storage facility in one part of the world will have a number of different challenges to face than one elsewhere. Our role is to study and build a global model, a foundation for all into which those differences can be successfully integrated. The introduction of a number of new processes has already moved us forward in this respect.

Warehouse Staff support Rawlplug Middle East FZE Published on sustainable.rawlplug.com 13th of July, 2015

Rawlplug Middle East FZE recently hosted logistics and warehouse representatives from Rawlplug Headquarters. The visit was arranged to take stock of the warehouse and its current organisation, and to lay the groundwork for a new warehouse management system.

The market for Rawlplug in the Middle East is constantly growing and developing. As such there is an ongoing need to study and refine the efficiency of the supply chain.

During stocktaking a number of region-specific issues were highlighted (frequent single product bulk orders, the need to issue samples to customers, high temperature and humidity). These results provide invaluable information for Rawlplug’s logistics team and all of Rawlplug’s international traders.

Supply chain efficiency is vital to successful sustainability and to creating stockholder value. The implementation of a new warehouse management system will further develop international consistency, taking into account the different regional challenges which Rawlplug faces across the world.

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IT solutions for improved logistics operations

Improvement in best practice in any area of logistics can have a positive knock-on effect. We are constantly looking at ways to increase productivity which will simultaneously add sustainable value, or contribute to better health and safety. By introducing new working methods and technological support we are adding to Rawlplug’s growth as a responsible, fully-rounded organisation with a holistic approach to its existence as a business.

To this end we have started a roll-out programme of a new warehouse management system and a voice picking system whose benefits have become immediately apparent.

Rawlplug implements Warehouse Management System (WMS) at Glasgow distribution centre Published on sustainable.rawlplug.com 4rd of April, 2015

At the start of December 2014, Rawlplug successfully completed the implementation of a Warehouse Management System (WMS) at its distribution centre in Glasgow, Scotland.

The system will deliver improved efficiency of work, standardisation and optimisation of processes, and monitoring and evaluation of performance. Ultimately, it will significantly improve the quality of service provided to customers.

Rawlplug’s implementation of a Warehouse Management System has a positive impact on a wide variety of logistics and supply chain processes, including order realisation and shipment to clients. Using the new system, warehouse operators use mobile devices which direct them to products for packing, providing all the information needed to complete an order.

As part of Rawlplug’s global strategy for 2013 to 2018 to optimise its logistics operations and ensure high levels of consolidation and standardisation, the same Warehouse Management System will soon be deployed at Rawlplug logistics facilities around the world.

Implementation of Warehouse Management System

Among the many benefits of Rawlplug’s Warehouse Management system are:

§§ Greater automation and standardisation of services means that core tasks can now be performed much faster. §§ The potential for human error is reduced due to the automation of processes and technology support to end users. §§ Consistent and regular provision of accurate data to operators greatly improves worker productivity.

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§§ Better control over stock levels and the ability to accurately analyse and understand the time taken to perform core tasks. §§ Increased use of electronic devices and interfaces greatly reduces dependence on printing and paper documents. The new management system displays information in real-time and change to reflect the latest developments.

Cost and quality indicator

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Rawlplug implements Voice Picking at central distribution centre in Wrocław Published on sustainable.rawlplug.com 30th of November, 2014

Rawlplug is proud to announce the implementation of a Voice Picking system which improves order completion time and quality, and enhances worker safety and satisfaction.

Voice Picking uses verbal interchanges between worker and the Warehouse Management System (WMS) to facilitate navigation through the warehouse and the picking of items which form part of an order. Users are equipped with headsets and a small device. As they move around the warehouse, they receive commands and direction, and acknowledge tasks by using voice commands.

“Voice-directed Warehousing is a very hot topic for supply chain operations and it has huge potential for us to improve the efficiency of operations at Rawlplug. Already we can see the benefits this technology and the accompanying process transformation are having on the accuracy of The leaders’ our order completion and also user safety and satisfaction. We are view already looking at how voice technology can be used in other warehouse operations at Rawlplug.” Dawid Urdzela Project Leader

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Implementation of Voice Picking

The implementation of a Voice Picking system at Rawlplug’s central distribution centre delivers benefits for Rawlplug customers and employees alike. Among these benefits are:

Superior order completion accuracy – users are required to confirm specific product numbers and orders prior to picking and order completion. The removal of paper order forms allows them to completely focus on the details of their task.

Improved ergonomics in the workplace and worker productivity – users can move freely through the distribution centre without having to look at maps or order sheets. This results in a more satisfying working experience. Again, the removal keypads, keyboards and paper-based processes from the role allows users to achieve more and move in a physically more natural and liberating way.

Enhanced worker safety – not having to consult maps and order sheets means users can observe and be aware of any potential hazards or threats to safety in the surrounding environment.

Reduced training time for new workers – we all know how to listen and respond, so with fewer paper-based processes and electronic tools to master, new users can be trained quickly and safely.

Environmentally friendly – a much lower dependence on paper throughout the process. Considering the thousands of orders Rawlplug fulfils each week, this means that huge volumes of paper and printer ink are now saved.

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Rawlplug Global Corporate Sustainability Report 2016 83 SUPPLY CHAIN Transport

Optimised transport activities

Transport operations account for a significant proportion of our supply chain’s environmental impact.

Our work to minimise this impact and increase efficiency in our transport operations is constant and creative. It ranges from the optimisation of processes in our distribution centres to initiatives to shorten the actual physical distances our vehicles need to travel. Planning and loading

Reducing the impact our transport has on the environment begins before a vehicle leaves the distribution centre. If we creatively optimise our loads we are able to increase the efficiency of every individual load, reducing the total distance travelled and the time taken to complete a delivery. We utilise pallets, half pallets and consolidated loads to achieve this.

Close collaboration with our logistics partners has improved operational efficiency at our central distribution centre. For example, by optimising the routes of delivery vehicle arriving for loading we have shortened the time and effort spent on cargo handling. This uses the delivery vehicles more efficiently. Internal transport vehicles such as motorised pallet lifts and forklift trucks are now used much more efficiently which, in turn, reduces time spent on load preparation. All of this has also enabled us to save space in our warehouses and those of our logistics partners. Each successive step in the process leads to outcomes which contribute to our sustainability.

CO2 in transport

In 2014 Rawlplug started to measure CO2 emissions generated during transport of our products. All the measures we have introduced and are planning are working and will have a net effect of bringing the emissions down year on year, in line with our goal to reduce Rawlplug’s total emissions by 50% by the year 2030.

TRANSPORT CO2 EMISSIONS 2014 2015 COMPARISON (TOTAL/KG) 3,160,650 4,225,812

We are committed to total compliance with EU European emission Euro 5 standard relating to the carbon emissions of vehicles. We are working to ensure that the transport operators we work with develop their fleets to run vehicles which comply with the standard.

Rawlplug Global Corporate Sustainability Report 2016 84 SUPPLY CHAIN Customer Centricity

Our intent is to instil a customer-first mentality in all departments of all Rawlplug subsidiaries.

We have also taken a variety of measures to ensure that Rawlplug is perceived as an open, approachable business partner.

We have defined a number of core principles that govern the way we manufacture our products and serve our customers: Clarity and compliance

At Rawlplug we care about transparency so we aim for clarity. We are developing a portfolio of products that complies with all applicable environmental, legal, ethical and safety standards so that our clients can make informed, responsible purchasing decisions. To do this we need to clearly list information about origin, materials used and the environmental impact of our products on all packaging and documentation. Accessible pricing

Our pricing policy is about fairness and accessibility, without compromising on quality or safety. We want to contribute to a reduction in poverty and encourage the social inclusion of those that might not otherwise be able to access high-quality tools and construction products, and who could be missing out on employment or business opportunities as a result. Customer- and environmentally-friendly packaging

For ease of purchase and use, and to minimise environmental impact, we have developed a new range of packaging that:

§§ Uses a single communication standard across all of our products, thereby making them easy to identify and compare. Our new approach is more pictorial, making each package universally suitable for display. §§ Uses far less finite resources than previous packaging and that of many of our competitors. §§ Complements modern technology trends by featuring QR codes that can be scanned to take users directly to installation or assembly instructional videos.

Customer service channels

To support our customers, we operate the following customer service channels:

§§ Retail and service branches. Our friendly staff are able to provide personal support for retail and business customers. §§ Technical support. Rawlplug technical consultants are just a phone call away for technical support and information for users of Rawlplug products and services

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§§ Product webpages. Data sheets, product specifications and guides are available for all Rawlplug products. We also operate a client portal through which clients can place orders and track their progress all the way through to their delivery. §§ Customer care line. Our customer service experts are on hand to provide information on products and services. §§ Sales representatives and account managers. These highly committed individuals are on hand to provide support throughout the client relationship, from the moment first contact is made right through to after-sales support.

Across all of our customer service channels, we ensure that Rawlplug employees benefit from regular, industry-standard training in the field of customer service and sales support.

Addressing the needs of the customer before, during, and after purchase of our products illustrates the comprehensive assistance we feel duty bound to provide as a sustainable company. Customer service is a skill as important as any other within Rawlplug (sometimes more so, as our customer service and sales teams are often the first point of contact and the face and voice of the company. Potential innovations in our approach to customer service are given similar attention to every other aspect of Rawlplug.

Customer service innovations

Product Information Management (PIM)

In early 2015 Rawlplug implemented its new Product Information Management system (PIM).

An examination of the product portfolios of Rawlplug and its subsidiaries highlighted a particular issue which opened up an exciting opportunity.

The number of products produced by the Rawlplug group of companies, which range from anchors and fixing components through to tools and OEM components, extensive and varied. It is often difficult to keep track of how these products relate to each other and to the overall Rawlplug product portfolio. This can have an adverse effect on our ability to effectively manage the development of the portfolio, as well as effectively communicating consistent information to both internal and external stakeholders.

In line with our unswerving commitment to promote best practice in the industry, this issue was tackled head on. We have created a comprehensive, centrally-located database containing basic but useful information regarding every single product which Rawlplug and its subsidiaries produce. This information is all presented in one format and held in one place.

The implementation of Product Information Management at Rawlplug exemplified the dedication and teamwork of all of our employees. It required the contribution of people from all areas of the business, including sales, marketing, product management, procurement, and also the Project Management Office.

The project also allowed a rethink of our approach to product technical cards, factsheets, and the information available on Rawlplug websites.

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An example of how this information is being presented online can be seen below.

This template and the standardisation of type and quality of information available is being applied to all Rawlplug products and those of its subsidiaries.

The project also included the creation of product renders, technical drawings, product photography and the uploading of all relevant technical data, certificates and approvals.

The establishment of the Product Information Management system and its unified database has brought about numerous benefits:

§§ A single reference point for information about Rawlplug products. §§ Enhanced and simplified support for distributors, clients, end users. External stakeholders now know exactly what to expect when requesting information and are able to learn more about uses, installation, applicable certifications and standards. §§ Enhanced assistance for Rawlplug sales professionals and trainers, who can now depend on consistent support during product presentations and training sessions. §§ Improved visibility of the Rawlplug’s product portfolio, enabling our research and development professionals and senior management to more effectively manage and develop the portfolio in line with evolving market trends. §§ Superior quality of external communications. The quality of information now available on Rawlplug’s corporate websites, product cards and packaging has all dramatically improved. This enables better-informed decisions and contributes to the ongoing improvement of information available in the industry. §§ Better availability of information across the entire supply and distribution chain, enabling enhanced operations in logistics, product ordering and order fulfilment.

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The implementation is only the first phase of this project. The Product Information Management system is constantly evolving and Rawlplug intends future upgrades. EasyFix

EasyFix is our professional software for the calculation of fixing requirements for construction projects. The program and the calculation results it generates are based on European Technical Approval Guidelines (ETAG), soon to become European Assessment Documents (EAD), which are published by European Organisation for Technical Approvals (EOTA). This input is combined with extensive research and Rawlplug’s experience of developing fixing and anchoring solutions for the construction industry and the result is an industry- leading tool that is used by architects, construction engineers, and builders.

The EasyFix tool helps users to make calculations and design decisions in the early stages of their projects or aids in creating solutions to problems encountered further down the line.

Rawlplug upgrades calculation software for designers and contractors Published on sustainable.rawlplug.com 18th of February 2016

EasyFix Pro has a fresh new look and new functionalities facilitating the professional design of fixings.

Greatly appreciated by fixings professionals, the EasyFix application – which helps the user to design mountings for use with Rawlplug products – has been upgraded to the PRO version. The improved interface of the program is easier to operate, and new features allow for a wider range of calculations and the convenient repopulation or previewing of data.

Rawlplug solutions allow professionals to develop comprehensive fixing projects for many industries - including but not limited to construction, industry, energy and mining. Rawlplug Technical Advisors make every effort to support designers and contractors. The EasyFix PRO calculation program helps to properly develop and safely perform mounting in concrete and masonry, and includes special modules for calculations when mounting balustrades, flat roofs, facades and rebars. The application also allows you to calculate the estimated consumption of resin and helps to design fixings for custom applications.

EasyFix PRO is available free of charge - to download, register as a user of the program at www.easyfix.rawlplug.com. The website also contains information about changes to previous versions of EasyFix, as well as contact details for Rawlplug’s Technical Advisors.

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Declarations of Performance DoP

Every Rawlplug product has an associated Declaration of Performance. They are the culmination of the legal journey a product must undergo and provide information on the performance of the product and the assessments it has passed to reach the marketplace. They add to the transparency of the industry and ensure a standard for a single market.

Declaration of Performance now easier to obtain for Rawlplug products Published on sustainable.rawlplug.com 19th of February, 2015

Rawlplug has updated its application for the instant generation of Declarations of Performance (DoP) for Rawlplug products.

The update of the application means that Declarations of Performance can be instantly generated for any one of hundreds of Rawlplug products – all with just a couple of clicks. The tool can be found at dop.rawlplug. com and is available for use in 25 languages.

A Declaration of Performance is a document that is required for the release onto the market of any new product covered by a harmonised European Standard (hEN) or a European Technical Assessment (ETA). They contain the following information:

§§ The number of the Declaration of Performance §§ A unique code for the product §§ Intended use of the product, in accordance with the relevant harmonised technical specification (hEN or EAD) §§ Details of the producer §§ Systems of assessment and verification of constancy of performance §§ Reference number and date on which hEN or ETA was issued §§ Information about the participation of the notified body §§ Declaration of the product’s properties

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POS (Point Of Sale)

As part of our advances in packaging design we have also produced an innovative system for POS display and exposition.

Designed to provide maximum information, attraction and visibility to the consumer, our robust new POS system is also put together to offer a unique and complete solution for product exposition to building wholesale and retail stores.

The POS system is based on easily configurable rack components enhanced with expansive information elements and additional decorations, as well as a combination of individual packages in the form of the innovative Rawlplug Bag and cutting-edge cardboard boxes.

It is a comprehensive display solution aimed at maximising the exposure given to Rawlplug products while simultaneously demonstrating our desire to provide customers with all the information they need to make their purchasing decisions and to reduce the need to overuse raw materials. Colour Coding

We have created a colour coding system for ease of identification of particular groups of Rawlplug products. Basically, the fasteners and fixings can be divided into groups restricted for use on a particular application. Where possible, Rawlplug uses colour coding on product packaging to convey technical information. This helps us to reduce the area of packaging that needs to be occupied by text, which, in turn, reduces the amount of ink used, and enables us to make technical information understandable to a wider audience and without the need for multiple translations.

Substrate

UNIVERSAL Multipurpouse suitable for use in variety of substrates, regardless of their structure

PLASTERBOARD Plasterboards and hanging ceilings

SOLID WALLS Solid materials such as concrete or stone

TIMBER Timber, plywood and chipboards

METAL Steel sheets and profiles

The complete POS solution we have created revolutionises the exposition of Rawlplug products. It has been designed with sustainability, our clients and end customers in mind.

Rawlplug Global Corporate Sustainability Report 2016 90 RAWLPLUG

With over 200 years of combined history, Rawlplug and its subsidiaries create, produce and sell fixings and fastening solutions for the global construction industry.

Since John Rawlings invented the first expansion plug in 1910, the company has become synonymous with innovation, striving to develop new and trusted products for use in everything from home improvement to vast corporate projects around the world. Rawlplug products are even travelling across the surface of Mars as part of NASA’s Curiosity rover.

Rawlplug’s international offices

Headquarters Koelner Koelner Polska Sp. z.o.o Rawlplug IP Sp. z o.o.

Production plants: Rawlplug Ltd

Rawlplug S.A.

Koelner Łańcucka Fabryka Śrub Sp. z o.o. Rawl France SAS Fabryka Pił i Narzędzi WAPIENICA” Sp. z o.o.

Koelner Trading KLD Rawlplug Ireland Ltd

Koelner CZ s.r.o. Koelner Deutschland GmbH

Koelner Slovakia s.r.o. Rawl Scandinavia AB

Koelner-Ukraine LLC Koelner-Rawlplug Middle East FZE

Koelner Vilnius UAB Rawlplug Portugal LDA

Koelner Hungária Kft Rawl Africa (Pty) Ltd.

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Production Plants

Expanding its production capabilities has enabled Rawlplug to unify fastening systems production for the European market.

Systematic introduction of new facilities in Glasgow, Łańcut, Wapienica and Shorndof means that Rawlplug now completely controls its own development and production of plastic and metal elements, chemical anchors, saws, and tools. Rawlplug S.A.

Opened in 1982, the plant began the production of wall plugs in 1986. The plant expanded considerably during the 1990s, investing in machinery and widening the range of its products.

At the moment, the production plant employs over 400 people. It operates production departments, as well as a complete laboratory and technological base.

The plant produces a wide range of plastic plugs and bonded anchors for the global market. Recent investment in new technology at the plant has increased accuracy and precision in our production operations, without sacrificing efficiency or slowing down processes. Koelner Łańcucka Fabryka Śrub Sp. z o.o.

Rawlplug Fasteners Factory in Łańcut is the largest producer of fasteners in Central-East Europe. LF trademark is recognized all around the world and is associated with highest quality of fasteners.

Factory of Fasteners in Łańcut is one of rare fasteners production plants with over 50 years of history. Since the beginning of its activity in 1957 keeping world’s highest quality of products has been its key priority. Fulfilment of this objective enabled continuous development over decades and attaining a position of one of the most renowned facilities of this kind in the world. Its reputation was confirmed on February, 26th 2004 by receiving a membership in European Industrial Fasteners Institute, the biggest European organization of producers of fasteners. However, a real milestone in the history of the factory was January, 1st of 2009 when it joined Rawlplug Group as one of its key production plants. Factory’s basic assortment is bolts and nuts produced accordingly to PIN , DIN , IS O, BS , ANSI standards, mechanical anchors and screws, including:

§§ M4 to M24 bolts, §§ M4 to M20 nuts, §§ Special products and more complex fasteners, §§ Wide variety of types mechanical anchors (throughbolts, sleeve anchors, anchors for highest loads), §§ Numerous kinds of screws for different purposes.

Wide array of products and advanced technical possibilities in terms of thermal treatment and coating application enable the factory to fulfil the needs of any customer. Apart from use in high-tech prestigious projects, the best confirmation of the quality of Factory’s products are rich references from numerous companies operating across various trades, such as: automotive, construction, machine and power-machine industry, mining, furniture, power industry, shipbuilding and road construction.

70% of products from Łańcut plant is assigned for export.

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Fabryka Pił i Narzędzi “WAPIENICA” Sp. z o.o.

The plant, in Bielsko-Biała, began operations in 1921, kick-starting the production of saw tools in Poland on an industrial scale. Original manufacture included the production of tools for breaking down logs, carpenter’s blades for frame saws, and single-grip carpenter’s saws. The scope of production increased and n 2004, the factory joined Rawlplug.

Today the plant produces a large assortment of tools which are exported to over 60 countries worldwide.

Current tools produced include circular saw blades with cemented carbide tips, circular saw blades, band gang-saws, knives for planers, HM router bits, cutter heads, polycrystalline diamond DIA tools, metal circular saw blades, segment saw-blades, hand hacksaw and power hacksaw blades, and diamond saw blades for wet and dry cutting of asphalt and concrete. Koelner Trading KLD

Operations at the Kaliningrad (Russia) production plant began in 2011.

The plant produces facade fixings using the technology and quality standards of Production Plant 1 as a template. Each year approximately 300 million pieces of fixings are produced by the Kaliningrad factory for markets in Russia, Belorussia and Kazakhstan. Adherence to rigid restrictions concerning production norms ensures the stability, consistency and high level of quality of the products leaving the plant.

Rawlplug Global Corporate Sustainability Report 2016 93 PLANS FOR THE FUTURE

As a company that is expanding and one that is recognised as an industry innovator, Rawlplug naturally has ambitious plans for the future. All of these plans are strategically aligned with our global vision for a Sustainable Rawlplug.

We also believe that to achieve sustainability within the construction industry, we must devote significant resources and attention to innovation, the environment, and corporate social responsibility. At Rawlplug, we have made – and continue to make – huge strides in each area.

Innovation

Innovation is about more than just products and solutions and the value they deliver to their users. At Rawlplug, innovation goes hand in hand with sustainability and we believe that, in addition to adding financial value to the business, any innovation should consider the way products are produced, packaged, transported, used and disposed of. We are passionate about innovation that reduces adverse environmental impact. To this end the design and development teams factor this requirement into their thinking. Rawlplug’s products for “greener” building represent some of the results of this thinking by increasing energy efficiency, reducing waste and raw materials consumed, and working to eliminate the harmful substances we use in production. At Rawlplug, our goal is for the sales of those products we consider to be innovative to increase by an average of 20% each year.

Environment

Across the Rawlplug organisation, we have reduced our CO2 emissions by over 30% since 2007. This is thanks in no small part to innovations we have delivered in different areas. As part of our sustained commitment to improving our relationship with the natural environment, we have declared our intention to reduce our CO2 emissions by a further 50% by 2030.

Corporate Social Responsibility (CSR)

People are our biggest asset, which is why we endeavour to provide them the conditions they need to be fulfilled in both their personal and professional lives. We facilitate and encourage open dialogue with our employees and strive to create working conditions for employees to feel safe, appreciated and inspired to achieve their professional goals. for sustainability into its business interests. Only by committing itself and its resources to the best interests of the planet and its people can Rawlplug play its part in creating a truly sustainable future.

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The Rawlplug Offer

Our activities in any area are derived from our Sustainable Development Policy. The Rawlplug Offer is a consequence of this thought process. We look upon it as an advancement of our business strategy and it influences our approaches to CSR and Supply Chain Management. It is a way for us to provide additional support to our sales team, and for us to redevelop and clarify our own perception of what Rawlplug offers. It is a means by which Rawlplug and its business partners and clients can increase and fortify their points of contact and the closeness of their relationships. It is also a policy of inclusion: communication and transparency (one of our four pillars of governance) underlies the idea of the Rawlplug Offer.

The Rawlplug Offer should not be perceived as simply the company’s products themselves. It is far more complete a concept than that, encompassing internal colleagues and external customers alike. Driven by our goals and the desire to differentiate ourselves in the marketplace we are developing a wide range of services and marketing tools. What Rawlplug offers is based on products, but our cooperation with customers is not based solely on delivering excellent products. We have reached further and developed a package of benefits for customers including a knowledge database, technical development services, and professional calculation software. We are not selling fixings, we are establishing mutually beneficial cooperations with our business partners which allow sustainable development.

The Rawlplug Academy, which we have been developing in 2015, represents a huge investment of time, effort, and expertise. Our specialists in various departments strive to achieve the utmost in technical expertise, and implement it into production, sales and advisory processes to ensure highest quality and effectiveness at every step of the company’s interaction with its environment in any dimension: social, professional and ecological.

The Academy will roll out in stages over the next two years and will stand as a great milestone in the overall development of the Rawlplug Offer.

To build on our history of innovation and continue providing exceptional quality and service, we employ experts, motivators and forward- thinkers. What this means in real terms is that we have at our disposal a large pool of knowledge and expertise. Our intention is to share this wealth of knowledge and experience in a number of ways.

We have specialists who can provide valued assistance in the planning and execution of projects. Our research and development teams can advise on technical and scientific points. Our products undergo rigorous testing as they are developed and the knowledge we gain from this and the techniques we use we are happy to share. We have compiled an exhaustive database of our products where any partner, client or end user can access complete technical information on any of our products.

Rawlplug’s Technical Development Services are working hard towards our sustainability goals. Our EasyFix and RooFix software applications are unique packages designed to offer fast and accurate assistance in calculating the type and number of fixings and fasteners required for any particular project. They are constantly upgraded and are freely available for download.

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We produce detailed technical handbooks which include every group of products. These act as a complement to existing brochures and offer comprehensive specifications and performance data. We also offer access to all safety data sheets, technical approval and Declaration of Performance documentation. All of this is available at the click of a mouse.

For our own people, professional development is a key to success and contentment in the workplace. Our employees already benefit from great training opportunities but we are not sitting still on this. Our plan is to increase employee training, enhancing the working practices of our own people as we strive to do the same for the whole industry.

The Rawlplug Offer takes into account every aspect of our business operations. We are acutely aware that any business is fed and supported by its customers. That is why we are keen to explore and nurture every kind of business relationship available to us.

Our clients and business partners work as hard as we do to promote our products and services. They are Rawlplug customers themselves, and we do not take them for granted. Projects such as our new POS package allow us to work for their success as much as our own; we will work with them to offer the best and most effective sales and marketing solutions. Potential new clients are eligible for offers to demonstrate just how much we value them. eW provide a selection of complimentary products as gestures of gratitude and goodwill.

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Certifications

In 2016 Rawlplug Ltd in the United Kingdom will receive both ISO 14001 certification (relating to Environmental Management Systems) and OHSAS 18001 (also known as ISO 18001).

OHSAS18001 provides the organizations with the elements of an effective safety management system which can be integrated with other management systems and help us to achieve better occupational health and safety performance and economic objectives.

OHSAS 18001 OHSAS 18001 will also be implemented at a further three of our facilities: Rawlplug SA (one of our three biggest plants), Rawlplug’s headquarters at Koelner Rawlplug IP, and Koelner Poland. We work hard to improve safety and ISO standards promote a safe and healthy working environment by providing a framework that helps organisations to:

§§ Identify and control health and safety risks §§ Reduce the potential for accidents §§ Aid legal compliance §§ Improve overall performance

Business Intelligence (BI)

In 2015, we have begun the implementation of a tool that will provide us with rapid access to multi-dimensional analysis with a drill-down option, free data visualisation, automatic distribution of reports and fully-adaptive presentation on any mobile devices. Implementation of BI will allow us to radically improve the quality of management information and simultaneously achieve a significant shortening of the work related to the preparation of analytical reports. BI will be used in sales (all sales analysis and margins) as well as for any analysis of consolidated results.

During the first quarter of 2016 we successfully completed the first stage of implementation of SAS Visual Analytics at the Rawlplug Group Headquarters. The next step will be to roll this out in all subsidiaries. Our ambition is that by the end of 2016 all our companies will be working on a single, standardized analytical platform. This new system for data visualization provides all key people with access to the correct data management, enabling them to make accurate business decisions based on the data provided.

Dynamic Buffer Management

We began using Dynamic Buffer Management (DBM) in 2014 with the implementation of a distribution model and will continue with a production model in 2015 and onward.

Dynamic Buffer Management is an innovative and unique management methodology based on the Theory of Constraints. This theory is based on the appropriate management of bottlenecks that occur in management, production and distribution in order to generate long-term profits. Dynamic storage buffer management is aimed at optimising inventory levels, or increase inventory turnover, improve availability of goods, minimizing the size of the surplus inventory, which in turn translates into increased customer satisfaction and company profits.

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In 2014 Rawlplug started to introduce a coherent policy of inventory management, order management and in particular on the line (Supplier - Headquarters - Distribution Company – Customer). At Rawlplug SA, Koelner Polska and Rawlplug Ltd. we achieved full success with a distribution management system based on the DBM methodology. A similar system in the production area is in the process of implementation.

Implementation of the production model is nearing completion and we are currently focusing on optimizing the implemented modules. Preparations are also underway for the implementation of the system at our Rawlplug Middle East and Rawl France subsidiaries.

The idea is to regularly identify bottlenecks in production, logistics and distribution, allowing for much faster resolution of problems than was previously the case. In addition, planning and buying teams receive precise information about the current demand for raw materials and freight, which directly translates into a significant improvement in the quality of orders. The quality of the order book determines the availability of goods, and any increase in sales and customer satisfaction. At the same time it can reduce or even eliminate the notion of surplus inventory. As such, it has the potential to have a very significant and positive impact on Rawlplug’s financial liquidity.

The process of implementing DBM is in underway right across Rawlplug and its subsidiary companies. The result will be a strong increase in the efficiency of the whole Group and, most importantly, a competitive advantage in building even better relationships with Rawlplug clients.

Building Information Modelling (BIM)

Building Information Modelling (BIM) relates to the production and management of digital representations of physical and functional buildings. Building information model files can be exchanged or crosslinked to support decisions about the building. Rawlplug is currently working on a project to prepare and introduce a database of products that are compatible with BIM.

The main objective of the project is to prepare a database which, according to the British government’s strategy, will be mandatory for public projects worth more than 6.3 million Euro in 2016. The benefits of the project:

§§ Provides engineers with the necessary tools for design §§ Demonstrates that Rawlplug is an innovative company prepared for changes in the construction market §§ Enables the building of a database of our products in 3D and 2D, which can be used for other marketing purposes, assembly drawings, etc. All the models / drawings will be in the same format and style – enabling the creation of much more professional looking marketing materials / technical materials.

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Customer Relationship Management (CRM)

The aim of this project is the design, execution, implementation and launch of a CRM system across Rawlplug, allowing access to full information about the client and sales opportunities. The CRM solution will also improve service and sales processes and effect a company-wide change in our approach to the flow of information about the customer and the market. This will enhance the quality of customer service, increase revenue from our current volume of customers and increase the current portfolio of clients. The CRM system will be implemented in the following areas:

§§ Customer Service §§ Sales §§ Business Support §§ Business Development §§ Marketing §§ Controlling

Main functionalities:

§§ Customer’s Card §§ Convectional Market Sales §§ Investment Market Sales §§ Customer’s Support Dashboards §§ Customer’s Segmentation §§ Sales Support §§ Price Policy §§ Promotions §§ Sales Analysis §§ Sales Plans §§ Work’s plan

The benefits of implementing the system:

§§ Integrated information about customers §§ System support for processes and activities §§ Operational control of the sales process §§ Full history of sales §§ Easy access to information §§ Detailed analytics §§ Management desktops §§ Clearly defined and managed workflow §§ Synergy of the market opportunities §§ Better defined and more accurate KPI

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Office 365

In 2015 Rawlplug began the implementation of Microsoft’s cloud-based productivity platform. The project, through which we can operate postal services, communications, data exchange and office applications available online via the Internet, is intended to create a modern, unified, secure and reliable platform for all Rawlplug companies. The benefits of the project:

§§ The creation of a single domain for companies in the whole Rawlplug Group §§ Increase the availability of data, thereby improving communication. §§ Increased security and uniform security policy across the Group. §§ Uniform working environment, compliance and compatibility of applications and files. §§ Facilities for building applications and groupware systems (including SharePoint, Yammer). §§ Freedom in the use of Microsoft licenses, legality and validity of software. §§ The creation and implementation of central database management system workstations SCCM.

Office 365 is being implemented according to plan. Seven companies within the Rawlplug Group are already connected to the system. By the end of 2016 we plan to have completed the implementation of Office365 at two moreolish P production sites, and our subsidiaries in Czech Republic and Slovakia

Web solutions

Towards the end of 2014 Rawlplug created a new internal department – Web Division. The team is dedicated to the development of web solutions which make the realization of online projects more efficient. The Web Division is an independent unit working in close cooperation with our marketing and IT departments. It is responsible for the design and development of both websites and online applications which address Rawlplug’s customers’ needs.

In 2015 the team began a project to create dedicated websites for our presence in 7 countries.

The main factor which determined the launch of this project was a desire to support the business and to realize and capitalize on the benefits of maintaining electronic channels.

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The project – in line with our wider strategy to provide freely accessible online tools and to optimize the internet as a medium for the transmission of information – is designed to facilitate the following:

§§ Communication with customers and support during the decision making process as they choose their products. §§ Sales support. §§ Access to current database products.

The benefits of the project:

§§ Enables the customer to quickly and efficiently gather and use product information. §§ Simplifies and shortens the process (for customers, suppliers, and colleagues) of obtaining technical information, advice, and services. §§ Unifies online brands identity. §§ Increases our brands recognition. §§ Helps to measure marketing and sales effectiveness through electronic channels. §§ Entrusts websites and online applications management to dedicated professionals. §§ Helps to control and update information on websites.

Web Division plans for 2016:

§§ Design and develop new Rawlplug, Modeco and Koelner brand’s websites. §§ Cooperate with e-commerce project. §§ Design and develop Rawlplug’s companies websites. §§ Support e-marketing and Internet sale activities.

Corporate Communication Strategy

In 2016 Rawlplug will implement a corporate communication strategy to plan communication with its employees, customers, suppliers and investors. Rawlplug aims to build a better understanding of Rawlplug products, services, and the company itself. We also aim to enhance Rawlplug’s reputation as a highly competent and innovative brand. The communication is targeted at those whose attitudes and actions influence the success of our business. In order to support Rawlplug’s main strategic goals – such as global expansion, improving efficiency, and sustainable development – Rawlplug will follow a strategic communication plan which focuses on both internal and external communication.

Rawlplug’s communication must be effective and thoughtful. It should combine innovative thinking, education on critical topics, and the advancement of differentiated messaging. The implementation of Office 365 tools and the subsequent modernisation of Rawlplug’s intranet and cloud data exchange system will help to keep the information accessible, current and well targeted. Rawlplug will build its corporate culture, respond to its employees’ needs, and provide education. Launching the intranet will effectively provide information on ethics, values and business objectives to all Rawlplug employees.

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SUSTAINABLE RAWLPLUG The People

Radosław Koelner Adrianna Chrobak Chief Executive Officer (CEO) Sustainability Officer HR Director of Rawlplug Group

Radosław Koelner began his career with Rawlplug SA. Adrianna Chrobak holds a Master’s Degree in Back then the company was known as Koelner SA, a Economics. Studying ideas regarding production, local, family-owned enterprise. Hard work, success distribution and consumption ideally places her to and thoughtful expansion have transformed it into tackle important questions as we refine a successful the international market leader it is today. sustainability model for Rawlplug.

Radosław has a unique overview, having worked With a background in Human Resources Management, in many departments and on many projects. By Adrianna is perfectly suited to examine sustainability working his way upwards in each department, he and corporate social responsibility. In the past she has gained insight at every level of the organisation has been instrumental in building, developing and as it performs. This has enabled Radosław to view implementing new policies, strategies and guidelines. Rawlplug as a whole entity; the perfect view from Her work in Germany exposed her to numerous which to see the possibilities for developing a European markets. She has ensured consistency in global strategy of sustainability that will drive the corporate cultures and been mindful of moving and organisation forward. adapting with their ever-changing requirements. Her understanding of the steps necessary to achieve The kind of experience that comes from being fully business objectives is invaluable when it comes to immersed in the history and development of the realising the objectives which are now part of her company is rare and valuable and has shaped him into duties at Rawlplug. a professional leader. Radosław continues to develop as a business leader by involving himself in all aspects Since joining Rawlplug in 2013, Adrianna has been of Rawlplug’s operations. collating our sustainability efforts into a single purpose with definable targets, consistent processes Radosław’s knowledge of the business and the and a clear path into the future. Whilst in her post market is extensive and impressive, and continues to she has worked hard to create the framework for serve Rawlplug and its interests in his current role as Rawlplug’s sustainability strategy. CEO. He is eager and happy to share his expertise and insight into the industry at events across the world. Her passion for the subject is evidenced by the success of the Sustainable Rawlplug website which Environmental sustainability is of great interest to went online in August 2014 and stands as a testament Radosław personally and professionally, as is support to our sustainability ideals. for various charities. Most recently his working interests have included CSR. He strongly believes, As Rawlplug moves into the sustainable future it as does Rawlplug as a whole, that working towards a envisions for itself, it will be people like Adrianna sustainable future makes logical business sense and guiding us. is a crucial aspect of Rawlplug’s business strategy.