February 9, 2021

To Our Stakeholders:

I am pleased to confirm that Cubic reaffirms its support of the Ten Principles of the United Nations Global Compact (UNGC) in the areas of Human Rights, Labor, 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 sharing this information with our stakeholders using our primary channels of communication including Cubic’s ESG pages on the Cubic website.

Details of our fiscal year 2020 Environmental, Social & Governance strategy, commitments and accomplishments are published in our inaugural Corporate Responsibility Report and further reflect our support of the UNGC’s Ten Principles.

Sincerely yours,

Bradley H. Feldmann

In early 2020, Cubic published its Human Rights Policy in full alignment and consistent with the UN Guiding Operational Principles on Business and Human Rights regarding the Corporate Responsibility to Respect Human Rights and the United Nations Global Compact (UNGC) Declaration on Human Rights Guidance for Businesses. Furthermore, our policy commits to ensure workers are provided safe, suitable and sanitary work facilities, and to protect workers from workplace harassment, including physical, verbal, sexual or psychological harassment, abuse or threats.

In FY20 we published our Ethics and Compliance Hotline reporting process as well as disclosing a summary report of Ethics & Compliance Hotline statistics from 2015 to 2019. This report can be found in the Ethics and Compliance section of the ESG website at www.cubic/com/ESG.

1. Published Cubic's Hotline Utilization Report which can be found in this link: https://www.cubic.com/sites/default/files/Cubic%20Helpline%20Utilization%20Report%2C%20Oct%202019.pdf.

This report is published in our ESG website at www.cubic.com/ESG, Ethics and Compliance Section.

Cubic published its Human Rights Policy, Modern Slavery Statement, and Living Wage Statement to ensure that the company does not participate in any form of forced or bonded labor, comply with living wage standards, and ensure that employment-related decisions are based on relevant and objective criteria. Furthermore, we ensured appropriate procedures were in place to address the COVID-19 pandemic impact in order to protect the safety and health of our employees globally while providing support our customers and communities.

We have published policies and procedures on how to properly report grievance via a 24-hour hotline as well formalized a global health and safety management system in alignment with ISO45001. We further publish the consultation/employee engagement process that is completed on a quarterly basis and we have published the results of these engagements. In October 2020, we published our “Living Wage” statement, which reflects a commitment to ensuring an adequate standard of living for employees and paying fair wages that meet or exceed the amount for basic living needs, while complying with applicable laws. Cubic is taking a leading position within our peer group to disclose and commit to paying a living wage to all of our people by fiscal year 2025. In 2020, we completed a global Living Wage assessment in 14 countries where we operate to identify any regions where our pay may have been below the Living Wage. Where gaps were identified, we made necessary adjustments and are committed to the annual review of our global wages to ensure the Living Wage levels are met by fiscal year 2025.

1. Board Female representation increased to 44.6% (4 out 9 Board Members were female).
2. Published our first demographic table including number of female employees, number of female managers and number of female board members. Cubic’s ESG performance table can be found here: https://www.cubic.com/sites/default/files/Performance%20Summary%20Report%20FY20%20Final%20ESG%20Report%20Final.pdf
3. Reduced Cubic’s total recordable incident rate by 10%.
4. Published our consultation/employee engagement scores.
5. Published a Living Wage Statement in our ESG Website.

During 2020, Cubic began quantifying its global CO2 emissions (Scope 2) footprint and setting a goal to reduce CO2 intensity by 45% by end of FY2025. In our manufacturing operations, we continued the work to ensure minimal use of hazardous chemicals and maintained the small quantify waste generator designation. This confirms our commitment to minimize the use of hazardous chemicals to protect the environment, and the safety and heath of our employees and the communities where we operate

In 2020 we implemented our internal HSE Management System to ensure consistency of application and protection of the environment. This internal system is aligned with ISO14001 and several of our locations in UK, Australia, and New Zealand have achieved this certification. Furthermore, we have made commitment to make improvements in reducing our CO2 global footprint.

1. Reduced CO2 (Scope 2) emissions by 17% in FY20.
2. Set a 45% reduction target by FY25

Our dedication to ethics and compliance integrity is strengthened by a comprehensive suite of governance policies. These include policies on global trade practices, government requirements, stock trading, anti-corruption, anti-trust and fair competition compliance – topics that complement Cubic’s Code of Conduct and ensure that business is being conducted with integrity and transparency. Employees are required to complete annual Code of Conduct training upon onboarding and at the anniversary of their hire date and suppliers must adhere and comply with Cubic’s Third Party Code of Conduct that set similar compliance requirements with the policies noted above.

We improved upon the delivery of our ethics and compliance training including mandatory training on company policies including, security, safety, anti-corruption, global trade practices, privacy and data security, anti trust and fair competition.

1. Achieved 99.8% completion rate in Cubic’s Ethic & Compliance training.
2. Launched Cubic’s ESG website that can be found here: www.cubic.com/ESG
3. Published our inaugural FY20 Corporate Responsibility Report.
4. Publish our Ethics and Compliance Utilization Report..