Stockholm, Sweden in May 2018

To our stakeholders:

I am pleased to confirm that Dometic reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.
Sincerely yours,

Juan Vargues
President & CEO
Dometic Group

Dometic's Code of Conduct provide the guidance for the companies employees. The Code of Conduct support and respects the principles of the following ethical guidelines:

o The United Nations Universal Declaration on Human Rights;
o International Labour Organization Declaration on Fundamental Principles and Rights at Work;
o United Nations Global Compact;
o OECD’s Guidelines for Multinational Enterprises;
o UN Guiding Principles for Business and Human Rights;
o UN Convention on Rights of Children and Children’s Rights and Business Principles.

Dometic's goal is that everyone that is employed or work together with the company as a partner or supplier shall be aware of its Code of Conduct and apply the same standards.

Dometic has during 2017 introduced a Code of Conduct e-learning to raise further awareness to the principles set out in the Code of Conduct, including Human Rights.

Dometic's whistle-blower function "Dometic Speak Up-Line" was introduced during 2017 and provides opportunities for employees to anonymously report any potential breach of the Code of Conduct including Human Rights. The Dometic Speak Up-Line is managed by an external provider and offer all employees to file a report on what they believe to be in breach with Dometics Code of Conduct in general as with Human Rights.

Dometic has not had any legal cases or reported cases on Human Rights violations. The company has taken a proactive approach and are on a running basis in dialogue with management and Human Resources representatives in the countries to ensure adherence to the Code of Conduct.

Dometic's Code of Conduct provide the guidance for the companies employees. The Code of Conduct support and respects the principles of the following ethical guidelines:

o The United Nations Universal Declaration on Human Rights;
o International Labour Organization Declaration on Fundamental Principles and Rights at Work;
o United Nations Global Compact;
o OECD’s Guidelines for Multinational Enterprises;
o UN Guiding Principles for Business and Human Rights;
o UN Convention on Rights of Children and Children’s Rights and Business Principles.

Dometic's goal is that everyone that is employed or work together with the company as a partner or supplier shall be aware of its Code of Conduct and apply the same standards.

Four core values provide direction for the leaders and employees. In practice, this is defined as the Dometic Way. The companies also have group wide Code of Conduct policy that applies to all employees in all entities. The Code of Conduct is focused healthy workplaces and business conditions that are in line with international laws and regulations on employment as well as human rights.

To ensure compliance Dometic has established a whistle-blower function called the “Domestic SpeakUp Line”. It offers employees in all entities to in their own language report potential misconduct. For the sake of integrity and confidentiality the whistle-blower tool is managed by an external vendor and can be reach via a free-of-charge telephone number or via internet.

Employees
Dometic is committed to ensuring that the workplaces are attractive. Key areas include creating diverse work environments and ensuring that the Group complies with our equal opportunity policy when hiring and when providing development opportunities to our employees to enable them to reach their full potential. By having a work environment built on Dometic’s shared values and Code of Conduct, we create a great place to work for both current and future employees.

As per 31st of December 2017, Dometic had 8 769 employees. The majority of the total employees are concentrated to China, Germany and the U.S. As per the same date, 94% of the total employees were permanent and the remaining 6% were temporary employees. Certain of Dometic's subsidiaries, primarily in Europe and the U.S., have entered into collective bargaining agreements with trade unions either directly or through membership of employer organizations. Most of these agreements are nationwide. Dometic takes a constructive approach to union relationships where there are unionized sites and has been able to secure the co-operation in close dialogue with both unions co-workers to create a positive and constructive work environment.

Gender distribution
In 2017, Dometic employed a total of 8,769 people, 35 percent of whom were women. The Group management team comprised 9 people, whereof 3 women (33.3 percent). Dometic continually works with gender distribution at all levels in the Group by enhancing our hiring processes and skills development opportunities. Out of a total of 546 Group managers, 22 percent are women.

Health and safety
Dometic has detailed policies and procedures, reaching beyond the minimum legal requirement throughout its network of manufacturing / assembly sites. In addition, the Company has an environmental manager dedicated to overseeing the compliance with applicable directives and designated individuals in each production facility with the responsibility of supervising and implementing policies and controls aimed at maintaining the Company's compliance with environmental, health and safety regulations. The company works proactively to reduce the number of work-related incidents and increase control of the work environment, with the aim of boosting product quality and output. To further emphasize the importance of health and safety, the theme was introduced as part of the Dometic Way in 2017. Consequently, all business reviews as well as daily start-up meetings on the shop floors start with a health and safety review. Dometic’s Health & Safety Guidelines were introduced during the year at all legal entities to ensure a common standard across the Group, as well as adherence to local regulations. The guidelines were implemented
in preparation for the 2018 audits.

As part of the Health & Safety Guidelines, Dometic conducts a Job Safety Analysis (JSA) to identify hazards related to specific tasks in a proactive effort to reduce the risk of injury to workers and to prevent accidents. Workers receive training to carry out their jobs safely and ensure adequate technical safety, including the use of personal protective equipment. Health and safety processes are key components of our factory management systems. In 2017, 74 health and safety-related incidents of minor character were reported. Dometic has introduced the Dometic Loss Prevention Guideline (DLPG) to reduce risk and maintain high standards for safety, quality and delivery. The DLPG is designed to guide the Group’s production sites regarding appropriate safety and security levels. Based on DLPG, a risk-scoring model is used to ensure compliance with good industrial practices. In addition to local work, Dometic regularly conducts assessments together with a third party at all production sites to analyse potential risks. In 2017, Dometic assessed 15 operations sites across all three regions

Dometic measure gender and age distribution when it comes to all employees as well as for management.

Any violation of the Global Compact Labour principles leads to consequences. All companies within the Dometic Group shall operate in full compliance with relevant laws and regulations applicable to their operations and employment in the countries in which they operate. This is the minimum requirement in all sections of Dometics Code of Conduct. However, the requirements set forth in Dometics Code of Conduct shall be respected and followed even when they go beyond applicable national requirements. The requirements of Dometics Code of Conduct apply to all employees, officers and board members of the Dometic Group, in all markets and at all times.

For Dometic's employees and managers failure to comply with the Code of Conduct may result in disciplinary action, which may include written warning or ultimately, termination of employment.

Dometics way of working with environmental related issues is described in Dometics Code of Conduct; The company strives, at all times, to improve the environmental performance of its activities and products and to prevent any harmful effects on the environment. All activities and products shall comply with regulations and demands made by authorities as well as by customers. The Dometic Group is committed to the efficient use of natural resources and to sustainable development. This means efficient use of materials and energy during the design, production, purchase, logistic, use and disposal of all its products. Dometic requires its partners and suppliers to adhere to the principles outlined in Dometics Code of Conduct and the Global Compact environmental principles.

Reduced environmental impact is a key priority in order to achieve a long-term, sustainable business model. Important areas include reduced energy consumption in production, lower emissions of CO2 gases from production and transportation, responsible use of raw materials, water and waste in production, as well as increased energy efficiency throughout the life cycle of each product. Dometic’s production units have individual targets to improve their environmental performance based on their production profile, local environment and improvement potential.

Material use
The main materials used in Dometic products are plastics, steel, aluminium and copper. To minimize the use of resources, the ambition is to increase the use of recycled materials, along with enhanced reparability and recyclability in future product generations. Currently, the use of recycled materials in Dometic products is limited to recycled plastics on a very low scale. In addition, a certain percentage of recycled material is included in components made of cardboard and steel. Since 2016, Dometic has also implemented a ten-year spare parts guarantee with the aim of prolonging product life.

Energy consumption
Energy efficiency is one of the cornerstones and key challenges for Dometic. For years the Group has worked proactively with energy-saving programs aimed at reducing energy consumption at all facilities. Total energy use in 2017 was 76.1 GWh (74.9). Energy consumption in proportion to net sales improved to 5.4 percent (6.0), mainly driven by:

• Improved compressor technologies (i.e. compressed air)
• Installation of LED lighting systems
• Heat recovery
• Improved heating systems
• Implementation of energy management systems

Dometic expects to increase the percentage of energy from renewable sources over the next few years, in line with its aim to reduce CO2 emissions.

Chemicals
Dometic complies with applicable chemical legislation, including REACH and RoHs, with the aim of phasing out CMR chemicals. Key issues also include responsible end of-life handling of cooling agents. Dometic has developed an end-of-life technology for emptying cooling units in absorption refrigerators. This technology is also used in Dometic’s production units worldwide.

Waste
In 2017, total waste amounted to 7,019 (8,316) tons, of which 196 (350) were hazardous waste. In all, 62 (57) percent of waste was recycled, including packaging, plastics and metals. In most countries, Dometic has access to developed systems for recycling and energy recovery, and endeavours to achieve recycling solutions in all markets.

Dometics environmental performance is measured via KPIs on local levels in the respective plants and coordinated on global level. The company very closely follow the development of it's CO2 emissions, total energy consumption, usage of chemicals, waste and water consumption. Dometic does on a running basis, together with external partners, carry out audits to ensure adherence to local laws and regulations as well as audits to prevent any risks in Dometics operations.

Dometics Code of Conduct outlines the companies principles to be adhered to by all employees, partners and suppliers with reference to anti-corruption.
The Code clearly states that the Dometic Group, and its employees, partners and/or suppliers, shall not participate in or facilitate any kind of corruption, including fraudulent actions, bribery, facilitation payments or money laundering.

Dometics goal is to ensure that employees, partners and/or suppliers are aware and adhere to these principles.

Dometic has during 2017 introduced a Code of Conduct e-learning to raise further awareness to the principles set out in the Code of Conduct, including for anti-corruption.

Dometic's whistle-blower function "Dometic Speak Up-Line" provides opportunities for employees to anonymously report any potential breach of the Code of Conduct. The Dometic Speak Up-Line is managed by an external provider and offer all employees to file a report on what they believe to be in breach with Dometics Code of Conduct in general as well as potential corruption.

As in any business, Dometic is exposed to a number of risks that could have a material impact on the Group. These risks impact Dometic’s ability to achieve established Group targets, including financial targets, as well as targets in other areas outlined in Dometic’s business strategy.

The main risks to which Dometic is exposed are classified into four main categories, each of which has underlying risks. These risks can be both internal and external. Internal risk is mainly managed and controlled by Dometic, whereas the Group neither causes, nor can it control, external risk. However, the effects can be limited by effective risk management.

In 2016, Dometic established a risk management process with an risk committee. During 2017 the work with the risk committee has developed in a positive way and raised higher awareness and better monitoring of the risks. The quarterly risk committee meetings are administrated by an appointed risk coordinator. The Chairman of the risk committee is the CFO. The risk committee consists of representatives from regional operations, product development and innovation, finance, HR, legal, quality and internal audit. The main tasks of the risk committee are to evaluate company risks and risk assessment, discuss recent risk-related issues, evaluate and approve risk related actions and activities, discuss and approve risk governance (policies and activities), and facilitate input from risk committee members and significant risk-related reports. The committee is the internal forum to address risks. A summary of the committee’s work is presented to the Audit Committee and the Board of Directors of Dometic (the “Board”).

Dometic conducts an annual risk assessment of the likelihood and impact of each defined risk and related risk activities. As part of this assessment, risk owners are listed in a risk register, and global and regional risk maps are drawn and used as a foundation for Dometic’s control activities, especially internal control and internal audit plans.