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Modern Slavery Act Policy Statement for Financial Year ended 31 December 2018

Introduction

This statement is made by Wacker Neuson Ud., Stafford ("Wacker Neuson UK") pursuant to Section 54 (1) of the Modem Slavery Act 2015 and sets out the steps the company is taking to minimize the risk of modem slavery and human trafficking taking piace within its organization and supply chains. lt has been approved by Wacker Neuson UK's board of directors on 27 March 2019. Wacker Neuson UK has a zero tolerance to any form of modem slavery. We are committed to integrity and honesty as well as the commitment to consistent compliance with legai and regulatory requirements. Both our employees as well as our suppliers are required to adhere to this standard.

Structure and Business

Wacker Neuson UK is part of Wacker Neuson Group, an intemational family of companies and a leading manufacturer of light and compact construction equipment with over 50 affiliates and 140 sales and service stations worldwide. The Group offers its customers a broad portfolio of products, a wide range of services and an efficient spare parts service. The product brands Wacker Neuson, Kramer and Weidemann belong to the Wacker Neuson Group. Wacker Neuson is the partner of choice among professional users in construction, gardening, landscaping and agriculture, as well as among municipal bodies and companies in industries such as recycling, energy and rail transport .

The Group employs over 5,500 employees worldwide, the headquarters are in Munich, Germany. There are approximately 140 sales and service locations worldwide and production facilities in Germany, Austria, USA, Serbia and China. Wacker Neuson UK operates as a sales and service affiliate of the Group. lt distributes Wacker Neuson Groups' range of products and spare parts via a dealer network throughout the Uniteci Kingdom and lreland. In addition to is facilities in Stafford, one of the Groups dedicated research and development centres is located at Wacker Neuson UK's Leicester facilities. Approximately 65 people are based in the UK.

Supply Chain

Within the UK, Wacker Neuson UK maintains relationships with local suppliers on a smaller scale, while all products and spare parts are sourced from other Wacker Neuson Group companies. For the engineering and production of its machines and equipment, the Group sources pre-manufactured parts, components and raw materials for its production plants via a global network of suppliers.

Policies

We operate a number of group wide or local policies to ensure we are conducting our business in an ethical and transparent way. These include:

Code of Conduct
AII of our employees are required to comply with the company's code of conduct which commits them to behave correctly in daily business life, in the sense of the law, our internal rules and our moral concepts. Each employee of Wacker Neuson UK are required to sign a statement confirming that they have received, read and understood the Code of Conduct. The most recent version of the Code of Conduct can also be found online at https://wackerneusongroup.com/en/the-group/compliance

Supplier Code of Conduct
Wacker Neuson Group expects all its suppliers to adhere to the 'Code of Conduct for Wacker Neuson Group Suppliers', compliance with this code is the basis for our continued relationship with our suppliers. This includes undertaking all suppliers to comply with the 'Generai Declaration of Human Rights' of the United Nations, to support the principles of the UN Global Compact and recognise the core labour standards of the lnternational Labour Organisation and the rights established by the Organisation for Economy Co-operation and Development. The code of conduct specifically requests that suppliers refrain from the use of forced labour and child labour. Suppliers commit to this code by completing and signing a Declaration of Compliance. The most recent version of the Supplier Code of Conduct can also be found online at https://wackerneusongroup.com/en/the-group/compliance/ 

Whistleblower System "Tell-it"
Via the external web-based whistleblower system ,,Tell-it" serious cases of violation or misconduct in connection with the Wacker Neuson Group such as human rights violations can be reported. The whistleblower system offers an additional line of communication, which is available both for the employees of the Wacker Neuson Group, as well as business partners, such as customers and suppliers. lt can be accessed 24 hours a day from anywhere in the world and confidentially under the following link: www.bkms-system.net/wackerneuson

Recruitment Policy and Practices
Wacker Neuson UK undertakes right to work checks tor all employees recruited in the UK to ensure they have the a valid work visa if required and are of appropriate employment age. Wacker Neuson UK does not employ anyone below the legal school leaving age.

Risk Assessment

Framed by the group wide compliance management system, Wacker Neuson Group stands tor a culture of responsible corporate governance through a variety of proactive compliance measures designed to specifically engage employees and suppliers. The measures are described in our policies section above.

To remain competitive in the long-term, the Group is having to work with a much more international group of suppliers than it did a few years ago. This is why the Group sourcing strategy includes countries with generally higher risks of human rights violations compared with Europe and North America. The expansion into such countries and the development of the Groups' sourcing, sales and production structures have pushed human rights high on the Wacker Neuson Group list of priorities. Wacker Neuson Group aims at all times to protect human rights, both within in the Group's internal organisation and throughout its supply chain.

The Group uses a non-financial risk management system to identify and assess risks arising from the Group's business activities that could impact social and employee-related human rights. For fiscal 2018, this request tor intormation was merged into the process tor reporting financial risks. The risks facing the Group were evaluated on the basis of risk probability and risk exposure. In summary, the Group did not identify any risks regarding modem slavery and human trafficking to be disclosed.

Due Diligence

Our aim at all times is to protect human rights, both in our internal organisation and throughout the supply chain, and the company is currently reviewing existing compliance and risk management systems with regard to the Modem Day Slavery Act 2015.

The established Group-wide compliance management system strives to reduce the risk of human rights violations by employees in the organisation, whether on the basis of standard reporting processes, tip­offs via the whistle-blower system, or employee training and events. The protection of human rights is very much a priority in this process.

A dedicated Group corporate department for supplier auditing supports and develops suppliers - from initial selection through supplier auditing and the nomination process to the start of series production. The audits, known as rapid plant assessments, are carried out on the basis of Group-wide unitorm evaluation standards. An internal guideline containing standard assessment criteria forms the basis tor the qualification of potential and existing suppliers. This allows supplier performance at operational level to be viewed, compared and measured. lf any shortcomings are identified, action plans are drawn up to eliminate these weaknesses in the long term. A Supplier Nomination Committee decides whether to accept or reject a supplier. Within the UK, local procurement is carried out as defined at Group level. AII decisions on whether to work with a UK based supplier are preceded by an appraisal of the suppliers with respect to their performance on factors like the environment, working conditions, and the protection of human rights.

Local suppliers are made aware of Wacker Neuson UK's Modem Slavery Statement and of the Group Supplier Code of Conduct and where appropriate, a copy of their respective statement is obtained.

In 2018, Wacker Neuson UK and the Group neither received complaints about violations of human rights or suspected violations of human rights in the organization nor such complaints about suppliers with existing business relationships.

Training

Part of compliance training involves raising employees' awareness of compliance risks and the need to respect the applicable legal regulations, which also indirectly encompass the protection of human rights. Special trainings for employees in the purchasing department do also have a focus on human rights. The Group further holds webinars on the topic of human rights aimed at the managing directors of all sites around the world and this information will be conveyed to all employees of Wacker Neuson UK to ensure they remain familiar with the procedure to identify and prevent instances of modem slavery.

Richard Harrison
Managing Director

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