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Investor Presentaiton

In 2020, IHARA had a salary floor in the amount of R$ 1,972.00 (own employees), which is 88.7% higher than the na- tional minimum wage, of R$ 1,045.00. Over the years, average wages have been above the market. The IHARA Profit and Results Sharing model is a market differentiator and a reference in the region. HEALTH AND SAFETY GRI 403-1, GRI 403-5, GRI 403-6, GRI 403-9 The health and safety of employees at IHARA are seen as priority issues and the company takes several ac- tions in this regard. IHARA has an ISO 45001 certified health and safety management system. During the year 2020, the monitoring of safety actions was carried out through the 1200 Miles Program, de- ployed in 2015, which seeks to establish a proactive and preventive culture, providing a great development in several aspects, especially in the reduction of SIR (Safety Inspection Report) emissions, an indicator that shows improvement in the maturity of the safety cul- ture. This program brings forth monthly indicators, aiming at a continuous improvement, and counts on the participation of employees in a formal manifesta- tion when encountering and recognizing a dangerous condition within the manufacturing environment or a deviation of behavior, facilitating the immediate iden- tification of risk situations. This program was also strengthened with the increase in the use of the 5's program, in which, during the year, we were able to reach an average ratio of 98% of use. Thus, 135 ideas for improvements related to safety, environment and quality were presented, an increase of 7% compared to 2019. In 2020, as in previous years, IHARA carried out em- ployee health promotion campaigns. During the year, 04 health campaigns were developed focusing on themes such as: obesity, chronic diseases, smoking, muscle diseases, psychic fatigue, immunity etc. Health and safety campaigns were also carried out during the year, accompanying government cam- paigns, among them Maio Amarelo ("Yellow May"), Outubro Rosa ("Pink October") and Novembro Azul ("Blue November"), in addition to campaigns identified as necessary based on internal indicators, addressing topics such as the safe use of cell phones, family safe- ty and safe vacations. With the COVID-19 pandemic, approaches to health and well-being were strengthened. Aiming at the prompt and effective communication of matters related to the pan- demic, we released the IHARA application, through which we disclose epidemiological bulletins, notifications and videos with prevention guidelines. The tool also enables the daily completion management of the Covid-19 form, which aims to quickly point out signs and symptoms. A notice is automatically sent to employees' managers. The application also provides for the purchase of Covid-19 rapid tests by employees and their families. IHARA works to enhance the safety culture, aiming at the zero accidents goal, nevertheless, in 2020, there were 5 work-related accidents, with a rate of 3.81 to 1,313,745.94 hours worked by own employees. The main injuries were divided into hands and fists injuries and chemical burns. WORK-RELATED INJURIES - GRI 403-9 Number Rate Own employees CASUALTY RESULTING FROM WORK-RELATED INJURIES Third-party employees 0 0 0 0 WORK-RELATED INJURIES WITH SERIOUS CONSEQUENCES Number 5 0 Rate 3.81 0 RECORDABLE WORK-RELATED INJURIES Number 5 0 Rate 3.81 0 SUPPLIERS GRI 102-9, GRI 308-1, GRI 414-1, GRI 408-1, GRI 409-1 IHARA has a purchasing policy, which establishes rules of conduct and expectations, stating that the compa- ny has to do business with its suppliers. Among the rules are that IHARA restricts and does not purchase products or services from suppliers that are known to use child labor and/or who maintain workers in inhu- mane working conditions and/or under forced labor. As a form of risk mitigation, the company monitors it through audits and controls. The company immediately breaks its commercial re- lationship with any supplier when its involvement in these practices is evidenced, thus making a complaint to the Public Ministry. In 2020, 100% of the new suppliers were submitted to evaluations, which consists of an evaluation of the re- quired legal documents and an on-site audit. SOCIETY GRI 413-1 In 2019, IHARA, aware of its role in contributing to so- ciety, accomplished and supported several projects that benefit society, in areas of social assistance, cul- ture and health, among others. Donations were made that exceeded the R$ 4 million mark for institutions, focusing on assistance entities that have shown seri- ous work, recognized by society. The main contribu- tion took place through financial resources. Several regions were identified in addition to the local public at the company's headquarters, so employees who have headquarters in other states could also be involved in these social engagement programs. IHARA is fully aware of its social role and does its part so that human beings, with needs and dreams, can be fully reinserted in society. 50 SOCIAL PERFORMANCE SUSTAINABILITY REPORT IHARA 2019 51
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