EXEL Industries // 2020 Universal registration document

Statement of Non-Financial Performance 4 Our non- fi nancial risks

Our non- fi nancial risks

4.3

The team works by means of individual assessments by each participant that are shared iteratively among the Group. This work resulted in a map of all the risks faced by the Group. The map has been prepared by taking account of a risk matrix measuring severity and likelihood as well as the assessments carried out by every EXEL Industries group entity in their threats and opportunities exercise. This risk analysis is presented to EXEL Industries group’s Audit Committee. The risk map includes the non- fi nancial risks discussed below.

EXEL Industries reviewed the risks that could potentially have a material adverse e ff ect on its business, fi nancial position or results (or its ability to meet its targets). Every year, EXEL Industries companies undertake an in-house analysis of threats and opportunities at the time of their budget presentations to the EXEL Industries Executive Management. AGroup-level project team overseen by the EXEL Industries CEO has been formed. Its members include the strategic leaders of the Group’s four businesses alongwith other members of the senior management team and the directors of EXEL Industries sta ff departments.

Employment and society

4.3.1

for our Group and its companies. In particular, the safety of our employees at work is held to the highest level by the Group’s Executive Management. Monitoring of new hires and temporary workers is considered important;  attractiveness : our companies, all in the manufacturing sector and of intermediate size, face the major challenge of making candidates want to come and work for us. Developing apprenticeships, close relationships with schools, ties to associations, and seeking out people with di ff erent, varied and unusual backgrounds are responses to that risk;  maintenance and development of skills : multiple, varied e ff orts must be made to help employees after they have joined our companies. In-house and outsourced training, throughout one’s career, is one of the Group’s considered responses. strict regulations and, in some cases, are destined to disappear (glyphosate in particular), but will have to be replaced by alternative products. The challenge of agriculture is to feed the planet’s increasing population while respecting the environment. To help achieve this dual target, EXEL Industries’ research and innovations are increasingly directed towards greater precision in sprayers to enable doses of chemical or natural origin products to be reduced by 30- 50%whilst increasing yields. Research and innovation combinedwith visual recognition, drone and GPS mapping technologies and the use of data are the ways forward for a productive and environmentally- friendly agriculture. Our Consumer business, in its spraying aspect, is also a ff ected by issues of this type. Industrial Spraying is constantly striving for greater e ff ectiveness in its innovations and for improved transfer e ffi ciency (the fraction of paint actually applied to the target).

4.3.2 The environment The risks identi fi ed in this area involve several elements: In an environment where human resources are becoming scarce and there is hyper-competition among workplaces and some of the Group’s business activities are being questioned by politicians and the media, Human Capital represents a key resource for EXEL Industries group. Accordingly, the Group strives to attract tomorrow’s talents to assist in its development, to allow its current employees to have a work environment well suited to the e ff ectiveness of its organizations and teams through training programs, to feel at home and respected in that environment, and to give jobs to as many as possible, never losing sight of diversity in all its aspects. In particular, the main risks identi fi ed are:  workplace health and safety : wellbeing at work, and control of absenteeism andworkplace accidents constitute major challenges The main environmental areas where our activities run risks are identi fi ed as:  ground and air pollution By 2050, the world population will reach almost 10 billion inhabitants. In order to feed this larger population, agricultural production will have to increase significantly. EXEL Industries is a company committed to helping farmers combats the three major scourges in agriculture: plant diseases (viruses and fungi), attacking insects and invasive weeds. Since its businesses involve spraying, EXEL Industries has for many years dealt with the risks related to restrictions on using phytosanitary products. The products applied by our agricultural sprayers are phytosanitary products with a synthetic or natural origin. They notably include herbicides, insecticides and fungicides intended to combat such diseases. These increasingly controversial products are subject to

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