SUSTAINABILITY REPORT

2015 LTH CASTINGS GROUP

Table of content 1. LETTER FROM MANAGING DIRECTOR ................................................................................. 2 2. GENERAL STANDARD DISCLOSURES ................................................................................. 4

2.1. ORGANIZATIONAL PROFILE ................................................................................................................... 4 2.1.1. Activity of the group ................................................................................................................. 4 2.1.2. Basic information on the Group performance .......................................................................... 4 2.1.3. Supply chain ............................................................................................................................. 5 2.1.4. Collaboration with external organizations ................................................................................ 5 2.1.5. External verification .................................................................................................................. 5 2.1.6. Organizational changes in 2015 .............................................................................................. 5 2.1.7. Risk management .................................................................................................................... 5

2.2. IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES ................................................................................. 6 2.3. STAKEHOLDER ENGAGEMENT .................................................................................................... 6 2.4. REPORT PROFILE ................................................................................................................................ 6 2.5. GOVERNANCE ..................................................................................................................................... 7 2.6. ETHICS AND INTEGRITY ........................................................................................................................ 7

3. SPECIFIC STANDARD DISCLOSURES .................................................................................. 8 3.1. ECONOMIC ASPECTS ............................................................................................................................ 8 3.2. ENVIROMENTAL ASPECTS .................................................................................................................... 8 3.2.1. System of continuous improvement ......................................................................................... 9

3.2.2. Selection of input materials .................................................................................................... 10 3.2.3. Production of Aluminium diecastings ..................................................................................... 10 3.2.4. Final products ......................................................................................................................... 10 3.2.5. Recycling ................................................................................................................................ 10 3.2.6. Communication ...................................................................................................................... 11 3.2.7. Recognized environmental aspects ....................................................................................... 11

3.3. SOCIAL ASPECTS ............................................................................................................................... 13 3.3.1. Labor practices and decent work ........................................................................................... 13 3.3.2. Human rights .......................................................................................................................... 15 3.3.3. Society ................................................................................................................................... 15 3.3.4. Product responsibility ............................................................................................................. 16

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1. LETTER FROM MANAGING DIRECTOR After having surpassed the threshold of 200m€ annual turnover in 2015 and placed ourselves among the biggest European die-casting foundries LTH Casting Group is attracting an increased attention of our business partners, local communities and decision makers. We decided therefore to publish our first formal sustainability report, summarizing our main goals and achievements with regard to business excellence, environmental and social responsibility in one single document. From the business point of view, we are proud of the main achievements in 2015:

• we updated the basic strategic objectives, • we performed adequately with regard to quality and delivery (Quality award of our long term partner WABCO) and managed to penetrate deeper into our customer´s organizations, • we successfully acquired strategic new projects, well above the target setting, enabling us for the necessary long term business growth, • we achieved or surpassed most of the financial targets.

As a process specialist in die-casting we are 100% bound to automotive industry. The latter, together with the mobility industry in general, face historic challenges and changes. Let us list just those having an intermediate influence on the die-casting industry:

• Downsizing /Optimization of combustion Engine • Electro mobility /Hybridization • Automated Driving • Alternate Chassis Solutions • Platform /Modular Approach • Change in Consumer behavior

For us it is essential to monitor these trends and developments and to adjust the activities including its medium and long run planning if necessary. The basic strategic orientation of the LTH Castings Group for the next 5 years includes a further organic growth with the clear target to reach the sales of 300m€ until 2020 with one additional greenfield manufacturing location. Besides, we are actively monitoring further opportunities on the market. Aluminium and steel, our both input and output materials are fully recyclable. LTH Casting is following the ISO 14001 environmental standards and renewing the corresponding formal certificates for many years, the same is valid for health and safety and certificate OHSAS 18001. Besides, by launching many internal programs, we actively aim to improve further the working conditions and to reduce the environmental footprint across our plants.

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The target for 2016 is to make another step with regard to rational consumption of energy, in our case natural gas and electricity, but also of general goods as drinking water etc., by applying for the Certificate ISO 50001. In our local environment, we successfully sponsor the basketball team (named LTH Castings) as well as many other sporting, educational, cultural or charity organizations and events. Last year, the local community appraised our contribution to sporting activities by a formal acknowledgement. It is our belief that only sustainable acting in all relevant subareas can bring the LTH Castings Group the long-term business success together with the corresponding growth and stability. We are therefore determined to continue this reporting also in the next years in order to maintain and even increase the transparency of all relevant business areas. You have the first issue of the LTH Castings Sustainability Report in front of you. Thank you for reading it, we will be grateful for any feedback or improvement proposals. Škofja Loka, 15.4.2016 Andrej Kranjec, Managing director

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2. GENERAL STANDARD DISCLOSURES 2.1. ORGANIZATIONAL PROFILE LTH Castings Group is composed of the parent company LTH Castings d.o.o. (Škofja Loka, Slovenia) and the subsidiaries LTH Metalni lijev d.o.o. (Benkovac, Croatia), LTH Learnica dooel (Ohrid, Macedonia). In 2015 a new subsidiary LTH Alucast d.o.o. (Čakovec, Croatia) was established; but the company was not yet operating in 2015. Basic data about the parent company of the LTH Castings Group are presented below: Company name: LTH Castings d.o.o. Registered office: Vincarje 2, SI-4220 Škofja Loka, Slovenija Type of organization: Limited Liability Company Share capital: 17.892.779,00 EUR Ownership on 31.12.2015: The company is 100% owned by LIOR INVEST d.o.o. Supervisory Board: Function of the supervisory board is performed by the shareholders meeting Management: Andrej Kranjec, Director 2.1.1. ACTIVITY OF THE GROUP LTH Castings has had a long tradition and experience in the development, casting, processing and assembly of highly complex aluminium and magnesium alloys. Advanced thinking, procedural knowledge and highly efficient production, are the basis on which we develop innovative and top quality products. Our customers include the automotive industry from all over Europe, who has chosen LTH Castings as their preferred development partner and supplier. This approach of continuous improvement is the guiding principle behind all our processes and operations, with the consequent objective of achieving business excellence throughout our group. Our manufacturing and service presence in Slovenia, Croatia and Macedonia enables us to meet both the qualitative and competitive requirements of our global customers. Expertly trained and highly motivated employees are the cornerstone of our success. Our solutions are created by accountable and independent individuals and teams, all working on the basis of a clearly defined system of target agreements and rewards. This atmosphere of mutual trust and respect is mirrored in the relationships we maintain with our customers, suppliers, investors and business partners. Special attention is placed on the high quality of our products and environmental impact of our activities. For this reason, we have implemented a comprehensive system of quality and environment management, which is described in the Rules of procedures and the related documents. This allows a systematic and ongoing improvement of our operations to ensure that the goals set up in the Quality and environment management policy are achieved.: 2.1.2. BASIC INFORMATION ON THE GROUP PERFORMANCE Basic data on the extent of the Group's operations LTH Castings in 2015: Number of employees (calculated from hours): 2.261 Revenues from sales: 230.5 million The share of capital in financing assets: 52% More detailed information on operations for 2015 are available in the published audited annual report of the LTH Castings Group for 2015 (hereinafter the Audited Annual Report). The report was made public in the Business Register AJPES.

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2.1.3. SUPPLY CHAIN We ensure the optimization of the costs of raw materials through effective management of the supply base and commodity risks, streamline inventory and close cooperation with the field of production in the search for suitable materials. In addition, we have in recent years sought to establish a stable and competitive sub-contractors database in environments where we operate. Among the key priorities in the process of management costs of raw materials include effective risk management variable commodity prices. In the case of aluminium the risks of volatility are protected with flexible sales prices, which are linked to the listing of aluminium alloys on commodity exchanges. 2.1.4. COLLABORATION WITH EXTERNAL ORGANIZATIONS In the context of Research and development initiatives the LTH Castings Group has established several partnerships with external institutions:

• NELA razvojni center (R&D center) • TECOS, development center for toolmaking • Faculty of Mechanical Engineering, University of Ljubljana

The Group is a member of the following interest groups: • ACS Slovenian Automotive Cluster • AD cluster, Croatia • GZS, Chamber of Commerce of Slovenia • ZDS, Employers' Association of Slovenia

2.1.5. EXTERNAL VERIFICATION The financial reports of the LTH Castings Group and companies included in the LTH Castings Group are audited by an independent auditor. The audit is conducted in accordance with applicable International Financial Reporting Standards as adopted by the EU. The audit was conducted by an internationally recognized auditing company KPMG. Environmental protection system complies with the ISO 14001 environmental standard at all locations of the LTH Castings. External independent verification of conformity is carried out by Bureau Veritas. Safety management system and health at work is consistent with the requirements of OHSAS 18001 The system is in place at all Group locations in Slovenia. External independent verification of conformity is carried out by Bureau Veritas. 2.1.6. ORGANIZATIONAL CHANGES IN 2015 In 2015 there were no changes in the LTH Castings Group's business locations. The group made no changes related to the supply chains. The share capital of the LTH Castings Group also remained unchanged. 2.1.7. RISK MANAGEMENT Guidelines for risk management are prepared to identify and analyze the risks that the company faces, on the basis of which will are determined the appropriate limits and controls and monitored risks and adherence to limits. Policies and risk management systems are reviewed regularly and thus updated information on changes in market conditions and the Company's activities are forwarded. Thus, with education as well as the standards and procedures for risk management a disciplined and constructive control environment in which all employees understand their roles and obligations. Complete account of risk exposure and risk management is disclosed in the Audited Annual Report.

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2.2. IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES In this Sustainability Report we assess the economic, environmental, and social impact of our business operations in 2015. The information provided in our Sustainability Report applies to the entire LTH Castings Group with its business divisions. The report is ‘In Accordance’ with the GRI G4 Guidelines – Core option. The report was prepared in accordance with the internationally recognized guidelines on sustainability reporting GRI G4. The report has not been verified by an external agency. 2.3. STAKEHOLDER ENGAGEMENT Clearly defined mission of the group is the foundation of our idea of the sustainable development of the LTH Castings Group: In our operations, all employees jointly strive for business excellence in our activity with comprehensive servicing of customers, investing in knowledge, innovative development of products and processes, constantly increasing productivity and quality. In our operations, we are aware of the responsibility to the local community and environment. We are aware of the importance that our key stakeholders are contributing to the realization of sustainable development. We focus on customers and company employees, and an important role is also played by suppliers, company owners and financial institutions. We should also neglect the local environment. 2.4. REPORT PROFILE The reporting period corresponds to our financial year, which runs from January 1 to December 31. 2015 is the first reporting year. Group defined reporting cycle is biennial. Any questions regarding the report should be addressed to the secretariat of the Group’s general manager. GRI Content Index

Chapter Title of the Chapter Page G4 Standard Disclosure1. LETTER FROM MANAGING DIRECTOR 2 G4-12. GENERAL STANDARD DISCLOSURES 42.1. ORGANIZATIONAL PROFILE 4 G4-3, G4-5, G4-6, G4-72.1.1. Activity of the group 4 G4-42.1.2. Basic information on the Group performance 4 G4-8, G4-9, G4-10, G4-112.1.3. Supply chain 5 G4-122.1.4. Collaboration with external organizations 5 G4-162.1.5. External verification 5 G4-332.1.6. Organizational changes in 2015 5 G4-132.1.7. Risk management 5 G4-142.2. IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES 6 G4-17, G4-182.3. STAKEHOLDER ENGAGEMENT 6 G4-24, G4-25, G4-26, G4-272.4. REPORT PROFILE 6 G4-19, G4-22, G4-23, G4-28, G4-29, G4-30, G4-31, G4-322.5. GOVERNANCE 6 G4-342.6. ETHICS AND INTEGRITY 6 G4-15, G4-563. specific standard disclosures 8 G4-20, G4-21

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2.5. GOVERNANCE Below the organizational structure of the LTH Castings Group is presented.

2.6. ETHICS AND INTEGRITY Integrity, compliance with the law and responsibility towards people and the environment are the guiding principles for LTH Castings Group's Corporate Governance. Code of Conduct represents the commitment of the LTH Castings Group to fundamental standards that make LTH Castings Group a good place to work. Employees are Groups most vital asset. The individual and collective contributions of employees at all levels are essential to the overall success. In recognition of this, LTH Castings Group has developed policies and practices designed to assure that our employees enjoy the protections afforded by the concepts set forth in the Code of Conduct. All production locations of the LTH Castings Group have established representative trade union organizations and collective agreements in force at the company level. Collective agreements at the company level provide employees with a higher than the prescribed standard on the level of branch or country. LTH Castings Group is committed to fair and just working conditions around the world, and regards the conventions and recommendations of national and international, organizations such as the “United Nations Global Compact” and the “UN Guiding Principles on Business and Human Rights”, as being important guidelines. We therefore expect also from our business partners to comply with the same principles.

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3. SPECIFIC STANDARD DISCLOSURES 3.1. ECONOMIC ASPECTS The economic dimension of sustainability concerns the organization’s impacts on the economic conditions of its stakeholders, and on economic systems at local, national, and global levels. Report on Aspects related to economic performance, market presence, indirect economic impacts and procurement practices are included in company's Audited annual report for 2015. This includes aspects related to direct economic value generated and distributed, organization's defined benefit plan obligations, financial assistance received from government, development of infrastructure investments and also indirect economic impacts. The Group is committed to hire senior management form the local community at significant locations of operations. Significant locations of operations are defined with operating companies running production. Local is related to local state of the operating company. Senior management is defined with first and second level of management. We are well aware of the fact that highly motivated employees represent a key element for successful business operations of the group. Above minimum level wage is part of the effort for this motivation. Exact for technology process specific purchases, local procurement is in place on all locations of operation. Active environment protection parties applied throughout our operations. We pay attention to the environmental balance of our products through their entire life cycles. In addition, the impact of our processes is permanently monitored and underlies our continuous improvement program. Our environment protection system is tailored to environmental standard ISO 14001 in order to prevent pollution at source, address social issues and - last but not least – lower costs. Report risks and opportunities that have the potential to generate substantive changes in operations, revenue or expenditure are addressed within the group strategic plan for the next five years period, which is regularly maintained. Key risks and opportunities related to climate change are related to development of CO2 Emissions standards for the automotive industry. The 2020 target for the European automotive industry of 95g/km is reachable without electrification. Further reduction (below 75g/km) is achievable through Hybridization or through 100% electric vehicle, with hybridization demanding additional die-castings for the automotive industry. 100% EV is currently still being too expensive for today's mass vehicles, but the trends need to be monitored. 3.2. ENVIROMENTAL ASPECTS The LTH Castings Group management has committed to environmental responsibility and effective management of natural resources and energy efficiency. The management system in place ensures that our products, together with the continuous optimization in terms of costs, improving quality, and taking into account the requirements in the field of safety and health at work, environmental protection requirements and energy efficiency improvements, to meet the needs and expectations of customers and the interested public. For the implementation of activities in the field of environmental protection and energy management within the LTH Castings Group at each location designated representatives of the environmental management system and energy management system are designated. The function of the representative is to hold in the management consulting, control, development and operational role. Management recognizes that each employee has a significant impact on the effectiveness of environmental management and energy management systems, therefore, it places great emphasis on training and awareness of all employees in these areas. The Management once a year during the management review verifies the effective functioning of environmental management and energy management systems. LTH Group demonstrates its environmental responsibility and energy efficiency in particular by reducing the environmental impact and analysis of energy efficiency indicators.

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With the environmental management system according to the ISO 14001 standards we are certified on all locations. An energy management system is according to ISO 50001. 3.2.1. SYSTEM OF CONTINUOUS IMPROVEMENT Integrated policy management system is aiming to present the principles, practices and values as a starting point for defining the objectives and targets in the field of product quality, environmental management, occupational safety and health, and energy management. We are committed to continuous improvement of the systems with:

• identification of risks and the determination of who would be exposed to this, • a risk assessment of the safety and health of employees and the determination of appropriate

measures, • preventing risks to the health and safety of employees and environmental pollution, • implementation of the principles of good practice in the field of safe and healthy working

environment, • health promotion in the workplace, • fulfilment of customer requirements and environmental health and safety legislation, • planning processes by making better use of basic raw materials, energy and natural resources, • the selection of such auxiliary and propulsion means by which you can manage processes and emissions to water, air and soil, • the purchase of modern technologies and the introduction of the ergonomic design of workplaces, • implementation of the principles of good practice in the field of information security.

With the policy of the integrated system, we define the strategy of "zero defects". The quality of the product / process is designed with an emphasis on applied statistical knowledge and skills management processes. By planning education, training and awareness, we ensure that all employees at all levels are aware of the following:

• each employee is an important link in the creation of health and safety at work, and that only healthy employees can form a safe and healthy organization, • safe and healthy working environment in the company and environment protection in general are the preconditions for a quality product, • the quality of a product means customer satisfaction and a prerequirement for further growth, • the quality of the product means compliance with the specifications and environment-friendly, without compromising the safety and health of employees, • that energy efficiency represents an opportunity to make additional investments in product quality, environmental protection and better working conditions.

Policy is implemented through teamwork. Team members with their knowledge and suggestions help choose the best possible solutions within the framework of the program of continuous improvement. We encourage innovative activities at all levels, in order to further improve product quality and working environment, reduce environmental pollution and increase energy efficiency. All that work for us and in our name are acquainted with this policy because we believe that we can work together in partner relationships across the supply chain, from the supplier to the end customer, and achieve common objectives and at the same time, contribute our share to sustainable development.

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In our work we strive to eliminate deviations at their source. For any deviation from the policy a corrective measure is put in action. Our policies are communicated to all employees and all who work on our behalf and are implemented in practice. Our policies are also available on request to interested parties. The management together with all employees, develops strategies, plans activities and provides the means for achieving the objectives of the policy. Continuous improvement process within the company is presented below.

3.2.2. SELECTION OF INPUT MATERIALS For the production of castings Al alloys are used with the standardized chemical composition according to the requirements of our customers. Most of the delivered material is made from secondary, recycled raw materials. All our products can be at the end of service life 100% recycled. 3.2.3. PRODUCTION OF ALUMINIUM DIECASTINGS In production processes auxiliary materials are used which do not contain prohibited substances (defined by law and by the customers). Within the selection process the main criteria is not only the price but also the environmental aspect and the aspect of safety and health at work. Since 1999, the use of auxiliary materials and energy is systematically monitored. The results are bound per unit - the weight of castings sold. Consumption unit also enables direct comparison between the use of specific locations. 3.2.4. FINAL PRODUCTS Product development is carried out by our customers, so we do not have a direct impact on the form and functionality of the product. With the experience in die casting and machining the influence can be applied on lighter weight of the product, which is important in the overall weight of the vehicle and thus lower fuel consumption and thus less use of natural resources and reduction of emissions. 3.2.5. RECYCLING Aluminium castings can be fully recycled the completion of the life cycle. During the production process generated waste material can be internally recycled (scrap Al parts).

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The main focus within the process is on achieving the primary goal of highest quality. Fewer scrap pieces mean better energy efficiency and lower consumption of auxiliary agents on the unit. 3.2.6. COMMUNICATION Employees Achieving the objectives of the integrated management system depends on the education and training of employees. Permanent and systematic attention to education, training and awareness is the basic motto of the company's culture. The training covers all employees in all areas and levels. Such coverage of education and training is provided that it aims to ensure that employees are trained to work safely in their jobs and that employees are properly trained in the use and understanding of the requirements, procedures and other documents of the quality system, health and safety and environmental management. Employees are aware of their responsibilities within the framework of an integrated management system, with the ability to perform their work. Communication is an important part of internal communication within the group LTH, which includes the following important communication routes:

System of innovation and constant improvement, System 5 S and TPM, Internal newspaper LTH Reporter LTH Academy, Bulletin boards, Online internal communication via the intranet Daily, weekly and monthly meetings, depending on the level and content of the decision.

An important part of communication and collaboration between employees in the fields of environment and energy consumption is also a regular and periodic training. Employees of the Group LTH Castings ensure that they:

strive for perfection, ensure the highest quality products, take care of the safety and health of all those who are associated with us, tare for the environment in which our children will live, provide for continuous and sustained increase in energy efficiency.

Suppliers Suppliers are an important aspect in the quality of delivery of materials and services, the environment and energy efficiency, which is why we have introduced a system of monitoring and evaluation of the quality of supplied materials and services. Local community Social Responsibility is one of the key pillars of responsible operation of the LTH. All messages and requests made by interested parties was recorded and considered individually. 3.2.7. RECOGNIZED ENVIRONMENTAL ASPECTS Recognized environmental aspects are elements of the activities, products and services that affect the environment, called environmental considerations. In determining environmental aspects, we take into account all stages of the production process, products and activities, both under normal conditions, in extreme conditions, as well as in the event of a crisis.

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Every aspect of the influence on the environment is taken into consideration. To determine the importance of individual environmental aspects the following criteria was used:

The degree of risk of crisis, Compliance with legislation and other requirements, Policy requirements Costs associated with the aspects Environmental burden.

Assessment of environmental aspects is carried out once a year or in case of changes in legislation or in case of other major changes in the scope of the environmental management system. According to the criteria of assessment significant environmental aspects are identified which determine the framework and implementing objectives of the programs. Identified main environmental aspects in our scope of operation are presented.

Aspect evaluation process

Integrated management system policy

Legal and other requirements

Degree of risk of crisisCosts associated with aspect

Enviromental burden

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Identified environmental aspects are presented in the table below. Energy aspects are presented in form of CO2 emissions per kg of products produced. Raw material costs and services costs are presented in Audited Annual Report. Auxiliary materials and Waste is presented with kg per tons of products produced.

3.3. SOCIAL ASPECTS LTH Castings Group is aware of the responsibility towards employees, business partners and the local environment in which they operate manufacturing plants. 3.3.1. LABOR PRACTICES AND DECENT WORK Due to LTH Castings Group output growth and the acquisition of new projects, respectively increasing the volume of work, employment policy is accelerated. Sustainable development of the company is also reflected in the local environment with reducing the unemployment. Better living standards and safe working environment All jobs in the LTH Castings Group are regulated by the Act on systematization and organization of workers within each company. Systematization of work posts ensures the full employment of workers and the corresponding total number of posts corresponding to the scope of the tasks, nature and method of the latter. Jobs are designed to enable:

organization of the work process, effective organization of work at the present time and the introduction of changes, flexible division of labor within a single organizational unit, organization of work processes, setting appropriate standards and procedures for the selection of workers and their training

and development,

Identified enviromental aspects

Energy:electricity

Gas

Raw materials:Aluminium

emissions:CO2

Waste:Other

Other:Transport

Aspect Indicator Result 2015 Result 2014Enviromental Energy CO2 emissions (CO2/kg) 2,0 2,1

Auxiliary materials (kg/T) 14,1 15,2Waste (kg/T) 4,8 4,8

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normal professional growth and advancement in the workplace, control the work process based on the principle of total quality management and transfer of knowledge and experience to colleagues.

To achieve optimum organization of the working process, the Act on systematization and organization of the work group provides special treatment for managerial and key positions. Key personnel within the group occupying the most demanding jobs require at least level VI. of education and a minimum of 5 years of work experience. Innovation process All employees are responsible for ensuring the competitiveness of our products and services. This is also reflected in the process of proposals for innovations from the employees. Eligible technological innovation is examined, realized and also rewarded. Thus new ideas are being promoted in every workplace. Competences For each job it is defined exactly what competencies are expected from the employee. Competencies are features and capabilities that allow the individual to effectively and efficiently carry out the work according to the requirements of the job. They comprise a combination of abilities, skills, experience and approach that contributes to job performance. Annual interviews Annual interviews, which are performed by using the centralized HR System, are carried out regularly and thoroughly. Annual interviews have a stimulating impact on employees, since the main task is the one that examines goals set with the previous annual interview and their realization and installation of new targets. Mentorship Each new employee is enrolled within the process of mentoring. Mentoring is a process for the informal transmission of knowledge, social capital, and the psychosocial support perceived by the recipient as relevant to work development. Mentoring process is for the period between 3-6 months, depending on the job specifics. Promotion of heathy living The group organizes sporting events for employees on weekly, monthly and yearly bases. The events are either free of charge or subsidized for employees. Education of employees Sustainable development in relation to the employees requires their life time knowledge development. Employees have internal and external education available, both in specific areas of expertise as well as general topics. Collaboration with Educational institutions Great emphasis is given to the education of our future personnel. There is close cooperation with the Training Centre Škofja Loka (Secondary School for Engineering), College of Engineering in Škofja Loka and Training Centre Kranj (Secondary School for Engineering). When mentioning cooperation with various educational institutions we have in mind:

Sponsorship money to buy new work clothes, Company presentations within the school, Participation in educational projects Membership in the consortium of companies to raise the quality of technical education Membership in the association Connector Participation in international exchanges of pupils and students from abroad

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Multi-annual cooperation with the Vocational Training Centre Škofja Loka - linking theory and practice is the best learning method and provides a solid base for the acquisition of qualified staff.

Our prime concern is to enable potential compulsory job training, student summer jobs and scholarships for the most successful and ambitious pupils and students. Our aim is to obtain motivated staff with appropriate qualifications, knowledge and experience that will be able to follow the daily learning trends and, customer requirements, and thus raise the quality of their work and, consequently, the competitiveness of companies. Pupils and students are provided with:

secure jobs that match their age and competence, instructions on safety and health at work (theoretical and practical) appropriate personal protective equipment, suitably qualified tutors.

3.3.2. HUMAN RIGHTS LTH Castings Group within the processes emphasizes the rights of non-discrimination, gender equality, freedom of association, collective bargaining, prohibition of child labor a forced or compulsory labor, and indigenous rights. LTH Castings Group is committed to fair and just working conditions around the world, and regards the conventions and recommendations of national and international, organizations such as the “United Nations Global Compact” and the “UN Guiding Principles on Business and Human Rights”, as being important guidelines. We therefore expect also from our business partners to comply with the same principles. 3.3.3. SOCIETY The company is aware of its responsibility towards its local community. Promotion of healthy living LTH Castings group is sponsor of different sport organizations within the local community with aim to promote healthy living and to provide better (alternative) development for youth. Sponsorships In addition to the sponsorships in sporting events, the Group is also promoting local cultural and other events, with the most famous being Škofjeloški pasijon. The Group also supports local non-profit organizations such as fire brigade, scouts organizations and others. Compliance and legal actions The Group is not involved in any action pending or completed during the reporting period regarding anticompetitive behavior and violations of anti-trust and monopoly legislation. Within the Group there was no legal case of any non-compliance with laws or regulations. No incident related to corruption was recorded within the reporting period.

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3.3.4. PRODUCT RESPONSIBILITY Products are our responsibilities to customers and, ultimately, to all who in any way cooperate with the company. Indirect responsibility lies with end users of the Automotive industry – customers. The main focus is on the quality. To achieve the ultimate goal of Zero defects, we strive to:

perfection in service (quality, accuracy) developing and investing in human resources orientation to customers One-stop-shop (development as a key component) keep the basic knowledge in house with implementation of the latest technology trends innovation 6 sigma & Continuous improvements excellence in internal and external communication, keeping promises.

Confirmation of our right strategy are the awards we have received from our largest customer groups: JTEKT: Quality Award Bosch: Preferred Supplier Continental: Supplier of the Year Daimler: Supplier Award Wabco: Quality Award