CORPORATE GOVERNANCE 

Halkin Group has implemented a clear and transparent corporate governance structure that meets international standards. Changes in the business structure have made it more efficient and transparent for shareholders, partners, and investors. The Group has adopted a continental corporate governance system with a strict separation of executive and non-executive functions between the Board and the Supervisory Board.

The Supervisory Boards manage sectoral holdings and include representatives from Halkin Group, minority shareholders, and external experts. They determine business development vision and standards, approve strategies, budgets, and big deals, and review their implementation. The Supervisory Boards appoint senior managers, establish motivation systems and evaluate performance.

The Chief Executive Officer, appointed by the Supervisory Board, manages each holding and is responsible for executing corporate functions and reporting to the Supervisory Board. The highest operational management body of each holding is the Executive Council, which is established collegially. The Chief Executive Officer of the holding chairs the Executive Council.

In business areas without sectoral holdings, the corporate governance system works through the immediate Supervisory Boards of the operating companies. Halkin Group's corporate governance structure has proven effective in achieving its goals and is continuously improving.

The Supervisory Boards are responsible for setting the vision, business development areas, and standards. They determine the goals and objectives of sectoral holdings, approve strategies developed by managers of holdings, and oversee their implementation. The Supervisory Boards appoint the senior managers of sectoral holdings, and they establish incentives for them and evaluate their performance. Additionally, the Supervisory Boards approve significant transactions.

The Chief Executive Officer of a sectoral holding ensures that the holding's development strategy is devised and implemented. They provide operational management of the holding, appoint managers, and oversee their performance. The Chief Executive Officer submits the production and financial performance indicators to the Supervisory Board.

The Audit Committee prepares recommendations for the sectoral holdings' Supervisory Boards regarding the approval of accounting policy and procedures for preparing financial reports. They also ensure full disclosure and accuracy of financial statements provided by each holding, independence of internal and external audits, reliability and effectiveness of the internal auditing, internal control and risk management system, and compliance with laws and business ethics standards.

The Strategy and Investment Committee recommends investment opportunities, exit strategies, and strategic goals for assets, including mergers and acquisitions, to the Supervisory Board.

The Appointment and Compensation Committee recommends candidates for management positions, develops personal development plans for managers, and helps shape the corporate culture and talent pool. They also propose ways to incentivize senior managers and recommend rotating senior managers within the sectoral holdings.

The Health, Occupational Safety, and Environment Committee aim to introduce the highest health and safety standards and control the environmental impact of the Group's industrial enterprises. They develop the holding's strategy in their authority area, prepare budgets for modernization and equipment purchases, ensure compliance with health and safety standards, and submit quarterly management reports to the Supervisory Board for review.