HILATURASFERRE

CORPORATE ETHICS AND PROFESSIONAL GUIDELINES

MARCH 2012

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HILATURASFERRE

HILATURAS FERRE, S.A. has been working in the yarn industry since its creation in 1947. Our company has had a strong family focus from the get-go, and has been working in the textile sector since the early 20th century.

It is an honour to have maintained a strong market position over four generations. We could not have accomplished this without committing to the values that define our company and underpin our beliefs. They are our heritage, and this behaviour has been passed down through generations and has allowed us to grow and consolidate our position.

These guidelines aim to extend our values to all our employees as basic tenets and good practices at work.

We must all abide by these principles. The quality of the people in this company, what we truly are, is defined by each of these values, and this immeasurable mindset comes across in our undertakings and positions us as a company that generates trust in a market where we need to know who we buy from, who we sell to and who we work for.

Alfredo Ferre GarcíaC.E.O.

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HILATURASFERRE

European production for international markets. We manufacture open end yarns for the textile industry. We offer an innovative product range, flexibility and specialist know-how regarding recycled fibres.

OUR MISION

“These are our values. We convey them with the conviction that you will respect and follow them, preserve them and expand them.”

“The professionals employed at Hilaturas Ferre work with these values in mind and strive to comply with them at all times.”

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HILATURASFERRE

OUR CORPORATEVALUES: THE FOUNDATIONS OF OURSTRATEGY1.MARKET-FOCUSED.

2.OUR ETHICS.

We are honest and respectful. We promote qualified and stable employment .

3.SUSTAINABLE.

We run a sustainable business using environmental products with certificates guaranteeing industrial, product and personal sustainability.

4.RELIABLE.

We are trustworthy and professional.

5.PROACTIVE.

We show initiative and we are flexible.

6.PERMANENT TECHNOLOGICAL INNOVATION.

7.FUTURE.

Corporate solvency and professional future.

8.WE REINVEST OUR PROFITS.

9.PARTICIPATIVE MANAGEMENT.

We are part of a Group that creates employment, develops technologies and secures customers by using efficient processes, honest behaviours and reinvesting profits. Our clients and staff are our greatest priorities. Our commitment with what we do allows us to secure customer loyalty.

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MARKET-FOCUSED

Our company is currently run by the FOURTH GENERATION of our family. We have managed to live and to maintain our position over the years thanks to our market-focus:

We anticipate market demands. We solve our clients’ needs.We continue to “invent products”.We specialise. We produce yarns in specific colours using recycled material. We can combine materials in different colours to produce any colour requested.We have strategic vision.Our 70+ years’ expertise in the recycling industry provides technical know-how that is passed down through the generations of employees that staff the company.We are quick to provide solutions and information.

ETHICS. HONESTY AND RESPECT

Our company has promoted an ethical behaviour since its inception.

Ethics towards shareholders:

Our relationship with our shareholders enables us to handle problems swiftly and e�ectively.Transparency and accountability are the cornerstones that underpin our development.

Ethics towards the competition:

Negative comments about the competition are completely unacceptable.

Ethics towards suppliers:

We strive to create a mutually bene�cial relationship.

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Ethics towards staff:

Business activity permitting, we advocate permanent contracts for employees with a temporary contract who demonstrate a strong professional commitment after several months.We have a close relationship with all our employees.

Respectful :

We strive to achieve a safe and healthy work environment, and we take every measure to prevent accidents. We support equal opportunities and non-discrimination policies.We do not allow forced labour.We do not allow or support child labour.

ENVIRONMENTALLY SUSTAINABLE

Eco-friendly:

We use natural fibres.We use waste to manufacture products. We contribute to reducing the amount of waste that is sent to dumps.We recycle materials and grant them a new value, a new life.

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4.000Tons of recycled cotton used during 2010

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HILATURASFERRE

By using waste material:

We have contributed to saving 19,500,000 litres of water needed to cultivate and subsequently dye cotton.We have avoided the use of 67,000 kg. of chemical products required to dye the threads.We have avoided the emission of 1,000,000 kg of CO2We have prevented the spill of 15,000,000 litres of waste water generated during dying procedures.We have released 10,000,000 m2 of crops needed to cultivate the cotton used.We have prevented the use of 800,000 kg. of fertilizers and pesticides.We have released 12,000 m2 of space in the dump.

(Data based on the Comparative Study on the Environmental Impact of Recycled Cotton Yarns vs Conventional Cotton Yarns carried out by AITEX, October 2007)

STRATEGIC VISION

Regarding our business:

We guarantee corporate solvency and a professional future.We firmly BELIEVE in our company and its future.We adapt to market circumstances.We have a corporate vision.

Regarding shareholders:

Our Family Protocol translates as a future-proof guarantee .

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RELIABILITY

We believe in our staff:

We encourage training.We encourage internal promotion.We are reliable.We encourage professionalism. We strive to improve the quality of our in-house procedures.We support PARTICIPATIVE MANAGEMENT to increase staff participation and involvement.

Our clients believe in us:

We generate trust.We keep our promises.We inform of non-compliances before they occur.We rigorously meet deadlines and assure product quality. All in all, we strive to offer a GOOD SERVICE.

We comply with and respect all valid legislation and communicate it within the company.

WE ARE PROACTIVE

We have initiative and we are flexible.Proactivity is an ATTITUDE that emerges from the foundations of the company.Detecting needs before they arise is crucial, both for internal and external customers.We strive to be a company where everyone feels included and involved.

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PERMANENT TECHNOLOGICAL INNOVATION

We constantly invest in renovating our machinery.We believe technology helps us achieve homogeneous quality. We purchase state-of-the-art machinery that uses less resources and guarantees safety at work.We undertake Socially Responsible Investments.We use cutting-edge technology to step up our competitiveness.

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