ULTIMATE ARMOUR WORKS FZC COMMUNICATION ON PROGRESS JULY 2015

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1 ULTIMATE ARMOUR WORKS FZC COMMUNICATION ON PROGRESS JULY 2015 ULTIMATE ARMOUR WORKS FZC Plot No. 22 RAK Free Zone Technology Park Ras Al Khaimah United Arab Emirates PO Box Tel: Fax: sales@armour-works.com

2 ULTIMATE ARMOUR WORKSFZC (UAW) is a privately owned company registered in RAK Free Zone, United Arab Emirates. The company was established in 2005 and currently employs approximately 260 full time staff from 19 different countries. UAW facilities operate 24 hours, six days per week to ensure annual production targets. We believe that we are among the market leaders for quality and reliability. We aim to be ranked by our staff as the best place to work in our industry.

3 Ultimate Armour Works FZC Plot No. 22 RAK Free Zone Technology Park Ras Al Khaimah United Arab Emirates PO Box Tel: Fax: ISO9001:2008 Quality Management Systems 9 July 2015 United Nations Secretary General Ban Ki-moon 1 st Ave. and 46 th Street New York, NY USA Dear Sir, Since joining the United Nations Global Compact initiative, Ultimate Armour Works sustains its commitment to the ten principles of the Global Compact, with respect to human rights, labour, environment and anti-corruption. We are currently working towards incorporating Global Compact into our website, informing our stakeholders of our commitment. Therefore it is with great pride that we hereby submit our second Communication of Progress Report for July 2014 to July Yours faithfully Mark Regenass Managing Director

4 HUMAN RIGHTS Principle 1: Business should support and respect the protection of internationally proclaimed human rights. Principle 2: Business should ensure that they are not complicit in human rights abuses. "Protection of human rights is one of our core business principles. We encourage a work environment that fosters mutual respect and acceptance and offer a work environment free from discrimination of all forms and equal opportunity for advancement". Actions in 2014 Measurement of Outcome 2015 Objectives and Targets Increased employment of women. UAW supports and provides financial sustenance to local human rights organizations. During 2014 and early 2015 we increased our women staff by employing two ladies. We donated financial aid to an organizaton supporting migrants. We want to encourage woman to be more independent and broaden their working experience and skills. Identify and support organizations striving to put an end to human rights violations not only where our business operates but worldwide.

5 LABOUR STANDARDS Principle 3: Business will uphold the freedom of association and the effective recognition of the right to collective bargaining Principle 4: Eliminate all forms of forced and compulsory labour Principle 5: Abolish child labour Principle 6: Eliminate discrimination in employment and occupation "UAW does not prohibit the right to freedom of association. UAW does not conduct or condone any forms of forced and compulsory labour or child labour. UAW complies with all labour laws, regulations and recommendations in order to ensure a safe, fair and non-discriminative workplace for our employees". Actions in 2014 Measurement of Outcome 2015 Objectives and Targets Staff sent on various courses and seminars improving their qualifications. 1. Level 2 - Emergency First Aid At Work training course 2. ISO 9001:2008 QMS Internal Auditor Course 3. Paint Shop Management Seminar 4. UN Global Compact Meeting 8 members of UAW staff improved their knowlage and professional experience. UAW continues to encourage its staff to attend courses and seminars to obtain further training that will enhance their knowledge and working skills in their particular profession. Encourage teamwork and unity amongst all employees. All professional and private related matters and problems risen by employees have been resolved. Based on the above, we have improved our communication system within the company. Our aim is to encourage team spirit and a sense of camaraderie amongst the staff.

6 Actions in 2014 Measurement of Outcome 2015 Objectives and Targets As part of our 10 th year anniversary all 260 employees and directors spent a day at the water park. Team games were organised, bringing staff and management together. For many of our employees this was a first time experience in such a facility. Our aim is to be able to give our staff a better perspective in life so they are able to interact with others comfortably. New equipment was provided for workers accommodation: 1. Projector and screen 2. Basketball net 3. Hi -Fi system 4. Badmington net Staff accommodation became more comfortable. Employees can spend their free time interacting leisurely. Having respect for the different cultures and religions of our employees, we celebrate the following holidays and festivities: 1. Chinese New Year for Vietnamese Nationals 2. Eid Al Fitr and UAE National Day for Arabic community 3. Easter and Christmas for Christians 4. Onam for Indian community Enhanced respect for each other s culture and beliefs. Continue fostering mutual respect and understanding. Staff loan scheme was launched to encourage home ownership among staff with no alternative access to loans and capital. 23 staff have taken up loans to purchase land or commence building of homes for their families in their home country. Currently staff from Vietnam, Cameroon, India, Bangladesh and Philippines are now land or home owners as a result of the scheme.

7 ENVIRONMENT Principle 7: Support a cautionary approach to environmental challenges. Principle 8: Undertake initiatives to promote environmental responsibility. Principle 9: Encourage the development and diffusion of environmentally friendly technologies. "UAW FZC is committed to protect the environment by reducing carbon emission, energy and water consumption. Our aim is to continuously improve the environmental performance within our facility by using efficient technologies and provide continuous training to our employees. UAW FZC operate in full compliance with applicable national, international, state and local environmental regulations." Actions in 2014 Measurement of Outcome 2015 Objectives and Targets A new electronic managment system was introduced whereby tablets are used for production monitoring, training, quality control and staff appraisal. The system reduced the usage of paper and office consumables. Continue to improve electronic management system to include additional features e.g. customer relationship management (CRM). Paint thinner re-cycling machine installed. Less paint thinners usage and reduction of associated pollution. Keep educating staff about their work environment and the safety hazards. Health, safety and environment training has been given to all staff. Environmental awareness has been considereably improved. The amount of injuries reported has reduced compared to previous years. Medical expenses have reduced by 36% from May 2014 to May 2015.

8 Actions in 2014 Measurement of Outcome 2015 Objectives and Targets Staff is more aware about saving electricity by switching off lights when not necessary, saving water by making sure that the taps are turned off properly, making sure that their work areas are safe. Electricity consumption from May 2014 to May 2015 has reduced by 11%. From May 2014 to May 2015 our water consumption has reduced by 19%. Continue to follow ISO 14001:2004 and ISO 18001:2007 standards. Recycling of used batteries. Containers for used batteries have been strategically placed within the facility. Hazardous wastage has been reduced. Continue to prevent waste of potentially useful materials. UAW replaced its vehicle fleet with new models. Fuel consumption has reduced by 15% from May 2014 to May Adittional vehicles and machinery will be purchased to continue to reduce energy usage and air pollution.

9 ANTI-CORRUPTION Principle 10: Work against corruption, in particular bribery and extortion "UAW does not accept or condone any form of corruption including bribery and extortion. Actions in 2014 Measurement of Outcome 2015 Objectives and Targets Anti-bribery and anti-corruption awareness has been risen to all employees and the public. Employees of UAW are well vetted prior to being employed and are constantly reminded about the implications related to bribery, corruption and extortion. We aim to prevent corruption by further education, advocacy and system review. Our suppliers are evaluated via questionnaire based on the ten (10) principles of the UN Global Compact. No case of corruption, bribery and extortion has been reported.

10 ULTIMATE ARMOUR WORKS FZC Plot No. 22 RAK Free Zone Technology Park Ras Al Khaimah United Arab Emirates PO Box Tel: Fax: sales@armour-works.com INNOVATION NOT IMMITATION

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