Bucharest, August 1, 2013

Statement of continued support by the Chief Executive Officer (CEO)

To our stakeholders:

I am pleased to confirm that Casa Felice Industries reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

In support of our commitment Casa Felice Industries has defined and structured its strategy and organization in full compliance with the Ten Principles of the United Nations Global Compact.

Our Mission is to become a global provider of social housing solutions. We are a privately-owned, non-stock-listed, "not-for-profit-only" organization. Our shareholders are committed to objectives beyond shareholder value and dividends and create exceptional value for all our stakeholders. Our philosophy, culture and values are based on the principles of the United Nations Global Compact, the Club of Rome and the Blue Economy. Social and environmental responsibilities prevail.
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We aim to continuously generate sufficient new cash-flows to expand our scope of influence, to fund our innovations, to secure our employees, to create jobs, to improve our environment and to support disadvantaged communities.

We continuously increase our resistance to economic conjuncture and speculative influences from markets. We innovate by sharing know-how and experience with industry professionals and building strong bonds with individuals around the globe via social networks.

Our organization refrains from any undertakings that possibly could impose financial risks or damage the reputation of our company and its stakeholders and maintains open communication with its stakeholders, provides transparent reporting to regulatory bodies.

Sincerely yours,

Piet Saarloos
Founder and President

Casa Felice Industries is unconditionally committed and in full support of the Universal Declaration of Human Rights. Our focus is however not on the political and legal combat of violators or recording and reporting of violations. Casa Felice has decided to be an actionable organization on providing and exercising the Rights of Humans instead of protecting them. Our main focus is to provide Affordable Homes to Disadvantaged Households and make these households independent of speculative commercial, macro-economic and political influences. Casa Felice perceives affordable housing as one of the most principle rights of human beings and unfortunately at present massively violated (including ignorance).

Availability of adequate housing is already for decades one of the most serious problems mankind is facing, but thus far poorly addressed by most governments. The United Nations estimates that there are at least 500 million people permanently homeless in the world at any given time. In addition, millions of households are living in homes with technical defects and hygienic inadequacies. This problem is not limited to just the African, Asian and South American continents alone. For instance in Romania, a top 10 EU member state with 21 million inhabitants, approx. 2 million homes or almost 25% of the total housing stock does not comply with the safety and health norms. Many disadvantaged households are facing social problems due to lack of sufficient living space. On average these households have substantial less living space than the EU norm of 36 square meters per capita.

In addition to the already existing housing crisis, the world got hit by an economic crisis. The public still perceives this crisis as a bad storm that will pass after a while. Casa Felice perceives this crisis as a rigorous correction of the credit inflated, hyper-consumption economy, leading to permanent and substantial reduction of household's income, living standards and social security, in particular for the households with lower and medium incomes. And with ever rising costs of energy, food, transport, healthcare, education, etc. the spendable income of these households is now permanently insufficient to sustain a decent life. At present most of these households compensate the shortage of income by burning their life savings and selling of their assets, but soon they will run out of funds. The young generation will not qualify for a home loan anymore even for an average small property, nor be able to rent it. It is expected that even after a recovery more households than ever cannot afford to buy a home anymore. Next to availability now also the a​ffordability of housing became a global social-economic problem of immense magnitude.

In consideration of the above mentioned affordability and availability gap, Casa Felice is fully dedicated to design, develop and built affordable homes primarily for financially, socially and physically disadvantaged households. Casa Felice’s prefabricated houses are 50% cheaper then wooden homes and even 70% then masonry constructions. Our homes are superior in quality when compared to traditional masonry and wooden constructions both in functionality, durability, safety, energy efficiency as well as environmental friendliness.
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Key aspect in our mission is the extraordinary low price of our homes, to make them cheap commodities, affordable for almost any household, irrespective of their income, job status, wealth, social class, size of household, etc. Casa Felice has made home ownership herewith independent from speculative real estate and financial markets, from repossession risk of mortgage providers, from volatile labor markets and state fiscal policies, subsidies and grants. In fact the low cost provides the new owners of a Casa Felice home to instantly capitalize on the intrinsic overvalue of the purchased home, which can be assigned as the owners provision for retirement. ​​​
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​​​Casa Felice brings substantial financial relief to homeowners. The exceptional low cost price together with the exceptional energy performance strongly reduces households’ cost of living. With ongoing austerity measures, rising cost of food, healthcare, transport, social security contribution and erosion of income and social security benefits, Casa Felice sees low-cost housing for disadvantaged households as ​​​key economic policy for most governments in order to combat the economic downturn, poverty and social imbalance.​​​ Mass scale construction of affordable homes will resolve the social problems inherent to overpopulation, will adequately address the ever growing demand for residential housing, resolves health problems deriving from living into technical inadequate buildings. Demolition of old neighborhoods and ghettos will be revamped into new green residential zones. The recycling of old building materials, the re-selling of recycled materials, the construction of new affordable homes will generate massive employment and tax income. Home lending will take-off again however this time in a proper fashion. ​​​Affordable homes with excess market value are interesting for banks, as mortgages on Casa Felice homes are valuable due to ultra-low repayment risk and excess collateral value risk.corporate and personal income taxes for the governments and saves massively on social security payments and subsidies.
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An even bigger disaster is looming at the horizon: ecological refugees. Only recently National Geographic released a new documentary about fast rising sea-levels and increase of more powerful natural disasters. The implications are immense. Parts of densely populated areas like Florida, Indonesia, India, Northern Europe will be permanently flooded in coming decades causing governments to evacuate an estimated 300 to 400 million people. Even if we start building with all available capacity today, millions of households will still remain homeless.
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Casa Felice is not just making some donations . No, it’s Casa Felice’s core business to effectuate the human right on proper housing by producing affordable, sustainable, ecological housing on mass scale. Casa Felice has taken the initiative, the lead in implementation, to be the industry role model. We have dedicated 100% of private capital investments and a substantial part of our net profits to our mission.
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​​​​​​Projects of great social importance have our priority, whether it is to construct affordable homes in overpopulated cities, to provide temporary housing or to reconstruct homes in disaster areas or to develop affordable housing for students, senior-citizens, disabled people, refugees, jobless or immigrants. Our focus is on any disadvantaged households whatever what race, nationality sex, status wherever in the world.

We help Humans Exercising their Rights, instead of protecting the ones that don't have any. United Nations Global Compact Principles One and Two call on businesses to develop an awareness of human rights and to work within their sphere of influence to uphold these universal values, on the basis that responsibilities falls to every individual in society. Casa Felice assumes an important role in serving human rights. In fact, our existence is completely based on the principle that “EVERYBODY DESERVES TO HAVE A GREAT HOME”. Likewise specified in the Universal Declaration of the United Nations, section Personal Freedom Casa Felice considers home ownership as a basic fundamental civil and human right, like having access to clean water, power, shelter, security, safety, freedom, justice, privacy, independent of a person’s social status, color, sex, race, religion, nationality, political opinion.
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Unfortunately such statements remain thus far just statements as homeownership is heavily dependent on a person’s income, wealth, employment, health and of policies of financial and property market regulators (including tax authorities, central banks, housing and labor ministry). At present these regulators themselves strongly obstruct most of the population in exercising their rights of homeownership. As a result there are about 500 million people living homeless in the world at any given time, millions of households are living in homes with structural technical defects and hygienic inadequacies and millions lack of sufficient living space. And due to the economic crisis a substantial number of households cannot afford their home or buy one anymore.
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Casa Felice is determined and fully dedicated to work with global institutions like United Nations, with governments and commercial developers to resolving the issues of homelessness, inadequate housing and unaffordability in residential housing. Casa Felice has made human rights its core business by providing producing and building affordable, sustainable, ecological housing on mass scale. Casa Felice has taken the initiative to the lead the implementation, to be the industry role model and be the prophet to educate the world. As evidence of our commitments we have thus far dedicated 100% of our private capital investments and profits to this case.​

We also help Disadvantaged Communities to exercise their Human Rights and enable them to Reintegrate in society, socially and economically. In consideration of the protection of human rights Casa Felice is not only committed to support disadvantaged households, but also complete communities. Our low housing and construction method enables disadvantaged communities to become largely self-supporting And independent of state support, grants and donations.

Casa Felice stands for the human right to have safe, healthy and affordable living environment. The implementation has therefore been directed to awareness building:

* Undertaken comprehensive research and analysis of present and future household income, cost of living;
* Undertaken in depth studies on affordability and availability of residential homes;
* Undertaken studies on social impact of overcrowding, shortage of adequate living space, technical deficiencies in Romania;
* Conducted collaborative development of affordable social house models in cooperation with 400 households.
* Presented findings and results to governmental bodies responsible for Social Housing, major leading construction companies;
* Initiated multiple large scale social housing projects in cooperation with labor unions (est. 1100 units in planning stage)
* Developed various social re-integration proposals for disadvantaged households;

In 2014 we plan to commence with a pilot project for reintegration of orphans reaching the age of 18, the lawful age where they have to leave the orphanage. The project comprises the construction of 20 small houses, funded by a charitable organization. The orphans will become the owners of these houses. The problem however is that the orphans have no job, no income and hardly any education so little chance to get a job. Therefore, they have insufficient income to afford the cost of living. Due to lack of further donations the orphanage could not build homes for all orphans. With nearly the same budget Casa Felice can build almost double the amount of houses then planned with traditional masonry construction. In addition Casa Felice agreed to build a mini mall with 36 small shops and a marketplace for 20 stands. Considering the situation near the highway these shops will have sufficient income to cover the extraordinary low rents and the cost of living of the orphans, including a monthly mortgage loan of 120 euro per month. The start-up of the small businesses like dry-cleaning, shoe store, grocery store, bakery, etc. will be funded by micro-credits. Other orphans will be employed by other business owners in the mall like the pharmacy.

By providing an income to the orphans, the houses can actually be sold to them, allowing the orphanage to leverage the donation again for another project. The orphans are subsequently reintegrated into society with a meaningful career as entrepreneur and independent of social security.

The above project is one example of how Casa Felice has turned community support into a core business and how donations, grants and social security can actually be repeatedly leveraged.​

As stated in our company mission, Casa Felice focuses on implementation of the human right to affordable housing. In this context we initially (as we are in the development stage prior to large scale roll-out) measure our performance in this stage on cost-price, lead time and market acceptance of our prototypes.

* Developed a comprehensive catalogue of 20 affordable turn-key family homes at a cost price of less than 500 euro/m2
* Developed four modular apartment complexes of 49, 34, 27 and 19 apartments per block at a cost price of less than 400 euro/m2
* Build and tested 12 affordable house models in Bucharest, Romania in severe climate grades.
* Reduced the logistics and construction process to less than 10 weeks.
* Achieved 100% compliance with USA and European building codes, energy and environmental regulations and labor laws.
* Achieved market recognition from over 300 households with respect to quality, affordability and design;

Casa Felice's strategy is focused on the creation of meaningful jobs compliant with the labor framework of the ILO Core Conventions. With the end of the artificially inflated, credit and consumption driven, growth-oriented economy, employment has shrunk to dramatic low levels. The registered youth-unemployment in Spain and Greece has reached nearly 40% and even in the USA and Germany unemployment remains at unacceptable high levels. Consider these number represent only the registered unemployment. With most governments still implementing austerity measures and combating recession and depression it needs no explanation that many jobs are at stake. It has become every companies' task to create employment, In the present situation companies should be willing to sacrifice to some extent its shareholder's benefits to create meaningful jobs, of course without endangering the company'continuity. When the corporate and governmental world has the sincere intent to revive economies they have to revive employment especially for the hard hit blue collar labor force. Hence they constitute the majority of the consumer markets.
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Casa Felice's mission is to create employment.We will create Meaningful Employment for a True Sustainable Economy. In each project Casa Felice trains young, unskilled workers in elementary construction and general steel structure installation techniques. For each 1000 houses that Casa Felice built we generate 3000 jobs for one year. For a single country like Romania with an immediate need for 1,7 million homes this means a direct employment potential for 510.000 jobs for 10 years and an unknown number of secondary jobs, i.e. in the supply industry (demolition and recycling of old buildings). Implicitly these newly employed workers can easily afford to buy a Casa Felice homes as well, causing new demand.

Casa Felice, as a single company, will never be able to address the massive demand for affordable housing, nor has the capacity on to build them. We encourage small and big construction companies to built our homes as well. By obtaining a Casa Felice constructor franchise license we educate and train the constructor's staff. We assist the constructor with the first few projects, providing training on the job and quality control. We provide the constructor with access to our knowledge base including drawings, installation instructions, material specifications. And we provide the constructor with the rights to use our brand, our label. We provide all the necessary support for marketing and sales of our homes and even pre-sales assistance for projects and bid-offers. Of course we supply the materials required to build the homes. Besides creating employment Casa Felice aims to rapidly grow the network of constructor franchisees in an attempt to widespread our know-how and capabilities and to increase the annual production of our affordable homes to accommodate the need of the disadvantaged households.

Casa Felice offers the same opportunities to real estate agents, both professionals as well as newcomers, that desire to sell our homes to candidate buyers. Whether it concerns project sales to institutional investors that want to develop a whole project or retail sales to individual buyers. We support our sales franchisees in organizing and participating in exhibitions, with marketing and sales training programs, provide commercial and technical data and images for promotion and advertising. Real estate agents are entitled to work under Casa Felice brand and label. Besides creating employment Casa Felice aims with the sales franchise network to rapidly create awareness about affordable housing among the population.

Casa Felice actively engages with professionals from the industry like architects and engineers. We support this community to widespread our know-how and experience, which contains rather new methods and techniques for them and not commonly available. By sharing this intellectual property these professionals will undertake initiatives to design and engineer more affordable homes. Instead of remaining stuck in old construction principles and waiting for a recovery of the construction sector to take place, we provide them with the opportunity to better address the needs of the market and propose better solutions to developers. Casa Felice invites these professionals to use submit new designs to us which we can incorporate in our catalog of homes. Once Casa Felice sells their creations they will receive a fee for each home built. With this approach Casa Felice will create more paid assignments for these professionals while enlarging the diversity of homes.

Casa Felice will actively approach with developers as well. Many have procured land which is currently devalued and the invested capital is doomed to be locked in for decades. Many have developed plans however mainly based on masonry construction methods, others didn't even proceed yet. Due to the economic crisis and the poor prospects of recovery (read: correction) most of these projects have been frozen. The developers are aware that in the current and future market circumstances these masonry homes are not affordable anymore for most of the households, neither do banks want to finance the construction nor provide mortgage loans on them. These plans however can be rapidly and easily developed or converted into plans based on our prefabricated, steel structure construction methods. This will enable the developer to execute his project, now offering affordable homes to a large market of potential buyers. It will enable the developer to built his project with low risk and with just a fraction of the funding normally required due to the cascaded construction and sales strategy. With this approach Casa Felice will unlock a massive amount of projects currently shelved for decades. Capital currently locked in will be freed up. Many hectares of construction land will become available again for development.

Casa Felice goes as usual one more step ahead of its already ambitious mission. We are establishing a fully regulated global social housing investment fund. We have found numerous private investors with morals and values reaching further then just financial gains. In cooperation with these investors we will manage to start numerous projects, built numerous homes, effectively combating homelessness, inadequate housing and affordability. The fund will invest mainly in construction of low cost apartment complexes and associated (low-cost) facilities like student campus, mini-malls, sports facilities, retirement homes. In this concept the buyers of the apartments have the first right of refusal of the jobs that are created in these facilities or to exploit the facility. A mini-mall with outlets of 50 square meter creates 40 to 50 jobs. And due to the low cost construction, the entrepreneur will be allowed to easily earn a decent margin and maintain his family.
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Our employment mission allows us to create mostly local jobs for local human resources, even the future homeowners, wherever in the world our homes are being built. Our program is therefore favorable to state employment agencies in countries with high unemployment of youth and low-skilled workers, immigrants. We will actively engage with central and local governments and organization like United Nations to promote our strategy and seek close cooperation to create more jobs and affordable homes on a global scale and of substantial volumes.

​We have the Duty to create Jobs for All People, not just create more wealth for just a few. With the collapse of the global economies and implementation of austerity measures it needs no explanation that many jobs have been lost and many more are at stake. It has become every company' responsibility to create employment, not just the government. In the present situation companies should be willing to sacrifice to some extent its shareholder's benefits to create meaningful jobs, of course without endangering the company' continuity. When the corporate and governmental world has the sincere intent to revive economies they have to revive employment especially for the hard hit blue collar labor force.

Casa Felice's consider job creation not just as a moral obligation but as an essential part of our existence in society and market economy. Hence employees constitute the majority of the consumer market that is largely the driver of our economy. Casa Felice has made job creation a core business by committing to five job creation programs. The first one comprises education, training and deployment of low-skilled workers for the assembly and installation of steel structure frames, whereby experienced workers become the trainers of new rookies. The second program, the constructors franchising program allows small and medium size construction companies to develop know-how and experience in building our homes and independently acquire new projects. The sales franchising program will cause to revitalize and grow the global network of real estate brokers and agents, selling affordable housing solutions. The fourth program comprises an awareness program for architects and engineers in an attempt to unlock the massive number of available construction lands and design and convert the existing project plans that have been frozen due to the crisis. Our fifth program comprises the formation of a global social housing investment fund utilized to fund large scale housing projects.
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Casa Felice assumes full responsibility to provide any person equal right to a position in our organization, equal pay for equal work and to just and favorable remuneration ensuring for the worker and the worker's family an existence worthy of human dignity, the right to rest and leisure, reasonable limitations on working hours and periodic holidays with pay. Casa Felice promotes worker’s to exercise the rights to education, and to participate in the cultural life of the community. Our special incentives program ensures career development and the protection of the moral and material interests resulting from any scientific, literary or artistic production. Our quality assurance program safeguards the safety and security of our employees.
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Casa Felice promotes the freedom of association of its workers to form works councils and to join trade unions and commits to constructively engage with such bodies to improve harmonious labor conditions. We honor the rights of our employees to freely elect their representatives and allow for collective bargaining and action to be taken in defense of their economic and social interests. Due to the international character of our operations and our presence in developing and emerging countries we assume responsibility to preserve the confidentiality of the trade unions and leaders in countries where the government does not permit respect for human rights (including rights at work) or does not provide a proper legal and institutional framework for industrial relations and collective bargaining. In such cases we support the establishment and functioning of local/national employers' organizations, and trade unions. Casa Felice will pro-actively inform the local community, media and public authorities of your company's endorsement of the UN Global Compact and its intention to respect its provisions, including those on fundamental workers' rights.
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Casa Felice is committed to uphold the elimination of all forms of forced and compulsory labor, including child labor. Irrespective of national laws and regulations we follow the principles of the United Nations as our guideline for international operations and so these principles will be applied to our workforce suppliers, subcontractors and partners on the job. No employment will be granted or labor will be undertaken without contracts, without proper identification, insurance and permits (if so required) especially in countries where forced labor and child labor is common practice and in particular at large scale projects. Where present and applicable Casa Felice will develop initiatives and participate in special community programs as stated in accordance with the 4th and 5th principle of the United Nations Compact Program.
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Casa Felice is committed to uphold the elimination of discrimination in employment and occupation and prohibit that any recruits or employees will be treated differently or less favorable because of characteristics that are not related to their merit or the inherent requirements of the job such as race, color, sex, religion, political opinion, national extraction, social origin, age, disability, HIV/AIDS status, trade union membership, and sexual orientation. Casa Felice will respect also the relevant laws and introduce measures to promote equality as stated in the 6th principle of the United Nation Compact Program.

* Developed new construction labor performance management and reward policies;
* Installed latest EU health and labor safety regulations on our construction sites;
* Developed various labor re-integration proposals for non-skilled unemployed workers;
* Development of a comprehensive websites to enable construction communities to exchange know-how and build networks;
* Implementation of the designer, constructor and real estate agent franchise;
* Pilot project in New Orleans in cooperation with the Home Builders Association of New Orleans;

* Accomplished supervised construction with mainly non-skilled labor force (re-integration, job creation);
* Achieved high rating on job satisfaction, training of non-skilled staff (pilot project in Romania);
* Participation of designers, constructors and real estate agents in the franchise network (480 members of New Orleans HBA;

Cas Felice provides Affordable and Clean Energy and Utilities to Disadvantaged Households. Environmental care is nowadays a policy on the agenda of every company, because they have to comply with the law, because the absence of it might constitute a threat to their image or reputation or simply because it is a useful tool to look trendy and responsible. On the other hand companies that are seriously pursuing a green approach are often unaware of the real impact of their new green policies. For instance companies report they have switched to alternative energy sources now using solar energy, bio-fueled heating and hybrid cars. They often do not realize that the manufacturing of these technologies sometimes cause more CO2 emission then the panels will ever manage to reduce. And they are often unaware or ignorant to the fact that a substantial part of the rain forests in Indonesia are being destroyed to cultivate massive amounts of palm oil. And most companies are unaware that the materials they have purchased have been produced by companies that severely pollute the environment.

When building our homes, Casa Felice does everything within its capabilities to protect and rebuild the natural environment, the ecosystems and the biodiversity. Our homes are made of 100% durable but recyclable materials. We aim to purchase and use for our projects only recycled materials. Our construction process is zero waste, is clean and practically noiseless and hardly disturbing for the neighborhood. We also consume 95% less water than masonry construction as we don’t use concrete. We apply the latest heat insulation techniques and materials like biological insulation that has the capability to absorb and release heat, better regulating the temperature in homes while reducing consumption of energy. ​Smart engineering ensures optimal flows of fresh air without energy loss. New materials like non-polluting, non-toxic nanotechnology coatings reduces the need for maintenance of outer walls, roof, windows and doors. When combating termites we eliminate the need for pesticides using steel instead of wood.

But Casa Felice goes even one step further. Casa Felice aims to build homes with its own clean power, heating, water, waste and sewage systems. We strive to make homeowners fully independent of fuel and utilities providers, often being companies burdened with outdated, costly, polluting infrastructure and technologies and with doubtful missions to develop dangerous and destructive facilities like nuclear power plants, hydro-electric dams, bio-farms with millions of hectares of agricultural mono-cultures. Utilities companies, due to their high operating expenses ​and ​​​inability to expand their utilities infrastructure to rural and suburban areas, contribute to the global housing problems of availability and affordability that currently exist.

It is​ Casa Felice’s core business to effectuate adequate and affordable utilities. Casa Felice is even determined to make the final step and enable households to produce their own, free energy and manage their own utilities, including provision of drink water and waste recycling (products under development by our Swiss sister company Blue Energy Systems). At present we are testing our new zero emission, zero fuel and zero cost heating and cooling technologies that are based on the elementary physics of extracting energy from the environment using water as the catalysts. ​

Science has already evidenced, nature has unlimited free energy resources, other then the fossil fuels, solar and hydro-electric sources. Science has produced technologies and appliances that enable households to extract free energy from water. Casa Felice has taken the initiative, the lead in implementation, to be the industry role model for utilities independent homes and free energy. Utilizing Blue Energy Systems, Casa Felice will reduce the cost for utilities to virtually zero, a relief for many households already in financial distress.

We Rebuild, Grow and Maintain our Natural Environment, Ecology and Biodiversity. The consensus amongst scientists, politicians and industrialists on climate science is increasingly unequivocal -- global climate change is happening. The implications of climate change for our planet are profound and wide-ranging, with expected impacts on biodiversity, water resources, public health, and agriculture and thus the existence of the human race. While most companies recognize and acknowledge that climate change may have long-term direct and indirect implications for the environment and their business most companies do not go any further then switching to cleaner energy sources, reduce energy consumption and use of recyclable materials. Companies should play a powerful role in maintaining and restoring the natural environment. But the environmental responsibilities of companies should go beyond regulatory compliance only. Casa Felice and its shareholders and employees are determined to find ways through innovation to stop exhausting natural resources, to expand the share of the natural environment and its ecosystems and biodiversity. Because ultimately money is not important anymore if we cannot breed clean air, drink clean water and eat healthy food anymore. We are committed to invest and innovate in new applications that make money and grow our natural environment.
Our ambition doesn’t stop there. Casa Felice is convinced that the nature has far more energy sources then just fossil fuel, biofuels and solar power or geothermal, hydro, wind and nuclear power. The physics of nature still has many secrets and we are determined to unlock them to the benefit of the world. We have discovered that our current and future global energy consumption is so small compared to what is effectively available that it cannot even be measured. That energy is around us at every inch of the globe. It just has to be unlocked. Casa Felice has invested in new technologies that extract this energy from our atmosphere utilizing water as the catalyst (Blue Energy). The device is zero fuel, zero emission, zero cost. We will make it soon available to the market (Blue Energy Solutions)and apply it in any home, to provide every household with clean and free power, heating, cooling, clean water, clean air and to recycle all the waste. It will power even power up our cars. We have thus made it our responsibility to provide homes and households with free energy and make them independent of energy suppliers and utility companies.

It needs no explanation that the impact could be substantial. At present we cannot comprehend the effects of this new energy solutions but hypothetically it can cause:
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* Up to 100% reduction of the household spending on heating and cooling. Currently this accounts for an equivalent of 25% of the disposable income of households with the lowest income. The accumulate savings for a medium size household amount over a period of 25 years from € 25,000,- up to € 75,000,-

* Generation of millions of new blue collar worker jobs for distribution, installation, maintenance (direct employment) and indirect employment like recycling, transport, manufacturing, etc

* Saving tax payers money currently invested by governments in inefficient, polluting and dangerous power plants, natural gas pipeline structures;

* Saving tax payers money currently spent on energy subsidies for still poor performing green technologies like photo voltaic, wind, biomass (green energy);

​In terms of economic contribution Casa Felice could potentially contributions could be massive. The EU is a market of 215 million households, 232 million residential buildings and a countless number of commercial, industrial and institutional buildings with a 10-20 year revolving need for devices for heating/cooling/hot water production. This comprehends (hypothetically:
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* 100% decline in consumption of gasoil, gas and power used for heating of spaces and for production of hot water in residential (apartments, houses) and in commercial, industrial and institutional spaces (offices, shops, hospitals, bank branches, hotels, airports, etc.):

* 100% reduction of CO2 emission normally deriving from gasoil, natural gas, biomass currently consumed by existing systems to heat buildings and produce hot water;

* 100% reduction in consumption of scare natural resources (materials) used for production of highly polluting heating installations like boilers, oil heaters, oil tanks and even new green technologies like wind, hydro, biofuel and solar panels; The CO2 emission of the production plants of these systems is often higher than the savings of these systems itself;

* 100% reduction in consumption of electrical power used by residential, commercial, industrial and institutional spaces (making obsolete all nuclear plants, power and district heating plants normally fuelled by gasoil, coal, biomass and wood pallets);

* 100% reduction of “horizon” pollution caused by biomass, solar, wind and hydro-electric systems;

* 100% preservation and restoration of natural habitats impacted by hydro-electric installations;

* 100% reduction of agricultural mono-cultures growing crops for production of biomass, biofuels (palm-oil);

* 100% recycling of highly polluting heating installations like boilers, oil heaters, oil tanks, solar panels which will be reused for manufacturing of our components;

Earlier in our responsibility statement we have indicated our policy and programs for human rights ,employment and revival of the economy (towards a Blue Economy). We are strongly convinced that the new Blue Energy Solution of Casa Felice will cause a major impact on global society and the economy. Without claiming to be able to predict the future we are strongly convinced that our Blue Energy Solution will cause:

• Estimated 900.000 man years of direct employment (installation service, manufacturing, distribution, sales, recycling conventional installed base) plus associated direct income taxes, social security premiums, pension premiums;

• Estimated 35 billion in VAT revenues for every 10 million households where the system is installed;

• Estimated 150 billion in corporate taxable income per 10 million households where the system is installed;

• Reduction in CO2 allows a country to sell its carbon credits to other countries (tax revenues);

Casa Felice is determined and fully dedicated to work with global institutions like United Nations, Club of Rome and Blue Economy and with governments and commercial developers to resolve the environmental and energy production issues. It is clear that Casa Felice is not just making some plans, donations or defines some personnel policies to reduce energy consumption and recycle our waste. No, Casa Felice has made human rights its core business by producing, distributing and installation of utilities independent homes and appliances that provide free, clean energy on global scale. Casa Felice has taken the initiative to the lead the implementation, to be the industry role model and be the prophet to educate the world. As evidence of our commitments we have thus far dedicated 100% of our private capital investments and profits to this case.

Our Knowledge and Experience are Assets of Society, so we Exchange and Share it. In the past 100 years mankind has invented and implemented more technologies, substances and methods then in the millions of years of its existence before. With science now on the path of discovery of the very physics of nature, the architecture of life and other scientific discoveries, it is of utmost important that such discoveries are used to improve the quality of life of all people on earth. Scientific research however is costly and therefore limited to the relative very few companies and institutions that have sufficient funding. As the providers of such funds expect massive financial gains, the inventions are strictly protected in particular via international patent rights and infringement laws. Other, more spontaneous inventions from private inventors and small businesses often don’t see the daylight due to lack of funding resources or disappear when they constitute a threat to major established businesses.

Casa Felice is determined to share its intellectual properties on a global scale. We believe in strategies like Google, where billions of people enjoy for free a sophisticated internet search engine and email services. Google funds its innovation and operation with other income sources then from its core product and still make substantial revenues, profits and exceptional value for its shareholders. Pharmaceutical companies however artificially inflate prices for medicine, herewith excluding the majority of the population that cannot afford the product unless subsidized by health care programs.

Casa Felice is continuously expanding its global network and engages with universities, professionals like architects, engineers, inventors and producers of materials to widespread our know-how and experience, to share our intellectual property and in exchange to learn from them about new methods, technologies and materials. We believe that such exchange of intellectual property is to the benefit of all parties involved. For instance we invite architects to submit their best designs for our evaluation. If Casa Felice utilizes such design and incorporates it in our catalogue the architect is rewarded a fee/m2 for each house that Casa Felice builds. And if a material supplier provides us better solutions for i.e. the heat insulation Casa Felice instantly informs all construction franchisees to incorporate the new materials in our homes. If inventors have a new proven technology i.e. for water-recycling, Casa Felice will undertake to have it manufactured and incorporated in our housing solutions or launch it as a separate energy solution. With the global exchange of intellectual property we intent to achieve what Google has achieved, widely available solutions, affordable for any household.

We will take the Lead in Transformation of the Construction Industry. In past 100 years humans have invented and implemented more new technologies and methods then in the millions of years of their existence before. Since Henry Ford introduced in the beginning of the previous century the concept of standardization and mass production, most industries have been rationalized, optimized and automated whether its concerns materials like paper, plastic, steel, consumer products like TV’s, cars, PC’s, telephones, medicines or industrial products like ships, trains, airplanes, etc.
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It appears to us that the construction industry has been completely left out. Although the production of construction materials has evolved, we are still building houses like the Egyptians did in their time, brick by brick, tile by tile. And even worse, we added some ridiculous methods to it. Take for instance the installation of water and electricity pipes. After the floor screeds have been poured and the inner wall has been erected we drill canals in it, install the pipes and fill the empty spaces up with cement. Didn’t we have detailed construction plans from the start indicating the position of those pipes?
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Nowadays we use instead of clay concrete as the core building material, but it introduced many disadvantages. In order to give it the strength we reinforced the concrete with steel. Why not use steel from the very beginning?. Concrete needs forms and work to shape it and requires a long time to dry, Steel doesn't. With steel the same structure as with reinforced concrete can be build in just a fraction of the time and with substantial less labor then concrete ones. Concrete requires a lot of water', steel doesn't. Concrete structures are difficult to demolish and concrete is not recyclable, steel is easy to dismantle and steel is fully recyclable. Steel is stronger and safer than reinforced concrete as proven in many earthquakes, fires. Steel is healthier. Concrete absorbs water and causes mold and fungus ​ to develop, which is proven to cause respiratory disorders.​

Another example of inefficiency is the design. While most industries have managed to make standard and modular designs of products and components and flexible options to achieve variety in outlook and presentation of products, the construction industry still designs, engineers and build each and every house as a unique product. Imagine each individual would need to commission a designer to designs his own car? Imagine we would ask Volkswagen to engineer and produce it for us? It needs no further explanation why construction is excessively inefficient, therefore excessively costly and therefore so expensive that most of the population cannot buy one or even afford one anymore.
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Although contested by the majority of traditional constructors rationalization is to their advantagel. ​Casa Felice enables developers and constructors to offer a better and cheaper alternative to masonry homes. Although the profit margin of the project might be strongly reduced, the constructor completes the job approx. 5 to 7 times faster. With his resources continuously fully assigned the constructor ultimately makes in the same time frame of a traditional masonry project a better absolute margin. Constructors however fear to fall jobless, but offering 50% cheaper, better quality houses affordable by practically any household will in fact cause a massive enlargement of the market that at present cannot be accommodated, not even in 100 years by all existing construction companies together.
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Rationalization would be beneficiary to developers as well, both private as well as institutional and state developers. The rapid and low cost building process enables developers to build a complete project with just a fraction of the normally required funding and with almost zero risk. Whereas a traditional masonry construction project of approx. 100 units normally requires 10 to 12 months, all 100 dwellings have to be simultaneously constructed. This requires major capital investments until finally sales can commence​. ​​With a lead time of just six weeks Casa Felice allows for cascaded development and sales. A project could start with the construction of just two houses. After six weeks the houses are delivered and paid for. Assuming a 100% profit margin, the next four are funded with the sales revenues of the two previous ones. In a matter of 10 to 12 months Casa Felice can build thus the same one hundred units with a capital investment equal to a cost of just two units. Or, from return-on-investment point of view, Casa Felice can build all one hundred units simultaneously in six weeks, ensuring the investor a 5 to 7 times faster return on his investment. When construction is funded by a bank credit, the developer will save almost 80% of the interest expenses. Or, from a budget point of view, a developer can build with the same capital budget in the same time frame 5 to 7 times more houses with Casa Felice then with masonry construction. Casa Felice enables developers also to build with almost zero risk. Hence, when cascaded construction and sales takes place, the developer can stop building the next tranche of homes instantly and anytime when sales stagnates.​ Casa Felice also enables governmental bodies to dramatically improve the effectiveness of social housing projects. Our approach allows governments to develop social housing projects on a mass scale while re-using the same budget (funds or subsidies) over and over again.​ Casa Felice can work with your already existing project plans. All we need to do is to adapt your plans to our technology. We can guarantee you that we will substantially increase the return on investment of it, and strongly reduce the required capital investment (or bank financing) of it with 75%-90%. In terms of Return on Investment or Return on Capital Deployed (calculated over an identical time span of one year period) a Casa Felice project outperforms any traditional construction project, with several 100%.​

It needs no evidence that despite the ever growing demand, the construction industry has suffered dramatically due to the correction of the economy but it is expected that the sector will shrink to less than a quarter of its original size and value if it doesn't manage to transform itself into a mass-scale, low-cost industry that is able to produce affordable homes. Casa Felice is a thought leader and pioneer with the ambition to turnaround the construction and real estate sector into a modern, streamlined industry causing homes to be better and foremost cheaper. Likewise Henry Ford did in the beginning of the previous century with the automobile, Casa Felice is making ongoing efforts to a design standard and modular housing product and to rationalize the construction process. At present we have automated and standardized just 50% of the construction process, leaving opportunities for further cost reductions, estimated at 30% of the current cost price. Further improvements are being implemented like sourcing of new, better, cheaper, greener materials, optimization of the logistics from factory to site as well as on-site assembly, better modular design and simplified installation of complete compartments like kitchens, bathrooms, toilets.

* Various Blue Energy Systems have been developed, tested and being certified.
* At present we are preparing for mass scale production and marketing and distribution across the globe.
* Partnerships are being established with global distribution leaders
* Casa Felice pilot projects with Blue Energy Systems are being scheduled in New Orleans (USA)

* Comparison of Blue Energy Energy Ratings with those of the major green technologies;
* Effective energy savings on household level per category of residential dwelling;

We comply with the Law, strive to avoid Violation and Resolve Disputes professionally. Casa Felice will, on a best efforts basis, endeavor to fully comply with law and regulations of each country, under the condition this country recognizes and respects the international laws, treaties, resolutions and other regulations as imposed by global institutions like United Nations and its specialized organizations like WTO, WCO, IMF, regional organizations like NATO, EU, OAS, AU, ASEAN and subject that such laws and regulations represent international best practices.

Casa Felice will endeavor to comply with the latest International Financial Reporting Standards to provide timely fair, true and transparent disclosure of the companies’ true state of business affairs to the company’s stakeholders, regulators and other supervisory bodies including statutory reporting. Casa Felice takes also responsibility to report and disclose information about any suspicious business undertakings that we encounter with respect to tax evasion, money-laundering, social security fraud and corruption.

Casa Felice has underwritten to the Tenth Principle of the United Nations to combat corruption. Corruption is now recognized to be one of the world's greatest challenges. The World Bank has stated that "bribery has become a $1 trillion industry." It is a major hindrance to sustainable development, with a disproportionate impact on poor communities and is corrosive on the very fabric of society. The impact on the private sector is also considerable - it impedes economic growth, distorts competition and represents serious legal and reputational risks. Corruption is also very costly for business, with the extra financial burden estimated to add 10% or more to the costs of doing business in many parts of the world.

The rapid development of rules of corporate governance around the world is also prompting Casa Felice to focus on anti-corruption measures as part of our mechanisms to protect our reputation and the interests of their shareholders. Our internal controls are increasingly being extended to a range of ethics and integrity issues. Our stakeholders are looking to these controls as evidence that our company undertakes good business practice and is well managed.

The policy with regard to the salaries of the members of the Executive Committee and Management Committee is laid determined by our Shareholders. The policy is aimed at awarding the members with an attractive basic remuneration and benefit package so that qualified and professional directors can be recruited and retained by Casa Felice. However we do not follow market conformity. It is our believe that the incentives of our Executives and Managers should go beyond financial compensation. The rewards should therefore be partly based on their performance with respect to social contributions.
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The fixed remuneration of the Executives, including the President and Chairman of the Executive Committee is set at SFR 100,000,- per annum. The variable remuneration is related to social responsibility and corporate performance (weighted at 50% each) and is maximized at 100% of the fixed based remuneration. In addition the Executives receive a standard benefits package including a budget for health insurance, pension, education, personal care and representation, transport, living and other benefits laid down by the applicable labor laws of the Executive's country of residence.

​The fixed remuneration of the Management, including the CEO of the Management Committee is set at SFR 80,000,- per annum. The variable remuneration is related to social responsibility and corporate performance (weighted at 50% each) and is maximized at 50% of the fixed based remuneration. In addition the Management receive a standard benefits package including a budget for health insurance, pension, education, personal care and representation, transport, living and other benefits laid down by the applicable labor laws of the Executive's country of residence.

The Shareholder Committee has implemented a standard policy for annual dividend payout. In principle Casa Felice's assigns 50% of its annual net profit to innovation and business development. An additional 25% is assigned to strengthen the company's financial position, for risk provisions and investment in capital and interest guaranteed securities. Such securities have caused returns in excess of 10% per year thus far. From the remaining 25% approx. half is assigned to social responsibility projects. The remainder is available for dividend payouts to shareholders, however thus far in the existence of Casa Felice none of the shareholders has exercised its dividend rights.

Casa Felice has developed a comprehensive set of Corporate Governance Guidelines. The Board of Directors intends to have these guidelines and other aspects of Corporate Governance reviewed from time to time by accredited consultants and shall make such changes as it deems necessary in its discretion and to the extend required under any applicable law. Casa Felice has integrated these guidelines in its Articles of Association-Incorporation as well as the Code of Business Conduct and Ethics. The business undertakings of the Company are under the direction and the oversight of the Board, which has been elected by shareholders. The oversight framework comprehends:

• Defining the directors qualifications, responsibilities, the Board structure and operating protocols, the communication protocol to stakeholders;
• Selecting and recommending director nominees for election by shareholders;
• Selecting, developing and evaluating potential candidates for executive officer positions, including the chief executive officer, and overseeing the development of executive officer succession plans;
• Determining the compensation of the chief executive officer, approving the compensation of the executive officers, and approving and monitoring any incentive-compensation plans and equity-based plans;
• Reviewing, approving and monitoring the long-term strategic objectives and business plans of management;
• Reviewing and approving major corporate transactions including significant capital allocations and expenditures;
• Assessing the major risks facing the company and the steps taken by management to monitor and control such risks;
• Overseeing the integrity of the company’s financial statements, the company’s compliance with legal and regulatory requirements, the performance, qualifications and independence of the company’s external auditor, and the performance of the company’s internal audit function
• Assessing the adequacy of the Company’s Code of Business Conduct and Ethics to promote compliance with applicable laws and regulations
• Evaluating the overall performance and effectiveness of the Board and deciding on matters of corporate governance
* Casa Felice reports its achievements to the United Nations via its Communicaton On Progress (COP) protocol.
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Casa Felice undertakes responsibility for full compliance with the international and local rules and regulations regarding building construction. We have implemented an oversight committee to safeguard our investments, expenditure, our works and deliverables as well as any and all liabilities that might arise from our involvement in projects. We actively monitor compliance with the Building Codes (or Acts) and Building Controls and any and all associated rules and regulations, in particular those of environment, labor, trade, health and those of police (traffic), fire department, etc. In addition the oversight committee verifies (with second opinion of accredited verifiers) any and all technical designs. On most projects, especially those that involve a large budget, we appoint accredited, independent project management organizations utilizing Agile, PRINCE2 or Six Sigma methodologies. The committee also monitors use of materials, ensuring such materials carry Certificate of Conformity and have been accreditations of recognized testing institutes like INTERTEK, TUV, TNO and are sources from accredited suppliers. The committee also verifies if the company is insured properly for liabilities and warranties. At present we are in the process of implementing ISO 9001 and ISO 14001.

* External Audit Reports by recognized auditors
* Second opinions from specialized lawyers and compliance officers
* Report of Independent Internal Audit and Governance Committee reporting to Shareholders
* Legal disputes arising from operations