SECTION 172(1) STATEMENT

In discharging their duty to promote the interests of the Company under section 172 Companies Act 2006, the Directors of the Company have regard to a number of factors and stakeholder interests. These are described below:

As a wholly owned subsidiary, the Directors do not consider the factor set out in section 172(1)(f) (need to act fairly between the members of the company) relevant to the proper discharge of their duty under section 172.

The Group operates in a sector characterised by long-term relationships with stakeholders, driven largely by a relatively small number of market participants. Maintaining a reputation for high standards of business conduct is vital and the Group expects all members of the supply chain to always act with integrity, acting openly, honestly and ethically. The Group has zero tolerance to fraud and consistently maintains effective oversight and scrutiny processes, executed with independence and impartiality. Integrity is underpinned with policies in relation to bribery and corruption, data protection, equality, diversity and inclusion, modern slavery, fraud and whistleblowing, each of which is reinforced through appropriate training. In addition to the Group’s core values, all employees must comply with these requirements and when taken together with the Group’s corporate responsibility commitments, they provide the framework within which the Group operates both internally and in the marketplace. Suppliers and contractors are also expected to behave in a consistent manner.

Consideration of long-term consequences are an inherent part of the Company's decision-making processes. As a privately-owned company, the Board considers that the interests of the Company and its shareholder are aligned in seeking sustainable value creation over the longer term through the Group's operations, promoting long- term strategic decision-making. These factors also drive a continuing focus on the maintenance of durable relationships with stakeholders, built on the Group's reputation with customers and suppliers.

The Group has continued throughout the year to provide employees with relevant information and to seek their views on matters of common concern. Priority is given to ensuring that employees are aware of all significant matters affecting the Group.

The Group’s customers operate in a sector where demanding goals have been set for the reduction of impact on the environment and JATO has developed its products and services to help support the achievement of those goals. The Group is a generous contributor to a number of charitable causes and also carries out a number of fundraising activities to support local community projects.

Jake Shafran

Chairman
JATO Dynamics Ltd

Date: 6^th March 2024