Corporate Social Responsibility

2017

SOLUNION is a Spanish company founded in 2013, incorporated as a joint venture owned fifty percent by MAPFRE, a global insurer operating on five continents, industry leader in Spain and the first

multinational insurance group in Latin America, and fifty percent by Euler Hermes, world leader in credit insurance and one of the leaders in bonding and collections.

SOLUNION in the world

Second operator in Spain and third in LATAM

SOLUNION 2017 key figures 179 M€ turnover

+5,700 policies

144 M€ in premium income

+135K risk decisions

35 M€ in service revenues

460 employees

Spain Turnover: 127 M€ Premium: 104 M€ Market Share: 18% (2) Employees: 286

Argentina Turnover: 4 M€ Premium: 3 M€ Market Share: 10% (3) Employees: 10

Chile Turnover: 11 M€ Premium: 8 M€ Market Share: 8% (4) Employees: 41

Colombia Turnover: 16 M€ Premium: 13 M€ Market Share: 56% (1) Employees: 53

Mexico Turnover: 23 M€ Premium: 17 M€ Market Share: 29% (2) Employees: 70

Fronting Countries • Panamá • Costa Rica • Dominican • Guatemala • El Salvador • Nicaragua

• Honduras • Peru • Ecuador • Uruguay • Paraguay

)

Corporate Governance The Board of SOLUNION aims to ensure responsible and

prudent management, adapting to the common operational

model for the Group, which provides the corresponding

hierarchical and functional dependencies.

Board of Directors

• SOLUNION Argentina

• Finance Administration and Organization

• Risks, Information, Claims

• Collections • Sales and Marketing Collections • Human

Resources • Communication

• Legal matters

Global corporate areas

Business units

• SOLUNlON Colombia

• SOLUNION Mexico

• SOLUNION Spain

• SOLUNlON Chile

Mission, Vision and Values

Reliability Being the most reliable partner for customers and distributors: We do what we say/ fulilling expectations and keeping promises.

Commitment Our corporate culture relies on a self-improvement spirit through our employees commitment, being a major contributing factor toward sustaining long-term success and value creation.

Integrity We employ the highest ethical standards, demonstrating honesty and fairness in every action that we take.

Innovative Spirit We are fexible in offering solutions oriented to identify, assess and mitigate credit risks. We make it possible through a continuous innovation processes in our business model.

Mission The mission is based on providing appropriate solutions adapted to the customer’s needs for their safe and profitable business growth around the globe.

Vision Vision of being the preferred partner in Spain and LatAm for credit insurance, bonding and related services.

Values Four ethical standards on which the company bases its competitive advantages:

Pillars in CSR SOLUNION promotes a commitmentt to sustainable development,

building on the basis of its values and its stable and equitable

relationships with its stakeholders to achieve its business

objectives. It is also aware of its responsibility to society and the environment in which it operates.

Social Responsibilit y Contributing to the socioeconomic development of the countries where it operates through activities related to its professional experience and the voluntary activities of its employees.

Financial Responsibilit y Developing operational activities according to ethical criteria, with corporate governance practices based on transparency, truthfulness and mutual trust with shareholders, respecting the rules of the free market and free competition and rejecting irregular practices designed to obtain commercial advantages.

Environmental Responsibility Caring for the environment/ with the primary objective of prevention and, when this is not possible, reducing the impact of its activities.

A culture of awareness to reduce the environmental impact of our activities and actions.

Labour Responsibilit y Promoting the human and professional development of our employees.

Respect the current legislation in each of the countries in which it operates, adopting complementary international standards and guidelines.

Stakeholders Stakeholders are interested parties affected one way or another

by the existence of and/or business carried out by SOLUNION,

which also influences the achievement of the objectives and

goals proposed in the strategic plan.

• Customers

• Shareholders

• Employees

• Suppliers

• Distributors

• Society

• Regulators

SOLUNION’s Stakeholders

• Creation of Value.

• Ethical and transparent performance.

• Dialogue and cooperation with the community.

• Professional development of our employees.

• Better products.

• Proximity.

• Security guarantee for the customer.

• Reduction of environmental impacts.

• Transparent compliance with current legislation.

Actions with its stakeholders To improve and make more fluid the relationship with its

stakeholders, SOLUNION has launched different actions, all

based on the corporate values of the company: Reliability,

Integrity, Commitment and lnnovation Spirit.

Commitment of SOLUNION

Customers One of SOLUNION’s main objectives is to ensure the satisfaction

of its more than 4,000 clients, providing them with a quality

service and high value-added.

SOLUNION accompanies its clients in their development on

national and international markets.

Customer service

Global offer:

• Guidance and advice for all its customers.

• Tailored products for all types of businesses and industries.

Main figures

+100.000 risk decisions corresponding to more than 170 countries in 2017

+100M€ Insured and uninsured debt recovery

+15.000 cases processed in 2017

• Processing of claims and collections by a global network.

• +65 risk analysts at SOLUNION and +1,500 worldwide.

Shareholders Creation of value for the two shareholders/ Euler Hermes

and MAPFRE, ensuring long-term business viability,

management transparency and good governance.

Values

Partnership Clarity High quality Customer focus Global perspective

Solvency Integrity Commitment to Service Innovation for leadership Committed team

SOLUNION and its shareholders • Commitment to f uent, ethical and

transparent communication with our shareholders on a regular basis.

• Integration of social and environmental factors in risk management policies.

• Adoption of responsible, prudent investment policies.

Employees SOLUNION defends, respects and protects basic labour

rights, human rights and public freedoms as recognised in

the Universal Declaration of Human Rights, creating a safe

and healthy environment that enables its employees’ professional development and work-life balance.

Staff structure

With 98% of permanent jobs, our people are the company’s main asset. SOLUNION is committed to talent development in a framework of trust and equal opportunities:

Key figures

460 employees in 5 countries,

2017 Men Women TOTAL Categories Men Women TOTAL Spain 143 143 286 Senior and middle

management

80

48

128 LatAm 79 95 174 Technical

75 56 131 Administrative 77 124 201

Employees

Shared Culture Project Whose purpose is to increase employee conidence and improve the work carried out across the different areas of the company. Collective Health Insurance Available for all its employees. Work-life balance Flexible start time. Flexible work Diversity SOLUNION is working and committed to the principle of equal treatment, equal opportunities and non-discrimination. Training 7900 training hours and 26,86 hours per employee at SOLUNION in Spain in 2017

Action lines

Suppliers SOLUNION maintains relationships with its suppliers

based on the quality of the services and products

they offer, the integrity of their business practices and

compliance with their contractual obligations.

Code of Ethics and Conduct SOLUNION promotes a relationship with suppliers based on quality, integrity, confidentiality, transparency and neutrality, in compliance with internal and external standards in the procurement of goods and services.

Relations with suppliers Maintained through the Department of General Services and the heads of specif ic suppliers depending on the business area and the type of goods and services offered.

Payment The average payment period to suppliers in 2017 was 40 days.

Distributors SOLUNION’s relations with its distributors are based on

professionalism and reciprocity. This bond is strengthened

by the global nature of SOLUNION’s offer, which not only

provides

differential value for its customers, but also adds significant

value to its distributors, allowing them to present a

comprehensive offer adapted to their needs.

Channels

SOLUNION maintains its relations with distributors along different channels:

• + 7000 brokers across Spain and Latin America with +500 agents.

• Bancassurance

agreements with major banks in Spain, Mexico, Colombia and Chile ..

Training

SOLUNION is committed to providing its dealers with constant technical and commercial training.

Society SOLUNION is committed to contributing to economic

and social progress in the countries where it does

business, promoting the sustainable growth of society,

environmental protection, environmental commitment and respect for human rights.

Key figures SOLUNION is committed to job creation.

SOLUNION is committed to university and interim students and offered work experience opportunities for 10 students in 2017

Projects In conjunction with its employees, SOLUNION carried the following social projects in 2017: • Operation Kilo with the Food Banks in Spain, Mexico,

Colombia, Chile and Argentina.

• Toys collection campaign in Madrid.

• Corporate volunteering program:

• Spain: Hospital volunteering with children. • Colombia: House construction for poor families. • Mexico: Help in reconstruction after the Earthquake. • Chile: Professional tutoring for children with problems .

• Promotion of Blood Donation

• Promotion of the environmental protection:

• Recycling • CO'2 neutral website • Ecofriendly attitude • Earth's hour

• Promotion of well- being:

• Promotion of Sport teams in all countries: Cycling,

running (Solrunners), Paddle…. • Healthy food promotion • Discounts in gyms next to the offices • Healthy company: Tips about health in workplace • Workshops about cognitive and physical well-being

Regulators Compliance with regulatory requirements is a priority for

SOLUNION. Accordingly, it maintains an open, permanent

and constructive dialogue with regulators, involving an

exchange of information, knowledge and opinion.

This informs SOLUNION of regulators’ init iatives and

concerns, hearing theirs and expressing its views and opinions

to ensure the legit imate defence of its interests and those of

its stakeholders.

Commitments to the future

Customers 1 To provide quality products and

services. 2 To provide a transparent, honest

and ethical consultancy service. 3 To have adequate communication

channels for listening and dialogue.

Distributors 1 To maintain relationships based on

professionalism and reciprocity. 2 To maintain a permanent channel

for dialogue.

Regulators 1 To comply with existing legislation

in each of the countries where SOLUNION is present.

Suppliers 1 To respect and ensure fulilment

of contracts. 2 To communicate honestly

and transparently.

Shareholders and partners 1 To promote good governance

practices. 2 To ensure the economic

viability of the business. 3 To maintain communication channels

and dialogue based on commitment and transparency.

Society 1 To support economic and social

development in the countries where SOLUNION carries on business.

2 To contribute to the protection of the environment.

Employees 1 To ensure equal opportunities

in the workplace. 2 To promote vocational training. 3 To promote a stable and safe

workplace. 4 To listen and maintain a permanent

channel for dialogue.

19

“Every bit of sand counts”