COMPANY GUIDELINES

Preface

The corporate policies of Flaig+Hommel aim to guarantee the continued success of the Flaig+Hommel Group in the future by achieving positive operating results through maintaining a strong customer focus, consistently involving our employees and observing our social responsibilities and values.

FH is convinced that the moral behaviour of everybody involved is a major factor in the success of a sustainably managed and future-oriented enterprise. By being honest and trustworthy, we are creating the basis for enduring and successful business relationships.

The shareholders, the advisory board and the management of FH are united in their clear commitment of this family-owned business to fostering a corporate culture that exemplifies the corporate values and the "FH company guidelines" and conveys them to others.

Our thoughts and actions are guided by the consideration of our employees, the interests of our customers and the safe and careful use of natural resources.

By using state-of-the-art manufacturing technologies and suitable materials, we minimise potential risks to the environment, our customers, suppliers and employees as much as possible. As a result of continuous improvements and by learning from mistakes, we are striving for a zero-defect policy in the long term that not only applies to our products but also all processes and departments.

Ongoing and comprehensive training supports our high degree of quality awareness.

All employees are aware that, when they begin working for FH, they join an environment in which they are expected to exemplify our integrity standards and they commit to act accordingly.

Our suppliers are obligated to adhere to the same principles.

Human rights

Across the globe, we respect, protect and promote the applicable laws protecting human rights and children's rights and we view them as fundamental and universally applicable standards.

We reject any kind of child labour, forced labour and compulsory labour, as well as any form of modern slavery or human trafficking. This obviously not only applies to the work within our company but also the behaviour of our business partners.

Equal opportunity and non-discrimination

We are an equal opportunity employer. We do not discriminate and do not tolerate any form of discrimination on the basis of ethnicity, nationality, gender, religion, ideology, age, disabilities, sexual orientation, skin colour, political views, social status or other legally protected characteristics.

We exemplify diversity, actively champion inclusion and create an environment that fosters the individuality of each person in the interest of the company. We always select, hire, and promote employees on the basis of their qualifications and abilities.

Management, responsibility and oversight

Managers are responsible for the employees that they have been entrusted with. They have to earn the respect of these employees through exemplary personal conduct, their performance, transparency and social skills. They define clear goals that are ambitious yet achievable, lead with a management style based on trust, and entrust their employees with as much responsibility and freedom as possible.

Employees in leadership positions fulfil their corresponding organisational and supervisory obligations. This also includes actively communicating the compliance guideline as well as ensuring that it is being observed. In particular, managers are personally responsible for ensuring that neither laws nor internal guidelines are violated in their area of responsibility.

Employment contract, remuneration and working hours

Any work done on behalf of FH is done voluntarily and contractually stipulated.
The work is remunerated monthly. At the start of their employment and with every payment, employees receive comprehensive and comprehensible information detailing the composition of their remuneration.

FH does not withhold impermissible or illegal payroll deductions and does not use payroll deduction as a disciplinary measure.
The working hours comply with statutory regulations (e.g. Labour Law, Federal Leave Act) and are detailed in the employment contract.

Product conformity and safety

We are not only bound by law to comply with the legal and regulatory provisions – as well as our internal standards – applicable to our products, we also demand it of ourselves. Our products are developed according to the respective state of the art and in compliance with legal requirements.

This compliance, as well as the monitoring of vehicles in the field, is continually and systematically guaranteed by our processes and structures. Our commitment in this area is uncompromising. If any potential deviations could arise, we will ensure that the proper measures can be initiated in time.

Environmental protection

As a commercial enterprise, we are responsible for the environmental impact and the sustainability of our products, facilities and services. We rely on environmentally-friendly, advanced and efficient technologies and implement them across the entire life cycle of our products. Even during the development and production stages, we are careful in the use of natural resources, strive for a continuous reduction of our environmental impact and ensure compliance with environmental laws and regulations.

In addition, we constantly analyse the environmental impact of our products and production processes and optimise them if necessary. We are a responsible member of society and work together with policymakers. We seek a discourse with both on the mobility concepts of the future and how we can ensure ecologically sustainable development.

Donations

We make monetary and in-kind donations to the following causes:  Science and research, education, charities, sports, cultural causes, churches and religious institutions.

We only donate to recognised non-profit institutions or those which are permitted to accept donations as a result of special arrangements. All donations and sponsoring activities are subject to a transparent approval process.

Communication and marketing

It is very important to FH that we communicate with our employees, business partners, shareholders and all interested parties in a manner that is clear, open, honest and complies with the law.

Each employee is obligated to comply with internal communication rules to ensure that we present ourselves uniformly and consistently. Every employee will respect the contributions of their interlocutors as well as their professional and personal reputation.

Conflicts of interest

There may be a conflict of interest if the personal interests of one of our employees (may) conflict with those of FH. Such a conflict of interest may especially arise from secondary employment. If an employee places their personal interests above those of the company, then this can harm the business.

We respect the personal interests and the personal lives of our employees. However, it is very important to avoid conflicts – or even their appearance – between personal and business interests. We solely make decisions on the basis of factual criteria and are not influenced by personal interests and relationships.

Gifts, entertainment and invitations

Benefits in the form of gifts, entertainment and invitations are commonplace in business relationships. If these benefits do not exceed an appropriate threshold and do not violate internal and statutory rules, they are acceptable.

However, once such benefits exceed an appropriate threshold and are being used to influence third parties, they may be criminal and are not tolerated.

Prohibition of corruption

The quality of our company's products and services is the key to our success. We have a zero-tolerance policy regarding corruption.

Any benefits given to business partners, customers and external third parties must be legally permissible and meet statutory provisions.

Prohibition of money laundering and financing terrorism

We carefully examine the identity of our customers, business partners and third parties with which we plan on commencing a business relationship in the future. Our stated goal is to ensure that we only maintain business relationships with serious partners whose commercial activities comply with the law and whose operating funds have been acquired by legal means.

We immediately assign incoming payments to the corresponding services and account for them. We ensure transparent and open payment flows.

Taxes and tariffs

When meeting our tax and tariff obligations, we are aware of our social responsibility and expressly commit to complying with all national and international laws.

Free and fair competition

Our full observance of competition and antitrust rules and regulations is an essential component of our compliance standards. FH is committed to the principles of free and fair competition and respects market forces. It is the unequivocal corporate policy of FH to conduct all of our business in accordance with the respectively applicable competition and antitrust laws.

Any type of arrangements, agreements or coordination with competitors, as well as any anti-competitive exchange of data or information is strictly prohibited and is viewed by FH as an intolerable way of conducting business. Violations will have consequences in accordance with competition, antitrust and labour laws.

Export control

We comply with all regulations regarding the important export of goods, services and information.

Occupational safety and health

By continuously improving our working conditions and putting in place many different measures to prevent accidents and promote health, we improve the health, productivity and job satisfaction of our employees.

Every employee is partially responsible for the occupational safety in their department. All occupational health and safety regulations must be complied with. If employees report workplace health and safety deficiencies, then the respective occupational health and safety representative has to investigate them.

Data protection

We protect the personal data of employees, former employees, customers, suppliers and other affected parties.

We collect, capture, process, use and save personal data in accordance with the law.

Safety and protection of information, knowledge and intellectual property

We are well aware of the value of our company's know-how and therefore protect it carefully.

We respect the intellectual property of competitors, business partners and other third parties.

Whistleblower system

If employees have questions about our code of conduct or are uncertain about something, their first point of contact is their supervisor or the HR department. In addition, they can also turn directly to the company management. Furthermore, the company's ombudsman is also available to each of us for additional inquiries.

FH declares unequivocally that employees or business partners who report to the aforementioned points of contact or the company management with tips regarding violations of this code of conduct do not have to fear any type of reprisal.

If the whistleblowers themselves violated laws, guidelines or internal rules or were involved in such violations, the fact that these violations were uncovered with the help of the whistleblower will be taken into account by the company management with regard to any required action taken. In order to protect the company and its employees as well as its business partners, FH will respond to violations of the provisions of these guidelines with the appropriate disciplinary and/or legal actions.

Quality Policy

MANAGEMENT MANIFESTO

LEADERSHIP COMMITMENT

The fundamental responsibility for quality and product safety is the responsibility of the management. They decide upon the quality policy and targets and initiate strategies for the achievements of those goals. Any thereby necessary financial and human resources will be supplied. In order to satisfy the continuously increasing market demands, our quality policy combines corporate, product-related and higher-ranking targets. These are worked out by the management team at the beginning of the year and permanently reviewed and published on a noticeboard for every employee to see. It is the quality principle of the Flaig + Hommel Group to continuously improve processes through the ideas and actions of all employees in order to satisfy the requirements and wishes of our customers. This is achieved by so called CIP (continuous improvement process) projects. The progress and results of these projects are visualised and published on the information boards for all employees to see.

QUALITY POLICY

The F+H Group’s company policy is devised by the management team. It is regularly reviewed concerning adequacy and efficiency as part of the management review and where necessary revised.

It takes into account customer expectations and requirements, their fulfilment and safeguarding. It also oversees the introduction, implementation and upkeep of all legal requirements and those stated by our QM-system.

This includes the commitment for the fulfilment of the stated requirements on all levels as well as their continuous improvement. This forms the framework for the definition and review of the company and quality aims.

They serve as a guideline for all employees to carry out their job. It is the management team’s responsibility to publicise, make understood and implement the company policy in all F+H branches.

AIMS

The company management is responsible for the cooperation with the management team in order to set company goals as well as their periodical review and update. It supervises and assesses the achievements of the set and regularly updates goals of the group, and so maintains the efficiency of the management system.

RESEARCH AND DEVELOPMENT

FLAIG + HOMMEL RESEARCHES
FOR SAFETY AND QUALITY

Flaig + Hommel is extremely innovative in the cold-forging and lock-nut sector and holds numerous patents. Within the framework of Simultaneous Engineering (SE) our construction department develops products according to customer specification. Applying the finite elements method (FEM) and working with Pro Engineer, ideas turn into cold-forgeable components.

First tests of the tools developed in our own tool shop are carried out on test presses. If necessary, the tools may then be modified and improved. Press-tests with different materials (i.e. steel, aluminium, non-ferrous metals…) are carried out and tool life is continuously tested. Challenge us and we’ll show you what cold-forging can do.