REPORT OF ALIOR BANK S.A. GROUP ON NON-FINANCIAL INFORMATION FOR 2019 1 Table of content 1. Alior Bank Group and its parent company – Alior Bank S.A. ................................................................................................................. 3 1.1. Who we are .......................................................................................................................................................................................................... 3 1.2. Our business strategy ...................................................................................................................................................................................... 5 1.3. Our relations ..................................................................................................................................................................................................... 11 1.5 Alior Bank Group companies ...................................................................................................................................................................... 18 1.6. Our awards ........................................................................................................................................................................................................ 23 2. Foundations of our activity .................................................................................................................................................................. 27 2.1. Ethics – rules of conduct.............................................................................................................................................................................. 28 2.2. Fraud risk management ............................................................................................................................................................................... 31 2.3. Prevention of violation of human rights in the supply chain ....................................................................................................... 32 2.4. Management of risks related to business activity ............................................................................................................................ 33 3. Customer in focus .................................................................................................................................................................................. 41 3.1. Customer’s voice ............................................................................................................................................................................................. 41 3.2. Customer experience .................................................................................................................................................................................... 43 3.3. Innovation .......................................................................................................................................................................................................... 50 3.4. Responsible sales ............................................................................................................................................................................................ 54 3.6. Education of employees .............................................................................................................................................................................. 55 3.5. Security of data and customer transactions ........................................................................................................................................ 55 3.6. Protection of personal data ....................................................................................................................................................................... 56 3.7. Secure electronic banking........................................................................................................................................................................... 57 4. Employment – who are our employees? .......................................................................................................................................... 59 4.1. Headcount ......................................................................................................................................................................................................... 59 4.2. Development of Transformational Leaders ......................................................................................................................................... 60 4.3. Working conditions ....................................................................................................................................................................................... 61 4.4. Benefits ............................................................................................................................................................................................................... 63 4.5. Diversity management ................................................................................................................................................................................. 65 4.6. Development of staff competencies ...................................................................................................................................................... 69 5. Community and neighbourhood responsibility ............................................................................................................................. 71 5.1. Community involvement ............................................................................................................................................................................. 71 5.2. Supporting the development of enterprise among Polish companies ................................................................................... 85 5.3. Management of environmental impacts .............................................................................................................................................. 91 About this Report ....................................................................................................................................................................................... 95 2 1. Alior Bank Group and its parent company – Alior Bank S.A. 1.1. Who we are [GRI 102-18] Alior Bank is one of the fastest growing banks in Poland. It’s the first start-up bank which from the very beginning of its activity has been committed to innovation and trend-setting in online banking in the Polish market. It’s a leader of modern banking based on pioneering technology solutions. It uses blockchain, open banking, artificial intelligence and biometrics while courageously and always successfully delivering its innovative ideas. Alior Bank has been the first bank in Poland to create a fully online Currency Exchange Bureau. Alior Bank is also responsible for launching Poland’s first video verification of setting up personal accounts. Key figures – place of Alior Bank among the biggest banks in Poland The activity of the Alior Bank Group extends to different, albeit interlinked segments. It is closely related to the activity of Group companies. In addition to banking, the Group is active in, among others: leasing, insurance brokerage, asset management, searching for and attracting third parties to collaborate in offering non-banking services, services in online technology. 3 The main operations of the Bank include the keeping of bank accounts, providing loans and advances, issuing bank securities and purchasing and selling foreign exchange. We also pursue brokerage, financial advisory and intermediation services, underwriting of the issuance of corporate bonds, and provide other financial services. In the years to come we plan to significantly grow sales through electronic channels. [GRI 102-5] We have offered our banking products and services through a network of our own outlets, through partners and financial intermediaries and distribution channels based on our IT platform comprising: online banking, mobile banking and call centres. Support to the distribution network is provided by service points which offer our products under the brand: T-Mobile Banking Services delivered by Alior Bank. Alior Bank’s products and services 4 Alior Bank is a public company. Since December 2012, our shares have been listed at the Warsaw Stock Exchange (WSE) – the initial public offering (IPO) for PLN 2.1 billion was the biggest offering of a private company in the history of WSE. Since 2014, Alior Bank’s shares are part of the WIG20 index. Our shareholders are Polish and international investors. Alior Bank’s Headquarters are in Warsaw, but we operate nation-wide. At the end of December 2019, Alior Bank held 820 outlets (197 traditional branches, 7 Private Banking branches, 8 Corporate Centers and 608 franchise branches). Alior Bank S.A., in collaboration with Telekom Romania, a Deutsche Telekom Group company, has started [GRI 102-4]3] commercial activity in the Romanian market in October 2017. Currently, the collaboration between Alior [GRI 102-6] Bank and Telekom Romania is the only one between such large and significant entities in the financial and telecom sectors in the Romanian market. The „Telekom Banking” brand has become increasingly