Good Governance & Environmental Achievements 2019

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Applus

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Applus

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Corporate

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2019

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#1Acplus + Together beyond standards ESG Slides For Investor Relations Presentations September 2020#2ENVIRONMENTAL, SOCIAL AND GOVERNANCE Together Applus agend ESG formally introduced practice in 2014 with the creation of the CSR Committee of the Board beyond standards ■ Corporate Social Responsibility Report published annually since 2015 according to GRI Standards and audited since 2018 ◉ ■ Signatory of UN Global Compact Principles and committed to UN Sustainable Development Goals (SDG) "B" rating from the CDP "AA" rating from MSCI Included into FTSE4Good IBEX from June 2019 THE GLOBA COMPACT United Nations Global Compact GRI STANDARDS +CDP MSCI ✪ DISCLOSURE INSIGHT ACTION FTSE4Good 13#3ENVIRONMENTAL IMPACTS Internal Impact Limited negative environmental impact to carry-out the services provided. Mainly related to offices, laboratories and transport to client's facilities: ■ Energy consumption ■ GHG emissions ■ Water consumption (IDIADA Division) Waste management External Impact Significant positive environmental impact resulting from the services provided by Applus+: Services which help customers to reduce environmental impact (reduce safety and environmental risks on assets, products and services of our clients. Our "green services" that is: Those which make a substantial contribution to one environmental objective (which would be climate change - low carbon economy and consequently low CO2 emissions) and do not cause significant harm to the other environmental objectives.#4ENVIRONMENT HOW WE MANAGE Internal Impact Controlling the causes of these within our activities ■ Policies and environmental management systems which are extended to our supply chain Measuring data to get accurate figures which are annually audited. In 2019 we included Scope 3 emissions (business trips, commuting and power distribution network) Reducing our energy and water consumption, as well as our GHG emissions, through specific actions, such as efficient lighting in offices, mobility plans, electric vehicles in our fleet and water re-use at our facilities Deploying new awareness campaigns to engage employees on sustainable practices in their day- to-day work Decoupling our emissions from our productive activity Deploying a plan to purchase green energy Off-setting CO2 emissions External Impact Adapting and extending our services progressively to meet the needs of our clients for the challenges of climate change. Measuring and increasing our "green services" revenues#5ENVIRONMENTAL ACHIEVEMENTS IN 2019 Internal Impact ✓ Reducing our electricity consumption on a like for like basis by 3% ✓ 2% of our fleet are eco-efficient vehicles (electric, hybrid, plug-in hybrid, bio-fuel and CNG and LNG) ✓ 16% off-set of CO2 emissions from flights in Spain ✓ Extending our GHG emissions to the Scope 3 related to business trips by airplane, train and taxi, employees commuting and power distribution network ✓ Reducing our water consumption by 7% External Impact ✓ Circa €200 million (11% total revenue) from services to protect reduce/mitigate environmental impacts "green services" Renewables, Automotive Emissions, Environmental Surveys, Energy Audits, Waste Management Surveys and innovation projects for Automotive eco-engines and lightweight Aerospace materials#6SOCIAL As a service company, people are key to the company's growth, sustainability and development. Our people. together with our innovation process provide solutions to give answers to our customers' business needs We promote local teams to implement specific social-action programmes in their local communities People: ✓ Talent management: Development plans for individuals and Global Management Development Programme ✓ Improve employee engagement: Action plans from results of our last employee satisfaction survey ✓ Foster diversity and inclusiveness with equal opportunities: Diversity and Equality Policy to establish the principles and specific plans for women and people with different abilities and ethnic groups ✓ Provide a safe environment: Reinforce our best practices in occupational health and safety, training, sharing lessons learnt and increasing activities to raise awareness through the Group Innovation: ✓ Innovative solutions for our clients for more sustainable, safe and environmental-friendly products, assets or industry processes Stakeholders engagement: ✓ Social action within local communities where we operate ✓ Suppliers involvement through our homologation processes#7SOCIAL ACHIEVEMENTS IN 2019 ✓ 23,051 professionals distributed across 70 countries. They comprise women and men with a broad diversity of nationalities, cultures, religions and ages ✓ 137 development plans for individuals from the managers in 26 countries, including more than 406 actions ✓ First group of Applus+ managers graduated from the Global Management Development Programme in 2019 ✓ 35 training hours given per employee and 100% of all professionals were enrolled and completed the annual Code of Ethics training ✓ We filled 77% (73% in 2018) of all available management positions internally and the ✓ Voluntary turnover rate of employees remained stable at 12% ✓ 584 actions implemented from the satisfaction survey's action plan ✓ The high percentage of local employees (86% and 94% job vacancies filled locally) and products or services purchased locally (90%) highlight our commitment t the local communities ✓ Reduced the accident rate by almost 10% and reduced the severity rate by 26%. No fatalities in 2019 ✓ 200 innovation projects involving 881 employees with 98 accumulated patents granted ✓ Actions supporting our social contribution: education of young people, support disadvantaged groups, campaigns for life threatening illnesses and promoting safe and healthy lifestyles#8GOVERNANCE Applus+ is governed by a set of corporate rules, policies and processes that define, under applicable laws its corporate governance model to ensure the Group's long-term vision. Ethics and transparency are its key principles. Ensure that the Group's principles of good governance have been developed through the approval and implementation of specific policies ■ Maintain a constructive dialogue with our institutional investors and proxy advisors Improving our compliance model (training, policies, controls, follow-up indicators) Ensure risks are managed adequately and continuously through the implementation of its Risk Management Policy and Procedure.#9GOVERNANCE ACHIEVEMENTS IN 2019 High adherence to Good Governance Code for listed companies (89% effective compliance ratio in 2019) ✓ Board of Directors is strong and diverse 3 Committees (Audit, Appointments/Remuneration, CSR) 7 out of 10 of the Directors are independent including the Chairman Chairman and CEO separation Good complement of skills, experience, nationalities and age as well as 3 female directors (30%) ✓ Proactive annual Corporate Governance engagement with top investors resulting in high AGM participation (>70%) ✓ Shareholder rights in line with best practice (eg no poison pills and 1 share, 1 vote) ✓ Compliance Management System includes Policies and annual training • . Code of Ethics Global Anti-corruption Policy and Procedure Whistleblowing channel - 107 communications in 2019, 24 resulted in corrections#10Mission, Vision and Values Applus Together yond standards Mission ◉ Together with our customers we help society to mitigate risks, evaluating the quality and safety of products, assets and operations Vision ■ To give our customers the best technical solutions and service and become a world leader in our chosen markets Values Integrity Transparency Impartiality and independence Responsibility 13#11Applus® Together beyond standards www.applus.com

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