Dear Sir/Madam,

I would like to proudly point out that Vindija has continued with its investments and activities that abide to the ten principles of the Global Compact initiative for human rights, worker rights, the environment and anti-corruption efforts. Vindija has instilled these values in its surroundings so as to ensure the long-term sustainable business activities of the company.

As one of the regional leaders in the food industry we are aware of the fact that our growing role in the total economy should be followed by a rise in our corporate social responsibility. We have developed a relationship with the community in which we do business so our business results also depend on the community's prosperity. We have therefore initiated a whole range of programs and initiatives to help the most vulnerable social groups in this year.

Our employees are our greatest support and the backbone of the development of the whole company. Consequentially, we are focused on investing into their professional capabilities – through continuous educational programs and programs aimed at establishing good personal relationships. Our employees enjoy numerous benefits, such as the financial support we provide to our employees who are also parents.

In a wider sense our corporate social responsibility is reflected in all of our business segments. Thanks to our systematic efforts in production control and fair treatment of our employees Vindija has met and even surpassed the rigorous European standards. The standards we apply in all of our business processes are part of our vision to ensure only the highest quality products to our consumers, as well as the highest level of food safety.

Thanks to this approach we have been awarded numerous certificates which confirm our products' top quality, such as ISO 9001:2008, BRC, IFS, FSSC, HALAL AND KOSHER. The latest certificate we have received is the KOSHER certificate which was awarded to our dairy Novi Domil from Županja. We have also been awarded numerous domestic and international certificates for our product quality. One such certificate is the Award for Long-Term Product Quality, which was awarded to us by the European organization for food and agricultural issue DLG. The purpose of this award is to support industry efforts aimed at preserving the highest level of product quality. The Croatian Agricultural Agency has also recognized the success of our complete production cycle by awarding our company Koka d.d. (Koka Plc.) the trademark „MEAT FROM CROATIAN FARMS“, which guarantees the customer quality domestic origin of Cekin poultry products and promotes further development of the poultry industry in the Republic of Croatia.

We will continue to employ the best practice when abiding by the ten principles of the Global Compact initiative and will carry out the necessary activities for developing a sustainable business – since we are aware that the development of our company is closely connected to our efforts to contribute to the wider community.

Respectfully yours,

Dragutin Drk, BSc in Economics

Chairman of the Management Board of Vindija d.d. (Vindija Plc.)

Through its business system Vindija actively supports the Universal Declaration on Human Rights and does not carry out business in markets where basic human rights and freedoms are violated. Vindija's business code guarantees the protection of human rights and worker dignity. In its relationship with all stakeholders Vindija implements the best possible practice in order to promote the principles of the Declaration.

In accordance with the Universal Declaration on Human Rights and the Labour Act of the Republic of Croatia Vindija's employees are legally protected from all forms of discrimination, harassment, forced labour and invasion of privacy.
In all of our business processes, from strategic planning to operational realization, we take care of preserving worker dignity in their work activities and actively work on improving the flow of communication – so as to include the employees in all of the activities and processes relevant for their well-being.

During the reporting period Vindija has not been the subject of any investigation, court proceeding or legal measures related to violation of human rights.

Vindija does not do business with organizations which employ forced labour or child labour in their business activities. All of Vindija's employees have concluded employment contracts which clearly define their work conditions, including wages and arrangements related to overtime. The employees' work assignments are clearly defined in the contracts.

Vindija observes the human rights and worker rights of its employees by battling against any form of discrimination. When an employee concludes an employment contract, they are also obliged to familiarize themselves with occupational safety and health measures for handling various types of equipment and machinery, as well as with fire protection measures. The key segment in the organization of our business activities is ensuring work safety, employee education and familiarization with safety measures and particularly the proper functioning of all tools and devices used in our work activities.
Vindija has ensured a safe, clean and organized work environment for its employees.

The company particularly focuses on developing interpersonal relationships.
Employees who are also parents have the right to additional benefits, material and financial support, which includes presents for newborns, holiday presents, assistance in education, organization of numerous activities (such as field trips) and financing of family summer vacations.

This year Vindija has again handed out gift packages to its employees before their annual vacation and holidays. At the beginning of the school year Vindija also handed out gift cards for school supplies to its employees. During Advent employees who have been with the company for a certain number of years are awarded money prizes for their personal contribution to Vindija's success.

Vindija's implementation of the Universal Declaration on Human Rights is visible in its employee structure – which encompasses all age and sex groups. Forty-one percent of the top management employs women, which is a number above the Croatian average.

In all of its business processes Vindija implements the highest standards of environmental protection and safety by continuously keeping up with the trends and applying state-of-the-art technological solutions that minimize impact on the environment. Control of production, products, raw materials, energy facilities, waters and waste waters is carried out by using automatic equipment and eco-friendly methods.

Our energy facilities use energy according to the dropping-value sequence - electricity, gas and heating oil which functions as an alternative fuel in case of lack of gas supplies.

Our cooling units do not contain gases which contribute to the formation of holes in the ozone layer. This is because we use NH3 with indirect mediums, freezing cold water, cold water and ethylene glycol for air conditioning.
We have special processing modes for each group of secondary raw materials, for example, paper is collected and shipped daily, while plastic wrappers and objects from artificial masses are separated and pressed. Ever since the implementation of the Ordinance on Packaging began Vindija has been fulfilling the requirements of the Fund related to treatment of packaging waste in the Republic of Croatia.

The emissions from our production process have no significant impact on the soil. We regularly conduct separate measurements of pollutant emission into the atmosphere.
In accordance with the provisions of the Environmental Protection Act we have prepared an operative plan of environmental protection measures. We have also conducted activities related to adaptation according to corresponding implementation regulations – with the aim of harmonization with EU legislation.

During the construction of plants at Vindija member companies we have tried to introduce a quality correlation between the constructed space and green areas. The architecture of the industrial park, which has been designed by top professional experts, encompasses all of the green areas – according to the recommendations of a horticultural expert.

None of Vindija's processes, from production of raw materials and final products to distribution and positioning within the sales network, have caused any environmental incidents. This is the best proof of the adequate implementation of the environmental principles of Global Compact.

Vindija is constantly battling corruption by trying to create a positive atmosphere in which every individual will be protected from injustice and unethical situations, such as extortion, bribe and other forms of violation of the Labour Act and United Nations Convention against Corruption.

Vindija wholeheartedly supports the battle against corruption and the efforts of the Government of the Republic of Croatia aimed at its long-term prevention. Vindija's management is currently undergoing educational training which will provide them with the necessary knowledge for detecting all forms of non-transparent and illegal business activity and its prevention. During its participation in public procurement procedures Vindija is particularly focused on the legality of its complete activities.

During the reporting period Vindija has not been involved in legal cases related to corruption and bribe.