September 2, 2015 Statement of continued support by the Managing Director of Medi Myanmar Group Ltd. I am pleased to announce that Medi Myanmar Group Ltd. is continuing to support the Ten Principals of the United Nations Global Compact. Throughout this year, we gradually continued to improve ourselves for better awareness, positively take an active role within the business community, share knowledge and experiences in supporting the ten principles of UNGC throughout our organization with our managers, supervisors, and employees in order to encourage to practice and participate actively within the organization and community. We are trying to integrate these principles more and more into our corporate culture in the most effective and appropriate ways. This year we are pleased to share with you that GIC (UK) has awarded Medi Myanmar Group Ltd. ISO 9001:2008 certificate under certification no. 722776 dated March 5, 2015. As such, our management system and operations have become strengthened and more systematic in operations and in management which supports highly on maintaining our practice and support on UNGC. We are also proud to see that many more companies are participating and supporting the United Nations Global Compact in order to advocate for Human Rights, Labour, Environment, and Anti-Corruption. In this annual Communication on Progress, we describe how we try to maintain and gradually improve from the preliminary implementations of the Ten Principals of the United Nations Global Compact, integrated in our company policies, organizational culture, and structure. We are proud to share the philosophy of the United Nations Global Compact and we thank everyone involved in our daily operations for their support and implementation of these principles. Sincerely yours, UN Global Compact COP Report 2015 From: September 2014 To: September 2015 The Ten Principles of the United Nations Global Compact The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption: Human Rights: PRINCIPLE 1, PRINCIPLE 2 Labour: PRINCIPLE 3, PRINCIPLE 4, PRINCIPLE 5, PRINCIPLE 6 Environment: PRINCIPLE 7, PRINCIPLE 8, PRINCIPLE 9 Anti-Corruption: PRINCIPLE 10 Human Rights Businesses should support and respect the protection of internationally proclaimed human rights; and make sure that they are not complicit in human rights abuses. Labour Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced and compulsory labour; the effective abolition of child labour; and the elimination of discrimination in respect of employment and occupation. Environment Businesses should support a precautionary approach to environmental challenges; undertake initiatives to promote greater environmental responsibility; and encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption Businesses should work against corruption in all its forms, including extortion and bribery. Human Rights Principles Assessment, Policy and Goals There will be no racial or religious discrimination within or outside the workplace, by any members or affiliates of our organization. We hire employees considering as equal with no discrimination on gender or religion. All business partners and suppliers will adhere to our principles on Human Rights or we shall not establish a business relationship with them. We allow our employees and business partners to freely express their cultural values and their activities without discrimination or judgment unless it goes against the United Nations Human Rights Principals. We commit to improving the lives of the people in our country and include them in business activities regardless of their educational background and/or citizenship. We commit to help the community where it is feasible, such as to improve the lives of people in Myanmar socially and economically, especially in the areas of health and education where we feel that we are strong in. We continue to donate and help the community through philanthropic efforts that are feasible within our means. We do not discriminate against the disabled if they are able and willing to perform a job that we are hiring for. In line with the sexual harassment policy, sexual harassment is not tolerated in any way. Assessment of Human Rights related risks and impact in industry sector and country/countries of operation (see Risk Assessment Report at www.humanrightsbusiness.org) Our country currently faces sporadic religious conflicts between the Buddhists and Muslims. We are continuously observing and keep awareness to ensure that this type of conflict does not take place within the workplace of our organization. We support on capacity building of our employees by investing in training, and personal development of our employees in order for them to acquire valuable skills in their areas of interests in relation to business regardless of their educational background. This expects to help the problem of shortage of skilled and qualified workforce within our country. We support our employees for basic healthcare needs to treatment cases, pregnancy care, and operation cases since there is an insufficient system for comprehensive healthcare provided by the authority for the employees within our country. Implementation We have an open door policy with our employees. Support is present throughout the entire organization at all levels, from top management to the bottom level. We share this COP with our employees, business partners, and affiliates to ensure that they are aware of our company’s values, which led to the growth and development of our organization. We will not only share this document but also ensure that they clearly understand the important points to adhere to and follow effectively. We welcome any advice and feedback from our employees, business partners, and affiliates on how we can improve our policies and be more progressive on solutions regarding Human rights. We are continuously and regularly assessing and monitoring our policies to see how they can be improved. The owners and top management of the company hold full responsibility for the protection of Human Rights within our company. HR and our top management cooperate with each other to resolve issues involving people of all levels where necessary. We have a sexual harassment policy where any incident reported shall be dealt immediately as this is a high priority for HR and top management. We welcome all employees to practice any religion freely. Our offices throughout the country hold annual charity activities by following Myanmar tradition and culture. Examples of such events are the Warso monk occasion, Kahtein tree offering to monasteries, Myanmar New Years offerings to monks, etc. We continuously support education by annually donating school supplies to schools in South Dagon township, Yangon, Meikhtila and Mandalay. Our employees collected money within the organization throughout the year and supported food and needed supplies to orphanage in Mhaw Bi, Yangon State region. Our Company supported by donating medicines and supplies to the victims of flood disaster areas. Measurement of outcomes HR will report any incidents to top management as soon as they are aware of any situation that is against our policy. We will assess our company demographics annually to see where we can improve (i.e. gender, race, and educational distribution). There is an annual assessment of situations that arose throughout the year and how they were handled. We analyze and identify where things could be improved and where additions can be made for better implementation of company policy. We will assess our charitable contributions yearly and identify how our philanthropic efforts can be improved more effectively. We will also analyze how our efforts can be expanded to contribute to different areas. Labour Principles Assessment, Policy and Goals We do not allow the practice of torture, child labour, forced and compulsory labour within our organization or within the practices of any of our business partners and/or suppliers. Written policies are implemented that clearly state employee rights and responsibilities for compensation and benefits. These rights and responsibilities are regularly and annually updated in accordance with national regulations. Our company follows the country’s labour laws for compensation of overtime work. We have a strict policy that requires our business partners and suppliers to adhere to our labor policies when hiring staff and working with our employees. We have a goal to reduce our employee complaints and to create a harmonious working environment without discrimination of any means. We do not discriminate amongst employees on gender, race, or religion; all employees are treated equally, offered the same resources, benefits and compensation. Implementation Labour policies are recorded and updated by the HR department. These are reported directly to top management to be dealt with in a timely manner with proper care. If company policies on labour rights are amended, a company memo is issued to keep all employees informed and updated. Knowledge and policies are shared to employees in order for them to understand and be aware of non-discrimination policies and practices, including disability awareness. Managers and supervisors will be trained to understand different types of discrimination and how it can affect the workforce in order to promote a non-discriminatory work environment. As a pharmaceutical company, the health and safety of our employees is of high priority. We ensure that our staff is provided with adequate medical care and support where our resources allow (i.e. Medical leave, maternal leave, Health check ups, medical examinations, medications, operation procedures, treatment and etc.). Myanmar has opened up to the world and organizations including our company are striving towards having an International Standard. We support our employees in capacity building and personal development by improving their language fluency, knowledge and skills. We provide opportunities by supporting them to attend courses in English, Marketing, strategic management, Human resource management, Business management, Accounting and etc. We encourage employee motivation through a reward system with incentive gifts, local and overseas trips, promotions, and bonuses. Our organization supports the healthcare of our staff by paying for operation/surgical fees, cardiac procedures, pregnant staffs, labour expenses, death expenses and support for their families. All of our offices close accordingly with all religious and national holidays. We will circulate labour policies amongst staff, business partners, and business affiliates. All policies act within accordance of the country’s labour laws. HR, top management, and owners of the company take full responsibility of the protection of labour rights within our organization. We also encourage employees to take care of one another, protect and educate each other to understand and stay aligned with our company labour policies. We have an open door policy with the people of the Labour Union of Myanmar (Government Ministry) whereby we welcome them to educate our HR department and top management. HR has the responsibility to communicate and share this information internally to our employees. Measurement of outcomes We will assess and monitor our company statistics annually to see where we can improve (i.e. Gender, Pay scale, Job Title, Sick Leave, Health Care, Educational Training). We do not tolerate violations of the Global Compact Labour principles within our organization or by our business partners, business affiliates, and suppliers. We will assess the situation and within reason, terminate all ties related to this violation. If the situation can be dealt with in a reasonable manner we will monitor progress and reassess monthly. We have a systematic reviewing system by senior management on the company’s labour policy to ensure that our organization is acting within accordance of the law. We are continually assessing and reviewing past violations and handlings of these policies to evaluate how we can improve our company policies. Environmental Principles Assessment, Policy and Goals We do not participate in any activity that will significantly increase the environmental footprint of our company. We have established an internal policy to reduce and omit any activity that will greatly affect the environment and to promote environmental responsibility. We are taking a precautionary approach to protect the environment. We encourage all our employees to use a car-pooling system throughout our supply chain processes. We do not take part in local business activities that expose risk to the environment (i.e. carbon emissions of factories, etc.). The resources within our company are re-used, recycled, and eliminated where possible to reduce environmental risk and to protect the environment. Assessment is made by the operations teams to ensure that employees are aware of being responsible for the environment. We organize quarterly activities concerned with environmental issues by sharing our knowledge and own experiences about environmental awareness with the employees. We try to decrease our environmental footprint by 10 to 15% yearly. Implementation We educate our employees about environmental protection at a basic level (i.e. Paperless communication, data storage, encouraging the use of garbage cans as opposed to littering, saving water usage, car pooling, installing air cooling fans in some areas, encouraging to use natural light source wherever possible, saving electricity on air conditioning and lighting usage). We educate and encourage our employees to read about going green and ways to help reduce their environmental footprint. We discuss with our business partners to let us reuse existing resources (i.e. If we have roadshows, we would rather produce stickers or vinyl to cover existing furniture rather than build new furniture in an effort to reuse and to reduce the use of unnecessary resources). We can ask our business partners and business affiliates for an annual report of their environmental policies and activities to understand their methods in reducing their environmental footprint. We closely follow environmental policies within our country. For example, we now use recycled and paper bags for our distribution because high-density polyethylene (HDPE) is no longer in compliance with the environmental policy of Myanmar. Measurement of outcomes We monitor the environmental footprint of our company through the monthly electricity bill, water bill, gasoline bills, purchase of papers, checking the office premises cleanliness and usage of resources. We review our supply chain activities monthly and assess where resources can be lowered as to reduce our environmental footprint. We train the managers and supervisors to be more aware of the environment. We use this method as a precautionary approach, to regularly and continuously share this knowledge with all the employees, in order to encourage them to protect the environment and be environmentally friendly. We try to organize knowledge-sharing activities among the employees to understand and improve methods to reduce waste and their environmental footprint. We request annual reports of environmental policies from our business partners and affiliates and encourage them to gradually reduce their environmental footprint annually. Anti‐Corruption Principles Assessment, Policy and Goals We have zero tolerance for any form of extortion or bribery within our organization or amongst our business partners and suppliers. Any employee or business affiliate engaging in these activities will be immediately dismissed upon investigation and proof of these activities. We do not tolerate any activities where people within our organization or business affiliates are affecting our community’s anti-corruption policies. The risk of bribery and corruption within our country is one of the main concerns. We have to be alert at all times of these risks. Implementation We have specific written protocols where staff must inform HR or senior management immediately upon finding out about any situation where extortion or bribery may have occurred within company activities. We educate our employees on what is considered malpractice in terms of bribery and extortion so they are aware of it when it is being practiced. The anti-corruption policies lie within the responsibilities of the company’s owners. Any malpractice of these policies will be dealt with immediately. We have a whistle blowing policy where these reports are considered serious and require an investigation by senior management and the company owners. All management from various levels of the company must have input into the situation and it is up to the company owners to make the final decision. The company anti-corruption policy must be circulated amongst employees, business partners, and affiliates to ensure that the entire company’s activities are acting in accordance of these rules. We audit each department within our company monthly to ensure that there is no malpractice in accordance with the anti-corruption policy. The respective department heads must review all financials and company activities monthly. Measurement of outcomes All incidents reported are reviewed monthly and annually to follow the anti-corruption policy. We assess and evaluate how the incidents reported were handled and record the severity of the situation. Reported incidents must be compared with previous records to monitor the success of our company’s anti-corruption policy and education. Internal audits within each department will be conducted yearly, by top management and owners, to ensure that they all adhere to the anti-corruption policies. ************************************************************************