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Aktieselskabet Schouw & Co. Corporate responsibility report for the 2018 financial year as required under sections 99 a and 99 b of the Danish Financial Statements Act. Schouw & Co. has prepared a joint report on corporate responsibility and the gender composition of management for the 2018 financial year, as required under sections 99 a and 99 b of the Danish Financial Statements Act. The company’s website (www.schouw.dk/en/cg2018/) provides additional information on the individual subsidiaries (such information being provided purely as a supplement to this report) and the report on corporate governance provided in pursuance of section 107 b of the Danish Financial Statements Act.

Corporate responsibility (section 99 a) The report on corporate responsibility includes, in pursuance of section 99 a of the Danish Financial Statements Act, a description of Schouw & Co.’s business model in relation to corporate responsibility, corporate responsibility policies and risk assessments, a strategy for the work on corporate responsibility and a description of actions taken and results achieved.

Presentation of Schouw & Co.’s business model Schouw & Co. is a diversified industrial conglomerate with an operational structure consisting of the parent company Schouw & Co. and a number of wholly-owned portfolio companies each structured as focused sub-groups with their own subsidiaries. Each individual portfolio company has a high degree of operational autonomy as well as its own organisation and management in charge of its operations. Subsidiaries of the portfolio companies operate activities that are identical to or closely related to the general activities of the portfolio company. More than half of the Group’s operations are located in Europe. However, the Group also has considerable business operations in non-European countries, but the production facilities there are generally comparable to the European units. Most of the consolidated revenue is generated from automated or advanced production processes, in which sourced raw materials are made into products resold to customers that manufacture the end products. The remaining revenue derives from mainly technical trading and processing operations, in which sourced components are handled and/or processed before being resold to OEM customers. The Group’s operations are generally performed to internationally recognised standards. The Group sources a limited number of different raw materials that mainly include marine and vegetable raw materials and oil-based products generally supplied in large quantities from internationally recognised suppliers. However, the Group purchases a very large number of different components from many suppliers worldwide. It is a general characteristic of these products that they are manufactured by recognised technical manufacturers that meet high quality standards. Disclaimer: This publication is a translation of the equivalent Danish document. The original Danish text shall be controlling for all purposes, and in cases of discrepancy, the Danish wording shall be applicable.

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The Group sells its products to professional customers that use its products or incorporate them in end products. Most of its process production is sold to a limited number of customers that are large-volume buyers. The Group does not sell directly to consumers and only sells to public sector customers to a limited extent. These characteristics of the Group’s business model mean that certain CR-related matters are of special importance. This applies in particular to matters related to our employees, our use of resources – i.e. energy and commodities – and our business ethics.

Corporate responsibility policies and risk assessments Schouw & Co.’s corporate responsibility policies have been in place since 2016. They involve the fields of human rights, social issues and labour conditions, anti-corruption and business ethics together with climate and the environment. The Group’s CR policy forms the framework of the approach which our employees take in respect of our values and our objective of ensuring sustainable and responsible conduct. The policy describes a number of guidelines and the expectations we have to each other, and it summarises how we should conduct ourselves in our respective roles as employees and as an employer. The policy is based on the Ten Principles of the UN Global Compact. Further to adopting the corporate responsibility policies, Schouw & Co. has performed a collective risk assessment of these corporate responsibility areas. The Group expanded its business operations in 2018, but did so within existing areas of activity, so the general risk exposure is unchanged. The principal risks are described below in the context of the policy applying to each individual CR area. Human rights Schouw & Co. operates in a number of different countries worldwide. Regardless of which country we operate in, we endeavour to observe human rights and to treat our employees with dignity and respect. We support and respect the protection of internationally proclaimed human rights as set out in the UN Universal Declaration of Human Rights and in the declarations and recommendations of the ILO. Schouw & Co. has performed a general risk assessment in relation to human rights. The Group has operations in many different countries, including some that may be defined as high-risk countries. The production units of our subsidiaries generally operate on a very similar basis, and we strive to uphold the same high standards at all production units, regardless of geographical affiliation. The latter is believed to contribute to reducing the risk of adverse human rights impacts. Social issues and labour conditions At Schouw & Co., we believe that results are created by people. We aim to be a responsible employer and to provide proper employment conditions, healthy and safe working conditions and a motivational working environment for our employees. Schouw & Co. has performed a general risk assessment in relation to social issues and labour conditions. At Schouw & Co., we believe our employees constitute our most important resource. As a result, we consider CR risks relating to social issues and labour conditions to be of material importance. The large proportion of automated production and the handling of many different technical products make heavy demands on our employees’ qualifications and skills. In Europe as well as in all of our other countries of operation, we generally employ skilled labour and well-trained employees who acquire the necessary skills by undergoing teaching and training, thereby enabling our portfolio companies to comply with their quality and safety standards. This contributes to ensuring and maintaining a high level of health and safety, and constant efforts are made to minimise risks in this field.

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Anti-corruption and business ethics Over the years, Schouw & Co. has built a reputation of a company maintaining a high degree of integrity and ethical conduct. We combat all forms of corruption, including bribery and facilitation payments. Schouw & Co. has performed a general risk assessment in relation to corruption and business ethics. Schouw & Co.’s vision is to be among the best to create value in a proper and reliable manner by committing ourselves and our businesses to taking responsibility and acting sustainably in all the countries we operate in. This vision is firmly anchored in the way we run our business, and it has contributed to building the Group’s strong reputation over the past many years. Based on the Group’s general business model and its long-standing tradition for responsible business operations, this area is not assessed to constitute a significant CR risk, with the exception of the inherent risk that not all employees – and especially not new employees – may be aware of the Group’s policy. Hence, appropriate provision of information is required to ensure that Schouw & Co.’s high standards are maintained. Climate and the environment Schouw & Co.’s portfolio companies are to a wide extent involved in large-scale processing of commodities, and we recognise the environmental impact of our production processes. Our CR policy on climate and the environment goes hand in hand with good business acumen. We work to protect the environment and to reduce our emissions continuously relative to our production output. Schouw & Co. has performed a general risk assessment in relation to climate and the environment. Due to the extensive use of oil-based products and marine raw materials and the considerable consumption of energy for processing purposes, this area is considered to make up a significant CR risk for the majority of the Group’s businesses. It is inherent to and an integral part of the Group’s business model that we seek to optimise consumption of raw materials and minimise the volume of waste in an effort to reduce the overall volume of energy consumed, reducing the impact on climate and the environment and lowering the relative volume of emissions. Going forward, our individual companies will maintain their focus on improving their performance in terms of climate and the environment.

Strategy for our CR efforts Further to adopting the corporate responsibility policies in 2016, Schouw & Co. has set up a ‘CR strategy house’ that provides the basis for the Group’s long-term CR efforts going forward to 2020. Presentation of our CR House The foundation of the CR House consists of the Group’s CR policy along with established reporting, accounting policies and management systems. In addition, two CR areas – human rights and anti-corruption and business ethics – are considered absolutely fundamental to all the Group’s businesses. The columns of the CR House comprise the CR areas social issues and labour conditions as well as climate and the environment. These are areas where our portfolio companies are given considerable autonomy in determining what is the most relevant for their particular business. However, they are expected to ensure that all their efforts are consistent with the Group’s overall objectives to reduce the relative consumption of energy and water, reduce volumes of waste and increase recycling, and ensure their employees have good working conditions and a motivational working environment. Our vision at Schouw & Co. is to be among the best to create value in a proper and credible manner by committing ourselves and our businesses to taking responsibility and acting sustainably while also

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creating a motivational working environment. This general vision for responsibility makes up the roof of the CR House.

Collaboration across the Group The structure of the CR House and the strategy for working with corporate responsibility imply that the Group’s portfolio companies are largely free to direct their CR efforts towards the areas that they consider most relevant at any given time, and they establish their own success criteria. However, as a number of areas are relevant to all the Group’s companies, an inter-group collaboration initiative provides a relevant basis for the companies’ individual efforts. These joint efforts are often structured as group-wide workshops, providing inspiration and experience-sharing arranged to complement separate programmes at the individual companies. The programmes were facilitated by external consultants who are well-informed about the Group’s business areas. The first steps towards inter-group collaboration were taken in 2016 through the preparation of the Group’s CR Policy and a subsequent risk assessment, the establishment of the CR House and the definition of accounting policies for CR-related issues. Obviously, this is a platform that will gradually evolve in step with the preparation of a future strategy for the period beyond 2020. In 2017, Schouw & Co. worked specifically with the CR areas of human rights and anti-corruption and business ethics across the portfolio companies. The efforts were coordinated through a number of workshops facilitated by external consultants. During that process, our individual companies identified and described in detail the potentially negative impacts that they may have on human rights, both in relation to our own employees, but also in their relationships with suppliers, customers and the surrounding community. The companies considered how they could monitor these potentially negative impacts and what could be done to mitigate risk in the most risky areas. The efforts led to the identification of a number of areas in which procedures and other factors could be stated more clearly or improved, but no areas were identified that required the immediate implementation of material changes. In addition, at the end of 2017, the Group companies had jointly developed an e-learning programme which focused on anti-corruption and business ethics and consisted of a shared platform customised to

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each individual company. The e-learning programme consists of a company-specific video with a welcome from the company’s CEO, a general presentation of the Group’s CR policy, a number of practical dilemmas and lastly a ten question quiz. In 2018, Schouw & Co. worked specifically with responsible supplier management together with anti-corruption and business ethics across the portfolio companies, using the general risk assessment as the starting point of the process. These efforts are described in further detail in the section below on actions takes and results achieved. The individual portfolio businesses will continue their efforts in all CR-related areas in 2019, and Schouw & Co. also intends to work across the Group on ways to improve the consolidated reporting on corporate responsibility, including whether to refocus the reporting on ESG (Environment, Social & Governance) issues.

Review of actions taken and results achieved in 2018 Schouw & Co.’s inter-group projects in 2018 dealt specifically with responsible supplier management, human rights and anti-corruption and business ethics. The work on responsible supplier management was based on two group-wide workshops facilitated by external consultants and supplemented by individual programmes at the individual companies which were also facilitated by external consultants. The introductory workshop dealt with issues such as challenges and opportunities in relation to responsible supplier management, identification of risks in the supplier chain, assessment of experience, processes for responsible supplier management as well as important tools, such as code of conduct, self-assessment questionnaires, corrective action plans and audits. Designed to meet each company’s needs, the individual programmes dealt with issues such as development of tools, quality assurance of processes and benchmark analysis. The process concluded with an experience-sharing workshop which was held in January 2019 for all portfolio companies and also dealt with supply chain audits. The anti-corruption and business ethics e-learning programme was rolled out to relevant employees in most portfolio companies in 2018. At BioMar, HydraSpecma and Borg Automotive, more than 90% of the relevant employees have now completed the programme, while at GPV the rate is 77%. The two Fibertex companies updated codes of conduct for their employees in 2018, and plan to implement the updated codes in 2019. Individually, the Group’s businesses launched a number of initiatives in 2018 in both the above-mentioned and other CR areas, their main focus being on areas believed to pose a particular CR risk or considered to have a business perspective. A review of actions taken and results achieved in each company is provided below. Our website provides additional information from the individual portfolio businesses as a supplement to the statutory report. Go to: www.schouw.dk/en/cg2018. BioMar Human rights: BioMar participated in the initiative to strengthen responsible supplier management in 2018 and followed up on the observations made on the work on human rights in 2017. Ensuring positive developments in employee engagement is a major priority, and in 2018, the company commissioned external assistance to conduct surveys at all production units except the recently established joint venture in China. Overall, the surveys produced satisfactory results compared to other international companies as well as a general improvement on a similar survey conducted in 2016.

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Social issues and labour conditions: BioMar has ambitious targets for improving health and safety at work by reducing risk factors and promoting the development of a sound safety culture. The lost-time injury rate continued to fall in 2018, even though it now also includes operations in China, Turkey and Ecuador. On the other hand, the severity rate increased slightly due to a small number of medium-term absences (10–30 days). Anti-corruption and business ethics: In step with expanding its business operations, BioMar continues to promote integrity and responsibility at all levels of its organisation by training all employees in its code of conduct ‘The Right Way’, which provides an extensive introduction to BioMar’s ethical guidelines. ‘The Right Way’ emphasises BioMar’s commitment to international human rights, health and safety, the environment, fair competition and anti-corruption. In addition, BioMar launched its e-learning programme on anti-corruption and business ethics, which is mandatory for all managers and commercial employees. A total of 93% of the relevant employees had completed the programme by the end of 2018. Climate and the environment: BioMar has set targets in relation to the UN Sustainable Development Goals for areas such as efficient use of freshwater, reuse of waste and CO2 emissions. Despite a number of initiatives, the company has not yet achieved its original CO2 emissions target, in part due to business expansion in China and Turkey, whose emissions from power production are higher than BioMar’s traditional production bases in Europe and South America. BioMar maintains its focus on energy efficiency, and in 2018 the company reduced its overall energy consumption per tonne of feed produced by 4%. BioMar has set a target for 100% reuse of packaging materials. From its 2016 base rate of 99.6%, BioMar improved the rate to 99.9% in 2018 and is thus very close to having completely eliminated waste from packaging materials. In its 2018 Sustainability Report to be released later this year, BioMar will provide further details on its efforts in this field and its final results.

Fibertex Personal Care Human rights: Fibertex Personal Care participated in the initiative to strengthen responsible supplier management in 2018 and followed up on the observations made on the work on human rights in 2017. Updating its code of conduct in 2018, the company prepared a brochure ‘Code of Conduct – in Practice’ which summarises the salient points of the policies of which all employees should be particularly aware. The updated code of conduct will be distributed to all employees and to FPC’s stakeholders. The company will also implement a ‘Report a Concern’ function, giving employees and other stakeholders access to reporting activities that do not harmonise with the company’s code of conduct. Social issues and labour conditions: Maintaining a strong health and safety environment is a priority for Fibertex Personal Care. Ensuring that all safeguards are in place and that employees are thoroughly trained in operating the machinery is highly prioritised. In order to further reduce the number of work-related accidents, the company focused on communicating and on promoting a sound safety culture. Fibertex Personal Care has set a 2020 target of reducing the lost-time injury rate by 20% relative to 2016. This target has already been achieved, and the challenge for the company now is to maintain the

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level achieved while it is expanding its operations, most recently by way of a new factory in the USA which is scheduled to begin operations in the spring of 2019. Good management is an important factor in that context, and over a number of years, Fibertex Personal Care has made consistent efforts to ensure that a large proportion of its managers have received management training. Anti-corruption and business ethics: Fibertex Personal Care endeavours to operate a transparent business and to maintain a high degree of integrity and ethical conduct. The company did not implement Schouw & Co.’s e-learning programme on anti-corruption and business ethics, but chose instead concentrate on developing the above-mentioned ‘Code of Conduct – in Practice’, which will be implemented in 2019 at the same time as the ‘Report a Concern’ function, giving employees and other stakeholders access to reporting activities that do not harmonise with the company’s code of conduct. Climate and the environment: Fibertex Personal Care endeavours to reduce its consumption of resources and the environmental impact of its products and processes if technically and financially feasible. The company has implemented environment management systems certified to ISO 14001 in Denmark, Malaysia and Germany. Over the past many years, all Fibertex Personal Care sites have paid close attention to their energy consumption, and the factory sites in Denmark and Germany are certified to the ISO50001 Energy Management standard. The Danish factory has completed a three-year energy-efficiency agreement (2015-18) with the Danish Energy Agency that commits the company to complete identified energy-saving projects with less than a five-year payback time. Fibertex Personal Care has now entered into a new agreement with the Energy Agency running from 2018 to the end of 2020. The company worked on the following specific projects worldwide in 2018: insulating processing equipment, replacing suction blowers, optimising cooling systems, replacing lighting, replacing thermostats (district heating) and identifying very large power consumers in its processes. Fibertex Personal Care has set a target for energy optimisation for the period 2016–2020, producing annual energy savings of 5,000 MWh. By the end of 2018, the company had achieved an energy reduction of 2,600 MWh per year at its factory sites.

Fibertex Nonwovens Human rights: Fibertex Nonwovens participated in the initiative to strengthen responsible supplier management in 2018 and followed up on the observations made on the work on human rights in 2017. The company’s work on human rights is addressed in the Group’s current CR policy. As Fibertex Nonwovens operates in many different countries around the world, mapping the initiatives and matters relevant to the company’s individual units has been a key priority. The mapping has shown that all units have well-defined health and safety organisations that will address safety issues in relation to the work being performed and which enable CR-related issues to be identified without individual employees having to bring the issue to the attention of their immediate managers. Social issues and labour conditions: Fibertex Nonwovens works consistently to improve health and safety and make the company an even more attractive place to work which will attract, develop and

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retain talented and engaged employees at all levels. The company regularly implements initiatives to help improve employee health and well-being and to support their professional and personal development. Since 2017, Fibertex Nonwovens has monitored and followed up on lost time injuries (LTI), intending to monitor and compare LTI rates at all Fibertex Nonwovens sites. In an effort to reduce the number of industrial accidents, Fibertex Nonwovens has run specific campaigns on security at the factories in Denmark and France, and this initiative has been successful. The ambition is to run similar campaigns at the company’s other factories in 2019. Anti-corruption and business ethics: Fibertex Nonwovens aims to be a responsible company, and it is essential for its reputation and continued success that the organisation and its employees act responsibly in all financial, social and ethical contexts. The company did not implement Schouw & Co.’s e-learning programme on anti-corruption and business ethics in 2018, but chose instead to concentrate on updating its code of conduct for its employees, which will be implemented in 2019 through e-learning and other means. As part of these efforts, relevant employee groups will receive training in the Group’s guidelines on human rights, anti-corruption and business ethics. The ambition is for relevant new employees to receive training when commencing employment and for key employees to update their training every two years. Climate and the environment: The Fibertex Nonwovens site in Denmark has been certified to the ISO 14001 environmental management standard since 2001. The factories in Brazil, France and Turkey are also certified to the ISO 14001 standard. Preparations for ISO 14001 certification were performed at the factory in the Czech Republic, and the site is expected to obtain certification in 2019. The environmental certification process maps the company’s environmental footprint in detail and specific action plans have been prepared on ways to reduce its environmental impact. The company is working continually on specific projects to reduce energy consumption and waste volumes in relative terms, and to recycle waste where possible. The company met the expected reduction targets in 2018. A project focused on weight optimisation was launched in 2018, resulting in a 1.5% reduction of the average weight of comparable products, corresponding to an annual reduction in raw material consumption of 141 tonnes. In Denmark, Fibertex Nonwovens was certified to the ISO 50001 energy management standard in 2016. As part of the certification, the company entered into an energy agreement for the period 2016–2018 with the Danish Energy Agency involving the preparation of action plans that included projects for reducing energy consumption. A calculation of the effects of these efforts in 2018 showed an overall reduction of 7% in energy consumption at the Aalborg factory during the period.

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GPV Human rights: GPV participated in the initiative to strengthen responsible supplier management in 2018 and followed up on the observations made on the work on human rights in 2017. This led to the preparation of a supplier code of conduct and an extended supplier audit checklist for added focus on social and working conditions. In 2019, relevant supplier-facing employees will receive training to raise their awareness of these aspects in connection with the selection and evaluation of suppliers. Social issues and labour conditions: The report on CR activities in 2017 showed an increase in industrial injuries which mainly occurred in mechanics production. In order to reduce the number of work-related accidents, GPV mapped all near accidents in 2018, and safety awareness was increased in Thailand through monthly management safety meetings and management safety audits. These efforts have significantly improved safety performance relative to the original target. Anti-corruption and business ethics: GPV launched the e-learning programme on anti-corruption and business ethics to relevant employees in 2018. A total of 77% of the relevant employees had completed the programme by the end of 2018, and work continues to raise the percentage in 2019. Going forward, new employees and external partners interacting with customers, suppliers, authorities etc. as well as new managers will receive training in these issues as part of their introductory programmes. Climate and the environment: GPV is not exposed to any material environmental challenges. The original environmental improvement targets were set for the main purpose of reducing energy consumption by 10% relative to activities in 2016 during the period to 2020. The target was achieved in both 2017 and 2018. The company remains focused on achieving energy savings. For example, it completed a pilot project to replace light bulbs with LED versions at the electronics production site in Denmark. GPV also monitors water consumption, although no target was originally set. At the end of 2018, GPV acquired Swiss-based EMS company CCS, which will be part of its CR reporting going forward.

HydraSpecma Human rights: HydraSpecma participated in the initiative to strengthen responsible supplier management in 2018 with an ambition to extend business responsibility to cover the entire supply chain. HydraSpecma will not accept discrimination of any kind, whether on the basis of religion, race, skin colour, gender, disability, age, sexual orientation, political views or any other reason, and observations from the work on human rights in 2017 did not give rise to making any changes to that policy in 2018. Social issues and labour conditions: HydraSpecma has traditionally had relatively low lost-time injury rates, and the company reported an improvement in 2017 on the 2016 base rate. However, the lost-time injury rate increased sharply in 2018, but the company believes this was due to special circumstances during the year. Naturally, the ambition is to achieve the original 2020 target, and

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HydraSpecma took the first steps towards being certified to ISO 45001 occupational health and safety management systems. The purpose of being ISO certified is to assist employees and management in developing the best possible working environment, and HydraSpecma expects to be certified in 2019. Anti-corruption and business ethics: HydraSpecma launched the e-learning programme on anti-corruption and business ethics to relevant employees in 2018. More than 400 employees in out-facing jobs were selected for and have completed the programme. In addition, HydraSpecma set up a whistle-blower scheme in 2018 in order to give employees an anonymous channel through which to report violations of the company’s policies to the executive management. Climate and the environment: HydraSpecma took the first steps towards being certified to ISO 14001 on environmental management. The company believes ISO certification will support its continued effort to reduce its consumption of resources and, in turn, its environmental footprint. HydraSpecma expects to achieve certification in 2019. By continuing a pilot project initiated in 2017, HydraSpecma extensively replaced light bulbs with LED versions throughout the company’s sites in 2018. The programme has reduced energy consumption by as much as 40% in several units, contributing to lowering HydraSpecma’s overall energy consumption. The project will continue in 2019.

Borg Automotive Human rights: Borg Automotive participated in the initiative to strengthen responsible supplier management in 2018. The company began work on mapping suppliers and identifying the most risky areas early in 2018 based on observations from work on human rights performed in 2017. The results indicate that distant suppliers pose the greatest risk, and Borg Automotive will follow up by launching a pilot project to review selected suppliers. Social issues and labour conditions: Production at Borg Automotive is highly labour-intensive and because it is impossible to automate all processes, occupational health and safety is of great concern. In 2018, Borg Automotive hired external consultants to perform an analysis of the physical working environment at the Belgian and UK production units. The results did not indicate any significant problems. The company has also strengthened the Health & Safety organisations of all units. Despite the persistent efforts by all production units, the lost-time injury rate rose from 2017 to 2018, but with the initiatives launched in 2018, the rate is expected to drop in 2019. Anti-corruption and business ethics: Borg Automotive launched the e-learning programme on anti-corruption and business ethics to relevant employees in 2018. A total of 175 customer or supplier-facing employees were selected for the programme, and by the end of 2018, 90% of them had completed the programme. Climate and the environment: The remanufacturing process performed at Borg Automotive is an inherently sustainable business model, involving the reuse of existing products rather than manufacturing new ones. Remanufacturing can reduce the consumption of raw materials by up to 85%,

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the consumption of energy by 55% as well as a substantial proportion of the CO2 emissions compared to manufacturing new products. The 2020 targets of the CR strategy call for reducing electricity consumption by 2.5% annually per unit sold and a reduction of the consumption of cardboard, paper and plastics by 2% annually per unit sold. In 2018, Borg Automotive replaced many light bulbs with LED versions at the Polish production unit, and this programme will continue in Belgium and Denmark in 2019. In combination with other initiatives, this reduced electricity consumption by 1.7% in 2018. In addition, a number of initiatives regarding packaging and paper reduced the company’s materials consumption by more than expected.

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Gender composition of management (section 99 b) The report required in pursuance of section 99 b of the Danish Financial Statements Act comprises targets and policies on the gender composition of management.

Targets for management’s gender composition

In 2017, the Board of Directors of Schouw & Co. set the following targets for the gender composition of its management: For the measurement period from 1 April 2017 to 31 March 2021, the target is to increase the number of female board members of Aktieselskabet Schouw & Co. from one member currently, equal to at least 14%, to at least two members, equal to at least 28%. A target has also been set for the Group that all of its Danish reporting class C companies should have at least one female board member, equal to at least 20%. At the start of the measurement period, none of these companies had female board members. Two male board members resigned in 2018, and one new male member joined the Board of Directors of Schouw & Co. The Board currently has six members, one of whom is female. The newly-appointed board member represents the company’s principal shareholder and replaced the principal shareholder representative who resigned at the same general meeting. The Group has six group companies in the relevant reporting class: BioMar Group A/S with five shareholder-elected board members, BioMar A/S with three shareholder-elected board members, Fibertex Personal Care A/S with four shareholder-elected board members, Fibertex Nonwovens A/S and Borg Automotive Holding A/S each with five shareholder-elected board members and GPV International A/S and Hydra-Grene A/S each with four shareholder-elected board members. At the beginning of the current measurement period, these boards of directors had no female board members. At its 2018 general meeting, a female member was elected to the board of BioMar Group A/S on the grounds that this person has special competences and insights which are considered to be relevant for the business area. No other new board appointments were made in the portfolio companies in 2018.

Policy for increasing the proportion of the underrepresented gender at the company’s other management levels In January 2019, the Board of Directors of Schouw & Co. adopted a policy for ensuring relevant diversity at the company’s management levels, replacing the previous policy for increasing the proportion of the under-represented gender at the Group’s other management levels. The new policy, which is available at the company’s website: www.schouw.dk/en/cg2018, is to promote a desired development in cases where the composition of senior managers is not aligned with the company’s general employee mix. Accordingly, it specifies as follows: Schouw & Co. is aware that the ratio of women at senior management levels in the Group is proportionately lower than the gender composition of the Group’s employees in general. Accordingly, the Schouw & Co. Group’s portfolio companies will make a special effort to create a framework to support the career development of individual female employees, for example through networks, mentoring schemes or other specific initiatives that may help individual employees gain management experience. The Schouw & Co. Group’s portfolio companies must also make a dedicated effort to ensure the best possible female representation among candidates being considered for management positions. The company will always want to have the Group’s management positions filled by the most qualified candidates. The fundamental component in any job appointment is a competence assessment that is based on the assignments and the context in which the new manager will perform his/her role. Moreover, in any appointment, whether made in-house or externally, the emphasis should be on

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diversity, including gender distribution, to the widest possible extent. In its targets and efforts on diversity, Schouw & Co. aims to attract a diversified group of applicants for management positions in the Group and to avoid barriers of opinion and assumptions (whether or not deliberate) that would restrict diversity or counteract equal employment or career opportunities, regardless of age, seniority, gender, ethnicity or other factors. At the beginning of the current measurement period, there were no women among the registered executives of the Group’s Danish reporting class C companies. No new appointments were made in 2018, but a male executive of Hydra-Grene A/S with many years of seniority with the company was formally registered. The situation is different in the broader management levels of the Group, as the proportion of women among senior managers is much more reflective of the general employee mix. In several of the companies, the proportion of female senior managers was higher than or in line with the company’s general employee composition. In recent years, the Group has measured the proportion of women among senior managers and all employees of the Group in a more structured manner. In 2017 and 2018, that provided the following results:

2018 2017 2018 2017

Proportion of women Management All employees

Schouw & Co. 20% 20% 38% 33%

BioMar 19% 19% 20% 20%

Fibertex Personal Care 31% 29% 15% 15%

Fibertex Nonwovens 25% 27% 24% 23%

GPV 26% 28% 55% 57%

HydraSpecma 18% 16% 23% 21%

Borg Automotive 13% 11% 35% 31% Fibertex Personal Care and GPV Division have changed their methods of calculation. The comparative figures for 2017 have been restated accordingly.

The Group’s portfolio companies are aware of and aim to comply with the intentions of the general policy to the extent that this is possible without violating their own specific internal policies, serving the purpose of demonstrating that the companies do not discriminate. Examples of specific initiatives made by the Group’s businesses include: BioMar introduced a talent development programme in 2018, developed in collaboration with INSEAD, which is open to other companies of the Schouw & Co. Group. BioMar has dedicated 40% of the places in the programme at its disposal to female employees. Borg Automotive has also joined the programme, assigning 33% of its places to female employees, while the parent company Schouw & Co. is represented by a male employee. A female employee of Fibertex Nonwovens has completed a two-year MBA programme, and the company has appointed a female quality manager at its Turkish production unit. All other portfolio companies seek to have at least one candidate representing each gender in recruitment processes if at all possible given the group of applicants. The parent company Schouw & Co. is of a modest size (13 full-time staff in 2018). The parent company organisation opened a new position as General Counsel (Chief Legal Officer) in 2018, and a majority of the candidates during the final phase were women. On completion of the process, Schouw & Co. appointed a woman for the position.