Exmar

03.12.2021

Compliance Model

Approved by the Board of Directors of EXMAR on 3 December 2021

Table of Contents

Introduction

......................................................................................................................................................

4

Chapter 1:

General Principles...................................................................................................................

5

1.1

Corporate Governance Charter and Corporate Governance Statement...............................

5

1.2

Code of Business Ethics................................................................................................................

6

1.3

Dealing Code...................................................................................................................................

6

1.4

Audit Charter....................................................................................................................................

7

1.5

Compliance Model Principles........................................................................................................

7

1.5.1

Control Environment: COSO 2013........................................................................................

7

1.5.2

Compliance Model Coverage.................................................................................................

8

1.5.3

Continuous improvement........................................................................................................

9

Chapter 2:

Compliance Model ................................................................................................................

10

2.1

Compliance Risk Universe ..........................................................................................................

10

2.1.1

Structure..................................................................................................................................

10

2.1.2

Key Risk Officers....................................................................................................................

10

2.2

Compliance Risk Assessment ....................................................................................................

10

2.2.1

General....................................................................................................................................

10

2.2.2

Risk Assessment Criteria Matrix (RACM) ..........................................................................

11

2.2.3

Reporting of risks ...................................................................................................................

11

2.3

Compliance policies......................................................................................................................

11

2.4

Watch Structure - Audit Committee...........................................................................................

12

2.4.1 Function, composition and appointment...................................................................................

12

2.5

Whistleblowing ..............................................................................................................................

12

2.6

Addressees...................................................................................................................................

13

2.7

Non-ComplianceEvent ................................................................................................................

13

2.7.1

Compliance Model Update ...................................................................................................

13

2.7.2

Mitigation of damages ...........................................................................................................

13

2.8

Disciplinary System ......................................................................................................................

13

2.8.1

General Principles..................................................................................................................

13

2.8.2

Sanctions and disciplinary measures .................................................................................

14

Chapter 3: Training and communication ...............................................................................................

16

3.1

Internal training and communication..........................................................................................

16

3.1.1

Declaration..............................................................................................................................

16

3.1.2

Need for additional training ..................................................................................................

16

3.2

Communication to third parties ...................................................................................................

16

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Chapter 4:

Specific Compliance Control tools......................................................................................

17

4.1

Compliance Control Inventory.....................................................................................................

17

4.1.1

Set up.......................................................................................................................................

17

4.1.2

Fundamental principles of the Control Inventory ..............................................................

17

4.2

Control Assessment .....................................................................................................................

17

4.3

Control gap remediation...............................................................................................................

17

Annexes: ........................................................................................................................................................

18

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Introduction

EXMAR expressed the need to adopt an organizational, management and control model to comply with the worldwide leading legislations and practices on corporate governance and prevent offences against competition/anti-trust laws, conflicts of interests, Insider transactions, financial statement fraud, fraud and corruption, health and safety legislation, environmental protection, information management, protection of individuals and privacy legislation.

Examples of relevant laws include the Foreign Corrupt Practices Act of 1977 (FCPA), the UK Bribery Act 2010, the Italian Legislative Decree 231/2001 of June 8, 2001 (Model 231) and the Privacy legislation (Italian Legislative Decree 196/2003, European Commission Directive 95/46/EC on data protection (Data Protection Directive) and Directive 2002/58/EC, and the Belgian Privacy Legislation) and underlying regulation for certificates like ISO14001 and ISO 45001 etc.

This Compliance Model (hereafter 'The Model') is approved by EXMAR's Board of Directors ('the Board') and is designed to have the compliance function embedded in all levels of the company and integrated in the interaction with third parties. The Model will be reviewed from time to time by the Board and amended if necessary.

To ensure a permanent state of compliance, the Model's foundation is structured around continuous improvement by a yearly risk- and control assessment taking into account the changes in organization, legislation, findings of internal audit activities etc.

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Chapter 1: General Principles

Compliance and ethics practices can no longer be viewed in isolation of the rest of the organization. They must be part of the overall business strategy and operations, pervasive throughout the entire organization. Ultimately, taking this integrated approach will lead to better overall performance.

EXMAR systematically assesses and prioritizes present and emerging compliance and ethics risks. Such analysis takes into account the organization's culture, compliance and ethics history, as well as industry issues. The Board routinely discusses these risks, and how they are addressed, with management.

The compliance and ethics program is designed to foster a corporate culture that places responsibility on individuals for their actions and motivates everyone. The Board and management ensure that employees have appropriate training and information and participate in such training themselves.

1.1 Corporate Governance Charter and Corporate Governance Statement

EXMAR's Corporate Governance Charter was approved by the Board on 31st March 2010. An important update of the Corporate Governance Charter, pursuant to the entry into force of the new Belgian Code of Companies and Associations and the most recent version of the Belgian Corporate Governance Code (the "Code 2020"), was approved by the Board on 3 December 2020. The last update was done on 3 December 2021. This Charter is also applicable to all affiliates of EXMAR. The Corporate Governance Charter contains a summary of the rules and principles on which EXMAR's corporate governance is organized and is based on the provisions of EXMAR's articles of association, the Belgian Code of Companies and Associations and the Code 2020.

The Code 2020 is based on a 'comply or explain' principle. The company aims to comply with most provisions of the Code 2020, but the Board is of the opinion that deviation from provisions may be justified in light of the company's specific situation. Such derogations will be explained in the Corporate Governance Statement, which is part of EXMAR's annual report and is published on www.exmar.be.

Both the published Corporate Governance Charter and the Corporate Governance Statement are a reply to the essential disclosure, leading to the required transparency.

The Corporate Governance Charter describes the company's profile, capital shares and shareholders and the applied principles related to the shareholders' meetings.

The roles and responsibilities of the different organs within the company are described.

  • The power, responsibilities and functioning of the Board are elaborated. The Corporate Governance Charter defines the rules in operation of the Board, the role and responsibilities of the Chairman, dealing with conflict of interests, remuneration and evaluation.
  • The functioning of the Audit Committee and Nomination and Remuneration Committee, set up in delegation of the Board is described in detail.
  • The roles and rules in the organization of the day-to-day management, the power and responsibilities of the Chief Executive Officer and Executive Committee are elaborated.

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Exmar NV published this content on 22 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2022 11:01:01 UTC.