Finance Policy

1. Introduction

We see ourselves as local citizens and the adherence to rules and regulations through financial means is part of our self-image. We pay our taxes locally, where we do business. We pay all local licenses and fees required to do business locally. We do not transfer funds through licenses (or any other means and constructions) to avoid local taxes or fees. We do not knowingly engage in business with companies that are in apparent violation of any of these policies, including our financial governance. We do our own thorough accounting. We engage external auditors to review our results. In addition, supervised certified auditors commission our accounting and confirm that our financial statements comply with local requirements and our own highest standards.

2. Application range

The Financial Compliance Policy applies to all companies in which we hold a majority stake and control the ownership shares. These control interests give us the opportunity to enforce our standards of financial compliance.

3. Commitment to financial compliance

For all its companies, WELTBETT (Weltbett GmbH) demands compliance with all legal regulations in the field of accounting and taxation. Our guidelines are:

• We follow all local financial laws and regulations. We work with professional partners who support and audit our performance.
• Financial compliance is a rapidly evolving field with ever-changing and demanding regulations, restrictions and compliance requirements.
• The ability to record and manage the interactions of our organization in this industry ensures compliance with the law.
• This also reduces risk by providing records for review and liability.

We are committed to consistent and transparent accounting and reporting standards for all our corporate interests.

WELTBETT Pursues the goal of maintaining these standards in a world where financial requirements are evolving. In addition, our suppliers are required to meet minimum standards for financial compliance. WELTBETT has its own accounting departments, we work with external auditors to prepare our annual reports and their results are audited by third parties.

4. Requirements and implementation

We are actively committed to the observance of quality standards and have already taken concrete measures to this end in the following areas, among others:

We have

Financial compliance standards for customers

Our customers are among the strongest drivers and champions of the industrial convergence of our industry towards financial compliance standards across the industry. We work with our clients to help them set their standards and objectives and monitor progress towards achieving them. We follow our highest customer standards.

Requirements on our companies

WELTBETT Works with all its companies around the world according to these guidelines and local standards and/or is certified accordingly. This enables us to avoid potential risks of non-compliance with local or international accounting standards. Our internal accounting system is supported by relevant professional third party software and accounting systems and professional accountants. Our business processes ensure the proper management of these systems and processes.

Third party audits

• WELTBETT uses the following audited third party standards to monitor compliance with these guidelines:
• WELTBETT works with independent auditors to prepare and submit annual reports and tax returns
• WELTBETT has peer reviews of our auditors' findings and reports carried out

5. Active implementation

At WELTBETT we implement our financial compliance requirements in close cooperation with our partners. The implementation of our internal requirements is carried out by the accounting departments with the support of the responsible corporate governance drivers. Specific requirements, goals and measures are also implemented in close cooperation. We monitor the implementation at companies in which we have a majority stake, monitor interests and conduct risk-oriented assessments. We reserve the right to have the requirements of our financial compliance guidelines reviewed by internal and/or external audits as necessary. In addition, we ensure that all employees responsible for handling financial data or processes that have a financial impact on business results and assets are effectively trained on a routine basis to ensure a true financial picture of the company All times and, where necessary, qualified to promote good standards of financial compliance in their areas of responsibility This Financial Compliance Policy is part of our Terms and Conditions. In cases where breaches of our policies are identified, all persons involved are expected to submit corrective action plans that clearly show how relevant breaches will be resolved within a specified timeframe. The managing directors are regularly informed about the status of implementation.

We strive to comply with financial regulations at all times in an evolving financial environment. In this context we always take into account the wishes of our banks and the market environment.

As we want to offer financial compliance, an exchange with external partners is essential. We are therefore in close contact with auditors and accountants who conduct their peer review.

Specific measures

WELTBETT Actively implements measures to ensure compliance with financial regulations in all majority-owned companies. These are in particular:

• Richard Behr & Co.UK, audited by Larkin Gowen
• Hanseatic Bedding Products audited by Rehmann Robson
• Hanseatic Hanseatic Realty audited by Rehmann Robson
• Richard Behr & Co Germany audited by RFHC
• Hanse Textilvertrieb audited by RFHC
• Habertag-Behr audited by RFHC
• Dr. Behr participation audited by RFHC

We are committed to maintain these measures and audits and to comply with local accounting, registration and tax regulations and standards. We commit NOT to shift revenues through royalties or other constructs, but to be a good local citizen with each unit.

Regular evaluations

Every year, the current Financial Compliance Policy is reviewed and adjusted if necessary. In the long term, this is the only way to ensure consistent and locally compliant accounting, reporting, registration and taxation standards. In addition, we formulate targets and evaluate the extent to which these targets have been achieved on an annual basis.